Vol. 84 Wednesday, No. 94 May 15, 2019

Pages 21687–22048

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 84, No. 94

Wednesday, May 15, 2019

Agriculture Department Drug Enforcement Administration See Forest Service NOTICES NOTICES Bulk Manufacturer of Controlled Substances; Application: Agency Information Collection Activities; Proposals, AMPAC Fine Chemicals Virginia, LLC, 21810 Submissions, and Approvals, 21748–21749 Bulk Manufacturer of Controlled Substances; Registration, 21810, 21813–21814 Bureau of Consumer Financial Protection Decision And Order: PROPOSED RULES Fred J. Powell, M.D., 21811–21812 Overdraft Rule Review Pursuant to the Regulatory Raquel Skidmore, M.D., 21808–21809 Flexibility Act, 21729–21732 Importer of Controlled Substances; Application: Plan for the Review of Bureau Rules for Purposes of the AndersonBrecon, Inc., 21813–21814 Regulatory Flexibility Act, 21732–21733 AndersonBrecon, Inc. DBA PCI of Illinois, 21811 Rhodes Technologies, 21807 S and B Pharma, Inc., 21813 Bureau of Safety and Environmental Enforcement Wildlife Laboratories, Inc., 21809–21810 RULES Importer of Controlled Substances; Registration, 21812– Oil and Gas and Sulfur Operations in the Outer Continental 21813 Shelf—Blowout Preventer Systems and Well Control Revisions, 21908–21985 Education Department NOTICES Census Bureau Applications for New Awards: NOTICES Developing Hispanic-Serving Institutions Program, Agency Information Collection Activities; Proposals, 21758–21763 Submissions, and Approvals: Generic Clearance for Questionnaire Pretesting Research, Election Assistance Commission 21750–21751 NOTICES Meetings; Sunshine Act, 21763–21764 Centers for Disease Control and Prevention NOTICES Employment and Training Administration Updating Federal Guidelines used by Public Health NOTICES Agencies to Assess and Respond to Potential Cancer Trade Adjustment Assistance; Determinations, 21817–21821 Clusters in Communities, 21786–21787 Worker Adjustment Assistance; Investigations, 21815– 21817 Civil Rights Commission NOTICES Energy Department Meetings: See Federal Energy Regulatory Commission Utah Advisory Committee, 21749–21750 See Western Area Power Administration

Coast Guard Environmental Protection Agency RULES RULES Safety Zones: Acquisition Regulations: Fireworks Displays in the Fifth Coast Guard District, Submission of Invoices, 21714–21718 21703–21704 National Priorities List, 21708–21714 Fireworks Displays, Little Egg Harbor, Beach Haven, NJ, Pesticide Tolerances: 21701–21703 Glufosinate Ammonium, 21706–21708 Security Zones: NOTICES Interim Registration Review Decisions and Case Closures Corpus Christi Ship Channel, Corpus Christi, TX, 21704– for Several Pesticides, 21774–21775 21706 Pesticides: Special Local Regulations: Draft Guidance for Pesticide Registrants on Plant Low Country Splash, Charleston, SC, 21699–21701 Regulator Label Claims, Including Plant Biostimulants; Extension of Comment Period, 21773– Commerce Department 21774 See Census Bureau Toxic Substances Control Act Inventory Notification See Industry and Security Bureau (Active-Inactive) Requirements: See National Oceanic and Atmospheric Administration Availability of a Signed Action Identifying Chemical Substances for Inactive Designation, 21772–21773 Community Living Administration NOTICES Farm Credit Administration Single-Source Supplement: RULES National Aging Network, 21787 Statement on Regulatory Burden, 21693–21698

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Federal Aviation Administration Federal Reserve System PROPOSED RULES RULES Decompression Criteria for Interior Compartments, 21733– Regulations H and K: 21738 Registration of Mortgage Loan Originators, 21691–21692 NOTICES PROPOSED RULES Intent to Release Airport Property: Prudential Standards for Large Foreign Banking Lake Louise Airport (Z55), Lake Louise, AK, 21894 Organizations; Revisions to Proposed Prudential Noise Exposure Map: Standards for Large Domestic Bank Holding Companies San Carlos Airport, San Carlos, CA, 21893–21894 and Savings and Loan Holding Companies, 21988– 22036 Federal Communications Commission NOTICES RULES Agency Information Collection Activities; Proposals, Elimination of Obligation to File Broadcast Mid-Term Submissions, and Approvals, 21777–21781 Report, 21718–21723 NOTICES Federal Trade Commission Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals, 21776–21777 Proposed Consent Agreement: Meetings, 21775–21776 A Waldron HVAC, LLC, 21782–21784 LVTR, LLC, 21784–21786 Federal Election Commission National Floors Direct, Inc., 21781–21782 NOTICES Meetings; Sunshine Act, 21777 Federal Transit Administration NOTICES Federal Energy Regulatory Commission Funding Opportunity: NOTICES Grants for Buses and Bus Facilities Program, 21899– Application: 21905 PB Energy, Inc., 21766–21767 Pembroke Hydro Associates, LP, 21768–21769 Food and Drug Administration Renewable Energy Aggregators, 21769 NOTICES Sugar River II, LLC, 21765–21766 Agency Information Collection Activities; Proposals, Authorization for Continued Project Operation: Submissions, and Approvals: Great River Hydro, LLC, 21767–21768, 21770–21771 Registration and Product Listing for Owners and Combined Filings, 21767, 21769–21770 Operators of Domestic Tobacco Product Complaint: Establishments and Listing of Ingredients in Tobacco EDF Renewables, Inc., Enel Green Power North America, Products, 21787–21790 Inc., NextEra Energy Resources, LLC, Southern Power Co. v. Southwest Power Pool, Inc., 21765 Forest Service Filing: Oncor Electric Delivery Co., LLC, 21764 NOTICES Initial Market-Based Rate Filings Including Requests for Meetings: Blanket Section 204 Authorizations: South Central Idaho Resource Advisory Committee, Mitsui Bussan Commodities, Ltd., 21764–21765 21749 Petition for Declaratory Order: EF Kenilworth, LLC, 21766 Health and Human Services Department See Centers for Disease Control and Prevention Federal Highway Administration See Community Living Administration NOTICES See Food and Drug Administration Environmental Impact Statements; Availability, etc.: See Health Resources and Services Administration Little Cottonwood Canyon, Salt Lake County, UT, 21894– See National Institutes of Health 21895 NOTICES Meetings: Federal Maritime Commission Presidential Advisory Council on Combating Antibiotic- NOTICES Resistant Bacteria, 21791–21792 Agreements Filed, 21777 Requests for Nominations: Establishment of the Interdepartmental Substance Use Federal Motor Carrier Safety Administration Disorders Coordinating Committee, 21792–21794 NOTICES Commercial Driver’s Licenses: Health Resources and Services Administration Pilot Program to Allow Drivers under 21 to Operate NOTICES Commercial Motor Vehicles in Interstate Commerce, Agency Information Collection Activities; Proposals, 21895–21898 Submissions, and Approvals: HRSA Ryan White HIV/AIDS Program AIDS Education Federal Railroad Administration and Training Centers Evaluation Activities, 21790– NOTICES 21791 Application: Approval of Discontinuance or Modification of a Railroad Homeland Security Department Signal System, 21898–21899 See Coast Guard Petition for Waiver of Compliance, 21899 See U.S. Customs and Border Protection

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NOTICES NOTICES Determination Pursuant to the Illegal Immigration Reform Environmental Assessments; Availability, etc.: and Immigrant Responsibility Act, 21798–21803 Deepwater Horizon Oil Spill Open Ocean Trustee Implementation Group Draft Restoration Plan 2; Fish, Industry and Security Bureau Sea Turtles, Marine Mammals, and Mesophotic and NOTICES Deep Benthic Communities, 21753–21755 Agency Information Collection Activities; Proposals, Meetings: Submissions, and Approvals, 21751 Fisheries of the Caribbean; Southeast Data, Assessment Agency Information Collection Activities; Proposals, and Review, 21757–21758 Submissions, and Approvals: Fisheries of the Gulf of Mexico; Southeast Data, International Import Certificate, 21751–21752 Assessment, and Review, 21752 Fisheries of the South Atlantic; Southeast Data, Interior Department Assessment, and Review, 21756–21757 See Bureau of Safety and Environmental Enforcement Mid-Atlantic Fishery Management Council, 21757 See National Park Service New England Fishery Management Council, 21755 Pacific Fishery Management Council, 21752–21753, Justice Department 21755–21756 See Drug Enforcement Administration NOTICES National Park Service Agency Information Collection Activities; Proposals, PROPOSED RULES Submissions, and Approvals, 21814–21815 Hot Springs National Park; Bicycling, 21738–21740 NOTICES Labor Department Intent to Repatriate Cultural Items: See Employment and Training Administration Pueblo Grande Museum, Phoenix, AZ, 21806–21807 See Occupational Safety and Health Administration Inventory Completion: Merit Systems Protection Board Kansas State Historical Society, Topeka, KS, 21803– NOTICES 21804 Opportunity to Submit Ideas for Merit Systems Studies, Robert S. Peabody Institute of Archaeology, Andover, 21835–21836 MA, 21804–21805 Tennessee Department of Environment and Conservation, National Aeronautics and Space Administration Division of Archaeology, Nashville, TN, 21805–21806 NOTICES Meetings: National Science Foundation NASA Advisory Council, 21836 NOTICES National Space-Based Positioning, Navigation and Timing Meetings: Advisory Board, 21836–21837 Advisory Committee for Computer and Information Science and Engineering, 21838 National Endowment for the Humanities Proposal Review Panel for Materials Research, 21837– NOTICES 21838 Meetings: Humanities Panel, 21837 Nuclear Regulatory Commission RULES National Foundation on the Arts and the Humanities List of Approved Spent Fuel Storage Casks: See National Endowment for the Humanities NAC International NAC-UMS Universal Storage System, Certificate of Compliance No. 1015, Amendment No. National Highway Traffic Safety Administration 7, 21687–21691 PROPOSED RULES PROPOSED RULES Record Retention Requirement, 21741–21747 List of Approved Spent Fuel Storage Casks: NAC International NAC-UMS Universal Storage System, National Institutes of Health Certificate of Compliance No. 1015, Amendment No. NOTICES 7, 21728–21729 Meetings: Measurement Standards Used at U.S. Nuclear Power Plants, Center for Scientific Review, 21794–21795, 21797 21727–21728 National Institute of Allergy and Infectious Diseases, NOTICES 21795–21796 Agency Information Collection Activities; Proposals, National Institute of Diabetes and Digestive and Kidney Submissions, and Approvals: Diseases, 21797 Billing Instructions for NRC Cost Type Contract/Orders, National Institute of Environmental Health Sciences, 21838–21839 21795 Generic Clearance for the Collection of Qualitative National Institute of Mental Health, 21796 Feedback on Agency Service Delivery, 21839–21840 National Institute on Aging, 21795–21796 National Institute on Drug Abuse, 21797–21798 Occupational Safety and Health Administration NOTICES National Oceanic and Atmospheric Administration Application for Expansion of Recognition: RULES Bay Area Compliance Laboratories Corp., 21834–21835 Fisheries of the Northeastern United States: QAI Laboratories, Ltd., 21832–21834 Spiny Dogfish Fishery; 2019 and Projected 2020–2021 Grant of a Permanent Variance: Specifications, 21723–21726 Jardon and Howard Technologies, Inc., 21822–21832

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Pension Benefit Guaranty Corporation Transportation Department RULES See Federal Aviation Administration Benefits Payable in Terminated Single-Employer Plans: See Federal Highway Administration Interest Assumptions for Paying Benefits, 21698–21699 See Federal Motor Carrier Safety Administration NOTICES See Federal Railroad Administration Agency Information Collection Activities; Proposals, See Federal Transit Administration Submissions, and Approvals, 21840–21841 See National Highway Traffic Safety Administration Presidential Documents U.S. Customs and Border Protection PROCLAMATIONS Special Observances: NOTICES Mother’s Day (Proc. 9885), 22045–22046 Tuna Tariff-Rate Quota for Calendar Year 2019 Tuna National Charter Schools Week (Proc. 9882), 22037– Classifiable under Subheading 1604.14.22, Harmonized 22040 Tariff Schedule of the United States, 21798 National Defense Transportation Day and National Transportation Week (Proc. 9883), 22041–22042 U.S.-China Economic and Security Review Commission Peace Officers Memorial Day and Police Week (Proc. NOTICES 9884), 22043–22044 Hearing, 21905 ADMINISTRATIVE ORDERS Yemen; Continuation of National Emergency (Notice of May Western Area Power Administration 13, 2019), 22047 NOTICES Rate Order: Securities and Exchange Commission Falcon and Amistad Projects, 21771–21772 NOTICES Application: Long Term Stock Exchange, Inc. for Registration as a National Securities Exchange, 21841–21853 Separate Parts In This Issue Self-Regulatory Organizations; Proposed Rule Changes: Cboe Exchange, Inc., 21863–21866 Part II Nasdaq BX, Inc., 21868–21889 Interior Department, Bureau of Safety and Environmental New York Stock Exchange, LLC, 21861–21863 Enforcement, 21908–21985 NYSE Arca, Inc., 21866–21868 The Nasdaq Stock Market, LLC, 21853–21861 Part III Social Security Administration Federal Reserve System, 21988–22036 NOTICES Privacy Act; Matching Program, 21889–21891 Part IV Presidential Documents, 22037–22047 Susquehanna River Basin Commission NOTICES Meeting, 21891 Reader Aids Projects Approved for Consumptive Uses of Water, 21891– Consult the Reader Aids section at the end of this issue for 21892 phone numbers, online resources, finding aids, and notice Trade Representative, Office of United States of recently enacted public laws. NOTICES To subscribe to the Federal Register Table of Contents Implementing Modification to Section 301 Action: electronic mailing list, go to https://public.govdelivery.com/ China’s Acts, Policies, and Practices Related to accounts/USGPOOFR/subscriber/new, enter your e-mail Technology Transfer, Intellectual Property, and address, then follow the instructions to join, leave, or Innovation, 21892–21893 manage your subscription.

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CFR PARTS AFFECTED IN THIS ISSUE

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

3 CFR Proclamations: 9882...... 22039 9883...... 22041 9884...... 22043 9885...... 22045 Administrative Orders: Notices: Notice of May 13, 2019 ...... 22047 10 CFR 72...... 21687 Proposed Rules: 50...... 21727 52...... 21727 72...... 21728 12 CFR 208...... 21691 211...... 21691 Ch.VI...... 21693 Proposed Rules: 217...... 21988 225...... 21988 238...... 21988 252...... 21988 Ch.X...... 21732 1005...... 21729 14 CFR Proposed Rules: 25...... 21733 29 CFR 4022...... 21698 30 CFR 250...... 21908 33 CFR 100...... 21699 165 (3 documents) ...... 21701, 21703, 21704 36 CFR Proposed Rules: 7...... 21738 40 CFR 180...... 21706 300...... 21708 1552...... 21714 47 CFR 73...... 21718 49 CFR Proposed Rules: 576...... 21741 50 CFR 648...... 21723

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Rules and Regulations Federal Register Vol. 84, No. 94

Wednesday, May 15, 2019

This section of the FEDERAL REGISTER comments on a companion proposed IX. Paperwork Reduction Act Statement contains regulatory documents having general rule published in the Proposed Rules X. Regulatory Flexibility Certification applicability and legal effect, most of which section of this issue of the Federal XI. Regulatory Analysis are keyed to and codified in the Code of Register. XII. Backfitting and Issue Finality Federal Regulations, which is published under XIII. Congressional Review Act 50 titles pursuant to 44 U.S.C. 1510. ADDRESSES: You may submit comments XIV. Availability of Documents by any of the following methods: I. Obtaining Information and The Code of Federal Regulations is sold by • Federal Rulemaking Website: Go to Submitting Comments the Superintendent of Documents. http://www.regulations.gov and search for Docket ID NRC–2019–0070. Address A. Obtaining Information questions about NRC dockets to Carol NUCLEAR REGULATORY Please refer to Docket ID NRC–2019– Gallagher; telephone: 301–415–3463; COMMISSION 0070 when contacting the NRC about email: [email protected]. For the availability of information for this 10 CFR Part 72 technical questions contact the action. You may obtain publicly- individuals listed in the FOR FURTHER [NRC–2019–0070] available information related to this INFORMATION CONTACT section of this action by any of the following methods: RIN 3150–AK33 document. • • Federal Rulemaking Website: Go to Email comments to: http://www.regulations.gov and search List of Approved Spent Fuel Storage [email protected]. If you for Docket ID NRC–2019–0070. Casks: NAC International NAC–UMS® do not receive an automatic email reply • NRC’s Agencywide Documents Universal Storage System, Certificate confirming receipt, then contact us at Access and Management System of Compliance No. 1015, Amendment 301–415–1677. • (ADAMS): You may obtain publicly- No. 7 Fax comments to: Secretary, U.S. available documents online in the Nuclear Regulatory Commission at 301– ADAMS Public Documents collection at AGENCY: Nuclear Regulatory 415–1101. Commission. • http://www.nrc.gov/reading-rm/ Mail comments to: Secretary, U.S. adams.html. To begin the search, select ACTION: Direct final rule. Nuclear Regulatory Commission, ‘‘Begin Web-based ADAMS Search.’’ For Washington, DC 20555–0001, ATTN: SUMMARY: The U.S. Nuclear Regulatory problems with ADAMS, please contact Rulemakings and Adjudications Staff. the NRC’s Public Document Room (PDR) Commission (NRC) is amending its • Hand deliver comments to: 11555 reference staff at 1–800–397–4209, 301– spent fuel storage regulations by Rockville Pike, Rockville, Maryland 415–4737, or by email to pdr.resource@ revising the NAC International NAC– 20852, between 7:30 a.m. and 4:15 p.m. ® nrc.gov. For the convenience of the UMS Universal Storage System listing (Eastern Time) Federal workdays; reader, instructions about obtaining within the ‘‘List of approved spent fuel telephone: 301–415–1677. storage casks’’ to include Amendment For additional direction on obtaining materials referenced in this document No. 7 to Certificate of Compliance No. information and submitting comments, are provided in the ‘‘Availability of 1015. Amendment No. 7 revises the see ‘‘Obtaining Information and Documents’’ section. • NRC’s PDR: You may examine and surveillance requirements for technical Submitting Comments’’ in the purchase copies of public documents at specifications A3.1.6.1 and A3.1.6.2 to SUPPLEMENTARY INFORMATION section of the NRC’s PDR, Room O1–F21, One ensure that adequate monitoring of the this document. White Flint North, 11555 Rockville concrete cask heat removal system is FOR FURTHER INFORMATION CONTACT: Pike, Rockville, Maryland 20852. performed. Amendment No. 7 also Bernard H. White, Office of Nuclear revises the basis for technical Material Safety and Safeguards; B. Submitting Comments specification A3.1.6 to clarify that the telephone: 301–415–6577; email: Please include Docket ID NRC–2019– surveillance requirements for technical [email protected] or Victoria V. 0070 in your comment submission. specification A3.1.6 require a minimum Huckabay, Office of Nuclear Material The NRC cautions you not to include of two outlet air temperature Safety and Safeguards; telephone: 301– identifying or contact information that measurements to provide an average 415–5183; email: Victoria.Huckabay@ you do not want to be publicly outlet temperature. nrc.gov. Both are staff of the U.S. disclosed in your comment submission. DATES: This direct final rule is effective Nuclear Regulatory Commission, The NRC will post all comment July 29, 2019, unless significant adverse Washington, DC 20555–0001. submissions at http:// comments are received by June 14, SUPPLEMENTARY INFORMATION: www.regulations.gov as well as enter the 2019. If this direct final rule is comment submissions into ADAMS. Table of Contents withdrawn as a result of such The NRC does not routinely edit comments, timely notice of the I. Obtaining Information and Submitting comment submissions to remove withdrawal will be published in the Comments identifying or contact information. Federal Register. Comments received II. Rulemaking Procedure If you are requesting or aggregating after this date will be considered if it is III. Background comments from other persons for IV. Discussion of Changes practical to do so, but the NRC is able V. Voluntary Consensus Standards submission to the NRC, then you should to ensure consideration only for VI. Agreement State Compatibility inform those persons not to include comments received on or before this VII. Plain Writing identifying or contact information that date. Comments received on this direct VIII. Environmental Assessment and Finding they do not want to be publicly final rule will also be considered to be of No Significant Environmental Impact disclosed in their comment submission.

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Your request should state that the NRC For detailed instructions on filing measurements to provide an average does not routinely edit comment comments, please see the companion outlet temperature. submissions to remove such information proposed rule published in the As documented in the preliminary before making the comment Proposed Rules section of this issue of safety evaluation report, the NRC submissions available to the public or the Federal Register. performed a safety review of the entering the comment into ADAMS. proposed certificate of compliance III. Background amendment request. There are no II. Rulemaking Procedure Section 218(a) of the Nuclear Waste significant changes to cask design This rule is limited to the changes Policy Act of 1982, as amended, requirements in the proposed certificate contained in Amendment No. 7 to requires that ‘‘[t]he Secretary [of the of compliance amendment. Considering Certificate of Compliance No. 1015 and Department of Energy] shall establish a the specific design requirements for does not include other aspects of the demonstration program, in cooperation each accident condition, the design of NAC–UMS® Universal Storage System with the private sector, for the dry the cask would prevent loss of design. The NRC is using the direct final storage of spent nuclear fuel at civilian containment, shielding, and criticality rule procedure to issue this amendment nuclear power reactor sites, with the control in the event of an accident. This because it represents a limited and objective of establishing one or more amendment does not reflect a significant routine change to an existing certificate technologies that the [Nuclear change in the design or fabrication of of compliance that is expected to be Regulatory] Commission may, by rule, the cask. In addition, any resulting noncontroversial. Adequate protection approve for use at the sites of civilian occupational exposure or offsite dose of public health and safety continues to nuclear power reactors without, to the rates from the implementation of be ensured. The amendment to the rule maximum extent practicable, the need Amendment No. 7 would remain well will become effective on July 29, 2019. for additional site-specific approvals by within the 10 CFR part 20 limits. There However, if the NRC receives significant the Commission.’’ Section 133 of the will be no significant change in the adverse comments on this direct final Nuclear Waste Policy Act states, in part, types or amounts of any effluent rule by June 14, 2019, then the NRC will that ‘‘[t]he Commission shall, by rule, released, no significant increase in the publish a document that withdraws this establish procedures for the licensing of individual or cumulative radiation action and will subsequently address any technology approved by the exposure, and no significant increase in the comments received in a final rule as Commission under section [218(a)] for the potential for, or consequences from, a response to the companion proposed use at the site of any civilian nuclear radiological accidents. rule published in the Proposed Rules power reactor.’’ This direct final rule revises the NAC To implement this mandate, the ® section of this issue of the Federal International NAC–UMS Universal Commission approved dry storage of Register. Absent significant Storage System listing in § 72.214 by spent nuclear fuel in NRC-approved modifications to the proposed revisions adding Amendment No. 7 to Certificate casks under a general license by requiring republication, the NRC will of Compliance No. 1015. The publishing a final rule which added a not initiate a second comment period on amendment consists of the changes new subpart K in part 72 of title 10 of this action. previously described, as set forth in the the Code of Federal Regulations (10 revised certificate of compliance and A significant adverse comment is a CFR) entitled ‘‘General License for technical specifications. The revised comment where the commenter Storage of Spent Fuel at Power Reactor technical specifications are identified in explains why the rule would be Sites’’ (55 FR 29181; July 18, 1990). This the preliminary safety analysis report. inappropriate, including challenges to rule also established a new subpart L in The amended NAC International the rule’s underlying premise or 10 CFR part 72 entitled ‘‘Approval of NAC–UMS® Universal Storage System approach, or would be ineffective or Spent Fuel Storage Casks,’’ which design, when used under the conditions unacceptable without a change. A contains procedures and criteria for specified in the certificate of comment is adverse and significant if: obtaining NRC approval of spent fuel compliance, the technical (1) The comment opposes the rule and storage cask designs. The NRC specifications, and the NRC’s provides a reason sufficient to require a subsequently issued a final rule on regulations, will meet the requirements substantive response in a notice-and- October 19, 2000, that approved the of 10 CFR part 72; therefore, adequate comment process. For example, a NAC–UMS® Universal Storage System protection of public health and safety substantive response is required when: design and added it to the list of NRC- will continue to be ensured. When this (a) The comment causes the NRC to approved cask designs in § 72.214 as direct final rule becomes effective, reevaluate (or reconsider) its position or Certificate of Compliance No. 1015 (65 persons who hold a general license conduct additional analysis; FR 62581). under § 72.210 may load spent nuclear (b) The comment raises an issue fuel into NAC–UMS® Universal Storage IV. Discussion of Changes serious enough to warrant a substantive System casks that meet the criteria of response to clarify or complete the On September 18, 2018, NAC Amendment No. 7 to Certificate of record; or International submitted a request to the Compliance No. 1015 under § 72.214. (c) The comment raises a relevant NRC to amend Certificate of Compliance issue that was not previously addressed No. 1015. Amendment No. 7 revises the V. Voluntary Consensus Standards or considered by the NRC. surveillance requirements for technical The National Technology Transfer (2) The comment proposes a change specifications A3.1.6.1 and A3.1.6.2 to and Advancement Act of 1995 (Pub. L. or an addition to the rule, and it is ensure that adequate monitoring of the 104–113) requires that Federal agencies apparent that the rule would be concrete cask heat removal system is use technical standards that are ineffective or unacceptable without performed. Amendment No. 7 also developed or adopted by voluntary incorporation of the change or addition. revises the basis for technical consensus standards bodies unless the (3) The comment causes the NRC to specification A3.1.6 to clarify that the use of such a standard is inconsistent make a change (other than editorial) to surveillance requirements for technical with applicable law or otherwise the rule, certificate of compliance, or specification A3.1.6 require a minimum impractical. In this direct final rule, the technical specifications. of two outlet air temperature NRC revises the NAC International

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NAC–UMS® Universal Storage System B. The Need for the Action accidental cask drop, lightning effects, design listed in § 72.214, ‘‘List of This direct final rule amends the fire, explosions, and other incidents. approved spent fuel storage casks.’’ This entry for the NAC International NAC– Considering the specific design requirements for each accident action does not constitute the UMS® Universal Storage System design condition, the design of the cask would establishment of a standard that within the list of approved spent fuel prevent loss of confinement, shielding, contains generally applicable storage casks that power reactor and criticality control in the event of an requirements. licensees can use to store spent fuel at accident. If there is no loss of reactor sites under a general license. VI. Agreement State Compatibility confinement, shielding, or criticality The changes proposed in Amendment control, the environmental impacts Under the ‘‘Policy Statement on No. 7 are needed to specify the resulting from an accident would be Adequacy and Compatibility of minimum number of outlet air insignificant. This amendment does not Agreement State Programs’’ approved by temperature measurement required to reflect a change in design or fabrication the Commission on June 30, 1997, and ensure adequate heat removal and published in the Federal Register on of the cask. consistency with other NAC Therefore, any resulting occupational September 3, 1997 (62 FR 46517), this International storage systems, and to rule is classified as Compatibility exposure or offsite dose rates from the minimize the potential for human error implementation of Amendment No. 7 Category ‘‘NRC.’’ Compatibility is not when more than one NAC International required for Category ‘‘NRC’’ would remain well within the 10 CFR system is used at an independent spent part 20 limits. Thus, the proposed regulations. The NRC program elements fuel storage installation. Specifically, in this category are those that relate changes will not result in any Amendment No. 7 revises the radiological or non-radiological directly to areas of regulation reserved surveillance requirements for technical to the NRC by the Atomic Energy Act of environmental impacts that significantly specifications A3.1.6.1 and A3.1.6.2 to differ from the environmental impacts 1954, as amended, or the provisions of ensure that adequate monitoring of the 10 CFR chapter I. Although an evaluated in the environmental concrete cask heat removal system is assessment supporting the July 18, 1990, Agreement State may not adopt program performed. Amendment No. 7 also elements reserved to the NRC, and the final rule. There will be no significant revises the basis for technical change in the types or significant Category ‘‘NRC’’ does not confer specification A3.1.6 to clarify that the regulatory authority on the State, the revisions in the amounts of any effluent surveillance requirements for technical released, no significant increase in the State may wish to inform its licensees specification A3.1.6 require a minimum of certain requirements by means individual or cumulative radiation of two outlet air temperature exposure, and no significant increase in consistent with the particular State’s measurements to provide an average administrative procedure laws. the potential for, or consequences from, outlet temperature. radiological accidents. The NRC VII. Plain Writing C. Environmental Impacts of the Action documented its safety findings in the preliminary safety evaluation report. The Plain Writing Act of 2010 (Pub. On July 18,1990, the NRC issued an L. 111–274) requires Federal agencies to amendment to 10 CFR part 72 to D. Alternative to the Action write documents in a clear, concise, and provide for the storage of spent fuel The alternative to this action is to well-organized manner. The NRC has under a general license in cask designs deny approval of Amendment No. 7 and written this document to be consistent approved by the NRC (55 FR 29181). end the direct final rule. Consequently, with the Plain Writing Act as well as the The potential environmental impact of any 10 CFR part 72 general licensee that Presidential Memorandum, ‘‘Plain using NRC-approved storage casks was seeks to load spent nuclear fuel into the Language in Government Writing,’’ initially analyzed in the environmental NAC International NAC–UMS® published June 10, 1998 (63 FR 31885). assessment for the 1990 final rule. The Universal Storage System in accordance environmental assessment for this VIII. Environmental Assessment and with the changes described in proposed Amendment No. 7 tiers off of the Amendment No. 7 would have to Finding of No Significant environmental assessment for the July Environmental Impact request an exemption from the 18, 1990, final rule. Tiering on past requirements of §§ 72.212 and 72.214. A. The Action environmental assessments is a standard Under this alternative, interested process under the National licensees would have to prepare, and The action is to amend § 72.214 to Environmental Policy Act of 1969, as the NRC would have to review, a revise the NAC International NAC– amended. ® ® separate exemption request, thereby UMS Universal Storage System listing The NAC International NAC–UMS increasing the administrative burden within the ‘‘List of approved spent fuel Universal Storage System is designed to upon the NRC and the costs to each storage casks’’ to include Amendment mitigate the effects of design basis licensee. Therefore, the environmental No. 7 to Certificate of Compliance No. accidents that could occur during impacts would be the same as, or more 1015. Amendment No. 7 revises the storage. Design basis accidents account likely greater than, the proposed action. surveillance requirements for technical for human-induced events and the most specifications A3.1.6.1 and A3.1.6.2 to severe natural phenomena reported for E. Alternative Use of Resources ensure that adequate monitoring of the the site and surrounding area. Approval of Amendment No. 7 to concrete cask heat removal system is Postulated accidents analyzed for an Certificate of Compliance No. 1015 performed. Amendment No. 7 also independent spent fuel storage would result in no irreversible revises the basis for technical installation, the type of facility at which commitment of resources. specification A3.1.6 to clarify that the a holder of a power reactor operating surveillance requirements for technical license would store spent fuel in casks F. Agencies and Persons Contacted specification A3.1.6 require a minimum in accordance with 10 CFR part 72, No agencies or persons outside the of two outlet air temperature include tornado winds and tornado- NRC were contacted in connection with measurements to provide an average generated missiles, a design basis the preparation of this environmental outlet temperature. earthquake, a design basis flood, an assessment.

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G. Finding of No Significant Impact designs approved by the NRC (55 FR storage casks,’’ for Certificate of The environmental impacts of the 29181). Any nuclear power reactor Compliance No. 1015 for the NAC ® action have been reviewed under the licensee can use NRC-approved cask International NAC–UMS Universal requirements in the National designs to store spent nuclear fuel if it Storage System. The revision changes Environmental Policy Act of 1969, as notifies the NRC in advance, the spent the surveillance requirements for amended, and the NRC’s regulations in fuel is stored under the conditions technical specifications A3.1.6.1 and subpart A of 10 CFR part 51, specified in the cask’s certificate of A3.1.6.2 to ensure that adequate ‘‘Environmental Protection Regulations compliance, and the conditions of the monitoring of the concrete cask heat for Domestic Licensing and Related general license are met. A list of NRC- removal system is performed, and also Regulatory Functions.’’ Based on the approved cask designs is contained in revises the basis for technical § 72.214. On October 19, 2000, the NRC foregoing environmental assessment, the specification A3.1.6 to clarify that the NRC concludes that this direct final rule issued an amendment to 10 CFR part 72 ® surveillance requirements for technical entitled ‘‘List of Approved Spent Fuel that approved the NAC–UMS Universal Storage System design by specification A3.1.6 require a minimum Storage Casks: NAC International NAC– of two outlet air temperature UMS® Universal Storage System, adding it to the list of NRC-approved cask designs in § 72.214 (65 FR 62581). measurements to provide an average Certificate of Compliance No. 1015, outlet temperature. Amendment No. 7,’’ will not have a On September 18, 2018, NAC significant effect on the human International submitted a request to the Amendment No. 7 to Certificate of environment. Therefore, the NRC has NRC to amend Certificate of Compliance Compliance No. 1015 for the NAC determined that an environmental No. 1015 by adding Amendment No. 7. International NAC–UMS® Universal NAC International submitted this Storage System was initiated by NAC impact statement is not necessary for ® this direct final rule. application to amend the NAC–UMS International and was not submitted in Universal Storage System as described response to new NRC requirements, or IX. Paperwork Reduction Act in Section IV, ‘‘Discussion of Changes,’’ an NRC request for amendment. Statement of this document. The alternative to this action is to Amendment No. 7 applies only to new This direct final rule does not contain casks fabricated and used under any new or amended collections of withhold approval of Amendment No. 7 and to require any 10 CFR part 72 Amendment No. 7. These changes do information subject to the Paperwork not affect existing users of the NAC Reduction Act of 1995 (44 U.S.C. 3501 general licensee seeking to load spent International NAC–UMS® Universal et seq.). Existing collections of nuclear fuel into the NAC International ® Storage System, and the current information were approved by the NAC–UMS Universal Storage System Office of Management and Budget, under the changes described in Amendment No. 6 continues to be approval number 3150–0132. Amendment No. 7 to request an effective for existing users. While exemption from the requirements of current users of this storage system may Public Protection Notification §§ 72.212 and 72.214. Under this comply with the new requirements in The NRC may not conduct or sponsor, alternative, each interested 10 CFR part Amendment No. 7, this would be a and a person is not required to respond 72 licensee would have to prepare, and voluntary decision on the part of current to, a request for information or an the NRC would have to review, a users. separate exemption request, thereby information collection requirement For these reasons, Amendment No. 7 increasing the administrative burden unless the requesting document to Certificate of Compliance No. 1015 displays a currently valid Office of upon the NRC and the costs to each does not constitute backfitting under Management and Budget control licensee. § 72.62 or § 50.109(a)(1), or otherwise number. Approval of this direct final rule is consistent with previous NRC actions. represent an inconsistency with the X. Regulatory Flexibility Certification Further, as documented in the issue finality provisions applicable to Under the Regulatory Flexibility Act preliminary safety evaluation report and combined licenses in part 52. of 1980 (5 U.S.C. 605(b)), the NRC environmental assessment, this direct Accordingly, the NRC has not prepared certifies that this direct final rule will final rule will have no adverse effect on a backfit analysis for this rulemaking. not, if issued, have a significant public health and safety or the XIII. Congressional Review Act economic impact on a substantial environment. This direct final rule has number of small entities. This direct no significant identifiable impact or This direct final rule is not a rule as final rule affects only part 50 and part benefit on other Government agencies. defined in the Congressional Review 52 licensees authorized to possess or Based on this regulatory analysis, the Act. operate nuclear power plant reactors NRC concludes that the requirements of under that part, independent spent fuel this direct final rule are commensurate XIV. Availability of Documents storage installation general licensees with the NRC’s responsibilities for using the NAC International NAC– public health and safety and the The documents identified in the UMS® Universal Storage System, and common defense and security. No other following table are available to NAC International. These entities do not available alternative is believed to be as interested persons through one or more fall within the scope of the definition of satisfactory, and therefore, this action is of the following methods, as indicated. small entities set forth in the Regulatory recommended. Flexibility Act or the size standards Document ADAMS XII. Backfitting and Issue Finality accession No. established by the NRC (10 CFR 2.810). The NRC has determined that the XI. Regulatory Analysis Letter from NAC Inter- ML18264A014 backfit rule (10 CFR 72.62) does not national dated September On July 18, 1990, the NRC issued an apply to this direct final rule. Therefore, 18, 2018, Submitting Re- amendment to 10 CFR part 72 to a backfit analysis is not required. This quest for Amendment to provide for the storage of spent nuclear direct final rule revises the listing in Certificate of Compliance fuel under a general license in cask § 72.214, ‘‘List of approved spent fuel No. 1015.

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ADAMS 2236, 2237, 2238, 2273, 2282, 2021); Energy Enforcement for Mortgage Licensing Act Document accession No. Reorganization Act of 1974, secs. 201, 202, (the S.A.F.E. Act). Title X of the Dodd- 206, 211 (42 U.S.C. 5841, 5842, 5846, 5851); Frank Wall Street Reform and Consumer Proposed Certificate of ML19057A267 National Environmental Policy Act of 1969 Protection Act (Dodd-Frank Act) (42 U.S.C. 4332); Nuclear Waste Policy Act Compliance No. 1015 transferred rulemaking authority for a Amendment No. 7, Certifi- of 1982, secs. 117(a), 132, 133, 134, 135, 137, cate of Compliance for 141, 145(g), 148, 218(a) (42 U.S.C. 10137(a), number of consumer financial Spent Fuel Storage Casks. 10152, 10153, 10154, 10155, 10157, 10161, protection laws, including the S.A.F.E. Proposed Certificate of ML19057A265 10165(g), 10168, 10198(a)); 44 U.S.C. 3504 Act, from the Board to the Bureau of Compliance No. 1015 note. Consumer Financial Protection Amendment No. 7, Tech- ■ 2. In § 72.214, Certificate of (Bureau). In December 2011, the Bureau nical Specifications, Ap- published an interim final rule, pendix A. Compliance 1015 is revised to read as follows: incorporating the S.A.F.E. Act into its Proposed Certificate of ML19057A266 Regulations G and H. In April 2016, the Compliance No. 1015 § 72.214 List of approved spent fuel Bureau finalized the interim final rule. Amendment No. 7, Tech- storage casks. nical Specifications, Ap- Accordingly, the Board is repealing its pendix B. * * * * * S.A.F.E. Act regulations. Certificate of Compliance ML19057A268 Certificate Number: 1015. DATES: The final rule is effective June No. 1015 Amendment No. Initial Certificate Effective Date: 14, 2019. 7, Preliminary Safety Eval- November 20, 2000. FOR FURTHER INFORMATION CONTACT: uation Report. Amendment Number 1 Effective Date: Clinton Chen, Senior Attorney, (202) February 20, 2001. 452–3952, Justyna Bolter, Attorney, The NRC may post materials related Amendment Number 2 Effective Date: (202) 452–2686, Legal Division, Board of to this document, including public December 31, 2001. Governors of the Federal Reserve comments, on the Federal Rulemaking Amendment Number 3 Effective Date: System, 20th and C Streets NW, website at http://www.regulations.gov March 31, 2004. Washington, DC 20551. For users of under Docket ID NRC–2019–0070. The Amendment Number 4 Effective Date: Telecommunications Device for the Deaf Federal Rulemaking website allows you October 11, 2005. (TDD) only, contact (202) 263–4869. to receive alerts when changes or Amendment Number 5 Effective Date: additions occur in a docket folder. To January 12, 2009. SUPPLEMENTARY INFORMATION: subscribe: (1) Navigate to the docket Amendment Number 6 Effective Date: I. Background folder (NRC–2019–0070); (2) click the January 7, 2019. ‘‘Sign up for Email Alerts’’ link; and (3) Amendment Number 7 Effective Date: The S.A.F.E. Act mandates a enter your email address and select how July 29, 2019. nationwide licensing and registration frequently you would like to receive SAR Submitted by: NAC system for residential mortgage loan 1 emails (daily, weekly, or monthly). International, Inc. originators. The S.A.F.E. Act requires SAR Title: Final Safety Analysis residential mortgage loan originators List of Subjects in 10 CFR Part 72 Report for the NAC–UMS Universal employed by depository institutions, Administrative practice and Storage System. subsidiaries that are owned and procedure, Hazardous waste, Indians, Docket Number: 72–1015. controlled by a depository institution Intergovernmental relations, Nuclear Certificate Expiration Date: November and regulated by a federal banking energy, Penalties, Radiation protection, 20, 2020. agency, and institutions regulated by the Reporting and recordkeeping Model Number: NAC–UMS. Farm Credit Administration (FCA) to requirements, Security measures, Spent * * * * * register with the Nationwide Mortgage fuel, Whistleblowing. Licensing System and Registry, obtain a Dated at Rockville, Maryland, this 2nd day unique identifier, and maintain such For the reasons set out in the of May, 2019. preamble and under the authority of the registration. Originally, the federal For the Nuclear Regulatory Commission. Atomic Energy Act of 1954, as amended; registration requirements of the S.A.F.E. the Energy Reorganization Act of 1974, Kim S. West, Act were implemented through a as amended; the Nuclear Waste Policy Acting, Executive Director for Operations. coordinated rulemaking of the federal Act of 1982, as amended; and 5 U.S.C. [FR Doc. 2019–10017 Filed 5–14–19; 8:45 am] banking agencies and the FCA, the 552 and 553; the NRC is adopting the BILLING CODE 7590–01–P agencies with authority over the federal following amendments to 10 CFR part registration requirements under the 72: S.A.F.E. Act (the ‘‘federal registry FEDERAL RESERVE SYSTEM agencies’’).2 The Board incorporated the PART 72—LICENSING S.A.F.E. Act in its Regulation H, 12 CFR REQUIREMENTS FOR THE 12 CFR Parts 208 and 211 part 208, subpart I, and Regulation K, 12 INDEPENDENT STORAGE OF SPENT [Docket No. R–1622 and RIN 7100 AF–16] CFR 211.24(k). NUCLEAR FUEL, HIGH–LEVEL Title X of the Dodd-Frank Act RADIOACTIVE WASTE, AND Regulations H and K: Registration of amended a number of consumer REACTOR–RELATED GREATER THAN Mortgage Loan Originators financial protection laws, including the CLASS C WASTE S.A.F.E. Act.3 The Dodd-Frank Act AGENCY: Board of Governors of the ■ 1. The authority citation for part 72 Federal Reserve System. 1 12 U.S.C. 5101 et seq. continues to read as follows: ACTION: Final rule. 2 75 FR 44656 (July 28, 2010). The rules were promulgated by the Board; the Office of the Authority: Atomic Energy Act of 1954, SUMMARY: The Board of Governors of the Comptroller of the Currency (OCC); the Federal secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, Deposit Insurance Corporation (FDIC); the Office of 183, 184, 186, 187, 189, 223, 234, 274 (42 Federal Reserve System (Board) is Thrift Supervision, Treasury (OTS); the FCA; and U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, repealing its regulations that the National Credit Union Administration (NCUA). 2099, 2111, 2201, 2210e, 2232, 2233, 2234, incorporated the Secure and Fair 3 Public Law 111–203, 124 Stat. 1376 (2010).

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transferred rulemaking authority for the If Congress were to amend the S.A.F.E. List of Subjects S.A.F.E. Act from the federal registry Act in the future to restore rulemaking 12 CFR Part 208 agencies to the Bureau, effective July 21, authority to the Board, the Board could 4 2011. In connection with the transfer of adopt rules under that authority at that Accounting, Agriculture, Banks, rulemaking authority for the S.A.F.E. time. Accordingly, the Board is Banking, Confidential business Act to the Bureau, the Bureau published finalizing the repeal of its regulations information, Consumer protection, an interim final rule to incorporate the that incorporated the S.A.F.E. Act as Crime, Currency, Insurance, S.A.F.E. Act into its own Regulations G proposed. Investments, Mortgages, Reporting and and H, 12 CFR parts 1007 and 1008 recordkeeping requirements, Securities. (Bureau Interim Final Rule).5 In April III. Final Regulatory Flexibility 2016, the Bureau finalized the Bureau Analysis 12 CFR Part 211 Interim Final Rule as part of a larger initiative of finalizing interim final An initial regulatory flexibility Exports, Foreign banking, Holding rules.6 The Bureau’s regulations that analysis (IRFA) was included in the companies, Investments, Reporting and incorporate the S.A.F.E. Act proposal in accordance with section 3(a) recordkeeping requirements. substantially duplicate the federal of the Regulatory Flexibility Act (RFA), Authority and Issuance registry agencies’ coordinated rules and 5 U.S.C. 601 et seq. In the IRFA, the cover the entities that were previously Board requested comment on the effect For the reasons set forth in the subject to the federal registry agencies’ of the Proposed Rule on small entities preamble, chapter II of title 12 of the rules. In September 2018, the Board and on any significant alternatives that Code of Federal Regulations is amended published a proposal to repeal its would reduce the regulatory burden on as follows: regulations that incorporated the small entities. The Board did not receive S.A.F.E. Act (Proposed Rule).7 any comments. The RFA requires an PART 208—MEMBERSHIP OF STATE II. Discussion agency to prepare a final regulatory BANKING INSTITUTIONS IN THE flexibility analysis (FRFA) unless the FEDERAL RESERVE SYSTEM The Board received two comments on (REGULATION H) the Proposed Rule. One commenter agency certifies that the rule will not, if supported the Proposed Rule, while the promulgated, have a significant ■ other urged the Board to retain the economic impact on a substantial 1. The authority citation for part 208 regulations that it proposed to repeal. number of small entities. In accordance continues to read as follows: For reasons discussed below, the Board with section 3(a) of the RFA, the Board Authority: 12 U.S.C. 24, 36, 92a, 93a, is finalizing the repeal of its regulations has reviewed the final regulation. Based 248(a), 248(c), 321–338a, 371d, 461, 481–486, that incorporated the S.A.F.E. Act as on its analysis, and for the reasons 601, 611, 1814, 1816, 1818, 1820(d)(9), proposed. stated below, the Board certifies that the 1833(j), 1828(o), 1831, 1831o, 1831p–1, The commenter that supported the rule will not have a significant 1831r–1, 1831w, 1831x, 1835a, 1882, 2901– Proposed Rule stated that the economic impact on a substantial 2907, 3105, 3310, 3331–3351, 3353, and registration of mortgage loan originators number of small entities. 3906–3909; 15 U.S.C. 78b, 781(b), 78l(i), 780– is burdensome for a small community The final rule is intended to reflect 4(c)(5), 78q, 78q–1, 78w, 1681s, 1681w, 6801 bank that originates only a handful of and 6805, 31 U.S.C. 5318; 42 U.S.C. 4012a, Congress’s transfer of rulemaking mortgage loans each year. The Board 4104b, 4106, and 4128. notes that, although it is repealing its authority for the S.A.F.E. Act from the regulations that incorporated the Board to the Bureau by repealing the Subpart I—[Removed and Reserved] S.A.F.E. Act, the statutory requirement Board’s regulations that incorporated to register mortgage loan originators still the S.A.F.E. Act. The repeal does not ■ 2. Subpart I, consisting of §§ 208.101 exists in the S.A.F.E. Act, as impose any recordkeeping, reporting, or through 208.105 and appendix A to incorporated into the Bureau’s compliance requirements on any subpart I, is removed and reserved. regulations. entities. Any entity that is currently The commenter that opposed the covered by the S.A.F.E. Act is subject to PART 211—INTERNATIONAL Proposed Rule urged the Board to retain the rules issued by the Bureau, located BANKING OPERATIONS its regulations that incorporated the in 12 CFR part 1007 and 1008. (REGULATION K) S.A.F.E. Act in order to retain the ability Accordingly, the Board does not expect to issue any S.A.F.E. Act rules in the this final rule to have a significant ■ 3. The authority citation for part 211 future. The Board’s authority to issue economic impact on a substantial continues to read as follows: rules, however, is determined by statute. number of small entities. Authority: 12 U.S.C. 221 et seq., 1818, 4 See Public Law 111–203, sections 1061 & 1100. IV. Paperwork Reduction Act 1835a, 1841 et seq., 3101 et seq., 3901 et seq., The Dodd-Frank Act generally excludes from this and 5101 et seq.; 15 U.S.C. 1681s, 1681w, transfer of authority, subject to certain exceptions, In accordance with the Paperwork 6801 and 6805. any rulemaking authority over a motor vehicle Reduction Act (PRA) of 1995 (44 U.S.C. dealer that is predominantly engaged in the sale § 211.24 [Amended] and servicing of motor vehicles, the leasing and 3506; 5 CFR 1320 Appendix A.1), the servicing of motor vehicles, or both. Public Law Board reviewed the rule under the ■ 4. In § 211.24, paragraph (k) is 111–203, section 1029. The rulemaking authority authority delegated to the Federal removed. retained by the Board under Section 1029 of the Reserve by the Office of Management Dodd-Frank Act does not extend to residential By order of the Board of Governors of the mortgages. Thus, all rulemaking authority under the and Budget (OMB). The final rule Federal Reserve System, May 9, 2019. S.A.F.E. Act, which pertains only to mortgage loan contains no collections of information originator registrations, was transferred to the Margaret McCloskey Shanks, Bureau. under to the PRA. See 44 U.S.C. 3502(3). Deputy Secretary of the Board. 5 76 FR 78483 (Dec. 19, 2011). Accordingly, there is no paperwork 6 81 FR 25323 (April 28, 2016). burden associated with the final rule. [FR Doc. 2019–09948 Filed 5–14–19; 8:45 am] 7 83 FR 48402 (Sept. 25, 2018). BILLING CODE 6210–01–P

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FARM CREDIT ADMINISTRATION and overwhelmingly cost-benefit 106–229—Electronic Signatures in justified rules identified by industry Global and National Commerce Act. 12 CFR Chapter VI commenters. This law has not changed since we RIN 3052–AD24 This document discusses the published the FCA’s E-Sign Regulations; comments raised about FCA regulations therefore, we are unable to make any Statement on Regulatory Burden and FCA activities. Many of the revisions. comments concern changes that we C. Outside Director AGENCY: Farm Credit Administration. cannot implement because they are ACTION: Final notice of intent. inconsistent with the Farm Credit Act of Comment: Section 611.220(a)(1) 1971, as amended (Act), safety and currently precludes an ‘‘outside’’ SUMMARY: This document is part of the soundness, and/or other FCA guidance director from serving on the board of an Farm Credit Administration’s (FCA, our, or position. Some comments raise issues FCA chartered Service Corporation. We or we) initiative to consider the that are the subject of existing regulatory believe this provision is more restrictive appropriateness of the requirements we projects scheduled for consideration by than is required by the Act (which, as impose on Farm Credit System (FCS or FCA as set forth in our 2019 Regulatory you know, only requires a bank or System) institutions, including the Projects Plan, which is available on the association to have one outside Federal Agricultural Mortgage FCA website, and those issues will be director). As long as the prospective Corporation (Farmer Mac). On May 18, addressed in the planned regulatory bank or association director candidate is 2017, we requested public comments, projects. In other cases, commenters not a director of another institution at and this document responds to those identify issues that need further the time of his selection, the Act’s comments. evaluation before we can consider requirement is satisfied. Additionally, the arbitrary prohibition DATES: May 15, 2019. whether changes are appropriate. on outside directors serving on service FOR FURTHER INFORMATION CONTACT: III. Comments That Did Not Result in corporations is contrary to the spirit of Gaylon J. Dykstra, Senior Policy Regulatory Changes the Act (creating a ‘‘second class’’ of Analyst, Office of Regulatory Policy, A. Examinations directors), and counterproductive in Farm Credit Administration, McLean, terms of keeping qualified directors VA 22102–5090, (703) 883–4322, TTY Comment: Given the strong financial from serving on service corporation (703) 883–4056; or Mary Alice Donner, performance and credit quality of many boards. Senior Counsel, Office of General institutions, the agency should consider FCA Response: The comment is Counsel, Farm Credit Administration, lengthening the time between exams for seeking to allow an outside director to McLean, VA 22102–5090, (703) 883– highly rated institutions. This would simultaneously serve on two boards of 4020, TTY (703) 883–4056. not only reduce costs at the institution directors—a System institution and a SUPPLEMENTARY INFORMATION: level, but also allow FCA to better service corporation. We cannot make leverage its own resources as well as the recommended change because it I. Objective reduce its own costs. conflicts with statute. Section 1.4 of the The objective of this final notice is to FCA Response: We cannot make the Act requires that ‘‘at least one member inform the public of our response to the recommended change because it shall be elected by the other directors, comments submitted to us regarding our conflicts with statute. Section 5.19 of which member shall not be a director, request to identify regulations that they the Act requires that ‘‘except for Federal officer, employee, or stockholder of a considered burdensome, ineffective, land bank associations, each institution System institution.’’ Section 4.27 of the duplicative, or not based on law. of the System shall be examined by Act provides that a service organization Farm Credit Administration examiners II. Background chartered by FCA is a Farm Credit at such times as the Board may System institution. We also believe that On May 18, 2017, we published a determine, but in no event less than independence of the outside director is document in the Federal Register once during each 18-month period.’’ critical. We note that some service inviting the public to comment on our Therefore, we cannot extend the time corporations are jointly owned by regulations that may duplicate other between examinations to longer than 18 several System institutions, and service requirements, are ineffective, are not months. However, we would like to note on the service corporation board could based on law, or impose burdens that that despite the mandated examination impair the independence of the outside are greater than the benefits received.1 cycle, we very much do leverage our director of the bank or association. We received letters from Farm Credit resources, as suggested in the comment. East, ACA; Capital Farm Credit, ACA; We do this through our risk-based D. Unincorporated Business Entities CoBank, ACB; the Farm Credit Council; examination approach, wherein (UBE) and the Institute for Policy Integrity at resources are allocated based on an Comment: Eliminate the regulatory the New York University School of Law. institution’s risk profile, and our use of approval process for formation of UBEs The letters commented on regulations off-site, electronic data throughout the pursuant to § 611.1155 and address concerning: Governance, lending, examination process. compliance through the examination capital, investments, borrower rights process. and other FCA regulations and B. E-Sign Notifications FCA Response: We are not persuaded guidance. In addition, the Institute for Comment: We encourage the agency by the comment that a change is needed. Policy Integrity encouraged FCA to stay to reconsider the exceptions to ‘‘E-Sign’’ The UBE rule includes a notice-only focused on its mandate to identify notifications, and in particular those in provision in § 611.1154 to simplify the outdated, unnecessary, ineffective, or Subpart D of part 617. We note that E- process and avoid unnecessary net costly regulations for repeal, Sign notifications of adverse credit administrative burdens and costs when replacement, or modification and not to decisions are permitted under ECOA investing in UBEs whose activities we instead prioritize recently promulgated regulations. have experience in overseeing. For FCA Response: The FCA E-Sign investments in any other UBEs, we 1 See 82 FR 22762. Regulations comply with Public Law continue to believe that it is prudent to

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have System institutions get our pre- FCA regulation 614.4120 requires the Memorandum is available on our approval to avoid the burden and cost board of directors of each System bank website, www.fca.gov, under the ‘Laws associated with reversing investments to adopt policies and procedures and regulations’ heading. that we later deem to be inappropriate, governing the making of direct loans for H. Loan Participation unsafe or unsound, or contrary to law direct lender associations and OFIs. through the examination process. FCA While the term general financing Comment: The requirements for will, however, consider whether agreement is the same term used for evidencing an independent credit additional categories of UBE both direct lending associations and judgement by a purchaser of a loan investments could be included in the OFIs, the regulations do not require that participation from another System notice-only provisions to reduce burden they be the same or similar, only that institution are unduly burdensome. Of on System institutions. the adopted policies and procedures course, each institution needs to be prescribe lending policies and loan E. Aquatic Related Businesses Industry accountable for the loans, including underwriting standards that are purchases of participations, in their Comment: Farm Credit may currently consistent with sound financial and portfolio. Some form of simplified credit finance ‘‘farm related businesses’’ as credit practices. summary, or other analysis by a credit eligible entities in the agriculture sector, The request in the comment to officer of the purchasing institution and should also be permitted to finance increase the document delivery should be adequate to satisfy the related businesses which support the deadline to 30 days lacks any requirements for an independent commercial fishing industry. justification or support. The deadline in decision. Commercial fishing is the economic § 614.4130(b) currently is 10 business FCA Response: This issue was backbone of many rural communities in days after execution of the documents. thoroughly studied when we finalized some parts of the nation, and producers The need for the requested change is not this regulation, and our analysis has not and harvesters of seafood are themselves readily apparent, especially given that changed.3 In fact, one of the points we very dependent on many types of the documents could easily be made in the preamble was that ‘‘Section infrastructure for their long-term submitted to FCA electronically. 614.4325(e) does not require the viability. FCA regulations that address Nonetheless, while we are not making participating institution to prepare a ‘‘related businesses’’ should be modified any change at this time, we may lengthy analysis or to compile separate to match overall lending authorities (for consider the request as part of a future documentation from the originating or Farmers, Ranchers and Aquatic regulatory project. lead lender. However, § 614.4325(e) Producers and Harvesters) so that G. Updated Financial Information requires the purchasing institution to financing for ‘‘fishing related perform an objective, independent, and businesses’’ is specifically permitted. Comment: Section 614.4150 does not thorough analysis when it makes a loan FCA Response: We responded to this specifically direct institutions to decision.’’ An institution cannot comment in past Regulatory Burden annually request updated financial delegate its independent credit decision. Notices. Our latest response was ‘‘[w]ith information from customers. However, However, we continue to believe that respect to aquatic-related services, anecdotal evidence suggests that this is this regulation provides flexibility for an sections 1.9(2), 1.11(c)(1), and 2.4(a)(3) a requirement from the Office of institution to streamline the decision- of the Act authorize title I and II System Examination. This issue dates back to making process and documentation of lenders to extend credit to businesses the credit crisis of the 1980s. Hopefully, the decision, while ensuring that it that furnish farm-related services to we are past the time when this fulfills its duty to protect institution farmers and ranchers directly related to requirement is appropriate on any kind assets. their on-farm operation needs. The Act of an ‘‘across the board’’ basis. does not reference financing businesses FCA Response: We agree with the I. Purchase of Whole Loans that furnish aquatic-related services to comment that an ‘‘across the board’’ Comment: We again urge FCA to aquatic producers and harvesters. We basis for updating financial information reconsider its prohibition on the are closely following this topic.’’ 2 is not appropriate. In fact, we took this purchase of whole loans by System Although our position on this issue position in 1997 when we removed the institutions. Several years ago, FCA took remains unchanged, we continue to requirement for annual updating of the step to recognize the purchase of follow any interest or developments on financial information from the 100% participations in loans. Allowing this topic. regulations. Instead, current regulations require that System institution boards System institutions to purchase whole F. Other Financing Institutions (OFI) and management adopt written policies loans would be of real benefit to farmers Comment: Modify § 614.4120 to allow and procedures that set the standards and ranchers in their financial planning, System banks and individual OFI for updating borrower financial without increasing the credit exposure customers to develop financing information. These standards, along to the System over that created by the agreements that are independent of the with their implementation, are then the purchase of participations. Agricultural Credit Association basis for evaluating how well the board FCA Response: We plan to address financing structure and allows them to and management is managing the this issue in part through a notice of have a general financing agreement that institution. proposed rulemaking regarding those meets the unique needs and varying We further address this issue in an portions of commercial bank loans with organizational structures of OFIs. Informational Memorandum dated, unconditional guarantees by the U.S. Additionally, § 614.4130(b) should be March 29, 2011, Loan Underwriting Department of Agriculture. Depending modified to allow for the delivery to the Standards—Borrower Financial upon the outcome of that regulatory FCA of all documents related to the Information. In this memorandum, we project, those transactions may be GFA within 30 days of execution. convey our expectations regarding the considered investments due to the way FCA Response: We are not persuaded collection of borrower financial in which they are offered for sale and by the comment that a change is needed. information and the impact of this resale. information on loan underwriting 2 See 79 FR 42238 (July 21, 2014). standards. This Informational 3 See 57 FR 38237 (Aug. 24, 1992).

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For whole loans that cannot be certification or title insurance policy. effective date’’ of a change. Given that considered investments, we are not Choosing to use a title insurance policy notification of a change in interest rate considering a change. Section creates obvious additional fiduciary is a statutory requirement, removing the 614.4325(b) prohibits a FCS institution responsibilities for the institution such regulation is not an option. from purchasing any interest in a loan as: Ensuring that the title insurance Nevertheless, we believe the regulation from an institution that is not a FCS company is licensed, ensuring that the provides for significant flexibility by institution except to pool or securitize final policy meets the institution’s allowing for notifications to be made ‘‘as loans, purchase a participation interest specifications, and ensuring that the part of the borrower’s first regularly under its lending authority and insured amount at least equals the scheduled billing statement affected by purchase loans from the FDIC. outstanding loan balance. We do not the rate change.’’ In other words, only view verifying that a policy is valid, the billing statements need to reflect the J. Public Disclosure About OFIs adequate, and proper as ‘‘re-certifying’’ rate changes that occurred during the Comment: FCA Regulation § 614.4595 the work of the title insurance company, billing period and a separate notice is requires the banks to receive written but simply good business practice to not required. Further, the status of approval from the OFI before publicly ensure compliance with the first lien LIBOR continuing as an index for loans disclosing its name, address, and requirement of the Act. is uncertain, and loans may need to be internet address. It also requires a bank indexed to a replacement. Given L. Public-Private Partnership to adopt and maintain policies and uncertainty over the replacement, Investments procedures relating to OFI public including whether it will be as widely disclosures. This requirement is Comment: The approval process for published and available as LIBOR, we unnecessary, excessively prescriptive, public-private partnership investments, do not believe that this would be an not required in law and burdens banks such as community health care appropriate time to consider any to maintain a policy that detracts from facilities, would better serve rural lessening of disclosure requirements for meaningful board oversight. Disclosure America if it were streamlined. The indexed loans. of name, address and internet address is current case-by-case approval process not a regulatory matter and it is better significantly hinders the development of N. Purchase of Insurance left to the banks and OFIs to decide critical projects in rural communities. Comment: Section 4.29 of the Act within the lending relationship. The commenters recommend that FCA requires a written notice to customers FCA Response: We are not persuaded streamline the approval process for that the purchase of insurance (when by the comment that a change is needed. investments in public-private required as condition to obtain the loan) The regulation provides that a Farm partnerships that benefit rural through the lender is optional. Section Credit Bank or agricultural credit bank communities and modify the regulation 618.8040(b) should be revised to may disclose to members of the public to specifically allow the purchase of eliminate the requirement for a separate, the name, address, telephone number, community facility bonds as mission- written statement. and internet website of an OFI only if related investments. FCA Response: We are not persuaded the OFI consents in writing. We FCA Response: FCA has developed a by the comment that a change is needed. continue to believe the regulation is process to expedite and streamline case- We continue to believe that a written necessary to deal with this issue and is by-case requests that meet certain notice that is separately signed by the not unduly burdensome. In addition, we criteria. Many requests for community member or borrower is necessary to continue to believe that the OFI, and not health care facilities are handled on an carry out Congressional intent. We also the FCS bank, should be the party to expedited basis. We continue to continue to believe that our position decide whether its information is made consider other ways to streamline the outlined in the preamble to the existing public as designed in the regulation. process for FCA consideration of case- regulation continues to be appropriate: by-case investment requests. ‘‘provide documentation to refute any K. Special Collateral Requirements potential allegations that borrowers M. Interest Rate Disclosures Comment: The Special Collateral were coerced into purchasing insurance Requirements for post-closing Comment: The regulations require offered by banks or associations.’’ certification, after the issuance of a System Institutions to disclose rate standard title insurance policy and changes when the rates are tied to a O. Human Capital and Marketing Plans compliance with customary loan closing widely published external index (i.e., Comment: The requirements of procedures, are duplicative and prime rate or LIBOR); however, the §§ 618.8440(b)(7) and (b)(8) pertaining unnecessary. With this requirement, the intent of permitting such interest rates to human capital and marketing plans System institution is being asked to is transparency. Borrowers can are excessively prescriptive and detailed effectively ‘‘re-certify’’ the work that the determine their rate by numerous without any corresponding benefit to title insurance company has been paid published sources. To require the institutions or mission achievement. to perform. The title insurance company notification by System institutions of Specifically, the regulations required has agreed to insure the risks that this rate changes as outlined by the significant detail in both the human regulation is designed to mitigate, regulation is unnecessary and capital and marketing plans that goes which makes this requirement burdensome. beyond what is appropriate for burdensome. FCA Response: We cannot make the inclusion, even at a summary level, in FCA Response: We are not persuaded recommended change because it a business plan. To reduce burden and by the comment that a change is needed. conflicts with statute. Section 4.13(a)(4) requirements that are duplicative in The Act requires that long-term of the Act requires qualified lenders to nature, the FCA should generalize the mortgage loans be secured by first liens provide borrowers, for all loans not human capital and marketing plan on real estate as may be prescribed by subject to the Truth in Lending Act (15 requirements. regulations of the FCA. Section U.S.C. 1601 et seq.), ‘‘meaningful and FCA Response: We are not persuaded 615.5060 provides institutions one of timely disclosure’’ of any change in the by the comment that a change is needed. two methods to validate the institution’s interest rate applicable to the borrower’s These two regulatory sections were first lien position: Attorney lien loan within a ‘‘reasonable time after the specifically written to minimize any

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regulatory burden and require the confidentiality and security with FinCEN’s Suspicious Activity minimum strategies and actions needed requirements when paper, and not Reporting (SAR) system that is used by to develop these sections of the business electronics, are used. law enforcement and Federal plan. We do not believe that these prosecutors to fight financial crimes. R. Floor Nominations requirements rise to the level of CoBank voluntarily complies with SAR ‘‘significant detail’’ and that they go Comment: Section 611.326 specifies filing requirements. As a result, FCA’s ‘‘beyond what is appropriate for the procedures to use for allowing floor requirement to use an FCA CRF is inclusion in a business plan.’’ nominations at association annual burdensome and confusing to criminal We continue to believe that these meetings. The System recognizes that enforcement authorities in those human capital and marketing planning floor nominations are required in accord situations when CoBank files a SAR and regulatory requirements are critical to with the Farm Credit Act. However, the is required by FCA to also file an FCA institution operations. Human capital current procedures are unwieldy, CRF. Importantly, the SAR form and marketing plans are opportunities cumbersome, time-consuming and provides effectively and efficiently the to lay out the institution’s demographics costly. Moreover, they actually same information contained in the FCA and address strategies to make progress undermine the existing nomination CRF for use by law enforcement. FCA in diversity and inclusion as a vital committee process, and FCA guidance should eliminate this burden and accept component of its corporate culture and and can impede the ability of the SAR form instead of the FCA CRF being more responsive to the credit stockholders to make an informed in those instances where reporting is needs of all eligible and creditworthy voting decision. They make compliance provided under FinCEN filing agricultural producers and other eligible with disclosure requirements difficult requirements. persons. for both the institution and the nominee. Associations should have FCA Response: Our Criminal Referral P. Syndications and Participations increased flexibility to adopt procedures Workgroup is considering whether FCA Study that maintain the ability for floor should issue guidance to provide Comment: The reporting requirements nominations, while facilitating clarification on this issue. for the syndication and participations compliance with disclosure and voting C. Criminal Referral Form Threshold study are burdensome and manually procedures. intensive, time consuming, and do not FCA Response: We are not persuaded Comment: FCA requires the reporting augment internal management’s tools. by the comment that a change is needed. of ‘‘Any known or suspected criminal FCA should evaluate the data gathered This issue was thoroughly studied when activity involving a financial transaction to date for the syndication and we finalized this regulation, and our in which the institution was used as a participations study and determine the analysis has not changed.4 We believe conduit for such criminal activity (such usefulness of gathering additional data that the procedures outlined in the rule as money laundering/structuring in the future. are consistent with the statutory schemes)’’ without any threshold or test FCA Response: We agree that less requirement and that the comment for substance. To provide consistency in reporting is now adequate compared to raises issues that we considered in the requirements applicable to commercial what we originally required. rulemaking. banks for the filing of SARs, the FCA Consequently, we reduced the reporting IV. Comments That We Will Address in should implement a $5,000 threshold from quarterly to annually beginning in Existing Regulatory Projects for filing an FCA CFR when the suspect 2018. We are also evaluating more is known and $25,000 when the suspect streamlined ways in which the annual A. E-Commerce is unknown. data could be provided to FCA. Comment: FCA should revise its E- FCA Response: Our Criminal Referral However, we continue to believe that commerce definition to be consistent Workgroup is considering whether we collecting the data is necessary for the with the definition used generally in the should provide guidance to clarify this analysis of the complex issues being marketplace. The current application of issue. considered through the loan syndication the FCA regulatory definition is overly study. broad and results in an expansive D. Amortization Limits Q. Voting Requirements application by examiners, application Comment: Production credit beyond what is required by E-commerce association and agricultural credit Comment: Proxy voting requirements laws, and creates an unnecessary should be removed when using mail association loan authorities should be burden on FCS institutions. updated to reflect current System ballots. The use of digital processes are FCA Response: Our Cybersecurity more efficient, and the proxy method structure. There is no statutory basis to Workgroup is reviewing the E- maintain restrictions on production required is cumbersome to stockholders, commerce regulations, including which encourages them not to vote. credit association real estate lending, or whether the term ‘‘E-Commerce’’ is that loans amortize within a period of FCA Response: A proxy authorizes outdated. The Workgroup is considering 15 years, or whether the customer someone to attend a meeting instead of whether the terminology of ‘‘E- already owns the land or is purchasing the voting stockholder and take actions, Commerce’’ should be removed from it. Amortization and repayment should including casting a vote if there will be FCA Regulations and replaced with the be a matter of appropriate credit in-person voting, with the same word ‘‘Information Technology’’. authority as the stockholder granting the administration, not regulation. proxy. Our existing regulations in part B. Criminal Referral Form FCA Response: We plan to address 609 and 611 allow proxies to be Comment: FCA requires reports of this comment in conjunction with the delivered electronically to those known or suspicious criminal activity amortization limits project that is listed individual shareholders who have through the use of FCA’s Criminal on our Regulatory Projects Plan and consented to e-commerce for voting Referral Form (CRF). This referral form Unified Agenda. The project will events. However, electronic is unique to FCA and not integrated address the amortization limits for loans communications in voting events, made under the production credit including proxies, must satisfy the same 4 See 75 FR 18726 (Apr. 12, 2010). association authority.

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E. Liquidity Reserves not recently updated this regulation. access should be adequate. There is no Comment: Section 615.5134(d) However, further evaluation is needed need to mail copies of the annual report. describes specific, extensive before we can consider whether the Comment: The requirements of requirements for each System bank to recommended changes are appropriate. § 620.6, in particular the provisions maintain its liquidity reserve. All We will consider this recommendation relating to retirement account System banks maintain liquidity in any future review of this regulation. information and travel reimbursement reserves well in excess of regulatory policies, are unduly burdensome and B. Release of Borrower Names and also confusing or even misleading to requirements. The imposition of an Addresses additional ‘‘marketability study’’ for stockholders. We believe this is an area each bank is unduly burdensome and Comment: Section 618.8310 should be where the quality of the disclosures can ignores the facts and circumstances of omitted. With security and privacy of be improved, while reducing paperwork each bank’s portfolio. FCA should look borrower information heightened, and costs. at both the quantity and quality of the releasing borrowers’ names and FCA Response: Further evaluation is bank’s liquidity reserve, as well as its addresses conflicts with current needed before we can consider whether actual experience with execution of practices and standards. the recommended changes are transactions to decide whether a study FCA Response: Section 4.12A of the appropriate. We will consider this is necessary, rather than imposing an Act requires a System bank or recommendation in any future review. arbitrary requirement to conduct a study association to provide to a stockholder F. Disclosure Requirements for Sale of that is both costly and of little, if any, of the bank or association a current list Borrower Stock value. of stockholders of the bank or FCA Response: We incorporated this association not later than 7 calendar Comment: Delivering a copy of the comment into our study of the Liquidity days after the date on which the bank quarterly report along with annual Coverage Ratio. or association receives a written request report is burdensome and produces minimal value to stockholder. The same F. Borrower Rights for the stockholder list from the stockholder. This provision has been could be achieved by referencing Comment: The requirements for slightly revised in the most recent Farm location of both reports on website. FCA Response: As outlined in adverse action should be amended to Bill, and although we are not currently § 615.5250, a System institution must use the same terminology as that used reviewing this regulation, we may provide a prospective borrower with in Regulation B. consider reviewing this provision in the several documents related to borrower FCA Response: We plan to address future. this comment in conjunction with the stock in conjunction with obtaining a borrower rights project that is listed on C. Electric and Telecommunication loan. We believe that including the our Regulatory Projects Plan and Lending annual report and most recent quarterly report in with the other documents is Unified Agenda. As part of this project, Comment: Make changes to not a burden and that the benefit in we will study the similarities and § 613.3100(c)(2) to reflect changes to the helping to attract a prospective borrower differences between the Regulation B Rural Electrification Act, as amended outweighs any burden that may exist. requirements and our adverse action (REA), since CoBank’s lending Nonetheless, there may be room for regulations. authorities for electric and modifications, but further evaluation is telecommunication borrowers are V. Comments That Need Further needed before we can consider whether derived from the REA. Evaluation the recommended change is As noted above, some of the FCA Response: Changes to FCA appropriate. We will consider this regulatory burden issues raised need regulations in this area are not necessary recommendation in any future review. further evaluation before we can for CoBank to implement the 2018 Farm consider whether changes are Bill. Further evaluation is needed before G. Loan Data Reporting appropriate. we can consider whether regulatory Comment: FCA has increased the changes are appropriate. We will amount of loan data required to be A. Scope of Lending consider this recommendation in any submitted to the agency. There is a Comment: The Agency has not future review of this regulation. material administrative cost to System updated the Scope of Lending D. Multiple Title Insurance Policy Ratio institutions to update and maintain the regulation, § 613.3005, since 1997. Amounts systems to collect and report that Farming and who is considered a full- information. FCA should consider the time farmer have continued to evolve Comment: FCA regulation costs and benefits of those requirements over this time. Many farmers, regardless § 615.5060(a)(2)(iii) establishing on an institution specific basis. of the size of the farming operation, multiple title policy ratio amounts FCA Response: Further evaluation is have multiple sources of off-farm should be deleted. It has no legal needed before we can consider whether income, but still devote a significant validity, it does not always represent the the recommended change is amount of time to farming. This is risk profile of collateral and title issuers appropriate. We will consider this particularly true with the Young, have different opinions/requirements. recommendation in any future review. Beginning and Small Farmer segment, FCA Response: Further evaluation is which the System is directed to serve. needed before we can consider whether V. Future Efforts To Reduce Regulatory FCA guidance in regard to financing of the recommended change is Burden on System Institutions legal entities with 100% ownership by appropriate. We will consider this For over 25 years, we have been eligible farmers needs to be updated to recommendation in any future review. making a concerted effort to remove regulatory burden whenever possible reflect the variety of modern legal E. Annual Report to Shareholders structures used in agricultural and will continue to do so into the production. Comment: Eliminate the requirement future. However, we will maintain those FCA Response: The comment for distribution of the annual report in regulations that are necessary to correctly points out that the FCA has accordance with § 620.4. Electronic implement the Act and are critical for

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the safety and soundness of the System. be connected to 202–326–4400, ext. amendment are impracticable and Our approach is intended to enable the 3829.) contrary to the public interest. This System to continue to provide credit to SUPPLEMENTARY INFORMATION: PBGC’s finding is based on the need to issue America’s farmers, ranchers, aquatic regulation on Benefits Payable in new interest assumptions promptly so producers, their cooperatives and other Terminated Single-Employer Plans (29 that they are available for plans that rely rural residents. CFR part 4022) prescribes actuarial on our publication of them each month Dated: May 9, 2019. assumptions — including interest to calculate lump sum benefit amounts. Dale Aultman, assumptions — for paying plan benefits Because of the need to provide immediate guidance for the payment of Secretary, Farm Credit Administration Board. under terminated single-employer plans benefits under plans with valuation [FR Doc. 2019–09960 Filed 5–14–19; 8:45 am] covered by title IV of the Employee Retirement Income Security Act of 1974 dates during June 2019, PBGC finds that BILLING CODE 6705–01–P (ERISA). The interest assumptions in good cause exists for making the the regulation are also published on assumptions set forth in this PBGC’s website (https://www.pbgc.gov). amendment effective less than 30 days PENSION BENEFIT GUARANTY PBGC uses the interest assumptions in after publication. CORPORATION appendix B to part 4022 (‘‘Lump Sum PBGC has determined that this action Interest Rates for PBGC Payments’’) to is not a ‘‘significant regulatory action’’ 29 CFR Part 4022 determine whether a benefit is payable under the criteria set forth in Executive as a lump sum and to determine the Order 12866. Benefits Payable in Terminated Single- amount to pay. Because some private- Employer Plans; Interest Assumptions Because no general notice of proposed sector pension plans use these interest for Paying Benefits rulemaking is required for this rates to determine lump sum amounts amendment, the Regulatory Flexibility AGENCY: Pension Benefit Guaranty payable to plan participants (if the Act of 1980 does not apply. See 5 U.S.C. Corporation. resulting lump sum is larger than the 601(2). amount required under section 417(e)(3) ACTION: Final rule. of the Internal Revenue Code and List of Subjects in 29 CFR Part 4022 SUMMARY: This final rule amends the section 205(g)(3) of ERISA), these rates Employee benefit plans, Pension Pension Benefit Guaranty Corporation’s are also provided in appendix C to part insurance, Pensions, Reporting and regulation on Benefits Payable in 4022 (‘‘Lump Sum Interest Rates for recordkeeping requirements. Private-Sector Payments’’). Terminated Single-Employer Plans to In consideration of the foregoing, 29 This final rule updates appendices B prescribe certain interest assumptions CFR part 4022 is amended as follows: under the regulation for plans with and C of the benefits payment regulation valuation dates in June 2019. These to provide the rates for June 2019 PART 4022—BENEFITS PAYABLE IN measurement dates. interest assumptions are used for paying TERMINATED SINGLE–EMPLOYER The June 2019 lump sum interest certain benefits under terminating PLANS assumptions will be 1.00 percent for the single-employer plans covered by the period during which a benefit is (or is pension insurance system administered ■ 1. The authority citation for part 4022 assumed to be) in pay status and 4.00 by PBGC. continues to read as follows: percent during any years preceding the DATES: Effective June 1, 2019. benefit’s placement in pay status. In Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. FOR FURTHER INFORMATION CONTACT: comparison with the interest Gregory Katz ([email protected]), assumptions in effect for May 2019, ■ 2. In appendix B to part 4022, rate set Attorney, Regulatory Affairs Division, these assumptions represent no change 308 is added at the end of the table to Pension Benefit Guaranty Corporation, in the immediate rate and are otherwise read as follows: 1200 K Street NW, Washington, DC unchanged. 20005, 202–326–4400 ext. 3829. (TTY PBGC updates appendices B and C Appendix B to Part 4022—Lump Sum users may call the Federal relay service each month. PBGC has determined that Interest Rates for PBGC Payments toll-free at 1–800–877–8339 and ask to notice and public comment on this * * * * *

For plans with a valuation Immediate Deferred annuities Rate set date annuity rate (percent) (percent) On or after Before i1 i2 i3 n1 n2

******* 308 6–1–19 7–1–19 1.00 4.00 4.00 4.00 7 8

■ 3. In appendix C to part 4022, rate set Appendix C to Part 4022—Lump Sum 308 is added at the end of the table to Interest Rates for Private-Sector read as follows: Payments * * * * *

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For plans with a valuation Immediate Deferred annuities Rate set date annuity rate (percent) (percent) On or after Before i1 i2 i3 n1 n2

******* 308 6–1–19 7–1–19 1.00 4.00 4.00 4.00 7 8

Issued in Washington, DC. I. Table of Abbreviations spectators, and the general public in the Hilary Duke, CFR Code of Federal Regulations navigable waters within the regulated Assistant General Counsel for Regulatory DHS Department of Homeland Security area during the Low Country Splash Affairs, Pension Benefit Guaranty FR Federal Register Open Swim event. Corporation. NPRM Notice of proposed rulemaking IV. Discussion of the Rule [FR Doc. 2019–09748 Filed 5–14–19; 8:45 am] § Section BILLING CODE 7709–02–P U.S.C. United States Code This rule establishes a special local regulation from 7 a.m. to 10 a.m. on II. Background Information and June 1, 2019. The special local Regulatory History regulation would cover all navigable DEPARTMENT OF HOMELAND The Coast Guard is issuing this waters within a moving zone, beginning SECURITY temporary rule without prior notice and at Daniel Island Pier, then moving south opportunity to comment pursuant to along the coast of Daniel Island, then Coast Guard authority under section 4(a) of the across the Wando River to Hobcaw Administrative Procedure Act (APA) (5 Yacht Club, then south along the coast 33 CFR Part 100 U.S.C. 553(b)). This provision of Mt. Pleasant, S.C., to Charleston authorizes an agency to issue a rule Harbor Resort Marina. The duration of [Docket Number USCG–2019–0271] without prior notice and opportunity to the special local regulation is intended comment when the agency for good to ensure the safety of participants, RIN 1625–AA08 cause finds that those procedures are spectators, vessels and these navigable Special Local Regulations; Low ‘‘impracticable, unnecessary, or contrary waters before, during, and after the Country Splash, Charleston, SC to the public interest.’’ Under 5 U.S.C. scheduled event. No vessel or person 553(b)(B), the Coast Guard finds that will be permitted to enter the regulated AGENCY: Coast Guard, DHS. good cause exists for not publishing a area without obtaining permission from ACTION: Temporary final rule. notice of proposed rulemaking (NPRM) the COTP or a designated with respect to this rule because it is representative. The regulatory text we SUMMARY: The Coast Guard is impracticable. The Coast Guard did not are proposing appears at the end of this establishing a special local regulation on receive necessary information from the document. the waters of the Wando River, Cooper event sponsor with enough time to River, and Charleston Harbor in publish a NPRM. Additionally, the V. Regulatory Analyses Charleston, SC. This action is necessary Coast Guard has published a special We developed this rule after to provide for the safety of life on local regulation for this event in 33 CFR considering numerous statutes and navigable waters during the Low 100.701, Table to § 100.701, Section (g) Executive orders related to rulemaking. Country Splash Swim on June 1, 2019. Line 2; however, the existing special Below we summarize our analyses This rulemaking would restrict persons location regulation is dated for the first based on a number of these statutes and and vessels from entering certain waters week of May. Executive orders, and we discuss First of the Wando River, Cooper River, and Under 5 U.S.C. 553(d)(3), the Coast Amendment rights of protestors. Charleston Harbor, unless authorized by Guard finds that good cause exists for A. Regulatory Planning and Review Sector Charleston Captain of the Port or making this rule effective less than 30 a designated representative. days after publication in the Federal Executive Orders 12866 and 13563 DATES: This rule is effective on June 1, Register. Delaying the effective date of direct agencies to assess the costs and 2019 from 7 a.m. to 10 a.m. this rule would be impracticable benefits of available regulatory alternatives and, if regulation is ADDRESSES: To view documents because the event is taking place on mentioned in this preamble as being June 1, 2019 and immediate action is necessary, to select regulatory available in the docket, go to https:// needed to respond to the potential approaches that maximize net benefits. www.regulations.gov, type USCG–2019– safety hazards associated with this Executive Order 13771 directs agencies 0271 in the ‘‘SEARCH’’ box and click event. to control regulatory costs through a budgeting process. This rule has not ‘‘SEARCH.’’ Click on Open Docket III. Legal Authority and Need for Rule Folder on the line associated with this been designated a ‘‘significant rule. The Coast Guard is issuing this rule regulatory action,’’ under Executive under authority in 46 U.S.C. 70041 Order 12866. Accordingly, this rule has FOR FURTHER INFORMATION CONTACT: If (previously 33 U.S.C. 1233). The not been reviewed by the Office of you have questions on this rule, call or Captain of the Port Charleston (COTP) Management and Budget (OMB), and email Lieutenant Justin Heck, Sector has determined that potential hazards pursuant to OMB guidance it is exempt Charleston Waterways Management associated with the Low Country Splash from the requirements of Executive Division, Coast Guard; telephone (843) Open Swim event present a safety Order 13771. 740–3184, email Justin.C.Heck@ concern for anyone in the vicinity of the This regulatory action determination uscg.mil. regulated area during the event. This is based on: (1) Non-participant persons SUPPLEMENTARY INFORMATION: rule is needed to protect participants, and vessels may enter, transit through,

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anchor in, or remain within the Regulatory Enforcement Ombudsman F. Environment regulated area during the enforcement and the Regional Small Business We have analyzed this rule under periods if authorized by the COTP or a Regulatory Fairness Boards. The Department of Homeland Security designated representative; (2) vessels Ombudsman evaluates these actions Directive 023–01 and Commandant not able to enter, transit through, anchor annually and rates each agency’s Instruction M16475.1D, which guide the in, or remain within the regulated area responsiveness to small business. If you Coast Guard in complying with the without authorization from the COTP or wish to comment on actions by National Environmental Policy Act of a designated representative may operate employees of the Coast Guard, call 1– 1969 (42 U.S.C. 4321–4370f), and have in the surrounding areas during the 888–REG–FAIR (1–888–734–3247). The determined that this action is one of a enforcement period; (3) the Coast Guard Coast Guard will not retaliate against category of actions that do not will provide advance notification of the small entities that question or complain special local regulation to the local individually or cumulatively have a about this proposed rule or any policy significant effect on the human maritime community by Local Notice to or action of the Coast Guard. Mariners and Broadcast Notice to environment. This rule a special local Mariners; and (4) the regulated area will C. Collection of Information regulation lasting 3 hours, restricting impact small designated areas of Wando persons and vessels from entering River, Cooper River, and Charleston This rule will not call for a new certain waters of the Wando River, Harbor for only 3 hours and thus is collection of information under the Cooper River, and Charleston Harbor. It limited in time and scope. Paperwork Reduction Act of 1995 (44 is categorically excluded from further U.S.C. 3501–3520). review under paragraph L61 of B. Impact on Small Entities Appendix A, Table 1 of DHS Instruction The Regulatory Flexibility Act of D. Federalism and Indian Tribal Manual 023–01–001–01, Rev. 01. A 1980, 5 U.S.C. 601–612, as amended, Governments preliminary Record of Environmental Consideration supporting this requires Federal agencies to consider A rule has implications for federalism determination is available in the docket the potential impact of regulations on under Executive Order 13132, where indicated under ADDRESSES. small entities during rulemaking. The Federalism, if it has a substantial direct term ‘‘small entities’’ comprises small effect on the States, on the relationship G. Protest Activities businesses, not-for-profit organizations between the national government and that are independently owned and The Coast Guard respects the First the States, or on the distribution of operated and are not dominant in their Amendment rights of protesters. power and responsibilities among the fields, and governmental jurisdictions Protesters are asked to contact the various levels of government. We have with populations of less than 50,000. person listed in the FOR FURTHER The Coast Guard certifies under 5 U.S.C. analyzed this rule under that Order and INFORMATION CONTACT section to 605(b) that this rule will not have a have determined that it is consistent coordinate protest activities so that your significant economic impact on a with the fundamental federalism message can be received without substantial number of small entities. principles and preemption requirements jeopardizing the safety or security of While some owners or operators of described in Executive Order 13132. people, places or vessels. vessels intending to transit the special Also, this rule does not have tribal List of Subjects in 33 CFR Part 100 local regulation area may be small implications under Executive Order entities, for the reasons stated in V.A. 13175, Consultation and Coordination Marine safety, Navigation (water), above, this rule will not have a with Indian Tribal Governments, Reporting and recordkeeping significant economic impact on any because it does not have a substantial requirements, Waterways. vessel owner or operator. direct effect on one or more Indian For the reasons discussed in the If you think that your business, tribes, on the relationship between the preamble, the Coast Guard amends 33 organization, or governmental Federal Government and Indian tribes, CFR part 100 as follows: jurisdiction qualifies as a small entity or on the distribution of power and PART 100—SAFETY OF LIFE ON and that this rule would have a responsibilities between the Federal NAVIGABLE WATERS significant economic impact on it, Government and Indian tribes. If you please submit a comment (see believe this rule has implications for ■ ADDRESSES) explaining why you think it 1. The authority citation for part 100 federalism or Indian tribes, please continues to read as follows: qualifies and how and to what degree contact the person listed in the FOR Authority: 46 U.S.C. 70041; 33 CFR 1.05– this rule would economically affect it. FURTHER INFORMATION CONTACT section Under section 213(a) of the Small 1. above. Business Regulatory Enforcement ■ 2. Add § 100.T07–0271 to read as Fairness Act of 1996 (Pub. L. 104–121), E. Unfunded Mandates Reform Act follows: we want to assist small entities in understanding this rule. If the rule The Unfunded Mandates Reform Act § 100.T07–0271 Special Local Regulation; would affect your small business, of 1995 (2 U.S.C. 1531–1538) requires Low Country Splash, Charleston, SC. organization, or governmental Federal agencies to assess the effects of (a) Location. This section establishes jurisdiction and you have questions their discretionary regulatory actions. In a temporary special local regulation. All concerning its provisions or options for particular, the Act addresses actions waters within a moving zone, beginning compliance, please contact the person that may result in the expenditure by a at Daniel Island Pier in approximate listed in the FOR FURTHER INFORMATION State, local, or tribal government, in the position 32°51′20″ N, 079°54′06″ W, CONTACT section. aggregate, or by the private sector of south along the coast of Daniel Island, Small businesses may send comments $100,000,000 (adjusted for inflation) or across the Wando River to Hobcaw on the actions of Federal employees more in any one year. Though this rule Yacht Club, in approximate position who enforce, or otherwise determine will not result in such an expenditure, 32°49′20″ N, 079°53′49″ W, south along compliance with, Federal regulations to we do discuss the effects of this rule the coast of Mt. Pleasant, S.C., to the Small Business and Agriculture elsewhere in this preamble. Charleston Harbor Resort Marina, in

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approximate position 32°47′20″ N, a portion of Little Egg Harbor in Beach 553(b)(B), the Coast Guard finds that 079°54′39″ W. Haven, NJ. This action is necessary to good cause exists for not publishing a (b) Definition. The term ‘‘designated protect the surrounding public and notice of proposed rulemaking (NPRM) representative’’ means Coast Guard vessels on these navigable waters during with respect to this rule because it is Patrol Commanders, including Coast a series of fireworks displays on the impracticable and contrary to the public Guard coxswains, petty officers, other following dates: May 18, May 25, June interest to do so. There is insufficient officers operating Coast Guard vessels, 1, June 7, July 20, July 27, August 10, time to allow for a reasonable comment and Federal, state, and local officers September 1, October 5, and October 12, period prior to the date of the first designated by or assisting the Captain of 2019. This regulation prohibits persons events. The rule must be in force by the Port (COTP) Charleston in the and vessels from entering, transiting, or May 18, 2019. We are taking immediate enforcement of the regulated areas. remaining within the safety zone unless action to ensure the safety of spectators (c) Regulations. (1) All persons and authorized by the Captain of the Port and the general public from hazards vessels are prohibited from entering, Delaware Bay or a designated associated with the fireworks displays. transiting through, anchoring in, or representative. Hazards include accidental discharge of fireworks, dangerous projectiles, and remaining within the regulated area DATES: falling hot embers or other debris. unless authorized by the COTP Effective date: This rule is effective Under 5 U.S.C. 553(d)(3), the Coast Charleston or a designated from 8:30 p.m. on May 18, 2019, representative. Guard finds that good cause exists for through 9:30 p.m. on October 12, 2019. making this rule effective less than 30 (2) Persons and vessels desiring to Comment date: Comments and related days after publication in the Federal enter, transit through, anchor in, or material must be received by the Coast Register. Delaying the effective date of remain within the regulated area may Guard on or before June 14, 2019. contact the COTP Charleston by this rule would be impracticable and ADDRESSES: To view documents telephone at 843–740–7050, or a contrary to the public interest because mentioned in this preamble as being designated representative via VHF radio immediate action is needed to mitigate available in the docket, go to http:// on channel 16, to request authorization. the potential safety hazards associated www.regulations.gov, type USCG–2019– If authorization to enter, transit through, with a fireworks displays in this 0283 in the ‘‘SEARCH’’ box and click anchor in, or remain within the location. ‘‘SEARCH.’’ Click on Open Docket regulated area is granted by the COTP Folder on the line associated with this III. Legal Authority and Need for Rule Charleston or a designated rule. The Coast Guard is issuing this rule representative, all persons and vessels You may submit comments identified receiving such authorization must under authority in 46 U.S.C. 70034 by docket number USCG–2019–0283 (previously 33 U.S.C. 1231). The comply with the instructions of the using the Federal eRulemaking Portal at Captain of the Port Delaware Bay COTP Charleston or a designated http://www.regulations.gov. See the (COTP) has determined that potential representative. ‘‘Public Participation and Request for hazards associated with the fireworks (3) The Coast Guard will provide Comments’’ portion for further displays on the dates listed above will notice of the regulated area by Local instructions on submitting comments. be a safety concern for anyone within a Notice to Mariners, Broadcast Notice to 100 yard radius of the fireworks barge, Mariners, and on-scene designated FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, call or which will be anchored in approximate representatives. ° ′ ″ ° ′ ″ (d) Enforcement period. This section email Petty Officer Thomas Welker, U.S. position 39 34 09.32 N, 074 14 31.67 will be enforced from 7 a.m. until 10 Coast Guard, Sector Delaware Bay, W. This rule is needed to protect a.m. on June 1, 2019. Waterways Management Division; persons, vessels and the public within telephone 215–271–4814, email the safety zone during the fireworks Dated: May 9, 2019. [email protected]. displays. J.W. Reed, SUPPLEMENTARY INFORMATION: IV. Discussion of the Rule Captain, U.S. Coast Guard, Captain of the Port, Charleston. I. Table of Abbreviations This rule establishes a temporary [FR Doc. 2019–10041 Filed 5–14–19; 8:45 am] safety zone on the waters of Little Egg CFR Code of Federal Regulations BILLING CODE 9110–04–P Harbor in Beach Haven, NJ, during a COTP Captain of the Port series of fireworks displays from a DHS Department of Homeland Security barge. The events are scheduled to take FR Federal Register DEPARTMENT OF HOMELAND NPRM Notice of proposed rulemaking place at approximately 8:30 p.m. on SECURITY § Section May 18, May 25, June 1, June 7, July 20, U.S.C. United States Code July 27, August 10, September 1, Coast Guard October 5, 2019, and October 12, 2019. II. Background Information and The safety zone will extend 100 yards 33 CFR Part 165 Regulatory History around the barge, which will be [Docket Number USCG–2019–0283] The Coast Guard is issuing this anchored at approximate position temporary rule without prior notice and 39°34′09.32″ N, 074°14′31.67″ W. No RIN 1625–AA00 opportunity to comment pursuant to person or vessel will be permitted to authority under section 4(a) of the enter, transit through, anchor in, or Safety Zone; Fireworks Displays, Little Administrative Procedure Act (APA) (5 remain within the safety zone without Egg Harbor, Beach Haven, NJ U.S.C. 553(b)). This provision obtaining permission from the COTP AGENCY: Coast Guard, DHS. authorizes an agency to issue a rule Delaware Bay or a designated ACTION: Interim final rule and request without prior notice and opportunity to representative. If authorization to enter, for comments. comment when the agency for good transit through, anchor in, or remain cause finds that those procedures are within the safety zone is granted by the SUMMARY: The Coast Guard is ‘‘impracticable, unnecessary, or contrary COTP Delaware Bay or a designated establishing a temporary safety zone on to the public interest.’’ Under 5 U.S.C. representative, all persons and vessels

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receiving such authorization must with populations of less than 50,000. direct effect on one or more Indian comply with the instructions of the The Coast Guard certifies under 5 U.S.C. tribes, on the relationship between the COTP Delaware Bay or a designated 605(b) that this rule will not have a Federal Government and Indian tribes, representative. The Coast Guard will significant economic impact on a or on the distribution of power and provide public notice of the safety zone substantial number of small entities. responsibilities between the Federal by Broadcast Notice to Mariners and by While some owners or operators of Government and Indian tribes. If you on-scene actual notice from designated vessels intending to transit the safety believe this rule has implications for representatives. The regulatory text we zone may be small entities, for the federalism or Indian tribes, please are proposing appears at the end of this reasons stated in section V.A above, this contact the person listed in the FOR document. rule will not have a significant FURTHER INFORMATION CONTACT section economic impact on any vessel owner above. V. Regulatory Analyses or operator. We developed this rule after Under section 213(a) of the Small E. Unfunded Mandates Reform Act considering numerous statutes and Business Regulatory Enforcement Executive orders related to rulemaking. Fairness Act of 1996 (Pub. L. 104–121), The Unfunded Mandates Reform Act Below we summarize our analyses we want to assist small entities in of 1995 (2 U.S.C. 1531–1538) requires based on a number of these statutes and understanding this rule. If the rule Federal agencies to assess the effects of Executive orders, and we discuss First would affect your small business, their discretionary regulatory actions. In Amendment rights of protestors. organization, or governmental particular, the Act addresses actions that may result in the expenditure by a A. Regulatory Planning and Review jurisdiction and you have questions concerning its provisions or options for State, local, or tribal government, in the Executive Orders 12866 and 13563 compliance, please contact the person aggregate, or by the private sector of direct agencies to assess the costs and listed in the FOR FURTHER INFORMATION $100,000,000 (adjusted for inflation) or benefits of available regulatory CONTACT section. more in any one year. Though this rule alternatives and, if regulation is Small businesses may send comments will not result in such an expenditure, necessary, to select regulatory on the actions of Federal employees we do discuss the effects of this rule approaches that maximize net benefits. who enforce, or otherwise determine elsewhere in this preamble. Executive Order 13771 directs agencies compliance with, Federal regulations to F. Environment to control regulatory costs through a the Small Business and Agriculture budgeting process. This rule has not Regulatory Enforcement Ombudsman We have analyzed this rule under been designated a ‘‘significant and the Regional Small Business Department of Homeland Security regulatory action,’’ under Executive Regulatory Fairness Boards. The Directive 023–01 and Commandant Order 12866. Accordingly, this rule has Ombudsman evaluates these actions Instruction M16475.1D, which guide the not been reviewed by the Office of annually and rates each agency’s Coast Guard in complying with the Management and Budget (OMB), and responsiveness to small business. If you National Environmental Policy Act of pursuant to OMB guidance it is exempt wish to comment on actions by 1969 (42 U.S.C. 4321–4370f), and have from the requirements of Executive employees of the Coast Guard, call 1– determined that this action is one of a Order 13771. 888–REG–FAIR (1–888–734–3247). The category of actions that do not The impact of this rule is not Coast Guard will not retaliate against individually or cumulatively have a significant for the following reasons: (1) small entities that question or complain significant effect on the human Vessel traffic will be able to safely about this rule or any policy or action environment. This rule involves a safety transit around this safety zone which of the Coast Guard. zone that will prohibit persons and would impact a small designated area of vessels from entering, transiting Little Egg Harbor, including the C. Collection of Information through, anchoring in, or remaining navigational channel, for 1 hour during This rule will not call for a new within a limited area on the navigable the evening when vessel traffic is collection of information under the water on a portion of Little Egg Harbor normally; (2) persons and vessels will Paperwork Reduction Act of 1995 (44 in Beach Haven, NJ, during a series of still be able to enter, transit through, U.S.C. 3501–3520). 10 fireworks displays lasting anchor in, or remain within the approximately one hour each. This rule regulated area if authorized by the D. Federalism and Indian Tribal is categorically excluded from further COTP Delaware Bay or a designated Governments review under paragraph L60(a) of representative; and (3) the Coast Guard A rule has implications for federalism Appendix A, Table 1 of DHS Instruction will provide advance notification of the under Executive Order 13132, Manual 023–01–001–01, Rev. 01. A safety zone to the local maritime Federalism, if it has a substantial direct preliminary Record of Environmental community by Broadcast Notice to effect on the States, on the relationship Consideration (REC) supporting this Mariners, or by on-scene actual notice between the national government and determination is available in the docket from designated representatives. the States, or on the distribution of power and responsibilities among the where indicated under ADDRESSES. B. Impact on Small Entities various levels of government. We have G. Protest Activities The Regulatory Flexibility Act of analyzed this rule under that Order and 1980, 5 U.S.C. 601–612, as amended, have determined that it is consistent The Coast Guard respects the First requires Federal agencies to consider with the fundamental federalism Amendment rights of protesters. the potential impact of regulations on principles and preemption requirements Protesters are asked to contact the small entities during rulemaking. The described in Executive Order 13132. person listed in the FOR FURTHER term ‘‘small entities’’ comprises small Also, this rule does not have tribal INFORMATION CONTACT section to businesses, not-for-profit organizations implications under Executive Order coordinate protest activities so that your that are independently owned and 13175, Consultation and Coordination message can be received without operated and are not dominant in their with Indian Tribal Governments, jeopardizing the safety or security of fields, and governmental jurisdictions because it does not have a substantial people, places or vessels.

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VI. Public Participation and Request for approximate position 39°34′09.32″ N, ACTION: Notice of enforcement of Comments 074°14′31.67″ W. All coordinates are regulation. We view public participation as based on Datum NAD 1983. (b) Definitions As used in this section, essential to effective rulemaking, and SUMMARY: The Coast Guard will enforce designated representative means a Coast will consider all comments and material the Barnegat Bay, Ocean Township, NJ, Guard Patrol Commander, including a received during the comment period. safety zone from 9:00 p.m. through Coast Guard petty officer, warrant or Your comment can help shape this 10:00 p.m. on May 25, 2019. This action commissioned officer on board a Coast rulemaking. If you submit a comment, is necessary to ensure safety of life on Guard vessel or on board a federal, state, please include the docket number for the navigable waters of the United or local law enforcement vessel assisting this rulemaking, indicate the specific States immediately prior to, during, and the Captain of the Port (COTP), section of this document to which each immediately after the fireworks Delaware Bay in the enforcement of the comment applies, and provide a reason displays. Our regulation for safety zones safety zone. of fireworks displays in the Fifth Coast for each suggestion or recommendation. (c) Regulations. (1) Under the general Guard District identifies the regulated We encourage you to submit safety zone regulations in subpart C of area for this event on Barnegat Bay in comments through the Federal this part, you may not enter the safety Ocean Township, NJ. During the eRulemaking Portal at http:// zone described in paragraph (a) of this www.regulations.gov. If your material section unless authorized by the COTP enforcement period, vessels may not cannot be submitted using http:// or the COTP’s designated representative. enter, remain in, or transit through the www.regulations.gov, contact the person (2) To seek permission to enter or safety zone unless authorized by the in the FOR FURTHER INFORMATION remain in the zone, contact the COTP or Captain of the Port or designated Coast CONTACT section of this document for the COTP’s representative via VHF–FM Guard patrol personnel on scene. alternate instructions. channel 16 or 215–271–4807. Those in We accept anonymous comments. All DATES: The regulations in the table to 33 the safety zone must comply with all CFR 165.506 at (a)(12) will be enforced comments received will be posted lawful orders or directions given to without change to http:// from 9:00 p.m. through 10:00 p.m. on them by the COTP or the COTP’s May 25, 2019. www.regulations.gov and will include designated representative. any personal information you have (3) No vessel may take on bunkers or FOR FURTHER INFORMATION CONTACT: If provided. For more about privacy and conduct lightering operations within the you have questions about this notice of the docket, visit http:// safety zone during its enforcement enforcement, you may call or email www.regulations.gov/privacyNotice. period(s). Petty Officer Thomas Welker, U.S. Coast Documents mentioned in this interim (4) This section applies to all vessels Guard, Sector Delaware Bay, Waterways final rule as being available in the except those engaged in law Management Division, telephone 215– docket, and all public comments, will enforcement, aids to navigation 271–4814, email Thomas.J.Welker@ be in our online docket at http:// servicing, and emergency response uscg.mil. www.regulations.gov and can be viewed operations. by following that website’s instructions. (d) Enforcement. The U.S. Coast SUPPLEMENTARY INFORMATION: The Coast Additionally, if you go to the online Guard may be assisted in the patrol and Guard will enforce the safety zone in the docket and sign up for email alerts, you enforcement of the safety zone by Table to 33 CFR 165.506, entry (a)(12) will be notified when comments are Federal, State, and local agencies. for the Ocean Township Memorial Day posted. (e) Enforcement period. This zone Fireworks display from 9:00 p.m. will be enforced from 8:30 p.m. through List of Subjects in 33 CFR Part 165 through 10:00 p.m. on May 25, 2019. 9:30 p.m. on May 18, May 25, June 1, This action is necessary to ensure safety Harbors, Marine safety, Navigation June 7, July 20, July 27, August 10, of life on the navigable waters of the (water), Reporting and recordkeeping September 1, October 5, and October 12, United States immediately prior to, requirements, Security measures, 2019. during, and immediately after the Waterways. (f) Effective period. This zone is fireworks displays. Our regulation for For the reasons discussed in the effective May 18, 2019, through October safety zones of fireworks displays preamble, the Coast Guard amends 33 12, 2019. within the Fifth Coast Guard District, CFR part 165 as follows: Dated: May 10, 2019. table to § 165.506, entry (a)(12), S.E. Anderson, specifies the location of the regulated PART 165—REGULATED NAVIGATION area as all waters of Barnegat Bay in AREAS AND LIMITED ACCESS AREAS Captain, U.S. Coast Guard, Captain of the Port Delaware Bay. Ocean Township, NJ, within 500 yards ■ [FR Doc. 2019–10032 Filed 5–14–19; 8:45 am] of a fireworks barge launch site at 1. The authority citation for part 165 ° ′ ″ continues to read as follows: BILLING CODE 9110–04–P approximate position latitude 39 47 33 N, longitude 074°10′46″ W. During the Authority: 46 U.S.C. 70034, 70051; 33 CFR enforcement period, as reflected in 1.05–1, 6.04–1, 6.04–6, and 160.5; DEPARTMENT OF HOMELAND § 165.506(d), vessels may not enter, Department of Homeland Security Delegation SECURITY No. 0170.1. remain in, or transit through the safety zone during the enforcement period ■ 2. Add § 165.T05–0283 to read as Coast Guard unless authorized by the Captain of the follows: Port or designated Coast Guard patrol 33 CFR Part 165 § 165.T05–0283 Fireworks Displays, Little personnel on scene. Egg Harbor, Beach Haven, NJ. [Docket No. USCG–2019–0362] In addition to this notice of enforcement in the Federal Register, the (a) Location. The following area is a Safety Zones; Fireworks Displays in Coast Guard will provide notification of safety zone: All waters of the Little Egg the Fifth Coast Guard District Harbor near Beach Haven, NJ, within this enforcement period via broadcast 100 yards of a barge anchored in AGENCY: Coast Guard, DHS. notice to mariners.

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Dated: May 10, 2019. I. Table of Abbreviations W; thence west along the shoreline to ° ′ ″ ° ′ ″ Scott E. Anderson, CFR Code of Federal Regulations 27 52 53.38 N, 097 16 20.66 W, while Captain, U.S. Coast Guard, Captain of the COTP Captain of the Port Sector Corpus LNGC MARVEL FALCON is moored. A Port, Delaware Bay. Christi moving security zone will cover all [FR Doc. 2019–10033 Filed 5–14–19; 8:45 am] DHS Department of Homeland Security navigable waters within a 500-yard BILLING CODE 9110–04–P FR Federal Register radius of the LNGC MARVEL FALCON LNGC Liquefied Natural Gas Carrier while the vessel transits outbound with NPRM Notice of proposed rulemaking cargo through the La Quinta Channel DEPARTMENT OF HOMELAND § Section and Corpus Christi Ship Channel. No SECURITY U.S.C. United States Code vessel or person will be permitted to II. Background Information and enter the security zones without Coast Guard Regulatory History obtaining permission from the COTP or a designated representative. 33 CFR Part 165 The Coast Guard is issuing this Entry into these security zones is temporary rule without prior notice and prohibited unless authorized by the [Docket Number USCG–2019–0322] opportunity to comment pursuant to COTP or a designated representative. A RIN 1625–AA87 authority under section 4(a) of the designated representative is a Administrative Procedure Act (APA) (5 commissioned, warrant, or petty officer Security Zone; Corpus Christi Ship U.S.C. 553(b)). This provision of the U.S. Coast Guard assigned to Channel, Corpus Christi, TX authorizes an agency to issue a rule units under the operational control of without prior notice and opportunity to USCG Sector Corpus Christi. Persons or AGENCY: Coast Guard, DHS. comment when the agency for good vessels desiring to enter or pass through ACTION: Temporary final rule. cause finds that those procedures are the zones must request permission from ‘‘impracticable, unnecessary, or contrary the COTP or a designated representative SUMMARY: The Coast Guard establishes to the public interest.’’ Under 5 U.S.C. on VHF–FM channel 16 or by telephone two security zones. One of the zones is 553(b)(3)(B), the Coast Guard finds that at 361–939–0450. If permission is a temporary fixed security zone for the good cause exists for not publishing a granted, all persons and vessels shall receiving facility’s mooring basin while notice of proposed rulemaking (NPRM) comply with the instructions of the the Liquefied Natural Gas Carrier with respect to this rule because it is COTP or designated representative. The (LNGC) MARVEL FALCON is moored at impracticable. We must establish these COTP or a designated representative the facility. The other zone is a moving security zones by May 9, 2019 and lack will inform the public through security zone encompassing all sufficient time to provide a reasonable Broadcast Notices to Mariners (BNMs) navigable waters within a 500-yard comment period and then consider of the enforcement times and dates for radius around the LNGC MARVEL those comments before issuing the rule. these security zones. FALCON while the vessel transits with Under 5 U.S.C. 553(d)(3), the Coast cargo in the La Quinta Channel and Guard finds that good cause exists for V. Regulatory Analyses Corpus Christi Ship Channel in Corpus making this rule effective less than 30 We developed this rule after Christi, TX. The security zones are days after publication in the Federal considering numerous statutes and needed to protect personnel, vessels, Register. Delaying the effective date of Executive orders related to rulemaking. and the marine environment from this rule would be contrary to the public Below we summarize our analyses potential hazards created by Liquified interest because immediate action is based on a number of these statutes and Natural Gas (LNG) cargo aboard the needed to provide for the security of the Executive orders, and we discuss First vessel. Entry of vessels or persons into vessel. Amendment rights of protestors. these zones is prohibited unless specifically authorized by the Captain of III. Legal Authority and Need for Rule A. Regulatory Planning and Review the Port Sector Corpus Christi. The Coast Guard is issuing this rule Executive Orders 12866 and 13563 DATES: This rule is effective without under authority in 46 U.S.C. 70034. The direct agencies to assess the costs and actual notice from 8:45 a.m. until 11:59 Captain of the Port Sector Corpus benefits of available regulatory p.m. on May 14, 2019. For the purposes Christi (COTP) has determined that alternatives and, if regulation is of enforcement, actual notice will be potential hazards associated with necessary, to select regulatory used from May 9, 2019 until 11:59 p.m. Liquefied Natural Gas Carrier (LNGC) approaches that maximize net benefits. on May 14, 2019. MARVEL FALCON between May 9, Executive Order 13771 directs agencies ADDRESSES: To view documents 2019 and May 14, 2019 will be a to control regulatory costs through a mentioned in this preamble as being security concern while the vessel is budgeting process. This rule has not available in the docket, go to http:// moored at the receiving facility and been designated a ‘‘significant www.regulations.gov, type USCG–2019– within a 500-yard radius of the vessel regulatory action,’’ under Executive 0322 in the ‘‘SEARCH’’ box and click while the vessel is loaded with cargo. Order 12866. Accordingly, this rule has not been reviewed by the Office of ‘‘SEARCH.’’ Click on Open Docket IV. Discussion of the Rule Folder on the line associated with this Management and Budget (OMB), and rule. This rule establishes two security pursuant to OMB guidance it is exempt zones around LNGC MARVEL FALCON from the requirements of Executive FOR FURTHER INFORMATION CONTACT: If from May 9, 2019 through May 14, 2019. Order 13771. you have questions on this rule, call or A fixed security zone will be in effect This regulatory action determination email Petty Officer Kevin Kyles, Sector in the mooring basin bound by is based on the size, duration, and Corpus Christi Waterways Management 27°52′53.38″ N, 097°16′20.66″ W on the location of the security zone. This rule Division, U.S. Coast Guard; telephone northern shoreline; thence to will impact a small designated area of 361–939–5125, email Kevin.L.Kyles@ 27°52′45.58″ N, 097°16′19.60″ W; thence the Corpus Christi Ship Channel and La uscg.mil. to 27°52′38.55″ N, 097°15′45.56″ W; Quinta Channel while the vessel is SUPPLEMENTARY INFORMATION: thence to 27°52′49.30″ N, 097°15′45.44″ moored at the receiving facility and

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during the vessel’s transit while loaded D. Federalism and Indian Tribal W; thence west along the shoreline to with cargo. Moreover, the Coast Guard Governments 27°52′53.38″ N, 097°16′20.66″ W, and a will issue BNMs via VHF–FM marine A rule has implications for federalism temporary moving security zone while channel 16 about the zones and the rule under Executive Order 13132, the vessel transits with cargo within the allows vessels to seek permission to Federalism, if it has a substantial direct La Quinta Channel and Corpus Christi enter the zones. effect on the States, on the relationship Ship Channel, that will prohibit entry within 500-yard radius of LNGC B. Impact on Small Entities between the national government and the States, or on the distribution of MARVEL FALCON. It is categorically The Regulatory Flexibility Act of power and responsibilities among the excluded from further review under 1980, 5 U.S.C. 601–612, as amended, various levels of government. We have paragraph L60(a) of Appendix A, Table requires Federal agencies to consider analyzed this rule under that Order and 1 of DHS Instruction Manual 023–01– 001–01, Rev. 01. A Record of the potential impact of regulations on have determined that it is consistent Environmental Consideration small entities during rulemaking. The with the fundamental federalism supporting this determination is term ‘‘small entities’’ comprises small principles and preemption requirements available in the docket where indicated businesses, not-for-profit organizations described in Executive Order 13132. under ADDRESSES. that are independently owned and Also, this rule does not have tribal operated and are not dominant in their implications under Executive Order G. Protest Activities 13175, Consultation and Coordination fields, and governmental jurisdictions The Coast Guard respects the First with Indian Tribal Governments, with populations of less than 50,000. Amendment rights of protesters. because it does not have a substantial The Coast Guard certifies under 5 U.S.C. Protesters are asked to contact the direct effect on one or more Indian 605(b) that this rule will not have a person listed in the FOR FURTHER tribes, on the relationship between the significant economic impact on a INFORMATION CONTACT section to Federal Government and Indian tribes, substantial number of small entities. coordinate protest activities so that your or on the distribution of power and While some owners or operators of message can be received without responsibilities between the Federal vessels intending to transit the jeopardizing the safety or security of Government and Indian tribes. If you temporary moving security zone may be people, places or vessels. believe this rule has implications for small entities, for the reasons stated in federalism or Indian tribes, please List of Subjects in 33 CFR Part 165 section V.A above, this rule will not contact the person listed in the FOR have a significant economic impact on Harbors, Marine safety, Navigation FURTHER INFORMATION CONTACT section any vessel owner or operator. (water), Reporting and recordkeeping above. requirements, Security measures, Under section 213(a) of the Small Waterways. Business Regulatory Enforcement E. Unfunded Mandates Reform Act Fairness Act of 1996 (Pub. L. 104–121), The Unfunded Mandates Reform Act For the reasons discussed in the we want to assist small entities in of 1995 (2 U.S.C. 1531–1538) requires preamble, the Coast Guard amends 33 understanding this rule. If the rule Federal agencies to assess the effects of CFR part 165 as follows: would affect your small business, their discretionary regulatory actions. In PART 165—REGULATED NAVIGATION organization, or governmental particular, the Act addresses actions AREAS AND LIMITED ACCESS AREAS jurisdiction and you have questions that may result in the expenditure by a concerning its provisions or options for State, local, or tribal government, in the ■ 1. The authority citation for part 165 compliance, please contact the person aggregate, or by the private sector of continues to read as follows: FOR FURTHER INFORMATION $100,000,000 (adjusted for inflation) or listed in the Authority: 46 U.S.C. 70034, 70051; 33 CFR CONTACT section. more in any one year. Though this rule 1.05–1, 6.04–1, 6.04–6, and 160.5; Small businesses may send comments will not result in such an expenditure, Department of Homeland Security Delegation on the actions of Federal employees we do discuss the effects of this rule No. 0170.1. who enforce, or otherwise determine elsewhere in this preamble. ■ 2. Add § 165.T08–0322 to read as compliance with, Federal regulations to F. Environment follows: the Small Business and Agriculture We have analyzed this rule under § 165.T08–0322 Security Zone; Corpus Regulatory Enforcement Ombudsman Department of Homeland Security Christi Ship Channel, Corpus Christi, TX. and the Regional Small Business Directive 023–01 and Commandant (a) Location. The following areas are Regulatory Fairness Boards. The Instruction M16475.1D, which guide the security zones: Ombudsman evaluates these actions Coast Guard in complying with the (1) The mooring basin bound by annually and rates each agency’s National Environmental Policy Act of 27°52′53.38″ N, 097°16′20.66″ W on the responsiveness to small business. If you 1969 (42 U.S.C. 4321–4370f), and have northern shoreline; thence to wish to comment on actions by determined that this action is one of a 27°52′45.58″ N, 097°16′19.60″ W; thence employees of the Coast Guard, call 1– category of actions that do not to 27°52′38.55″ N, 097°15′45.56″ W; 888–REG–FAIR (1–888–734–3247). The individually or cumulatively have a thence to 27°52′49.30″ N, 097°15′45.44″ Coast Guard will not retaliate against significant effect on the human W; thence west along the shoreline to small entities that question or complain environment. This rule involves a 27°52′53.38″ N, 097°16′20.66″ W, while about this rule or any policy or action temporary fixed security zone while Liquefied Natural Gas Carrier (LNGC) of the Coast Guard. LNGC MARVEL FALCON is moored at MARVEL FALCON is moored. C. Collection of Information the receiving facility mooring basin (2) All navigable waters encompassing bound by 27°52′53.38″ N, 097°16′20.66″ a 500-yard radius around the LNGC This rule will not call for a new W on the northern shoreline; thence to MARVEL FALCON while transiting collection of information under the 27°52′45.58″ N, 097°16′19.60″ W; thence outbound with cargo through the La Paperwork Reduction Act of 1995 (44 to 27°52′38.55″ N, 097°15′45.56″ W; Quinta Channel and Corpus Christi Ship U.S.C. 3501–3520). thence to 27°52′49.30″ N, 097°15′45.44″ Channel.

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(b) Effective period. This section is hearings must be received on or before C. How can I file an objection or hearing effective without actual notice from 8:45 July 15, 2019, and must be filed in request? a.m. until 11:59 p.m. on May 14, 2019. accordance with the instructions Under FFDCA section 408(g), 21 For the purposes of enforcement, actual provided in 40 CFR part 178 (see also U.S.C. 346a(g), any person may file an notice will be used from May 9, 2019 Unit I.C. of the SUPPLEMENTARY objection to any aspect of this regulation until 11:59 a.m. on May 14, 2019. INFORMATION). and may also request a hearing on those (c) Period of enforcement. This ADDRESSES: objections. You must file your objection section will be enforced from the time The docket for this action, identified by docket identification (ID) or request a hearing on this regulation LNGC MARVEL FALCON moors and in accordance with the instructions while the vessel is transiting outbound number EPA–HQ–OPP–2018–0207, is available at http://www.regulations.gov provided in 40 CFR part 178. To ensure through the La Quinta Channel and proper receipt by EPA, you must Corpus Christi Ship Channel from May or at the Office of Pesticide Programs Regulatory Public Docket (OPP Docket) identify docket ID number EPA–HQ– 9, 2019 through May 14, 2019. OPP–2018–0207 in the subject line on (d) Regulations. (1) The general in the Environmental Protection Agency Docket Center (EPA/DC), West William the first page of your submission. All regulations in § 165.33 apply. Entry into objections and requests for a hearing these zones is prohibited unless Jefferson Clinton Bldg., Rm. 3334, 1301 Constitution Ave. NW, Washington, DC must be in writing and must be received authorized by the Captain of the Port by the Hearing Clerk on or before July Sector Corpus Christi (COTP) or a 20460–0001. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., 15, 2019. Addresses for mail and hand designated representative. A designated delivery of objections and hearing representative is a commissioned, Monday through Friday, excluding legal holidays. The telephone number for the requests are provided in 40 CFR warrant, or petty officer of the U.S. 178.25(b). Coast Guard assigned to units under the Public Reading Room is (202) 566–1744, and the telephone number for the OPP In addition to filing an objection or operational control of USCG Sector hearing request with the Hearing Clerk Corpus Christi. Docket is (703) 305–5805. Please review the visitor instructions and additional as described in 40 CFR part 178, please (2) Persons or vessels desiring to enter submit a copy of the filing (excluding or pass through the zones must request information about the docket available at http://www.epa.gov/dockets. any Confidential Business Information permission from the COTP or a (CBI)) for inclusion in the public docket. FOR FURTHER INFORMATION CONTACT: designated representative on VHF–FM Information not marked confidential Michael Goodis, Registration Division channel 16 or by telephone at 361–939– pursuant to 40 CFR part 2 may be (7505P), Office of Pesticide Programs, 0450. disclosed publicly by EPA without prior (3) If permission is granted, all Environmental Protection Agency, 1200 notice. Submit the non-CBI copy of your persons and vessels shall comply with Pennsylvania Ave. NW, Washington, DC objection or hearing request, identified the instructions of the COTP or 20460–0001; main telephone number: by docket ID number EPA–HQ–OPP– designated representative. (703) 305–7090; email address: 2018–0207, by one of the following (e) Information broadcasts. The COTP [email protected]. methods: or a designated representative will SUPPLEMENTARY INFORMATION: • Federal eRulemaking Portal: http:// inform the public through Broadcast www.regulations.gov. Follow the online Notices to Mariners (BNMs) of the I. General Information instructions for submitting comments. enforcement times and date for these A. Does this action apply to me? Do not submit electronically any security zones. You may be potentially affected by information you consider to be CBI or Dated: May 6, 2019. this action if you are an agricultural other information whose disclosure is E.J. Gaynor, restricted by statute. producer, food manufacturer, or • Captain, U.S. Coast Guard, Captain of the pesticide manufacturer. The following Mail: OPP Docket, Environmental Port Sector Corpus Christi. list of North American Industrial Protection Agency Docket Center (EPA/ [FR Doc. 2019–10090 Filed 5–14–19; 8:45 am] Classification System (NAICS) codes is DC), (28221T), 1200 Pennsylvania Ave. BILLING CODE 9110–04–P NW, Washington, DC 20460–0001. not intended to be exhaustive, but rather • provides a guide to help readers Hand Delivery: To make special determine whether this document arrangements for hand delivery or ENVIRONMENTAL PROTECTION applies to them. Potentially affected delivery of boxed information, please AGENCY entities may include: follow the instructions at http:// www.epa.gov/dockets/contacts.html. • Crop production (NAICS code 111). 40 CFR Part 180 • Additional instructions on Animal production (NAICS code commenting or visiting the docket, [EPA–HQ–OPP–2018–0207; FRL–9991–49] 112). along with more information about • Food manufacturing (NAICS code Glufosinate Ammonium; Pesticide dockets generally, is available at http:// 311). Tolerances www.epa.gov/dockets. • Pesticide manufacturing (NAICS AGENCY: Environmental Protection code 32532). II. Summary of Petitioned-For Agency (EPA). Tolerance B. How can I get electronic access to In the Federal Register of August 14, ACTION: Final rule. other related information? 2018 (83 FR 40272) (FRL–9981–10), SUMMARY: This regulation amends You may access a frequently updated EPA issued a notice pursuant to FFDCA tolerances for residues of glufosinate electronic version of EPA’s tolerance section 408(d)(3), 21 U.S.C. 346a(d)(3), ammonium in or on Olive; Fruit, Stone regulations at 40 CFR part 180 through announcing the filing of a pesticide (crop group 12–12); Nuts, Tree (crop the Government Printing Office’s e-CFR petition (PP#8F8668) by Bayer group 14–12) and Soybean Hulls. site at http://www.ecfr.gov/cgi-bin/text- CropScience, 2 T.W. Alexander Drive, DATES: This regulation is effective May idx?&c=ecfr&tpl=/ecfrbrowse/Title40/ P.O. Box 12014, RTP, NCP 27709. The 15, 2019. Objections and requests for 40tab_02.tpl. petition requested that 40 CFR 180.473

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be amended by establishing tolerances stover; fruit, citrus (crop group 10–10); possible, consistent with U.S. food for residues of the herbicide glufosinate olive; fruit, pome (crop group 11–10); safety standards and agricultural ammonium, butanoic acid, 2-amino-4- and fruit, stone (crop group 12–12). EPA practices. EPA considers the (hydroxymethylphosphinyl) concluded a risk assessment in 2013 for international maximum residue limits monoammonium salt, and its the registration review of glufosinate (MRLs) established by the Codex metabolites, 2-(acetylamino)-4- and in 2017 for an increase in use rates Alimentarius Commission (Codex), as (hydroxymethyl phosphinyl) butanoic in/on canola, corn (field and sweet), and required by FFDCA section 408(b)(4). acid, and 3-(hydroxymethylphosphinyl) soybean and to incorporate 6(a)(2) data The Codex Alimentarius is a joint propanoic acid, expressed as 2-amino-4- on pistachio. The 2018 risk assessment United Nations Food and Agriculture (hydroxymethylphosphinyl) butanoic for an increase in tolerances for olive; Organization/World Health acid equivalents, in or on olive at 0.50 fruit, stone (group 12–12); nut, tree Organization food standards program, parts per million (ppm); fruit, stone (group 14–12); and soybean, hulls and it is recognized as an international (crop group 12–12) at 0.30 ppm; nut, concluded that the 2012, 2013, and 2017 food safety standards-setting tree (crop group 14–12) at 0.50 ppm, risk assessments support the tolerance organization in trade agreements to and soybean hulls at 10 ppm. That increases. The tolerance increases do which the United States is a party. EPA document referenced a summary of the not increase the dietary or aggregate risk may establish a tolerance that is petition prepared by Bayer CropScience, estimates. A detailed discussion of the different from a Codex MRL; however, the registrant, which is available in the aggregate risk assessments and FFDCA section 408(b)(4) requires that docket, http://www.regulations.gov. determination of safety for the tolerance EPA explain the reasons for departing There were no comments received in increases can be found at http:// from the Codex level. response to the notice of filing. www.regulations.gov in documents The Codex has not established a MRL titled ‘‘Glufosinate Ammonium. for glufosinate ammonium in or on olive III. Aggregate Risk Assessment and or soybean hulls. Codex has set a MRL Determination of Safety Abbreviated Risk Assessment for Increase in Tolerances for Olive, Stone for stone fruit at 0.15 ppm, and a MRL Section 408(b)(2)(A)(i) of FFDCA Fruit (Group 12–12), Tree Nuts (Group for tree nuts at 0.1 ppm. EPA cannot allows EPA to establish a tolerance (the 14–12), and Soybean Hull.’’, harmonize recommended U.S. tolerance legal limit for a pesticide chemical ‘‘Glufosinate ammonium. Human Health values with the Codex MRLs for stone residue in or on a food) only if EPA Risk Assessment for the Label fruit or tree nuts because the lower determines that the tolerance is ‘‘safe.’’ Amendment Increasing the Use Rate in/ MRLs could be exceeded with the uses Section 408(b)(2)(A)(ii) of FFDCA on Canola, Com (Field and sweet), and petitioned-for in this action. defines ‘‘safe’’ to mean that ‘‘there is a Soybean; and to Incorporate 6(a)(2) Data reasonable certainty that no harm will V. Conclusion on Pistachio.’’, ‘‘Glufosinate result from aggregate exposure to the Therefore, tolerances are established Ammonium. Human Health Risk pesticide chemical residue, including for residues of glufosinate ammonium, Assessment for Registration Review.’’, all anticipated dietary exposures and all butanoic acid, 2-amino-4- and ‘‘Glufosinate Ammonium. Updated other exposures for which there is (hydroxymethylphosphinyl) Human Health Risk Assessment for the reliable information.’’ This includes monoammonium salt, and its Proposed New Use of Glufosinate exposure through drinking water and in metabolites, 2-(acetylamino)-4- Ammonium in/on Citrus Fruit (Crop residential settings but does not include (hydroxymethyl phosphinyl) butanoic occupational exposure. Section Group 10), Pome Fruit (Crop Group 11), acid, and 3-(hydroxymethylphosphinyl) 408(b)(2)(C) of FFDCA requires EPA to Stone Fruit (Crop Group 12), Olives and propanoic acid, expressed as 2-amino-4- give special consideration to exposure Sweet Corn’’ in docket ID number EPA– (hydroxymethylphosphinyl) butanoic of infants and children to the pesticide HQ–OPP–2018–0207. acid equivalents, in or on olive at 0.50 chemical residue in establishing a EPA concludes that there is ppm; fruit, stone (crop group 12–12) at tolerance and to ‘‘ensure that there is a reasonable certainty that no harm will 0.30 ppm; nut, trees (crop group 14–12) reasonable certainty that no harm will result to the general population or to at 0.50 ppm; and soybean, hulls at 10 result to infants and children from infants and children from aggregate ppm. aggregate exposure to the pesticide exposure to glufosinate ammonium VI. Statutory and Executive Order chemical residue. . . .’’ residues. Reviews Consistent with FFDCA section IV. Other Considerations 408(b)(2)(D), and the factors specified in This action establishes tolerances FFDCA section 408(b)(2)(D), EPA has A. Analytical Enforcement Methodology under FFDCA section 408(d) in reviewed the available scientific data An adequate enforcement response to a petition submitted to the and other relevant information in methodology (high performance liquid Agency. The Office of Management and support of this action. EPA has chromatography-electrospray Budget (OMB) has exempted these types sufficient data to assess the hazards of ionization/tandem mass spectrometry of actions from review under Executive and to make a determination on (LC/MS/MS)) is available to enforce the Order 12866, entitled ‘‘Regulatory aggregate exposure for glufosinate tolerance expression. The method may Planning and Review’’ (58 FR 51735, ammonium including exposure be requested from: Chief, Analytical October 4, 1993). Because this action resulting from the tolerances established Chemistry Branch, Environmental has been exempted from review under by this action. EPA’s assessment of Science Center, 701 Mapes Rd., Ft. Executive Order 12866, this action is exposures and risks associated with Meade, MD 20755–5350; telephone not subject to Executive Order 13211, glufosinate ammonium follows. number: (410) 305–2905; email address: entitled ‘‘Actions Concerning In the Federal Register of September [email protected]. Regulations That Significantly Affect 26, 2012 (77 FR 59106) (FRL–9363–6), Energy Supply, Distribution, or Use’’ (66 EPA established tolerances for residues B. International Residue Limits FR 28355, May 22, 2001) or Executive of glufosinate ammonium in or on corn, In making its tolerance decisions, EPA Order 13045, entitled ‘‘Protection of sweet, forage; corn, sweet, kernel plus seeks to harmonize U.S. tolerances with Children from Environmental Health cob with husks removed; corn, sweet, international standards whenever Risks and Safety Risks’’ (62 FR 19885,

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April 23, 1997). This action does not List of Subjects in 40 CFR Part 180 hazardous substances, pollutants or contain any information collections Environmental protection, contaminants throughout the United subject to OMB approval under the Administrative practice and procedure, States. The National Priorities List Paperwork Reduction Act (PRA) (44 Agricultural commodities, Pesticides (‘‘NPL’’) constitutes this list. The NPL is U.S.C. 3501 et seq.), nor does it require and pests, Reporting and recordkeeping intended primarily to guide the any special considerations under requirements. Environmental Protection Agency (‘‘the Executive Order 12898, entitled EPA’’ or ‘‘the agency’’) in determining ‘‘Federal Actions to Address Dated: April 3, 2019. which sites warrant further Environmental Justice in Minority Donna Davis, investigation. These further Populations and Low-Income Acting Director, Registration Division, Office investigations will allow the EPA to Populations’’ (59 FR 7629, February 16, of Pesticide Programs. assess the nature and extent of public 1994). Therefore, 40 CFR chapter I is health and environmental risks Since tolerances and exemptions that amended as follows: associated with the site and to are established on the basis of a petition determine what CERCLA-financed under FFDCA section 408(d), such as PART 180—[AMENDED] remedial action(s), if any, may be the tolerance in this final rule, do not appropriate. This rule adds seven sites require the issuance of a proposed rule, ■ 1. The authority citation for part 180 to the General Superfund section of the the requirements of the Regulatory continues to read as follows: NPL and changes the name of an NPL Flexibility Act (RFA) (5 U.S.C. 601 et Authority: 21 U.S.C. 321(q), 346a and 371. site. seq.), do not apply. ■ 2. In § 180.473, revise the entries DATES: The document is effective on This action directly regulates growers, ‘‘Fruit, stone, group 12–12’’; ‘‘Nut, tree, June 14, 2019. food processors, food handlers, and food group 14–12’’; ‘‘Olive’’; and ‘‘Soybean, ADDRESSES: Contact information for the retailers, not States or tribes, nor does hulls’’ in the table in paragraph (a) to EPA Headquarters: this action alter the relationships or read as follows: • Docket Coordinator, Headquarters; distribution of power and U.S. Environmental Protection Agency; responsibilities established by Congress § 180.473 Glufosinate ammonium; CERCLA Docket Office; 1301 in the preemption provisions of FFDCA tolerances for residues. Constitution Avenue NW; William section 408(n)(4). As such, the Agency (a) * * * Jefferson Clinton Building West, Room has determined that this action will not 3334, Washington, DC 20004, 202/566– have a substantial direct effect on States Parts per Commodity million 0276. or tribal governments, on the The contact information for the relationship between the national regional dockets is as follows: government and the States or tribal ***** • Holly Inglis, Region 1 (CT, ME, MA, governments, or on the distribution of Fruit, stone, group 12–12 ...... 0.30 NH, RI, VT), U.S. EPA, Superfund power and responsibilities among the Records and Information Center, 5 Post various levels of government or between ***** Office Square, Suite 100, Boston, MA the Federal Government and Indian Nut, tree, group 14–12 ...... 0.50 02109–3912; 617/918–1413. tribes. Thus, the Agency has determined Olive ...... 0.50 • Ildefonso Acosta, Region 2 (NJ, NY, that Executive Order 13132, entitled PR, VI), U.S. EPA, 290 Broadway, New ‘‘Federalism’’ (64 FR 43255, August 10, ***** York, NY 10007–1866; 212/637–4344. 1999) and Executive Order 13175, Soybean, hulls ...... 10 • Lorie Baker (ASRC), Region 3 (DE, entitled ‘‘Consultation and Coordination DC, MD, PA, VA, WV), U.S. EPA, * * * * * with Indian Tribal Governments’’ (65 FR Library, 1650 Arch Street, Mailcode [FR Doc. 2019–10054 Filed 5–14–19; 8:45 am] 67249, November 9, 2000) do not apply 3HS12, Philadelphia, PA 19103; 215/ to this action. In addition, this action BILLING CODE 6560–50–P 814–3355. does not impose any enforceable duty or • Cathy Amoroso, Region 4 (AL, FL, contain any unfunded mandate as ENVIRONMENTAL PROTECTION GA, KY, MS, NC, SC, TN), U.S. EPA, 61 described under Title II of the Unfunded AGENCY Forsyth Street SW, Mailcode 9T25, Mandates Reform Act (UMRA) (2 U.S.C. Atlanta, GA 30303; 404/562–8637. • 1501 et seq.). 40 CFR Part 300 Todd Quesada, Region 5 (IL, IN, MI, This action does not involve any MN, OH, WI), U.S. EPA Superfund technical standards that would require [EPA–HQ–SFUND–1989–0007, EPA–HQ– Division Librarian/SFD Records Agency consideration of voluntary OLEM–2018–0253, 0580, 0581, 0582, 0583, Manager SRC–7J, Metcalfe Federal 0585, and 0586; FRL–9993–49–OLEM] consensus standards pursuant to section Building, 77 West Jackson Boulevard, 12(d) of the National Technology National Priorities List Chicago, IL 60604; 312/886–4465. Transfer and Advancement Act • Brenda Cook, Region 6 (AR, LA, (NTTAA) (15 U.S.C. 272 note). AGENCY: Environmental Protection NM, OK, TX), U.S. EPA, 1445 Ross Agency (EPA). VII. Congressional Review Act Avenue, Suite 1200, Mailcode 6SFTS, ACTION: Final rule. Dallas, TX 75202–2733; 214/665–7436. Pursuant to the Congressional Review • Kumud Pyakuryal, Region 7 (IA, Act (5 U.S.C. 801 et seq.), EPA will SUMMARY: The Comprehensive KS, MO, NE), U.S. EPA, 11201 Renner submit a report containing this rule and Environmental Response, Blvd., Mailcode SUPRSTAR, Lenexa, KS other required information to the U.S. Compensation, and Liability Act of 1980 66219; 913/551–7956. Senate, the U.S. House of (‘‘CERCLA’’ or ‘‘the Act’’), as amended, • Victor Ketellapper, Region 8 (CO, Representatives, and the Comptroller requires that the National Oil and MT, ND, SD, UT, WY), U.S. EPA, 1595 General of the United States prior to Hazardous Substances Pollution Wynkoop Street, Mailcode 8EPR–B, publication of the rule in the Federal Contingency Plan (‘‘NCP’’) include a list Denver, CO 80202–1129; 303/312–6578. Register. This action is not a ‘‘major of national priorities among the known • Sharon Bowen, Region 9 (AZ, CA, rule’’ as defined by 5 U.S.C. 804(2). releases or threatened releases of HI, NV, AS, GU, MP), U.S. EPA, 75

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Hawthorne Street, Mailcode SFD 6–1, H. Executive Order 13045: Protection of C. What is the National Priorities List San Francisco, CA 94105; 415/947– Children From Environmental Health (NPL)? 4250. and Safety Risks • I. Executive Order 13211: Actions That The NPL is a list of national priorities Ken Marcy, Region 10 (AK, ID, OR, among the known or threatened releases WA), U.S. EPA, 1200 6th Avenue, Significantly Affect Energy Supply, Distribution, or Use of hazardous substances, pollutants or Mailcode ECL–112, Seattle, WA 98101; J. National Technology Transfer and contaminants throughout the United 206/463–1349. Advancement Act (NTTAA) States. The list, which is appendix B of FOR FURTHER INFORMATION CONTACT: K. Executive Order 12898: Federal Actions the NCP (40 CFR part 300), was required Terry Jeng, phone: (703) 603–8852, To Address Environmental Justice in under section 105(a)(8)(B) of CERCLA, email: [email protected], Site Minority Populations and Low-Income as amended. Section 105(a)(8)(B) Assessment and Remedy Decisions Populations L. Congressional Review Act defines the NPL as a list of ‘‘releases’’ Branch, Assessment and Remediation and the highest priority ‘‘facilities’’ and Division, Office of Superfund I. Background requires that the NPL be revised at least Remediation and Technology A. What are CERCLA and SARA? annually. The NPL is intended Innovation (Mailcode 5204P), U.S. primarily to guide the EPA in Environmental Protection Agency; 1200 In 1980, Congress enacted the determining which sites warrant further Pennsylvania Avenue NW, Washington, Comprehensive Environmental investigation to assess the nature and DC 20460; or the Superfund Hotline, Response, Compensation, and Liability extent of public health and phone (800) 424–9346 or (703) 412– Act, 42 U.S.C. 9601–9675 (‘‘CERCLA’’ or environmental risks associated with a 9810 in the Washington, DC, ‘‘the Act’’), in response to the dangers of release of hazardous substances, metropolitan area. uncontrolled releases or threatened pollutants or contaminants. The NPL is SUPPLEMENTARY INFORMATION: releases of hazardous substances, and of only limited significance, however, as releases or substantial threats of releases Table of Contents it does not assign liability to any party into the environment of any pollutant or or to the owner of any specific property. I. Background contaminant that may present an Also, placing a site on the NPL does not A. What are CERCLA and SARA? imminent or substantial danger to the mean that any remedial or removal B. What is the NCP? public health or welfare. CERCLA was action necessarily need be taken. C. What is the National Priorities List amended on October 17, 1986, by the (NPL)? For purposes of listing, the NPL D. How are sites listed on the NPL? Superfund Amendments and includes two sections, one of sites that E. What happens to sites on the NPL? Reauthorization Act (‘‘SARA’’), Public are generally evaluated and cleaned up F. Does the NPL define the boundaries of Law 99–499, 100 Stat. 1613 et seq. by the EPA (the ‘‘General Superfund sites? B. What is the NCP? section’’) and one of sites that are G. How are sites removed from the NPL? owned or operated by other federal H. May the EPA delete portions of sites To implement CERCLA, the EPA agencies (the ‘‘Federal Facilities from the NPL as they are cleaned up? promulgated the revised National Oil section’’). With respect to sites in the I. What is the Construction Completion List and Hazardous Substances Pollution Federal Facilities section, these sites are (CCL)? Contingency Plan (‘‘NCP’’), 40 CFR part J. What is the Sitewide Ready for generally being addressed by other Anticipated Use measure? 300, on July 16, 1982 (47 FR 31180), federal agencies. Under Executive Order K. What is state/tribal correspondence pursuant to CERCLA section 105 and 12580 (52 FR 2923, January 29, 1987) concerning NPL Listing? Executive Order 12316 (46 FR 42237, and CERCLA section 120, each federal II. Availability of Information to the Public August 20, 1981). The NCP sets agency is responsible for carrying out A. May I review the documents relevant to guidelines and procedures for most response actions at facilities under this final rule? responding to releases and threatened its own jurisdiction, custody or control, B. What documents are available for review releases of hazardous substances, or although the EPA is responsible for at the EPA Headquarters docket? releases or substantial threats of releases preparing a Hazard Ranking System C. What documents are available for review into the environment of any pollutant or at the EPA regional dockets? (‘‘HRS’’) score and determining whether D. How do I access the documents? contaminant that may present an the facility is placed on the NPL. imminent or substantial danger to the E. How may I obtain a current list of NPL D. How are sites listed on the NPL? sites? public health or welfare. The EPA has III. Contents of This Final Rule revised the NCP on several occasions. There are three mechanisms for A. Additions to the NPL The most recent comprehensive revision placing sites on the NPL for possible B. What did the EPA do with the public was on March 8, 1990 (55 FR 8666). remedial action (see 40 CFR 300.425(c) comments it received? As required under section of the NCP): (1) A site may be included C. Site Name Change 105(a)(8)(A) of CERCLA, the NCP also on the NPL if it scores sufficiently high IV. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory includes ‘‘criteria for determining on the HRS, which the EPA Planning and Review and Executive priorities among releases or threatened promulgated as appendix A of the NCP Order 13563: Improving Regulation and releases throughout the United States (40 CFR part 300). The HRS serves as a Regulatory Review for the purpose of taking remedial screening tool to evaluate the relative B. Executive Order 13771: Reducing action and, to the extent practicable, potential of uncontrolled hazardous Regulation and Controlling Regulatory taking into account the potential substances, pollutants or contaminants Costs urgency of such action, for the purpose to pose a threat to human health or the C. Paperwork Reduction Act (PRA) of taking removal action.’’ ‘‘Removal’’ environment. On December 14, 1990 (55 D. Regulatory Flexibility Act (RFA) actions are defined broadly and include FR 51532), the EPA promulgated E. Unfunded Mandates Reform Act (UMRA) a wide range of actions taken to study, revisions to the HRS partly in response F. Executive Order 13132: Federalism clean up, prevent or otherwise address to CERCLA section 105(c), added by G. Executive Order 13175: Consultation releases and threatened releases of SARA. On January 9, 2017 (82 FR 2760), and Coordination With Indian Tribal hazardous substances, pollutants or a subsurface intrusion component was Governments contaminants (42 U.S.C. 9601(23)). added to the HRS to enable the EPA to

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consider human exposure to hazardous releases that are priorities for further information is developed on site substances or pollutants and evaluation), for it to do so. Indeed, the contamination, and which is generally contaminants that enter regularly precise nature and extent of the site are performed in an interactive fashion with occupied structures through subsurface typically not known at the time of the feasibility study (‘‘FS’’) (40 CFR intrusion when evaluating sites for the listing. 300.5). During the RI/FS process, the NPL. The current HRS evaluates four Although a CERCLA ‘‘facility’’ is release may be found to be larger or pathways: Ground water, surface water, broadly defined to include any area smaller than was originally thought, as soil exposure and subsurface intrusion, where a hazardous substance has ‘‘come more is learned about the source(s) and and air. As a matter of agency policy, to be located’’ (CERCLA section 101(9)), the migration of the contamination. those sites that score 28.50 or greater on the listing process itself is not intended However, the HRS inquiry focuses on an the HRS are eligible for the NPL. (2) to define or reflect the boundaries of evaluation of the threat posed and Each state may designate a single site as such facilities or releases. Of course, therefore the boundaries of the release its top priority to be listed on the NPL, HRS data (if the HRS is used to list a need not be exactly defined. Moreover, without any HRS score. This provision site) upon which the NPL placement it generally is impossible to discover the of CERCLA requires that, to the extent was based will, to some extent, describe full extent of where the contamination practicable, the NPL include one facility the release(s) at issue. That is, the NPL ‘‘has come to be located’’ before all designated by each state as the greatest site would include all releases evaluated necessary studies and remedial work are danger to public health, welfare or the as part of that HRS analysis. completed at a site. Indeed, the known environment among known facilities in When a site is listed, the approach boundaries of the contamination can be the state. This mechanism for listing is generally used to describe the relevant expected to change over time. Thus, in set out in the NCP at 40 CFR release(s) is to delineate a geographical most cases, it may be impossible to 300.425(c)(2). (3) The third mechanism area (usually the area within an describe the boundaries of a release for listing, included in the NCP at 40 installation or plant boundaries) and with absolute certainty. CFR 300.425(c)(3), allows certain sites identify the site by reference to that Further, as noted previously, NPL to be listed without any HRS score, if all area. However, the NPL site is not listing does not assign liability to any of the following conditions are met: necessarily coextensive with the party or to the owner of any specific • The Agency for Toxic Substances boundaries of the installation or plant, property. Thus, if a party does not and Disease Registry (ATSDR) of the and the boundaries of the installation or believe it is liable for releases on U.S. Public Health Service has issued a plant are not necessarily the discrete parcels of property, it can health advisory that recommends ‘‘boundaries’’ of the site. Rather, the site submit supporting information to the dissociation of individuals from the consists of all contaminated areas agency at any time after it receives release. within the area used to identify the site, notice it is a potentially responsible • The EPA determines that the release as well as any other location where that party. poses a significant threat to public contamination has come to be located, For these reasons, the NPL need not health. or from where that contamination came. be amended as further research reveals • The EPA anticipates that it will be In other words, while geographic more information about the location of more cost-effective to use its remedial terms are often used to designate the site the contamination or release. authority than to use its removal (e.g., the ‘‘Jones Co. Plant site’’) in terms authority to respond to the release. of the property owned by a particular G. How are sites removed from the NPL? The EPA promulgated an original NPL party, the site, properly understood, is The EPA may delete sites from the of 406 sites on September 8, 1983 (48 FR not limited to that property (e.g., it may NPL where no further response is 40658) and generally has updated it at extend beyond the property due to appropriate under Superfund, as least annually. contaminant migration), and conversely explained in the NCP at 40 CFR may not occupy the full extent of the E. What happens to sites on the NPL? 300.425(e). This section also provides property (e.g., where there are that the EPA shall consult with states on A site may undergo remedial action uncontaminated parts of the identified proposed deletions and shall consider financed by the Trust Fund established property, they may not be, strictly whether any of the following criteria under CERCLA (commonly referred to speaking, part of the ‘‘site’’). The ‘‘site’’ have been met: as the ‘‘Superfund’’) only after it is is thus neither equal to, nor confined by, (i) Responsible parties or other placed on the NPL, as provided in the the boundaries of any specific property persons have implemented all NCP at 40 CFR 300.425(b)(1). that may give the site its name, and the appropriate response actions required; (‘‘Remedial actions’’ are those name itself should not be read to imply (ii) All appropriate Superfund- ‘‘consistent with a permanent remedy, that this site is coextensive with the financed response has been taken instead of or in addition to entire area within the property implemented and no further response removal actions’’ (40 CFR 300.5).) boundary of the installation or plant. In action is required; or However, under 40 CFR 300.425(b)(2), addition, the site name is merely used (iii) The remedial investigation has placing a site on the NPL ‘‘does not to help identify the geographic location shown the release poses no significant imply that monies will be expended.’’ of the contamination, and is not meant threat to public health or the The EPA may pursue other appropriate to constitute any determination of environment, and taking of remedial authorities to respond to the releases, liability at a site. For example, the name measures is not appropriate. including enforcement action under ‘‘Jones Co. plant site,’’ does not imply H. May the EPA delete portions of sites CERCLA and other laws. that the Jones Company is responsible for the contamination located on the from the NPL as they are cleaned up? F. Does the NPL define the boundaries plant site. In November 1995, the EPA initiated of sites? EPA regulations provide that the a policy to delete portions of NPL sites The NPL does not describe releases in remedial investigation (‘‘RI’’) ‘‘is a where cleanup is complete (60 FR precise geographical terms; it would be process undertaken . . . to determine 55465, November 1, 1995). Total site neither feasible nor consistent with the the nature and extent of the problem cleanup may take many years, while limited purpose of the NPL (to identify presented by the release’’ as more portions of the site may have been

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cleaned up and made available for Implementing the Sitewide Ready-for- tribal correspondence that (1) explains productive use. Reuse Measure, May 24, 2006, OSWER the concerns at the site and the EPA’s 9365.0–36. This measure applies to final rationale for proceeding; (2) requests an I. What is the Construction Completion and deleted sites where construction is explanation of how the state intends to List (CCL)? complete, all cleanup goals have been address the site if placement on the NPL The EPA also has developed an NPL achieved, and all institutional or other is not favored; and (3) emphasizes the construction completion list (‘‘CCL’’) to controls are in place. The EPA has been transparent nature of the process by simplify its system of categorizing sites successful on many occasions in informing states that information on and to better communicate the carrying out remedial actions that their responses will be publicly successful completion of cleanup ensure protectiveness of human health available. activities (58 FR 12142, March 2, 1993). and the environment for current and Inclusion of a site on the CCL has no A model letter and correspondence future land uses, in a manner that between the EPA and states and tribes legal significance. allows contaminated properties to be Sites qualify for the CCL when: (1) where applicable, is available on the restored to environmental and economic EPA’s website at http:// Any necessary physical construction is vitality. For further information, please semspub.epa.gov/src/document/HQ/ complete, whether or not final cleanup go to https://www.epa.gov/superfund/ 174024. levels or other requirements have been about-superfund-cleanup-process#tab-9. achieved; (2) the EPA has determined II. Availability of Information to the K. What is state/tribal correspondence that the response action should be Public limited to measures that do not involve concerning NPL listing? construction (e.g., institutional In order to maintain close A. May I review the documents relevant controls); or (3) the site qualifies for coordination with states and tribes in to this final rule? deletion from the NPL. For more the NPL listing decision process, the Yes, documents relating to the information on the CCL, see the EPA’s EPA’s policy is to determine the evaluation and scoring of the sites in internet site at https://www.epa.gov/ position of the states and tribes this final rule are contained in dockets superfund/construction-completions- regarding sites that the EPA is located both at the EPA headquarters national-priorities-list-npl-sites-number. considering for listing. This and in the EPA regional offices. consultation process is outlined in two J. What is the Sitewide Ready for memoranda that can be found at the An electronic version of the public Anticipated Use measure? following website: https://www.epa.gov/ docket is available through https:// The Sitewide Ready for Anticipated superfund/statetribal-correspondence- www.regulations.gov (see table below Use measure represents important concerning-npl-site-listing. for docket identification numbers). Superfund accomplishments and the The EPA has improved the Although not all docket materials may measure reflects the high priority the transparency of the process by which be available electronically, you may still EPA places on considering anticipated state and tribal input is solicited. The access any of the publicly available future land use as part of the remedy EPA is using the Web and where docket materials through the docket selection process. See Guidance for appropriate more structured state and facilities identified in section II.D.

DOCKET IDENTIFICATION NUMBERS BY SITE

Site name City/county, state Docket ID No.

Copper Bluff Mine ...... Hoopa, CA ...... EPA–HQ–OLEM–2018–0580. Cliff Drive Groundwater Contamination ...... Logansport, IN ...... EPA–HQ–OLEM–2018–0581. McLouth Steel Corp ...... Trenton, MI ...... EPA–HQ–OLEM–2018–0582. Sporlan Valve Plant #1 ...... Washington, MO ...... EPA–HQ–OLEM–2018–0583. Magna Metals ...... Cortlandt Manor, NY ...... EPA–HQ–OLEM–2018–0585. PROTECO ...... Pen˜uelas, PR ...... EPA–HQ–OLEM–2018–0253. Shaffer Equipment/Arbuckle Creek Area ...... Minden, WV ...... EPA–HQ–OLEM–2018–0586.

B. What documents are available for These reference documents are available E. How may I obtain a current list of review at the EPA Headquarters docket? only in the regional dockets. NPL sites? The headquarters docket for this rule D. How do I access the documents? You may obtain a current list of NPL contains the HRS score sheets, the sites via the internet at https:// You may view the documents, by documentation record describing the www.epa.gov/superfund/national- appointment only, after the publication information used to compute the score priorities-list-npl-sites-site-name or by contacting the Superfund docket (see and a list of documents referenced in of this rule. The hours of operation for contact information in the beginning the documentation record for each site. the headquarters docket are from 8:30 a.m. to 4:30 p.m., Monday through portion of this document). C. What documents are available for Friday, excluding federal holidays. III. Contents of This Final Rule review at the EPA regional dockets? Please contact the regional dockets for hours. For addresses for the A. Additions to the NPL The EPA regional dockets contain all headquarters and regional dockets, see the information in the headquarters This final rule adds the following ADDRESSES section in the beginning docket, plus the actual reference seven sites to the General Superfund portion of this preamble. section of the NPL. These sites are being documents containing the data added to the NPL based on HRS score. principally relied upon by the EPA in calculating or evaluating the HRS score. General Superfund Section

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State Site name City/county

CA ...... Copper Bluff Mine ...... Hoopa. IN ...... Cliff Drive Groundwater Contamination ...... Logansport. MI ...... McLouth Steel Corp ...... Trenton. MO ...... Sporlan Valve Plant #1 ...... Washington. NY ...... Magna Metals ...... Cortlandt Manor. PR ...... PROTECO ...... Pen˜uelas. WV ...... Shaffer Equipment/Arbuckle Creek Area ...... Minden.

B. What did the EPA do with the public under Superfund’s remedial program. IV. Statutory and Executive Order comments it received? Several commenters requested Reviews The EPA reviewed all comments permanent relocation either for Additional information about these received on the sites in this rule and themselves or on behalf of other statutes and Executive Orders can be responded to all relevant comments. community members. A few found at https://www.epa.gov/laws- The EPA is adding seven sites to the commenters raised concerns about the regulations/laws-and-executive-orders. NPL in this final rule. The PROTECO possibility of contamination spreading. site in Pen˜ uelas, PR was proposed for Several comments from community A. Executive Order 12866: Regulatory addition to the NPL on May 17, 2018 (83 members opposed listing because of the Planning and Review and Executive FR 22918). The remaining six sites were perceived stigma of Superfund which Order 13563: Improving Regulation and proposed for addition to the NPL on they believe could result in negative Regulatory Review September 13, 2018 (83 FR 46460). community impacts. This action is not a significant Comments on the PROTECO site are In response, EPA is adding the Shaffer regulatory action and was therefore not being addressed in a response to Equipment/Arbuckle Creek Area to the submitted to the Office of Management comment support document available in NPL. Economic factors are generally not and Budget (OMB) for review. the public docket concurrently with this considered in the assessment of whether rule. To view public comments on this a site belongs on the NPL. However, the B. Executive Order 13771: Reducing site, as well as EPA’s response, please EPA notes that there are both costs and Regulation and Controlling Regulatory refer to the support document available benefits that can be associated with Costs at https://www.regulations.gov. including a site on the NPL. Among the This action is not an Executive Order The EPA received no comments on benefits are increased environmental 13771 regulatory action because this the Cliff Drive Groundwater protection resulting from the cleanup. action is not significant under Executive Contamination site. Therefore, it is possible that any Order 12866. EPA received comments supporting perceived or actual negative fluctuations the listing of McLouth Steel Corp, in property values that may result from C. Paperwork Reduction Act (PRA) Sporlan Valve Plant #1 and Copper contamination may also be countered by This action does not impose an Bluff Mine. positive fluctuations when a CERCLA information collection burden under the For Magna Metals, in addition to investigation and any necessary cleanup PRA. This rule does not contain any several comments in support of the are completed. information collection requirements that listing, the EPA received one comment For several sites included in this final require approval of the OMB. from a community member raising rule, the EPA received comments concerns about the adequacy of unrelated to listing which were not D. Regulatory Flexibility Act (RFA) previous site investigations and urging relevant. In addition, there were several I certify that this action will not have that a comprehensive off-site sites for which comments were a significant economic impact on a investigation be conducted as part of the submitted erroneously to incorrect substantial number of small entities RI/FS process. In response, the docket numbers. All listing-related under the RFA. This action will not commenter’s suggestions for further comments that were submitted to impose any requirements on small study have been noted and will be incorrect dockets were duplicated into entities. This rule listing sites on the considered during further site related the correct dockets for the site for which NPL does not impose any obligations on activities. The RI/FS study phase they were intended. any group, including small entities. This involves on-site and off-site testing to rule also does not establish standards or C. NPL Site Name Change assess the nature and extent of the requirements that any small entity must public health and environmental risks On September 13, 2018 (83 FR 46460), meet, and imposes no direct costs on associated with the site and to EPA proposed to change the name of an any small entity. Whether an entity, determine what CERCLA-funded NPL site in San Francisco, California small or otherwise, is liable for response remedial actions, if any, may be which was formally known as the costs for a release of hazardous appropriate. Treasure Island Naval Station-Hunters substances depends on whether that For the Shaffer Equipment/Arbuckle Point Annex site. EPA received no entity is liable under CERCLA 107(a). Creek Area, the EPA received comments on the name change. Any such liability exists regardless of overwhelming community support for Therefore, the name has been changed whether the site is listed on the NPL placing the site on the NPL, including and the site is now known as Hunters through this rulemaking. mass mailers from community members. Point Naval Shipyard. The name A law firm representing the community Hunters Point Naval Shipyard is more E. Unfunded Mandates Reform Act provided an independent technical representative of the area to the local (UMRA) review that raised concerns about community and local government. Refer This action does not contain any previous cleanup work by EPA under to docket number EPA–HQ–SFUND– unfunded mandate as described in the removal program but supported NPL 1989–0007 for information regarding UMRA, 2 U.S.C. 1531–1538, and does listing as a means to address site risks this site. not significantly or uniquely affect small

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governments. This action imposes no significant regulatory action under validity of the legislative veto into enforceable duty on any state, local or Executive Order 12866. question, the EPA has transmitted a tribal governments or the private sector. copy of this regulation to the Secretary J. National Technology Transfer and Listing a site on the NPL does not itself of the Senate and the Clerk of the House Advancement Act (NTTAA) impose any costs. Listing does not mean of Representatives. that the EPA necessarily will undertake This rulemaking does not involve If action by Congress under either the remedial action. Nor does listing require technical standards. CRA or CERCLA section 305 calls the any action by a private party, state, local K. Executive Order 12898: Federal effective date of this regulation into or tribal governments or determine Actions To Address Environmental question, the EPA will publish a liability for response costs. Costs that Justice in Minority Populations and document of clarification in the Federal arise out of site responses result from Low-Income Populations Register. future site-specific decisions regarding what actions to take, not directly from The EPA believes the human health or List of Subjects in 40 CFR Part 300 the act of placing a site on the NPL. environmental risk addressed by this action will not have potential Environmental protection, Air F. Executive Order 13132: Federalism disproportionately high and adverse pollution control, Chemicals, Hazardous This final rule does not have human health or environmental effects substances, Hazardous waste, federalism implications. It will not have on minority, low-income or indigenous Intergovernmental relations, Natural substantial direct effects on the states, populations because it does not affect resources, Oil pollution, Penalties, on the relationship between the national the level of protection provided to Reporting and recordkeeping government and the states, or on the human health or the environment. As requirements, Superfund, Water distribution of power and discussed in Section I.C. of the pollution control, Water supply. responsibilities among the various preamble to this action, the NPL is a list Dated: May 6, 2019. levels of government. of national priorities. The NPL is Barry N. Breen, G. Executive Order 13175: Consultation intended primarily to guide the EPA in Acting Assistant Administrator, Office of and Coordination With Indian Tribal determining which sites warrant further Land and Emergency Management. investigation to assess the nature and Governments 40 CFR part 300 is amended as extent of public health and This action does not have tribal follows: environmental risks associated with a implications as specified in Executive release of hazardous substances, Order 13175. Listing a site on the NPL PART 300—NATIONAL OIL AND pollutants or contaminants. The NPL is does not impose any costs on a tribe or HAZARDOUS SUBSTANCES of only limited significance as it does require a tribe to take remedial action. POLLUTION CONTINGENCY PLAN not assign liability to any party. Also, Thus, Executive Order 13175 does not placing a site on the NPL does not mean apply to this action. ■ 1. The authority citation for part 300 that any remedial or removal action continues to read as follows: H. Executive Order 13045: Protection of necessarily need be taken. Children From Environmental Health Authority: 33 U.S.C. 1321(d); 42 U.S.C. and Safety Risks L. Congressional Review Act 9601–9657; E.O. 13626, 77 FR 56749, 3CFR, This action is subject to the CRA, and 2013 Comp., p. 306; E.O. 12777, 56 FR 54757, The EPA interprets Executive Order 3 CFR, 1991 Comp., p.351; E.O. 12580, 52 FR 13045 as applying only to those the EPA will submit a rule report to 2923, 3 CFR, 1987 Comp., p.193. regulatory actions that concern each House of the Congress and to the environmental health or safety risks that Comptroller General of the United ■ 2. Table 1 of appendix B to part 300 the EPA has reason to believe may States. This action is not a ‘‘major rule’’ is amended as follows: disproportionately affect children, per as defined by 5 U.S.C. 804(2). ■ a. Under California: Provisions of the Congressional the definition of ‘‘covered regulatory ■ i. Adding entries for ‘‘Copper Bluff action’’ in section 2–202 of the Review Act (CRA) or section 305 of CERCLA may alter the effective date of Mine’’ and ‘‘Hunters Point Naval Executive Order. This action is not Shipyard’’ in alphabetical order; and subject to Executive Order 13045 this regulation. Under 5 U.S.C. because this action itself is procedural 801(b)(1), a rule shall not take effect, or ■ ii. Removing the entry for ‘‘Treasure in nature (adds sites to a list) and does continue in effect, if Congress enacts Island Naval Station-Hun Pt An’’; and not, in and of itself, provide protection (and the President signs) a joint ■ b. Adding entries for ‘‘Cliff Drive from environmental health and safety resolution of disapproval, described Groundwater Contamination’’, risks. Separate future regulatory actions under section 802. Another statutory ‘‘McLouth Steel Corp’’, ‘‘Sporlan Valve are required for mitigation of provision that may affect this rule is Plant #1’’, ‘‘Magna Metals’’, environmental health and safety risks. CERCLA section 305, which provides ‘‘PROTECO’’, and ‘‘Shaffer Equipment/ for a legislative veto of regulations Arbuckle Creek Area’’ in alphabetical I. Executive Order 13211: Actions That promulgated under CERCLA. Although order by state. Significantly Affect Energy Supply, INS v. Chadha, 462 U.S. 919,103 S. Ct. The additions read as follows: Distribution, or Use 2764 (1983), and Bd. of Regents of the This action is not subject to Executive University of Washington v. EPA, 86 Appendix B to Part 300—National Order 13211, because it is not a F.3d 1214,1222 (D.C. Cir. 1996), cast the Priorities List

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TABLE 1—GENERAL SUPERFUND SECTION

State Site name City/county Notes (a)

******* CA ...... Copper Bluff Mine ...... Hoopa.

******* CA ...... Hunters Point Naval Shipyard ...... San Francisco ...... P

******* IN ...... Cliff Drive Groundwater Contamination ...... Logansport.

******* MI ...... McLouth Steel Corp ...... Trenton.

******* MO ...... Sporlan Valve Plant #1 ...... Washington.

******* NY ...... Magna Metals ...... Cortlandt Manor.

******* PR ...... PROTECO ...... Pen˜uelas.

******* WV ...... Shaffer Equipment/Arbuckle Creek Area ...... Minden.

******* (a) A = Based on issuance of health advisory by Agency for Toxic Substances and Disease Registry (if scored, HRS score need not be greater than or equal to 28.50).

* * * * * the https://www.regulations.gov of Management and Budget (OMB) P = Sites with partial deletion(s). website. Although listed in the index, Memorandum M–15–19, Improving [FR Doc. 2019–09924 Filed 5–14–19; 8:45 am] some information is not publicly Government Efficiency and Saving BILLING CODE 6560–50–P available, e.g., CBI or other information Taxpayer Dollars Through Electronic whose disclosure is restricted by statute. Invoicing. By changing the subject Certain other material, such as clause to require electronic invoicing, ENVIRONMENTAL PROTECTION copyrighted material, is not placed on the EPA will reap benefits of efficiency AGENCY the internet and will be publicly and cost that have become ubiquitous in available only in hard copy form. modern commerce, and be in 40 CFR Part 1552 Publicly available docket materials are compliance with Memorandum M–15– [EPA–HQ–OMS–2018–0742; FRL 9992–99– available electronically through http:// 19. On December 20, 2018 (83 FR OMS] www.regulations.gov. 65328) EPA sought comments on the FOR FURTHER INFORMATION CONTACT: proposed rule and received no Environmental Protection Agency Thomas Valentino, Policy, Training, and comments. Acquisition Regulation (EPAAR) Oversight Division, Office of II. Final Rule Clause Update for Submission of Acquisition Solutions (3802R), Invoices Environmental Protection Agency, 1200 The final rule amends EPAAR Part Pennsylvania Ave. NW, Washington, DC 1552, Solicitation Provisions and AGENCY: Environmental Protection 20460; telephone number: 202–564– Contract Clauses, by revising EPAAR Agency (EPA). 4522; email address: valentino.thomas@ § 1552.232–70, Submission of Invoices. ACTION: Final rule. epa.gov. 1. EPAAR § 1552.232–70, Submission SUPPLEMENTARY INFORMATION: of Invoices clause is revised to provide SUMMARY: The Environmental Protection new electronic invoicing requirements Agency (EPA) is revising its Submission I. Background as the EPA begins using the IPP of Invoices clause to add electronic The EPA is revising clause 1552.232– electronic-invoicing program in 2019. invoicing requirements. In 2019 the EPA 70, Submission of Invoices, to add The clause is revised by replacing the will begin using the Invoice Processing electronic invoicing requirements. In preamble and paragraphs (a) and (b), Platform (IPP), which is a secure web- 2019 the EPA will begin using the with new paragraphs (a) and (b), that based service provided by the U.S. Invoice Processing Platform (IPP), update the old paper invoicing Treasury that efficiently manages which is a secure web-based service instructions to electronic invoicing. government invoicing. provided by the U.S. Treasury that Paragraph (g)(5) is revised to remove DATES: This final rule is effective on efficiently manages government references to suspended costs, which May 15, 2019. invoicing. Currently the EPA requires are not authorized under IPP. The ‘‘Note ADDRESSES: The EPA has established a contractors and vendors to submit paper to paragraph (i)’’ and ‘‘Note to paragraph docket for this action under Docket ID invoices, which are inefficient and (j)’’ are also being revised to remove No. EPA–HQ–OARM–2018–0742. All costly. The EPA will also begin using references to suspended costs. Finally, documents in the docket are listed on IPP to satisfy the requirements of Office paragraph (k) and ‘‘Note to paragraph

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(k)’’ are being removed because D. Unfunded Mandates Reform Act to any rule that: (1) Is determined to be suspended costs are not allowed under Title II of the Unfunded Mandates economically significant as defined IPP, which re-letters the last three Reform Act of 1995 (UMRA), Public under Executive Order 12886, and (2) paragraphs, re-designating paragraphs Law 104–4, establishes requirements for concerns an environmental health or (l) through (n) as paragraphs (k) through Federal agencies to assess the effects of safety risk that may have a (m), respectively. their regulatory actions on State, Local, proportionate effect on children. This III. Statutory and Executive Order and Tribal governments and the private rule is not subject to Executive Order Reviews sector. 13045 because it is not an economically This rule contains no Federal significant rule as defined by Executive A. Executive Order 12866: Regulatory mandates (under the regulatory Order 12866, and because it does not Planning and Review provisions of the Title II of the UMRA) involve decisions on environmental This action is not a ‘‘significant for State, Local, and Tribal governments health or safety risks. regulatory action’’ under the terms of or the private sector. The rule imposes H. Executive Order 13211: Actions That Executive Order (E.O.) 12866 (58 FR no enforceable duty on any State, Local Significantly Affect Energy Supply, 51735, October 4, 1993) and therefore, or Tribal governments or the private Distribution, or Use not subject to review under the E.O. sector. Thus, the rule is not subject to the requirements of Sections 202 and This final rule is not subject to B. Paperwork Reduction Act 205 of the UMRA. Executive Order 13211, ‘‘Actions This action does not impose an Concerning Regulations That E. Executive Order 13132: Federalism information collection burden under the Significantly Affect Energy Supply, provisions of the Paperwork Reduction Executive Order 13132, entitled Distribution of Use’’ (66 FR 28335 (May Act, 44 U.S.C. 3501 et seq. No ‘‘Federalism’’ (64 FR 43255, August 10, 22, 2001), because it is not a significant information is collected under this 1999), requires EPA to develop an regulatory action under Executive Order action. accountable process to ensure 12866. ‘‘meaningful and timely input by State C. Regulatory Flexibility Act (RFA), as and Local officials in the development I. National Technology Transfer and Amended by the Small Business of regulatory policies that have Advancement Act of 1995 (NTTAA) Regulatory Enforcement Fairness Act of federalism implications.’’ ‘‘Policies that 1996 (SBREFA), 5 U.S.C. 601 et seq. Section 12(d) (15 U.S.C 272 note) of have federalism implications’’ is NTTA, Public Law 104–113, directs The Regulatory Flexibility Act defined in the Executive Order to EPA to use voluntary consensus generally requires an agency to prepare include regulations that have standards in its regulatory activities a regulatory flexibility analysis of any ‘‘substantial direct effects on the States, unless to do so would be inconsistent rule subject to notice and comment on the relationship between the national with applicable law or otherwise rulemaking requirements under the government and the States, or on the impractical. Voluntary consensus Administrative Procedure Act or any distribution of power and standards are technical standards (e.g., other statute; unless the agency certifies responsibilities among the various materials specifications, test methods, that the rule will not have a significant levels of government.’’ sampling procedures and business economic impact on a substantial This rule does not have federalism practices) that are developed or adopted number of small entities. Small entities implications. It will not have substantial by voluntary consensus standards include small businesses, small direct effects on the States, on the bodies. The NTTA directs EPA to organizations, and small governmental relationship between the national provide Congress, through OMB, jurisdictions. government and the States, or on the explanations when the Agency decides For purposes of assessing the impact distribution of power and not to use available and applicable of today’s final rule on small entities, responsibilities among the various voluntary consensus standards. ‘‘small entity’’ is defined as: (1) A small levels of government as specified in business that meets the definition of a Executive Order 13132. This rulemaking does not involve small business found in the Small technical standards. Therefore, EPA is Business Act and codified at 13 CFR F. Executive Order 13175: Consultation not considering the use of any voluntary 121.201; (2) a small governmental and Coordination With Indian Tribal consensus standards. Governments jurisdiction that is a government of a J. Executive Order 12898: Federal city, county, town, school district or Executive Order 13175, entitled Actions To Address Environmental special district with a population of less ‘‘Consultation and Coordination with Justice in Minority Populations and than 50,000; and (3) a small Indian Tribal Governments’’ (65 FR Low-Income Populations organization that is any not-for-profit 67249, November 9, 2000), requires EPA enterprise which is independently to develop an accountable process to Executive Order (E.O.) 12898 (59 FR owned and operated and is not ensure ‘‘meaningful and timely input by 7629 (February 16, 1994) establishes dominant in its field. tribal officials in the development of federal executive policy on After considering the economic regulatory policies that have tribal environmental justice. Its main impacts of this rule on small entities, I implications.’’ This rule does not have provision directs federal agencies, to the certify that this action will not have a tribal implications as specified in greatest extent practicable and significant economic impact on a Executive Order 13175. permitted by law, to make substantial number of small entities. environmental justice part of their This action revises a current EPAAR G. Executive Order 13045: Protection of mission by identifying and addressing, clause and does not impose Children From Environmental Health as appropriate, disproportionately high requirements involving capital and Safety Risks and adverse human health or investment, implementing procedures, Executive Order 13045, entitled environmental effects of their programs, or record keeping. This rule will not ‘‘Protection of Children from policies, and activities on minority have a significant economic impact on Environmental Health and Safety Risks’’ populations and low-income small entities. (62 FR 19885, April 23, 1997), applies populations in the United States.

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EPA has determined that this final company letterhead that contains the equipment, and other direct costs. For rule will not have disproportionately required information.) current costs, each major cost element shall high and adverse human health or (iii) The Contractor’s Government Business include the appropriate supporting schedule environmental effects on minority or Point of Contact (as listed in System for identified in the invoice preparation Award Management (SAM)) will receive instructions. Cumulative charges represent low-income populations because it does enrollment instructions via email from the the net sum of current charges by cost not affect the level of protection IPP. The Contractor must register within 3 to element for the contract period. provided to human health or the 5 days of receipt of such email from IPP. (d) Subcontractor charges. (1) The charges environment. This rulemaking does not (iv) Contractor assistance with enrollment for subcontracts shall be further detailed in involve human health or environmental can be obtained by contacting the IPP a supporting schedule showing the major effects. Production Helpdesk via email at cost elements for each subcontract. [email protected] or (2) On a case-by-case basis, when needed List of Subjects in 40 CFR Part 1552 by telephone at (866) 973–3131. to verify the reasonableness of subcontractor costs, the Contracting Officer may require Environmental protection, (3) If the Contractor is unable to comply with the requirement to use IPP for that the contractor obtain from the Solicitation provisions and contract submitting invoices for payment, the subcontractor cost information in the detail clauses. Contractor shall submit a waiver request in set forth in paragraph (c)(2) of this section. Dated: April 8, 2019. writing to the Contracting Officer. The This information should be obtained through a means which maintains subcontractor Kimberly Y. Patrick, Contractor may submit an invoice using other than IPP only when— confidentiality (for example, via sealed Director, Office of Acquisition Solutions. (i) The Contracting Officer administering envelopes), if the subcontractor expresses Therefore, 40 CFR part 1552 is the contract for payment has determined, in Confidential Business Information (CBI) concerns. amended as set forth below: writing, that electronic submission would be unduly burdensome to the Contractor; and in (e) Period of performance indication. ■ 1. The authority citation for part 1552 such cases, the Contracting Officer shall Invoices or requests for contract financing continues to read as follows: modify the contract to include a copy of the payment must clearly indicate the period of performance for which payment is requested. Authority: 5 U.S.C. 301and 41 U.S.C. 418b. Determination; or (ii) When the Governmentwide commercial Separate invoices or requests for contract purchase card is used as the method of financing payment are required for charges PART 1552—SOLICITATION applicable to the base contract and each PROVISIONS AND CONTRACT payment. (4) The Contractor shall submit any non- option period. CLAUSES (f) Invoice submittal. (1) Notwithstanding electronic payment requests using the the provisions of the clause of this contract method or methods specified in Section G of ■ 2. Revise section 1552.232–70 to read at FAR 52.216–7, Allowable Cost and the contract. Payment, invoices or requests for contract as follows: (5) In addition to the requirements of this financing payment shall be submitted once 1552.232–70 Submission of invoices. clause, the Contractor shall meet the per month unless there has been a requirements of the appropriate payment demonstrated need and Contracting Officer As prescribed in 1532.908, insert the clauses in this contract when submitting following clause: approval for more frequent billings. When payment requests. submitted on a monthly basis, the period Submission of Invoices (MAY 19) (6) Invoices submitted through IPP will be covered by invoices or requests for contractor either rejected, or accepted and paid, in their financing payments shall be the same as the (a) Electronic invoicing and the Invoice entirety, and will not be paid on a partial period for monthly progress reports required Processing Platform (IPP)—(1) Definitions. As basis. under this contract. used in this clause— (b) Invoice preparation. The Contractor (2) If the Contracting Officer allows Contract financing payment and invoice shall prepare its invoice or request for submissions more frequently than monthly, payment are defined in Federal Acquisition contract financing payment in accordance one submittal each month shall have the Regulation (FAR) 32.001. with FAR 32.905 on the prescribed same ending period of performance as the Electronic form means an automated Government forms, or the Contractor may monthly progress report. system that transmits information submit self-designed forms which contain the (3) Where cumulative amounts on the electronically from the initiating system to all required information. Standard Form 1034, monthly progress report differ from the affected systems. Facsimile, email, and Public Voucher for Purchases and Services aggregate amounts claimed in the invoice(s) scanned documents are not acceptable other than Personal, is prescribed for used by or request(s) for contract financing payments electronic forms for submission of payment contractors to show the amount claimed for covering the same period, the contractor shall requests. However, scanned documents are reimbursement. Standard Form 1035, Public provide a reconciliation of the difference as acceptable when they are part of a Voucher for Purchases and Services other part of the payment request. submission of a payment request made using than Personal—Continuation Sheet, is (g) EPA Invoice Preparation Instructions— Invoice Processing Platform or another prescribed for use to furnish the necessary SF 1034. The information which a contractor electronic form authorized by the Contracting supporting detail or additional information is required to submit in its Standard Form Officer. required by the Contracting Officer. 1034 is set forth as follows: Payment request means any request for (c) Invoice content. (1) The Contractor shall (1) U.S. Department, Bureau, or contract financing payment or invoice prepare a contract level invoice or request for establishment and location—Insert the names payment submitted by the Contractor under contract financing payment in accordance and address of the servicing finance office, this contract. with the invoice preparation instructions. If unless the contract specifically provides (2)(i) Except as provided in paragraph (c) contract work is authorized by an individual otherwise. of this clause, the Contractor shall submit task order or delivery order (TO/DO), the (2) Date Voucher Prepared—Insert date on invoices using the electronic invoicing invoice or request for contract financing which the public voucher is prepared and program Invoice Processing Platform (IPP), payment shall also include a summary of the submitted. which is a secure web-based service provided current and cumulative amounts claimed by (3) Contract/Delivery Order Number and by the U.S. Treasury that more efficiently cost element for each TO/DO and for the Date—Insert the number and date of the manages government invoicing. contract total, as well as any supporting data contract and task order or delivery order, if (ii) Under this contract, the following for each TO/DO as identified in the applicable, under which reimbursement is documents are required to be submitted as an instructions. claimed. attachment to the IPP invoice: (This is a fill- (2) The invoice or request for contract (4) Requisition Number and Date—Leave in for acceptable types of required financing payment shall include current and blank. documentation, such as an SF 1034 and cumulative charges by major cost element (5) Voucher Number—Insert the 1035, or an invoice/self-designed form on such as direct labor, overhead, travel, appropriate serial number of the voucher. A

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separate series of consecutive numbers, (2) Voucher Number—Insert the voucher local travel. The manner of breakdown, e.g., beginning with Number 1, shall be used by number as shown on the Standard Form task order/delivery order basis with/without the contractor for each new contract. For an 1034. separate program management, contract adjustment invoice, write ‘‘[invoice number] (3) Schedule Number—Leave blank. period will be specified in the contract #Adj’’ at the voucher number. For a final (4) Sheet Number—Insert the sheet number instructions. invoice, put invoice number F. For a if more than one sheet is used in numerical Note to paragraph (i)—Any costs requiring completion invoice, put invoice number #C. sequence. Use as many sheets as necessary to advance consent by the Contracting Officer (6) Schedule Number; Paid By; Date show the information required. will be considered improper and will be Invoice Received—Leave blank. (5) Number and Date of Order—Insert disallowed, if claimed prior to receipt of (7) Discount Terms—Enter terms of payee’s name and address as in the Standard Contracting Officer consent. Include the total discount, if applicable. Form 1034. cost claimed for the current and cumulative- (8) Payee’s Account Number—This space (6) Articles or Services—Insert the contract to-date periods. After the total amount may be used by the contractor to record the number as in the Standard Form 1034. claimed, provide summary dollar amounts account or job number(s) assigned to the (7) Amount—Insert the latest estimated disallowed on the contract as of the date of contract or may be left blank. cost, fee (fixed, base, or award, as applicable), the invoice. Also include an explanation of (9) Payee’s Name and Address—Show the total contract value, and amount and type of the changes in cumulative costs disallowed name of the contractor exactly as it appears fee payable (as applicable). by addressing each adjustment in terms of: in the contract and its correct address, except (8) A summary of claimed current and Voucher number, date, dollar amount, when an assignment has been made by the cumulative costs and fee by major cost source, and reason for the adjustment. contractor, or the right to receive payment element—Include the rate(s) at which Disallowed costs should be identified in has been restricted, as in the case of an indirect costs are claimed and indicate the unallowable accounts in the contractor’s advance account. When the right to receive base of each by identifying the line of costs accounting system. payment is restricted, the type of information to which each is applied. The rates invoiced (j) Supporting Schedules for Time and to be shown in this space shall be furnished should be as specified in the contract or by Materials Contracts. The following backup by the Contracting Officer. a rate agreement negotiated by EPA’s Cost information is required as an attachment to (10) Shipped From; To; Weight and Rate Negotiation Team. the invoice as shown by category of cost: Government B/L Number—Insert for supply (9) Fee—The fee shall be determined in (1) Direct Labor—Identify the number of contracts. accordance with instructions appearing in hours (by contractor labor category and total) (11) Date of Delivery or Service—Show the the contract. and the total direct labor hours billed for the month, day and year, beginning and ending Note to paragraph (h)—Amounts claimed period of the invoice. dates of incurrence of costs claimed for on vouchers must be based on records (2) Subcontracts—Identify the major cost reimbursement. Adjustments to costs for maintained by the contractor to show by elements for each subcontract. prior periods should identify the period major cost element the amounts claimed for (3) Other Direct Costs—When the cost for applicable to their incurrence, e.g., revised reimbursement for each applicable contract. an individual cost (e.g., photocopying, provisional or final indirect cost rates, award The records must be maintained based on the material and supplies, telephone usage) fee, etc. contractor’s fiscal year and should include exceeds $1,000 per the invoice period, (12) Articles or Services—Insert the reconciliations of any differences between provide a detailed explanation for that cost following: ‘‘For detail, see Standard Form the costs incurred and amounts claimed for category. 1035 total amount claimed transferred from reimbursement. A memorandum record (4) Indirect Cost Rates—Identify by cost Page ll of Standard Form 1035.’’ Insert reconciling the total indirect cost(s) claimed center, the indirect cost rate, the period, and ‘‘COST REIMBURSABLE—PROVISIONAL should also be maintained. the cost base to which it is applied. PAYMENT’’ or ‘‘INDEFINITE QUANTITY/ (i) Supporting Schedules for Cost (5) Contractor Acquired Equipment— INDEFINITE DELIVERY—PROVISIONAL Reimbursement Contracts. The following Identify by item the quantities, unit prices, PAYMENT’’ on the Interim public vouchers. backup information is required as an and total dollars billed. Insert ‘‘COST REIMBURSABLE— attachment to the invoice as shown by (6) Contractor Acquired Software—Identify COMPLETION VOUCHER’’ or ‘‘INDEFINITE category of cost: by item the quantities, unit prices, and total QUANTITY/INDEFINITE DELIVERY— (1) Direct Labor—Identify the number of dollars billed. COMPLETION VOUCHER’’ on the hours (by contractor labor category and total) (7) Travel—When travel costs exceed Completion public voucher. Insert ‘‘COST and the total loaded direct labor hours billed $2,000 per invoice period, identify by trip, REIMBURSABLE—FINAL VOUCHER’’ or for the period in the invoice. the number of travelers, the duration of ‘‘INDEFINITE QUANTITY/INDEFINITE (2) Indirect Cost Rates—Identify by cost travel, the point of origin, destination, DELIVERY—FINAL VOUCHER’’ on the final center, the indirect cost rate, the period, and purpose of trip, transportation by unit price, public voucher. Insert the following the cost base to which it is applied. per diem rates on daily basis and total dollars certification, signed by an authorized official, (3) Subcontracts—Identify the major cost billed. Detailed reporting is not required for on the face of the Standard Form 1034: elements for each subcontract. local travel. The manner of breakdown, e.g., ‘‘I certify that all payments requested are (4) Other Direct Costs—When the cost for task order/delivery order basis with/without for appropriate purposes and in accordance an individual cost (e.g., photocopying, separate program management, contract with the agreements set forth in the material and supplies, telephone usage) period will be specified in the contract contract.’’ exceeds $1,000 per the invoice period, instructions. provide a detailed explanation for that cost lllllllllllllllllllll Note to paragraph (j)—Any costs requiring category. (Name of Official) advance consent by the Contracting Officer (5) Contractor Acquired Equipment (if will be considered improper and will be lllllllllllllllllllll authorized by the contract)—Identify by item disallowed, if claimed prior to receipt of (Title) the quantities, unit prices, and total dollars Contracting Officer consent. Include the total (13) Quantity; Unit Price—Insert for supply billed. cost claimed for the current and cumulative- contracts. (6) Contractor Acquired Software (if to-date periods. After the total amount (14) Amount—Insert the amount claimed authorized by the contract)—Identify by item claimed, provide summary dollar amounts for the period indicated in paragraph (g)(11) the quantities, unit prices, and total dollars disallowed on the contract as of the date of of this clause. billed. the invoice. Also include an explanation of (h) EPA Invoice Preparation Instructions— (7) Travel—When travel costs exceed the changes in cumulative costs disallowed SF 1035. The information which a contractor $2,000 per invoice period, identify by trip, by addressing each adjustment in terms of: is required to submit in its Standard Form the number of travelers, the duration of Voucher number, date, dollar amount, 1035 is set forth as follows: travel, the point of origin, destination, source, and reason for the adjustment. (1) U.S. Department, Bureau, or purpose of trip, transportation by unit price, Disallowed costs should be identified in Establishment—Insert the name and address per diem rates on daily basis and total dollars unallowable accounts in the contractor’s of the servicing finance office. billed. Detailed reporting is not required for accounting system.

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(k) Adjustment vouchers. Adjustment or delivery order (TO/DO), the invoice or or via the FCC’s Electronic Comment vouchers should be submitted if finalized request for contract financing payment shall Filing System (ECFS) website at http:// indirect rates were received but the rates are also include a summary of the current and fjallfoss.fcc.gov/ecfs2/. (Documents will not for the entire period of performance. For cumulative amounts claimed by cost element be available electronically in ASCII, example, the base period of performance is for each TO/DO and for the contract total, as for a calendar year but your indirect rates are well as any supporting data for each TO/DO Microsoft Word, and/or Adobe Acrobat.) by fiscal year. Hence, only part of the base as identified in the instructions. This document is also available for period can be adjusted for the applicable (2) The invoice or request for contract public inspection and copying during final indirect rates. These invoices should be financing payment that employs a fixed rate regular business hours in the FCC annotated with ‘‘adj’’ after the invoice feature shall include current and cumulative Reference Information Center, which is number. charges by contract labor category and by located in Room CY–A257 at FCC (l) Final vouchers. Final Vouchers shall be other major cost elements such as travel, Headquarters, 445 12th Street SW, submitted if finalized rates have been equipment, and other direct costs. For Washington, DC 20554. The Reference received for the entire period of performance. current costs, each cost element shall include Information Center is open to the public For example, the base period of performance the appropriate supporting schedules is for a calendar year but your indirect rates identified in the invoice preparation Monday through Thursday from 8:00 are by fiscal year. You have received instructions. a.m. to 4:30 p.m. and Friday from 8:00 finalized rates for the entire base period that a.m. to 11:30 a.m. The complete text encompass both fiscal years that cover the (End of clause) may be purchased from the base period. In accordance with FAR 52.216– [FR Doc. 2019–09695 Filed 5–14–19; 8:45 am] Commission’s copy contractor, 445 12th 7, these invoices shall be submitted within BILLING CODE 6560–50–P Street SW, Room CY–B402, Washington, 60 days after settlement of final indirect cost DC 20554. Alternative formats are rates. They should be annotated with the word ‘‘Final’’ or ‘‘F’’ after the invoice available for people with disabilities number. Due to system limitations, the FEDERAL COMMUNICATIONS (Braille, large print, electronic files, invoice number cannot be more than 11 COMMISSION audio format), by sending an email to characters to include spaces. [email protected] or calling the (m) Completion vouchers. In accordance 47 CFR Part 73 Commission’s Consumer and with FAR 52.216–7(d)(5), a completion Governmental Affairs Bureau at (202) voucher shall be submitted within 120 days [MB Docket No. 18–23; FCC 19–10] 418–0530 (voice), (202) 418–0432 (or longer if approved in writing by the (TTY). Contracting Officer) after settlement of the Elimination of Obligation To File final annual indirect cost rates for all years Broadcast Mid-Term Report Synopsis of a physically complete contract. The voucher shall reflect the settled amounts and AGENCY: Federal Communications I. Report and Order rates. It shall include settled subcontract Commission. 1. In this Report and Order (Order), amounts and rates. The prime contractor is ACTION: Final rule. we eliminate the requirement in Section responsible for settling subcontractor 73.2080(f)(2) of the Commission’s rules amounts and rates included in the SUMMARY: In this document, the Federal that certain broadcast television and completion invoice. Since EPA’s invoices Communications Commission (FCC or radio stations file the FCC Broadcast must be on a period of performance basis, the Commission) eliminates a requirement Mid-Term Report (Form 397). Earlier contractor shall have a completion invoice of our rules that oblige certain broadcast for each year of the period of performance. this year, we issued a Notice of television and radio stations to file the This voucher must be submitted to the Proposed Rulemaking (NPRM) (83 FR FCC Broadcast Mid-Term Report (Form Contracting Officer for review and approval 12313) proposing to eliminate Form 397). This requirement has become before final payment can be made on the 397, which requires stations to provide redundant now that most of the contract. The Contracting Officer may request equal employment opportunity (EEO) an audit of the completion vouchers before information that the form requests is information that is generally also final payment is made. In addition, once readily accessible online via the available through other sources, approved, the Contracting Officer will Commission’s Online Public Inspection including stations’ online public request the appropriate closeout paperwork File (Public File). The Public File will inspection files.1 No commenter for the contract. For contracts separately be modified to allow stations to indicate invoiced by delivery or task order, provide a opposes elimination of this requirement. whether they are subject to a mid-term schedule showing final total costs claimed by As set forth below, we conclude that review, as this is the only information delivery or task order and in total for the eliminating this largely redundant not otherwise available. It therefore contract. In addition to the completion reporting requirement will further our finds that eliminating this requirement voucher, the contractor must submit the efforts to modernize our media rules Contractor’s Release; Assignee’s Release, if will serve the public interest. and reduce unnecessary requirements applicable; the Contractor’s Assignment of DATES: Effective May 15, 2019. Refunds, Rebates, Credits and other without hindering the Commission’s FOR FURTHER INFORMATION CONTACT: Amounts; the Assignee’s Assignment of For ability to conduct mid-term reviews of Refunds, Rebates, Credits and other additional information, contact Jonathan broadcasters’ EEO practices. Amounts, if applicable; and the Contractor’s Mark, [email protected], of the 2. Section 334(b) of the Affidavit of Waiver of Lien, when required by Media Bureau, Policy Division, (202) Communications Act of 1934, as the contract. 418–3634. Direct press inquiries to amended (the Act), directs the Janice Wise at (202) 418–8165. Alternate I (May 19) Commission to conduct a mid-term SUPPLEMENTARY INFORMATION: This is a review of broadcast stations’ As prescribed in 1532.908, substitute the summary of the Commission’s Report employment practices. Commission staff following paragraphs (c)(1) and (2) for and Order (Order), FCC 19–10, adopted reviews the EEO practices of broadcast paragraphs (c)(1) and (2) if used in a non- February 14, 2019 and released on commercial time and materials type contract: 1 (c)(1) The Contractor shall prepare a February 15, 2019. The full text of this Elimination of Obligation to File Broadcast Mid- document is available electronically via Term Report (Form 397) Under § 73.2080(f)(2); contract level invoice or request for contract Modernization of Media Regulation Initiative, MB financing payment in accordance with the the FCC’s Electronic Document Docket Nos. 18–23 and 17–105, Notice of Proposed invoice preparation instructions. If contract Management System (EDOCS) website Rulemaking, 33 FCC Rcd 2570 (2018) (NPRM) (83 work is authorized by individual task order at http://fjallfoss.fcc.gov/edocs_public/ FR 12313).

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television stations in station stations must certify whether they have transition to the OPIF is now complete,8 employment units with five or more the requisite number of full-time nearly all the information in Form 397 full-time employees,2 and radio stations employees to be subject to a mid-term is easily accessible online. As noted in employment units with eleven or review.5 As discussed below, because above, the number of fulltime more full-time employees, around the this piece of information is not employees working at a station, which midpoint of broadcasters’ eight-year otherwise available, we will implement is the trigger for determining whether a license terms. After completing a mid- a simple mechanism for stations to station is subject to a mid-term review, term review, staff informs licensees of provide it to the Commission via the is the only piece of information any necessary improvements in Online Public Inspection File (OPIF). included in the Form 397 that is not recruitment practices to ensure that they Second, stations must identify, by name currently available in a station’s online are in compliance with the and title, ‘‘a particular official with public file. To address this issue, we Commission’s EEO rules. overall responsibility for equal will modify the OPIF, as described 3. To facilitate mid-term reviews, the employment opportunity at the station.’’ below, to enable broadcasters to provide Commission adopted the current Form This official also must be identified in this information to the Commission in a 397 in 2002.3 Licensees subject to mid- Form 396, Broadcast Equal Employment simple way and allow Commission staff term review must file Form 397 at least Opportunity Program Report, which to quickly identify stations subject to a four months prior to the four-year must be included in a station’s public mid-term review. anniversary of the station’s most recent file. Third, all stations subject to mid- 5. As an initial matter, we adopt our license expiration date. Form 397 term review must attach copies of their tentative conclusion that eliminating consists of three sections and requires two most recent annual EEO public file Form 397 is consistent with Section 334 stations to provide information that, reports to Form 397. Each station must of the Act. NAB and Nexstar, the only with one exception, also is available in also place these reports both in its two commenters to weigh in on our their public inspection files.4 First, public file and on its website, if it has statutory interpretation, agree with our one, on an annual basis. Each of the tentative conclusion. Specifically, 2 A station employment unit is a station or a reports must be retained in the station’s Section 334(a) prohibits revisions to group of commonly owned stations in the same public file until its next license renewal EEO rules ‘‘in effect on September 1, market that share at least one employee. 47 CFR is granted. Given the availability of this 1992 (47 CFR 73.2080) as such 73.2080(e)(2). To alleviate the burden on small entities, the Commission limited obligations to information to both the public and regulations apply to television broadcast establish an EEO program to station employment Commission staff even in the absence of station licensees and permittees’’ and to units with five or more full-time employees. Form 397, the record overwhelmingly the forms ‘‘used by such licensees and 3 Form 397 is available at https:// supports elimination of the obligation to permittees to report pertinent transition.fcc.gov/Forms/Form397/397.pdf. In 2000, 6 employment data to the Commission.’’9 eight years after Congress enacted Section 334, the file the form. Commission adopted Form 397 to assist with the 4. We adopt the NPRM’s proposal to Section 334’s legislative history mid-term review process, among other changes to eliminate the requirement for broadcast identifies those forms as FCC Forms the EEO rules. See Review of the Commission’s television and radio stations to file Form 395–B and 396 and, as noted above, the Broadcast and Cable Equal Employment 397. We agree with commenters that Commission did not adopt Form 397 Opportunity Rules and Policies, Report and Order, 15 FCC Rcd 2329, 2385, para. 136 (2000) (2000 ‘‘eliminating this outdated filing until after the date listed in Section 334. Report and Order) (adopting Form 397, referred to requirement will reduce the burden on Accordingly, based on the statutory as a ‘‘Statement of Compliance,’’ as part of the mid- licensees and the unnecessary waste of language and legislative history, we term review process and explaining that the form administrative and material. resources’’ conclude that Form 397 is not subject to requires licensees to indicate whether they have complied with the Commission’s EEO rules during without undermining our ability to the statutory limitation on revisions the relevant review period). In 2001, the D.C. conduct the statutorily-required mid- found in Section 334(a). In addition, Circuit vacated in its entirety the 2000 rulemaking term reviews of broadcaster compliance although Section 334(b) directed the order for reasons unrelated to Form 397. See MD/ with the EEO rules.7 Because the Commission to revise its regulations to DC/DE Broad. Assoc. v. FCC, 236 F.3d 13 (D.C. Cir. 2001) (finding unconstitutional one of the options require a mid-term review of television the Commission adopted as part of its broadcast public file requirements would be implemented on broadcast licensees’ employment EEO outreach requirements in the 2000 Report and a rolling basis for AM and FM broadcast radio practices, it did not require the licensees with a final deadline of March 1, 2018). Order). In 2002, the Commission readopted Form Commission to adopt Form 397. Thus, 397, with modifications, including renaming the 5 See Form 397, Section I. This information is not form, ‘‘Broadcast Mid-Term Report.’’ See Review of currently available in the OPIF. But see infra paras. we adopt our tentative conclusion that the Commission’s Broadcast and Cable Equal 8–9. Stations that do not have the requisite number Section 334(b) does not bar the Employment Opportunity Rules and Policies, of full-time employees are not required to file Form Commission from eliminating Form 397, Second Report and Order, 17 FCC Rcd 24018, 397 but may do so if they choose. Form 397, Section and we emphasize that the Commission 24064, paras. 153, 164 (2002) (2002 EEO Order) I (explaining that stations without the requisite (adopting a new broadcast EEO Rule in response to number of full-time employees ‘‘do not have to file the D.C. Circuit’s decision in MD/DC/DE Broad. this form with the FCC. However, you have the EEO mid-term review is already available to the Assoc. v. FCC, and readopting, with modifications, option to complete the certification below, return FCC and the public in stations’ online public files, Form 397). the form to the FCC, and place a copy in your and the stations that are subject to review can be 4 All broadcast stations subject to the mid-term station(s) public file.’’). identified without use of the Form. Eliminating the review requirement are also separately required to 6 No commenter who filed in response to the Form 397 filing requirement will have no impact maintain their public inspection files in the Online NPRM opposed elimination of the form. One letter whatsoever on the Commission’s performance of Public Inspection File, a central, Commission- filed prior to release of the NPRM expresses a mid-term reviews or broadcasters’ compliance with hosted database, which can be accessed at https:// concern that eliminating Form 397 ‘‘sends a bad the substantive EEO rules.’’). publicfiles.fcc.gov/. See Standardized and message [that] the agency is abandoning its public 8 As of March 1, 2018, all broadcast stations that Enhanced Disclosure Requirements for Television interest responsibilities.’’ Letter from Yosef are currently required to file Form 397 must now Broadcast Licensee Public Interest Obligations, Getachew, Director of Media and Democracy maintain their public inspection files in the OPIF. Second Report and Order, 27 FCC Rcd 4535 (2012) Program, Common Cause, to Marlene H. Dortch, 9 47 U.S.C. 334(a). Section 334 applies expressly (adopting online public file requirements for Secretary, FCC, MB Docket Nos. 18–23 and 17–105, to ‘‘television broadcast station licensees’’ and commercial and non-commercial TV and Class A at 1 (filed Feb 16, 2018). We emphasize, however, therefore does not mandate the Commission’s TV stations); Expansion of Online Public File that elimination of the requirement to file this form regulation of radio licensees. 47 U.S.C. 334(b); Obligations to Cable and Satellite TV Operators and has no effect on the statutorily-required mid-term NPRM, 33 FCC Rcd at 2573, para. 6. However, no Broadcast and Satellite Radio Licensees, Report and review itself. See infra para. 4. commenter in the record has suggested modifying Order, 31 FCC Rcd 526, 558–59, para. 83 (2016) 7 Nexstar Comments at 1. See also NAB our rules to remove radio licensees from the (determining, among other things, that online Comments at 3 (‘‘The information needed for the broadcast mid-term review.

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will continue to conduct mid-term EEO contact beyond the context of the recorded on an uploaded document in reviews even in the absence of Form Form 397 is unnecessary.’’ Indeed, such a way that is not aggregable, will allow 397.10 a requirement already exists. Given that Commission staff to quickly and easily 6. We also adopt our tentative the Commission already solicits EEO identify stations subject to mid-term conclusion in the NPRM that point of contact information once every review. As acknowledged in the NPRM, eliminating the Form 397 filing eight years through Form 396 and this approach will impose a one-time requirement will reduce unnecessary station licensee contact information on information technology resource cost on regulatory burdens that no longer serve various FCC forms, we agree that the Commission, but will also minimize the public interest. Commenters soliciting this information elsewhere is the annual administrative burden of recognize, prior to establishing the OPIF unnecessary. conducting the statutorily-required mid- in 2012, ‘‘Form 397 was the only vehicle 8. To ensure that Commission staff term review. It also has the attribute of available to the [Commission] by which will still be able to identify which imposing only a de minimis burden on it could readily access the requisite licensees are subject to a mid-term subject stations to answer an additional documentation to complete its review in the absence of Form 397, we question at the time they upload their congressionally mandated task of will require radio stations to answer a annual EEO report. We note that we review.’’ However, now that all question about staffing size in order to anticipate that the necessary broadcast licensees subject to a midterm upload an EEO public file report to the review are also required to have an OPIF. In the NPRM, we identified two information technology work to online public file,11 the need for the possible ways to make this information effectuate this change will be completed physical submission of the Form 397 no available, as proposed by NAB. The well before the next radio midterm 13 longer exists. The information in Form first, NAB’s preferred approach, would review cycle. 397 is duplicative of documentation and ‘‘require all subject stations to indicate 10. In addition to the proposed information already available in a whether they are subject to a mid-term elimination of Form 397, the NPRM also station’s online public inspection file review on their annual EEO public file sought comment on ‘‘the FCC’s track (i.e., the requisite EEO contact report.’’ As the NPRM explained, record on EEO enforcement and how the information and copies of EEO public however, ‘‘this proposal would not agency can make improvements to EEO file reports) or that can easily be made provide information in a format that compliance and enforcement.’’ We available in the OPIF (i.e., whether the easily could be aggregated,’’ and would received responsive comments from a station has the requisite number of full- potentially require Commission staff to group of 33 organizations (collectively time employees). Thus, as commenters manually review thousands of EEO the ‘‘EEO Supporters’’). While these contend, the burdens associated with public file reports in order to determine commenters did not address the NPRM’s filing Form 397, including ‘‘the which stations are subject to a mid-term proposal to eliminate Form 397, in consumption of internal administrative review. Alternatively, NAB suggested response to the NPRM the EEO efforts to prepare and file the form in modifying the OPIF itself to require Supporters expressed concern over the the system or pay the fees associated stations to indicate whether they are degree to which the Commission has with having outside FCC counsel subject to a mid-term review as a addressed ‘‘the core issue’’ of word-of- prepare and/or submit the form online prerequisite to filing their annual EEO mouth recruiting ‘‘conducted by a on behalf of the licensee,’’ far outweigh public file report. The NPRM proposed homogenous, non-diverse staff,’’ or its benefits. that this could be achieved by ‘‘adding ‘‘cronyism,’’ within the broadcast 7. In the NPRM, we sought comment questions regarding staff size to each industry.14 They also recommended that station’s public file that must be on whether, if we adopted our proposal the Commission engage in audit reform to eliminate Form 397, we should answered before the station can upload and locate EEO staff in the Enforcement separately and more frequently solicit its EEO public file report.’’ NAB argues from broadcast licensees EEO point of that this approach would require greater 13 Commission staff resources than its first The next radio renewal cycle begins later this contact information, the second piece of year, and therefore the next mid-term cycle will information collected via Form 397. We proposal, but does not explain why it begin in 2023. See https://www.fcc.gov/media/ find persuasive commenters’ arguments believes this to be the case. No other radio/broadcast-radio-license-renewal. We note that that ‘‘a separate and singular [new] commenter put forth alternative the deadline for filing Form 397 under the current proposals or addressed the concerns renewal cycle has already passed for all television requirement to provide a station specific stations except those in Delaware and raised by the Commission about the first Pennsylvania, which have an April 1, 2019 10 NPRM, 33 FCC Rcd at 2573, para. 7. We proposal suggested by NAB. deadline. These reports should continue to be filed. similarly conclude that Section 334(c) does not 9. We adopt NAB’s second proposal See infra note 50. preclude the Commission from eliminating Form and require radio stations uploading an 14 EEO Supporters Comments, MB Docket Nos. 397. Although subsection (a) prohibits the EEO public file report to the OPIF, as 18–23 and 17–105 at 2; Letter from David Honig, Commission from revising the 1992 EEO rules, President Emeritus and Senior Advisor, subsection (c) permits the Commission ‘‘to make they are required to do annually under Multicultural Media, Telecom and internet Council, nonsubstantive technical or clerical revisions’’ to our rules, to identify whether their staff to Marlene H. Dortch, Secretary, FCC, MB Docket those rules as are ‘‘necessary to reflect changes in size is sufficient to trigger a mid-term Nos. 14–50, 09–182, 07–294, 04–256, 17–289, 98– technology, terminology, or Commission review.12 This information, entered into 204, 16–410, 18–23, and 17–105, at 2 (filed June 1, organization.’’ 47 U.S.C. 334(c). As noted in the 2018) (EEO Supporters Ex Parte). The EEO NPRM, subsection (c), when considered in context, the OPIF itself rather than simply Supporters assert that this practice perpetuates a is most reasonably read as an exception to ‘‘lack of diversity in the industry across subsection (a)’s limitation prohibiting the 12 Specifically, radio licensees will be prompted generations,’’ and urge the Commission to use Commission from revising the 1992 EEO Rules, to answer ‘‘Yes’’ or ‘‘No’’ regarding whether they ‘‘certain racial and gender data’’ to identify stations which do not include the rule requiring submission have eleven or more full-time employees. All who recruit primarily by word of mouth and require of Form 397. See NPRM, 33 FCC Rcd at 2573–74, television stations required to upload an EEO them to submit a Form 395. EEO Supporters para. 7. Because the limitation in (a) does not apply public file report to the OPIF necessarily have Comments, MB Docket Nos. 18–23 and 17–105 at to Form 397, neither does the exception to (a) that sufficient staff sizes to trigger a mid-term review, as 3–4. The EEO Supporters also propose three Congress carved out with subsection (c). the requisite staff size for both obligations with additional EEO reforms, including reevaluating the 11 As explained above, the EEO rules apply to TV, respect to television employment units is five full- Commission’s audit program, publication of an Class A TV, AM, and FM licensees, and online time employees. Thus, the very act of filing the anonymized summary of EEO data, and relocating public file requirements apply to these same classes report will be sufficient to identify these television the EEO staff to the Commission’s Enforcement of licensees. stations. See 47 CFR 73.2080(d); infra note 5. Bureau. Id. at 5–6.

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Bureau.15 Within 90 days of adoption of of the current mid-term review cycle argued for elimination of the this Order, the Commission will seek which ends on April 1, 2019.17 recordkeeping requirement at issue as comment in a Further Notice on the redundant and unnecessary. The Order II. PROCEDURAL MATTERS FCC’s track record on EEO enforcement adopts the NPRM’s proposal to and how the agency can make A. Final Regulatory Flexibility Act eliminate a provision of the improvements to EEO compliance and Analysis Commission’s rules that obligates enforcement.16 12. As required by the Regulatory certain broadcasters to file a Broadcast 11. For the reasons discussed above, Flexibility Act of 1980, as amended Mid-Term Report documenting their we find that § 73.2080(f)(2)’s (RFA),18 an Initial Regulatory Flexibility compliance with the Commission’s EEO requirement that certain broadcast Analysis (IRFA) was incorporated in the requirements, without eliminating the television and radio stations file Form Notice of Proposed Rulemaking (NPRM) mid-term review of employment 397 is unduly burdensome and no in MB Docket 18–23.19 The Commission practices. longer necessary. We amend our rules to sought written public comments on 14. Specifically, the Order eliminates eliminate Form 397 after the completion proposals in the NPRM, including the requirement that broadcast comment on the IRFA. The Commission television stations in station 15 We note that the Commission recently has received no comments on the IRFA. The employment units (SEUs) with five or demonstrated its commitment to EEO enforcement present Final Regulatory Flexibility more full-time employees, and radio by evaluating our audit program and consequently approving the relocation of Commission EEO Analysis (FRFA) conforms to the RFA. stations in SEUs with 11 or more full- enforcement staff and responsibilities to the 13. Need for, and Objectives of, the time employees, file Form 397 four Enforcement Bureau, as the EEO Supporters Report and Order. The Report and Order months prior to the date four years after suggested. Press Release, FCC, Chairman Pai (Order) stems from a Public Notice their most recent license expiration Statement on Proposal to Improve the FCC’s 21 Enforcement of Equal Employment Opportunity issued by the Commission in May 2017, date. This Order reduces an outdated Rules (Jul. 3, 2018), https://www.fcc.gov/document/ launching an initiative to modernize the regulation and unnecessary regulatory chairman-pai-statement-proposal-improve- Commission’s media regulations.20 burdens that can impede competition enforcement-eeo-rules; FCC Equal Employment Numerous parties in that proceeding and innovation in media markets. It also Opportunity Audit and Enforcement Team Deployment, Order, 33 FCC Rcd 7504 (FCC July 24, announces changes to the Commission’s 2018). The reassignment will become effective 17 This rule change will not become effective until Online Public Inspection File database when the appropriate clearance has been obtained after the completion of the current mid-term review (OPIF) in order for Commission staff to and the Commission publishes the Order in the periods for television stations in Delaware and determine which stations are subject to Federal Register. Id. at para. 10. See EEO Pennsylvania. See 47 CFR 73.1020(a)(18)(ii) (setting Supporters Comments, MB Docket Nos. 18–23 and license renewal periods for Delaware and the statutory mid-term review of 22 17–105 at 5–6 (suggesting that ‘‘the Commission Pennsylvania at August 1, 2015). Accordingly, all employment practices. should determine whether EEO enforcement would television licensees in Delaware and Pennsylvania 15. Summary of Significant Issues must file Form 397 in connection with the April 1, more effectively and efficiently be performed by the Raised by Public Comments in Response Enforcement Bureau’’); see also Diversity and 2019 mid-term review deadline (four months prior Competition Supporters Supplemental NPRM to the four year anniversary of the license). We also to the IRFA. No comments were filed in Comments at 80–81 (Proposal 40, Create a New note that we are amending the first sentence of response to the IRFA. Civil Rights Branch of the Enforcement Bureau), 73.2080(f), as proposed in the NPRM, to alleviate 16. Response to Comments by the filed in MB Docket No. 09–182 (April 3, 2012) any confusion or ambiguity that may have resulted (proposing to create a Civil Rights Branch of the from the construction of the prior rule. Our Chief Counsel for Advocacy of the Small Enforcement Bureau that would contain EEO amendments serve to clarify that the Commission Business Administration. Pursuant to enforcement). will conduct mid-term reviews of each broadcast the Small Business Jobs Act of 2010, 16 We note that the EEO Supporters’ request for television station that is part of an employment unit of five or more full-time employees and each radio which amended the RFA, the the Commission to collect and publish an annual Commission is required to respond to anonymized summary of aggregate broadcast station that is part of an employment unit of 11 or licensee employment data is an issue closely related more full-time employees. See infra Appendix A any comments filed by the Chief to issues raised in a separate pending proceeding. (emphasis added). We note that these clarifying Counsel for Advocacy of the SBA and to Likewise, the EEO Supporters’ request for the amendments are consistent with those proposed in Appendix A of the NPRM and that no commenter provide a detailed statement of any Commission to impose particular requirements on change made to the proposed rules as a stations that recruit primarily by word of mouth has opposed them. NPRM, 33 FCC Rcd at 2578. 23 also relies on publishing this data, a matter that These modifications serve only to direct readers to result of those comments. The Chief remains unresolved and pending in a separate requirements already present in the rule. See 47 Counsel did not file any comments in proceeding. See Review of the Commission’s CFR 73.2080(f) (‘‘The following provisions apply to response to this proceeding. Broadcast and Cable Equal Employment employment activity concerning full-time positions Opportunity Rules and Policies, Third Report and at each broadcast station employment unit . . . 17. Description and Estimate of the Order and Fourth Notice of Proposed Rulemaking, employing five or more persons in full-time Number of Small Entities to Which 19 FCC Rcd 9973 (2004) (adopting revised FCC positions, except where noted’’) (emphasis added); see also FCC Form 397, Filing Instructions, at 2; Rules Will Apply. The RFA directs Form 395 (Annual Employment Report) for agencies to provide a description of and, broadcast stations and MVPDs and seeking Section I. comment on the Commission’s policies regarding 18 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601– where feasible, an estimate of the public access to obtain data contained in the 612, has been amended by the Small Business number of small entities that will be forms)); see also EEO Supporters Comments, at 3– Regulatory Enforcement Fairness Act of 1996 affected by the rules adopted.24 The (SBREFA), Pub. L. 104–121, Title II, 110 Stat. 857 4 (suggesting that stations that recruit primarily by RFA generally defines the term ‘‘small word of mouth should be required to submit in (1996). The SBREFA was enacted as Title II of the camera a Form 395). We also note that we received Contract With America Advancement Act of 1996 entity’’ as having the same meaning as comments from the Leadership Conference on Civil (CWAAA). the terms ‘‘small business,’’ ‘‘small and Human Rights (Leadership Conference) that 19 Elimination of Obligation to File Broadcast organization,’’ and ‘‘small governmental echoed the EEO Supporters’ concerns in this Mid-Term Report (Form 397) Under § 73.2080(f)(2); jurisdiction’’ 25 In addition, the term docket. The Leadership Conference further argues Modernization of Media Regulation Initiative, MB that, before eliminating Form 397, the Commission Docket Nos. 18–23 and 17–105, Notice of Proposed ‘‘small business’’ has the same meaning should collect aggregate industry employment data Rulemaking, 33 FCC Rcd 2570, para. 1 (2018) as the term ‘‘small business concern’’ on Form 395–B and improve the usability of all (NPRM). EEO data in our online databases. Leadership 20 Commission Launches Modernization of Media 21 47 CFR 73.2080(f)(2). Conference on Civil and Human Rights Comments, Regulation Initiative, MB Docket No. 17–105, Public 22 MB Docket No. 17–105, at 1–3 (June 2, 2018). Given Notice, FCC 17–58 (MB May 18, 2017) (initiating a See Order at para. 9, n. 12. our conclusion above that Form 397 has become review of rules applicable to media entities to 23 5 U.S.C. 604(a)(3). unnecessary and no longer serves a useful purpose, eliminate or modify regulations that are outdated, 24 Id. we do not agree with this contention. unnecessary or unduly burdensome). 25 5 U.S.C. 601(6).

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under the Small Business Act.26 A revenues of $38.5 million or less, Census data for 2012 shows that 2,849 ‘‘small business concern’’ is one which: according to Commission staff review of firms in this category operated in that (1) Is independently owned and the BIA Kelsey Inc. Media Access Pro year.38 Of this number, 2,806 firms had operated; (2) is not dominant in its field Television Database (BIA) on October 1, annual receipts of less than $25,000,000, of operation; and (3) satisfies any 2018. Such entities, therefore, qualify as and 43 firms had annual receipts of additional criteria established by the small entities under the SBA definition. $25,000,000 or more.39 Therefore, based SBA.27 The final rules adopted herein The Commission has estimated the on the SBA’s size standard, the majority affect small television and radio number of licensed noncommercial of such entities are small entities. broadcast stations. A description of educational (NCE) television stations to 23. Apart from the U.S. Census, the these small entities, as well as an be 412.33 The Commission, however, Commission has estimated the number estimate of the number of such small does not compile and does not have of licensed commercial AM radio entities, is provided below. access to information on the revenue of stations to be 4,626 stations 40 and the 18. Television Broadcasting. This NCE stations that would permit it to number of commercial FM radio Economic Census category ‘‘comprises determine how many such stations stations to be 6,737, for a total number establishments primarily engaged in would qualify as small entities. of 11,363.41 Of this total, 11,362 stations broadcasting images together with 20. We note, however, that in had revenues of $38.5 million or less, sound.’’ 28 These establishments operate assessing whether a business concern according to Commission staff review of television broadcast studios and qualifies as ‘‘small’’ under the above the BIA Kelsey Inc. Media Access Pro facilities for the programming and definition, business (control) Television Database (BIA) on October 1, transmission of programs to the affiliations 34 must be included. Our 2018. In addition, the Commission has public.29 These establishments also estimate, therefore likely overstates the estimated the number of noncommercial produce or transmit visual programming number of small entities that might be educational FM radio stations to be to affiliated broadcast television affected by our action, because the 4,130.42 NCE stations are non-profit, and stations, which in turn broadcast the revenue figure on which it is based does therefore considered to be small programs to the public on a not include or aggregate revenues from entities.43 Therefore, we estimate that predetermined schedule. Programming affiliated companies. In addition, the majority of radio broadcast stations may originate in their own studio, from another element of the definition of are small entities. an affiliated network, or from external ‘‘small business’’ requires that an entity 24. Description of Reporting, Record sources. The SBA has created the not be dominant in its field of operation. Keeping, and Other Compliance following small business size standard We are unable at this time to define or Requirements for Small Entities. In this for such businesses: Those having $38.5 quantify the criteria that would section, we identify the reporting, million or less in annual receipts.30 The establish whether a specific television recordkeeping, and other compliance 2012 Economic Census reports that 751 broadcast station is dominant in its field requirements in the Order and consider firms in this category operated in that of operation. Accordingly, the estimate whether small entities are affected year. Of that number, 656 had annual of small businesses to which the disproportionately by any such receipts of less than $25,000,000, and 95 proposed rules would apply does not requirements. 25. Reporting Requirements. The had annual receipts of $25,000,000 or exclude any television station from the Order does adopt new reporting more.31 Based on this data, we estimate definition of a small business on this requirements.44 It requires radio stations that the majority of commercial basis and therefore could be over- to indicate whether they have the television broadcasters are small entities inclusive. 21. There are also 1,911 LPTV stations requisite number of full-time employees under the applicable SBA size standard. to be subject to a mid-term review. and 389 Class A stations.35 Given the 19. In addition, the Commission has 26. Recordkeeping Requirements. The nature of these services, we will estimated the number of licensed Order does not adopt new presume that all of these entities qualify commercial television stations to be recordkeeping requirements. 32 1,349. Of this total, 1,277 stations had as small entities under the above SBA 27. Other Compliance Requirements. small business size standard. The Order does not adopt new 26 5 U.S.C. 601(3) (incorporating by reference the 22. Radio Stations. This economic compliance requirements. definition of ‘‘small-business concern’’ in the Small Census category ‘‘comprises 28. Steps Taken to Minimize Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C. establishments primarily engaged in 601(3), the statutory definition of a small business Significant Economic Impact on Small applies ‘‘unless an agency, after consultation with broadcasting aural programs by radio to Entities, and Significant Alternatives 36 the Office of Advocacy of the Small Business the public.’’ The SBA has created the Considered. The RFA requires an Administration and after opportunity for public following small business size standard agency to describe any significant comment, establishes one or more definitions of for this category: Those having $38.5 such term which are appropriate to the activities of alternatives that it has considered in 37 the agency and publishes such definition(s) in the million or less in annual receipts. reaching its approach, which may Federal Register.’’ include the following four alternatives 27 15 U.S.C. 632. Station Totals), https://www.fcc.gov/document/ (among others): (1) The establishment of 28 U.S. Census Bureau, 2012 North American broadcast-station-totals-september-30–2018. Industry Classification System (NAICS) Definitions, 33 Id. 38 ‘‘515120 Television Broadcasting,’’ http:// 34 ‘‘[Business concerns] are affiliates of each other U.S. Census Bureau, Table No. EC0751SSSZ4, www.census.gov./cgi-bin/sssd/naics/naicsrch. when one concern controls or has the power to Information: Subject Series—Establishment and 29 Id. control the other or a third party or parties controls Firm Size: Receipts Size of Firms for the United States: 2012 (515112), http://factfinder2.census.gov/ 30 13 CFR 121.201; 2012 NAICS Code 515120. or has the power to control both.’’ 13 CFR faces/tableservices/jsf/pages/ 31 21.103(a)(1). U.S. Census Bureau, Table No. EC1251SSSZ4, productview.xhtml?pid=ECN_2007_US_ 35 Broadcast Station Totals supra note 14. Information: Subject Series—Establishment and 51SSSZ4&prodType=table. Firm Size: Receipts Size of Firms for the United 36 U.S. Census Bureau, 2012 NAICS Definitions, 39 Id. States: 2012 (515120 Television Broadcasting), ‘‘515112 Radio Stations,’’ at http://www.census.gov/ 40 https://factfinder.census.gov/faces/tableservices/jsf/ cgi-bin/sssd/naics/naicsrch. This category Broadcast Station Totals supra note 14. pages/productview.xhtml?pid=ECN_2012_US_ description continues, ‘‘Programming may originate 41 Id. 51SSSZ4&prodType=table. in their own studio, from an affiliated network, or 42 Id. 32 FCC News Release, Broadcast Station Totals as from external sources.’’ 43 5 U.S.C. 601(4), (6). of September 30, 2018 (rel. Oct. 3, 2018) (Broadcast 37 13 CFR 121.201; NAICS code 515112. 44 See Order at para. 9, n. 12.

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differing compliance or reporting We have described impacts that might Federal Communications Commission. requirements or timetables that take into affect small businesses, which includes Katura Jackson, account the resources available to small most businesses with fewer than 25 Federal Register Liaison Officer, Office of the entities; (2) the clarification, employees, in the FRFA. Secretary. consolidation, or simplification of Final Rules compliance or reporting requirements C. Congressional Review Act under the rule for small entities; (3) the For the reasons discussed in the 31. The Commission will send a copy use of performance, rather than design, preamble, the Federal Communications of this Report and Order in a report to standards; and (4) an exemption from Commission amends 47 CFR part 73 as coverage of the rule, or any part thereof, be sent to Congress and the Government follows: for small entities.45 Accountability Office pursuant to the 29. The Order eliminates the Congressional Review Act, see 5 U.S.C. PART 73—RADIO BROADCAST obligation imposed on certain 801(a)(1)(A). SERVICES broadcasters to file a Broadcast Mid- III. Ordering Clauses Term Report on employment practices. ■ 1. The authority citation for part 73 Eliminating this requirement is 32. Accordingly, It is ordered that, continues to read as follows: intended to modernize the pursuant to the authority found in Authority: 47 U.S.C. 154, 155, 301, 303, Commission’s regulations and reduce sections 1, 4(i), 4(j) and 334 of the 307, 309, 310, 334, 336, and 339. costs and recordkeeping burdens for Communications Act of 1934, as ■ affected entities, including small 2. Amend § 73.2080 by revising amended, 47 U.S.C. 151, 154(i), 154(j), paragraph (f)(2) to read as follows: entities. Under the prior rule, affected and 334 this Report and Order IS entities were required to expend time HEREBY ADOPTED. § 73.2080 Equal Employment and resources gathering and filing Opportunities (EEO). 33. It is further ordered that this consolidated information that is largely * * * * * Report and Order SHALL BECOME already otherwise supplied to the (f) * * * Commission. The Order will require EFFECTIVE on May 1, 2019, except for (2) The Commission will conduct a radio stations uploading an EEO public those provisions which contain non- mid-term review of the employment file report to answer one ‘‘either/or’’ substantive modifications to existing practices of each broadcast television question about staffing in order to information collection requirements that station that is part of an employment determine their eligibility for the require approval by the Office of unit of five or more full-time employees statutorily mandated mid-term review of Management and Budget (OMB) under and each radio station that is part of an broadcast equal employment practices. the Paperwork Reduction Act. The non- employment unit of eleven or more full- In the aggregate, replacing Form 397 substantive modifications WILL time employees, four years following with this requirement to provide BECOME EFFECTIVE upon the effective the station’s most recent license additional information in the OPIF date announced when the Commission expiration date as specified in constitutes a reduction in burdens, and publishes a notice in the Federal § 73.1020. If a broadcast licensee is as minimal a burden as possible for Register announcing such OMB acquires a station pursuant to FCC Form all entities, including small entities. approval and the effective date. 314 or FCC Form 315 during the period Thus, we anticipate that affected small that is to form the basis for the mid-term entities only stand to benefit from these 34. It is further ordered that the review, that review will cover the revisions. Commission’s Consumer and licensee’s EEO recruitment activity Governmental Affairs Bureau, Reference B. Paperwork Reduction Analysis during the period starting with the date Information Center, SHALL SEND a it acquired the station. 30. This document contains proposed copy of this Report and Order, including new or revised information collection the Final Regulatory Flexibility * * * * * [FR Doc. 2019–09626 Filed 5–14–19; 8:45 am] requirements subject to the Paperwork Analysis, to the Chief Counsel for Reduction Act of 1995, Public Law 104– Advocacy of the Small Business BILLING CODE 6712–01–P 13 (44 U.S.C. 3501–3520). The Administration. requirements will be submitted to the Office of Management and Budget 35. It is further ordered that the DEPARTMENT OF COMMERCE (OMB) for review under Section 3507(d) Commission SHALL SEND a copy of the of the PRA. OMB, the general public, Report and Order in a report to Congress National Oceanic and Atmospheric and other Federal agencies will be and the Government Accountability Administration invited to comment on the information Office pursuant to the Congressional collection requirements contained in Review Act (CRA), see 5 U.S.C. 50 CFR Part 648 this proceeding. The Commission will 801(a)(1)(A). [Docket No. 190207082–9433–02] publish a separate document in the 36. It is further ordered that, should RIN 0648–XG800 Federal Register at a later date seeking no petitions for reconsideration or these comments. In addition, we note petitions for judicial review be timely Fisheries of the Northeastern United that, pursuant to the Small Business filed, MB Docket No. 18–23 shall be Paperwork Relief Act of 2002, Public States; Spiny Dogfish Fishery; 2019 TERMINATED, and its docket closed. Law 107–198, see 44 U.S.C. 3506(c)(4), and Projected 2020–2021 Specifications the Commission previously sought List of Subjects in 47 CFR Part 73 specific comment on how it might AGENCY: National Marine Fisheries further reduce the information Equal employment opportunity, Service (NMFS), National Oceanic and collection burden for small business Radio, Reporting and recordkeeping Atmospheric Administration (NOAA), concerns with fewer than 25 employees. requirements, Television. Commerce. ACTION: Final rule. 45 5 U.S.C. 603(c)(1)–(4).

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SUMMARY: NMFS issues final FOR FURTHER INFORMATION CONTACT: projected specifications for 2020 and specifications for the 2019 spiny dogfish Cynthia Ferrio, Fishery Management 2021, as recommended by the Councils. fishery, and projected specifications for Specialist, (978) 281–9180. The proposed rule for this action fishing years 2020 and 2021. The SUPPLEMENTARY INFORMATION: published in the Federal Register on specifications are necessary to establish March 29, 2019 (84 FR 11923), and allowable harvest levels and other Background comments were accepted through April management measures to prevent overfishing while allowing optimum The Atlantic spiny dogfish fishery is 15, 2019. Additional background yield, consistent with the Magnuson- jointly managed in Federal waters by information regarding the development Stevens Fishery Conservation and the New England and Mid-Atlantic of these specifications was provided in Management Act and the Spiny Dogfish Fishery Management Councils under the the proposed rule and is not repeated Fishery Management Plan. This rule is Spiny Dogfish Fishery Management here. also intended to inform the public of Plan (FMP), with the Mid-Atlantic Final Specifications these specifications for the 2019 fishing Council serving as the administrative year and projected specifications for lead. The Atlantic States Marine This action implements the final 2019 2020 and 2021. Fisheries Commission manages the and projected 2020–2021 spiny dogfish DATES: Effective May 15, 2019 through fishery in state waters from Maine to specifications (Table 1) as described in April 30, 2020. North Carolina through an interstate the March 29, 2019, proposed rule. ADDRESSES: Copies of these fishery management plan. Regulations These specifications substantially specifications, including the implementing the spiny dogfish FMP reduce the coastwide commercial quota Environmental Assessment (EA), appear at 50 CFR part 648, subparts A in 2019 to ensure overfishing does not Regulatory Flexibility Act Analyses, and and L, and require the specification of occur. Quota increases are projected for other supporting documents for the an annual catch limit (ACL), annual 2020 and 2021 as the stock biomass is action, are available upon request from catch target (ACT), and the total expected to increase and the risk of Dr. Christopher M. Moore, Executive allowable landings (TAL). These limits overfishing declines. The lower catch Director, Mid-Atlantic Fishery and other management measures may be limits are not expected to have a Management Council, Suite 201, 800 N. set for up to five fishing years at a time, substantial impact on industry, as the State Street, Dover, DE 19901. These with each fishing year running from reduced coastwide quotas remain higher documents are also accessible via the May 1 through April 30. This action than total annual landings in recent internet at http://www.mafmc.org/ implements spiny dogfish specifications dogfish. for the 2019 fishing year, and announces years.

TABLE 1—SUMMARY OF FINAL 2019, AND PROJECTED 2020 AND 2021 SPINY DOGFISH FISHERY SPECIFICATIONS

2019 2020 2021 Metric tons Pounds Metric tons Pounds Metric tons Pounds

Overfishing Limit ...... 21,549 47,507,413 N/A N/A N/A N/A Acceptable Biological Catch...... 12,914 28,470,497 14,126 31,142,499 16,043 35,368,761 ACL = ACT ...... 12,865 28,362,470 14,077 31,034,473 15,994 35,260,734 TAL ...... 9,390 20,701,000 10,602 23,373,409 12,519 27,599,671 Commercial Quota...... 9,309 20,522,832 10,521 23,194,835 12,438 27,421,096 Percent Change in Quota from Previous Year ...... ¥46 ¥46 +13 +13 +18 +18

All other fishery management proposed specifications were made as a Response 2: This action manages the measures, including the 6,000-lb (2,722- result of these comments. spiny dogfish fishery in terms of the kg) Federal trip limit, remain Comment 1: One commenter target species’ stock health and unchanged. Changes to the trip limit requested that the spiny dogfish quota availability. At this time, the FMP does may be pursued in a future, separate be reduced by 50 percent to prevent not account for predation effects by rulemaking action. By providing overfishing, claimed that widespread spiny dogfish on other species. projected quotas for 2019 and 2020, corruption and commercial profiteering Comment 3: The commenter NMFS hopes to assist fishery was taking place across all fisheries, and supported this action and the quota participants in planning ahead. The asked that all trawl gear be banned. No reduction, but was also concerned with Councils will review these rationale or evidence was presented to inaccurate data from trawl fisheries, and specifications annually, and NMFS will support the commenter’s claims. effects on the recreational spiny dogfish provide notice prior to each fishing year Response 1: This action does reduce fishery. to finalize specifications and related the commercial spiny dogfish quota by Response 3: These specifications were measures. 46 percent to prevent overfishing, which developed using the best scientific is almost the 50 percent requested by information available, which includes Comments and Responses the commenter. Banning trawl gear is fishery independent trawl surveys. beyond the scope of outcomes The public comment period for the These surveys are conducted by the contemplated in specifications. proposed rule ended on April 15, 2019. Northeast Fisheries Science Center and Five comments were received from the Comment 2: Another commenter others, and are not solely dependent on alleged that the spiny dogfish quota trawl reporting data from within the public on this rule during the 15-day should not be reduced because they fishery. Also, there are no Federal comment period. No changes to the prey on valuable groundfish. regulations governing the spiny dogfish

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recreational fishery; these specifications The Assistant Administrator for further harm the resource, and subject it apply to the commercial fishery only. Fisheries, NOAA, finds good cause to a greater risk of overfishing. For more information on recreational under 5 U.S.C. 553(d)(3) to waive the Finally, regulated parties do not spiny dogfish regulations, contact the 30-day delay of effectiveness period for require any additional time to come into Atlantic States Marine Fisheries this rule, to ensure that the final compliance with this rule, and thus, a Commission or your local state agency. specifications are in place as close as 30-day delay in effectiveness does not Comment 4: One commenter practicable to the start of the 2019 spiny provide any benefit. Unlike actions that supported this action, but did not dogfish fishing year, which began on require an adjustment period to comply believe that immediate action is May 1, 2019. This action implements with new rules, participants in the required. They agreed that quotas the final specifications (i.e., annual spiny dogfish fishery will not be should be reduced in future years to catch limits) for the spiny dogfish required to purchase new equipment or prevent overfishing (perhaps by using fishery for the 2019 fishing year. A otherwise expend time or money to limited protected areas), but for now, delay in effectiveness well beyond the comply with these management the stock is stable, and dogfish eat other start of the fishing year would be measures. Fishery stakeholders have groundfish species so the population contrary to the public interest, as it also been involved in the development should be controlled. could create confusion in the of this action and are anticipating this Response 4: This action reduces the commercial spiny dogfish industry. rule. Therefore, there would be no dogfish quota to prevent overfishing Additionally, it could compromise the benefit to delaying the implementation based on the best scientific information effectiveness of the lower catch limits in of these specifications. available. Although the stock is not preventing overfishing while still For these reasons, a 30-day delay in currently overfished or experiencing allowing sustainable yield. effectiveness would be contrary to the overfishing, biomass has been declining, This rule is being issued at the earliest public interest, and is therefore waived. and the quota reductions are a result of possible date. Preparation of the As a result, there is good cause to the application of the Mid-Atlantic proposed rule was dependent on the implement these specifications on May Council’s Risk Policy to prevent submission of the EA, in support of the 15, 2019. specifications, developed by the Mid- overfishing, consistent with National Final Regulatory Flexibility Analysis Standard 2 and the Magnuson-Stevens Atlantic Council. Following submission, Act. As stated earlier, the FMP does not documentation in support of the The final regulatory flexibility account for predation effects of spiny Council’s recommended specifications analysis (FRFA) included in this final dogfish on other species. is required for NMFS to provide the rule was prepared pursuant to 5 U.S.C. Comment 5: This commenter public with information from the 604(a), and incorporates the initial supported this action’s quota reductions environmental and economic analyses, regulatory flexibility analysis (IRFA) for spiny dogfish to preserve future as required in rulemaking, and to and a summary of analyses completed to sustainability in the fishery. They also evaluate the consistency of the support the action. A public copy of the suggested that a sex-specific spiny Council’s recommendation with the environmental assessment/IRFA is dogfish fishery be considered to protect Magnuson-Stevens Act and other available from the Mid-Atlantic Council against harvest of pregnant females. applicable law. A complete draft of the (see ADDRESSES). The preamble to the Response 5: NMFS agrees that these specifications document and proposed rule included a detailed specifications will better maintain accompanying EA was received in late summary of the analyses contained in sustainability in the spiny dogfish November 2018. However, the recent the IRFA, and that discussion is not fishery. Consideration of a sex-specific lapse in federal appropriations repeated here. prevented any work on this action from fishery and management measures was A Summary of the Significant Issues not discussed in this action and would December 22, 2018, through January 25, 2019, and delayed approval of the final Raised by the Public in Response to the need to be pursued separately by the IRFA, a Summary of the Agency’s Councils in the future. EA. As such, the final specifications document and EA was not completed Assessment of Such Issues, and a Changes From the Proposed Rule and approved by NMFS until early Statement of Any Changes Made in the Final Rule as a Result of Such There are no changes from the March 2019. The proposed rule for this Comments proposed rule. action published on March 29, 2019, with a 15-day comment period ending NMFS did not receive any comments Classification April 15, 2019. A 30-day delay in in response to the IRFA or regulatory Pursuant to section 304(b)(1)(A) of the effectiveness would needlessly flexibility analysis (RFA) process. Refer Magnuson-Stevens Act, the NMFS postpone implementation of the 2019 to the ‘‘Comments and Responses’’ Assistant Administrator has determined specifications beyond the start of the section of this rule’s preamble for more that this final rule is consistent with the fishing year on May 1, which is contrary detail on the public comments that were Spiny Dogfish FMP, other provisions of to the public interest. received. No changes to the proposed the Magnuson-Stevens Act, and other Furthermore, the lower catch limits rule were made as a result of public applicable law. specified in this action should be comment. This final rule is exempt from review implemented as soon as possible to under Executive Order 12866 because minimize the potential for overfishing. Description and Estimate of Number of this action contains no implementing Although the specifications from 2018 Small Entities to Which the Rule Would regulations. are carried into 2019 until new catch Apply This final rule does not duplicate, limits are implemented, the Councils This final rule affects small entities conflict, or overlap with any existing have recommended a substantial engaged in commercial fishing Federal rules. reduction in commercial quota based on operations in the spiny dogfish fishery. This action does not contain a the most recent stock assessment For the purposes of the RFA analysis, collection of information requirement update. Harvest occurring within the the ownership entities (or firms), not the for purposes of the Paperwork first weeks of the fishing year based on individual vessels, are considered to be Reduction Act. outdated, higher catch limits could the regulated entities. Because of this,

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some vessels with spiny dogfish permits assessment update. The Councils also status quo specifications was not may be considered to be part of the considered taking no action, where the recommended by the Councils because same firm because they may have the same catch limits and specifications it would exceed catch level same owners. In terms of RFA, a from fishing year 2018 would continue recommendations, put the spiny dogfish business primarily engaged in into 2019 with no change. Only these stock at an unnecessary risk of commercial fishing activity is classified two alternatives were considered by the overfishing, and would be inconsistent as a small business if it has combined Councils. NMFS is somewhat with the requirements of the Magnuson- annual gross receipts not in excess of constrained in approving specifications Stevens Act. $11 million for all its affiliated in that the agency can approve, NMFS does not anticipate any operations worldwide. To identify these disapprove, partially approve, or in very significant economic impacts on small small and large firms, vessel ownership limited circumstances substitute entities as a result of implementing the data from the permit database were measures to end overfishing and rebuild reduced quotas in this action. While grouped according to common owners stocks if Council-recommended there is a substantial reduction in the and sorted by size. measures will not do so. Because of this, 2019 ACT and commercial quota, there are limited options to minimize The current ownership data set used analyses indicate that coastwide spiny potential impacts on small entities. for this analysis is based on calendar dogfish landings have been less than This rule decreases the commercial year 2017 (the most recent complete these approved specifications in recent year available). In 2017, there were quota by 46 percent to 9,309 mt in 2019, followed by modest projected increases years. It is unlikely that potential 2,254 vessels that held a spiny dogfish revenue losses would be directly permit, while 244 of these vessels to 10,521 mt and 12,438 mt, in 2020 and 2021, respectively. Although the 46- affected by these quota reductions. In contributed to overall landings. Cross- addition, these quotas are projected to referencing those permits with vessel percent reduction in 2019 is a substantial quota change, landings increase in 2020 and 2021, so any ownership database revealed that 1,695 impact to small entities affected by this entities owned those vessels. 1,685 were reports from the most recent available full fishing year (2017) show that 7,439 action may be remedied quickly as the classified as small entities, with the risk of overfishing subsides. remaining 10 classified as large mt of spiny dogfish were landed. businesses. Of the 1,685 small entities, Available landing information for Section 212 of the Small Business 374 had no revenue in 2017, 1,104 were fishing year 2018 is around 23 percent Regulatory Enforcement Fairness Act of commercial fishing entities, and 207 lower than in 2017. Given this data, it 1996 states that, for each rule or group were for-hire entities. Overall, there is likely that the reduction in quota for of related rules for which an agency is were 227 entities with spiny dogfish 2019 will not constrain the spiny required to prepare a FRFA, the agency permits that reported revenue from dogfish industry, including small shall publish one or more guides to spiny dogfish landings during 2017. Of entities. assist small entities in complying with those entities, 1 was large and 226 were If the fishery were to reverse the the rule, and shall designate such small and their average overall revenues recent landing trends and achieve the publications as ‘‘small entity in 2017 were $0.4 million. proposed 2019 quota, it would still compliance guides.’’ The agency shall generate more landings and likely more explain the actions a small entity is Description of Projected Reporting, revenues than the most recent year required to take to comply with a rule Recordkeeping, and Other Compliance (2017) of full fishery information. or group of rules. As part of this Requirements Therefore, it is expected that the rulemaking process, a letter to permit No additional reporting, proposed action will have minimal holders that also serves as small entity recordkeeping, or other compliance impact on small entities. compliance guide was prepared and requirements are included in this final Taking no action was also considered, will be sent to all holders of Federal rule. where the same catch limits and permits issued for the spiny dogfish specifications from 2018 would fishery. In addition, copies of this final Description of the Steps the Agency Has continue into 2019 and beyond. This rule and guide (i.e., permit holder letter) Taken To Minimize the Significant may have had a higher potential to are available from NMFS at the Economic Impact on Small Entities minimize short-term economic impacts following website: Consistent With the Stated Objectives of on small entities, as the quotas would www.greateratlantic.fisheries.noaa.gov. Applicable Statutes remain higher, providing the potential Authority: 16 U.S.C. 1801 et seq. Specification of commercial catch for greater revenues and economic gain. limits is constrained by the conservation However, as previously stated, effort Dated: May 9, 2019. objectives of the FMP and the and landings in the spiny dogfish Samuel D. Rauch, III, Magnuson-Stevens Act. This action fishery have been low in recent years, Deputy Assistant Administrator for implements final 2019 and projected and higher quotas increase the risk of Regulatory Programs National Marine 2020–2021 commercial catch overfishing without addressing the Fisheries Service. specifications for the spiny dogfish issues in the market that may be keeping [FR Doc. 2019–09915 Filed 5–14–19; 8:45 am] fishery based on the most recent stock landings low. Therefore, maintaining BILLING CODE 3510–22–P

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Proposed Rules Federal Register Vol. 84, No. 94

Wednesday, May 15, 2019

This section of the FEDERAL REGISTER • Fax comments to: Secretary, U.S. B. Submitting Comments contains notices to the public of the proposed Nuclear Regulatory Commission at 301– issuance of rules and regulations. The Please include Docket ID NRC–2019– 415–1101. 0071 in your comment submission. purpose of these notices is to give interested • persons an opportunity to participate in the Mail comments to: Secretary, U.S. The NRC cautions you not to include rule making prior to the adoption of the final Nuclear Regulatory Commission, identifying or contact information that rules. Washington, DC 20555–0001, ATTN: you do not want to be publicly Rulemakings and Adjudications Staff. disclosed in your comment submission. • Hand deliver comments to: 11555 The NRC will post all comment NUCLEAR REGULATORY Rockville Pike, Rockville, Maryland submissions at http:// COMMISSION 20852, between 7:30 a.m. and 4:15 p.m. www.regulations.gov as well as enter the (Eastern Time) Federal workdays; comment submissions into ADAMS. 10 CFR Parts 50 and 52 telephone: 301–415–1677. The NRC does not routinely edit [Docket No. PRM–50–118; NRC–2019–0071] For additional direction on obtaining comment submissions to remove information and submitting comments, identifying or contact information. Measurement Standards Used at U.S. If you are requesting or aggregating see ‘‘Obtaining Information and Nuclear Power Plants comments from other persons for Submitting Comments’’ in the submission to the NRC, then you should AGENCY: Nuclear Regulatory SUPPLEMENTARY INFORMATION section of inform those persons not to include Commission. this document. identifying or contact information that ACTION: Petition for rulemaking; notice FOR FURTHER INFORMATION CONTACT: they do not want to be publicly of docketing and request for comment. Solomon Sahle, U.S. Nuclear Regulatory disclosed in their comment submission. SUMMARY: The U.S. Nuclear Regulatory Commission, Washington, DC 20555– Your request should state that the NRC Commission (NRC) has received a 0001; telephone: 301–415–3407; email: does not routinely edit comment petition for rulemaking from Michael [email protected]. submissions to remove such information Taylor, dated December 3, 2018, as SUPPLEMENTARY INFORMATION: before making the comment amended on January 24, 2019. The submissions available to the public or I. Obtaining Information and petitioner requests that the NRC amend entering the comment into ADAMS. Submitting Comments its regulations to revise the II. The Petitioner and Petition measurement standards used at U.S. A. Obtaining Information The petition was filed by Michael nuclear power plants. The petition was Taylor. Michael Taylor is a private docketed by the NRC on March 4, 2019, Please refer to Docket ID NRC–2019– citizen. The petitioner is requesting that and has been assigned Docket No. PRM– 0071 when contacting the NRC about the NRC amend its regulations regarding 50–118. The NRC is examining the the availability of information for this the measurement standards used at U.S. issues raised in PRM–50–118 to action. You may obtain publicly- nuclear power plants. The petitioner is determine whether they should be available information related to this concerned that U.S. nuclear power considered in rulemaking. The NRC is action by any of the following methods: plants are not required to use or have requesting public comment on this • Federal Rulemaking Website: Go to internal metrology or calibration petition. http://www.regulations.gov and search for Docket ID NRC–2019–0071. laboratories that are certified under DATES: Submit comments by July 29, • accrediting organization standards, as a 2019. Comments received after this date NRC’s Agencywide Documents part of normal and required operations. will be considered if it is practical to do Access and Management System The petitioner observed that certain so, but the NRC is able to assure (ADAMS): You may obtain publicly- important factors are not currently consideration only for comments available documents online in the considered in measurements conducted received on or before this date. ADAMS Public Documents collection at at nuclear power plants, including the ADDRESSES: You may submit comments http://www.nrc.gov/reading-rm/ ratio of measurement standards to units by any of the following methods: adams.html. To begin the search, select under test. The petitioner proposed that • Federal Rulemaking Website: Go to ‘‘Begin Web-based ADAMS Search.’’ For the NRC require all internal metrology/ http://www.regulations.gov and search problems with ADAMS, please contact calibration laboratories in U.S. nuclear for Docket ID NRC–2019–0084. Address the NRC’s Public Document Room (PDR) power plants to become accredited by questions about NRC dockets to Carol reference staff at 1–800–397–4209, 301– an accrediting organization, and require Gallagher; telephone: 301–415–3463; 415–4737, or by email to pdr.resource@ training of all personnel and their email: [email protected]. For nrc.gov. The ADAMS accession number management that make measurements at technical questions contact the for each document referenced (if it is nuclear power plants. The petition may individual listed in the FOR FURTHER available in ADAMS) is provided the be found in ADAMS at Accession No. INFORMATION CONTACT section of this first time that it is mentioned in this ML19074A303. document. document. • Email comments to: • NRC’s PDR: You may examine and III. Discussion of the Petition [email protected]. If you purchase copies of public documents at The petitioner requests that the NRC do not receive an automatic email reply the NRC’s PDR, Room O1–F21, One revise its regulations to require internal confirming receipt, then contact us at White Flint North, 11555 Rockville metrology or calibration laboratories in 301–415–1677. Pike, Rockville, Maryland 20852. U.S. nuclear power plants to become

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accredited by accrediting organizations A3.1.6.2 to ensure that adequate III. Background such as the American Association for monitoring of the concrete cask heat IV. Plain Writing Laboratory Accreditation, National removal system is performed. V. Availability of Documents Voluntary Laboratory Accreditation Amendment No. 7 would also revise the I. Obtaining Information and Program, under the guidance of basis for technical specification A3.1.6 Submitting Comments International Organization for to clarify that the surveillance Standardization (ISO) and American requirements for technical specification A. Obtaining Information National Standards Institute (ANSI) A3.1.6 require a minimum of two outlet Please refer to Docket ID NRC–2019– (specifically, under guidance ISO/IEC air temperature measurements to 0070 when contacting the NRC about 17025 or ANSI/NCSLI Z540.3), as a part provide an average outlet temperature. the availability of information for this of normal and required operations. The DATES: Submit comments by June 14, action. You may obtain publicly- petitioner notes that some nuclear 2019. Comments received after this date available information related to this power plant metrology laboratories are will be considered if it is practical to do action by any of the following methods: accredited under these standards so, but the NRC is able to ensure • voluntarily, but also notes that the lack consideration only for comments Federal Rulemaking Website: Go to of requirements for nuclear power received on or before this date. http://www.regulations.gov and search for Docket ID NRC–2019–0070. plants allows for degraded ADDRESSES: You may submit comments • measurements and is a safety concern. by any of the following methods: NRC’s Agencywide Documents The petitioner also states that, according • Federal Rulemaking Website: Go to Access and Management System to these standards and scientific http://www.regulations.gov and search (ADAMS): You may obtain publicly- documents, measurements made for Docket ID NRC–2019–0070. Address available documents online in the without this guidance are subject to questions about NRC dockets to Carol ADAMS Public Documents collection at significant errors. The petitioner Gallagher; telephone: 301–415–3463; http://www.nrc.gov/reading-rm/ contends that this leads to an email: [email protected]. For adams.html. To begin the search, select unresolved safety issue for ‘‘Q’’ technical questions contact the ‘‘Begin Web-based ADAMS Search.’’ For measurements in particular. The individuals listed in the FOR FURTHER problems with ADAMS, please contact petitioner also states existing internal INFORMATION CONTACT section of this the NRC’s Public Document Room (PDR) quality assurance and documents and document. reference staff at 1–800–397–4209, 301– standards currently in use for • Email comments to: 415–4737, or by email to pdr.resource@ inspections and audits do not [email protected]. If you nrc.gov. For the convenience of the adequately address this concern. do not receive an automatic email reply reader, instructions about obtaining Dated at Rockville, Maryland, this 9th day confirming receipt, then contact us at materials referenced in this document of May 2019. 301–415–1677. are provided in the ‘‘Availability of For the Nuclear Regulatory Commission. • Fax comments to: Secretary, U.S. Documents’’ section. Annette L. Vietti-Cook, Nuclear Regulatory Commission at 301– • NRC’s PDR: You may examine and Secretary of the Commission. 415–1101. purchase copies of public documents at • [FR Doc. 2019–09981 Filed 5–14–19; 8:45 am] Mail comments to: Secretary, U.S. the NRC’s PDR, Room O1–F21, One Nuclear Regulatory Commission, BILLING CODE 7590–01–P White Flint North, 11555 Rockville Washington, DC 20555–0001, ATTN: Pike, Rockville, Maryland 20852. Rulemakings and Adjudications Staff. • B. Submitting Comments NUCLEAR REGULATORY Hand deliver comments to: 11555 COMMISSION Rockville Pike, Rockville, Maryland Please include Docket ID NRC–2019– 20852, between 7:30 a.m. and 4:15 p.m. 0070 in your comment submission. 10 CFR Part 72 (Eastern Time) Federal workdays; telephone: 301–415–1677. The NRC cautions you not to include [NRC–2019–0070] For additional direction on obtaining identifying or contact information that RIN 3150–AK33 information and submitting comments, you do not want to be publicly see ‘‘Obtaining Information and disclosed in your comment submission. List of Approved Spent Fuel Storage Submitting Comments’’ in the The NRC will post all comment ® Casks: NAC International NAC–UMS SUPPLEMENTARY INFORMATION section of submissions at http:// Universal Storage System, Certificate this document. www.regulations.gov as well as enter the of Compliance No. 1015, Amendment comment submissions into ADAMS. FOR FURTHER INFORMATION CONTACT: No. 7 Bernard H. White, Office of Nuclear The NRC does not routinely edit comment submissions to remove AGENCY: Material Safety and Safeguards; Nuclear Regulatory identifying or contact information. Commission. telephone: 301–415–6577; email: ACTION: Proposed rule. [email protected] or Victoria V. If you are requesting or aggregating Huckabay, Office of Nuclear Material comments from other persons for SUMMARY: The U.S. Nuclear Regulatory Safety and Safeguards; telephone: 301– submission to the NRC, then you should Commission (NRC) is proposing to 415–5183; email: Victoria.Huckabay@ inform those persons not to include amend its spent fuel storage regulations nrc.gov. Both are staff of the U.S. identifying or contact information that by revising the NAC International NAC– Nuclear Regulatory Commission, they do not want to be publicly UMS® Universal Storage System listing Washington, DC 20555–0001. disclosed in their comment submission. within the ‘‘List of approved spent fuel SUPPLEMENTARY INFORMATION: Your request should state that the NRC storage casks’’ to include Amendment does not routinely edit comment No. 7 to Certificate of Compliance No. Table of Contents: submissions to remove such information 1015. Amendment No. 7 would revise I. Obtaining Information and Submitting before making the comment the surveillance requirements for Comments submissions available to the public or technical specifications A3.1.6.1 and II. Rulemaking Procedure entering the comment into ADAMS.

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II. Rulemaking Procedure technologies that the [Nuclear Document ADAMS Because the NRC considers this action Regulatory] Commission may, by rule, accession No. to be non-controversial, the NRC is approve for use at the sites of civilian nuclear power reactors without, to the Proposed Certificate of Com- ML19057A267 publishing this proposed rule pliance No. 1015 Amend- concurrently with a direct final rule in maximum extent practicable, the need ment No. 7, Certificate of the Rules and Regulations section of this for additional site-specific approvals by Compliance for Spent Fuel issue of the Federal Register. The direct the Commission.’’ Section 133 of the Storage Casks. final rule will become effective on July Nuclear Waste Policy Act states, in part, Proposed Certificate of Com- ML19057A265 29, 2019. However, if the NRC receives that ‘‘[t]he Commission shall, by rule, pliance No. 1015 Amend- significant adverse comments June 14, establish procedures for the licensing of ment No. 7, Technical any technology approved by the Specifications, Appendix A. 2019, then the NRC will publish a Proposed Certificate of Com- ML19057A266 document that withdraws the direct Commission under section [218(a)] for pliance No. 1015 Amend- final rule. If the direct final rule is use at the site of any civilian nuclear ment No. 7, Technical withdrawn, the NRC will address the power reactor.’’ Specifications, Appendix B. comments in a subsequent final rule. To implement this mandate, the Certificate of Compliance ML19057A268 Absent significant modifications to the Commission approved dry storage of No. 1015 Amendment No. proposed revisions requiring 7, Preliminary Safety Eval- spent nuclear fuel in NRC-approved uation Report. republication, the NRC will not initiate casks under a general license by a second comment period on this action publishing a final rule which added a in the event the direct final rule is The NRC may post materials related new subpart K in part 72 of title 10 of withdrawn. to this document, including public the Code of Federal Regulations (10 A significant adverse comment is a comments, on the Federal Rulemaking CFR) entitled ‘‘General License for comment where the commenter website at http://www.regulations.gov Storage of Spent Fuel at Power Reactor explains why the rule would be under Docket ID NRC–2019–0070. The Sites’’ (55 FR 29181; July 18, 1990). This inappropriate, including challenges to Federal Rulemaking website allows you the rule’s underlying premise or rule also established a new subpart L in to receive alerts when changes or approach, or would be ineffective or 10 CFR part 72 entitled ‘‘Approval of additions occur in a docket folder. To unacceptable without a change. A Spent Fuel Storage Casks,’’ which subscribe: (1) Navigate to the docket comment is adverse and significant if: contains procedures and criteria for folder (NRC–2019–0070); (2) click the (1) The comment opposes the rule and obtaining NRC approval of spent fuel ‘‘Sign up for Email Alerts’’ link; and (3) provides a reason sufficient to require a storage cask designs. The NRC enter your email address and select how substantive response in a notice-and- subsequently issued a final rule on frequently you would like to receive comment process. For example, a October 19, 2000, that approved the emails (daily, weekly, or monthly). ® substantive response is required when: NAC–UMS Universal Storage System List of Subjects in 10 CFR Part 72 (a) The comment causes the NRC to design and added it to the list of NRC- Administrative practice and reevaluate (or reconsider) its position or approved cask designs in § 72.214 as procedure, Hazardous waste, Indians, conduct additional analysis; Certificate of Compliance No. 1015 (65 (b) The comment raises an issue FR 62581). Intergovernmental relations, Nuclear energy, Penalties, Radiation protection, serious enough to warrant a substantive IV. Plain Writing response to clarify or complete the Reporting and recordkeeping record; or requirements, Security measures, Spent The Plain Writing Act of 2010 (Pub. fuel, Whistleblowing. (c) The comment raises a relevant L. 111–274) requires Federal agencies to issue that was not previously addressed write documents in a clear, concise, Dated at Rockville, Maryland, this 2nd day or considered by the NRC. well-organized manner. The NRC has of May, 2019. (2) The comment proposes a change written this document to be consistent For the Nuclear Regulatory Commission. or an addition to the rule, and it is with the Plain Writing Act as well as the Kim S. West, apparent that the rule would be Presidential Memorandum, ‘‘Plain Acting, Executive Director for Operations. ineffective or unacceptable without Language in Government Writing,’’ [FR Doc. 2019–10018 Filed 5–14–19; 8:45 am] incorporation of the change or addition. published June 10, 1998 (63 FR 31885). BILLING CODE 7590–01–P (3) The comment causes the NRC to The NRC requests comment on the make a change (other than editorial) to proposed rule with respect to clarity the rule. and effectiveness of the language used. BUREAU OF CONSUMER FINANCIAL For procedural information and the PROTECTION regulatory analysis, see the direct final V. Availability of Documents rule published in the Rules and 12 CFR Part 1005 Regulations section of this issue of the The documents identified in the Federal Register. following table are available to [Docket No. CFPB–2019–0023] interested persons through one or more III. Background of the following methods, as indicated. Overdraft Rule Review Pursuant to the Regulatory Flexibility Act Section 218(a) of the Nuclear Waste Policy Act of 1982, as amended, ADAMS AGENCY: Bureau of Consumer Financial Document accession No. requires that ‘‘[t]he Secretary [of the Protection. Department of Energy] shall establish a Letter from NAC Inter- ML18264A014 ACTION: Notice of section 610 review demonstration program, in cooperation national dated September and request for comments. with the private sector, for the dry 18, 2018, Submitting Re- storage of spent nuclear fuel at civilian quest for Amendment to SUMMARY: The Bureau of Consumer nuclear power reactor sites, with the Certificate of Compliance Financial Protection (Bureau) is objective of establishing one or more No. 1015. conducting a review of the Overdraft

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Rule consistent with section 610 of the FOR FURTHER INFORMATION CONTACT: A. Federal Reserve Board Overdraft Rule Regulatory Flexibility Act. As part of Joseph Baressi and Gregory Evans, i. The Rule this review, the Bureau is seeking Senior Counsels, Office of Regulations, comment on the economic impact of the at 202–435–7700. If you require this In November 2009, to address Overdraft Rule on small entities. These document in an alternative electronic overdraft practices, the Board of comments may assist the Bureau in format, please contact CFPB_ Governors of the Federal Reserve determining whether the Overdraft Rule [email protected]. System (Board) published a final rule amending Regulation E, which should be continued without change, or SUPPLEMENTARY INFORMATION: The amended or rescinded to minimize any 1 implements the Electronic Fund Regulatory Flexibility Act (RFA) 6 significant economic impact of the rules requires each agency to consider the Transfer Act (EFTA), and the official upon a substantial number of such small effect on small entities for certain rules staff commentary to the regulation, which interprets the requirements of entities, consistent with the stated it promulgates.2 Specifically, section Regulation E.7 Specifically, pursuant to objectives of applicable statutes. 610 of the RFA 3 provides that each its authority under EFTA sections agency shall publish in the Federal DATES: Comments must be received by 904(a), (b), (c), and 905,8 the Board Register a plan for the periodic review July 1, 2019. issued a rule (Overdraft Rule or Rule) of the rules issued by the agency which ADDRESSES: You may submit responsive that limits the ability of financial have or will have a significant economic information and other comments, institutions to assess overdraft fees for impact upon a substantial number of identified by Docket No. CFPB–2019– paying automated teller machine (ATM) small entities. 0023, by any of the following methods: and one-time debit card transactions The Bureau is publishing such a plan • that overdraw consumers’ accounts.9 Electronic: Go to http:// separately in this issue of the Federal The Board stated that the Overdraft Rule www.regulations.gov. Follow the Register. Section 610 provides that the is intended to carry out the express instructions for submitting comments. purpose of the review shall be to • purposes of the EFTA by: (a) Email: 2019-Notice- determine whether such rules should be Establishing notice requirements to help [email protected]. Include continued without change, or should be Docket No. CFPB–2019–0023 in the consumers better understand the cost of amended or rescinded, consistent with overdraft services for certain electronic subject line of the message. the stated objectives of applicable • Mail: Comment Intake, Consumer fund transfers; and (b) providing statutes, to minimize any significant consumers with a choice as to whether Financial Protection Bureau, 1700 G economic impact of the rules upon a Street NW, Washington, DC 20552. they want overdraft services for ATM substantial number of such small and one-time debit card transactions in • Hand Delivery/Courier: Comment 4 entities. As also set forth in section light of the costs associated with those Intake, Consumer Financial Protection 610, in each review agencies must services.10 Under the Rule, financial Bureau, 1700 G Street NW, Washington, consider several factors: institutions must not assess a fee or DC 20552. 1. The continued need for the rule; charge on a consumer’s account for Instructions: The Bureau encourages 2. The nature of public complaints or paying an ATM or one-time debit card the early submission of comments. All comments on the rule; overdraft transaction, unless the submissions must include the document 3. The complexity of the rule; institution, among other things, obtains title and docket number. Please note the 4. The extent to which the rule the consumer’s affirmative consent, or specific rule or topic on which you are overlaps, duplicates, or conflicts with opt-in, to the institution’s payment of commenting at the top of each response Federal, State, or other rules; and overdrafts for these transactions.11 (you do not need to address all rules or 5. The time since the rule was Under the Overdraft Rule, before a topics). Because paper mail in the evaluated or the degree to which consumer may affirmatively consent, Washington, DC area and at the Bureau technology, market conditions, or other the financial institution must ‘‘provide[] is subject to delay, commenters are factors have changed the relevant 5 the consumer with a notice in writing, encouraged to submit comments market. or if the consumer agrees, electronically, electronically. In general, all comments The following section lists and briefly segregated from all other information, received will be posted without change describes the rule that the Bureau plans describing the institution’s overdraft to http://www.regulations.gov. In to review in 2019 under the criteria service.’’ 12 This notice must include addition, comments will be available for described by section 610 of the RFA and specific information, such as the fees public inspection and copying at 1700 pursuant to the review plan published imposed for paying such overdrafts, and G Street NW, Washington, DC 20552, on separately in this issue of the Federal the notice must also be ‘‘substantially official business days between the hours Register. The Bureau expects to publish similar’’ to a model form set forth in of 10 a.m. and 5 p.m. eastern time. You a notice in summer 2019 identifying the appendix A of the regulation (Model can make an appointment to inspect the rules that will be the subject of section Form A–9).13 The Bureau recodified documents by telephoning 202–435– 610 reviews in 2020. Regulation E, including the 7275. I. List of Rules for Review amendments made by the Overdraft All submissions in response to this Rule, in 2011 when the Bureau assumed This section lists and briefly describes request for information, including rulemaking responsibility under attachments and other supporting the rule that the Bureau plans to review in 2019 under the criteria described by materials, will become part of the public 6 15 U.S.C. 1693 et seq. record and subject to public disclosure. section 610 of the RFA and pursuant to 7 74 FR 59033 (Nov. 17, 2009). See also Proprietary information or sensitive the Bureau’s review plan. clarifications that the Board published in June 2010. personal information, such as account 75 FR 31665 (June 4, 2010). 1 8 15 U.S.C. 1693b(a), (b), (c), 1693c. numbers or Social Security numbers, or Public Law 96–354, 94 Stat. 1164. 2 The term ‘‘small entity’’ is defined in the RFA. 9 See 74 FR 59033, 59037 (Nov. 17, 2009). names of other individuals, should not See 5 U.S.C. 601(6). 10 Id. be included. Submissions will not be 3 5 U.S.C. 610(a). 11 See 12 CFR 1005.17(b)(1)(iii). edited to remove any identifying or 4 5 U.S.C. 610(a). 12 See 12 CFR 1005.17(b)(1)(i). contact information. 5 5 U.S.C. 610(b). 13 See 12 CFR 1005.17(d).

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EFTA.14 The Overdraft Rule is now set is a common occurrence for frequent other types of short-term credit forth within Subpart A of the Bureau’s overdrafters who have not opted in.16 products. The Bureau obtained Regulation E, 12 CFR part 1005.15 The Bureau has found that the share aggregate and anonymized account-level of consumers who have opted in varies data from large banks as part of this ii. The Market widely by institution, but in general it inquiry, which Bureau researchers is considerably less than half.17 This Consumers with checking accounts extensively analyzed. The Bureau underscores the variation among sometimes attempt transactions for shared some of its findings through a financial institutions and their amounts that exceed their account June 2013 White Paper, July 2014 Data customers in their desire to offer or use Point, and August 2017 Data Point.19 balance. Financial institutions that offer overdraft on card-based transactions. In 2015, the Bureau obtained de- checking accounts may decide whether The Bureau has estimated in 2013 that identified information from core to allow such transactions to go through the rule led to a material decrease in the processors on 4,091 financial (an overdraft) and whether to charge amount of overdraft fees paid by institutions for a single 12-month period fees in connection with the overdraft consumers.18 around 2014. The vast majority of these (subject to some restrictions). These With regard to the type of transactions financial institutions were small, as decisions depend on a number of taking place, there has been substantial defined by the Small Business factors, including the type of growth in debit card-based transactions Administration as having assets less transaction, the financial institution’s both due to more consumers using debit than $550 million.20 The acquired policies, procedures, and technological cards and those with debit cards using information related to overdraft systems, and regulatory requirements. In them more. There have been practices (whether the financial the case of a check or an Automated technological changes making debit card institution offered overdraft and opt-in, Clearing House (ACH) transaction, the acceptance more ubiquitous, such as the its policies for making overdraft and financial institution may either return a introduction of tablet and smartphone- balance-related decisions, transaction transaction attempt that exceeds a based point of sale terminals and a processing methods, and overdraft and consumer’s account balance unpaid for growing number of online and mobile NSF fees charged) and consumer non-sufficient funds (NSF), or process marketplaces, retailers, and service outcomes (share of accounts opted-in, the transaction, in which case an providers. There has also been a overdraft and NSF fee revenue per overdraft occurs. If a consumer attempts growing comfort among consumers in account, and distribution of fees across a one-time debit card transaction or an making electronic payments. accounts). ATM withdrawal, the financial Since the issuance of the Overdraft institution either authorizes or declines Rule, the Bureau has observed several iv. Previous Input to the Bureau the transaction within seconds of the changes in overdraft practices at a In February 2012, the Bureau consumer’s request. A declined number of financial institutions. These published a request for information, transaction does not result in a fee. If include: (i) Changes in the order in seeking input from the public on the the transaction is authorized, the which different categories of impact of overdraft programs on financial institution will later settle the transactions are posted, which has consumers, including information on transaction, which might occur on the resulted in a diminution in the number the impact of the Overdraft Rule.21 The same day, or as long as three business of overdraft transactions; (ii) limits on Bureau received more than one days later. the number of overdraft fees that some thousand comments from trade groups, financial institutions, consumer The Bureau believes that the majority financial institutions may charge in a advocates, individual consumers, and of financial institutions offering single business day; and (iii) ‘‘cushions’’ which preclude assessing overdraft fees others. checking account overdraft services In August 2017, the Bureau chose to offer consumers the on de minimis amounts. The Bureau does not have reason to believe that announced that it had conducted opportunity to opt-in to those services. consumer testing on potential updates Some financial institutions, however, these changes are attributable to the Rule. and improvements to the Model Form chose not to implement an opt-in A–9 promulgated by the Board. The regime. Of those financial institutions, iii. Bureau Resources and Analysis Bureau released four alternative some may have elected to provide The Bureau has conducted research versions of a revised opt-in model form overdraft services for ATM and one-time relevant to the Overdraft Rule. In 2012, debit card transactions, but not charge a the Bureau launched an inquiry into 19 CFPB, CFPB Study of Overdraft Programs: A fee. Other financial institutions that overdraft, paralleling work that the White Paper of Initial Data Findings (June 2013), chose not to offer opt-in elected Bureau was undertaking to examine available at http://files.consumerfinance.gov/f/ generally to decline ATM and one-time 201306_cfpb_whitepaper_overdraft-practices.pdf; CFPB, Data Point: Checking account overdraft (July debit card transactions that would 16 CFPB, Data Point: Frequent Overdrafters (Aug. 2014), available at http:// overdraw the account, although certain 2017) at 28, available at https:// files.consumerfinance.gov/f/201407_cfpb_report_ authorized transactions may www.consumerfinance.gov/documents/5126/ data-point_overdrafts.pdf; CFPB, Data Point: _ _ _ nonetheless have resulted in an 201708 cfpb data-point frequent-overdrafters.pdf. Frequent Overdrafters (Aug. 2017), available at 17 CFPB, CFPB Study of Overdraft Programs: A https://www.consumerfinance.gov/documents/ overdraft later at settlement. Bureau White Paper of Initial Data Findings (June 2013) at 5126/201708_cfpb_data-point_frequent- research suggests that a transaction 29, available at http://files.consumerfinance.gov/f/ overdrafters.pdf. authorizing with a sufficient balance, 201306_cfpb_whitepaper_overdraft-practices.pdf. 20 ‘‘A financial institution’s assets are determined but later settling with a negative balance This report covers a number of larger banks. The by averaging the assets reported on its four Bureau has obtained data with respect to practices quarterly financial statements for the preceding at smaller banks and credit unions which is year.’’ 13 CFR 121.201. Assets for the purposes of 14 76 FR 81019 (Dec. 27, 2011). consistent with the Bureau’s finding. The Bureau this size standard means the assets defined 15 See generally 12 CFR 1005.17. These provisions will consider those data in connection with this according to the Federal Financial Institutions were originally adopted by the Board in 12 CFR part review. Examination Council 041 call report form for 205 but, upon transfer of authority by the Dodd- 18 CFPB, CFPB Study of Overdraft Programs: A NAICS Codes 522110, 522120, 522190, and 522210 Frank Act to implement EFTA to the Bureau, were White Paper of Initial Data Findings (June 2013) at and the National Credit Union Administration 5300 renumbered as 12 CFR part 1005. 76 FR 81020 (Dec. 39, available at http://files.consumerfinance.gov/f/ call report form for NAICS code 522130. 27, 2011). 201306_cfpb_whitepaper_overdraft-practices.pdf. 21 77 FR 12031 (Feb. 28, 2012).

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and invited feedback on these small entities, including impacts of the Bureau, 1700 G Street NW, Washington, alternatives, while noting that the reporting, recordkeeping, and other DC 20552. current Model Form A–9 remains compliance requirements of the Instructions: The Bureau encourages effective under Regulation E.22 The Overdraft Rule, as well as benefits of the the early submission of comments. All Bureau received more than forty Rule. submissions must include the document comments in response to the release. (2) Whether and how the Bureau by title and docket number. Please note the In response to the Bureau’s 2018 Call rule could reduce the costs of the specific rule or topic on which you are for Evidence Initiative, which included Overdraft Rule on small entities, commenting at the top of each response requesting input on all inherited consistent with the stated objectives of (you do not need to address all rules or regulations and rulemaking authorities, EFTA and the Overdraft Rule. topics). Because paper mail in the the Bureau received approximately ten (3) Any other information relevant to Washington, DC area and at the Bureau comments that included information the factors that the Bureau considers in is subject to delay, commenters are about checking account overdrafts completing a Section 610 Review under encouraged to submit comments generally.23 These comments came from the Regulatory Flexibility Act, as electronically. In general, all comments trade groups, financial institutions, and described above. received will be posted without change consumer advocates. The comments Where possible, please submit to http://www.regulations.gov. In addressed a wide variety of topics detailed comments, data, and other addition, comments will be available for including the overall cost of overdraft, information to support any submitted public inspection and copying at 1700 the treatment of overdrafts under the positions. G Street NW, Washington, DC 20552, on official business days between the hours Truth in Lending Act, and potential Dated: May 6, 2019. of 10 a.m. and 5 p.m. eastern time. You modifications to the current Model Kathleen L. Kraninger, Form A–9. can make an appointment to inspect the Director, Bureau of Consumer Financial documents by telephoning 202–435– Through these and other outreach Protection. efforts, the Bureau has heard concerns 7275. [FR Doc. 2019–09812 Filed 5–14–19; 8:45 am] expressed by some financial institutions All submissions in response to this and trade groups regarding the BILLING CODE 4810–AM–P request for information, including requirements that the opt-in notice be attachments and other supporting substantially similar to Model Form A– materials, will become part of the public BUREAU OF CONSUMER FINANCIAL record and subject to public disclosure. 9 and that the notice may not contain PROTECTION any information not specified in or Proprietary information or sensitive otherwise permitted by the regulation. personal information, such as account 12 CFR Chapter X numbers or Social Security numbers, or Some of these financial institutions names of other individuals, should not have expressed a desire to add [Docket No. CFPB–2019–0024] be included. Submissions will not be additional information to the notice that Plan for the Review of Bureau Rules edited to remove any identifying or they believe may be relevant to the for Purposes of the Regulatory contact information. consumer’s decision, such as an Flexibility Act institution’s policies for making FOR FURTHER INFORMATION CONTACT: overdraft and balance-related AGENCY: Bureau of Consumer Financial Joseph Baressi and Gregory Evans, calculations. Protection. Senior Counsels, Office of Regulations, at 202–435–7700. If you require this Finally, the Bureau’s experience ACTION: Plan for periodic review of rules document in an alternative electronic suggests there is little overlap, and request for comments. _ duplication, or conflict between the format, please contact CFPB Overdraft Rule and Federal, State, or SUMMARY: The Bureau of Consumer [email protected]. other rules. The Bureau has not received Financial Protection (Bureau) is SUPPLEMENTARY INFORMATION: The 1 any requests for a determination that the publishing a plan for the review of rules Regulatory Flexibility Act (RFA) Overdraft Rule preempts State law. In which have or will have a significant requires each agency to consider the October 2015, the Department of economic impact upon a substantial effect on small entities for certain rules 2 Education also issued a final rule that number of small entities, pursuant to it promulgates. Specifically, section 3 generally prohibits overdraft fees on section 610 of the Regulatory Flexibility 610(a) of the RFA provides that each students’ checking accounts if the Act. agency shall publish in the Federal Register a plan for the periodic review financial institution offering the account DATES: Comments must be received by partners with an entity that handles the July 15, 2019. of the rules issued by the agency which have a significant economic impact school’s financial aid disbursement ADDRESSES: You may submit responsive process.24 upon a substantial number of small information and other comments, entities. An agency may amend a plan II. Request for Comment identified by Docket No. CFPB–2019– at any time by publishing the revision 0024, by any of the following methods: Consistent with the review plan, the • in the Federal Register. Congress Electronic: Go to http:// specified that the purpose of the review Bureau asks the public to comment on www.regulations.gov. Follow the the Overdraft Rule, including the shall be to determine whether such instructions for submitting comments. rules should be continued without following topics: • Email: like 2019-Notice- (1) The nature and extent of the change, or should be amended or [email protected]. Include rescinded, consistent with the stated economic impacts of the Rule as a Docket No. CFPB–2019–0024 in the whole and of its major components on objectives of applicable statutes, to subject line of the message. minimize any significant economic • Mail: Comment Intake, Consumer 22 https://www.consumerfinance.gov/about-us/ blog/know-you-owe-we-are-designing-new- Financial Protection Bureau, 1700 G 1 Public Law 96–354, 94 Stat. 1164. overdraft-disclosure-forms/. Street NW, Washington, DC 20552. 2 The terms ‘‘small entity’’ and ‘‘rule’’ are defined 23 83 FR 12881 (March 26, 2018). • Hand Delivery/Courier: Comment in the RFA. See 5 U.S.C. 601. 24 See 34 CFR 668.164. Intake, Consumer Financial Protection 3 5 U.S.C. 610(a).

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impact of the rules upon a substantial subparts B and G of Regulation Z, which 4. The extent to which the rule number of such small entities. Congress implements the Truth in Lending Act.9 overlaps, duplicates, or conflicts with Federal, state, or other rules; and further provided that the plan shall I. Review Plan provide for review of the relevant rules 5. The time since the rule was within ten years of their publication as Each year, the Bureau plans to initiate evaluated or the degree to which final rules.4 610 reviews of final rules. The Bureau technology, market conditions, or other intends to commence the review factors have changed the relevant In 2010, Congress established the roughly nine years after each rule’s market.13 Bureau through the Dodd-Frank Wall publication.10 For each rule, the Bureau The Bureau will complete each Street Reform and Consumer Protection will first assess whether it is having a review within ten years of the Act (Dodd-Frank Act).5 The Bureau is significant economic impact on a publication of the relevant rule as a final now publishing this plan because it substantial number of small entities and rule. The Bureau intends to anticipates performing reviews in the so is subject to 610 review. The Bureau subsequently announce the coming years to comply with section may also decide to exercise its determinations made as to follow-on 610 of the RFA (herein ‘‘610 reviews’’). discretion to review rules issued by the rulemaking activities in the Unified Although the Bureau is not required to Bureau or by the Bureau’s predecessor Agenda of Federal Regulatory and do so, it is also requesting comment on agencies that may not otherwise be Deregulatory Actions or through other its 610 review plan.6 subject to 610 review. The Bureau will appropriate methods. The Bureau may amend this review The Bureau’s 610 reviews will then publish in the Federal Register a plan at any time by publishing the generally be separate from and in list of rules which the Bureau plans to review within the upcoming plan year. revision in the Federal Register. addition to other Bureau reviews of its In addition to this list, the Bureau will regulations. In March 2018, the Bureau Dated: May 6, 2019. publish, consistent with section 610(c) Kathleen L. Kraninger, issued a request for information (RFI) to 11 of the RFA, a notice for each rule to Director, Bureau of Consumer Financial seek public input regarding the be reviewed that will include a brief substance of inherited regulations (those Protection. description of the rule, as well as the [FR Doc. 2019–09813 Filed 5–14–19; 8:45 am] transferred to the Bureau), and issued need for and legal basis of, the rule. BILLING CODE 4810–AM–P another RFI for adopted regulations Each of these notices will invite public (those issued by the Bureau), including comment on the rule, and the public whether the Bureau should issue may submit relevant data and other DEPARTMENT OF TRANSPORTATION additional rules.7 The Bureau also information to support any submitted conducts an assessment, pursuant to positions. Federal Aviation Administration section 1022(d) of the Dodd-Frank Act, For each rule, the Bureau intends to of each significant rule or order adopted conduct a review based on information 14 CFR Part 25 by the Bureau under Federal consumer on hand, relevant literature, and financial law and publishes a report of information submitted by the public in [Docket No.: FAA–2019–0343; Notice No. each assessment not later than five years response to the Bureau’s request for 19–04] after the effective date of the subject rule comment. As circumstances warrant, RIN 2120–AL11 or order.8 The Bureau has also the Bureau may exercise its discretion to announced as part of the semi-annual request additional data from relevant Decompression Criteria for Interior Unified Agenda of Federal Regulatory parties on a voluntary basis or otherwise Compartments obtain data from other sources, for and Deregulatory Actions a long-term AGENCY: Federal Aviation example, by purchasing data from a action to review inherited regulations Administration (FAA), DOT. for the purpose of ensuring that third-party vendor. Consistent with section 610(a) of the ACTION: Notice of proposed rulemaking outdated, unnecessary, or unduly RFA, the purpose of the review will be (NPRM). burdensome regulations are regularly to determine whether the rule should be SUMMARY: The FAA proposes to revise identified and addressed and stated that continued without change, or should be it expects to focus its initial review on its standards for pressurized amended or rescinded, consistent with compartment loads such that partitions the stated objectives of any applicable located immediately adjacent to a 4 The statute also contains certain additional statutes, to minimize any significant requirements for rules that existed on the effective decompression hole need not be date of the RFA, which was January 1, 1981. Id. economic impact of the rules upon a designed to withstand certain 12 Those requirements are not applicable to the substantial number of small entities. decompression conditions. This action Bureau’s reviews. As set forth in section 610(b) of the is necessary because, in some cases, it 5 Public Law 111–203, 124 Stat. 2081 (2010). RFA, the Bureau will consider several is not practical to design partitions in 6 Notice and comment is not required because the factors: certain airplane compartments to RFA provides that a plan may be amended by the 1. The continued need for the rule; agency at any time by publishing the revision in the withstand a large decompression event 2. The nature of public complaints or that occurs within that compartment. Federal Register. 5 U.S.C. 610(a). Furthermore, the comments on the rule; plan is a procedural rule under the Administrative Even though individual partition failure 3. The complexity of the rule; Procedure Act, 5 U.S.C. 553, and therefore it is would be allowed, continued safe flight exempt from its notice and comment requirements. and landing would still be required. 7 83 FR 12281 (March 21, 2018), 83 FR 12286 9 See https://www.reginfo.gov/public/do/ (March 21, 2018). eAgendaViewRule?pubId=201810&RIN=3170- DATES: Send comments on or before 8 To date, the Bureau has published three such AA73. June 14, 2019. assessment reports concerning, respectively, the 10 As permitted by section 605(c) of the RFA, the ADDRESSES: Send comments identified Bureau’s rules for remittance transfers, mortgage Bureau may consider a series of closely related by docket number FAA–2019–0343 servicing, and ability to repay and qualified rules as one rule for the purposes of section 610. mortgage standards. These reports are available at 5 U.S.C. 605(c). using any of the following methods: https://www.consumerfinance.gov/data-research/ 11 5 U.S.C. 610(c). research-reports/. 12 5 U.S.C. 610(a). 13 5 U.S.C. 610(b).

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• Federal eRulemaking Portal: Go to performance of aircraft that the affecting the safety of the airplane or the http://www.regulations.gov and follow Administrator finds necessary for safety compartment’s intended function, the the online instructions for sending your in air commerce. This regulation is FAA proposes to revise § 25.365(g) to comments electronically. within the scope of that authority as it allow the failure of partitions that are • Mail: Send comments to Docket prescribes new safety standards for the immediately adjacent to the Operations, M–30; U.S. Department of design and performance of transport decompression hole. This allowance Transportation (DOT), 1200 New Jersey category airplanes. would only apply to the formula Avenue SE, Room W12–140, West I. Overview of Proposed Rule decompression hole specified in Building Ground Floor, Washington, DC § 25.365(e)(2). A hole of this size is 20590–0001. The FAA proposes to revise § 25.365, typically the most severe decompression • Hand Delivery or Courier: Take ‘‘Pressurized compartment loads,’’ in load design requirement for small comments to Docket Operations in Title 14, Code of Federal Regulations compartments, such as lavatories, Room W12–140 of the West Building (14 CFR) Part 25, ‘‘Airworthiness private suites, and crew rest areas. Ground Floor at 1200 New Jersey Standards: Transport Category Finally, partition failure would only be Avenue SE, Washington, DC, between 9 Airplanes.’’ allowed if (1) failure of the partition a.m. and 5 p.m., Monday through The airworthiness standards in would not interfere with continued safe Friday, except Federal holidays. § 25.365 address the safety effects of flight and landing, and (2) meeting the • Fax: Fax comments to Docket decompression. When the fuselage skin decompression condition in paragraph Operations at 202–493–2251. or another part of the pressurized (e)(2) would be impractical. Privacy: In accordance with 5 U.S.C. boundary of an airplane fails for any II. Background 553(c), DOT solicits comments from the reason, a decompression occurs if the public to better inform its rulemaking cabin pressure is greater than the A. Statement of the Problem process. DOT posts these comments, outside air pressure. When a decompression occurs, the pressurized As previously noted, for without edit, including any personal compartments such as lavatories, information the commenter provides, to air inside the airplane exits the hole, or opening, in the fuselage until private suites, and crew rest areas, www.regulations.gov, as described in compliance with the partition strength the system of records notice (DOT/ALL– equilibrium is reached. This can result in potentially high air loads on floors, requirements of § 25.365(g) may be 14 FDMS), which can be reviewed at difficult for applicants to achieve and www.dot.gov/privacy. partitions, and bulkheads. Section 25.365(e) addresses the could potentially reduce the safety of Docket: Background documents or structural integrity of the airplane by the airplane since the current regulation comments received may be read at requiring that the airplane be capable of requires all partitions to withstand all http://www.regulations.gov at any time. continued safe flight and landing decompression events. Therefore, Follow the online instructions for following a sudden release of pressure designing compliant lavatories, private accessing the docket or go to the Docket through an opening in any compartment suites, and crew rest areas may not be Operations in Room W12–140 of the (i.e., a ‘‘sudden decompression’’). practical unless the FAA grants relief, West Building Ground Floor at 1200 Section 25.365(g) requires applicants such as an exemption in accordance New Jersey Avenue SE, Washington, to design bulkheads, floors, and with 14 CFR part 11 or an equivalent DC, between 9 a.m. and 5 p.m., Monday partitions, in pressurized compartments level of safety finding in accordance through Friday, except Federal holidays. for occupants, to withstand the sudden with 14 CFR 21.21. FOR FURTHER INFORMATION CONTACT: For decompression conditions specified in B. History questions concerning this action, paragraph (e). Section 25.365(g) also contact Todd Martin, Airframe and requires applicants to take reasonable Amendment 25–54 to § 25.365, 45 FR Cabin Safety Section, AIR–675, design precautions to minimize the 60154, September 11, 1980, introduced Transport Standards Branch, Policy and probability of parts becoming detached the requirement that bulkheads, floors, Innovation Division, Aircraft and injuring seated occupants. and partitions be designed to withstand Certification Service, Federal Aviation For certain smaller compartments on the decompression conditions specified Administration, 2200 South 216th the airplane, such as lavatories, private in the rule. Street, Des Moines, WA 98198; suites, and crew rest areas, it may be In amendment 25–71 to § 25.365, 55 telephone and fax (206) 231–3210; email difficult to achieve compliance with FR 13474, April 10, 1990, the specific [email protected]. § 25.365(g) because a large references to ‘‘bulkheads, floors, and SUPPLEMENTARY INFORMATION: decompression hole, of the size partitions’’ were moved from paragraph specified in § 25.365(e)(2), occurring in (e) to paragraph (g) to stipulate the Authority for This Rulemaking one of these compartments would result passenger protection criteria related to The FAA’s authority to issue rules on in very high air loads on the partitions failure of these structures in occupied aviation safety is found in Title 49 of the that form the compartment. Thus, compartments, regardless of whether United States Code. Subtitle I, Section strengthening the partitions to sustain their failure could interfere with safe 106 describes the authority of the FAA such high loads has been shown to be flight and landing. Administrator. Subtitle VII, Aviation impractical in many cases for these The current rule requires that the Programs, describes in more detail the smaller compartments because it could applicant consider partition failure in scope of the agency’s authority. adversely affect the structural integrity terms of the effects on occupant safety. This rulemaking is issued under the of the aircraft and continued safe flight However, in developing this authority described in Subtitle VII, Part and landing. Further, alternative design requirement, the FAA recognized that A, Subpart III, Section 44701, ‘‘General strategies may impede the structural integrity might not be Requirements.’’ Under that section, the compartment’s intended function. maintained near the decompression FAA is charged with promoting safe Therefore, due to the difficulty of hole. The preamble of the NPRM for flight of civil aircraft in air commerce by safely designing partitions around small amendment 25–71, 53 FR 8742, March prescribing regulations and minimum compartments to withstand the 16, 1988, states, ‘‘The loss of structural standards for the design and decompression without adversely integrity at the opening location or

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physiological effects on occupants are Paragraph (e)(2)—an opening up to a level of safety findings and methods of not considerations of the proposed ‘‘formula’’ size calculated from the compliance for small compartment rule,’’ which indicates the FAA was diameter of the airplane’s fuselage; and design. This proposed change would aware of and accepted this risk to the Paragraph (e)(3)—any other opening also improve certification efficiency by occupant next to the opening location. caused by failures not shown to be eliminating the need for design-by- The FAA has certified numerous extremely improbable. design equivalent level of safety airplanes for which the partition Section 25.365(g) addresses occupant analyses and findings to allow for such strength criteria in § 25.365(e) at safety in that it requires applicants to partition design. Accordingly, the FAA amendment 25–54 or § 25.365(g) at design bulkheads, floors, and partitions, proposes to revise § 25.365(g) to state amendment 25–71 were included in the in pressurized compartments for that partitions adjacent to the opening certification basis. Since the issuance of occupants, to withstand the sudden specified in paragraph (e)(2) need not be amendment 25–54, the FAA has found decompression conditions specified in designed to withstand that condition if compliance on several projects to install paragraph (e). Section 25.365(g) also (1) failure of the partition would not small compartments on these airplanes requires applicants to take reasonable interfere with continued safe flight and based on a finding of equivalent level of design precautions to minimize the landing, and (2) meeting this safety (ELOS) to § 25.365(e) at probability of parts becoming detached decompression condition would be amendment 25–54 or § 25.365(g) at and injuring seated occupants. impractical. amendment 25–71 (as applicable) in For certain smaller compartments on The proposed rule would only apply the airplane, such as lavatories, private accordance with 14 CFR 21.21, the first to partitions, meaning any non- 1 suites, and crew rest areas, it may be of which was made in 1989. structural wall, non-structural floor, or difficult to achieve compliance with The FAA notes, however, that it has non-structural ceiling panel, the failure § 25.365(g) because a large not consistently applied the rule and of which would not compromise the decompression hole, of the size applicants have raised questions about structural integrity of the airplane. The specified in § 25.365(e)(2), occurring in the intent of the rule during recent term ‘‘floor’’ means a structural floor, one of these compartments would result certification programs. such as a passenger or cargo floor that in very high air loads on the partitions carries airplane structural loads. The III. Discussion of the Proposal that form the compartment. Compliance floor of an overhead crew rest area, Section 25.365 addresses the safety is typically demonstrated by either: 1) effects of decompression. When the Strengthening the partition to the extent which is elevated above the main floor, fuselage skin or another part of the that it would not fail, or 2) adding would not be a structural floor because pressurized boundary of an airplane sufficient venting to reduce the loads on it does not carry airplane structural fails for any reason, a decompression the partition, or some combination loads. This type of non-structural floor occurs if the cabin pressure is greater thereof. In some cases, both of these is a partition. The term ‘‘bulkhead,’’ as than the outside air pressure. approaches have been shown to be used in the proposed regulation, means Decompressions can occur due to a impractical because the design cannot a structural pressure bulkhead. The number of causes, such as a fatigue maintain the airplane’s structural FAA considers a non-structural, non- failure, an engine rotor burst, or an integrity or the partition’s intended pressure bulkhead to be a partition explosive or incendiary device. When a function, or a combination thereof. For because it does not carry airplane decompression occurs, the pressurized example, strengthening the partition to structural loads. The applicability of air inside the airplane exits the hole, or the extent that it would not fail can this rule is limited to partitions because opening, in the fuselage until actually increase the loads on the floor, the integrity of bulkheads and floors equilibrium is reached. This can result thereby causing a potentially more must be maintained to ensure continued in potentially high air loads on floors, serious floor failure, which could safe flight and landing. partitions, and bulkheads. The jeopardize continued safe flight either The proposed rule would only allow magnitude of these forces depends on through structural failure or by failure of partitions for the the size of the hole, its location, and the damaging control systems routed decompression condition specified in initial pressure differential between the through the floor. Adding venting § 25.365(e)(2). This decompression cabin and the outside air. would reduce loads on the partition, but condition, referred to as the ‘‘formula’’ Section 25.365(e) requires structural in some cases, it is not possible to add hole size, is typically the most severe integrity of the airplane following a enough venting and also maintain the condition required by § 25.365(e). sudden decompression. The rule intended purpose of the compartment. Partition failure due to the other specifies that the design be able to Additionally, if a large decompression decompression conditions specified in withstand the following sudden hole occurs in one of these § 25.365(e) would continue to be decompression conditions: compartments, the risk to occupants of prohibited because it is practical to Paragraph (e)(1)—penetration of any that compartment from the design partitions to withstand those less pressurized compartment by a portion decompression itself is likely to be significant decompression events. of an engine following engine significant, and exceed any risk from the The exception provided in proposed disintegration; partition collapse. § 25.365(g)(2) only applies to the Therefore, due to the difficulty of occupant safety provision of 1 An ELOS finding is made when the design does safely designing partitions around small § 25.365(g)(1). All partitions would still not comply with the applicable airworthiness provisions, but compensating factors, such as compartments to withstand the be required to meet the requirements in incorporating mitigating features (e.g., lanyards to decompression without adversely § 25.365(e), which requires continued restrain loose parts, and frangible structure to cause affecting the safety of the airplane, the safe flight and landing. For example, if structural failure in a direction away from the seated occupant), provide an equivalent level of FAA proposes to revise § 25.365(g) to flight control cables run through a safety in accordance with 14 CFR 21.21(b)(1) for allow the failure of partitions. This particular partition, and failure of that small compartment design. The FAA documents an proposed change would not impact partition would cause a hazardous or ELOS finding in an ELOS memorandum that safety because it conforms the catastrophic flight control system communicates to the public the rationale for the FAA’s determination of equivalency to the level of regulatory text to longstanding FAA failure, then that partition would still be safety intended by the regulations. practice established through equivalent required to withstand all the

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decompression conditions specified in IV. Regulatory Notices and Analyses B. Regulatory Flexibility Determination § 25.365(e). A. Regulatory Evaluation The Regulatory Flexibility Act of 1980 The proposed rule would also only (Pub. L. 96–354) (RFA) establishes ‘‘as a allow failure of partitions for the Changes to Federal regulations must principle of regulatory issuance that ‘‘formula hole’’ decompression undergo several economic analyses. agencies shall endeavor, consistent with condition of paragraph (e)(2) if the First, Executive Order 12866 and the objectives of the rule and of applicant can show that withstanding Executive Order 13563 direct that each applicable statutes, to fit regulatory and that condition is impractical (i.e., there Federal agency shall propose or adopt a informational requirements to the scale is no way to design the partitions to regulation only upon a reasoned of the businesses, organizations, and withstand the decompression condition determination that the benefits of the governmental jurisdictions subject to of paragraph (e)(2) without adversely intended regulation justify its costs. regulation.’’ To achieve this principle, affecting safety or without affecting the Second, the Regulatory Flexibility Act agencies are required to solicit and functionality of the compartment). In of 1980 (Pub. L. 96–354) requires consider flexible regulatory proposals some cases, depending on the particular agencies to analyze the economic and to explain the rationale for their partition configuration and the formula impact of regulatory changes on small actions to assure that such proposals are decompression hole size for the entities. Third, the Trade Agreements given serious consideration. The RFA airplane, it may be practical to design Act (Pub. L. 96–39) prohibits agencies covers a wide-range of small entities, all partitions to meet the decompression from setting standards that create including small businesses, not-for- condition specified in paragraph (e)(2), unnecessary obstacles to the foreign profit organizations, and small regardless of their location. For commerce of the United States. In governmental jurisdictions. Agencies must perform a review to example, the applicant may be able to developing U.S. standards, the Trade determine whether a rule will have a add venting or make other changes to Act requires agencies to consider significant economic impact on a relieve the decompression loads on the international standards and, where partitions. Under the proposed rule, the substantial number of small entities. If appropriate, that they be the basis of the agency determines that it will, the applicant would only be allowed to U.S. standards. Fourth, the Unfunded agency must prepare a regulatory design for partition failure if there is no Mandates Reform Act of 1995 (Pub. L. flexibility analysis as described in the practical way to design the partitions to 104–4) requires agencies to prepare a RFA. withstand the decompression condition written assessment of the costs, benefits, However, if an agency determines that of paragraph (e)(2). and other effects of proposed or final a rule is not expected to have a For a compartment such as a lavatory, rules that include a Federal mandate significant economic impact on a remote crew rest, or private suite, likely to result in the expenditure by substantial number of small entities, having a solid door is a fundamental State, local, or tribal governments, in the section 605(b) of the RFA provides that feature for the intended use of the aggregate, or by the private sector, of the head of the agency may so certify compartment. While using a curtain in $100 million or more annually (adjusted and a regulatory flexibility analysis is place of a solid door would greatly for inflation with base year of 1995). not required. improve the decompression capability This portion of the preamble This proposed rule would only have of the compartment and is physically summarizes the FAA’s analysis of the impact on transport category airplanes. practical for the purpose of compliance economic impacts of this proposed rule. All United States transport category with § 25.365(g), the FAA accepts that This proposed rule would codify aircraft manufacturers exceed the Small changing the door to a curtain in these current practice and would not result in Business Administration small-entity instances would be impractical because additional costs or significant benefits to criteria of 1,500 employees. the resulting design would not fulfill the airplane manufacturers. As noted If an agency determines that a purpose of the compartment. previously, in some cases, the FAA rulemaking will not result in a significant economic impact on a The second sentence of § 25.365(g) accepted the possibility of local substantial number of small entities, the requires that applicants take reasonable partition failure based on a finding of head of the agency may so certify under design precautions to minimize the equivalent level of safety. This proposed section 605(b) of the RFA. Therefore, probability of parts becoming detached rule would relieve type certification based on the foregoing analysis, as applicants who might otherwise be and injuring occupants while in their provided in section 605(b), the head of seats. This proposal would not change required to submit requests for an the FAA certifies that this rulemaking that requirement. Therefore, in those equivalent level of safety under will not result in a significant economic cases where partitions are not required § 21.21(b)(1). However, cost savings for impact on a substantial number of small to withstand the decompression the FAA would be minimal because the entities. condition of § 25.365(e)(2), the applicant FAA received only two such type must nevertheless take reasonable certification applications in the past 5 C. International Trade Impact design precautions to minimize the years, and would not expect numerous Assessment probability that a failed partition will similar applications in the future. Cost The Trade Agreements Act of 1979 injure an occupant in the compartment. savings for industry would be minimal (Pub. L. 96–39), as amended by the For example, the applicant can employ because the cost of administration of the Uruguay Round Agreements Act (Pub. lanyards or other devices to reduce the FAA’s finding of equivalent safety on L. 103–465), prohibits Federal agencies chance that a failed partition will each applicable certification project is from establishing standards or engaging impact the occupant. The applicant, in not high, even though it is applied in related activities that create this situation, must also add venting, as several times per year. The FAA, unnecessary obstacles to the foreign a reasonable design precaution, to the therefore, has determined that this commerce of the United States. extent practical to reduce the chance the proposed rule is not a ‘‘significant Pursuant to these Acts, the partition will fail as a result of smaller regulatory action’’ as defined in section establishment of standards is not decompression hole sizes. 3(f) of Executive Order 12866. considered an unnecessary obstacle to

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the foreign commerce of the United categorical exclusion identified in comments relating to the economic, States, so long as the standard has a paragraph 5–6.6 of FAA Order 1050.1F environmental, energy, or federalism legitimate domestic objective, such as and involves no extraordinary impacts that might result from adopting the protection of safety, and does not circumstances. the proposals in this document. The operate in a manner that excludes most helpful comments reference a V. Executive Order Determinations imports that meet this objective. The specific portion of the proposal, explain statute also requires consideration of A. Executive Order 13132, Federalism the reason for any recommended international standards and, where The FAA has analyzed this proposed change, and include supporting data. To appropriate, that they be the basis for rule under the principles and criteria of ensure the docket does not contain U.S. standards. The FAA has assessed Executive Order 13132, ‘‘Federalism.’’ duplicate comments, commenters the potential effect of this proposed rule The agency has determined that this should send only one copy of written and determined that it would impose no action would not have a substantial comments, or if comments are filed costs on domestic and international direct effect on the States, or the electronically, commenters should entities and thus has a neutral trade relationship between the Federal submit only one time. impact. Government and the States, or on the The FAA will file in the docket all D. Unfunded Mandates Assessment distribution of power and comments it receives, as well as a report responsibilities among the various summarizing each substantive public Title II of the Unfunded Mandates levels of government, and, therefore, contact with FAA personnel concerning Reform Act of 1995 (Pub. L. 104–4) would not have Federalism this proposed rulemaking. Before acting requires each Federal agency to prepare implications. on this proposal, the FAA will consider a written statement assessing the effects all comments it receives on or before the of any Federal mandate in a proposed or B. Executive Order 13211, Regulations closing date for comments. The FAA final agency rule that may result in an That Significantly Affect Energy Supply, will consider comments filed after the expenditure of $100 million or more (in Distribution, or Use comment period has closed if it is 1995 dollars) in any one year by State, The FAA analyzed this proposed rule possible to do so without incurring local, and tribal governments, in the under Executive Order 13211, ‘‘Actions expense or delay. The agency may aggregate, or by the private sector; such Concerning Regulations that change this proposal in light of the a mandate is deemed to be a ‘‘significant Significantly Affect Energy Supply, comments it receives. regulatory action.’’ The FAA currently Distribution, or Use’’ (May 18, 2001). uses an inflation-adjusted value of $155 Proprietary or Confidential Business The agency has determined that it Information: Commenters should not million in lieu of $100 million. This would not be a ‘‘significant energy proposed rule does not contain such a file proprietary or confidential business action’’ under the executive order and information in the docket. Such mandate; therefore, the requirements of would not be likely to have a significant Title II of the Act do not apply. information must be sent or delivered adverse effect on the supply, directly to the person identified in the E. Paperwork Reduction Act distribution, or use of energy. FOR FURTHER INFORMATION CONTACT The Paperwork Reduction Act of 1995 C. Executive Order 13609, International section of this document, and marked as (44 U.S.C. 3507(d)) requires that the Cooperation proprietary or confidential. If submitting information on a disk or CD ROM, mark FAA consider the impact of paperwork Executive Order 13609, ‘‘Promoting and other information collection the outside of the disk or CD ROM, and International Regulatory Cooperation,’’ identify electronically within the disk or burdens imposed on the public. The promotes international regulatory FAA has determined that there would CD ROM the specific information that is cooperation to meet shared challenges proprietary or confidential. be no new requirement for information involving health, safety, labor, security, collection associated with this proposed environmental, and other issues and to Under 14 CFR 11.35(b), if the FAA is rule. reduce, eliminate, or prevent aware of proprietary information filed F. International Compatibility unnecessary differences in regulatory with a comment, the agency does not place it in the docket. It is held in a In keeping with U.S. obligations requirements. The FAA has analyzed this action under the policies and separate file to which the public does under the Convention on International not have access, and the FAA places a Civil Aviation, it is FAA policy to agency responsibilities of Executive Order 13609, and has determined that note in the docket that it has received conform to International Civil Aviation it. If the FAA receives a request to Organization (ICAO) Standards and this action would have no effect on international regulatory cooperation. examine or copy this information, it Recommended Practices to the treats it as any other request under the maximum extent practicable. The FAA D. Executive Order 13771, Reducing Freedom of Information Act (5 U.S.C. has determined that there are no ICAO Regulation and Controlling Regulatory 552). The FAA processes such a request Standards and Recommended Practices Costs under Department of Transportation that correspond to these proposed This proposed rule is an Executive procedures found in 49 CFR part 7. regulations. Order 13771 deregulatory action. Details F. Availability of Rulemaking G. Environmental Analysis on the regulatory relief provided by this Documents FAA Order 1050.1F identifies FAA proposed rule can be found in the actions that are categorically excluded Regulatory Evaluation section. An electronic copy of rulemaking documents may be obtained from the from preparation of an environmental VI. Additional Information assessment or environmental impact internet by— statement under the National E. Comments Invited 1. Searching the Federal eRulemaking Environmental Policy Act in the The FAA invites interested persons to Portal (http://www.regulations.gov); absence of extraordinary circumstances. participate in this rulemaking by 2. Visiting the FAA’s Regulations and The FAA has determined this submitting written comments, data, or Policies web page at http:// rulemaking action qualifies for the views. The agency also invites www.faa.gov/regulations_policies or

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3. Accessing the Government Printing Issued under authority provided by 49 Docket: For access to the docket to Office’s web page at http:// U.S.C. 106(f), 44701(a), and 44703 in read background documents or www.gpo.gov/fdsys/. Washington, DC, on May 3, 2019. comments received, go to http:// Earl Lawrence, Copies may also be obtained by www.regulations.gov. Executive Director, Aircraft Certification sending a request to the Federal Service. FOR FURTHER INFORMATION CONTACT: Aviation Administration, Office of Tokey Boswell, Chief of Planning and [FR Doc. 2019–09823 Filed 5–14–19; 8:45 am] Rulemaking, ARM–1, 800 Independence Compliance, Midwest Regional Office, BILLING CODE 4910–13–P Avenue SW, Washington, DC 20591, or 601 Riverfront Drive, Omaha, Nebraska by calling (202) 267–9680. Commenters 68102. Phone: 402–661–1534, Email: [email protected]. must identify the docket or notice DEPARTMENT OF THE INTERIOR number of this rulemaking. SUPPLEMENTARY INFORMATION: All documents the FAA considered in National Park Service Background developing this proposed rule, People have long recognized the including economic analyses and 36 CFR Part 7 unique thermal waters that flow from technical reports, may be accessed from [NPS–HOSP–27423;PPMWMWROW2/ the base of Hot Springs Mountain in Hot the internet through the Federal PMP00UP05.YP0000] Springs, Arkansas. For thousands of eRulemaking Portal referenced in item RIN 1024–AE50 years before it became a favored (1) above. vacation destination in the 18th century, List of Subjects in 14 CFR Part 25 Hot Springs National Park; Bicycling and prior to the arrival of early AGENCY: National Park Service, Interior. European explorers journeying west of Aircraft, Aviation safety, Reporting the Mississippi River, Native Americans ACTION: Proposed rule. and recordkeeping requirements. from around the region traveled to the springs and surrounding rocky The Proposed Amendment SUMMARY: The National Park Service proposes to amend the special mountain slopes, quarrying novaculite In consideration of the foregoing, the regulations for Hot Springs National from the hilltops for their tools and Federal Aviation Administration Park to allow bicycle use on a new trail weapons, and drinking and bathing in proposes to amend chapter I of title 14, connection between the Park and the mineral rich waters bubbling from Code of Federal Regulations as follows: property owned by the City of Hot the ground. The first permanent settlers Springs, Arkansas. The new 0.65-mile to reach the Hot Springs area in 1807 PART 25—AIRWORTHINESS trail would provide local residents and were quick to realize the springs’ STANDARDS: TRANSPORT visitors with access in and across the potential as a health resort, and a CATEGORY AIRPLANES Park to an extensive network of bustling town grew up around the hot recreational trails in the City’s springs to provide services for health ■ 1. The authority citation for part 25 Northwoods Urban Forest Park. The seekers. continues to read as follows: new natural surface, multi-use trail To protect this unique national connection would be open to both resource and preserve it for the use of Authority: 49 U.S.C. 106(f), 106(g), 40113, pedestrian and bicycle use. National the public, Congress set aside the 44701, 44702 and 44704. Park Service regulations require springs and adjoining mountains as a ■ 2. Amend § 25.365 by revising promulgation of a special regulation to federal reservation in 1832, making it paragraph (g) to read as follows: designate new trails for bicycle use off the oldest unit of the National Park park roads and outside developed areas. System. Over the next 50 years, the area § 25.365 Pressurized compartment loads. DATES: Comments on the proposed rule transformed from a rough frontier town * * * * * must be received by 11:59 p.m. EST on to an elegant and thriving spa city. In July 15, 2019. 1921, Congress designated the (g)(1) Except as provided in paragraph ADDRESSES: You may submit comments, reservation as Hot Springs National Park (g)(2) of this section, bulkheads, floors, identified by Regulation Identifier (the Park). Today, the 5,500-acre Park and partitions in pressurized Number (RIN) 1024–AE50, by either of contains vegetation, thermal waters, compartments for occupants must be the following methods: cold-water springs, bathhouses and designed to withstand the conditions (1) Electronically: Go to the Federal associated cultural features, nearly 26 specified in paragraph (e) of this eRulemaking Portal: http:// miles of hiking and equestrian trails, section. In addition, reasonable design www.regulations.gov. Follow the and prehistoric and historic novaculite precautions must be taken to minimize instructions for submitting comments. quarries. The National Park Service the probability of parts becoming (2) By hard copy: Mail or hand deliver (NPS) preserves and manages the detached and injuring occupants while to: Superintendent, Hot Springs natural and cultural resources of the in their seats. National Park, 101 Reserve Street, Hot Park for more than 1.5 million annual (2) Partitions adjacent to the opening Springs, AR 71901. visitors. The City of Hot Springs, with specified in paragraph (e)(2) of this Instructions: Comments will not be an approximate population of 37,000, is section need not be designed to accepted by fax, email, or in any way located next to the Park. withstand that condition provided— other than those specified above. All submissions received must include the Pullman Avenue Trail Connection/ (i) Failure of the partition would not words ‘‘National Park Service’’ or Environmental Assessment interfere with continued safe flight and ‘‘NPS’’ and must include the docket The NPS proposes to create a new landing; and number or RIN (1024–AE50) for this 0.65-mile natural surface trail within the (ii) The applicant shows that rulemaking. Comments received may be Park. This new Pullman Avenue Trail designing the partition to withstand the posted without change to http:// Connection would extend north from a condition specified in paragraph (e)(2) www.regulations.gov, including any trailhead at Pullman Avenue and of this section would be impractical. personal information provided. connect the Park with ongoing trail

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development on City property at the NPS must promulgate a special an open exchange of ideas. We have Park’s northern boundary. The NPS regulation in order to designate a new developed this rule in a manner would build the trail using sustainable bicycle trail that requires construction consistent with these requirements. trail construction techniques and activities outside of developed areas. Reducing Regulation and Controlling designate it for both pedestrian and The proposed rule would add a new Regulatory Costs (Executive Order bicycle use. The trail would follow the paragraph (c) to 36 CFR 7.18—Special 13771) natural contours of the site, winding Regulations, Areas of the National Park around obstacles such as trees, large System for Hot Springs National Park. Enabling regulations are considered rocks, and bushes; and would feature After the trail is constructed, the rule deregulatory under guidance shallower grades and wider turns to would require the Superintendent to implementing E.O. 13771 (M–17–21). support user safety, reduce water notify the public prior to designating the This rule would authorize the pooling and erosion, and reduce the trail for bicycle use through one or more Superintendent to allow a recreational overall maintenance costs associated of the methods listed in 36 CFR 1.7, and activity for the public to enjoy and with more complex trail features. This identify the designation on maps experience certain areas within the gently-graded bare soil and bedrock trail available at Park visitor centers and on National Park System that would connection would (1) enhance the Park website (www.nps.gov/hosp). otherwise be prohibited. connectivity within and beyond the Where the proposed trail crosses or Regulatory Flexibility Act Park for the benefit of visitors and intersects other Park trails closed to residents of the City; (2) expand bicycle use, signage would clearly This rule will not have a significant recreational trail use opportunities; and indicate allowed uses and restrictions at economic effect on a substantial number (3) enhance visitor experience and those intersections. The proposed rule of small entities under the Regulatory safety while protecting natural and would also authorize the superintendent Flexibility Act (5 U.S.C. 601 et seq.). cultural resources. No equestrian use or to establish closures, conditions, or This certification is based on motorized uses would be permitted. restrictions for bicycle use on the trail information contained in the economic On February 1, 2019, the NPS after considering public health and analyses found in the report entitled published the Pullman Avenue Trail safety, resource protection, and other Draft Cost-Benefit and Regulatory Connection/Environmental Assessment management activities and objectives, Flexibility Threshold Analyses: (EA). The EA presents two alternatives provided public notice is given under Proposed Special Regulations to for future trail opportunities at the Park, 36 CFR 1.7(a). Bicycle use would not be Designate a New Trail Connection for and identifies one of the alternatives as authorized by the Superintendent until Bicycle Use at Hot Springs National the NPS preferred alternative. Under the the NPS completes the planning and Park. The document may be viewed at preferred alternative, the NPS would environmental review process, http://parkplanning.nps.gov/ construct the Pullman Avenue Trail completes a written determination as PullmanConnection, by clicking on the Connection and designate it for required by 36 CFR 4.30(e)(2), link entitled ‘‘Document List.’’ pedestrian and bicycle use. The EA promulgates a final rule, and completes Small Business Regulatory Enforcement evaluates (1) the suitability of the trail construction. Pullman Avenue Trail Connection for Fairness Act bicycle use; and (2) life cycle Compliance With Other Laws, This rule is not a major rule under 5 maintenance costs, safety Executive Orders and Department U.S.C. 804(2), the Small Business considerations, methods to prevent or Policy Regulatory Enforcement Fairness Act. minimize user conflict, and methods to Regulatory Planning and Review This rule: protect natural and cultural resources (Executive Orders 12866 and 13563) (a) Does not have an annual effect on and mitigate impacts associated with the economy of $100 million or more. bicycle use on the trail in compliance Executive Order 12866 provides that (b) Will not cause a major increase in with 36 CFR 4.30(e)(2). The EA, which the Office of Information and Regulatory costs or prices for consumers, contains a full description of the Affairs in the Office of Management and individual industries, Federal, State, or purpose and need for taking action, the Budget will review all significant rules. local government agencies, or alternatives considered, maps, and the The Office of Information and geographic regions. environmental impacts associated with Regulatory Affairs has determined that (c) Does not have significant adverse the project, may be viewed on the park’s this rule is not significant. effects on competition, employment, planning website at https:// Executive Order 13563 reaffirms the investment, productivity, innovation, or parkplanning.nps.gov/hosp by clicking principles of Executive Order 12866 the ability of U.S.-based enterprises to on the link entitled ‘‘Pullman Avenue while calling for improvements in the compete with foreign-based enterprises. nation’s regulatory system to promote Trail Connection Environmental Unfunded Mandates Reform Act Assessment’’ and then clicking on the predictability, to reduce uncertainty, link entitled ‘‘Document List.’’ and to use the best, most innovative, This rule does not impose an and least burdensome tools for unfunded mandate on State, local, or Proposed Rule achieving regulatory ends. The tribal governments or the private sector This proposed rule would implement executive order directs agencies to of more than $100 million per year. The the preferred alternative in the EA and consider regulatory approaches that rule does not have a significant or authorize the Superintendent to reduce burdens and maintain flexibility unique effect on State, local or tribal designate bicycle use on the Pullman and freedom of choice for the public governments or the private sector. It Avenue Trail Connection. This proposal where these approaches are relevant, addresses public use of national park does not include any existing park feasible, and consistent with regulatory lands, and imposes no requirements on trails, which are not and would not be objectives. Executive Order 13563 other agencies or governments. A opened to bicycles by this proposed emphasizes further that regulations statement containing the information rule. must be based on the best available required by the Unfunded Mandates This proposed rule complies with the science and that the rulemaking process Reform Act (2 U.S.C. 1531 et seq.) is not requirement in 36 CFR 4.30 that the must allow for public participation and required.

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Takings (Executive Order 12630) unless it displays a currently valid OMB Public Availability of Comments control number. This rule does not effect a taking of Before including your address, phone private property or otherwise have National Environmental Policy Act number, email address, or other takings implications under Executive personal identifying information in your Order 12630. A takings implication The NPS has prepared the EA to assessment is not required. determine whether this rule will have a comment, you should be aware that significant impact on the quality of the your entire comment—including your Federalism (Executive Order 13132) human environment under the National personal identifying information—may Under the criteria in section 1 of Environmental Policy Act of 1969. A be made publicly available at any time. Executive Order 13132, the rule does copy of the EA can be found online at While you can ask us in your comment not have sufficient federalism http://parkplanning.nps.gov/ to withhold your personal identifying implications to warrant the preparation PullmanConnection, by clicking on the information from public review, we of a Federalism summary impact link entitled ‘‘Document List.’’ cannot guarantee that we will be able to statement. This proposed rule only Effects on the Energy Supply (Executive do so. affects use of federally-administered Order 13211) lands and waters. It has no outside List of Subjects in 36 CFR Part 7 effects on other areas. A Federalism This rule is not a significant energy National parks, Reporting and summary impact statement is not action under the definition in Executive Recordkeeping requirements. required. Order 13211. A Statement of Energy Effects in not required. In consideration of the foregoing, the Civil Justice Reform (Executive Order National Park Service proposes to 12988) Clarity of This Rule amend 36 CFR part 7 as set forth below: This rule complies with the We are required by Executive Orders requirements of Executive Order 12988. 12866 (section 1(b)(12)) and 12988 PART 7—SPECIAL REGULATIONS, This rule: (section 3(b)(1)(B)), and 13563 (section AREAS OF THE NATIONAL PARK (a) Meets the criteria of section 3(a) 1(a)), and by the Presidential SYSTEM requiring that all regulations be Memorandum of June 1, 1998, to write reviewed to eliminate errors and all rules in plain language. This means ■ 1. The authority citation for part 7 ambiguity and be written to minimize that each rule we publish must: continues to read as follows: litigation; and (b) Meets the criteria of section 3(b)(2) (a) Be logically organized; Authority: 54 U.S.C. 100101, 100751, requiring that all regulations be written (b) Use the active voice to address 320102; Sec. 7.96 also issued under DC Code in clear language and contain clear legal readers directly; 10–137 and DC Code 50–2201.07. standards. (c) Use common, everyday words and ■ 2. Amend § 7.18 by adding paragraph clear language rather than jargon; Consultation With Indian tribes (c) to read as follows: (Executive Order 13175 and (d) Be divided into short sections and Department Policy) sentences; and § 7.18 Hot Springs National Park. (e) Use lists and tables wherever The Department of the Interior strives * * * * * possible. to strengthen its government-to- (c) Bicycle Use. If you feel that we have not met these government relationship with Indian (1) The Superintendent may designate Tribes through a commitment to requirements, send us comments by one of the methods listed in the ADDRESSES all or a portion of the following trail as consultation with Indian tribes and open to bicycle use: recognition of their right to self- section. To better help us revise the governance and tribal sovereignty. We rule, your comments should be as (i) Pullman Avenue Trail Connection have evaluated this rule under the specific as possible. For example, you (full length of the trail approximately criteria in Executive Order 13175 and should tell us the numbers of the 0.65 miles); under the Department’s tribal sections or paragraphs that you find (ii) [Reserved]. unclear, which sections or sentences are consultation policy and have (2) A map showing trails open to determined that tribal consultation is too long, the sections where you feel bicycle use will be available at park not required because the rule will have lists or tables would be useful, etc. visitor centers and posted on the park no substantial direct effect on federally Drafting Information recognized Indian tribes. Nevertheless, website. The Superintendent will in support of the Department of Interior The primary author of this regulation provide notice of all trails designated for and NPS commitment for government- is Megan Apgar, Regulations Program bicycle use in accordance with § 1.7 of to-government consultation, through the Specialist, Division of Regulations, this chapter. The Superintendent may EA process, the NPS initiated Jurisdiction, and Special Park Uses, limit, restrict, or impose conditions on consultation with the four Indian tribes National Park Service. bicycle use, or close any trail to bicycle traditionally associated with the Park. Public Participation use, or terminate such conditions, closures, limits, or restrictions in Paperwork Reduction Act It is the policy of the Department of accordance with § 4.30 of this chapter. This rule does not contain the Interior, whenever practicable, to information collection requirements, afford the public an opportunity to Andrea Travnicek, and a submission to the Office of participate in the rulemaking process. Principal Deputy Assistant Secretary for Fish Management and Budget under the Accordingly, interested persons may and Wildlife and Parks, Exercising the Paperwork Reduction Act is not submit written comments regarding this Authority of the Assistant Secretary for Fish required. We may not conduct or proposed rule by one of the methods and Wildlife and Parks. sponsor and you are not required to listed in the ADDRESSES section of this [FR Doc. 2019–09893 Filed 5–14–19; 8:45 am] respond to a collection of information document. BILLING CODE 4312–52–P

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DEPARTMENT OF TRANSPORTATION and 5 p.m. ET, Monday through Friday, II. Record Retention Requirements Under the except Federal holidays. Safety Act Prior to the FAST Act National Highway Traffic Safety • Fax: (202) 493–2251. III. NHTSA’s Proposed Interpretation of the Administration Regardless of how you submit your FAST Act Record Retention Requirement comments, please be sure you mention IV. Regulatory Analyses and Notices 49 CFR Part 576 the docket number of this document I. Executive Summary [Docket No. NHTSA–2019–0035] located at the top of this notice in your The FAST Act was signed into law on correspondence. RIN 2127–AL81 December 4, 2015. Public Law 114–94. You may call the Docket at 202–366– Section 24403 of the FAST Act directs 9826. Record Retention Requirement the Secretary of Transportation to Note that all comments received will amend the amount of time AGENCY: National Highway Traffic be posted without change to http:// manufacturers of motor vehicles, tires Safety Administration (NHTSA), www.regulations.gov, including any and child restraint systems are required Department of Transportation (DOT). personal information provided. Please to maintain records that contain ACTION: Notice of Proposed Rulemaking see the Privacy Act discussion below. information concerning malfunctions (NPRM). Privacy Act: Anyone is able to search that may be related to motor vehicle the electronic form of all comments safety. In the final rule, the Secretary SUMMARY: This proposal is being issued received into our dockets by the name must lengthen the time that pursuant to the Fixing America’s of the individual submitting the manufacturers must maintain these Surface Transportation (FAST) Act comment (or signing the comment, if records to not less than ten years from which requires the Secretary of submitted on behalf of an association, the date the records were generated or Transportation (Secretary) to extend the business, labor union, etc.). You may acquired. Public Law 114–94, sec. period of time manufacturers of motor review DOT’s complete Privacy Act 24403(a). Based on NHTSA’s experience vehicles, tires and child restraint Statement, in the Federal Register investigating potential defects and systems must retain records concerning published on April 11, 2000. 65 FR overseeing recalls, we have determined defects and malfunctions that may be 19477–78. that a ten-year records retention related to motor vehicle safety under the Confidential Information: If you wish requirement would ensure that the National Traffic and Motor Vehicle to submit any information under a claim agency’s investigative needs are meet Safety Act (Safety Act). Section 24403 of of confidentiality, you should submit without unnecessarily burdening the FAST Act directs the Secretary to two copies of your complete manufacturers of motor vehicles and issue a rule increasing the time of record submission, including the information equipment. In this NPRM, NHTSA is retention to a period not less than ten you claim to be confidential business proposing to extend the record retention years, instead of five years as presently information, and one copy with the requirement for records required to be required under the regulatory claimed confidential business maintained under 49 CFR 576.6 to ten provisions. Pursuant to its delegated information deleted from the document, years. authority, NHTSA is proposing to to the Chief Counsel, NHTSA, at the Since the language of the statute update our regulations in accordance address given below under FOR FURTHER grants the Secretary discretion to extend with this mandate. This proposed INFORMATION CONTACT. In addition, you the period during which manufacturers update is not intended to change the should submit two copies, from which must retain record beyond ten years, we scope of the existing rule, other than as you have deleted the claimed also seek comment on whether there is specifically described in this notice, but confidential business information, to justification for extending the time that is intended to aid in efficiently and Docket Management at the address manufacturers are required to maintain effectively improving the agency’s given above under ADDRESSES. When the records specified in 49 CFR 576.6 to ability to identify safety defects and you send a comment containing fifteen, twenty or twenty-five years. noncompliances. information claimed to be confidential This rulemaking would not require DATES: You should submit comments business information, you should follow manufacturers to retain any new early enough to ensure that Docket the procedures set forth in 49 CFR part information; it would merely require Management receives them not later 512 and include a cover letter setting manufacturers to retain information than July 15, 2019. forth the information specified in our they are already required to retain under confidential business information ADDRESSES: You may submit written 49 CFR part 576 for a longer period of regulation. 49 CFR part 512. comments to the docket number time. This rulemaking also would not Docket: For access to the docket to identified in the heading of this extend the time period that read background documents or document by any of the following manufacturers of motor vehicles and comments received, go to http:// methods: motor equipment are required to retain • Federal eRulemaking Portal: Go to www.regulations.gov and follow the records underlying information reported http://www.regulations.gov. Follow the online instructions for accessing the under 49 CFR part 579. online instructions for submitting dockets or go to the street address listed In accordance with the FAST Act, the comments. above. extended time period would apply to • Mail: Docket Management Facility, FOR FURTHER INFORMATION CONTACT: records in manufacturers’ possession on U.S. Department of Transportation, Thomas Healy, Trial Attorney, Office of the effective date of the rule and records West Building Ground Floor, Rm. W12– the Chief Counsel, National Highway generated or acquired in the future. 140, 1200 New Jersey Avenue SE, Traffic Safety Administration, 1200 New Public Law 114–94, sec. 24403(b). Washington, DC 20590. Jersey Avenue SE, Washington, DC Access to records concerning defects • Hand Delivery or Courier: U.S. 20590 (telephone: 202–366–2992). and malfunctions that may be related to Department of Transportation, West SUPPLEMENTARY INFORMATION: motor vehicle safety is essential for Building Ground Floor, Rm. W12–140, NHTSA to fulfill the Safety Act 1200 New Jersey Avenue SE, Table of Contents objective of identifying safety-related Washington, DC 20590 between 9 a.m. I. Executive Summary defects and noncompliances.

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II. Record Retention Requirements When a trend in consumer complaints an additional 14 million vehicles that Under the Safety Act Prior to the FAST or other data indicates a potential are at least twenty-five years old.4 Act safety-related defect, NHTSA relies on NHTSA has tentatively concluded Part 576 requires manufacturers of information included in manufacturers’ that extending the records retention requirements for records required to be motor vehicles, tires, and child restraint records, along with other agency data, to maintained under 49 CFR 576.6 to ten systems to retain ‘‘all documentary determine whether or not to open a years would ensure that NHTSA has materials, films, tapes, and other formal defect investigation (as access to records pertaining to an information-storing media that contain authorized by title 49 U.S.C. chapter investigation since the record retention information concerning defects and 301—Motor Vehicle Safety). Our period begins the date the records were malfunctions that may be related to proposed approach to extend the time generated. It is NHTSA’s experience that motor vehicle safety.’’ 49 CFR 576.6. manufacturers of motor vehicles, tires in the vast majority of cases, the records These records must be maintained for and child restraint systems must retain most pertinent to a defect investigation use in the investigation and disposition records is based on NHTSA’s experience with the increasing age of motor will be those generated in the previous of defects related to motor vehicle safety ten years because those are the records or noncompliance with Safety Act vehicles and motor vehicle equipment and the importance of records from more likely to show an emerging defect requirements. 49 CFR 576.2. The trend. requirement applies to motor vehicle manufacturers, balanced against our desire to avoid unnecessarily burdening While justified in this instance based manufacturers for records generated or on the age of the vehicle fleet, a ten-year acquired after August 16, 1969 and to manufacturers of motor vehicles and motor vehicle equipment. long records retention period is of motor vehicle equipment manufacturers significant length when compared to for records in their possession, Based on our evaluation of the records retention periods of similar generated, or acquired on or after foregoing factors, NHTSA is proposing scope of other operating administrations August 9, 2002. 49 CFR 576.3. to extend the records retention period with in US DOT 5 and federal agencies Manufacturers of motor vehicles, child for records required to be maintained that regulate motor vehicles and child restraint systems, and tires must under 49 CFR 576.6 to ten years. products.6 The agency believes it should currently keep the records required to NHTSA contends that a records only move beyond the ten-year period be maintained by 49 CFR 576.6 for five retention period of ten years will ensure required in the FAST Act if it has clear years after they are generated or that manufacturers will preserve records evidence that additional time is needed. acquired. 49 CFR 576.5(a). that NHTSA needs to conduct defect NHTSA tentatively concludes that the Manufacturers of motor vehicles and and noncompliance investigations benefits of extending the records motor vehicle equipment must also keep without imposing an undue record retention period beyond ten years do documents underlying reporting retention burden on manufacturers. not outweigh any burden or costs to required by 49 CFR part 579 for five Increases in the age of the vehicle manufacturers that would result in a years after they are generated or fleet since the time the five-year records lengthened retention period. acquired. 49 CFR 576.5(b). However; retention requirement was established In addition to extending the record according to 49 CFR 576.5(c), in 1974 1 and Congress’ extension of the retention period applicable to manufacturers of motor vehicles and period during which vehicle and manufacturers of motor vehicles, the motor vehicle equipment are not equipment manufacturers are required FAST Act also requires us to extend the required to keep copies of documents to provide a free remedy under 49 records retention requirements reported to NHTSA as required by 49 U.S.C. 30120 to fifteen years after first applicable to child restraint and tire CFR parts 573, 577, and 579. No purchase both support extending the manufacturers. While Congress did not manufacturer is required to keep record retention period in part 576. The provide discretion to establish a shorter duplicates according to 49 CFR 576.7. average age of the United States light records retention period for child restraint system and tire manufacturers, III. NHTSA’s Proposed Retention vehicle fleet has been trending upward the manner in which these items differ Requirement reaching 11.6 years in 2016.2 In 1974 the average age of passenger cars was from motor vehicles means that the The FAST Act vests authority in the 5.7 years and the average age of trucks costs and burdens of extending the Secretary to increase the required time was 7 years.3 As of 2015, there are 44 records retention period in Part 576 for manufacturers must retain records million vehicles on the road between manufacturers of child restraints and under the Safety Act. Pursuant to 49 sixteen and twenty-four years old and CFR 1.95 and 501.8, this authority has 4 Average age of cars on U.S. roads breaks record, been delegated to NHTSA. The USA Today (July 29, 2015), http:// 1 provision of the FAST Act requiring an 39 FR 30045 (Aug. 20, 1974). www.usatoday.com/story/money/2015/07/29/new- 2 Vehicles Getting Older: Average Age of Light car-sales-soaring-but-cars-getting-older-too/ extension of the record retention Cars and Trucks in U.S. Rises Again in 2016 to 11.6 30821191/ (last visited May 11, 2018) (citing an IHS requirement applicable to motor vehicle Years, HIS Markit Says, IHS Markit (Nov. 22, 2016), Automotive study). and motor vehicle equipment https://news.ihsmarkit.com/press-release/ 5 The Federal Railroad Administration requires manufacturers gave the Secretary automotive/vehicles-getting-older-average-age-light- railroads to retain records on employee injuries and cars-and-trucks-us-rises-again-201 (last visited illnesses and highway user injuries for five years discretion to determine the amount of Sept. 19, 2018). after the end of the calendar year to which they time records are kept as long as the time 3 Average Age of Automobiles and Trucks in Use, relate. 49 CFR 225.27. The Federal Motor Carrier is ‘‘a period not less than ten years.’’ 1970–1999, Fed. Highway Admin., https:// Safety Administration requires companies to retain Public Law 114–94, sec. 24403(a). www.fhwa.dot.gov/ohim/onh00/line3.htm (last certain records related to employee drug and visited Sept. 19, 2018). From 1977 to 2017 the alcohol testing for five years. 49 CFR 382.401. NHTSA has determined that ten years is average of medium and heavy duty trucks increased 6 The Consumer Product Safety Commission the appropriate length of time that from 11.6 years to 17.3 years and the average age requires manufacturers of products subject to a manufacturers of motor vehicles, tires, of recreational vehicles increased from 4.5 years to children’s product safety rule to maintain records and child restraints should be required 15.8 years. See Average Age of Automobiles and on certification testing and design changes for five Trucks in Operation in the United States, Bureau years. 16 CFR 1107.26. The Environmental to retain records concerning defects and of Transp. Statistics, https://www.bts.gov/content/ Protection Agency requires manufacturers to retain malfunctions that may be related to average-age-automobiles-and-trucks-operation- records related to certification testing for a period motor vehicle safety. united-states (last visited Sept. 19, 2018) . of five years. 40 CFR 600.005.

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tires will be different than the costs and Lengthening the record retention 49 CFR 579.21–26. Motor vehicle, tire burdens to motor vehicle manufacturers. period in part 576 beyond ten years and child restraint manufacturers who Like motor vehicle manufacturers, would result in manufacturers being do not meet the production thresholds manufacturers of child restraint systems required to retain records generated late to be required to report production are required to provide a free remedy for in the life of a vehicle, likely well after information and the number of property fifteen years after purchase.7 49 U.S.C. any defect trend has emerged. NHTSA damage claims, warranty claims, 30120(g). However, manufacturers of also contends that manufacturers have consumer claims and field reports they child restraint systems typically label an incentive to retain relevant records receive and manufacturers of other the restraint with an expiration date longer than required by part 576 in motor vehicle equipment are required to after which the manufacturer order to properly document the scope of report incidents involving death. 49 recommends that caregivers no longer any potential recalls and for other CFR 579.27. use the restraint. The expiration date business purposes. Based on NHTSA’s NHTSA is not extending the period provided by the manufacturer is usually experience investigating potential for which manufacturers are required to six to seven years after the date of defects and overseeing recalls, we have retain records underlying information manufacture of the restraint. found that many manufacturers of motor reported to NHTSA pursuant to 49 CFR Manufacturers of tires are required to vehicles and equipment currently retain part 579 in this rulemaking. NHTSA provide a free remedy for a period of some of the records subject to this rule contends that most of the records five years after the purchase of the tire. for periods of time longer than the related to part 579 reporting that We seek comments on the costs and current five-year minimum. manufacturers of motor vehicles, tires, burdens of the proposed rule to As the length of time that vehicles and child restraint systems are required manufacturers of child restraints and remain on the road has increased in to retain pursuant to 49 CFR 576.5(b) tires. recent years, the amount of information must also be retained under 49 CFR generated and retained by vehicle NHTSA has previously considered 576.6. Thus, the effects of extending the manufacturers has also increased.12 extending the records retention time that records underlying Extending the records retention requirements in part 576 to correspond information reported under part 579 requirement increases the total volume with the free remedy period in the must be retained would be limited to of information that must be stored either Safety Act and declined to do so. After motor vehicle equipment manufacturers electronically or physically. NHTSA issuing a final rule in 1995 to increase who do not manufacturer child restraint expects most records retained under systems or tires. NHTSA does not the records retention requirement in part 576 to be in electronic format. part 576 from five years to eight years anticipate that the benefits to NHTSA’s While NHTSA anticipates the costs of programs of extending the record to correspond to the free remedy period electronic storage attributable to this in effect at the time, NHTSA rescinded retention requirements for the motor proposal to be minimal, NHTSA does vehicle equipment manufacturers that the rule and restored the five-year not believe that there is currently records retention requirement.8 At the do not have record retention justification to extend the records responsibilities under 49 CFR 576.6 time, NHTSA determined that the costs retention requirements in part 576 would outweigh the added burdens to of extending the records requirement to beyond the length required by the FAST 9 these manufacturers of retaining eight years outweigh the benefits. Act. For these reasons, NHTSA believes records. When the Transportation Recall that extending the records retention NHTSA requests comment on Enhancement, Accountability, and period in part 576 to ten years best manufacturers’ current records retention Documentation Act, Public Law 106– achieves NHTSA’s need to preserve practices. NHTSA also requests 414, extended the free remedy period access to records for investigations applicable to motor vehicles and while minimizing any costs to comments on the burden of increasing equipment to ten years, NHTSA manufacturers of retaining records. the records retention period for records proposed extending the record retention In addition to requiring manufacturers required to be maintained by 49 CFR requirements in part 576 applicable to of motor vehicles, child restraint 576.6 to fifteen, twenty, or twenty-five motor vehicle manufacturers and child systems, and tires to retain all records years, any costs that might be associated restraint manufacturers from five years involving information concerning with storage of electronic records, and to ten years.10 The comments received malfunctions that may be related to the total volume of records retained in response to the proposal asserted that motor vehicle safety, Part 576 also pursuant to part 576 by a manufacturer. there was no justification for extending requires motor vehicle and motor IV. Regulatory Analyses and Notices the records retention requirement to ten vehicle equipment manufacturers to years and that records generated in the retain all the records underlying A. Executive Order 12866, Executive last five years are the records most information reported under 49 CFR part Order 13563, and DOT Regulatory relevant to discovering a defect.11 In 579. Part 579 requires that motor Policies and Procedures deciding to retain the existing retention vehicle, child restraint system and tires NHTSA has considered the impact of period at that time, NHTSA concluded manufacturers with certain production this rulemaking action under Executive that the agency’s investigative needs volumes report production information; Order 12866, Executive Order 13563, were adequately met by the five-year information on incidents involving and the DOT’s regulatory policies and records retention period. death and injury; and the number of procedures. This proposed rule was not property damage claims, warranty reviewed by the Office of Management 7 While there are limits in the Safety Act on the claims, consumer claims and field and Budget (OMB) under Executive period for which manufacturers are required to reports received by the manufacturer.13 Order 12866, ‘‘Regulatory Planning and provide a free remedy, there is no limit on the time for which NHTSA can order a manufacturer to Review.’’ It is not considered to be 12 See Confidential Business Information. 81 FR notify consumers of a defect. significant under Executive Order 12866 57, 51 (Jan. 4, 2016) (discussing the increase in 8 61 FR 274 (Jan. 4, 1996). volume of electronic information submitted to 9 Id. NHTSA during defect investigations). claims they received and tire manufacturers are 10 67 FR 45873, 45868 (July 10, 2002). 13 Child restraint system manufacturers are not only required to report the number of property 11 Id. required to report the number of property damage damage claims and warranty adjustments.

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or the Department’s regulatory policies action on small entities. I hereby certify through regulations. A person is not and procedures. that this proposed rule would not have required to respond to a collection of This proposal would amend 49 CFR a significant impact on a substantial information by a Federal agency unless part 576 to require motor vehicle, tire, number of small entities. The proposed the collection displays a valid OMB and child restraint systems rule would affect manufacturers of clearance number. This proposal would manufacturers to maintain records for a motor vehicles, tires and child restraint lengthen the time that manufacturers longer period than the currently systems, a few of which may qualify as must retain certain records, which is required five-year time period. This small entities. Such manufacturers are considered to be an information proposed rule would not require expected to have fewer records, because collection requirement, as that term is manufacturers to maintain any records they produce fewer motor vehicles, tires defined by the OMB in 5 CFR part 1320. they are not already required to and child restraint systems than the In compliance with the PRA, we maintain, but instead is designed to larger manufacturers. Accordingly, the announce that NHTSA is seeking lengthen the time manufacturers retain burden imposed on smaller comment on a revision of a currently certain records. Extending the period of manufacturers to retain these records approved collection. time to ten years is expected to lead to should be small. In fact, NHTSA Agency: National Highway Traffic various unquantifiable benefits such as believes there would be some years Safety Administration (NHTSA). formalizing manufacturers’ records during which the small manufacturers Title: 49 CFR part 576, Record retention practices and ensuring that, in would not be required to retain any Retention. all instances, records that must be records under this regulation. Type of Request: Revision of a retained under section 576.6 are Additionally, this proposed rule will currently approved collection. available in the case of a NHTSA merely extend how long manufacturers OMB Control Number: 2127–0042. investigation for a minimum of ten keep the required records, amounting to Form Number: The collection of this years. a minimal impact on small businesses. information uses no standard form. Based on NHTSA’s experience Thus, NHTSA believes that the Requested Expiration Date of conducting investigations and regulation does not impose a significant Approval: Three years from the date of overseeing recalls, NHTSA contends burden on small manufacturers. approval. that most manufacturers of motor Summary of the Collection of vehicles subject to this proposal already D. Executive Order 13132 (Federalism) Information: Manufacturers must retain retain records for a longer period than NHTSA has examined today’s rule certain records for a period of five years currently specified in part 576. It is pursuant to Executive Order 13132 (64 from which they were created or NHTSA’s position that those FR 43255, Aug. 10, 1999) and concluded acquired. 49 CFR part 576. NHTSA manufacturers of motor vehicles or that no additional consultation with requires manufacturers of motor equipment who do currently retain States, local governments, or their vehicles, tires, and child restraint records for longer than ten years would representatives is mandated beyond the systems to retain one copy of all records be able to adjust their record retention rulemaking process. The agency has that contain information concerning systems in response to this rulemaking determined that the rulemaking would malfunctions that may be related to with minimal cost. Because we expect not have sufficient federalism motor vehicle safety for a period of five any costs, benefits, or savings associated implications to warrant consultation calendar years after the record is with this rulemaking to be minimal, we with State and local officials or the generated or acquired by the have not prepared a separate economic preparation of a federalism summary manufacturer under 49 CFR part 576. analysis for this rulemaking. impact statement. The proposed rule Manufacturers of motor vehicles and would apply to manufacturers of motor equipment must also retain for five B. Executive Order 13771 vehicles and motor vehicle equipment years the underlying records related to Executive Order 13771, titled and would not have a substantial direct early warning reporting (EWR) ‘‘Reducing Regulation and Controlling effect on the States, on the relationship information submitted under 49 CFR Regulatory Costs,’’ directs that, unless between the national government and part 579. The proposed rule would prohibited by law, whenever an the States, or on the distribution of amend part 576 to require the executive department or agency power and responsibilities among the manufacturers of motor vehicles, tires publicly proposes for notice and various levels of government. Thus, and child restraint systems to retain all comment or otherwise promulgates a Executive Order 13132 is not implicated records that contain information new regulation, it shall identify at least and consultation with State and local concerning malfunctions that may be two existing regulations to be repealed. officials is not required. related to motor vehicle safety for ten In addition, any new incremental costs years instead of five. associated with new regulations shall, to E. National Environmental Policy Act Description of the Need for the the extent permitted by law, be offset by NHTSA has analyzed this proposed Information and Use of the Information the elimination of existing costs. Only rule for the purposes of the National those rules deemed significant under Environmental Policy Act. The agency The information collection supports section 3(f) of Executive Order 12866, has determined that the implementation the Department’s Strategic goal of safety. ‘‘Regulatory Planning and Review,’’ are of this action will not have any The records that are required to be subject to these requirements. As significant impact on the quality of the retained per 49 CFR part 576 are used discussed above, this rule is not a human environment. to promptly identify potential safety- significant rule under Executive Order related defects in motor vehicles and F. Paperwork Reduction Act 12866 and, accordingly, is not subject to motor vehicle equipment in the United the offset requirements of 13771. Under the procedures established by States. When a trend in incidents arising the Paperwork Reduction Act of 1995 from a potentially safety-related defect C. Regulatory Flexibility Act (PRA) (44 U.S.C. 3501, et. seq.), Federal is discovered, NHTSA relies on this In compliance with the Regulatory agencies must obtain approval from the information, along with other agency Flexibility Act, 5 U.S.C. 601, et seq., OMB for each collection of information data, to determine whether or not to NHTSA has evaluated the effects of this they conduct, sponsor, or require open a formal defect investigation (as

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authorized by Title 49 U.S.C. chapter Estimate of the Total Annual Reporting the total annual cost associated with the 301—Motor Vehicle Safety). NHTSA and Recordkeeping Burden Resulting burden hours is $804,000 (40,020 normally becomes aware of possible From the Collection of Information annual burden hours × $20 per hour). safety-related defects because it receives To the extent that there is an Because the proposed revision to this consumer complaints. ‘‘average’’ record retention, we estimate information collection would not increase the burden hours of the Agency experience has shown that the manufacturers’ burden at 40 hours each for a subtotal of 40,000 hours collection, the costs associated with the manufacturers receive significantly burden hours for the collection also are more consumer complaints than does (1,000 respondents × 40 hours). In the case of record retention by large not expected to increase as result of this the agency. This is because the proposal. consumer with the product does not manufacturers, which often consists of know whether their particular vehicle or thousands of pages of records, on Comments Are Invited on equipment has a problem that is average, it would probably take about • Whether the Department’s estimate common with an entire group of over 40 hours to properly retain the for the burden of record retention is records. On the other hand, the typical vehicles or equipment. Whereas accurate. small business that must retain only a consumers know the manufacturer of • Whether there are any costs for single record should only need about their vehicle or equipment, relatively electronic storage of records. five (5) minutes to fully comply with the • The volume of records retained few know how to file a complaint with regulation. Some small manufacturers the National Highway Traffic Safety pursuant to part 576. may not have to retain any records at • What the burden of record retention Administration. Complaints filed with all. We believe that 40 hours per the manufacturer give the agency a fair becomes if the rulemaking requires manufacturer is a reasonable estimate of manufacturers to retain records for a indication of how widespread the the recordkeeping burden given the period of ten, fifteen, twenty, or twenty- potential problem may be. difference in the amount of time it takes five years. Additionally, consumer complaints for different manufacturers to retain A comment to OMB is most effective may contain information relating to records. We believe that the if OMB receives it within 30 days of older vehicles and equipment that modifications to this collection will not publication. Send comments to the becomes increasingly useful to NHTSA increase the burden of recordkeeping, as Office of Information and Regulatory over time. A ten-year period of record manufacturers are only required to keep Affairs, Office of Management and retention aids the agency in identifying records already maintained for a longer Budget, 725 17th Street NW, possible safety-related defects in aging time; manufacturers are not required to Washington, DC 20503, Attn: NHTSA vehicles which may become apparent retain any new records. Desk Officer. PRA comments are due In addition, there are approximately through manufacturers’ records. Since within 30 days following publication of 23,600 equipment manufacturers vehicle life is ever increasing, the this document in the Federal Register. (excluding tires and child seat restraint records related to older vehicles remain The agency recognizes that the systems manufacturers) whose record collection of information contained in pertinent. The value of the information retention requirements under part 576 in records relating to aging vehicles may today’s proposed rule may be subject to are limited to the documents underlying revision in response to public increase over time as NHTSA or their part 579 reporting requirements. comments. manufacturers may become aware of The manufacturers’ part 579 newly emerging safety-related defects. requirements include only the reporting G. National Technology Transfer and Extending the records retention of incidents involving deaths. Based on Advancement Act requirement to ten years will ensure that the number of death reports submitted Under the National Technology NHTSA has access to records relevant to to date by these equipment Transfer and Advancement Act of 1995 NHTSA’s investigative needs. manufacturers, we estimate that an (NTTAA) (Pub. L. 104–113), ‘‘all Federal additional 20 equipment manufacturers Description of the Likely Respondents agencies and departments shall use have record retention requirements technical standards that are developed (Including Estimated Number, and imposed by part 576. We estimate that or adopted by voluntary consensus Proposed Frequency of Response to the it will take one hour each to maintain standards bodies, using such technical Collection of Information) the necessary records for a subtotal standards as a means to carry out policy × Approximately one thousand burden of 20 hours (20 respondents objectives or activities determined by manufacturers of motor vehicles and one hour). We are not modifying the the agencies and departments.’’ The equipment (including tires and child records retention requirements for these amendment in today’s proposed rule manufacturers, so the record keeping restraint systems) are required to would extend the time manufacturers burden will not increase. Accordingly, maintain records. Part 576 requires the retain records, and does not involve any the estimate of total annual burden voluntary consensus standards as it manufacturers to retain only one copy of hours is 40,020 hours (1,000 relates to NHTSA or this rulemaking. all records concerning malfunctions that respondents × 40 hours plus 20 may relate to motor vehicle safety. The respondents × 1 hour) for 49 CFR part H. Executive Order 12988 (Civil Justice manufacturers are permitted to store 576. Reform) this information by any means they The agency estimates that the hourly With respect to the review of the wish and transfer the information from cost associated with the burden hours of promulgation of a new regulation, one means of storage to another as often 40,020 is approximately $20 per hour. section 3(b) of Executive Order 12988, as they wish. No information is This is somewhat higher than the usual ‘‘Civil Justice Reform’’ (61 FR 4729, Feb. submitted to the government under this assumed hourly cost, reflecting the fact 7, 1996), requires that Executive regulation, and NHTSA does not that although some of these hours agencies make every reasonable effort to conduct routine enforcement activities would be computer time, a number of ensure that the regulation: (1) Clearly to ensure that the manufacturers have the hours may be clerical time. specifies the preemptive effect; (2) retained these records. Accordingly, the agency estimates that clearly specifies the effect on existing

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Federal law or regulation including all K. Regulation Identifier Number (RIN) accessed at https:// _ provisions repealed, circumscribed, The Department of Transportation www.whitehouse.gov/omb/fedreg displaced, impaired, or modified; (3) assigns a regulation identifier number reproducible. DOT’s guidelines may be provides a clear legal standard for (RIN) to each regulatory action listed in accessed at https://www.rita.dot.gov/bts/ affected conduct rather than a general the Unified Agenda of Federal sites/rita.dot.gov.bts/files/subject_areas/ standard, while promoting Regulations. The Regulatory Information statistical_policy_and_research/data_ simplification and burden reduction; (4) Service Center publishes the Unified quality_guidelines/html/ clearly specifies the retroactive effect, if Agenda in April and October of each guidelines.html. any; (5) specifies whether year. You may use the RIN contained in administrative proceedings are to be the heading at the beginning of this How can I be sure that my comments required before parties may file suit in document to find this action in the were received? court; (6) adequately defines key terms; Unified Agenda. If you submit your comments by mail and (7) addresses other important issues L. Public Participation and wish Docket Management to notify affecting clarity and general you upon its receipt of your comments, draftsmanship under any guidelines How do I prepare and submit comments? enclose a self-addressed, stamped issued by the Attorney General. This postcard in the envelope containing document is consistent with that Your comments must be written and your comments. Upon receiving your requirement. in English. To ensure that your comments, Docket Management will Pursuant to this Order, NHTSA has comments are correctly filed in the return the postcard by mail. considered these issues and determined Docket, please include the docket that this proposed rule would not have number of this document in your How do I submit confidential business any retroactive or preemptive effect. The comments. Your comments must not be information? 14 proposed rule would only apply to more than 15 pages long. We established this limit to encourage you If you wish to submit any information documents in manufacturers’ possession under a claim of confidentiality, you at the time the rule goes into effect and to write your primary comments in a concise fashion. However, you may should submit three copies of your documents generated or acquired by complete submission, including the manufacturers in the future. NHTSA attach necessary additional documents information you claim to be confidential notes further that there is no to your comments. There is no limit on the length of the attachments. business information, to the Chief requirement that individuals submit a Please submit your comments by any Counsel, NHTSA, at the address given petition for reconsideration or pursue of the following methods: above under FOR FURTHER INFORMATION other administrative proceeding before • Federal eRulemaking Portal: Go to CONTACT. When you send a comment they may file suit in court. http://www.regulations.gov. Follow the containing information claimed to be I. Unfunded Mandates Reform Act instructions for submitting comments confidential business information, you on the electronic docket site by clicking should include a cover letter setting The Unfunded Mandates Reform Act on ‘‘Help’’ or ‘‘FAQ.’’ forth the information specified in our • Mail: Docket Management Facility, of 1995 (Pub. L. 104–4) requires confidential business information M–30, U.S. Department of agencies to prepare a written assessment regulation.16 of the costs, benefits, and other effects Transportation, West Building, Ground of proposed or final rules that include Floor, Rm. W12–140, 1200 New Jersey In addition, you should submit a a Federal mandate likely to result in the Avenue SE, Washington, DC 20590. copy, from which you have deleted the • expenditure by State, local, or tribal Hand Delivery or Courier: West claimed confidential business governments, in the aggregate, or by the Building Ground Floor, Room W12–140, information, to the Docket by one of the private sector, of more than $100 1200 New Jersey Avenue SE, between 9 methods set forth above. million annually (adjusted for inflation a.m. and 5 p.m. Eastern Time, Monday through Friday, except Federal holidays. Will the agency consider late with base year of 1995). This proposed • comments? rule would not result in expenditures by Fax: (202) 493–2251. If you are submitting comments State, local, or tribal governments, in the electronically as a PDF (Adobe) file, we We will consider all comments aggregate, or by the private sector in ask that the documents submitted be received before the close of business on excess of $100 million annually scanned using Optical Character the comment closing date indicated (adjusted for inflation with base year of Recognition (OCR) process, thus above under DATES. To the extent 1995). allowing the agency to search and copy possible, we will also consider 15 comments received after that date. J. Executive Order 13211 certain portions of your submissions. Please note that pursuant to the Data Therefore, if interested persons believe Executive Order 13211 (66 FR 28355, Quality Act, in order for substantive that any new information the Agency May 18, 2001) applies to any data to be relied upon and used by the places in the docket affects their rulemaking that: (1) Is determined to be agency, it must meet the information comments, they may submit comments economically significant as defined quality standards set forth in the OMB after the closing date concerning how under Executive Order 12866, and is and DOT Data Quality Act guidelines. the agency should consider that likely to have a significantly adverse Accordingly, we encourage you to information for the final rule. If a effect on the supply of, distribution of, consult the guidelines in preparing your comment is received too late for us to or use of energy; or (2) that is designated comments. OMB’s guidelines may be consider in developing a final rule by the Administrator of the Office of (assuming that one is issued), we will Information and Regulatory Affairs as a 14 See 49 CFR 553.21. consider that comment as an informal significant energy action. This 15 Optical character recognition (OCR) is the suggestion for future rulemaking action. process of converting an image of text, such as a rulemaking is not subject to Executive scanned paper document or electronic fax file, into Order 13211. computer-editable text. 16 See 49 CFR part 512.

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How can I read the comments submitted received into any of our dockets by the § 576.5 Basic requirements. by other people? name of the individual submitting the (a) Each manufacturer of motor comment (or signing the comment, if You may read the materials placed in vehicles, child restraint systems, and submitted on behalf of an association, the docket for this document (e.g., the tires shall retain, as specified in § 576.7 business, labor union, etc.). You may comments submitted in response to this review DOT’s complete Privacy Act of this part, all records described in document by other interested persons) Statement in the Federal Register § 576.6 of this part for a period of ten at any time by going to http:// published on April 11, 2000 (65 FR calendar years from the date on which www.regulations.gov. Follow the online 19477–78). they were generated or acquired by the instructions for accessing the dockets. manufacturer. You may also read the materials at the List of Subjects in 49 CFR Part 576 * * * * * Docket Management Facility by going to Motor vehicle safety, Tires, Reporting the street address given above under and recordkeeping requirements. Issued in Washington, DC, under authority delegated in 49 CFR 1.95 and 501.5. ADDRESSES. The Docket Management For the reasons discussed in the Facility is open between 9 a.m. and 5 preamble, NHTSA proposes to amend Heidi Renate King, p.m. Eastern Time, Monday through 49 CFR part 576 as follows: Deputy Administrator. Friday, except Federal holidays. [FR Doc. 2019–09844 Filed 5–14–19; 8:45 am] PART 576—RECORD RETENTION M. Privacy Act Statement BILLING CODE 4910–59–P Anyone is able to search the ■ 1. Amend § 576.5 by revising electronic form of all comments paragraph (a) to read as follows:

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Notices Federal Register Vol. 84, No. 94

Wednesday, May 15, 2019

This section of the FEDERAL REGISTER potential persons who are to respond to Number of Respondents: 30. contains documents other than rules or the collection of information that such Frequency of Responses: Reporting: proposed rules that are applicable to the persons are not required to respond to On occasion. public. Notices of hearings and investigations, the collection of information unless it Total Burden Hours: 240. committee meetings, agency decisions and displays a currently valid OMB control rulings, delegations of authority, filing of Kimble Brown, number. petitions and applications and agency Departmental Information Clearance Officer. statements of organization and functions are Risk Management Agency [FR Doc. 2019–10002 Filed 5–14–19; 8:45 am] examples of documents appearing in this section. Title: General Administrative BILLING CODE 3410–08–P Regulations; Interpretations of Statutory and Regulatory Provisions. DEPARTMENT OF AGRICULTURE OMB Control Number: 0563–0055. DEPARTMENT OF AGRICULTURE Summary of Collection: Section 533 of Submission for OMB Review; the Agricultural Research, Extension, Submission for OMB Review; Comment Request and Education Reform Act of 1998 (1998 Comment Request Research Act) requires the Federal Crop May 10, 2019. May 13, 2019. Insurance Corporation (FCIC) to publish The Department of Agriculture has The Department of Agriculture has regulation on how FCIC will provide a submitted the following information submitted the following information final agency determination in response collection requirement(s) to OMB for collection requirement(s) to OMB for to certain inquiries. Consistent with review and clearance under the section 506(r) of the Act and 7 CFR part review and clearance under the Paperwork Reduction Act of 1995, 400, subpart X in accordance with the Paperwork Reduction Act of 1995, Public Law 104–13. Comments are Federal Crop Insurance Act, as Public Law 104–13. Comments are requested regarding: Whether the amended, FCIC revised section 20 of the requested regarding; whether the collection of information is necessary Common Crop Insurance Policy Basic collection of information is necessary for the proper performance of the Provisions, published at 7 CFR 457.8, to for the proper performance of the functions of the agency, including require the FCIC to provide functions of the agency, including whether the information will have interpretations of policy provisions and whether the information will have practical utility; the accuracy of the procedures (handbooks, manuals, practical utility; the accuracy of the agency’s estimate of burden including memoranda, and bulletins) when any agency’s estimate of burden including the validity of the methodology and dispute in mediation, arbitration, or the validity of the methodology and assumptions used; ways to enhance the litigation requires interpretation of a assumptions used; ways to enhance the quality, utility and clarity of the policy provision or procedure. quality, utility and clarity of the information to be collected; and ways to Need and Use of the Information: information to be collected; and ways to minimize the burden of the collection of FCIC will use the requester’s name and minimize the burden of the collection of information on those who are to address to provide a response. Federal information on those who are to respond, including through the use of crop insurance is a national program respond, including through the use of appropriate automated, electronic, with all producers receiving the same appropriate automated, electronic, mechanical, or other technological policy for the same crop and insurance mechanical, or other technological collection techniques or other forms of providers are required to use procedures collection techniques or other forms of information technology. issued by FCIC in the service and information technology. Comments regarding this information adjustment of such policies to ensure Comments regarding this information collection received by June 14, 2019 that all producers are treated alike and collection received by June 14, 2019 will be considered. Written comments none receive special benefits or will be considered. Written comments should be addressed to: Desk Officer for treatment because of the crop they should be addressed to: Desk Officer for Agriculture, Office of Information and produce, the insurance provider that Agriculture, Office of Information and Regulatory Affairs, Office of insures them, or who hears their Regulatory Affairs, Office of Management and Budget (OMB), New disputes. FCIC issued Manager’s Management and Budget (OMB), OIRA_ Executive Office Building, 725 17th Bulletin MGR–05–018 on October 7, [email protected] or fax (202) Street NW, Washington, DC 20502. 2005, to provide the criteria for 395–5806 and to Departmental Commenters are encouraged to submit requesting an interpretation of Clearance Office, USDA, OCIO, Mail their comments to OMB via email to: procedure to inquire about the meaning Stop 7602, Washington, DC 20250– [email protected] or or applicability of procedure. The 7602. Copies of the submission(s) may fax (202) 395–5806 and to Departmental requirements for this collection are be obtained by calling (202) 720–8958. Clearance Office, USDA, OCIO, Mail necessary for FCIC to provide an An agency may not conduct or Stop 7602, Washington, DC 20250– interpretation of statutory and sponsor a collection of information 7602. Copies of the submission(s) may regulatory provisions upon request. If unless the collection of information be obtained by calling (202) 720–8958. the requested information is not displays a currently valid OMB control An agency may not conduct or collected with each submission, FCIC number and the agency informs sponsor a collection of information would not be able to comply with the potential persons who are to respond to unless the collection of information statutory mandates. the collection of information that such displays a currently valid OMB control Description of Respondents: Business persons are not required to respond to number and the agency informs or other for-profit; Farms. the collection of information unless it

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displays a currently valid OMB control Total Burden Hours: 150,000. SUPPLEMENTARY INFORMATION: The number. purpose of the meeting is to: Kimble Brown, 1. Elect a Chairperson; Food and Nutrition Service Departmental Information Collection 2. Discuss current status of RAC; and Clearance Officer. 3. Discuss, recommend, and approve Title: Uniform Grant Application for [FR Doc. 2019–10005 Filed 5–14–19; 8:45 am] new Title II projects. Non-Entitlement Discretionary Grants. BILLING CODE 3410–30–P The meeting is open to the public. OMB Control Number: 0584–0512. The agenda will include time for people to make oral statements of three minutes Summary of Collection: The Food and DEPARTMENT OF AGRICULTURE Nutrition Service (FNS) has a number of or less. Individuals wishing to make an oral statement should request in writing non-entitlement discretionary grant Forest Service by Monday, May 20, 2019, to be programs to collect the information from scheduled on the agenda. Anyone who grant applicants needed to evaluate and South Central Idaho Resource Advisory Committee would like to bring related matters to rank applicants and protect the integrity the attention of the committee may file of the grantee selection process. All FNS AGENCY: Forest Service, USDA. written statements with the committee discretionary grant programs will be ACTION: Notice of meeting. staff before or after the meeting. Written eligible, but not required to use the comments and requests for time for oral uniform grant application package. The SUMMARY: The South Central Idaho comments must be sent to Julie Thomas, authorities for these grants vary. The Resource Advisory Committee (RAC) RAC Coordinator, 370 American term ‘‘grant’’ in this submission refers will meet in Jerome, Idaho. The Avenue, Jerome, Idaho 83338; by email only to non-entitlement discretionary committee is authorized under the to [email protected], or via facsimile at grants or cooperative agreements. Secure Rural Schools and Community 208–423–7570. Discretionary grant announcements Self-Determination Act (the Act) and Meeting Accommodations: If you are include a number of information operates in compliance with the Federal a person requiring reasonable Advisory Committee Act. The purpose collections, including a ‘‘project accommodation, please make requests of the committee is to improve description’’ (program narrative), budget in advance for sign language collaborative relationships and to interpreting, assistive listening devices, information, disclosure of lobbying provide advice and recommendations to activities certification, and disclosure of or other reasonable accommodation. For the Forest Service concerning projects access to the facility or proceedings, Corporate Felony Convictions and and funding consistent with Title II of please contact the person listed in the Corporate Federal Tax Delinquencies. the Act. section titled FOR FURTHER INFORMATION The requirements for the program DATES: The meeting will be held on CONTACT. All reasonable narrative statement are based on the Wednesday, May 29, 2019, from 9 a.m. accommodation requests are managed requirements for program narrative to 3 p.m. Mountain Standard Time. on a case by case basis. statements described in section 1.c (5) of All RAC meetings are subject to Dated: May 7, 2019. OMB Circular A–102 and OMB A–110 cancellation. For updated status of the (as implemented at USDA 7 CFR part meeting prior to attendance, please Frank Beum, 3015, 3016 and 3019); and will apply to contact the person listed under FOR Acting Associate Deputy Chief, National Forest System. all types of grantees; State and local FURTHER INFORMATION CONTACT. [FR Doc. 2019–10136 Filed 5–14–19; 8:45 am] governments, non-profit organizations, ADDRESSES: The meeting will be held at institutions of higher education, the Idaho Fish and Game Office, 324 BILLING CODE 3411–15–P hospitals, and for profit organizations. South 417 East, Jerome, Idaho. RAC information can be found at the Need and Use of the Information: The COMMISSION ON CIVIL RIGHTS primary users of the information following website: https:// www.fs.usda.gov/main/sawtooth/ collected from the applicant are FNS Notice of Public Meeting of the Utah workingtogether. Advisory Committee and other Federal staff who will serve Written comments may be submitted on a panel to systematically review, as described under SUPPLEMENTARY AGENCY: U.S. Commission on Civil evaluate, and approve the grant/ INFORMATION. All comments, including Rights. cooperative agreement applications and names and addresses when provided, ACTION: Announcement of meeting. recommend the applicants most likely are placed in the record and are to meet program objectives and most available for public inspection and SUMMARY: Notice is hereby given, responsive to the solicitation. The copying. The public may inspect pursuant to the provisions of the rules selection criteria will be contained in comments received at the Sawtooth and regulations of the U.S. Commission the Request for Application package. Supervisors Office, 370 American on Civil Rights (Commission) and the Without this information, FNS will not Avenue, Jerome, Idaho. Please call Federal Advisory Committee Act have adequate data to select appropriate ahead at 208–423–7500 to facilitate (FACA) that the meeting of the Utah grantees or evaluate which grants entry into the building. Advisory Committee (Committee) to the should be continued, or monitor FOR FURTHER INFORMATION CONTACT: Julie Commission will be held at 12:00 p.m. financial reporting requirements. Thomas, RAC Coordinator, by phone at (Mountain Time) Friday, June 14, 2019. The purpose of this meeting is for the Description of Respondents: State, 208–423–7500, or via email at Committee to review their project Local, or Tribal Government; Business [email protected]. proposal on the gender wage gap. or other for-profit; Not for profit Individuals who use DATES: The meeting will be held on institutions. telecommunication devices for the deaf (TDD) may call the Federal Information Friday, June 14, 2019 at 12:00 p.m. MT. Number of Respondents: 829. Relay Service (FIRS) at 1–800–877–8339 FOR FURTHER INFORMATION CONTACT: Ana Frequency of Responses: Reporting: between 8 a.m. and 8 p.m., Eastern Victoria Fortes (DFO) at afortes@ Other (one-time). Standard Time, Monday through Friday. usccr.gov or (213) 894–3437.

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SUPPLEMENTARY INFORMATION: Dated: May 9, 2019. I. Abstract Public Call Information: Dial: 866– David Mussatt, The Census Bureau plans to request 556–2513; Conference ID: 6813696. Supervisory Chief, Regional Programs Unit. an extension of the current OMB This meeting is available to the public [FR Doc. 2019–09954 Filed 5–14–19; 8:45 am] approval to conduct a variety of small- through the following toll-free call-in BILLING CODE P scale questionnaire pretesting activities number: 866–556–2513, conference ID under this generic clearance. A block of number: 6813696. Any interested hours will be dedicated to these member of the public may call this DEPARTMENT OF COMMERCE activities for each of the next three years. OMB will be informed in writing number and listen to the meeting. Census Bureau Callers can expect to incur charges for of the purpose and scope of each of calls they initiate over wireless lines, these activities, as well as the time Proposed Information Collection; frame and the number of burden hours and the Commission will not refund any Comment Request; Generic Clearance incurred charges. Callers will incur no used. The number of hours used will for Questionnaire Pretesting Research not exceed the number set aside for this charge for calls they initiate over land- purpose. line connections to the toll-free AGENCY: U.S. Census Bureau, This research program will be used by telephone number. Persons with hearing Commerce. the Census Bureau and survey sponsors impairments may also follow the ACTION: Notice. to improve questionnaires and proceedings by first calling the Federal SUMMARY: The Department of procedures, reduce respondent burden, Relay Service at 1–800–877–8339 and Commerce, as part of its continuing and ultimately increase the quality of providing the Service with the effort to reduce paperwork and data collected in the Census Bureau conference call number and conference respondent burden, invites the general censuses and surveys. The clearance ID number. public and other Federal agencies to will be used to conduct pretesting of Members of the public are entitled to take this opportunity to comment on decennial, demographic, and economic make comments during the open period proposed and/or continuing information census and survey questionnaires prior at the end of the meeting. Members of collections, as required by the to fielding them. Pretesting activities the public may also submit written Paperwork Reduction Act of 1995. will involve one of the following comments; the comments must be DATES: To ensure consideration, written methods for identifying measurement received in the Regional Programs Unit comments must be submitted on or problems with the questionnaire or within 30 days following the meeting. before July 15, 2019. survey procedure: Cognitive interviews, focus groups, respondent debriefing, Written comments may be mailed to the ADDRESSES: Direct all written comments Western Regional Office, U.S. to Jennifer Jessup, Departmental behavior coding of respondent/ Commission on Civil Rights, 300 North Paperwork Clearance Officer, interviewer interaction, and split panel Los Angeles Street, Suite 2010, Los Department of Commerce, Room 6616, tests. Angeles, CA 90012. They may be faxed 14th and Constitution Avenue NW, II. Method of Collection to the Commission at (213) 894–0508, or Washington, DC 20230 (or via the Any of the following methods may be emailed Ana Victoria Fortes at afortes@ internet at [email protected]). You may used: Mail, telephone, face-to-face; usccr.gov. Persons who desire also submit comments, identified by paper-and-pencil, CATI, CAPI, internet, additional information may contact the Docket Number USBC–2019–0004, to mobile device, or IVR. Regional Programs Unit at (213) 894– the Federal e-Rulemaking Portal: http:// 3437. www.regulations.gov. All comments III. Data Records and documents discussed received are part of the public record. OMB Control Number: 0607–0725. during the meeting will be available for No comments will be posted to http:// Form Number(s): Various. public viewing prior to and after the www.regulations.gov for public viewing Type of Review: Regular submission. meetings at https://www.facadatabase. until after the comment period has Affected Public: Individuals or gov/FACA/FACAPublicViewCommittee closed. Comments will generally be households, businesses or other for Details?id=a10t0000001gzltAAA. Please posted without change. All Personally profit, farms. click on the ‘‘Committee Meetings’’ tab. Identifiable Information (for example, Estimated Number of Respondents: Records generated from these meetings name and address) voluntarily 5,500 per year. may also be inspected and reproduced submitted by the commenter may be Estimated Time per Response: 1 hour. at the Regional Programs Unit, as they publicly accessible. Do not submit Estimated Total Annual Burden become available, both before and after Confidential Business Information or Hours: 5,500 hours annually. the meetings. Persons interested in the otherwise sensitive or protected Estimated Total Annual Cost to work of this Committee are directed to information. You may submit Public: There is no cost to the the Commission’s website, https:// attachments to electronic comments in respondent other than time to answer www.usccr.gov, or may contact the Microsoft Word, Excel, or Adobe PDF the information request. Regional Programs Unit at the above file formats. Respondent’s Obligation: Voluntary. email or street address. FOR FURTHER INFORMATION CONTACT: Legal Authority: Data collection for Requests for additional information or this project is authorized under the Agenda copies of the information collection authorizing legislation for the I. Welcome instrument(s) and instructions should questionnaire being tested. This may be II. Approval of April 16, 2019 Meeting be directed to Jennifer Hunter Childs, Title 13, Sections 131, 141, 161, 181, Minutes U.S. Census Bureau, 4600 Silver Hill 182, 193, and 301 for Census Bureau- III. Review Project Proposal Road, Washington, DC 20233–9150, sponsored surveys, and Title 13 for IV. Public Comment (202) 603–4827 (or via the internet at surveys sponsored by other Federal V. Next Steps [email protected]). agencies. We do not now know what VI. Adjournment SUPPLEMENTARY INFORMATION other titles will be referenced, since we

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do not know what survey questionnaires sectors deemed critical to U.S. national SUPPLEMENTARY INFORMATION: will be pretested during the course of security. The information gathered is I. Abstract the clearance. necessary to determine the health and competitiveness as well as the needs of IV. Request for Comments The United States and several other these critical market segments in order countries have increased the Comments are invited on: (a) Whether to maintain a strong U.S. industrial effectiveness of their respective controls the proposed collection of information base. over international trade in strategic is necessary for the proper performance Affected Public: Business or other for- commodities by means of an Import of the functions of the agency, including profit organizations. Certificate procedure. For the U.S. whether the information shall have Frequency: On Occasion. importer, this procedure provides that, practical utility; (b) the accuracy of the Respondent’s Obligation: Mandatory. where required by the exporting agency’s estimate of the burden This information collection request country, the importer submits an (including hours and cost) of the may be viewed at reginfo.gov http:// international import certificate to the proposed collection of information; (c) www.reginfo.gov/public/. Follow the U.S. Government to certify that he/she ways to enhance the quality, utility, and instructions to view Department of will import commodities into the clarity of the information to be Commerce collections currently under United States and will not reexport such collected; and (d) ways to minimize the review by OMB. commodities, except in accordance with Written comments and burden of the collection of information the export control regulations of the recommendations for the proposed on respondents, including through the United States. The U.S. Government, in information collection should be sent use of automated collection techniques turn, certifies that such representations or other forms of information within 30 days of publication of this _ have been made. technology. notice to OIRA Submission@ Comments submitted in response to omb.eop.gov. II. Method of Collection this notice will be summarized and/or Sheleen Dumas, Submitted electronically or on paper. included in the request for OMB Departmental Lead PRA Officer, Office of the approval of this information collection; Chief Information Officer, Commerce III. Data they also will become a matter of public Department. OMB Control Number: 0694–0017. record. [FR Doc. 2019–09999 Filed 5–14–19; 8:45 am] Form Number(s): BIS–645P. Sheleen Dumas, BILLING CODE 3510–33–P Type of Review: Regular submission. Departmental Lead PRA Officer, Office of the Affected Public: Business or other for- Chief Information Officer, Commerce Department. DEPARTMENT OF COMMERCE profit organizations. [FR Doc. 2019–10021 Filed 5–14–19; 8:45 am] Estimated Number of Respondents: Bureau of Industry and Security 195. BILLING CODE 3510–07–P Proposed Information Collection; Estimated Time per Response: 16 Comment Request; International minutes. DEPARTMENT OF COMMERCE Import Certificate Estimated Total Annual Burden Hours: 52. Bureau of Industry and Security AGENCY: Bureau of Industry and Estimated Total Annual Cost to Security, Commerce. Public: $0. Submission for OMB Review; ACTION: Notice. Comment Request Respondent’s Obligation: Voluntary. SUMMARY: The Department of Legal Authority: Public Law 95–223 The Department of Commerce will Commerce, as part of its continuing Sec 203. International Emergency submit to the Office of Management and effort to reduce paperwork and Economic Powers Act. Budget (OMB) for clearance the respondent burden, invites the general following proposal for collection of public and other Federal agencies to IV. Request for Comments information under the provisions of the take this opportunity to comment on Comments are invited on: (a) Whether Paperwork Reduction Act (44 U.S.C. proposed and/or continuing information Chapter 35). the proposed collection of information collections, as required by the is necessary for the proper performance Agency: Bureau of Industry and Paperwork Reduction Act of 1995. Security. of the functions of the agency, including DATES: Title: National Security and Critical To ensure consideration, written whether the information shall have Technology Assessments of the U.S. comments must be submitted on or practical utility; (b) the accuracy of the Industrial Base. before July 15, 2019. agency’s estimate of the burden Form Number(s): N/A. ADDRESSES: Direct all written comments (including hours and cost) of the OMB Control Number: 0694–0119. to Jennifer Jessup, Departmental proposed collection of information; (c) Type of Review: Regular submission. Paperwork Clearance Officer, ways to enhance the quality, utility, and Estimated Total Annual Burden Department of Commerce, 1401 clarity of the information to be Hours: 308,000 hours. Constitution Avenue NW, Room 6616, collected; and (d) ways to minimize the Estimated Number of Respondents: Washington, DC 20230 (or via the burden of the collection of information 28,000. internet at [email protected].) on respondents, including through the Estimated Time per Response: 8 to 14 FOR FURTHER INFORMATION CONTACT: use of automated collection techniques hours per response. Requests for additional information or or other forms of information Needs and Uses: The Department of copies of the information collection technology. Commerce, in coordination with the instrument and instructions should be Comments submitted in response to Department of Defense and other directed to Mark Crace, BIS ICB Liaison, this notice will be summarized and/or Federal agencies, conducts survey (202) 482–8093 or at mark.crace@ included in the request for OMB assessments of U.S. industrial base bis.doc.gov. approval of this information collection;

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they also will become a matter of public report that compiles and evaluates Dated: May 10, 2019. record. potential datasets and recommends Tracey L. Thompson, which datasets are appropriate for Acting Deputy Director, Office of Sustainable Sheleen Dumas, assessment analyses. The assessment Fisheries, National Marine Fisheries Service. Departmental Lead PRA Officer, Office of the webinars produce a report that describes [FR Doc. 2019–10086 Filed 5–14–19; 8:45 am] Chief Information Officer, Commerce the fisheries, evaluates the status of the Department. BILLING CODE 3510–22–P stock, estimates biological benchmarks, [FR Doc. 2019–10022 Filed 5–14–19; 8:45 am] projects future population conditions, BILLING CODE 3510–07–P and recommends research and DEPARTMENT OF COMMERCE monitoring needs. The product of the Review Workshop is an Assessment National Oceanic and Atmospheric DEPARTMENT OF COMMERCE Summary documenting panel opinions Administration National Oceanic and Atmospheric regarding the strengths and weaknesses RIN 0648–XH030 Administration of the stock assessment and input data. Participants for SEDAR Workshops are Pacific Fishery Management Council; RIN 0648–XH004 appointed by the Gulf of Mexico, South Public Meeting Atlantic, and Caribbean Fishery AGENCY: Fisheries of the Gulf of Mexico; Management Councils and NOAA National Marine Fisheries Southeast Data, Assessment, and Fisheries Southeast Regional Office, Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Review (SEDAR); Public Meeting HMS Management Division, and Commerce. AGENCY: National Marine Fisheries Southeast Fisheries Science Center. ACTION: Notice of public meeting. Service (NMFS), National Oceanic and Participants include data collectors and Atmospheric Administration (NOAA), database managers; stock assessment SUMMARY: The Pacific Fishery Commerce. scientists, biologists, and researchers; Management Council’s (Pacific Council) ACTION: Notice of SEDAR 61 Assessment constituency representatives including Ad Hoc Climate and Communities Core Webinar V for Gulf of Mexico red fishermen, environmentalists, and Team (CCCT) will hold a meeting, grouper. NGO’s; International experts; and staff which is open to the public. of Councils, Commissions, and state and DATES: The meeting will be held on SUMMARY: The SEDAR 61 stock federal agencies. Thursday, May 30 and Friday, May 31, assessment process for Gulf of Mexico The items of discussion during the 2019, from 9 a.m. until the completion red grouper will consist of an In-person Assessment Webinar are as follows: of business on each day. Workshop, and a series of data and 1. Using datasets and initial ADDRESSES: assessment webinars. See assessment analysis recommended from The meeting will be held at the Sheraton Portland Airport, Cascade SUPPLEMENTARY INFORMATION. the In-person Workshop, panelists will C Room, 8235 NE Airport Way, DATES: employ assessment models to evaluate The SEDAR 61 Assessment Portland, OR 97220; telephone: (503) Webinar V will be held May 30, 2019, stock status, estimate population benchmarks and management criteria, 281–2500. from 11 a.m. to 1 p.m. Eastern Time. Council address: Pacific Fishery and project future conditions. ADDRESSES: The meeting will be held Management Council, 7700 NE via webinar. The webinar is open to 2. Participants will recommend the most appropriate methods and Ambassador Place, Suite 101, Portland, members of the public. Those interested OR 97220. in participating should contact Julie A. configurations for determining stock status and estimating population FOR FURTHER INFORMATION CONTACT: Dr. Neer at SEDAR (see FOR FURTHER Kit Dahl, Pacific Council; telephone: INFORMATION CONTACT) to request an parameters. Although non-emergency issues not (503) 820–2422. invitation providing webinar access contained in this agenda may come SUPPLEMENTARY INFORMATION: The information. Please request webinar before this group for discussion, those purpose of this meeting is for the CCCT invitations at least 24 hours in advance issues may not be the subject of formal to gain a full understanding of climate of each webinar. change scenario planning SEDAR address: 4055 Faber Place action during this meeting. Action will be restricted to those issues specifically methodologies and begin developing a Drive, Suite 201, North Charleston, SC plan for a Pacific Council-focused 29405. identified in this notice and any issues arising after publication of this notice scenario planning exercise as part of the FOR FURTHER INFORMATION CONTACT: Julie that require emergency action under Fishery Ecosystem Plan Climate and A. Neer, SEDAR Coordinator; (843) 571– section 305(c) of the Magnuson-Stevens Communities Initiative. In March 2019 4366; email: [email protected]. Fishery Conservation and Management the Pacific Council formed the CCCT SUPPLEMENTARY INFORMATION: The Gulf Act, provided the public has been and assigned it specific planning tasks of Mexico, South Atlantic, and notified of the intent to take final action to report back on at the September 2019 Caribbean Fishery Management to address the emergency. Council meeting. These tasks are to Councils, in conjunction with NOAA refine the scenario topic used in the Fisheries and the Atlantic and Gulf Special Accommodations exercise, develop a detailed timeline for States Marine Fisheries Commissions The meeting is physically accessible the scenario planning process (to be have implemented the Southeast Data, to people with disabilities. Requests for conducted between the September 2019 Assessment and Review (SEDAR) sign language interpretation or other and March 2020 Pacific Council process, a multi-step method for auxiliary aids should be directed to the meetings), and identify participants in determining the status of fish stocks in Council office (see ADDRESSES) at least 5 the scenario planning exercise. As the Southeast Region. SEDAR is a multi- business days prior to each workshop. necessary, the CCCT also may plan step process including: (1) Data Note: The times and sequence specified in future meetings or webinars to complete Workshop, (2) a series of assessment this agenda are subject to change. this assignment. webinars, and (3) A Review Workshop. Although non-emergency issues not The product of the Data Workshop is a Authority: 16 U.S.C. 1801 et seq. contained in the meeting agenda may be

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discussed, those issues may not be the RP/EA describes and proposes • In Person: Written and oral subject of formal action during this restoration project alternatives comments may be submitted at the meeting. Action will be restricted to considered by the Open Ocean TIG to public meeting on June 4, 2019 and those issues specifically listed in this restore natural resources and ecological written comments may be submitted document and any issues arising after services injured or lost as a result of the during public webinars on June 11 and publication of this document that Deepwater Horizon oil spill. The Open June 13, 2019 (see Invitation to require emergency action under section Ocean TIG evaluated these alternatives Comment below). 305(c) of the Magnuson-Stevens Fishery under criteria set forth in the OPA FOR FURTHER INFORMATION CONTACT: Conservation and Management Act, natural resource damage assessment National Oceanic and Atmospheric provided the public has been notified of regulations, and also evaluated the Administration—Laurie Rounds, the intent to take final action to address environmental consequences of the [email protected], (850) 934– the emergency. restoration alternatives in accordance 9284. with NEPA. The proposed projects are Special Accommodations consistent with the restoration SUPPLEMENTARY INFORMATION: This meeting is physically accessible alternatives selected in the Deepwater Introduction to people with disabilities. Requests for Horizon Oil Spill: Final Programmatic sign language interpretation or other Damage Assessment and Restoration On April 20, 2010, the mobile auxiliary aids should be directed to Mr. Plan/Programmatic Environmental offshore drilling unit Deepwater Kris Kleinschmidt, (503) 820–2411, at Impact Statement (PDARP/PEIS). The Horizon, which was being used to drill least ten business days prior to the purpose of this notice is to inform the a well for BP Exploration and meeting date. public of the availability of the Draft RP/ Production, Inc. (BP), in the Macondo Dated: May 10, 2019. EA and to seek public comments on the prospect (Mississippi Canyon 252– Tracey L. Thompson, document. MC252), experienced a significant explosion, fire, and subsequent sinking Acting Deputy Director, Office of Sustainable DATES: The Open Ocean TIG will Fisheries, National Marine Fisheries Service. consider public comments received on in the Gulf of Mexico, resulting in an unprecedented volume of oil and other [FR Doc. 2019–10082 Filed 5–14–19; 8:45 am] or before July 1, 2019. discharges from the rig and from the BILLING CODE 3510–22–P Public Meetings: The Open Ocean TIG will conduct one public meeting and wellhead on the seabed. The Deepwater two webinars to facilitate the public Horizon oil spill is the largest off shore DEPARTMENT OF COMMERCE review and comment on the Draft RP/ oil spill in U.S. history, discharging EA. Each of the public meeting and millions of barrels of oil over a period National Oceanic and Atmospheric webinars will include a presentation of of 87 days. In addition, well over one Administration the Draft RP/EA. Both written and oral million gallons of dispersants were applied to the waters of the spill area in RIN 0648–XG958 public comments will be taken at the public meeting. Only written comments an attempt to disperse the spilled oil. Notice of Availability of the Deepwater will be taken through the public An undetermined amount of natural gas Horizon Oil Spill Open Ocean Trustee webinars. Comments will also be taken was also released into the environment Implementation Group Draft through submission online or through as a result of the spill. Restoration Plan 2 and Environmental U.S. mail (see Submitting Comments The Deepwater Horizon Federal and Assessment: Fish, Sea Turtles, Marine below). Public meetings and webinars State natural resource trustees (DWH Mammals, and Mesophotic and Deep will be held on June 4 (public meeting), Trustees) conducted the natural Benthic Communities June 11 (webinar), and June 13 resource damage assessment (NRDA) for (webinar). The full meeting schedule is the Deepwater Horizon oil spill under AGENCY: National Marine Fisheries listed in SUPPLEMENTARY INFORMATION OPA (OPA; 33 U.S.C. 2701 et seq.). Service (NMFS), National Oceanic and below. Pursuant to OPA, Federal and State Atmospheric Administration (NOAA), agencies act as trustees on behalf of the ADDRESSES: Department of Commerce. Obtaining Documents: You may public to assess natural resource injuries ACTION: Notice of availability; request download the Draft RP/EA at: http:// and losses and to determine the actions for comments. www.gulfspillrestoration.noaa.gov/ required to compensate the public for those injuries and losses. OPA further SUMMARY: In accordance with the Oil restoration-areas/open-ocean. Alternatively, you may request a CD of instructs the designated trustees to Pollution Act of 1990 (OPA), the develop and implement a plan for the National Environmental Policy Act the Draft RP/EA (see FOR FURTHER INFORMATION CONTACT below). Also, you restoration, rehabilitation, replacement, (NEPA), and a Consent Decree with BP or acquisition of the equivalent of the Exploration & Production Inc. (BP),1 the may view the document at any of the public facilities listed in Appendix G. injured natural resources under their Deepwater Horizon Federal natural trusteeship, including the loss of use resource trustee agencies for the Open Submitting Comments: You may submit comments on the Draft RP/EA by and services from those resources from Ocean Trustee Implementation Group the time of injury until the time of (Open Ocean TIG) have prepared a Draft one of the following methods: • Via the Web: http://www.gulfspill restoration to baseline (the resource Restoration Plan 2 and Environmental quality and conditions that would exist Assessment (Draft RP/EA). The Draft restoration.noaa.gov/restoration-areas/ open-ocean; if the spill had not occurred) is • complete. 1 Consent Decree among Defendant BP Via U.S. Mail: U.S. Fish and Exploration & Production Inc. (‘‘BPXP’’), the United Wildlife Service, P.O. Box 29649, The Deepwater Horizon Trustees are: States of America, and the States of Alabama, Atlanta, GA 30345. Please note that • U.S. Department of the Interior Florida, Louisiana, Mississippi, and Texas entered mailed comments must be postmarked (DOI), as represented by the National in In re: Oil Spill by the Oil Rig ‘‘Deepwater Horizon’’ in the Gulf of Mexico, on April 20, 2010, on or before the comment deadline of 45 Park Service, U.S. Fish and Wildlife MDL No. 2179 in the United States District Court days following publication of this notice Service, and Bureau of Land for the Eastern District of Louisiana. to be considered; or Management;

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• National Oceanic and Atmospheric On February 7, 2018 the Open Ocean • Reducing Sea Turtle Entanglement Administration (NOAA), on behalf of TIG announced that it had initiated from Recreational Fishing Debris- Not the drafting of its first and second post Preferred, $1,113,600. U.S. Department of Commerce; settlement draft restoration plans; and • Reducing Sea Turtle Bycatch at • U.S. Department of Agriculture that the first plan would include Recreational Fishing Sites- Not (USDA); restoration projects for Birds and Preferred, $1,329,000. • Sturgeon, while the second plan, U.S. Environmental Protection Marine Mammals Agency (EPA); noticed here, would include restoration • • State of Louisiana Coastal projects for Sea Turtles, Marine Reducing Impacts to Cetaceans Protection and Restoration Authority, Mammals, Fish and Water Column During Disasters by Improving Response Invertebrates, and Mesophotic and Deep Activities- Preferred, $4,287,000. Oil Spill Coordinator’s Office, • Department of Environmental Quality, Benthic Communities. Compilation of Environmental, Threats, and Animal data for Cetacean Department of Wildlife and Fisheries, Overview of the OO TIG Draft RP/EA and Department of Natural Resources; Population Health Analyses—Preferred, The Draft RP/EA is being released in • State of Mississippi Department of $5,808,500. accordance with OPA NRDA regulations • Environmental Quality; Reduce Impacts of Anthropogenic in the Code of Federal Regulations • State of Alabama Department of Noise on Cetaceans—Preferred, (CFR) at 15 CFR part 990, NEPA (42 Conservation and Natural Resources and $8,992,200. U.S.C. 4321 et seq.), the Consent Decree, • Reduce and Mitigate Vessel Strike Geological Survey of Alabama; and the Final PDARP/PEIS. Mortality of Cetaceans—Preferred, • State of Florida Department of In the Draft RP/EA, the Open Ocean $3,834,000. Environmental Protection and Fish and TIG analyzes 23 alternatives and • Assessment of Northern Gulf of Wildlife Conservation Commission; and proposes 18 preferred alternatives for • Mexico Shelf Small Cetacean Health, State of Texas: Texas Parks and the following restoration types: Fish and Habitat. Use, and Movement Patterns— Wildlife Department, Texas General Water Column Invertebrates, Sea Not Preferred, $4,620,000. Land Office, and Texas Commission on Turtles, Marine Mammals, and Environmental Quality. Mesophotic and Deep Benthic Mesophotic and Deep Benthic The Trustees reached and finalized a Communities: Communities settlement of their natural resource • Mapping, Ground-Truthing, and Fish and Water Column Invertebrates damage claims with BP in an April 4, Predictive Habitat Modeling—Preferred, • 2016, Consent Decree approved by the Reduction of Post-Release Mortality $35,909,000. United States District Court for the from Barotrauma in Gulf of Mexico Reef • Habitat Assessment and Eastern District of Louisiana. Pursuant Fish Recreational Fisheries- Preferred, Evaluation—Preferred, $52,639,000. to that Consent Decree, restoration $30,011,000. • Coral Propagation Technique • projects in the Open Ocean Restoration Better Bycatch Reduction Devices Development—Preferred, $16,951,000. Area are now selected and implemented for the Gulf of Mexico Commercial • Active Management and by the Open Ocean TIG. The Open Shrimp Trawl Fishery- Preferred, Protection—Preferred, $20,689,000. Ocean TIG is composed of the following $17,171,000. • Habitat Characterization at Known • federal Trustees: NOAA; DOI; EPA; and Communication Networks and High Priority Sites—Not Preferred, USDA. Mapping Tools to Reduce Bycatch— $21,500,000. This restoration planning activity is Phase 1- Preferred, $4,416,000. • The Open Ocean TIG also analyzes a proceeding in accordance with the Restoring for Bluefin Tuna via No Action alternative. One or more PDARP/PEIS. Information on the Fishing Depth Optimization- Preferred, alternatives may be selected for Restoration Types being considered in $6,175,000. implementation by the Open Ocean TIG • Reduce the Impacts of Ghost the Draft RP/EA, as well as the OPA in the Final RP/EA or in future Fishing by Removing Derelict Fishing criteria against which project ideas are restoration plans. Gear from Marine and Estuarine being evaluated, can be viewed in the The Open Ocean TIG has examined Habitats- Not Preferred, $6,128,000. PDARP/PEIS (http://www.gulfspill the injuries assessed by the DWH restoration.noaa.gov/restoration- Sea Turtles Trustees and evaluated restoration planning/gulf-plan) and in the • Gulf of Mexico Sea Turtle Atlas- alternatives to address the injuries. In Overview of the PDARP/PEIS (http:// Preferred, $5,700,000. the Draft RP/EA, the Open Ocean TIG www.gulfspillrestoration.noaa.gov/ • Identifying Methods to Reduce Sea presents to the public its draft plan for restoration-planning/gulf-plan). Turtle Bycatch in the Reef Fish Bottom providing partial compensation to the public for injured natural resources and Background Longline Fishery- Preferred, $290,000. • Developing a Gulf-wide ecological services in the Open Ocean On March 31, 2017, the Open Ocean Comprehensive Plan for In-Water Sea Restoration Area. The proposed TIG posted a public notice at http:// Turtle Data Collection- Preferred, alternatives are intended to continue the www.gulfspillrestoration.noaa.gov $655,000. process of using DWH restoration requesting new or revised natural • Developing Methods to Observe Sea funding to restore natural resources resource restoration project ideas by Turtle Interactions in the Gulf of Mexico injured or lost as a result of the May 15, 2017 for the Open Ocean Menhaden Purse Seine Fishery- Deepwater Horizon oil spill. The total Restoration Area. The notice stated that Preferred, $3,000,000. estimated cost of the projects proposed the Open Ocean TIG was seeking project • Reducing Juvenile Sea Turtle as preferred is $225,680,700. Additional ideas for the following Restoration Bycatch Through Development of restoration planning for the Open Ocean Types: (1) Birds; (2) Sturgeon; (3) Sea Reduced Bar Spacing in Turtle Excluder Restoration Area will continue. Turtles; (4) Marine Mammals; (5) Fish Devices- Preferred, $2,153,000. and Water Column Invertebrates; and (6) • Long-term Nesting Beach Habitat Next Steps Mesophotic and Deep Benthic Protection for Sea Turtles- Preferred, The public is encouraged to review Communities. $7,000,000. and comment on the Draft RP/EA. A

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public meeting and webinars are Dated: May 3, 2019. Set-Aside (RSA) Program Review and scheduled to facilitate the public review Carrie Selberg, identify which issues the Council and comment process. After the public Deputy Director, Office of Habitat should consider further. Other business comment period ends, the Open Ocean Conservation, National Marine Fisheries may be discussed as necessary. TIG will consider and address the Service. Although non-emergency issues not comments received before issuing a [FR Doc. 2019–09554 Filed 5–14–19; 8:45 am] contained on this agenda may come Final RP/EA. A summary of comments BILLING CODE 3510–22–P before this Council for discussion, those received and the Open Ocean TIG’s issues may not be the subject of formal responses and any revisions to the action during this meeting. Council document, as appropriate, will be DEPARTMENT OF COMMERCE action will be restricted to those issues included in the final document. specifically listed in this notice and any National Oceanic and Atmospheric issues arising after publication of this Public Meeting Schedule Administration notice that require emergency action The Open Ocean TIG will conduct a RIN 0648–XH029 under section 305(c) of the Magnuson- public meeting and webinars to provide Stevens Act, provided the public has information and seek input on the Draft New England Fishery Management been notified of the Council’s intent to RP/EA: Council; Public Meeting take final action to address the emergency. • June 4, 2019 (public meeting), at AGENCY: National Marine Fisheries 5:30 p.m. at the Pensacola City Hall, 222 Service (NMFS), National Oceanic and Special Accommodations W Main St., Pensacola, FL 32502; Atmospheric Administration (NOAA), This meeting is physically accessible • June 11, 2019 (webinar), at 12:00 Commerce. to people with disabilities. This meeting p.m. Central Time. Register at: https:// ACTION: Notice; public meeting. will be recorded. Consistent with 16 register.gotowebinar.com/register/ U.S.C. 1852, a copy of the recording is 7304216670381829899. SUMMARY: The New England Fishery available upon request. Requests for Management Council (Council) is • sign language interpretation or other June 13, 2019 (webinar), at 6:00 scheduling a public meeting of its p.m. Central Time. Register at: https:// auxiliary aids should be directed to Herring Committee to consider actions Thomas A. Nies, Executive Director, at register.gotowebinar.com/register/ affecting New England fisheries in the 2042490581520295947. (978) 465–0492, at least 5 days prior to exclusive economic zone (EEZ). the meeting date. Written and oral comments on the Recommendations from this group will Draft RP/EA may be submitted at the be brought to the full Council for formal Authority: 16 U.S.C. 1801 et seq. public meeting and through the consideration and action, if appropriate. Dated: May 10, 2019. webinars (written comment only). DATES: This meeting will be held on Tracey L. Thompson, Persons with disabilities may request Thursday, May 30, 2019 at 10 a.m. Acting Deputy Director, Office of Sustainable special accommodations at the public ADDRESSES: Fisheries, National Marine Fisheries Service. meeting by contacting the Open Ocean Meeting address: The meeting will be [FR Doc. 2019–10084 Filed 5–14–19; 8:45 am] FOR FURTHER TIG by May 24, 2019 (see held at the Four Points by Sheraton, BILLING CODE 3510–22–P INFORMATION CONTACT). Wakefield, MA 01880; telephone: (781) Invitation to Comment 245–9300. Council address: New England DEPARTMENT OF COMMERCE The Open Ocean TIG seeks public Fishery Management Council, 50 Water National Oceanic and Atmospheric review and comment on the Draft RP/ Street, Mill 2, Newburyport, MA 01950. Administration EA (see ADDRESSES above). Before FOR FURTHER INFORMATION CONTACT: including your address, telephone Thomas A. Nies, Executive Director, number, email address, or other New England Fishery Management RIN 0648–XH031 personal identifying information in your Council; telephone: (978) 465–0492. comment, please be aware that your Pacific Fishery Management Council; SUPPLEMENTARY INFORMATION: entire comment, including your Public Meeting personal identifying information, will Agenda AGENCY: National Marine Fisheries become part of the public record. The Committee will review Service (NMFS), National Oceanic and Administrative Record Framework 6 to the Herring Fishery Atmospheric Administration (NOAA), Management Plan, an action considering Commerce. The documents comprising the fishery specifications for FY 2019–21; ACTION: Notice of public meeting Administrative Record for the Draft RP/ identify final preferred alternatives for (webinar). EA can be viewed electronically at Council consideration. They will also http://www.doi.gov/deepwaterhorizon/ discuss and make recommendations for SUMMARY: The Pacific Fishery adminrecord. the Council review of the Management Management Council (Pacific Council) will convene a webinar meeting of its Authority Strategy Evaluation (MSE) process used in Amendment 8 to develop and analyze Groundfish Management Team (GMT) to The authority of this action is the Oil acceptable biological catch (ABC) discuss items on the Pacific Council’s Pollution Act of 1990 (33 U.S.C. 2701 et control rule alternatives. The Committee June 2019 meeting agenda. The meeting seq.) and its implementing Oil Pollution will have an initial discussion of a is open to the public. Act Natural Resource Damage background document being prepared DATES: The webinar meeting will be Assessment regulations found at 15 CFR on Atlantic herring spawning activity on held Wednesday, June 12, 2019, from 1 part 990 and the National Georges Bank. p.m. to 5 p.m. Pacific Daylight Time. Environmental Policy Act of 1969 (42 They will review findings and The scheduled ending time for the GMT U.S.C. 4321 et seq.). recommendations from the Research webinar is an estimate, the meeting will

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adjourn when business for the day is Special Accommodations Caribbean Fishery Management completed. The public listening station is Councils, in conjunction with NOAA Fisheries and the Atlantic and Gulf ADDRESSES: This meeting will be held physically accessible to people with via webinar. A public listening station disabilities. Requests for sign language States Marine Fisheries Commissions, is available at the Pacific Council office interpretation or other auxiliary aids have implemented the Southeast Data, (address below). To attend the webinar: should be directed to Mr. Kris Assessment and Review (SEDAR) (1) Join the GoToWebinar by visiting Kleinschmidt at (503) 820–2411 at least process, a multi-step method for this link https://www.gotomeeting.com/ 10 business days prior to the meeting determining the status of fish stocks in webinar (Click ‘‘Join a Webinar’’ in top date. the Southeast Region. SEDAR is a three- right corner of page), (2) Enter the Dated: May 10, 2019. step process including: (1) Data Webinar ID: 769–834–475 and (3) enter Tracey L. Thompson, Workshop; (2) Assessment Process utilizing webinars; and (3) Review your name and email address (required). Acting Deputy Director, Office of Sustainable After logging into the webinar, you must Fisheries, National Marine Fisheries Service. Workshop. The product of the Data Workshop is a data report which use your telephone for the audio portion [FR Doc. 2019–10083 Filed 5–14–19; 8:45 am] compiles and evaluates potential of the meeting. Dial this TOLL number BILLING CODE 3510–22–P 1–914–614–3221, enter the Attendee datasets and recommends which phone audio access code 572–583–398, datasets are appropriate for assessment and enter your audio phone pin (shown DEPARTMENT OF COMMERCE analyses. The product of the Assessment after joining the webinar). System Process is a stock assessment report Requirements: For PC-based attendees: National Oceanic and Atmospheric which describes the fisheries, evaluates Required: Windows® 10, 8, 7, Vista, or Administration the status of the stock, estimates ® XP; for Mac -based attendees: Required: RIN 0648–XH025 biological benchmarks, projects future Mac OS® X 10.5 or newer; for Mobile population conditions, and recommends attendees: Required: iPhone®, iPad®, Fisheries of the South Atlantic; research and monitoring needs. The AndroidTM phone or Android tablet (see Southeast Data, Assessment, and assessment is independently peer https://www.gotomeeting.com/webinar/ Review (SEDAR); Public Meeting reviewed at the Review Workshop. The ipad-iphone-android-webinar-apps). product of the Review Workshop is a AGENCY: National Marine Fisheries You may send an email to Mr. Kris Summary documenting panel opinions Service (NMFS), National Oceanic and Kleinschmidt at kris.kleinschmidt@ regarding the strengths and weaknesses Atmospheric Administration (NOAA), noaa.gov or contact him at (503) 820– of the stock assessment and input data. Commerce. 2411 for technical assistance. Participants for SEDAR Workshops are ACTION: Notice of scheduled SEDAR 58 Council address: Pacific Fishery appointed by the Gulf of Mexico, South pre-assessment webinar. Management Council, 7700 NE Atlantic, and Caribbean Fishery Ambassador Place, Suite 101, Portland, SUMMARY: The SEDAR 58 assessment of Management Councils and NOAA OR 97220. the Atlantic stock of Cobia will consist Fisheries Southeast Regional Office, FOR FURTHER INFORMATION CONTACT: of a series of workshops and webinars: Highly Migratory Species Management Todd Phillips, Staff Officer; telephone: Data Workshop; Assessment Webinars; Division, and Southeast Fisheries (503) 820–2426. and a Review Workshop. See Science Center. Participants include: SUPPLEMENTARY INFORMATION SUPPLEMENTARY INFORMATION: The . Data collectors and database managers; primary purpose of GMT webinar is to DATES: The SEDAR 58 Pre-Assessment stock assessment scientists, biologists, prepare for and develop Webinar has been scheduled for and researchers; constituency recommendations for consideration by Thursday, June 20, 2019, from 1 p.m. to representatives including fishermen, the Pacific Council at its June 2019 4 p.m. environmentalists, and non- meeting. The GMT will discuss items ADDRESSES: governmental organizations (NGOs); related to groundfish management and Meeting address: The meetings will be international experts; and staff of administrative Pacific Council agenda held via webinar. The webinar is open Councils, Commissions, and state and items. A detailed agenda for the webinar to members of the public. Those federal agencies. will be available on the Pacific interested in participating should The items of discussion at the Pre- Council’s website prior to the meeting. contact Kathleen Howington at SEDAR Assessment webinar are as follows: (see FOR FURTHER INFORMATION CONTACT) The GMT may also address other Participants will discuss any assignments relating to groundfish to request an invitation providing remaining data issues and/or pre- management. No management actions webinar access information. Please modeling questions. will be decided by the GMT. request webinar invitations at least 24 Although non-emergency issues not hours in advance of each webinar. Although non-emergency issues not contained in the meeting agenda may be SEDAR address: South Atlantic contained in this agenda may come discussed, those issues may not be the Fishery Management Council, 4055 before this group for discussion, those subject of formal action during this Faber Place Drive, Suite 201, N. issues may not be the subject of formal meeting. Action will be restricted to Charleston, SC 29405; action during this meeting. Action will those issues specifically listed in this www.sedarweb.org. be restricted to those issues specifically notice and any issues arising after FOR FURTHER INFORMATION CONTACT: identified in this notice and any issues publication of this notice that require Kathleen Howington, SEDAR arising after publication of this notice emergency action under Section 305(c) Coordinator, 4055 Faber Place Drive, that require emergency action under of the Magnuson-Stevens Fishery Suite 201, North Charleston, SC 29405; section 305(c) of the Magnuson-Stevens Conservation and Management Act, phone (843) 571–4366; email: Fishery Conservation and Management provided the public has been notified of [email protected]. Act, provided the public has been the intent to take final action to address SUPPLEMENTARY INFORMATION: The Gulf notified of the intent to take final action the emergency. of Mexico, South Atlantic, and to address the emergency.

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Special Accommodations Council’s website (www.mafmc.org) determining the status of fish stocks in This meeting is accessible to people prior to the meeting. the Southeast Region. SEDAR is a three step process including: (1) Data with disabilities. Requests for auxiliary Special Accommodations aids should be directed to the SAFMC Workshop; (2) Assessment Process The meeting is physically accessible utilizing workshops and webinars; and office (see ADDRESSES) at least 5 to people with disabilities. Requests for business days prior to the meeting. (3) Review Workshop. The product of sign language interpretation or other the Data Workshop is a data report Note: The times and sequence specified in auxiliary aid should be directed to M. which compiles and evaluates potential this agenda are subject to change. Jan Saunders, (302) 526–5251, at least 5 datasets and recommends which Authority: 16 U.S.C. 1801 et seq. days prior to the meeting date. datasets are appropriate for assessment Dated: May 10, 2019. analyses. The product of the Assessment Dated: May 10, 2019. Tracey L. Thompson, Process is a stock assessment report Tracey L. Thompson, which describes the fisheries, evaluates Acting Deputy Director, Office of Sustainable Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service. the status of the stock, estimates Fisheries, National Marine Fisheries Service. biological benchmarks, projects future [FR Doc. 2019–10085 Filed 5–14–19; 8:45 am] [FR Doc. 2019–10081 Filed 5–14–19; 8:45 am] population conditions, and recommends BILLING CODE 3510–22–P BILLING CODE 3510–22–P research and monitoring needs. The assessment is independently peer DEPARTMENT OF COMMERCE reviewed at the Review Workshop. The DEPARTMENT OF COMMERCE product of the Review Workshop is a Summary documenting panel opinions National Oceanic and Atmospheric National Oceanic and Atmospheric Administration regarding the strengths and weaknesses Administration of the stock assessment and input data. RIN 0648–XG954 RIN 0648–XH019 Participants for SEDAR Workshops are appointed by the Gulf of Mexico, South Mid-Atlantic Fishery Management Fisheries of the Caribbean; Southeast Atlantic, and Caribbean Fishery Council (MAFMC); Public Meeting Data, Assessment and Review Management Councils and NOAA (SEDAR); Public Meeting Fisheries Southeast Regional Office, AGENCY: National Marine Fisheries AGENCY: HMS Management Division, and Service (NMFS), National Oceanic and National Marine Fisheries Service (NMFS), National Oceanic and Southeast Fisheries Science Center. Atmospheric Administration (NOAA), Participants include: Data collectors and Commerce. Atmospheric Administration (NOAA), Commerce. database managers; stock assessment ACTION: Notice; public meeting. ACTION: Notice of SEDAR 57 Review scientists, biologists, and researchers; Workshop for Caribbean spiny lobster. constituency representatives including SUMMARY: The Mid-Atlantic Fishery fishermen, environmentalists, and non- Management Council’s (Council) SUMMARY: The SEDAR 57 assessment of governmental organizations (NGOs); Surfclam and Ocean Quahog Committee the Caribbean spiny lobster will consist international experts; and staff of will hold a public meeting. of: a Data Workshop; a series of Councils, Commissions, and state and DATES: The meeting will be held on Assessment webinars; and a Review federal agencies. Monday, June 3, 2019, from 1 p.m. until Workshop. See SUPPLEMENTARY The items of discussion in the Review 4:30 p.m. See SUPPLEMENTARY INFORMATION. Workshop agenda are as follows: INFORMATION for agenda details. The Review Panel participants will DATES: The SEDAR 57 Review ADDRESSES: review the stock assessment reports to Workshop will be held from 9 a.m. on Meeting address: The meeting will determine if they are scientifically July 9, 2019 until 5 p.m. on July 11, take place at the Doubletree by Hilton sound. 2019. New York Times Square West, 350 W Although non-emergency issues not 40th St., New York, NY 10018; ADDRESSES: contained in this agenda may come telephone: (212) 607–8888. Meeting address: The SEDAR 57 before this group for discussion, those Council address: Mid-Atlantic Fishery Review Workshop will be held at the issues may not be the subject of formal Management Council, 800 N State Hotel Aira Coconut Grove, 2889 action during this meeting. Action will Street, Suite 201, Dover, DE 19901; McFarlane Road, Miami, FL 33131. be restricted to those issues specifically telephone: (302) 674–2331; SEDAR address: 4055 Faber Place identified in this notice and any issues www.mafmc.org. Drive, Suite 201, N Charleston, SC arising after publication of this notice 29405. that require emergency action under FOR FURTHER INFORMATION CONTACT: section 305(c) of the Magnuson-Stevens Christopher M. Moore, Ph.D., Executive FOR FURTHER INFORMATION CONTACT: Julie Fishery Conservation and Management Director, Mid-Atlantic Fishery Neer, SEDAR Coordinator; phone: (843) Act, provided the public has been Management Council, telephone: (302) 571–4366 or toll free: (866) SAFMC–10; notified of the intent to take final action 526–5255. fax: (843) 769–4520; email: Julie.neer@ to address the emergency. SUPPLEMENTARY INFORMATION: The Mid- safmc.net. Special Accommodations Atlantic Fishery Management Council’s SUPPLEMENTARY INFORMATION: The Gulf Surfclam and Ocean Quahog Committee of Mexico, South Atlantic, and These meetings are physically will meet to review the Public Hearing Caribbean Fishery Management accessible to people with disabilities. Document for the Atlantic Surfclam and Councils, in conjunction with NOAA Requests for auxiliary aids should be Ocean Quahog Excessive Shares Fisheries and the Atlantic and Gulf directed to the council office (see Amendment to ensure the document is States Marine Fisheries Commissions ADDRESSES) at least 10 days prior to the complete for Council review and have implemented the Southeast Data, meeting. approval. An agenda and background Assessment and Review (SEDAR) Note: The times and sequence specified in documents will be posted at the process, a multi-step method for this agenda are subject to change.

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Authority: 16 U.S.C. 1801 et seq. enhance the academic offerings, unfunded applications from this Dated: May 10, 2019. program quality, faculty quality, and competition, these priorities are Tracey L. Thompson, institutional stability of colleges and competitive preference priorities. Under universities that are educating the Acting Deputy Director, Office of Sustainable 34 CFR 75.105(c)(2)(i), we award an Fisheries, National Marine Fisheries Service. majority of Hispanic college students application up to 10 additional points, and help large numbers of Hispanic depending on how well the application [FR Doc. 2019–10087 Filed 5–14–19; 8:45 am] students and low-income individuals meets one of these priorities. Applicants BILLING CODE 3510–22–P complete postsecondary degrees. may only respond to one of the Background: Hispanic students are priorities, for a total of up to 10 enrolling in postsecondary institutions additional points. DEPARTMENT OF EDUCATION at higher rates than ever before, yet their These priorities are: high enrollments are not translating to Applications for New Awards; degree completion.1 HSIs have an Competitive Preference Priority 1 (Up to Developing Hispanic-Serving opportunity to change the landscape by 10 Additional Points) Institutions Program increasing the number of certificates Projects that are designed to expand AGENCY: Office of Postsecondary and degrees attained by Hispanic and the number of Hispanic and other Education, Department of Education. low-income students. Certificate and underrepresented graduate and ACTION: Notice. degree attainment is imperative to the professional students that can be served thriving economy of the United States. by the institution by expanding courses SUMMARY: The Department of Education HSIs’ high enrollment of Hispanic and and institutional resources. low-income students enables them to (Department) is issuing a notice inviting Competitive Preference Priority 2 (Up to serve as models for how best to meet the applications (NIA) for new awards for 10 Additional Points) fiscal year (FY) 2019 for the Developing needs of Hispanic and low-income Hispanic-Serving Institutions (DHSI) students. As such, this program Projects that support instruction in Program, Catalog of Federal Domestic supports HSIs that demonstrate a personal financial literacy, knowledge Assistance (CFDA) number 84.031S. commitment to developing and/or of markets and economics, knowledge of This notice relates to the approved enhancing a comprehensive plan that higher education financing and information collection under OMB looks to identify and address the repayment (e.g., college savings and control number 1840–0745. strengths and weaknesses of an student loans), or other skills aimed at building personal financial DATES: institution’s enrollment, retention, understanding and responsibility. Applications Available: May 15, 2019. support, and graduation rates of Definitions: The following definitions Deadline for Transmittal of Hispanic and low-income students. are from 34 CFR 77.1 and apply to the Applications: July 15, 2019. HSIs interested in applying to this grant program can use the development selection criteria in this notice: Deadline for Intergovernmental Baseline means the starting point Review: September 12, 2019. of their comprehensive plan to examine the alignment of their mission and from which performance is measured ADDRESSES: For the addresses for current strategic plan with the needs of and targets are set. obtaining and submitting an the target population and surrounding Budget period means an interval of application, please refer to our Common community to develop, enhance, and time into which a project period is Instructions for Applicants to implement leadership, practice, and divided for budgetary purposes. Department of Education Discretionary policies that best promote student Demonstrates a rationale means a key Grant Programs, published in the success. Moreover, HSIs can use their project component included in the Federal Register on February 13, 2019 plans as road maps to help all students, project’s logic model is informed by (84 FR 3768), and available at especially those with the highest needs, research or evaluation findings that www.govinfo.gov/content/pkg/FR-2019- find exciting pathways to employment suggest the project component is likely 02-13/pdf/2019-02206.pdf. and career advancement. to improve relevant outcomes. FOR FURTHER INFORMATION CONTACT: To this end, this competition includes Department means the U.S. Njeri Clark, U.S. Department of two competitive preference priorities Department of Education. Education, 400 Maryland Avenue SW, that are designed to promote student Experimental study means a study Room 260–14, Washington, DC 20202– success. that is designed to compare outcomes 4260. Telephone: (202) 453–6224. Priorities: This notice contains two between two groups of individuals Email: [email protected]. competitive preference priorities. The (such as students) that are otherwise If you use a telecommunications first competitive preference priority is equivalent except for their assignment device for the deaf (TDD) or a text from the authorized activities for this to either a treatment group receiving a telephone (TTY), call the Federal Relay program in section 503 of the HEA (20 project component or a control group Service (FRS), toll free, at 1–800–877– U.S.C. 1101b). The second competitive that does not. Randomized controlled 8339. preference priority is from the trials, regression discontinuity design studies, and single-case design studies SUPPLEMENTARY INFORMATION: Secretary’s Final Supplemental Priorities and Definitions for are the specific types of experimental Full Text of Announcement Discretionary Grant Programs, studies that, depending on their design and implementation (e.g., sample I. Funding Opportunity Description published in the Federal Register on March 2, 2018 (83 FR 9096) attrition in randomized controlled trials Purpose of Program: The DHSI (Supplemental Priorities). and regression discontinuity design Program provides grants to assist Competitive Preference Priorities: For studies), can meet What Works Hispanic-Serving Institutions (HSIs) to FY 2019 and any subsequent year in Clearinghouse (WWC) standards expand educational opportunities for, which we make awards from the list of without reservations as described in the and improve the academic attainment WWC Handbook: of, Hispanic students. DHSI Program 1 Digest of Education Statistics 2017, January (i) A randomized controlled trial grants enable HSIs to expand and 2019, https://nces.ed.gov/pubs2018/2018070.pdf. employs random assignment of, for

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example, students, teachers, classrooms, (2) Such combination of school designed and well-implemented or schools to receive the project districts or counties a State recognizes correlational study with statistical component being evaluated (the as an administrative agency for its controls for selection bias (e.g., a study treatment group) or not to receive the public elementary or secondary schools; using regression methods to account for project component (the control group). or differences between a treatment group (ii) A regression discontinuity design (b) Any other public institution or and a comparison group); and study assigns the project component agency that has administrative control (B) Includes at least one statistically being evaluated using a measured and direction of a public elementary or significant and positive (i.e., favorable) variable (e.g., assigning students reading secondary school. effect on a relevant outcome. below a cutoff score to tutoring or (c) As used in 34 CFR parts 400, 408, Quasi-experimental design study developmental education classes) and 525, 526 and 527 (vocational education means a study using a design that controls for that variable in the analysis programs), the term also includes any attempts to approximate an of outcomes. other public institution or agency that experimental study by identifying a (iii) A single-case design study uses has administrative control and direction comparison group that is similar to the observations of a single case (e.g., a of a vocational education program. treatment group in important respects. student eligible for a behavioral Logic model (also referred to as a This type of study, depending on design intervention) over time in the absence theory of action) means a framework and implementation (e.g., establishment and presence of a controlled treatment that identifies key project components of baseline equivalence of the groups manipulation to determine whether the of the proposed project (i.e., the active being compared), can meet WWC outcome is systematically related to the ‘‘ingredients’’ that are hypothesized to standards with reservations, but cannot treatment. be critical to achieving the relevant meet WWC standards without Fiscal year means the Federal fiscal outcomes) and describes the theoretical reservations, as described in the WWC year—a period beginning on October 1 and operational relationships among the Handbook. and ending on the following September key project components and relevant Relevant outcome means the student 30. outcomes. outcome(s) or other outcomes(s) the key Grantee means the legal entity to project component is designed to which a grant is awarded and that is Note: In developing logic models, improve, consistent with the specific accountable to the Federal Government applicants may want to use resources such as goals of a program. for the use of the funds provided. The the Pacific Education Laboratory’s Logic Subgrant means an award of financial Model Application (https://ies.ed.gov/ncee/ assistance in the form of money, or grantee is the entire legal entity even if edlabs/regions/pacific/elm.asp). only a particular component of the property in lieu of money, made under entity is designated in the grant award Performance measure means any a grant by a grantee to an eligible notice (GAN). For example, a GAN may quantitative indicator, statistic, or subgrantee. The term includes financial name as the grantee one school or metric used to gauge program or project assistance when provided by campus of a university. In this case, the performance. contractual or any other form of legal granting agency usually intends, or Performance target means a level of agreement, but does not include actually intends, that the named performance that an applicant would procurement purchases, nor does it component assume primary or sole seek to meet during the course of a include any form of assistance that is responsibility for administering the project or as a result of a project. excluded from the definition of ‘‘grant grant-assisted project or program. Project component means an activity, or award’’ in this part (See 2 CFR Nevertheless, the naming of a strategy, intervention, process, product, 200.92, ‘‘Subaward’’). component of a legal entity as the practice, or policy included in a project. What Works Clearinghouse Handbook grantee in a grant award document shall Evidence may pertain to an individual (WWC Handbook) means the standards not be construed as relieving the whole project component or to a combination and procedures set forth in the WWC legal entity from accountability to the of project components (e.g., training Procedures and Standards Handbook, Federal Government for the use of the teachers on instructional practices for Version 3.0 or Version 2.1 (incorporated funds provided. (This definition is not English learners and follow-on coaching by reference, see 34 CFR 77.2). Study intended to affect the eligibility for these teachers). findings eligible for review under WWC provision of grant programs in which Promising evidence means that there standards can meet WWC standards eligibility is limited to organizations is evidence of the effectiveness of a key without reservations, meet WWC that may be only components of a legal project component in improving a standards with reservations, or not meet entity.) The term ‘‘grantee’’ does not relevant outcome, based on a relevant WWC standards. WWC practice guides include any secondary recipients, such finding from one of the following: and intervention reports include as subgrantees and contractors, that may (i) A practice guide prepared by What findings from systematic reviews of receive funds from a grantee pursuant to Works Clearinghouse (WWC) reporting a evidence as described in the Handbook a subgrant or contract. ‘‘strong evidence base’’ or ‘‘moderate documentation. Grant period means the period for evidence base’’ for the corresponding Program Authority: 20 U.S.C. 1101– which funds have been awarded. practice guide recommendation; 1101d; 1103–1103g. Local educational agency means: (ii) An intervention report prepared Applicable Regulations: (a) The (a) A public board of education or by the WWC reporting a ‘‘positive Education Department General other public authority legally effect’’ or ‘‘potentially positive effect’’ Administrative Regulations in 34 CFR constituted within a State for either on a relevant outcome with no reporting parts 75, 77, 79, 82, 84, 86, 97, 98, and administrative control of or direction of, of a ‘‘negative effect’’ or ‘‘potentially 99. (b) The Office of Management and or to perform service functions for, negative effect’’ on a relevant outcome; Budget (OMB) Guidelines to Agencies public elementary or secondary schools or on Governmentwide Debarment and in: (iii) A single study assessed by the Suspension (Nonprocurement) in 2 CFR (1) A city, county, township, school Department, as appropriate, that— part 180, as adopted and amended as district, or other political subdivision of (A) Is an experimental study, a quasi- regulations of the Department in 2 CFR a State; or experimental design study, or a well- part 3485. (c) The Uniform

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Administrative Requirements, Cost waiver of eligibility requirements, was Hispanic, the burden is on the Principles, and Audit Requirements for published in the Federal Register on January institution to show that the IPEDS data Federal Awards in 2 CFR part 200, as 29, 2019 (84 FR 451). Only institutions that are inaccurate. If the IPEDS data the Department determines are eligible, or are indicate that the institution has an adopted and amended as regulations of granted a waiver, may apply for a grant in the Department in 2 CFR part 3474. (d) this program. undergraduate FTE less than 25 percent, The regulations for this program in 34 and the institution fails to demonstrate CFR part 606. (e) The Supplemental (iii) Be accredited by a nationally that the IPEDS data are inaccurate, the Priorities. recognized accrediting agency or institution will be considered ineligible. association that the Secretary has (d) A grantee under the DHSI II. Award Information determined to be a reliable authority as Program, which is authorized by title V Type of Award: Discretionary grants. to the quality of education or training of the HEA, may not receive a grant Five-year Individual Development offered, or making reasonable progress under any HEA, title III, part A or part Grants only. Cooperative Arrangement toward accreditation, according to such B program (section 505 of the HEA; 20 Grants and Planning grants will not be an agency or association (section U.S.C. 1101D). The title III, part A awarded in FY 2019. 502(a)(2)(A)(iv) of the HEA; 20 U.S.C. programs include: The Strengthening Estimated Available Funds: 1101a(a)(2)(A)(iv)); Institutions Program; the American $24,000,000. (iv) Be legally authorized to provide, Indian Tribally Controlled Colleges and Contingent upon the availability of and provide within the State, an Universities Program; the Alaska Native funds and the quality of applications, education program for which the and Native Hawaiian-Serving we may make additional awards in institution awards a bachelor’s degree Institutions Programs; the Asian subsequent fiscal years from the list of (section 502(a)(2)(A)(iii) of the HEA), or American and Native American Pacific unfunded applications from this be a junior or community college (20 Islander-Serving Institutions Program; competition. U.S.C. 1101a(a)(2)(A)(iii)); the Strengthening Predominantly Black Estimated Range of Awards: (v) Have an enrollment of Institutions program; and the Native $500,000–$600,000. undergraduate FTE students that is at American-Serving Non-Tribal Maximum Awards: We will not make least 25 percent Hispanic students at the Institutions Program. Furthermore, a an award exceeding $600,000 for a end of the award year immediately current DHSI Program grantee may not single budget period of 12 months. preceding the date of application give up its HSI grant in order to receive Estimated Number of Awards: 40. (section 502(a)(5)(B) of the HEA; 20 a grant under any title III, part A U.S.C. 1101a(a)(5)(B)); and program (§ 606.2(c)(1)). Note: The Department is not bound by any (vi) Provide, as an attachment to the (e) An eligible HSI may only submit estimates in this notice. application, the documentation the IHE one Individual Development Grant Project Period: Up to 60 months. relied upon in determining that at least application. 25 percent of the IHE’s undergraduate (f) Nothing in this notice alters a III. Eligibility Information and FTE students are Hispanic. The 25 grantee’s obligations to comply with Supplemental Requirements percent requirement applies only to nondiscrimination requirements in the 1. Eligible Applicants: (a) Institutions undergraduate Hispanic students and is U.S. Constitution and Federal civil of higher education (IHEs) that qualify calculated based upon FTE students as rights laws, including on the basis of as eligible HSIs are eligible to apply for defined in section 502(a)(4) of the HEA. race or ethnicity, among others. new Individual Development Grants Instructions for formatting and 2. Cost Sharing or Matching: This under the DHSI Program. To be an submitting the verification program does not require cost sharing or eligible HSI, an IHE must— documentation to Grants.gov are in the matching unless the grantee uses a (i) Have an enrollment of needy application package for this portion of its grant for establishing or students, as defined in section 502(b) of competition. improving an endowment fund. If a the HEA (section 502(a)(2)(A)(i) of the (b) For this program, the ‘‘end of the grantee uses a portion of its grant for HEA; 20 U.S.C. 1101a(a)(2)(A)(i)); award year immediately preceding the endowment fund purposes, it must (ii) Have, except as provided in date of application’’ refers to the end of match those grant funds with non- section 522(b) of the HEA, average the fiscal year prior to the application Federal funds (section 503(c)(2) of the education and general expenditures that due date. For purposes of this HEA; 20 U.S.C. 1101b(c)(2)). are low, per full-time equivalent (FTE) competition, the data that we will use 3. Supplement-Not Supplant: This undergraduate student, in comparison to determine percent enrollment is for program involves supplement-not- with the average education and general academic year 2017–2018. supplant funding requirements. Grant expenditures per FTE undergraduate (c) In considering applications for funds shall be used so that they student of institutions that offer similar grants under this program, the supplement and, to the extent practical, instruction (section 502(a)(2)(A)(ii) of Department will compare the data and increase the funds that would otherwise the HEA; 20 U.S.C. 1101a(a)(2)(A)(ii)); documentation the institution relied on be available for the activities to be Note: To demonstrate an enrollment of in its application with data reported to carried out under the grant and in no needy students and low average education the Department’s Integrated case supplant those funds. (34 CFR and general expenditures per FTE Postsecondary Education Data System 606.30(b). undergraduate student, an IHE must be (IPEDS), the IHE’s State-reported 4. Subgrantees: Under 34 CFR designated as an ‘‘eligible institution’’ in enrollment data, and the institutional 75.708(b) and (c) a grantee under this accordance with 34 CFR 606.3 through 606.5 annual report. If different percentages or competition may award subgrants—to and the notice inviting applications for data are reported in these various directly carry out project activities designation as an eligible institution for the sources, the institution must, as part of described in its application—to the fiscal year for which the grant competition is the 25 percent assurance verification, following types of entities: Local being conducted. explain the reason for the differences. If educational agencies; State educational Note: The notice announcing the FY 2019 the IPEDS data show that less than 25 agencies; institutions of higher process for designation of eligible percent of the institution’s education; nonprofit organizations. The institutions, and inviting applications for undergraduate FTE students are grantee may award subgrants to entities

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it has identified in an approved application. We recommend that you (1) and result from a process that involved application or that it selects through limit the application narrative to no major constituencies of the institution; that it selects through a competition more than 55 pages for Individual (up to 5 points) under procedures established by the Development Grants and (2) use the (2) The goals for the institution’s grantee. following standards: academic programs, institutional • A ‘‘page’’ is 8.5″ x 11″, on one side management, and fiscal stability are IV. Application and Submission only, with 1″ margins at the top, bottom, realistic and based on comprehensive Information and both sides. analysis; (up to 5 points) 1. Application Submission • Double-space (no more than three (3) The objectives stated in the plan Instructions: Applicants are required to lines per vertical inch) all text in the are measurable, related to institutional follow the Common Instructions for application narrative, including titles, goals, and, if achieved, will contribute Applicants to Department of Education headings, footnotes, quotations, to the growth and self-sufficiency of the Discretionary Grant Programs, references, and captions, as well as all institution; and (up to 5 points) published in the Federal Register on text in charts, tables, figures, and (4) The plan clearly and February 13, 2019 (84 FR 3768), and graphs. comprehensively describes the methods available at www.govinfo.gov/content/ • Use a font that is either 12 point or and resources the institution will use to pkg/FR-2019-02-13/pdf/2019-02206.pdf, larger, and no smaller than 10 pitch institutionalize practice and which contain requirements and (characters per inch). improvements developed under the • information on how to submit an Use one of the following fonts: proposed project, including, in application. Times New Roman, Courier, Courier particular, how operational costs for 2. Submission of Proprietary New, or Arial. personnel, maintenance, and upgrades Information: Given the types of projects The recommended page limit applies of equipment will be paid with that may be proposed in applications for to the Project Narrative, which is your institutional resources. (Up to 5 points) the Developing Hispanic-Serving complete response to the selection (5) The plan clearly and Institutions Program, your application criteria, and your response to one of the comprehensively describes the five-year may include business information that competitive preference priorities (if plan to improve its services to Hispanic you consider proprietary. In 34 CFR applicable). However, the page limit and other low-income students. (up to 5 5.11 we define ‘‘business information’’ does not apply to the Application for points) and describe the process we use in Federal Assistance form-SF–424; ED (b) Quality of the project design. (up determining whether any of that SF–424 Supplement form; Budget to 15 points) information is proprietary and, thus, Information—Non-Construction The Secretary considers the quality of protected from disclosure under Programs form (ED 524); the assurances the design of the proposed project. In Exemption 4 of the Freedom of and certifications; the one-page project determining the quality of the design of Information Act (5 U.S.C. 552, as abstract, the program profile form, and the proposed project, the Secretary amended). supporting budget narrative. considers the following: An applicant may wish to request 6. Notice of Intent To Apply: The (1) The extent to which the proposed confidentiality of business information Department will be able to review grant project demonstrates a rationale (as because successful applications may be applications more efficiently if we know defined in this notice). (up to 5 points) made available to the public, if the approximate number of applicants (2) The extent to which the proposed requested. that intend to apply. Therefore, we project is supported by promising Consistent with Executive Order strongly encourage each potential evidence (as defined in this notice). (up 12600, please designate in your applicant to notify us of their intent to to 10 points) application any information that you submit an application. To do so, please believe is exempt from disclosure under email the program contact person listed Note: To establish that their projects Exemption 4. In the appropriate ‘‘demonstrate a rationale,’’ applicants must under FOR FURTHER INFORMATION use a logic model (as defined in this notice). Appendix section of your application, CONTACT with the subject line ‘‘Intent to To establish that their projects are supported under ‘‘Other Attachments Form,’’ Apply,’’ and include the applicant’s by ‘‘promising evidence,’’ applicants should please list the page number or numbers name and a contact person’s name and cite the supporting study or studies that on which we can find this information. email address. Applicants that do not meets the conditions in the definition of For additional information please see 34 submit a notice of intent to apply may ‘‘promising evidence’’ and attach the studies CFR 5.11(c). still apply for funding; applicants that as part of the application attachments. In 3. Intergovernmental Review: This do submit a notice of intent to apply are addressing ‘‘promising evidence,’’ applicants program is subject to Executive Order not bound to apply or bound by the are encouraged to align the direct student services proposed in this application to 12372 and the regulations in 34 CFR information provided. part 79. Information about evidence-based practices identified in the selected studies. Intergovernmental Review of Federal V. Application Review Information Programs under Executive Order 12372 1. Selection Criteria: The selection (c) Quality of activity objectives. (Up is in the application package for this criteria for this competition are from 34 to 10 points) program. CFR 606.8, 34 CFR 606.22, and 34 CFR The extent to which the objectives for 4. Funding Restrictions: We specify 75.210 and are as follows: each activity are— unallowable costs in 34 CFR 606.10(c). (a) Quality of the applicant’s (1) Realistic and defined in terms of We reference additional regulations comprehensive development plan. (Up measurable results; (up to 5 points) and outlining funding restrictions in the to 25 points). (2) Directly related to the problems to Applicable Regulations section of this The extent to which— be solved and to the goals of the notice. (1) The strengths, weaknesses, and comprehensive development plan. (up 5. Recommended Page Limit: The significant problems of the institution’s to 5 points) application narrative is where you, the academic programs, institutional (d) Quality of implementation applicant, address the selection criteria management, and fiscal stability are strategy. (Up to 15 points) that reviewers use to evaluate your clearly and comprehensively analyzed The extent to which—

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(1) The implementation strategy for funds, achievement of project applicant that scores the highest under each activity is comprehensive; (up to 5 objectives, and compliance with grant the selection criterion, quality of the points) conditions. The Secretary may also applicant’s comprehensive development (2) The rationale for the consider whether the applicant failed to plan, followed by quality of implementation strategy for each submit a timely performance report or implementation strategy. activity is clearly described and is submitted a report of unacceptable 3. Risk Assessment and Specific supported by the results of relevant quality. Conditions: Consistent with 2 CFR studies or projects; (up to 5 points) and In addition, in making a competitive 200.205, before awarding grants under (3) The timetable for each activity is grant award, the Secretary requires this program, the Department conducts realistic and likely to be attained. (up to various assurances, including those a review of the risks posed by 5 points) applicable to Federal civil rights laws applicants. Under 2 CFR 3474.10, the (e) Quality of project management that prohibit discrimination in programs Secretary may impose specific plan. (Up to 10 points) or activities receiving Federal financial conditions and, in appropriate The extent to which— assistance from the Department (34 CFR circumstances, high-risk conditions on a (1) Procedures for managing the 100.4, 104.5, 106.4, 108.8, and 110.23). grant if the applicant or grantee is not project are likely to ensure efficient and A panel of three non-Federal financially stable; has a history of effective project implementation; (up to reviewers will review and score each unsatisfactory performance; has a 5 points) and application in accordance with the financial or other management system (2) The project coordinator and selection criteria in this notice, as well that does not meet the standards in 2 activity directors have sufficient as the competitive preference priorities. CFR part 200, subpart D; has not authority to conduct the project A rank order funding slate will be made fulfilled the conditions of a prior grant; effectively, including access to the from this review. Awards will be made or is otherwise not responsible. president or chief executive officer. (up in rank order according to the average 4. Integrity and Performance System: to 5 points) score received from the peer review. If you are selected under this (f) Quality of key personnel. (Up to 5 Tiebreaker: In tie-breaking situations competition to receive an award that points) for development grants described in 34 over the course of the project period The extent to which— CFR 606.23(b), the DHSI Program may exceed the simplified acquisition (1) The past experience and training regulations in 34 CFR part 606, subpart threshold (currently $250,000), under 2 of key professional personnel are C require that we award additional CFR 200.205(a)(2) we must make a directly related to the stated activity points to an application from an IHE judgment about your integrity, business objectives; (up to 2 points) and that— ethics, and record of performance under (2) The time commitment of key (1) Has an endowment fund of which Federal awards—that is, the risk posed personnel is realistic. (up to 3 points) the current market value, per full-time by you as an applicant—before we make (g) Quality of evaluation plan. (Up to equivalent enrolled student, is less than an award. In doing so, we must consider 15 points) the average current market value of the any information about you that is in the The extent to which— endowment funds, per full-time integrity and performance system (1) The data elements and the data equivalent enrolled student, at (currently referred to as the Federal collection procedures are clearly comparable institutions that offer Awardee Performance and Integrity described and appropriate to measure similar instruction; Information System (FAPIIS)), the attainment of activity objectives and (2) Has expenditures for library accessible through the System for to measure the success of the project in materials per full-time equivalent Award Management. You may review achieving the goals of the enrolled student that are less than the and comment on any information about comprehensive development plan; (up average expenditures for library yourself that a Federal agency to 5 points) materials per full-time equivalent previously entered and that is currently (2) The data analysis procedures are enrolled student at comparable in FAPIIS. clearly described and are likely to institutions that offer similar Please note that, if the total value of produce formative and summative instruction; or your currently active grants, cooperative results on attaining activity objectives (3) Proposes to carry out one or more agreements, and procurement contracts and measuring the success of the project of the following activities— from the Federal Government exceeds on achieving the goals of the (i) Faculty development (1 point); $10,000,000, the reporting requirements comprehensive development plan; (up (ii) Funds and administrative in 2 CFR part 200, Appendix XII, to 5 points) and management (1 point); require you to report certain integrity (3) The evaluation will provide (iii) Development and improvement of information to FAPIIS semiannually. guidance about effective strategies academic programs (2 points); Please review the requirements in 2 CFR suitable for replication or testing in (iv) Acquisition of equipment for use part 200, Appendix XII, if this grant other settings. (up to 5 points) in strengthening management and plus all the other Federal funds you (h) Budget. (up to 5 points) academic programs (1 point); receive exceed $10,000,000. The extent to which the proposed (v) Joint use of facilities (2 points); or costs are necessary and reasonable in (vi) Student services (2 points). VI. Award Administration Information relation to the project’s objectives and If a tie remains after applying the 1. Award Notices: If your application scope. tiebreaker mechanism above, priority is successful, we notify your U.S. 2. Review and Selection Process: We will be given to applicants that Representative and U.S. Senators and remind potential applicants that in addressed the statutory priority found in send you a Grant Award Notification reviewing applications in any section 521(d) of the HEA (20 U.S.C. (GAN); or we may send you an email discretionary grant competition, the 1071). containing a link to access an electronic Secretary may consider, under 34 CFR If a tie still remains after applying the version of your GAN. We may notify 75.217(d)(3), the past performance of the additional point(s) and the relevant you informally, also. applicant in carrying out a previous statutory priority, we will determine the If your application is not evaluated or award, such as the applicant’s use of ranking of applicants based on the not selected for funding, we notify you.

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2. Administrative and National Policy Secretary establishes a data collection (PDF). To use PDF you must have Requirements: We identify period. Adobe Acrobat Reader, which is administrative and national policy 5. Performance Measures: The available free at the site. requirements in the application package Secretary has established the following You may also access documents of the and reference these and other key performance measures for assessing Department published in the Federal requirements in the Applicable the effectiveness of the DHSI Program: Register by using the article search Regulations section of this notice. (a) The annual rate of degree or feature at www.federalregister.gov. We reference the regulations outlining certificate completion for all students, Specifically, through the advanced the terms and conditions of an award in and specifically for Hispanic students, search feature at this site, you can limit the Applicable Regulations section of at DHSI grantee institutions. your search to documents published by this notice and include these and other (b) The annual persistence rate at the Department. specific conditions in the GAN. The DHSI grantee institutions for all Dated: May 10, 2019. GAN also incorporates your approved students, and for Hispanic students in application as part of your binding particular, from one year to the next. Diane Auer Jones, commitments under the grant. (c) The percentage of all students, and Principal Deputy Under Secretary, Delegated 3. Open Licensing Requirements: of Hispanic students in particular, that to Perform the Duties of Under Secretary and Unless an exception applies, if you are transfer from a two-year HSI to a four- Assistant, Secretary for the Office of Postsecondary Education. awarded a grant under this competition, year institution. you will be required to openly license (d) The number of all students, and [FR Doc. 2019–10056 Filed 5–14–19; 8:45 am] to the public grant deliverables created the number of Hispanic students in BILLING CODE 4000–01–P in whole, or in part, with Department particular, served by any direct student grant funds. When the deliverable service supported by the grant. consists of modifications to pre-existing (e) The Federal cost per ELECTION ASSISTANCE COMMISSION works, the license extends only to those undergraduate and graduate degree at modifications that can be separately institutions in the DHSI program. Sunshine Act Meetings 6. Continuation Awards: In making a identified and only to the extent that ACTION: Notice of third public hearing continuation award under 34 CFR open licensing is permitted under the on Voluntary Voting System Guidelines 75.253, the Secretary considers, among terms of any licenses or other legal 2.0 Principles and Guidelines. restrictions on the use of pre-existing other things: Whether a grantee has works. Additionally, a grantee or made substantial progress in achieving TIME AND DATE: The meeting will be held subgrantee that is awarded competitive the goals and objectives of the project; on Monday, May 20, 2019, from 1:30 grant funds must have a plan to whether the grantee has expended funds p.m. until 4:00 p.m., EDT. disseminate these public grant in a manner that is consistent with its PLACE: 1335 East West Highway, Silver deliverables. This dissemination plan approved application and budget; and, Spring, Maryland 20910, 1st Floor can be developed and submitted after if the Secretary has established your application has been reviewed and performance measurement Conference Room. The meeting will also selected for funding. For additional requirements, the performance targets in be streamed on www.eac.gov. information on the open licensing the grantee’s approved application. STATUS: This Hearing will be open to the requirements please refer to 2 CFR In making a continuation award, the public. ID required to enter secured 3474.20. Secretary also considers whether the building. 4. Reporting: (a) If you apply for a grantee is operating in compliance with Hearing Agenda: The Commission grant under this competition, you must the assurances in its approved will conduct a public hearing to receive ensure that you have in place the application, including those applicable testimony and public comments on the necessary processes and systems to to Federal civil rights laws that prohibit proposed Voluntary Voting System comply with the reporting requirements discrimination in programs or activities Guidelines 2.0 Principles and in 2 CFR part 170 should you receive receiving Federal financial assistance Guidelines (VVSG 2.0). The full hearing funding under the competition. This from the Department (34 CFR 100.4, agenda will be posted in advance at does not apply if you have an exception 104.5, 106.4, 108.8, and 110.23). http://www.eac.gov. Members of the under 2 CFR 170.110(b). public who wish to speak at the hearing (b) At the end of your project period, VII. Other Information regarding the VVSG 2.0 Principles and you must submit a final performance Accessible Format: Individuals with Guidelines may send a request to report, including financial information, disabilities can obtain this document participate to the EAC via email at as directed by the Secretary. If you and a copy of the application package in [email protected] by 5:00 receive a multiyear award, you must an accessible format (e.g., braille, large p.m. EDT Friday, May 17, 2019. submit an annual performance report print, audiotape, or compact disc) on Members of the public may also sign up that provides the most current request to the program contact person at the public meeting as long as they do performance and financial expenditure listed under FOR FURTHER INFORMATION so before the public hearing begins. Due information as directed by the Secretary CONTACT. to time constraints, the EAC may select under 34 CFR 75.118. The Secretary Electronic Access to This Document: no more than ten participants amongst may also require more frequent The official version of this document is the volunteers who request to performance reports under 34 CFR the document published in the Federal participate. The selected volunteers will 75.720(c). For specific requirements on Register. You may access the official be allotted five-minutes each to share reporting, please go to www.ed.gov/ edition of the Federal Register and the their viewpoint. Participants will be fund/grant/apply/appforms/ Code of Federal Regulations at selected on a first-come, first-served appforms.html. www.govinfo.gov. At this site you can basis. However, to maximize diversity of (c) Under 34 CFR 75.250(b), the view this document, as well as all other input, only one participant per Secretary may provide a grantee with documents of this Department organization or entity will be chosen if additional funding for data collection published in the Federal Register, in necessary. Participants may also submit analysis and reporting. In this case the text or Portable Document Format written testimony to be included in the

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record. All requests must include a protests must be filed on or before the The Commission encourages description of what will be said, contact comment date. On or before the electronic submission of protests and information that will be used to notify comment date, it is not necessary to interventions in lieu of paper using the the requestor with status of request serve motions to intervene or protests eFiling link at http://www.ferc.gov. (phone number on which a message on persons other than the Applicant. Persons unable to file electronically may be left or email), and include the The Commission encourages should submit an original and 5 copies subject/attention line (or on the electronic submission of protests and of the protest or intervention to the envelope if by mail): Testimony on interventions in lieu of paper using the Federal Energy Regulatory Commission, proposed VVSG 2.0 Principles and eFiling link at http://www.ferc.gov. 888 First Street NE, Washington, DC Guidelines. Please note that these Persons unable to file electronically 20426. testimonies will be made available to should submit an original and 5 copies This filing is accessible on-line at the public at www.eac.gov. Written of the protest or intervention to the http://www.ferc.gov, using the eLibrary testimony from members of the public Federal Energy Regulatory Commission, link and is available for review in the regarding the proposed VVSG 2.0 888 First Street NE, Washington, DC Commission’s Public Reference Room in Principles and Guidelines will also be 20426. Washington, DC. There is an accepted. Testimony will be included as This filing is accessible on-line at eSubscription link on the website that part of the written record of the hearing, http://www.ferc.gov, using the eLibrary enables subscribers to receive email and it will be available on our website. link and is available for review in the notification when a document is added Written testimony must be submitted Commission’s Public Reference Room in to a subscribed docket(s). For assistance prior to the beginning of the public Washington, DC. There is an with any FERC Online service, please hearing and, if by mail, received by 5:00 eSubscription link on the website that email [email protected], or p.m. EDT on May 17, 2019. Written enables subscribers to receive email call (866) 208–3676 (toll free). For TTY, testimony should be submitted via notification when a document is added call (202) 502–8659. email at votingsystemguidelines@ to a subscribed docket(s). For assistance Comment Date: 5:00 p.m. Eastern eac.gov or via mail addressed to the U.S. with any FERC Online service, please Time on May 21, 2019. Election Assistance Commission, 1335 email [email protected], or call (866) 208–3676 (toll free). For TTY, Dated: May 9, 2019. East-West Highway, Suite 4300, Silver Kimberly D. Bose, Spring, Maryland 20910, or by fax at call (202) 502–8659. Comment Date: 5:00 p.m. Eastern Secretary. 301–734–3108. All correspondence that Time on May 21, 2019. contains written testimony must have in [FR Doc. 2019–10042 Filed 5–14–19; 8:45 am] the subject/attention line (or on the Dated: May 9, 2019. BILLING CODE 6717–01–P envelope if by mail): Written testimony Kimberly D. Bose, on proposed VVSG 2.0 Principles and Secretary. DEPARTMENT OF ENERGY Guidelines. [FR Doc. 2019–10039 Filed 5–14–19; 8:45 am] Clifford D. Tatum, BILLING CODE 6717–01–P Federal Energy Regulatory General Counsel, U.S. Election Assistance Commission Commission. DEPARTMENT OF ENERGY [Docket No. ER19–1806–000] [FR Doc. 2019–10221 Filed 5–13–19; 4:15 pm] BILLING CODE 6820–KF–P Federal Energy Regulatory Mitsui Bussan Commodities, Ltd.; Commission Supplemental Notice That Initial Market-Based Rate Filing Includes [Docket No. NJ19–12–000] DEPARTMENT OF ENERGY Request for Blanket Section 204 Oncor Electric Delivery Company LLC; Authorization Federal Energy Regulatory Notice of Filing Commission This is a supplemental notice in the Take notice that on April 30, 2019, above-referenced Mitsui Bussan [Docket No. NJ19–11–000] the Oncor Electric Delivery Company Commodities, Ltd.’s application for market-based rate authority, with an Oncor Electric Delivery Company LLC; LLC submitted its tariff filing: Oncor accompanying rate tariff, noting that Notice of Filing Tex-La Tariff Rate Changes to be effective July 1, 2018. such application includes a request for Take notice that on April 30, 2019, Any person desiring to intervene or to blanket authorization, under 18 CFR the Oncor Electric Delivery Company protest this filing must file in part 34, of future issuances of securities LLC submitted its tariff filing: Oncor accordance with Rules 211 and 214 of and assumptions of liability. TFO Tariff Rate Changes to be effective the Commission’s Rules of Practice and Any person desiring to intervene or to July 1, 2018. Procedure (18 CFR 385.211, 385.214). protest should file with the Federal Any person desiring to intervene or to Protests will be considered by the Energy Regulatory Commission, 888 protest this filing must file in Commission in determining the First Street NE, Washington, DC 20426, accordance with Rules 211 and 214 of appropriate action to be taken, but will in accordance with Rules 211 and 214 the Commission’s Rules of Practice and not serve to make protestants parties to of the Commission’s Rules of Practice Procedure (18 CFR 385.211, 385.214). the proceeding. Any person wishing to and Procedure (18 CFR 385.211 and Protests will be considered by the become a party must file a notice of 385.214). Anyone filing a motion to Commission in determining the intervention or motion to intervene, as intervene or protest must serve a copy appropriate action to be taken, but will appropriate. Such notices, motions, or of that document on the Applicant. not serve to make protestants parties to protests must be filed on or before the Notice is hereby given that the the proceeding. Any person wishing to comment date. On or before the deadline for filing protests with regard become a party must file a notice of comment date, it is not necessary to to the applicant’s request for blanket intervention or motion to intervene, as serve motions to intervene or protests authorization, under 18 CFR part 34, of appropriate. Such notices, motions, or on persons other than the Applicant. future issuances of securities and

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assumptions of liability, is May 29, Complainants) filed a formal complaint DEPARTMENT OF ENERGY 2019. against Southwest Power Pool, Inc. (SPP The Commission encourages or Respondent) alleging that SPP has Federal Energy Regulatory electronic submission of protests and failed to implement Attachment Z2 of Commission interventions in lieu of paper, using the the SPP Tariff. The Complaint requests [Project No. 10934–000] FERC Online links at http:// that the Commission order relief under www.ferc.gov. To facilitate electronic Attachment Z2 of the SPP Tariff, all as Sugar River II, LLC; Notice Soliciting service, persons with internet access more fully explained in the complaint. Pre-Application Documents and who will eFile a document and/or be Complainants certify that a copy of Notices of Intent To File a Subsequent listed as a contact for an intervenor License Application must create and validate an the Complaint was served on the eRegistration account using the contacts for SPP as listed on the On May 24, 2016, William B. Ruger, eRegistration link. Select the eFiling Commission’s list of Corporate Officials. Jr., the then licensee for the Sugar River link to log on and submit the Any person desiring to intervene or to II Project No. 10934 (project) filed a intervention or protests. protest this filing must file in Notice of Intent (NOI) to file an Persons unable to file electronically accordance with Rules 211 and 214 of application for a subsequent license for should submit an original and 5 copies the Commission’s Rules of Practice and the project.1 The existing license for the of the intervention or protest to the Procedure (18 CFR 385.211 and project expires on April 30, 2021.2 On Federal Energy Regulatory Commission, 385.214). Protests will be considered by October 6, 2016, Commission staff 888 First Street NE, Washington, DC the Commission in determining the approved the use of the traditional 20426. appropriate action to be taken, but will licensing process to develop the license The filings in the above-referenced not serve to make protestants parties to application, and on October 7, 2016, proceeding are accessible in the the proceeding. Any person wishing to Commission staff issued a public notice Commission’s eLibrary system by become a party must file a notice of of Mr. Ruger’s NOI. clicking on the appropriate link in the Pursuant to section 16.20(c) of the intervention or motion to intervene, as above list. They are also available for Commission’s regulations, an existing appropriate. The Respondent’s answer electronic review in the Commission’s licensee with a minor license not Public Reference Room in Washington, and all interventions, or protests must subject to sections 14 and 15 of the DC. There is an eSubscription link on be filed on or before the comment date. Federal Power Act must file an the website that enables subscribers to The Respondent’s answer, motions to application for a subsequent license at receive email notification when a intervene, and protests must be served least 24 months prior to the expiration document is added to a subscribed on the Complainants. of the current license, which with docket(s). For assistance with any FERC The Commission encourages respect to the Sugar River II Project, was Online service, please email electronic submission of protests and April 30, 2019.3 On April 30, 2019, the [email protected]. or call interventions in lieu of paper using the current licensee, Sugar River Hydro II, (866) 208–3676 (toll free). For TTY, call eFiling link at http://www.ferc.gov. LLC,4 filed a letter stating that it is not (202) 502–8659. Persons unable to file electronically filing an application to relicense the Dated: May 9, 2019. should submit an original and 5 copies project. Kimberly D. Bose, of the protest or intervention to the Pursuant to section 16.25(a) of the Commission’s regulations, when an Secretary. Federal Energy Regulatory Commission, existing licensee, having previously [FR Doc. 2019–10038 Filed 5–14–19; 8:45 am] 888 First Street NE, Washington, DC 20426. filed an NOI to file a subsequent license BILLING CODE 6717–01–P for a project, subsequently does not file This filing is accessible on-line at a license application, the Commission http://www.ferc.gov, using the eLibrary must solicit applications from potential DEPARTMENT OF ENERGY link and is available for electronic applicants other than the existing Federal Energy Regulatory review in the Commission’s Public licensee.5 Any party interested in filing Commission Reference Room in Washington, DC. a license application or exemption (i.e., There is an eSubscription link on the a potential applicant) for the project [Docket No. EL19–75–000] website that enables subscribers to must file an NOI and pre-application receive email notification when a document within 90 days from the date EDF Renewables, Inc., Enel Green document is added to a subscribed of this notice.6 While the integrated Power North America, Inc., NextEra docket(s). For assistance with any FERC Energy Resources, LLC, Southern 1 Power Company v. Southwest Power Online service, please email 18 CFR 16.19(b) (2018). [email protected], or call 2 The license for the project was issued with an Pool, Inc.; Notice of Complaint effective date of May 1, 1991, for a term of 30 years. (866) 208–3676 (toll free). For TTY, call William B. Ruger, 55 FERC ¶ 62,118 (1991). Take notice that on May 9, 2019, (202) 502–8659. 3 18 CFR 16.20(c) (2018). pursuant to sections 206, 306 and 309 Comment Date: 5:00 p.m. Eastern 4 On January 26, 2017, the Commission approved of the Federal Power Act (FPA), 16 Time on May 29, 2019. a transfer of the license for the project from William U.S.C. 824e, 825e and 825h and Rule B. Ruger to Sugar River Hydro II, LLC. William B. Dated: May 9, 2019. Ruger, Jr. and Sugar River Hydro II, LLC, 158 FERC 206 of the Rules of Practice and ¶ 62,053 (2017). Procedure of the Federal Energy Kimberly D. Bose, 5 18 CFR 16.25(a) (2018). Regulatory Commission (Commission), Secretary. 6 Pursuant to section 16.24(b)(2) of the 18 CFR 385.206 (2019), EDF [FR Doc. 2019–10047 Filed 5–14–19; 8:45 am] Commission’s regulations, the existing licensee, Renewables, Inc., Enel Green Power Sugar River Hydro II, LLC, is prohibited from filing BILLING CODE 6717–01–P an application for a subsequent license or North America, Inc., NextEra Energy exemption for the project, either individually or in Resources, LLC and Southern Power conjunction with other entities. 18 CFR 16.24(b)(2) Company (collectively, Joint (2018).

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licensing process is the default process to intervene or protest must serve a copy The principal project works consist for preparing an application for a of that document on the Petitioner. of: (1) A 920-foot-long, 50-foot-wide subsequent license, a potential The Commission encourages ditch diverting water from an unnamed applicant may request to use alternative electronic submission of protests and stream to an upper pond; (2) a 12.59- licensing procedures when it files its interventions in lieu of paper, using the acre upper pond created by a 200-foot- NOI.7 An application for a subsequent FERC Online links at http:// long, 50-foot-wide, 5-foot-high earthen license or exemption for the Sugar River www.ferc.gov. To facilitate electronic dam with a spillway and a 200-footlong II Project No. 10934 must be filed within service, persons with internet access overflow ditch; (3) a short metal flume 18 months of the date of filing the NOI. who will eFile a document and/or be and a 275-foot-long, 12-inch-diameter Questions concerning the process for listed as a contact for an intervenor wood stave pipe conveying water from filing an NOI should be directed to must create and validate an the upper pond to the lower pond; (4) Michael Watts at 202–502–6123 or eRegistration account using the a 1000-foot-long, 50-foot-wide ditch [email protected]. eRegistration link. Select the eFiling diverting water from an unnamed Dated: May 8, 2019. link to log on and submit the stream to the lower pond; (5) a 2.2-acre Kimberly D. Bose, intervention or protests. lower pond created by a 200-foot-long, Persons unable to file electronically 50-foot-wide, 5-foot-high earthen dam; Secretary. should submit an original and 5 copies (6) a 6,772- foot-long PVC and steel [FR Doc. 2019–09975 Filed 5–14–19; 8:45 am] of the intervention or protest to the penstock conveying water from the BILLING CODE 6717–01–P Federal Energy Regulatory Commission, lower pond to the powerhouse; (7) a 888 First Street NE, Washington, DC steel powerhouse with a 75-kilowatt 20426. Pelton turbine; (8) a short transmission DEPARTMENT OF ENERGY The filings in the above proceeding line; and (9) appurtenant facilities. Federal Energy Regulatory are accessible in the Commission’s At least 24 months before the Commission eLibrary system by clicking on the expiration of a license for a minor water appropriate link in the above list. They power project in which sections 14 and [Docket Nos. EL19–72–000, QF90–73–010] are also available for review in the 15 of the Federal Power Act were Commission’s Public Reference Room in waived, the Commission’s regulations EF Kenilworth LLC; Notice of Petition Washington, DC. There is an for Declaratory Order require the licensee to file with the eSubscription link on the website that Commission an application for a Take notice that on May 6, 2019, enables subscribers to receive email subsequent license.2 Accordingly, the pursuant to section 292.205(c) of the notification when a document is added licensee was required to file a Federal Energy Regulatory to a subscribed docket(s). For assistance subsequent license application by June Commission’s (Commission) Rules of with any FERC Online service, please 1, 2018. On May 30, 2018, PB Energy Practice and Procedure, 18 CFR email [email protected] filed an application for a subsequent 292.205(c)(2018) implementing the call (866) 208–3676 (toll free). For TTY, license for the Dry Spruce Bay Project. Public Utility Regulatory Policies Act of call (202) 502–8659. However, on May, 1, 2019, Commission 1978 (PURPA), as amended, EF Comment Date: 5:00 p.m. Eastern time staff rejected PB Energy’s license Kenilworth LLC (Petitioner) filed a on June 5, 2019. application for failing to cure petition for declaratory order requesting Dated: May 8, 2019. deficiencies and respond to additional a waiver of the efficiency and operating Kimberly D. Bose, information requests. standards for its qualifying cogeneration Secretary. If the Commission rejects or dismisses facility located at the Merck Sharp & [FR Doc. 2019–09974 Filed 5–14–19; 8:45 am] a subsequent license application, the Dohme Corp. manufacturing and BILLING CODE 6717–01–P licensee may not refile the application processing facility in Kenilworth, New after the deadline to file (i.e., June 1, Jersey for calendar years 2018, 2019 and 2018).3 Because the only timely-filed 2020 due to a decrease in steam DEPARTMENT OF ENERGY license application has been dismissed, consumption by the Kenilworth the Commission is soliciting Facility’s thermal host, as more fully Federal Energy Regulatory applications from other potential explained in the petition. Commission applicants for the project. Any person desiring to intervene or to Any party interested in filing a license protest in this proceeding must file in PB Energy, Inc.; Soliciting Notices of application for the Dry Spruce Bay accordance with Rules 211 and 214 of Intent To File a License Application Project No. 1432 must first file a notice the Commission’s Rules of Practice and and Pre-Application Documents of intent (NOI) 4 and pre-application Procedure (18 CFR 385.211 and 5 The current license for PB Energy, document (PAD) pursuant to Part 5 of 385.214) on or before 5:00 p.m. Eastern Inc.’s (PB Energy) Dry Spruce Bay the Commission’s regulations. Although time on the specified comment date. Project No. 1432 was issued on June 11, the integrated licensing process (ILP) is Protests will be considered by the 1990, for a term of 30 years, ending June the default pre-filing process, section Commission in determining the 1, 2020.1 The 75-kilowatt (kW) project is 5.3(b) of the Commission’s regulations appropriate action to be taken, but will located on an unnamed creek near Port allows a potential license applicant to not serve to make protestants parties to Bailey in the Kodiak Island Borough of request to use the traditional licensing the proceeding. Any person wishing to Alaska. The project occupies 44 acres of process or alternative procedures when become a party must file a notice of 6 land administered by the Bureau of it files its NOI. intervention or motion to intervene, as Land Management. appropriate. Such notices, motions, or 2 18 CFR 16.20(c) (2018). protests must be filed on or before the 3 1 Wards Cove Packing Co., 51 FERC ¶ 62,228 18 CFR 16.9(b)(4) (2018.) comment date. Anyone filing a motion (1990). The license was transferred to PB Energy in 4 18 CFR 5.5 (2018). 2010. Port Bailey Wild Enterprises, LLC PB Energy, 5 18 CFR 5.6 (2018). 7 18 CFR 5.3(b) (2018). Inc., 133 FERC ¶ 62,214 (2010). 6 18 CFR 5.3(b) (2018).

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This notice sets a deadline of 120 its application. If the licensee of such a Filed Date: 5/7/19. days from the date of this notice for project has not filed an application for Accession Number: 201905075127. interested applicants, other than the a subsequent license, then it may be Comments/Protests Due: 5 p.m. ET existing licensee, to file NOIs, PADs, required, pursuant to 18 CFR 16.21(b), 5/28/19. and requests to use the traditional to continue project operations until the Docket Numbers: RP19–1216–000. licensing process or alternative Commission issues someone else a Applicants: Texas Eastern procedures. A potential applicant that license for the project or otherwise Transmission, LP. timely files an NOI and PAD must file orders disposition of the project. Description: § 4(d) Rate Filing: an application for a subsequent license If the project is subject to section 15 Negotiated Rates—May 2019 Cleanup no later than 18 months after the date of the FPA, notice is hereby given that Filing to be effective 6/7/2019. on which it filed its NOI.7 an annual license for Project No. 1904 Filed Date: 5/8/19. Questions concerning this notice is issued to the licensee for a period Accession Number: 20190508–5000. should be directed to Ryan Hansen at effective May1, 2019 through April 30, Comments Due: 5 p.m. ET 5/20/19. (202) 502–8074 or ryan.hansen@ 2020, or until the issuance of a new The filings are accessible in the ferc.gov. license for the project or other Commission’s eLibrary system by Dated: May 3, 2019. disposition under the FPA, whichever clicking on the links or querying the comes first. If issuance of a new license Kimberly D. Bose, docket number. (or other disposition) does not take Secretary. Any person desiring to intervene or place on or before April 30, 2020, notice protest in any of the above proceedings [FR Doc. 2019–09977 Filed 5–14–19; 8:45 am] is hereby given that, pursuant to 18 CFR must file in accordance with Rules 211 BILLING CODE 6717–01–P 16.18(c), an annual license under and 214 of the Commission’s section 15(a)(1) of the FPA is renewed Regulations (18 CFR 385.211 and automatically without further order or DEPARTMENT OF ENERGY 385.214) on or before 5:00 p.m. Eastern notice by the Commission, unless the time on the specified comment date. Federal Energy Regulatory Commission orders otherwise. Protests may be considered, but Commission If the project is not subject to section intervention is necessary to become a 15 of the FPA, notice is hereby given party to the proceeding. [Project No. 1904–000] that the licensee, Great River Hydro, eFiling is encouraged. More detailed LLC, is authorized to continue operation information relating to filing Great River Hydro, LLC; Notice of of the Vernon Hydroelectric Project requirements, interventions, protests, Authorization for Continued Project until such time as the Commission acts service, and qualifying facilities filings Operation on its application for a subsequent can be found at: http://www.ferc.gov/ On October 31, 2012 Great River license. docs-filing/efiling/filing-req.pdf. For Hydro, LLC, licensee for the Vernon Dated: May 9, 2019. other information, call (866) 208–3676 Hydroelectric Project, filed an Kimberly D. Bose, (toll free). For TTY, call (202) 502–8659. Application for a New License pursuant Secretary. Dated: May 9, 2019. to the Federal Power Act (FPA) and the [FR Doc. 2019–10048 Filed 5–14–19; 8:45 am] Kimberly D. Bose, Commission’s regulations thereunder. BILLING CODE 6717–01–P Secretary. The Vernon Hydroelectric Project is [FR Doc. 2019–10046 Filed 5–14–19; 8:45 am] located on the Connecticut River in BILLING CODE 6717–01–P Orange and Windsor counties, Vermont, DEPARTMENT OF ENERGY and Grafton County, New Hampshire. The license for Project No. 1904 was Federal Energy Regulatory DEPARTMENT OF ENERGY issued for a period ending April 30, Commission 2019. Section 15(a)(1) of the FPA, 16 Federal Energy Regulatory U.S.C. 808(a)(1), requires the Combined Notice of Filings Commission Commission, at the expiration of a Take notice that the Commission has [Project No. 1892–000] license term, to issue from year-to-year received the following Natural Gas an annual license to the then licensee Pipeline Rate and Refund Report filings: Great River Hydro, LLC; Notice of under the terms and conditions of the Authorization for Continued Project Filings Instituting Proceedings prior license until a new license is Operation issued, or the project is otherwise Docket Number: PR19–59–000. disposed of as provided in section 15 or Applicants: Columbia Gas of Ohio, On October 31, 2012 Great River any other applicable section of the FPA. Inc. Hydro, LLC, licensee for the Wilder If the project’s prior license waived the Description: Tariff filing per Hydroelectric Project, filed an applicability of section 15 of the FPA, 284.123(b),(e)/: COH Rates effective May Application for a New License pursuant then, based on section 9(b) of the 1, 2019 to be effective 5/1/2019. to the Federal Power Act (FPA) and the Administrative Procedure Act, 5 U.S.C. Filed Date: 5/7/19. Commission’s regulations thereunder. 558(c), and as set forth at 18 CFR Accession Number: 201905075067. The Wilder Hydroelectric Project is 16.21(a), if the licensee of such project Comments/Protests Due: 5 p.m. ET located on the Connecticut River in has filed an application for a subsequent 5/28/19. Orange and Windsor counties, Vermont, license, the licensee may continue to Docket Number: PR19–60–000. and Grafton County, New Hampshire. operate the project in accordance with Applicants: ONEOK WesTex The license for Project No. 1892 was the terms and conditions of the license Transmission, L.L.C. issued for a period ending April 30, after the minor or minor part license Description: Tariff filing per 2019. Section 15(a)(1) of the FPA, 16 expires, until the Commission acts on 284.123(b),(e)/: OWT PR16–11–003 U.S.C. 808(a)(1), requires the –004 Compliance Filing to be effective Commission, at the expiration of a 7 18 CFR 16.25(b)(1) (2018). 5/1/2019. license term, to issue from year-to-year

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an annual license to the then licensee DEPARTMENT OF ENERGY 380 square feet of the existing dam. The under the terms and conditions of the stone blocks would be removed one by prior license until a new license is Federal Energy Regulatory one via a crane that would be placed on issued, or the project is otherwise Commission a pad located on previously disturbed disposed of as provided in section 15 or [Project No. 3185–005] grass adjacent to the Emerson Mill any other applicable section of the FPA. Condos. The stone blocks would be If the project’s prior license waived the Pembroke Hydro Associates LP; taken off-site and either donated or applicability of section 15 of the FPA, Notice of Application Accepted for disposed of properly. The work is then, based on section 9(b) of the Filing, Soliciting Comments, Motions expected to take two to three weeks to complete. The exemptee would Administrative Procedure Act, 5 U.S.C. To Intervene, and Protests continue to meet minimum flow 558(c), and as set forth at 18 CFR Take notice that the following requirements during the work. 16.21(a), if the licensee of such project hydroelectric application has been filed l. Locations of the Application: This has filed an application for a subsequent with the Commission and is available filing may be viewed on the license, the licensee may continue to for public inspection: Commission’s website at http:// operate the project in accordance with a. Application Type: Application for www.ferc.gov/docs-filing/elibrary.asp. the terms and conditions of the license Non-capacity Amendment. Enter the docket number P–3185 in the after the minor or minor part license b. Project No: P–3185–005. docket number field to access the expires, until the Commission acts on c. Date Filed: March 21, 2019. documents. You may also register its application. If the licensee of such a d. Applicant: Pembroke Hydro online at http://www.ferc.gov/docs- project has not filed an application for Associates Limited Partnership, a filing/esubscription.asp to be notified a subsequent license, then it may be subsidiary of Eagle Creek Renewable via email of new filings and issuances required, pursuant to 18 CFR 16.21(b), Energy. related to this or other pending projects. to continue project operations until the e. Name of Project: Webster Pembroke For assistance, call 1–866–208–3676 or Commission issues someone else a Hydroelectric Project. email [email protected], for f. Location: The project is located on license for the project or otherwise TTY, call (202) 502–8659. A copy is also the Suncook River between the towns of orders disposition of the project. available for inspection and Pembroke and Allentown in Merrimack reproduction at the address in item (h) If the project is subject to section 15 County, New Hampshire. above and at the Commission’s Public of the FPA, notice is hereby given that g. Filed Pursuant to: Federal Power Reference Room, located at 888 First an annual license for Project No. 1892 Act, 16 U.S.C. 791(a)–825(r). Street NE, Room 2A, Washington, DC is issued to the licensee for a period h. Applicant Contact: Robert A. Gates, 20426, or by calling (202) 502–8371. effective May 1, 2019 through April 30, Eagle Creek Renewable Energy, 65 m. Individuals desiring to be included 2020, or until the issuance of a new Madison Ave., Suite 500, Morristown, on the Commission’s mailing list should license for the project or other New Jersey 07960, (973) 998–8403. so indicate by writing to the Secretary disposition under the FPA, whichever i. FERC Contact: Kurt Powers, (202) of the Commission. comes first. If issuance of a new license 502–8949, [email protected]. n. Comments, Protests, or Motions to (or other disposition) does not take j. Deadline for filing comments, Intervene: Anyone may submit motions to intervene, and protests: 30 place on or before April 30, 2020, notice comments, a protest, or a motion to days from the issuance date of this is hereby given that, pursuant to 18 CFR intervene in accordance with the notice by the Commission. 16.18(c), an annual license under requirements of Rules of Practice and The Commission strongly encourages Procedure, 18 CFR 385.210, .211, .214, section 15(a)(1) of the FPA is renewed electronic filing. Please file motions to respectively. In determining the automatically without further order or intervene, protests, comments, or appropriate action to take, the notice by the Commission, unless the recommendations using the Commission will consider all protests or Commission orders otherwise. Commission’s eFiling system at http:// other comments filed, but only those If the project is not subject to section www.ferc.gov/docs-filing/efiling.asp. who file a motion to intervene in 15 of the FPA, notice is hereby given Commenters can submit brief comments accordance with the Commission’s that the licensee, Great River Hydro, up to 6,000 characters, without prior Rules may become a party to the LLC., is authorized to continue registration, using the eComment system proceeding. Any comments, protests, or operation of the Wilder Hydroelectric at http://www.ferc.gov/docs-filing/ motions to intervene must be received Project until such time as the ecomment.asp. You must include your on or before the specified comment date Commission acts on its application for name and contact information at the end for the particular application. a subsequent license. of your comments. For assistance, o. Filing and Service of Responsive please contact FERC Online Support at Documents: Any filing must (1) bear in Dated: May 9, 2019. [email protected], (866) all capital letters the title COMMENTS, Kimberly D. Bose, 208–3676 (toll free), or (202) 502–8659 PROTEST, or MOTION TO INTERVENE Secretary. (TTY). In lieu of electronic filing, please as applicable; (2) set forth in the [FR Doc. 2019–10040 Filed 5–14–19; 8:45 am] send a paper copy to: Secretary, Federal heading the name of the applicant and BILLING CODE 6717–01–P Energy Regulatory Commission, 888 the project number of the application to First Street NE, Washington, DC 20426. which the filing responds; (3) furnish The first page of any filing should the name, address, and telephone include docket number P–3185–005. number of the person protesting or k. Description of Request: The intervening; and (4) otherwise comply exemptee proposes to remove a portion with the requirements of 18 CFR of stacked stone blocks, of varying 385.2001 through 385.2005. All dimensions, and stone cap blocks from comments, motions to intervene, or the Pembroke Dam. The removal area protests must set forth their evidentiary totals approximately 30 linear feet or basis and otherwise comply with the

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requirements of 18 CFR 4.34(b). All diameter, 3,158-foot-long penstock; (4) a DEPARTMENT OF ENERGY comments, motions to intervene, or 25-foot-high, 150-foot-long, and 50-foot- protests should relate to project works wide powerhouse containing one unit Federal Energy Regulatory which are the subject of the license with a capacity of 80 megawatts; (5) a Commission amendment. Agencies may obtain lower reservoir (Nickajack Lake) with a Combined Notice of Filings #1 copies of the application directly from surface area of 31.4 acres, and a storage the applicant. A copy of any protest or capacity of 1,883.87 acre-feet; (6) a Take notice that the Commission motion to intervene must be served substation; and (7) a 1-mile-long received the following exempt upon each representative of the transmission line from the substation to wholesale generator filings: applicant specified in the particular the point of interconnection. Docket Numbers: EG19–96–000. application. If an intervener files Applicants: Wildhorse Wind Energy, comments or documents with the The proposed project would have an LLC. Commission relating to the merits of an estimated average annual generation of Description: Notice of Self- issue that may affect the responsibilities 351,483 megawatt-hours. Certification of Exempt Wholesale of a particular resource agency, they Applicant Contact: Adam Rousselle, Generator Status of Wildhorse Wind must also serve a copy of the document Renewable Energy Aggregators, 5710 Energy, LLC. on that resource agency. A copy of all Oak Crest Drive, Doylestown Filed Date: 5/8/19. other filings in reference to this Pennsylvania 18902; phone: (215) 485– Accession Number: 20190508–5128. application must be accompanied by 1708. Comments Due: 5 p.m. ET 5/29/19. proof of service on all persons listed in FERC Contact: Michael Spencer, (202) Take notice that the Commission the service list prepared by the 502–6093, [email protected]. Commission in this proceeding, in received the following electric rate accordance with 18 CFR 4.34(b) and Deadline for filing comments, motions filings: 385.2010. to intervene, competing applications Docket Numbers: ER10–2042–030; (without notices of intent), or notices of ER10–1942–022; ER17–696–010; ER10– Dated: May 9, 2019. intent to file competing applications: 60 1938–025; ER10–1934–024; ER10–1893– Kimberly D. Bose, days from the issuance of this notice. 024; ER10–3051–029; ER10–2985–028; Secretary. Competing applications and notices of ER10–3049–029; ER11–4369–009; [FR Doc. 2019–10049 Filed 5–14–19; 8:45 am] intent must meet the requirements of 18 ER16–2218–009; ER10–1862–024; BILLING CODE 6717–01–P CFR 4.36. ER10–1865–010. Applicants: Calpine Energy Services, The Commission strongly encourages L.P., Calpine Construction Finance DEPARTMENT OF ENERGY electronic filing. Please file comments, Company, LP, Calpine Energy Solutions, motions to intervene, notices of intent, LLC, Calpine Power America—CA, LLC, Federal Energy Regulatory and competing applications using the CES Marketing IX, LLC, CES Marketing Commission Commission’s eFiling system at http:// X, LLC, Champion Energy, LLC, [Project No. 14967–000] www.ferc.gov/docs-filing/efiling.asp. Champion Energy Marketing LLC, Commenters can submit brief comments Champion Energy Services, LLC, North Renewable Energy Aggregators; up to 6,000 characters, without prior American Power and Gas, LLC, North Notice of Preliminary Permit registration, using the eComment system American Power Business, LLC, Power Application Accepted for Filing and at http://www.ferc.gov/docs-filing/ Contract Financing, L.L.C., South Point Soliciting Comments, Motions To ecomment.asp. You must include your Energy Center, LLC. Intervene, and Competing Applications name and contact information at the end Description: Notification of Change in of your comments. For assistance, Status of the Indicated Calpine MBR On February 25, 2019, Renewable please contact FERC Online Support at Sellers. Energy Aggregators, filed an application [email protected], (866) Filed Date: 5/8/19. for a preliminary permit, pursuant to 208–3676 (toll free), or (202) 502–8659 Accession Number: 20190508–5130. section 4(f) of the Federal Power Act (TTY). In lieu of electronic filing, please Comments Due: 5 p.m. ET 5/29/19. (FPA), proposing to study the feasibility send a paper copy to: Secretary, Federal of the Freestone Pumped Storage Hydro Docket Numbers: ER19–105–003. Energy Regulatory Commission, 888 Applicants: PJM Interconnection, Project (Freestone Project or project) to First Street, NE, Washington, DC 20426. be located at Nickajack Lake, near the L.L.C. The first page of any filing should town of Trenton, in Dade County, Description: Compliance filing: include docket number P–14967–000. Georgia. The sole purpose of a Compliance Filing Pursuant to preliminary permit, if issued, is to grant More information about this project, Commission’s 4/15/19 Order to be the permit holder priority to file a including a copy of the application, can effective 1/17/2019. license application during the permit be viewed or printed on the eLibrary’’ Filed Date: 5/9/19. term. A preliminary permit does not link of Commission’s website at http:// Accession Number: 20190509–5020. authorize the permit holder to perform www.ferc.gov/docs-filing/elibrary.asp. Comments Due: 5 p.m. ET 5/30/19. any land-disturbing activities or Enter the docket number (P–14967) in Docket Numbers: ER19–1498–001. otherwise enter upon lands or waters the docket number field to access the Applicants: AEP Texas Inc. owned by others without the owners’ document. For assistance, contact FERC Description: Tariff Amendment: express permission. Online Support. AEPTX-Pedernales EC IA First Amend & Restated Amendment to be effective 3/ The proposed project would consist of Dated: May 9, 2019. the following: (1) A roller compacted 13/2019. concrete or earth and rock upper dam; Kimberly D. Bose, Filed Date: 5/9/19. (2) an upper reservoir with a surface Secretary. Accession Number: 20190509–5035. area of 84 acres and a storage capacity [FR Doc. 2019–10050 Filed 5–14–19; 8:45 am] Comments Due: 5 p.m. ET 5/30/19. of 1,258.92 acre-feet; (3) a 48-inch- BILLING CODE 6717–01–P Docket Numbers: ER19–1806–000.

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Applicants: Mitsui Bussan Filed Date: 5/9/19. time on the specified comment date. Commodities, Ltd. Accession Number: 20190509–5079. Protests may be considered, but Description: Compliance filing: Comments Due: 5 p.m. ET 5/30/19. intervention is necessary to become a Application for Market Based Rate to be Docket Numbers: ER19–1814–000. party to the proceeding. effective 8/19/2019. Applicants: PJM Interconnection, eFiling is encouraged. More detailed Filed Date: 5/8/19. L.L.C. information relating to filing Accession Number: 20190508–5111. Description: § 205(d) Rate Filing: requirements, interventions, protests, Comments Due: 5 p.m. ET 5/29/19. Original ISA SA No. 5359; Queue No. service, and qualifying facilities filings Docket Numbers: ER19–1807–000. AB1–141/AB1–142 to be effective 4/9/ can be found at: http://www.ferc.gov/ Applicants: PacifiCorp. 2019. docs-filing/efiling/filing-req.pdf. For Description: Tariff Cancellation: Filed Date: 5/9/19. other information, call (866) 208–3676 Termination of Invenergy Solar E&P Accession Number: 20190509–5081. (toll free). For TTY, call (202) 502–8659. Agreement to be effective 7/29/2019. Comments Due: 5 p.m. ET 5/30/19. Dated: May 9, 2019. Filed Date: 5/8/19. Docket Numbers: ER19–1815–000. Kimberly D. Bose, Accession Number: 20190508–5112. Applicants: Southern California Comments Due: 5 p.m. ET 5/29/19. Secretary. Edison Company. [FR Doc. 2019–10045 Filed 5–14–19; 8:45 am] Docket Numbers: ER19–1808–000. Description: Tariff Cancellation: BILLING CODE 6717–01–P Applicants: Midcontinent Cancel Letter Agmt Southern California Independent System Operator, Inc., Renewable Partners—Vision Wind American Electric Power Service Project to be effective 3/21/2019. DEPARTMENT OF ENERGY Corporation. Filed Date: 5/9/19. Description: § 205(d) Rate Filing: Accession Number: 20190509–5083. Federal Energy Regulatory _ _ 2019–05–09 Rate Schedule 53 Duke Comments Due: 5 p.m. ET 5/30/19. Commission IMTCo Revenue Distribution Agreement Docket Numbers: ER19–1816–000. [Project No. 1855–000] to be effective 6/1/2019. Applicants: Pacific Gas and Electric Filed Date: 5/9/19. Company. Accession Number: 20190509–5019. Great River Hydro, LLC; Notice of Description: § 205(d) Rate Filing: TO Comments Due: 5 p.m. ET 5/30/19. Authorization for Continued Project Tariff Revision to Formula Capital Operation Docket Numbers: ER19–1809–000. Structure Calculation to be effective Applicants: Southwestern Electric 7/8/2019. On October 31, 2012 Great River Power Company. Filed Date: 5/9/19. Hydro, LLC, licensee for the Bellows Description: § 205(d) Rate Filing: Accession Number: 20190509–5084. Falls Hydroelectric Project, filed an SWEPCO-Bentonville POD#8 DPA Comments Due: 5 p.m. ET 5/30/19. Application for a New License pursuant Cancellation to be effective 5/1/2019. to the Federal Power Act (FPA) and the Filed Date: 5/9/19. Docket Numbers: ER19–1817–000. Applicants: Virginia Electric and Commission’s regulations thereunder. Accession Number: 20190509–5034. The Bellows Falls Hydroelectric Project Comments Due: 5 p.m. ET 5/30/19. Power Company. Description: Compliance filing: is located on the Connecticut River in Docket Numbers: ER19–1810–000. Informational Filing—Amend PPA with Windham County, VT and Cheshire Applicants: PJM Interconnection, Birchwood Power Partners, L.P. to be County, NH. L.L.C. effective N/A. The license for Project No. 1855 was Description: § 205(d) Rate Filing: Filed Date: 5/9/19. issued for a period ending April 30, Original ISA, SA No. 5361; Queue No. Accession Number: 20190509–5105. 2019. Section 15(a) (1) of the FPA, 16 AB2–099 to be effective 4/9/2019. Comments Due: 5 p.m. ET 5/30/19. U.S.C. 808(a) (1), requires the Filed Date: 5/9/19. Commission, at the expiration of a Accession Number: 20190509–5050. Take notice that the Commission license term, to issue from year-to-year Comments Due: 5 p.m. ET 5/30/19. received the following electric securities an annual license to the then licensee Docket Numbers: ER19–1811–000. filings: under the terms and conditions of the Applicants: Southern California Docket Numbers: ES19–29–000. prior license until a new license is Edison Company. Applicants: Golden Spread Electric issued, or the project is otherwise Description: § 205(d) Rate Filing: GIA Cooperative, Inc. disposed of as provided in section 15 or Tulare Solar 5 Project SA No. 1079 to Description: Application under any other applicable section of the FPA. be effective 5/10/2019. Section 204 of the Federal Power Act for If the project’s prior license waived the Filed Date: 5/9/19. Continue Authorization to Issue applicability of section 15 of the FPA, Accession Number: 20190509–5051. Securities of Golden Spread Electric then, based on section 9(b) of the Comments Due: 5 p.m. ET 5/30/19. Cooperative, Inc. Administrative Procedure Act, 5 U.S.C. Docket Numbers: ER19–1812–000. Filed Date: 5/9/19. 558(c), and as set forth at 18 CFR Applicants: CED Wistaria Solar, LLC. Accession Number: 20190509–5056. 16.21(a), if the licensee of such project Description: § 205(d) Rate Filing: Comments Due: 5 p.m. ET 5/30/19. has filed an application for a subsequent Filing of a Certificate of Concurrence to The filings are accessible in the license, the licensee may continue to be effective 5/8/2019. Commission’s eLibrary system by operate the project in accordance with Filed Date: 5/9/19. clicking on the links or querying the the terms and conditions of the license Accession Number: 20190509–5052. docket number. after the minor or minor part license Comments Due: 5 p.m. ET 5/30/19. Any person desiring to intervene or expires, until the Commission acts on Docket Numbers: ER19–1813–000. protest in any of the above proceedings its application. If the licensee of such a Applicants: CED Wistaria Solar, LLC. must file in accordance with Rules 211 project has not filed an application for Description: § 205(d) Rate Filing: and 214 of the Commission’s a subsequent license, then it may be Filing of a Certificate of Concurrence to Regulations (18 CFR 385.211 and required, pursuant to 18 CFR 16.21(b), be effective 5/8/2019. 385.214) on or before 5:00 p.m. Eastern to continue project operations until the

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Commission issues someone else a wapa.gov, or Mr. Thomas Hackett, Rates service from the Projects, submitted a license for the project or otherwise Manager, CRSP Management Center, letter in support of this rate extension. orders disposition of the project. (801) 524–5503 or email hackett@ Following DOE’s review of WAPA’s If the project is subject to section 15 wapa.gov. proposal,2 I hereby approve Rate Order of the FPA, notice is hereby given that SUPPLEMENTARY INFORMATION: By No. WAPA–186 on an interim basis, an annual license for Project No. 1855 Delegation Order No. 00–037.00B, which extends, without adjustment, the is issued to the licensee for a period effective November 19, 2016, the Projects’ firm power formula rate effective May1, 2019 through April 30, Secretary of Energy delegated: (1) The through June 7, 2024. Rate Order No. 2020, or until the issuance of a new authority to develop power and WAPA–186 will be submitted to FERC license for the project or other transmission rates to Western Area for confirmation and approval on a final disposition under the FPA, whichever Power Administration’s (WAPA) basis. comes first. If issuance of a new license Administrator; (2) the authority to (or other disposition) does not take confirm, approve, and place such rates Dated: May 8, 2019. place on or before April 30, 2020, notice into effect on an interim basis to the Mark W. Menezes, is hereby given that, pursuant to 18 CFR Deputy Secretary of Energy; and (3) the Under Secretary of Energy. 16.18(c), an annual license under authority to confirm, approve, and place section 15(a)(1) of the FPA is renewed into effect on a final basis, or to remand DEPARTMENT OF ENERGY automatically without further order or or disapprove such rates, to FERC. In UNDER SECRETARY notice by the Commission, unless the Delegation Order No. 00–002.00Q, In the matter of: Western Area Power Commission orders otherwise. effective November 1, 2018, the If the project is not subject to section Administration Extension for Falcon and Secretary of Energy also delegated to the 15 of the FPA, notice is hereby given Amistad Projects’ Firm Power Formula Rate) Under Secretary of Energy the authority that the licensee, Great River Hydro, Rate Order No. WAPA–186 to confirm, approve, and place into LLC, is authorized to continue operation effect on an interim basis power and ORDER CONFIRMING, APPROVING, of the Bellows Falls Hydroelectric transmission rates for WAPA. This AND PLACING THE FALCON AND Project until such time as the extension is issued in accordance with AMISTAD PROJECTS’ FIRM POWER Commission acts on its application for the Delegation Order and DOE rate FORMULA RATE INTO EFFECT ON a subsequent license. extension procedures at 10 CFR AN INTERIM BASIS Dated: May 9, 2019. 903.23(a). This Rate Order extends a firm power Kimberly D. Bose, The Falcon and Amistad Dams are formula rate. The extension is Secretary. features of international water storage undertaken pursuant to section 302 of [FR Doc. 2019–10043 Filed 5–14–19; 8:45 am] projects located on the Rio Grande the Department of Energy (DOE) BILLING CODE 6717–01–P between Texas and Mexico. Under the Organization Act (42 U.S.C. 7152), terms of Contract No. 7–07–50–P0890, which transferred to, and vested in, the dated August 9, 1977, as amended Secretary of Energy the power marketing DEPARTMENT OF ENERGY (Contract), WAPA markets the power functions of the Secretary of the Interior from these dams to South Texas Electric Western Area Power Administration and the Bureau of Reclamation, under Cooperative, Inc. (STEC). The firm the Reclamation Act of 1902 (ch. 1093, power formula rate for the Projects was Falcon and Amistad Projects—Rate 32 Stat. 388), as amended and approved by the Federal Power Order No. WAPA–186 supplemented by subsequent laws, Commission, predecessor of FERC, in particularly section 9(c) of the AGENCY: Western Area Power Docket No. E–9566 on August 12, 1977 Reclamation Project Act of 1939 (43 Administration, DOE. (59 FPC 1653), for a 5-year period U.S.C. 485h(c)), and specifically ACTION: Notice of rate order extending effective on the date of initial operation includes ‘‘the transmission and 1 firm power formula rate. of Amistad Power Plant, June 8, 1983. disposition of the electric power and WAPA calculates the annual energy generated at Falcon Dam and SUMMARY: The Under Secretary of installment to be paid by STEC for the Amistad Dam, international storage Energy approves, on an interim basis, power generated at the Falcon and reservoir projects on the Rio Grande, the extension of the existing Falcon and Amistad power plants on or before pursuant to the Act of June 18, 1954, as Amistad Projects’ (Projects) firm power August 31 of the year preceding the amended by the Act of December 23, formula rate through June 7, 2024 and fiscal year to which it pertains, and 1963.’’ will submit them to the Federal Energy identifies this amount in a rate By Delegation Order No. 00–037.00B, Regulatory Commission (FERC) for schedule. WAPA uses each annual effective November 19, 2016, the confirmation and approval on a final installment to pay the annual amortized Secretary of Energy delegated: (1) the basis. The existing firm power formula portion of the United States’ investment authority to develop power and rate is set to expire June 7, 2019. This in the Falcon and Amistad hydroelectric transmission rates to the Administrator rate extension makes no change to the facilities, with interest, and the of the Western Area Power existing formula rate. associated operation, maintenance, and Administration (WAPA); (2) the DATES: The firm power formula rate will administrative costs. This repayment authority to confirm, approve, and place be placed into effect on an interim basis schedule is not dependent upon the into effect such rates on an interim basis June 8, 2019. power and energy made available for to the Deputy Secretary of Energy; and FOR FURTHER INFORMATION CONTACT: Mr. sale or the rate of generation each year. (3) the authority to confirm, approve, Steven R. Johnson, Colorado River STEC, as the sole customer that takes and place into effect on a final basis, or Storage Project (CRSP) Manager, CRSP to remand or disapprove such rates, to Management Center, Western Area 1 FERC subsequently approved multiple 5-year rate extensions of the same formula rate, most the Federal Energy Regulatory Power Administration, 299 South Main recently on April 9, 2015, in Docket No. EF14–9– Street, Suite 200, Salt Lake City, UT 000, which extended the rate through June 7, 2019 2 WAPA’s proposal was published on December 84111; (970) 252–3000; email johnsons@ (151 FERC ¶ 62,027). 26, 2018 (83 FR 66,257).

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Commission (FERC). By Delegation extend, on an interim basis, WAPA’s with the initial Federal investment in Order No. 00–002.00Q, effective existing firm power formula rate the Projects, are amortized with interest November 1, 2018, the Secretary of through June 7, 2024. This rate shall and repaid to the U.S. Department of the Energy also delegated the authority to remain in effect on an interim basis, Treasury. A reconciliation of estimates confirm, approve, and place such rates pending FERC’s confirmation and to actual expenses is accomplished at into effect on an interim basis to the approval of this extension, or substitute the end of the rate period, and any Under Secretary of Energy. This Rate rates, on a final basis. differences are included in the Order’s extension is issued under the Dated: May 8, 2019 following year’s revenue requirement. latter Delegation Order and DOE’s rate Mark W. Menezes Billing: extension procedures as codified at 10 Under Secretary of Energy CFR 903.23(a).3 WAPA bills the South Texas Electric Rate Schedule Falcon and Amistad Cooperative, the sole customer that BACKGROUND Projects’ Firm Power Formula Rate takes service from the Projects, on a On April 9, 2015, FERC confirmed, monthly basis. Each monthly charge is approved, and placed into effect Rate UNITED STATES DEPARTMENT OF ENERGY equal to one twelfth of the Projects’ Order No. WAPA–164 for a 5 year annual rate installment, rounded to the period through June 7, 2019.4 On WESTERN AREA POWER penny. December 26, 2018, pursuant to 10 CFR ADMINISTRATION [FR Doc. 2019–10057 Filed 5–14–19; 8:45 am] 903.23(a), WAPA filed a notice in the COLORADO RIVER STORAGE BILLING CODE 6450–01–P Federal Register proposing to extend, PROJECT MANAGEMENT CENTER without adjustment, the Falcon and Amistad Projects’ (Projects) firm power Falcon and Amistad Projects ENVIRONMENTAL PROTECTION formula rate as Rate Order No. WAPA– Firm Power Formula Rate Calculation 186.5 Consistent with the regulations at AGENCY 10 CFR 903.23(a), WAPA held a EFFECTIVE: [EPA–HQ–OPPT–2016–0426; FRL–9993–61] consultation and comment period. The first day of the first full billing WAPA received no comments during period beginning on or after June 8, TSCA Inventory Notification (Active- the consultation and comment period. 1983, through June 7, 1988, or until Inactive) Requirements; Availability of WAPA did receive a letter from South superseded by another formula, a Signed Action Identifying Chemical Texas Electric Cooperative, the sole whichever occurs earlier. Note: Substances for Inactive Designation customer that takes service from the Extension of this firm power formula AGENCY: Environmental Protection Projects, in support of extending the rate, for 5-year increments, was first Agency (EPA). firm power formula rate, dated approved by the Federal Power ACTION: Notice of availability. November 15, 2018. Commission, predecessor of the Federal DISCUSSION Energy Regulatory Commission (FERC), SUMMARY: EPA is announcing the on August 12, 1977. FERC has availability of a signed action The existing formula rate provides subsequently approved the firm power sufficient revenue to recover annual identifying chemical substances for formula rate on July 20, 1988, inactive designation according to the expenses, interest, and capital September 29, 1993, June 7, 1998, replacements within the cost recovery Toxic Substances Control Act (TSCA) January 31, 2005, December 17, 2009, criteria set forth in DOE Order RA Inventory Notification (Active-Inactive) and April 9, 2015, for service through 6120.2. Annual expenses generally Requirements rule. The signed action is June 7, 2019. Rate Order No. WAPA– include operational expenses, such as a companion to the first version of the 186 extends this formula rate salaries and benefits as well as TSCA Chemical Substance Inventory calculation through June 7, 2024. incidental equipment costs. Equipment with all listings designated as active or replacements and maintenance beyond Available: identified as inactive, which was posted recurring activities are considered on the EPA TSCA inventory web page In the area served by the Falcon and on February 19, 2019. The signed capital replacements; these costs, along Amistad Projects (Projects). with the initial Federal investment in action, dated May 6, 2019, initiates a 90- the Projects, are amortized with interest Applicable: day period after which substances identified as inactive will be designated and repaid to the U.S. Department of the To preference customers who are as inactive. Treasury. A reconciliation of estimates under contract with Western Area to actual expenses is accomplished at Power Administration (WAPA) to DATES: Inactive designations for the end of the rate period, and any receive electric service from the chemical substances on the TSCA differences are included in the Projects. Chemical Substance Inventory are following year’s revenue requirement. effective on Monday, August 5, 2019. The requested extension period under Formula Rate: FOR FURTHER INFORMATION CONTACT: For Rate Order No. WAPA–186, June 8, The existing formula rate provides technical information contact: Tracy 2019 through June 7, 2024, includes no sufficient revenue to recover annual Williamson, Chemistry, Economics, and adjustment to the formula rate. expenses, interest, and capital Sustainable Strategies Division ORDER replacements within the cost recovery (Mailcode 7406M), Office of Pollution criteria set forth in DOE Order RA Prevention and Toxics, Environmental In view of the above, and under the 6120.2. Annual expenses generally Protection Agency, 1200 Pennsylvania authority delegated to me, I hereby include operational expenses, such as Ave. NW, Washington, DC 20460–0001; salaries and benefits as well as telephone number: (202) 564–8569; 3 84 FR 5347 (2019). incidental equipment costs. Equipment email address: williamson.tracy@ 4 Order Confirming and Approving Rate Schedule on a Final Basis, FERC Docket No. EF14–9–000, 151 replacements and maintenance beyond epa.gov. FERC ¶ 62,027 (2015). recurring activities are considered For general information contact: The 5 83 FR 66257 (2018). capital replacements; these costs, along TSCA-Hotline, ABVI-Goodwill, 422

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South Clinton Ave., Rochester, NY which no notices are received to be https://www.epa.gov/tsca-inventory. 14620; telephone number: (202) 554– inactive substances on the TSCA The signed action is available in docket 1404; email address: TSCA-Hotline@ Inventory. ID number EPA–HQ–OPPT–2016–0426 epa.gov. TSCA section 8(b) establishes a at http://www.regulations.gov. forward-looking reporting requirement SUPPLEMENTARY INFORMATION: The signed action initiates the 90-day that goes into effect upon EPA’s period after which substances identified I. General Information designation of a chemical substance as as inactive will be designated as A. Does this action apply to me? inactive. Specifically, anyone intending inactive. Because the action was signed to manufacture or process for a on May 6, 2019, inactive designations You may be affected by this action if nonexempt commercial purpose a will become effective on Monday, you currently domestically chemical substance that is designated as August 5, 2019. Accordingly, the manufacture, import, or process for an inactive substance must notify EPA obligation described in 40 CFR 710.25(c) nonexempt commercial purpose a before the inactive substance is and 710.30(b) to submit a Notice of chemical substance identified as manufactured or processed. On Activity Form B before manufacturing inactive on the TSCA Chemical receiving this forward-looking or processing an inactive substance will Substance Inventory (‘‘TSCA notification, EPA must designate the arise beginning on Monday August 5, Inventory’’). You may also be affected substance as active. 2019. by this action if you intend in the future EPA implemented the TSCA section to domestically manufacture, import, or 8(b) requirements through the TSCA Authority: 15 U.S.C. 2607(b). process a chemical substance identified Inventory Notification (Active-Inactive) Dated: May 9, 2019. as inactive on the TSCA Inventory. Requirements rule (82 FR 37520, Aug. Alexandra Dapolito Dunn, B. How can I get copies of this document 11, 2017) (FRL–9964–22), which Assistant Administrator, Office of Chemical and other related information? established retrospective and forward- Safety and Pollution Prevention. looking reporting procedures in 40 CFR [FR Doc. 2019–10070 Filed 5–14–19; 8:45 am] The docket for this action, identified part 710, subpart B. Retrospective BILLING CODE 6560–50–P by docket identification (ID) number commercial activity reporting closed on EPA–HQ–OPPT–2016–0426, is available October 5, 2018. EPA subsequently online at http://www.regulations.gov or compiled the first version of the TSCA ENVIRONMENTAL PROTECTION in person at the Office of Pollution Inventory with all substances either AGENCY Prevention and Toxics Docket (OPPT designated as active in commerce or Docket), Environmental Protection identified as inactive in commerce. [EPA–HQ–OPP–2018–0258; FRL–9993–59] Agency Docket Center (EPA/DC), West EPA regulations at 40 CFR 710.23 William Jefferson Clinton Bldg., Rm. provide that EPA’s designation of a RIN 2070–ZA21 3334, 1301 Constitution Ave. NW, chemical substance as inactive becomes Washington, DC. The Public Reading effective 90 days after EPA identifies the Pesticides; Draft Guidance for Room is open from 8:30 a.m. to 4:30 chemical substance for such Pesticide Registrants on Plant p.m., Monday through Friday, excluding designation. EPA explained in the Regulator Label Claims, Including legal holidays. The telephone number preamble to the final rule that EPA will Plant Biostimulants; Extension of for the Public Reading Room is (202) identify chemical substances for Comment Period 566–1744, and the telephone number for inactive designation in a signed action AGENCY: Environmental Protection the OPPT Docket is (202) 566–0280. accompanying the first version of the Agency (EPA). Please review the visitor instructions Inventory with all finalized active- ACTION: Notice, extension of comment and additional information about the inactive listings. See 82 FR at 37525. period. docket that is available at http:// Subject to certain exceptions, once a www.epa.gov/dockets. You also will chemical substance is designated as SUMMARY: In response to public requests find related information at http:// inactive, any person who intends to for an extension of the comment period, www.epa.gov/tsca-inventory. manufacture (including import) or EPA is extending the comment period process that substance must submit a II. Authority for the draft guidance document that Notice of Activity Form B to EPA prior was released for public comment in the As amended in June 2016, TSCA to such manufacturing or processing. Federal Register of March 27, 2019, for section 8(b), 15 U.S.C. 2607(b), requires See 40 CFR 710.25(c) and 710.30(b). an additional 60 days. that EPA designate chemical substances EPA regulations also allow a Form B to on the TSCA Inventory as active or DATES: Comments, identified by docket be submitted during the 90-day period identification (ID) number EPA–HQ– inactive in U.S. commerce. TSCA between EPA’s identification of a section 8(b)(4) directs EPA to OPP–2018–0258, must be received on or chemical substance for inactive before July 28, 2019. promulgate a rule that requires designation and the effective date for manufacturers, and may require such designation. See 40 CFR ADDRESSES: Follow the detailed processors, to notify EPA of each 710.30(b)(2). instructions provided under ADDRESSES chemical substance on the TSCA in the Federal Register document of Inventory that they manufactured or III. Notice of Inactive Designations March 27, 2019 (84 FR 11538) (FRL– processed (as applicable) for a EPA is announcing the availability of 9986–27). nonexempt commercial purpose during an EPA memorandum signed on May 6, FOR FURTHER INFORMATION CONTACT: the 10-year period ending on the day 2019. This signed action is a companion For general information contact: before June 22, 2016. Following this to the first version of the TSCA Prasad Chumble, Field and External retrospective reporting, EPA must Inventory with all listings designated as Affairs Division (7506P), Office of designate chemical substances for active or identified as inactive, which Pesticide Programs, Environmental which notices are received to be active was posted on the EPA TSCA Inventory Protection Agency, 1200 Pennsylvania substances on the TSCA Inventory and web page on February 19, 2019. The Ave. NW, Washington, DC 20460–0001; must designate chemical substances for TSCA Inventory can be accessed at telephone number: (703) 347–8367;

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email address: chumble.prasad@ ACTION: Notice. ensure that each pesticide continues to epa.gov. satisfy the statutory standard for For technical information contact: SUMMARY: This notice announces the registration, that is, the pesticide can Russell Jones, Biopesticides and availability of EPA’s interim registration perform its intended function without Pollution Prevention Division (7511P), review decision for the following unreasonable adverse effects on human Office of Pesticide Programs, chemicals: 2,4-xylenol, Bacillus health or the environment. As part of Environmental Protection Agency, 1200 popilliae, barium metaborate, biobor, the registration review process, the Pennsylvania Ave. NW, Washington, DC cyhalofop-butyl, emamectin benzoate, Agency has completed interim decisions 20460–0001; telephone number: german cockroach pheromone, for all pesticides listed in the Table in (703)308–5071; email address: gibberellins, m-cresol, methyl eugenol, Unit IV. Through this program, EPA is [email protected]. methyl isopropenyl, prodiamine, ensuring that each pesticide’s SUPPLEMENTARY INFORMATION: This rhamnolipid biosurfactant, and salicylic registration is based on current document extends the public comment acid. scientific and other knowledge, period established in the Federal SUPPLEMENTARY INFORMATION: including its effects on human health Register of March 27, 2019 (84 FR I. General Information and the environment. 11538) (FRL–9986–27). In that III. Authority document, EPA announced the A. Does this action apply to me? availability of and sought public This action is directed to the public EPA is conducting its registration comment on a draft guidance document in general, and may be of interest to a review of the chemicals listed in the entitled ‘‘Guidance for Plant Regulator wide range of stakeholders including Table in Unit IV pursuant to section 3(g) Label Claims, Including Plant environmental, human health, farm of the Federal Insecticide, Fungicide, Biostimulants.’’ EPA is hereby worker, and agricultural advocates; the and Rodenticide Act (FIFRA) and the extending the comment period that was chemical industry; pesticide users; and Procedural Regulations for Registration set to end on May 28, 2019 to July 28, members of the public interested in the Review at 40 CFR part 155, subpart C. 2019. sale, distribution, or use of pesticides. Section 3(g) of FIFRA provides, among To submit comments, or access the Since others also may be interested, the other things, that the registrations of docket, please follow the detailed Agency has not attempted to describe all pesticides are to be reviewed every 15 instructions provided under ADDRESSES the specific entities that may be affected years. Under FIFRA, a pesticide product in the Federal Register document of by this action. If you have any questions may be registered or remain registered March 27, 2019. If you have questions, regarding the applicability of this action only if it meets the statutory standard FOR consult the person listed under to a particular entity, consult the for registration given in FIFRA section FURTHER INFORMATION CONTACT. pesticide specific contact person listed 3(c)(5) (7 U.S.C. 136a(c)(5)). When used Authority: 7 U.S.C. 136 et seq. under FOR FURTHER INFORMATION in accordance with widespread and Dated: May 8, 2019. CONTACT: For pesticide specific commonly recognized practice, the Alexandra Dapolito Dunn, information, contact: The Chemical pesticide product must perform its intended function without unreasonable Assistant Administrator, Office of Chemical Review Manager for the pesticide of Safety and Pollution Prevention. interest identified in the Table in Unit adverse effects on the environment; that is, without any unreasonable risk to [FR Doc. 2019–10071 Filed 5–14–19; 8:45 am] IV. man or the environment, or a human BILLING CODE 6560–50–P For general information on the registration review program, contact: dietary risk from residues that result Dana Friedman, Pesticide Re-Evaluation from the use of a pesticide in or on food. ENVIRONMENTAL PROTECTION Division (7508P), Office of Pesticide IV. What action is the Agency taking? AGENCY Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Pursuant to 40 CFR 155.58, this notice [EPA–HQ–OPP–2017–0751; FRL–9993–16] Washington, DC 20460–0001; telephone announces the availability of EPA’s Interim Registration Review Decisions number: (703) 347–8827; email address: interim registration review decisions for and Case Closures for Several [email protected]. the pesticides shown in the following Pesticides; Notice of Availability table. The interim registration review II. Background decisions are supported by rationales AGENCY: Environmental Protection Registration review is EPA’s periodic included in the docket established for Agency (EPA). review of pesticide registrations to each chemical.

TABLE—REGISTRATION REVIEW INTERIM DECISIONS BEING ISSUED

Registration review case name and No. Docket ID No. Chemical review manager and contact information

2,4-Xylenol, Case Number 4098 ... EPA–HQ–OPP–2010–0240 Jonathan Williams, [email protected], (703) 347–0670. Bacillus popilliae, Case Number EPA–HQ–OPP–2016–0043 Daniel Schoeff, [email protected], (703) 347–0143. 4102. Barium Metaborate, Case Number EPA–HQ–OPP–2008–0047 Daniel Halpert, [email protected], (703) 347–0133. 0632. Biobor, Case Number 3029 ...... EPA–HQ–OPP–2008–0453 Megan Snyderman, [email protected], (703) 347–0671. Cyhalofop-butyl, Case Number EPA–HQ–OPP–2014–0115 Rachel Fletcher, [email protected], (703) 347–0512. 7255. Emamectin Benzoate, Case Num- EPA–HQ–OPP–2011–0483 Susan Bartow, [email protected], (703) 603–0065. ber 7607. German Cockroach Pheromone, EPA–HQ–OPP–2017–0261 Daniel Schoeff, [email protected], (703) 347–0143. Case Number 6023. Gibberellins, Case Number 4110 .. EPA–HQ–OPP–2012–0939 Cody Kendrick, [email protected], (703) 347–0468.

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TABLE—REGISTRATION REVIEW INTERIM DECISIONS BEING ISSUED—Continued

Registration review case name and No. Docket ID No. Chemical review manager and contact information

meta-Cresol (m-Cresol), Case EPA–HQ–OPP–2010–0244 Jonathan Williams, [email protected], (703) 347–0670. Number 4027. Methyl Eugenol, Case Number EPA–HQ–OPP–2016–0173 Alexandra Boukedes, [email protected], (703) 347– 6203. 0305. Prodiamine, Case Number 7201 ... EPA–HQ–OPP–2010–0920 Jordan Page, [email protected], (703) 347–0467. Methyl Isopropenyl, Case Number EPA–HQ–OPP–2017–0253 Alexandra Boukedes, [email protected], (703) 347– 6090. 0305. Rhamnolipid Biosurfactant, Case EPA–HQ–OPP–2017–0275 Cody Kendrick, [email protected], (703) 347–0468. Number 6085. Salicylic Acid and Methyl Salicy- EPA–HQ–OPP–2017–0328 Donna Kamarei, [email protected], (703) 347–0443. late, Case Number 4080.

The proposed interim registration docket for the chemicals listed in the FEDERAL COMMUNICATIONS review decisions for the chemicals in Table will remain open until all actions COMMISSION the table above were posted to the required in the interim decision have docket and the public was invited to been completed. Deletion of Item From May 9, 2019 submit any comments or new Background on the registration review Open Meeting information. EPA addressed the program is provided at: http:// comments or information received www.epa.gov/pesticide-reevaluation. May 8, 2019. during the 60-day comment period for Authority: 7 U.S.C. 136 et seq. The following item has been adopted the proposed interim decisions in the by the Commission and deleted from the Dated: May 1, 2019. discussion for each pesticide listed in list of items scheduled for consideration Charles Smith, the table. Comments from the 60-day at the Thursday, May 9, 2019, Open comment period that were received may Acting Director, Pesticide Re-Evaluation Meeting. The item was previously listed Division, Office of Pesticide Programs. or may not have affected the Agency’s in the Commission’s Notice of [FR Doc. 2019–10004 Filed 5–14–19; 8:45 am] interim decision. Pursuant to 40 CFR Thursday, May 2, 2019. 155.58(c), the registration review case BILLING CODE 6560–50–P

Item No. Bureau Subject

5 ...... OFFICE OF MANAGING DIRECTOR ...... TITLE: Assessment and Collection of Regulatory Fees for Fiscal Year 2019 (MD Docket No. 19–105). SUMMARY: The Commission will consider a Notice of Proposed Rulemaking to seek comment on proposed regulatory fees for Fiscal Year 2019.

Federal Communications Commission. FEDERAL COMMUNICATIONS the subjects listed below on Thursday, Marlene Dortch, COMMISSION May 9, 2019 which scheduled to Secretary. commence at 10:30 a.m. in Room TW– Open Commission Meeting, Thursday, C305, at 445 12th Street SW, [FR Doc. 2019–10023 Filed 5–14–19; 8:45 am] May 9, 2019 BILLING CODE 6712–01–P Washington, DC. The Federal Communications Commission held an Open Meeting on

Item No. Bureau Subject

1 ...... INTERNATIONAL ...... Title: China Mobile International (USA) Inc., Application for Global Facilities-Based and Global Resale International Telecommunications Authority Pursuant to Section 214 of the Communications Act of 1934, as Amended (File No. ITC–214– 20110901–00289). Summary: The Commission will consider a Memorandum Opinion and Order that would deny the application of China Mobile USA for a Section 214 authorization to provide international telecommunications services between the United States and foreign destinations. 2 ...... WIRELESS TELECOMMUNICATIONS ...... Title: Allocation and Service Rules for the 1675–1680 MHz Band (WT Docket No. 19– 116). Summary: The Commission will consider a Notice of Proposed Rulemaking that would seek comment on reallocating spectrum in the 1675–1680 MHz band for shared use between incumbent federal operations and non-federal fixed or mobile (except aeronautical mobile) operations. 3 ...... MEDIA ...... Title: Amendment of Part 74 of the Commission’s Rules Regarding FM Translator In- terference (MB Docket No. 18–119). Summary: The Commission will consider a Report and Order that would adopt streamlined rules relating to interference caused by FM translators and expedite the translator interference complaint resolution process.

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Item No. Bureau Subject

4 ...... WIRELINE COMPETITION ...... Title: Auction of Toll-Free Numbers in the 833 Code; Comment Sought on Competitive Bidding Procedures (AU Docket No. 19–101, WC Docket No. 17–192, and CC Docket No. 95–155). Summary: The Commission will consider a Public Notice seeking comment on pro- posed procedures for conducting and participating in an auction of toll-free numbers in the 833 code. 5 ...... OFFICE OF MANAGING DIRECTOR ...... Title: Assessment and Collection of Regulatory Fees for Fiscal Year 2019 (MD Docket No. 19–105). Summary: The Commission will consider a Notice of Proposed Rulemaking to seek comment on proposed regulatory fees for Fiscal Year 2019. 6 ...... INTERNATIONAL ...... Title: Theia Holdings A, Inc. Request for Authority to Launch and Operate a Non-Geo- stationary Satellite Orbit System in the Fixed-Satellite Service, Mobile-Satellite Serv- ice, and Earth-Exploration Satellite Service (File Nos. SAT–LOA–20161115–00121, SAT–AMD–20170301–00029; Call Sign S2986). Summary: The Commission will consider a Memorandum Opinion Order and Author- ization that would grant Theia’s request to deploy and operate a proposed non-geo- stationary satellite constellation to provide earth imaging services around the world. 7 ...... CONSUMER & GOVERNMENTAL AF- Title: Structure and Practices of the Video Relay Service Program (CG Docket No. FAIRS. 10–51); Telecommunications Relay Services and Speech-to-Speech Services for In- dividuals with Hearing and Speech Disabilities (CG Docket No. 03–123). Summary: The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would adopt measures, and seek comment on others, to improve Video Relay Service (VRS), expand access to direct video communica- tions, and protect the VRS program against waste, fraud, and abuse.

* * * * * FEDERAL COMMUNICATIONS displays a currently valid OMB control The meeting site is fully accessible to COMMISSION number. No person shall be subject to any penalty for failing to comply with people using wheelchairs or other [OMB 3060–0394] mobility aids. Sign language a collection of information subject to the interpreters, open captioning, and Information Collection Being Reviewed PRA that does not display a valid OMB control number. assistive listening devices will be by the Federal Communications provided on site. Other reasonable Commission Under Delegated DATES: Written PRA comments should accommodations for people with Authority be submitted on or before July 15, 2019. If you anticipate that you will be disabilities are available upon request. AGENCY: Federal Communications submitting comments but find it In your request, include a description of Commission. the accommodation you will need and difficult to do so within the period of ACTION: Notice and request for time allowed by this notice, you should a way we can contact you if we need comments. advise the contact listed below as soon more information. Last minute requests as possible. will be accepted but may be impossible SUMMARY: As part of its continuing effort to fill. Send an email to: [email protected] to reduce paperwork burdens, and as ADDRESSES: Direct all PRA comments to or call the Consumer & Governmental required by the Paperwork Reduction Cathy Williams, FCC, via email PRA@ Affairs Bureau at 202–418–0530 (voice), Act (PRA) of 1995, the Federal fcc.gov and to [email protected]. Communications Commission (FCC or 202–418–0432 (TTY). FOR FURTHER INFORMATION CONTACT: For Commission) invites the general public additional information about the Additional information concerning and other Federal agencies to take this information collection, contact Cathy this meeting may be obtained from the opportunity to comment on the Williams at (202) 418–2918. Office of Media Relations, (202) 418– following information collections. SUPPLEMENTARY INFORMATION: 0500; TTY 1–888–835–5322. Audio/ Comments are requested concerning: Video coverage of the meeting will be Whether the proposed collection of OMB Control Number: 3060–0394. broadcast live with open captioning information is necessary for the proper Title: Section 1.420, Additional Procedures in Proceedings for over the internet from the FCC Live web performance of the functions of the Amendment of FM, TV or Air-Ground page at www.fcc.gov/live. Commission, including whether the information shall have practical utility; Table of Allotments. For a fee this meeting can be viewed the accuracy of the Commission’s Type of Review: Extension of a live over George Mason University’s burden estimate; ways to enhance the currently approved collection. Capitol Connection. The Capitol quality, utility, and clarity of the Respondents: Business or other for- Connection also will carry the meeting information collected; ways to minimize profit entities. live via the internet. To purchase these the burden of the collection of Number of Respondents and services, call (703) 993–3100 or go to information on the respondents, Responses: 30 respondents; 30 www.capitolconnection.gmu.edu. including the use of automated responses. Federal Communications Commission. collection techniques or other forms of Estimated Time per Response: 0.33 hours. Katura Jackson, information technology; and ways to further reduce the information Frequency of Response: On occasion Federal Register Liaison, Office of the collection burden on small business reporting requirement. Secretary. concerns with fewer than 25 employees. Obligation to Respond: Required to [FR Doc. 2019–10075 Filed 5–14–19; 8:45 am] The FCC may not conduct or sponsor obtain or retain benefits. The statutory BILLING CODE 6712–01–P a collection of information unless it authority is contained in Section 154(i)

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of the Communications Act of 1934, as CONTACT PERSON FOR MORE INFORMATION: Synopsis: The Agreement authorizes amended. Judith Ingram, Press Officer, Telephone: the Parties to charter space to/from one Total Annual Burden: 10 hours. (202) 694–1220. another in the trade between Mexico Total Annual Cost: $13,500. and the U.S. East Coast. Laura E. Sinram, Privacy Act Impact Assessment: No Proposed Effective Date: 5/9/2019. impact(s). Deputy Secretary of the Commission. Location: https://www2.fmc.gov/ Nature and Extent of Confidentiality: [FR Doc. 2019–10216 Filed 5–13–19; 4:15 pm] FMC.Agreements.Web/Public/ There is no need for confidentiality with BILLING CODE 6715–01–P AgreementHistory/22398. this collection of information. Agreement No.: 201304. Needs and Uses: The information Agreement Name: ‘‘K’’ Line/Liberty collection requirements contained in 47 FEDERAL MARITIME COMMISSION Global Logistics LLC U.S./Belgium/ CFR 1.420(j) require a petitioner seeking Germany Car Carrier Space Charter Notice of Agreements Filed to withdraw or dismiss its expression of Agreement. interest in allotment proceedings to file The Commission hereby gives notice Parties: Kawasaki Kisen Kaisha, Ltd. a request for approval. This request of the filing of the following agreements and Liberty Global Logistics LLC. would include a copy of any related under the Shipping Act of 1984. Filing Party: John Meade; ‘‘K’’ Line written agreement and an affidavit Interested parties may submit comments America, Inc. certifying that neither the party on the agreements to the Secretary by Synopsis: The Agreement authorizes withdrawing its interest nor its email at [email protected], or by mail, the Parties to charter space to/from one principals has received any Federal Maritime Commission, another in the trade between Belgium consideration in excess of legitimate Washington, DC 20573, within twelve and Germany on the one hand, and the and prudent expenses in exchange for days of the date this notice appears in U.S. East Coast on the other hand. dismissing/withdrawing its petition, the the Federal Register. Copies of Proposed Effective Date: 5/9/2019. exact nature and amount of agreements are available through the Location: https://www2.fmc.gov/ consideration received or promised, an Commission’s website (www.fmc.gov) or FMC.Agreements.Web/Public/ itemization of the expenses for which it by contacting the Office of Agreements AgreementHistory/22399. is seeking reimbursement, and the terms at (202)-523–5793 or tradeanalysis@ Dated: May 10, 2019. of any oral agreement. Each remaining fmc.gov. Rachel Dickon, party to any written or oral agreement Agreement No.: 201301. Secretary. must submit an affidavit within five (5) Agreement Name: ‘‘K’’ Line/Liberty days of petitioner’s request for approval Global Logistics LLC U.S./Japan Car [FR Doc. 2019–10055 Filed 5–14–19; 8:45 am] stating that it has paid no consideration Carrier Space Charter Agreement. BILLING CODE 6731–AA–P to the petitioner in excess of the Parties: Kawasaki Kisen Kaisha, Ltd. petitioner’s legitimate and prudent and Liberty Global Logistics LLC. expenses and provide the terms of any Filing Party: John Meade; ‘‘K’’ Line FEDERAL RESERVE SYSTEM oral agreement relating to the dismissal America, Inc. or withdrawal of the expression of Synopsis: The Agreement authorizes Agency Information Collection interest. the Parties to charter space to/from one Activities: Announcement of Board Federal Communications Commission. another in the trade between Japan and Approval Under Delegated Authority and Submission to OMB Marlene Dortch, the U.S. Proposed Effective Date: 5/8/2019. Secretary, Office of the Secretary. AGENCY: Location: https://www2.fmc.gov/ Board of Governors of the [FR Doc. 2019–10024 Filed 5–14–19; 8:45 am] FMC.Agreements.Web/Public/ Federal Reserve System. BILLING CODE 6712–01–P AgreementHistory/22396. SUMMARY: The Board of Governors of the Agreement No.: 201302. Federal Reserve System (Board) is Agreement Name: ‘‘K’’ Line/Liberty adopting a proposal to extend for three FEDERAL ELECTION COMMISSION Global Logistics LLC U.S./Middle East years, with revision, the Suspicious Car Carrier Space Charter Agreement. Activity Report (FR 2230; OMB No. Sunshine Act Meetings Parties: Kawasaki Kisen Kaisha, Ltd. 7100–0212). and Liberty Global Logistics LLC. DATES: The revisions were applicable as TIME AND DATE: Tuesday, May 21, 2019 Filing Party: John Meade; ‘‘K’’ Line of July 27, 2018. at 10:00 a.m. and its continuation at the America, Inc. FOR FURTHER INFORMATION CONTACT conclusion of the open meeting on May : Synopsis: The Agreement authorizes 23, 2019. Federal Reserve Board Clearance the Parties to charter space to/from one Officer—Nuha Elmaghrabi—Office of PLACE: 1050 First Street NE, another in the trade between the U.S. the Chief Data Officer, Board of Washington, DC. and the Middle East. Governors of the Federal Reserve STATUS: This meeting will be closed to Proposed Effective Date: 5/9/2019. System, Washington, DC 20551 (202) the public. Location: https://www2.fmc.gov/ 452–3829. Telecommunications Device MATTERS TO BE CONSIDERED: FMC.Agreements.Web/Public/ for the Deaf (TDD) users may contact Compliance matters pursuant to 52 AgreementHistory/22397. (202) 263–4869, Board of Governors of U.S.C. 30109. Agreement No.: 201303. the Federal Reserve System, Information the premature disclosure of Agreement Name: ‘‘K’’ Line/Liberty Washington, DC 20551. which would be likely to have a Global Logistics LLC U.S./Mexico Car Office of Management and Budget considerable adverse effect on the Carrier Space Charter Agreement. (OMB) Desk Officer—Shagufta Ahmed— implementation of a proposed Parties: Kawasaki Kisen Kaisha, Ltd. Office of Information and Regulatory Commission action. and Liberty Global Logistics LLC. Affairs, Office of Management and Matters concerning participation in civil Filing Party: John Meade; ‘‘K’’ Line Budget, New Executive Office Building, actions or proceedings or arbitration. America, Inc. Room 10235, 725 17th Street NW,

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Washington, DC 20503 or by fax to (202) uses the information in the examination Recordkeeping Provisions Associated 395–6974. and oversight of supervised institutions. with the Interagency Statement on SUPPLEMENTARY INFORMATION: On June Legal authorization and Complex Structured Finance Activities 15, 1984, OMB delegated to the Board confidentiality: The FR 2230 is (FR 4022; OMB No. 7100–0311). This authority under the Paperwork authorized pursuant to the Federal collection of information was formerly Reduction Act (PRA) to approve and Reserve Act (12 U.S.C. 248(a)(1), 602, titled ‘‘Recordkeeping Requirements assign OMB control numbers to 625), the Federal Deposit Insurance Act Associated with the Interagency collection of information requests and (12 U.S.C. 1818(s)), the Bank Holding Statement on Complex Structured requirements conducted or sponsored Company Act (12 U.S.C. 1844(c)), and Finance Activities.’’ The Board has by the Board. Board-approved the International Banking Act (12 U.S.C. changed the title of the collection of collections of information are 3105(c)(2) and 3106(a)). The FR 2230 is information to reflect that the incorporated into the official OMB mandatory. SARs are confidential and information collections that are the inventory of currently approved may be withheld pursuant to exemption subject of this supporting statement are collections of information. Copies of the 3 of the Freedom of Information Act (5 voluntary. PRA Submission, supporting statements U.S.C. 552(b)(3)), which protects DATES: Comments must be submitted on and approved collection of information information ‘‘specifically exempted or before July 15, 2019. instrument(s) are placed into OMB’s from disclosure’’ by another statute, and ADDRESSES: You may submit comments, public docket files. The Board may not by the Bank Secrecy Act (31 U.S.C. identified by FR 4022, by any of the conduct or sponsor, and the respondent 5319), which provides that SARs ‘‘are following methods: is not required to respond to, an exempt from disclosure under section • Agency website: http:// information collection that has been 552 of title 5.’’ www.federalreserve.gov. Follow the extended, revised, or implemented on or Current actions: On February 5, 2019, instructions for submitting comments at after October 1, 1995, unless it displays the Board published a notice in the http://www.federalreserve.gov/apps/ a currently valid OMB control number. Federal Register (84 FR 1732) foia/proposedregs.aspx. Final approval under OMB delegated requesting public comment for 60 days • Email: regs.comments@ authority of the extension for three on the extension, with revision, of the federalreserve.gov. Include Office of years, with revision, of the following Suspicious Activity Report. Management and Budget (OMB) number information collections: The Board’s has revised the FR 2230 in the subject line of the message. Report title: Suspicious Activity to be consistent with changes • FAX: (202) 452–3819 or (202) 452– Report. implemented by FinCEN, which had 3102. Agency form number: FR 2230. added, removed, or revised several data • Mail: Ann E. Misback, Secretary, OMB control number: 7100–0212. fields on the electronically filed SAR. In Board of Governors of the Federal Effective Date: July 27, 2018. addition, FinCEN had changed the file Reserve System, 20th Street and Frequency: On occasion. format for electronic submission of the Constitution Avenue NW, Washington, Respondents: State member banks, SAR by batch filers from ASCII based DC 20551. bank holding companies and their fixed-length delimited file to an XML All public comments are available on nonbank subsidiaries, Edge and based file. The Board has not adopted the Board’s website at https:// agreement corporations, and the U.S. any changes to the SAR regulatory www.federalreserve.gov/apps/foia/ branches and agencies, representative reporting criteria. Institutions will proposedregs.aspx as submitted, unless offices, and nonbank subsidiaries of continue to follow Regulation H (12 CFR modified for technical reasons. foreign banks supervised by the Board. 208.62) and filing instructions in Accordingly, your comments will not be Estimated number of respondents: determining when to file a report and edited to remove any identifying or 6,698. what information should be included on contact information. Public comments Estimated average hours per response: the report. may also be viewed electronically or in 1.5. The comment period for this notice paper form in Room 146, 1709 New Estimated annual burden hours: expired on April 8, 2019. The Board did York Avenue NW, Washington, DC 439,520. not receive any comments. 20006, between 9:00 a.m. and 5:00 p.m. General description of report: Since Board of Governors of the Federal Reserve on weekdays. For security reasons, the 1996, the federal banking agencies 1 and System, May 9, 2019. Board requires that visitors make an the Department of the Treasury’s Michele Taylor Fennell, appointment to inspect comments. You Financial Crimes Enforcement Network Assistant Secretary of the Board. may do so by calling (202) 452–3684. (FinCEN) have required certain types of Upon arrival, visitors will be required to financial institutions to report known or [FR Doc. 2019–09972 Filed 5–14–19; 8:45 am] present valid government-issued photo suspected violations of law and BILLING CODE 6210–01–P identification and to submit to security suspicious transactions. To fulfill these screening in order to inspect and requirements, supervised banking FEDERAL RESERVE SYSTEM photocopy comments. organizations file Bank Secrecy Act— Additionally, commenters may send a Suspicious Activity Reports (BSA– Proposed Agency Information copy of their comments to the OMB SARs).2 Law enforcement agencies use Collection Activities; Comment Desk Officer—Shagufta Ahmed—Office the information submitted in the reports Request of Information and Regulatory Affairs, to initiate investigations and the Board AGENCY: Board of Governors of the Office of Management and Budget, New Executive Office Building, Room 10235, 1 These agencies include the Board, the Office of Federal Reserve System. 725 17th Street NW, Washington, DC the Comptroller of the Currency, the Federal ACTION: Notice, request for comment. Deposit Insurance Corporation, and the National 20503, or by fax to (202) 395–6974. Credit Union Administration. SUMMARY: The Board of Governors of the FOR FURTHER INFORMATION CONTACT: A 2 In 1996, the Board together with the other federal banking agencies issued nearly identical Federal Reserve System (Board) invites copy of the Paperwork Reduction Act regulations to implement the SAR process for comment on a proposal to extend for (PRA) OMB submission, including the banking organizations. three years, without revision, the proposed reporting form and

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instructions, supporting statement, and Proposal Under OMB Delegated the Freedom of Information Act (FOIA) other documentation will be placed into Authority To Extend for Three Years, would only be implicated if the Board OMB’s public docket files, if approved. Without Revision, the Following obtained such records as part of the These documents will also be made Information Collection examination or supervision of a available on the Board’s public website Report title: Recordkeeping Provisions financial institution. In the event the at http://www.federalreserve.gov/apps/ Associated with the Interagency records are obtained by the Board as reportforms/review.aspx or may be Statement on Complex Structured part of an examination or supervision of requested from the agency clearance Finance Activities. a financial institution, this information officer, whose name appears below. Agency form number: FR 4022. is considered confidential pursuant to Federal Reserve Board Clearance OMB control number: 7100–0311. exemption 8 of the FOIA, which Officer—Nuha Elmaghrabi—Office of Frequency: Annual. protects information contained in the Chief Data Officer, Board of Respondents: State member banks, ‘‘examination, operating, or condition Governors of the Federal Reserve bank holding companies (other than reports’’ obtained in the bank System, Washington, DC 20551, (202) foreign banking organizations), savings supervisory process (5 U.S.C. 552(b)(8)). 452–3829. Telecommunications Device and loan holding companies (SLHCs), In addition, the information may also be for the Deaf (TDD) users may contact and U.S. branches and agencies of kept confidential under exemption 4 of (202) 263–4869, Board of Governors of foreign banks. the FOIA, which protects trade secrets the Federal Reserve System, Estimated number of respondents: 18. or confidential commercial or financial Washington, DC 20551. Estimated average hours per response: information that is reasonably likely to SUPPLEMENTARY INFORMATION: On June 10. result in substantial competitive harm if 15, 1984, OMB delegated to the Board Estimated annual burden hours: 180. disclosed (5 U.S.C. 552(b)(4)). authority under the PRA to approve and General description of report: The Board of Governors of the Federal Reserve assign OMB control numbers to guidance provides that state member System, May 9, 2019. collection of information requests and banks, bank holding companies (other Michele Taylor Fennell, requirements conducted or sponsored than foreign banking organizations), Assistant Secretary of the Board. by the Board. In exercising this SLHCs, and U.S. branches and agencies delegated authority, the Board is [FR Doc. 2019–09962 Filed 5–14–19; 8:45 am] of foreign banks supervised by the BILLING CODE 6210–01–P directed to take every reasonable step to Board should establish and maintain solicit comment. In determining policies and procedures for identifying, whether to approve a collection of evaluating, assessing, documenting, and FEDERAL RESERVE SYSTEM information, the Board will consider all controlling risks associated with certain comments received from the public and complex structured finance transactions Agency Information Collection other agencies. (CSFTs). The guidance states that Activities: Announcement of Board Request for Comment on Information supervised entities should provide Approval Under Delegated Authority Collection Proposal sufficient information and convey and Submission to OMB reports to the institution’s management The Board invites public comment on and board of directors concerning AGENCY: Board of Governors of the the following information collection, elevated risks from CSFTs. Federal Reserve System. which is being reviewed under Legal authorization and SUMMARY: The Board of Governors of the authority delegated by the OMB under confidentiality: The Board is authorized Federal Reserve System (Board) is the PRA. Comments are invited on the to issue the recordkeeping guidance adopting a proposal to extend for three following: associated with the Interagency years, without revision, the a. Whether the proposed collection of Recordkeeping Requirements of information is necessary for the proper Statement with respect to state member banks pursuant to sections 9(7), 11(a), Regulation H and Regulation K performance of the Board’s functions, Associated with the Procedures for including whether the information has 21(4), and 25(4) of the Federal Reserve Act (12 U.S.C. 325, 248(a), 483, and Monitoring Bank Secrecy Act practical utility; Compliance (FR K; OMB No. 7100– b. The accuracy of the Board’s 602); with respect to bank holding 0310). The internal Agency Tracking estimate of the burden of the proposed companies pursuant to section 5(c) of Number previously assigned by the information collection, including the the Bank Holding Company Act (12 Board to this information collection was validity of the methodology and U.S.C. 1844(c)); with respect to SLHCs ‘‘Reg K.’’ The Board is changing the assumptions used; pursuant to section 10(b) and (g) of the c. Ways to enhance the quality, Home Owners’ Loan Act (12 U.S.C. internal Agency Tracking Number to utility, and clarity of the information to 1467a(b) and (g)); and with respect to ‘‘FR K’’ for the purpose of consistency. be collected; U.S. branches and agencies of foreign FOR FURTHER INFORMATION CONTACT: d. Ways to minimize the burden of banks pursuant to sections 7(c) and Federal Reserve Board Clearance information collection on respondents, 13(a) of the International Banking Act of Officer—Nuha Elmaghrabi—Office of including through the use of automated 1978 (12 U.S.C. 3105(c) and 3108(a)). the Chief Data Officer, Board of collection techniques or other forms of Because the recordkeeping provisions Governors of the Federal Reserve information technology; and are contained within guidance, which is System, Washington, DC 20551, (202) e. Estimates of capital or startup costs nonbinding, these provisions are 452–3829. Telecommunications Device and costs of operation, maintenance, voluntary. There are no reporting forms for the Deaf (TDD) users may contact and purchase of services to provide associated with the recordkeeping (202) 263–4869, Board of Governors of information. provisions of the Interagency Statement. the Federal Reserve System, At the end of the comment period, the Because any policies, procedures, or Washington, DC 20551. comments and recommendations other records that were voluntarily Office of Management and Budget received will be analyzed to determine created pursuant to the guidance in the (OMB) Desk Officer—Shagufta Ahmed— the extent to which the Board should Interagency Statement would be Office of Information and Regulatory modify the proposal. maintained at each financial institution, Affairs, Office of Management and

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Budget, New Executive Office Building, compliance, (2) independent testing of Board of Governors of the Federal Reserve Room 10235, 725 17th Street NW, compliance by the institution’s System, May 9, 2019. Washington, DC 20503 or by fax to (202) personnel or by an outside party, (3) the Michele Taylor Fennell, 395–6974. designation of an individual or Assistant Secretary of the Board. SUPPLEMENTARY INFORMATION: On June individuals for coordinating and [FR Doc. 2019–09970 Filed 5–14–19; 8:45 am] 15, 1984, OMB delegated to the Board monitoring day-to-day compliance, and BILLING CODE 6210–01–P authority under the Paperwork (4) training for appropriate personnel.1 Reduction Act (PRA) to approve and The compliance program must be assign OMB control numbers to approved by the board of directors of FEDERAL RESERVE SYSTEM collection of information requests and the state member bank, Edge requirements conducted or sponsored corporation, or agreement corporation Agency Information Collection by the Board. Board-approved and must be noted in the institution’s Activities: Announcement of Board collections of information are minutes. In the case of a branch, agency, Approval Under Delegated Authority incorporated into the official OMB or representative office of a foreign and Submission to OMB bank, the compliance program may be inventory of currently approved AGENCY: Board of Governors of the collections of information. Copies of the approved by the foreign bank’s board of Federal Reserve System. PRA Submission, supporting statements directors and noted in the minutes or SUMMARY: and approved collection of information approved by a delegee acting under the The Board of Governors of the instrument(s) are placed into OMB’s express authority of the foreign bank’s Federal Reserve System (Board) is public docket files. The Board may not board of directors. adopting a proposal to extend for three conduct or sponsor, and the respondent Legal authorization and years, with revision, the Application to is not required to respond to, an confidentiality: The FR K is authorized Become a Savings and Loan Holding information collection that has been pursuant to the Federal Deposit Company or to Acquire a Savings extended, revised, or implemented on or Insurance Act (12 U.S.C. 1818(s)), which Association or Savings and Loan after October 1, 1995, unless it displays requires the federal banking agencies, Holding Company (FR LL–10(e); OMB a currently valid OMB control number. including the Board, to (1) prescribe No. 7100–0336). regulations requiring the institutions DATES: The revisions are applicable as of Final Approval Under OMB Delegated they regulate to establish and maintain May 1, 2019. Authority of the Extension for Three procedures reasonably designed to FOR FURTHER INFORMATION CONTACT: Years, Without Revision, of the assure and monitor compliance with the Federal Reserve Board Clearance Following Information Collection BSA and (2) to review such procedures Officer—Nuha Elmaghrabi—Office of Report title: Recordkeeping during the course of their the Chief Data Officer, Board of Requirements of Regulation H and examinations.2 The FR K is mandatory. Governors of the Federal Reserve Regulation K Associated with the Because the Federal Reserve will not System, Washington, DC, 20551 (202) Procedures for Monitoring Bank Secrecy collect this information, confidentiality 452–3829. Telecommunications Device Act Compliance. issues would normally not arise. for the Deaf (TDD) users may contact Agency form number: FR K. Because the records will be retained at (202) 263–4869, Board of Governors of OMB control number: 7100–0310. banking organizations, the Freedom of the Federal Reserve System, Frequency: Annually. Information Act (FOIA) will only be Washington, DC 20551. Respondents: State member banks; implicated if the Board’s examiners OMB Desk Officer—Shagufta Edge and agreement corporations; and retain a copy of the record as part of an Ahmed—Office of Information and certain U.S. branches, agencies, and examination or supervision of a banking Regulatory Affairs, Office of representative offices of foreign banks institution. In that case, the records Management and Budget, New supervised by the Board. Estimated number of respondents: would be exempt from disclosure under Executive Office Building, Room 10235, Establish compliance program—1; exemption 8 of the FOIA, which 725 17th Street NW, Washington, DC maintenance of compliance program— protects examination materials from 20503 or by fax to (202) 395–6974. 957. disclosure (5 U.S.C. 552(b)(8)). SUPPLEMENTARY INFORMATION: On June Estimated average hours per response: Exemption 4 of the FOIA, which 15, 1984, the Office of Management and Establish compliance program—16; protects confidential financial Budget (OMB) delegated to the Board maintenance of compliance program—4. information, may also be applicable (5 authority under the Paperwork Estimated annual burden hours: U.S.C. 552(b)(4)). Reduction Act (PRA) to approve and Establish compliance program—16; Current actions: On February 5, 2019, assign OMB control numbers to maintenance of compliance program— the Board published a notice in the collection of information requests and 3,828. Federal Register (84 FR 1731) requirements conducted or sponsored General description of report: The requesting public comment for 60 days by the Board. Board-approved Board’s Regulation K and Regulation H on the extension, without revision, of collections of information are require state member banks, Edge and the FR K. The comment period for this incorporated into the official OMB agreement corporations and, except for notice expired on April 8, 2019. The inventory of currently approved a federal branch or a federal agency or Board did not receive any comments. collections of information. Copies of the a state branch that is insured by the Paperwork Reduction Act Submission, Federal Deposit Insurance Corporation, 1 See 12 CFR 208.63(c); these specific supporting statements and approved requirements are incorporated by reference in 12 the U.S. branches, agencies, and CFR 211.5(m)(1) and 211.24(j)(1). collection of information instrument(s) representative offices of foreign banks 2 The Board’s authority in 12 U.S.C. 1818(s) to are placed into OMB’s public docket supervised by the Board to establish a prescribe regulations includes the entities required files. The Board may not conduct or written Bank Secrecy Act (BSA) to comply with section 208.63 of the Board’s sponsor, and the respondent is not Regulation H (12 CFR 208.63) and sections compliance program that includes the 211.5(m)(1) and 211.24(j)(1) of the Board’s required to respond to, an information following components: (1) A system of Regulation K (12 CFR 211.5(m)(1) and 12 CFR collection that has been extended, internal controls to assure ongoing 211.24(j)(1)). revised, or implemented on or after

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October 1, 1995, unless it displays a FR LL–10(e). The comment period for of Consumer Protection, Federal Trade currently valid OMB control number. this notice expired on January 29, 2019. Commission, 600 Pennsylvania Avenue Final approval under OMB delegated The Board did not receive any NW, Washington, DC 20580. authority of the extension for three comments. On March 8, 2019, the Board SUPPLEMENTARY INFORMATION: Pursuant years, with revision, of the following published an additional notice in the to Section 6(f) of the Federal Trade information collection: Federal Register (84 FR 8527) Commission Act, 15 U.S.C. 46(f), and Report title: Application to Become a requesting public comment on the FTC Rule 2.34, 16 CFR 2.34, notice is Savings and Loan Holding Company or proposed certification page that was hereby given that the above-captioned to Acquire a Savings Association or mistakenly omitted from the original consent agreement containing a consent Savings and Loan Holding Company. notice. The comment period for this order to cease and desist, having been Agency form number: FR LL–10(e). notice expired on April 8, 2019. The filed with and accepted, subject to final OMB control number: 7100–0336. Board did not receive any comments. approval, by the Commission, has been Effective Date: May 1, 2019 The revisions will be implemented as placed on the public record for a period Frequency: Event generated. proposed. Respondents: Entities seeking prior of thirty (30) days. The following approval to become or acquire a savings Board of Governors of the Federal Reserve Analysis to Aid Public Comment System, May 9, 2019. and loan holding company (SLHC). describes the terms of the consent Estimated number of respondents: 15. Michele Taylor Fennell, agreement and the allegations in the Estimated average hours per response: Assistant Secretary of the Board. complaint. An electronic copy of the 60. [FR Doc. 2019–09951 Filed 5–14–19; 8:45 am] full text of the consent agreement Estimated annual burden hours: 900. BILLING CODE 6210–01–P package can be obtained from the FTC General description of report: This Home Page (for May 8, 2019), on the collection of information consists of World Wide Web, at https:// information that must be filed in FEDERAL TRADE COMMISSION www.ftc.gov/news-events/commission- connection with certain proposals actions. [File No. 182 3085] involving the formation, acquisition, or You can file a comment online or on merger of an SLHC. The Board requires National Floors Direct, Inc.; Analysis paper. For the Commission to consider the submission of this filing from an To Aid Public Comment your comment, we must receive it on or applicant for regulatory and supervisory before June 14, 2019. Write ‘‘National purposes and to allow the Board to AGENCY: Federal Trade Commission. Floors Direct; File No. 182 3085’’ on fulfill its statutory obligations to review ACTION: Proposed consent agreement; your comment. Your comment— these transactions under section l0(e) of request for comment. including your name and your state— the Home Owners’ Loan Act (HOLA) will be placed on the public record of SUMMARY: and the Board’s Regulation LL—Savings The consent agreement in this this proceeding, including, to the extent and Loan Holding Companies. The matter settles alleged violations of practicable, on the https:// federal law prohibiting unfair or Board uses the information submitted www.regulations.gov website. deceptive acts or practices. The attached by applicants to evaluate these Postal mail addressed to the Analysis to Aid Public Comment transactions with respect to the Commission is subject to delay due to describes both the allegations in the financial and managerial resources and heightened security screening. As a complaint and the terms of the consent future prospects of the company(ies) result, we encourage you to submit your order—embodied in the consent and savings association(s) involved, the comments online through the https:// agreement—that would settle these effect of the acquisition on the savings www.regulations.gov website. allegations. association(s), the insurance risk to the If you prefer to file your comment on Deposit Insurance Fund, the DATES: Comments must be received on paper, write ‘‘National Floors Direct; convenience and needs of communities or before June 14, 2019. File No. 182 3085’’ on your comment to be served, and competitive effects.1 ADDRESSES: Interested parties may file and on the envelope, and mail your Legal authorization and comments online or on paper, by comment to the following address: confidentiality: The FR LL–10(e) is following the instructions in the Federal Trade Commission, Office of the authorized pursuant to Section 10(b)(2) Request for Comment part of the Secretary, 600 Pennsylvania Avenue of the Home Owners’ Loan Act (12 SUPPLEMENTARY INFORMATION section NW, Suite CC–5610 (Annex D), U.S.C. 1467a(b)) and is mandatory. The below. Write: ‘‘National Floors Direct; Washington, DC 20580; or deliver your information on the FR LL–10(e) is not File No. 182 3085’’ on your comment, comment to the following address: considered confidential unless the and file your comment online at https:// Federal Trade Commission, Office of the applicant requests confidential www.regulations.gov by following the Secretary, Constitution Center, 400 7th treatment pursuant to exemption 4 instructions on the web-based form. If Street SW, 5th Floor, Suite 5610 (Annex (confidential business information) or 6 you prefer to file your comment on D), Washington, DC 20024. If possible, (confidential personal information) of paper, mail your comment to the submit your paper comment to the the Freedom of Information Act, 5 following address: Federal Trade Commission by courier or overnight U.S.C. 552(b)(4) and (b)(6). All such Commission, Office of the Secretary, service. requests for confidential treatment 600 Pennsylvania Avenue NW, Suite Because your comment will be placed would be reviewed on a case-by-case CC–5610 (Annex D), Washington, DC on the publicly accessible website at basis. 20580, or deliver your comment to the https://www.regulations.gov, you are Current actions: On November 30, following address: Federal Trade solely responsible for making sure that 2018, the Board published a notice in Commission, Office of the Secretary, your comment does not include any the Federal Register (83 FR 61635) Constitution Center, 400 7th Street SW, sensitive or confidential information. In requesting public comment for 60 days 5th Floor, Suite 5610 (Annex D), particular, your comment should not on the extension, with revision, of the Washington, DC 20024. include any sensitive personal FOR FURTHER INFORMATION CONTACT: Carl information, such as your or anyone 1 See 12 U.S.C. 1467a(e)(2). H. Settlemyer (202–326–2019), Bureau else’s Social Security number; date of

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birth; driver’s license number or other a consent order as to National Floors cannot be enforced, and that those state identification number, or foreign Direct, Inc. (‘‘respondent’’). customers can publish their honest country equivalent; passport number; The proposed consent order (‘‘order’’) reviews about the respondent, even if financial account number; or credit or has been placed on the public record for their comments are negative. debit card number. You are also solely 30 days for receipt of comments by Part III requires the respondent to responsible for making sure that your interested persons. Comments received submit signed acknowledgments that comment does not include any sensitive during this period will become part of relevant personnel received the order. health information, such as medical the public record. After 30 days, the Part IV requires the respondent to file records or other individually Commission will again review the order compliance reports with the identifiable health information. In and the comments received, and will Commission, and to notify the addition, your comment should not decide whether it should withdraw the Commission of bankruptcy filings or include any ‘‘trade secret or any order or make it final. changes in corporate structure that commercial or financial information This matter involves the respondent’s might affect compliance obligations. which . . . is privileged or use of non-disparagement provisions in Part V contains recordkeeping confidential’’—as provided by Section consumer form contracts in its sale and requirements for personnel records, 6(f) of the FTC Act, 15 U.S.C. 46(f), and installation of flooring and carpeting. consumer contracts, communications FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— The complaint alleges that the with consumers threatening any legal including in particular competitively respondent violated Section 2(c) of the action relating to any review; and court sensitive information such as costs, Consumer Review Fairness Act filings and the company’s discovery sales statistics, inventories, formulas, (‘‘CRFA’’) by offering to consumers form responses in legal actions over patterns, devices, manufacturing contracts that contained a non- consumer reviews, as well as all records processes, or customer names. disparagement provision made void by necessary to demonstrate compliance or Section 2(b) of the CRFA. The CRFA Comments containing material for non-compliance with the order. defines a form contract as a contract which confidential treatment is Part VI contains other requirements with standardized terms, used in the requested must be filed in paper form, related to the Commission’s monitoring course of selling or leasing goods or must be clearly labeled ‘‘Confidential,’’ of the respondent’s order compliance. services, and imposed on an individual Part VII provides the effective dates of and must comply with FTC Rule 4.9(c). without a meaningful opportunity for the order, including that, with In particular, the written request for such individual to negotiate the exceptions, the order will terminate in confidential treatment that accompanies standardized terms. 20 years. the comment must include the factual The order includes injunctive relief The purpose of this analysis is to and legal basis for the request, and must that prohibits these alleged violations facilitate public comment on the order, identify the specific portions of the and fences in similar and related and it is not intended to constitute an comment to be withheld from the public conduct involving the use of contract official interpretation of the complaint record. See FTC Rule 4.9(c). Your terms that prohibit, restrict, penalize, or or order, or to modify the order’s terms comment will be kept confidential only transfer rights in consumer reviews or in any way. if the General Counsel grants your evaluation of the respondent, its goods, By direction of the Commission. request in accordance with the law and or its services. The CRFA authorizes the the public interest. Once your comment Commission to seek civil penalties for April J. Tabor, has been posted on the public FTC knowing violations, but the complaint Acting Secretary. website—as legally required by FTC does not allege that the respondent’s [FR Doc. 2019–09953 Filed 5–14–19; 8:45 am] Rule 4.9(b)—we cannot redact or violations were knowing, and the order BILLING CODE 6750–01–P remove your comment from the FTC does not provide for monetary relief. website, unless you submit a Part I prohibits, in the sale or leasing confidentiality request that meets the of any good or service, the respondent FEDERAL TRADE COMMISSION requirements for such treatment under from: Offering to any prospective [File No. 182 3077] FTC Rule 4.9(c), and the General customer a contract, or offering to any Counsel grants that request. customer a renewal contract, that A Waldron HVAC, LLC; Analysis To Visit the FTC website at http:// includes a review-limiting term; Aid Public Comment www.ftc.gov to read this Notice and the requiring that a customer accept such a news release describing it. The FTC Act term as a condition of the respondent’s AGENCY: Federal Trade Commission. and other laws that the Commission fulfillment of its obligations under ACTION: Proposed consent agreement. administers permit the collection of contracts entered into before the SUMMARY: The consent agreement in this public comments to consider and use in effective date of the order; or attempting matter settles alleged violations of this proceeding, as appropriate. The to enforce or assert the validity of such federal law prohibiting unfair or Commission will consider all timely a term in a customer contract entered deceptive acts or practices. The attached and responsive public comments that it into before the effective date of the Analysis to Aid Public Comment receives on or before June 14, 2019. For order. Part I would not require that the describes both the allegations in the information on the Commission’s respondent publish or host the content complaint and the terms of the consent privacy policy, including routine uses of any person, affect any other legal order—embodied in the consent permitted by the Privacy Act, see duty of a party to a contract, or affect agreement—that would settle these https://www.ftc.gov/site-information/ any cause of action arising from the allegations. privacy-policy. breach of such duty. Part II requires the respondent to DATES: Comments must be received on Analysis of Proposed Consent Order To notify by mail or email customers with or before June 14, 2019. Aid Public Comment whom it entered into form contracts ADDRESSES: Interested parties may file The Federal Trade Commission with a non-disparagement provision on comments online or on paper, by (‘‘Commission’’) has accepted, subject to or after March 14, 2017 that the non- following the instructions in the final approval, an agreement containing disparagement provision is void and Request for Comment part of the

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SUPPLEMENTARY INFORMATION section NW, Suite CC–5610 (Annex D), news release describing it. The FTC Act below. Write: ‘‘A Waldron HVAC, LLC; Washington, DC 20580; or deliver your and other laws that the Commission File No. 182 3077’’ on your comment, comment to the following address: administers permit the collection of and file your comment online at https:// Federal Trade Commission, Office of the public comments to consider and use in www.regulations.gov by following the Secretary, Constitution Center, 400 7th this proceeding, as appropriate. The instructions on the web-based form. If Street SW, 5th Floor, Suite 5610 (Annex Commission will consider all timely you prefer to file your comment on D), Washington, DC 20024. If possible, and responsive public comments that it paper, mail your comment to the submit your paper comment to the receives on or before June 14, 2019. For following address: Federal Trade Commission by courier or overnight information on the Commission’s Commission, Office of the Secretary, service. privacy policy, including routine uses 600 Pennsylvania Avenue NW, Suite Because your comment will be placed permitted by the Privacy Act, see CC–5610 (Annex D), Washington, DC on the publicly accessible website at https://www.ftc.gov/site-information/ 20580, or deliver your comment to the https://www.regulations.gov, you are privacy-policy. following address: Federal Trade solely responsible for making sure that your comment does not include any Analysis of Proposed Consent Order To Commission, Office of the Secretary, Aid Public Comment Constitution Center, 400 7th Street SW, sensitive or confidential information. In 5th Floor, Suite 5610 (Annex D), particular, your comment should not The Federal Trade Commission Washington, DC 20024. include any sensitive personal (‘‘Commission’’) has accepted, subject to information, such as your or anyone final approval, an agreement containing FOR FURTHER INFORMATION CONTACT: Carl a consent order as to A Waldron HVAC, H. Settlemyer (202–326–2019), Bureau else’s Social Security number; date of LLC and Thomas J. Waldron of Consumer Protection, Federal Trade birth; driver’s license number or other (‘‘respondents’’). Commission, 600 Pennsylvania Avenue state identification number, or foreign country equivalent; passport number; The proposed consent order (‘‘order’’) NW, Washington, DC 20580. financial account number; or credit or has been placed on the public record for SUPPLEMENTARY INFORMATION: Pursuant debit card number. You are also solely 30 days for receipt of comments by to Section 6(f) of the Federal Trade responsible for making sure that your interested persons. Comments received Commission Act, 15 U.S.C. 46(f), and comment does not include any sensitive during this period will become part of FTC Rule 2.34, 16 CFR 2.34, notice is health information, such as medical the public record. After 30 days, the hereby given that the above-captioned records or other individually Commission will again review the order consent agreement containing a consent identifiable health information. In and the comments received, and will order to cease and desist, having been addition, your comment should not decide whether it should withdraw the filed with and accepted, subject to final include any ‘‘trade secret or any order or make it final. approval, by the Commission, has been commercial or financial information This matter involves the respondents’ placed on the public record for a period which . . . is privileged or use of non-disparagement provisions in of thirty (30) days. The following confidential’’—as provided by Section consumer form contracts in the course Analysis to Aid Public Comment 6(f) of the FTC Act, 15 U.S.C. 46(f), and of selling their recreational horseback describes the terms of the consent FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— riding services. The complaint alleges agreement and the allegations in the including in particular competitively that the respondents violated Section complaint. An electronic copy of the sensitive information such as costs, 2(c) of the Consumer Review Fairness full text of the consent agreement sales statistics, inventories, formulas, Act (‘‘CRFA’’) by offering to consumers package can be obtained from the FTC patterns, devices, manufacturing form contracts that contained Home Page (for May 8, 2019), on the processes, or customer names. nondisparagement provisions made World Wide Web, at https:// Comments containing material for void by Section 2(b) of the CRFA. The www.ftc.gov/news-events/commission- which confidential treatment is CRFA defines a form contract as a actions. requested must be filed in paper form, contract with standardized terms, used You can file a comment online or on must be clearly labeled ‘‘Confidential,’’ in the course of selling or leasing goods paper. For the Commission to consider and must comply with FTC Rule 4.9(c). or services, and imposed on an your comment, we must receive it on or In particular, the written request for individual without a meaningful before June 14, 2019. Write ‘‘A Waldron confidential treatment that accompanies opportunity for such individual to HVAC, LLC; File No. 182 3077’’ on your the comment must include the factual negotiate the standardized terms. comment. Your comment—including and legal basis for the request, and must The order includes injunctive relief your name and your state—will be identify the specific portions of the that prohibits these alleged violations placed on the public record of this comment to be withheld from the public and fences in similar and related proceeding, including, to the extent record. See FTC Rule 4.9(c). Your conduct involving the use of contract practicable, on the https:// comment will be kept confidential only terms that prohibit, restrict, penalize, or www.regulations.gov website. if the General Counsel grants your transfer rights in consumer reviews or Postal mail addressed to the request in accordance with the law and evaluation of the respondents, their Commission is subject to delay due to the public interest. Once your comment goods, or their services. The CRFA heightened security screening. As a has been posted on the public FTC authorizes the Commission to seek civil result, we encourage you to submit your website—as legally required by FTC penalties for knowing violations, but the comments online through the https:// Rule 4.9(b)—we cannot redact or complaint does not allege that the www.regulations.gov website. remove your comment from the FTC respondents’ violations were knowing, If you prefer to file your comment on website, unless you submit a and the order does not provide for paper, write ‘‘A Waldron HVAC, LLC; confidentiality request that meets the monetary relief. File No. 182 3077’’ on your comment requirements for such treatment under Part I prohibits, in the sale or leasing and on the envelope, and mail your FTC Rule 4.9(c), and the General of any good or service, the respondents comment to the following address: Counsel grants that request. from: Offering to any prospective Federal Trade Commission, Office of the Visit the FTC website at http:// customer a contract, or offering to any Secretary, 600 Pennsylvania Avenue www.ftc.gov to read this Notice and the customer a renewal contract, that

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includes a review-limiting term; which include allegations that the FEDERAL TRADE COMMISSION requiring that a customer accept such a companies failed to employ reasonable term as a condition of the respondents’ security to protect consumers’ sensitive [File No. 182 3098] fulfillment of their obligations under data. The orders obtained in these contracts entered into before the matters contain strong injunctive LVTR LLC; Analysis To Aid Public effective date of the order; or attempting provisions, including new requirements Comment to enforce or assert the validity of such that go beyond requirements from AGENCY: Federal Trade Commission. a term in customer contracts entered previous data security orders. For ACTION: Proposed consent agreement. into before the effective date of the example, the orders include order. Part I would not require that the requirements that a senior officer SUMMARY: The consent agreement in this respondents publish or host the content provide annual certifications of matter settles alleged violations of of any person, affect any other legal compliance to the Commission, and federal law prohibiting unfair or duty of a party to a contract, or affect explicit provisions prohibiting the deceptive acts or practices. The attached any cause of action arising from the defendants from making Analysis to Aid Public Comment breach of such duty. misrepresentations to the third parties describes both the allegations in the Part II requires the respondents to conducting assessments of their data complaint and the terms of the consent notify by mail or email customers with security programs. These new order—embodied in the consent whom they entered into form contracts requirements will provide greater agreement—that would settle these with a non-disparagement provision on assurances that consumers’ data will be allegations. or after March 14, 2017 that the non- protected going forward. DATES: Comments must be received on disparagement provision is void and Since joining the Commission, we or before June 14, 2019. cannot be enforced, and that those have instructed staff to closely review customers can publish their honest our orders to determine whether they ADDRESSES: Interested parties may file reviews about the respondents, even if could be strengthened and improved— comments online or on paper, by their comments are negative. particularly in the areas of privacy and following the instructions in the Part III requires the respondents to data security. Through ongoing Request for Comment part of the submit signed acknowledgments that discussions both internally and with SUPPLEMENTARY INFORMATION section relevant personnel received the order. below. Write: ‘‘LVTR LLC; File No. 182 Part IV requires the respondents to external stakeholders, including through our public Hearings on Competition and 3098’’ on your comment, and file your file compliance reports with the comment online at https:// Commission, and to notify the Consumer Protection in the 21st Century and the comment process,2 we continue www.regulations.gov by following the Commission of bankruptcy filings or instructions on the web-based form. If changes in company structure that to consider changes to our orders. We will adjust our data security orders, as you prefer to file your comment on might affect compliance obligations. paper, mail your comment to the Part V contains recordkeeping needed, to reflect our ongoing discussions regarding the FTC’s following address: Federal Trade requirements for personnel records, Commission, Office of the Secretary, consumer contracts, communications remedial authority and needs, as well as the specific facts and circumstances of 600 Pennsylvania Avenue NW, Suite with consumers threatening any legal CC–5610 (Annex D), Washington, DC action relating to any review; and court each case. 20580, or deliver your comment to the filings and the company’s discovery We are particularly committed to following address: Federal Trade responses in legal actions over strengthening the order provisions Commission, Office of the Secretary, consumer reviews, as well as all records regarding data security assessments of Constitution Center, 400 7th Street SW, necessary to demonstrate compliance or companies by third parties. The 5th Floor, Suite 5610 (Annex D), noncompliance with the order. Commission expects that these third Washington, DC 20024. Part VI contains other requirements parties will faithfully assess data related to the Commission’s monitoring security practices to identify potential FOR FURTHER INFORMATION CONTACT: Carl of the respondents’ order compliance. noncompliance with appropriate order H. Settlemyer (202–326–2019), Bureau Part VII provides the effective dates of provisions. Future orders will better of Consumer Protection, Federal Trade the order, including that, with ensure that third-party assessors know Commission, 600 Pennsylvania Avenue exceptions, the order will terminate in they are accountable for providing NW, Washington, DC 20580. 20 years. meaningful, independent analysis of the SUPPLEMENTARY INFORMATION: Pursuant The purpose of this analysis is to data practices under examination. The to Section 6(f) of the Federal Trade facilitate public comment on the order, announcements today reflect the Commission Act, 15 U.S.C. 46(f), and and it is not intended to constitute an beginning of our thinking, but we FTC Rule 2.34, 16 CFR 2.34, notice is official interpretation of the complaint anticipate further refinements, and these hereby given that the above-captioned or order, or to modify the order’s terms orders may not reflect the approach that consent agreement containing a consent in any way. we intend to use in every data security order to cease and desist, having been By direction of the Commission. enforcement action going forward. filed with and accepted, subject to final April J. Tabor, [FR Doc. 2019–09955 Filed 5–14–19; 8:45 am] approval, by the Commission, has been Acting Secretary. BILLING CODE 6750–01–P placed on the public record for a period of thirty (30) days. The following Statement of the Federal Trade Analysis to Aid Public Comment Commission statement focuses specifically on the data security requirements set forth in the proposed stipulated describes the terms of the consent April 24, 2019 order. agreement and the allegations in the Today, the Commission announces 2 See, e.g., FTC Hearings on Competition and complaint. An electronic copy of the Consumer Protection in the 21st Century (Session 1 full text of the consent agreement cases against Clixsense and i-Dressup, 9—Data Security), Dec. 11–12, 2018, https:// www.ftc.gov/news-events/events-calendar/ftc- package can be obtained from the FTC 1 Although the Commission’s settlement with i- hearing-competition-consumer-protection-21st- Home Page (for May 8, 2019), on the Dressup addresses broader COPPA violations, this century-december-2018. World Wide Web, at https://

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www.ftc.gov/news-events/commission- Comments containing material for CRFA defines a form contract as a actions. which confidential treatment is contract with standardized terms, used You can file a comment online or on requested must be filed in paper form, in the course of selling or leasing goods paper. For the Commission to consider must be clearly labeled ‘‘Confidential,’’ or services, and imposed on an your comment, we must receive it on or and must comply with FTC Rule 4.9(c). individual without a meaningful before June 14, 2019. Write ‘‘LVTR LLC; In particular, the written request for opportunity for such individual to File No. 182 3098’’ on your comment. confidential treatment that accompanies negotiate the standardized terms. Your comment—including your name the comment must include the factual The order includes injunctive relief and your state—will be placed on the and legal basis for the request, and must that prohibits these alleged violations public record of this proceeding, identify the specific portions of the and fences in similar and related including, to the extent practicable, on comment to be withheld from the public conduct involving the use of contract the https://www.regulations.gov record. See FTC Rule 4.9(c). Your terms that prohibit, restrict, penalize, or website. comment will be kept confidential only transfer rights in consumer reviews or Postal mail addressed to the if the General Counsel grants your evaluation of the respondents, their Commission is subject to delay due to request in accordance with the law and goods, or their services. The CRFA heightened security screening. As a the public interest. Once your comment authorizes the Commission to seek civil result, we encourage you to submit your has been posted on the public FTC penalties for knowing violations, but the comments online through the https:// website—as legally required by FTC complaint does not allege that the www.regulations.gov website. Rule 4.9(b)—we cannot redact or respondents’ violations were knowing, If you prefer to file your comment on remove your comment from the FTC and the order does not provide for paper, write ‘‘LVTR LLC; File No. 182 website, unless you submit a monetary relief. Part I prohibits, in the sale or leasing 3098’’ on your comment and on the confidentiality request that meets the of any good or service, the respondents envelope, and mail your comment to the requirements for such treatment under from: Offering to any prospective following address: Federal Trade FTC Rule 4.9(c), and the General customer a contract, or offering to any Commission, Office of the Secretary, Counsel grants that request. Visit the FTC website at http:// customer a renewal contract, that 600 Pennsylvania Avenue NW, Suite www.ftc.gov to read this Notice and the includes a review-limiting term; CC–5610 (Annex D), Washington, DC news release describing it. The FTC Act requiring that a customer accept such a 20580; or deliver your comment to the and other laws that the Commission term as a condition of the respondents’ following address: Federal Trade administers permit the collection of fulfillment of their obligations under Commission, Office of the Secretary, public comments to consider and use in contracts entered into before the Constitution Center, 400 7th Street SW, this proceeding, as appropriate. The effective date of the order; or attempting 5th Floor, Suite 5610 (Annex D), Commission will consider all timely to enforce or assert the validity of such Washington, DC 20024. If possible, and responsive public comments that it a term in customer contracts entered submit your paper comment to the receives on or before June 14, 2019. For into before the effective date of the Commission by courier or overnight information on the Commission’s order. Part I would not require that the service. privacy policy, including routine uses respondents publish or host the content Because your comment will be placed permitted by the Privacy Act, see of any person, affect any other legal on the publicly accessible website at https://www.ftc.gov/site-information/ duty of a party to a contract, or affect https://www.regulations.gov, you are privacy-policy. any cause of action arising from the solely responsible for making sure that breach of such duty. your comment does not include any Analysis of Proposed Consent Order To Part II requires the respondents to sensitive or confidential information. In Aid Public Comment notify customers via their website that particular, your comment should not The Federal Trade Commission the nondisparagement provisions in include any sensitive personal (‘‘Commission’’) has accepted, subject to their form contracts are void and cannot information, such as your or anyone final approval, an agreement containing be enforced, and that customers who else’s Social Security number; date of a consent order as to LVTR LLC and entered into contracts with those birth; driver’s license number or other Tomi A. Truax (‘‘respondents’’). provisions can publish their honest state identification number, or foreign The proposed consent order (‘‘order’’) reviews about the respondents, even if country equivalent; passport number; has been placed on the public record for their comments are negative. financial account number; or credit or 30 days for receipt of comments by Part III requires the respondents to debit card number. You are also solely interested persons. Comments received submit signed acknowledgments that responsible for making sure that your during this period will become part of relevant personnel received the order. comment does not include any sensitive the public record. After 30 days, the Part IV requires the respondents to health information, such as medical Commission will again review the order file compliance reports with the records or other individually and the comments received, and will Commission, and to notify the identifiable health information. In decide whether it should withdraw the Commission of bankruptcy filings or addition, your comment should not order or make it final. changes in company structure that include any ‘‘trade secret or any This matter involves the respondents’ might affect compliance obligations. commercial or financial information use of non-disparagement provisions in Part V contains recordkeeping which . . . is privileged or consumer form contracts in the course requirements for personnel records, confidential’’—as provided by Section of selling their recreational horseback consumer contracts, communications 6(f) of the FTC Act, 15 U.S.C. 46(f), and riding services. The complaint alleges with consumers threatening any legal FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— that the respondents violated Section action relating to any review; and court including in particular competitively 2(c) of the Consumer Review Fairness filings and the company’s discovery sensitive information such as costs, Act (‘‘CRFA’’) by offering to consumers responses in legal actions over sales statistics, inventories, formulas, form contracts that contained consumer reviews, as well as all records patterns, devices, manufacturing nondisparagement provisions made necessary to demonstrate compliance or processes, or customer names. void by Section 2(b) of the CRFA. The noncompliance with the order.

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Part VI contains other requirements Center for Environmental Health, www.cdc.gov/mmwr/preview/ related to the Commission’s monitoring Centers for Disease Control and mmwrhtml/rr6208a1.htm. of the respondents’ order compliance. Prevention, Attn: Docket No. CDC– Public Participation Part VII provides the effective dates of 2019–0045, 4770 Buford Highway NE, the order, including that, with Mailstop F–60, Atlanta, Georgia 30341. Interested persons or organizations exceptions, the order will terminate in Instructions: All submissions received are invited to participate by submitting 20 years. must include the agency name and written views, information, The purpose of this analysis is to Docket Number. All relevant comments recommendations, and data. In addition, facilitate public comment on the order, received will be posted without change CDC invites comments (and supporting and it is not intended to constitute an to http://regulations.gov, including any data or other material, if applicable) official interpretation of the complaint personal information provided. For specifically on these following or order, or to modify the order’s terms access to the docket to read background questions: in any way. documents or comments received, go to 1. Based on your personal or By direction of the Commission. http://www.regulations.gov. professional experience, what are the April J. Tabor, FOR FURTHER INFORMATION CONTACT: best approaches for public health Acting Secretary. Alisha Etheredge, Centers for Disease agencies to: a. Respond to community concerns [FR Doc. 2019–09952 Filed 5–14–19; 8:45 am] Control and Prevention, National Center about potential cancer clusters? BILLING CODE 6750–01–P for Environmental Health, Division of Environmental Health Science and b. assess and evaluate potential cancer Practice, 4770 Buford Highway NE, clusters? Mailstop F–60, Atlanta, GA 30341; c. communicate and engage with DEPARTMENT OF HEALTH AND affected community members and other HUMAN SERVICES Telephone: 770–488–4024; Email: [email protected]. stakeholders throughout all stages of Centers for Disease Control and SUPPLEMENTARY INFORMATION: assessing and responding to a potential Prevention cancer cluster? Background 2. If you are familiar with the 2013 [Docket No. CDC–2019–0045] The current guidelines, Investigating Guidelines, please answer the following questions: Updating Federal Guidelines Used by Suspected Cancer Clusters and a. What are the strengths of the 2013 Public Health Agencies To Assess and Responding to Community Concerns: Guidelines? What would you like to see Respond to Potential Cancer Clusters Guidelines from CDC and the Council of retained in the updated guidelines? in Communities State and Territorial Epidemiologists (2013 Guidelines), were published in Please describe why. AGENCY: Centers for Disease Control and the Morbidity and Mortality Weekly b. What gaps and challenges exist in Prevention (CDC), Department of Health Report (MMWR) in September 2013 (see the 2013 Guidelines? For stated and Human Services (HHS). the Supporting & Related Material tab of challenges, what are possible solutions ACTION: Request for information. this docket). The 2013 Guidelines are a to overcoming them? tool to assist state, tribal, local, and 3. What other factors should CDC SUMMARY: The Centers for Disease territorial (STLT) public health agencies consider when updating the 2013 Control and Prevention (CDC) in the in applying a systematic approach when Guidelines? Please describe why these Department of Health and Human responding to inquiries about suspected factors are important to consider. Services (HHS) announces the opening cancer clusters in residential or Please note that comments received, of a docket to obtain public comment on community settings. including attachments and other updating federal guidelines used by Since publication of the 2013 supporting materials, are part of the public health agencies to assess and Guidelines, there have been technical public record and are subject to public respond to potential cancer clusters in and scientific advancements in areas disclosure. Comments will be posted on communities. CDC is working with the such as data availability, analytic and https://www.regulations.gov. Therefore, Agency for Toxic Substances and geospatial methods, and cancer do not include any information in your Disease Registry (ATSDR) to develop genomics. CDC is updating the 2013 comment or supporting materials that updated guidelines to ensure that state, Guidelines to ensure that STLT public you consider confidential or tribal, local, and territorial (STLT) health agencies and stakeholders have inappropriate for public disclosure. If public health agencies and stakeholders access to information about current you include your name, contact have access to information about current scientific tools and approaches to assess information, or other information that scientific tools and approaches to assess and respond to potential cancer clusters identifies you in the body of your and respond to potential cancer clusters. in communities. The updated guidance comments, that information will be on The purpose of this notice is to solicit will also provide members of the public public display. CDC will review all feedback on best approaches for with information about how STLT submissions and may choose to redact, assessing and responding to potential public health agencies may address or withhold, submissions containing cancer clusters in communities. individual and community concerns private or proprietary information such DATES: Written comments must be about potential cancer clusters. CDC as Social Security numbers, medical received on or before July 15, 2019. will update the 2013 Guidelines based information, inappropriate language, or ADDRESSES: You may submit comments, on input from subject matter experts, duplicate/near duplicate examples of a identified by Docket No. CDC–2019– STLT public health agencies, the public, mass-mail campaign. CDC will carefully 0045 by any of the following methods: and other stakeholders. consider all comments submitted during • Federal eRulemaking Portal: http:// the process of updating federal Supporting Material www.regulations.gov. Follow the guidelines used by public health instructions for submitting comments. The 2013 Guidelines can be found in agencies to assess and respond to • Mail: Division of Environmental the Supporting Materials tab of this potential cancer clusters in Health Science and Practice, National docket or accessed at https:// communities.

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Dated: May 10, 2019. emerging models of integrated health entities to provide education and Sandra Cashman, care. support for the Aging Network. Executive Secretary, Centers for Disease Program Name: Enhancing the Establishing an entirely new grant Control and Prevention. Knowledge and Skills of the Aging project at this time would be potentially [FR Doc. 2019–09998 Filed 5–14–19; 8:45 am] Network. disruptive to the current work already BILLING CODE 4163–18–P Recipient: Meals on Wheels America. well under way. More importantly, it Period of Performance: The could cause confusion among the Aging supplement award will be issued for the Network Nutrition Program Providers, DEPARTMENT OF HELATH AND second year of a three year project which could have a negative effect on HUMAN SERVICES period of Sept 1, 2017 to August 31, training and support opportunities. If 2020. this supplement were not provided, the Administration for Community Living Total Award Amount: $482,390 in FY project would be unable to address the 2019. significant unmet educational needs of Intent To Award a Single-Source Award Type: Cooperative Agreement the Aging Network Nutrition Program Supplement to the National Aging Supplement. Providers. Network Statutory Authority: The Older Americans Act (OAA) of 1965, as Dated: May 9, 2019. AGENCY: Administration for Community amended, Public Law 114–144. Mary Lazare, Living, HHS. Principal Deputy Administrator . Basis for Award ACTION: Notice. [FR Doc. 2019–10029 Filed 5–14–19; 8:45 am] Meals on Wheels America (MOWA) is BILLING CODE 4154–01–P SUMMARY: The Administration for currently funded to carry out the Community Living is announcing its objectives of this project through its intent to Award a Single-Source current project entitled, National DEPARTMENT OF HEALTH AND Supplement to provide the National Resource Center on Nutrition and Aging HUMAN SERVICES Aging Network with timely, relevant, for the period of September 1, 2017 high quality opportunities to further through August 31, 2020. Since the Food and Drug Administration enhance their knowledge and skills project’s implementation, the grantee [Docket No. FDA–2012–N–0386] related to nutrition services. has made satisfactory progress toward FOR FURTHER INFORMATION CONTACT: For its approved work plan. The Agency Information Collection further information or comments supplement will enable the grantee to Activities; Submission for Office of regarding this program supplement, carry their work even further, enhancing Management and Budget Review; contact Keri Lipperini, U.S. Department the support they provide to the Aging Comment Request; Registration and of Health and Human Services, Network Nutrition Program Providers. Product Listing for Owners and Administration for Community Living, The additional funding will not be used Operators of Domestic Tobacco Administration on Aging, Office of to begin new projects or activities, but Product Establishments and Listing of Nutrition and Health Promotion rather to continue to enhance efforts Ingredients in Tobacco Products Programs, 202–795–7422, email specific to tribal populations and [email protected]. congregate meal settings. AGENCY: Food and Drug Administration, SUPPLEMENTARY INFORMATION: The MOWA is uniquely positioned to HHS. Administration for Community Living complete the work called for under this ACTION: Notice. (ACL) announces the intent to award a project. They have an already single-source supplement to the current established infrastructure and are a SUMMARY: The Food and Drug cooperative agreement held by Meals on known and trusted organization in the Administration (FDA) is announcing Wheels America for the project Aging Network. They have an that a proposed collection of Enhancing the Knowledge and Skills of established presence within much of the information has been submitted to the the Aging Network. The purpose of this Aging Network. Under this current Office of Management and Budget supplement is to: (1) Support the award period, they are providing (OMB) for review and clearance under development and dissemination of educational opportunities for the Aging the Paperwork Reduction Act of 1995 resources for experienced and Network Nutrition Program Providers, (PRA). inexperienced Aging Network Nutrition including webinars and live trainings. DATES: Fax written comments on the Program providers; and (2) enhance They have a comprehensive, interactive collection of information by June 14, peer-learning opportunities for State web-based repository 2019. Units on Aging (SUAs), Area Agencies (www.nutritionandaging.org) with tools ADDRESSES: To ensure that comments on on Aging (AAAs), and Nutrition and resources, including—but not the information collection are received, Program providers. limited to—issues briefs, policy and The administrative supplement for FY practice models, and toolkits. They have OMB recommends that written 2019 will be in the amount of $257,401, also presented to the Aging Network comments be faxed to the Office of bringing the total award for FY 2019 to locally and on a national level. They Information and Regulatory Affairs, OMB, Attn: FDA Desk Officer, Fax: 202– $482,390. have reached thousands of providers _ The additional funding will not be using their: (1) Comprehensive database 395–7285, or emailed to oira used to begin new projects, but it will of SUAs, AAAs, and other Nutrition [email protected]. All be used to enhance existing efforts. The Program Providers; and (2) Leadership comments should be identified with the grantee will continue to provide Academy, which provides expert OMB control number 0910–0650. Also appropriate, quality nutrition-related consultation around nutrition program include the FDA docket number found resources, address new opportunities to delivery and the use of technology to in brackets in the heading of this embed nutrition services within the enhance services. In addition, they have document. home and community-based service developed partnerships with FOR FURTHER INFORMATION CONTACT: systems, and engage successfully in organizations, universities, and other Amber Sanford, Office of Operations,

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Food and Drug Administration, Three premarket review under section 910 of tobacco additive or increasing in White Flint North, 10A–12M, 11601 the FD&C Act (21 U.S.C. 387j); (5) a quantity an existing tobacco additive, Landsdown St., North Bethesda, MD copy of all consumer information and except for those additives that have 20852, 301–796–8867, PRAStaff@ other labeling; (6) a representative been designated by FDA through fda.hhs.gov. sampling of advertisements; (7) upon regulation as not a human or animal SUPPLEMENTARY INFORMATION: In request made by the Secretary for good carcinogen, or otherwise harmful to compliance with 44 U.S.C. 3507, FDA cause, a copy of all advertisements for health under intended conditions of has submitted the following proposed a particular tobacco product; and (8) use; and (3) advise FDA in writing at collection of information to OMB for upon request made by the Secretary, if least 60 days prior to eliminating or review and clearance. the registrant has determined that a decreasing an existing additive, or tobacco product contained in the adding or increasing an additive that Registration and Product Listing for product list is not subject to a tobacco has been designated by FDA through Owners and Operators of Domestic product standard established under regulation as not a human or animal Tobacco Product Establishments and section 907 of the FD&C Act, a brief carcinogen, or otherwise harmful to Listing of Ingredients in Tobacco statement of the basis upon which the health under intended conditions of Products registrant made such determination. use. FDA collects the information OMB Control Number 0910–0650— FDA collects the information submitted pursuant to section 905 of the Extension submitted pursuant to sections 904(a)(1) FD&C Act through an electronic portal, and (c) of the FD&C Act through an On June 22, 2009, the Family and through paper forms (Forms FDA electronic portal, and through a paper Smoking Prevention and Tobacco 3741 and FDA 3741a) for those form (Form FDA 3742) for those Control Act (Tobacco Control Act) (Pub. individuals who choose not to use the individuals who choose not to use the L. 111–31) was signed into law. The electronic portal. electronic portal. Tobacco Control Act amended the FDA has also published a guidance In addition to the development of the Federal Food, Drug, and Cosmetic Act for industry entitled ‘‘Registration and electronic portal and paper form, FDA (FD&C Act) by adding, among other Product Listing for Owners and published a guidance entitled ‘‘Listing things, a chapter granting FDA Operators of Domestic Tobacco Product of Ingredients in Tobacco Products.’’ important authority to regulate the Establishments’’ (https://www.fda.gov/ This guidance is intended to assist manufacture, marketing, and downloads/TobaccoProducts/Labeling/ persons making tobacco product distribution of tobacco products to RulesRegulationsGuidance/ ingredient listing submissions. FDA also protect the public health generally and UCM191940.pdf). This guidance is provides a technical guide, embedded to reduce tobacco use by minors. The intended to assist persons making hints, and a web tutorial to the Tobacco Control Act created new tobacco product establishment electronic portal. requirements for the tobacco industry. registration and product listing Section 101 of the Tobacco Control Act submissions to FDA. The Tobacco Control Act also gave amended the FD&C Act by adding Section 904(a)(1) of the FD&C Act FDA the authority to issue a regulation sections 905 and 904 (21 U.S.C. 387e requires that each tobacco product deeming all other products that meet the and 387d). manufacturer or importer submit ‘‘a statutory definition of a tobacco product Section 905 of the FD&C Act requires listing of all ingredients, including to be subject to chapter 9 of the FD&C the annual registration of any tobacco, substances, compounds, and Act (section 901(b) (21 U.S.C. 387a(b)). ‘‘establishment in any State engaged in additives that are, as of such date, added On May 10, 2016, FDA issued that rule, the manufacture, preparation, by the manufacturer to the tobacco, extending FDA’s tobacco product compounding, or processing of a paper, filter, or other part of each authority to all products that meet the tobacco product or tobacco products.’’ tobacco product by brand and by definition of tobacco product in the law Section 905 requires this registration be quantity in each brand and subbrand’’ (except for accessories of newly completed by December 31 of each year. by December 22, 2009. This section regulated tobacco products), including The Secretary of Health and Human applies only to those tobacco products electronic nicotine delivery systems, Services (Secretary) has delegated to the manufactured and distributed before cigars, hookah, pipe tobacco, nicotine Commissioner of Food and Drugs the June 22, 2009, and which are still gels, dissolvables that were not already responsibility for administering the manufactured as of the date of the subject to the FD&C Act, and other FD&C Act, including section 905. ingredient listing submission. tobacco products that may be developed Section 905 of the FD&C Act requires Section 904(c) of the FD&C Act in the future (81 FR 28974 at 28976) owners or operators of each requires that a tobacco product (‘‘the final deeming rule’’). establishment to register: (1) Their manufacturer: (1) Provide all In the Federal Register of October 23, name; (2) places of business; (3) a list of information required under section 2018 (83 FR 53478), FDA published a all tobacco products that are 904(a) of the FD&C Act to FDA ‘‘at least 60-day notice requesting public manufactured by that person; (4) a copy 90 days prior to the delivery for comment on the proposed collection of of all labeling and a reference to the introduction into interstate commerce of information. Two comments were authority for the marketing of any a tobacco product not on the market on received; however, neither were PRA tobacco product subject to a tobacco the date of enactment’’ of the Tobacco related. product standard under section 907 of Control Act; (2) advise FDA in writing FDA estimates the burden of this the FD&C Act (21 U.S.C. 387g) or to at least 90 days prior to adding any new collection of information as follows:

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TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

Number of Average FDA form/activity/FD&C act section Number of responses per Total annual burden per Total hours respondents respondent responses response

Tobacco Product Establishment Initial Registra- 100 1 100 1.6...... 160 tion and Listing; Form FDA 3741 Registration and Product Listing for Owners and Operators of Domestic Establishments (Electronic and Paper submissions); Section 905(b), (c), (d), (h), or (i). Tobacco Product Establishment Renewal Reg- 3,578 1 3,578 0.16 (10 minutes) ...... 572 istration and Listing; Form FDA 3741 Reg- istration and Product Listing for Owners and Operators of Domestic Establishments (Elec- tronic and Paper submissions); Section 905(b), (c), (d), (h), or (i). Tobacco Product Listing; Form FDA 3742 List- 10 1 10 2...... 20 ing of Ingredients (Electronic and Paper sub- missions); Section 904(a)(1). Tobacco Product Listing; Form FDA 3742 List- 35 2 70 0.40 (24 minutes) ...... 28 ing of Ingredients (Electronic and Paper sub- missions); Section 904(c). Obtaining a Dun and Bradstreet D–U–N–S 100 1 100 0.5 (30 minutes) ...... 50 Number.

Total ...... 830 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

The PRA burden estimates have been establishments will submit 1 initial FDA estimates that the submission of updated to fully incorporate the use of establishment registration and product ingredient listings required by section an electronic system known as FURLS listing report each year. Such new 904(a)(1) of the FD&C Act for each for submitting registration and product establishments potentially include new establishment will take 2 hours initially. listing information to FDA. With the vape shop locations that mix or Because this burden estimate covers a FURLS, manufacturers can enter assemble products on the market as of timeframe of 3 years, we anticipate information quickly and easily. For the final deeming rule effective date. almost all section 904(a)(1) tobacco example, product label pictures can be The Agency estimates that up to 100 ingredient submissions to have been uploaded directly. We anticipate that tobacco establishments will each submit received before the expiration of the most, if not all companies, already have 1 initial establishment registration and current approval (prior to November 8, electronic versions of their labels for product listing report each year, which 2018, for small manufacturers and for printing, sales, or marketing purposes. is expected to take 1.6 hours, for a total large manufacturers, May 8, 2018). We Product listing information is 160 burden hours. are estimating approximately 30 provided at the time of registration. manufacturers may miss their deadline. FDA estimates that the confirmation Currently, registration and listing This is based on estimates of how many or updating of establishment registration requirements only apply to domestic large manufacturers we are aware of that establishments engaged in the and product listing information as have missed their deadline. Because this manufacture, preparation, required by section 905 of the FD&C Act burden estimate covers 3 years, we are compounding, or processing of a will take 10 minutes annually per dividing by 3, to yield 10 respondents tobacco product. This includes confirmation or update per as a yearly average for this estimate. importers to the extent that they engage establishment. Based on FDA’s Therefore, FDA estimates that 10 in the manufacture, preparation, experience with current establishment establishments will initially submit 1 compounding, or processing of a registration and product listings report annually at 2 hours per report, for tobacco product, including repackaging submitted to the Agency, the Agency a total of 20 hours. or otherwise changing the container, estimates that on average 3,578 Submissions under 904(c) of the wrapper, or labeling of any tobacco establishments will each submit 1 FD&C Act are for any new product that product package. Foreign confirmation or updated report each is not yet on the market (e.g., if on the establishments are not required to year, which is expected to take 0.16 market due to deeming compliance register and list until FDA issues hour (10 minutes) for a total 572 burden period); newly deemed product regulations establish such requirements hours. manufacturers should have submitted in accordance with section 905(h) of the FDA estimates that we have received under section 904(a)(1) of the FD&C Act. FD&C Act. To account for the foregoing, most tobacco product ingredient This includes any statutorily regulated we include both domestic submissions for large manufacturers of product that would receive a marketing manufacturing establishments and deemed products. Small manufacturers’ authorization and any new deemed importers in our estimates. deadline for ingredient submissions is product not subject to the deeming Because the deadline for initial November 2018. This is based on the compliance period. For deemed product establishment registration and product counts we have to date (July 2018), categories, while we anticipate receiving listing for both statutorily regulated and including statutorily regulated products a large number of premarket deemed products has passed, FDA (based on information in our tracking applications, there is a portion of these estimates that few (up to 100) new system). applicants who will have reported their

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ingredients under section 904(a)(1) as SUMMARY: In compliance with of the Conference, and develop an online most of these submissions are expected Paperwork Reduction Act of 1995, curriculum for clinical learners. to be for products subject to the HRSA has submitted an Information The RWHAP AETC proposes several deeming compliance period. Collection Request (ICR) to the Office of revisions to the Event Records (ER) and Based on FDA’s experience and the Management and Budget (OMB) for the Participant Information Form (PIF). actual number of product ingredient review and approval. Comments The ER will have 11 new data elements; listings submitted over the past 3 years, submitted during the first public review however, only 7 data elements will FDA estimates that 35 establishments of this ICR will be provided to OMB. require responses from all respondents. will each submit 2 reports (1 every 6 OMB will accept further comments from The option to respond to the other four months). FDA also estimates that the the public during the review and data elements will depend on how confirmation or updating of product approval period. participants respond to previous (ingredient) listing information required DATES: Comments on this ICR should be questions. There are four data element by section 904(c) of the FD&C Act is received no later than June 14, 2019. deletions to the ER. expected to take 0.40 hour (24 minutes) ADDRESSES: Submit your comments, The PIF will have one new data and will take 48 minutes annually for including the ICR Title, to the desk element that asks whether respondents two confirmations or updates per officer for HRSA, either by email to prescribe antiretroviral therapy to their establishment, for a total 28 burden [email protected] or by patients. Two data elements were hours. FDA estimates that obtaining a fax to 202–395–5806. deleted. These revisions reflect changes DUNS (data universal numbering FOR FURTHER INFORMATION CONTACT: To in the National AETC program guidance system) number will take 30 minutes. request a copy of the clearance requests on reporting sources of funding and FDA assumes that all new establishment submitted to OMB for review, email Lisa multi-session events. facilities that will be required to Wright-Solomon, the HRSA Information Despite a net increase of eight data initially register under section 905 of Collection Clearance Officer, at elements across both the ER and PIF the FD&C Act would obtain a DUNS [email protected] or call (301) 443– instruments, pilot respondents reported number. FDA estimates that up to 100 1984. a decrease in burden. HRSA HAB establishments would need to obtain SUPPLEMENTARY INFORMATION: modified the data instruments to help this number each year. The total Information Collection Request Title: inform the evaluation of AETC industry burden to obtain a DUNS HRSA Ryan White HIV/AIDS Program outcomes, improve the logical flow of number is 50 hours. AIDS Education and Training Centers questions within each instrument and to FDA estimates the total burden for Evaluation Activities: (OMB No. 0915– improve the overall clarity of each of the this collection to be 830 hours. We have 0281) Revision. questions being asked. adjusted our burden estimate, which has Abstract: The RWHAP AETC A 60-day Federal Register Notice was resulted in a decrease of 93,086 hours to program, authorized by Title XXVI of published in the Federal Register on the currently approved burden. Based the Public Health Service Act, supports December 18, 2018, vol. 83, No. 242; pp. on data we reviewed from the past 3 a network of regional and national 64845–47. There were no public years and projecting the number of centers that conduct targeted, comments. remaining establishments that have not multidisciplinary education and Need and Proposed Use of the registered and submitted product training programs for health care Information: As part of an ongoing effort ingredient listings, we revised the providers serving people living with to evaluate RWHAP AETC activities, number of respondents and burden HIV (PLWH). The purpose of the information is needed on AETC training hours in this information collection. RWHAP AETC program is to increase sessions, clinical consultations, and the size and strengthen the skills of the technical assistance activities. Each Dated: May 9, 2019. current and novice HIV clinical regional center collects information on Lowell J. Schiller, workforce in the United States and to RWHAP AETC training events and is Principal Associate Commissioner for Policy. develop and disseminate information on required to report aggregate data on [FR Doc. 2019–09997 Filed 5–14–19; 8:45 am] treatment and prevention of HIV to at- their activities to HRSA’s HAB. The goal BILLING CODE 4164–01–P risk populations. Through the provision of national data collection efforts is to of specialized professional education create a uniform set of data elements and training, the RWHAP Regional that will produce an accurate summary DEPARTMENT OF HEALTH AND AETCs aim to improve outcomes along of the national scope of RWHAP AETC HUMAN SERVICES the HIV care continuum including professional training, consultation, and diagnosis, linkage, retention, and viral events. The elements included in the Health Resources and Services suppression and to reduce HIV national database have been selected for Administration incidence by improving the their relevance in demonstrating the Agency Information Collection achievement and maintenance of viral RWHAP AETCs’ efforts in achieving the Activities: Submission to OMB for load suppression of PLWH. In addition, program’s stated goals: To improve care Review and Approval; Public Comment the RWHAP AETC program includes the for PLWH by providing education, Request; Information Collection National Coordinating Resource Center training, and clinical consultation; and Request Title: HRSA Ryan White HIV/ (NCRC), which offers a virtual library of to provide support to clinicians and AIDS Program AIDS Education and online training resources for adaptation other providers. HRSA HAB uses the Training Centers Evaluation Activities, by HIV care providers and other data collected when conducting OMB No. 0915–0281—Revision healthcare professionals to meet local programmatic assessments and to training needs. The RWHAP AETC determine future program needs. The AGENCY: Health Resources and Services NCRC works closely with the HRSA national data elements are intended to Administration (HRSA), Department of HIV/AIDS Bureau (HAB) to coordinate be a meaningful core set of elements Health and Human Services (HHS). cross-regional collaborative efforts, that individual RWHAP AETCs can use manage the NCRC website, plan and in programmatic and strategic planning. ACTION: Notice. execute the national RWHAP Clinical HRSA HAB also uses this information to

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respond to requests from HHS, Burden Statement: Burden in this personnel and to be able to respond to Congress, and others. context means the time expended by a collection of information; to search Likely Respondents: RWHAP AETC persons to generate, maintain, retain, data sources; to complete and review trainees are asked to complete the PIF disclose, or provide the information the collection of information; and to either at the start or at conclusion of an requested. This includes the time transmit or otherwise disclose the event. Trainers are asked to complete an needed to review instructions; to information. The total annual burden ER for each training event they conduct develop, acquire, install, and utilize hours estimated for this ICR are during the year. In addition, each technology and systems for the purpose summarized in the table below. regional RWHAP AETC (eight total) and of collecting, validating, and verifying the RWHAP AETC National The estimated annual response information, processing and Coordinating Resource Center will burden to trainers, as well as trainees of maintaining information, and disclosing compile these data into a data set and training programs is follows: submit to HRSA HAB once a year. and providing information; to train

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

Participant Information Form (PIF) ...... 61,288 1 61,288 0.05 3,064 Event Record (ER) ...... 10,522 1 10,522 0.13 1,368

Total ...... 71,810 ...... 71,810 ...... 4,432

The estimated annual burden to RWHAP AETCs is as follows:

Responses Number of per Total Hours Total burden respondents respondent responses per response hours

Aggregate Data Set ...... 9 1 9 10 90

Amy P. McNulty, should send an email to [email protected]. FOR FURTHER INFORMATION CONTACT: Acting Director, Division of the Executive Registration information is available on Jomana Musmar, Designated Federal Secretariat. the website http://www.hhs.gov/ash/ Officer, Presidential Advisory Council [FR Doc. 2019–09976 Filed 5–14–19; 8:45 am] carb/ and must be completed by July 2, on Combating Antibiotic-Resistant BILLING CODE 4165–15–P 2019; all in-person attendees must pre- Bacteria, Office of the Assistant register by this date. Additional Secretary for Health, U.S. Department of information about registering for the Health and Human Services, Room DEPARTMENT OF HEALTH AND meeting and providing public comment L133, Switzer Building, 330 C St. SW, HUMAN SERVICES can be obtained at http://www.hhs.gov/ Washington, DC 20201. Phone Number: (202) 795–7678. Email: [email protected]. Meeting of the Presidential Advisory ash/carb/ on the Meetings page. Council on Combating Antibiotic- DATES: The meeting is scheduled to be SUPPLEMENTARY INFORMATION: Under Resistant Bacteria held on July 10, 2019, from 9:00 a.m. to Executive Order 13676, dated September 18, 2014, authority was given AGENCY: 5:00 p.m. and July 11, 2019, from 9:00 Office of the Assistant to the Secretary of HHS to establish the Secretary for Health, Office of the a.m. to 5:00 p.m. ET (times are tentative and subject to change). The confirmed Advisory Council, in consultation with Secretary, Department of Health and the Secretaries of Defense and Human Services. times and agenda items for the meeting will be posted on the website for the Agriculture. Activities of the Advisory ACTION: Notice. Advisory Council at http:// Council are governed by the provisions SUMMARY: As stipulated by the Federal www.hhs.gov/ash/carb/ when this of Public Law 92–463, as amended (5 Advisory Committee Act, the information becomes available. Pre- U.S.C. App.), which sets forth standards Department of Health and Human registration for attending the meeting in for the formation and use of federal Services (HHS) is hereby giving notice person is required to be completed no advisory committees. that a meeting is scheduled to be held later than July 2, 2019; public The Advisory Council will provide for the Presidential Advisory Council on attendance at the meeting is limited to advice, information, and Combating Antibiotic-Resistant Bacteria the available space. recommendations to the Secretary of (Advisory Council). The meeting will be HHS regarding programs and policies open to the public; a public comment ADDRESSES: Hilton McLean Tysons intended to support and evaluate the session will be held during the meeting. Corner, International Ballroom C, 7920 implementation of Executive Order Pre-registration is required for members Jones Branch Dr., McLean, VA 22102. 13676, including the National Strategy of the public who wish to attend the The meeting can also be accessed for Combating Antibiotic-Resistant meeting and who wish to participate in through a live webcast and via Bacteria and the National Action Plan the public comment session. Individuals teleconference on the day of the for Combating Antibiotic-Resistant who wish to attend the meeting and/or meeting. For more information, visit Bacteria. The Advisory Council shall send in their public comment via email http://www.hhs.gov/ash/carb/. function solely for advisory purposes.

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In carrying out its mission, the public comments received prior to July member of the Committee are currently Advisory Council will provide advice, 2, 2019, will be provided to Advisory being accepted. information, and recommendations to Council members; comments are limited DATES: Nominations must be received the Secretary regarding programs and to five minutes per speaker. no later than 11:59 p.m. June 14, 2019. policies intended to preserve the Dated: May 2, 2019. ADDRESSES: All nominations must be effectiveness of antibiotics by Jomana F. Musmar, submitted via email at SUDCommittee@ optimizing their use; advance research Designated Federal Officer, Presidential hhs.gov with the subject line: to develop improved methods for Advisory Council on Combating Antibiotic- Interdepartmental SUD Coordinating combating antibiotic resistance and Resistant Bacteria, Committee Manager. Committee. conducting antibiotic stewardship; [FR Doc. 2019–09971 Filed 5–14–19; 8:45 am] strengthen surveillance of antibiotic- FOR FURTHER INFORMATION CONTACT: resistant bacterial infections; prevent BILLING CODE 4150–44–P Roula K. Sweis, Psy.D., M.A., Chief, the transmission of antibiotic-resistant Operations and Management, Office of bacterial infections; advance the DEPARTMENT OF HEALTH AND the Assistant Secretary for Health; U.S. development of rapid point-of-care and HUMAN SERVICES Department of Health and Human agricultural diagnostics; further research Services; Telephone: 202–260–6619; on new treatments for bacterial Establishment of the Interdepartmental Fax: 202–690–4631; Email address: infections; develop alternatives to Substance Use Disorders Coordinating [email protected] (please antibiotics for agricultural purposes; Committee and Solicitation of indicate in the subject line: maximize the dissemination of up-to- Nominations for Committee Members Interdepartmental SUD Coordinating date information on the appropriate and Committee). The Committee charter may proper use of antibiotics to the general AGENCY: Office of the Assistant be accessed online at https:// public and human and animal Secretary for Health, Office of the www.hhs.gov/ash/advisory-committees/ healthcare providers; and improve Secretary, U.S. Department of Health substance-use-disorders/index.html. international coordination of efforts to and Human Services. The charter includes detailed combat antibiotic resistance. ACTION: Notice. information about the purpose, The public meeting will be dedicated function, and structure of the SUMMARY: The U.S. Department of to the council’s deliberation and vote on Committee. the National Action Plan (NAP) on Health and Human Services (HHS) SUPPLEMENTARY INFORMATION: Combating Antibiotic Resistance hereby announces the establishment of Section Bacteria (CARB) 2019 Working Group’s the Interdepartmental Substance Use 7022 of the Substance Use-Disorder (WG) report out on their draft response Disorders Coordinating Committee Prevention that Promotes Opioid to the Secretary of the Department of (Committee) pursuant to Section 7022 of Recovery and Treatment for Patients Health and Human Services (HHS) on the Substance Use-Disorder Prevention and Communities Act (SUPPORT Act, identifying priority areas for the next that Promotes Opioid Recovery and Pub. L. 115–271) requires the HHS iteration of the NAP on CARB, 2020– Treatment for Patients and Communities Secretary, in coordination with the 2025. The remainder of the two-day Act. The Committee will consist of Director of National Drug Control public meeting will include panel representatives of specific federal Policy, to establish the presentations and council discussions agencies and non-federal individuals Interdepartmental Substance Use surrounding emerging antifungals, and and entities who represent diverse Disorders Coordinating Committee. The provider challenges and educational disciplines and views. The Committee Committee will consist of solutions to influence antibiotic will identify areas for improved representatives of specific federal stewardship and One Health. The coordination related to substance abuse, agencies and non-federal individuals meeting agenda will be posted on the including research, services, supports and entities who represent diverse Advisory Council website at http:// and prevention activities across all disciplines and views. The Committee www.hhs.gov/ash/carb/ when it has relevant Federal agencies. In identifying will identify areas for improved been finalized. All agenda items are areas for coordination, the committee coordination related to substance abuse, tentative and subject to change. will provide recommendations for including research, services, supports Public attendance at the meeting is improving Federal programs for the and prevention activities across all limited to the available space. prevention and treatment of, and relevant Federal agencies. In identifying Individuals who plan to attend and recovery from, substance use disorders, areas for coordination, the committee need special assistance, such as sign including by expanding access to will provide recommendations for language interpretation or other prevention, treatment and recovery improving Federal programs for the reasonable accommodations, should services. They will also analyze prevention and treatment of, and notify the Advisory Council at the substance use disorder prevention and recovery from, substance use disorders, address/telephone number listed above treatment strategies in different regions including by expanding access to at least one week prior to the meeting. of and populations in the United States prevention, treatment and recovery For those unable to attend in person, a and evaluate the extent to which services. They will also analyze live webcast will be available. More Federal substance use disorder and substance use disorder prevention and information on registration and treatment strategies are aligned with treatment strategies in different regions accessing the webcast can be found at State and local substance disorder and of and populations in the United States http://www.hhs.gov/ash/carb/. treatment strategies. and evaluate the extent to which Members of the public will have the Through this notice, HHS is also Federal substance use disorder and opportunity to provide comments prior requesting nominations of individuals treatment strategies are aligned with to the Advisory Council meeting by who are interested in being considered State and local substance disorder and emailing [email protected]. Public for appointment to the Committee. treatment strategies. comments should be sent in by Resumes or curricula vitae from Objectives and Scope of Activities. midnight July 2, 2019, and should be qualified individuals who wish to be The Committee will perform the limited to no more than one page. All considered for appointment as a following duties:

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(1) Identify areas for improved one or more additional three-year terms. Estimated Number and Frequency of coordination of activities, if any, related A vacancy on the Committee will be Meetings. The Committee will meet not to substance use disorders, including filled in the same manner in which the less than two times a year each year, research, services, supports, and original appointment was made. Any and these may be conducted by prevention activities across all relevant individual appointed to fill a vacancy teleconference or video conference at Federal agencies; for an unexpired term will be appointed the discretion of the DFO. The meetings (2) identify and provide to the for the remainder of such a term and will be open to the public, except as Secretary recommendations for may serve after the expiration of such determined otherwise by the Secretary, improving Federal programs for the term until a successor has been or other official to whom authority has prevention and treatment of, and appointed. No member of the been delegated, in accordance with the recovery from, substance use disorders, Committee shall serve as a guidelines under Government in the including by expanding access to Representative member. Sunshine Act, 5 U.S.C. 552b(c). Notice prevention, treatment, and recovery At least two members shall be of all meetings will be provided to the services; individuals who have received public in accordance with the FACA. (3) analyze substance use disorder treatment for a diagnosis of substance Meetings will be conducted and records prevention and treatment strategies in use disorder; at least two members shall of the proceedings will be kept, as different regions of and populations in be directors of State substance abuse required by applicable laws and the United States and evaluate the agencies; at least two members shall be departmental policies. A quorum for the extent to which Federal substance use representatives of leading research, conduct of business by the full disorder prevention and treatment advocacy or service organizations for Committee will consist of a majority of strategies are aligned with State and individuals with substance use current appointed members. local substance use disorder prevention disorders; at least two members shall be When the Secretary or Secretary’s and treatment strategies; a physician, licensed mental health designee determines that a meeting will (4) make recommendations to the professional, advance practice registered be closed or partially closed to the Secretary regarding any appropriate public, in accordance with stipulations changes with respect to the activities nurse, or physician assistant; and have experience in treating individuals with of Government in the Sunshine Act, 5 and strategies described in paragraphs U.S.C. 552b(c), then a report will be (1) through (3); substance use disorders; at least one member shall be a substance use prepared by the DFO that includes, at a (5) make recommendations to the minimum, a list of members and their disorder treatment professional who Secretary regarding public participation business addresses, the Committee’s provides treatment services at a certified in decisions relating to substance use functions, date and place of the meeting, opioid treatment program; at least one disorders and the process by which and a summary of the Committee’s member shall be a substance use public feedback can be better integrated activities and recommendations made disorder treatment professional who has into such decisions; and during the fiscal year. A copy of the research or clinical experience in (6) make recommendations to ensure report will be provided to the working with racial and ethnic minority that substance use disorder research, Department Committee Management populations; at least one member shall services, supports, and prevention Officer. activities of the Department of Health be a substance use disorder treatment Nominations. Nominations, including and Human Services and other Federal professional who has research or self-nominations, of individuals who agencies are not unnecessarily clinical mental health experience in have the specified expertise and duplicative. working with medically underserved knowledge will be considered for Membership and Designation. The populations; at least one member shall appointment as members of the Committee shall be composed of the be a State certified substance use Committee. A nomination should following Federal (ex-officio) members: disorder peer support specialist; at least include, at a minimum, the following The Secretary of HHS or designee, who one member shall be a drug court judge for each nominee: (1) A letter of shall serve as the Chair of the or judge with experience in adjudicating nomination that clearly states the name Committee; the Attorney General of the cases related to substance use disorders; and affiliation of the nominee, the basis United States or designee; the Secretary and at least one member shall be an for the nomination, and a statement of Labor or designee; the Secretary of individual with experience providing from the nominee that indicates that the Housing and Urban Development or services for homeless individuals with a individual would be willing to serve as designee; the Secretary of Education or substance use disorder. a member of the Committee (if being designee; the Secretary of Veterans Pursuant to advance written nominated by someone else); (2) the Affairs or designee; the Commissioner of agreement, each non-federal member of address, telephone number, and email Social Security or designee; the the Committee will waive his or her address of the individual being Assistant Secretary for Mental Health right to compensation for performing nominated and the nominator (if and Substance Use or designee; and the services as a member of the Committee. applicable); and (3) a current copy of the Director of National Drug Control Policy However, non-federal members shall nominee’s curriculum vitae or resume, or designee. Representatives of other receive per diem and reimbursement for which should be limited to no more Federal agencies that support or travel expenses incurred in relation to than 10 pages. Incomplete nomination conduct activities or programs related to performing duties for the Commission, packages will not be reviewed. substance abuse disorders, as as authorized by the Federal Advisory Every effort will be made to ensure determined appropriate by the Committee Act (FACA) and 5 U.S.C. that the composition of the Committee Secretary. 5703 for persons who are employed includes individuals from various The Committee shall include a intermittently to perform services for geographic locations, including rural minimum of 15 non-Federal members the Federal government and in and underserved areas; racial and ethnic appointed by the Secretary as special accordance with Federal travel minorities; genders, and persons living government employees (SGEs). These regulations. Ex-officio members of the with disabilities. Individuals other than members will be appointed to terms of Commission remain covered under their officers or employees of the United three years and may be reappointed for current compensation system. States government being considered for

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appointment as members of the Place: Embassy Suites at the Chevy Chase Group; Clinical Neuroimmunology and Brain Committee will be required to complete Pavilion, 4300 Military Road NW, Tumors Study Section. and submit a report of their financial Washington, DC 20015. Date: June 13–14, 2019 holdings. An ethics review must be Contact Person: Weijia Ni, Ph.D., Chief/ Time: 8:00 a.m. to 5:00 p.m. Scientific Review Officer, Center for Agenda: To review and evaluate grant conducted to ensure that individuals Scientific Review, National Institutes of applications. appointed as members of the Committee Health, 6701 Rockledge Drive, Room 3100, Place: Renaissance, Washington, DC Hotel, are not involved in any activity that may MSC 7808, Bethesda, MD 20892, (301) 594– 999 Ninth Street NW, Washington, DC pose a potential conflict of interest for 3292, [email protected]. 20001–4427. the official duties that are to be Name of Committee: Cell Biology Contact Person: Wei-Qin Zhao, Ph.D., performed. This is a federal ethics Integrated Review Group, Molecular and Scientific Review Officer, Center for requirement that must be satisfied upon Integrative Signal Transduction Study Scientific Review, National Institutes of entering the position and annually Section. Health, 6701 Rockledge Drive, Room 5181, Date: June 11–12, 2019. MSC 7846, Bethesda, MD 20892–7846, 301– throughout the established term of Time: 10:00 a.m. to 6:00 p.m. 435–1236, [email protected]. appointment on the Committee. Agenda: To review and evaluate grant Authority: The Interdepartmental Name of Committee: Immunology applications. Integrated Review Group; Vaccines Against Substance Use Disorders Coordinating Place: National Institutes of Health, 6701 Microbial Diseases Study Section. Committee (hereafter referred to as the Rockledge Drive, Bethesda, MD 20892 Date: June 13–14, 2019. Committee) is required under Section (Virtual Meeting). Time: 8:30 a.m. to 5:00 p.m. 7022 of the Substance Use-Disorder Contact Person: Charles Selden, Ph.D., Agenda: To review and evaluate grant Prevention that Promotes Opioid Scientific Review Officer, Center for applications. Scientific Review, National Institutes of Place: Hilton Garden Inn Washington DC Recovery and Treatment for Patients Health, 6701 Rockledge Drive Room 5187 and Communities Act (SUPPORT Act, Franklin Square, 815 14th Street NW, MSC 7840, Bethesda, MD 20892, 301–451– Washington, DC 20005. Pub. L. 115–271). The Committee is 3388, [email protected]. governed by the provisions of the Contact Person: Jian Wang, MD, Ph.D., Name of Committee: Healthcare Delivery Scientific Review Officer, Center for Federal Advisory Committee Act, Public and Methodologies Integrated Review Group; Scientific Review, National Institutes of Law 92–463, as amended (5 U.S.C. Dissemination and Implementation Research Health, 6701 Rockledge Drive, Room 4218, App), which sets forth standards for the in Health Study Section. MSC 7812, Bethesda, MD 20892, (301) 435– formation and use of federal advisory Date: June 12–13, 2019. 2778, [email protected]. committees. Time: 8:00 a.m. to 6:00 p.m. Agenda: To review and evaluate grant Name of Committee: Cell Biology Dated: May 6, 2019. applications. Integrated Review Group, Intercellular Interactions Study Section. Roula K. Sweis, Place: Renaissance New Orleans Pere Date: June 13–14, 2019. Designated Federal Official. Marquette, 817 Common Street, New Orleans, LA 1855201. Time: 11:00 a.m. to 5:00 p.m. [FR Doc. 2019–09969 Filed 5–14–19; 8:45 am] Contact Person: Yvonne Owens Ferguson, Agenda: To review and evaluate grant BILLING CODE 4150–28–P Ph.D., Scientific Review Officer, Center for applications. Scientific Review, National Institutes of Place: National Institutes of Health, 6701 Health, 6701 Rockledge Drive Room 3139, Rockledge Drive, Bethesda, MD 20892, DEPARTMENT OF HEALTH AND Bethesda, MD 20892, 301–827–3689, (Virtual Meeting). HUMAN SERVICES [email protected]. Contact Person: Thomas Y Cho, Ph.D., Name of Committee: Center for Scientific Scientific Review Officer, Center for National Institutes of Health Review Special Emphasis Panel; Scientific Review, 6701 Rockledge Drive, Fellowships: Biophysical, Physiological, Bethesda, MD 20892, 301–402–4179, Center for Scientific Review; Notice of Pharmacological and Bioengineering [email protected]. Closed Meetings Neuroscience. Name of Committee: Center for Scientific Date: June 13–14, 2019. Review Special Emphasis Panel; Clinical Pursuant to section 10(d) of the Time: 8:00 a.m. to 5:00 p.m. Neuroscience and Neurodegeneration. Federal Advisory Committee Act, as Agenda: To review and evaluate grant Date: June 13, 2019. amended, notice is hereby given of the applications. Time: 12:00 p.m. to 1:00 p.m. following meetings. Place: Residence Inn Bethesda, 7335 Agenda: To review and evaluate grant The meetings will be closed to the Wisconsin Avenue, Bethesda, MD 20814. applications. Contact Person: Sussan Paydar, Ph.D., Place: Doubletree Hotel Bethesda, public in accordance with the Scientific Review Officer, Center for (Formerly Holiday Inn Select), 8120 provisions set forth in sections Scientific Review, National Institutes of Wisconsin Avenue, Bethesda, MD 20814. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Health, 6701 Rockledge Drive, RM 5222, Contact Person: Samuel C Edwards, Ph.D., as amended. The grant applications and Bethesda, MD 20817, (301) 827–4994, Chief, BDCN IRG, Center for Scientific the discussions could disclose [email protected]. Review, National Institutes of Health, 6701 confidential trade secrets or commercial Name of Committee: Oncology 1-Basic Rockledge Drive, Room 5210, MSC 7846, property such as patentable material, Translational Integrated Review Group; Bethesda, MD 20892, (301) 435–1246, and personal information concerning Cancer Genetics Study Section. [email protected]. individuals associated with the grant Date: June 13–14, 2019. Name of Committee: Center for Scientific applications, the disclosure of which Time: 8:00 a.m. to 5:00 p.m. Review Special Emphasis Panel; PAR Panel: Agenda: To review and evaluate grant would constitute a clearly unwarranted Cellular and Molecular Biology of Complex applications. Brain Disorders. invasion of personal privacy. Place: Hilton Washington/Rockville, 1750 Date: June 14, 2019. Name of Committee: Center for Scientific Rockville Pike, Rockville, MD 20852. Time: 8:00 a.m. to 6:00 p.m. Review Special Emphasis Panel; Contact Person: Juraj Bies, Ph.D., Scientific Agenda: To review and evaluate grant Psychosocial Risk and Disease Prevention Review Officer, Center for Scientific Review, applications. (PRDP). National Institutes of Health, 6701 Rockledge Place: Villa Florence Hotel, 225 Powell Date: June 10, 2019. Drive, Room 4158, MSC 7806, Bethesda, MD Street, San Francisco, CA 94102. Time: 8:00 a.m. to 5:00 p.m. 20892, 301 435 1256, [email protected]. Contact Person: Afia Sultana, Ph.D., Agenda: To review and evaluate grant Name of Committee: Brain Disorders and Scientific Review Officer, National Institutes applications. Clinical Neuroscience Integrated Review of Health, Center for Scientific Review, 6701

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Rockledge Drive, Room 4189, Bethesda, MD Contact Person: Brenda Lange-Gustafson, DEPARTMENT OF HEALTH AND 20892, (301) 827–7083, sultanaa@ Ph.D., Scientific Review Officer, NIAID/NIH/ HUMAN SERVICES mail.nih.gov. DHHS, Scientific Review Program, 5601 Name of Committee: Center for Scientific Fishers Lane, Room 3G13, Rockville, MD National Institutes of Health Review Special Emphasis Panel; Member 20852, 240–669–5047, bgustafson@ Conflict: Radiation Biology and Cancer niaid.nih.gov. National Institute of Environmental Therapeutics. (Catalogue of Federal Domestic Assistance Health Sciences; Notice of Closed Date: June 14, 2019. Program Nos. 93.855, Allergy, Immunology, Meeting Time: 12:00 p.m. to 3:00 p.m. and Transplantation Research; 93.856, Agenda: To review and evaluate grant Microbiology and Infectious Diseases Pursuant to section 10(d) of the applications. Research, National Institutes of Health, HHS) Federal Advisory Committee Act, as Place: National Institutes of Health, 6701 Dated: May 10, 2019. Rockledge Drive, Bethesda, MD 20892. amended, notice is hereby given of the Contact Person: Nicholas J Donato, Ph.D., Natasha M. Copeland, following meeting. Scientific Review Officer, Center for Program Analyst, Office of Federal Advisory The meeting will be closed to the Committee Policy. Scientific Review, National Institutes of public in accordance with the Health, 6701 Rockledge Drive, Room 4040, [FR Doc. 2019–10062 Filed 5–14–19; 8:45 am] provisions set forth in sections Bethesda, MD 20892, 301–827–4810, BILLING CODE 4140–01–P [email protected]. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., (Catalogue of Federal Domestic Assistance as amended. The grant applications and the discussions could disclose Program Nos. 93.306, Comparative Medicine; DEPARTMENT OF HEALTH AND confidential trade secrets or commercial 93.333, Clinical Research, 93.306, 93.333, HUMAN SERVICES 93.337, 93.393–93.396, 93.837–93.844, property such as patentable material, 93.846–93.878, 93.892, 93.893, National National Institutes of Health and personal information concerning Institutes of Health, HHS) individuals associated with the grant Dated: May 10, 2019. National Institute on Aging; Notice of applications, the disclosure of which Natasha M. Copeland, Closed Meeting would constitute a clearly unwarranted invasion of personal privacy. Program Analyst, Office of Federal Advisory Pursuant to section 10(d) of the Committee Policy. Federal Advisory Committee Act, as Name of Committee: National Institute of [FR Doc. 2019–10058 Filed 5–14–19; 8:45 am] amended, notice is hereby given of the Environmental Health Sciences Special BILLING CODE 4140–01–P Emphasis Panel; Peer Review of R01 Award following meeting. Applications. The meeting will be closed to the Date: May 30–31, 2019. public in accordance with the Time: 8:30 a.m. to 2:00 p.m. DEPARTMENT OF HEALTH AND provisions set forth in sections HUMAN SERVICES Agenda: To review and evaluate grant 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., applications. as amended. The grant applications and National Institutes of Health Place: Hilton Garden Inn Durham the discussions could disclose Southpoint, 7007 Fayetteville Road, Durham, National Institute of Allergy and confidential trade secrets or commercial NC 27713. Infectious Diseases; Notice of Closed property such as patentable material, Contact Person: Laura A. Thomas, Ph.D., Scientific Review Officer, Scientific Review Meeting and personal information concerning individuals associated with the grant Branch, Division of Extramural Research and applications, the disclosure of which Training, National Institute of Environmental Pursuant to section 10(d) of the Health Sciences, Research Triangle Park, NC Federal Advisory Committee Act, as would constitute a clearly unwarranted 27709, 919–541–2824, laura.thomas@ amended, notice is hereby given of the invasion of personal privacy. nih.gov. following meeting. Name of Committee: National Institute on Any interested person may file written The meeting will be closed to the Aging Special Emphasis Panel; Epigenomic comments with the committee by forwarding public in accordance with the changes in Aging and Risks ZAG1–ZIJ G O3. the statement to the Contact Person listed on provisions set forth in sections Date: July 8, 2019. this notice. The statement should include the Time: 12:01 p.m. to 5:00 p.m. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., name, address, telephone number and when Agenda: To review and evaluate grant applicable, the business or professional as amended. The grant applications and applications. affiliation of the interested person. the discussions could disclose Place: National Institute on Aging, (Catalogue of Federal Domestic Assistance confidential trade secrets or commercial Gateway Building, 7201 Wisconsin Avenue, Program Nos. 93.115, Biometry and Risk property such as patentable material, Bethesda, MD 20892 (Telephone Conference Estimation—Health Risks from and personal information concerning Call). Environmental Exposures; 93.142, NIEHS individuals associated with the grant Contact Person: Maurizio Grimaldi, MD, Hazardous Waste Worker Health and Safety applications, the disclosure of which Ph.D., Scientific Review Officer, National Training; 93.143, NIEHS Superfund Institute on Aging, National Institutes of would constitute a clearly unwarranted Hazardous Substances—Basic Research and Health, 7201 Wisconsin Avenue, Room Education; 93.894, Resources and Manpower invasion of personal privacy. 2C218, Bethesda, MD 20892, 301–496–9374, Development in the Environmental Health Name of Committee: National Institute of [email protected]. Sciences; 93.113, Biological Response to Allergy and Infectious Diseases Special (Catalogue of Federal Domestic Assistance Environmental Health Hazards; 93.114, Emphasis Panel; Leadership Group for a Program Nos. 93.866, Aging Research, Applied Toxicological Research and Testing, Clinical Research Network on Antibacterial National Institutes of Health, HHS) Resistance (UM1 Clinical Trial Required). National Institutes of Health, HHS) Date: June 10, 2019. Dated: May 10, 2019. Dated: May 10, 2019. Time: 8:00 a.m. to 5:00 p.m. Melanie J. Pantoja, Natasha M. Copeland, Agenda: To review and evaluate grant Program Analyst, Office of Federal Advisory Program Analyst, Office of Federal Advisory applications Committee Policy. Committee Policy. Place: Hyatt Regency Bethesda, One Bethesda Metro Center, 7400 Wisconsin [FR Doc. 2019–10060 Filed 5–14–19; 8:45 am] [FR Doc. 2019–10066 Filed 5–14–19; 8:45 am] Avenue, Bethesda, MD 20814. BILLING CODE 4140–01–P BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND property such as patentable material, Place: National Institutes of Health, HUMAN SERVICES and personal information concerning Neuroscience Center Building (NSC), 6001 individuals associated with the grant Executive Boulevard, Rockville, MD 20852 National Institutes of Health applications, the disclosure of which (Virtual Meeting). would constitute a clearly unwarranted Contact Person: David I. Sommers, Ph.D., National Institute on Aging; Notice of invasion of personal privacy. Scientific Review Officer, Division of Closed Meeting Extramural Activities, National Institute of Name of Committee: National Institute of Mental Health, NIH, Neuroscience Center, Pursuant to section 10(d) of the Allergy and Infectious Diseases Special Federal Advisory Committee Act, as Emphasis Panel; Vaccine and Treatment 6001 Executive Blvd., Room 6154, MSC 9606, amended, notice is hereby given of the Evaluation Units (VTEUs) (UM1 Clinical Bethesda, MD 20892, 301–443–7861, following meeting. Trial Required). [email protected]. The meeting will be closed to the Date: June 17–18, 2019. This notice is being published less than 15 public in accordance with the Time: 8:00 a.m. to 5:00 p.m. days prior to the meeting due to the timing provisions set forth in sections Agenda: To review and evaluate grant limitations imposed by the review and applications. funding cycle. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Place: Hyatt Regency Bethesda One as amended. The grant applications and Bethesda Metro Center 7400 Wisconsin Name of Committee: National Institute of the discussions could disclose Avenue, Bethesda, MD 20814. Mental Health Special Emphasis Panel; confidential trade secrets or commercial Contact Person: Maryam Feili-Hariri, NIMH Clinical Trials to Test the property such as patentable material, Ph.D., Scientific Review Officer, Scientific Effectiveness of Treatment, Preventive, and and personal information concerning Review Program Division of Extramural Services Interventions (R01). individuals associated with the grant Activities, National Institutes of Health/ Date: May 29, 2019. applications, the disclosure of which NIAID, 5601 Fishers Lane, Rockville, MD Time: 11:30 a.m. to 5:00 p.m. would constitute a clearly unwarranted 20852, 240–669–5026, haririmf@ Agenda: To review and evaluate grant niaid.nih.gov. invasion of personal privacy. applications. (Catalogue of Federal Domestic Assistance Place: National Institutes of Health, Name of Committee: National Institute on Program Nos. 93.855, Allergy, Immunology, Aging Special Emphasis Panel; Alzheimer Neuroscience Center Building (NSC), 6001 and Transplantation Research; 93.856, Centers for Discovery of New Medicines Executive Boulevard, Rockville, MD 20852 Microbiology and Infectious Diseases ZAG1 ZIJ–1 A1. (Virtual Meeting). Research, National Institutes of Health, HHS) Date: June 19, 2019. Contact Person: Marcy Ellen Burstein, Time: 8:00 a.m. to 7:00 p.m. Dated: May 10, 2019. Ph.D., Scientific Review Officer, Division of Agenda: To review and evaluate grant Natasha M. Copeland, Extramural Activities, National Institute of applications. Program Analyst, Office of Federal Advisory Mental Health, NIH, Neuroscience Center, Place: Hilton Garden Inn, 7301 Waverly Committee Policy. 6001 Executive Blvd., Room 6154, MSC 9606, Street, Bethesda, MD 20814. Bethesda, MD 20892, 301–443–9699, Contact Person: Birgit Neuhuber, Ph.D., [FR Doc. 2019–10063 Filed 5–14–19; 8:45 am] [email protected]. Scientific Review Branch, National Institute BILLING CODE 4140–01–P on Aging, Gateway Building, 7201 Wisconsin This notice is being published less than 15 Avenue, Suite 2W–200, Bethesda, MD 20892, days prior to the meeting due to the timing 301–827–6548, [email protected]. DEPARTMENT OF HEALTH AND limitations imposed by the review and (Catalogue of Federal Domestic Assistance HUMAN SERVICES funding cycle. Program Nos. 93.866, Aging Research, Name of Committee: National Institute of National Institutes of Health, HHS) National Institutes of Health Mental Health Special Emphasis Panel; BRAIN Initiative: Research on the Ethical Dated: May 10, 2019. National Institute of Mental Health; Implications of Advancements in Melanie J. Pantoja, Notice of Closed Meeting Neurotechnology and Brain Science (R01). Program Analyst, Office of Federal Advisory Date: June 4, 2019. Committee Policy. Pursuant to section 10(d) of the Time: 12:00 p.m. to 3:00 p.m. [FR Doc. 2019–10061 Filed 5–14–19; 8:45 am] Federal Advisory Committee Act, as Agenda: To review and evaluate grant BILLING CODE 4140–01–P amended, notice is hereby given of the applications. following meetings. Place: National Institutes of Health, The meeting will be closed to the Neuroscience Center Building (NSC), 6001 DEPARTMENT OF HEALTH AND public in accordance with the Executive Boulevard, Rockville, MD 20852 HUMAN SERVICES provisions set forth in sections (Virtual Meeting). Contact Person: Rebecca Steiner Garcia, National Institutes of Health 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and Ph.D., Scientific Review Officer, Division of National Institute of Allergy and the discussions could disclose Extramural Activities, National Institute of Infectious Diseases; Notice of Closed confidential trade secrets or commercial Mental Health, NIH, Neuroscience Center, Meeting property such as patentable material, 6001 Executive Blvd., Room 6149, MSC 9608, and personal information concerning Bethesda, MD 20892, 301–443–4525, Pursuant to section 10(d) of the individuals associated with the grant [email protected]. Federal Advisory Committee Act, as applications, the disclosure of which (Catalogue of Federal Domestic Assistance amended, notice is hereby given of the would constitute a clearly unwarranted Program No. 93.242, Mental Health Research following meeting. invasion of personal privacy. Grants, National Institutes of Health, HHS) The meeting will be closed to the Dated: May 10, 2019. public in accordance with the Name of Committee: National Institute of Mental Health Special Emphasis Panel; Melanie J. Pantoja, provisions set forth in sections Psychosocial Interventions. Program Analyst, Office of Federal Advisory 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Date: May 28, 2019. Committee Policy. as amended. The grant applications and Time: 8:00 a.m. to 4:30 p.m. the discussions could disclose Agenda: To review and evaluate grant [FR Doc. 2019–10067 Filed 5–14–19; 8:45 am] confidential trade secrets or commercial applications. BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND Business: Orthopedic, Skeletal Muscle and MD 20892–5452, (301) 594–7799, yangj@ HUMAN SERVICES Oral Sciences. extra.niddk.nih.gov. Date: June 13–14, 2019. Name of Committee: National Institute of National Institutes of Health Time: 8:30 a.m. to 10:30 a.m. Diabetes and Digestive and Kidney Diseases Agenda: To review and evaluate grant Special Emphasis Panel; Type 1 Diabetes Center for Scientific Review; Notice of applications. TrialNet Coordinating Center and Clinical Closed Meetings Place: Bethesda North Marriott Hotel & Network Hub (U01). Conference Center, 5701 Marinelli Road, Date: June 28, 2019. Pursuant to section 10(d) of the Bethesda, MD 20852. Time: 12:00 p.m. to 3:00 p.m. Federal Advisory Committee Act, as Contact Person: Aftab A. Ansari, Ph.D., Agenda: To review and evaluate grant amended, notice is hereby given of the Scientific Review Officer, Center for applications. following meetings. Scientific Review, National Institutes of Place: National Institutes of Health, Two The meetings will be closed to the Health, 6701 Rockledge Drive, Room 4108, Democracy Plaza, 6707 Democracy MSC 7814, Bethesda, MD 20892, 301–237– Boulevard, Bethesda, MD 20892 (Telephone public in accordance with the 9931, [email protected]. Conference Call). provisions set forth in sections (Catalogue of Federal Domestic Assistance Contact Person: Dianne Camp, Ph.D., 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Program Nos. 93.306, Comparative Medicine; Scientific Review Officer, Review Branch, as amended. The grant applications and 93.333, Clinical Research, 93.306, 93.333, DEA, NIDDK, National Institutes of Health, the discussions could disclose 93.337, 93.393–93.396, 93.837–93.844, Room 7013, 6707 Democracy Boulevard, confidential trade secrets or commercial 93.846–93.878, 93.892, 93.893, National Bethesda, MD 20892–2542, 301–5947682, property such as patentable material, Institutes of Health, HHS) [email protected]. and personal information concerning (Catalogue of Federal Domestic Assistance individuals associated with the grant Dated: May 10, 2019. Program Nos. 93.847, Diabetes, Melanie J. Pantoja, Endocrinology and Metabolic Research; applications, the disclosure of which 93.848, Digestive Diseases and Nutrition would constitute a clearly unwarranted Program Analyst, Office of Federal Advisory Research; 93.849, Kidney Diseases, Urology invasion of personal privacy. Committee Policy. and Hematology Research, National Institutes Name of Committee: Vascular and [FR Doc. 2019–10059 Filed 5–14–19; 8:45 am] of Health, HHS) Hematology Integrated Review Group; BILLING CODE 4140–01–P Dated: May 10, 2019. Molecular and Cellular Hematology Study Melanie J. Pantoja, Section. Date: June 10–11, 2019. DEPARTMENT OF HEALTH AND Program Analyst, Office of Federal Advisory Committee Policy. Time: 8:00 a.m. to 6:00 p.m. HUMAN SERVICES Agenda: To review and evaluate grant [FR Doc. 2019–10065 Filed 5–14–19; 8:45 am] applications. National Institutes of Health BILLING CODE 4140–01–P Place: Residence Inn Bethesda, 7335 Wisconsin Avenue, Bethesda, MD 20814. National Institute of Diabetes and Contact Person: Luis Espinoza, Ph.D., Digestive and Kidney Diseases; Notice DEPARTMENT OF HEALTH AND Scientific Review Officer, Center for of Closed Meetings HUMAN SERVICES Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 6183, National Institutes of Health MSC 7804, Bethesda, MD 20892, 301–495– Pursuant to section 10(d) of the 1213, [email protected]. Federal Advisory Committee Act, as amended, notice is hereby given of the National Institute on Drug Abuse; Name of Committee: Center for Scientific Notice of Closed Meetings Review Special Emphasis Panel; Evaluation following meetings. and Implementation of Patient Care. The meetings will be closed to the Pursuant to section 10(d) of the Date: June 13, 2019. public in accordance with the Federal Advisory Committee Act, as Time: 7:30 a.m. to 10:00 a.m. provisions set forth in sections amended, notice is hereby given of the Agenda: To review and evaluate grant 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., following meetings. applications. The meetings will be closed to the Place: Renaissance New Orleans Pere as amended. The grant applications and Marquette, 817 Common Street, New the discussions could disclose public in accordance with the Orleans, LA 1855201. confidential trade secrets or commercial provisions set forth in sections Contact Person: Sheba King Dunston, property such as patentable material, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Ph.D., Scientific Review Officer, Center for and personal information concerning as amended. The grant applications and Scientific of Review, National Institutes of individuals associated with the grant the discussions could disclose Health, 6701 Rockledge Drive, Room 3150, applications, the disclosure of which confidential trade secrets or commercial Bethesda, MD 20892, dunstonsk@ would constitute a clearly unwarranted property such as patentable material, mail.nih.gov. invasion of personal privacy. and personal information concerning Name of Committee: Center for Scientific individuals associated with the grant Name of Committee: National Institute of Review Special Emphasis Panel; Small applications, the disclosure of which Business: Innovative Immunology. Diabetes and Digestive and Kidney Diseases Date: June 13, 2019. Special Emphasis Panel; R13 Conference would constitute a clearly unwarranted Time: 8:30 a.m. to 5:00 p.m. Grant Applications. invasion of personal privacy. Agenda: To review and evaluate grant Date: June 27, 2019. Name of Committee: National Institute on applications. Time: 11:00 a.m. to 12:30 p.m. Drug Abuse Special Emphasis Panel; Place: Courtyard Silver Spring Downtown, Agenda: To review and evaluate grant Exploring Epigenomic or Non-Coding RNA 8506 Fenton Street, Silver Spring, MD 20910. applications. Regulation in the Development, Contact Person: David B. Winter, Ph.D., Place: National Institutes of Health, Two Maintenance, or Treatment of Chronic Pain Scientific Review Officer, Center for Democracy Plaza, 6707 Democracy (R61/R33 Clinical Trial Optional). Scientific Review, National Institutes of Boulevard, Bethesda, MD 20892 (Telephone Date: May 24, 2019. Health, 6701 Rockledge Drive, Room 4204, Conference Call). Time: 12:00 p.m. to 3:30 p.m. MSC 7812, Bethesda, MD 20892, 301–435– Contact Person: Jian Yang, Ph.D., Scientific Agenda: To review and evaluate grant 1152, [email protected]. Review Officer, Review Branch, DEA, applications. Name of Committee: Center for Scientific NIDDK, National Institutes of Health, Room Place: National Institutes of Health, Review Special Emphasis Panel; Small 7111, 6707 Democracy Boulevard, Bethesda, Neuroscience Center Building (NSC), 6001

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Executive Boulevard, Rockville, MD 20852 DATES: The 2019 tariff-rate quota is prevention of illegal entry into the (Telephone Conference Call). applicable to tuna in airtight containers United States. Border security is critical Contact Person: Ipolia R. Ramadan, Ph.D., entered, or withdrawn from warehouse, to the nation’s national security. Scientific Review Officer, Office of for consumption during the period Recognizing the critical importance of Extramural Policy and Review, Division of Extramural Research, National Institute on January 1, 2019 through December 31, border security, Congress has mandated Drug Abuse, NIH, DHHS, 6001 Executive 2019. DHS to achieve and maintain Boulevard, Room 4228, MSC 9550, Bethesda, FOR FURTHER INFORMATION CONTACT: Julia operational control of the international MD 20892, 301–827–5842, ramadanir@ Peterson, Headquarters Quota and land border. Secure Fence Act of 2006, mail.nih.gov. Agricultural Branch, Interagency Public Law 109–367, 2, 120 Stat. 2638 Name of Committee: National Institute on Collaboration Division, Trade Policy (Oct. 26, 2006) (8 U.S.C. 1701 note). Drug Abuse Special Emphasis Panel; NIH and Programs, Office of Trade, U.S. Congress defined ‘‘operational control’’ Pathway to Independence Award (K99/R00). Customs and Border Protection, as the prevention of all unlawful entries Date: June 5, 2019. into the United States, including entries Time: 1:00 p.m. to 5:00 p.m. Washington, DC 20229–1155, (202) 384– 8905. by terrorists, other unlawful aliens, Agenda: To review and evaluate grant instruments of terrorism, narcotics, and applications. Background Place: National Institutes of Health, other contraband. Id. Consistent with Neuroscience Center Building (NSC), 6001 It has been determined that that mandate from Congress, the Executive Boulevard, Rockville, MD 20852 14,945,117 kilograms of tuna in airtight President’s Executive Order on Border (Telephone Conference Call). containers may be entered, or Security and Immigration Enforcement Contact Person: Susan O. McGuire, Ph.D., withdrawn from warehouse, for Improvements directed executive Scientific Review Officer, Office of consumption during Calendar Year departments and agencies to deploy all Extramural Policy and Review, National lawful means to secure the southern Institute on Drug Abuse, National Institutes 2019, at the rate of 6.0 percent ad valorem under subheading 1604.14.22, border. Executive Order 13767, § 1. In of Health, DHHS, 6001 Executive Blvd., order to achieve that end, the President Room 4245, Rockville, MD 20852, (301) 827– Harmonized Tariff Schedule of the 5817, [email protected]. United States (HTSUS). Any such tuna directed, among other things, that I take immediate steps to prevent all unlawful (Catalogue of Federal Domestic Assistance which is entered, or withdrawn from Program Nos.: 93.279, Drug Abuse and warehouse, for consumption during the entries into the United States, including Addiction Research Programs, National current calendar year in excess of this the immediate construction of physical Institutes of Health, HHS) quota will be dutiable at the rate of 12.5 infrastructure to prevent illegal entry. Executive Order 13767, § 4(a). Dated: May 10, 2019. percent ad valorem under subheading Natasha M. Copeland, 1604.14.30, HTSUS. Congress has provided to the Secretary of Homeland Security a Program Analyst, Office of Federal Advisory Dated: May 9, 2019. number of authorities necessary to carry Committee Policy. Brenda Smith, out DHS’s border security mission. One [FR Doc. 2019–10064 Filed 5–14–19; 8:45 am] Executive Assistant Commissioner, Office of of those authorities is section 102 of the Trade. BILLING CODE 4140–01–P Illegal Immigration Reform and [FR Doc. 2019–10012 Filed 5–14–19; 8:45 am] Immigrant Responsibility Act of 1996, BILLING CODE 9111–14–P as amended (‘‘IIRIRA’’). Public Law DEPARTMENT OF HOMELAND 104–208, Div. C, 110 Stat. 3009–546, SECURITY 3009–554 (Sept. 30, 1996) (8 U.S.C 1103 DEPARTMENT OF HOMELAND note), as amended by the REAL ID Act SECURITY U.S. Customs and Border Protection of 2005, Public Law 109–13, Div. B, 119 Office of the Secretary Stat. 231, 302, 306 (May 11, 2005) (8 [CBP Dec. 19–04] U.S.C. 1103 note), as amended by the Tuna Tariff-Rate Quota for Calendar Determination Pursuant to Section 102 Secure Fence Act of 2006, Public Law Year 2019 Tuna Classifiable Under of the Illegal Immigration Reform and 109–367, 3, 120 Stat. 2638 (Oct. 26, Subheading 1604.14.22, Harmonized Immigrant Responsibility Act of 1996, 2006) (8 U.S.C. 1103 note), as amended Tariff Schedule of the United States as Amended by the Department of Homeland (HTSUS) Security Appropriations Act, 2008, AGENCY: Office of the Secretary, Public Law 110–161, Div. E, Title V, AGENCY: U.S. Customs and Border Department of Homeland Security. § 564, 121 Stat. 2090 (Dec. 26, 2007). In Protection, Department of Homeland ACTION: Notice of determination. section 102(a) of IIRIRA, Congress Security. provided that the Secretary of SUMMARY: The Secretary of Homeland ACTION: Announcement of the quota Homeland Security shall take such Security has determined, pursuant to actions as may be necessary to install quantity of tuna in airtight containers law, that it is necessary to waive certain for Calendar Year 2019. additional physical barriers and roads laws, regulations, and other legal (including the removal of obstacles to SUMMARY: Each year, the tariff-rate quota requirements in order to ensure the detection of illegal entrants) in the for tuna described in subheading expeditious construction of barriers and vicinity of the United States border to 1604.14.22, Harmonized Tariff Schedule roads in the vicinity of the international deter illegal crossings in areas of high of the United States (HTSUS), is land border in Cochise County and Pima illegal entry into the United States. In calculated as a percentage of the tuna in County, Arizona. section 102(b) of IIRIRA, Congress airtight containers entered, or DATES: This determination takes effect mandated the installation of additional withdrawn from warehouse, for on May 15, 2019. fencing, barriers, roads, lighting, consumption during the preceding SUPPLEMENTARY INFORMATION: Important cameras, and sensors on the southwest calendar year. This document sets forth mission requirements of the Department border. Finally, in section 102(c) of the tariff-rate quota for Calendar Year of Homeland Security (‘‘DHS’’) include IIRIRA, Congress granted to the 2019. border security and the detection and Secretary of Homeland Security the

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authority to waive all legal requirements pursuant to 10 U.S.C. 284(b)(7), assist by Species Act (Pub. L. 93–205, 87 Stat. that I, in my sole discretion, determine constructing fence, roads, and lighting 884 (Dec. 28, 1973) (16 U.S.C. 1531 et necessary to ensure the expeditious within the Tucson Sector in order to seq.)); the Federal Water Pollution construction of barriers and roads block drug smuggling corridors across Control Act (commonly referred to as authorized by section 102 of IIRIRA. the international boundary between the the Clean Water Act (33 U.S.C. 1251 et United States and Mexico. The Acting seq.)); the National Historic Preservation Determination and Waiver Secretary of Defense has concluded that Act (Pub. L. 89–665, 80 Stat. 915 (Oct. Section 1 the support requested satisfies the 15, 1966), as amended, repealed, or The United States Border Patrol’s statutory requirements of 10 U.S.C. replaced by Public Law 113–287, 128 (Border Patrol) Tucson Sector is an area 284(b)(7) and that the Department of Stat. 3094 (Dec. 19, 2014) (formerly Defense will provide such support in of high illegal entry. In fiscal year 2018, codified at 16 U.S.C. 470 et seq., now the project areas described in Section 2 the Border Patrol apprehended over codified at 54 U.S.C. 100101 note and below. 52,000 illegal aliens attempting to enter 54 U.S.C. 300101 et seq.)); the Migratory the United States between border Section 2 Bird Treaty Act (16 U.S.C. 703 et seq.); the Migratory Bird Conservation Act (16 crossings in the Tucson Sector. Also in I determine that the following areas in U.S.C. 715 et seq.); the Clean Air Act (42 fiscal year 2018, the Border Patrol had the vicinity of the United States border, U.S.C. 7401 et seq.); the Archeological over 1,900 separate drug-related events located in the State of Arizona within Resources Protection Act (Pub. L. 96–95, between border crossings in the Tucson the United States Border Patrol’s Tucson 93 Stat. 721 (Oct. 31, 1979) (16 U.S.C. Sector, through which it seized over Sector, are areas of high illegal entry 470aa et seq.)); the Paleontological 134,000 pounds of marijuana, 62 (the ‘‘project areas’’): pounds of cocaine, over 91 pounds of • Starting approximately one-half (.5) Resources Preservation Act (16 U.S.C. heroin, and over 902 pounds of mile west of Border Monument 178 and 470aaa et seq.); the Federal Cave methamphetamine. Additionally, extending east to Border Monument Resources Protection Act of 1988 (16 Cochise and Pima Counties, which are 162; U.S.C. 4301 et seq.); the Safe Drinking within the Tucson Sector, have been • Starting at Border Monument 100 Water Act (42 U.S.C. 300f et seq.); the identified as High Intensity Drug and extending east for approximately Noise Control Act (42 U.S.C. 4901 et Trafficking Areas by the Office of one (1) mile; seq.); the Solid Waste Disposal Act, as National Drug Control Policy. • Starting at Border Monument 98 amended by the Resource Conservation During the high levels of illegal entry and extending east to Border Monument and Recovery Act (42 U.S.C. 6901 et of people and drugs within the Tucson 97; and seq.); the Comprehensive Environmental Sector, I must use my authority under • Starting approximately one-half (.5) Response, Compensation, and Liability Section 102 of IIRIRA to install mile west of Border Monument 83 and Act (42 U.S.C. 9601 et seq.); the additional physical barriers and roads in extending east to Border Monument 74. Archaeological and Historic the Tucson Sector. Therefore, DHS will There is presently an acute and Preservation Act (Pub. L. 86–523, 74 take immediate action to replace immediate need to construct physical Stat. 220 (June 27, 1960) as amended, existing barriers in the Tucson Sector. barriers and roads in the vicinity of the repealed, or replaced by Public Law Construction will occur along four border of the United States in order to 113–287, 128 Stat. 3094 (Dec. 19, 2014) separate segments of the border, which prevent unlawful entries into the United (formerly codified at 16 U.S.C. 469 et are referred to herein as the ‘‘project States in the project areas pursuant to seq., now codified at 54 U.S.C. 312502 areas’’ and more specifically described sections 102(a) and 102(b) of IIRIRA. In et seq.)); the Antiquities Act (formerly in Section 2 below. order to ensure the expeditious codified at 16 U.S.C. 431 et seq., now The existing barriers within the construction of the barriers and roads in codified 54 U.S.C. 320301 et seq.); the project areas include both vehicle the project areas, I have determined that Historic Sites, Buildings, and fencing and outmoded pedestrian it is necessary that I exercise the Antiquities Act (formerly codified at 16 fencing that no longer satisfy Border authority that is vested in me by section U.S.C. 461 et seq., now codified at 54 Patrol’s operational needs. 102(c) of IIRIRA. U.S.C. 3201–320303 & 320101–320106); Transnational criminal organizations Accordingly, pursuant to section Wild and Scenic Rivers Act (Pub. L. 90– known for smuggling drugs and aliens 102(c) of IIRIRA, I hereby waive in their 542, 82 Stat. 906 (Oct. 2, 1968) (16 into United States from Mexico are entirety, with respect to the U.S.C. 1271 et seq.)); the Farmland known to operate in the area. These construction of physical barriers and Protection Policy Act (7 U.S.C. 4201 et transnational criminal organizations roads (including, but not limited to, seq.); the Federal Land Policy and have been able to use the lack of accessing the project areas, creating and Management Act (Pub. L. 94–579, 90 adequate infrastructure and the using staging areas, the conduct of Stat. 2743 (Oct. 21, 1976) (43 U.S.C. surrounding terrain, which provides earthwork, excavation, fill, and site 1701 et seq.)); the Wilderness Act (Pub. high ground for scouts seeking to preparation, and installation and L. 88–577, 78 Stat. 890 (Sept. 3, 1964) protect and warn smugglers moving upkeep of physical barriers, roads, (16 U.S.C. 1131 et seq.)); 43 U.S.C. 387; through the area, to their advantage. supporting elements, drainage, erosion the National Wildlife Refuge System Therefore, Border Patrol requires a more controls, safety features, lighting, Administration Act (Pub. L. 89–669, 80 effective barrier. The existing vehicle cameras, and sensors) in the project Stat. 926 (Oct. 15, 1966) (16 U.S.C. barriers and outmoded pedestrian areas, all of the following statutes, 668dd–668ee)); National Fish and fencing will be replaced with an 18 to including all federal, state, or other Wildlife Act of 1956 (Pub. L. 84–1024, 30 foot barrier that employs a more laws, regulations, and legal 70 Stat. 1119 (Aug. 8, 1956) (16 U.S.C. operationally effective design. In requirements of, deriving from, or 742a, et seq.)); the Fish and Wildlife addition, roads will be constructed or related to the subject of, the following Coordination Act (Pub. L. 73–121, 48 improved and lighting will be installed. statutes, as amended: The National Stat. 401 (March 10, 1934) (16 U.S.C. To support DHS’s action under Environmental Policy Act (Pub. L. 91– 661 et seq.)); the National Trails System Section 102 of IIRIRA, DHS requested 190, 83 Stat. 852 (Jan. 1, 1970) (42 Act (16 U.S.C. 1241 et seq.); the that the Department of Defense, U.S.C. 4321 et seq.)); the Endangered Administrative Procedure Act (5 U.S.C.

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551 et seq.); the Wild Horse and Burro DEPARTMENT OF HOMELAND note), as amended by the REAL ID Act Act (16 U.S.C. 1331 et seq.); the Rivers SECURITY of 2005, Public Law 109–13, Div. B, 119 and Harbors Act of 1899 (33 U.S.C. 403); Stat. 231, 302, 306 (May 11, 2005) (8 the National Park Service Organic Act Office of the Secretary U.S.C. 1103 note), as amended by the and the National Park Service General Secure Fence Act of 2006, Public Law Determination Pursuant to Section 102 109–367, 3, 120 Stat. 2638 (Oct. 26, Authorities Act (Pub. L. 64–235, 39 Stat. of the Illegal Immigration Reform and 535 (Aug. 25, 1916) and Public Law 91– 2006) (8 U.S.C. 1103 note), as amended Immigrant Responsibility Act of 1996, by the Department of Homeland 383, 84 Stat. 825 (Aug. 18, 1970) as as Amended amended, repealed, or replaced by Security Appropriations Act, 2008, Public Law 113–287, 128 Stat. 3094 AGENCY: Office of the Secretary, Public Law 110–161, Div. E, Title V, (Dec. 19, 2014) (formerly codified at 16 Department of Homeland Security. § 564, 121 Stat. 2090 (Dec. 26, 2007). In section 102(a) of IIRIRA, Congress U.S.C. 1, 2–4 and 16 U.S.C. 1a–1 et seq., ACTION: Notice of determination. provided that the Secretary of now codified at 54 U.S.C. 100101– SUMMARY: The Secretary of Homeland Homeland Security shall take such 100102, 54 U.S.C. 100301–100303, 54 Security has determined, pursuant to actions as may be necessary to install U.S.C. 100501–100507, 54 U.S.C. law, that it is necessary to waive certain additional physical barriers and roads 100701–100707, 54 U.S.C. 100721– laws, regulations, and other legal (including the removal of obstacles to 100725, 54 U.S.C. 100751–100755, 54 requirements in order to ensure the detection of illegal entrants) in the U.S.C. 100901–100906, 54 U.S.C. expeditious construction of barriers and vicinity of the United States border to 102101–102102)); Sections 401(7), 403, roads in the vicinity of the international deter illegal crossings in areas of high and 404 of the National Parks and land border in Imperial County, illegal entry into the United States. In Recreation Act of 1978 (Pub. L. 95–625, California. section 102(b) of IIRIRA, Congress 92 Stat. 3467 (Nov. 10, 1978)); 50 Stat. DATES: This determination takes effect mandated the installation of additional 1827 (April 13, 1937); Sections 301(a)– on May 15, 2019. fencing, barriers, roads, lighting, (f) of the Arizona Desert Wilderness Act SUPPLEMENTARY INFORMATION: Important cameras, and sensors on the southwest (Pub. L. 101–628, 104 Stat. 4469 (Nov. mission requirements of the Department border. Finally, in section 102(c) of 28, 1990)); Arizona-Idaho Conservation of Homeland Security (‘‘DHS’’) include IIRIRA, Congress granted to the Act of 1988 (Pub. L. 100–696, 102 Stat. border security and the detection and Secretary of Homeland Security the 4571 (Nov. 18, 1988) (16 U.S.C. 460xx)); prevention of illegal entry into the authority to waive all legal requirements 16 U.S.C. 450y (Pub. L. 77–216, 55 Stat. United States. Border security is critical that I, in my sole discretion, determine 630 (Aug. 18, 1941), as amended by to the nation’s national security. necessary to ensure the expeditious Public Law 82–478, 66 Stat. 510 (July 9, Recognizing the critical importance of construction of barriers and roads 1952)); 67 Stat. c18 (Nov. 5, 1952); border security, Congress has mandated authorized by section 102 of IIRIRA. National Forest Management Act of DHS to achieve and maintain Determination and Waiver 1976 (16 U.S.C. 1600 et seq.); Multiple- operational control of the international Use and Sustained-Yield Act of 1960 (16 land border. Secure Fence Act of 2006, Section 1 U.S.C. 528–531); the Eagle Protection Public Law 109–367, 2, 120 Stat. 2638 The United States Border Patrol’s Act (16 U.S.C. 668 et seq.); the Native (Oct. 26, 2006) (8 U.S.C. 1701 note). (Border Patrol) El Centro Sector is an American Graves Protection and Congress defined ‘‘operational control’’ area of high illegal entry. In fiscal year Repatriation Act (25 U.S.C. 3001 et as the prevention of all unlawful entries 2018, the Border Patrol apprehended seq.); and the American Indian into the United States, including entries over 29,000 illegal aliens attempting to Religious Freedom Act (42 U.S.C. 1996). by terrorists, other unlawful aliens, enter the United States between border instruments of terrorism, narcotics, and crossings in the El Centro Sector. Also This waiver does not revoke or other contraband. Id. Consistent with in fiscal year 2018, the Border Patrol supersede the previous waivers that mandate from Congress, the had approximately 200 separate drug- published in the Federal Register on President’s Executive Order on Border related events between border crossings October 26, 2007 (72 FR 60870), and Security and Immigration Enforcement in the El Centro Sector, through which April 8, 2008 (73 FR 19078), which shall Improvements directed executive it seized over 620 pounds of marijuana, remain in full force and effect in departments and agencies to deploy all over 165 pounds of cocaine, over 56 accordance with their terms. I reserve lawful means to secure the southern pounds of heroin, and over 1,600 the authority to execute further waivers border. Executive Order 13767, § 1. In pounds of methamphetamine. from time to time as I may determine to order to achieve that end, the President Additionally, Imperial County, be necessary under section 102 of directed, among other things, that I take California, which is located in the El IIRIRA. immediate steps to prevent all unlawful Centro Sector, has been identified as entries into the United States, including High Intensity Drug Trafficking Areas by Kevin K. McAleenan, the immediate construction of physical the Office of National Drug Control Acting Secretary of Homeland Security. infrastructure to prevent illegal entry. Policy. [FR Doc. 2019–10079 Filed 5–14–19; 8:45 am] Executive Order 13767, § 4(a). During the high levels of illegal entry BILLING CODE 9111–14–P Congress has provided to the of people and drugs within the El Secretary of Homeland Security a Centro Sector, I must use my authority number of authorities necessary to carry under section 102 of IIRIRA to install out DHS’s border security mission. One additional physical barriers and roads in of those authorities is section 102 of the the El Centro Sector. Therefore, DHS Illegal Immigration Reform and will take immediate action to replace Immigrant Responsibility Act of 1996, existing vehicle barriers in the El Centro as amended (‘‘IIRIRA’’). Public Law Sector. The segment within which such 104–208, Div. C, 110 Stat. 3009–546, construction will occur is referred to 3009–554 (Sept. 30, 1996) (8 U.S.C 1103 herein as the ‘‘project area’’ and is more

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specifically described in Section 2 entirety, with respect to the Policy and Management Act (Pub. L. below. construction of physical barriers and 94–579, 90 Stat. 2743 (Oct. 21, 1976) (43 The existing vehicle barriers within roads (including, but not limited to, U.S.C. 1701 et seq.)); National Fish and the project area no longer satisfy the accessing the project area, creating and Wildlife Act of 1956 (Pub. L. 84–1024, Border Patrol’s operational needs. using staging areas, the conduct of 70 Stat. 1119 (Aug. 8, 1956) (16 U.S.C. Transnational criminal organizations earthwork, excavation, fill, and site 742a, et seq.)); the Fish and Wildlife known for smuggling drugs into United preparation, and installation and Coordination Act (Pub. L. 73–121, 48 States from Mexico are known to upkeep of physical barriers, roads, Stat. 401 (March 10, 1934) (16 U.S.C. operate in the area. Further, due to the supporting elements, drainage, erosion 661 et seq.)); the National Trails System close proximity of urban areas on both controls, safety features, lighting, Act (16 U.S.C. 1241 et seq.); the sides of the border, the El Centro Sector cameras, and sensors) in the project Administrative Procedure Act (5 U.S.C. experiences some of the quickest area, all of the following statutes, 551 et seq.); the Wild Horse and Burro vanishing times—that is, the time it including all federal, state, or other Act (16 U.S.C. 1331 et seq.); the Rivers takes to illegally cross into the United laws, regulations, and legal and Harbors Act of 1899 (33 U.S.C. 403); States and assimilate into local, requirements of, deriving from, or the Eagle Protection Act (16 U.S.C. 668 legitimate traffic—on the border. The related to the subject of, the following et seq.); the Native American Graves vanishing times facilitate the illegal statutes, as amended: The National Protection and Repatriation Act (25 activities of transnational criminal Environmental Policy Act (Pub. L. 91– U.S.C. 3001 et seq.); the American organizations, whether they are 190, 83 Stat. 852 (Jan. 1, 1970) (42 Indian Religious Freedom Act (42 U.S.C. smuggling people or narcotics. U.S.C. 4321 et seq.)); the Endangered 1996); 43 U.S.C. 387; the Wilderness Act Therefore, the Border Patrol requires a Species Act (Pub. L. 93–205, 87 Stat. (Pub. L. 88–577, 78 Stat. 890 (Sept. 3, more effective barrier. The existing 884 (Dec. 28, 1973) (16 U.S.C. 1531 et 1964) (16 U.S.C. 1131 et seq.)); and vehicle barriers will be replaced with an seq.)); the Federal Water Pollution sections 102(29) and 103 of Title I of the 18 to 30 foot barrier that employs a more Control Act (commonly referred to as California Desert Protection Act (Pub. L. operationally effective design. In the Clean Water Act (33 U.S.C. 1251 et 103–433, 108 Stat. 4471 (Oct. 31, 1994)). addition, roads will be constructed or seq.)); the National Historic Preservation This waiver does not revoke or improved and lighting will be installed. supersede the previous waiver To support DHS’s action under Act (Pub. L. 89–665, 80 Stat. 915 (Oct. 15, 1966), as amended, repealed, or published in the Federal Register on Section 102 of IIRIRA, DHS requested April 8, 2008 (73 FR 19078), which shall that the Department of Defense, replaced by Public Law 113–287, 128 Stat. 3094 (Dec. 19, 2014) (formerly remain in full force and effect in pursuant to 10 U.S.C. 284(b)(7), assist by accordance with its terms. I reserve the constructing fence, roads, and lighting codified at 16 U.S.C. 470 et seq., now codified at 54 U.S.C. 100101 note and authority to execute further waivers within the El Centro Sector in order to from time to time as I may determine to block drug smuggling corridors across 54 U.S.C. 300101 et seq.)); the Migratory Bird Treaty Act (16 U.S.C. 703 et seq.); be necessary under section 102 of the international boundary between the IIRIRA. United States and Mexico. The Acting the Migratory Bird Conservation Act (16 Secretary of Defense has concluded that U.S.C. 715 et seq.); the Clean Air Act (42 Kevin K. McAleenan, the support requested satisfies the U.S.C. 7401 et seq.); the Archeological Acting Secretary of Homeland Security. Resources Protection Act (Pub. L. 96–95, statutory requirements of 10 U.S.C. [FR Doc. 2019–10080 Filed 5–14–19; 8:45 am] 93 Stat. 721 (Oct. 31, 1979) (16 U.S.C. 284(b)(7) and that the Department of BILLING CODE 9111–14–P Defense will provide such support in 470aa et seq.)); the Paleontological the project area described in Section 2 Resources Preservation Act (16 U.S.C. below. 470aaa et seq.); the Federal Cave DEPARTMENT OF HOMELAND Resources Protection Act of 1988 (16 SECURITY Section 2 U.S.C. 4301 et seq.); the Safe Drinking I determine that the following area in Water Act (42 U.S.C. 300f et seq.); the Office of the Secretary the vicinity of the United States border, Noise Control Act (42 U.S.C. 4901 et located in the State of California within seq.); the Solid Waste Disposal Act, as Determination Pursuant to Section 102 the Border Patrol’s El Centro Sector, is amended by the Resource Conservation of the Illegal Immigration Reform and an area of high illegal entry (the ‘‘project and Recovery Act (42 U.S.C. 6901 et Immigrant Responsibility Act of 1996, area’’): Starting at Border Monument seq.); the Comprehensive Environmental as Amended Response, Compensation, and Liability 229 and extending east to approximately AGENCY: Act (42 U.S.C. 9601 et seq.); the Office of the Secretary, one and one-half miles (1.5) west of Department of Homeland Security. Border Monument 223. Archaeological and Historic There is presently an acute and Preservation Act (Pub. L. 86–523, 74 ACTION: Notice of determination. Stat. 220 (June 27, 1960) as amended, immediate need to construct physical SUMMARY: The Secretary of Homeland repealed, or replaced by Public barriers and roads in the vicinity of the Security has determined, pursuant to Law113–287, 128 Stat. 3094 (Dec. 19, border of the United States in order to law, that it is necessary to waive certain 2014) (formerly codified at 16 U.S.C. prevent unlawful entries into the United laws, regulations, and other legal 469 et seq., now codified at 54 U.S.C. States in the project area pursuant to requirements in order to ensure the 312502 et seq.)); the Antiquities Act sections 102(a) and 102(b) of IIRIRA. In expeditious construction of barriers and (formerly codified at 16 U.S.C. 431 et order to ensure the expeditious roads in the vicinity of the international seq., now codified 54 U.S.C. 320301 et construction of the barriers and roads in land border near Tecate and Calexico, seq.); the Historic Sites, Buildings, and the project area, I have determined that California. it is necessary that I exercise the Antiquities Act (formerly codified at 16 authority that is vested in me by section U.S.C. 461 et seq., now codified at 54 DATES: This determination takes effect 102(c) of IIRIRA. U.S.C. 3201–320303 & 320101–320106); on May 15, 2019. Accordingly, pursuant to section the Farmland Protection Policy Act (7 SUPPLEMENTARY INFORMATION: Important 102(c) of IIRIRA, I hereby waive in their U.S.C. 4201 et seq.); the Federal Land mission requirements of the Department

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of Homeland Security (‘‘DHS’’) include IIRIRA, Congress granted to the requirements. In addition, DHS will, border security and the detection and Secretary of Homeland Security the where necessary, make improvements to prevention of illegal entry into the authority to waive all legal requirements existing roads within the project areas. that I, in my sole discretion, determine United States. Border security is critical Section 2 to the nation’s national security. necessary to ensure the expeditious Recognizing the critical importance of construction of barriers and roads I determine that the following areas in border security, Congress has mandated authorized by section 102 of IIRIRA. the vicinity of the United States border, DHS to achieve and maintain located in the State of California within Determination and Waiver operational control of the international the Border Patrol’s San Diego and El land border. Secure Fence Act of 2006, Section 1 Centro Sectors, are areas of high illegal entry (the ‘‘project areas’’): Public Law 109–367, 2, 120 Stat. 2638 The United States Border Patrol’s • (Oct. 26, 2006) (8 U.S.C. 1701 note). Within the San Diego Sector, (Border Patrol) San Diego and El Centro starting approximately one mile west of Congress defined ‘‘operational control’’ Sectors are areas of high illegal entry. In as the prevention of all unlawful entries Border Monument 245 and extending fiscal year 2018 alone, the Border Patrol east to approximately one mile east of into the United States, including entries apprehended over 38,000 illegal aliens by terrorists, other unlawful aliens, Border Monument 243; attempting to enter the United States • Within the El Centro Sector, starting instruments of terrorism, narcotics, and between border crossings in the San approximately one and one-half (1.5) other contraband. Id. Consistent with Diego Sector. In that same year, the miles west of Border Monument 223 that mandate from Congress, the Border Patrol had over 500 separate and extending east approximately eight President’s Executive Order on Border drug-related events between border miles; and Security and Immigration Enforcement crossings in the San Diego Sector, • Within the El Centro Sector, starting Improvements directed executive through which it seized approximately at Border Monument 221 and extending departments and agencies to deploy all 8,700 pounds of marijuana, east to Border Monument 219. lawful means to secure the southern approximately 1,800 pounds of cocaine, There is presently an acute and border. Executive Order 13767, § 1. In over 175 pounds of heroin, and over immediate need to construct physical order to achieve that end, the President 5,100 pounds of methamphetamine. In barriers and roads in the vicinity of the directed, among other things, that I take fiscal year 2018, the Border Patrol border of the United States in order to immediate steps to prevent all unlawful apprehended over 29,000 illegal aliens prevent unlawful entries into the United entries into the United States, including attempting to enter the United States States in the project areas pursuant to the immediate construction of physical between border crossings in the El sections 102(a) and 102(b) of IIRIRA. In infrastructure to prevent illegal entry. Centro Sector. Also in fiscal year 2018, order to ensure the expeditious Executive Order 13767, § 4(a). the Border Patrol had approximately construction of the barriers and roads in Congress has provided to the 200 separate drug-related events the project areas, I have determined that Secretary of Homeland Security a between border crossings in the El it is necessary that I exercise the number of authorities necessary to carry Centro Sector, through which it seized authority that is vested in me by section out DHS’s border security mission. One over 620 pounds of marijuana, over 165 102(c) of IIRIRA. of those authorities is section 102 of the pounds of cocaine, over 56 pounds of Accordingly, pursuant to section Illegal Immigration Reform and heroin, and over 1,600 pounds of 102(c) of IIRIRA, I hereby waive in their Immigrant Responsibility Act of 1996, methamphetamine. entirety, with respect to the as amended (‘‘IIRIRA’’). Public Law Due to the high levels of illegal entry construction of roads and physical 104–208, Div. C, 110 Stat. 3009–546, within the San Diego and El Centro barriers (including, but not limited to, 3009–554 (Sept. 30, 1996) (8 U.S.C 1103 Sectors, I must use my authority under accessing the project areas, creating and note), as amended by the REAL ID Act section 102 of IIRIRA to install using staging areas, the conduct of of 2005, Public Law 109–13, Div. B, 119 additional physical barriers and roads in earthwork, excavation, fill, and site Stat. 231, 302, 306 (May 11, 2005) (8 the San Diego and El Centro Sectors. preparation, and installation and U.S.C. 1103 note), as amended by the Therefore, DHS will take immediate upkeep of physical barriers, roads, Secure Fence Act of 2006, Public Law action to replace existing barriers in the supporting elements, drainage, erosion 109–367, 3, 120 Stat. 2638 (Oct. 26, San Diego and El Centro Sectors. The controls, safety features, lighting, 2006) (8 U.S.C. 1103 note), as amended segments of the border within which cameras, and sensors) in the project by the Department of Homeland such construction will occur are areas, all of the following statutes, Security Appropriations Act, 2008, referred to herein as the ‘‘project areas’’ including all federal, state, or other Public Law 110–161, Div. E, Title V, and are more specifically described in laws, regulations, and legal § 564, 121 Stat. 2090 (Dec. 26, 2007). In Section 2 below. Congress provided requirements of, deriving from, or section 102(a) of IIRIRA, Congress funding for these projects in the Fiscal related to the subject of, the following provided that the Secretary of Year 2018 DHS Appropriations Act, statutes, as amended: Homeland Security shall take such Public Law 115–141, Division F, Title II, The National Environmental Policy actions as may be necessary to install § 230. Act (Pub. L. 91–190, 83 Stat. 852 (Jan. additional physical barriers and roads The replacement of primary fencing 1, 1970) (42 U.S.C. 4321 et seq.)); the (including the removal of obstacles to within the project areas will further the Endangered Species Act (Pub. L. 93– detection of illegal entrants) in the Border Patrol’s ability to deter and 205, 87 Stat. 884 (Dec. 28, 1973) (16 vicinity of the United States border to prevent illegal crossings. The existing U.S.C. 1531 et seq.)); the Federal Water deter illegal crossings in areas of high barriers were constructed between the Pollution Control Act (commonly illegal entry into the United States. In early-to-mid 1990s and mid-to-late referred to as the Clean Water Act (33 section 102(b) of IIRIRA, Congress 2000s. The existing barriers will be U.S.C. 1251 et seq.)); the National mandated the installation of additional replaced with 18 to 30 foot barriers that Historic Preservation Act (Pub. L. 89– fencing, barriers, roads, lighting, employ a more operationally effective 665, 80 Stat. 915 (Oct. 15, 1966), as cameras, and sensors on the southwest design that is intended to meet the amended, repealed, or replaced by Pub. border. Finally, in section 102(c) of Border Patrol’s operational L. 113–287 (Dec. 19, 2014) (formerly

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codified at 16 U.S.C. 470 et seq., now waivers from time to time as I may 3003, of the completion of an inventory codified at 54 U.S.C. 100101 note and determine to be necessary under section of human remains and associated 54 U.S.C. 300101 et seq.)); the Migratory 102 of IIRIRA. funerary objects under the control of the Bird Treaty Act (16 U.S.C. 703 et seq.); Kansas State Historical Society, Topeka, Kevin K. McAleenan, the Migratory Bird Conservation Act (16 KS. The human remains and associated U.S.C. 715 et seq.); the Clean Air Act (42 Acting Secretary of Homeland Security. funerary objects were removed from U.S.C. 7401 et seq.); the Archeological [FR Doc. 2019–10078 Filed 5–14–19; 8:45 am] archeological site 14RP1, Republic Resources Protection Act (Pub. L. 96–95, BILLING CODE 9111–14–P County, KS. 93 Stat. 721 (Oct. 31, 1979) (16 U.S.C. This notice is published as part of the 470aa et seq.)); the Paleontological National Park Service’s administrative Resources Preservation Act (16 U.S.C. DEPARTMENT OF THE INTERIOR responsibilities under NAGPRA, 25 470aaa et seq.); the Federal Cave U.S.C. 3003(d)(3). The determinations in Resources Protection Act of 1988 (16 National Park Service this notice are the sole responsibility of U.S.C. 4301 et seq.); the National Trails the museum, institution, or Federal [NPS–WASO–NAGPRA–NPS0027788: agency that has control of the Native System Act (16 U.S.C. 1241 et seq.); the PPWOCRADN0–PCU00RP14.R50000] Safe Drinking Water Act (42 U.S.C. 300f American human remains and et seq.); the Noise Control Act (42 U.S.C. Notice of Inventory Completion: associated funerary objects. The 4901 et seq.); the Solid Waste Disposal Kansas State Historical Society, National Park Service is not responsible Act, as amended by the Resource Topeka, KS for the determinations in this notice. Conservation and Recovery Act (42 Consultation U.S.C. 6901 et seq.); the Comprehensive AGENCY: National Park Service, Interior. Environmental Response, ACTION: Notice. A detailed assessment of the human remains was made by the Kansas State Compensation, and Liability Act (42 SUMMARY Historical Society professional staff in U.S.C. 9601 et seq.); the Archaeological : The Kansas State Historical consultation with representatives of the and Historic Preservation Act (Pub. L. Society has completed an inventory of Pawnee Nation of Oklahoma. 86–523, 74 Stat. 220 (June 27, 1960) as human remains and associated funerary amended, repealed, or replaced by Pub. objects, in consultation with the History and Description of the Remains appropriate Indian Tribes or Native L. 113–287, 128 Stat. 3094 (Dec. 19, Removal of human remains and 2014) (formerly codified at 16 U.S.C. Hawaiian organizations, and has determined that there is a cultural associated funerary objects from the 469 et seq., now codified at 54 U.S.C. Pawnee Indian Village site (also known 312502 et seq.)); the Antiquities Act affiliation between the human remains and associated funerary objects and as Kansas Monument site and Kansas (formerly codified at 16 U.S.C. 431 et archeological site number 14RP1) seq., now codified 54 U.S.C. 320301 et present-day Indian Tribes or Native Hawaiian organizations. Lineal occurred in several instances. seq.); the Historic Sites, Buildings, and In 1996 and 1997, human remains Antiquities Act (formerly codified at 16 descendants or representatives of any Indian Tribe or Native Hawaiian representing, at minimum, seven U.S.C. 461 et seq., now codified at 54 individuals were removed from U.S.C. 3201–320303 & 320101–320106); organization not identified in this notice that wish to request transfer of control archeological site 14RP1, the Pawnee the Wild and Scenic Rivers Act (Pub. L. Indian Village site, in Republic County, 90–542 (16 U.S.C. 1281 et seq.)); the of these human remains and associated funerary objects should submit a written KS. The human remains and associated Farmland Protection Policy Act (7 funerary objects were taken from burial U.S.C. 4201 et seq.); the Federal Land request to the Kansas State Historical Society. If no additional requestors pits within and near the site. Some of Policy and Management Act (Pub. L. the burial had been disturbed variously, 94–579, 90 Stat. 2743 (Oct. 21, 1976) (43 come forward, transfer of control of the human remains and associated funerary by intentional looting and excavation by U.S.C. 1701 et seq.)); National Fish and professional archeologists before burial Wildlife Act of 1956 (Pub. L. 84–1024, objects to the lineal descendants, Indian Tribes, or Native Hawaiian law protection had been enacted. Burial 70 Stat. 1119 (Aug. 8, 1956) (16 U.S.C. 1 consists of one adult represented by 742a, et seq.)); the Fish and Wildlife organizations stated in this notice may proceed. 38 skeletal elements. Burial 2 consists of Coordination Act (Pub. L. 73–121, 48 one adult represented by fragmentary Stat. 401 (March 10, 1934) (16 U.S.C. DATES: Lineal descendants or cranial bones, phalanges, mandible 661 et seq.)); the Wild Horse and Burro representatives of any Indian Tribe or fragments, long bone diaphysis, and Act (16 U.S.C. 1331 et seq.); the Native Hawaiian organization not teeth. Burial 3 consists of one adult Administrative Procedure Act (5 U.S.C. identified in this notice that wish to male represented by 74 badly damaged 551 et seq.); the Rivers and Harbors Act request transfer of control of these and decomposed cranial elements, long of 1899 (33 U.S.C. 403); the Eagle human remains and associated funerary bones, and scapula, clavicle, and pelvic Protection Act (16 U.S.C. 668 et seq.); objects should submit a written request elements. Burial 4 consists of one adult the Native American Graves Protection with information in support of the represented by fragmented long bones and Repatriation Act (25 U.S.C. 3001 et request to the Kansas State Historical and a patella. Burial 5 consists of one seq.); the American Indian Religious Society at the address in this notice by adult female represented by over 140 Freedom Act (42 U.S.C. 1996); and 43 June 14, 2019. small bone fragments that include one U.S.C. 387. ADDRESSES: Dr. Robert J. Hoard, Kansas pelvic fragment and several identifiable This waiver does not revoke or State Historical Society, 6425 SW 6th long bone fragments. Burial 6 consists of supersede the previous waivers Avenue, Topeka, KS 66615, telephone one four-to-six month old infant published in the Federal Register on (785) 272–8681 Ext. 269, email represented by 15 bone fragments and April 8, 2008 (73 FR 19078), and on [email protected]. two teeth. Burial 7 consists of seven September 12, 2017 (82 FR 42829), SUPPLEMENTARY INFORMATION: Notice is element fragments. No known which shall remain in full force and here given in accordance with the individuals were identified. The 90 effect in accordance with their terms. I Native American Graves Protection and associated funerary objects include one reserve the authority to execute further Repatriation Act (NAGPRA), 25 U.S.C. chipped stone scraper, ochre, flakes,

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beads and beads fragments, one smoking Determinations Made by the Kansas associated funerary objects, in pipe fragment, two iron fragments, and State Historical Society consultation with the appropriate multiple wood fragments. These Officials of the Kansas State Historical Indian Tribes or Native Hawaiian cultural items are identified by the Society have determined that: organizations, and has determined that designation UBS 1990–12. • Pursuant to 25 U.S.C. 3001(9), the there is a cultural affiliation between the At an unknown date, human remains human remains described in this notice human remains and associated funerary representing, at minimum, five represent the physical remains of 13 objects and present-day Indian Tribes or individuals were removed from individuals of Native American Native Hawaiian organizations. Lineal archeological site 14RP1 in Republic ancestry. descendants or representatives of any County KS. The human remains and • Pursuant to 25 U.S.C. 3001(3)(A), Indian Tribe or Native Hawaiian associated funerary objects were the 130 objects described in this notice organization not identified in this notice donated to the Kansas State Historical are reasonably believed to have been that wish to request transfer of control Society in 1896, by Mrs. George placed with or near individual human of these human remains and associated Johnson. The fragmentary elements funerary objects should submit a written belong to one infant represented by 69 remains at the time of death or later as part of the death rite or ceremony. request to the Robert S. Peabody elements; one two-to-five-year-old • Institute of Archaeology. If no represented by 21 bone fragments; and Pursuant to 25 U.S.C. 3001(2), there is a relationship of shared group additional requestors come forward, three adults represented by 54 bone transfer of control of the human remains fragments. No known individuals were identity that can be reasonably traced between the Native American human and associated funerary objects to the identified. The 40 associated funerary lineal descendants, Indian Tribes, or objects include six pottery fragments, 10 remains and associated funerary objects and the Pawnee Nation of Oklahoma. Native Hawaiian organizations stated in flakes, one quartzite grinding stone, five this notice may proceed. grinding stone fragments, four red Additional Requestors and Disposition DATES: Lineal descendants or quartzite mortar fragments, one wooden Lineal descendants or representatives representatives of any Indian Tribe or post fragment, five scraps of copper, one Native Hawaiian organization not hammer stone, one horse tooth, three of any Indian Tribe or Native Hawaiian identified in this notice that wish to sandstone fragments, one projectile organization not identified in this notice request transfer of control of these point blank, and two pieces of pyrite. that wish to request transfer of control human remains and associated funerary These cultural items are identified by of these human remains and associated objects should submit a written request the designation UBS 1991–05. funerary objects should submit a written In 1966, human remains representing, request with information in support of with information in support of the at minimum, one individual were the request to Dr. Robert J. Hoard, State request to the Robert S. Peabody removed from Area 662, excavation 326, Archeologist, Kansas State Historical Institute of Archaeology at the address Feature 584 at archeological site 14RP1 Society, 6425 SW 6th Avenue, Topeka, in this notice by June 14, 2019. by state archeologist Thomas Witty. KS 66615–1099, telephone 785–272– ADDRESSES: Ryan Wheeler, Robert S. Twenty fragments of human bone 8681 Ext. 269, email Robert.Hoard@ Peabody Institute of Archaeology, representing one adult were found in ks.gov, by June 14, 2019. After that date, Phillips Academy, 180 Main Street, Kansas State Historical Society if no additional requestors have come Andover, MA 01810, telephone (978) collections by Robert Hoard in June forward, transfer of control of the 749–4490, email [email protected]. 2008, and include fragments of the human remains and associated funerary SUPPLEMENTARY INFORMATION: Notice is temporal, maxilla, maxilla or mandible, objects to the Pawnee Nation of here given in accordance with the vertebrae, patella, tarsals, and Oklahoma may proceed. Native American Graves Protection and unidentifiable fragments. No known The Kansas State Historical Society is Repatriation Act (NAGPRA), 25 U.S.C. individuals were identified. No responsible for notifying the Pawnee 3003, of the completion of an inventory associated funerary objects were Nation of Oklahoma that this notice has of human remains and associated present. These cultural items are been published. funerary objects under the control of the identified by the designation UBS 2018– Dated: April 25, 2019. Robert S. Peabody Institute of 02. Melanie O’Brien, Archaeology, Andover MA. The human Archeological site 14RP1 was Manager, National NAGPRA Program. remains and associated funerary objects occupied between approximately 1770 were removed from the Chequesset Inn- [FR Doc. 2019–09994 Filed 5–14–19; 8:45 am] and 1810 C.E., and is well known to the Taylor Hill site (19BN106), Wellfleet, Pawnee Nation of Oklahoma. BILLING CODE 4312–52–P Barnstable County, MA. Ethnographically, Zebulon Pike, Pedro This notice is published as part of the (Pierre) Vial, and Lewis and Clark all DEPARTMENT OF THE INTERIOR National Park Service’s administrative document the presence of the Kitkahaki responsibilities under NAGPRA, 25 band of the Pawnee in the region National Park Service U.S.C. 3003(d)(3). The determinations in encompassing site 14RP1 during the this notice are the sole responsibility of 1770–1810 C.E. timeframe. [NPS–WASO–NAGPRA–NPS0027785; the museum, institution, or Federal PPWOCRADN0–PCU00RP14.R50000] Geographically, the site lies within the agency that has control of the Native historically documented territory of the Notice of Inventory Completion: Robert American human remains and Pawnee (see summaries in Roper 2006 S. Peabody Institute of Archaeology, associated funerary objects. The and Wedel 1936; 1959:40–41, 58–60). Andover, MA National Park Service is not responsible Pawnee oral history supports these for the determinations in this notice. findings (see Weltfish 1965). AGENCY: National Park Service, Interior. Consultation Furthermore, excavations conducted in ACTION: Notice. the 1960s by the Kansas State Historical An invitation to consult was extended Society and in 2007 by the University of SUMMARY: The Robert S. Peabody to the Mashpee Wampanoag Tribe Kansas corroborate the above Institute of Archaeology has completed (previously listed as the Mashpee statements. an inventory of human remains and Wampanoag Indian Tribal Council, Inc.)

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and the Wampanoag Tribe of Gay Head the head of Wellfleet Harbor on Cape by June 14, 2019. After that date, if no (Aquinnah), hereafter referred to as Cod.’’ These sites lie within the additional requestors have come ‘‘The Invited Tribes.’’ The Assonet Band historically documented territory of the forward, transfer of control of the of the Wampanoag Nation, a non- Wampanoag. In his 1928 monograph, human remains and associated funerary federally recognized Indian group, was ‘‘Territorial Subdivisions and objects to The Invited Tribes may also invited, but chose not to Boundaries of the Wampanoag, proceed. participate. Massachusett, and Nauset Indians,’’ The Robert S. Peabody Institute of The Invited Tribes either did not (Indian Notes and Monographs No. 44, Archaeology is responsible for notifying consult or engaged in limited 1928) Frank Speck places the area The Invited Tribes and the Assonet communication. Determinations of around Wellfleet within the traditional Band of the Wampanoag Nation, a non- cultural affiliation are based on prior territory of the Wampanoag. federally recognized Indian group, that and extensive consultation with these Linguistically, this area is within the so- this notice has been published. Indian Tribes and groups for other called n-dialect shared by Massachusett, Dated: April 25, 2019. human remains and associated funerary Wampanoag, and Pokanoket speakers objects from the same site and vicinity. (see map and discussion in Kathleen J. Melanie O’Brien, Manager, National NAGPRA Program. History and Description of the Remains Bragdon’s 2009 book Native Peoples of Southern New England, 1650–1775, [FR Doc. 2019–09993 Filed 5–14–19; 8:45 am] At an unknown date early in the pages 22–23). Sociopolitical and BILLING CODE 4312–52–P twentieth century, human remains economic patterns in the coastal area of representing, at minimum, one Rhode Island and Massachusetts were individual were removed from the established by the late Woodland period DEPARTMENT OF THE INTERIOR Chequesset Inn-Taylor Hill site (19–BN– circa A.D. 1000, and the coastal groups National Park Service 106) in Barnstable County, MA. in this area are likely the ancestors of Research by archeologist James W. the Wampanoag people encountered by [NPS–WASO–NAGPRA–NPS0027787; Bradley (2008) indicates that the English in the seventeenth century. PPWOCRADN0–PCU00RP14.R50000] avocational archeologist Howard Torrey Archeology, ethno-history, linguistics, removed human remains from the and oral history provide multiple lines Notice of Inventory Completion: Chequesset Inn-Taylor Hill site, and of evidence that demonstrate Tennessee Department of Environment gave some of these human remains to longstanding ties between the and Conservation, Division of avocational archeologist Fred Luce in Wampanoag and the area around the Archaeology, Nashville, TN 1915. During an inventory project in Chequesset Inn-Taylor Hill site and AGENCY: National Park Service, Interior. 2018, staff members of the Robert S. affirm affiliation with the burial at the ACTION: Notice. Peabody Institute of Archaeology site. located 6 boxes of objects from Cape SUMMARY: Cod area sites that had been amassed by Determinations Made by the Robert S. The Tennessee Department of Fred Luce in the early twentieth Peabody Institute of Archaeology Environment and Conservation, century. Examination by physical Division of Archaeology has completed Officials of the Robert S. Peabody an inventory of human remains and anthropologist Harley Erickson found Institute of Archaeology have that the human remains consist of two associated funerary objects in determined that: consultation with the appropriate heavily eroded human bone fragments— • Pursuant to 25 U.S.C. 3001(9), the a distal end of a metatarsal and a medial Indian Tribes or Native Hawaiian human remains described in this notice organizations, and has determined that hand phalanx. Both are from an adult of represent the physical remains of one indeterminate sex and age. No known there is a cultural affiliation between the individual of Native American ancestry. human remains and present-day Indian individuals were identified. The 56 • Pursuant to 25 U.S.C. 3001(3)(A), Tribes or Native Hawaiian associated funerary objects are six the 56 objects described in this notice organizations. Lineal descendants or modified animal bone fragments; 22 are reasonably believed to have been representatives of any Indian Tribe or ceramic fragments, some decorated placed with or near individual human Native Hawaiian organization not (including small bag of ceramic dust remains at the time of death or later as identified in this notice that wish to and debris); and 28 small, unmodified part of the death rite or ceremony. shells. (Three other individuals and • Pursuant to 25 U.S.C. 3001(2), there request transfer of control of these eight associated funerary objects from is a relationship of shared group human remains and associated funerary Taylor Hill and excavated by Howard identity that can be reasonably traced objects should submit a written request Torrey and archeologist Ripley R. between the Native American human to the Tennessee Department of Bullen in 1946 and 1949 were listed by remains and associated funerary objects Environment and Conservation, the Robert S. Peabody Institute of and The Invited Tribes. Division of Archaeology. If no Archaeology in a Notice of Inventory additional requestors come forward, Completion published in 2005, and Additional Requestors and Disposition transfer of control of the human remains have already been repatriated.) Lineal descendants or representatives to the lineal descendants, Indian Tribes, The Chequesset Inn-Taylor Hill site is of any Indian Tribe or Native Hawaiian or Native Hawaiian organizations stated reported in archeologist James W. organization not identified in this notice in this notice may proceed. Bradley’s 2008 article ‘‘Taylor Hill: A that wish to request transfer of control DATES: Lineal descendants or Middle Woodland Mortuary Site in of these human remains and associated representatives of any Indian Tribe or Wellfleet, MA,’’ in the Bulletin of the funerary objects should submit a written Native Hawaiian organization not Massachusetts Archaeological Society. request with information in support of identified in this notice that wish to The site dates to the late Middle the request to Ryan Wheeler, Robert S. request transfer of control of these Woodland era (circa 1100 to 1300 years Peabody Institute of Archaeology, human remains and associated funerary B.P.), and is described by Bradley as a Phillips Academy, 180 Main Street, objects should submit a written request ‘‘concentration of late Middle Woodland Andover, MA 01810, telephone (978) with information in support of the habitation and mortuary sites located at 749–4490, email [email protected], request to the Tennessee Department of

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Environment and Conservation, 2010.pdf). The Fort Loudoun are reasonably believed to have been Division of Archaeology at the address Association sponsored the test placed with or near individual human in this notice by June 14, 2019. excavations, and the work was remains at the time of death or later as ADDRESSES: Tennessee Department of conducted by a University of Tennessee part of the death rite or ceremony. • Environment and Conservation, student, who removed the partial Pursuant to 25 U.S.C. 3001(2), there Division of Archaeology, Michael C. human remains of an adult male from is a relationship of shared group Moore, 1216 Foster Avenue, Cole Structure 7 fill (Burial 1 in the 2010 site identity that can be reasonably traced Building 3, Nashville, TN 37243, report). No known individuals were between the Native American human telephone (615) 687–4776, email identified. No associated funerary remains and associated funerary objects [email protected]. objects are present. and The Tribes. In 1975–1976, human remains SUPPLEMENTARY INFORMATION: Notice is representing, at minimum, one Additional Requestors and Disposition here given in accordance with the individual were removed from the Ft. Lineal descendants or representatives Native American Graves Protection and Loudoun historic site (40MR1) in of any Indian Tribe or Native Hawaiian Repatriation Act (NAGPRA), 25 U.S.C. Monroe County, TN. The human organization not identified in this notice 3003, of the completion of an inventory remains of an adult female were that wish to request transfer of control of human remains and associated recovered during the Tennessee of these human remains and associated funerary objects under the control of the Division of Archaeology (TDOA) funerary objects should submit a written Tennessee Department of Environment excavations (Burial 2 in the 2010 site request with information in support of and Conservation, Division of report). According to the site report, the the request to Michael C. Moore, Archaeology, Nashville, TN. The human human remains of this individual were Tennessee Department of Environment remains and associated funerary objects turned over to the McClung Museum at and Conservation, Division of were removed from Monroe County, TN. the University of Tennessee, and were Archaeology, 1216 Foster Avenue, Cole This notice is published as part of the reburied at a grave site constructed at Building 3, Nashville, TN 37243, National Park Service’s administrative the Sequoia Museum (near Ft. Loudoun) telephone (615) 687–4776, email responsibilities under NAGPRA, 25 along with other Cherokee burial [email protected], by June 14, 2019. U.S.C. 3003(d)(3). The determinations in remains from the Little Tennessee After that date, if no additional this notice are the sole responsibility of Valley. The human remains from Burial requestors have come forward, transfer the museum, institution, or Federal 2 in the Division’s possession consist of of control of the human remains and agency that has control of the Native one box of long bones still in dirt. associated funerary objects to The American human remains and Apparently, these human remains had Tribes may proceed. associated funerary objects. The been excluded from the reburial. No The Tennessee Department of National Park Service is not responsible known individuals were identified. The Environment and Conservation, for the determinations in this notice. 13 associated funerary objects are three Division of Archaeology is responsible Consultation heart-shaped broaches, two circular for notifying The Tribes that this notice broaches, one silver cuff bracelet, one has been published. A detailed assessment of the human iron snuff box, two silver teardrop remains was made by the Tennessee Dated: April 25, 2019. earrings, and four brass thimbles with Melanie O’Brien, Department of Environment and holes. Until recently, these associated Manager, National NAGPRA Program. Conservation, Division of Archaeology funerary objects were on display at the professional staff in consultation with Ft. Loudoun State Historic Park. [FR Doc. 2019–09996 Filed 5–14–19; 8:45 am] representatives of the Cherokee Nation; Although the 2010 site report states that BILLING CODE 4312–52–P Eastern Band of Cherokee Indians; and five thimbles were recovered during the the United Keetoowah Band of Cherokee excavations, only four thimbles were DEPARTMENT OF THE INTERIOR Indians (hereafter referred to as ‘‘The present when the associated funerary Tribes’’). objects were returned to the TDOA in National Park Service History and Description of the Remains 2018. The location of the fifth thimble is unknown. Based upon the range and [NPS–WASO–NAGPRA–NPS0027786; Between 1958 and 1959, human style of artifacts (broaches, earrings, and PPWOCRADN0–PCU00RP14.R50000] remains representing, at minimum, one thimbles with holes), the associated Notice of Intent To Repatriate Cultural individual were removed from the Ft. funerary objects are consistent with Loudoun historic site (40MR1) in Items: Pueblo Grande Museum, previously identified historic period Phoenix, AZ Monroe County, TN during test Native American objects used as excavations. The partial human remains personal adornments. AGENCY: National Park Service, Interior. represent one adult male. Ft. Loudoun ACTION: Notice. (40MR1) is an 18th-century fort located Determinations Made by the Tennessee on the south side of the Little Tennessee Department of Environment and SUMMARY: The Pueblo Grande Museum, River in Monroe County, TN. Conservation, Division of Archaeology in consultation with the appropriate Construction of the fort was begun in Officials of the Tennessee Department Indian Tribes or Native Hawaiian 1756, and substantially finished in of Environment and Conservation, organizations, has determined that the 1757; final features were completed in Division of Archaeology have cultural item listed in this notice meets 1758. The Cherokee town of Tuskegee determined that: the definition of a sacred object. Lineal was located just south of Ft. Loudoun, • Pursuant to 25 U.S.C. 3001(9), the descendants or representatives of any and the relationship and interactions human remains described in this notice Indian Tribe or Native Hawaiian between Ft. Loudoun and the Cherokee represent the physical remains of two organization not identified in this notice Indians are well documented (see individuals of Native American that wish to claim this cultural item https://www.tn.gov/content/dam/tn/ ancestry. should submit a written request to the environment/archaeology/documents/ • Pursuant to 25 U.S.C. 3001(3)(A), Pueblo Grande Museum. If no researchseries/arch_rs17_fort_loudoun_ the 13 objects described in this notice additional claimants come forward,

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transfer of control of the cultural item to between the sacred object and the Hopi SUPPLEMENTARY INFORMATION: The the lineal descendants, Indian Tribes, or Tribe of Arizona. Attorney General has delegated his Native Hawaiian organizations stated in Additional Requestors and Disposition authority under the Controlled this notice may proceed. Substances Act to the Administrator of DATES: Lineal descendants or Lineal descendants or representatives the Drug Enforcement Administration representatives of any Indian Tribe or of any Indian Tribe or Native Hawaiian (DEA), 28 CFR 0.100(b). Authority to Native Hawaiian organization not organization not identified in this notice exercise all necessary functions with identified in this notice that wish to that wish to claim this cultural item respect to the promulgation and claim this cultural item should submit should submit a written request with implementation of 21 CFR part 1301, information in support of the claim to a written request with information in incident to the registration of Lindsey Vogel-Teeter, Pueblo Grande support of the claim to the Pueblo manufacturers, distributors, dispensers, Museum, 4619 E Washington Street, Grande Museum at the address in this importers, and exporters of controlled notice by June 14, 2019. Phoenix, AZ 85331, telephone (602) 495–0901, email lindsey.vogel-teeter@ substances (other than final orders in ADDRESSES: Lindsey Vogel-Teeter, phoenix.gov, by June 14, 2019. After connection with suspension, denial, or Pueblo Grande Museum, 4619 E revocation of registration) has been Washington Street, Phoenix, AZ 85331, that date, if no additional claimants have come forward, transfer of control redelegated to the Assistant telephone (602) 495–0901, email Administrator of the DEA Diversion [email protected]. of the sacred object to the Hopi Tribe of Arizona may proceed. Control Division (‘‘Assistant SUPPLEMENTARY INFORMATION: Notice is The Pueblo Grande Museum is Administrator’’) pursuant to section 7 of here given in accordance with the responsible for notifying the Hopi Tribe 28 CFR part 0, appendix to subpart R. Native American Graves Protection and of Arizona that this notice has been In accordance with 21 CFR Repatriation Act (NAGPRA), 25 U.S.C. published. 3005, of the intent to repatriate a 1301.34(a), this is notice that on March cultural item under the control of the Dated: April 25, 2019. 11, 2019, Rhodes Technologies, 498 Pueblo Grande Museum, Phoenix, AZ, Melanie O’Brien, Washington Street, Coventry, Rhode that meets the definition of a sacred Manager, National NAGPRA Program. Island 02816 applied to be registered as object under 25 U.S.C. 3001. [FR Doc. 2019–09995 Filed 5–14–19; 8:45 am] an importer of the following basic This notice is published as part of the BILLING CODE 4312–52–P classes of controlled substances: National Park Service’s administrative responsibilities under NAGPRA, 25 Controlled substance Drug code Schedule U.S.C. 3003(d)(3). The determinations in DEPARTMENT OF JUSTICE Tetrahydrocannabinols .. 7370 I this notice are the sole responsibility of Methylphenidate ...... 1724 II the museum, institution, or Federal Drug Enforcement Administration Oxycodone ...... 9143 II agency that has control of the Native Hydromorphone ...... 9150 II American cultural item. The National [Docket No. DEA–392] Hydrocodone ...... 9193 II Park Service is not responsible for the Morphine ...... 9300 II Opium, raw ...... 9600 II determinations in this notice. Importer of Controlled Substances Application: Rhodes Technologies Oxymorphone ...... 9652 II History and Description of the Cultural Poppy Straw Con- 9670 II centrate. Item ACTION: Notice of application. Around 1983, a Butterfly Dance The company plans to import Opium, Tablita (headdress) was donated to the DATES: Registered bulk manufacturers of the affected basic classes, and raw (9600), and Poppy Straw Pueblo Grande Museum by Holley Concentrate (9670) in order to bulk Swan, a patron of the Museum. No applicants therefore, may file written manufacture controlled substances in additional information is known about comments on or objections to the Active Pharmaceutical Ingredient (API) the collecting history of this object. issuance of the proposed registration on During consultation on January 10, or before June 14, 2019. Such persons form. The company distributes the 2017, representatives of the Hopi Tribe may also file a written request for a manufactured APIs in bulk to its of Arizona demonstrated the Tribe’s hearing on the application on or before customers. cultural affiliation with this object, and June 14, 2019. The company plans to import the established that the object was needed ADDRESSES: Written comments should other listed controlled substances for for use by girls during a traditional Hopi be sent to: Drug Enforcement internal reference standards use only. ceremony, the Butterfly dance. Administration, Attention: DEA Federal The comparisons of foreign reference Register Representative/DPW, 8701 standards to the company’s Determinations Made by the Pueblo Morrissette Drive, Springfield, Virginia Grande Museum domestically manufactured API will 22152. All requests for a hearing must allow the company to export Officials of the Pueblo Grande be sent to: Drug Enforcement domestically manufactured API to Administration, Attn: Administrator, Museum have determined that: foreign markets. • Pursuant to 25 U.S.C. 3001(3)(C), 8701 Morrissette Drive, Springfield, the one cultural item described above is Virginia 22152. All requests for a Dated: April 27, 2019. a specific ceremonial object needed by hearing should also be sent to: (1) Drug John J. Martin, traditional Native American religious Enforcement Administration, Attn: Assistant Administrator. leaders for the practice of traditional Hearing Clerk/OALJ, 8701 Morrissette [FR Doc. 2019–10010 Filed 5–14–19; 8:45 am] Native American religions by their Drive, Springfield, Virginia 22152; and BILLING CODE 4410–09–P present-day adherents. (2) Drug Enforcement Administration, • Pursuant to 25 U.S.C. 3001(2), there Attn: DEA Federal Register is a relationship of shared group Representative/DPW, 8701 Morrissette identity that can be reasonably traced Drive, Springfield, Virginia 22152.

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DEPARTMENT OF JUSTICE opportunity to submit a corrective the Government accomplished service action plan. OSC, at 3 (citing 21 U.S.C. of the OSC on Registrant on or before Drug Enforcement Administration 824(c)(2)(C)). January 24, 2019. I also find that more than 30 days have now passed since the Adequacy of Service Raquel Skidmore, M.D.; Decision and Government accomplished service of Order In a Declaration dated February 26, the OSC. Further, based on the On December 14, 2018, the Assistant 2019, a Diversion Investigator Government’s written representations, I Administrator, Diversion Control (hereinafter, DI) assigned to the Miami find that neither Registrant, nor anyone Division, Drug Enforcement Field Division, Tallahassee Resident purporting to represent her, requested a Administration (hereinafter, DEA or Office, describes herself as the ‘‘lead DI hearing, submitted a written statement Government), issued an Order to Show assigned’’ to the matter involving while waiving Registrant’s right to a Cause to Raquel Skidmore, M.D. Registrant. Request for Final Agency hearing, or submitted a corrective action (hereinafter, Registrant), of Panama City, Action dated February 28, 2019 plan. Accordingly, I find that Registrant Florida. Order to Show Cause (hereinafter, RFAA), App. 4, at 1. The DI has waived her right to a hearing and (hereinafter, OSC), at 1. The OSC states that she and a Group Supervisor her right to submit a written statement proposes the revocation of Registrant’s found Registrant’s registered office and corrective action plan. 21 CFR Certificate of Registration on the ground address ‘‘abandoned’’ when they visited 1301.43(d) and 21 U.S.C. 824(c)(2)(C). I, that she does ‘‘not have authority to it on November 14, 2018. Id. at 2. therefore, issue this Decision and Order handle controlled substances in the According to the DI, the ‘‘building based on the record submitted by the Government, which constitutes the State of Florida, the state in which . . . manager . . . stated that Registrant had entire record before me. 21 CFR [she is] registered with the DEA.’’ Id. not been at the registered location for 1301.43(e). (citing 21 U.S.C. 823(f) and 824(a)(3)). well over a year, and that she had heard Regarding jurisdiction, the OSC Registrant had left the country.’’ Id. Findings of Fact alleges that Registrant holds DEA Registrant’s Facebook account indicates Registrant’s DEA Registration Certificate of Registration No. that she ‘‘now resides in St. Thomas, BS7985623 at the registered address of U.S. Virgin Islands.’’ Id. at 3. Registrant is the holder of DEA Gulf Coast Holistic and Primary Care, The DI states that she tried to serve Certificate of Registration No. 219 Forest Park Circle, Panama City, the OSC on Registrant in five different BS7985623 at the registered address of Florida 32405. OSC, at 1. It alleges that ways: (1) By emailing it to Registrant’s Gulf Coast Holistic and Primary Care, this registration authorizes Registrant to registered email address; (2) by 219 Forest Park Circle, Panama City, dispense controlled substances in contacting the attorney who represented Florida 32405. RFAA, App. 5, at 2. schedules II through V as a practitioner. Registrant before the Florida Board of Pursuant to this registration, Registrant Id. The OSC alleges that this registration Medicine; (3) by utilizing Registrant’s is authorized to dispense controlled expires on February 29, 2020. Id. Facebook page to contact Registrant’s substances in schedules II through V as The substantive ground for the husband; (4) by sending the OSC a practitioner. Id. Registrant’s proceeding, as alleged in the OSC, is registered mail to Registrant’s registered registration expires on February 29, that Registrant is ‘‘without authority to address; and (5) by sending a ‘‘private 2020 and is ‘‘in an active pending handle controlled substances in Florida, message through Facebook to status.’’ Id. at 1. Registrant.’’ Id. at 2. The DI states that, the state in which . . . [she is] The Status of Registrant’s State License registered with the DEA.’’ Id. on January 24, 2019, she ‘‘finally On April 5, 2018, the Florida Specifically, the OSC alleges that the received an email response from Department of Health issued an Order of Florida Department of Health issued an Registrant, which indicated she had Emergency Restriction of License No. ‘‘Order of Emergency Restriction of received and reviewed’’ the OSC. Id. ACN 244 (hereinafter, Emergency License’’ on April 5, 2018. Id. This I don’t communicate through phone, I Restriction). RFAA, App. 2, at 1. Order, according to the OSC, communicate through email. Anything you According to the Emergency Restriction, immediately restricted Registrant’s want to tell me it has to be through this Registrant suffered a severe manic ‘‘license to practice in areas of critical email. I lost my license very unfairly, I lost my job and couldn’t afford a lawyer anymore. episode on February 19, 2017 that need’’ because her ‘‘continued practice I would love to go to that hearing in February involved her jumping out of her of medicine would constitute ‘an but I can’t even afford a plane ticket. What bathroom window, running naked immediate, serious danger to the health, do you want from me? through the streets, and screaming that safety, or welfare of the citizens of Id. at Exh. 1, at 2. she was god and was going to save the Florida.’ ’’ Id. at 1–2. On July 5, 2018, In its RFAA, the Government world. Id. at 2. The Emergency the OSC alleges, ‘‘the Florida Board of represents that ‘‘more than thirty days Restriction also states that Registrant Medicine adopted the findings of fact in have passed since the . . . [OSC] was grabbed her infant grandchild and the Order of Emergency Restriction and served on . . . [Registrant] and no claimed that the infant was her issued a Final Order revoking . . . request for hearing has been received by deceased grandmother. Id. According to [Registrant’s] license to practice DEA.1 RFAA, at 1. The Government the Emergency Restriction, Registrant medicine in the State of Florida.’’ Id. at requests that Registrant’s ‘‘Certificate of believed that ‘‘her manic episode may 2. Registration as a practitioner be have been the result of the stressors The Show Cause Order notifies revoked, based on . . . [her] lack of state involved with practicing medicine,’’ Registrant of her right to request a authority.’’ Id. at 5. admitted to smoking approximately one hearing on the allegations or to submit Based on the DI’s Declaration, the ‘‘bowl’’ of marijuana every day for about a written statement while waiving her Government’s written representations, the last two years, and ‘‘submitted hair right to a hearing, the procedures for and my review of the record, I find that and urine samples for toxicology electing each option, and the screening.’’ 2 Id. at 3. consequences for failing to elect either 1 The Government also represents that DEA has option. Id. at 2 (citing 21 CFR 1301.43). not received ‘‘any other correspondence of [sic] 2 The toxicological tests of Registrant’s hair and The OSC also notifies Registrant of the filing’’ from Registrant. RFAA, at 3. urine samples indicated the presence of marijuana.

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The Emergency Restriction states that, license remains revoked and that she is Bobby Watts, M.D., 53 FR 11,919, 11,920 as of the date of the Emergency not authorized in Florida to prescribe (1988); Blanton, supra, 43 FR at 27,617. Restriction, Registrant ‘‘has failed to controlled substances. Id. According to Florida statute, ‘‘A enter into a contract with . . . [the Accordingly, I find that Registrant practitioner, in good faith and in the Professionals Resource Network, currently is neither licensed to engage course of his or her professional practice (hereinafter, PRN)] that encompasses the in the practice of medicine nor only, may prescribe, administer, [or] necessary treatment to address . . . registered to dispense controlled dispense . . . a controlled substance.’’ [Registrant’s] psychiatric and substance substances in Florida, the State in Fla. Stat. Ann. § 893.05(1)(a) (West, abuse issues.’’ Id. at 4. It concludes that which she is registered with the DEA. Westlaw current with chapters from the (1) Registrant ‘‘is not capable of caring 2019 First Regular Session of the 26th for patients in a manner that is correct Discussion Legislature in effect through April 26, and safe;’’ (2) Registrant’s continued Pursuant to 21 U.S.C. 824(a)(3), the 2019). Further, ‘‘practitioner,’’ as unrestricted practice as a physician Attorney General is authorized to defined by Florida statute, includes ‘‘a presents an immediate, serious danger suspend or revoke a registration issued physician licensed under chapter 458.’’ to the health, welfare, and safety of the under section 823 of the Controlled Fla. Stat. Ann. § 893.02(23) (West, public;’’ (3) ‘‘there is a significant Substances Act (hereinafter, CSA), Westlaw current with chapters from the likelihood that . . . [Registrant’s] ‘‘upon a finding that the registrant . . . 2019 First Regular Session of the 26th inability to practice medicine with has had his State license or registration Legislature in effect through April 26, reasonable skill and safety to patients suspended . . . [or] revoked . . . by 2019).4 will continue without appropriate competent State authority and is no Here, the undisputed evidence in the treatment and monitoring;’’ and that (4) longer authorized by State law to engage record is that Registrant currently lacks there are no less restrictive means, other in the . . . dispensing of controlled authority to practice medicine in than the terms of . . . [the Emergency substances.’’ With respect to a Florida. As already discussed, a Restriction], that will adequately protect practitioner, the DEA has also long held physician must be a licensed the public from . . . [Registrant’s] that the possession of authority to practitioner to dispense a controlled continued unrestricted practice of dispense controlled substances under substance in Florida. Thus, since medicine.’’ Id. at 4–5. The Emergency the laws of the State in which a Registrant lacks authority to practice Restriction orders the immediate practitioner engages in professional medicine in Florida and, therefore, is restriction of Registrant’s medical practice is a fundamental condition for not authorized to handle controlled license ‘‘until PRN or a PRN-approved obtaining and maintaining a substances in Florida, I will order that evaluator notifies the Department that practitioner’s registration. See, e.g., Registrant’s DEA registration be she is safe to resume the practice of James L. Hooper, M.D., 76 FR 71,371 revoked. medicine.’’ Id. at 7. (2011), pet. for rev. denied, 481 Fed. On July 2, 2018, the Florida Board of Order Appx. 826 (4th Cir. 2012); Frederick Medicine denied all of the Exceptions Pursuant to 28 CFR 0.100(b) and the Marsh Blanton, M.D., 43 FR 27,616, that Registrant filed concerning the authority vested in me by 21 U.S.C. 27,617 (1978). Emergency Restriction, adopted the 824(a), I order that DEA Certificate of Emergency Restriction’s findings of fact, This rule derives from the text of two Registration No. BS7985623 issued to and revoked Registrant’s license to provisions of the CSA. First, Congress Raquel Skidmore, M.D., be, and it practice medicine in the State of defined the term ‘‘practitioner’’ to mean hereby is, revoked. This Order is Florida. Final Order of the Florida ‘‘a physician . . . or other person effective June 14, 2019. licensed, registered, or otherwise Board of Medicine (filed date: July 5, Dated: May 3, 2019. 2018) (hereinafter, Final Order), at 2–6. permitted, by . . . the jurisdiction in According to Florida’s online records, which he practices ..., to distribute, Uttam Dhillon, of which I take official notice, dispense, . . . [or] administer . . . a Acting Administrator. Registrant’s license is still revoked.3 controlled substance in the course of [FR Doc. 2019–10015 Filed 5–14–19; 8:45 am] Florida Board of Medicine Lookup, professional practice.’’ 21 U.S.C. BILLING CODE 4410–09–P https://flboardofmedicine.gov/ (last 802(21). Second, in setting the visited May 3, 2019). Florida’s online requirements for obtaining a records show that Registrant’s medical practitioner’s registration, Congress DEPARTMENT OF JUSTICE directed that ‘‘[t]he Attorney General Drug Enforcement Administration Id. at 3. According to the Emergency Restriction, shall register practitioners . . . if the Registrant ‘‘does not have a valid order for medical applicant is authorized to dispense . . . [Docket No. DEA–392] marijuana. Id. controlled substances under the laws of 3 Under the Administrative Procedure Act, an Importer of Controlled Substances agency ‘‘may take official notice of facts at any stage the State in which he practices.’’ 21 in a proceeding—even in the final decision.’’ U.S.C. 823(f). Because Congress has Application: Wildlife Laboratories, Inc. United States Department of Justice, Attorney clearly mandated that a practitioner General’s Manual on the Administrative Procedure possess State authority in order to be ACTION: Notice of application. Act 80 (1947) (Wm. W. Gaunt & Sons, Inc., Reprint deemed a practitioner under the CSA, 1979). Pursuant to 5 U.S.C. 556(e), ‘‘[w]hen an DATES: Registered bulk manufacturers of the DEA has held repeatedly that agency decision rests on official notice of a material the affected basic classes, and fact not appearing in the evidence in the record, a revocation of a practitioner’s registration applicants therefore, may file written party is entitled, on timely request, to an is the appropriate sanction whenever he comments on or objections to the opportunity to show the contrary.’’ Accordingly, is no longer authorized to dispense Registrant may dispute my finding by filing a issuance of the proposed registration on controlled substances under the laws of properly supported motion for reconsideration or before June 14, 2019. Such persons within 15 calendar days of the date of this Order. the State in which he practices. See, may also file a written request for a Any such motion shall be filed with the Office of e.g., Hooper, supra, 76 FR at 71,371–72; the Administrator and a copy shall be served on the Government. In the event Registrant files a motion, Sheran Arden Yeates, M.D., 71 FR 4 Chapter 458 concerns medical practice and the Government shall have 15 calendar days to file 39,130, 39,131 (2006); Dominick A. addresses, among other things, the licensure of a response. Ricci, M.D., 58 FR 51,104, 51,105 (1993); physicians.

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hearing on the application on or before DEPARTMENT OF JUSTICE Dated: April 27, 2019. June 14, 2019. John J. Martin, Drug Enforcement Administration ADDRESSES: Written comments should Assistant Administrator. be sent to: Drug Enforcement [FR Doc. 2019–10013 Filed 5–14–19; 8:45 am] [Docket No. DEA–392] Administration, Attention: DEA Federal BILLING CODE 4410–09–P Register Representative/DPW, 8701 Bulk Manufacturer of Controlled Morrissette Drive, Springfield, Virginia Substances Application: AMPAC Fine DEPARTMENT OF JUSTICE 22152. All requests for a hearing must Chemicals Virginia, LLC be sent to: Drug Enforcement Drug Enforcement Administration Administration, Attn: Administrator, ACTION: Notice of application. 8701 Morrissette Drive, Springfield, Virginia 22152. All requests for a [Docket No. DEA–392] DATES: Registered bulk manufacturers of hearing should also be sent to: (1) Drug Bulk Manufacturer of Controlled Enforcement Administration, Attn: the affected basic classes, and applicants therefore, may file written Substances Registration Hearing Clerk/OALJ, 8701 Morrissette comments on or objections to the Drive, Springfield, Virginia 22152; and issuance of the proposed registration on ACTION: Notice of registration. (2) Drug Enforcement Administration, or before July 15, 2019. Attn: DEA Federal Register SUMMARY: Registrants listed below have Representative/DPW, 8701 Morrissette ADDRESSES: Written comments should applied for and been granted Drive, Springfield, Virginia 22152. be sent to: Drug Enforcement Administration, Attention: DEA Federal registration by the Drug Enforcement SUPPLEMENTARY INFORMATION: The Register Representative/DPW, 8701 Administration (DEA) as bulk Attorney General has delegated his Morrissette Drive, Springfield, Virginia manufacturers of schedule I and II authority under the Controlled 22152. controlled substances. Substances Act to the Administrator of SUPPLEMENTARY INFORMATION: The the Drug Enforcement Administration SUPPLEMENTARY INFORMATION: The companies listed below applied to be (DEA), 28 CFR 0.100(b). Authority to Attorney General has delegated his registered as bulk manufacturers of exercise all necessary functions with authority under the Controlled schedule I or schedule II controlled respect to the promulgation and Substances Act to the Administrator of substances. Information on previously implementation of 21 CFR part 1301, the Drug Enforcement Administration published notices is listed in the table incident to the registration of (DEA), 28 CFR 0.100(b). Authority to below. No comments or objections were manufacturers, distributors, dispensers, exercise all necessary functions with submitted for these notices. importers, and exporters of controlled respect to the promulgation and substances (other than final orders in implementation of 21 CFR part 1301, Company FR docket Published connection with suspension, denial, or incident to the registration of Johnson Matthey Pharma- 84 FR 2579 February 7, revocation of registration) has been manufacturers, distributors, dispensers, ceutical Materials Inc. 2019. importers, and exporters of controlled IsoSciences, LLC ...... 84 FR 2570 February 7, redelegated to the Assistant 2019. Administrator of the DEA Diversion substances (other than final orders in connection with suspension, denial, or Control Division (‘‘Assistant The DEA has considered the factors in Administrator’’) pursuant to section 7 of revocation of registration) has been redelegated to the Assistant 21 U.S.C. 823(a) and determined that 28 CFR part 0, appendix to subpart R. Administrator of the DEA Diversion the registration of these registrants to In accordance with 21 CFR Control Division (‘‘Assistant manufacture the applicable basic classes 1301.34(a), this is notice that on March Administrator’’) pursuant to section 7 of of controlled substances is consistent 12, 2019, Wildlife Laboratories, Inc., 28 CFR part 0, appendix to subpart R. with the public interest and with United 1230 West Ash, Suite D, Windsor, States obligations under international In accordance with 21 CFR treaties, conventions, or protocols in Colorado 80550–4677 applied to be 1301.33(a), this is notice that on March registered as an importer of the effect on May 1, 1971. The DEA 6, 2019, AMPAC Fine Chemicals investigated each company’s following basic class of controlled Virginia, LLC, 2820 North Normandy substances: maintenance of effective controls Drive, Petersburg, Virginia 23805 against diversion by inspecting and Controlled substance Drug code Schedule applied to be registered as a bulk testing each company’s physical manufacturer of the following basic security systems, verifying each Etorphine HCL ...... 9059 II class of controlled substances: company’s compliance with state and Thiafentanil ...... 9729 II Controlled substance Drug code Schedule local laws, and reviewing each company’s background and history. The company plans to import the Methylphenidate ...... 1724 II Therefore, pursuant to 21 U.S.C. listed controlled substances for Phenylacetone ...... 8501 II 823(a), and in accordance with 21 CFR distribution to its customers. Levomethorphan ...... 9210 II Levorphanol ...... 9220 II 1301.33, the DEA has granted a Dated: April 27, 2019. Morphine ...... 9300 II registration as a bulk manufacturer to John J. Martin, Thebaine ...... 9333 II the above listed companies. Noroxymorphone ...... 9668 II Assistant Administrator. Dated: April 27, 2019. Tapentadol ...... 9780 II [FR Doc. 2019–10030 Filed 5–14–19; 8:45 am] John J. Martin, BILLING CODE 4410–09–P The company plans to manufacture Assistant Administrator. the listed controlled substances in bulk [FR Doc. 2019–10014 Filed 5–14–19; 8:45 am] for distribution to its customers. BILLING CODE 4410–09–P

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DEPARTMENT OF JUSTICE The company plans to import the is registered with the DEA under DEA listed controlled substance for clinical COR No. AP8271138. OSC, at 2. Drug Enforcement Administration trials only. Approval of permit The OSC notified Registrant of his [Docket No. DEA–392] application will occur only when the right to request a hearing on the registrant’s business activity is allegations or to submit a written Importer of Controlled Substances consistent with what is authorized statement if he chooses to waive his Application: AndersonBrecon Inc. DBA under 21 U.S.C. 952(a)(2). Authorization right to a hearing, the procedures for PCI of Illinois will not extend to the import of FDA electing each option, and the approved or non-approved finished consequences for failing to elect one of ACTION: Notice of application. dosage forms for commercial sale. those options. Id. (citing 21 CFR Dated: April 27, 2019. 1301.43). The OSC also notified DATES: Registered bulk manufacturers of Registrant of the opportunity to submit John J. Martin, the affected basic class, and applicants a corrective action plan, the specific therefore, may file written comments on Assistant Administrator. procedures for filing a corrective action or objections to the issuance of the [FR Doc. 2019–10006 Filed 5–14–19; 8:45 am] plan, and the statutory provision that proposed registration on or before June BILLING CODE 4410–09–P governs such a plan. Id. at 2–3 (citing 21 14, 2019. Such persons may also file a U.S.C. 824(c)(2)(C)). written request for a hearing on the By letter dated March 27, 2018, application on or before June 14, 2019. DEPARTMENT OF JUSTICE Registrant timely submitted a corrective ADDRESSES: Written comments should Drug Enforcement Administration action plan (hereinafter, CAP). Request be sent to: Drug Enforcement for Final Agency Action dated April 10, Administration, Attention: DEA Federal Fred J. Powell, M.D.; Decision and 2018 (hereinafter, RFAA), Exhibit Register Representative/DPW, 8701 Order (hereinafter, Exh.) 5.1 Registrant’s CAP Morrissette Drive, Springfield, Virginia consists of thirteen paragraphs 22152. All requests for a hearing must On January 25, 2018, the Acting containing assertions. The Assistant be sent to: Drug Enforcement Assistant Administrator, Diversion Administrator of the Diversion Control Administration, Attn: Administrator, Control Division, Drug Enforcement Division denied Registrant’s CAP by 8701 Morrissette Drive, Springfield, Administration (hereinafter, DEA or letter dated April 6, 2018. Exh. 6. Virginia 22152. All requests for a Government), issued an Order to Show In its RFAA, the Government hearing should also be sent to: (1) Drug Cause to Fred J. Powell. (hereinafter, represents that, ‘‘At least 30 days have Enforcement Administration, Attn: Registrant), of St. Augustine, Florida. passed since the time the . . . [OSC] Hearing Clerk/OALJ, 8701 Morrissette Order to Show Cause (hereinafter, OSC), was served on Registrant. Registrant has Drive, Springfield, Virginia 22152; and at 1. The OSC proposes the revocation not requested a hearing.’’ RFAA, at 2. (2) Drug Enforcement Administration, of Registrant’s Certificate of Registration The Government requests the issuance Attn: DEA Federal Register (hereinafter, COR) on the ground that he of a ‘‘Final Order revoking Registrant’s Representative/DPW, 8701 Morrissette is without authority to handle DEA registration.’’ Id. at 4. Drive, Springfield, Virginia 22152. controlled substances in Florida, the The very existence of the CAP SUPPLEMENTARY INFORMATION: The State in which he is registered with the evidences that service of the OSC on Attorney General has delegated his DEA. Id. at 2. The OSC cites the Registrant was adequate. In addition, authority under the Controlled operative statutory provisions that spell Registrant did not dispute service. Substances Act to the Administrator of out the requirements for registration Based on the Government’s written the Drug Enforcement Administration upon which the DEA alleges that representations and my review of the (DEA), 28 CFR 0.100(b). Authority to Registrant is deficient, and the DEA’s record, I find that more than thirty days exercise all necessary functions with authority to revoke his registration. Id., have now passed since the date the respect to the promulgation and at 1–2 (citing 21 U.S.C. 824(a)(3)). Government served the OSC. I find that implementation of 21 CFR part 1301, Registrant timely submitted a CAP and Jurisdiction incident to the registration of that the Assistant Administrator of the manufacturers, distributors, dispensers, This Agency has jurisdiction to Diversion Control Division denied importers, and exporters of controlled decide this case based upon the OSC Registrant’s CAP by letter dated April 6, substances (other than final orders in allegation that Registrant holds a DEA 2018. Further, based on the connection with suspension, denial, or COR (No. AP8271138) at the registered Government’s written representations, I revocation of registration) has been address of 35 Townsend Pl., St. find that neither Registrant, nor anyone redelegated to the Assistant Augustine, FL 32092–3209. OSC, at 1. purporting to represent him, requested a Administrator of the DEA Diversion That registration authorizes Registrant, hearing or submitted a written statement Control Division (‘‘Assistant as a practitioner, to dispense controlled while waiving Registrant’s right to a Administrator’’) pursuant to section 7 of substances in schedules II through V hearing. Accordingly, I find that 28 CFR part 0, appendix to subpart R. and expires on March 31, 2020. Id. Registrant has waived his right to a In accordance with 21 CFR hearing and his right to submit a written Substantive Ground for Revocation of statement. 21 CFR 1301.43(d). I, 1301.34(a), this is notice that on March COR Alleged in OSC 5, 2019, AndersonBrecon Inc., DBA PCI therefore, issue this Decision and Order of Illinois, 5775 Logistics Parkway, The substantive ground for the based on the record submitted by the Rockford, Illinois 61109 applied to be proceeding, as alleged in the OSC, is Government, which constitutes the registered as an importer of the that Registrant agreed to a permanent entire record before me. 21 CFR following basic class of controlled restriction prohibiting him from 1301.43(e). substance: prescribing and ordering Schedule I through V controlled substances and 1 Also attached to the RFAA is a ‘‘Declaration’’ of Controlled substance Drug code Schedule thus is ‘‘currently without authority to a DEA Diversion Investigator (hereinafter, DI Declaration). Exh. 4. According to the DI handle controlled substances in the Tetrahydrocannabinols .. 7370 I Declaration, two Diversion Investigators personally State of Florida,’’ the State in which he served the OSC on Registrant on January 26, 2018.

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Findings of Fact dispense, . . . [or] administer . . . a registration in the State of Florida, be, controlled substance in the course of and it hereby is, denied. This order is Registrant’s DEA Registration professional practice.’’ 21 U.S.C. effective June 14 2019. Registrant is the holder of DEA COR 802(21). Second, in setting the Dated: April 23, 2019. No. AP8271138, pursuant to which he is requirements for obtaining a authorized to dispense controlled practitioner’s registration, Congress Uttam Dhillon, substances in schedules II through V as directed that ‘‘[t]he Attorney General Acting Administrator. a practitioner, at the registered address shall register practitioners . . . if the [FR Doc. 2019–10019 Filed 5–14–19; 8:45 am] of 35 Townsend Pl., St. Augustine, applicant is authorized to dispense . . . BILLING CODE 4410–09–P Florida 32092–3209. Certification of controlled substances under the laws of Registration History (Exh. 1), at 1. the State in which he practices.’’ 21 On December 15, 2017, the State of U.S.C. 823(f). Because Congress has DEPARTMENT OF JUSTICE Florida, Board of Medicine (hereinafter, clearly mandated that a practitioner Florida Board) issued a Final Order possess State authority in order to be Drug Enforcement Administration approving and adopting in full the deemed a practitioner under the CSA, Settlement Agreement that Registrant the DEA has held repeatedly that [Docket No. DEA–392] entered into on October 3, 2017, with revocation of a practitioner’s registration the State of Florida, Department of is the appropriate sanction whenever he Importer of Controlled Substances Health. Exh. 3, at 68–70. The Florida is no longer authorized to dispense Registration Board’s Final Order, therefore, adopted controlled substances under the laws of each provision of the Settlement the State in which he practices. See, ACTION: Notice of registration. Agreement, including Registrant’s e.g., Hooper, supra, 76 FR at 71371–72; voluntary permanent restriction from Sheran Arden Yeates, M.D., 71 FR ‘‘prescribing, ordering, and/or SUMMARY: The registrants listed below 39130, 39131 (2006); Dominick A. Ricci, delegating the prescribing or ordering have applied for and been granted M.D., 58 FR 51104, 51105 (1993); Bobby of, any substances listed in Schedules I– registration by the Drug Enforcement Watts, M.D., 53 FR 11919, 11920 (1988); V, as defined in Section 893.03, Florida Administration (DEA) as importers of Blanton, supra, 43 FR at 27617. Statutes (2016), and may from time-to- schedule I and schedule II controlled Registrant has voluntarily agreed substances. time be redefined in Florida Statutes permanently to stop prescribing and and/or the Florida Administrative ordering controlled substances, and to SUPPLEMENTARY INFORMATION: The Code.’’ Id. at 63. Thus, Registrant stop delegating the prescribing or companies listed below applied to be currently lacks authority to handle ordering of controlled substances. Exh. registered as importers of various basic controlled substances in the State of 3, at 63. He has also voluntarily agreed classes of controlled substances. Florida, the State in which he is that these permanent restrictions are Information on previously published licensed to practice medicine and where ‘‘fair, appropriate and acceptable’’ to notices is listed in the table below. No he is registered with DEA. him.2 Id. at 60. comments or objections were submitted Discussion The CSA has consistently been and no requests for hearing were Pursuant to 21 U.S.C. 824(a)(3), the interpreted to mean that the DEA does submitted for these notices. not have statutory authority to maintain Attorney General is authorized to Company FR docket Published suspend or revoke a registration issued a registration if the registrant is without State authority to handle controlled PerkinElmer, Inc ...... 84 FR 3246 February 11, 2019. under section 823 of the Controlled Stepan Company ...... 84 FR 3250 February 11, 2019. Substances Act (hereinafter, CSA), substances in the State in which he ‘‘upon a finding that the registrant . . . practices. E.g., Alaaeldin A. Babiker, has had his State license or registration M.D., 81 FR 50723, 50725 (2016); The DEA has considered the factors in suspended . . . [or] revoked . . . by Yeates, supra, 71 FR at 39131; Abraham 21 U.S.C. 823, 952(a) and 958(a) and competent State authority and is no A. Chaplan, M.D., 57 FR 55280, 55280 determined that the registration of the longer authorized by State law to engage (1992). Very simply, because Registrant listed registrants to import the in the . . . dispensing of controlled is not authorized to handle controlled applicable basic classes of schedule I substances.’’ With respect to a substances in Florida, he is not eligible and II controlled substances is practitioner, the DEA has long held that for a DEA registration. As such, I will consistent with the public interest and the possession of authority to dispense order that Registrant’s COR be revoked. with United States obligations under international treaties, conventions, or controlled substances under the laws of Order protocols in effect on May 1, 1971. The the State in which a practitioner engages Pursuant to 28 CFR 0.100(b) and the in professional practice is a DEA investigated each of the company’s authority vested in me by 21 U.S.C. maintenance of effective controls fundamental condition for obtaining 824(a), I order that DEA Certificate of and maintaining a practitioner’s against diversion by inspecting and Registration No. AP8271138 issued to testing each company’s physical registration. See, e.g., James L. Hooper, Fred J. Powell, M.D., be, and it hereby M.D., 76 FR 71371 (2011), pet. for rev. security systems, verifying each is, revoked. Pursuant to 28 CFR 0.100(b) company’s compliance with state and denied, 481 Fed. Appx. 826 (4th Cir. and the authority vested in me by 21 2012); Frederick Marsh Blanton, M.D., local laws, and reviewing each U.S.C. 823(f), I further order that any company’s background and history. 43 FR 27616, 27617 (1978). pending application of Fred J. Powell, This rule derives from the text of two Therefore, pursuant to 21 U.S.C. M.D., to renew or modify this provisions of the CSA. First, Congress 952(a) and 958(a), and in accordance registration (AP8271138), as well as any defined the term ‘‘practitioner’’ to mean with 21 CFR 1301.34, the DEA has other pending application by him for ‘‘a physician . . . or other person granted a registration as an importer for schedule I or schedule II controlled licensed, registered, or otherwise 2 Registrant also agreed to support these permitted, by . . . the jurisdiction in permanent restrictions before the Florida Board. Id. substances to the above listed which he practices . . ., to distribute, at 65. companies.

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Dated: April 27, 2019. DEPARTMENT OF JUSTICE Controlled substance Drug code Schedule John J. Martin, 4-Anilino-N-phenethyl-4- 8333 II Assistant Administrator. Drug Enforcement Administration piperidine (ANPP). [FR Doc. 2019–10028 Filed 5–14–19; 8:45 am] Tapentadol ...... 9780 II [Docket No. DEA–392] BILLING CODE 4410–09–P The company plans to import the Importer of Controlled Substances listed controlled substances in bulk for the manufacture of controlled DEPARTMENT OF JUSTICE Application: S & B Pharma, Inc substances for distribution to its Drug Enforcement Administration ACTION: Notice of application. customers. Dated: April 27, 2019. [Docket No. DEA–392] DATES: Registered bulk manufacturers of John J. Martin, the affected basic classes, and Assistant Administrator. Bulk Manufacturer of Controlled applicants therefore, may file written [FR Doc. 2019–10008 Filed 5–14–19; 8:45 am] Substances Registration comments on or objections to the BILLING CODE 4410–09–P issuance of the proposed registration on ACTION: Notice of registration. or before June 14, 2019. Such persons may also file a written request for a DEPARTMENT OF JUSTICE hearing on the application on or before SUMMARY: The registrant listed below Drug Enforcement Administration has applied for and been granted a June 14, 2019. [Docket No. DEA–392] registration by the Drug Enforcement ADDRESSES: Written comments should Administration (DEA) as a bulk be sent to: Drug Enforcement Importer of Controlled Substances manufacturer of various classes of Administration, Attention: DEA Federal Application: AndersonBrecon, Inc. schedule I controlled substances. Register Representative/DPW, 8701 ACTION: SUPPLEMENTARY INFORMATION: The Morrissette Drive, Springfield, Virginia Notice of application. company listed below has applied to be 22152. All requests for a hearing must DATES: Registered bulk manufacturers of registered as a bulk manufacturer of be sent to: Drug Enforcement Administration, Attn: Administrator, the affected basic class, and applicants various basic classes of controlled therefore, may file written comments on substances. Information on the 8701 Morrissette Drive, Springfield, Virginia 22152. All requests for a or objections to the issuance of the previously published notice is listed proposed registration on or before June below. No comments or objections were hearing should also be sent to: (1) Drug Enforcement Administration, Attn: 14, 2019. Such persons may also file a submitted for the notice. Hearing Clerk/OALJ, 8701 Morrissette written request for a hearing on the Company FR docket Published Drive, Springfield, Virginia 22152; and application on or before June 14, 2019. ADDRESSES: Written comments should Kinetochem, LLC ...... 84 FR 2579 February 7, (2) Drug Enforcement Administration, 2019 Attn: DEA Federal Register be sent to: Drug Enforcement Representative/DPW, 8701 Morrissette Administration, Attention: DEA Federal Register Representative/DPW, 8701 The DEA has considered the factors in Drive, Springfield, Virginia 22152. Morrissette Drive, Springfield, Virginia 21 U.S.C. 823(a) and determined that SUPPLEMENTARY INFORMATION: The 22152. All requests for a hearing must the registration of this registrant to Attorney General has delegated his be sent to: Drug Enforcement manufacture the applicable basic class authority under the Controlled Administration, Attn: Administrator, of controlled substances is consistent Substances Act to the Administrator of 8701 Morrissette Drive, Springfield, with the public interest and with United the Drug Enforcement Administration Virginia 22152. All requests for a States obligations under international (DEA), 28 CFR 0.100(b). Authority to hearing should also be sent to: (1) Drug treaties, conventions, or protocols in exercise all necessary functions with Enforcement Administration, Attn: effect on May 1, 1971. The DEA respect to the promulgation and Hearing Clerk/OALJ, 8701 Morrissette investigated the company’s maintenance implementation of 21 CFR part 1301, Drive, Springfield, Virginia 22152; and of effective controls against diversion by incident to the registration of (2) Drug Enforcement Administration, inspecting and testing the company’s manufacturers, distributors, dispensers, Attn: DEA Federal Register physical security systems, verifying the importers, and exporters of controlled Representative/DPW, 8701 Morrissette company’s compliance with state and substances (other than final orders in Drive, Springfield, Virginia 22152. local laws, and reviewing the company’s connection with suspension, denial, or SUPPLEMENTARY INFORMATION: The background and history. revocation of registration) has been Attorney General has delegated his redelegated to the Assistant Therefore, pursuant to 21 U.S.C. authority under the Controlled Administrator of the DEA Diversion Substances Act to the Administrator of 823(a), and in accordance with 21 CFR Control Division (‘‘Assistant 1301.33, the DEA has granted a the Drug Enforcement Administration Administrator’’) pursuant to section 7 of (DEA), 28 CFR 0.100(b). Authority to registration as a bulk manufacturer to 28 CFR part 0, appendix to subpart R. the above listed company. exercise all necessary functions with In accordance with 21 CFR respect to the promulgation and Dated: April 27, 2019. 1301.34(a), this is notice that on implementation of 21 CFR part 1301, John J. Martin, December 24, 2018, S & B Pharma, Inc., incident to the registration of Assistant Administrator. dba: Norac Pharma, 405 South Motor manufacturers, distributors, dispensers, [FR Doc. 2019–10025 Filed 5–14–19; 8:45 am] Avenue, Azusa, California 91702–3232 importers, and exporters of controlled applied to be registered as an importer substances (other than final orders in BILLING CODE 4410–09–P of the following basic class of controlled connection with suspension, denial, or substances: revocation of registration) has been

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redelegated to the Assistant the registration of the registrants to public and affected agencies concerning Administrator of the DEA Diversion manufacture the applicable basic classes the proposed collection of information Control Division (‘‘Assistant of controlled substances is consistent are encouraged. Your comments should Administrator’’) pursuant to section 7 of with the public interest and with United address one or more of the following 28 CFR part 0, appendix to subpart R. States obligations under international four points: In accordance with 21 CFR treaties, conventions, or protocols in (1) Evaluate whether the proposed 1301.34(a), this is notice that on March effect on May 1, 1971. The DEA collection of information is necessary 05, 2019, AndersonBrecon, Inc., 4545 investigated each company’s for the proper performance of the Assembly Drive, Rockford, Illinois maintenance of effective controls functions of the agency, including 61109–3081 applied to be registered as against diversion by inspecting and whether the information will have an importer of the following basic class testing each company’s physical practical utility; of controlled substance: security systems, verifying each (2) Evaluate the accuracy of the company’s compliance with state and agency’s estimate of the burden of the Controlled substance Drug Schedule local laws, and reviewing each proposed collection of information, code company’s background and history. including the validity of the Therefore, pursuant to 21 U.S.C. methodology and assumptions used; Tetrahydrocannabinols ..... 7370 I 823(a), and in accordance with 21 CFR (3) Enhance the quality, utility, and The company plans to import the 1301.33, the DEA has granted a clarity of the information to be registration as a bulk manufacturer to listed controlled substances for clinical collected; and the above listed companies. (4) Minimize the burden of the trial only. Approval of permit collection of information on those who applications will occur only when the Dated: April 27, 2019. are to respond, including through the registrant’s business activity is John J. Martin, use of appropriate automated, consistent with what is authorized Assistant Administrator. electronic, mechanical, or other under 21 U.S.C. 952(a)(2). [FR Doc. 2019–10026 Filed 5–14–19; 8:45 am] technological collection techniques or Authorization will not extend to the BILLING CODE 4410–09–P import of FDA approved or non- other forms of information technology, approved finished dosage forms for e.g., permitting electronic submission of responses. commercial sale. DEPARTMENT OF JUSTICE Dated: April 27, 2019. [OMB Number 1122–0023] Overview of This Information John J. Martin, Collection Assistant Administrator. Agency Information Collection (1) Type of Information Collection: [FR Doc. 2019–10007 Filed 5–14–19; 8:45 am] Activities; Proposed eCollection Extension of a currently approved eComments Requested; Extension of a BILLING CODE 4410–09–P collection. Currently Approved Collection (2) Title of the Form/Collection: Semi- Annual Progress Report for Grantees AGENCY: Office on Violence Against from the Sexual Assault Services DEPARTMENT OF JUSTICE Women, Department of Justice. Program—Grants to Culturally Specific Drug Enforcement Administration ACTION: 30-Day notice. Programs (SASP-Culturally Specific [Docket No. DEA–392] SUMMARY: The Department of Justice, Program). Office on Violence Against Women (3) Agency form number, if any, and Bulk Manufacturer of Controlled (OVW) will be submitting the following the applicable component of the Substances Registration information collection request to the Department of Justice sponsoring the Office of Management and Budget collection: Form Number: 1122–0023. ACTION: Notice of registration. (OMB) for review and approval in U.S. Department of Justice, Office on Violence Against Women. SUMMARY: The registrants listed below accordance with the Paperwork Reduction Act of 1995. (4) Affected public who will be asked have applied for and been granted or required to respond, as well as a brief DATES: Comments are encouraged and registration by the Drug Enforcement abstract: The affected public includes will be accepted for 30 days until June Administration (DEA) as bulk the approximately 11 grantees of the 14, 2019. manufacturers of schedule I and II SASP Culturally Specific Program. This controlled substances. FOR FURTHER INFORMATION CONTACT: program supports projects that create, SUPPLEMENTARY INFORMATION: The Written comments and/or suggestion maintain and expand sustainable sexual companies listed below applied to be regarding the items contained in this assault services provided by culturally registered as bulk manufacturers of notice, especially the estimated public specific organizations, which are schedule I or schedule II controlled burden and associated response time, uniquely situated to respond to the substances. Information on previously should be directed to Cathy Poston, needs of sexual assault victims within published notices is listed in the table Office on Violence Against Women, at culturally specific populations. below. No comments or objections were 202–514–5430 or Catherine.poston@ (5) An estimate of the total number of submitted for these notices. usdoj.gov. Written comments and/or respondents and the amount of time suggestions can also be sent to the Company FR docket Published estimated for an average respondent to Office of Management and Budget, respond/reply: It is estimated that it will Johnson Matthey, Inc ...... 84 FR 5477 February 21, Office of Information and Regulatory 2019. take the approximately 11 respondents Stepan Company ...... 84 FR 5499 February 21, Affairs, Attention Department of Justice (SASP-Culturally Specific Program 2019. Desk Officer, Washington, DC 20530 or grantees) approximately one hour to Research Triangle Institute 84 FR 5501 February 21, sent to OIRA_submissions@ 2019. complete a semi-annual progress report. omb.eop.gov. The semi-annual progress report is The DEA has considered the factors in SUPPLEMENTARY INFORMATION: Written divided into sections that pertain to the 21 U.S.C. 823(a) and determined that comments and suggestions from the different types of activities in which

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grantees may engage. A SASP-Culturally DEPARTMENT OF LABOR subject matter of the investigations may Specific Program grantee will only be request a public hearing provided such required to complete the sections of the Employment and Training request is filed in writing with the form that pertain to its own specific Administration Administrator, Office of Trade Adjustment Assistance, at the address activities. Investigations Regarding Eligibility To (6) An estimate of the total public shown below, no later than May 28, Apply for Worker Adjustment 2019. burden (in hours) associated with the Assistance collection: The total annual hour burden Interested persons are invited to Petitions have been filed with the to complete the data collection forms is submit written comments regarding the Secretary of Labor under Section 221(a) 22 hours, that is 11 grantees completing subject matter of the investigations to of the Trade Act of 1974 (‘‘the Act’’) and a form twice a year with an estimated the Administrator, Office of Trade are identified in the Appendix to this Adjustment Assistance, at the address completion time for the form being one notice. Upon receipt of these petitions, hour. shown below, not later than May 28, the Administrator of the Office of Trade 2019. Dated: May 10, 2019. Adjustment Assistance, Employment The petitions filed in this case are Melody Braswell, and Training Administration, has instituted investigations pursuant to available for inspection at the Office of Department Clearance Officer, PRA, U.S. the Administrator, Office of Trade Department of Justice. Section 221(a) of the Act. The purpose of each of the Adjustment Assistance, Employment [FR Doc. 2019–10077 Filed 5–14–19; 8:45 am] investigations is to determine whether and Training Administration, U.S. BILLING CODE 4410–FX–P the workers are eligible to apply for Department of Labor, Room N–5428, adjustment assistance under Title II, 200 Constitution Avenue NW, Chapter 2, of the Act. The investigations Washington, DC 20210. will further relate, as appropriate, to the Signed at Washington, DC, this 12th day of determination of the date on which total April 2019. or partial separations began or Hope D. Kinglock, threatened to begin and the subdivision Certifying Officer, Office of Trade Adjustment of the firm involved. Assistance. The petitioners or any other persons showing a substantial interest in the Appendix

105 TAA PETITIONS INSTITUTED BETWEEN 3/1/19 AND 3/31/19

Subject firm Date of Date of TA–W (petitioners) Location institution petition

94572 ...... Bank of the West (State/One-Stop) ...... City of Industry, CA ...... 03/01/19 02/28/19 94573 ...... RCO Engineering (State/One-Stop) ...... Warren, MI ...... 03/01/19 02/28/19 94574 ...... Hanesbrands, Inc. (Workers) ...... New York, NY ...... 03/01/19 02/27/19 94575 ...... Nucor Skyline Steel, LLC (State/One-Stop) ...... Newton, IL ...... 03/01/19 03/01/19 94576 ...... Optum Technology (State/One-Stop) ...... Eden Prairie, MN ...... 03/01/19 02/28/19 94577 ...... Valmont Microflect Company (State/One-Stop) ...... Salem, OR ...... 03/01/19 02/28/19 94578 ...... ATT (Union) ...... Kalamazoo, MI ...... 03/04/19 03/01/19 94579 ...... Beckman Coulter, Inc. (State/One-Stop) ...... Brea, CA ...... 03/04/19 03/01/19 94580 ...... Faurecia (Workers) ...... Dexter, MO ...... 03/04/19 03/01/19 94581 ...... KEMET Blue Powder Corporation (Company) ...... Mound House, NV ...... 03/04/19 03/03/19 94582 ...... Liberty Mutual Group, Inc. (State/One-Stop) ...... Tigard, OR ...... 03/04/19 03/01/19 94583 ...... Molina Healthcare (State/One-Stop) ...... Long Beach, CA ...... 03/04/19 03/02/19 94584 ...... Wireless Seismic (Workers) ...... Sugar Land, TX ...... 03/04/19 01/26/19 94585 ...... A360 Firm Solutions, LLC (Company) ...... Jacksonville, FL ...... 03/05/19 03/01/19 94586 ...... EVRAZ Oregon Steel Mill (State/One-Stop) ...... Portland, OR ...... 03/05/19 03/04/19 94587 ...... Ford Flat Rock Assembly Plant (Union) ...... Flat Rock, MI ...... 03/05/19 03/04/19 94588 ...... Husqvarna Consumer Outdoor Products N.A., Inc. McRae, GA ...... 03/05/19 03/04/19 (Company). 94589 ...... Startek (State/One-Stop) ...... Lynchburg, VA ...... 03/05/19 03/04/19 94590 ...... Austin Foam Plastic, Inc. (Company) ...... El Paso, TX ...... 03/06/19 03/05/19 94591 ...... Dakkota Integrated Systems, LLC (Union) ...... Brownstown, MI ...... 03/06/19 03/05/19 94592 ...... Entergy Nuclear Operations, Inc. (Company) ...... Plymouth, MA ...... 03/06/19 03/05/19 94593 ...... General Motors (Customer Care and Aftercare) West Chester, OH ...... 03/06/19 03/05/19 (State/One-Stop). 94594 ...... New Holland Apparel-Tegra (Workers) ...... New Holland, PA ...... 03/06/19 03/05/19 94595 ...... The Travelers Indemnity Company (State/One-Stop) Elmira, NY ...... 03/06/19 03/05/19 94596 ...... GMI Holdings Inc. (State/One-Stop) ...... Baltic, OH ...... 03/07/19 03/06/19 94597 ...... FCA US LLC (Union) ...... Belvidere, IL ...... 03/07/19 03/06/19 94598 ...... Dart Industries Inc. (Tupperware Brands) (Workers) .. Orlando, FL ...... 03/07/19 03/06/19 94599 ...... Alliance Rubber Company (State/One-Stop) ...... Salinas, CA ...... 03/08/19 03/07/19 94600 ...... General Electric Company (State/One-Stop) ...... Erie, PA ...... 03/08/19 03/07/19 94601 ...... GTT (Workers) ...... Lemont Furnace, PA ...... 03/08/19 03/07/19 94602 ...... Parker Hannifin (State/One-Stop) ...... Lynchburg, VA ...... 03/08/19 03/07/19 94603 ...... Planar Systems, Inc. (State/One-Stop) ...... Hillsboro, OR ...... 03/08/19 03/07/19 94604 ...... Bear Island Paper WB LLC (State/One-Stop) ...... Ashland, VA ...... 03/11/19 03/08/19 94605 ...... Ingersoll Rand (Union) ...... Cheektowaga, NY ...... 03/11/19 03/08/19 94606 ...... PPG Coatings Services (State/One-Stop) ...... Livonia, MI ...... 03/11/19 03/08/19

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105 TAA PETITIONS INSTITUTED BETWEEN 3/1/19 AND 3/31/19—Continued

Subject firm Date of Date of TA–W (petitioners) Location institution petition

94607 ...... State Street Corporation (State/One-Stop) ...... Hadley, MA ...... 03/11/19 03/08/19 94608 ...... JW Aluminum Co. (State/One-Stop) ...... Russellville, AR ...... 03/12/19 03/11/19 94609 ...... QBE Americas, Inc. (Workers) ...... Sun Prairie, WI ...... 03/12/19 03/11/19 94610 ...... ATT (Union) ...... Indianapolis, IN ...... 03/13/19 03/12/19 94611 ...... Collard Rose (State/One-Stop) ...... Whittier, CA ...... 03/13/19 03/12/19 94612 ...... Frank Morrow Company (State/One-Stop) ...... Providence, RI ...... 03/13/19 03/12/19 94613 ...... Hawkins Architectural Products, LLC (State/One- Stafford, VA ...... 03/13/19 03/08/19 Stop). 94614 ...... Airespring (State/One-Stop) ...... Van Nuys, CA ...... 03/14/19 03/13/19 94615 ...... Allied Global LLC (Workers) ...... Johnstown, PA ...... 03/14/19 03/13/19 94616 ...... BiTech Bikes/Performance Bicycles (State/One-Stop) Vienna, VA ...... 03/14/19 03/13/19 94617 ...... Bose Corporation—Park Place facility (Company) ..... Framingham, MA ...... 03/14/19 02/28/19 94618 ...... Columbus Bakery (State/One-Stop) ...... Columbus, OH ...... 03/14/19 03/13/19 94619 ...... Connexions Loyalty (Workers) ...... Boise, ID ...... 03/14/19 03/11/19 94620 ...... Cotiviti USA, LLC (Workers) ...... Wilton, CT ...... 03/14/19 03/13/19 94621 ...... Lumina Datamatics Inc. (Company) ...... Plymouth, MA ...... 03/14/19 03/13/19 94622 ...... Micron Technology, Inc. (State/One-Stop) ...... Boise, ID ...... 03/14/19 03/13/19 94623 ...... Aptiv (State/One-Stop) ...... Warren, MI ...... 03/15/19 03/15/19 94624 ...... The Goodyear Tire & Rubber Company (State/One- Danville, VA ...... 03/15/19 03/13/19 Stop). 94625 ...... KGP Telecommunications, LLC (State/One-Stop) ...... Warsaw, IN ...... 03/15/19 03/14/19 94626 ...... Nordson Xaloy (State/One-Stop) ...... Pulaski, VA ...... 03/15/19 03/14/19 94627 ...... Toppan Merrill (State/One-Stop) ...... Saint Paul, MN ...... 03/15/19 03/12/19 94628 ...... UPS-Global Business Services (GBS) (State/One- Visalia, CA ...... 03/15/19 03/14/19 Stop). 94629 ...... Deluxe Entertainment Service Group (Distribution Burbank, CA ...... 03/18/19 03/15/19 Group) (State/One-Stop). 94630 ...... Emerald Performance Materials (Workers) ...... Akron, OH ...... 03/18/19 03/11/19 94631 ...... Formation Capital Corporation (State/One-Stop) ...... Salmon, ID ...... 03/18/19 03/15/19 94632 ...... GigaMedia Access Corporation (State/One-Stop) ...... Herndon, VA ...... 03/18/19 03/15/19 94633 ...... Masonite Corporation (Company) ...... Denmark, SC ...... 03/18/19 03/17/19 94634 ...... Mersen USA (State/One-Stop) ...... Newburyport, MA ...... 03/18/19 03/15/19 94635 ...... Porcelain Industries, Inc. (Company) ...... Dickson, TN ...... 03/18/19 03/15/19 94636 ...... Superwinch, LLC (State/One-Stop) ...... Tualatin, OR ...... 03/18/19 03/15/19 94637 ...... Survey.com (Bet Informations Systems Inc.) (State/ Portland, OR ...... 03/18/19 03/15/19 One-Stop). 94638 ...... The TJX Companies (State/One-Stop) ...... New Albany, OH ...... 03/18/19 03/15/19 94639 ...... Adair Printing Co., Inc. (State/One-Stop) ...... Standish, MI ...... 03/19/19 03/18/19 94640 ...... American Tire Distributors (Workers) ...... Wytheville, VA ...... 03/19/19 03/18/19 94641 ...... CDI Corporation (Workers) ...... Cross Lanes, WV ...... 03/19/19 03/18/19 94642 ...... Maxim Integrated Products Inc. (State/One-Stop) ...... Beaverton, OR ...... 03/19/19 03/18/19 94643 ...... Netflix (State/One-Stop) ...... Los Gatos, CA ...... 03/19/19 03/18/19 94644 ...... Georgia Pacific DBA: Baton Rouge Parish Plant Baton Rouge, LA ...... 03/20/19 03/19/19 (State/One-Stop). 94645 ...... Sensata Technologies, Inc. (State/One-Stop) ...... Thousand Oaks, CA ...... 03/20/19 03/19/19 94646 ...... Smith & Nephew (Company) ...... Austin, TX ...... 03/20/19 03/19/19 94647 ...... Stearns Lending, LLC (State/One-Stop) ...... Santa Ana, CA ...... 03/20/19 03/19/19 94648 ...... Faurecia Interior Systems (State/One-Stop) ...... Lansing, MI ...... 03/21/19 03/20/19 94649 ...... Gannett Satellite Information Network, LLC (State/ Louisville, KY ...... 03/21/19 03/20/19 One-Stop). 94650 ...... International Automotive Components (Union) ...... Greencastle, IN ...... 03/21/19 03/20/19 94651 ...... Kerry Inc. (State/One-Stop) ...... Kentwood, MI ...... 03/21/19 03/21/19 94652 ...... Natera (State/One-Stop) ...... Austin, TX ...... 03/21/19 03/20/19 94653 ...... Biomedica Diagnostics/Biomedica ADI Inc. (State/ Stamford, CT ...... 03/22/19 03/20/19 One-Stop). 94654 ...... Resolute FP US Inc. (Workers) ...... Catawba, SC ...... 03/22/19 03/13/19 94655 ...... Lowe’s Home Center (State/One-Stop) ...... Kirkland, WA ...... 03/25/19 03/22/19 94656 ...... Alliance (State/One-Stop) ...... Hot Springs, AR ...... 03/26/19 03/25/19 94657 ...... Hanesbrands, Inc. (State/One-Stop) ...... Clarksville, AR ...... 03/26/19 03/25/19 94658 ...... Reynolds Consumer Products (State/One-Stop) ...... Malvern, AR ...... 03/26/19 03/25/19 94659 ...... TTEC Healthcare Solutions (State/One-Stop) ...... Morrilton, AR ...... 03/26/19 03/25/19 94660 ...... Warne Scope Mounts (State/One-Stop) ...... Tualatin, OR ...... 03/26/19 03/25/19 94661 ...... Winchester Interconnect Corporation (Workers) ...... Middlebury, CT ...... 03/26/19 03/14/19 94662 ...... Aleris (State/One-Stop) ...... Lincolnshire, IL ...... 03/27/19 03/26/19 94663 ...... Assurant (State/One-Stop) ...... Woodbury, MN ...... 03/27/19 03/26/19 94664 ...... The Goodyear Tire & Rubber Company (Union) ...... Gadsden, AL ...... 03/27/19 03/26/19 94665 ...... San Juan Unified Schools (State/One-Stop) ...... Carmichael, CA ...... 03/27/19 03/26/19 94666 ...... TAHARI ASL, LLC (Workers) ...... New York, NY ...... 03/27/19 02/28/19 94667 ...... Welspun Tubular LLC (State/One-Stop) ...... Little Rock, AR ...... 03/27/19 03/26/19 94668 ...... ATT Mobility (Union) ...... Oklahoma City, OK ...... 03/28/19 03/27/19 94669 ...... Gannett Co, Inc. (State/One-Stop) ...... McLean, VA ...... 03/28/19 03/27/19

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105 TAA PETITIONS INSTITUTED BETWEEN 3/1/19 AND 3/31/19—Continued

Subject firm Date of Date of TA–W (petitioners) Location institution petition

94670 ...... Harsco Rail (Company) ...... Ludington, MI ...... 03/28/19 03/27/19 94671 ...... Lear Corporation (Company) ...... Morristown, TN ...... 03/28/19 03/27/19 94672 ...... Outsource Management Services (State/One-Stop) ... Costa Mesa, CA ...... 03/28/19 03/27/19 94673 ...... Liberty Mutual Insurance Company (Workers) ...... Allentown, PA ...... 03/29/19 03/28/19 94674 ...... LSC Communications US, LLC (State/One-Stop) ...... St. George, UT ...... 03/29/19 03/28/19 94675 ...... Wells Fargo Vendor Financial Services (Workers) ..... Macon, GA ...... 03/29/19 03/28/19 94676 ...... Wells Fargo Vendor Financial (Workers) ...... Macon, GA ...... 03/29/19 03/28/19

[FR Doc. 2019–09987 Filed 5–14–19; 8:45 am] Revised Certifications of Eligibility, may revise a certification, or modify or BILLING CODE 4510–FN–P summaries of Revised Determinations affirm a negative determination. (after Affirmative Determination Affirmative Determinations Regarding Regarding Application for Applications for Reconsideration DEPARTMENT OF LABOR Reconsideration), summaries of Negative Determinations (after The following Applications for Employment and Training Reconsideration have been received and Administration Affirmative Determination Regarding Application for Reconsideration), granted. See 29 CFR 90.18(d). The group of workers or other persons showing an Post-Initial Determinations Regarding summaries of Revised Determinations interest in the proceedings may provide Eligibility To Apply for Trade (on remand from the Court of written submissions to show why the Adjustment Assistance International Trade), and summaries of determination under reconsideration Negative Determinations (on remand In accordance with Sections 223 and should or should not be modified. The from the Court of International Trade) 284 (19 U.S.C. 2273 and 2395) of the submissions must be sent no later than Trade Act of 1974 (19 U.S.C. 2271, et regarding eligibility to apply for trade ten days after publication in Federal seq.) (‘‘Act’’), as amended, the adjustment assistance under Chapter 2 Register to the Office of the Director, Department of Labor herein presents of the Act (‘‘TAA’’) for workers by (TA– Office of Trade Adjustment Assistance, Notice of Affirmative Determinations W) number issued during the period of Employment and Training Regarding Application for March 1st 2019 through March 31st Administration, U.S. Department of Reconsideration, summaries of Negative 2019. Post-initial determinations are Labor, Room N–5428, 200 Constitution Determinations Regarding Applications issued after a petition has been certified Avenue NW, Washington, DC 20210. for Reconsideration, summaries of or denied. A post-initial determination See 29 CFR 90.18(f).

TA–W No. Subject firm Location

94,132 ...... REC Solar Grade Silicon LLC ...... Moses Lake, WA.

Summary of Statutory Requirement (2) The second criterion (set forth in (III) imports of articles directly (This Notice primarily follows the Section 222(a)(2) of the Act, 19 U.S.C. incorporating one or more component language of the Trade Act. In some 2272(a)(2)) may be satisfied by either (A) parts produced outside the United places however, changes such as the the Increased Imports Path, or (B) the States that are like or directly inclusion of subheadings, a Shift in Production or Services to a competitive with imports of articles reorganization of language, or ‘‘and,’’ Foreign Country Path/Acquisition of incorporating one or more component ‘‘or,’’ or other words are added for Articles or Services from a Foreign parts produced by such firm have clarification.) Country Path, as follows: increased; (A) Increased Imports Path: AND Section 222(a)—Workers of a Primary (i) The sales or production, or both, of (iii) the increase in imports described Firm such firm, have decreased absolutely; in clause (ii) contributed importantly to In order for an affirmative AND (ii and iii below) such workers’ separation or threat of determination to be made for workers of separation and to the decline in the a primary firm and a certification issued (ii) (I) imports of articles or services sales or production of such firm; OR regarding eligibility to apply for TAA, like or directly competitive with articles (B) Shift in Production or Services to the group eligibility requirements under produced or services supplied by such a Foreign Country Path OR Acquisition Section 222(a) of the Act (19 U.S.C. firm have increased; OR of Articles or Services from a Foreign 2272(a)) must be met, as follows: (II)(aa) imports of articles like or Country Path: (1) The first criterion (set forth in directly competitive with articles into (i)(I) There has been a shift by such Section 222(a)(1) of the Act, 19 U.S.C. which one or more component parts workers’ firm to a foreign country in the 2272(a)(1)) is that a significant number produced by such firm are directly production of articles or the supply of or proportion of the workers in such incorporated, have increased; OR services like or directly competitive workers’ firm (or ‘‘such firm’’) have (II)(bb) imports of articles like or with articles which are produced or become totally or partially separated, or directly competitive with articles which services which are supplied by such are threatened to become totally or are produced directly using the services firm; OR partially separated; supplied by such firm, have increased; (II) such workers’ firm has acquired AND (2(A) or 2(B) below) OR from a foreign country articles or

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services that are like or directly (A) the workers’ firm is a supplier and the Tariff Act of 1930 (19 U.S.C. competitive with articles which are the component parts it supplied to the 1671d(b)(1)(A) and 1673d(b)(1)(A)); produced or services which are firm described in paragraph (2) AND supplied by such firm; accounted for at least 20 percent of the (2) the petition is filed during the AND production or sales of the workers’ firm; 1-year period beginning on the date on OR (ii) the shift described in clause (i)(I) which— or the acquisition of articles or services (B) a loss of business by the workers’ (A) a summary of the report submitted described in clause (i)(II) contributed firm with the firm described in to the President by the International importantly to such workers’ separation paragraph (2) contributed importantly to Trade Commission under section or threat of separation. the workers’ separation or threat of 202(f)(1) of the Trade Act (19 U.S.C. separation determined under paragraph 2252(f)(1)) with respect to the Section 222(b)—Adversely Affected (1). affirmative determination described in Secondary Workers Section 222(e)—Firms Identified by the paragraph (1)(A) is published in the In order for an affirmative International Trade Commission Federal Register under section 202(f)(3) determination to be made for adversely (19 U.S.C. 2252(f)(3)); OR affected secondary workers of a firm and In order for an affirmative (B) notice of an affirmative a certification issued regarding determination to be made for adversely determination described in eligibility to apply for TAA, the group affected workers in firms identified by subparagraph (B) or (C) of paragraph (1) eligibility requirements of Section the International Trade Commission and is published in the Federal Register; 222(b) of the Act (19 U.S.C. 2272(b)) a certification issued regarding AND must be met, as follows: eligibility to apply for TAA, the group (1) A significant number or proportion eligibility requirements of Section (3) the workers have become totally or of the workers in the workers’ firm or 222(e) of the Act (19 U.S.C. 2272(e)) partially separated from the workers’ an appropriate subdivision of the firm must be met, by following criteria (1), firm within— have become totally or partially (2), and (3) as follows: (A) the 1-year period described in paragraph (2); OR separated, or are threatened to become (1) The workers’ firm is publicly (B) notwithstanding section 223(b) of totally or partially separated; identified by name by the International the Act (19 U.S.C. 2273(b)), the 1-year AND Trade Commission as a member of a period preceding the 1-year period domestic industry in an investigation (2) the workers’ firm is a supplier or described in paragraph (2). downstream producer to a firm that resulting in— employed a group of workers who (A) an affirmative determination of Revised Certifications of Eligibility received a certification of eligibility serious injury or threat thereof under The following revised certifications of under Section 222(a) of the Act (19 section 202(b)(1) of the Act (19 U.S.C. eligibility to apply for TAA have been U.S.C. 2272(a)), and such supply or 2252(b)(1)); OR issued. The date following the company production is related to the article or (B) an affirmative determination of name and location of each service that was the basis for such market disruption or threat thereof determination references the impact certification (as defined in subsection under section 421(b)(1) of the Act (19 date for all workers of such 222(c)(3) and (4) of the Act (19 U.S.C. U.S.C. 2436(b)(1)); OR determination, and the reason(s) for the 2272(c)(3) and (4)); (C) an affirmative final determination determination. AND of material injury or threat thereof under The following revisions have been (3) either— section 705(b)(1)(A) or 735(b)(1)(A) of issued.

TA–W Impact No. Subject firm Location date Reason(s)

93,917 ...... General Electric Company ...... Erie, PA ...... 6/24/2018 Ownership Change of a Successor Firm. 93,917A ...... Association of Corporate Counsel America Erie, PA ...... 6/22/2017 Ownership Change of a Successor Firm. Chicago Chapter, Capgemini, etc.

I hereby certify that the Signed at Washington, DC, this 12th day of DEPARTMENT OF LABOR aforementioned determinations were April 2019. issued during the period of March 1st Hope D. Kinglock, Employment and Training 2019 through March 31st 2019. These Certifying Officer, Office of Trade Adjustment Administration determinations are available on the Assistance. Notice of Determinations Regarding Department’s website https:// [FR Doc. 2019–09986 Filed 5–14–19; 8:45 am] Eligibility To Apply for Trade www.doleta.gov/tradeact/petitioners/ BILLING CODE 4510–FN–P taa_search_form.cfm under the Adjustment Assistance searchable listing determinations or by In accordance with the Section 223 calling the Office of Trade Adjustment (19 U.S.C. 2273) of the Trade Act of Assistance toll free at 888–365–6822. 1974 (19 U.S.C. 2271, et seq.) (‘‘Act’’), as amended, the Department of Labor herein presents summaries of determinations regarding eligibility to apply for trade adjustment assistance under Chapter 2 of the Act (‘‘TAA’’) for workers by (TA–W) number issued

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during the period of March 1, 2019 (B) Shift in Production or Services to Section 222(e)—Firms Identified by the through March 31, 2019. (This Notice a Foreign Country Path OR Acquisition International Trade Commission primarily follows the language of the of Articles or Services from a Foreign In order for an affirmative Trade Act. In some places however, Country Path: determination to be made for adversely changes such as the inclusion of (i) (I) There has been a shift by such affected workers in firms identified by subheadings, a reorganization of workers’ firm to a foreign country in the the International Trade Commission and language, or ‘‘and,’’ ‘‘or,’’ or other words production of articles or the supply of a certification issued regarding are added for clarification.) services like or directly competitive eligibility to apply for TAA, the group Section 222(a)—Workers of a Primary with articles which are produced or eligibility requirements of Section Firm services which are supplied by such 222(e) of the Act (19 U.S.C. 2272(e)) firm; OR must be met, by following criteria (1), In order for an affirmative (II) such workers’ firm has acquired (2), and (3) as follows: determination to be made for workers of from a foreign country articles or (1) The workers’ firm is publicly a primary firm and a certification issued services that are like or directly identified by name by the International regarding eligibility to apply for TAA, competitive with articles which are Trade Commission as a member of a the group eligibility requirements under produced or services which are domestic industry in an investigation Section 222(a) of the Act (19 U.S.C. supplied by such firm; resulting in— 2272(a)) must be met, as follows: AND (A) an affirmative determination of (1) The first criterion (set forth in serious injury or threat thereof under Section 222(a)(1) of the Act, 19 U.S.C. (ii) the shift described in clause (i)(I) section 202(b)(1) of the Act (19 U.S.C. 2272(a)(1)) is that a significant number or the acquisition of articles or services 2252(b)(1)); OR or proportion of the workers in such described in clause (i)(II) contributed (B) an affirmative determination of workers’ firm (or ‘‘such firm’’) have importantly to such workers’ separation market disruption or threat thereof become totally or partially separated, or or threat of separation. under section 421(b)(1) of the Act (19 are threatened to become totally or Section 222(b)—Adversely Affected U.S.C. 2436(b)(1)); OR partially separated; Secondary Workers (C) an affirmative final determination AND (2(A) or 2(B) below) of material injury or threat thereof under In order for an affirmative section 705(b)(1)(A) or 735(b)(1)(A) of (2) The second criterion (set forth in determination to be made for adversely Section 222(a)(2) of the Act, 19 U.S.C. the Tariff Act of 1930 (19 U.S.C. affected secondary workers of a firm and 1671d(b)(1)(A) and 1673d(b)(1)(A)); 2272(a)(2)) may be satisfied by either (A) a certification issued regarding AND the Increased Imports Path, or (B) the eligibility to apply for TAA, the group Shift in Production or Services to a eligibility requirements of Section (2) the petition is filed during the Foreign Country Path/Acquisition of 222(b) of the Act (19 U.S.C. 2272(b)) 1-year period beginning on the date on Articles or Services from a Foreign must be met, as follows: which— Country Path, as follows: (A) a summary of the report submitted (1) A significant number or proportion (A) Increased Imports Path: to the President by the International of the workers in the workers’ firm or (i) The sales or production, or both, of Trade Commission under section an appropriate subdivision of the firm such firm, have decreased absolutely; 202(f)(1) of the Trade Act (19 U.S.C. have become totally or partially 2252(f)(1)) with respect to the AND (ii and iii below) separated, or are threatened to become affirmative determination described in (ii) (I) imports of articles or services totally or partially separated; paragraph (1)(A) is published in the like or directly competitive with articles AND Federal Register under section 202(f)(3) produced or services supplied by such (19 U.S.C. 2252(f)(3)); OR firm have increased; OR (2) the workers’ firm is a supplier or (B) notice of an affirmative (II) (aa) imports of articles like or downstream producer to a firm that determination described in directly competitive with articles into employed a group of workers who subparagraph (B) or (C)of paragraph (1) which one or more component parts received a certification of eligibility is published in the Federal Register; produced by such firm are directly under Section 222(a) of the Act (19 incorporated, have increased; OR U.S.C. 2272(a)), and such supply or AND (II) (bb) imports of articles like or production is related to the article or (3) the workers have become totally or directly competitive with articles which service that was the basis for such partially separated from the workers’ are produced directly using the services certification (as defined in subsection firm within— supplied by such firm, have increased; 222(c)(3) and (4) of the Act (19 U.S.C. (A) the 1-year period described in OR 2272(c)(3) and (4)); paragraph (2); OR (III) imports of articles directly AND (B) notwithstanding section 223(b) of the Act (19 U.S.C. 2273(b)), the 1-year incorporating one or more component (3) either— parts produced outside the United period preceding the 1-year period (A) the workers’ firm is a supplier and described in paragraph (2). States that are like or directly the component parts it supplied to the competitive with imports of articles firm described in paragraph (2) Affirmative Determinations for Trade incorporating one or more component accounted for at least 20 percent of the Adjustment Assistance parts produced by such firm have production or sales of the workers’ firm; The following certifications have been increased; OR issued. The date following the company AND (B) a loss of business by the workers’ name and location of each (iii) the increase in imports described firm with the firm described in determination references the impact in clause (ii) contributed importantly to paragraph (2) contributed importantly to date for all workers of such such workers’ separation or threat of the workers’ separation or threat of determination. separation and to the decline in the separation determined under paragraph The following certifications have been sales or production of such firm; OR (1). issued. The requirements of Section

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222(a)(2)(A) (Increased Imports Path) of the Trade Act have been met.

TA–W No. Subject firm Location Impact date

94,427 ...... General Motors Lordstown Complex, General Motors Company, De- Warren, OH ...... March 8, 2019. velopment Dimensions International.

The following certifications have been Services to a Foreign Country Path or a Foreign Country Path) of the Trade Act issued. The requirements of Section Acquisition of Articles or Services from have been met. 222(a)(2)(B) (Shift in Production or

TA–W No. Subject firm Location Impact date

94,281 ...... Caterpillar Inc., Mining Hauling and Underground Division, Montgomery, IL ...... October 26, 2017. Aerotek, DVA Consulting. 94,453 ...... GY Agemni, LLC, DNN Corp, ESW Capital, AdvanStaff, Inc ...... Salt Lake City, UT ...... January 11, 2018. 94,471 ...... Lexmark International, Inc., Finance, Managed Print Services Lexington, KY ...... January 21, 2018. (MPS) Business Operations, etc. 94,473 ...... Sugarfina, Inc., Express Employment Professionals, Aerotek, First El Segundo, CA ...... January 18, 2018. Rate Staffing. 94,476 ...... AXA Equitable Life Insurance Company, AXA Financial, Inc., Syracuse, NY ...... January 22, 2018. Group Retirement Operations Department, Kelly Services. 94,479 ...... Renwood Acquisitions, LLC, Heckethorn Manufacturing, Metro In- Dyersburg, TN ...... January 22, 2018. dustrial Services, Personnel Placements. 94,482 ...... Xerox Corporation, North American Finance, Global Procurement Webster, NY ...... January 23, 2018. Departments. 94,483 ...... Xerox Corporation, Information Management, Tata Consultancy Webster, NY ...... January 23, 2018. Services. 94,509 ...... Bureau of National Affairs, Inc., Bloomberg BNA Holdings, Inc ...... Arlington, VA ...... February 4, 2018. 94,513 ...... R1 RCM ...... Austin, TX ...... February 5, 2018. 94,515 ...... Windstream Services, LLC, Little Rock Division, IT and Accounts Little Rock, AR ...... February 5, 2018. Payable Divisions. 94,530 ...... Jabil Circuit, Inc., Nypro Division, Fountain Group LLC, Adecco ..... Rochester, NY ...... April 14, 2019. 94,534 ...... Elavon, Inc., U.S. Bank, National Association, Department of Ac- Knoxville, TN ...... February 11, 2018. count Reconciliations. 94,538...... ABC–I Corporation ...... Dexter, NY ...... February 13, 2018. 94,538A ...... ABC–I Corporation ...... Jacksonville, FL ...... February 13, 2018. 94,541 ...... A.L.P. Lighting Components, Inc., Olive Branch, A.L.P. Lighting Olive Branch, MS ...... February 12, 2018. Components, Select Staffing, Millennium Search. 94,550 ...... CA Technologies, Broadcom Inc ...... Santa Clara, CA ...... February 19, 2018. 94,552 ...... RBIII Associates, Inc. dba Teamwork Athletic Apparel, Badger San Marcos, CA ...... February 19, 2018. Sportswear, Inc. 94,554 ...... Jagger Brothers ...... Springvale, ME ...... February 20, 2018. 94,572 ...... Bank of the West, Banc West Holding, I.T. Application Support City of Industry, CA ...... February 28, 2018. Group, Allegis Global Solutions. 94,574 ...... Hanesbrands, Inc., NYC Design ...... New York, NY ...... February 27, 2018. 94,579 ...... Beckman Coulter, Inc., Danaher, Manufacturing for Statspin, Brea, CA ...... March 1, 2018. Immage and Microscan, Kelly Services. 94,581 ...... KEMET Blue Powder Corporation, KEMET Corporation, Mound House, NV ...... March 3, 2018. ResourceMFG/ProLogistix, Aerotek. 94,585 ...... A360 Firm Solutions, LLC, A360Inc, Outsourcing Division ...... Jacksonville, FL ...... March 1, 2018. 94,585A ...... A360 Firm Solutions, LLC, A360Inc, Outsourcing Division ...... Mount Laurel, NJ ...... March 1, 2018. 94,590 ...... Austin Foam Plastic, Inc., Lifestyle Staffing ...... El Paso, TX ...... March 5, 2018. 94,595 ...... The Travelers Indemnity Company, Small Commercial Operations Elmira, NY ...... March 5, 2018. Group. 94,596 ...... GMI Holdings Inc., Overhead Door Corp., Mancan, Randstad, Flex Baltic, OH ...... March 6, 2018. Team.

The following certifications have been are certified eligible to apply for TAA) issued. The requirements of Section of the Trade Act have been met. 222(b) (supplier to a firm whose workers

TA–W No. Subject firm Location Impact date

94,504 ...... Populus Group, Caterpillar Corporate Account Group ...... Troy, MI ...... January 31, 2018. 94,525 ...... REO Distribution Services, Inc., Allied Realty Company, Adams & Waynesboro, VA ...... February 7, 2018. Garth.

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Negative Determinations for Worker The investigation revealed that the firm whose workers are certified eligible Adjustment Assistance criteria under paragraphs (a)(2)(A)(i) to apply for TAA or downstream (decline in sales or production, or both), producer to a firm whose workers are In the following cases, the or (a)(2)(B) (shift in production or certified eligible to apply for TAA), and investigation revealed that the eligibility services to a foreign country or (e) (International Trade Commission) of criteria for TAA have not been met for acquisition of articles or services from a section 222 have not been met. the reasons specified. foreign country), (b)(2) (supplier to a

TA–W No. Subject firm Location Impact date

94,276 ...... Faneuil, Inc., ALJ Regional Holdings, Inc., Resource Man- Vienna, VA. agement Inc. 94,478 ...... Keystone Tailored Manufacturing LLC ...... Brooklyn, OH.

The investigation revealed that the services from a foreign country), (b)(2) for TAA), and (e) (International Trade criteria under paragraphs(a)(2)(A) (supplier to a firm whose workers are Commission) of section 222 have not (increased imports), (a)(2)(B) (shift in certified eligible to apply for TAA or been met. production or services to a foreign downstream producer to a firm whose country or acquisition of articles or workers are certified eligible to apply

TA–W No. Subject firm Location Impact date

94,201 ...... Culp Woven Velvet, Culp Upholstery Fabric Division, Culp Anderson, SC. Inc., Manpower. 94,251 ...... Ernest Industries, Advance Staffing ...... Westland, MI. 94,409 ...... Verizon Data Services, LLC, Member Technical Staff (MTS) Temple Terrace, FL.

Determinations Terminating on the Department’s website, as The following determinations Investigations of Petitions for Trade required by Section 221 of the Act (19 terminating investigations were issued Adjustment Assistance U.S.C. 2271), the Department initiated because the worker group on whose After notice of the petitions was investigations of these petitions. behalf the petition was filed is covered published in the Federal Register and under an existing certification.

TA–W No. Subject firm Location Impact date

94,600 ...... General Electric Company, GE Transportation Parts, Trans- Erie, PA. portation Division, etc.

The following determinations negative determination applicable to the is evident which would result in a terminating investigations were issued petitioning group of workers. No new reversal of the Department’s previous because the Department issued a information or change in circumstances determination.

TA–W No. Subject firm Location Impact date

93,972 ...... Toys R Us—Delaware, Inc., Toys R Us, Inc ...... Newport News, VA. 93,972A ...... Toys R Us—Delaware, Inc., Toys R Us, Inc ...... Fredericksburg, VA. 93,972B ...... Toys R Us—Delaware, Inc., Toys R Us, Inc ...... Chesapeake, VA. 93,972C ...... Toys R Us—Delaware, Inc., Toys R Us, Inc., 400 N. Military Norfolk, VA. Highway. 93,972D ...... Toys R Us—Delaware, Inc., Toys R Us, Inc., 1600 Premium Norfolk, VA. Outlets Boulevard. 93,972E ...... Toys R Us—Delaware, Inc., Toys R Us, Inc ...... Virginia Beach, VA. 93,972F ...... Babies R Us, Toys R Us—Delaware, Inc., Toys R Us, Inc ..... Newport News, VA. 93,972G ...... Babies R Us, Toys R Us—Delaware, Inc., Toys R Us, Inc ..... Chesapeake, VA.

I hereby certify that the www.doleta.gov/tradeact/petitioners/ Signed at Washington, DC, this 11th day of aforementioned determinations were taa_search_form.cfm under the April 2019. issued during the period of March 1, searchable listing determinations or by Hope D. Kinglock, 2019 through March 31, 2019. These calling the Office of Trade Adjustment Certifying Officer, Office of Trade Adjustment determinations are available on the Assistance toll free at 888–365–6822. Assistance. Department’s website https:// [FR Doc. 2019–09985 Filed 5–14–19; 8:45 am] BILLING CODE 4510–FN–P

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DEPARTMENT OF LABOR (1) A buoyancy compensator to have have been made to buoyancy a inflation source separate from the compensatory devices (BCD) since Occupational Safety and Health breathing gas supply when used for OSHA first published the CDO standard Administration SCUBA diving (29 CFR 1910.430(d)(3)); in 1977 (see 42 FR 37662 (July 22, [Docket No. OSHA–2015–0024] (2) use of an inflatable flotation device 1977)), the NOAA Alternate Diving capable of maintaining the diver at the Standards permit NOAA to use modern Jardon and Howard Technologies, surface in a face-up position, having a BCD during diving operations that Incorporated; Grant of a Permanent manually activated inflation source deviate from the configuration Variance independent of the breathing supply, an requirements in OSHA’s CDO standard, oral inflation device, and an exhaust but provide equal or greater safeguards AGENCY: Occupational Safety and Health valve (29 CFR 1910.430(d)(4)); to the diver. The NOAA Alternate Administration (OSHA), Labor. (3) the employer to instruct the diver Diving Standards also provide NOAA ACTION: Notice. to remain awake and in the vicinity of with modified requirements regarding the decompression chamber which is at SUMMARY: In this notice, OSHA grants a the use of decompression chambers, the dive location for at least one hour permanent variance to Jardon and including expanding the depth limit for after the dive (including decompression Howard Technologies, Incorporated SCUBA dives within the no- or treatment as appropriate) for any dive 3 from several provisions of OSHA decompression limits (from 100 to 130 outside the no-decompression limits, standards that regulate commercial FSW), and modifying decompression diving operations in Subpart T of deeper than 100 feet of sea water (FSW), chamber availability requirements for OSHA’s general industry standards. or using mixed gas as a breathing certain no-decompression dives up to mixture (29 CFR 1910.423(b)(2)); DATES: The permanent variance 130 FSW in depth. (4) the employer to make available at JHT stated in the application that specified by this notice becomes the dive location a decompression effective on May 15, 2019 and shall divers who conduct diving operations chamber capable of recompressing the for NOAA typically dive from NOAA- remain in effect until it is modified or diver at the surface to a minimum of 165 revoked. operated ‘‘uninspected vessels’’ in U.S. FSW (6 ATA) (29 CFR 1910.423(c)(1)); 1 navigable waters; such diving FOR FURTHER INFORMATION CONTACT: (5) the employer to make available operations fall under OSHA’s Information regarding this notice is within 5 minutes of the dive location a jurisdiction.4 When conducting dives available from the following sources: dual-lock, multiplace decompression Press inquiries: Contact Mr. Frank for NOAA, JHT divers are obliged to chamber (29 CFR 1910.423(c)(3)); and follow all of the requirements of the Meilinger, Director, OSHA Office of (6) that self-contained underwater Communications, U.S. Department of NOAA Diving Program (NDP). JHT breathing apparatus (SCUBA) diving not requested the permanent variance to Labor; telephone: (202) 693–1999 or be conducted at depths deeper than 100 email: [email protected]. permit JHT to deviate from the below- FSW or outside the no-decompression discussed provisions of OSHA’s CDO General and technical information: limits unless a decompression chamber Contact Mr. Kevin Robinson, Director, standard based on the same conditions is ready for use (29 CFR 1910.424(b)(2)). that apply to NOAA divers under the Office of Technical Programs and JHT is a contractor for the U.S. NOAA Alternate Diving Standards, thus Coordination Activities, Directorate of Department of Commerce, National permitting JHT’s divers to dive under Technical Support and Emergency Oceanic and Atmospheric the same standards under which their Management, Occupational Safety and Administration (NOAA), a federal NOAA-employed colleagues are Health Administration, U.S. Department government agency that conducts and permitted to dive. of Labor; telephone: (202) 693–2110 or promotes undersea research using a JHT’s application contends that the email: [email protected]. variety of modes, including diving permanent variance would provide SUPPLEMENTARY INFORMATION: Copies of operations. On September 5, 2014, employees with a place of employment this Federal Register notice. Electronic OSHA granted NOAA alternate that is at least as safe and healthful as copies of this Federal Register notice standards 2 regulating its use of they are able to obtain under the are available at http:// inflatable flotation devices and www.regulations.gov. This Federal existing provisions of OSHA’s CDO decompression chambers during NOAA standard. JHT certifies that all affected Register notice, as well as news releases diving operations (Exhibit OSHA–2015– and other relevant information, also are employees received a copy of the 0024–0003, OSHA’s Comments and variance application and informed them available at OSHA’s web page at http:// Decisions to NOAA’s Request for an www.osha.gov. of their right to petition the Assistant Alternate Standard on Diving) (‘‘NOAA Secretary of Labor for Occupational I. Notice of Application Alternate Diving Standards’’) (see Safety and Health for a hearing on its Section II.A. for further information on variance application. Jardon and Howard Technologies, NOAA’s Alternate Diving Standards). Incorporated, (‘‘JHT’’ or ‘‘applicant’’), To account for the technological 3 submitted on September 25, 2015, an advances and design improvements that The definitions provided in Subpart T, 29 CFR application for a permanent multi-state 1910.402, define ‘‘no-decompression limits’’ as ‘‘the depth-time limits of the ‘no-decompression limits variance and interim order under 1 The full text of 29 CFR 1910.423(c)(1)(i)–(iii) and repetitive dive group designation table for no- Section 6(d) of the Occupational Safety reads: ‘‘A decompression chamber capable of decompression air dives’, U.S. Navy Diving Manual, and Health Act of 1970 (‘‘OSH Act’’; 29 recompressing the diver at the surface to a or equivalent limits which the employer can U.S.C. 655) and 29 CFR 1905.11 minimum of 165 FSW (6 ATA) shall be available demonstrate to be equally effective.’’ at the dive location for: (i) Surface-supplied air 4 For more information on OSHA’s enforcement (‘‘Variances and other relief under diving to depths deeper than 100 FSW and authority over uninspected vessels on U.S. section 6(d)’’). JHT’s application seeks a shallower than 220 FSW; (ii) Mixed gas diving navigable waters, see OSHA Directive Number: permanent variance from the provisions shallower than 300 FSW; (iii) Diving outside the no- CPL–02–01–047, ‘‘OSHA Authority over Vessels in OSHA’s standards that regulate decompression limits shallower than 300 FSW.’’ and Facilities on or Adjacent to U.S. Navigable 2 An alternate standard is the federal agency Waters and the Outer Continental Shelf (OCS)’’ commercial diving operations (CDO), equivalent to a variance, and federal agency heads [Dated: 02/22/2010], available at: https:// located in Subpart T of 29 CFR 1910, may seek and obtain alternate standards from www.osha.gov/pls/oshaweb/owandisp.show_ that require: OSHA pursuant to 29 CFR 1960.17. document?p_table=DIRECTIVES&p_id=4254.

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OSHA considered JHT’s application under OSHA’s CDO standard. diving equipment and procedures that for a permanent variance and interim Accordingly, when JHT conducts dives are now widely recognized and order and, on August 2, 2017, OSHA for NOAA under the NDP that would be accepted as industry best practices. published a preliminary Federal subject to OSHA’s CDO standard, JHT NOAA publishes many of these Register notice announcing JHT’s seeks permission from OSHA to dive advances in the ‘‘NOAA Diving Manual: application, granting an interim order, under the same standards regulating the Diving for Science and Technology,’’ and requesting comments (82 FR 35995 use of inflatable flotation devices and which serves as a reference manual for (Aug. 2, 2017)). During the comment decompression chambers that OSHA all NDP divers. NOAA also maintains period, which expired on September 2, has permitted NOAA-employed NDP two additional manuals (the ‘‘NOAA 2017, OSHA received one comment divers to follow, pursuant to the NOAA Scientific Diving Standards and Safety from NOAA, who expressed support for Alternate Diving Standards. Manual’’ (Revised December 2011) and granting JHT the permanent variance, OSHA granted NOAA the alternate the ‘‘NOAA Working Diving Standards made clarifications and corrections to standards in 2014 in response to an and Safety Manual’’ (Version 1.0, July the information in its application application that NOAA submitted to 14, 2011) that provide in-depth materials and OSHA’s Federal Register OSHA in June 2011 proposing a total of operational guidance for all dives and notice, and suggested several changes to 12 alternate standards to 29 CFR 1910, include the standards, policies, the terms of the permanent variance Subpart T, which included extensive regulations, requirements, and (OSHA–2015–0025–0010). NOAA’s introductory, background, and responsibilities for all aspects of comment also requested that the explanatory information in support of NOAA’s diving operations. permanent variance be extended to the application (Exhibit OSHA–2015– Additionally, NOAA stated that cover all companies who provide 0024–0006, Proposed Alternate Diving OSHA’s CDO standard, which was first contract employees to dive under the Standards for the National Oceanic and published in 1977, does not account for NDP. After considering NOAA’s Atmospheric Administration). After many of the advancements that have comment, OSHA has decided to accept fully considering NOAA’s application been made in diving technology and the majority of NOAA’s requested and responses to OSHA’s follow up safety. For that reason, NOAA sought changes to the terms of the permanent questions (Exhibit OSHA–2015–0024– alternate standards that would permit variance, but has not accepted NOAA’s 0007, Responses from the NOAA Diving the NDP to conduct diving operations request to extend this permanent Program to OSHA Regarding Requested using equipment and procedures that variance to cover contractors other than Alternate Standards for Commercial reflect modern diving advancements. JHT. OSHA’s responses to NOAA’s Diving Operations), OSHA decided to NOAA also stated that OSHA’s comment are discussed further in grant some, but not all, of the alternate regulations are not always consistent Section III of this notice. standards that NOAA proposed (Exhibit with other related federal diving OSHA–2015–0024–0008). JHT’s regulations, such as 46 CFR 197, II. Supplementary Information September 25, 2015 application sought Subpart B, which provides safety and Regarding the Variance Application a permanent variance and interim order health standards for commercial diving A. Background based on six of the alternate standards operations conducted from vessels with that OSHA granted to NOAA in the a U.S. Coast Guard Certificate of As a NOAA contractor, JHT asserts NOAA Alternate Diving Standards. Inspection (COI), also known as that its divers are required to strictly NOAA explained in its application ‘‘inspected vessels,’’ and facilities under follow the requirements of the NDP. materials for the alternate standards that the jurisdiction of the U.S. Coast Guard. But, even though NOAA-employed and it conducts dives under two major JHT-employed divers work side-by-side programs: The NOAA Diving Program B. Variance From Paragraphs (d)(3) and during NDP operations, NOAA- (NDP) and the National Undersea (d)(4) of 29 CFR 1910.430, Requirements employed divers are authorized to dive Research Program (NURP). The NDP for Inflatable Flotation Devices in accordance with the NOAA Alternate primarily supports intra agency Following the terms of the NOAA Diving Standards, while contractor intramural research programs conducted Alternate Diving Standards, JHT’s divers (such as those employed by JHT) by personnel within NOAA’s major line variance application seeks permission to are not. JHT states that its divers offices, while NURP primarily supports use modern buoyancy compensator undergo exactly the same training as external research programs conducted devices (BCD) that deviate from the NOAA employees who are also covered by scientists from various academic and requirements in 1910.430(d)(3) and by the NDP, and that there are no marine institutions. The NDP is (d)(4) that such devices have an differences between NOAA and JHT responsible for overseeing all NOAA inflation source that is ‘‘separate from’’ divers regarding medical clearance and contractor (including JHT) diving or ‘‘independent of’’ the diver’s procedures and standards, training personnel, equipment, and activities, breathing gas. NOAA’s application for materials, equipment used, equipment and ensuring that dives performed by the alternate standards explained that maintenance, and diving procedures NOAA and its contractor divers are the overwhelming majority of used (Ex. OSHA–2015–0024–0003, p. 1). completed safely and efficiently. The commercial-off-the-shelf (COTS) BCD JHT states that while the majority of the NDP, the NOAA Diving Control and are designed to use the diver’s breathing dives that JHT performs under the NDP Safety Board, and the NOAA Diving gas for inflation, making it difficult to are ‘‘scientific dives’’ that are exempted Medical Review Board all work together comply with OSHA’s requirement for a from OSHA’s CDO standard,5 JHT to ensure that qualified personnel and BCD to have an independent inflation divers also assist NOAA employees with certified systems are available to safely source. According to NOAA, older diving operations that are not exempt meet NOAA’s undersea research systems that utilize separate, non- objectives. NOAA’s application also breathing gas inflation sources— 5 Section 1910.401(a)(2)(iv) of the CDO standard explained that it provides a robust particularly, carbon-dioxide cartridges— provides the exemption for scientific diving from training program to NDP divers, pose potential safety problems for the the CDO standard’s coverage, and Appendix B to the CDO standard provides guidelines for including contractor divers. diver, including potential cartridge identifying the scientific diving programs that are NOAA’s application further stated failure, and accidental activation, exempt. that it has developed many advances in leading to an unexpected and

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potentially dangerous over-inflation of supply. As OSHA stated in the preamble been widely replaced by jacket-style the BCD, which could cause a rapid and to the CDO standard final rule (42 FR at BCD (also known as stabilizing, or stab- uncontrolled ascent of the diver to the 37633), ‘‘[a reserve] supply is essential jackets) or back-mounted systems, both surface. NOAA’s application stated that to the safety of the SCUBA diver,’’ and of which have greater operational and industry recognition of these inherent employers must take precautions to safety features compared to the older safety problems prompted ‘‘assure that the air reserve would not be style. NOAA explained that newer BCD manufacturers to discontinue depleted inadvertently during the dive.’’ have more lift, fewer straps (reducing production of systems relying on such OSHA ultimately concluded that entanglement hazards, particularly inflation sources. NOAA also explained NOAA’s proposed alternate standards when removing the BCD in an that using a diver’s emergency air provide equivalent safety protection to emergency, or when used in supply to inflate the BCD is potentially divers as 1910.430(d)(3) so long as the conjunction with a weight harness), problematic, as connecting the BCD to diver carries a reserve breathing gas require fewer steps to don, would not an auxiliary cylinder would impede a supply, does not connect the reserve choke divers when fully inflated on the diver who is ‘‘ditching’’ components of breathing gas to the BCD’s inflation surface, and most significantly, do not a SCUBA unit during an emergency, and source, and uses the BCD in accordance impede operation of chest-mounted would also create additional points of with the manufacturer’s instructions. drysuit inflation valves. Additionally, potential equipment failure and Further, OSHA noted in the NOAA NOAA explained that the inability of entanglement. JHT echoed NOAA’s Alternate Diving Standards that stab-jacket or back-mounted BCD to concerns regarding the use of BCD that 1910.430(d)(4)’s requirement that maintain a diver in a face-up position is are inflated by a source other than the SCUBA divers use a BCD with a fully mitigated by NOAA’s requirement diver’s breathing gas (Ex. OSHA–2015– manually activated inflation source that divers always dive in buddy pairs 0024–0003, p. 9). (e.g., via a carbon-dioxide cartridge) in (or be line-tended), and receive training The training that NOAA provides to addition to an oral inflation device is in the proper technique for inflating its divers and contractors, including intended to allow the diver to quickly their buddy’s BCD while keeping them JHT, mitigates the risk of using inflate the BCD in an emergency, but oriented face-up during rescues. breathing gas to inflate BCD. NDP divers technological improvements in manual Accordingly, NOAA stated that the are trained to continually monitor their BCD power inflators now allow for chance of a stricken diver drowning gas supplies and return to the surface rapid inflation of BCD with breathing while wearing a BCD that does not with no less than 500 psi in their gas, but with less safety risk (e.g., over- provide for face-up flotation is very SCUBA cylinders, and NOAA stated inflation) than using carbon-dioxide remote. JHT added that horse-collar that this practice, which has been used cartridges. Therefore, using these BCD were not originally designed for for more than 30 years, has proven to be manual BCD power inflators to inflate a emergency buoyancy ascents, and many an effective method for managing a BCD with breathing gas provides are thus not equipped with the over- diver’s breathing gas. NDP divers are protection to a diver that is equivalent pressure relief valves that are essential also trained in techniques to manually to the standard, and obviates the need for safe emergency ascents. inflate their BCD, both underwater and for 1910.430(d)(4)’s requirement that the When granting the NOAA Alternate at the surface, to control their buoyancy. BCD’s inflation source be independent Diving Standards, OSHA noted that the NOAA also explained that the amount of the breathing supply. In addition, preamble to the CDO final rule of gas needed to inflate a BCD is OSHA stated NOAA’s policy that divers explained that ‘‘[t]he provision for an minimal compared to the amount of always have topside support and never inflatable flotation device for SCUBA breathing gas that is available in a dive alone except when line tended, diving [was] given design specifications standard SCUBA cylinder, and that expedites the rescue of divers who must because an improperly designed device most BCD can be fully inflated with a make emergency ascents to the surface, can be a greater safety hazard than aid’’ volume of gas equivalent to that thereby reducing their risk of drowning (42 FR at 37666). BCD were not consumed in three or fewer breaths. should an inflatable flotation device commercially available when the CDO Therefore, NOAA asserted that taking malfunction. standard was published, and OSHA such small amounts of gas from the Additionally, JHT’s proposed variance therefore articulated minimum design SCUBA cylinder would have minimal conditions would follow the NOAA standards for inflatable flotation devices effect on the duration of a dive. This Alternate Diving Standards by replacing in the final rule. OSHA agreed in the also reduces consumption by making 1910.430(d)(4)’s requirement that BCD NOAA Alternate Diving Standards that the diver ‘‘neutrally buoyant.’’ used for SCUBA dives be capable of the flotation design of contemporary Under the alternate conditions that maintaining the diver at the surface in BCD is superior to the equipment that OSHA granted NOAA in the NOAA a ‘‘face-up position’’ with a requirement was in use when OSHA published the Alternate Diving Standards, which JHT that the BCD be capable of maintaining CDO standard in 1977. OSHA further adopts as the proposed conditions for the diver at the surface in a ‘‘positively explained that modern BCD are the variance, NDP divers may use BCD buoyant state.’’ NOAA’s application equipped to maintain a diver at the that are inflated by the breathing gas materials explained that the majority of surface in a positively buoyant state, supply so long as all divers carry an COTS BCD available today are not even if they do not ‘‘prop up’’ the independent reserve cylinder of designed to maintain unconscious diver’s head. OSHA thus granted breathing gas with a separate regulator, divers in a face-up position on the NOAA’s proposed alternative standards which allows divers to orally inflate surface, as systems capable of meeting on the condition that NOAA continues their BCD using gas from their reserve that requirement have inherent safety- its policy of requiring that SCUBA gas supplies even if their primary related problems that lead most divers not dive alone unless they are breathing gas supply is depleted. When manufacturers to abandon them in favor line-tended and providing topside granting the NOAA Alternate Diving of more modern systems. support to those divers. Standards, OSHA explained that this Specifically, NOAA asserted that the JHT’s proposed variance includes the requirement is consistent with 29 CFR only BCD able to maintain a diver in a very same condition under which 1910.424(c)(4), which requires SCUBA face-up position at the surface was the OSHA approved NOAA’s Alternate divers to carry a reserve breathing-gas ‘‘horse-collar’’ style BCD, which has Diving Standards for NOAA-employed

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NDP divers. As stated above, there are SCUBA diving not be conducted at breathing a nitrox gas mixture within no differences in the training depths deeper than 100 FSW or outside the no-decompression limits. requirements, medical clearance the no-decompression limits unless a OSHA explained in granting the procedures and standards, equipment decompression chamber is ‘‘ready for NOAA Alternate Diving Standards that use and maintenance requirements, or use.’’ In other words, sections it created this exemption for diving procedures that apply to NOAA- 1910.423(b)(2) and 1910.424(b)(2) recreational diving instructors and employed and JHT-employed divers require any diver who conducts a dive diving guides because the agency who conduct diving operations for the deeper than 100 FSW or outside the no- determined that the elevated levels of NDP. Additionally, OSHA believes that decompression limits to remain alert oxygen in nitrox breathing-gas mixtures diver safety is best promoted where and near a decompression chamber for reduced the incidence of DCS compared diving safety rules are clear and at least one hour to ensure immediate to breathing air at the same depths, and consistently applicable to all divers at a treatment should DCS or AGE develop. therefore found that the risk of DCS was worksite. Accordingly, OSHA accepts Addressing the 100 FSW limit in the minimal. This determination justified JHT’s proposal to adopt the conditions preamble to the CDO rule, OSHA stated: from the NOAA Alternate Diving OSHA’s use in Appendix C of the By adding a depth limit to the Standards as the basis for the requested equivalent-air-depth (EAD) formula decompression chamber requirement, the from NOAA’s 2001 Diving Manual to variance from the inflatable flotation standard sets a specified depth at which all device requirements in 1910.430(d)(3) diving operations will/would require a calculate the no-decompression limits and (d)(4), and has decided to grant the chamber, eliminating the safety hazard that should apply to a dive depending permanent variance to JHT on those inherent in operations which are planed on the nitrogen partial pressures in the same conditions. below that depth .... OSHA believes that gas. As explained in the preamble to the this provision will/would result in Appendix C final rule (69 FR at 7356), C. Variance From Paragraphs (b)(2), recompression capability being available for the EAD formula assumes that (c)(1), (c)(3) of 29 CFR 1910.423, and the great majority of diving situations where equivalent nitrogen partial pressures (b)(2) of 29 CFR 1910.424, Requirements the probability of its being needed is greatest. and dive durations would result in for Decompression Chambers 6 42 FR at 37662. similar DCS risk to dives performed Adopting the conditions of the NOAA NOAA’s application sought with air. OSHA concluded that the Alternate Diving Standards, JHT’s permission to conduct SCUBA dives ‘‘EAD formula can accurately estimate application proposes conditions that within the no-decompression limit up to the DCS risk associated with nitrox would allow it to deviate from the 130 FSW (rather that 100 FSW) without breathing-gas mixtures based on decompression chamber availability and triggering the decompression chamber equivalent nitrogen partial pressures capability requirements in OSHA’s CDO requirements in 1910.423(b)(2) and and dive durations used in air diving.’’ standard. As OSHA explained when it 1910.424(b)(2). In support, NOAA cited granted the NOAA Alternate Diving After considering the statistics and statistics published by the U.S. Navy Standards, the purpose of having a information regarding NDP operations (USN) indicating that no-decompression decompression chamber available and that NOAA submitted, OSHA concluded dives to 130 FSW actually pose a lower ready for use at a dive site is to treat that NOAA’s proposed alternate risk of DCS to divers than no- decompression sickness (DCS) and standards would provide equivalent decompression dives to 100 FSW, and arterial gas embolism (AGE). DCS may protection to the CDO standard when also cited the extremely low DCS occur from breathing air or mixed gases NDP divers use air or nitrox breathing- incident rate that NOAA has observed at diving depths and durations that gas mixtures with SCUBA, so long as in no-decompression SCUBA dives that require decompression, while AGE may NOAA complies with the no- result from over-pressurizing the lungs, it has conducted between 101 and 130 decompression provisions of Appendix usually following a rapid ascent to the FSW since 2000. C of 29 CFR 1910, Subpart T (i.e., surface during a dive without proper When granting NOAA alternate Condition 5, ‘‘Use of No-Decompression exhalation. In the event that DCS or standards to 1910.423(b)(2) and Limits’’).8 Also, when using nitrox AGE develops, a decompression 1910.424(b)(2), OSHA explained that breathing-gas mixtures with SCUBA at chamber, oxygen or treatment gas the CDO standard sets the 100 FSW depths up to 130 FSW, OSHA required mixtures, and treatment tables and limit based on the increased risk of NOAA to ensure that the partial instructions must be readily available to developing DCS and AGE on dives pressure of oxygen does not exceed 1.40 treat these conditions effectively. deeper than 100 FSW. However, OSHA ATA or 40 percent by volume Decompression chambers provide the explained that the agency amended the (whichever exposes the diver to less most effective therapy— CDO standard in 2004 to permit employers of recreational diving recompression—for DCS and AGE. 8 Condition 5 of Appendix C requires: First, JHT’s proposed variance would instructors and diving guides to comply (a) For diving conducted while using nitrox adopt the conditions of the NOAA with an alternative set of decompression breathing-gas mixtures, the employer must ensure Alternate Diving Standards that permit chamber requirements (see 69 FR 7351 that each diver remains within the no- NOAA to deviate from the requirement (February 17, 2004)).7 Under the decompression limits specified for single and repetitive air diving and published in the 2001 of 1910.423(b)(2) that the employer conditions articulated in Appendix C to NOAA Diving Manual or the report entitled instruct all divers who dive deeper than Subpart T, eligible employers are not ‘‘Development and Validation of No-Stop 100 FSW to remain awake and in the required to provide a decompression Decompression Procedures for Recreational Diving: vicinity of a decompression chamber for chamber at the dive site when engaged The DSAT Recreational Dive Planer,’’ published in 1994 by Hamilton Research Ltd. (known commonly one hour after the dive, and the in SCUBA diving to 130 FSW while as the ‘‘1994 DSAT No-Decompression Tables’’). requirement of 1910.424(b)(2) that (b) A employer may permit a diver to use a dive- 7 Appendix C incorporated into the CDO standard decompression computer designed to regulate 6 A decompression chamber is ‘‘a pressure vessel essentially the same terms as those used in a decompression when the dive-decompression for human occupancy such as a surface variance that OSHA granted to Dixie Divers, Inc., computer uses the no-decompression limits decompression chamber, closed bell, or deep diving a diving school that employed several recreational specified in paragraph 5(a) of this appendix, and system used to decompress divers and to treat diving instructors, in 1999 (see 64 FR 71242, provides output that reliably represents those decompression sickness’’ (29 CFR 1910.402). December 20, 1999). limits.

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oxygen),9 in keeping with the discusses and justifies Subpart T’s medical-treatment provisions of requirements of Appendix C. JHT’s capability requirements for Appendix C to the CDO rule (i.e., proposed variance would adopt these decompression chambers, including the Condition 8, ‘‘Treating Diving-Related same conditions under which OSHA requirements that the chamber have 6 Medical Emergencies’’). OSHA granted granted the alternate standards to ATA capability and be dual-lock (i.e., the NOAA Alternate Diving Standards 1910.423(b)(2) and 1910.424(b)(2) to have two compartments) and multiplace under these conditions, and JHT now NOAA for NDP dives in which JHT (i.e., have a main lock large enough to seeks to conduct NDP dives according to divers participate. accommodate and decompress two the same conditions. Additionally, JHT’s application would individuals) (see 42 FR at 37661–63). Based on a technical review of the adopt the conditions of the NOAA Accordingly, OSHA stated that mono- JHT’s application, the NOAA Alternate Alternate Diving Standards that permit lock chambers may be an option for Diving Standards, and related NOAA to deviate from the transporting divers to larger chambers, supporting material, OSHA finds that decompression chamber availability and but it does not provide divers with the proposed conditions would also capability requirements in protection that is equivalent to the CDO provide JHT divers with protection 1910.423(c)(1) (that employers have a 6 standard’s requirements. Therefore, equivalent to the CDO standard; there ATA chamber at the dive location) and OSHA did not approve NOAA’s are no differences in the training 1910.423(c)(3) (that the chamber be proposed chamber-capability requirements, medical clearance dual-lock, multiplace, and located alternative. procedures and standards, equipment within five minutes of the dive Regarding the proposed chamber- use and maintenance requirements, or location). In the original application to availability alternative, OSHA noted diving procedures that apply to NOAA- the agency, NOAA proposed alternate that the preamble to the CDO final rule employed and JHT-employed divers standards that would have permitted it explained that having the who dive under the NDP, and diver to use a 2.8 ATA, mono-lock chamber decompression chamber near the dive safety is best promoted where diving available within two (2) hours of the site was originally considered necessary safety rules are clear and consistently dive location for all working dives ‘‘because the surface decompression applicable to all divers at a worksite. tables are commonly designed to be conducted deeper than 130 FSW or D. Multi-State Variance outside the no-decompression limits. used with equipment that meets this NOAA explained that complying with criterion’’ (42 FR at 37662). However, JHT’s land-based operations, which 1910.423(c)(1) and (c)(3) requires OSHA reexamined 1910.423(c)(3)’s five- are responsible for managing and employers to use a large enough vessel minute availability requirement when it administering these diving projects, are to carry and transport a large and developed Appendix C to Subpart T. In located at: (1) NOAA CCEHBR powerful decompression chamber to the Appendix C, OSHA found that, for no- Laboratory, 219 Fort Johnson Road, dive site, but most NDP dives are decompression dives at 130 FSW or Charleston, South Carolina 29412; and conducted from small boats, which are less, a four-hour travel delay to a 6–ATA (2) NOAA/NOS Center for Coastal launched from larger ships or land- decompression chamber is acceptable Fisheries and Habitat Research, 101 based facilities. Accordingly, NOAA when the employer meets specified Pivers Island Road, Beaufort, North sought permission to use light-weight, conditions, including: Verifying before Carolina 28516. JHT conducts diving portable decompression systems, which starting diving operations the operations with NOAA with essentially it referred to as ‘‘hyperlite chambers,’’ to availability of a 6–ATA treatment no geographical limitations, and has transport injured divers from dive sites facility, qualified healthcare conducted diving operations with to larger chambers located elsewhere. professionals, and a rescue service; NOAA in various navigable waters Additionally, NOAA sought to make the ensuring that suitable transportation to within OSHA’s geographical authority, hyperlite chamber available within two the decompression chamber is available including the navigable waters of the hours rather that within five minutes, of at the dive site during diving operations; Virginia, North Carolina, South the dive location for dives conducted ensuring at least two attendants Carolina, Georgia, and Florida, the deeper than 130 FSW or outside the no- qualified in first-aid and administering Florida Keys, the Gulf of Mexico, the oxygen treatment are available for decompression limits. Caribbean (e.g., U.S. Virgin Islands and OSHA did not grant NOAA the treatment during diving operations; and Puerto Rico) and the Pacific (e.g., alternate standards based on these that these attendants administer Hawaii, Guam, Palau, Marianas and proposed conditions, but rather granted medical-grade oxygen to the injured American Samoa). revised alternate standards in order to diver during transportation to the Twenty-eight state safety and health ensure that NOAA divers would receive treatment facility. OSHA came to this plans have been approved by OSHA 10 equivalent protection to the CDO conclusion because, as explained in the under section 18 of the OSH Act. The preamble to the Appendix C final rule, standard. Regarding the chamber scope and application section of the ‘‘a four-hour delay is unlikely to impair capability requirements, OSHA found CDO standard, 29 CFR 1910.401, treatment outcomes for [DCS], and that that mono-lock chambers provide explains that OSHA has jurisdiction [AGE] is rare among recreational divers limited hyperbaric treatment options over commercial diving operations and can be prevented with proper (for example, administration of oxygen) when the dive location is within training and experience’’ (69 FR at to a diver, and explained that the 7359–60). 10 preamble to the original CDO final rule Six State Plans (Connecticut, Illinois, Maine, After considering the information that New Jersey, New York, and the Virgin Islands) limit NOAA submitted regarding the NDP’s their occupational safety and health authority to 9 As OSHA explained in the NOAA Alternate state and local employers only. State Plans that Diving Standards, a key purpose of OSHA’s diving diving operations, OSHA determined exercise their occupational safety and health standards is to prevent oxygen toxicity (hypoxia), that, for no-decompression dives using authority over both public- and private-sector and the maximum acceptable partial pressure of air or nitrox that are 130 FSW or less, employers are: Alaska, Arizona, California, Hawaii, oxygen when SCUBA diving is 1.40 ATA or 40 a four-hour travel delay to a 6 ATA Indiana, Iowa, Kentucky, Maryland, Michigan, percent by volume, whichever exposes the diver to Minnesota, Nevada, New Mexico, North Carolina, less oxygen. ATA, as used here, is the partial chamber provides NDP divers with Oregon, Puerto Rico, South Carolina, Tennessee, pressure of a constituent gas in the total pressure protection equivalent to the CDO Utah, Vermont, Virginia, Washington, and of a breathing gas. standard, so long as NOAA meets the Wyoming.

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OSHA’s geographical authority, and reference, but include rules that are commercial diving operations,’’ and when such operations are not covered identical to each of the federal ‘‘from an uninspected vessel within by the U.S. Coast Guard. As explained requirements at issue in JHT’s OSHA’s geographical authority.’’ NOAA in OSHA’s Directive regarding application (see Washington explained that the NDP dives are enforcement of Subpart T (‘‘CDO Administrative Code, Chapter 296–37, launched from a variety of platforms, Directive’’),11 OSHA’s CDO standard §§ 510–595). California’s diving including uninspected vessels operated covers private-sector employers in operations standards contain two rules by NOAA, as well as inspected vessels federal enforcement states, and that are substantively identical to two of contracted by NOAA, piers, docks, and employers who dive in association with the OSHA standards at issue in JHT’s shore. Because not all NDP dives are maritime standards (i.e., shipyard application (see California Code of conducted from NOAA vessels, NOAA employment, longshoring, and marine Regulations, Title 8, Subchapter 7, commented that the variance would terminals) when these operations are Group 26 §§ 6062(b)(1) and (3)((A)–(C)) have greater applicability if these not covered by a State with an OSHA- (substantively identical to 29 CFR paragraphs were changed to include all approved State Plan. States with 1910.423(c)(1) and (c)(3)). Exhibit dives under the control of the NDP and approved State Plans enforce the diving OSHA–2015–0024–0009 provides a within the jurisdiction of OSHA. After standard: (1) When commercial diving side-by-side comparison of the considering this comment, OSHA operations are being conducted by Washington and California standards determined that a change to the private-sector employees not engaged in that are identical in substance and conditions of the permanent variance shipyard employment or marine requirements to the Federal OSHA was warranted. The conditions to the terminal activities (e.g., equipment standards at issue in this variance variance provide JHT divers with repair, sewer maintenance, or application. protection equivalent to the CDO construction); (2) in maritime operations JHT certified in its application that it standard irrespective of whether the (i.e., shipyard employment and marine has not filed an application for a dive site is a vessel or a pier, dock, or terminals) as provided by the plans in permanent variance on the same shore, and diver safety is best promoted California, Minnesota, Vermont, and material facts with a State Plan program. where diving safety rules are clear and Washington; and (3) with regard to state JHT’s variance application fits the consistently applicable to all divers at and local government employees. The parameters of 29 CFR 1902.8, and all worksites. Accordingly, OSHA has location of the dive determines which Federal OSHA’s action on this revised paragraphs (1) and (2) of entity has authority over the dive application will be deemed Condition A so that the variance applies conditions. prospectively an authoritative to all dives under the control of the NDP Under 29 CFR 1902.8(c), an employer interpretation of JHT’s compliance and within the jurisdiction of OSHA. may apply to Federal OSHA for a obligations regarding the applicable variance where a state standard is state standards in the places of Regarding proposed Condition E, identical to a federal standard addressed employment covered by the application. which concerns worker qualification to the same hazard, and the variance As part of the permanent variance and training requirements (82 FR at would be applicable to employment or process, OSHA’s Directorate of 36003), NOAA provided a comment on places of employment in more than one Cooperative and State Programs will the requirement in paragraph (1) that state, including at least one state with notify all State Plans that are potentially requires JHT to develop and implement an approved plan. Of the twenty-eight affected by OSHA’s decision to grant an effective qualification and training State Plans, only California, Michigan, JHT a permanent variance. program for its affected divers that, as a Oregon, and Washington have minimum, meets the requirements set III. Comments on the Proposed promulgated their own state diving forth in 29 CFR 1910.410 (qualifications Variance standards; Arizona has adopted 29 CFR of a dive team). NOAA stated that JHT 1910, subpart T with the exception of On August 2, 2017, OSHA published does not have a diving program, but one provision that is not germane to this a preliminary notice announcing JHT’s rather relies on the NDP to train, equip, application,12 and all other State Plans application, granting an interim order, medically monitor and supervise its have fully adopted 29 CFR part 1910, and requesting comments (82 FR 35995 divers. NOAA therefore suggested that subpart T by reference. Michigan and (Aug. 2, 2017)). In response, OSHA OSHA change this condition so that it Oregon adopted diving standards 29 received one public comment on the requires JHT to ensure that its divers CFR part 1910, subpart T by reference, proposed variance application from adhere to all requirements of the NDP, although Oregon’s diving standards NOAA, who expressed support for a program which meets the include additional State-specific rules.13 granting JHT the permanent variance, requirements set forth in 29 CFR Washington’s diving standards do not made clarifications and corrections to 1910.410. Given JHT’s relationship with adopt 29 CFR part 1910, subpart T by the information in the notice, and NOAA and the limited scope of the suggested several changes to the terms variance, OSHA determined that 11 See OSHA Directive Number: CPL–02–00–151, of the permanent variance (OSHA– changing Condition E to require that ‘‘29 CFR part 1910, subpart T—Commercial Diving 2015–0024–0010). As explained below, JHT’s qualification and training program Operations’’ [Dated: 06/13/2011], available at: OSHA has accepted some of NOAA’s also meet the requirements of the NDP http://www.osha.gov/OshDoc/Directive_pdf/CPL_ 02-00-151.pdf]. requested changes to the terms of the is warranted. OSHA does not agree, 12 See 20 A.A.C. 5 § R20–5–602.01 (adopting permanent variance and declined however, with NOAA’s suggestion that OSHA’s CDO Standard with the exception of 29 others. the NDP alone should substitute for CFR 1910.401(a)(2)(ii)), available at: http:// _ _ Regarding proposed Condition A, JHT’s obligation to develop and apps.azsos.gov/public services/Title 20/20-05.pdf. which governs the scope of the variance implement an effective qualification and 13 See Michigan’s Occupational Health Standards, Part 504, § R 325.50303, ‘‘Adoption by reference of (82 FR at 36002), NOAA commented on training program for its divers. federal standard,’’ available at: http:// the language in proposed Paragraphs (1) Accordingly, OSHA revised paragraph www.michigan.gov/documents/lara/lara_miosha_ and (2) that limited the applicability of (1) of Condition E of the permanent _ _ _ OH 504 417497 7.pdf; Oregon Admin. Rule 437 the variance to ‘‘commercial diving variance so that it requires JHT to 002–0340, ‘‘Adoption by Reference,’’ available at: http://osha.oregon.gov/OSHARules/div2/ operations conducted for NOAA under develop a qualification and training div2T.pdf#page=7. the NDP from a NOAA vessel program that, at a minimum, meets all

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of the requirements of 29 CFR 1910.410 such training must, at a minimum, coverage provided by the standard, and and all of the requirements of the NDP. include the eight components listed in without updates about any changes to NOAA also commented on the paragraph (3). the procedures governing these work requirement in paragraph (2) of Regarding proposed Condition G, activities, OSHA will be unable to proposed Condition E that required which provides various OSHA determine if the permanent variance JHT’s affected divers to successfully notification requirements (82 FR at continues to provide equivalent worker complete NDP’s three-week, 140-hour 36003), NOAA commented that the protection. Additionally, while JHT will ‘‘Working Diver’’ course. NOAA condition in paragraph (2) to provide be performing diving operations under explained that the ‘‘Working Diver’’ OSHA with any recordable dive-related the NDP, notification of changes to course was discontinued in September incident investigation reports (using procedures that may impact the 2014 and replaced with a modular OSHA Form 301) within 24 hours of the conditions of the permanent variance course that also provides a three-week incident does not provide sufficient will allow OSHA to ensure that JHT training evolution. NOAA commented time to determine the scope of a diving identifies and implements appropriate that OSHA should change the language injury, assess root causes, and preventative and corrective actions. so that it requires JHT divers to determine corrective action. The Accordingly, this condition to the complete all training required by the comment further noted that this permanent variance has not been NDP to become a NOAA diver. After expedited reporting requirement was changed and JHT must notify OTPCA considering this comment, OSHA not placed upon NOAA under the and the Area Office closest to the dive determined that a change to the Alternate Standards to the Commercial location within fifteen (15) working conditions of the permanent variance Diving Standards, and that NOAA may days of any changes to its dive was warranted. Removing the reference submit such reports within seven (7) procedures that affect its ability to to the specific course will avoid the days of the incident. Because JHT divers comply with the conditions of the confusion that would result from will only dive under the control of the proposed permanent variance. requiring JHT to complete a NDP, NOAA commented that the Regarding proposed Condition G, discontinued course, and will maintain expedited reporting requirement for Paragraph (7), NOAA commented that the original intent of the provision, incidents involving JHT’s divers was the condition requiring JHT to provide which was to ensure that JHT’s divers onerous. After considering this OTPCA and the OSHA Area and complete the same training that NOAA comment, OSHA determined that no Regional Offices closest to the preceding requires for its NDP divers. Accordingly, change to this condition of the year’s dive locations a report OSHA has updated paragraph (2) of permanent variance was warranted. summarizing dives completed and Condition E of the permanent variance OSHA believes that providing expedited evaluating the effectiveness of the to remove any reference to the ‘‘Working notification to OSHA of injuries and variance conditions was unnecessary. Diver’’ course, and instead require that illnesses is essential because time is a NOAA again noted that OSHA did not JHT ensure that each affected diver critical element in OSHA’s ability to place a similar requirement on NOAA successfully completes all training determine the continued effectiveness of when it granted the NOAA Alternate required by the NOAA Diving Program the variance conditions in preventing Diving Standards, and given that JHT that is required to become a NOAA dive-related incidents. Additionally, divers will only dive under the control Diver. OSHA believes that expedited of the NOAA Diving Program, the NOAA also commented on paragraph notification of injuries and illnesses will requirement is onerous. NOAA also (3) to proposed Condition E, which ensure that JHT identifies and stated that the NDP produces an annual required JHT to ensure that its diver implements appropriate corrective and report which outlines all diving training program include eight specific preventative actions. Accordingly, this activities each year, which provides safety-related components. NOAA condition of the permanent variance has dives by location, type, depth and task, stated that JHT does not have a diver not been changed and JHT must submit and requested that OSHA change the training program, and instead relies on incident reports for recordable injuries condition to allow JHT to meet the the NDP to train its divers, but all of the or illnesses within twenty-four hours of requirement by submitting the NDP’s listed components in paragraph (3) are the incident. annual report. After considering this included in the NDP’s diver Regarding proposed Condition G, comment, OSHA has determined that it authorization requirements. NOAA Paragraph (5), NOAA commented that will not revise this reporting condition suggested that OSHA revise the the requirement for JHT to notify OSHA or replace it with a requirement for JHT paragraph so that it requires JHT’s on the need to revise dive procedures to to submit the NDP’s annual report. divers to complete all continuing accommodate changes in diving OSHA believes that JHT providing this training required by the NDP to operations that affect its ability to annual summary outlining the dives maintain their status as an authorized comply with the conditions of the completed and its evaluation of the NOAA diver. After considering this permanent variance within fifteen (15) effectiveness of the variance conditions comment, OSHA determined that working days is unwarranted. The is essential to OSHA’s monitoring of the revising the condition is warranted. The comment further notes that JHT does effectiveness of the permanent variance. permanent variance only applies to JHT not have a diving operation, as all on- The final comment from NOAA was divers when they dive for NOAA as part duty dives performed under the control a request to make the permanent of the NDP, and to be authorized to dive of the NDP, and JHT relies completely variance applicable to all employers for the NDP, a JHT diver must satisfy all upon NOAA to train, equip, medically who supply contract employees who are of the eight components listed in monitor, and supervise its divers. After part of the NOAA Diving Program. After paragraph (3). Accordingly, OSHA has considering this comment, OSHA considering this comment, OSHA has revised paragraph (3) of Condition E of determined that no change is warranted. determined that applicability of the the permanent variance so that JHT OSHA is not making a change to this permanent variance will only be to JHT must ensure that all of its divers condition because the permanent and its employees who engage in diving complete all continuing training variance is granted on the basis of the with NOAA under the NDP. JHT alone required by the NDP to maintain status proposed work activity being applied for this permanent variance as an authorized NOAA diver, and that determined ‘‘as safe and healthful’’ as under 29 U.S.C. 655(d) and 29 CFR

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1905.11. Should any other company that Condition B: Definitions diver to remain awake and in the supplies contract employees to NOAA In Condition B, OSHA defines a vicinity of the decompression chamber to dive as part of the NOAA Diving number of abbreviations that are used in which is at the dive location for at least Program desire a similar permanent the permanent variance. Defining these one hour after the dive (including variance, the company must apply for a abbreviations is intended to clarify and decompression or treatment as appropriate). Additionally, for any dive permanent variance. Accordingly, standardize their usage, thereby using air or a nitrox breathing-gas OSHA has not updated the permanent enhancing the JHT’s and its employees’ mixture within the no-decompression variance in response to this comment. understanding of the conditions limits that is deeper than 100 FSW but specified by the permanent variance. IV. Description of Conditions Specified no deeper than 130 FSW, JHT must for the Permanent Variance Condition C: Requirements for Inflatable make available within four hours of the Flotation (or Buoyance Compensation) dive location a dual-lock and multiplace This section describes the conditions Devices decompression chamber capable of that comprise the alternative means of recompressing the diver at the surface to compliance with 29 CFR 1910.430(d)(3); In Condition C, OSHA requires that, when using a buoyancy compensator a minimum of 165 FSW (6 ATA). JHT 29 CFR 1910.430(d)(4); 29 CFR must also meet the medical-treatment device (BCD) for SCUBA diving, JHT 1910.423(b)(2); 29 CFR 1910.423(c)(1); provisions of Appendix C to the CDO must ensure that: The device is used in 29 CFR 1910.423(c)(3) and 29 CFR rule (i.e., Condition 8, ‘‘Treating Diving- accordance with the manufacturer’s 1910.424(b)(2), that form the basis of the Related Medical Emergencies’’), and is instructions; is capable of being inflated permanent variance that OSHA is prohibited from conducting SCUBA orally and via the diver’s primary granting JHT in this notice. diving using air or nitrox breathing-gas breathing gas supply; and, all divers mixture at depths deeper than 100 FSW carry an independent reserve cylinder of Condition A: Scope but no deeper than 130 FSW, or outside breathing gas with a separate regulator the no-decompression limits, unless a 6 The permanent variance applies only that could be used for BCD inflation in ATA decompression chamber is ready to the commercial diving operations that an emergency. When SCUBA diving, JHT conducts for NOAA, under the for use (diving operations performed for JHT must also ensure that divers use an instructional purposes in accordance control of the NDP, and within OSHA’s inflatable flotation device that is: jurisdiction. The variance applies when with § 1910.401(a)(2)(i) are exempt). Capable of maintaining the diver at the When using a nitrox breathing-gas JHT’s employees dive as part of an NDP surface in a positively buoyant state; mixture, JHT must meet the no- diving operation, and within OSHA’s and, has a manually activated inflation decompression provisions of Appendix geographical authority, as defined by 29 source, an oral inflation device, and an C to the CDO rule (i.e., Condition 5, U.S.C. 653(a), and when such operations exhaust valve. Also, when SCUBA ‘‘Use of No-Decompression Limits’’) and are not covered by the U.S. Coast Guard. diving, JHT must ensure divers are ensure that the partial pressure of As explained in Section III, the never permitted to dive alone unless oxygen in breathing-gas mixtures does permanent variance applies to all they are line-tended and provided with not exceed 1.40 ATA or 40% by volume, qualifying dives, and is not limited to topside support. whichever exposes the diver to less dives from NOAA-operated uninspected Based upon the technical review of oxygen. vessels. Coverage is limited to the work the alternate conditions described above Based upon the technical review of situations specified under the ‘‘Scope (see sec. II.B.), OSHA has determined the proposed alternate conditions and application’’ section of Subpart T, that these conditions provide JHT’s regarding its use of decompression Commercial Diving Operations divers with protection equivalent to the chambers (see section II.C.), OSHA has (1910.401(a)), and does not apply to provisions in the CDO standard that determined the specified conditions commercial diving operations that are regulate inflatable flotation devices. provide JHT’s divers with protection already exempted under OSHA approved these same conditions equivalent to the CDO standard. OSHA 1910.401(a)(2).14 When implementing for NOAA-employed NDP divers when approved these same conditions for the conditions of the permanent it granted the NOAA Alternate Diving NOAA-employed NDP divers when it variance, JHT must comply fully with Standards on September 5, 2014, and granted the NOAA Alternate Diving all safety and health provisions that are there are no differences in training Standards on September 5, 2014, and applicable to commercial diving requirements, medical clearance there are no differences in training operations as specified by 29 CFR 1910, procedures, equipment use and requirements, medical clearance Subpart T, except for the requirements maintenance requirements, and diving procedures, equipment use and specified by 29 CFR 1910.430(d)(3), procedures for NOAA-employed and maintenance requirements, and required 1910.430(d)(4), 1910.423(b)(2), JHT-employed divers under the NDP. diving procedures for NOAA-employed 1910.423(c)(1), 1910.423(c)(3), and OSHA grants JHT’s request for a and JHT-employed divers under the 1910.424(b)(2). permanent variance, using the NDP. OSHA grants the requested conditions of the NOAA Alternate permanent variance based on the Diving Standards, in combination with 14 Section 1910.401(a)(2) provides that the CDO conditions of the NOAA Alternate standard does not apply to any dive (i) performed the additional conditions specified in Diving Standards in combination with solely for instructional purposes, using open- this notice. the additional conditions specified in circuit, compressed-air SCUBA and conducted this notice. within the no-decompression limits; (ii) performed Condition D: Requirements for solely for search, rescue, or related public safety Decompression Chambers Condition E: Worker Qualification and purposes by or under the control of a governmental Training agency; (iii) governed by 45 CFR part 46 (Protection Condition D requires that, for any of Human Subjects, U.S. Department of Health and dive that is outside the no- Condition E requires JHT to develop Human Services) or equivalent rules or regulations decompression limits or deeper than and implement an effective qualification established by another federal agency, which regulate research, development, or related purposes 130 FSW or using mixed gas with a and training program for its affected involving human subjects; or (iv) fitting the percentage of oxygen less than air as a divers that, at a minimum, meets the standard’s definition of ‘‘scientific diving.’’ breathing mixture, JHT must instruct the requirements set forth in 29 CFR

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1910.410 qualifications of a dive team. and other dive-related injuries and for its main office, or transfers the As explained in section III of this notice, illnesses.15 operations covered by the permanent variance to a successor company; and Condition E also provides that JHT’s Condition G: Notifications qualification and training program must (9) Ensure that OSHA would approve also meet the requirements of the NOAA The notification provisions in the transfer of the permanent variance to Diving Program (NDP). The condition Condition G are intended to ensure that a successor company. JHT provides timely notification to specifies that JHT must ensure that all OSHA acknowledges that the OSHA of dive-related incidents affected divers successfully complete all requirement for completing and involving JHT divers and dive team submitting the dive-related (recordable) training required by the NOAA Diving members. Under this condition, JHT is incident investigation report (OSHA 301 Program to become a NOAA Diver. The required to: (1) Notify the Office of form) is more restrictive than OSHA’s condition also specifies that JHT must Technical Programs and Coordination generally applicable recordkeeping ensure that all affected divers complete Activities (OTPCA) and the Area Office requirements, which require employers all of the NDP’s diver training closest to the dive location of any to complete an OSHA 301 form within requirements to be authorized NOAA recordable injuries, illnesses, in-patient seven (7) calendar days of the incident Diver, and that such training must, at a hospitalizations, amputations, loss of an (29 CFR 1904.29(b)(3)). The abbreviated minimum, include: (1) Instruction in the eye, or fatality that occur as a result of timeframe for investigating and conditions of the permanent variance; diving operations within eight (8) hours reporting incidents under this (2) annual refresher training in oxygen of the incident; (2) provide OTPCA and permanent variance applies only to administration (academic and practical the Area Office closest to the dive dive-related and recordable incidents. components); (3) instruction in location within twenty-four (24) hours Providing expedited notification to maintaining current CPR/AED and First of the incident with a copy of the OSHA of such incidents is essential Aid certification; (4) maintaining incident investigation report (using because time is a critical element in proficiency in diving by making at least OSHA 301 form); (3) include on the OSHA’s ability to determine the three (3) dives per quarter; (5) OSHA 301 form information on the continued effectiveness of the variance completing and passing an annual swim diving conditions associated with the conditions in preventing dive-related test; (6) completing and passing an recordable injury or illness, the root- incidents, and to ensure that JHT cause determination, and preventive annual skills test to demonstrate the identifies and implements appropriate and corrective actions identified and diver’s ability to safely operate corrective and preventive actions. implemented; (4) provide certification Timely notification permits OSHA to underwater; (7) successfully completing that it informed affected divers of the take necessary and appropriate actions one or more annual rescue drills to incident and the results of the incident to prevent further injuries and illnesses, demonstrate the diver’s ability to investigation; (5) notify OTPCA and the including determining whether to revise surface, extricate, treat and evacuate the Area Office closest to the dive location or revoke the conditions of the victim of a diving accident; and (8) within fifteen (15) working days should permanent variance. Providing instruction in properly verifying that the the applicant need to revise its dive notification to affected employees will diver’s life support gear was serviced procedures to accommodate changes in ensure that employees are aware of the annually by a certified technician. JHT its diving operations that affect its precautions that JHT implements to must also document and track all ability to comply with the conditions of prevent similar future incidents. affected divers’ training. the permanent variance; (6) obtain Additionally, this condition requires OSHA believes that having well- OSHA’s written approval prior to JHT to notify OSHA if it ceases to do trained and qualified divers performing implementing the revision in its dive business, has a new main office address procedures to accommodate changes in or location, or transfers the operations the required dive tasks ensures that they its diving operations that affect its covered by the permanent variance to a recognize, and respond appropriately to ability to comply with the conditions in successor company. Further, pursuant underwater safety and health hazards. the permanent variance; (7) by the to this condition, OSHA must approve These qualification and training fifteenth (15th) of January, at the the transfer of the permanent variance to requirements will enable affected JHT beginning of each new calendar year, a successor company. These divers to cope effectively with provide OTPCA, and the Area Offices requirements will: (1) Provide assurance emergencies, as well as the discomfort and their corresponding Regional that the successor company has and physiological effects of hyperbaric Offices closest to the preceding year’s knowledge of, and would comply with, exposure, thereby preventing injury, dive locations, with a report the conditions specified by the illness, and fatalities. summarizing the dives completed permanent variance; (2) allow OSHA to during the year just ended and Condition F: Recordkeeping communicate effectively with the evaluating the effectiveness of the applicant regarding the status of the Condition F requires JHT to maintain variance conditions in providing a safe permanent variance; and (3) expedite records of specific factors associated and healthful work environment and in the agency’s administration and with each dive. The information preventing dive-related incidents; and enforcement of the permanent variance, gathered and recorded under this (8) Notify OSHA if it ceases to do thereby ensuring the continued safety of business, has a new address or location provision, in concert with the affected divers. information provided under Condition 15 See 29 CFR 1904, Recording and Reporting V. Decision G (using OSHA 301 Incident Report Occupational Injuries and Illnesses (http:// As previously indicated in this notice, form to investigate and record dive- www.osha.gov/pls/oshaweb/owandisp.show_ _ _ OSHA reviewed JHT’s application for a related recordable injuries as defined by document?p table=STANDARDS&p id=9631); recordkeeping forms and instructions (http:// permanent variance and interim order, 29 CFR 1904.4, 1904.7, 1904.8 through www.osha.gov/recordkeeping/RKform300pkg- and the supporting technical 1904.12), will enable JHT and OSHA to fillable-enabled.pdf); and updates to OSHA’s documentation, including the alternate determine the effectiveness of the recordkeeping rule, 79 FR 56130, September 18, 2014 (more information available at: http:// standards that OSHA granted to NOAA permanent variance in preventing DCS www.osha.gov/recordkeeping2014/index.html). on September 5, 2014. After completing

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this review, OSHA determined that instead of complying with the NDP—NOAA Diving Program JHT’s application proposes an effective requirements of paragraphs 29 CFR OSHA—Occupational Safety and Health alternative means of protection that will 1910.430(d)(3), 1910.430(d)(4), Administration protect its employees engaged in NDP 1910.423(b)(2), 1910.423(c)(1), OTPCA—OSHA’s Office of Technical diving operations as effectively as the 1910.423(c)(3), and 1910.424(b)(2) of Programs and Coordination Activities requirements articulated in 29 CFR OSHA’s commercial diving standard. p.s.i.—pounds per square inch 1910.430(d)(3); 29 CFR 1910.430(d)(4); The conditions apply to all of JHT’s SCUBA—Self Contained Underwater 29 CFR 1910.423(b)(2); 29 CFR commercial diving operations that it Breathing Apparatus 1910.423(c)(1); 29 CFR 1910.423(c)(3) conducts with NOAA under the NOAA C. Requirements for Inflatable Flotation and 29 CFR 1910.424(b)(2). Based on Diving Program (NDP). These conditions Devices this determination, on August 2, 2017, are: OSHA published a preliminary Federal 1. When using a BCD for SCUBA Register notice (82 FR 35995) A. Scope diving, JHT must ensure that: The announcing JHT’s application for a 1. The permanent variance applies device is used in accordance with the permanent variance, granting JHT an only to JHT’s commercial diving manufacturer’s instructions; is capable interim order, and issuing a request for operations conducted for NOAA under of being inflated orally and via the comments. Since OSHA granted the the control of the NOAA Diving diver’s primary breathing gas supply; interim order, JHT has been required to Program. and all divers carry an independent comply fully with the conditions of the 2. The permanent variance only reserve cylinder of breathing gas with a interim order as an alternative to applies to JHT diving operations that are separate regulator that could be used for complying with the requirements of the covered under Subpart T of 29 CFR part BCD inflation in an emergency. above-listed OSHA standards. 1910 (see 29 CFR 1910.401(a)). 2. When SCUBA diving, JHT must After reviewing and evaluating the Accordingly, the variance will only ensure that divers use an inflatable alternative means of protection that JHT apply when the dive location is within flotation device that is: Capable of proposed to provide its employees, and OSHA’s geographical authority, as maintaining the diver at the surface in the one comment that OSHA received defined by 29 U.S.C. 653(a), and when a positively buoyant state; and have a during the public comment period, such operations are not covered by the manually activated inflation source, an OSHA has determined that the U.S. Coast Guard. oral inflation device, and an exhaust alternative conditions detailed in this 3. The permanent variance does not valve. permanent variance will provide JHT’s apply to commercial diving operations 3. When SCUBA diving, JHT must employees working conditions that are exempted by 29 CFR 1910.401(a)(2), ensure that divers are never permitted to as safe and healthful as those which including diving operations performed dive alone unless they are line-tended would prevail if JHT complied with 29 solely for instructional purposes, using and provided with topside support (as CFR 1910.430(d)(3), 1910.430(d)(4), open-circuit, compressed-air SCUBA a minimum, topside support includes a 1910.423(b)(2), 1910.423(c)(1), and conducted within the no- designated person-in-charge and a 1910.423(c)(3), and 1910.424(b)(2). decompression limits; diving performed standby diver). Based on the record discussed above, solely for search, rescue, or related D. Requirements for Decompression and in accordance with section 6(d) of public safety purposes by or under the Chambers the OSH Act (29 U.S.C. 655(d)), OSHA control of a governmental agency; grants JHT’s application for a permanent diving for research, development, or 1. For any dive that is outside the no- variance. This order prescribes the related purposes involving human decompression limits or deeper than conditions that JHT must maintain, subjects, as governed by 45 CFR part 46 130 FSW or using mixed gas with a adopt, and utilize to the extent they or equivalent rules or regulations percentage of oxygen less than air as a differ from the standards in question. established by another federal agency; breathing mixture, JHT must instruct the Under the terms of this permanent and scientific diving. To qualify for the diver to remain awake and in the variance, JHT must: (1) Comply with the scientific diving exemption, all of the vicinity of the decompression chamber, conditions listed below under Section requirements in 29 CFR which is at the dive location for at least VI of this notice (‘‘Order’’); (2) comply 1910.401(a)(2)(iv) and Appendix B to 29 one hour after the dive (including fully with all other applicable CFR part 1910, subpart T, must be met. decompression or treatment as provisions of 29 CFR part 1910; and (3) 4. Except for the requirements appropriate). provide a copy of this Federal Register specified by 29 CFR 1910.430(d)(3), 2. For any dive using air or nitrox notice to all employees affected by the 1910.430(d)(4), 1910.423(b)(2), breathing-gas mixture within the no- conditions using the same means it used 1910.423(c)(1), 1910.423(c)(3), and decompression limits that is deeper to inform these employees of its 1910.424(b)(2), JHT must comply fully than 100 FSW but no deeper than 130 application for a permanent variance. with all other applicable provisions of FSW, JHT must make available a This order will remain in effect unless Subpart T of 29 CFR part 1910 when decompression chamber that is: Dual- OSHA modifies or revokes this final conducting commercial diving lock, multiplace, and located within order in accordance with 29 CFR operations. four hours of the dive location. JHT will 1905.13. have to meet the no-decompression B. Definitions provisions of Appendix C to the CDO VI. Order The following definitions apply to rule (i.e., Condition 5, ‘‘Use of No- As of the effective date of this final this permanent variance: Decompression Limits’’) and ensure that order, OSHA is revoking the Interim ATA—Atmosphere(s) Absolute the partial pressure of oxygen in Order granted to the employer on BCD—Buoyancy Compensator Device breathing-gas mixtures does not exceed August 2, 2017 (82 FR 35995). CDO—Commercial Diving Operations 1.40 ATA or 40% by volume, whichever OSHA issues this final order DCS—Decompression Sickness exposes the diver to less oxygen. authorizing Jardon and Howard FSW—feet of seawater 3. JHT must meet the medical- Technologies, Incorporated (‘‘JHT’’) to JHT—Jardon and Howard Technologies, treatment provisions of Appendix C to comply with the following conditions Incorporated the CDO rule (i.e., Condition 8,

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‘‘Treating Diving-Related Medical information provided under condition G OSHA will publish a copy of this Emergencies’’). (using OSHA 301 Incident Report form notice in the Federal Register. 4. JHT is prohibited from conducting to investigate and record dive-related Authority and Signature SCUBA diving using air or nitrox recordable injuries as defined by 29 CFR breathing-gas mixture at depths deeper 1904.4, 1904.7, 1904.8 through 1904.12), Loren Sweatt, Acting Assistant than 100 FSW but no deeper than 130 would enable the JHT and OSHA to Secretary of Labor for Occupational FSW, or outside the no-decompression determine the effectiveness of the Safety and Health, 200 Constitution limits, unless a 6 ATA decompression permanent variance in preventing DCS Avenue NW, Washington, DC 20210, chamber is ready for use (diving and other dive-related injuries and authorized the preparation of this operations performed for instructional illnesses. notice. Accordingly, the agency is purposes in accordance with issuing this notice pursuant to Section § 1910.401(a)(2)(i) are exempt). G. Notifications 29 U.S.C. 655(6)(d), Secretary of Labor’s 1. Notify the OTPCA and the Area Order No. 1–2012 (77 FR 3912, Jan. 25, E. Worker Qualification and Training Office closest to the dive location of any 2012), and 29 CFR 1905.11. JHT is required to: recordable injuries, illnesses, in-patient Signed at Washington, DC, on May 1, 2019. 1. Develop and implement an hospitalizations, amputations, loss of an Loren Sweatt, effective qualification and training eye, or fatality that occur as a result of program for its affected divers that, at a diving operations within eight (8) hours Acting Assistant Secretary of Labor for Occupational Safety and Health. minimum, meets the requirements set of the incident; forth in 29 CFR 1910.410 (qualifications 2. Provide OTCPA and the Area Office [FR Doc. 2019–09988 Filed 5–14–19; 8:45 am] of a dive team), and all of the closest to the dive location within BILLING CODE 4510–26–P requirements of the NDP; twenty-four (24) hours of the incident 2. Ensure that each affected diver with a copy of the incident investigation DEPARTMENT OF LABOR (including, but not limited to, current report using OSHA 301 form; and newly assigned to be involved in 3. Include on the OSHA 301 form Occupational Safety and Health diving operations under the NDP) information on the diving conditions Administration successfully completes all training associated with the recordable injury or required by the NDP to become a NOAA illness, the root-cause determination, [Docket No. OSHA–2013–0017] Diver; and preventive and corrective actions 3. Ensure that all divers complete all identified and implemented; QAI Laboratories, Ltd. Application for continuing training required by NDP to 4. Provide certification that it Expansion of Recognition maintain status as an authorized NOAA informed affected divers of the incident AGENCY: Occupational Safety and Health Diver. At a minimum, the diver training and the results of the incident Administration (OSHA), Labor. program must include the following: (a) investigation; ACTION: Instruction in the conditions of the 5. Notify OTPCA and the Area Office Notice. permanent variance; (b) annual refresher closest to the dive location within SUMMARY: In this notice, OSHA training in oxygen administration fifteen (15) working days should JHT announces the application of QAI (academic and practical components); need to revise its dive procedures to Laboratories, Ltd., for expansion of (c) instruction in maintaining current accommodate changes in its diving recognition as a Nationally Recognized CPR/AED and First Aid certification; (d) operations that affect its ability to Testing Laboratory (NRTL) and presents maintaining proficiency in diving by comply with the conditions of the the agency’s preliminary finding to making at least three (3) dives per permanent variance; grant the application. quarter; (e) completing and passing an 6. Obtain OSHA’s written approval DATES: Submit comments, information, annual swim test; (f) completing and prior to implementing the revision in its and documents in response to this passing an annual skills test to dive procedures to accommodate notice, or requests for an extension of demonstrate the diver’s ability to safely changes in its diving operations that time to make a submission, on or before operate underwater; (g) successfully affect its ability to comply with the May 30, 2019. completing one or more annual rescue conditions in the permanent variance; drills to demonstrate the diver’s ability 7. By the fifteenth (15th) of January, ADDRESSES: Submit comments by any of to surface, extricate, treat and evacuate at the beginning of each new calendar the following methods: the victim of a diving accident; and (h) year, provide OTPCA, and the Area Electronically: You may submit instruction in properly verifying that the Offices and their corresponding comments and attachments diver’s life support gear was serviced Regional Office closest to the preceding electronically at: https:// annually by a certified technician; year’s dive locations, with a report www.regulations.gov, which is the 4. Document the training in order to summarizing the dives completed Federal eRulemaking Portal. Follow the provide a means of tracking the training during the year just ended and instructions online for submitting received by divers and, consequently, to evaluating the effectiveness of the comments. prompt JHT to update that training if permanent variance conditions in Facsimile: If your comments, necessary. providing a safe and healthful work including attachments, are not longer environment and in preventing dive- than 10 pages, you may fax them to the F. Recordkeeping related incidents; OSHA Docket Office at (202) 693–1648. JHT is required to: 8. Notify OSHA if it ceases to do Mail, hand delivery, express mail, 1. Maintain records of recordable business, has a new main office address messenger, or courier service: When injuries that occur as a result of diving or location, or transfers the operations using this method, you must submit a operations conducted for NOAA under covered by the permanent variance to a copy of your comments and attachments the NDP; successor company; and to the OSHA Docket Office, Docket No. 2. Ensure that the information 9. Ensure that OSHA would approve OSHA–2009–0026, Occupational Safety gathered and recorded under this the transfer of the permanent variance to and Health Administration, U.S. provision, in concert with the a successor company. Department of Labor, Room N–3653,

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200 Constitution Avenue NW, Washington, DC 20210, or by fax to employers to use products approved by Washington, DC 20210. Deliveries (202) 693–1644. the NRTL to meet OSHA standards that (hand, express mail, messenger, and FOR FURTHER INFORMATION CONTACT: require product testing and certification. courier service) are accepted during the Information regarding this notice is The agency processes applications by Docket Office’s normal business hours, available from the following sources: a NRTL for initial recognition and for an 10:00 a.m. to 3:00 p.m., ET. Press inquiries: Contact Mr. Frank expansion or renewal of this Instructions: All submissions must Meilinger, Director, OSHA Office of recognition, following requirements in include the agency name and OSHA Communications, U.S. Department of Appendix A to 29 CFR 1910.7. This docket number (OSHA–2013–0017). Labor, telephone: (202) 693–1999; appendix requires that the agency OSHA places comments and other email: [email protected]. publish two notices in the Federal materials, including any personal General and technical information: Register in processing an application. In information, in the public docket Contact Mr. Kevin Robinson, Director, the first notice, OSHA announces the without revision, and these materials Office of Technical Programs and application and provides a preliminary will be available online at http:// Coordination Activities, Directorate of finding. In the second notice, the agency www.regulations.gov. Therefore, the Technical Support and Emergency provides the final decision on the agency cautions commenters about Management, Occupational Safety and application. These notices set forth the submitting statements they do not want Health Administration, U.S. Department NRTL’s scope of recognition or made available to the public, or of Labor, phone: (202) 693–2110 or modifications of that scope. OSHA submitting comments that contain email: [email protected]. maintains an informational web page for personal information (either about SUPPLEMENTARY INFORMATION: each NRTL, including QAI, which themselves or others) such as Social details the NRTL’s scope of recognition. I. Notice of the Application for These pages are available from the Security numbers, birth dates, and Expansion medical data. OSHA website at http://www.osha.gov/ OSHA is providing notice that QAI dts/otpca/nrtl/index.html. Docket: To read or download Laboratories, Ltd. (QAI), is applying for QAI currently has two facility (sites) comments or other material in the expansion of recognition as a NRTL. recognized by OSHA for product testing docket, go to https:// QAI requests the addition of ten test and certification, with headquarters www.regulations.gov or the OSHA standards to the NRTL scope of located at: QAI Laboratories, Ltd., 3980 Docket Office at the above address. All recognition. North Fraser Way, Burnaby, BC, Canada, documents in the docket (including this OSHA recognition of a NRTL signifies V5J 5K5. A complete list of QAI’s scope Federal Register notice) are listed in the that the organization meets the of recognition is available at https:// https://www.regulations.gov index; requirements specified in 29 CFR www.osha.gov/dts/otpca/nrtl/qai.html. however, some information (e.g., 1910.7. Recognition is an copyrighted material) is not publicly acknowledgment that the organization II. General Background on the available to read or download through can perform independent safety testing Application the website. All submissions, including and certification of the specific products QAI submitted an application, dated copyrighted material, are available for covered within the scope of recognition. August 4, 2017 (OSHA–2013–0017– inspection at the OSHA Docket Office. Each NRTL’s scope of recognition 0009), to expand recognition to include Extension of comment period: Submit includes (1) the type of products the ten additional test standards. OSHA requests for an extension of the NRTL may test, with each type specified staff performed a detailed analysis of the comment period on or before May 30, by the applicable test standard; and (2) application packet and reviewed other 2019 to the Office of Technical the recognized site(s) that has/have the pertinent information. OSHA did not Programs and Coordination Activities, technical capability to perform the perform any on-site reviews in relation Directorate of Technical Support and product-testing and product- to this application. Emergency Management, Occupational certification activities for test standards Table 1 lists the appropriate test Safety and Health Administration, U.S. within the NRTL’s scope. Recognition is standard found in QAI’s application to Department of Labor, 200 Constitution not a delegation or grant of government expand for testing and certification of Avenue NW, Room N–3653, authority; however, recognition enables products under the NRTL Program.

TABLE 1—PROPOSED LIST APPROPRIATE TEST STANDARDS FOR INCLUSION IN QAI’S NRTL SCOPE OF RECOGNITION

Test standard Test standard title

UL 50 ...... Enclosures for Electrical Equipment, Non-Environmental Considerations. UL 50E ...... Enclosures for Electrical Equipment, Environmental Considerations. UL 467 ...... Grounding and Bonding Equipment. UL 962A ...... Standard for Furniture Power Distribution Units. UL 1012 ...... Standard for Power Units Other Than Class 2. UL 1310 ...... Standard for Class 2 Power Units. UL 1573 ...... Standard for Stage and Studio Luminaires and Connector Strips. UL 1951 ...... Standard for Electric Plumbing Accessories. UL 60950–21 ...... Information Technology Equipment—Safety—Part 21: Remote Power Feeding. UL 60950–23 ...... Information Technology Equipment—Safety—Part 23: Large Data Storage Equipment.

III. Preliminary Findings on the of recognition. OSHA’s review of the 1910.7 for expanding recognition to Application application file, and pertinent include the addition of these ten test QAI submitted an acceptable documentation, indicates QAI can meet standards for NRTL testing and application for expansion of the scope the requirements prescribed by 29 CFR certification listed above. This

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preliminary finding does not constitute DEPARTMENT OF LABOR Security numbers, birth dates, and an interim or temporary approval of medical data. QAI’s application. Occupational Safety and Health Docket: To read or download Administration OSHA welcomes public comment as comments or other material in the docket, go to https:// to whether QAI meets the requirements [Docket No. OSHA–2016–0022] www.regulations.gov or the OSHA of 29 CFR 1910.7 for expansion of Docket Office at the above address. All recognition as a NRTL. Comments Bay Area Compliance Laboratories documents in the docket (including this should consist of pertinent written Corp.: Application for Expansion of Recognition Federal Register notice) are listed in the documents and exhibits. Commenters https://www.regulations.gov index; needing more time to comment must AGENCY: Occupational Safety and Health however, some information (e.g., submit a request in writing, stating the Administration (OSHA), Labor. copyrighted material) is not publicly reasons for the request. Commenters ACTION: Notice. available to read or download through must submit the written request for an the website. All submissions, including extension by the due date for comments. SUMMARY: In this notice, OSHA copyrighted material, are available for OSHA will limit any extension to 10 announces the application of Bay Area inspection at the OSHA Docket Office. days unless the requester justifies a Compliance Laboratories Corp., for Extension of comment period: Submit longer period. OSHA may deny a expansion of recognition as a Nationally requests for an extension of the request for an extension if the request is Recognized Testing Laboratory (NRTL) comment period on or before May 30, not adequately justified. To obtain or and presents the agency’s preliminary 2019 to the Office of Technical review copies of the exhibits identified finding to grant the application. Programs and Coordination Activities, in this notice, as well as comments DATES: Submit comments, information, Directorate of Technical Support and submitted to the docket, contact the and documents in response to this Emergency Management, Occupational Docket Office, Room N–3655, notice, or requests for an extension of Safety and Health Administration, U.S. Occupational Safety and Health time to make a submission, on or before Department of Labor, 200 Constitution Administration, U.S. Department of May 30, 2019. Avenue NW, Room N–3653, Labor, at the above address. These ADDRESSES: Submit comments by any of Washington, DC 20210, or by fax to materials also are available online at the following methods: (202) 693–1644. http://www.regulations.gov under Electronically: You may submit FOR FURTHER INFORMATION CONTACT: Docket No. OSHA–2013–0017. comments and attachments Information regarding this notice is electronically at: https:// available from the following sources: OSHA staff will review all comments www.regulations.gov, which is the Press inquiries: Contact Mr. Frank to the docket submitted in a timely Federal eRulemaking Portal. Follow the Meilinger, Director, OSHA Office of manner. After addressing the issues instructions online for submitting Communications, U.S. Department of raised by these comments, the agency comments. Labor, telephone: (202) 693–1999; will make a recommendation to the Facsimile: If your comments, email: [email protected]. Assistant Secretary for Occupational including attachments, are not longer General and technical information: Safety and Health whether to grant than 10 pages, you may fax them to the Contact Mr. Kevin Robinson, Director, QAI’s application for expansion of the OSHA Docket Office at (202) 693–1648. Office of Technical Programs and scope of recognition. The Assistant Mail, hand delivery, express mail, Coordination Activities, Directorate of Secretary will make the final decision messenger, or courier service: When Technical Support and Emergency on granting the application. In making using this method, you must submit a Management, Occupational Safety and this decision, the Assistant Secretary copy of your comments and attachments Health Administration, U.S. Department may undertake other proceedings to the OSHA Docket Office, Docket No. of Labor, phone: (202) 693–2110 or prescribed in Appendix A to 29 CFR OSHA–2016–0022, Occupational Safety email: [email protected]. 1910.7. and Health Administration, U.S. SUPPLEMENTARY INFORMATION: OSHA will publish a public notice of Department of Labor, Room N–3653, 200 Constitution Avenue NW, I. Notice of the Application for the final decision in the Federal Washington, DC 20210. Deliveries Expansion Register. (hand, express mail, messenger, and OSHA is providing notice that Bay IV. Authority and Signature courier service) are accepted during the Area Compliance Laboratories Corp. Docket Office’s normal business hours, (BACL), is applying for expansion of Loren Sweatt, Acting Assistant 10:00 a.m. to 3:00 p.m., ET. recognition as a NRTL. BACL requests Secretary of Labor for Occupational Instructions: All submissions must the addition of two test standards to its Safety and Health, authorized the include the agency name and OSHA NRTL scope of recognition. preparation of this notice. Accordingly, docket number (OSHA–2016–0022). OSHA recognition of a NRTL signifies the agency is issuing this notice OSHA places comments and other that the organization meets the pursuant to 29 U.S.C. 657(g)(2), materials, including any personal requirements specified in 29 CFR Secretary of Labor’s Order No. 1–2012 information, in the public docket 1910.7. Recognition is an (77 FR 3912, Jan. 25, 2012), and 29 CFR without revision, and these materials acknowledgment that the organization 1910.7. will be available online at http:// can perform independent safety testing www.regulations.gov. Therefore, the and certification of the specific products Signed at Washington, DC, on May 7, 2019. agency cautions commenters about covered within the scope of recognition. Loren Sweatt, submitting statements they do not want Each NRTL’s scope of recognition Acting Assistant Secretary of Labor for made available to the public, or includes (1) the type of products the Occupational Safety and Health. submitting comments that contain NRTL may test, with each type specified [FR Doc. 2019–09984 Filed 5–14–19; 8:45 am] personal information (either about by the applicable test standard; and (2) BILLING CODE 4510–26–P themselves or others) such as Social the recognized site(s) that has/have the

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technical capability to perform the finding. In the second notice, the agency recognition is available at https:// product-testing and product- provides the final decision on the www.osha.gov/dts/otpca/nrtl/bacl.html. certification activities for test standards application. These notices set forth the II. General Background on the within the NRTL’s scope. Recognition is NRTL’s scope of recognition or Application not a delegation or grant of government modifications of that scope. OSHA authority; however, recognition enables maintains an informational web page for BACL submitted an application, dated employers to use products approved by each NRTL, including BACL, which December 4, 2017 (OSHA–2016–0022– the NRTL to meet OSHA standards that details the NRTL’s scope of recognition. 0006), to expand recognition to include require product testing and certification. These pages are available from the two additional test standards. OSHA The agency processes applications by OSHA website at http://www.osha.gov/ staff performed a detailed analysis of the a NRTL for initial recognition and for an dts/otpca/nrtl/index.html. expansion or renewal of this application packet and reviewed other recognition, following requirements in BACL currently has one facility (site) pertinent information. OSHA did not Appendix A to 29 CFR 1910.7. This recognized by OSHA for product testing perform any on-site reviews in relation appendix requires that the agency and certification, with headquarters to this application. publish two notices in the Federal located at: Bay Area Compliance Table 1 lists the appropriate test Register in processing an application. In Laboratories Corp., 1274 Anvilwood standard found in BACL’s application to the first notice, OSHA announces the Avenue, Sunnyvale, California 94089. A expand for testing and certification of application and provides a preliminary complete list of BACL’s scope of products under the NRTL Program.

TABLE 1—PROPOSED LIST APPROPRIATE TEST STANDARDS FOR INCLUSION IN BACL’S NRTL SCOPE OF RECOGNITION

Test standard Test standard title

UL 61010–1 ...... Safety Requirements for Electrical Equipment for Measurement, Control and Laboratory Use: Part 1—General Require- ments. UL 62368–1 ...... Audio/Video, Information and Communication Technology Equipment: Part 1—Safety Requirement.

III. Preliminary Findings on the http://www.regulations.gov under MERIT SYSTEMS PROTECTION Application Docket No. OSHA–2016–0022. BOARD OSHA staff will review all comments BACL submitted an acceptable Notice of Opportunity To Submit Ideas to the docket submitted in a timely application for expansion of the scope for Merit Systems Studies of recognition. OSHA’s review of the manner. After addressing the issues application file, and pertinent raised by these comments, the agency AGENCY: Merit Systems Protection documentation, indicates BACL can will make a recommendation to the Board. meet the requirements prescribed by 29 Assistant Secretary for Occupational ACTION: Notice. CFR 1910.7 for expanding recognition to Safety and Health whether to grant SUMMARY: The U.S. Merit Systems include the addition of these two test BACL’s application for expansion of the Protection Board (MSPB) is updating its standards for NRTL testing and scope of recognition. The Assistant research agenda and seeks suggestions certification in Table 1. This Secretary will make the final decision about possible topics of study. preliminary finding does not constitute on granting the application. In making DATES: Submissions are due July 1, an interim or temporary approval of this decision, the Assistant Secretary 2019. BACL’s application. may undertake other proceedings OSHA welcomes public comment as prescribed in Appendix A to 29 CFR ADDRESSES: Submit ideas by mail to to whether BACL meets the 1910.7. Research Agenda, U.S. Merit Systems Protection Board, Room 520, 1615 M requirements of 29 CFR 1910.7 for OSHA will publish a public notice of expansion of recognition as a NRTL. Street NW, Washington, DC 20419; by the final decision in the Federal fax to (202) 653–7211; or by email to Comments should consist of pertinent Register. written documents and exhibits. [email protected]; or via Commenters needing more time to IV. Authority and Signature the feedback form at www.mspb.gov comment must submit a request in under ‘‘MSPB Studies,’’ which is the writing, stating the reasons for the Loren Sweatt, Acting Assistant preferred method. request. Commenters must submit the Secretary of Labor for Occupational FOR FURTHER INFORMATION CONTACT: written request for an extension by the Safety and Health, authorized the Doug Nierle at (202) 254–4516; or James due date for comments. OSHA will limit preparation of this notice. Accordingly, Tsugawa at (202) 254–4506; or email any extension to 10 days unless the the agency is issuing this notice [email protected]. requester justifies a longer period. pursuant to 29 U.S.C. 657(g)(2), SUPPLEMENTARY INFORMATION: MSPB OSHA may deny a request for an Secretary of Labor’s Order No. 1–2012 conducts studies of the executive extension if the request is not (77 FR 3912, Jan. 25, 2012), and 29 CFR branch workforce to ensure that Federal adequately justified. To obtain or review 1910.7. personnel management is implemented copies of the exhibits identified in this Signed at Washington, DC, on May 7, 2019. consistent with the merit system notice, as well as comments submitted principles and free from prohibited to the docket, contact the Docket Office, Loren Sweatt, personnel practices. Most of those Room N–3655, Occupational Safety and Acting Assistant Secretary of Labor for studies are drawn from a multi-year Health Administration, U.S. Department Occupational Safety and Health. research agenda that MSPB develops of Labor, at the above address. These [FR Doc. 2019–09983 Filed 5–14–19; 8:45 am] after reviewing suggested topics from materials also are available online at BILLING CODE 4510–26–P the public. For more information about

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MSPB studies, see www.mspb.gov/ FOR FURTHER INFORMATION CONTACT: Ms. scheduling priorities of the key studies. Marcia Joseph, NAC Administrative participants. The public is invited to submit ideas Officer, NASA Headquarters, Patricia Rausch, to be considered for inclusion in Washington, DC 20546, (202) 358–4717 MSPB’s research agenda by responding Advisory Committee Management Officer, or [email protected]. National Aeronautics and Space to one or more of the following Administration. questions or submitting other pertinent SUPPLEMENTARY INFORMATION: This ideas. meeting will be open to the public up [FR Doc. 2019–10089 Filed 5–14–19; 8:45 am] 1. In your opinion, what is the most to the capacity of the meeting room. BILLING CODE 7510–13–P important issue affecting the This meeting is also available telephonically and by WebEx. You must management of the Federal workforce? NATIONAL AERONAUTICS AND use a touch-tone phone to participate in 2. In your opinion, what is one thing SPACE ADMINISTRATION in the Federal workplace that should be this meeting. Any interested person may done more fairly? dial the toll number 1–630–395–0091 or [Notice: (19–030)] 3. In your opinion, what is one thing toll free number 1–888–935–0264 and in the Federal workplace that should be then the numeric passcode 2976219, National Space-Based Positioning, done more efficiently or effectively? followed by the # sign, on both days. Navigation and Timing Advisory 4. There are several agencies and Note: If dialing in, please ‘‘mute’’ your Board; Meeting organizations involved in Federal phone. To join via WebEx, the link is AGENCY: National Aeronautics and workforce issues and policy, such as the https://nasaenterprise.webex.com/. The Space Administration (NASA). U.S. Office of Personnel Management, meeting number on May 30 is 906 649 ACTION: Notice of meeting. the U.S. Government Accountability 874 and the meeting password is Office, the National Academy of Public MayNAC#530 (case sensitive); the SUMMARY: In accordance with the Administration, and the Partnership for meeting number on May 31 is 908 431 Federal Advisory Committee Act, as Public Service. In your opinion, what 452 and the meeting password is amended, and the President’s 2004 U.S. research could MSPB’s Office of Policy MayNAC#531 (case sensitive). Space-Based Positioning, Navigation and Evaluation conduct that would be and Timing Policy, the National distinct from the work of these and The agenda for the meeting will Aeronautics and Space Administration other agencies and organizations? include reports from the following: (NASA) announces a meeting of the All submissions received may be —Aeronautics Committee National Space-Based Positioning, posted, without change, to MSPB’s Navigation and Timing (PNT) Advisory website (www.mspb.gov) and may —Human Exploration and Operations Board. include any personal information you Committee provide. Therefore, submitting this —Regulatory and Policy Committee DATES: Thursday, June 6, 2019, 8:30 a.m. to 5:30 p.m.; and Friday, June 7, 2019, information makes it public. There is no —Science Committee requirement to include any personal 9:00 a.m. to 1:00 p.m., Eastern Time. information with your submission. —STEM Engagement Committee ADDRESSES: The Westin Hotel, —Technology, Innovation and Alexandria Old Town, 400 Courthouse Jennifer Everling, Engineering Committee Square, Alexandria, VA 22314. Acting Clerk of the Board. Attendees will be requested to sign a FOR FURTHER INFORMATION CONTACT: Mr. [FR Doc. 2019–09991 Filed 5–14–19; 8:45 am] James J. Miller, Designated Federal BILLING CODE 7400–01–P register and to comply with NASA Headquarters security requirements, Officer, Human Exploration and Operations Mission Directorate, NASA including the presentation of a valid Headquarters, Washington, DC 20546, picture ID to NASA Security before NATIONAL AERONAUTICS AND (202) 358–4417, fax (202) 358–4297, or access to NASA Headquarters. Foreign SPACE ADMINISTRATION [email protected]. nationals attending this meeting will be [Notice: (19–031)] required to provide a copy of their SUPPLEMENTARY INFORMATION: The passport and visa in addition to meeting will be open to the public up NASA Advisory Council; Meeting to the seating capacity of the room. providing the following information no Visitors will be requested to sign a AGENCY: National Aeronautics and less than 10 days prior to the meeting: visitor’s register. Space Administration. Full name; gender; date/place of birth; The agenda for the meeting includes citizenship; passport information ACTION: Notice of meeting. the following topics: (number, country, telephone); visa • Examine methods in which to SUMMARY: In accordance with the information (number, type, expiration Federal Advisory Committee Act, as Protect, Toughen, and Augment (PTA) date); employer/affiliation information access to Global Positioning System amended, the National Aeronautics and (name of institution, address, country, Space Administration (NASA) (GPS)/Global Navigation Satellite telephone); title/position of attendee. To Systems (GNSS) services in key announces a meeting of the NASA expedite admittance, attendees that are Advisory Council (NAC). domains for multiple user sectors. U.S. citizens and Permanent Residents • Examine emerging trends and DATES: Thursday, May 30, 2019, 10:30 (green card holders) are requested to requirements for PNT services in U.S. a.m.–4:30 p.m.; and Friday, May 31, provide full name and citizenship status and international fora through PNT 2019, 8:30 a.m.–12:00 noon, Eastern no less than 3 working days prior to the Advisory Board technical assessments, Time. meeting. Information should be sent to including back-up services for ADDRESSES: NASA Headquarters, Ms. Marcia Joseph via email at terrestrial, maritime, aviation, and space Program Review Center (PRC), Room [email protected]. It is users. 9H40, 300 E Street SW, Washington, DC imperative that the meeting be held on • Update on U.S. Space-Based PNT 20546. these dates to accommodate the Policy and GPS modernization.

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• Explore opportunities for enhancing SUPPLEMENTARY INFORMATION: Pursuant Agenda the interoperability of GPS with other to section 10(a)(2) of the Federal Thursday, June 13, 2019 emerging international GNSS. Advisory Committee Act (5 U.S.C. • Prioritize current and planned GPS App.), notice is hereby given of the 8:00 a.m.–11:00 a.m. Open—Review of capabilities and services while assessing following meetings: STROBE STC future PNT architecture alternatives 1. Date: June 20, 2019. This meeting 11:00 a.m.–8:00 p.m. Closed—Executive with a focus on affordability. will discuss applications on the topics Session • Assess economic impacts of GPS/ of Literature, Arts, and Media Studies, Friday, June 14, 2019 GNSS on the United States and in select for the NEH-Mellon Fellowships, 8:00 a.m.—4:00 p.m. Closed—Executive international regions, with a submitted to the Division of Research Session consideration towards effects of Programs. potential PNT service disruptions if 2. Date: June 27, 2019. This meeting Reason for Closing: Topics to be radio spectrum interference is will discuss applications on the topics discussed and evaluated during closed introduced. portions of the site review will include • of History and Area Studies, for the Review the potential benefits, NEH-Mellon Fellowships, submitted to information of a proprietary or perceived vulnerabilities, and any the Division of Research Programs. confidential nature, including technical proposed regulatory constraints to Because these meetings will include information; and information on accessing foreign Radio Navigation review of personal and/or proprietary personnel. These matters are exempt Satellite Service (RNSS) signals in the financial and commercial information under 5 U.S.C. 552b(c), (4) and (6) of the United States and subsequent impacts given in confidence to the agency by Government in the Sunshine Act. on multi-GNSS receiver markets. grant applicants, the meetings will be Dated: May 10, 2019. It is imperative that the meeting be closed to the public pursuant to sections held on these dates to accommodate the Crystal Robinson, 552b(c)(4) and 552b(c)(6) of Title 5, scheduling priorities of the key Committee Management Officer. U.S.C., as amended. I have made this participants. [FR Doc. 2019–10074 Filed 5–14–19; 8:45 am] determination pursuant to the authority BILLING CODE 7555–01–P Patricia Rausch, granted me by the Chairman’s Advisory Committee Management Officer, Delegation of Authority to Close National Aeronautics and Space Advisory Committee Meetings dated NATIONAL SCIENCE FOUNDATION Administration. April 15, 2016. [FR Doc. 2019–10088 Filed 5–14–19; 8:45 am] Dated: May 9, 2019. Proposal Review Panel for Materials Research; Notice of Meeting BILLING CODE 7510–13–P Elizabeth Voyatzis, Committee Management Officer, National In accordance with the Federal Endowment for the Humanities. Advisory Committee Act (Pub., L. 92– NATIONAL FOUNDATION ON THE [FR Doc. 2019–09973 Filed 5–14–19; 8:45 am] 463, as amended), the National Science ARTS AND THE HUMANITIES BILLING CODE 7536–01–P Foundation (NSF) announces the National Endowment for the following meeting: Humanities Name and Committee Code: Proposal NATIONAL SCIENCE FOUNDATION Review Panel for Materials Research Meeting of Humanities Panel (DMR) (#1203)—Platform for the Proposal Review Panel for Materials Accelerated Realization, Analysis, and AGENCY: National Endowment for the Research; Notice of Meeting Discovery of Interface Materials Humanities, National Foundation on the (PARADIM), Materials Innovation Arts and the Humanities. In accordance with the Federal Platform (MIP), Cornell University and ACTION: Notice of meeting. Advisory Committee Act (Pub. L. 92– Johns Hopkins University (Site Visit) 463, as amended), the National Science Date and Time: June 10, 2019; 8:00 SUMMARY: The National Endowment for Foundation (NSF) announces the a.m.–8:00 p.m.; June 11, 2019; 8:00 the Humanities will hold two meetings following meeting: a.m.–3:00 p.m. of the Humanities Panel, a federal Name and Committee Code: Proposal Place: Johns Hopkins University, advisory committee, during June 2019. Review Panel for Materials Research Baltimore, MD 21218. The purpose of the meetings is for panel (DMR) (#1203)—Science and Type of Meeting: Part Open. review, discussion, evaluation, and Technology Center on Real-Time Contact Person: Dr. Charles Ying, recommendation of applications for Functional Imaging (STROBE) (Site Program Director, Division of Materials financial assistance under the National Visit) Research, National Science Foundation, Foundation on the Arts and Humanities Date and Time: June 13, 2019, 8:00 Room E9467, 2415 Eisenhower Avenue, Act of 1965. a.m.–8:00 p.m.; June 14, 2019, 8:00 Alexandria, VA 22314; Telephone: (703) DATES: See SUPPLEMENTARY INFORMATION a.m.–4:00 p.m. 292–8428. for meeting dates. The meetings will Place: STC at University of Colorado Purpose Of Meeting: Site visit to open at 8:30 a.m. and will adjourn by (Boulder), Boulder, Colorado 80303. provide advice and recommendations 5:00 p.m. on the dates specified below. Type of Meeting: Part Open. concerning further support of the MIP at ADDRESSES: The meetings will be held at Contact Person: Dr. Charles Ying, Cornell University and Johns Hopkins Constitution Center, 400 7th Street SW, Program Director, Division of Materials University. Washington, DC 20506, unless Research, National Science Foundation, Agenda otherwise indicated. 2415 Eisenhower Avenue, Alexandria, FOR FURTHER INFORMATION CONTACT: VA 22314; Telephone (703) 292–8428. Monday, June 10, 2019 Elizabeth Voyatzis, Committee Purpose of Meeting: Site Visit to 8:00 a.m.–9:15 a.m. Closed—Executive Management Officer, 400 7th Street SW, provide advice and recommendations Session Room 4060, Washington, DC 20506; concerning progress of the Science and 9:15 a.m.–11:30 a.m. Open—Review of (202) 606–8322; [email protected]. Technology Center (STC). PARADIM MIP

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11:30 a.m.–1:00 p.m. Closed—Executive • Broadening Participation in • NRC’s Agencywide Documents Session Computing update Access and Management System 1:00 p.m.–4:00 p.m. Open—Review of Dated: May 10, 2019. (ADAMS): You may obtain publicly- PARADIM MIP available documents online in the Crystal Robinson, 4:00 p.m.–8:00 p.m. Closed—Executive ADAMS Public Documents collection at Session Committee Management Officer. http://www.nrc.gov/reading-rm/ [FR Doc. 2019–10072 Filed 5–14–19; 8:45 am] adams.htlm. To begin the search, select Tuesday, June 11, 2019 BILLING CODE 7555–01–P ‘‘ADAMS Public Documents’’ and then 8:00 a.m.–3:00 p.m. Closed—Executive select ‘‘Begin Web-based ADAMS Session Search.’’ For problems with ADAMS, Reason for Closing: The work being NUCLEAR REGULATORY please contact the NRC’s Public reviewed during closed portions of the COMMISSION Document Room (PDR) reference staff at site review includes information of a 1–800–397–4209, 301–415–4737, or by proprietary or confidential nature, [NRC–2019–0021] email to [email protected]. A copy including technical information; Information Collection: Billing of the collection of information and financial data, such as salaries and Instructions for NRC Cost Type related instructions may be obtained personal information concerning Contract/Orders without charge by accessing ADAMS individuals associated with PARADIM/ Accession No. ML19116A165. The MIP. These matters are exempt under 5 AGENCY: Nuclear Regulatory supporting statement and Billing U.S.C. 552b(c), (4) and (6) of the Commission. Instructions for NRC Cost Type Government in the Sunshine Act. ACTION: Notice of submission to the Contracts/Orders is available in ADAMS Dated: May 10, 2019. Office of Management and Budget; under Accession No. ML19115A277. • Crystal Robinson, request for comment. NRC’s PDR: You may examine and purchase copies of public documents at Committee Management Officer. SUMMARY: The U.S. Nuclear Regulatory the NRC’s PDR, Room 0 1–F21, One [FR Doc. 2019–10073 Filed 5–14–19; 8:45 am] Commission (NRC) has recently White Flint North, 11555 Rockville BILLING CODE 7555–01–P submitted a request for renewal of an Pike, Rockville, Maryland 20852. existing collection of information to the • NRC’s Clearance Officer: A copy of the collection of information and related NATIONAL SCIENCE FOUNDATION Office of Management and Budget (OMB) for review. The information instructions may be obtained without Advisory Committee for Computer and collection is entitled, ‘‘Billing charge by contacting the NRC’s Information Science and Engineering; Instructions for NRC Cost Type Clearance Officer, David Cullison, Notice of Meeting Contract/Orders.’’ Office of the Chief Information Officer, DATES: Submit comments by June 14, U.S. Nuclear Regulatory Commission, In accordance with the Federal 2019. Washington, DC 20555–0001; telephone: Advisory Committee Act (Pub. L. 92– 301–415–2084; email: 463, as amended), the National Science ADDRESSES: Submit comments directly [email protected]. Foundation (NSF) announces the to the OMB reviewer at: OMB Office of B. Submitting Comments following meeting: Information and Regulatory Affairs Name and Committee Code: Advisory (Docket ID NRC–2019–0021), Attn: Desk The NRC cautions you not to include Committee for Computer and Officer for the Nuclear Regulatory identifying or contact information in Information Science and Engineering Commission, 725 17th Street NW, comment submissions that you do not (CISE) (1115). Washington, DC 20503; email: oira_ want to be publicly disclosed in your Date and Time: June 6, 2019: 12:30 [email protected]. comment submission. All comment p.m. to 5:30 p.m.; June 7, 2019: 8:30 FOR FURTHER INFORMATION CONTACT: submissions are posted at http:// a.m. to 12:30 p.m. David Cullison, NRC Clearance Officer, www.regulations.gov and entered into Place: National Science Foundation, U.S. Nuclear Regulatory Commission, ADAMS. Comment submissions are not 2415 Eisenhower Avenue, Room C2020, Washington, DC 20555–0001; telephone: routinely edited to remove identifying Alexandria, VA 22314. 301–415–2084; email: or contact information. Type of Meeting: OPEN. [email protected]. If you are requesting or aggregating Contact Person: Brenda Williams, SUPPLEMENTARY INFORMATION: comments from other persons for National Science Foundation, 2415 submission to the OMB, then you Eisenhower Avenue, Alexandria, VA I. Obtaining Information and should inform those persons not to 22314; Telephone: 703–292–8900. Submitting Comments include identifying or contact Purpose of Meeting: To advise NSF on A. Obtaining Information information that they do not want to be the impact of its policies, programs and publicly disclosed in their comment activities on the CISE community. To Please refer to Docket ID NRC–2019– submission. Your request should state provide advice to the Assistant Director 0021 when contacting the NRC about that comment submissions are not for CISE on issues related to long-range the availability of information for this routinely edited to remove such planning, and to form ad hoc action. You may obtain publicly- information before making the comment subcommittees and working groups to available information related to this submissions available to the public or carry out needed studies and tasks. action by any of the following methods: entering the comment into ADAMS. • Federal Rulemaking Website: Go to Agenda http://www.regulations.gov and search II. Background • NSF and CISE updates for Docket ID NRC–2019–0021. A copy Under the provisions of the • Discussion on NSF Convergence of the collection of information and Paperwork Reduction Act of 1995 (44 Accelerator related instructions may be obtained U.S.C. Chapter 35), the NRC recently • Discussion and updates on NSF without charge by accessing Docket ID submitted a request for renewal of an INCLUDES NRC–2019–0021 on this website. existing collection of information to

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OMB for review entitled, ‘‘Billing SUMMARY: The U.S. Nuclear Regulatory ‘‘ADAMS Public Documents’’ and then Instructions for NRC Cost Type Commission (NRC) invites public select ‘‘Begin Web-based ADAMS Contracts/Orders.’’ The NRC hereby comment on the renewal of Office of Search.’’ For problems with ADAMS, informs potential respondents that an Management and Budget (OMB) please contact the NRC’s Public agency may not conduct or sponsor, and approval for an existing collection of Document Room (PDR) reference staff at that a person is not required to respond information. The information collection 1–800–397–4209, 301–415–4737, or by to, a collection of information unless it is entitled, ‘‘Generic Clearance for the email to [email protected]. The displays a currently valid OMB control Collection of Qualitative Feedback on supporting statement is available in number. Agency Service Delivery.’’ ADAMS under Accession The NRC published a Federal DATES: Submit comments by July 15, ML19098A872. Register notice with a 60-day comment 2019. Comments received after this date • NRC’s PDR: You may examine and period on this information collection on will be considered if it is practical to do purchase copies of public documents at February 15, 2019, 84 FR 4546. so, but the Commission is able to ensure the NRC’s PDR, Room O1–F21, One 1. The title of the information consideration only for comments White Flint North, 11555 Rockville collection: Billing Instructions for NRC received on or before this date. Pike, Rockville, Maryland 20852. • Cost Type Contract/Orders. ADDRESSES: You may submit comments NRC’s Clearance Officer: A copy of 2. OMB approval number: 3150–0109. by any of the following methods: the collection of information and related 3. Type of submission: Extension. • Federal Rulemaking Website: Go to instructions may be obtained without 4. The form number if applicable: http://www.regulations.gov and search charge by contacting NRC’s Clearance N/A. for Docket ID NRC–2019–0095. For Officer, David Cullison, Office of the 5. How often the collection is required technical questions, contact the Chief Information Officer, U.S. Nuclear or requested: Monthly and on occasion. individual listed in the FOR FURTHER Regulatory Commission, Washington, 6. Who will be required or asked to INFORMATION CONTACT section of this DC 20555–0001; telephone: 301–415– respond: NRC Contractors. document. 2084; email: Infocollects.Resource@ 7. The estimated number of annual • Mail comments to: David Cullison, nrc.gov. responses: 696. Office of the Chief Information Officer, B. Submitting Comments 8. The estimated number of annual Mail Stop: O–1 F21, U.S. Nuclear respondents: 23. Regulatory Commission, Washington, Please include Docket ID NRC–2019– 9. An estimate of the total number of DC 20555–0001. 0095 in the subject line of your hours needed annually to comply with For additional direction on obtaining comment submission, in order to ensure the information collection requirement information and submitting comments, that the NRC is able to make your or request: 348. see ‘‘Obtaining Information and comment submission available to the 10. Abstract: In administering its Submitting Comments’’ in the public in this docket. contracts, the NRC Acquisition SUPPLEMENTARY INFORMATION section of The NRC cautions you not to include Management Division provides billing this document. identifying or contact information in instructions for its contractors to follow FOR FURTHER INFORMATION CONTACT: comment submissions that you do not in preparing invoices. These David Cullison, Office of the Chief want to be publicly disclosed in your instructions stipulate the level of detail Information Officer, U.S. Nuclear comment submission. The NRC will in which supporting data must be Regulatory Commission, Washington, post all comment submissions at http:// submitted for NRC review. The review DC 20555–0001; telephone: 301–415– www.regulations.gov as well as enter the of this information ensures that all 2084; email: Infocollects.Resource@ comment submissions into ADAMS, payments made by NRC for valid and nrc.gov. and the NRC does not routinely edit reasonable costs are in accordance with comment submissions to remove the contract terms and conditions. SUPPLEMENTARY INFORMATION: identifying or contact information. Dated at Rockville, Maryland, this 9th day I. Obtaining Information and If you are requesting or aggregating of May 2019. Submitting Comments comments from other persons for For the Nuclear Regulatory Commission. submission to the NRC, then you should A. Obtaining Information David C. Cullison, inform those persons not to include NRC Clearance Officer, Office of the Chief Please refer to Docket ID NRC–2019– identifying or contact information that Information Officer. 0095 when contacting the NRC about they do not want to be publicly [FR Doc. 2019–09963 Filed 5–14–19; 8:45 am] the availability of information for this disclosed in their comment submission. Your request should state that the NRC BILLING CODE 7590–01–P action. You may obtain publicly- available information related to this does not routinely edit comment action by any of the following methods: submissions to remove such information NUCLEAR REGULATORY • Federal Rulemaking Website: Go to before making the comment COMMISSION http://www.regulations.gov and search submissions available to the public or for Docket ID NRC–2019–0095. A copy entering the comment into ADAMS. [NRC–2019–0095] of the collection of information and II. Background related instructions may be obtained Information Collection: Generic without charge by accessing Docket ID In accordance with the Paperwork Clearance for the Collection of NRC–2019–0095 on this website. Reduction Act of 1995 (44 U.S.C. Qualitative Feedback on Agency • NRC’s Agencywide Documents Chapter 35), the NRC is requesting Service Delivery Access and Management System public comment on its intention to AGENCY: Nuclear Regulatory (ADAMS): You may obtain publicly- request the OMB’s approval for the Commission. available documents online in the information collection summarized ADAMS Public Documents collection at below. ACTION: Renewal of existing information http://www.nrc.gov/reading-rm/ 1. The title of the information collection; request for comment. adams.html. To begin the search, select collection: Generic Clearance for the

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Collection of Qualitative Feedback on fielding the study. Depending on the • Mail or Hand Delivery: Regulatory Agency Service Delivery. degree of influence the results are likely Affairs Division, Office of the General 2. OMB approval number: 3150–0217. to have, such collections may still be Counsel, Pension Benefit Guaranty 3. Type of submission: Extension. eligible for submission for other generic Corporation, 1200 K Street NW, 4. The form number, if applicable: mechanisms that are designed to yield Washington, DC 20005–4026. Not applicable. quantitative results. All submissions received must 5. How often the collection is required include the agency’s name (Pension III. Specific Requests for Comments or requested: On occasion and annually. Benefit Guaranty Corporation, or PBGC) 6. Who will be required or asked to The NRC is seeking comments that and refer to the Notices Under Section respond: Individuals and households; address the following questions: 4062(e) of ERISA. All comments businesses and organizations; State, 1. Is the proposed collection of received will be posted without change Local, or Tribal governments. information necessary for the NRC to to PBGC’s website, http:// 7. The estimated number of annual properly perform its functions? Does the www.pbgc.gov, including any personal responses: 4,200. information have practical utility? 8. The estimated number of annual information provided. 2. Is the estimate of the burden of the Copies of the collection of respondents: 4,200. information collection accurate? 9. The estimated number of hours information may be obtained by writing 3. Is there a way to enhance the to Disclosure Division, Office of the needed annually to comply with the quality, utility, and clarity of the information collection requirement or General Counsel, Pension Benefit information to be collected? Guaranty Corporation, 1200 K Street request: 1,087.5. 4. How can the burden of the 10. Abstract: The information NW, Washington, DC 20005–4026, or information collection on respondents calling 202–326–4040 during normal collection activity will garner be minimized, including the use of qualitative customer and stakeholder business hours. TTY users may call the automated collection techniques or Federal Relay Service toll-free at 800– feedback in an efficient, timely manner, other forms of information technology? for the purpose of improving service 877–8339 and ask to be connected to delivery. By qualitative feedback we Dated at Rockville, Maryland, this 9th day 202–326–4040. of May 2019. mean information that provides useful FOR FURTHER INFORMATION CONTACT: For the Nuclear Regulatory Commission. insights on perceptions and opinions, Melissa Rifkin (rifkin.melissa@ but are not statistical surveys that yield David C. Cullison, pbgc.gov), Attorney, Regulatory Affairs quantitative results that can be NRC Clearance Officer, Office of the Chief Division, Office of the General Counsel, generalized to the population of study. Information Officer. Pension Benefit Guaranty Corporation, This feedback will provide insights into [FR Doc. 2019–09968 Filed 5–14–19; 8:45 am] 1200 K Street NW, Washington, DC customer or stakeholder perceptions, BILLING CODE 7590–01–P 20005–4026; 202–326–4400, extension experiences and expectations, provide 6563; or Erika E. Barnes (barnes.erika@ an early warning of issues with service, pbgc.gov), Assistant General Counsel, or focus attention on areas where PENSION BENEFIT GUARANTY Bankruptcy, Transactions, and communication, training or changes in CORPORATION Terminations Department, Office of the operations might improve delivery of General Counsel, Pension Benefit products or services. These collections Proposed Submission of Information Guaranty Corporation, 1200 K Street will allow for ongoing, collaborative and Collection for OMB Review; Comment NW, Washington, DC 20005–4026; 202– actionable communications between the Request; Notices Under Section 326–4400, extension 3460. (TTY users Agency and its customers and 4062(e) of ERISA may call the Federal Relay Service toll- stakeholders. It will also allow feedback AGENCY: Pension Benefit Guaranty free at 800–877–8339 and ask to be to contribute directly to the Corporation. connected to 202–326–4400, extension 6563 or extension 3460.) improvement of program management. ACTION: Notice of intent to request OMB Feedback collected under this generic approval of information collection. SUPPLEMENTARY INFORMATION: Section clearance will provide useful 4062(e) of the Employee Retirement information, but it will not yield data SUMMARY: The Pension Benefit Guaranty Income Security Act of 1974 (ERISA) that can be generalized to the overall Corporation (PBGC) intends to request imposes reporting obligations in the population. This type of generic that the Office of Management and event of a ‘‘substantial cessation of clearance for qualitative information Budget (OMB) approve under the operations.’’ A substantial cessation of will not be used for quantitative Paperwork Reduction Act a collection of operations occurs when a permanent information collections that are information that is necessary to fulfill cessation at a facility causes a designed to yield reliably actionable various reporting obligations following a separation from employment of more results, such as monitoring trends over cessation of operations at a facility. This than 15 percent of all ‘‘eligible time or documenting program notice informs the public of PBGC’s employees.’’ ‘‘Eligible employees’’ are performance. Such data uses require intent and solicits public comment on employees eligible to participate in any more rigorous designs that address: The the collection of information. of the facility’s employer’s employee target population to which DATES: Comments must be received on pension benefit plans. Following a generalizations will be made, the or before July 15, 2019 to be assured of substantial cessation of operations, the sampling frame, the sample design consideration. facility’s employer is treated, with (including stratification and clustering), ADDRESSES: Comments may be respect to its single employer pension the precision requirements or power submitted by any of the following plans covered by title IV of ERISA that calculations that justify the proposed methods: are covering participants at the facility, sample size, the expected response rate, • Federal eRulemaking Portal: http:// as if the employer were a withdrawing methods for assessing potential www.regulations.gov. Follow the substantial employer under a multiple- nonresponse bias, the protocols for data instructions for submitting comments. employer plan. Under section 4063(a) of collection, and any testing procedures • Email: paperwork.comments@ ERISA, the Pension Benefit Guaranty that were or will be undertaken prior to pbgc.gov. Corporation (PBGC) must receive notice

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of the substantial cessation of operations supervisory time is $23,625. PBGC Section 6 of the Act.1 In a letter dated and a request to determine the estimates a total annual cost burden of December 4, 2018, LTSE consented to employer’s resulting liability. $92,750 (based on 265 professional an extension of time for up to an To fulfill such resulting liability, the hours assuming an average hourly rate additional 90 days from the date of employer may elect, under section of $350). publication of notice of LTSE’s Form 1 4062(e)(4)(A), to make additional PBGC intends to request that OMB application.2 Notice of the application contributions annually for seven years approve PBGC’s use of this form for was published for comment in the to plans covering participants at the three years. An agency may not conduct Federal Register on December 6, 2018.3 facility where the substantial cessation or sponsor, and a person is not required The Commission has received one of operations took place. Under sections to respond to, a collection of comment letter on the application.4 On 4062(e)(4)(E)(i)(I) (II), (III), (IV), and (V) information unless it displays a February 26, 2019, LTSE submitted respectively, an employer that is making currently valid OMB control number. Amendment No. 1 to the application.5 the election for annual additional PBGC is soliciting public comments On April 3, 2019, LTSE submitted contributions must give notice to PBGC to— Amendment No. 2 to the application.6 of: (1) Its decision to make the election, • Evaluate whether the proposed The Commission has reviewed the (2) its payment of an annual collection of information is necessary Exchange’s registration application, as contribution, (3) its failure to pay an for the proper performance of the amended, together with the comment annual contribution, (4) its receipt of a functions of the agency, including letter received, in order to make a funding waiver from the Internal whether the information will have determination whether to grant such Revenue Service, and (5) the ending of practical utility; registration. For the reasons set forth its obligation to make additional annual • Evaluate the accuracy of the below, and based on the representations contributions. agency’s estimate of the burden of the set forth in LTSE’s Form 1, as amended, PBGC is proposing a new form series, proposed collection of information, this order approves LTSE’s Form 1 consisting of Form 4062(e)–01, Form including the validity of the application, as amended, for registration 4062(e)–02, Form 4062(e)–03, and Form methodologies and assumptions used; as a national securities exchange. 4062(e)–04, that would be used to fulfill • Enhance the quality, utility, and II. Statutory Standards these reporting obligations. An clarity of the information to be Pursuant to Sections 6(b) and 19(a) of employer or a plan administrator would collected; and the Act,7 the Commission shall by order file Form 4062(e)–01 to notify PBGC of • Minimize the burden of the grant an application for registration as a the occurrence of a substantial cessation collection of information on those who national securities exchange if the of operations and request a are to respond, including through the Commission finds, among other things, determination of the employer’s use of appropriate automated, liability. An employer would file Form that the proposed exchange is so electronic, mechanical, or other 4062(e)–02 to notify PBGC that it made organized and has the capacity to carry technological collection techniques or the elections to pay annual additional out the purposes of the Act and can other forms of information technology, contributions to a plan. An employer comply, and can enforce compliance by e.g. permitting electronic submission of would file Form 4062(e)–03 to notify its members and persons associated responses. PBGC that it paid an annual additional with its members, with the provisions of contribution, received a funding waiver Issued in Washington, DC. the Act, the rules and regulations from the Internal Revenue Service, or is Hilary Duke, thereunder, and the rules of the no longer obligated to pay additional Assistant General Counsel for Regulatory exchange. annual contributions. Finally, an Affairs, Pension Benefit Guaranty As discussed in greater detail below, employer would file Form 4062(e)–04 to Corporation. the Commission finds that LTSE’s notify PBGC that it failed to pay an [FR Doc. 2019–09989 Filed 5–14–19; 8:45 am] application, as amended, for exchange additional annual contribution to the BILLING CODE 7709–02–P registration meets the requirements of plan. the Act and the rules and regulations PBGC needs the requested thereunder. Further, the Commission information in the forms and SECURITIES AND EXCHANGE notification (1) to determine an 1 COMMISSION 15 U.S.C. 78f. employer’s liability to a plan following 2 See Letter to Brett Redfearn, Director, Division of Trading and Markets, Commission, from Eric a substantial cessation of operations and [Release No. 34–85828; File No. 10–234] (2) to ensure that an employer that made Ries, dated December 4, 2018. 3 See Securities Exchange Act Release No. 84709 the election of additional annual In the Matter of the Application of Long (November 30, 2018), 83 FR 62941 (‘‘Notice’’). contributions is fulfilling its payment Term Stock Exchange, Inc.; for 4 See Letter to Brent J. Fields, Secretary, obligations. Registration as a National Securities Commission, from Jeffrey P. Mahoney, General PBGC estimates that 70 forms/ Exchange; Findings, Opinion, and Counsel, Council of Institutional Investors, dated notifications (10 Forms 4062(e)–01, 10 January 22, 2019, available at: https://www.sec.gov/ Order of the Commission comments/10-234/10234-4844313-177202.pdf (‘‘CII Forms 4062(e)–02, 49 Forms 4062(e)–03, Letter’’). and one Form 4062(e)–04) would be May 10, 2019. 5 See Letter to Brett Redfearn, Director, Division submitted each year. PBGC estimates I. Introduction and Procedural History of Trading and Markets, Commission, from Annette that these forms would be completed by L. Nazareth, dated February 26, 2019. In On November 9, 2018, Long-Term Amendment No. 1, LTSE submitted updated a combination of plan office staff and portions of its Form 1, including revised Exhibits outside professionals (attorneys and Stock Exchange, Inc. (‘‘LTSE’’ or A, B, C, D, E, I, J and K. actuaries). PBGC estimates a total ‘‘Exchange’’) filed with the Securities 6 See Letter to Brett Redfearn, Director, Division annual hour burden of 315 hours (based and Exchange Commission of Trading and Markets, Commission, from Annette on plan office time). The estimated (‘‘Commission’’) a Form 1 application L. Nazareth, dated April 3, 2019. In Amendment under the Securities Exchange Act of No. 2, LTSE updated portions of its Form 1, dollar equivalent of this hour burden, including revised Exhibits A, B, C, D, H, and J. based on an assumed hourly rate of $75 1934 (‘‘Act’’), seeking registration as a 7 15 U.S.C. 78f(b) and 15 U.S.C. 78s(a), for administrative, clerical, and national securities exchange under respectively.

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finds that the proposed rules of LTSE contemplated that the Exchange will of stockholders.24 The first annual are consistent with Section 6 of the Act maintain a commercial relationship meeting of stockholders will be held in that, among other things, they are with LTSE Services, seeking to leverage prior to LTSE’s commencement of designed to: (1) Assure fair the company’s technological expertise operations as an Exchange.25 representation of the exchange’s to support the Exchange’s software In addition, LTSEG will appoint the members in the selection of its directors needs. initial Nominating Committee and and administration of its affairs and Member Nominating Committee, 1. LTSE Board of Directors provide that, among other things, one or consistent with each committee’s more directors shall be representative of The board of directors of LTSE compositional requirements, to investors and not be associated with the (‘‘Exchange Board’’) 16 will be its nominate candidates for election to the exchange, or with a broker or dealer; 8 governing body and will possess all of Exchange Board.26 The Nominating (2) prevent fraudulent and manipulative the powers necessary for the Committee and Member Nominating acts and practices, promote just and management of its business and affairs, Committee, after completion of their equitable principles of trade, foster including governance of LTSE as a self- respective duties for nominating cooperation and coordination with regulatory organization (‘‘SRO’’).17 directors for election to the Board for persons engaged in regulating, clearing, Pursuant to the LTSE Bylaws: that year, will recommend candidates to • settling, processing information with The Exchange Board initially will serve on the succeeding year’s respect to, and facilitating transactions be composed of 6 or more directors; 18 Nominating Committee or Member • in securities, and remove impediments one director will be the Chief Nominating Committee, as applicable.27 Executive Officer of LTSE; 19 LTSE members will have rights to to and perfect the mechanisms of a free • and open market and a national market the number of Non-Industry nominate and elect additional 20 system; 9 (3) not permit unfair Directors, including at least one candidates for the Member Nominating 21 discrimination between customers, Independent Director, will equal or Committee pursuant to a petition issuers, or dealers; 10 and (4) protect exceed the sum of the Industry process.28 22 investors and the public interest.11 The Directors and Member Representative The Nominating Committee will 23 Commission also finds that the rules of Directors; and nominate candidates for election to the • at least 20% of the directors on the LTSE are consistent with Section 11A of Board at the annual stockholder meeting Exchange Board will be Member the Act.12 Finally, the Commission finds and all other vacant or new Director Representative Directors. 29 that LTSE’s proposed rules do not positions on the Board. For Member The initial Directors of the Exchange impose any burden on competition not Representative Director positions, the Board will be appointed by LTSEG and necessary or appropriate in furtherance Member Nominating Committee, will serve until the first annual meeting of the purposes of the Act.13 composed solely of Member Representative Members, will solicit III. Discussion 16 A Director may not be subject to statutory disqualification. See First Amended and Restated input from LTSE members and members 30 A. Governance of LTSE Bylaws of Long-Term Stock Exchange, Inc. (‘‘LTSE may submit petition candidates. If no Bylaws’’), Article III, Section 3.2(d). candidates are nominated pursuant to a LTSE Group, Inc. (‘‘LTSEG’’), a 17 See LTSE Bylaws, Article III, Section 3.1. See petition process, then the initial Delaware corporation, will own 100% of also Form 1, Exhibit J. nominees approved and submitted by the equity of LTSE and is the entity 18 See LTSE Bylaws, Article III, Section 3.2(a). See the Member Nominating Committee will through which the individual investors also Form 1, Exhibit A. be nominated as Member Representative who are ultimate owners of the 19 See LTSE Bylaws, Article III, Section 3.2(b). 20 Directors by the Nominating Exchange will hold their ownership ‘‘Non-Industry Director’’ means a Director who is an Independent Director or any other individual Committee.31 If a petition process interests in the Exchange.14 LTSEG will who would not be an Industry Director. See LTSE produces additional candidates, then be the primary employer of all LTSE Bylaws, Article I, Section (v). the candidates nominated pursuant to personnel. In addition, the stockholders 21 ‘‘Independent Director’’ means a Director who the petition process, together with those who directly own LTSEG also will has no material relationship with the Exchange or nominated by the Member Nominating directly own a separate, affiliated any affiliate of the Exchange or any Exchange Member or any affiliate of any Exchange Member; Committee, will be presented to LTSE Delaware-incorporated entity, LTSE provided, however, that an individual who members for election to determine the Services, Inc. (‘‘LTSE Services’’), a otherwise qualifies as an Independent Director shall final designees for any open Member software business currently serving not be disqualified from serving in such capacity Representative Director positions.32 In approximately 20,000 users, mostly solely because such Director is a Director of LTSE or LTSEG. See LTSE Bylaws, Article I, Section (m). the event of a contested election, the early stage companies.15 It is 22 ‘‘Industry Director’’ means, among other candidates who receive the most votes criteria, a Director who is or has been within the will be selected as the Member 8 See U.S.C. 78f(b)(3). prior three years an officer, director or employee of 9 See U.S.C. 78f(b)(5). a broker or dealer, excluding an outside director or Representative Director designees by the 33 10 See id. a director not engaged in the day-to-day Member Nominating Committee. 11 See id. management of a broker or dealer. See LTSE The Commission believes that the 12 15 U.S.C. 78k–1. Bylaws, Article I, Section (o), for a description of LTSE governance provisions are 13 15 U.S.C. 78f(b)(8). all of the circumstances regarding when a Director consistent with the Act. In particular, would be considered an Industry Director. 14 See Form 1, Exhibit C. The citations to the the Commission believes that the Exchange’s Form 1 and its Exhibits hereinafter in 23 ‘‘Member Representative Director’’ means a this Order refer to the Form 1 application and its Director who has been appointed as such to the Exhibits, as amended. initial Exchange Board pursuant to Article III, 24 See LTSE Bylaws, Article III, Section 3.4(g). 15 As described by the Exchange, LTSE Services Section 3.4(g) of the Bylaws or elected by 25 See LTSE Bylaws, Article IV, Section 4.1(b). provides tools to companies and investors designed stockholders after having been nominated by the 26 See LTSE Bylaws, Article VI, Section 6.1. to help founders and their employees through all Member Nominating Committee or by an Exchange 27 Id. stages of a company’s life cycle and currently Member pursuant to the Bylaws and confirmed as 28 See LTSE Bylaws, Article III, Section 3.4 the nominee of Exchange Members after majority focuses on creating user-friendly software products 29 See LTSE Bylaws, Article VI, Section 6.2. for its clients that drive financial and other vote of Exchange Members, if applicable. A Member 30 See LTSE Bylaws, Article III, Section 3.4. solutions that can be specialized or scaled for broad Representative Director must be an officer, director, 31 commercial application, and continues to develop employee, or agent of an Exchange Member that is See LTSE Bylaws, Article III, Section 3.4(e). new products that provide value to companies in not a Stockholder Exchange Member. See LTSE 32 Id. different stages of their life cycles. Id. Bylaws, Article I, Section (s). 33 See LTSE Bylaws, Article III, Section 3.4(f).

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requirement in the LTSE Bylaws that issues in a non-discriminatory fashion the Audit Committee must be an the number of Member Representative and foster the integrity of the Exchange. Independent Director.46 Directors must be at least 20% of the Because the Executive Committee will Board and the means by which they will 2. Interim Board have the powers and authority of the be chosen by LTSE members provide for LTSEG, as the sole stockholder of the Exchange Board in the management of the fair representation of members in Exchange, will appoint Interim the business and affairs of the Exchange between meetings of the Exchange the selection of directors and the Directors of the Board (‘‘Interim Board’’) Board, its composition must reflect that administration of LTSE and therefore at a special meeting of the stockholder, of the Exchange Board. Accordingly, the are consistent with Section 6(b)(3) of the which will include Interim Member 34 number of Non-Industry Directors on Act. As the Commission has Representative Directors.38 Upon the Executive Committee must equal or previously noted, this requirement appointment of the Interim Directors by exceed the number of Industry Directors helps to ensure that members have a the stockholder, the Interim Board will voice in an exchange’s self-regulatory and the percentages of Independent meet the Board composition Directors and Member Representative program, and that an exchange is requirements set forth in the LTSE administered in a way that is equitable 39 Directors on the Executive Committee Bylaws. The Interim Board members must be at least as great as the to all those who trade on its market or will serve only until the first annual 35 corresponding percentages of each such through its facilities. meeting of the stockholders, which will In addition, with respect to the class of Directors on the Exchange Board be held prior to the company’s as a whole.47 requirement that the number of Non- commencement of operations as an Industry Directors, including at least The Commission believes that LTSE’s Exchange.40 The Exchange represents proposed committees, which are similar one Independent Director, will equal or that it will complete the full exceed the sum of the number of to the committees maintained by other nomination, petition, and voting process exchanges,48 are designed to help Industry Directors and Member set forth in the LTSE Bylaws, which will Representative Directors, the enable the Exchange to carry out its provide persons that are approved as responsibilities under the Act and are Commission believes that the proposed LTSE members after the date that the composition of the Exchange Board consistent with the Act, including Commission grants the Exchange’s Section 6(b)(1), which requires, in part, satisfies the requirements in Section registration as a national securities 36 an exchange to be so organized and have 6(b)(3) of the Act, which require in exchange with the opportunity to part that one or more directors be the capacity to carry out the purposes of participate in the selection of Member the Act.49 representative of issuers and investors Representative Directors as promptly as and not be associated with a member of possible after the effective date of the B. LTSE Group and Regulation of the the exchange, or with a broker or dealer. Bylaws.41 Exchange The Commission previously has stated When LTSE commences operations as that the inclusion of public, non- 3. Exchange Committees a national securities exchange, it will industry representatives on exchange have all of the attendant regulatory oversight bodies is an important LTSE has proposed to establish several committees of the Exchange obligations under the Act. In particular, mechanism to support an exchange’s LTSE will be responsible for the ability to protect the public interest.37 Board. Specifically, LTSE has proposed to establish the following committees of operation and regulation of its trading Further, the presence of public, non- system and the regulation of its industry representatives can help to the Exchange Board: an Audit Committee, an Appeals Committee, and members. The Commission believes that ensure that no single group of market certain provisions in the LTSE and participants has the ability to a Regulatory Oversight Committee, as well as a Compensation Committee.42 In LTSEG governing documents are systematically disadvantage other designed to facilitate the ability of LTSE market participants through the addition, LTSE has proposed to establish a Nominating Committee and to fulfill its regulatory obligations and to exchange governance process. The help facilitate Commission oversight of Commission believes that public a Member Nominating Committee, as discussed above. LTSE. The discussion below directors can provide unbiased summarizes some of these key perspectives, which may enhance the The Appeals Committee will consist provisions. ability of the Exchange Board to address of two Independent Directors, and one Member Representative Director.43 Each 1. Ownership Structure; Ownership and 34 15 U.S.C. 78f(b)(3). member of the Regulatory Oversight Voting Limitations 35 See, e.g., Securities Exchange Act Release Nos. Committee must be an Independent As stated above, LTSE will be wholly 79543 (December 13, 2016), 81 FR 92901, 92903 Director.44 Each voting member of the owned by LTSEG. The proposed (December 20, 2016) (File No. 10–227) (order granting registration of MIAX PEARL, LLC) (‘‘MIAX Compensation Committee must be an Amended and Restated Certificate of 45 PEARL Order’’); 68341 (December 3, 2012), 77 FR Independent Director. Each member of Incorporation of LTSEG (‘‘LTSEG 73065, 73067 (December 7, 2012) (File No. 10–207) Certificate’’) includes restrictions on the (order granting the registration of Miami 38 See Form 1, Exhibit J. See also LTSE Bylaws, ability to own and vote shares of capital International Securities Exchange, LLC (‘‘MIAX Article III, Section 3.2 (stating that the Exchange Exchange’’)) (‘‘MIAX Order’’); 58375 (August 18, Board shall consist of five (6) or more Directors). 2008), 73 FR 49498, 49501 (August 21, 2008) (File 46 See LTSE Bylaws, Article V, Section 5.6(b). See 39 See Form 1, Exhibit J. No. 10–182) (order granting the registration of also LTSE Bylaws, Article III, Section 3.18(a) 40 BATS Exchange, Inc.) (‘‘BATS Order’’); and 53128 Id. regarding the potential role of the Audit Committee (January 13, 2006), 71 FR 3550, 3553 (January 23, 41 Id. in conflict of interest matters. 2006) (File No. 10–131) (granting the exchange 42 See LTSE Bylaws, Article V, Sections 5.1 and 47 See LTSE Bylaws, Article V, Section 5.6(e). registration of Nasdaq Stock Market, Inc.) (‘‘Nasdaq 5.6(a). If no Compensation Committee is elected, 48 See, e.g., Securities Exchange Act Release No. Order’’). reference to the Compensation Committee shall 78101 (June 17, 2016), 81 FR 41141 (June 23, 2016) 36 15 U.S.C. 78f(b)(3). refer to the entire Board. See LTSE Bylaws, Article (File No. 10–222) (order granting the registration of 37 See, e.g., MIAX PEARL Order, supra note 35, V, Section 5.6(a). Investors’ Exchange, LLC) (‘‘IEX Order’’); Nasdaq at 92903; MIAX Order, supra note 35, at 73067; 43 See LTSE Bylaws, Article V, Section 5.6(d). Order, supra note 35; and BATS Order, supra note BATS Order, supra note 35, at 49501; and Nasdaq 44 See LTSE Bylaws, Article V, Section 5.6(c). 35. Order, supra note 35, at 3553. 45 See LTSE Bylaws, Article V, Section 5.6(a). 49 15 U.S.C. 78f(b)(1).

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stock of LTSEG.50 These limitations are In addition, no Person, alone or The board of directors of LTSEG designed to prevent any LTSEG together with its Related Persons, will (‘‘LTSEG Board’’) will be permitted to shareholder from exercising undue be entitled to vote or cause the voting waive the 40% ownership limitation control over the operation of the of shares of the capital stock of LTSEG, and the 20% voting limitation for non- Exchange and to ensure that the in person or by proxy or through any members of the Exchange, pursuant to a Exchange and the Commission are able voting agreement or other arrangement, resolution duly adopted by the LTSEG to carry out their regulatory obligations to the extent that such shares represent Board, if it makes certain under the Act. in the aggregate more than 20% of the determinations.59 Any such waiver will In particular, for so long as LTSEG voting power of the then issued and not be effective unless and until shall control, directly or indirectly, a outstanding capital stock of LTSEG approved by the Commission.60 The national securities exchange, no (‘‘Voting Limitation’’), and LTSEG will LTSEG Board is specifically precluded Person,51 either alone or together with disregard any such votes purported to from waiving the 20% voting and its Related Persons,52 will be permitted be cast in excess of the Voting ownership limits described above for to beneficially own, directly or Limitation.56 Further, if any Person, members of the Exchange and their indirectly, of record or beneficially, either alone or together with its Related Related Persons.61 shares constituting more than 40% of Persons, is a party to any agreement, Any person that proposes to own any class of capital stock of LTSEG.53 A plan or other arrangement relating to shares of capital stock of LTSEG in more restrictive condition will apply to shares of stock of LTSEG entitled to vote excess of the 40% ownership limitation, members of the Exchange, who will be in any matter with any other Person, or vote or cause the voting of shares of prohibited from beneficially owning, either alone or together with its Related capital stock of LTSEG in person or by directly or indirectly, either alone or Persons, under circumstances that proxy or through any voting agreement together with their Related Persons, would result in the shares of capital or other arrangement in excess of the more than 20% of shares of any class of stock of LTSEG that are subject to such Voting Limitation or Recalculated capital stock of LTSEG.54 If any agreement, plan or other arrangement Voting Limitation, as applicable, will be stockholder purports to sell, transfer, not being voted on any matter or matters required to deliver written notice to the assign, pledge, or own any shares of or any proxy relating thereto being LTSEG Board of its intention.62 The LTSEG in violation of these ownership withheld, where the effect of such notice must be delivered to the LTSEG limits, LTSEG will be required (to the agreement, plan or other arrangement Board not less than 45 days (or any extent funds are legally available) to would be to enable any Person, either shorter period to which the Board redeem the shares in excess of the alone or together with its Related expressly consents) before the proposed applicable ownership limit at their par Persons, to vote, possess the right to ownership of such shares or the value.55 vote, or cause the voting of shares of the proposal to vote or cause the voting of capital stock of LTSEG that would such shares in person or by proxy 50 These provisions are consistent with ownership represent more than 20% of said voting through any voting agreement or other and voting limits approved by the Commission for power 57 (the ‘‘Recalculated Voting arrangement of its intention to do so.63 other SROs. See, e.g., IEX Order, supra note 48, and The LTSEG Certificate also contains MIAX PEARL Order, MIAX Order, and BATS Limitation’’), then the Person, either Order, supra note 35; see also Securities Exchange alone or together with its Related provisions that are designed to further Release Nos. 6068 (February 4, 2016) (File No. 10– Persons, will not be entitled to vote or safeguard the ownership and voting 221) (order granting exchange registration of ISE cause the voting of shares of stock of limitations described above, or are Mercury, LLC) (‘‘ISE Mercury Order’’); 70050 (July otherwise related to direct and indirect 26, 2013), 78 FR 46622, 46624 (August 1, 2013) LTSEG, in person or by proxy or (File No. 10–209) (order granting the exchange through any voting agreement or other registration of ISE Gemini, LLC) (‘‘ISE Gemini arrangement, to the extent that such accordance with, Regulation 14A under the Act Order’’); 62158 (May 24, 2010), 75 FR 30082 (May (other than a solicitation pursuant to Rule 14a- 28, 2010) (CBOE–2008–88) (CBOE demutualization shares represent in the aggregate more 2(b)(2)). See id. at subparagraph (A)(2)(b)(i)(D). See order); 53963 (June 8, 2006), 71 FR 34660 (June 15, than the Recalculated Voting Limitation, also id. at (b)(i)(E). 2006) (SR–NSX–2006–03) (NSX demutualization and LTSEG will disregard any such 59 See id. at subparagraph (A)(2)(b)(ii)(B). The order); 51149 (February 8, 2005), 70 FR 7531 votes purported to be case in excess of required determinations are that (a) such waiver (February 14, 2005) (SR–CHX–2004–26) (CHX 58 will not impair the ability of the Exchange to carry demutualization order); and 49098 (January 16, the Recalculated Voting Limitation. out its functions and responsibilities as an 2004), 69 FR 3974 (January 27, 2004) (SR–Phlx– ‘‘exchange’’ under the Act and the rules and 2003–73) (Phlx demutualization order). redeemed stock as a stockholder of LTSEG (except regulations promulgated thereunder; that such 51 See LTSEG Certificate, Article IX, subparagraph the right to receive from LTSEG the redemption waiver is otherwise in the best interests of LTSEG, (A)(2)(a)(i) (defining ‘‘Person’’). price against delivery to LTSEG of evidence of its stockholders, and the Exchange; that such 52 See id. at subparagraph (A)(2)(a)(ii) (defining ownership of the shares) will cease. Id. In addition, waiver will not impair the ability of the ‘‘Related Persons’’). in the event that any redemption has resulted in Commission to enforce the Act and the rules and 53 See id. at subparagraph (A)(2)(b)(i)(A). There any additional stockholder owning such number of regulations promulgated thereunder; and that such are limited exceptions to these prohibitions. See shares that is in violation of the ownership limits, Person and its Related Persons are not subject to infra notes 58–63 and accompanying text. LTSGE will be required to redeem those shares any applicable ‘‘statutory disqualification’’ within 54 See id. at subparagraph (A)(2)(b)(i)(B). pursuant to the limitation provisions. Id. the meaning of Section 3(a)(39) of the Act. See id. 56 at subparagraphs (A)(2)(b)(ii) and (iii). These 55 See id. at subparagraph (A)(2)(e). The number See id. at subparagraph (A)(2)(b)(i)(C). provisions are consistent with ownership and of shares to be redeemed is to be calculated after 57 The text of the LTSEG Certificate stipulates that voting limits approved by the Commission for other taking into account that the redeemed shares will this provision applies ‘‘assuming that all shares of SROs. See, e.g., IEX Order, ISE Mercury Order, and become treasury shares and will no longer be [LTSEG] that are subject to the agreement, plan or ISE Gemini Order, supra note 50; MIAX PEARL deemed to be outstanding shares. Id. It is further other arrangement are not treated as having voting Order, MIAX Order, and BATS Order, supra note provided in the LTSEG Certificate that any shares power.’’ Id. 35; and Securities Exchange Act Release No. 61698 that have been called for redemption may not be 58 See LTSEG Certificate, Article IX, subparagraph (March 12, 2010), 75 FR 13151 (March 18, 2010) deemed outstanding shares for the purpose of (A)(2)(b)(i)(C)(2). The provisions of this section of (File Nos. 10–194 and 10–196) (order approving voting or determining the total number of shares LTSEG Certificate regarding limitations on transfer, DirectEdge exchanges) (‘‘DirectEdge Exchanges entitled to vote on any matter. From and after the ownership and voting will not apply to: (a) Any Order’’). redemption date (unless LTSEG defaults in solicitation of any revocable proxy from any 60 providing funds for the payment of the redemption stockholder of LTSEG by or on behalf of LTSEG or See LTSEG Certificate, Article IX, at price), the shares of redeemed stock which have by any officer or director of LTSEG acting on behalf subparagraph (A)(2)(b)(ii)(B). been redeemed as per these provisions will become of LTSEG; or (b) any solicitation of any revocable 61 See id. treasury shares and will no longer be deemed to be proxy from any stockholder of LTSEG by another 62 See id. at subparagraph (A)(2)(b)(iv). outstanding, and all rights of the holder of the stockholder that is conducted pursuant to, and in 63 See id.

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changes in control. Specifically, any with respect to the operation of LTSE 2. Regulatory Independence and Person that, either alone or together must be consistent with, and must not Oversight with its Related Persons beneficially interfere with, the self-regulatory Although LTSEG will not itself carry owns, directly or indirectly(whether by obligations of LTSE.71 As described out regulatory functions, its activities acquisition or a change in the number above, the provisions applicable to with respect to the operation of LTSE of shares outstanding), of record or direct and indirect changes in control of must be consistent with, and must not beneficially 5% or more of the then LTSEG and LTSE, as well as the voting interfere with, LTSE’s self-regulatory outstanding shares of capital stock of limitation imposed on owners of LTSEG obligations. In this regard, LTSE and LTSEG (excluding shares of any class of who also are LTSE members, are LTSEG propose to adopt certain stock that does not have the right by its designed to help prevent any owner of provisions in their respective governing terms to vote generally in the election of LTSEG from exercising undue influence documents that are designed to help members of the LTSEG Board) will be or control over the operation of the maintain the independence of the required to immediately notify the Exchange and to help ensure that the regulatory functions of LTSE. These LTSEG Board in writing of such Exchange retains a sufficient degree of proposed provisions are substantially 64 ownership. Thereafter, such Persons independence to effectively carry out its similar to those included in the will be required to update LTSEG of any regulatory obligations under the Act. governing documents of other increase or decrease of 1% or more in In addition, these limitations are exchanges that recently have been their previously reported ownership 74 designed to address the conflicts of granted registration. Specifically: percentage.65 • The directors, officers, employees, The Exchange’s Amended and interests that might result from a member of a national securities and agents of LTSEG must give due Restated Certificate of Incorporation regard to the preservation of the (‘‘LTSE Certificate’’) does not include exchange owning interests in the exchange. As the Commission has noted independence of the self-regulatory change of control provisions that are function of LTSE and to its obligations similar to those in the LTSEG in the past, a member’s ownership interest in an entity that controls an to investors and the general public and Certificate. However, the LTSE must not take actions which would Certificate explicitly provides that exchange could become so large as to cast doubt on whether the exchange interfere with the effectuation of LTSEG will be the sole owner of the decisions by the Exchange Board 66 may fairly and objectively exercise its common stock of the Exchange. Thus, relating to its regulatory functions if LTSEG ever proposes to no longer be self-regulatory responsibilities with respect to such member.72 A member (including disciplinary matters) or the sole owner of the Exchange, the which would interfere with LTSE’s LTSE Certificate will be required to be that is a controlling shareholder of an exchange could seek to exercise that ability to carry out its responsibilities amended. Any amendment to the LTSE under the Act.75 Certificate, including any change in the controlling influence by directing the • exchange to refrain from, or the LTSEG must comply with the provisions that identify LTSEG as the federal securities laws and the rules and sole owner of the Exchange, will exchange may hesitate to, diligently monitor and conduct surveillance of the regulations promulgated thereunder, constitute a proposed rule change under and must cooperate with the Section 19(b) of the Act 67 and Rule member’s conduct or diligently enforce the exchange’s rules and the federal Commission and LTSE pursuant to, and 19b–4 68 thereunder that will be to the extent of, their respective required to be filed with, or filed with securities laws with respect to conduct by the member that violates such regulatory authority. In addition, and approved by, the Commission.69 LTSEG’s officers, directors, employees, Moreover, pursuant to the LTSE provisions. As such, the Commission believes that these requirements are and agents must comply with the Certificate itself, any sale, transfer or federal securities laws and the rules and assignment by LTSEG of common stock designed to minimize the potential that a person or entity can improperly of the Exchange will be subject to prior 74 See, e.g., IEX Order, supra note 48; MIAX approval by the Commission pursuant interfere with or restrict the ability of Order, supra note 35. See also DirectEdge to the rule filing procedure under the Exchange to effectively carry out its Exchanges Order, supra note 59. Section 19 of the Act.70 regulatory oversight responsibilities 75 See proposed Bylaws of LTSE Group, Inc. under the Act. (‘‘LTSEG Bylaws’’), Article X, Section 10.1. Although LTSEG is not directly Similarly, Article III, Section 3.1(d) of the LTSE responsible for regulation, its activities The Commission believes that LTSE’s Bylaws requires the Exchange Board, when and LTSEG’s proposed governance managing the business and affairs of LTSE, to 64 See id. at subparagraph (A)(2)(c)(i). The notice provisions are consistent with the Act, consider the requirements of Section 6(b) of the Act and requires each Director, officer or employee of will require the Person’s full legal name; the including Section 6(b)(1), which Person’s title or status and the date on which such LTSE to comply with the federal securities laws and title or status was acquired; the Person’s and its requires, in part, an exchange to be so regulations thereunder and cooperate with the Related Person’s) approximate ownership interest organized and have the capacity to carry Commission, and LTSE pursuant to its regulatory in LTSEG; and whether the person has power, out the purposes of the Act.73 In authority. Article III, Section 3.1(e) of the LTSE Bylaws also requires the Exchange Board, when directly or indirectly, to direct the management or particular, these requirements are policies of LTSEG, whether through ownership of evaluating any proposal to take into account all securities, by contract or otherwise. See id. designed to minimize the potential that factors that the Board deems relevant, to the extent 65 See id. at subparagraph (A)(2)(c)(ii). Changes of a person could improperly interfere deemed relevant: the potential impact on the less than 1% must also be reported to LTSEG if they with or restrict the ability of the integrity, continuity and stability of the national securities exchange operated by LTSE and the other result in such Person crossing a 20% or 40% Commission or the Exchange to ownership threshold. See id. In addition, the operations of LTSE, on the ability to prevent Exchange’s rules also impose limits on affiliation effectively carry out their regulatory fraudulent and manipulative acts and practices, and between the Exchange and a member of the oversight responsibilities under the Act. on investors and the public, and whether such Exchange. See LTSE Rule 2.210 (No Affiliation would promote just and equitable principles of between Exchange and any Member). trade, foster cooperation and coordination with 71 See, e.g., IEX Order, supra note 48. persons engaged in regulating, clearing, settling, 66 See LTSE Certificate, Article IV. 72 See, e.g., ISE Mercury Order, supra note 50, processing information with respect to and 67 15 U.S.C. 78s(b). and IEX Order, supra note 48; MIAX PEARL Order, facilitating transactions in securities or assist in the 68 17 CFR 240.19b–4. MIAX Order, and BATS Order, supra note 35; and removal of impediments to or perfection of the 69 See LTSE Certificate, Article VI. DirectEdge Exchanges Order, supra note 59. mechanisms for a free and open market and a 70 See LTSE Certificate, Article IV. 73 15 U.S.C. 78f(b)(1). national market system.

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regulations promulgated thereunder and United States 80 and, to the extent they functions, and operations of [an SRO], if are deemed to agree to cooperate with are related to the operation or [the Commission] finds, on the record the Commission and LTSE in respect of administration of LTSE, LTSEG’s books after notice and opportunity for hearing, the Commission’s oversight and records will be subject at all times that [the SRO] has violated or is unable responsibilities regarding LTSE and the to inspection and copying by the to comply with any provision of the Act, self-regulatory functions and Commission and LTSE.81 the rules or regulations thereunder, or responsibilities of LTSE, and LTSEG • Furthermore, to the extent they are its own rules or without reasonable must take reasonable steps necessary to related to the operation or justification or excuse has failed to cause its officers, directors, employees administration of LTSE, the books, enforce compliance . . . ’’ with any and agents to so cooperate.76 records, premises, officers, directors, such provision by its members • LTSEG, and its officers, directors, employees, and agents of LTSEG will be (including associated persons thereof). If employees, and agents must submit to deemed to be the books, records, the Commission were to find, or become the jurisdiction of the U.S. federal premises, officers, directors, employees, aware of, through staff review and courts, the Commission, and LTSE, for and agents of LTSE, for purposes of, and inspection or otherwise, facts indicating purposes of any suit, action or subject to oversight pursuant to, the any violations of the Act, including proceeding pursuant to the U.S. federal Act.82 without limitation Sections 6(b)(1) and securities laws, and the rules and • LTSEG will take reasonable steps 19(g)(1),87 these matters could provide regulations thereunder, arising out of, or necessary to cause its officers, directors, the basis for a disciplinary proceeding relating to, LTSE activities.77 employees, and agents, prior to under Section 19(h)(1) of the Act. • All books and records of LTSE accepting a position as an officer, The Commission also notes that, even reflecting confidential information director, employee or agent (as in the absence of the governance pertaining to the self-regulatory function applicable) to consent in writing to the provisions described above, under of LTSE (including but not limited to applicability of provisions regarding Section 20(a) of the Act any person with disciplinary matters, trading data, non-interference, confidentiality, books a controlling interest in LTSE would be trading practices, and audit information) and records, compliance and jointly and severally liable with and to must be retained in confidence by LTSE cooperation, jurisdiction, and regulatory the same extent that LTSE is liable and its personnel, directors, officers, obligations, with respect to their under any provision of the Act, unless employees and agents, and will not be activities related to LTSE.83 the controlling person acted in good used by LTSE for any non-regulatory • The LTSEG Certificate and Bylaws faith and did not directly or indirectly purposes and shall not be made require that, so long as LTSEG controls induce the act or acts constituting the available to any person (including, LTSE, any changes to those documents violation or cause of action.88 In without limitation, any LTSE member) must be submitted to the Exchange addition, Section 20(e) of the Act creates other than to personnel of the Board for approval, and, if such change aiding and abetting liability for any Commission, and those personnel of is required to be filed with the person who knowingly provides LTSE, members of committees of the Commission pursuant to Section 19(b) substantial assistance to another person Exchange Board, members of the of the Act and the rules and regulations in violation of any provision of the Act Exchange Board, or hearing officers and thereunder, such change shall not be or rule thereunder.89 Further, Section other agents of LTSE, to the extent effective until filed with and effective 21C of the Act authorizes the necessary or appropriate to properly by operation of law, or filed with, and Commission to enter a cease-and-desist discharge the self- regulatory approved by, the Commission.84 order against any person who has been responsibilities of LTSE.78 Similar The Commission believes that the ‘‘a cause of’’ a violation of any provision provisions apply to LTSEG and its provisions discussed in this section, of the Act through an act or omission directors, officers, employees and which are designed to help ensure the that the person knew or should have agents.79 independence of LTSE’s regulatory known would contribute to the • The books and records of LTSE and function and facilitate the ability of violation.90 These provisions are LTSEG must be maintained in the LTSE to carry out its regulatory applicable to all entities’ dealings with responsibilities under, and operate in a LTSE, including LTSEG. 76 See LTSEG Bylaws, Article X, Section 10.4. manner consistent with, the Act, are Similarly, Article V(b) of the LTSE Certificate appropriate and consistent with the 3. Regulatory Oversight Committee requires LTSE’s directors, officers and employees, in discharging their respective responsibilities, to requirements of the Act, particularly The regulatory operations of LTSE comply with the federal securities laws and the with Section 6(b)(1), which requires, in will be monitored by the Regulatory rules and regulations promulgated thereunder and part, an exchange to be so organized and Oversight Committee of the Exchange to cooperate with the Commission, and LTSE have the capacity to carry out the Board. The Regulatory Oversight pursuant to its regulatory authority. 85 77 purposes of the Act. Committee will consist of at least three See LTSEG Bylaws, Article X, Section 10.5. 86 78 See LTSE Bylaws, Article XI, Section 11.4. Further, Section 19(h)(1) of the Act members, all of whom must be 79 The LTSEG Bylaws also provide that all books provides the Commission with the Independent Directors.91 The and records of LTSE reflecting confidential authority ‘‘to suspend for a period not Regulatory Oversight Committee will be information pertaining to the self-regulatory exceeding twelve months or revoke the responsible for overseeing the adequacy function of LTSE that come into the possession of LTSEG, and the information contained in those registration of [an SRO], or to censure or and effectiveness of LTSE’s regulatory books and records, will be subject to confidentiality impose limitations upon the activities, and SRO responsibilities, assessing restrictions and will not be used for any non- regulatory purposes. See LTSEG Bylaws, Article X, 80 See LTSE Bylaws, Article XI, Section 11.4; and 87 15 U.S.C. 78f(b)(1); 15 U.S.C. 78s(g)(1). Section 10.2. The LTSE and LTSEG governing LTSEG Bylaws Article X, Section 10.3. 88 15 U.S.C. 78t(a). documents acknowledge that requirements to keep 81 See LTSEG Bylaws, Article X, Section 10.3. such information confidential shall not limit or 89 15 U.S.C. 78t(e). 82 See LTSEG Bylaws, Article X, Section 10.3. impede the rights of the Commission to access and 90 15 U.S.C. 78u–3. 83 examine such information or limit the ability of See LTSEG Bylaws, Article X, Section 10.6. 91 See LTSE Bylaws, Article V, Sections 5.2(a) and officers, directors, employees, or agents of LTSE or 84 See LTSEG Certificate, Article IX, Section (A)1; 5.6(c). The Regulatory Oversight Committee is LTSEG to disclose such information to the and LTSEG Bylaws, Article IX. responsible for reviewing LTSE’s regulatory budget, Commission. See LTSE Bylaws, Article XI, Section 85 15 U.S.C. 78f(b)(1). and also will meet regularly with the Chief 11.4 and LTSEG Bylaws, Article X, Section 10.2. 86 See 15 U.S.C. 78s(h)(1). Regulatory Officer.

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LTSE’s regulatory performance, and $5,000,000, in addition to any LTSE, which are expected to include assisting the Exchange Board (and previously-provided in-kind performance of investigation, committees of the Exchange Board) in contributions, such as legal, regulatory, disciplinary, and hearing services.103 reviewing LTSE’s regulatory plan and and infrastructure-related services.98 Notwithstanding the RSA, LTSE will the overall effectiveness of LTSE’s LTSE also represents that such cash retain legal responsibility for the regulatory functions.92 and in-kind contributions from LTSEG regulation of its members and its market Further, a Chief Regulatory Officer will be adequate to operate LTSE, and the performance of FINRA as its (‘‘CRO’’) of LTSE will have general including the regulation of the regulatory services provider. Because supervision over LTSE’s regulatory Exchange, and that LTSEG and LTSE LTSE anticipates entering into an RSA operations, including responsibility for will enter into an agreement that with FINRA, it has not made provisions overseeing LTSE’s surveillance, requires LTSEG to provide adequate to fulfill the regulatory services that examination, and enforcement functions funding for the Exchange’s operations, would be undertaken by FINRA. and for administering any regulatory including the regulation of the Accordingly, the Commission is services agreements with another self- Exchange.99 conditioning the operation of LTSE on regulatory organization to which LTSE Further, any ‘‘Regulatory Funds’’ a final RSA that specifies the services is a party.93 The Regulatory Oversight received by LTSE will not be used for that will be provided to LTSE. Committee, in consultation with the non-regulatory purposes or distributed The Commission believes that it is Chief Executive Officer of LTSE, will be to LTSEG, but rather will be applied to consistent with the Act for LTSE to responsible for establishing the goals, fund the regulatory operations of LTSE, contract with FINRA to perform certain assessing the performance, fixing the or, as applicable, used to pay restitution examination, enforcement, and compensation of the CRO and for and disgorgement to customers as part disciplinary functions.104 These recommending personnel actions of a regulatory proceeding.100 Any functions are fundamental elements of a involving the CRO and senior regulatory excess non-regulatory funds, as solely regulatory program, and constitute core 94 personnel. determined by LTSE, will be remitted to self-regulatory functions. The 4. Regulatory Funding and Services LTSEG in accordance with LTSE Commission believes that FINRA has Bylaws.101 the expertise and experience to perform As a prerequisite for the these functions for LTSE.105 However, Commission’s granting of an exchange’s b. Regulatory Contract with FINRA LTSE, unless relieved by the application for registration, an exchange Although LTSE will be an SRO with Commission of its responsibility, bears must be organized and have the capacity all of the attendant regulatory the self-regulatory responsibilities and to carry out the purposes of the Act.95 obligations under the Act, it has primary liability for self-regulatory Specifically, an exchange must be able represented to the Commission that it to enforce compliance by its members, failures, not the SRO retained to intends to enter into a Regulatory and persons associated with its perform regulatory functions on LTSE’s Services Agreement (‘‘RSA’’) with 106 members, with the federal securities behalf. In performing these regulatory FINRA, under which FINRA as a laws and rules thereunder and the rules functions, however, FINRA may regulatory services provider will of the exchange.96 The discussion below nonetheless bear liability for causing or perform certain regulatory functions on summarizes how LTSE proposes to aiding and abetting the failure of LTSE LTSE’s behalf.102 Specifically, LTSE 107 conduct and structure its regulatory to perform its regulatory functions. represents that FINRA will perform operations. Accordingly, although FINRA will not certain regulatory surveillance of act on its own behalf under its SRO a. Regulatory Funding trading activity on LTSE and conduct responsibilities in carrying out these To help ensure that LTSE has and will various regulatory services on behalf of regulatory services for LTSE, FINRA continue to have adequate funding to be may have secondary liability if, for able to meet its responsibilities under 98 See id. example, the Commission finds that the 99 See id. LTSE represents that this agreement contracted functions are being the Act, LTSE represents that, if the will provide that LTSE will receive all fees, Commission approves LTSE’s including regulatory fees and trading fees, payable performed so inadequately as to cause a application for registration as a national by LTSE’s members, as well as any funds received violation of the federal securities laws securities exchange, LTSEG will allocate from any applicable market data fees and tape or rules thereunder by LTSE.108 revenue, and will further provide that LTSEG will sufficient assets to LTSE to enable the reimburse LTSE for its costs and expenses to the Exchange’s operation.97 Specifically, extent that the Exchange’s assets are insufficient to 103 See Form 1, Exhibit L. LTSE represents that LTSEG will make meet its costs and expenses. Id. 104 For example, IEX, MIAX Exchange, MIAX a cash contribution to LTSE of 100 See LTSE Bylaws, Article X, Section 10.4. PEARL, LLC, Nasdaq MRX, LLC, Cboe EDGA LTSE Bylaws, Article I(bb) defines ‘‘Regulatory Exchange, Inc., Cboe EDGX Exchange Inc., and Funds’’ as ‘‘fees, fines, or penalties derived from the Cboe BZX Exchange, Inc. (‘‘Cboe BZX’’) have 92 See LTSE Bylaws, Article V, Section 5.6(c). regulatory operations of [LTSE],’’ but such term entered into RSAs with FINRA. 93 See LTSE Bylaws, Article VII, Section 7.9. does not include ‘‘revenues derived from listing 105 See, e.g., IEX Order, supra note 48; DirectEdge 94 See LTSE Bylaws, Article V, Section 5.6(c). To fees, market data revenues, transaction revenues, or Exchanges Order, supra note 59; and Nasdaq Order, the extent that the Chief Executive Officer of LTSE any other aspect of the commercial operations of supra note 35. The Commission notes that the has any indirect supervisory responsibility for the [LTSE], even if a portion of such revenues are used Commission is not approving the RSA or any of its role or function of the CRO, including but not to pay costs associated with the regulatory specific terms. limited to, implementation of the budget for the operations of [LTSE].’’ This definition is consistent 106 See Section 19(g)(1) of the Act, 15 U.S.C. regulatory function or regulatory personnel matters, with the rules of other SROs. See, e.g., Amended 78s(g)(1). the Regulatory Oversight Committee will take all and Restated By-Laws of MIAX Exchange, Article 107 For example, if failings by FINRA have the steps reasonably necessary to ensure that the Chief 1(ll); By-Laws of NASDAQ PHLX LLC, Article I(ii); effect of leaving LTSE in violation of any aspect of Executive Officer does not compromise the and By-Laws of NASDAQ BX, Inc., Article I(ii). LTSE’s self-regulatory obligations, LTSE would bear regulatory autonomy and independence of the CRO 101 See Form 1, Exhibit I. See also LTSE Bylaws, direct liability for the violation, while FINRA may or the regulatory function. Id. Article XI, Section 11.5. Further, LTSE will not be bear liability for causing or aiding and abetting the 95 See Section 6(b)(1) of the Act, 15 U.S.C. required to pay any dividends if payment of such violation. See, e.g., IEX Order, supra note 48; 78f(b)(1). dividends would violate the Act or any other Nasdaq Order and BATS Order, supra note 35; and 96 See id. See also Section 19(g) of the Act, 15 applicable law. See id. DirectEdge Exchanges Order, supra note 59. U.S.C. 78s(g). 102 See Form 1, Exhibit L. See also LTSE Rules 108 See, e.g., IEX Order, supra note 48, and 97 See Form 1, Exhibit I. 1.160(jj) and 6.170. Nasdaq Order, supra note 35.

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c. Rule 17d–2 Agreements LTSE has represented to the Rule 17d–2 plans specified above to add Section 19(g)(1) of the Act,109 among Commission that LTSE and FINRA LTSE as a party. other things, requires every SRO intend to file a Rule 17d–2 agreement C. LTSE Trading System registered as either a national securities with the Commission covering common exchange or national securities members of LTSE and FINRA.116 This LTSE will operate a fully automated association to comply with the Act, the agreement will allocate to FINRA electronic order book, and will not rules and regulations thereunder, and regulatory responsibility, with respect to maintain or operate a physical trading the SRO’s own rules, and, absent common members, for specified floor. Only broker-dealer members of reasonable justification or excuse, regulatory and enforcement matters LTSE and entities that enter into market enforce compliance by its members and arising out of specified common rules access arrangements with members persons associated with its members, and specified provisions of the Act and (collectively, ‘‘Users’’) will have access 120 unless the SRO is relieved of this the rules and regulations thereunder. In to the LTSE system. Users will be responsibility pursuant to Section 17(d) addition, LTSE has represented to the able to electronically submit orders to or Section 19(g)(2) of the Act.110 Rule Commission that it intends to join all buy or sell securities listed or traded on the Exchange through a variety of 17d–2 of the Act permits SROs to applicable Rule 17d–2 plans, as systems.121 LTSE will allow firms to propose joint plans to allocate applicable and in the interest of its register as market makers with regulatory responsibilities amongst members and their ‘‘Sponsored affirmative and negative market making themselves for their common rules with Participants’’—entities whose access to 111 obligations.122 respect to their common members. LTSE is authorized in advance by one These agreements, which must be filed Users may submit orders to the or more members in accordance with Exchange as Limit Orders or Market with and declared effective by the LTSE rules,117 including the multi-party Commission, generally cover areas Orders, with the following order Rule 17d–2 plan for the allocation of where each SRO’s rules substantively parameters: Displayed; Reserve; Non- regulatory responsibilities with respect overlap, including such regulatory Displayed; Odd Lot; Mixed Lot; LTSE to certain Regulation NMS Rules and functions as personnel registration and Only; Minimum Quantity; and Inter- the multi-party Rule 17d–2 plan for the 123 sales practices. Without this relief, the market Sweep. Orders may be statutory obligation of each individual surveillance, investigation, and submitted with the following time-in- SRO could result in a pattern of enforcement of common insider trading force instructions: Immediate-or-Cancel; 118 multiple examinations of broker-dealers rules. Day; Good ‘til Extended Day; System that maintain memberships in more Because LTSE anticipates entering Session; and Good ‘til Time.124 Users than one SRO.112 Such regulatory into these Rule 17d–2 agreements, it has may submit orders with the display duplication would add unnecessary not made provision to fulfill the instructions of Displayed, Non- expenses for common members and regulatory obligations that would be Displayed, or Reserve, but orders their SROs.113 undertaken by FINRA and other SROs submitted without display instructions A Rule 17d–2 plan that is declared under these agreements with respect to will be fully displayed.125 Displayed effective by the Commission relieves the common members.119 Accordingly, the orders will be displayed on an 126 specified SRO of those regulatory Commission is conditioning the anonymous basis at a specified price. responsibilities allocated by the plan to operation of LTSE on approval by the Orders will be classified as a Round Lot, 114 127 another SRO. Many SROs have Commission of a Rule 17d–2 agreement Odd Lot, or Mixed Lot. Users may 115 entered into Rule 17d–2 agreements. that allocates the above specified also choose to designate orders with an Anti-Internalization Group Identifier matters, and the approval of an 109 15 U.S.C. 78s(g)(1). modifier for anti-internalization amendment to the existing multi-party 110 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2), purposes to prevent executions against respectively. resting opposite side orders originating 111 See Section 17(d)(1) of the Act and Rule 17d– 70053 (July 26, 2013), 78 FR 46656 (August 1, 2013) 2 thereunder, 15 U.S.C. 78q(d)(1) and 17 CFR (File No. 4–663) (FINRA/Topaz Exchange n/k/a ISE from the same market participant 128 240.17d–2, respectively. Section 17(d)(1) of the Act Gemini, LLC); 59218 (January 8, 2009), 74 FR 2143 identifier. All of these order types allows the Commission to relieve an SRO of certain (January 14, 2009) (File No. 4–575) (FINRA/Boston and parameters are similar to order responsibilities with respect to members of the SRO Stock Exchange, Inc.); 58818 (October 20, 2008), 73 types and parameters approved by the who are also members of another SRO (‘‘common FR 63752 (October 27, 2008) (File No. 4–569) members’’). Specifically, Section 17(d)(1) allows the (FINRA/BATS Exchange, Inc.); 55755 (May 14, Commission and currently available on 129 Commission to relieve an SRO of its responsibilities 2007), 72 FR 28087 (May 18, 2007) (File No. 4–536) other national securities exchanges. to: (i) Receive regulatory reports from such (National Association of Securities Dealers, Inc. members; (ii) examine such members for (‘‘NASD’’) n/k/a FINRA) and Chicago Board of 120 To obtain authorized access to the LTSE compliance with the Act and the rules and Options Exchange, Inc. concerning the CBOE Stock System, each User must enter into a User regulations thereunder, and the rules of the SRO; Exchange, LLC); 55367 (February 27, 2007), 72 FR Agreement with LTSE. See LTSE Rule 11.130(a). or (iii) carry out other specified regulatory 9983 (March 6, 2007) (File No. 4–529) (NASD/ 121 For a discussion of the means of access to responsibilities with respect to such members. International Securities Exchange, LLC); and 54136 LTSE, see LTSE Form 1, Exhibit E, Section 1. 112 Section 17(d) was intended, in part, to (July 12, 2006), 71 FR 40759 (July 18, 2006) (File 122 See LTSE Rules 11.150 through 11.154. LTSE’s eliminate unnecessary multiple examinations and No. 4–517) (NASD/Nasdaq). rules relating to market makers are similar to the regulatory duplication with respect to common 116 See Form 1, Exhibit E. rules of other national securities exchanges. See, members. See Securities Exchange Act Release No. 117 Id. e.g., IEX Rules 11.150 through 11.154; and Cboe 12935 (October 28, 1976), 41 FR 49091 (November 118 See id. See also Securities Exchange Act BZX Rules 11.5 through 11.8. 8, 1976) (‘‘Rule 17d–2 Adopting Release’’). Release No. 65991 (December 16, 2011), 76 FR 123 See LTSE Rule 11.190(a)–(b). 113 See id. 79714 (December 22, 2011) (File No. 4–566) (notice 124 See LTSE Rule 11.190(c). 114 See Rule 17d–2 Adopting Release, supra note of filing and order approving and declaring effective 125 112. an amendment to the multi-party Rule 17d–2 plan See LTSE Form 1, Exhibit E, Section 2, and LTSE Rule 11.190(b)(1)–(3). 115 See, e.g., Securities Exchange Act Release Nos. relating to the surveillance, investigation, and 126 83696 (July 24, 2018), 83 FR 35682 (July 27, 2018) enforcement of insider trading rules). See LTSE Form 1, Exhibit E, Section 1. (FINRA/MIAX Exchange/MIAX PEARL); 77321 119 For common members, the regulatory 127 See LTSE Form 1, Exhibit E, Section 2, and (March 8, 2016), 81 FR 13434 (March 14, 2016) (File obligations will be covered by the Rule 17d–2 LTSE Rule 11.180. No. 4–697) (FINRA/ISE Mercury, LLC); 73641 agreements, and for LTSE members that are not also 128 See LTSE Form 1, Exhibit E, Section 2, and (November 19, 2014), 79 FR 70230 (November 25, members of FINRA, the regulatory obligations will LTSE Rule 11.190(e). 2014) (File No. 4–678) (FINRA/MIAX Exchange); be covered by the RSA. 129 See, e.g., IEX Rule 11.190.

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The LTSE system will continuously Initially, LTSE will not offer any D. Discipline and Oversight of Members 140 and automatically match orders outbound routing functionality; thus, As noted above, one prerequisite for pursuant to price/display/time priority, all orders submitted to LTSE will be the Commission’s grant of an exchange’s with displayed orders and displayed treated as LTSE Only,141 though limit application for registration is that a portions of orders having precedence orders may also include the execution proposed exchange must be so over non-displayed orders and non- instructions of Inter-Market Sweep organized and have the capacity to be displayed portions of orders at the same Order, if appropriate.142 able to carry out the purposes of the price without regard to time.130 LTSE The Commission finds that LTSE’s Act.148 Specifically, an exchange must will also utilize certain collars and trading rules are consistent with the Act be able to enforce compliance by its constraints in an effort to reduce the and, in particular, the Section 6(b)(5) members and persons associated with occurrence of erroneous trades.131 With requirement that an exchange’s rules be its members with the federal securities respect to the price of executions that designed to promote just and equitable laws and rules thereunder and the rules would occur on LTSE, the LTSE system of the exchange.149 As also noted above, is designed to comply with the order principles of trade, remove impediments to and perfect the pursuant to the proposed RSA with protection requirements of Rule 611 of FINRA, FINRA will perform many of the Regulation NMS 132 by requiring that, mechanisms of a free and open market and a national market system, and initial disciplinary processes on behalf for any execution to occur on LTSE of LTSE.150 For example, FINRA will during regular trading hours, the price protect investors and the public interest.143 investigate potential securities laws must be equal to, or better than, the violations, issue complaints, and ‘‘protected quotation,’’ unless an As a national securities exchange, conduct hearings pursuant to LTSE 133 exception to Rule 611 applies. Orders LTSE will be a trading center whose rules. Appeals from disciplinary may be executed on the Exchange quotations can be ‘‘automated decisions will be heard by the LTSE 144 during the Regular Market Session or quotations’’ under Rule 600(b)(3). In Appeals Committee 151 and the LTSE during Pre- and Post-Market turn, LTSE is designed to be an Appeals Committee’s decision shall be 134 Sessions; however, some order types ‘‘automated trading center’’ under Rule final.152 In addition, the Exchange and functionality are available only 600(b)(4) whose best-priced, displayed Board on its own initiative may order 135 during the Regular Market Session. quotation would be a ‘‘protected review of a disciplinary decision.153 In addition, LTSE’s rules are designed quotation’’ under Rules 600(b)(57) and The LTSE Bylaws and LTSE rules to address locked and crossed markets, 600(b)(58), and for purposes of Rule provide that the Exchange has as required by Rule 610(d) of Regulation 611.145 disciplinary jurisdiction over its NMS,136 in that they are designed not to At the same time, to meet their members so that it can enforce its disseminate interest that would lock or members’ compliance with its rules and cross a protected quote, require Users to regulatory responsibilities under Rule 611(a) of Regulation NMS, such other the federal securities laws and rules.154 reasonably avoid displaying interest that The Exchange’s rules also permit LTSE locks or crosses any protected quotation, trading centers will be required to have to sanction members for violations of its and are reasonably designed to assure sufficient notice of new protected rules and violations of the federal the reconciliation of locked or crossed quotations, as well as all necessary securities laws and rules by, among interest.137 information (such as final technical LTSE will conduct an opening specifications).146 The Commission other things, expelling or suspending process for non-LTSE-listed securities at believes that it would be a reasonable members, limiting members’ activities, the start of its regular market session, policy and procedure under Rule 611(a) functions, or operations, fining or and Users who wish to participate in the to require that industry participants censuring members, or suspending or opening process may enter begin treating LTSE’s best bid and best barring a person from being associated appropriately designated orders for offer as a protected quotation as soon as with a member, or any other fitting 155 queuing in the system.138 LTSE’s rules possible but no later than 90 days after sanction. LTSE’s rules also provide also contemplate auction processes for the date of this order, or such later date for the imposition of fines for certain any securities that may be listed on as LTSE begins operation as a national minor rule violations in lieu of LTSE, which include Opening Auctions, securities exchange. The Commission commencing disciplinary 156 Closing Auctions, IPO and Halt notes that it has taken the same position proceedings. Accordingly, as a Auctions, and Volatility Auctions.139 with other new equities exchanges.147 condition to the operation of LTSE, a Minor Rule Violation Plan (‘‘MRVP’’)

130 filed by LTSE under Act Rule 19d– See LTSE Rule 11.220(a)(1). 140 See LTSE Form 1, Exhibit E, Section 2. 131 See LTSE Rule 11.190(f) (describing the Order 141 See LTSE Rule 11.190(b)(6). 148 Collar, Crossed Market Collar, One-Sided Market 142 See LTSE Rule 11.190(b)(12). See 15 U.S.C. 78f(b)(1). Handling, and Zero Markets Handling) and LTSE 149 143 See 15 U.S.C. 78f(b)(5). The Commission notes See id. Form 1, Exhibit E, Section 3. See also LTSE Rule 150 that LTSE’s trading rules, including its rules See supra notes 102–103 and accompanying 11.270 (Clearly Erroneous Executions). relating to market makers, order types and text. See also LTSE Rule 9.001 (noting that LTSE 132 17 CFR 242.611. parameters, priority, execution, and opening and and FINRA are parties to a regulatory contract, 133 See LTSE Rule 11.230(a)(2). See also 17 CFR auction processes, are similar to existing exchanges’ pursuant to which FINRA will perform certain 242.600(b)(58) (defining ‘‘protected quotation’’). trading rules. See, e.g., Chapter 11 of the IEX rule functions described in the Rule 9.000 Series on 134 LTSE’s Pre-Market Session will run from 8:00 book. behalf of LTSE). a.m. ET to 9:30 a.m. ET, and its Post-Market Session 144 See LTSE Rule 11.240(c). 151 See LTSE Rule 1.160(u). will run from 4:00 p.m. ET to 5:00 p.m. ET. See 145 See 17 CFR 242.600(b)(57)–(58) and 17 CFR 152 See LTSE Rule 9.349(c) (providing, among LTSE Rule 1.160(bb)–(cc). 242.611. other things, that if the Exchange Board does not 135 See LTSE Rules 11.110(a) and 11.230(a)(2). 146 See Securities Exchange Act Release No. call the disciplinary proceeding for review, the 136 17 CFR 242.610(d). 53829 (May 18, 2006), 71 FR 30038, 30041 (May 24, proposed written decision of the LTSE Appeals 137 See LTSE Rule 11.310. See also LTSE Rule 2006) (File No. S7–10–04) (extending the Committee shall become final). 11.190(g) (relating to price sliding functionality to compliance dates for Rule 610 and Rule 611 of 153 See LTSE Rule Series 9.350. avoid violations of Rule 610(d) of Regulation NMS, Regulation NMS under the Act). 154 See generally LTSE Bylaws, Article X and 17 CFR 242.610(d)). 147 See, e.g., BATS Order at 49505, supra note 35 LTSE Rules Chapters 8 and 9. 138 See LTSE Rule 11.231. and DirectEdge Exchanges Order at 13163, supra 155 See LTSE Rule 2.120. 139 See LTSE Rule 11.350. note 59. 156 See LTSE Rule 9.216(b).

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1(c)(2) must be declared effective by the procedures and prerequisites for initial Commission further finds that LTSE’s Commission.157 and continued listing on LTSE, the rules satisfy the requirements of Section The Commission finds that the LTSE obligations of issuers with securities 10A(m) of the Act and Rule 10A–3 Bylaws and rules concerning its listed on LTSE, as well as rules thereunder and Section 10C of the Act disciplinary and oversight programs are describing the application and and Rule 10C–1 thereunder, relating to consistent with the requirements of qualification process, LTSE’s proposed audit and compensation committees, Sections 6(b)(6) and 6(b)(7) 158 of the Act listing rules for securities are virtually respectively.171 The Commission in that they provide fair procedures for identical to those of IEX.166 With believes that LTSE’s corporate the disciplining of members and respect to LTSE Rule 14.201, which is governance standards for listed issuers persons associated with members. The substantially similar to the analogous that require a fully independent audit Commission further finds that the rules rule of IEX, LTSE requires a company committee are designed to promote of LTSE provide it with the ability to seeking the initial listing of one or more independent and objective review and comply, and with the ability to enforce classes of securities on LTSE to oversight of the accounting and auditing compliance by its members and persons participate in a free confidential pre- practices of listed issuers and to associated with its members, with the application eligibility review to enhance audit committee independence, provisions of the Act, the rules and determine whether the company meets authority, and responsibility by regulations thereunder, and the rules of LTSE’s listing criteria and, if, upon implementing the standards set forth in LTSE.159 completion of this review, LTSE Rule 10A–3.172 In addition, the E. Listing and Trading on LTSE determines that a company is eligible Commission believes that LTSE’s for listing, LTSE will notify that proposed requirements relating to 1. Registration Under Section 12(b) of company in writing that it has been independent compensation committees the Act cleared to submit an original listing for listed issuers would benefit investors Once LTSE begins operations as a application. The Commission notes that, by implementing the standards set forth national securities exchange, a security if, upon completion of this review, the in Rule 10C–1, which requires that the will be considered for listing on LTSE Exchange determines that a company is independent directors of a listed issuer only if such security is registered ineligible for listing, the company may oversee executive compensation pursuant to Section 12(b) of the Act 160 request a review of LTSE’s matters, consider independence criteria or such security is subject to an determination pursuant to the process before retaining compensation advisers exemption.161 An issuer may register a set forth in LTSE Rule 9.555.167 and have responsibility for the appointment, compensation and security pursuant to Section 12(b) by 3. Corporate Governance Standards submitting to LTSE a listing application oversight of these advisers.173 The that provides certain required LTSE has proposed corporate corporate governance standards information.162 LTSE will review the governance standards in connection embodied in the listing rules of national listing application and, if the listing with securities to be listed and traded securities exchanges, in particular, play application is approved, will certify to on LTSE that are substantially similar to an important role in assuring that the Commission that it has approved the the corporate governance listing companies listed for trading on the security for listing and registration.163 standards of other exchanges.168 exchanges’ markets observe good Registration of the security will become Included in these standards are rules governance practices, including a effective thirty days after the receipt of requiring a majority of directors on a reasoned, fair, and impartial approach such certification by the Commission or listed issuer’s board to be independent; for determining the compensation of within a shorter period of time as the rules and independence requirements corporate executives.174 The Commission may determine.164 Once relating to audit and compensation Commission believes that the registration is effective, the security is committees and the oversight of Exchange’s rules will foster greater eligible for listing on LTSE.165 nominations; and rules requiring listed transparency, accountability, and issuers to adopt codes of conduct objectivity in the oversight of 2. Initial and Continuing Listing applicable to all their directors, officers compensation practices of listed issuers Standards and employees.169 The Commission and in the decision-making processes of The Commission finds that LTSE’s finds that LTSE’s proposed corporate their compensation committees.175 proposed initial and continuing listing governance standards for listed issuers standards are consistent with the contained in LTSE’s proposed rules are 48745 (November 4, 2003), 68 FR 64154 (November requirements of the Act. With respect to consistent with the Act.170 The 12, 2003) and IEX Order, supra note 48. 171 See 15 U.S.C. 78f(b)(5); 15 U.S.C. 78j–1(m); 15 the standards relating to the listing and U.S.C. 78j–3; 17 CFR 240.10A–3; 17 CFR 240.10C– delisting of companies, including 166 LTSE ’s proposed initial and continuing listing 1. standards for securities to be listed and traded on 172 See Securities Exchange Act Release No. LTSE are virtually identical to the current rules for 157 17 CFR 240.19d-1(c)(2). 47654 (April 9, 2003), 68 FR 18788 (April 16, 2003). IEX, except that LTSE will not have listing criteria 158 173 See Securities Exchange Act Release No. 15 U.S.C. 78f(b)(6) and (b)(7). for exchange-traded funds, portfolio depository 159 See Section 6(b)(1) of the Act, 15 U.S.C. 67220 (June 20, 2012), 77 FR 38422, 38425 (June 27, receipts, and index fund shares. The Commission 2012). 78f(b)(1). has previously determined that the initial and 174 See, e.g., Securities Exchange Act Release No. 160 15 U.S.C. 78l(b). continuing listing standards of IEX are consistent 68640 (January 11, 2013), 78 FR 4554, 4563 (January 161 15 U.S.C. 78l(c); LTSE Rule 14.203. with the Act. See LTSE Rules, Chapter 14 and IEX 22, 2013)(approving SR–NASDAQ–2012–109 162 15 U.S.C. 78l(b); LTSE Rule 14.202. Prior to Rules, Chapter 14. relating to rules for compensation committees for 167 submitting a listing application to LTSE, the issuer See Amendment No. 2, supra note 6. listed companies, upon which LTSE’s proposed will be required to participate in a free confidential 168 See proposed LTSE Rule Series 14.440, and rules for compensation committees are based). pre-application eligibility review, in which LTSE see, e.g., Nasdaq Rule Series 5600 and IEX Rule 175 See id. (finding Nasdaq compensation will determine whether the issuer meets its listing series 14.400. committee rules consistent with the Act). See also criteria and is eligible to submit a listing 169 See proposed LTSE Rules 14.405 and 14.406. Securities Exchange Act Release No. 68639 (January application. See LTSE Rule 14.201, which is based 170 The Commission notes that it has previously 11, 2013), 78 FR 4570 (January 22, 2013) (order on the equivalent Rule 14.201 of IEX’s rules. determined that the corporate governance standards approving NYSE’s compensation committee rules, 163 See LTSE Rule 14.203(f); 15 U.S.C. 78l(d). of other exchanges, with which LTSE’s proposed which was cited by Nasdaq as precedent for a 164 15 U.S.C. 78l(d). rules are commensurate, are consistent with the subsequent amendment to its own rules that was 165 See LTSE Rule 14.203(f); 15 U.S.C. 78l(d). Act. See, e.g., Securities Exchange Act Release No. filed on an immediately effective basis;) see

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As noted above, the Commission or the issuance of lower voting stock.181 privileges to securities of the same class, received one comment letter on LTSE’s The Commission notes that the Voting subject to the trading rules of the Form 1 application. In its comment Rights Policy, as set forth in LTSE’s Exchange.187 letter, the Council of Institutional proposed listing standards, is consistent F. Section 11(a) of the Act Investors (‘‘CII’’) advised that it could with the current voting rights provisions not support LTSE’s Form 1 application of NYSE and Nasdaq, as acknowledged Section 11(a)(1) of the Act 188 for two reasons. First, CII stated that the by CII in its letter.182 Other national prohibits a member of a national corporate governance requirements in securities exchanges that provide for the securities exchange from effecting LTSE’s Form 1 application (specifically, listing of equity securities also maintain transactions on that exchange for its its ‘‘Voting Rights Policy’’ 176) would shareholder voting rights provisions own account, the account of an ‘‘permit newly public companies to consistent with the NYSE and Nasdaq associated person, or an account over 183 have multi-class structures with rules. As noted above, Commission which it or its associated person unequal voting rights in conflict with rules do not mandate a ‘‘one share, one exercises investment discretion [CII’s] membership approved policies vote’’ requirement for listed issuers. (collectively, ‘‘covered accounts’’) supporting a one share, one vote For the forgoing reasons, the unless an exception applies. Rule 11a2– structure’’ with ‘‘no sunsets on such Commission believes that it is 2(T) under the Act,189 known as the structures.’’ 177 Second, CII stated that appropriate to approve LTSE’s Form 1 ‘‘effect versus execute’’ rule, provides LTSE’s Form 1 application ‘‘does not application with the inclusion of the exchange members with an exemption include any information about LTSE’s Voting Rights Policy. With respect to the from the Section 11(a)(1) prohibition. CII’s concerns about time-phased voting reported plans to update its application Rule 11a2–2(T) permits an exchange rights, no such rights are proposed by to include time-phased voting rights as member, subject to certain conditions, LTSE in its Form 1 application. Once a core element of its proposed corporate to effect transactions for covered 178 LTSE is registered as a national governance listing standards.’’ In accounts by arranging for an unaffiliated securities exchange, LTSE is required to addition, CII set forth its concerns about member to execute transactions on the file any changes to its rules as a time-phased voting rights, including exchange. To comply with Rule 11a2– proposed rule change under Section disproportionate empowerment of long- 2(T)’s conditions, a member: (i) Must 19(b) of the Act and Rule 19b–4,184 and term stakeholders and challenges in transmit the order from off the exchange the public will be provided notice and tracking ownership of those with super- floor; (ii) may not participate in the voting rights.179 given the opportunity to provide comments on any such proposed rule execution of the transaction once it has The issues raised in the CII Letter do change. been transmitted to the member not provide a basis for the Commission performing the execution;190 (iii) may to reject LTSE’s Form 1 application. 4. Trading Pursuant to Unlisted Trading not be affiliated with the executing Commission rules do not mandate that Privileges member; and (iv) with respect to an the rules of a national securities As an exchange, LTSE will be account over which the member or an exchange must provide for a ‘‘one share, permitted by Section 12(f) of the Act 185 associated person has investment one vote’’ requirement for listed issuers. to extend unlisted trading privileges to discretion, neither the member nor its In approving the current rules governing securities listed and registered on other associated person may retain any the voting rights of shareholders of national securities exchanges, subject to compensation in connection with common stock listed on the NYSE, Commission rules. In particular, Rule effecting the transaction except as American Stock Exchange (‘‘Amex’’), or 12f–5 under the Act requires an provided in the Rule. included on Nasdaq, the Commission exchange that extends unlisted trading In a letter to the Commission, LTSE stated that the new rules would protect privileges to securities to have in effect requested that the Commission concur investors from disparate voting rights a rule or rules providing for transactions with LTSE’s conclusion that LTSE plans that resulted in in the class or type of security to which members that enter orders into the LTSE 180 disenfranchisement. At the same the exchange extends unlisted trading trading system satisfy the requirements time, however, the Commission stated privileges.186 The Commission notes of Rule 11a2–2(T).191 For the reasons set that the new voting rights rules would that Chapter 14 of LTSE’s rules provides forth below, the Commission believes provide flexibility to listed companies for transactions in securities that meet that LTSE members entering orders into to devise their corporate capital specified criteria. Accordingly, pursuant the LTSE trading system will satisfy the structure by permitting disparate voting to Section 12(f) of the Act and Rule 12f– requirements of Rule 11a2–2(T). rights plans that do not disenfranchise 5 thereunder, the Exchange will be existing shareholders and that a permitted to extend unlisted trading 187 See proposed LTSE Rule 11.120, which states: company could, for example, have a ‘‘Any classes of securities listed or admitted to permissible dual class structure 181 Id. unlisted trading privileges on the Exchange shall be resulting from an initial public offering 182 CII Letter at 8. See also 1994 Approval Order, eligible to become designated for trading on the supra note 180. Exchange in accordance with the Rules of Chapter 183 See, e.g., Securities Exchange Act Release No. 14.’’ LTSE’s rules currently do not provide for the Securities Act Release No. 71037 (December 11, 37481(July 25, 1996), 61 FR 40270 (August 1, 1996) trading of exchange-traded funds, portfolio 2013), 78 FR 76179 (December 16, 2013) (SR– (approving a similar voting rights provision for depository receipts, and index fund shares, or for NASDAQ–2013–147). Chicago Stock Exchange, Inc., n/k/a NYSE Chicago, the trading of options, security futures, or other 176 See LTSE Rule 14.413, Supplementary Inc.; the provision is now contained in Rules of similar instruments. Material .01. NYSE Chicago, Inc., Article 22, Rule 20). See also 188 15 U.S.C. 78k(a)(1). 177 CII Letter at 1–2. IEX Rule 14.413, Supplementary Material .01, 189 17 CFR 240.11a2–2(T). 178 Id. which appears to be the model for the LTSE’s 190 This prohibition also applies to associated 179 CII Letter at 6–7. proposed Voting Rights Policy. persons. The member may, however, participate in 180 See Securities Exchange Act Release No. 184 15 U.S.C. 78s(b) and 17 CFR 240.19b–4. clearing and settling the transaction. 35121 (December 19, 1994), 59 FR 66570 (December 185 15 U.S.C. 78l(f). 191 See Letter from Eric Ries, Chief Executive 27, 1994) (order approving rules regarding 186 See 17 CFR 240.12f-5. See also Securities Officer, LTSE, to Brent Fields, Director, Office of shareholder voting rights for NYSE, Amex, and Exchange Act Release No. 35737 (April 21, 1995), the Secretary, and Brett Redfearn, Director, Division National Association of Securities Dealers, Inc., on 60 FR 20891 (April 28, 1995) (File No. S7–4–95) of Trading and Markets, Commission, dated March behalf of Nasdaq) (‘‘1994 Approval Order’’). (adopting Rule 12f–5 under the Act). 8, 2019 (‘‘LTSE 11(a) Letter’’).

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The Rule’s first requirement is that believes that an LTSE member and its members trading for covered accounts orders for covered accounts be associated persons do not participate in over which they exercise investment transmitted from off the exchange floor. the execution of an order submitted to discretion must comply with this In the context of automated trading the LTSE trading system.196 condition in order to rely on the rule’s systems, the Commission has found that Third, Rule 11a2–2(T) requires that exemption.200 the order be executed by an exchange the off-floor transmission requirement is G. Exemption From Section 19(b) of the met if a covered account order is member who is unaffiliated with the member initiating the order. The Act With Regard to FINRA and NYSE transmitted from a remote location Rules Incorporated by Reference directly to an exchange’s floor by Commission has stated that this electronic means.192 LTSE has requirement is satisfied when LTSE proposes to incorporate by represented that LTSE does not have a automated exchange facilities, such as reference certain FINRA and NYSE rules physical trading floor, and the LTSE the LTSE trading system, are used, as as LTSE rules.201 Thus, for certain LTSE trading system will receive orders from long as the design of these systems rules, Exchange members will comply members electronically through remote ensures that members do not possess with an LTSE rule by complying with terminals or computer-to-computer any special or unique trading the FINRA or NYSE rule referenced 202 interfaces.193 The Commission believes advantages in handling their orders after therein. In connection with its that the LTSE trading system satisfies transmitting them to the exchange.197 this off-floor transmission requirement. LTSE has represented that the design of connection with effecting transactions for the the LTSE trading system ensures that no account during the period covered by the statement. Second, the Rule requires that the See 17 CFR 240.11a2–2(T)(d). See also 1978 member and any associated person not member has any special or unique Release, supra note 194 (stating ‘‘[t]he contractual participate in the execution of its order trading advantage in the handling of its and disclosure requirements are designed to assure after the order has been transmitted. orders after transmitting its orders to that accounts electing to permit transaction-related LTSE.198 Based on LTSE’s compensation do so only after deciding that such LTSE represented that at no time arrangements are suitable to their interests’’). following the submission of an order is representation, the Commission believes 200 LTSE represented that it will advise its a member or an associated person of the that the LTSE trading system satisfies membership through the issuance of an Information member able to acquire control or this requirement. Circular that those members trading for covered accounts over which they exercise investment influence over the result or timing of the Fourth, in the case of a transaction effected for an account with respect to discretion must comply with this condition in order order’s execution.194 According to to rely on the rule’s exemption. See LTSE 11(a) LTSE, the execution of a member’s order which the initiating member or an Letter, supra note 191. is determined solely by what quotes and associated person thereof exercises 201 See LTSE Rule 1.170. See Letter from Eric investment discretion, neither the Ries, Chief Executive Officer, LTSE, to Brent Fields, orders are present in the system at the Director, Office of the Secretary, and Brett Redfearn, time the member submits the order, and initiating member nor any associated person thereof may retain any Director, Division of Trading and Markets, the order priority based on the LTSE Commission, dated March 8, 2019 (‘‘Exemption compensation in connection with rules.195 Accordingly, the Commission Request Letter’’). See also Letter from Eric Ries, effecting the transaction, unless the Chief Executive Officer, LTSE, to Vanessa person authorized to transact business Countryman, Acting Directors, Office of the 192 See, e.g., Nasdaq Order, supra note 35; Secretary, and Brett Redfearn, Director of Division Securities Exchange Act Release Nos. 61419 for the account has expressly provided of Trading and Markets, Commission, dated April (January 26, 2010), 75 FR 5157 (February 1, 2010) otherwise by written contract referring 16, 2019 (‘‘Exemption Request Letter Addendum’’). (SR–BATS–2009–031) (approving BATS options to Section 11(a) of the Act and Rule 202 LTSE proposes to incorporate by reference the trading); 59154 (December 23, 2008), 73 FR 80468 11a2–2(T) thereunder.199 LTSE 12000 and 13000 Series of the FINRA Manual (Code (December 31, 2008) (SR–BSE–2008–48) (approving of Arbitration Procedures for Customer Disputes equity securities listing and trading on BSE); 57478 and Code of Arbitration Procedures for Industry market makers on LTSE. LTSE has represented that (March 12, 2008), 73 FR 14521 (March 18, 2008) Disputes). See LTSE Rule 12.110 (Arbitration). In market makers, if any, will submit quotes in the (SR–NASDAQ–2007–004 and SR–NASDAQ–2007– addition, LTSE proposes to incorporate by reference form of orders in their assigned symbols. 080) (approving NOM options trading); 44983 FINRA Rules 4360 (Fidelity Bonds), 2090 (Know 196 (October 25, 2001), 66 FR 55225 (November 1, 2001) See, e.g., BATS Order at 49505, supra note 35 Your Customer), 2111 (Suitability), 2241 (Research (SR–PCX–00–25) (approving Archipelago and DirectEdge Exchanges Order at 13164, supra Analysts and Research Reports), 2210 Exchange); 29237 (May 24, 1991), 56 FR 24853 note 59. (Communications with the Public), 3230 (May 31, 1991) (SR–NYSE–90–52 and SR–NYSE– 197 See, e.g., BATS Order at 49505, supra note 35 (Telemarketing), 4560 (Short-Interest Reporting), 90–53) (approving NYSE’s Off-Hours Trading and DirectEdge Exchanges Order at 13164, supra 4110 (Capital Requirements), 4120 (Regulatory Facility); and 15533 (January 29, 1979), 44 FR 6084 note 59. In considering the operation of automated Notification and Business Curtailment), 4140 (January 31, 1979) (‘‘1979 Release’’). execution systems operated by an exchange, the (Audit), 4511 (General Requirements), 4512 193 See LTSE 11(a) Letter, supra note 191. Commission noted that, while there is not an (Customer Account Information), 4513 (Records of 194 See id. LTSE notes that a member may cancel independent executing exchange member, the Written Customer Complaints), 3130 (Annual or modify the order, or modify the instructions for execution of an order is automatic once it has been Certification of Compliance and Supervisory executing the order, after the order has been transmitted into the system. Because the design of Procedures), 3210 (Accounts At Other Broker- transmitted, provided that such cancellations or these systems ensures that members do not possess Dealers and Financial Institutions), 5310 (Best modifications are transmitted from off an exchange any special or unique trading advantages in Execution and Interpositioning), 5270 (Front floor. The Commission has stated that the non- handling their orders after transmitting them to the Running of Block Transactions), 4590 participation requirement is satisfied under such exchange, the Commission has stated that (Synchronization of Member Business Clocks), 7440 circumstances so long as such modifications or executions obtained through these systems satisfy (Recording of Order Information), 7450 (Order Data cancellations are also transmitted from off the floor. the independent execution requirement of Rule Transmission Requirements), 2268 (Requirements See Securities Exchange Act Release No. 14563 11a2–2(T). See 1979 Release, supra note 192. When Using Predispute Arbitration Agreements for (March 14, 1978), 43 FR 11542 (March 17, 1978) 198 See LTSE 11(a) Letter, supra note 191. Customer Accounts). See LTSE Rules 2.240 (‘‘1978 Release’’) (stating that the ‘‘non- 199 See, e.g., BATS Order at 49505, supra note 35 (Fidelity Bonds), 3.150 (Know Your Customer), participation requirement does not prevent and DirectEdge Exchanges Order at 13164, supra 3.170 (Suitability), 3.230 (Payments Involving initiating members from canceling or modifying note 59. In addition, Rule 11a2–2(T)(d) requires a Publications that Influence the Market Price of a orders (or the instructions pursuant to which the member or associated person authorized by written Security), 3.280 (Communications with Customers initiating member wishes orders to be executed) contract to retain compensation, in connection with and the Public), 3.292 (Telemarketing), 3.293 after the orders have been transmitted to the effecting transactions for covered accounts over (Short-Interest Reporting), 4.110 (Capital executing member, provided that any such which such member or associated persons thereof Compliance), 4.120 (Regulatory Notification and instructions are also transmitted from off the exercises investment discretion, to furnish at least Business Curtailment), 4.140 (Audit), 4.511 floor’’). annually to the person authorized to transact (General Requirements), 4.512 (Customer Account 195 See LTSE 11(a) Letter, supra note 191. The business for the account a statement setting forth Information), 4.513 (Record of Written Customer Commission notes that LTSE has proposed rules for the total amount of compensation retained by the Complaints), 5.130 (Annual Certification of the registration, obligations, and operation of member or any associated person thereof in Compliance and Supervisory Procedures), 5.170

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proposal to incorporate FINRA and securities exchange be, and it hereby is, SECURITIES AND EXCHANGE NYSE rules by reference, LTSE granted. COMMISSION requested, pursuant to Rule 240.0–12,203 It is furthered ordered that operation [Release No. 34–85813; File No. SR– an exemption under Section 36 of the of LTSE is conditioned on the NASDAQ–2019–033] Act from the rule filing requirements of satisfaction of the requirements below: Section 19(b) of the Act for changes to A. Participation in National Market Self-Regulatory Organizations; The those LTSE rules that are effected solely System Plans. LTSE must join the Nasdaq Stock Market LLC; Notice of by virtue of a change to a cross- Consolidated Tape Association Plan, the Filing and Immediate Effectiveness of referenced FINRA or NYSE rule.204 Consolidated Quotation Plan, the Proposed Rule Change To Amend the LTSE proposes to incorporate by Nasdaq UTP Plan, the National Market Equity 7 Pricing Schedule, Sections reference categories of rules (rather than System Plan Establishing Procedures 112, 123, 135, 146, 155 and 158 individual rules within a category) that Under Rule 605 of Regulation NMS, the are not trading rules. LTSE agrees to Regulation NMS Plan to Address May 9, 2019. provide written notice to its members Extraordinary Market Volatility, the Pursuant to Section 19(b)(1) of the whenever a proposed rule change to a Plan for the Selection and Reservation Securities Exchange Act of 1934 FINRA or NYSE rule that is of Securities Symbols, and the National (‘‘Act’’),1 and Rule 19b–4 thereunder,2 incorporated by reference is proposed Market System Plan Governing the notice is hereby given that on April 25, and whenever any such proposed Consolidated Audit Trail. 2019, The Nasdaq Stock Market LLC change is approved by the Commission B. Intermarket Surveillance Group. (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the or otherwise becomes effective.205 LTSE must join the Intermarket Securities and Exchange Commission Using its authority under Section 36 Surveillance Group. (‘‘SEC’’ or ‘‘Commission’’) the proposed of the Act,206 the Commission is hereby C. Minor Rule Violation Plan. A rule change as described in Items I, II, granting LTSE’s request for an MRVP filed by LTSE under Rule 19d– and III below, which Items have been exemption, pursuant to Section 36 of 1(c)(2) must be declared effective by the prepared by the Exchange. The the Act, from the rule filing Commission.208 Commission is publishing this notice to requirements of Section 19(b) of the Act D. Rule 17d–2 Agreement. An solicit comments on the proposed rule with respect to the rules that LTSE agreement pursuant to Rule 17d–2 209 change from interested persons. 207 proposes to incorporate by reference. that allocates regulatory responsibility I. Self-Regulatory Organization’s 210 This exemption is conditioned upon for those matters specified above Statement of the Terms of Substance of LTSE providing written notice to its must be approved by the Commission, the Proposed Rule Change members whenever FINRA or the NYSE or LTSE must demonstrate that it proposes to change a rule that LTSE has independently has the ability to fulfill The Exchange proposes to amend the incorporated by reference. The all of its regulatory obligations. Equity 7 Pricing Schedule, Sections 112, Commission believes that this E. Participation in Multi-Party Rule 123, 135, 146, 155, and 158 to: (i) exemption is appropriate in the public 17d–2 Plans. LTSE must become a party Reduce fees for trial periods, pre- interest and consistent with the to the multi-party Rule 17d–2 production systems development, protection of investors because it will agreements concerning the surveillance, academic use, and technical and promote more efficient use of investigation, and enforcement of administrative support services; and (ii) Commission and SRO resources by common insider trading rules. specify that the $500,000 enterprise avoiding duplicative rule filings based F. RSA. LTSE must finalize the license for the distribution of Depth-of- on simultaneous changes to identical provisions of the RSA with its Book data includes Professional rules of more than one SRO. regulatory services provider, as Subscribers. These proposed changes described above, that will specify the are described in further detail below. H. Conclusion The text of the proposed rule change LTSE and Commission rules for which is available on the Exchange’s website at It is ordered that the application of the regulatory services provider will http://nasdaq.cchwallstreet.com/, at the LTSE for registration as a national provide certain regulatory functions, or principal office of the Exchange, and at LTSE must demonstrate that it the Commission’s Public Reference (Transactions for or by Associated Persons), 10.220 independently has the ability to fulfill (Best Execution and Interpositioning), 10.260 (Front Room. Running of Block Transactions), 11.420(c), (d) and all of its regulatory obligations. (e) (Order Audit Trail System Requirements), It is further ordered, pursuant to II. Self-Regulatory Organization’s 12.110 (Arbitration), respectively. LTSE also Section 36 of the Act,211 that LTSE shall Statement of the Purpose of, and proposes to incorporate by reference certain be exempted from the rule filing Statutory Basis for, the Proposed Rule definitions from NYSE Rule 7410. See LTSE Rule 11.420(a) (Order Audit Trail System Requirements). requirements of Section 19(b) of the Act Change 203 See 17 CFR 240.0–12. with respect to the FINRA and NYSE In its filing with the Commission, the 204 See Exemption Request Letter and Exemption rules that LTSE proposes to incorporate Exchange included statements Request Letter Addendum, supra note 201. by reference into LTSE’s rules, subject concerning the purpose of and basis for 205 LTSE will provide such notice through a to the conditions specified in this Order. posting on the same website location where LTSE the proposed rule change and discussed posts its own rule filings pursuant to Rule 19b–4 By the Commission. any comments it received on the under the Act, within the required time frame. The Eduardo A. Aleman, proposed rule change. The text of these website posting will include a link to the location statements may be examined at the on the FINRA or NYSE website where FINRA’s or Deputy Secretary. NYSE’s proposed rule change is posted. See id. [FR Doc. 2019–10037 Filed 5–14–19; 8:45 am] places specified in Item IV below. The 206 15 U.S.C. 78mm. BILLING CODE 8011–01–P Exchange has prepared summaries, set 207 The Commission previously exempted certain forth in sections A, B, and C below, of SROs from the requirement to file proposed rule 208 the most significant aspects of such changes under Section 19(b) of the Act. See, e.g., 17 CFR 240.19d–1(c)(2). 209 statements. IEX Order, supra note 48; ISE Mercury Order, supra 17 CFR 240.17d–2. note 50; MIAX Pearl Order, MIAX Pearl Order and 210 See supra notes 116–117 and accompanying BATS Order, supra note 35; DirectEdge Exchanges text. 1 15 U.S.C. 78s(b)(1). Order, supra note 59. 211 15 U.S.C. 78mm. 2 17 CFR 240.19b–4.

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A. Self-Regulatory Organization’s September 2006.7 Removal of this Book trial offer at Section 123(e) allows Statement of the Purpose of, and section will not alter any fee or service for a one-time 30-day waiver of Statutory Basis for, the Proposed Rule offered by the Exchange, as this service subscriber fees for all new and potential Change is not currently offered by the Exchange. individual subscribers: 1. Purpose Proposed Section 112 30-Day Free-Trial Offer: Nasdaq shall offer all new individual Subscribers and potential As part of an ongoing effort to The specific changes proposed by the new individual Subscribers a 30-day waiver increase the transparency of market data Exchange, and the purposes of each, are of the Subscriber fees for Nasdaq TotalView. rules and lower fees and administrative as follows: This fee waiver period shall be applied on a rolling basis, determined by the date on costs for market data customers, the 1. Fee Waivers Exchange proposes to: (i) Reduce fees which a new individual Subscriber or for trial periods, pre-production systems The Exchange currently waives potential individual Subscriber is first development, academic use, and market data fees to: (i) Encourage a new entitled by a Distributor to receive access to Nasdaq TotalView. A Distributor may only technical and administrative support or potential customer to test a product or service through trial offers; (ii) allow provide this waiver to a specific individual services; and (ii) specify that the Subscriber once. $500,000 enterprise license for the a new distributor time to develop its distribution of Depth-of-Book data systems and procedures before Nasdaq Trading Insights at Section includes Professional Subscribers.3 The disseminating Exchange information; 146(b)(1) provides a trial offer that is proposed waivers of fees and other (iii) provide data for academic research available once per firm for each version charges apply to the market data or classroom-related activity; and (iv) of the product, provided that it is products and services listed in proposed allow distributors to use Exchange cancelled before the end of the 30-day Section 112(a).4 information for technical and period to avoid monthly fees: Nothing in this filing raises any fee administrative support services not 30-Day Trial Offer. Upon request, Nasdaq charged by the Exchange. On the directly related to external distribution shall provide firms a 30-day waiver of the contrary, the Exchange anticipates that or securities trading. Some of these fee fees for the Nasdaq Trading Insights product, the proposal will lower fees for some waivers are partially or fully codified in which consists of all four components listed customers. the Nasdaq rule book, while others are above in (a)(1)–(a)(4). However, availability set forth in policies published on of the Liquidity Dynamics Analysis Current Section 112 NasdaqTrader.com,8 or are an component is currently delayed. This waiver established practice of the Exchange not may be provided only once per firm for each Proposed Section 112 will replace version of the product, as designated by current Section 112, which sets forth a explicitly described in the rule book or Nasdaq. A firm will be charged the monthly terminal fee for receiving Nasdaq Level in published policies. The Exchange fee rate listed below in (b)(2) if it does not 2 or Level 3 service. The Nasdaq Level proposes to reduce fees for multiple cancel by the conclusion of the trial offer. products by codifying uniform fee 2 service referenced in this rule was a The QView product at Section 158 waivers for trial periods, pre-production UTP Plan service managed by Nasdaq as contains a trial offer that is available to systems development, academic use, administrator of the Plan ‘‘that returning purchasers (not just new or and technical and administrative provide[d] Subscribers with query prospective customers) for a period of support services. capability with respect to quotations time not to exceed 30 days for each and sizes in securities included in the 1. Trial Offers version of QView or the Latency Optics Nasdaq System, best bid and asked add-on service: quotations, and Transaction Reports.’’ 5 The Exchange currently extends trial Nasdaq Level 3 was a UTP Plan service offers for three products: Depth-of-Book The Exchange shall waive fees under this ‘‘that provide[d] Nasdaq market products at Section 123, Nasdaq Trading Section for 30 days for any new, prospective Insights at Section 146, and QView at or returning purchaser of either QView or the participants with input and query Latency Optics add-on service. This waiver capability with respect to quotations Section 158.9 The Exchange proposes to reduce fees for new, prospective or will be available only once per customer for and sizes in securities included in the any version of QView or the add-on service. Nasdaq System, best bid and asked returning customers by replacing these quotations, and Transaction Reports.’’ 6 three product-specific fee waivers with The Exchange proposes to reduce fees These services have not been offered by a standard waiver applicable to any across multiple products by replacing the UTP Plan since Amendment 17 to market data product listed at Section these three disparate offers with a the Plan, which went into effect in 112(a), and any version of a listed single, standard offer for any product product identified by the Exchange as version listed as eligible on 3 The Exchange initially filed the proposed eligible for an offer on NasdaqTrader.com and specifically changes on April 12, 2019, (SR–Nasdaq–2019–030). NasdaqTrader.com. identified in subsection (a) of proposed The Exchange withdrew that filing on April 25, The three trial offers currently offered Section 112. The proposed offer will 2019, and submitted this filing. by the Exchange differ somewhat in waive fees for up to 30 days,10 will be 4 The following sections are listed in Section 112(a): 119 (Market Data Distributor Fees), 121 scope and limitations. The Depth-of- available to new, prospective, or 11 (Nasdaq Report Center), 122 (Historical Research returning distributors, recipients and and Administrative Reports), 123 (Nasdaq Depth-of- 7 Securities Exchange Act Release No. 34–54426 Book Data), 126 (Distribution Models), 135 (Nasdaq (September 12, 2006), 71 FR 54852 (September 19, 10 A customer may elect to utilize less than 30 Monthly Administrative Fee), 137 (Nasdaq 2006) (S7–24–89) (replacing the definitions of Level days for a trial offer if it intends to preserve the FilterView Service), 139 (NLS and NLS Plus Data 2 and Level 3 services with unrelated terms). option of using whatever time remains on the offer Feeds), 140 (Nasdaq Share Volume Service), 146 8 All references to NasdaqTrader.com refer to the period at a later date within the twelve month (Nasdaq Trading Insights), 147 (Nasdaq Basic), 152 current website and any successor website, as period. (Nasdaq Daily Short Volume and Monthly Short specified at proposed Section 112(b)(1). 11 A new customer is a customer that has never Sale Transaction Files), 157 (Nasdaq MatchView 9 The Exchange also allows distributors to purchased the product or service subject to the trial Feed) and 158 (QView). provide trial or demonstration access to subscribers offer, and has decided to purchase the product. A 5 Securities Exchange Act Release No. 34–53131 as part of the marketing process. See http:// prospective customer is a customer that has never (January 17, 2006), 71 FR 3896 (January 24, 2006) www.nasdaqtrader.com/content/ purchased the product or service subject to the trial (S7–24–89) (defining Level 2 service). AdministrationSupport/Policy/ offer, and has not yet decided whether to purchase 6 Id. (defining Level 3 service). FEEEXEMPTIONSPOLICY.pdf. the product. A returning customer is a customer

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users,12 and is limited to 30 days over (A) The waiver is limited to 30 days for The waiver will be available for any a twelve month period for each version each version of the product or service over product or service identified in of the product.13 While the products any 12 month period; Subsection (a) and any version listed as eligible for this offer are listed in (B) The product or service is listed in eligible for such a waiver on 14 Subsection (a), and the specific version of the Section 112(a), the specific versions of product or service is listed as eligible for a NasdaqTrader.com. The proposed rule these products eligible for the waiver trial offer on NasdaqTrader.com (the will specify that the Exchange shall will be identified on NasdaqTrader.com Exchange will provide a 30-day notice for the waive distributor, subscriber and to allow the Exchange an opportunity to withdrawal of any version of product or monthly administrative fees for up to 3 extend such offers to new versions of a service from eligibility); and months 21 to allow the distributor to product as such versions become (C) The Exchange shall waive any fee to a prepare its systems and procedures for available, and to withdraw older distributor for any new, prospective or ‘‘production’’ (i.e., the distribution of returning recipient or user for up to 30 days, Exchange information); the waiver will versions from eligibility that the which may be taken in discontinuous Exchange has elected to no longer segments, for any product or service listed in remain in place for the period of time promote. The Exchange will provide a Subsection (a) and any version listed as required to prepare systems and 30-day notice for the withdrawal of any eligible for a trial offer on Nasdaqtrader.com, procedures for production, or when version of any product or service from where the distributor is itself waiving its own production begins, whichever is eligibility. Distributors may extend trial fees to such new, prospective, or returning earlier.22 The version of the products offers to recipients or users for fees recipient or user for the same period of time, eligible for the pre-production waiver subject to usage reporting requirements set will be listed on NasdaqTrader.com. associated with any product or service forth on NasdaqTrader.com. listed in proposed Section 112(a) and Distributors must apply for this waiver version listed as eligible for a Trial Offer As conforming changes, the Exchange and report to the Exchange how the on NasdaqTrader.com,15 subject to the proposes to delete the current trial offers information is used, providing the same usage reporting requirements,16 and the at Sections 123(e), 146(b)(1), and 158(c) categories of data as distributors in Exchange will waive any fees owed by and renumber the remaining production.23 The Exchange will 17 the distributor for the underlying subparagraphs in Section 146. approve the pre-production waiver for customer. Distributors will administer The purpose of the proposal is to any distributor that successfully this trial offer program for recipients reduce fees for new, prospective, or demonstrates through its application and users on behalf of the Exchange, returning customers and to improve and reporting that it meets all of the making trial offers available to new, transparency and consistency in the criteria set forth in proposed Section prospective, or returning recipients and application of trial offers. The proposed 112(b)(2).24 The proposed rule reads as users on the same basis as the Exchange. changes will not increase any fee or follows: Proposed Section 112(b)(1) reads as charge. Pre-Production Waivers. The Exchange follows: 2. Pre-Production Waivers shall waive any fees for a distributor that requires time to prepare its systems and Trial Offers. The Exchange shall waive any The Exchange currently waives fees procedures to distribute Exchange fee for up to 30 days, which may be taken for new distributors for up to three information, provided that: in discontinuous segments, for any new, months to allow them time to prepare (A) The waiver is only available for the prospective, or returning distributor, systems and procedures for the period of time required to prepare systems recipient or user for any product or service 18 and procedures to distribute Exchange listed in Subsection (a), for any version listed distribution of Exchange information. Distributors require data for testing and information, or the start of production, as eligible for a trial offer on whichever occurs first, for a period of time Nasdaqtrader.com or any successor website development before actually not to exceed 3 months; (collectively, ‘‘Nasdaqtrader.com’’), provided distributing such data, and the waiver (B) The waiver will only be available for that: reflects a long-standing industry and products or services identified in Subsection Exchange practice to waive fees during (a) above and the version is listed as eligible that had purchased the product or service at one this period. The current policy, for such a waiver on NasdaqTrader.com; and time, but cancelled that service at least six months published on NasdaqTrader.com, (C) The waiver must be pre-approved by before the trial offer is to take place. provides that distributors may be the Exchange based on an application and 12 Some market data products are exclusive to subject to usage reporting requirements set distributors, recipients, or users, respectively. When exempt from distributor, subscriber and forth on NasdaqTrader.com that demonstrate announcing a product as eligible for a trial offer on monthly administrative fees for up to compliance with the rules set forth herein. NasdaqTrader.com, the Exchange will specify three months ‘‘while the Distributor is which of these three groups will be eligible for the receiving a Data Feed and is in the 21 The pre-production waiver may be less than 3 offer in accordance with the applicable rule. 13 process of development work to months if the distributor requires less time to The waiver may be taken in discontinuous prepare its systems and procedures for production, segments, meaning, for example, that a customer facilitate the intended internal or 19 or if production begins in less than 3 months. may end the trial offer after a two week period, external distribution of the data.’’ Distributors bear the burden of demonstrating to the preserving the remaining time for further testing to Fees commence at the end of the three Exchange that the full 3 month period is required, take place at a later date within the 12 month month period, or when the distributor based on its application and reporting as set forth period. starts to distribute the data, whichever on NasdaqTrader.com. 14 For historical reports, the waiver will be for one 22 20 Distributors may engage in further systems month of data. Historical data are offered in comes first. development after production has begun, but the Sections 122 (Historical Research and The Exchange proposes to reduce fees proposed waiver shall not apply to any such post- Administrative Reports), 140 (Nasdaq Share for distributors by introducing a pre- production systems development. Volume Service), and 152 (Nasdaq Daily Short production waiver at Section 112(b)(2). 23 The usage reporting requirements for any Volume and Monthly Short Sale Transaction Files), distributor in Pre-Production shall be the same as all of which may include historical data. distributors in full production. 15 17 The Exchange also proposes to remove an As noted above, all references to 24 Typically, distributors will only be eligible for outdated reference to a trial period ending March NasdaqTrader.com refer to the current website and one pre-production waiver, as eligibility for the 21, 2011, at Section 155 (Short Sale Monitor). any successor website, as specified at proposed waiver ends once production begins. Nevertheless, 18 Section 112(b)(1). See http://www.nasdaqtrader.com/content/ distributors that terminate their relationship with 16 The usage reporting requirements for any AdministrationSupport/Policy/FEEEXEMPTIONS Nasdaq may be eligible for a second waiver to the distributor undergoing a trial offer shall be the same POLICY.pdf. extent that changes in technology require additional as distributors in full production. The trial offer 19 See id. pre-production development prior to restarting proposal imposes no new reporting requirement. 20 See id. production.

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The purpose of the proposal is to service, and report usage, subject to the light of the addition of proposed Section reduce development costs for new same usage reporting requirements as 112(b)(3). distributors entering into production non-academic recipients. No The purpose of this proposal is to and to improve transparency and information obtained under this type of promote university-level research and consistency in the application of pre- waiver may be distributed externally teaching, as well as overall financial production waivers. The proposal does except in support of certain non-profit literacy, by lowering the cost for not increase any fee or charge. financial literacy programs or to support professors, teachers and students and certain financial literacy programs to 3. Academic Waivers teaching or research at an accredited college or university.28 Information obtain and utilize Exchange The Exchange has implemented an disseminated pursuant to the academic information. The proposal will not academic waiver policy that allows waiver may not be used for actual (as increase any fee or charge. colleges, universities, and other opposed to simulated) trading activity, accredited academic institutions to 4. Technical and Administrative or to support for-profit activity, Support obtain a fee waiver for students and including, but not limited to, any use of professors engaged in research or Exchange information by an academic The Exchange currently exempts 25 teaching. To obtain the waiver, institution to provide services to a for- subscribers that are used in an academic institutions must execute all profit entity in support of any business enumerated list of indirect support agreements required for the product or or trading activity. Distributors may functions—but not directly involved in service, report the number of administer the academic waiver the distribution of Exchange subscribers, devices or other applicable program on behalf of the Exchange on information or the trading of units of count to Nasdaq on a monthly securities—from monthly subscriber the same basis as the Exchange. 30 basis, and reapply on a yearly basis for Proposed Section 112(b)(3) reads as fees. This internal usage policy is 26 described on NasdaqTrader.com, and continued eligibility. Academic follows: waivers may not be used for actual (as derives from a long-standing industry opposed to simulated) securities (3) Academic Waivers. Any accredited practice of exempting support functions trading, and the waiver does not cover college or university, as well as non-profit from fees. The currently-exempted the following uses of data: vocational financial literacy programs dedicated to serve support functions are: advertising, education, university endowment primary or secondary school students or account maintenance, authorizations other underserved populations, may apply to programs, unaccredited academic and entitlements, customer service, data a distributor or the Exchange to waive any fee control, data quality, development,31 institutions, use in support of actual or charge for any product or service securities trading, external distribution identified in Subsection (a) and any version demonstration, distributor software of the data, or off-site distribution of the listed as eligible for such a waiver on sales, promotion, technical operations, data.27 NasdaqTrader.com, and used by students or technical support, testing and trade The Exchange proposes to encourage professors to perform academic research or shows.32 A distributor making use of the use of Exchange information by classroom-related activities. All such this internal usage policy must provide academic institutions by eliminating the applications for waiver shall be approved by Nasdaq with information about, or a enumerated fees and expanding the the Exchange or the distributor based on a demonstration of, how each technical academic waiver policy to include determination that all of the criteria set forth and administrative support subscriber is certain financial literacy programs. An herein are met, specifically the following: used, and must be prepared to identify accredited college or university or non- (A) Recipients of an academic waiver must all administrative entitlements during profit financial literacy program would reapply on a yearly basis, must sign any any onsite review.33 This fee waiver be able to apply to either a distributor agreement required to obtain that product or does not apply to a subscriber or the Exchange for the academic service, and report usage as specified on supporting the news, research or trading NasdaqTrader.com; and waiver, as is currently allowed under divisions of the distributor, or used in (B) No information provided under an the existing policy. All applicants that academic waiver may be distributed any way to support the trading of 34 can demonstrate that all of the criteria externally, except in support of non-profit securities. Exempt subscribers may set forth in Section 112(b)(3) are met financial literacy programs or to support only be used by employees of the will be approved for the waiver by the teaching or research at an accredited college distributor and must be located on the Exchange or the distributor. The or university, or used in any way for actual distributor’s premises (unless the proposed rule would allow non-profit (rather than simulated) trading, or to support subscriber is used for sales or financial literacy programs to apply for for-profit activity, including, but not limited marketing).35 a waiver as well—a policy which has to, any use of Exchange information by an The Exchange proposes to lower been followed informally in the past, academic institution to provide services to a distributor’s fees by codifying this but which the Exchange now proposes for-profit entity in support of any business or policy in its rule book, and to re- to formalize as part of the rule book. trading activity. designate the name of the policy from ‘‘internal usage’’ to ‘‘technical and Beneficiaries of the academic waiver As a conforming change, the administrative support.’’ The proposed would be required to reapply on a Exchange proposes to delete the last technical and administrative support yearly basis, sign any agreement sentence of current Section 135, which required to obtain that product or relates to an academic waiver for 30 See http://www.nasdaqtrader.com/content/ administrative fees,29 as superfluous in 25 See http://www.nasdaqtrader.com/content/ AdministrationSupport/Policy/FEEEXEMPTIONS AdministrationSupport/Policy/ACADEMICWAIVER POLICY.pdf. POLICY.pdf. Note that the waiver does not cover 28 Non-profit financial literacy programs may 31 ‘‘Development’’ in this context refers to post- access or telecommunications charges. Section 135 distribute Nasdaq data to primary and secondary production systems development, in contrast to pre- also provides that the Exchange may waive its school students and other underserved groups for production systems development, discussed above. monthly Administrative Fee for colleges and computer-assisted learning. 32 See http://www.nasdaqtrader.com/content/ universities for devices used by students and 29 Section 135 currently states: ‘‘Nasdaq may AdministrationSupport/Policy/FEEEXEMPTIONS professors in performing university or college waive the foregoing fee for colleges and universities POLICY.pdf. research or classroom-related activities. for devices used by students and professors in 33 See id. 26 See id. performing university or college research or 34 See id. 27 See id. classroom-related activities.’’ 35 See id.

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waiver will exempt the same support Exchange through application and reporting As part of its effort to ease services from fees as the current policy: that all of the criteria set forth herein are met; administrative burdens on its Advertising, account maintenance, (B) Any distributor granted such a waiver customers, the Exchange proposes to authorizations and entitlements, shall report exempt usage in the same modify the text of Section 123(c)(3) to manner as non-exempt usage as set forth on customer service, data control, data NasdaqTrader.com; explicitly state that Nasdaq information quality, development, demonstration, (C) Exempt subscribers must be located on may be distributed to both Professional distributor software sales, promotion,36 the distributor’s premises, unless used for and Non-Professional Subscribers in the technical operations, technical support sales or marketing; and context of a brokerage relationship. This and testing. As is the case under current (D) No Exchange information obtained will increase the value of the enterprise policy, the fee waiver would not apply under such waiver may be distributed license to distributors by removing the to a subscriber supporting the news, externally or used in support of trading 10 percent limitation and explicitly research or trading divisions of the activities. applying coverage to Professionals who distributor. All such waivers will be The purpose of the proposed change receive the information in the context of approved by the Exchange if the is to eliminate the enumerated a brokerage relationship, while also distributor demonstrates through subscriber fees for technical and lowering the administrative burden on materials submitted with the administrative support activities, broker-dealers by eliminating any need application, and ongoing reporting, that thereby facilitating the accurate and to count Professional and Non- all of the criteria set forth in the rule are efficient distribution of Exchange Professional Subscribers separately. The met.37 Reporting for subscribers engaged information by lowering the cost of Exchange also proposes to effect a in technical and administrative support support services essential for such number of minor technical will be the same as required for fee- distribution, and to improve corrections.39 The revised language is as liable subscribers, and such usage transparency and consistency in the follows: reporting requirements will be set forth application of such waivers. The As an alternative to subsections (1) and (2) on NasdaqTrader.com. As required proposed change will not increase any above, a Distributor that is also a broker- under the current policy, the distributor fee or charge. dealer may pay a monthly fee of $500,000 to must be able to provide Nasdaq with provide Nasdaq Level 2 or Nasdaq TotalView 2. Broker-Dealer Enterprise License information about, or a demonstration for Display Usage by Professional or Non- of, how each technical and The Exchange currently offers an Professional Subscribers with whom the firm administrative support subscriber is enterprise license to enable broker- has a brokerage relationship. This Enterprise used, and must be prepared to identify dealers to distribute Nasdaq Level 2 or License shall not apply to relevant Level 1 or Depth Distributor fees. all technical and administrative Nasdaq TotalView service for Display entitlements during any onsite review. Usage to customers with whom the firm The purpose of the proposal is to The aforementioned subscribers must be has a brokerage relationship. Section increase the value of the enterprise located on the distributor’s premises, 123(c)(3) states as follows: license to distributors by expanding unless used for sales or marketing. No As an alternative to subsections (1) and (2) coverage to professionals who receive Exchange information obtained under above, a Distributor that is also a the information in the context of a such waiver may be distributed brokerdealer may pay a monthly fee of brokerage relationship, and to lower the externally or used in support of trading $500,000 to provide Nasdaq Level 2 or administrative burden on broker-dealers activities. Nasdaq TotalView for Display Usage by Non- by not requiring the broker-dealer to Professional Subscribers with whom the firm count the number of Professional Proposed Section 112(b)(4) reads as has a brokerage relationship. This Enterprise follows: License shall not apply to relevant Level 1 or Subscribers separately. The proposed Depth Distributor fees. change will not increase any fee or Technical and Administrative Support charge. Waivers. ‘‘Technical and Administrative The Exchange proposes to modify Support’’ is defined as the following Section 123(c)(3) to include Professional 2. Statutory Basis activities of the distributor: Advertising, Subscribers with whom the firm has a The Exchange believes that its account maintenance, authorizations and brokerage relationship within the scope entitlements, customer service, data control, proposal is consistent with Section 6(b) of the enterprise license. In 2010, when data quality, development, demonstration, of the Act,40 in general, and Section the Exchange first proposed that the distributor software sales, promotion, 6(b)(4) in particular, because it provides enterprise license be distributed to Non- technical operations, technical support and for the equitable allocation of reasonable Professional Subscribers with whom the testing. The Exchange shall waive any fee or dues, fees, and other charges among its charge for the Technical and Administrative firm has a brokerage relationship, the members, issuers and other persons Support of a distributor, provided that: Exchange explained that the enterprise using its facilities, and furthers the (A) The distributor provides Nasdaq with license covers not only non-professional objectives of Section 6(b)(5) of the Act,41 information about, or a demonstration of, customers, but also includes ‘‘an in particular, in that it fosters how each technical and administrative allowance to distribute data to external support subscriber is used, is able to identify cooperation and coordination with professional subscribers with which the all technical and administrative entitlements persons engaged in processing firm has a brokerage relationship,’’ and during an onsite review by Nasdaq information and facilitating transactions the Exchange would ‘‘permit[] representatives, and demonstrates to the in securities and does not unfairly distributors to designate an entire user discriminate between customers, 36 population as ‘non-professional’ Trade shows, which are listed separately under issuers, brokers or dealers. the current policy, continue to be covered under the provided that the number of waiver as a type of ‘‘promotion’’ activity. professional subscribers within that user 37 All distributors currently operating under an 39 The Exchange also proposes to add a hyphen population does not exceed ten percent to the word ‘‘broker-dealer’’ in Section 123(c)(3), internal usage waiver will be automatically 38 approved for the technical and administrative (10%) of the total population.’’ and to correct an internal reference in Section support waiver for the nine months following the 123(b)(1)(C) by replacing a reference to subsection date of effectiveness of this proposed change, 38 See Securities Exchange Act Release No. 63084 (4) with a reference to subsection (3). allowing the Exchange an opportunity to evaluate (October 13, 2010), 75 FR 64379 (October 19, 2010) 40 15 U.S.C. 78f(b). technical and administrative support usage. (SR–NASDAQ–2010–125). 41 15 U.S.C. 78f(b)(5).

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As described above, the Exchange lowering the cost of research and distributors have already had the benefit proposes to: (i) Codify fee waivers for teaching, and spreading financial of this long-standing policy. trial offers, pre-production systems literacy by facilitating financial These waivers do not unfairly development, academic use, and education for underserved populations, discriminate between customers, technical and administrative support promotes education in, and the issuers, brokers or dealers because services; and (ii) modify the $500,000 understanding of, financial markets; and reducing costs for new distributors enterprise license for the external (iv) lowering the cost of data encourages the entry of new distributors distribution of Depth-of-Book data to distribution by reducing the cost of and promotes the dissemination of allow distribution to all customers with technical and administrative support for Exchange information, and all new whom the distributor has a brokerage distributors facilitates the accurate and distributors will be able to benefit from relationship, including both efficient distribution of Exchange the policy. Professional and Non-Professional information by lowering the cost of Academic Waivers: Establishing a Subscribers. For the reasons set forth support services essential for such uniform policy for academic waivers for below, each provides for the equitable distribution. research or classroom-related activity is allocation of reasonable dues, fees, and Trial Offers: Establishing a uniform an equitable allocation of reasonable other charges among its members, standard for trial offers is an equitable dues, fees and other charges, and fosters issuers and other persons using its allocation of reasonable dues, fees and cooperation and coordination with facilities, fosters cooperation and other charges and fosters cooperation persons engaged in processing coordination with persons engaged in and coordination with persons engaged information and facilitating transactions processing information and facilitating in processing information and in securities, because lowering the cost transactions in securities, and does not facilitating transactions in securities by of research, teaching, and financial education will improve market unfairly discriminate between providing new, prospective or returning operations by encouraging the customers, issuers, brokers or dealers. customers an opportunity to test dissemination of financial information. Exchange data free of charge before Fee Waivers A fee waiver is, moreover, appropriate purchasing the service. This will The Exchange proposes to codify fee where the information obtained cannot encourage the entry of new distributors waivers for trial offers, pre-production be used to sell financial services or and thereby promote the dissemination systems development, academic use, engage in any other for-profit activity, of Exchange information. The proposed and technical and administrative but rather to encourage research, section will also establish a framework support. Each is an equitable allocation teaching and financial literacy. of reasonable dues, fees and other for the consistent administration of trial Academic waivers do not unfairly charges, and fosters cooperation and offers across products, thereby avoiding discriminate between customers, coordination with persons engaged in potential disputes related to issuers, brokers or dealers because processing information and facilitating administering trials for different lowering the cost of research, teaching transactions in securities. Codifying products that have slightly different and financial education promotes the these waivers will, among other things: terms. Publication of products and ability of the general investing public to (i) Allow new, prospective or returning services on NasdaqTrader.com will, effectively participate in financial customers an opportunity to test moreover, provide all current and markets. Academic institutions and Exchange data free of charge, thereby potential customers the latest financial literacy programs are, lowering the cost of distributing information identifying which products moreover, not profit-making entities and Exchange information; (ii) reduce the and services are eligible for trial offers. it is reasonable to waive fees for entities cost of systems development for new The proposed changes for trial offers do not engaged in for-profit activities. distributors, thereby lowering their not unfairly discriminate between Technical and Administrative barriers to entry; (iii) lower the cost of customers, issuers, brokers or dealers Support: Allowing distributors to use academic research, teaching, and because providing new, prospective or Exchange information for administrative financial literacy programs, thereby returning customers an opportunity to and technical support services is an promoting overall financial education; test Exchange data free of charge will equitable allocation of reasonable dues, (iv) and lower the cost of data encourage the entry of new distributors fees and other charges, and fosters distribution by lowering the cost of and promote the dissemination of cooperation and coordination with technical and administrative support for Exchange information. The Exchange persons engaged in processing distributors, thereby facilitating the will allow all eligible customers to take information and facilitating transactions accurate and efficient distribution of advantage of the same trial offers on the in securities, because the proposal will Exchange information by lowering the same terms. facilitate the accurate and efficient cost of support services essential for Systems Development: Establishing a distribution of Exchange information by such distribution. uniform waiver policy with regard to lowering the cost of support services The proposed fee waivers do not pre-production systems development is essential for such distribution. All unfairly discriminate between an equitable allocation of reasonable distributors will be eligible for the same customers, issuers, brokers or dealers dues, fees and other charges, and fosters waiver for the same administrative and because: (i) Providing new, prospective cooperation and coordination with support functions. or returning customers an opportunity persons engaged in processing Technical and administrative support to test Exchange data free of charge information and facilitating waivers do not unfairly discriminate encourages the entry of new distributors transactions, by reducing the cost of between customers, issuers, brokers or and promotes the dissemination of systems development for new dealers because the proposal will Exchange information; (ii) reducing the distributors, thereby lowering barriers to facilitate the accurate and efficient cost of systems development for new entry and encouraging broader distribution of Exchange information by distributors also encourages the entry of dissemination of information. All new lowering the cost of support services new distributors and promotes the distributors will have the opportunity to essential for such distribution. These dissemination of Exchange information; prepare their systems using the waivers also will be available to all (iii) encouraging academic research by proposed waiver, and current distributors on the same terms.

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Enterprise License Commission concluded that the choice executions, exchange data products Expanding the availability of the should be left to them. Accordingly, cannot exist. Moreover, data products enterprise license at Section 123(c)(3) to Regulation NMS removed unnecessary are valuable to many end users only Professional Subscribers with whom the regulatory restrictions on the ability of insofar as they provide information that firm has a brokerage relationship is an exchanges to sell their own data, end users expect will assist them or equitable allocation of reasonable dues, thereby advancing the goals of the Act their customers in making trading fees and other charges and fosters and the principles reflected in its decisions. cooperation and coordination with legislative history. If the free market The costs of producing market data persons engaged in processing should determine whether proprietary include not only the costs of the data information and facilitating transactions data is sold to broker-dealers at all, it distribution infrastructure, but also the in securities because the proposal will follows that the price at which such costs of designing, maintaining, and lower the administrative burden on data is sold should be set by the market operating the exchange’s transaction broker-dealers by not requiring the as well. execution platform, the cost of The market data products affected by broker-dealer to count the number of implementing cybersecurity to protect this proposal are all voluntary products Professional Subscribers separately. All the data from external threats and the for which market participants can broker-dealers purchasing the license cost of regulating the exchange to ensure readily find substitutes. Accordingly, its fair operation and maintain investor will be treated the same, without regard Nasdaq is constrained from pricing to whether the customer is Professional confidence. The total return that a these products in a manner that would trading platform earns reflects the or a Non-Professional. be inequitable or unfairly The proposal does not unfairly revenues it receives from both products discriminatory. Moreover, the fees for discriminate between customers, and the joint costs it incurs. these products, like all proprietary data issuers, brokers or dealers for the same fees, are constrained by the Exchange’s Moreover, the operation of the reasons. The proposal will lower the need to compete for order flow. Exchange is characterized by high fixed administrative burden on broker-dealers costs and low marginal costs. This cost by not requiring the broker-dealer to B. Self-Regulatory Organization’s structure is common in content and count the number of Professional Statement on Burden on Competition content distribution industries such as Subscribers separately. Removing the The Exchange does not believe that software, where developing new distinction between Professional and the proposals will impose any burden software typically requires a large initial Non-Professional customers in a on competition not necessary or investment (and continuing large brokerage relationship lessens current appropriate in furtherance of the investments to upgrade the software), distinctions among broker-dealers. purposes of the Act. All of the proposed but once the software is developed, the In adopting Regulation NMS, the changes—to codify fee waivers and incremental cost of providing that Commission granted self-regulatory expand the application of an enterprise software to an additional user is organizations (‘‘SROs’’) and broker- license—do not impose a burden on typically small, or even zero (e.g., if the dealers increased authority and competition not necessary or software can be downloaded over the flexibility to offer new and unique appropriate in furtherance of the internet after being purchased).43 market data to the public. It was purposes of the Act, but rather enhance In Nasdaq’s case, it is costly to build believed that this authority would competition by providing both current and maintain a trading platform, but the expand the amount of data available to and potential customers better, more incremental cost of trading each consumers, and also spur innovation precise information in making additional share on an existing platform, and competition for the provision of purchasing decisions. or distributing an additional instance of market data. The Commission The market for data products is data, is very low. Market information concluded that Regulation NMS—by extremely competitive and firms may and executions are each produced deregulating the market in proprietary freely choose alternative venues and jointly (in the sense that the activities of data—would itself further the Act’s data vendors based on the aggregate fees trading and placing orders are the goals of facilitating efficiency and assessed, the data offered, and the value source of the information that is competition: provided. Numerous exchanges compete distributed) and each are subject to [E]fficiency is promoted when broker- with each other for listings, trades, and significant scale economies. In such dealers who do not need the data beyond the market data itself, providing virtually cases, marginal cost pricing is not prices, sizes, market center identifications of limitless opportunities for entrepreneurs feasible because if all sales were priced the NBBO and consolidated last sale who wish to produce and distribute at the margin, Nasdaq would be unable information are not required to receive (and their own market data. This proprietary to defray its platform costs of providing pay for) such data. The Commission also data is produced by each individual believes that efficiency is promoted when the joint products. Similarly, data broker-dealers may choose to receive (and exchange, as well as other entities, in a products cannot make use of TRF trade pay for) additional market data based on their vigorously competitive market. reports without the raw material of the own internal analysis of the need for such Transaction execution and proprietary trade reports themselves, and therefore data.42 data products are complementary in that necessitate the costs of operating, market data is both an input and a 44 The Commission was speaking to the regulating, and maintaining a trade byproduct of the execution service. In question of whether broker-dealers reporting system, costs that must be fact, market data and trade execution are should be subject to a regulatory covered through the fees charged for use a paradigmatic example of joint requirement to purchase data, such as products with joint costs. The decision 43 depth-of-book data, that is in excess of See William J. Baumol and Daniel G. Swanson, whether and on which platform to post the data provided through the ‘‘The New Economy and Ubiquitous Competitive an order will depend on the attributes Price Discrimination: Identifying Defensible Criteria consolidated tape feeds, and the of the platform where the order can be of Market Power,’’ Antitrust Law Journal, Vol. 70, No. 3 (2003). 42 See Securities Exchange Act Release No. 51808 posted, including the execution fees, 44 It should be noted that the costs of operating (June 9, 2005), 70 FR 37496 (June 29, 2005) data quality and price, and distribution the FINRA/Nasdaq TRF borne by Nasdaq include (‘‘Regulation NMS Adopting Release’’). of its data products. Without trade regulatory charges paid by Nasdaq to FINRA.

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of the facility and sales of associated encouraging wider participation in the sending their order flow and transaction data. market by investors with access to the reports to multiple markets, rather than An exchange’s broker-dealer internet or television. Conversely, the providing them all to a single market. customers view the costs of transaction value of such products to distributors Competitive markets for order flow, executions and of data as a unified cost and investors decreases if order flow executions, and transaction reports of doing business with the exchange. A falls, because the products contain less provide pricing discipline for the inputs broker-dealer will disfavor a particular content. of proprietary data products. The large exchange if the expected revenues from Competition among trading platforms number of SROs, TRFs, broker-dealers, executing trades on the exchange do not can be expected to constrain the and ATSs that currently produce exceed net transaction execution costs aggregate return each platform earns proprietary data or are currently capable and the cost of data that the broker- from the sale of its joint products, but of producing it provides further pricing dealer chooses to buy to support its different platforms may choose from a discipline for proprietary data products. trading decisions (or those of its range of possible, and equally Each SRO, TRF, ATS, and broker-dealer customers). The choice of data products reasonable, pricing strategies as the is currently permitted to produce is, in turn, a product of the value of the means of recovering total costs. Nasdaq proprietary data products, and many products in making profitable trading pays rebates to attract orders, charges currently do or have announced plans to decisions. If the cost of the product relatively low prices for market do so, including Nasdaq, NYSE, NYSE exceeds its expected value, the broker- information and charges relatively high American, NYSE Arca, IEX, and CBOE. dealer will choose not to buy it. prices for accessing posted liquidity. Moreover, as a broker-dealer chooses to C. Self-Regulatory Organization’s Other platforms may choose a strategy Statement on Comments on the direct fewer orders to a particular of paying lower liquidity rebates to exchange, the value of the product to Proposed Rule Change Received From attract orders, setting relatively low Members, Participants, or Others that broker-dealer decreases, for two prices for accessing posted liquidity, reasons. First, the product will contain and setting relatively high prices for No written comments were either less information, because executions of market information. Still others may solicited or received. the broker-dealer’s trading activity will provide most data free of charge and III. Date of Effectiveness of the not be reflected in it. Second, and rely exclusively on transaction fees to Proposed Rule Change and Timing for perhaps more important, the product recover their costs. Finally, some Commission Action will be less valuable to that broker- platforms may incentivize use by The foregoing rule change has become dealer because it does not provide providing opportunities for equity information about the venue to which it effective pursuant to Section ownership, which may allow them to 19(b)(3)(A)(ii) of the Act.46 is directing its orders. Data from the charge lower direct fees for executions competing venue to which the broker- At any time within 60 days of the and data. filing of the proposed rule change, the dealer is directing more orders will In this environment, there is no become correspondingly more valuable. Commission summarily may economic basis for regulating maximum temporarily suspend such rule change if Similarly, vendors provide price prices for one of the joint products in an discipline for proprietary data products it appears to the Commission that such industry in which suppliers face action is: (i) Necessary or appropriate in because they control the primary means competitive constraints with regard to of access to end users. Vendors impose the public interest; (ii) for the protection the joint offering. Such regulation is of investors; or (iii) otherwise in price restraints based upon their unnecessary because an ‘‘excessive’’ business models. For example, vendors furtherance of the purposes of the Act. price for one of the joint products will If the Commission takes such action, the that assess a surcharge on data they sell ultimately have to be reflected in lower may refuse to offer proprietary products Commission shall institute proceedings prices for other products sold by the that end users will not purchase in to determine whether the proposed rule firm, or otherwise the firm will sufficient numbers. Internet portals should be approved or disapproved. experience a loss in the volume of its impose a discipline by providing only sales that will be adverse to its overall IV. Solicitation of Comments data that will enable them to attract profitability. In other words, an increase ‘‘eyeballs’’ that contribute to their Interested persons are invited to in the price of data will ultimately have advertising revenue. Retail broker- submit written data, views, and to be accompanied by a decrease in the dealers offer their retail customers arguments concerning the foregoing, cost of executions, or the volume of both proprietary data only if it promotes including whether the proposed rule data and executions will fall.45 trading and generates sufficient change is consistent with the Act. Moreover, the level of competition commission revenue. Although the Comments may be submitted by any of and contestability in the market is business models may differ, these the following methods: evident in the numerous alternative vendors’ pricing discipline is the same: Electronic Comments venues that compete for order flow, They can simply refuse to purchase any including SRO markets, internalizing • Use the Commission’s internet proprietary data product that fails to comment form (http://www.sec.gov/ provide sufficient value. Exchanges, broker-dealers and various forms of ATSs, including dark pools and ECNs. rules/sro.shtml); or TRFs, and other producers of • Send an email to rule-comments@ proprietary data products must Each SRO market competes to produce transaction reports via trade executions, sec.gov. Please include File Number SR– understand and respond to these NASDAQ–2019–033 on the subject line. varying business models and pricing and the FINRA-regulated TRFs compete disciplines in order to market to attract internalized transaction Paper Comments reports. It is common for broker-dealers proprietary data products successfully. • Send paper comments in triplicate to further exploit this competition by Moreover, Nasdaq believes that market to Secretary, Securities and Exchange data products can enhance order flow to Commission, 100 F Street NE, 45 Cf. Ohio v. American Express, 138 S. Ct. 2274 Nasdaq by providing more widespread (2018) (recognizing the need to analyze both sides Washington, DC 20549–1090. distribution of information about of a two sided platform market in order to transactions in real time, thereby determine its competitiveness). 46 15 U.S.C. 78s(b)(3)(A)(ii).

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All submissions should refer to File SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Number SR–NASDAQ–2019–033. This COMMISSION Statement of the Purpose of, and file number should be included on the Statutory Basis for, the Proposed Rule subject line if email is used. To help the [Release No. 34–85812; File No. SR–NYSE– Change Commission process and review your 2019–14] 1. Purpose comments more efficiently, please use only one method. The Commission will Self-Regulatory Organizations; New Contingent Value Rights (‘‘CVRs’’) are post all comments on the Commission’s York Stock Exchange LLC; Notice of unsecured obligations of the issuer providing for a possible cash payment internet website (http://www.sec.gov/ Filing of Proposed Rule Change To either (i) at maturity based upon the rules/sro.shtml). Copies of the Amend Section 703.18 of the Listed Company Manual To Permit the Listing price performance of an affiliate’s equity submission, all subsequent security (a ‘‘Price-Based CVR’’) or (ii) amendments, all written statements of Event-Based Contingent Value Rights and Make Other Changes to the within a specified time period, upon the with respect to the proposed rule occurrence of a specified event relating change that are filed with the Listing Standards for Contingent Value Rights to the business of the issuer of the CVR Commission, and all written or an affiliate of such issuer (an ‘‘Event- communications relating to the May 9, 2019. Based CVR’’). Section 703.18 of the proposed rule change between the Manual currently provides only for the Pursuant to Section 19(b)(1) 1 of the Commission and any person, other than listing of Price-Based CVRs. The those that may be withheld from the Securities Exchange Act of 1934 (the 2 3 Exchange proposes the following public in accordance with the ‘‘Act’’) and Rule 19b–4 thereunder, changes to its listing rules for CVRs: provisions of 5 U.S.C. 552, will be notice is hereby given that on April 25, • To permit the listing of Event-Based available for website viewing and 2019, New York Stock Exchange LLC CVRs; printing in the Commission’s Public (‘‘NYSE’’ or the ‘‘Exchange’’) filed with • To update the issuer listing the Securities and Exchange Reference Room, 100 F Street NE, standards in Section 703.18 to reflect Commission (‘‘Commission’’) the Washington, DC 20549, on official changes to the initial listing proposed rule change as described in business days between the hours of requirements for operating companies Items I, II, and III below, which Items 10:00 a.m. and 3:00 p.m. Copies of the referenced in that rule; and have been prepared by the self- • filing also will be available for To modify the delisting provisions regulatory organization. The to reflect that a CVR will be delisted if inspection and copying at the principal Commission is publishing this notice to office of the Exchange. All comments its issuer’s common stock ceases to be solicit comments on the proposed rule listed on a national securities exchange. received will be posted without change. change from interested persons. The Exchange proposes to amend Persons submitting comments are I. Self-Regulatory Organization’s Section 703.18 to also provide for the cautioned that we do not redact or edit listing of Event-Based CVRs. With the personal identifying information from Statement of the Terms of Substance of the Proposed Rule Change exception of the payment triggering comment submissions. You should event, Event-Based CVRs are identical submit only information that you wish The Exchange proposes to amend in structure to Price-Based CVRs, the to make available publicly. All Section 703.18 of the Listed Company listing of which has been permitted submissions should refer to File Manual (the ‘‘Manual’’) to expand the under Section 703.18 for many years. Number SR–NASDAQ–2019–033 and circumstances under which a Event-Based CVRs would qualify for should be submitted on or before June Contingent Value Right may be listed on listing under the Exchange’s current 5, 2019. the Exchange. The proposed rule change listing standards for ‘‘Other Securities.’’ For the Commission, by the Division of is available on the Exchange’s website at However, the Exchange is filing this Trading and Markets, pursuant to delegated www.nyse.com, at the principal office of proposed rule change because in the authority.47 the Exchange, and at the Commission’s 1998 release adopting amendments to Exchange Act Rule 19b–4, which among Eduardo A. Aleman, Public Reference Room. other things added a definition of ‘‘new Deputy Secretary. II. Self-Regulatory Organization’s derivative securities product,’’ the [FR Doc. 2019–09964 Filed 5–14–19; 8:45 am] Statement of the Purpose of, and Commission stated that ‘‘[u]nder the BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule amendment, if an SRO does not have Change listing standards, trading rules and procedures for CVRs approved by the In its filing with the Commission, the Commission, such SRO must submit a self-regulatory organization included proposed rule change for Commission statements concerning the purpose of, approval, under Section 19(b), to and basis for, the proposed rule change establish listing standards, trading rules and discussed any comments it received and procedures for the CVR product on the proposed rule change. The text class, prior to listing CVRs.’’ 4 of those statements may be examined at Price-Based CVRs are generally the places specified in Item IV below. distributed to shareholders of an The Exchange has prepared summaries, acquired company who are receiving set forth in sections A, B, and C below, shares of the acquirer as acquisition of the most significant parts of such consideration. The Price-Based CVRs statements. provide the acquiree’s shareholders

1 15 U.S.C. 78s(b)(1). 4 Exchange Act Release No. 40761 (December 8, 2 15 U.S.C. 78a. 1998), 63 FR 70952, at 70956–57 (December 22, 47 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. 1998).

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with some medium term protection $200 million in global market Exchange rules and applicable federal against poor stock price performance of capitalization at the time of listing, but securities laws. the shares of the acquirer by includes no earnings criteria. Because 2. Statutory Basis guaranteeing them a specified cash most issuers qualify for listing pursuant payment if the acquirer’s average stock to the Global Market Capitalization Test, The Exchange believes that the price is below a specified level at the and such test has no earnings criteria, proposed rule change is consistent with time of maturity of the Price-Based CVR. the Exchange believes it is appropriate Section 6(b) of the Exchange Act,5 in Event-Based CVRs are also typically to remove the reference to ‘‘size and general, and furthers the objectives of issued to the shareholders of an earning requirements’’ in the current Section 6(b)(5) of the Exchange Act,6 in acquired entity as consideration in an Section 703.18 and replace that particular in that it is designed to acquisition transaction. Event-Based language with a reference to Sections promote just and equitable principles of CVRs entitle their holders to receive a 102.01B and 102.01C instead. The trade, to foster cooperation and specified cash payment upon the Exchange believes that an issuer that coordination with persons engaged in occurrence of a specified event prior to meets the requirements of the Global regulating, clearing, settling, processing the maturity date of the Event-Based Market Capitalization Test is likely to be information with respect to, and CVR. The Event-Based CVR provides the a substantial company capable of facilitating transactions in securities, to shareholders of the acquiree an meeting its financial obligations under remove impediments to and perfect the additional interest in the medium-term the terms of a listed CVR. mechanism of a free and open market performance of the merged entity. A Currently, Section 703.18 provides and a national market system, and, in common example of an Event-Based that a CVR may be delisted when the general, to protect investors and the CVR occurs in mergers of life sciences related equity security to which the cash public interest and is not designed to companies, when the CVR payment is payment at maturity is tied is delisted. permit unfair discrimination between customers, issuers, brokers, or dealers. triggered by the receipt of FDA approval To reflect the fact that the delisting The proposal to permit the listing of of a new drug application. Another provision will now relate to both Cash- Event-Based CVRs under Section 703.18 example of an Event-Based CVR is a Based CVRs and Event-Based CVRs and is designed to protect investors and the CVR whose payment triggering event is to reflect the fact that Event-Based CVRs public interest. Listed companies have the achievement of a specified level of are not tied to the performance of a been issuing transferable Event-Based financial performance by the combined specific security, the Exchange proposes CVRs as acquisition consideration for a entity or by a division of the combined to modify this provision to provide that number of years.7 The purpose of the entity representing the assets from the a CVR will be delisted when the issuer’s proposed amendment is to provide a acquired company. Event-Based CVRs, common stock ceases to be listed on a transparent regulated market for the which are transferrable, have become national securities exchange. Under the increasingly common in recent years, trading of those securities. The Exchange’s proposed amendment, if the especially in connection with mergers of Exchange notes that, with the exception common stock of a CVR issuer ceases to life sciences companies, and the of the payment triggering event, Event- be listed on a national securities Exchange believes it is appropriate to Based CVRs are identical in structure to exchange, the CVR will be automatically amend Section 703.18 to permit their Price-Based CVRs. The listing of Price- delisted and the Exchange will not have listing on the NYSE. Based CVRs has been permitted under discretion to continue listing the CVR. Section 703.18 currently provides that Section 703.18 for many years. the issuer of a listed CVR must be an Finally, the Exchange proposes to The Exchange will distribute an entity that has assets in excess of $100 update a reference in Section 703.18 to information circular as described in million and meets the ‘‘size and New York Stock Exchange, Inc., by Section 703.18 prior to the earnings’’ requirements of Section 102 replacing it with a reference to New commencement of trading of any CVR of the Manual. The Exchange intends to York Stock Exchange LLC, which is the apprising member firms of the special retain the $100 million assets correct current legal entity name for the characteristics and risks of the CVR, as requirement, but it proposes to amend Exchange. In addition, the Exchange well as the Exchange’s know-your- the reference to the ‘‘size and earnings proposes to add an introductory customer, suitability, and other rules requirements’’ of Section 102 by sentence prior to the form of applicable thereto. The distribution of specifying instead that the issuer must information circular contained in this information circular will help meet the requirements of Sections Section 703.18. The Exchange intends to address concerns, among others, that the 102.01B and 102.01C. The requirements issue an information circular as complexity of a CVR could lead to of Section 102.01B include the size described in Section 703.18 investor confusion and create certain requirements applicable to all newly- immediately prior to the listing of any risks. In addition, the Exchange will listed operating companies (the CVR, including any Event-Based CVR. monitor activity in CVRs, including applicable requirement would be the The Exchange will monitor activity in Event-Based CVRs, to identify and deter $100 million in market value of CVRs, including Event-Based CVRs, to any potential improper trading activity publicly-held shares requirement identify and deter any potential in such securities and will adopt applied to companies transferring from improper trading activity in such enhanced surveillance procedures to another national securities Exchange), securities and will adopt enhanced enable it to monitor CVRs together with as well as a $4.00 stock price surveillance procedures to enable it to the common equity securities of the requirement. Section 102.01C sets forth monitor CVRs alongside the common issuer or its affiliates, as applicable. The two financial standards, the Earnings equity securities of the issuer or its Test and the Global Market affiliates, as applicable. The Exchange 5 15 U.S.C. 78f(b). Capitalization Test, one of which must will rely on its existing trading 6 15 U.S.C. 78f(b)(5). be met by an issuer seeking to list on the surveillances, administered by the 7 See, for example, CVRs listed by Sanofi (cash Exchange. The Global Market Exchange, or the Financial Industry payment tied to achieving sales targets of certain drugs) and Wright Medical Group N.V. (cash Capitalization Test, which was adopted Regulatory Authority (‘‘FINRA’’) on payment tied to FDA approval of a certain drug and subsequent to the approval of Section behalf of the Exchange, which are achieving revenue milestones), both listed on the 703.18, requires that an issuer have designed to detect violations of Nasdaq Stock Market.

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Exchange believes these measures will CVRs and does not impose any burden those that may be withheld from the reduce the risks of manipulative or on competition. public in accordance with the other improper activity in connection provisions of 5 U.S.C. 552, will be C. Self-Regulatory Organization’s with CVRs. available for website viewing and Statement on Comments on the The proposed modification to the printing in the Commission’s Public Proposed Rule Change Received From issuer qualification requirements of Reference Room, 100 F Street NE, Members, Participants, or Others Section 703.18 is designed to protect Washington, DC 20549, on official investors and the public interest, as it No written comments were solicited business days between the hours of conforms those requirements to changes or received with respect to the proposed 10:00 a.m. and 3:00 p.m. Copies of the in the initial listing requirements for rule change. filing also will be available for common stocks of operating companies III. Date of Effectiveness of the inspection and copying at the principal pursuant to amendments to Section 102 Proposed Rule Change and Timing for office of the Exchange. All comments that have been implemented since the Commission Action received will be posted without change. adoption of Section 703.18. The issuer Persons submitting comments are Within 45 days of the date of requirements under Section 703.18 are cautioned that we do not redact or edit publication of this notice in the Federal those applied to the initial listing of personal identifying information from Register or up to 90 days (i) as the common stocks of operating companies comment submissions. You should Commission may designate if it finds and, as such, the Exchange believes that submit only information that you wish such longer period to be appropriate they are sufficiently rigorous to be used to make available publicly. All and publishes its reasons for so finding in connection with the listing of CVRs. submissions should refer to File The Exchange further believes that or (ii) as to which the self-regulatory Number SR–NYSE–2019–14, and issuers that meek [sic] the Exchange’s organization consents, the Commission should be submitted on or before June issuer qualification requirements are will: 5, 2019. likely to be substantial companies (A) by order approve or disapprove capable of meeting their financial the proposed rule change, or For the Commission, by the Division of obligations under the terms of a listed (B) institute proceedings to determine Trading and Markets, pursuant to delegated CVR. The Exchange also notes that it whether the proposed rule change authority.8 will continue to require issuers of listed should be disapproved. Eduardo A. Aleman, CVRs to have at least $100 million in IV. Solicitation of Comments Deputy Secretary. total assets at the time of original listing. [FR Doc. 2019–09961 Filed 5–14–19; 8:45 am] The proposal to amend the continued Interested persons are invited to listing requirements of Section 703.18 to submit written data, views, and BILLING CODE 8011–01–P provide that a listed CVR will be arguments concerning the foregoing, delisted if its issuer ceases to be listed including whether the proposed rule SECURITIES AND EXCHANGE on a national securities exchange is change is consistent with the Act. COMMISSION designed to protect investors and the Comments may be submitted by any of public interest, as it ensures that issuers the following methods: [Release No. 34–85817; File No. SR–CBOE– whose CVR s are listed on the Exchange Electronic Comments will meet the qualitative and 2019–026] • quantitative standards for listing on a Use the Commission’s internet national securities exchange on a comment form (http://www.sec.gov/ Self-Regulatory Organizations; Cboe continuous basis. rules/sro.shtml); or Exchange, Inc.; Notice of Filing and The updated reference to the • Send an email to rule-comments@ Immediate Effectiveness of a Proposed Exchange’s legal entity name and sec.gov. Please include File Number SR– Rule Change To Amend Its Fee additional introductory language are NYSE–2019–14 on the subject line. Schedule To Adopt Reduced Subscription Fees for Academics for simply factual corrections and have no Paper Comments substantive impact. the Sale of Historical Cboe Open-Close • Send paper comments in triplicate Volume Data B. Self-Regulatory Organization’s to Secretary, Securities and Exchange Statement on Burden on Competition Commission, 100 F Street NE, May 9, 2019. The Exchange does not believe that Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the the proposed rule change will impose All submissions should refer to File Securities Exchange Act of 1934 (the any burden on competition that is not Number SR–NYSE–2019–14. This file ‘‘Act’’),1 and Rule 19b–4 thereunder,2 necessary or appropriate in furtherance number should be included on the notice is hereby given that on April 25, of the purposes of the Act. The subject line if email is used. To help the 2019, Cboe Exchange, Inc. (the proposed amendment to Section 703.18 Commission process and review your ‘‘Exchange’’ or ‘‘Cboe Options’’) filed will increase competition by providing comments more efficiently, please use with the Securities and Exchange an additional listing venue for Event- only one method. The Commission will Commission (the ‘‘Commission’’) the Based CVRs. The amendment to the post all comments on the Commission’s proposed rule change as described in issuer qualification requirements in internet website (http://www.sec.gov/ Items I, II, and III below, which Items Section 703.18 simply conforms those rules/sro.shtml). Copies of the have been prepared by the Exchange. requirements to modifications to the submission, all subsequent The Commission is publishing this initial listing requirements for common amendments, all written statements notice to solicit comments on the stocks of operating companies and does with respect to the proposed rule proposed rule change from interested not impose any burden on competition. change that are filed with the persons. The amendment to the continued listing Commission, and all written requirements in 703.18 is being communications relating to the 8 17 CFR 200.30–3(a)(12). proposed to ensure the ongoing proposed rule change between the 1 15 U.S.C. 78s(b)(1). suitability for listing of the issuers of Commission and any person, other than 2 17 CFR 240.19b–4.

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I. Self-Regulatory Organization’s Close Data on a monthly subscription discounts for similar data feeds.4 The Statement of the Terms of Substance of basis or Historical Open-Close Data on Exchange recognizes the high value of the Proposed Rule Change an ad hoc request basis. The Exchange academic research and educational Cboe Exchange, Inc. (the ‘‘Exchange’’ seeks only to amend the price per year instruction and publications, and or ‘‘Cboe Options’’) proposes to amend for Historical Open-Close Data for believes that the proposed academic its fee schedule to adopt reduced academic purchasers. Currently, discount for Historical Open-Close Data subscription fees for academics for the Historical Open-Close Data is available will encourage the promotion academic sale of Historical Cboe Open-Close to all customers at the same price and research of the options industry, which volume data. The text of the proposed in the same manner. The current charge will serve to benefit all market rule change is provided in Exhibit 5. for Historical Open-Close Data covering participants while also opening up a The text of the proposed rule change all of the Exchange’s securities new potential user base among students. is also available on the Exchange’s ((Equities, Indexes & ETF’s) is $7,200 Finally, the Exchange notes that academic purchasers’ subscriptions to website (http://www.cboe.com/ per year for requests for one to four Historical Open-Close Data are AboutCBOE/CBOE years of data, and a 50% discount educational in use and purpose, and not LegalRegulatoryHome.aspx), at the beginning with the fifth year of data (i.e. Exchange’s Office of the Secretary, and vocational. Cboe LiveVol charges $7,200 for each of Lastly, the Exchange proposes to at the Commission’s Public Reference the first four years of data and $3,600 for Room. relocate the current Open-Close Data data the fifth year and on). pricing schedule available on DataShop, II. Self-Regulatory Organization’s The Exchange now proposes to charge along with the proposed academic Statement of the Purpose of, and qualifying academic purchasers $1,500 discount, to its Exchange Fees Schedule, Statutory Basis for, the Proposed Rule per year for Historical Open-Close Data under the LiveVol Fees Table. The Change covering all of the Exchange’s securities. Open-Close Data will continue to be In its filing with the Commission, the As proposed, the 50% discount made available on DataShop. The Exchange included statements beginning with the fifth year of data is Exchange proposes to change the format concerning the purpose of and basis for not applicable to academic pricing. The of the Open-Close Data of all Cboe the proposed rule change and discussed Exchange believes that academic securities received by a purchaser from any comments it received on the institutions provide a valuable service a DVD to a download, noting that file proposed rule change. The text of these for the Exchange in studying and sizes larger than 500GB will be shipped statements may be examined at the promoting the options market. Though to the purchaser on a hard drive. The places specified in Item IV below. The academic institutions and researchers Exchange notes that this is the current Exchange has prepared summaries, set have need for granular options data sets, process in which a purchaser receives forth in sections A, B, and C below, of they do not trade upon the data for Historical Open-Close Data via the the most significant aspects of such which they subscribe. The Exchange DataShop website. As such, the statements. believes the proposed reduced fees for proposed change does not substantively change the pricing schedule, but rather A. Self-Regulatory Organization’s qualifying academic purchasers of Historical Open-Close Data will reflects the format in which purchasers Statement of the Purpose of, and the are currently receiving Historical Open- encourage and promote academic Statutory Basis for, the Proposed Rule Close Data via the DataShop website. As studies of its market data by academic Change such, the Exchange notes no substantive institutions. In order to qualify for the changes are being made by relocating 1. Purpose academic pricing, an academic the pricing information, but rather purchasers must be (1) an accredited The Exchange proposes to amend its believes the Open-Close Data fees would Cboe LiveVol, LLC (‘‘Cboe LiveVol’’) academic institution, (2) that will use be better situated among the Exchange’s Price List to adopt reduced subscription the data in independent academic current LiveVol Fees Table in the fees for academics for the sale of research, academic journals and other Exchange’s Fees Schedule. historical Cboe Open-Close volume publications, teaching and classroom data. In 2015, former Cboe Holdings use, or for other bona fide educational 2. Statutory Basis (now Cboe Global Markets) acquired purposes (i.e. academic use). The Exchange believes the proposed LiveVol, Inc, a market data services and Furthermore, use of the data must be rule change is consistent with the trading analytics platform. In 2016, limited to faculty and students of the Securities Exchange Act of 1934 (the Cboe LiveVol launched its website, accredited academic institution, and ‘‘Act’’) and the rules and regulations Cboe LiveVol DataShop 3 (‘‘DataShop’’), any commercial or profit-seeking usage thereunder applicable to the Exchange which offers clients, both Trading is excluded. Academic pricing will not and, in particular, the requirements of Permit Holders (‘‘TPHs’’) and non-TPHs, be provided to any purchaser whose a range of market data sets, including research is funded by a securities 4 See Securities Exchange Act Release No. 67955 historical data, and subscription industry participant. Cboe LiveVol (October 1, 2012) 77 FR 61037 (October 5, 2012) options. Specifically, Open-Close Data (Notice of Filing and Immediate Effectiveness of subscriber policies will be updated to Proposed Rule Change To Adopt Reduced Fees for is a Cboe proprietary data set offered on reflect the academic discount program, Historical ISE Open/Close Trade Profile Intraday DataShop that consists of the volume and academic institutions interested in Market Data Offering) (SR–ISE–2012–76); Securities summary (i.e. contracts traded) for each qualifying will be required to submit a and Exchange Act Release 34–60654 (September 11, Exchange-listed option. Open-Close 2009) 74 FR 47848 (September 17, 2009) (Notice of brief application. Cboe LiveVol Business Filing of Proposed Rule Change Relating to Data summarizes Cboe Options volume Development will have the discretion to Historical ISE Open/Close Trade Profile Fees) (SR– by origin (customer and firm orders review and approve such applications ISE–2009–64); Securities Exchange Act Release No. only), original order size and the 53770 (May 8, 2006) 71 FR 27762 (May 12, 2006) and request additional information (Notice of Filing of Proposed Rule Change and opening or closing position of the order. when it deems necessary. Customers may purchase Daily Open- Amendment No. 1 Thereto To Establish an Annual The Exchange notes that other Administrative Fee for Market Data Distributors That Are Recipients of Nasdaq Proprietary Data 3 Available at: https://datashop.cboe.com/. exchanges currently offer academic Products) (SR–NASD–2006–030).

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Section 6(b) of the Act.5 Specifically, Cboe website 8 reduces confusion for III. Date of Effectiveness of the the Exchange believes the proposed rule investors and allows for easier access to Proposed Rule Change and Timing for change is consistent with the Section such pricing for all market participants. Commission Action 6 6(b)(5) requirements that the rules of Furthermore, the Exchange believes the The foregoing rule change has become an exchange be designed to prevent proposed change from a purchaser’s effective pursuant to Section 19(b)(3)(A) fraudulent and manipulative acts and receipt of a DVD to a download of of the Act 9 and paragraph (f) of Rule practices, to promote just and equitable Historical Open-Close Data is reasonable 19b–4 10 thereunder. At any time within principles of trade, to foster cooperation and equitable because it reflects the 60 days of the filing of the proposed rule and coordination with persons engaged format in which purchasers are already change, the Commission summarily may in regulating, clearing, settling, receiving such data via the DataShop temporarily suspend such rule change if processing information with respect to, website. As a result, this change will it appears to the Commission that such and facilitating transactions in action is necessary or appropriate in the securities, to remove impediments to reduce confusion for all investors once the Open-Close pricing information is public interest, for the protection of and perfect the mechanism of a free and investors, or otherwise in furtherance of open market and a national market adopted under the Exchange’s Fee Schedule. the purposes of the Act. If the system, and, in general, to protect Commission takes such action, the investors and the public interest. B. Self-Regulatory Organization’s Commission will institute proceedings Additionally, the Exchange believes the Statement on Burden on Competition to determine whether the proposed rule proposed rule change is consistent with change should be approved or 7 the Section 6(b)(5) requirement that The Exchange does not believe that disapproved. the rules of an exchange not be designed the proposed rule change will impose to permit unfair discrimination between any burden on competition that is not IV. Solicitation of Comments customers, issuers, brokers, or dealers. necessary or appropriate in furtherance Interested persons are invited to In particular, the Exchange believes of the purposes of the Act. The submit written data, views, and that the discount for qualifying Exchange does not believe that the arguments concerning the foregoing, academic purchasers of the annual proposed rule change will impose any including whether the proposed rule subscription to Historical Open-Close burden on intramarket competition that change is consistent with the Act. Data is reasonable because academic is not necessary or appropriate in Comments may be submitted by any of institutions are not able to monetize the following methods: access to the data as they do not trade furtherance of the purposes of the Act on the data set. The Exchange believes because the proposed rule change will Electronic Comments the proposed discount will allow for apply to all qualifying academic • Use the Commission’s internet more academic institutions to purchase purchasers uniformly. While the comment form (http://www.sec.gov/ Historical Open-Close Data, and, as a proposed fee reduction applies only to rules/sro.shtml); or result, promote research and studies of qualifying academic purchasers, • Send an email to rule-comments@ the options industry to the benefit of all academic institutions’ research and sec.gov. Please include File Number SR– market participants. The Exchange publications as a result of access to CBOE–2019–026 on the subject line. believes that the proposed discount is historical market data benefits all Paper Comments equitable and not unfairly market participants. The Exchange also • discriminatory because it will apply does not believe that the proposed rule Send paper comments in triplicate equally to all academic institutions that change will impose any burden on to Secretary, Securities and Exchange submit an application and meet the intermarket competition that is not Commission, 100 F Street NE, Washington, DC 20549–1090. accredited academic institution and necessary or appropriate in furtherance academic use criteria. As stated above, of the purposes of the Act as other All submissions should refer to File qualified academic users will subscribe options exchanges currently offer Number SR–CBOE–2019–026. This file number should be included on the to the data set for educational use and similar historical data to academic purposes and are not permitted to use subject line if email is used. To help the institutions at a discounted price. the data for commercial or monetizing Commission process and review your Offering a discount for qualifying purposes, nor can qualify if they are comments more efficiently, please use funded by an industry participant. As a academic institutions that purchase the only one method. The Commission will result, the Exchange believes the Exchange’s Historical Open-Close Data post all comments on the Commission’s proposed discount is equitable and not may make that data more attractive to internet website (http://www.sec.gov/ unfairly discriminatory because it such academic institutions and further rules/sro.shtml). Copies of the maintains equal treatment for all increase competition with exchanges submission, all subsequent industry participants or other that offer similar historical data amendments, all written statements subscribers that use the data for products. with respect to the proposed rule change that are filed with the vocational, commercial or other for- C. Self-Regulatory Organization’s profit purposes. Additionally, the Commission, and all written Statement on Comments on the Exchange believes its proposal to adopt communications relating to the Proposed Rule Change Received From the pricing schedule for Open-Close proposed rule change between the Members, Participants, or Others Data under its Fees Schedule is Commission and any person, other than reasonable and equitable because The Exchange neither solicited nor those that may be withheld from the maintaining the pricing information for received comments on the proposed public in accordance with the Cboe proprietary data in a fee schedule rule change. provisions of 5 U.S.C. 552, will be in a centralized location on the main available for website viewing and printing in the Commission’s Public 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). 8 Available at: http://www.cboe.com/trading- 9 15 U.S.C. 78s(b)(3)(A). 7 Id. resources/fee-schedules. 10 17 CFR 240.19b–4(f).

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Reference Room, 100 F Street NE, the Exchange, and at the Commission’s Penny Credit Tiers, with increasing Washington, DC 20549, on official Public Reference Room. minimum volume thresholds (as well as business days between the hours of increasing credits) associated with each II. Self-Regulatory Organization’s 10:00 a.m. and 3:00 p.m. Copies of the tier: The Select Tier, the Super Tier and Statement of the Purpose of, and filing also will be available for the Super Tier II. Statutory Basis for, the Proposed Rule inspection and copying at the principal Change The Exchange proposes to add a new office of the Exchange. All comments (third) alternative qualification volume received will be posted without change. In its filing with the Commission, the threshold for Super Tier II, but will not Persons submitting comments are self-regulatory organization included modify the $0.42 per contract credit cautioned that we do not redact or edit statements concerning the purpose of, associated with this Tier.5 Specifically, personal identifying information from and basis for, the proposed rule change the proposed alternative method of and discussed any comments it received comment submissions. You should qualifying would require a Market on the proposed rule change. The text submit only information that you wish Maker to achieve at least 0.10% of Total of those statements may be examined at to make available publicly. All Customer Average Daily Volume the places specified in Item IV below. submissions should refer to File (‘‘TCADV’’) from Market Maker posted The Exchange has prepared summaries, Number SR–CBOE–2019–026 and interest in all issues, plus at least 0.42% set forth in sections A, B, and C below, should be submitted on or before June of executed Average Daily Volume of the most significant parts of such 5, 2019. (‘‘ADV’’) of Retail Orders of U.S. Equity statements. For the Commission, by the Division of Market Share Posted and Executed on Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s NYSE Arca Equity Market.6 This authority.11 Statement of the Purpose of, and the proposed change seeks to incent Market Eduardo A. Aleman, Statutory Basis for, the Proposed Rule Makers to achieve this Tier by Deputy Secretary. Change increasing trading on the equities [FR Doc. 2019–09965 Filed 5–14–19; 8:45 am] 1. Purpose market (while making the Tier easier to BILLING CODE 8011–01–P achieve based on a lower minimum The purpose of this filing is to modify threshold for options trading activity). the Fee Schedule, effective May 1, 2019, The Exchange also currently offers a SECURITIES AND EXCHANGE to provide an additional method for special rate of $0.12 per contract Firm COMMISSION Market Makers to qualify for enhanced and Broker Dealer orders in manual posting credits in Penny Pilot issues and [Release No. 34–85820; File No. SR– executions of VXX that are not NYSEArca–2019–30] SPY. The filing will also eliminate a facilitating a Customer or Professional program that is no longer effective. Customer (the ‘‘Program’’). The The Exchange currently provides a Self-Regulatory Organizations; NYSE Exchange has decided to discontinue number of incentives for Market Makers Arca, Inc.; Notice of Filing and the Program as it did not attract and Lead Market Makers (collectively, Immediate Effectiveness of a Proposed additional participation or volume to ‘‘Market Makers’’) to achieve posting Rule Change To Modify the NYSE Arca the Exchange and therefore proposes to credits that are higher than the base Options Fee Schedule delete all references to the Program and posting credit of $0.28 per contract in the associated rate. The proposed May 9, 2019. Penny Pilot issues and SPY.4 Among change would add clarity, transparency Pursuant to Section 19(b)(1) 1 of the these incentives are enhanced posted and internal consistency to the program. Securities Exchange Act of 1934 liquidity credits based on achieving (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 certain percentages of NYSE Arca 2. Statutory Basis notice is hereby given that, on April 30, Equity daily activity, also known as The Exchange believes that the 2019, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘cross-asset pricing.’’ Similarly, because proposed rule change is consistent with ‘‘Exchange’’) filed with the Securities the Exchange allows Market Makers to Section 6(b) of the Act, in general, and and Exchange Commission aggregate their volume executed on furthers the objectives of Sections (‘‘Commission’’) the proposed rule NYSE Arca with Affiliated or Appointed 6(b)(4) and (5) of the Act, in particular, change as described in Items I and II Order Flow Providers (‘‘OFPs’’), Market because it provides for the equitable below, which Items have been prepared Makers may encourage an increased allocation of reasonable dues, fees, and by the self-regulatory organization. The level of activity from these participants other charges among its members, Commission is publishing this notice to to qualify for various incentives. As a issuers and other persons using its solicit comments on the proposed rule result, the Exchange becomes a more facilities and does not unfairly change from interested persons. attractive venue for Customer (and Professional Customer) orders offering I. Self-Regulatory Organization’s 5 enhanced rebates. Pursuant to the The Exchange is not modifying the existing Statement of the Terms of Substance of (two) alternative bases for a Market Maker to the Proposed Rule Change Market Maker Penny Pilot and SPY achieve Super Tier II, which require (1) a Market Posting Credit Tiers (the ‘‘Penny Credit Maker to execute at least 0.20% of TCADV from The Exchange proposes to modify the Tiers’’), Market Maker orders and quotes Market Maker posted interest in all issues, plus ETP NYSE Arca Options Fee Schedule (‘‘Fee that post liquidity and are executed on Holder and Market Maker posted volume in Tape Schedule’’). The Exchange proposes to B Securities (‘‘Tape B Adding ADV’’) that is equal the Exchange earn a base credit of $0.28 to at least 1.50% of US Tape B consolidated average implement the fee change effective May per contract, and may be eligible for daily volume (‘‘CADV’’) for the billing month 1, 2019. The proposed rule change is increased credits based on the executed on NYSE Arca Equity Market; or (2) at available on the Exchange’s website at participant’s activity. Currently, in least 1.60% of TCADV from Market Maker interest www.nyse.com, at the principal office of in all issues, with at least 0.90% of TCADV from addition to the base, there are three Market Maker posted interest in all issues. 6 For purposes of calculating the executed ADV of 11 17 CFR 200.30–3(a)(12). 4 The base credit is available for executions of Retail Orders of U.S. Equity Market Share on the 1 15 U.S.C. 78s(b)(1). Market Maker posted interest in Penny Pilot Issues NYSE Arca Equity Market, a Retail Order must 2 15 U.S.C. 78a. and SPY and has no minimum volume threshold qualify for the Retail Order Tier set forth in the 3 17 CFR 240.19b–4. requirement. NYSE Arca Equities Fee Schedule.

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discriminate between customers, Finally, the proposal to eliminate the C. Self-Regulatory Organization’s issuers, brokers or dealers. Program is reasonable and equitable, Statement on Comments on the The Exchange believes that the and not unfairly discriminatory because Proposed Rule Change Received From proposed modification to Super Tier II the Exchange has decided to Members, Participants, or Others is reasonable, equitable, and not discontinue the Program, which is based No written comments were solicited unfairly discriminatory because offering on business conducted on the Exchange or received with respect to the proposed a third alternative qualification basis in a particular symbol, and therefore rule change. should encourage more participants to would impact all similarly-situated qualify for the various Tiers, market participants equally. The III. Date of Effectiveness of the particularly those like Super Tier II that Exchange proposes to delete all Proposed Rule Change and Timing for Commission Action have a cross-asset pricing component. references to the Program and the The proposed modification to Super associated rate, which would add clarity The foregoing rule change is effective Tier II, which would be available to all and transparency to the Fee Schedule upon filing pursuant to Section similarly-situated market participants making it easier to navigate to the 19(b)(3)(A) 7 of the Act and on an equal and non-discriminatory benefit of the investing public. subparagraph (f)(2) of Rule 19b–4 8 basis, should incent Market Makers to thereunder, because it establishes a due, increase trading on the equities market, B. Self-Regulatory Organization’s fee, or other charge imposed by the while making it easier to meet the Statement on Burden on Competition Exchange. requisite volume threshold in options At any time within 60 days of the trading for this Tier. The Exchange In accordance with Section 6(b)(8) of filing of such proposed rule change, the notes that Market Makers are still the Act, the Exchange does not believe Commission summarily may eligible to qualify for Super Tier II that the proposed rule change will temporarily suspend such rule change if under the existing alternatives (see impose any burden on competition that it appears to the Commission that such supra note 5) based on posted Market is not necessary or appropriate in action is necessary or appropriate in the Maker Electronic volume and overall furtherance of the purposes of the Act. public interest, for the protection of volume, or by executing Posted Interest Instead, the Exchange believes that the investors, or otherwise in furtherance of coupled with Tape B activity on the proposed changes would encourage the purposes of the Act. NYSE Arca Equity Market. By competition, including by attracting continuing to provide such alternative additional liquidity to the Exchange, IV. Solicitation of Comments methods to qualify for a Tier, and which would continue to make the Interested persons are invited to adding an additional method, the Exchange a more competitive venue for, submit written data, views, and Exchange believes the opportunities to among other things, order execution and arguments concerning the foregoing, qualify for credits is increased, which price discovery. The Exchange does not including whether the proposed rule benefits all participants through believe that the proposed changes change is consistent with the Act. increased Market Maker activity. would impair the ability of any market Comments may be submitted by any of Further, encouraging Market Maker participants or competing order the following methods: activity on the Exchange would also execution venues to maintain their Electronic Comments contribute to the Exchange’s depth of competitive standing in the financial book as well as to the top of book • markets. Further, the incentive would Use the Commission’s internet liquidity. comment form (http://www.sec.gov/ To the extent that Market Maker be available to all similarly-situated participants, and, as such, the proposed rules/sro.shtml); or activity that adds liquidity is increased • Send an email to rule-comments@ changes would not impose a disparate by the proposal, market participants sec.gov. Please include File Number SR– burden on competition either among or will increasingly compete for the NYSEArca–2019–30 on the subject line. opportunity to trade on the Exchange. between classes of market participants The resulting increased volume and and may, in fact, encourage Paper Comments liquidity would provide more trading competition. • Send paper comments in triplicate opportunities and tighter spreads to all The proposal to eliminate the Program to Secretary, Securities and Exchange market participants and thus would is reasonable and equitable, and not Commission, 100 F Street NE, promote just and equitable principles of unfairly discriminatory because the Washington, DC 20549–1090. trade, remove impediments to and Exchange has decided to discontinue All submissions should refer to File perfect the mechanism of a free and the Program, which is based on business Number SR–NYSEArca–2019–30. This open market and a national market conducted on the Exchange in a file number should be included on the system and, in general, to protect particular symbol, and therefore would subject line if email is used. To help the investors and the public interest. impact all similarly-situated market Commission process and review your The Exchange believes the proposed participants equally. comments more efficiently, please use modification is reasonable, equitable only one method. The Commission will and not unfairly discriminatory because The Exchange notes that it operates in post all comments on the Commission’s it would encourage participants to a highly competitive market in which internet website (http://www.sec.gov/ enhance their order flow to interact with market participants can readily favor rules/sro.shtml). Copies of the Market Maker orders and quotes, which competing venues. In such an submission, all subsequent potential increase in order flow would environment, the Exchange must amendments, all written statements benefit all market participants by continually review, and consider with respect to the proposed rule improving order execution and price adjusting, its fees and credits to remain change that are filed with the discovery, which, in turn, promotes just competitive with other exchanges. For Commission, and all written and equitable principles of trade and the reasons described above, the communications relating to the removes impediments to and perfects Exchange believes that the proposed the mechanism of a free and open rule change reflects this competitive 7 15 U.S.C. 78s(b)(3)(A). market and a national market system. environment. 8 17 CFR 240.19b–4(f)(2).

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proposed rule change between the I. Self-Regulatory Organization’s attract retail order flow to the Exchange, Commission and any person, other than Statement of the Terms of Substance of and allow such order flow to receive those that may be withheld from the the Proposed Rule Change potential price improvement. The public in accordance with the The Exchange proposes to make Program is currently limited to trades provisions of 5 U.S.C. 552, will be permanent the pilot program for the occurring at prices equal to or greater available for website viewing and Exchange’s Retail Price Improvement than $1.00 per share. Under the printing in the Commission’s Public (‘‘RPI’’) Program (the ‘‘Program’’ or ‘‘BX Program, a class of market participant Reference Room, 100 F Street NE, RPI Program’’), which is set to expire called a Retail Member Organization Washington, DC 20549 on official the earlier of approval of the filing to (‘‘RMO’’) is eligible to submit certain 5 business days between the hours of make this rule permanent or June 30, retail order flow (‘‘Retail Orders’’) to 10:00 a.m. and 3:00 p.m. Copies of the 2019. the Exchange. BX members filing also will be available for The text of the proposed rule change (‘‘Members’’) are permitted to provide inspection and copying at the principal is available on the Exchange’s website at potential price improvement for Retail office of the Exchange. All comments http://nasdaqbx.cchwallstreet.com/, at Orders in the form of non-displayed received will be posted without change. the principal office of the Exchange, and interest that is priced more aggressively Persons submitting comments are at the Commission’s Public Reference than the Protected National Best Bid or 6 cautioned that we do not redact or edit Room. Offer (‘‘Protected NBBO’’). personal identifying information from The Program was approved by the II. Self-Regulatory Organization’s Commission on a pilot basis running comment submissions. You should Statement of the Purpose of, and submit only information that you wish one-year from the date of Statutory Basis for, the Proposed Rule implementation.7 The Commission to make available publicly. All Change approved the Program on November 28, submissions should refer to File 2014.8 The Exchange implemented the Number SR–NYSEArca–2019–30 and In its filing with the Commission, the Program on December 1, 2014 and the should be submitted on or before June Exchange included statements pilot has since been extended for a one- 5, 2019. concerning the purpose of and basis for the proposed rule change and discussed year period twice, as well as for a six- For the Commission, by the Division of any comments it received on the month period twice, with it now Trading and Markets, pursuant to delegated proposed rule change. The text of these scheduled to expire the earlier of authority.9 statements may be examined at the approval of the filing to make this rule Eduardo A. Aleman, places specified in Item IV below. The permanent or June 30, 2019.9 Deputy Secretary. Exchange has prepared summaries, set Specifically, BX Rule 4780 will be amended to delete 4780(h) that says the [FR Doc. 2019–09967 Filed 5–14–19; 8:45 am] forth in sections A, B, and C below, of Program is a pilot and that it is BILLING CODE 8011–01–P the most significant aspects of such statements. scheduled to expire the earlier of

A. Self-Regulatory Organization’s 5 A ‘‘Retail Order’’ is defined in BX Rule SECURITIES AND EXCHANGE Statement of the Purpose of, and 4780(a)(2) by referencing BX Rule 4702, and BX COMMISSION Statutory Basis for, the Proposed Rule Rule 4702(b)(6) says it is an order type with a non- display order attribute submitted to the Exchange Change by an RMO. A Retail Order must be an agency [Release No. 34–85811; File No. SR–BX– 1. Purpose order, or riskless principal order that satisfies the 2019–011] criteria of FINRA Rule 5320.03. The Retail Order The Exchange proposes to make must reflect trading interest of a natural person with no change made to the terms of the underlying Self-Regulatory Organizations; Nasdaq permanent the Exchange’s pilot RPI order of the natural person with respect to price 3 BX, Inc.; Notice of Filing of Proposed Program, currently scheduled to expire (except in the case of a market order that is changed Rule Change To Make Permanent the the earlier of approval of the filing to to a marketable limit order) or side of market and Pilot Program for the Exchange’s make this rule permanent or June 30, that does not originate from a trading algorithm or Retail Price Improvement Program, 2019. any other computerized methodology. 6 The term Protected Quotation is defined in Which Is Set To Expire on June 30, Background Chapter XII, Sec. 1(19) and has the same meaning 2019 as is set forth in Regulation NMS Rule 600(b)(58). In November 2014, the Commission The Protected NBBO is the best-priced protected May 9, 2019. approved the RPI Program on a pilot bid and offer. Generally, the Protected NBBO and 4 the national best bid and offer (‘‘NBBO’’) will be the Pursuant to Section 19(b)(1) of the basis. The Program is designed to same. However, a market center is not required to Securities Exchange Act of 1934 route to the NBBO if that market center is subject 3 1 2 Securities Exchange Act Release No. 73702 to an exception under Regulation NMS Rule (‘‘Act’’), and Rule 19b–4 thereunder, (November 28, 2014), 79 FR 72049 (December 4, 611(b)(1) or if such NBBO is otherwise not available notice is hereby given that on April 26, 2014) (SR–BX–2014–048) (‘‘RPI Approval Order’’). for an automatic execution. In such case, the 2019 Nasdaq BX, Inc. (‘‘BX’’ or In addition to approving the RPI Program on a pilot Protected NBBO would be the best-priced protected ‘‘Exchange’’) filed with the Securities basis, the Commission granted the Exchange’s bid or offer to which a market center must route and Exchange Commission (‘‘SEC’’ or request for exemptive relief from Rule 612 of interest pursuant to Regulation NMS Rule 611. Regulation NMS, 17 CFR 242.612 (‘‘Sub-Penny 7 See RPI Approval Order, supra note 3 at 72053. ‘‘Commission’’) the proposed rule Rule’’), which among other things prohibits a 8 Id. at 72049. change as described in Items I, II, and national securities exchange from accepting or 9 See Securities Exchange Act Release No. 76490 III below, which Items have been ranking orders priced greater than $1.00 per share (November 20, 2015), 80 FR 74165 (November 27, prepared by the Exchange. The in an increment smaller than $0.01. See id. As part 2015) (SR–BX–2015–073); Securities Exchange Act of this filing, and pursuant to the Exchange’s Release No. 79446 (December 1, 2016), 81 FR 88290 Commission is publishing this notice to separate written request, the Exchange also requests (December 7, 2016) (SR–BX–2016–065); Securities solicit comments on the proposed rule that the exemptive relief from the Sub-Penny Rule Exchange Act Release No. 82192 (December 1, change from interested persons. be made permanent. See Letter from Jeffrey S. 2017), 82 FR 57809 (December 7, 2017) (SR–BX– Davis, Vice President and Deputy General Counsel, 2017–055); Securities Exchange Act Release No. Nasdaq BX, Inc. to Eduardo A. Aleman, Deputy 83539 (June 28, 2018), 83 FR 31203 (July 3, 2018) 9 17 CFR 200.30–3(a)(12). Secretary, Securities and Exchange Commission (SR–BX–2018–026); and Securities Exchange Act 1 15 U.S.C. 78s(b)(1). dated April 26, 2019. Release No. 84847 (Dec. 18, 2018), 83 FR 66326 2 17 CFR 240.19b–4. 4 See id. (Dec. 26, 2018) (SR–BX–2018–063).

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approval of the filing to make this rule The SEC approved the Program pilot, participants, such segmentation would permanent or June 30, 2019. [sic] BX in part, because it concluded, ‘‘the not be inconsistent with Section 6(b)(5) Rule 4780(g) will be amended to include Program is reasonably designed to of the Act, which requires that the rules at the end of the subsection that the benefit retail investors by providing of an exchange are not designed to Program will be limited to securities price improvement to retail order permit unfair discrimination.’’ 12 As the whose Bid Price on the Exchange is flow.’’ 11 The Commission also found SEC acknowledged, the retail order greater than or equal to $1.00 per share. that ‘‘while the Program would treat segmentation was designed to create [sic] 10 retail order flow differently from order greater retail order flow competition and flow submitted by other market thereby increase

the amount of this flow to transparent Second, the term ‘‘Retail Order’’ is including that the RMO maintains and well-regulated exchanges. This defined by BX Rule 4702(b)(6)(A) as an supervisory systems to reconstruct, in a would help to ensure that retail order type with a non-display order time-sequenced manner, all Retail investors benefit from competitive price attribute submitted to the Exchange by Orders that are entered on a riskless improvement that exchange-based an RMO. A Retail Order must be an principal basis; and (ii) the RMO liquidity providers provide. agency Order, or riskless principal submits a report, contemporaneously As discussed below, the Exchange Order that satisfies the criteria of FINRA with the execution of the facilitated believes that the Program supports these Rule 5320.03. The Retail Order must order, that identifies the trade as riskless conclusions. The Program does not reflect trading interest of a natural principal. harm retail investors. In fact, so far it person with no change made to the The term ‘‘Retail Price Improving has provided price improvement of terms of the underlying order of the more than $4 million since inception to Order’’ or ‘‘RPI Order’’ or collectively natural person with respect to price ‘‘RPI interest’’ is defined as an Order retail investors that they may not (except in the case of a market order that otherwise have received. As a result, the Type with a Non-Display Order is changed to a marketable limit order) Attribute that is held on the Exchange Exchange believes that it is therefore or side of market and that does not appropriate to make the pilot Program Book in order to provide liquidity at a originate from a trading algorithm or price at least $0.001 better than the permanent. 13 any other computerized methodology. NBBO through a special execution Definitions The criteria set forth in FINRA Rule process described in Rule 4780. An RPI The Exchange adopted the following 5320.03 adds additional precision to the Order may be entered in price definitions under BX Rule 4780. First, definition of ‘‘Retail Order’’ by increments of $0.001. An RPI Order will the term ‘‘Retail Member Organization’’ clarifying that an RMO may enter Retail be posted to the Exchange Book (or ‘‘RMO’’) is defined as a Member (or Orders on a riskless principal basis, regardless of its price, but an RPI Order a division thereof) that has been provided that (i) the entry of such may execute only against a Retail Order, approved by the Exchange to submit riskless principal orders meet the and only if its price is at least $0.001 Retail Orders. requirements of FINRA Rule 5320.03, better than the NBBO.14 RPI orders can

10 The Commission notes that the Exchange is not equal to $1.00 per share.’’ Rule 4780(g) will remain 13 See supra note 5. proposing to delete Rule 4780(h) in its entirety. unchanged under the proposed rule change. 14 Exchange systems prevent Retail Orders from Under the proposed rule change, Rule 4780(h) will 11 See RPI Approval Order, supra note 3 at 72051. interacting with RPI Orders if the RPI Order is not state, ‘‘The Program will be limited to securities 12 priced at least $0.001 better than the Protected whose Bid Price on the Exchange is greater than or Id. Continued

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be priced either as an explicitly priced and Allocation rules of the Program and RMO Qualifications and Approval limit order or implicitly priced as without regard to whether they are odd Process relative to the NBBO with an offset of lots, round lots or mixed lots. Finally, Under BX Rule 4780(b), any Member at least $0.001. Retail Orders are designated as Type 1 The price of an RPI Order with an may qualify as an RMO if it conducts a or Type 2 without regard to the size of retail business or routes retail orders on offset is determined by a Member’s the order. entry of the following into the behalf of another broker-dealer. For Exchange: (1) RPI buy or sell interest; (2) RPI Orders interact with Retail Orders purposes of BX Rule 4780, conducting an offset from the Protected NBBO, if as follows. Assume a Member enters RPI a retail business shall include carrying any; and (3) a ceiling or floor price. RPI sell interest with an offset of $0.001 and retail customer accounts on a fully Orders submitted with an offset are a floor of $10.10 while the Protected disclosed basis. Any Member that similar to other peg orders available to NBO is $10.11. The RPI Order could wishes to obtain RMO status is required Members in that the order is tied or interact with an incoming buy Retail to submit: (i) An application form; (ii) ‘‘pegged’’ to a certain price, and would Order at $10.109. If, however, the supporting documentation sufficient to have its price automatically set and Protected NBO was $10.10, the RPI demonstrate the retail nature and adjusted upon changes in the Protected Order could not interact with the Retail characteristics of the applicant’s order 16 NBBO, both upon entry and any time Order because the price required to flow and (iii) an attestation, in a form thereafter. RPI sell or buy interest deliver the minimum $0.001 price prescribed by the Exchange, that substantially all orders submitted by the typically are entered to track the improvement ($10.099) would violate Member as a Retail Order would meet Protected NBBO, that is, RPI Orders the Member’s floor of $10.10. If a the qualifications for such orders under typically are submitted with an offset. Member otherwise enters an offset The offset is a predetermined amount by proposed BX Rule 4780(b). The greater than the minimum required Exchange shall notify the applicant of which the Member is willing to improve price improvement and the offset would the Protected NBBO, subject to a ceiling its decision in writing. produce a price that would violate the or floor price. The ceiling or floor price An RMO is required to have written Member’s floor, the offset would be is the amount above or below which the policies and procedures reasonably Member does not wish to trade. RPI applied only to the extent that it designed to assure that it will only Orders in their entirety (the buy or sell respects the Member’s floor. By way of designate orders as Retail Orders if all interest, the offset, and the ceiling or illustration, assume RPI buy interest is requirements of a Retail Order are met. floor) will remain non-displayed. The entered with an offset of $0.005 and a Such written policies and procedures Exchange also allows Members to enter ceiling of $10.112 while the Protected must require the Member to (i) exercise RPI Orders that establish the exact limit NBBO is at $10.11. The RPI Order could due diligence before entering a Retail price, which is similar to a non- interact with an incoming sell Retail Order to assure that entry as a Retail displayed limit order currently accepted Order at $10.112, because it would Order is in compliance with the by the Exchange except the Exchange produce the required price requirements of this rule, and (ii) accepts sub-penny limit prices on RPI improvement without violating the monitor whether orders entered as Orders in increments of $0.001. The Member’s ceiling, but it could not Retail Orders meet the applicable Exchange monitors whether RPI buy or interact above the $10.112 ceiling. requirements. If the RMO represents sell interest, adjusted by any offset and Finally, if a Member enters an RPI Order Retail Orders from another broker-dealer subject to the ceiling or floor price, is without an offset (i.e., an explicitly customer, the RMO’s supervisory eligible to interact with incoming Retail priced limit order), the RPI Order will procedures must be reasonably designed Orders. interact with Retail Orders at the level to assure that the orders it receives from Members and RMOs may enter odd of the Member’s limit price as long as such broker-dealer customer that it lots, round lots or mixed lots as RPI the minimum required price designates as Retail Orders meet the Orders and as Retail Orders improvement is produced. Accordingly, definition of a Retail Order. The RMO respectively. As discussed below, RPI must (i) obtain an annual written Orders are ranked and allocated if RPI sell interest is entered with a limit price of $10.098 and no offset while the representation, in a form acceptable to according to price and time of entry into the Exchange, from each broker-dealer Protected NBBO is $10.11, the RPI the BX trading system (‘‘System’’) customer that sends it orders to be Order could interact with the Retail consistent with BX Rule 4757 and designated as Retail Orders that entry of therefore without regard to whether the Order at $10.098, producing $0.012 of such orders as Retail Orders will be in size entered is an odd lot, round lot or price improvement. The System will not compliance with the requirements of mixed lot amount. Similarly, Retail cancel RPI interest when it is not this rule, and (ii) monitor whether its Orders interact with RPI Orders and eligible to interact with incoming Retail broker-dealer customers’ Retail Order other price-improving orders available Orders; such RPI interest will remain in flow continues to meet the applicable on the Exchange (e.g., non-displayed the System and may become eligible requirements.17 liquidity priced more aggressively than again to interact with Retail Orders 15 the NBBO) according to the Priority depending on the Protected NBBO. RPI 16 For example, a prospective RMO could be Orders are not accepted during halts. required to provide sample marketing literature, NBBO. The Exchange notes, however, that price website screenshots, other publicly disclosed improvement of $0.001 would be a minimum materials describing the retail nature of their order requirement and Members can enter RPI Orders that then-current NBBO; midpoint-pegged orders (which flow, and such other documentation and better the Protected NBBO by more than $0.001. are by definition non-displayed and priced more information as the Exchange may require to obtain Exchange systems accept RPI Orders without a aggressively than the NBBO); non-displayed orders reasonable assurance that the applicant’s order flow minimum price improvement value; however, such pegged to the NBBO with an aggressive offset, as would meet the requirements of the Retail Order interest execute at its floor or ceiling price only if defined in BX Rule 4780(a)(4) as Other Price definition. such floor or ceiling price is better than the Improving Contra-Side Interest. Orders that do not 17 The Exchange or another self-regulatory Protected NBBO by $0.001 or more. constitute other price improving liquidity include, organization on behalf of the Exchange will review 15 Other price improving liquidity may include, but are not limited to: Orders with a time-in-force an RMO’s compliance with these requirements but is not limited to: Booked non-displayed orders instruction of IOC; displayed orders; limit orders through an exam based review of the RMO’s with a limit price that is more aggressive than the priced less aggressively than the NBBO. internal controls.

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If the Exchange disapproves the is available in the System (‘‘Retail remaining unexecuted RPI interest application, the Exchange provides a Liquidity Identifier’’). The Retail remain available to interact with other written notice to the Member. The Liquidity Identifier is disseminated incoming Retail Orders if such interest disapproved applicant could appeal the through consolidated data streams (i.e., is at an eligible price. Any remaining disapproval by the Exchange as pursuant to the Consolidated Tape unexecuted portion of the Retail Order provided in proposed BX Rule 4780(d), Association Plan/Consolidated will cancel or execute in accordance and/or reapply for RMO status 90 days Quotation System, or CTA/CQS, for with BX Rule 4780(f). The following after the disapproval notice is issued by Tape A and Tape B securities, and The example illustrates this method: the Exchange. An RMO also could Nasdaq Stock Market, LLC (‘‘Nasdaq’’) • Protected NBBO for security ABC is voluntarily withdraw from such status UTP Plan for Tape C securities) as well $10.00–$10.05 at any time by giving written notice to as through proprietary Exchange data • Member 1 enters an RPI Order to buy the Exchange. feeds.18 The Retail Liquidity Identifier ABC at $10.015 for 500 reflects the symbol and the side (buy or Failure of RMO To Abide by Retail • sell) of the RPI interest, but does not Member 2 then enters an RPI Order to Order Requirements buy ABC at $10.02 for 500 include the price or size of the RPI • BX Rule 4780(c) addresses an RMO’s interest. In particular, CQS and UTP Member 3 then enters an RPI Order to failure to abide by Retail Order quoting outputs include a field for codes buy ABC at $10.035 for 500 requirements. If an RMO designates related to the Retail Liquidity Identifier. An incoming Retail Order to sell orders submitted to the Exchange as The codes indicate RPI interest that is 1,000 shares of ABC for $10.00 executes Retail Orders and the Exchange priced better than the Exchange’s first against Member 3’s bid for 500 at determines, in its sole discretion, that Protected Bid or Protected Offer by at $10.035, because it is the best-priced those orders fail to meet any of the least the minimum level of price bid, then against Member 2’s bid for 500 requirements of Retail Orders, the improvement as required by the at $10.02, because it is the next best- Exchange may disqualify a Member Program. priced bid. Member 1 is not filled from its status as an RMO. When because the entire size of the Retail Retail Order Designations disqualification determinations are Order to sell 1,000 is depleted. The made, the Exchange provides a written Under BX Rule 4780(f), an RMO can Retail Order executes against RPI Orders disqualification notice to the Member. A designate how a Retail Order interacts in price/time priority. disqualified RMO may appeal the with available contra-side interest as However, assume the same facts disqualification as provided in proposed provided in Rule 4702. above, except that Member 2’s RPI BX Rule 4780(d) and/or reapply for A Type 1-designated Retail Order will Order to buy ABC at $10.02 is for 100. RMO status 90 days after the attempt to execute against RPI Orders The incoming Retail Order to sell 1,000 disqualification notice is issued by the and any other orders on the Exchange executes first against Member 3’s bid for Exchange. Book with a price that is (i) equal to or 500 at $10.035, because it is the best- better than the price of the Type-1 Retail Appeal of Disapproval or priced bid, then against Member 2’s bid Order and (ii) at least $0.001 better than for 100 at $10.02, because it is the next Disqualification the NBBO. A Type-1 Retail Order is not best-priced bid. Member 1 then receives routable and will thereafter be BX Rule 4780(d) provides appeal an execution for 400 of its bid for 500 cancelled. rights to Members. If a Member disputes at $10.015, at which point the entire the Exchange’s decision to disapprove it A Type 2-designated Retail Order will first attempt to execute against RPI size of the Retail Order to sell 1,000 is as an RMO under BX Rule 4780(b) or depleted. disqualify it under BX Rule 4780(c), Orders and any other orders on the Exchange Book with a price that is (i) As a final example, assume the same such Member (‘‘appellant’’) may facts as above, except that Member 3’s request, within five business days after equal to or better than the price of the Type-2 Retail Order and (ii) at least order was not an RPI Order to buy ABC notice of the decision is issued by the at $10.035, but rather, a non-displayed Exchange, that the Retail Price $0.001 better than the NBBO and will then attempt to execute against any order to buy ABC at $10.03. The result Improvement Program Panel (‘‘RPI would be similar to the result Panel’’) review the decision to other order on the Exchange Book with a price that is equal to or better than the immediately above, in that the incoming determine if it was correct. Retail Order to sell 1,000 executes first The RPI Panel consists of the price of the Type-2 Retail Order, unless against Member 3’s bid for 500 at Exchange’s Chief Regulatory Officer such executions would trade through a $10.03, because it is the best-priced bid, (‘‘CRO’’), or a designee of the CRO, and Protected Quotation. A Type-2 Retail then against Member 2’s bid for 100 at two officers of the Exchange designated Order may be designated as routable. $10.02, because it is the next best priced by the Chief Executive Officer of BX. Priority and Order Allocation bid. Member 1 then receives an The RPI Panel reviews the facts and execution for 400 of its bid for 500 at render a decision within the time frame Under BX Rule 4780(g), competing $10.015, at which point the entire size prescribed by the Exchange. The RPI RPI Orders in the same security are of the Retail Order to sell 1,000 is Panel may overturn or modify an action ranked and allocated according to price then time of entry into the System. depleted. taken by the Exchange and all Executions occur in price/time priority determinations by the RPI Panel All Regulation NMS securities traded in accordance with BX Rule 4757. Any constitute final action by the Exchange on the Exchange are eligible for on the matter at issue. inclusion in the RPI Program. The 18 The Exchange notes that the Retail Liquidity Exchange limits the Program to trades Retail Liquidity Identifier Identifier for Tape A and Tape B securities are occurring at prices equal to or greater disseminated pursuant to the CTA/CQS Plan. The Under BX Rule 4780(e), the Exchange identifier is also available through the consolidated than $1.00 per share. Toward that end, disseminates an identifier when RPI public market data stream for Tape C securities. The Exchange trade validation systems interest priced at least $0.001 better processor for the Nasdaq UTP quotation stream prevent the interaction of RPI buy or sell disseminates the Retail Liquidity Identifier and than the Exchange’s Protected Bid or analogous identifiers from other market centers that interest (adjusted by any offset) and Protected Offer for a particular security operate programs similar to the RPI Program. Retail Orders at a price below $1.00 per

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share.19 For example, if there is RPI buy competition for retail order flow by believes that the Program does not harm interest tracking the Protected NBB at allowing Exchange members to submit retail investors and so far has provided $0.99 with an offset of $0.001 and a RPI Orders 22 to interact with Retail price improvement of more than $4 ceiling of $1.02, Exchange trade Orders. BX also believes that such million since inception to retail validation systems would prevent the competition promotes efficiency by investors that they may not otherwise execution of the RPI Order at $0.991 facilitating the price discovery process have received. The data demonstrates with a sell Retail Order with a limit of and generating additional investor that the Program has continued to grow $0.99. However, if the Retail Order was interest in trading securities, thereby over time and the Exchange has not Type 2 as defined the Program,20 it promoting capital formation and retail detected any negative impact to market would be able to interact at $0.99 with investment opportunities. The Program quality. The Exchange also has not liquidity outside the Program in the will continue to be limited to trades received any complaints or negative Exchange’s order book. In addition to occurring at prices equal to or greater feedback concerning the Program. facilitating an orderly 21 and than $1.00 per share. As seen in the table below, RMO operationally intuitive program, the The Exchange believes, in accordance orders and shares executed have Exchange believes that limiting the with its filing establishing the pilot continued to rise since the introduction Program to trades equal to or greater Program, which BX did ‘‘produce data of the Program in December 2014. RMO than $1.00 per share enabled it better to throughout the pilot, which will include executed share volume on BX accounted focus its efforts to monitor price statistics about participation, the for 0.05% of total consolidated volume competition and to assess any frequency and level of price in eligible U.S. listed securities in Q4 indications that data disseminated improvement provided by the Program, 2017. Despite its size relative to total under the Program is potentially and any effects on the broader market consolidated trading, however, the disadvantaging retail orders. As part of structure.’’ 23 The Exchange has fulfilled Program has continued to provide some that review, the Exchange produced this obligation through the reports and price improvement to RMO orders each data throughout the pilot, which assessments it has submitted to the month with total price improvement included statistics about participation, Commission since the implementation during market hours from the start of the frequency and level of price of the pilot Program. the Program through May 2018 totaling improvement provided by the Program, The SEC stated in the RPI Approval over $4.3 million. and any effects on the broader market Order that the Program could promote structure. competition for retail order flow among Retail orders are routed by execution venues, and that this could sophisticated brokers using systems that Rationale for Making the Program Pilot benefit retail investors by creating seek the highest fill rates and amounts Permanent additional well-regulated and of price improvement. These brokers The Exchange established the RPI transparent price improvement have many choices of execution venues Program in an attempt to attract retail opportunities for marketable retail order for retail orders. When they choose to order flow to the Exchange by providing flow, most of which is currently route to the Program, they have an opportunity price improvement to executed in the Over-the-Counter determined that it is the best such order flow. The Exchange believes (‘‘OTC’’) markets without ever reaching opportunity for fill rate and price that the Program promotes transparent a public exchange.24 The Exchange improvement at that time.

Total RMO Total RMO RMO shares price Month orders executed improvement (market hours) (market hours) (market hours)

Sep–14 ...... 0 0 $0 Oct–14 ...... 0 0 0 Nov–14 ...... 0 0 0 Dec–14 ...... 4,003 521,587 6,572 Jan–15 ...... 66,903 9,723,791 55,480 Feb–15 ...... 71,204 12,948,664 54,769 Mar–15 ...... 62,216 10,818,042 49,232 Apr–15 ...... 75,558 12,121,577 63,247 May–15 ...... 98,859 16,723,281 81,268 Jun–15 ...... 116,570 20,341,305 100,520 Jul–15 ...... 133,917 22,310,364 111,657 Aug–15 ...... 192,546 30,011,636 194,706 Sep–15 ...... 141,496 23,199,937 110,415 Oct–15 ...... 148,414 25,745,772 128,838 Nov–15 ...... 123,267 20,788,967 120,037 Dec–15 ...... 145,022 24,414,783 140,444

19 As discussed above, the price of an RPI is 21 Given the proposed limitation, the Program 22 A Retail Price Improvement Order is defined in determined by a Member’s entry of buy or sell would have no impact on the minimum pricing BX Rule 4780(a)(3) by referencing BX Rule 4702 interest, an offset (if any) and a ceiling or floor increment for orders priced less than $1.00 and and BX Rule 4702(b)(5) says that it is as an order price. RPI sell or buy interest typically tracks the therefore no effect on the potential of markets type with a non-display order attribute that is held Protected NBBO. executing those orders to lock or cross. In addition, on the Exchange Book in order to provide liquidity at a price at least $0.001 better than the NBBO 20 Type 2 Retail Orders are treated as IOC orders the non-displayed nature of the liquidity in the through a special execution process described in Program simply has no potential to disrupt that execute against displayed and non-displayed Rule 4780. displayed, protected quotes. In any event, the liquidity in the Exchange’s order book where there 23 See Securities Exchange Act Release No. 73410 is no available liquidity in the Program. Type 2 Program would do nothing to change the obligation (October 23, 2014), 79 FR 64447 at 64450 (SR–BX– Retail Orders can either be designated as eligible for of exchanges to avoid and reconcile locked and 2014–048). routing or as non-routable, as described above. crossed markets under NMS Rule 610(d). 24 RPI Approval Order, 79 FR at 72053.

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Total RMO Total RMO RMO shares price Month orders executed improvement (market hours) (market hours) (market hours)

Jan–16 ...... 162,025 30,010,815 181,781 Feb–16 ...... 135,409 27,794,644 173,988 Mar–16 ...... 93,729 17,688,230 88,900 Apr–16 ...... 82,819 15,269,513 78,241 May–16 ...... 70,192 13,336,738 71,145 Jun–16 ...... 76,092 15,356,152 74,035 Jul–16 ...... 65,121 13,532,803 59,305 Aug–16 ...... 78,611 16,412,113 64,231 Sep–16 ...... 84,240 17,368,907 46,792 Oct–16 ...... 146,207 30,827,361 60,624 Nov–16 ...... 103,046 19,744,407 60,391 Dec–16 ...... 168,638 31,003,843 76,025 Jan–17 ...... 140,203 23,474,999 58,887 Feb–17 ...... 139,447 26,643,083 59,372 Mar–17 ...... 161,154 30,595,963 73,250 Apr–17 ...... 126,665 26,587,486 59,141 May–17 ...... 143,927 31,368,371 78,979 Jun–17 ...... 332,266 71,569,426 405,933 Jul–17 ...... 210,309 39,061,892 155,669 Aug–17 ...... 266,762 51,442,492 255,999 Sep–17 ...... 154,846 29,831,646 69,634 Oct–17 ...... 205,399 39,409,251 95,051 Nov–17 ...... 370,064 94,703,209 169,738 Dec–17 ...... 219,528 49,424,240 102,082 Jan–18 ...... 248,419 47,080,453 113,956 Feb–18 ...... 263,576 40,979,066 100,148 Mar–18 ...... 597,460 40,896,277 98,779 Apr–18 ...... 1,095,396 41,067,806 97,015 May–18 ...... 1,031,527 31,843,167 81,199

Total ...... 8,353,052 1,193,994,059 4,327,477

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The table below shows that between approximately 2%, ranging from 0.62% which accounted for the vast majority of April 2017 and May 2018, roughly 50% to 3.09%. Although large order were a total RMO orders, accounted for only of RMO orders were for 100 shares or small percentage of total orders, they between 4.81% and 15.38% of total less and around 70% of orders were for make up a significant portion of total shares ordered. 300 shares or less. Larger orders of 7,500 shares ordered, ranging from 21.11% to shares or more accounted for 46.22%. Orders of 300 shares or less,

DISTRIBUTION OF RMO ORDERS BY ORDER SIZE

<=100 101–300 301–500 501–1,000 1,001–2,000 2,001–4,000 4,001–7,500 7,500–15,000 >15,000 Month (percent) (percent) (percent) (percent) (percent) (percent) (percent) (percent) (percent)

Apr–17 ...... 49.50 18.53 8.67 9.47 5.69 3.84 2.24 1.38 0.69 May–17 ..... 46.55 23.79 8.25 8.42 5.26 3.71 2.12 1.29 0.62 Jun–17 ..... 59.60 13.26 6.62 7.91 4.75 3.48 2.36 1.52 0.51 Jul–17 ...... 57.30 14.61 7.32 8.50 5.17 3.28 2.00 1.19 0.65 Aug–17 ..... 56.38 15.19 7.54 8.49 5.23 3.41 1.91 1.22 0.63 Sep–17 ..... 53.16 16.29 7.69 8.79 5.71 4.05 2.22 1.38 0.70 Oct–17 ...... 54.28 16.00 7.46 8.65 5.64 3.84 2.15 1.33 0.66 Nov–17 ..... 47.76 15.30 8.19 10.23 7.38 5.10 2.95 2.04 1.06 Dec–17 ..... 48.66 15.30 8.27 10.34 6.99 4.82 2.79 1.87 0.98 Jan–18 ..... 53.60 14.93 7.73 9.20 5.98 4.04 2.28 1.53 0.71 Feb–18 ..... 58.44 14.58 7.14 8.02 4.93 3.29 1.91 1.14 0.55 Mar–18 ..... 55.29 17.97 8.63 8.38 5.12 2.64 1.07 0.61 0.28 Apr–18 ...... 54.52 19.12 9.04 8.31 5.02 2.50 0.87 0.42 0.19 May–18 ..... 50.44 20.21 9.89 9.10 5.77 2.88 0.96 0.50 0.26

DISTRIBUTION OF RMO SHARES ORDERED BY ORDER SIZE

<=100 101–300 301–500 501–1,000 1,001–2,000 2,001–4,000 4,001–7,500 7,500–15,000 >15,000 Month (percent) (percent) (percent) (percent) (percent) (percent) (percent) (percent) (percent)

Apr–17 ...... 3.04 4.63 4.42 8.78 10.06 12.89 13.89 16.06 26.23 May–17 ..... 3.28 6.49 4.49 8.34 9.98 13.38 14.28 16.05 23.71 Jun–17 ..... 2.47 3.78 3.95 8.89 10.15 13.74 17.06 20.07 19.88 Jul–17 ...... 2.82 4.20 4.36 9.31 10.78 12.94 14.44 16.47 24.67 Aug–17 ..... 2.80 4.28 4.42 9.21 10.84 13.21 13.55 16.63 25.08 Sep–17 ..... 2.88 4.16 3.98 8.36 10.50 14.04 14.17 16.78 25.14 Oct–17 ...... 2.89 4.31 4.09 8.73 11.02 14.04 14.49 17.11 23.32 Nov–17 ..... 1.80 3.01 3.26 7.48 10.45 13.51 14.27 18.89 27.33 Dec–17 ..... 2.00 3.17 3.48 8.02 10.45 13.46 14.18 18.35 26.91

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DISTRIBUTION OF RMO SHARES ORDERED BY ORDER SIZE—Continued

<=100 101–300 301–500 501–1,000 1,001–2,000 2,001–4,000 4,001–7,500 7,500–15,000 >15,000 Month (percent) (percent) (percent) (percent) (percent) (percent) (percent) (percent) (percent)

Jan–18 ..... 2.50 3.78 4.01 8.82 11.05 13.94 14.30 18.35 23.26 Feb–18 ..... 3.25 4.52 4.52 9.34 11.08 13.87 14.53 16.86 22.02 Mar–18 ..... 5.73 6.96 6.80 12.44 14.90 14.65 11.00 12.34 15.17 Apr–18 ...... 7.27 8.11 7.84 13.68 16.23 15.46 10.29 9.51 11.61 May–18 ..... 6.31 7.54 7.50 13.09 16.40 15.66 10.00 9.80 13.70

DISTRIBUTION OF RMO SHARES EXECUTED BY ORDER SIZE

<=100 101–300 301–500 501–1,000 1,001–2,000 2,001–4,000 4,001–7,500 7,500–15,000 >15,000 Month (percent) (percent) (percent) (percent) (percent) (percent) (percent) (percent) (percent)

Apr–17 ...... 11.39 15.32 11.28 16.25 12.77 10.87 9.27 9.25 3.61 May–17 ..... 10.86 20.10 10.47 13.77 11.37 10.58 8.96 9.44 4.45 Jun–17 ..... 7.65 10.05 8.48 14.31 11.28 11.85 12.00 18.69 5.68 Jul–17 ...... 10.07 12.67 10.18 15.57 12.94 11.79 9.97 10.27 6.56 Aug–17 ..... 9.93 12.98 10.89 17.05 14.16 11.94 9.38 8.23 5.45 Sep–17 ..... 11.36 13.46 10.12 16.01 13.80 13.07 8.60 8.61 4.97 Oct–17 ...... 10.83 13.37 10.07 16.40 14.46 12.48 9.47 7.96 4.96 Nov–17 ..... 7.04 10.64 10.14 19.81 18.19 13.96 9.04 7.10 4.09 Dec–17 ..... 8.25 11.27 10.37 19.49 17.05 13.33 8.82 7.13 4.28 Jan–18 ..... 9.93 12.43 10.92 19.37 16.07 12.66 8.49 6.49 3.64 Feb–18 ..... 12.63 14.31 11.81 19.45 15.07 11.22 6.81 5.55 3.16 Mar–18 ..... 13.92 15.35 11.92 19.14 14.77 10.05 6.35 5.49 3.00 Apr–18 ...... 14.81 15.76 11.86 18.35 13.47 10.21 6.75 5.41 3.39 May–18 ..... 13.65 15.78 12.38 18.77 13.92 10.57 6.25 5.27 3.40

The table below shows the average and median sizes of RMO removing orders.

AVERAGE AND MEDIAN RMO SIZES

RMO taking order size Year Avg Median

Apr–17 ...... 863 111 May–17 ...... 802 180 Jun–17 ...... 743 82 Jul–17 ...... 739 100 Aug–17 ...... 753 100 Sep–17 ...... 841 100 Oct–17 ...... 793 100 Nov–17 ...... 1,103 150 Dec–17 ...... 1,044 132 Jan–18 ...... 844 100 Feb–18 ...... 690 100 Mar–18 ...... 512 100 Apr–18 ...... 454 100 May–18 ...... 517 100

The data provided by the Exchange Program on overall market quality or for As discussed more fully below, the describes a valuable service that retail investors. reports and assessments provided by the delivers some price improvement in a As discussed herein, the Program is a Exchange to the SEC have covered (i) transparent and well-regulated minor participant in the overall market the economic impact of the Program on environment. The Program represents to price improve marketable retail order the entire market; (ii) the economic just a fraction of retail orders, most of flow. As the Exchange has noted, impact of the Program on execution which are executed off-exchange by a although participation was low, retail quality; (iii) whether only eligible wide range of order handling services investors that participated in the participants are accessing Program that have considerably more market Program received price improvement on liquidity; (iv) whether the Program is share and which operate pursuant to their orders, which was one of the stated attracting retail participants; (v) the net different rules and regulatory goals of the Program. The Exchange, benefits of the Program on participants; requirements. BX found no data or therefore, believes that this pilot data (vi) the overall success in achieving received any customer feedback that supports making the Program intended benefits; and (vii) whether the indicated any negative impact of the permanent. Program can be improved.

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1. Economic Impact of the RPI Program combinations with positive The columns labeled ‘Two-Year on the Entire Market consolidated volume are represented. Aggregate’ present results for stocks The table shows that the overwhelming summed over the entire two-year period The following table illustrates the number of stock/date combinations are (sum of RPI Program volume to sum of level of volume done through the those in which BX RPI volume was less consolidated volume). Only stocks Program relative to consolidated than 0.01% of consolidated volume. In listed during the entire two years are volume. The columns labeled ‘Daily most of these cases, BX RPI volume was represented. Virtually all stocks have Results’ show the distribution of the zero. In only a comparative handful of RPI volume less than 0.5% of percentage of RPI to consolidated cases does the percentage amount to a consolidated volume. volume for all stock/date combinations substantial portion of the security’s during 2017–2018. Only stock/date volume.

Daily results Two-year aggregate Distribution Count Percentage Count Percentage

>50% ...... 22 0.0005 0 0.0000 25%–50% ...... 44 0.0011 0 0.0000 10%–25% ...... 368 0.0090 0 0.0000 5%–10% ...... 1,444 0.0355 0 0.0000 1%–5% ...... 25,730 0.6321 0 0.0000 0.75%–1% ...... 11,835 0.2907 4 0.0542 0.50%–0.75% ...... 22,413 0.5506 10 0.1354 0.25%–0.50% ...... 56,130 1.3789 91 1.2321 0.10%–0.25% ...... 111,937 2.7499 559 7.5684 0.05%–0.10% ...... 105,651 2.5955 951 12.8757 0.01%–0.05% ...... 220,649 5.4206 3,181 43.0680 <0.01% ...... 3,514,320 86.3354 2,590 35.0663

Difference in Difference Analysis which Program participation was light prior to Program introduction were The aim of this analysis was to serve as the ‘control’ stocks. The used. compare the values of a set of general approach suffers from the limitation that Data from the pre-treatment period market metrics prior to the December Program participation is a determined was obtained from trading during the 2014 introduction of the Program to by endogenous choice. It is possible that three months of September through those prevailing after. The Exchange stocks with high levels of participation November 2014. The Exchange looks at follows what is commonly termed the are systematically different from those two post-treatment periods. The first is ‘difference-in-difference’ approach with low participation. That is, the based on trading from January through (‘‘DnD’’). A DnD analysis involves controls may be different from the December 2015. The second is based on identifying a group of subjects (stocks in treated stocks in important ways. With trading from the two years from January this case) that receive a given this caveat in mind, it is nevertheless of 2017 through December 2018. Note that ‘treatment.’ In this case, the ‘treatment’ interest to see differences in outcomes December 2014, the month of Program is the introduction of the BX RPI between the two groups of stocks. introduction, is not used. Further, the Program. The Exchange would then While the treatment and control Exchange excluded data from trading observe the change (difference) in a set stocks differ substantially in terms of days when the Exchange closed early of empirical indicia of market quality, RPI participation, the validity of the (such as the day after Thanksgiving) before and after Program introduction. DnD analysis is enhanced to the extent from the analysis. that the two groups are otherwise as The analysis is enhanced by observing The overall set of four DnD analyses the intertemporal change in the same similar to each other as possible. To achieve this objective, the Exchange first can be represented and hereafter labeled indicia for a set of stocks that did not as follows: receive the treatment. The non-treated breaks its analysis into two parts: One stocks would serve as ‘controls.’ The dealing with active securities, the other Post-period dates impact of the Program could therefore with less active securities. The CADV be assessed by comparing the pre/post Exchange’s set of active securities are 2015 2018 changes in the treated stocks with those those with consolidated average daily from the control stocks, hence the volume (‘‘CADV’’) of 500,000 shares or 500,000 or more ...... I III more both before and after Program Between 50,000 and II IV difference in differences. Observed 500,000. changes in the control stocks would introduction. The less active group have account for environmental effects, such CADV between 50,000 and 500,000 as changes in general market volatility, shares both before and after Program For each of the four DnD analyses, the that are unrelated to the introduction of introduction. Then, within each volume specific matched-pairs process the BX RPI Program. grouping, the Exchange conducts a employed the following steps: The RPI introduction in December ‘matched pairs’ process to identify a 1. Daily averages for a set of variables 2014 applied to all stocks traded on BX. smaller set of treatment and control are computed for each stock (excluding Thus, control stocks in the strict sense groups that are as close to each other as preferred stocks and warrants) listed on are not available. The Exchange applies possible across three dimensions: Nasdaq or NYSE for the appropriate pre/ therefore a fallback approach, in which Consolidated average daily share post time frames. For the 2017–2018 it identifies stocks with relatively high volume, average price, and average post-period, stocks trading with a nickel levels of RPI participation and use these time-weighted quoted NBBO dollar tick size pursuant to the Tick Size Pilot as the ‘treatment’ stocks. Those for spread. The values of these variables were excluded.

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2. The initial universe of stocks are 4. Pre-period data for the provisional percentage from the treatment stocks. identified as having, in the post period, treatment stocks is obtained. During the For the lower-volume analyses (II. and the appropriate CADV, an average share pre-period, the treatment stocks must IV.), the control stocks were selected price greater than $2, positive average also have the appropriate CADV level, from stocks whose RPI volume daily BX share volume, and being listed an average price greater than $2, percentage was less than one-fifth that during at least 80% of the designated positive BX share volume, listed during of the lowest RPI percentage from the time frame. To exclude stocks that may the entire pre-period, and not have treatment stocks. This change was made have experienced stock splits or other experienced extreme price movement to ensure a sufficient number of control extreme price movement, stocks with (measured as described in condition 2 stocks. the 95th and 5th percentile of daily above). This process will generally 6. The control stocks must also have price within the period differed by more result in fewer than 100 remaining similar restrictions to the treatment than a factor of two were excluded. treatment candidates. stocks in both pre- and post-periods: 3. These stocks are ranked on the 5. The candidate control stocks are CADV in the appropriate range, price percentage of consolidated volume that selected from those with low RPI greater than $2, positive BX volume, was done in the Program (in the post Program volume as a percentage of sufficient presence, and no extreme period). Selection of the treatment consolidated volume. For the two high- price movements during the period. stocks starts with the top 100 stocks in volume analyses (I. and III.), the control 7. Each treatment stock was compared terms of post-introduction RPI Program stocks were selected from stocks whose with each candidate control stock. volume as percentage of consolidated RPI volume percentage was less than Using pre-period data, a discrepancy volume for the stock. one-tenth that of the lowest RPI score was computed as:

where the subscripts Tr and Cn refer to DnD result. Standard regression software in mind. As shown above, BX RPI Treatment and Control values of the provides both the estimated coefficient volume represents a very small fraction indicated variable. In words, the score is as well as its standard error and t- of consolidated volume. Further, the the sum of the absolute value of the statistic. The level of statistical Program was introduced at a time when percentage differences in the indicated significance can be assessed using the t- values. The lower the score, the closer statistic. similar exchange-based retail programs the match. were already in place. Among those The Exchange considered eight programs was Nasdaq’s retail program, 8. Each treatment stock was paired metrics of interest, all of which were which was discontinued at the time the with the best possible match, subject to computed during standard 9:30 a.m.– BX RPI Program was introduced. To a the constraint that a given control stock 4:00 p.m. (Eastern time) trading hours: large extent, the BX RPI volume could be used only once (often termed • The time-weighted NBBO quoted replaced that of Nasdaq. ‘sampling without replacement’). spread, measured in dollars; It is also important to recognize that 9. Finally, only stock pairs with • The time-weighted NBBO relative much, if not most, marketable retail reasonable discrepancy scores were (to the bid-ask midpoint) quoted spread, order flow is routed to off-exchange retained, recognizing the trade-off measured in basis points; market makers. For example, the between quality of the matches and the • The trade-weighted effective spread Exchange examined Rule 606 resulting sample size. For the high- of all trades done on BX, measured in disclosures from four prominent retail volume/2015 analysis (I.) the dollars; brokerages: E-Trade, TD Ameritrade, discrepancy scores were 1.2 or lower. • The trade-weighted relative Charles Schwab, and Fidelity. For For the low-volume/2015 analysis (II,), effective spread of all trades done on securities listed on the New York Stock the larger set of control stocks led to an BX, measured in basis points; Exchange LLC (‘‘NTSE’’) in the fourth upper bound of 0.6 for the discrepancy • As a measure of short-term quarter of 2018, only Fidelity reported score. For both analyses with 2017–18 volatility, the average high/low range of routing any market orders to exchanges, as the post period (III. and IV.) an upper consolidated trade prices during 5- and its total exchange percentage was bound of 2.0 was used, due to a smaller minute windows. The daily high/low only 2.1%. This practice of routing set of potential control stocks. range measure is divided by the VWAP Once a set of matched pairs was retail marketable orders to off-exchange each day to yield a metric measured in determined for a given analysis, the venues has been in place for a long time, percent; Exchange computed the DnD result both before and after the introduction of • As another measure of short-term using a standard linear regression the Program. volatility, the average absolute change Combining the smallness of the framework. A DnD regression model can in consolidated trade-to-trade price Program, the concurrent discontinuation be expressed as: changes. The trade-to-trade measure is of the Nasdaq retail program, and the git = a + b1 DGrp + b2 DPeriod + b3 DGrp × divided by the VWAP each day to yield continuing prevalence of off-exchange DPrd + eit a metric measured in percent; trading of retail orders, the incremental where git represents the metric of interest for • The average share volume market impact of the Program on market quality stock i in time period t (pre or post). The share of TRF volume, including generally would not be expected to be ‘dummy’ variables DGrp and DPrd are auctions and all trading hours; and large. constructed such that DGrp = 1 when • The average share volume market A second caveat stems from the way stock i is a treatment stock, and zero share of BX volume, including auctions that the treatment and control groups otherwise. Variable Dprd has value = 1 when the observation is from the post and all trading hours. are created. The Exchange observes that period, zero otherwise. The coefficient b3 In assessing the results of the DnD some types of stocks have higher BX RPI of the interaction term represents the analysis, two caveats are worth bearing Program usage than others. For example,

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consider Nasdaq- and NYSE-listed This sample shows higher Program in average share volume, price, and securities trading in 2015 with CADV percentages for less-active stocks, and spread in the pre-period. If, however, greater than 500,000 shares (a sample of much higher percentages for higher- the two groups of stocks are 1,737 stocks, used in analysis I.). The priced stocks. This suggests that RPI nevertheless still not properly fully Exchange found the following usage across stocks does not randomly matched, it is possible that results concerning the percentage of BX RPI vary, but is driven by certain stock drawn from the DnD may be spurious. volume relative to consolidated volume: characteristics, some of which may not ‘Spurious’ in this context means a result be directly observable. that is robust statistically, but RPI/consol. As noted above, Rule 606 disclosures nevertheless does not indicate the Avg CADV of stock (percent) show that the majority of retail market impact of the intended factor. In other orders are routed off-exchange for words, a spurious result is caused by 500,000–1,000,000 ...... 0.026 execution. BX RPI activity is therefore some extraneous factor. 1,000,000–10,000,000 ...... 0.015 itself somewhat anomalous in the first Matching Summary 10,000,000+ ...... 0.010 place. Why some retail flow reaches exchanges via the Program (or that of The full set of matched pairs data for RPI/consol. similar exchange programs), and why it each of the four analyses will be Avg price level (percent) varies across stocks is not clear. provided below, but the following table Since treatment and control stocks are provides summary information. Shown Less than $100 ...... 0.017 determined on the basis of observed RPI are the number of matched pairs, and $100–$200 ...... 0.032 usage—resulting from participant sample averages for the three matching $200–$500 ...... 0.074 choice—they may be different in variables. Also shown is the average of $500+ ...... 0.127 important ways. The DnD study the discrepancy score used in the attempts to take into account differences matching process. MATCHED PAIRS AVERAGES

Treatment Control Analysis N RMO RMO (percent) ADV Price Spread (percent) ADV Price Spread Score

I ...... 44 0.0763 1,478,796 $50.79 $0.039 0.0033 1,464,376 $48.28 $0.031 0.492 II ...... 71 0.1534 156,902 26.92 0.062 0.0123 157,105 27.22 0.064 0.264 III ...... 41 0.0531 4,325,804 35.51 0.029 0.0023 3,329,018 38.94 0.019 0.812 IV ...... 49 0.0889 166,435 19.37 0.051 0.0082 179,551 23.95 0.046 0.684

The table again illustrates the low the average quality of matches is lower estimated coefficient, the t-statistic is level of Program participation, even for for the samples using 2017–18 as the provided. This statistic can be used to the treatment stocks. The RMO post period (III and IV). As noted above, gauge the statistical significance of the percentages are especially low for the the maximum allowable discrepancy coefficient—the confidence that the true higher volume samples (I and III). As score was increased for these samples, value of the coefficient is different than intended, the RMO percentages for the needed to provide for a sample size zero. The t-statistics are accompanied, control stocks are much lower still, similar to those of samples I and II. as appropriate, with a set of asterisks averaging at least an order of magnitude indicating the associated level of Regression Results lower than the treatment stocks. significance: * = 10%, ** = 5%, and *** Other than these differences, the pairs The following table provides the = 1%. exhibit strong average similarity in estimated coefficients for the DnD It is useful to compare the results terms of the values of the pre-period regressions for the indicated market across the four samples to assess their matching variables. It can be seen that indicator and sample. In addition to the consistency.

ANALYSIS SAMPLE

I. II. III. IV. Coeff t-stat Coeff t-stat Coeff t-stat Coeff t-stat

NBBO Spreads: Dollar ...... $0.018 *** 3.16 $0.011 0.93 ¥$0.003 ¥0.31 ¥$0.030 * ¥1.91 bps ...... 1.52 0.89 4.38 0.99 1.66 0.73 7.27 0.97

BX Effective Spreads: Dollar ...... $0.014 *** 4.31 $0.008 1.32 ¥$0.001 ¥0.32 ¥$0.008 ¥1.45 bps ...... 1.84 1.65 3.65 1.06 1.78 0.99 8.75 *1.79

Volatility: Hi-Lo Range ...... ¥0.001% ¥0.02 0.008% 0.38 ¥0.014% ¥0.41 ¥0.022% ¥0.78 Trade-to-Trade ...... 0.003% 0.99 0.009% 1.03 0.004% 1.19 0.023% 1.49

Market Share Change: TRF ...... 2.86% 1.36 0.58% 0.24 3.13% 1.87* 1.75% 0.50 BX ...... 0.31% ** 2.23 0.42% ** 2.02 ¥0.56% *** ¥2.7 ¥0.16% ¥0.56

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Spreads from sample III are statistically significant increases in BX market share significant. From sample IV, one of the of about one-third of a point. This Four spread measures are analyzed: dollar spread decreases and one of the increase may be partially reflective of NBBO quoted spreads and BX effective relative spread increases indicate the transfer of Nasdaq’s retail program spreads, expressed in dollar and bps marginal statistical significance. to BX. The more distant-term samples III terms. The table above shows Overall, the Exchange does not see and IV show, however, declines in BX substantial consistency between the sufficient consistency across the four share. The regressions on TRF share all NBBO quoted and BX effective spread samples to conclude that the produce positive coefficients, though results across all samples. introduction of the Program caused only one has any level of statistical Sample I. indicates increases in dollar spreads to widen. significance. Collectively, it can be quoted and effective spreads of about safely stated that the introduction of the Volatility 11⁄2 cents. The results are statistically BX RPI program did not work towards significant. Relative (bps) spreads also Compared to the spread results, decreasing TRF share. More likely what increased about 11⁄2 basis points. The results on short-term volatility are easier the results tell us is that the treatment bps spread results do not meet the to characterize. Across the two metrics stocks with relatively high RMO volume standards of statistical significance, and four samples, there is no evidence also had high levels of retail interest however. Compared to Sample I, of a systematic increase or decrease in generally. As noted above, most retail Sample II shows increases in dollar volatility, some estimates are positive, flow is executed off exchange, hence the spreads of about the same amount and some negative, and none meet the increase in TRF share. increases in bps spreads of a higher standards of statistical significance. amount, likely due to the fact that the I. Active Stocks (CADV > 500,000) and Sample II stocks tend to have lower Market Share Post-Period = 2015 share prices. None of the Sample II The market share coefficients are For this sample, there were 44 spread increases meet the standard of expressed in market share points. For matched pairs that emerged from this statistical significance, however. Both example, a value of 1% means that process. The pairs, along with values of samples III and IV show small decreases market share increased by one point selected variables, pre- and post- in dollar spreads and increases in (e.g., 30% to 31%). The nearer-term Program introduction, are shown as relative spreads. None of the results samples I and II suggest statistically follows:

TABLE 1A—RETAIL PROGRAM MATCHED SAMPLE CADV >500,000 [Sep–Nov 2014]

Treatment stocks Control stocks Avg sprd Avg sprd Avg sprd Avg sprd Symbol ADV Avg price ($) (bps) Symbol ADV Avg price ($) (bps)

ACAD ...... 1,301,549 $26.71 $0.035 13.20 RSPP...... 1,006,435 $25.41 $0.042 16.44 AFSI ...... 963,827 45.37 0.058 12.53 CNW...... 1,035,534 47.10 0.027 5.85 ALK ...... 1,421,387 48.80 0.025 5.26 AER...... 1,420,894 42.73 0.025 5.80 AVGO ...... 2,296,967 84.93 0.042 4.94 DLPH...... 2,274,323 67.10 0.022 3.28 BDX ...... 1,544,016 122.52 0.039 3.22 SIAL...... 1,139,858 128.25 0.034 2.81 CAMP ...... 712,958 18.53 0.027 14.71 MIK...... 633,004 18.48 0.032 17.24 CELG ...... 4,941,261 98.16 0.034 3.52 LYB...... 5,063,747 98.75 0.028 2.90 CI ...... 1,621,670 95.17 0.033 3.45 MJN...... 1,416,148 98.05 0.033 3.41 CLX ...... 1,176,737 96.35 0.027 2.77 DTE...... 1,145,735 78.91 0.024 3.04 COST ...... 2,068,993 130.14 0.031 2.38 ITW...... 1,952,683 88.27 0.018 2.10 CRZO ...... 1,162,062 51.73 0.069 13.56 JAH...... 1,115,067 61.48 0.032 5.17 DXCM ...... 639,488 44.44 0.052 11.72 KMT...... 650,995 40.82 0.029 7.10 ENLK ...... 737,216 30.01 0.050 16.82 MYGN...... 756,758 36.29 0.054 14.74 FSC ...... 1,199,762 9.10 0.010 11.20 EXG...... 1,043,356 9.97 0.010 10.18 FSLR ...... 2,507,147 59.85 0.040 6.73 CAM...... 2,841,939 62.83 0.025 4.05 IBKR ...... 507,360 25.51 0.024 9.42 WERN...... 542,473 26.12 0.022 8.38 ICLR ...... 582,300 54.93 0.051 9.34 SLH...... 582,309 55.54 0.042 7.47 ISIS ...... 2,304,953 42.90 0.050 11.87 DO...... 2,028,802 37.29 0.026 6.93 JACK ...... 550,619 67.89 0.057 8.37 REG...... 509,779 57.69 0.031 5.39 LAZ ...... 704,069 50.59 0.045 9.02 HDB...... 834,887 49.84 0.025 5.12 MANH ...... 512,845 35.01 0.037 10.67 MR...... 610,957 30.32 0.030 9.83 MHK ...... 737,514 139.12 0.084 6.08 SLG...... 788,370 109.07 0.057 5.28 MNST ...... 1,194,231 96.92 0.051 5.33 EQT...... 1,625,380 91.54 0.059 6.48 NXPI ...... 4,256,770 68.85 0.031 4.48 CCI...... 3,275,501 80.56 0.024 2.93 NYMT ...... 1,596,486 7.76 0.010 12.98 PMCS...... 1,483,102 7.49 0.011 14.09 OLED ...... 709,659 31.24 0.045 14.50 FET...... 713,162 28.85 0.033 11.66 PSEC ...... 3,891,913 9.79 0.010 10.25 SLM...... 4,532,083 9.17 0.010 11.09 Q ...... 739,497 56.41 0.039 6.96 OIS...... 913,560 59.56 0.048 7.97 RMTI ...... 677,364 9.70 0.031 32.18 COUP...... 770,002 14.10 0.031 22.28 SINA ...... 1,550,979 41.43 0.036 8.79 YPF...... 1,668,599 33.94 0.031 9.11 SKYW ...... 558,570 9.63 0.018 19.30 BEL...... 504,230 11.61 0.018 15.88 SMCI ...... 520,354 28.97 0.044 15.62 SERV...... 594,059 24.05 0.038 15.87 SNCR ...... 615,801 45.95 0.068 14.76 LTRPA...... 688,159 30.63 0.069 22.17 SPLK ...... 2,740,926 60.05 0.054 9.13 FTI...... 2,360,200 54.47 0.024 4.39 SWKS ...... 4,301,104 56.96 0.024 4.33 NOV...... 4,357,777 75.03 0.023 3.04 TASR ...... 3,094,977 17.08 0.017 9.88 LPI...... 3,200,381 19.98 0.016 8.34

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TABLE 1A—RETAIL PROGRAM MATCHED SAMPLE CADV >500,000—Continued [Sep–Nov 2014]

Treatment stocks Control stocks Avg sprd Avg sprd Avg sprd Avg sprd Symbol ADV Avg price ($) (bps) Symbol ADV Avg price ($) (bps)

TGTX ...... 509,492 11.16 0.036 32.33 MEG...... 592,554 14.46 0.028 19.67 TSCO ...... 1,270,325 66.28 0.031 4.66 FLS...... 1,201,366 68.85 0.033 4.74 TUP ...... 527,236 68.49 0.044 6.47 KRC...... 535,203 63.70 0.037 5.78 UA ...... 2,678,432 67.54 0.032 4.80 NBL...... 2,781,689 61.96 0.025 4.08 UBNT ...... 1,115,056 36.37 0.051 14.34 ERJ...... 1,106,399 37.84 0.021 5.52 VDSI ...... 851,633 21.13 0.035 17.03 LQ...... 827,960 19.86 0.025 12.65 YRCW ...... 750,968 20.65 0.036 17.55 STAY...... 627,766 21.90 0.029 13.44 ZLTQ ...... 720,533 24.55 0.041 16.88 CTLT...... 679,346 24.50 0.045 18.20

Avg ...... 1,478,796 50.79 0.039 10.76 Avg...... 1,464,376 48.28 0.031 8.91

TABLE 1B—RETAIL PROGRAM MATCHED SAMPLE CADV >500,000 [2015]

Treatment stocks Control stocks RMO RMO Avg sprd Avg sprd RMO RMO Avg sprd Avg sprd Symbol % BX % Ind ADV Avg price ($) (bps) Symbol % BX % Ind ADV Avg price ($) (bps)

ACAD ...... 3.07 0.06 1,448,310 $37.47 $0.050 13.46 RSPP...... 0.04 0.00 1,491,504 $26.31 $0.037 14.38 AFSI ...... 2.13 0.06 563,733 60.48 0.061 10.07 CNW...... 0.22 0.00 1,314,088 42.22 0.025 6.04 ALK ...... 3.21 0.07 1,387,460 71.24 0.047 6.49 AER...... 0.28 0.00 2,093,683 43.92 0.022 4.96 AVGO ...... 2.24 0.06 3,166,689 125.32 0.077 6.18 DLPH...... 0.20 0.00 2,148,818 80.26 0.033 4.11 BDX ...... 3.08 0.08 1,115,839 143.84 0.065 4.51 SIAL...... 0.10 0.00 1,009,690 138.89 0.015 1.10 CAMP ...... 3.90 0.07 511,751 18.28 0.028 15.24 MIK...... 0.17 0.00 769,285 25.40 0.030 11.79 CELG ...... 3.98 0.08 5,171,549 118.39 0.059 4.96 LYB...... 0.25 0.00 3,973,998 91.43 0.037 4.11 CI ...... 3.06 0.08 2,008,125 134.28 0.073 5.40 MJN...... 0.21 0.00 1,810,637 89.46 0.038 4.21 CLX ...... 3.17 0.08 891,999 113.19 0.048 4.24 DTE...... 0.27 0.01 1,090,860 80.57 0.030 3.67 COST ...... 2.32 0.05 2,150,134 147.70 0.051 3.44 ITW...... 0.16 0.00 1,750,442 92.38 0.025 2.76 CRZO ...... 2.40 0.06 1,330,366 42.86 0.055 13.12 JAH...... 0.35 0.01 2,179,212 51.58 0.021 4.17 DXCM ...... 2.90 0.08 843,867 75.80 0.094 12.13 KMT...... 0.29 0.00 940,811 31.32 0.026 8.52 ENLK ...... 2.54 0.06 771,866 21.79 0.047 22.55 MYGN...... 0.15 0.00 830,603 36.81 0.052 13.95 FSC ...... 2.17 0.06 1,166,959 6.75 0.010 15.32 EXG...... 0.22 0.00 798,806 9.47 0.010 10.76 FSLR ...... 4.17 0.06 2,388,265 52.34 0.034 6.49 CAM...... 0.17 0.00 3,147,765 54.73 0.021 3.96 IBKR ...... 4.22 0.09 565,525 37.70 0.037 9.90 WERN...... 0.31 0.01 706,866 28.13 0.023 8.33 ICLR ...... 2.14 0.08 504,514 69.04 0.108 15.63 SLH...... 0.23 0.00 1,070,428 50.40 0.034 7.00 ISIS ...... 3.14 0.06 2,342,444 59.10 0.065 11.39 DO...... 0.29 0.00 2,342,540 26.18 0.023 8.44 JACK ...... 2.34 0.07 633,677 85.40 0.092 10.94 REG...... 0.10 0.00 580,153 64.77 0.039 6.05 LAZ ...... 3.93 0.10 859,575 50.54 0.053 10.52 HDB...... 0.29 0.01 914,212 59.33 0.034 5.74 MANH ...... 3.77 0.10 539,552 59.23 0.077 12.82 MR...... 0.21 0.00 623,598 27.00 0.025 9.47 MHK ...... 3.17 0.09 689,602 187.12 0.182 9.68 SLG...... 0.12 0.00 702,818 118.81 0.088 7.49 MNST ...... 2.37 0.07 1,228,688 136.21 0.105 7.65 EQT...... 0.18 0.00 1,556,329 75.25 0.055 7.45 NXPI ...... 2.55 0.06 3,865,611 91.55 0.052 5.71 CCI...... 0.30 0.01 2,336,521 83.67 0.025 2.97 NYMT ...... 3.82 0.07 1,196,276 7.05 0.010 14.71 PMCS...... 0.13 0.00 3,442,623 9.05 0.010 12.01 OLED ...... 6.59 0.14 658,991 42.93 0.063 14.81 FET...... 0.17 0.00 1,113,426 17.10 0.022 13.33 PSEC ...... 3.80 0.07 2,747,484 7.81 0.010 12.96 SLM...... 0.06 0.00 3,593,895 8.77 0.010 12.01 Q ...... 3.25 0.08 746,869 68.71 0.048 6.98 OIS...... 0.07 0.00 1,109,903 35.88 0.037 10.89 RMTI ...... 4.62 0.07 726,795 11.47 0.031 27.33 COUP...... 0.05 0.00 689,630 11.56 0.024 20.81 SINA ...... 3.74 0.06 1,351,205 42.49 0.041 9.53 YPF...... 0.28 0.00 1,301,107 23.91 0.024 10.05 SKYW ...... 4.56 0.08 540,128 16.11 0.027 17.05 BEL...... 0.05 0.00 520,858 11.45 0.015 13.50 SMCI ...... 4.34 0.10 623,673 30.57 0.044 14.48 SERV...... 0.09 0.00 1,084,056 34.47 0.027 7.96 SNCR ...... 3.23 0.08 531,811 42.90 0.066 15.60 LTRPA...... 0.04 0.00 570,674 29.05 0.034 11.75 SPLK ...... 3.13 0.07 1,908,069 62.58 0.053 8.53 FTI...... 0.08 0.00 3,385,051 36.74 0.016 4.52 SWKS ...... 7.33 0.13 4,040,788 89.48 0.047 5.24 NOV...... 0.26 0.00 5,929,343 45.85 0.015 3.23 TASR ...... 4.96 0.06 2,066,379 25.79 0.022 8.55 LPI...... 0.34 0.00 3,845,352 11.60 0.013 11.79 TGTX ...... 7.27 0.12 597,807 14.62 0.042 29.22 MEG...... 0.26 0.00 1,314,175 15.20 0.017 11.22 TSCO ...... 4.01 0.10 942,912 87.47 0.063 7.18 FLS...... 0.33 0.00 1,488,778 50.86 0.025 4.96 TUP ...... 3.09 0.07 583,728 61.66 0.054 8.90 KRC...... 0.16 0.00 567,612 69.92 0.051 7.33 UA ...... 5.23 0.09 2,652,795 85.27 0.038 4.39 NBL...... 0.21 0.00 4,862,641 40.75 0.017 4.21 UBNT ...... 3.42 0.06 664,805 31.72 0.048 14.89 ERJ...... 0.13 0.00 979,065 30.32 0.017 5.58 VDSI ...... 5.87 0.08 1,258,250 22.45 0.037 17.11 LQ...... 0.09 0.00 1,511,426 20.36 0.014 6.87 YRCW ...... 3.30 0.06 640,874 16.21 0.028 17.65 STAY...... 0.31 0.01 520,061 18.89 0.028 14.43 ZLTQ ...... 2.71 0.06 598,245 31.73 0.055 17.10 CTLT...... 0.18 0.00 718,026 28.92 0.040 14.02

Avg ..... 3.64 0.08 1,391,454 62.38 0.054 11.59 Avg...... 0.19 0.00 1,698,440 44.98 0.028 8.22

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II. Less Active Stocks (CADV Between process. The pairs, along with values of 50,000 and 500,000) and Post-Period = the matching variables (pre-period), are 2015 shown as follows: For this sample, there were 71 matched pairs that emerged from the

TABLE 2A—RETAIL PROGRAM MATCHED SAMPLE >50,000 AND <500,000 [Sep–Nov 2014]

Treatment stocks Control stocks Avg sprd Avg sprd Avg sprd Avg sprd Symbol ADV Avg price ($) (bps) Symbol ADV Avg price ($) (bps)

AB ...... 257,695 $26.20 $0.052 19.81 TBI...... 218,856 $25.33 $0.047 18.60 ACET ...... 201,593 20.49 0.053 26.13 DFRG...... 213,718 21.87 0.052 23.95 ADC ...... 65,799 29.22 0.072 24.58 ORA...... 66,867 27.55 0.069 25.05 AFOP ...... 354,650 13.00 0.027 20.64 LQDT...... 343,166 12.97 0.025 18.91 ALDW ...... 190,282 18.43 0.050 27.26 NEWP...... 171,264 17.79 0.044 24.54 APU ...... 310,097 45.68 0.046 10.16 WST...... 306,905 46.65 0.050 10.72 ARII ...... 258,499 70.06 0.171 24.73 AXE...... 240,764 85.14 0.162 19.11 AVAV ...... 259,080 29.89 0.052 17.50 MBFI...... 282,952 29.29 0.047 16.12 BEAT ...... 222,665 7.49 0.025 34.28 SPWH...... 227,710 6.86 0.025 35.76 BIP ...... 218,853 39.85 0.051 12.70 ALE...... 229,126 48.74 0.049 10.09 BOI ...... 103,890 16.93 0.030 17.74 MMD...... 101,908 17.98 0.034 18.95 BSTC ...... 51,863 36.16 0.264 73.16 OPB...... 51,453 29.37 0.201 67.86 BTO ...... 57,833 22.56 0.038 17.08 EMF...... 59,607 17.77 0.041 23.11 CLFD ...... 75,466 13.16 0.069 52.54 ZPIN...... 91,340 13.90 0.089 64.59 CLMS ...... 110,782 12.66 0.037 28.97 MHG...... 111,804 13.89 0.033 23.75 CLMT ...... 313,715 27.57 0.063 23.09 MRKT...... 401,812 23.98 0.059 24.76 CMP ...... 259,246 86.79 0.108 12.46 SPB...... 235,834 88.42 0.106 12.00 CODI ...... 217,722 17.82 0.036 20.41 HZO...... 176,311 17.93 0.036 20.33 CSCD ...... 110,524 10.99 0.056 51.94 UNTD...... 127,615 11.83 0.046 38.70 CTT ...... 223,611 11.18 0.022 19.48 FLY...... 205,417 12.99 0.022 17.28 CUI ...... 78,138 7.18 0.045 63.45 CRCM...... 98,265 8.40 0.047 56.22 CVTI ...... 219,409 18.92 0.076 41.35 KANG...... 277,438 18.93 0.074 39.12 DBL ...... 78,900 23.75 0.044 18.48 KIO...... 74,822 17.56 0.043 24.31 EDF ...... 65,045 18.69 0.053 28.45 BCA...... 71,870 19.26 0.055 28.43 EPAM ...... 395,347 43.65 0.063 14.35 HIBB...... 415,031 44.48 0.062 13.90 ETB ...... 60,457 15.78 0.023 14.75 ZF...... 53,909 15.10 0.022 14.95 EZCH ...... 158,140 22.41 0.058 25.94 CMRE...... 173,076 21.06 0.057 23.49 FDUS ...... 68,041 17.12 0.061 35.44 OKSB...... 58,803 16.97 0.066 38.50 FGP ...... 160,267 27.28 0.060 22.18 IBOC...... 172,092 26.03 0.060 23.28 FNHC ...... 271,398 27.32 0.079 28.80 WMS...... 260,316 21.05 0.066 31.32 GLAD ...... 128,184 9.02 0.026 28.43 IRR...... 101,145 9.95 0.026 25.71 GLRE ...... 136,838 32.52 0.059 18.18 STC...... 120,951 32.12 0.061 19.03 GNCMA ...... 193,608 11.39 0.026 22.57 PGI...... 204,861 11.66 0.025 21.87 GOOD ...... 112,763 17.57 0.031 17.67 CPF...... 114,830 18.46 0.031 16.70 GSIG ...... 72,335 12.22 0.049 40.42 XOXO...... 67,052 12.46 0.049 40.03 GSL ...... 66,072 3.78 0.031 85.13 CO...... 68,003 4.99 0.030 59.74 GSVC ...... 139,253 10.14 0.034 33.84 ICD...... 135,638 9.33 0.038 43.28 HII ...... 283,916 103.19 0.102 9.93 TFX...... 243,588 110.37 0.132 12.05 HIIQ ...... 96,520 10.25 0.090 88.44 EDN...... 94,386 11.67 0.104 89.69 HQH ...... 162,147 29.19 0.042 14.44 COLB...... 204,528 26.38 0.045 17.12 HQL ...... 103,968 22.85 0.040 17.48 CTY...... 93,639 23.60 0.036 15.29 IGOV ...... 69,992 99.56 0.179 17.99 KOF...... 62,191 102.39 0.183 17.93 IXYS ...... 141,164 11.00 0.036 32.65 BPI...... 133,490 11.62 0.027 23.09 LDP ...... 70,450 24.46 0.048 19.73 DFP...... 64,754 22.87 0.048 20.82 MAIN ...... 202,931 31.39 0.039 12.33 MLI...... 201,430 30.24 0.039 13.07 NDP ...... 93,945 24.11 0.067 28.08 ABCB...... 105,401 23.68 0.070 29.89 NNBR ...... 157,009 24.33 0.074 30.40 CVT...... 193,466 25.67 0.069 26.96 NTWK ...... 78,357 3.40 0.028 84.86 FCSC...... 68,500 2.82 0.035 122.37 ORBK ...... 134,253 15.36 0.034 22.01 AHP...... 142,241 16.22 0.034 20.99 OXLC ...... 80,719 15.90 0.045 28.60 CTS...... 82,703 17.22 0.044 25.67 PATK ...... 65,356 42.36 0.198 46.71 VRTV...... 64,527 46.69 0.243 52.21 PEO ...... 103,616 27.93 0.050 18.13 LADR...... 97,465 18.89 0.057 30.07 PGP ...... 131,368 23.08 0.086 37.58 EXLS...... 133,974 26.59 0.078 29.49 PICO ...... 71,762 20.61 0.069 33.51 VVI...... 79,994 22.39 0.065 28.97 PLOW ...... 205,124 20.54 0.035 17.05 CSU...... 217,750 22.23 0.035 15.69 RDI ...... 69,021 9.43 0.045 48.22 CNCO...... 75,311 8.59 0.050 59.16 RM ...... 193,431 16.19 0.048 29.46 DL...... 202,788 14.91 0.053 36.12 RNST ...... 67,326 28.53 0.100 35.11 FBRC...... 65,432 26.48 0.125 47.49 SIGI ...... 144,844 24.23 0.046 19.12 CCU...... 144,842 21.38 0.044 20.58 SOCL ...... 122,280 19.37 0.029 15.22 PCN...... 121,440 16.22 0.027 16.49 SPH ...... 166,532 44.68 0.092 20.53 CCMP...... 152,708 44.34 0.100 22.72

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TABLE 2A—RETAIL PROGRAM MATCHED SAMPLE >50,000 AND <500,000—Continued [Sep–Nov 2014]

Treatment stocks Control stocks Avg sprd Avg sprd Avg sprd Avg sprd Symbol ADV Avg price ($) (bps) Symbol ADV Avg price ($) (bps)

STON ...... 153,931 25.88 0.054 21.03 FTGC...... 169,252 29.57 0.057 19.47 TCP ...... 344,465 64.50 0.174 26.97 REX...... 278,567 76.26 0.216 29.37 TSYS ...... 221,965 2.90 0.015 50.11 NWY...... 195,275 3.00 0.014 47.97 TYG ...... 139,676 46.69 0.068 14.62 RLI...... 127,939 46.15 0.073 15.77 TZOO ...... 69,120 14.37 0.053 36.99 TRNO...... 82,554 20.20 0.053 26.35 USAC ...... 112,111 23.46 0.086 36.95 FCB...... 112,509 22.70 0.068 30.05 VCIT ...... 350,756 86.24 0.050 5.74 IT...... 378,372 77.79 0.057 7.36 VICR ...... 102,170 10.56 0.047 46.34 MODN...... 101,103 9.77 0.040 41.39 VNQI ...... 180,925 55.63 0.065 11.80 TTC...... 172,945 60.46 0.069 11.38 WLDN ...... 180,819 13.99 0.061 43.65 CTRE...... 156,847 15.28 0.076 49.33

Avg ...... 156,902 26.92 0.062 29.52 Avg...... 157,105 27.22 0.064 29.67

TABLE 2B—RETAIL PROGRAM MATCHED SAMPLE CADV >50,000 AND <500,000 [2015]

Treatment stocks Control stocks RMO RMO Avg sprd Avg sprd RMO RMO Avg sprd Avg sprd Symbol % BX % Ind ADV Avg price ($) (bps) Symbol % BX % Ind ADV Avg price ($) (bps)

AB ...... 4.85 0.10 283,950 $27.72 0.057 20.57 TBI...... 0.99 0.018 327,753 $25.81 0.043 16.70 ACET ...... 3.36 0.10 194,984 24.10 0.070 29.08 DFRG 0.89 0.020 297,903 17.26 0.040 23.26 ADC ...... 4.02 0.12 111,520 31.60 0.069 21.85 ORA.... 0.36 0.010 155,890 35.60 0.069 19.55 AFOP ...... 4.21 0.12 187,767 17.48 0.047 26.62 LQDT.. 0.66 0.018 295,434 8.67 0.023 26.90 ALDW ...... 6.34 0.14 211,968 21.16 0.083 39.15 NEWP 0.70 0.020 166,386 17.51 0.043 24.82 APU ...... 9.81 0.22 241,899 45.41 0.088 19.29 WST... 0.47 0.011 326,681 56.83 0.078 13.72 ARII ...... 3.00 0.11 237,155 48.93 0.159 32.51 AXE.... 0.34 0.012 209,412 68.79 0.144 21.14 AVAV ...... 4.46 0.13 168,446 25.36 0.058 22.75 MBFI... 0.47 0.010 325,804 32.33 0.042 13.17 BEAT ...... 7.55 0.17 296,257 11.21 0.033 29.78 SPWH 0.44 0.008 267,713 10.37 0.028 27.50 BIP ...... 5.15 0.14 267,495 42.32 0.052 12.31 ALE..... 0.78 0.017 270,205 50.93 0.061 12.01 BOI ...... 11.17 0.11 67,209 15.57 0.035 22.31 MMD... 1.60 0.010 75,235 18.12 0.033 18.56 BSTC ...... 3.99 0.16 62,235 46.54 0.384 84.03 OPB.... 0.42 0.010 105,939 33.95 0.148 45.12 BTO ...... 11.38 0.13 63,715 25.43 0.067 25.78 EMF.... 1.71 0.009 64,025 13.71 0.039 29.43 CLFD ...... 4.73 0.12 62,636 14.74 0.073 49.97 ZPIN... 0.00 0.000 115,886 14.97 0.092 60.98 CLMS ...... 4.28 0.12 88,411 11.46 0.037 32.81 MHG... 0.23 0.007 92,686 12.50 0.030 23.96 CLMT ...... 11.61 0.27 382,050 25.64 0.068 26.69 MRKT 0.48 0.009 489,213 27.57 0.034 12.38 CMP ...... 3.54 0.13 261,808 85.71 0.117 13.76 SPB.... 0.59 0.018 305,016 95.53 0.125 13.39 CODI ...... 6.63 0.11 136,610 16.50 0.036 21.86 HZO.... 0.55 0.014 292,698 20.59 0.046 23.22 CSCD ...... 4.29 0.10 55,917 14.67 0.072 49.56 UNTD 0.68 0.020 139,792 13.95 0.051 37.41 CTT ...... 9.67 0.19 146,655 11.28 0.026 23.10 FLY..... 0.83 0.015 272,441 14.23 0.026 18.44 CUI ...... 11.61 0.14 89,869 5.88 0.033 55.75 CRCM 0.89 0.013 110,412 6.56 0.033 50.20 CVTI ...... 3.22 0.11 228,099 25.99 0.086 33.45 KANG 0.75 0.020 487,020 17.09 0.077 23.08 DBL ...... 14.29 0.16 80,224 24.61 0.054 22.03 KIO..... 0.09 0.001 50,652 15.54 0.045 24.89 EDF ...... 8.88 0.13 75,205 14.49 0.046 31.99 BCA.... 0.19 0.003 69,946 15.52 0.053 35.07 EPAM ...... 4.16 0.12 406,072 68.22 0.118 17.42 HIBB... 0.60 0.015 436,936 42.95 0.064 14.94 ETB ...... 17.61 0.16 67,536 15.99 0.036 22.28 ZF...... 3.71 0.013 51,579 14.40 0.022 15.40 EZCH ...... 4.09 0.11 211,056 20.50 0.045 22.80 CMRE 0.44 0.014 155,171 16.42 0.053 32.86 FDUS ...... 22.17 0.58 55,373 15.15 0.081 53.87 OKSB 0.66 0.018 50,424 17.27 0.083 48.02 FGP ...... 6.51 0.11 308,815 21.93 0.056 25.44 IBOC... 0.68 0.018 198,814 26.18 0.066 25.39 FNHC ...... 3.85 0.13 112,184 27.04 0.106 39.41 WMS... 0.48 0.010 367,087 28.23 0.056 19.77 GLAD ...... 14.23 0.13 123,421 8.40 0.026 30.82 IRR..... 1.22 0.004 84,619 7.47 0.028 36.62 GLRE ...... 8.05 0.16 161,813 27.53 0.051 18.79 STC.... 0.49 0.018 99,664 39.07 0.105 27.08 GNCMA ...... 5.95 0.23 209,254 17.12 0.047 27.32 PGI..... 0.72 0.016 367,369 11.00 0.025 21.53 GOOD ...... 7.01 0.13 111,685 16.47 0.036 22.37 CPF.... 0.88 0.018 279,459 22.42 0.036 15.91 GSIG ...... 7.36 0.19 66,110 13.76 0.063 45.96 XOXO 0.64 0.018 96,502 16.14 0.052 32.59 GSL ...... 13.49 0.12 77,050 4.97 0.039 78.15 CO...... 1.17 0.012 214,376 5.90 0.025 44.07 GSVC ...... 5.92 0.13 106,508 9.66 0.037 38.66 ICD..... 0.79 0.015 59,744 6.65 0.069 105.07 HII ...... 3.59 0.12 320,027 122.86 0.181 14.90 TFX..... 0.29 0.008 274,659 126.57 0.161 12.63 HIIQ ...... 9.88 0.13 54,023 5.90 0.062 107.65 EDN.... 0.01 0.000 71,865 14.27 0.138 97.30 HQH ...... 5.60 0.11 131,438 33.75 0.071 21.24 COLB.. 0.72 0.017 252,185 30.71 0.053 17.17 HQL ...... 7.91 0.11 72,120 26.93 0.063 23.67 CTY.... 0.07 0.000 104,496 24.76 0.036 14.70 IGOV ...... 9.75 0.15 64,028 91.31 0.228 24.92 KOF.... 0.27 0.011 77,285 78.17 0.152 19.49 IXYS ...... 4.77 0.12 158,931 12.29 0.037 30.67 BPI...... 1.00 0.014 104,923 9.01 0.033 37.18 LDP ...... 12.69 0.18 90,233 23.32 0.041 17.84 DFP.... 0.53 0.005 58,638 22.84 0.057 24.84 MAIN ...... 11.52 0.18 250,344 30.21 0.039 13.05 MLI..... 0.76 0.020 169,670 32.97 0.060 18.41 NDP ...... 16.50 0.20 80,808 17.27 0.073 42.22 ABCB.. 0.72 0.019 174,169 27.51 0.062 23.20 NNBR ...... 4.31 0.11 278,757 22.38 0.066 29.71 CVT.... 0.55 0.015 201,431 29.61 0.074 24.99 NTWK ...... 31.44 0.18 59,023 5.45 0.054 100.56 FCSC.. 0.55 0.009 225,454 4.86 0.032 69.06 ORBK ...... 4.99 0.12 200,734 17.83 0.036 20.44 AHP.... 0.55 0.011 187,416 15.38 0.033 21.60 OXLC ...... 7.91 0.14 94,543 13.68 0.062 46.48 CTS.... 0.69 0.017 91,415 18.20 0.055 29.86 PATK ...... 3.49 0.11 103,595 46.14 0.195 42.49 VRTV.. 0.03 0.001 74,483 41.62 0.212 50.66 PEO ...... 8.37 0.12 83,844 21.78 0.060 27.53 LADR.. 0.40 0.008 148,102 16.48 0.040 24.34 PGP ...... 7.64 0.11 59,681 19.06 0.103 54.99 EXLS.. 0.36 0.012 166,403 37.01 0.100 27.04

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TABLE 2B—RETAIL PROGRAM MATCHED SAMPLE CADV >50,000 AND <500,000—Continued [2015]

Treatment stocks Control stocks RMO RMO Avg sprd Avg sprd RMO RMO Avg sprd Avg sprd Symbol % BX % Ind ADV Avg price ($) (bps) Symbol % BX % Ind ADV Avg price ($) (bps)

PICO ...... 8.54 0.24 106,325 14.10 0.052 37.85 VVI...... 0.58 0.019 88,074 28.13 0.073 26.07 PLOW ...... 3.71 0.11 129,709 21.61 0.056 25.71 CSU.... 0.42 0.011 211,558 23.61 0.047 20.09 RDI ...... 8.49 0.24 56,701 13.43 0.062 45.66 CNCO 0.46 0.003 83,811 6.80 0.041 61.30 RM ...... 4.55 0.12 91,913 16.20 0.067 39.49 DL...... 0.28 0.009 126,155 15.56 0.073 47.88 RNST ...... 5.29 0.13 148,755 31.50 0.067 21.21 FBRC.. 0.33 0.009 50,866 22.22 0.130 59.07 SIGI ...... 4.57 0.12 212,634 30.13 0.053 17.68 CCU.... 0.34 0.007 138,285 21.45 0.048 22.78 SOCL ...... 10.32 0.24 88,315 19.22 0.051 26.48 PCN.... 3.92 0.018 108,881 14.36 0.022 15.23 SPH ...... 6.54 0.15 208,257 38.56 0.099 25.93 CCMP 0.52 0.018 145,234 45.64 0.111 24.49 STON ...... 4.23 0.13 160,946 28.62 0.092 32.56 FTGC.. 0.23 0.003 134,541 23.49 0.053 22.65 TCP ...... 4.12 0.14 171,426 58.19 0.292 52.28 REX.... 0.40 0.014 162,351 57.40 0.192 33.82 TSYS ...... 3.48 0.11 375,242 3.64 0.014 40.50 NWY... 1.34 0.009 94,970 2.45 0.017 71.30 TYG ...... 8.09 0.17 279,394 36.74 0.075 21.32 RLI...... 0.55 0.020 139,447 53.38 0.113 21.01 TZOO ...... 5.83 0.15 124,874 10.07 0.042 42.08 TRNO 0.37 0.010 178,560 21.55 0.048 22.62 USAC ...... 9.30 0.20 130,583 18.40 0.106 57.48 FCB.... 0.77 0.019 217,494 30.48 0.061 20.50 VCIT ...... 4.89 0.12 451,992 85.91 0.053 6.15 IT...... 0.61 0.016 406,922 85.95 0.081 9.42 VICR ...... 7.09 0.18 56,688 11.89 0.070 62.03 MODN 1.11 0.019 91,268 11.19 0.041 36.74 VNQI ...... 13.04 0.33 374,913 54.84 0.055 10.17 TTC.... 0.63 0.019 265,760 69.75 0.082 11.78 WLDN ...... 9.82 0.23 77,911 12.01 0.064 54.70 CTRE.. 0.12 0.003 227,593 12.27 0.042 34.08

Avg ...... 7.81 0.15 160,108 26.98 0.075 34.20 Avg..... 0.68 0.01 183,525 27.80 0.066 29.96

III. Active Stocks (CADV > 500,000) process. The pairs, along with values of and Post-Period = 2017–2018 the matching variables (pre-period), are For this sample, there were 41 shown as follows: matched pairs that emerged from the

TABLE 3A—RETAIL PROGRAM MATCHED SAMPLE CADV >500,000 [Sep–Nov 2014]

Treatment stocks Control stocks Avg sprd Avg sprd Avg sprd Avg sprd Symbol ADV Avg price ($) (bps) Symbol ADV Avg price ($) (bps)

AA ...... 19,848,728 $16.29 $0.010 6.17 ITUB...... 15,391,611 $15.06 $0.010 6.70 AG ...... 1,868,134 7.10 0.010 15.21 CUZ...... 1,707,347 12.49 0.010 8.27 AINV ...... 1,804,765 8.30 0.010 12.24 BVN...... 1,783,634 11.21 0.011 10.10 AMBA ...... 2,103,392 42.35 0.062 14.79 PLD...... 2,692,357 39.81 0.011 2.90 APO ...... 1,356,506 23.15 0.021 9.23 BRX...... 1,278,575 23.37 0.017 7.12 AXAS ...... 2,961,152 4.58 0.010 22.80 CIG...... 5,661,208 6.35 0.010 16.10 BCRX ...... 1,244,583 11.27 0.021 18.89 CLI...... 899,677 19.58 0.016 8.08 BUD ...... 1,367,716 110.28 0.030 2.76 TOT...... 1,409,344 60.36 0.023 3.83 BX ...... 4,891,093 31.38 0.014 4.46 COG...... 6,157,960 32.25 0.012 3.76 CLNE ...... 1,664,000 7.39 0.012 16.09 DRH...... 1,577,838 13.54 0.010 7.59 CMCM ...... 892,660 20.49 0.057 27.49 MDU...... 1,080,599 27.56 0.019 6.71 CSIQ ...... 3,978,563 32.55 0.034 10.54 CNQ...... 4,352,711 37.08 0.012 3.35 DO ...... 2,028,802 37.29 0.026 6.93 HCP...... 2,538,605 42.25 0.012 2.73 DSX ...... 726,289 8.85 0.012 14.11 FNB...... 879,836 12.44 0.010 8.36 F ...... 34,678,316 15.13 0.010 6.65 FOXA...... 13,032,567 34.41 0.010 2.95 FEYE ...... 8,234,032 31.44 0.022 7.22 HST...... 6,716,845 22.14 0.010 4.62 FNSR ...... 2,320,485 16.88 0.012 7.33 TPH...... 2,159,710 13.94 0.012 8.68 GME ...... 2,808,482 41.86 0.018 4.25 SNY...... 2,182,012 51.81 0.018 3.45 GNW ...... 9,907,097 12.24 0.010 8.49 SAN...... 10,583,634 9.09 0.010 11.05 GRPN ...... 16,296,242 6.85 0.010 14.75 SLM...... 4,532,083 9.17 0.010 11.09 HAIN ...... 566,626 103.28 0.083 8.09 SLG...... 788,370 109.07 0.057 5.28 HALO ...... 1,250,394 9.12 0.011 12.49 HTA...... 1,419,408 12.29 0.010 8.48 IRBT ...... 712,902 33.02 0.045 13.54 LHO...... 859,601 36.72 0.018 5.05 JWN ...... 1,472,964 70.84 0.025 3.49 ETR...... 1,607,873 79.55 0.025 3.10 LSCC ...... 1,168,221 6.88 0.011 15.53 RPAI...... 1,047,067 15.36 0.011 6.95 LYG ...... 3,517,062 4.88 0.010 20.51 GGB...... 7,013,600 4.81 0.010 21.01 MMP ...... 839,403 82.37 0.094 11.51 AVB...... 926,288 150.78 0.072 4.79 NOK ...... 18,264,234 8.24 0.010 12.15 BBD...... 11,667,774 15.32 0.010 6.59 O ...... 2,027,017 44.15 0.014 3.16 NI...... 2,220,002 40.72 0.013 3.30 OHI ...... 1,490,422 36.76 0.013 3.43 AIV...... 1,214,436 34.32 0.013 3.71 RCII ...... 819,241 30.46 0.024 7.91 RLJ...... 735,277 30.37 0.016 5.38 SINA ...... 1,550,979 41.43 0.036 8.79 IBN...... 1,251,526 54.07 0.024 4.51 SNE ...... 3,075,849 18.86 0.010 5.40 DRE...... 2,595,753 18.25 0.010 5.62 SPWR ...... 2,347,451 32.45 0.025 7.78 FTI...... 2,360,200 54.47 0.024 4.39 STX ...... 2,989,069 59.38 0.022 3.76 NBL...... 2,781,689 61.96 0.025 4.08

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TABLE 3A—RETAIL PROGRAM MATCHED SAMPLE CADV >500,000—Continued [Sep–Nov 2014]

Treatment stocks Control stocks Avg sprd Avg sprd Avg sprd Avg sprd Symbol ADV Avg price ($) (bps) Symbol ADV Avg price ($) (bps)

SYNA ...... 1,066,414 71.57 0.092 12.64 CPT...... 642,738 72.84 0.031 4.31 TERP ...... 626,425 28.72 0.080 27.81 HR...... 601,104 25.09 0.015 6.18 UA ...... 2,678,432 67.54 0.032 4.80 EQR...... 2,303,635 66.21 0.018 2.77 ULTA ...... 1,061,441 116.53 0.092 7.86 BXP...... 890,862 121.67 0.066 5.45 WPC ...... 525,756 66.30 0.034 5.07 KRC...... 535,203 63.70 0.037 5.78 X ...... 8,326,606 37.65 0.015 4.14 EXC...... 6,409,198 34.91 0.011 3.02

Avg ...... 4,325,804 35.51 0.029 10.49 Avg...... 3,329,018 38.94 0.019 6.27

TABLE 3B—RETAIL PROGRAM MATCHED SAMPLE CADV >500,000 [2017—2018]

Treatment stocks Control stocks Avg Avg Avg Avg Symbol RMO RMO ADV Avg sprd sprd Symbol RMO RMO ADV Avg sprd sprd % BX % Ind price ($) (bps) % BX % Ind price ($) (bps)

AA ...... 1.30 0.04 4,075,295 $41.33 $0.022 5.27 ITUB...... 0.04 0.001 12,139,536 $12.55 $0.010 8.11 AG ...... 1.71 0.04 3,361,556 7.04 0.010 14.70 CUZ...... 0.02 0.001 3,842,736 8.86 0.010 11.51 AINV ...... 1.93 0.06 865,116 6.18 0.011 17.22 BVN...... 0.02 0.001 1,343,091 13.68 0.012 8.61 AMBA ...... 3.68 0.10 1,006,023 48.50 0.062 12.93 PLD...... 0.09 0.004 2,672,000 61.33 0.018 2.88 APO ...... 1.38 0.04 1,098,761 29.62 0.030 9.93 BRX...... 0.07 0.003 3,076,634 18.10 0.011 5.96 AXAS ...... 1.33 0.04 1,492,938 2.15 0.010 48.85 CIG...... 0.11 0.003 4,402,939 2.48 0.010 41.72 BCRX ...... 1.86 0.06 1,176,068 6.02 0.013 21.42 CLI...... 0.07 0.003 593,039 22.59 0.019 8.24 BUD ...... 1.22 0.04 1,764,121 105.16 0.032 3.12 TOT...... 0.09 0.002 1,764,192 55.96 0.012 2.08 BX ...... 2.61 0.05 4,550,664 32.76 0.013 3.94 COG...... 0.10 0.003 6,100,394 24.46 0.011 4.34 CLNE ...... 1.31 0.04 1,346,149 2.36 0.010 45.01 DRH...... 0.01 0.000 2,300,351 11.21 0.010 9.17 CMCM ...... 1.85 0.05 1,059,402 10.70 0.023 21.69 MDU...... 0.06 0.003 842,527 27.03 0.014 5.05 CSIQ ...... 4.27 0.13 1,025,349 14.98 0.021 13.76 CNQ...... 0.11 0.003 2,808,082 32.12 0.010 3.28 DO ...... 1.05 0.04 2,326,499 15.80 0.013 8.14 HCP...... 0.08 0.003 3,666,607 27.46 0.011 3.94 DSX ...... 2.44 0.06 589,433 4.02 0.012 29.70 FNB...... 0.09 0.004 2,706,799 13.63 0.010 7.60 F ...... 1.77 0.05 40,375,950 11.11 0.010 9.11 FOXA...... 0.13 0.003 10,396,614 35.77 0.010 3.02 FEYE ...... 1.96 0.05 4,768,737 15.54 0.010 6.81 HST...... 0.03 0.001 6,942,056 19.29 0.010 5.28 FNSR ...... 2.49 0.06 3,459,073 21.85 0.015 6.74 TPH...... 0.08 0.003 1,937,468 14.46 0.011 7.61 GME ...... 1.35 0.04 3,433,058 18.21 0.011 6.34 SNY...... 0.05 0.001 1,609,403 44.08 0.011 2.51 GNW ...... 1.76 0.04 4,516,565 3.75 0.010 27.39 SAN...... 0.10 0.002 6,841,859 6.04 0.010 16.83 GRPN ...... 1.16 0.04 8,719,062 4.22 0.010 24.46 SLM...... 0.08 0.003 3,172,237 11.18 0.010 9.37 HAIN ...... 1.33 0.04 1,583,844 33.81 0.023 6.98 SLG...... 0.05 0.002 803,572 100.37 0.074 7.37 HALO ...... 1.60 0.05 1,125,888 16.21 0.021 12.87 HTA...... 0.06 0.003 1,542,950 28.57 0.013 4.41 IRBT ...... 2.76 0.07 906,753 79.44 0.114 14.03 LHO...... 0.07 0.003 1,633,753 30.43 0.015 5.08 JWN ...... 1.13 0.04 2,630,160 49.12 0.029 5.96 ETR...... 0.08 0.003 1,375,231 79.52 0.032 3.97 LSCC ...... 1.27 0.04 983,954 6.48 0.011 16.82 RPAI...... 0.05 0.002 1,794,420 12.83 0.010 8.10 LYG ...... 1.86 0.06 6,256,365 3.44 0.010 29.36 GGB...... 0.09 0.002 9,702,367 3.88 0.010 26.36 MMP ...... 1.37 0.05 830,180 69.21 0.060 8.74 AVB...... 0.08 0.003 680,029 178.52 0.138 7.73 NOK ...... 3.01 0.08 14,759,305 5.62 0.010 17.95 BBD...... 0.03 0.001 11,438,559 9.63 0.010 10.66 O ...... 1.09 0.04 1,910,582 56.53 0.021 3.69 NI...... 0.08 0.003 3,013,746 25.14 0.011 4.20 OHI ...... 1.17 0.04 2,090,596 30.98 0.012 3.77 AIV...... 0.04 0.002 1,089,725 43.30 0.021 4.90 RCII ...... 1.90 0.07 1,785,282 11.67 0.012 10.61 RLJ...... 0.04 0.002 1,419,592 21.45 0.012 5.44 SINA ...... 2.01 0.07 980,389 88.41 0.105 11.94 IBN...... 0.07 0.002 7,497,988 9.05 0.010 11.20 SNE ...... 1.21 0.04 983,669 44.35 0.016 3.55 DRE...... 0.02 0.001 2,533,025 27.60 0.011 3.89 SPWR ...... 3.72 0.10 2,639,031 7.70 0.011 13.99 FTI...... 0.11 0.003 3,833,234 29.62 0.010 3.52 STX ...... 1.33 0.04 4,569,307 45.84 0.017 3.69 NBL...... 0.10 0.003 5,080,490 30.49 0.011 3.66 SYNA ...... 1.26 0.04 798,985 45.96 0.064 14.12 CPT...... 0.07 0.003 589,346 87.99 0.068 7.76 TERP ...... 0.92 0.04 582,896 11.83 0.015 12.75 HR...... 0.05 0.002 835,377 30.63 0.017 5.58 UA ...... 2.66 0.06 4,079,322 17.47 0.011 6.29 EQR...... 0.05 0.002 1,868,111 64.58 0.023 3.62 ULTA ...... 1.29 0.04 1,064,638 251.09 0.229 9.18 BXP...... 0.06 0.003 731,983 124.60 0.097 7.86 WPC ...... 1.41 0.05 521,446 65.49 0.049 7.57 KRC...... 0.04 0.002 552,027 72.00 0.060 8.31 X ...... 2.61 0.04 13,020,309 30.64 0.012 4.06 EXC...... 0.05 0.002 5,496,241 39.40 0.010 2.66

Avg ...... 1.84 0.05 3,783,237 33.48 0.029 13.52 Avg...... 0.07 0.00 3,479,764 36.88 0.022 7.64

IV. Less Active Stocks (CADV Between process. The pairs, along with values of 50,000 and 500,000) and Post-Period = the matching variables (pre-period), are 2017–2018 shown as follows: For this sample, there were 49 matched pairs that emerged from the

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TABLE 4A—RETAIL PROGRAM MATCHED SAMPLE >50,000 AND <500,000 CADV [Sep–Nov 2014]

Treatment stocks Control stocks Avg sprd Avg sprd Avg sprd Avg sprd Symbol ADV Avg price ($) (bps) Symbol ADV Avg price ($) (bps)

AI ...... 380,780 $26.88 $0.020 7.45 DSL...... 361,600 $21.43 $0.022 10.36 ANIK ...... 240,282 39.38 0.089 22.92 WABC...... 223,670 48.09 0.083 17.22 APU ...... 310,097 45.68 0.046 10.16 WST...... 306,905 46.65 0.050 10.72 AUDC ...... 153,063 4.91 0.022 45.54 RVT...... 191,392 14.93 0.020 13.56 BLX ...... 130,799 32.10 0.060 18.85 STC...... 120,951 32.12 0.061 19.03 COHU ...... 104,702 11.53 0.044 38.27 CSGS...... 157,547 26.18 0.047 18.17 DBL ...... 78,900 23.75 0.044 18.48 TRNO...... 82,554 20.20 0.053 26.35 DMB ...... 55,155 11.99 0.023 19.20 CHT...... 77,541 30.23 0.032 10.48 DSM ...... 126,484 8.06 0.014 16.91 FRA...... 131,349 13.84 0.013 9.68 FDUS ...... 68,041 17.12 0.061 35.44 LION...... 76,072 14.50 0.082 57.41 FRSH ...... 132,657 9.45 0.068 71.68 CBU...... 127,820 35.74 0.063 17.62 GAIN ...... 110,718 7.34 0.015 20.05 EOS...... 144,318 13.72 0.015 11.22 GASS ...... 155,935 8.44 0.028 33.44 CENTA...... 144,524 8.25 0.032 39.17 GBDC ...... 188,201 16.89 0.029 16.92 NCI...... 176,055 14.60 0.028 19.24 GLAD ...... 128,184 9.02 0.026 28.43 TI...... 159,450 11.04 0.020 17.79 GMLP ...... 163,282 35.15 0.146 41.52 UMBF...... 157,424 56.89 0.146 25.85 GOOD ...... 112,763 17.57 0.031 17.67 CPF...... 114,830 18.46 0.031 16.70 GSVC ...... 139,253 10.14 0.034 33.84 NBHC...... 160,159 19.39 0.035 18.25 HTGC ...... 341,319 15.10 0.019 12.93 NFBK...... 271,599 13.78 0.019 13.77 IEP ...... 129,299 105.09 0.255 24.34 LANC...... 127,008 88.16 0.207 23.53 KCAP ...... 302,537 7.93 0.016 19.82 ETJ...... 306,544 11.54 0.015 13.14 LRAD ...... 234,963 2.87 0.020 71.58 MFG...... 335,904 3.60 0.010 28.25 MAGS ...... 352,530 4.58 0.052 114.83 RTRX...... 445,328 10.54 0.043 40.96 MAIN ...... 202,931 31.39 0.039 12.33 MLI...... 201,430 30.24 0.039 13.07 MUA ...... 52,623 13.29 0.023 17.06 GHY...... 173,681 16.48 0.020 12.16 MUE ...... 65,631 13.24 0.017 13.04 ISF...... 67,500 25.39 0.019 7.65 NANO ...... 111,903 14.88 0.051 34.61 MG...... 120,243 18.37 0.049 26.63 NDP ...... 93,945 24.11 0.067 28.08 THR...... 115,353 24.59 0.057 23.42 NEP ...... 188,649 34.86 0.185 53.54 PLXS...... 171,711 38.76 0.084 21.71 OIA ...... 93,055 6.77 0.013 19.36 AWP...... 257,107 6.89 0.011 15.68 PBT ...... 145,410 12.85 0.030 23.84 DAKT...... 171,820 12.89 0.031 24.21 PCK ...... 59,924 9.45 0.024 25.50 ETV...... 207,431 14.89 0.019 12.73 PFLT ...... 67,807 14.02 0.045 31.98 DGRW...... 66,466 29.59 0.043 14.58 PFMT ...... 311,460 8.16 0.025 30.92 FSS...... 280,570 14.16 0.024 16.88 PGP ...... 131,368 23.08 0.086 37.58 EXLS...... 133,974 26.59 0.078 29.49 PMF ...... 58,501 14.07 0.025 17.56 SKYY...... 66,651 27.35 0.035 12.85 PMX ...... 73,074 10.85 0.020 18.60 CII...... 136,940 14.78 0.016 11.17 SDLP ...... 456,457 28.00 0.075 26.78 FUL...... 468,387 42.02 0.049 11.58 SHLO ...... 50,103 16.93 0.107 63.20 UFCS...... 56,599 29.25 0.125 42.48 SJT ...... 96,558 18.27 0.062 34.17 GRAM...... 92,291 14.22 0.057 40.66 SLRC ...... 214,437 18.95 0.025 13.39 PFS...... 201,034 17.16 0.023 13.22 SPH ...... 166,532 44.68 0.092 20.53 CNMD...... 162,637 40.04 0.086 21.35 TCPC ...... 332,634 16.60 0.028 16.75 NFJ...... 271,825 17.73 0.027 15.41 TOUR ...... 318,343 17.36 0.073 42.30 SYKE...... 253,700 21.34 0.040 18.74 TSLX ...... 138,306 16.95 0.043 25.68 FBC...... 136,538 16.29 0.038 23.25 VOC ...... 132,226 11.27 0.041 38.08 CCU...... 144,842 21.38 0.044 20.58 WBK ...... 174,452 29.49 0.034 11.61 IFGL...... 147,189 30.54 0.034 11.29 WLDN ...... 180,819 13.99 0.061 43.65 FTGC...... 169,252 29.57 0.057 19.47 WSR ...... 98,234 14.57 0.031 21.33 SOCL...... 122,280 19.37 0.029 15.22

Avg ...... 166,435 19.37 0.051 29.83 Avg...... 179,551 23.95 0.046 19.88

TABLE 4B—RETAIL PROGRAM MATCHED SAMPLE CADV >50,000 AND <500,000 [2017–2018]

Treatment stocks Control stocks RMO RMO Avg Sprd Avg Sprd RMO RMO Avg Sprd Avg Sprd Symbol % BX % Ind ADV Avg Price ($) (bps) Symbol % BX % Ind ADV Avg Price ($) (bps)

AI ...... 2.45 0.06 458,637 $11.93 $0.012 9.87 DSL...... 0.85 0.011 373,997 $20.14 $0.015 7.60 ANIK ...... 2.03 0.06 123,465 46.77 0.191 40.89 WABC...... 0.33 0.010 100,762 57.73 0.231 40.12 APU ...... 3.36 0.08 237,312 42.89 0.077 17.90 WST...... 0.29 0.010 367,026 96.31 0.129 13.20 AUDC ...... 1.72 0.06 117,591 7.79 0.032 42.65 RVT...... 0.55 0.008 288,150 15.18 0.017 11.22 BLX ...... 2.13 0.08 130,009 26.09 0.056 21.57 STC...... 0.16 0.006 157,476 42.53 0.090 21.17 COHU ...... 2.33 0.09 284,253 20.78 0.049 24.11 CSGS...... 0.10 0.004 197,396 40.89 0.083 20.47 DBL ...... 4.52 0.07 74,432 22.32 0.049 21.63 TRNO...... 0.11 0.005 345,017 34.66 0.034 10.00 DMB ...... 9.72 0.07 58,671 12.71 0.021 16.46 CHT...... 0.15 0.007 148,554 35.08 0.025 7.01 DSM ...... 5.07 0.07 113,155 7.98 0.013 16.39 FRA...... 0.54 0.010 163,372 14.05 0.013 9.26

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TABLE 4B—RETAIL PROGRAM MATCHED SAMPLE CADV >50,000 AND <500,000—Continued [2017–2018]

Treatment stocks Control stocks RMO RMO Avg Sprd Avg Sprd RMO RMO Avg Sprd Avg Sprd Symbol % BX % Ind ADV Avg Price ($) (bps) Symbol % BX % Ind ADV Avg Price ($) (bps)

FDUS ...... 3.45 0.09 97,448 15.30 0.044 28.40 LION...... 0.26 0.011 109,864 23.17 0.074 32.01 FRSH ...... 3.36 0.08 110,611 5.09 0.044 86.28 CBU...... 0.23 0.007 243,704 57.33 0.103 18.12 GAIN ...... 3.01 0.08 172,450 10.23 0.019 18.48 EOS...... 0.66 0.009 131,800 15.50 0.022 14.38 GASS ...... 4.18 0.06 57,778 3.70 0.035 94.13 CENTA...... 0.16 0.007 234,333 34.78 0.075 21.63 GBDC ...... 3.77 0.10 211,753 18.77 0.023 12.44 NCI...... 0.22 0.009 296,999 21.09 0.027 13.06 GLAD ...... 2.68 0.07 134,680 9.33 0.020 21.33 TI...... 0.18 0.003 149,165 8.43 0.020 23.55 GMLP ...... 2.77 0.08 357,537 19.24 0.039 20.40 UMBF...... 0.32 0.009 222,813 73.14 0.177 24.31 GOOD ...... 2.19 0.09 152,848 19.98 0.037 18.77 CPF...... 0.21 0.008 139,636 29.65 0.060 20.33 GSVC ...... 6.04 0.15 137,911 6.04 0.030 51.88 NBHC...... 0.13 0.005 139,900 34.36 0.070 20.52 HTGC ...... 3.95 0.10 476,844 13.11 0.012 9.55 NFBK...... 0.20 0.008 99,333 16.56 0.047 28.86 IEP ...... 8.34 0.13 100,497 59.83 0.232 38.77 LANC...... 0.33 0.010 105,903 134.53 0.506 37.19 KCAP ...... 11.65 0.18 117,403 3.41 0.017 49.08 ETJ...... 0.43 0.008 276,325 9.37 0.013 13.59 LRAD ...... 11.15 0.13 60,046 2.17 0.032 152.85 MFG...... 0.13 0.005 367,028 3.57 0.010 28.38 MAGS ...... 6.89 0.12 59,713 5.48 0.055 103.25 RTRX...... 0.13 0.005 334,303 23.33 0.066 28.37 MAIN ...... 4.44 0.13 245,561 38.49 0.032 8.32 MLI...... 0.29 0.010 207,388 31.27 0.053 17.02 MUA ...... 12.42 0.07 55,118 14.03 0.027 19.28 GHY...... 0.50 0.011 169,952 14.32 0.013 9.08 MUE ...... 5.46 0.06 63,559 12.96 0.020 15.65 ISF...... 1.87 0.011 60,764 25.70 0.024 9.32 NANO ...... 3.12 0.11 251,457 29.99 0.067 22.73 MG...... 0.12 0.006 71,628 20.70 0.082 40.44 NDP ...... 4.23 0.07 75,449 13.12 0.051 39.75 THR...... 0.17 0.008 123,398 21.67 0.057 25.99 NEP ...... 3.02 0.09 255,681 40.17 0.093 23.05 PLXS...... 0.30 0.010 174,481 57.60 0.125 21.74 OIA ...... 16.93 0.10 73,578 7.67 0.017 22.76 AWP...... 0.69 0.012 402,327 6.15 0.011 17.48 PBT ...... 4.83 0.10 100,106 8.91 0.033 37.49 DAKT...... 0.20 0.010 173,399 9.13 0.023 25.10 PCK ...... 18.47 0.07 71,701 9.15 0.021 23.21 ETV...... 0.49 0.008 205,388 15.31 0.016 10.33 PFLT ...... 3.58 0.11 197,419 13.65 0.020 14.98 DGRW...... 0.09 0.002 226,271 39.48 0.016 3.99 PFMT ...... 8.21 0.07 68,953 2.11 0.054 265.29 FSS...... 0.24 0.008 271,757 20.34 0.032 15.75 PGP ...... 6.66 0.07 65,178 15.61 0.071 46.24 EXLS...... 0.26 0.009 149,278 56.40 0.142 24.91 PMF ...... 8.46 0.07 79,512 13.26 0.024 18.20 SKYY...... 0.42 0.008 219,272 46.15 0.032 7.24 PMX ...... 14.86 0.06 65,449 11.50 0.019 16.19 CII...... 0.61 0.010 130,256 15.59 0.018 11.60 SDLP ...... 6.34 0.09 377,760 3.42 0.017 50.24 FUL...... 0.31 0.012 362,459 51.90 0.062 12.11 SHLO ...... 1.77 0.06 135,927 9.68 0.058 60.99 UFCS...... 0.36 0.012 76,492 47.53 0.233 48.58 SJT ...... 5.54 0.10 186,679 6.96 0.028 40.45 GRAM...... 0.41 0.008 236,863 3.44 0.044 134.58 SLRC ...... 2.38 0.09 103,705 21.28 0.040 18.90 PFS...... 0.18 0.007 184,245 25.94 0.043 16.64 SPH ...... 5.60 0.15 279,196 24.42 0.046 18.83 CNMD...... 0.36 0.012 154,890 58.57 0.184 31.64 TCPC ...... 4.35 0.11 227,052 15.54 0.019 11.89 NFJ...... 0.46 0.007 264,566 12.95 0.014 10.78 TOUR ...... 1.30 0.07 200,307 7.59 0.031 43.03 SYKE...... 0.17 0.007 155,555 29.58 0.075 25.34 TSLX ...... 2.64 0.08 244,727 19.71 0.022 11.23 FBC...... 0.23 0.008 249,281 32.55 0.052 16.08 VOC ...... 12.82 0.11 56,733 4.58 0.042 92.38 CCU...... 0.17 0.008 182,729 26.46 0.053 19.89 WBK ...... 1.96 0.07 265,250 23.11 0.017 7.36 IFGL...... 0.04 0.001 110,807 28.91 0.028 9.67 WLDN ...... 3.13 0.10 91,458 29.62 0.155 52.79 FTGC...... 0.35 0.007 92,367 20.22 0.031 15.42 WSR ...... 1.66 0.07 363,836 12.96 0.019 15.03 SOCL...... 0.55 0.011 63,186 31.00 0.075 24.28

Avg ..... 5.53 0.09 164,212 16.33 0.045 39.05 Avg...... 0.34 0.008 198,201 32.45 0.070 21.82

2. Economic Impact of the BX RPI When comparing average price Similar to regular, liquidity-taking Program on Execution Quality improvement for RMO and non-RMO orders on BX, the Program offers executions for a subset of 100 stocks inverted pricing where RMO orders To assess the execution quality of the with the largest number of RMO shares receive a rebate (on top of the price Program, BX focused on symbol-day executed, the price improvement seen improvement they receive) when combinations when during market in RMO and non-RMO trades is executing against RPI liquidity, while hours: (i) An RMO execution occurred comparable over the life of the Program. there is a fee associated with RPI orders on BX, (ii) a non-RMO execution When volume weighting the average which post non-displayed, price- occurred on BX, and (iii) a tape-eligible price improvement by RMO volume to improving liquidity. RPI orders are trade occurred on BX. Symbol day emphasize those stock/day charged $0.0025 per share. Retail Orders combinations are aggregated to overall combinations with the highest volume currently receive a rebate of $0.0021 per daily statistics by either a simple traded in RMO, average price share when executing against RPI average or by volume weighting by RMO improvement on BX for both RMO and liquidity, a rebate of $0.0000 per share executed volume during market hours.25 non-RMO trades appear generally when executing against other hidden, This results in the number and identity comparable over time, with RMO price price-improvising liquidity, and a rebate of symbols captured in each daily improvement generally beating non- of $0.0017 per share when executing average changing from day to day. Using RMO. Note that this price improvement against other displayed liquidity on the this data, the Exchange examined measure does not take rebates into BX book. whether the economic outcomes for account. 3. Are Only Eligible Participants RMO trades differs from non-RMO In the subset of active RMO symbols, Accessing Program Liquidity trades and/or all trades. RMO volume-weighted effective and Only RMOs that have been approved realized spreads for RMO and all by BX can enter RMO orders that access 25 Both RMO and non-RMO execution quality executions, which includes RMO the Program liquidity, and the System values are weighted by RMO volume and a very small number of extreme outlier symbol-day stats executions, are generally comparable does not allow non-RMO orders to have been removed from the analysis. throughout the duration of the Program. access RPI providing orders. The System

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does not allow non-RMO orders to retail investors as the Program has additional investor interest in trading access RPI providing orders. BX Rule continued to grow over time. securities, thereby promoting capital 4780(c) enables BX at its sole discretion On average, an RMO execution formation. to disqualify RMO members that submit continues to get more price The Program also promotes orders that fail to meet any of the improvement than the minimum $0.001 competition for retail order flow among requirements of the rule. price improvement required of an RPI execution venues, and this benefits liquidity-providing order in the retail investors by creating additional 4. Is the Program Attracting Retail Program, and over time the price Participation price improvement opportunities for improvement seen on BX in non-RMO marketable retail order flow, most of The Program has attracted some retail orders does not appear to be negatively which is currently executed in the OTC orders to the Exchange and participation impacted by the introduction of the markets without ever reaching a public in the Program has continued to Program. exchange. The Exchange believes that it increase over time. The Exchange 5. Net Benefits of the Program on has achieved its goal of attracting retail believes that the Program provided Participants order flow to BX, and has resulted in tangible price improvement and The Exchange believes that the price improvement to retail investors transparency to retail investors through Program through retail order through a competitive pricing process. a competitive pricing process. segmentation does create greater retail The data also demonstrates that the Brokers route retail orders to a wide order flow competition and thereby Program has continued to grow over range of different trading systems. The increases the amount of this flow to BX. time and the Exchange has not detected Program offers a transparent and well- This helps to ensure that retail investors any negative impact to market quality or regulated option providing competition benefit from the price improvement that to retail investors. and price improvement. BX believes liquidity providers are willing to The price improvement chart below that it has achieved its goal of attracting provide. The Program promotes demonstrates retail firms have received retail order flow to BX and, as stated competition for retail order flow by price improvement through their use of above, it has resulted in a significant allowing Exchange members to submit the Program that they otherwise may not price improvement to retail investors RPI Orders to interact with Retail have received. This is a net benefit to through a competitive pricing process. Orders. Such competition promotes the retail firms as well as the firms who The Exchange also has not detected any efficiency by facilitating the price are able to compete to interact with the negative impact to market quality or to discovery process and generating retail firms.

6. Overall Success in Achieving small relative to total consolidated The Program provides additional Intended Benefits volume, has achieved its goals of competition to the handling of retail attracting retail order flow and orders. The added opportunity for price The Program has demonstrated the providing those orders with price improvement provides pressure on effectiveness of a transparent, on- improvement totaling tens of thousands other more established venues to exchange retail order price of dollars each month. increase the price improvement that improvement functionality, and while they provide. By doing this, the

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Exchange believes that the Program may better price that liquidity providers are of the purposes of the Act, as amended. have a greater positive effect than the willing to give their orders. During the BX believes that making the Program market share would directly indicate. pilot period, BX has provided data and permanent would continue to enhance analysis to the Commission, and this competition for retail order flow among Can the Program Be Improved data and analysis, as well as the further execution venues and contribute to the The Program provides a transparent, analysis in this filing, shows that the public price discovery process. well-regulated, and competitive venue Program has operated as intended and is The Exchange believes that the data for retail orders to receive price consistent with the Act. The data and supplied to the Commission and improvement. The size of the Program is analysis provided to the Commission experience gained over the life of the somewhat limited by the rules that staff demonstrates that the Program pilot have demonstrated that the prevent BX from matching features provided tangible price improvement to Program creates price improvement offered by non-exchange trading venues. retail investors through a competitive opportunities for retail orders that are Nonetheless, the Exchange believes the pricing process unavailable in non- equal to what would be provided under Program is worthwhile and it will exchange venues and otherwise had an OTC internalization arrangements, continue to look for ways to further insignificant impact on the marketplace. thereby benefiting retail investors and innovate and improve the Program. The Making the Program permanent would increasing competition between Exchange believes that making the pilot encourage the additional utilization of, execution venues. BX also believes that permanent is appropriate and through and interaction with, the Exchange and making the Program permanent will this filing seeks to make permanent the provide retail customers with an promote competition between execution current operation of the Program. additional venue for price discovery, venues operating their own retail liquidity, competitive quotes, and price Conclusion liquidity programs. Such competition improvement. will lead to innovation within the In conclusion, the Exchange notes the Additionally, the Exchange believes market, thereby increasing the quality of Program provided opportunities for the proposed rule change is designed to the national market system. retail investors to get significant price facilitate transactions in securities and Additionally, the Exchange notes that improvement on an exchange where to remove impediments to, and perfect it operates in a highly competitive they otherwise would not have had the the mechanisms of, a free and open market in which market participants can opportunity to do so. The Exchange market and a national market system easily direct their orders to competing believes the Program did not have a because the competition promoted by venues, including off-exchange venues. negative impact on the market quality as the Program facilitates the price In such an environment, the Exchange evidenced by the lack of consistent discovery process and potentially must continually review, and consider statistical evidence of an impact and the generate additional investor interest in adjusting the services it offers and the small size of the Program. trading securities. Making the pilot requirements, it imposes to remain Accordingly, the Exchange believes Program permanent will allow the competitive with other U.S. equity that the pilot Program’s rules, as Exchange to continue to provide the exchanges. amended, should be made permanent. Program’s benefits to retail investors on For the reasons described above, BX Additionally, the Exchange notes that a permanent basis and maintain the believes that the proposed rule change the proposed change is not otherwise improvements to public price discovery reflects this competitive environment. intended to address any other issues and the broader market structure. The and the Exchange is not aware of any data provided by BX to the SEC staff C. Self-Regulatory Organization’s problems that member organizations demonstrates that the Program provided Statement on Comments on the would have in complying with the tangible price improvement and Proposed Rule Change Received From proposed rule change. transparency to retail investors through Members, Participants, or Others a competitive pricing process. No written comments were either 2. Statutory Basis For the reasons stated above, the solicited or received. The Exchange believes that the Exchange believes that making the III. Date of Effectiveness of the proposed rule change is consistent with Program permanent would promote just Proposed Rule Change and Timing for the provisions of Section 6 of the Act,26 and equitable principles of trade and Commission Action in general, and with Section 6(b)(5) of remove impediments to and perfect the the Act,27 in particular, in that it is mechanism of a free and open market. Within 45 days of the date of designed to promote just and equitable As described below in BX’s statement publication of this notice in the Federal principles of trade, to remove regarding the burden on competition, Register or within such longer period (i) impediments to and perfect the the Exchange also believes that it is as the Commission may designate up to mechanism of a free and open market subject to significant competitive forces 90 days of such date if it finds such and a national market system, and, in and it would increase competition longer period to be appropriate and general to protect investors and the among execution venues, encourage publishes its reasons for so finding or public interest and not to permit unfair additional liquidity, and offer the (ii) as to which the Exchange consents, discrimination between customers, potential for price improvement to retail the Commission shall: (a) By order issuers, brokers, or dealers. investors. approve or disapprove such proposed The Exchange believes that making For all of these reasons, the Exchange rule change, or (b) institute proceedings the pilot Program permanent is believes that the proposal is consistent to determine whether the proposed rule consistent with these principles because with the Act. change should be disapproved. the Program is reasonably designed to B. Self-Regulatory Organization’s IV. Solicitation of Comments attract retail order flow to the exchange Statement on Burden on Competition environment, while helping to ensure Interested persons are invited to that retail investors benefit from the The Exchange does not believe that submit written data, views, and the proposed rule change will result in arguments concerning the foregoing, 26 15 U.S.C. 78f. any burden on competition that is not including whether the proposed rule 27 15 U.S.C. 78f(b)(5). necessary or appropriate in furtherance change is consistent with the Act.

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Comments may be submitted by any of SOCIAL SECURITY ADMINISTRATION Executive Director, Office of Privacy the following methods: and Disclosure, Office of the General [Docket No. SSA 2019–0002] Counsel, by any of the means shown Electronic Comments Privacy Act of 1974; Matching Program above, or call (410) 965–8850. • Use the Commission’s internet SUPPLEMENTARY INFORMATION: None. AGENCY: comment form (http://www.sec.gov/ Social Security Administration (SSA). Mary Zimmerman, rules/sro.shtml); or ACTION: Notice of a new matching Acting Executive Director, Office of Privacy • and Disclosure, Office of the General Counsel. Send an email to rule-comments@ program. sec.gov. Please include File Number SR– Participating Agencies BX–2019–011 on the subject line. SUMMARY: In accordance with the provisions of the Privacy Act, as SSA and Source Jurisdiction. Paper Comments amended, this notice announces new Authority for Conducting the Matching • Send paper comments in triplicate matching program with the Law Program Enforcement Agency (Source to Secretary, Securities and Exchange The legal authority for the matching Jurisdiction). Commission, 100 F Street NE, program conducted under this The purpose of this agreement is to Washington, DC 20549–1090. agreement is: Sections 1611(e)(4)(A), establish the terms, conditions, and 202(x)(l)(A)(iv) and (v), and 804(a)(2) All submissions should refer to File safeguards under which SSA will and (3) of the Act (42 U.S.C. Number SR–BX–2019–011. This file conduct a computer matching program 1382(e)(4)(A), 402(x)(l)(A)(iv) and (v), number should be included on the with Source Jurisdiction in accordance and 1004(a)(2) and (3)), which prohibit subject line if email is used. To help the with the Privacy Act of 1974, as the payment of SSI, RSDI, or SVB Commission process and review your amended by the Computer Matching benefits to an SSI recipient, RSDI comments more efficiently, please use and Privacy Protection Act of 1988, and beneficiary, or SVB beneficiary for any only one method. The Commission will the regulations and guidance month during which such individual post all comments on the Commission’s promulgated thereunder, to identify flees to avoid prosecution, or custody or individuals in the Source Jurisdiction internet website (http://www.sec.gov/ confinement after conviction, under the who are (1) fleeing fugitive felons, rules/sro.shtml). Copies of the applicable laws of the jurisdiction from parole violators, or probation violators, submission, all subsequent which the person flees, for a crime or as defined by the Social Security Act amendments, all written statements attempt to commit a crime considered to (Act) and in accordance with the with respect to the proposed rule be a felony under the laws of said Martinez Settlement and the Clark Court change that are filed with the jurisdiction. These sections of the Act Order, as defined below; and who are Commission, and all written also prohibit payment of SSI, RSDI, or also (2) Supplemental Security Income communications relating to the SVB benefits to a recipient/beneficiary (SSI) recipients, Retirement, Survivors proposed rule change between the in jurisdictions that do not define such and Disability Insurance (RSDI) Commission and any person, other than crimes as felonies, but as crimes beneficiaries, Special Veterans Benefit those that may be withheld from the punishable by death or imprisonment (SVB) beneficiaries, or representative public in accordance with the for a term exceeding 1 year (regardless payees for SSI recipients, RSDI provisions of 5 U.S.C. 552, will be of the actual sentence imposed), and to beneficiaries, or SVB beneficiaries. available for website viewing and an individual who violates a condition printing in the Commission’s Public DATES: The deadline to submit of probation or parole imposed under Reference Room, 100 F Street NE, comments on the proposed matching Federal or state law. As a result of a Washington, DC 20549 on official program is 30 days from the date of settlement of a nationwide class action business days between the hours of publication of this notice in the Federal in Martinez v. Astrue, No. 08–4735 10:00 a.m. and 3:00 p.m. Copies of the Register. The matching program will be (N.D. Cal. September 24, 2009) filing also will be available for applicable on October 10, 2019, or once (Martinez Settlement), SSA’s inspection and copying at the principal a minimum of 30 days after publication nonpayment of benefits under these offices of the Exchange. All comments of this notice has elapsed, whichever is sections of the Act is limited to received will be posted without change. later. The matching program will be in individuals with certain flight- or Persons submitting comments are effect for a period of 18 months. escape-coded warrants. Further, as a cautioned that we do not redact or edit ADDRESSES: Interested parties may result of a settlement of a nationwide personal identifying information from comment on this notice by either class action in Clark v. Astrue, 06 Civ. comment submissions. You should telefaxing to (410) 966–0869, writing to 15521 (S.D. NY, April 13, 2012) (Clark submit only information that you wish Mary Ann Zimmerman, Acting Court Order), SSA’s nonpayment of to make available publicly. All Executive Director, Office of Privacy benefits under these sections of the Act submissions should refer to File and Disclosure, Office of the General cannot be based solely on the existence Number SR–BX–2019–011, and should Counsel, Social Security of parole or probation arrest warrants. be submitted on or before June 5, 2019. Administration, G–401 WHR, 6401 Sections 1631(a)(2)(B)(iii)(V), Security Boulevard, Baltimore, MD For the Commission, by the Division of 205(j)(2)(C)(i)(V), and 807(d)(1)(E) of the 21235–6401, or emailing Trading and Markets, pursuant to delegated Act (42 U.S.C. 1383(a)(2)(B)(iii)(V), [email protected]. All authority.28 405(j)(2)(C)(i)(V), 1007(d)(1)(E)), which comments received will be available for prohibit SSA from using a person as a Eduardo A. Aleman, public inspection by contacting Ms. representative payee when such person Deputy Secretary. Zimmerman at this street address. is a person described in sections [FR Doc. 2019–09966 Filed 5–14–19; 8:45 am] FOR FURTHER INFORMATION CONTACT: 1611(e)(4)(A), 202(x)(1)(A)(iv), or BILLING CODE 8011–01–P Interested parties may submit general 804(a)(2) of the Act. The legal authority questions about the matching program for SSA’s disclosure of information to 28 17 CFR 200.30–3(a)(12). to Mary Ann Zimmerman, Acting the Source Jurisdiction is: Sections

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1106(a), 1611(e)(5), 1631(a)(2)(B)(xiv), 2018 at 83 FR 31250–31251, and Counsel, by any of the means shown 202(x)(3)(C), 205(j)(2)(B)(iii) and November 1, 2018 at 83 FR 54969; above, or call (410) 965–8850. 807(b)(3) of the Act; the Privacy Act of Master Representative Payee File, SSA/ SUPPLEMENTARY INFORMATION: None. 1974, as amended by the Computer NCC 60–0222, originally published on Matching and Privacy Protection Act of April 22, 2013 at 78 FR 23811, and Mary Zimmerman, 1988 (5 U.S.C. 552a(b)(3)); and SSA’s updated on July 3, 2018 at 83 FR 31250– Acting Executive Director, Office of Privacy disclosure regulations promulgated at 31251 and November 2, 2018 at 83 FR and Disclosure, Office of the General Counsel. 20 CFR 401.150. The settlement terms in 55228; and, Master Files of Social Participating Agencies: SSA and the Martinez v. Astrue and Clark v. Astrue Security Number Holders and SSN States, State Agencies, tribal agencies, do not restrict this disclosure authority Applications, SSA/OTSO 60–0058, and U.S. territories. in any manner. originally published on December 29, Authority for Conducting the 2010 at 75 FR 82121 and updated on Purpose(s) Matching Program: The legal authorities July 5, 2013 at 78 FR 40542 and for SSA to disclose data and the States’ This matching program establishes February 13, 2014 at 79 FR 8780, July authority to collect, maintain, and use the conditions under which SSA will 3, 2018 at 83 FR 31250–31251, and data protected under SSA’s systems of conduct a computer matching program November 1, 2018 at 83 FR 54969. The records (SOR) are: with Source Jurisdiction to identify Alphident file comes under this system • Sections 453, 1106(b), and 1137 of individuals in the Source Jurisdiction of record. the Social Security Act (Act) (42 U.S.C. who are (1) fleeing fugitive felons, [FR Doc. 2019–10031 Filed 5–14–19; 8:45 am] 653, 1306(b), and 1320b–7) (income and parole violators, or probation violators, BILLING CODE 4191–02–P eligibility verification data); as defined by the Act and in accordance • 26 U.S.C. 6103(l)(7) and (8) (Federal with the Martinez Settlement and the tax information); Clark Court Order, as defined below; SOCIAL SECURITY ADMINISTRATION • Sections 202(x)(3)(B)(iv) and and who are also (2) SSI recipients, [Docket No. SSA 2019–0003] 1611(e)(1)(I)(iii) of the Act (42 U.S.C. RSDI beneficiaries, SVB beneficiaries, or 402(x)(3)(B)(iv) and 1382(e)(1)(I)(iii)) representative payees for SSI recipients, Privacy Act of 1974; Matching Program (prisoner data); RSDI beneficiaries, or SVB beneficiaries. • Section 205(r)(3) of the Act (42 Categories of Individuals AGENCY: Social Security Administration U.S.C. 405(r)(3)) and the Intelligence (SSA). The individuals whose information is Reform and Terrorism Prevention Act of ACTION: Notice of a new matching involved in this matching program are 2004, Public Law 108–458, 7213(a)(2) program. fleeing fugitive felons, probation (death data); • Sections 402, 412, 421, and 435 of violators, or parole violators. SSA will SUMMARY: In accordance with the match the incoming Source Jurisdiction Public Law 104–193 (8 U.S.C. 1612, provisions of the Privacy Act, as 1622, 1631, and 1645) (quarters of records to determine individuals who amended, this notice announces a new receive SSI, RSDI, SVB benefits, or coverage data); matching program with the States, • Section 1902(ee) of the Act (42 individuals serving as representative including tribal agencies and United payees. U.S.C. 1396a(ee)); Children’s Health States (U.S.) territories. Insurance Program Reauthorization Act Categories of Records DATES: The deadline to submit of 2009 (CHIPRA), Public Law 111–3 comments on the proposed matching The Source Jurisdiction will provide (citizenship data); and program is 30 days from the date of specific data elements for individuals as • Routine use exception to the publication of this notice in the Federal specified in Attachment A. SSA data Privacy Act, 5 U.S.C. 552a(b)(3) (data Register. The matching program will be elements matched are individual’s SSN, necessary to administer other programs applicable on January 1, 2020, or once payment status, individual’s name, date compatible with SSA programs). a minimum of 30 days after publication of birth, gender, and status as a Purpose(s): The purpose of the of this notice has elapsed, whichever is representative payee. matching program is to set forth the later. The matching program will be in terms and conditions governing System(s) of Records effect for a period of 18 months. disclosures of records, information, or The Source Jurisdiction will prepare ADDRESSES: Interested parties may data (collectively referred to herein as and disclose its records electronically comment on this notice by either ‘‘data’’) made by SSA to various State with clear identification of the record telefaxing to (410) 966–0869, writing to agencies and departments, tribal source including the name of the Mary Ann Zimmerman, Acting agencies, and U.S. territories reporter and where the reporter Executive Director, Office of Privacy (collectively referred to as ‘‘State obtained the information. SSA will and Disclosure, Office of the General Agencies’’) that administer federally match the following systems of records Counsel, Social Security funded benefit programs, including with the incoming Source Jurisdiction Administration, G–401 WHR, 6401 those under various provisions of the records: Supplemental Security Income Security Boulevard, Baltimore, MD Act, such as section 1137 of the Act (42 Record and Special Veterans Benefits, 21235–6401, or emailing U.S.C. 1320b–7), as well as the state- 60–0103, originally published at 71 FR [email protected]. All funded state supplementary payment 1830 on January 11, 2006 and updated comments received will be available for programs under Title XVI of the Act. on December 10, 2007, at 72 FR 69723, public inspection by contacting Ms. The terms and conditions of the July 3, 2018 at 83 FR 31250–31251, and Zimmerman at this street address. matching agreements ensure that SSA’s November 1, 2018 at 83 FR 54969; FOR FURTHER INFORMATION CONTACT: disclosures and the State Agencies’ use Master Beneficiary Record, SSA/ORSIS Interested parties may submit general of such disclosed data is, in accordance 60–0090, originally published at 71 FR questions about the matching program with the requirements of the Privacy Act 1826 on January 11, 2006 and updated to Mary Ann Zimmerman, Acting of 1974, as amended by the Computer on December 10, 2007, at 72 FR 69723, Executive Director, Office of Privacy Matching and Privacy Protection Act, 5 and July 5, 2013 at 78 FR 40542, July 3, and Disclosure, Office of the General U.S.C. 552a.

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Under section 1137 of the Act, States SUSQUEHANNA RIVER BASIN to other items on the agenda at the are required to use an income and COMMISSION business meeting may be mailed to the eligibility verification system to Susquehanna River Basin Commission, administer specified federally funded Commission Meeting 4423 North Front Street, Harrisburg, benefit programs, including the state- Pennsylvania 17110–1788, or submitted AGENCY: Susquehanna River Basin funded state supplementary payment electronically through www.srbc.net/ Commission. programs under Title XVI of the Act. To about/meetings-events/business- assist the State Agencies in determining ACTION: Notice. meeting.html. Such comments are due entitlement to and eligibility for benefits SUMMARY: The Susquehanna River Basin to the Commission on or before June 10, under those programs, as well as other Commission will hold its regular 2019. Comments will not be accepted at federally funded benefit programs, SSA business meeting on June 14, 2019, in the business meeting noticed herein. verifies the Social Security number Harrisburg, Pennsylvania. Details Authority: Pub. L. 91–575, 84 Stat. 1509 et (SSN) and discloses certain data about concerning the matters to be addressed seq., 18 CFR parts 806, 807, and 808. applicants (and in limited at the business meeting are contained in circumstances, members of an Dated: May 10, 2019. the Supplementary Information section applicant’s household) for state- Jason E. Oyler, administered benefits from its Privacy of this notice. Also the Commission General Counsel and Secretary to the Act SORs. published a document in the Federal Commission. SSA has separate agreements with the Register on April 11, 2019, concerning [FR Doc. 2019–10034 Filed 5–14–19; 8:45 am] its public hearing on May 9, 2019, in State Agencies, which describe the BILLING CODE 7040–01–P information SSA will disclose for Harrisburg, Pennsylvania. specified federally funded benefit DATES: The meeting will be held on programs. Friday, June 14, 2019, at 9 a.m. SUSQUEHANNA RIVER BASIN Categories of Individuals: The ADDRESSES: The meeting will be held at COMMISSION individuals whose information is the Susquehanna River Basin involved in this matching program are Commission, 4423 N. Front Street, Projects Approved for Consumptive those who apply for federally funded, Harrisburg, PA 17110. Uses of Water state-administered benefits, as well as FOR FURTHER INFORMATION CONTACT: AGENCY: Susquehanna River Basin current beneficiaries, recipients, and Jason E. Oyler, General Counsel and Commission. annuitants under the programs covered Secretary to the Commission, telephone: ACTION: Notice. by the Agreement. 717–238–0423; fax: 717–238–2436. Categories of Records: The maximum SUMMARY: number of records involved in this SUPPLEMENTARY INFORMATION: The This notice lists the projects matching activity is the number of business meeting will include actions or approved by rule by the Susquehanna records maintained in SSA’s SORs. Data presentations on the following items: (1) River Basin Commission during the elements disclosed in computer Informational presentation of interest to period set forth in DATES. matching governed by the Agreement the middle Susquehanna River region; DATES: April 1–30, 2019. (2) expense budget for FY2021; (3) are Personally Identifiable Information ADDRESSES: Susquehanna River Basin member allocation for FY2021; (4) from SSA’s specified SORs, including Commission, 4423 North Front Street, ratification/approval of contracts/grants; names, SSNs, addresses, amounts, and Harrisburg, PA 17110–1788. (5) emergency certificate extensions; (6) other information related to SSA’s FOR FURTHER INFORMATION CONTACT: benefits and earnings information. a report on delegated settlements; (7) the proposed water resources program for Jason E. Oyler, General Counsel and Specific listings of data elements are Secretary to the Commission, telephone: available at: http://www.ssa.gov/ FY2019–2021; and (8) Regulatory Program projects. (717) 238–0423, ext. 1312; fax: (717) dataexchange/. 238–2436; email: [email protected]. System(s) of Records: Our SORs used This agenda is complete at the time of issuance, but other items may be added, Regular mail inquiries may be sent to for purposes of the subject data the above address. exchanges include: and some stricken without further • 60–0058—Master Files of SSN notice. The list of an item on the agenda SUPPLEMENTARY INFORMATION: This Holders and SSN Applications; does not necessarily mean that the notice lists the projects, described • 60–0059—Earnings Recording and Commission will take final action on it below, receiving approval for the Self-Employment Income System; at this meeting. When the Commission consumptive use of water pursuant to • 60–0090—Master Beneficiary does take final action, notice of these the Commission’s approval by rule Record; actions will be published in the Federal process set forth in 18 CFR 806.22(e) • 60–0103—Supplemental Security Register after the meeting. Any actions and § 806.22 (f) for the time period Income Record (SSR) and Special specific to projects will also be provided specified above: Veterans Benefits (SVB); in writing directly to project sponsors. Approvals by Rule Issued Under 18 • 60–0269—Prisoner Update Regulatory Program projects listed for CFR 806.22(e) Processing System (PUPS); and Commission action were those that were • 60–0321—Medicare Part D and Part the subject of public hearings conducted 1. Sunoco Pipeline, L.P.; ABR– D Subsidy File. by the Commission on May 9, 2019, and 201904002; Shirley Township, States will ensure that the Federal tax identified in the notices for such Huntingdon County, Pa.; Consumptive information contained in SOR 60–0059 hearings, which was published in 84 FR Use of Up to 0.200 mgd; Approval Date: (Earnings Recording and Self- 14712, April 11, 2019. April 29, 2019. Employment Income System) will only The public is invited to attend the 2. Sunoco Pipeline, L.P.; ABR– be used in accordance with 26 U.S.C. Commission’s business meeting. 201904003; Woodbury Township, Blair 6103. Comments on the Regulatory Program County, Pa.; Consumptive Use of Up to [FR Doc. 2019–10036 Filed 5–14–19; 8:45 am] projects are subject to a deadline of May 0.200 mgd; Approval Date: April 29, BILLING CODE 4191–02–P 20, 2019. Written comments pertaining 2019.

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Approvals by Rule Issued Under 18 SUMMARY: In a notice published on May additional duty of 25 percent as long as CFR 806.22(f) 9, 2019 (May 9 Notice), the U.S. Trade such products are entered into the 1. Pennsylvania General Energy Representative (Trade Representative) United States prior to June 1, 2019. Company, L.L.C.; Pad ID: SGL 75 Pad F; increased the rate of additional duty Such products remain subject to the ABR–201403005.R1; McHenry from 10 percent to 25 percent for the additional duty of 10 percent for a Township, Lycoming County, Pa.; products of China covered by the transitional period of time before June 1, Consumptive Use of Up to 3.0000 mgd; September 2018 action that are (i) 2019. The covered products of China Approval Date: April 1, 2019. entered for consumption, or withdrawn that are entered into the United States 2. Chesapeake Appalachia, L.L.C.; Pad from warehouse for consumption, on or on or after June 1, 2019, are subject to ID: TA, ABR–201403011.R1; Colley after 12:01 a.m. eastern daylight time on the 25 percent rate of additional duty. Township, Sullivan County, Pa.; May 10, 2019, and (ii) exported to the To distinguish between covered Consumptive Use of Up to 7.5000 mgd; United States on or after May 10, 2019. products of China subject to the 10 Approval Date: April 1, 2019. This notice provides that products of percent rate of additional duty from 3. Chesapeake Appalachia, L.L.C.; Pad China that are covered by the September those subject to the 25 percent rate, the 2018 action and that were exported to ID: Garrison, ABR–201403012.R1; Annex to this notice creates a new the United States prior to May 10, 2019, Washington Township, Wyoming heading in Chapter 99 of the HTSUS are not subject to the additional duty of County, Pa.; Consumptive Use of Up to (9903.88.09) for products of China 25 percent, as long as such products are 7.5000 mgd; Approval Date: April 1, covered by the September 2018 action entered into the United States prior to 2019. that were exported before May 10, 2019, June 1, 2019. Such products remain 4. Chief Oil & Gas, LLC; Pad ID: and entered into the United States on or subject to the additional duty of 10 Herbert Drilling Pad, ABR– after May 10, 2019 and before June 1, percent for this interim period. 201404001.R1; Harford and Lenox 2019. HTSUS heading 9903.88.09 is Townships, Susquehanna County, Pa.; DATES: HTSUS heading 9903.88.09, limited to covered products of China Consumptive Use of Up to 2.5000 mgd; which is set out in the Annex to this entered into the United States during Approval Date: April 16, 2019. notice, applies to products of China this period of time to account for 5. JKLM Energy, LLC; PAD ID: covered by the September 2018 action customs enforcement factors and the Greisemer 171, ABR–201904001; Hector that were exported before May 10, 2019, average transit time between China and Township, Potter County, Pa.; and entered into the United States on or the United States by sea. Consumptive Use of Up to 3.0000 mgd; after May 10, 2019, and before June 1, Approval Date: April 22, 2019. 2019. The products of China covered by the September 2018 action that are admitted 6. Chief Oil & Gas, LLC; Pad ID: I. FOR FURTHER INFORMATION CONTACT: For Harvey Drilling Pad, ABR– questions about this notice, contact into a foreign-trade zone (FTZ) in 201404006.R1; Elkland Township, Associate General Counsel Arthur Tsao ‘‘Privileged Foreign’’ status shall retain Sullivan County, Pa.; Consumptive Use or Assistant General Counsel Juli that status consistent with 19 CFR of Up to 2.5000 mgd; Approval Date: Schwartz, or Director of Industrial 146.41(e) and will be subject, at the time April 29, 2019. Goods Justin Hoffmann at (202) 395– of entry for consumption, to the 7. Pennsylvania General Energy 5725. For questions on customs additional duty rate that was in effect at Company, L.L.C.; Pad ID: SGL 75 Pad A; classification or implementation of the time of FTZ admission of said ABR–201404007.R1; McHenry product. Township, Lycoming County, Pa.; additional duties on products covered in the supplemental action, contact U.S. Customs and Border Protection Consumptive Use of Up to 3.0000 mgd; will issue instructions on entry Approval Date: April 29, 2019. [email protected]. SUPPLEMENTARY INFORMATION: In the May guidance and implementation. Authority: Pub. L. 91–575, 84 Stat. 1509 9 Notice, the Trade Representative et seq., 18 CFR parts 806 and 808. Joseph Barloon, modified the action being taken in the Dated: May 9, 2019. General Counsel, Office of the U.S. Trade Section 301 investigation by increasing Representative. Jason E. Oyler, the rate of additional duty from 10 General Counsel and Secretary to the percent to 25 percent for the products of Annex Commission. China covered by the September 2018 Effective with respect to goods: (1) [FR Doc. 2019–10035 Filed 5–14–19; 8:45 am] action in this investigation. The Exported to the United States before May 10, BILLING CODE 7040–01–P ‘‘September 2018 action’’ refers to the 2019; and (2) entered for consumption, or additional duties on products of China withdrawn from warehouse for consumption, with an annual trade value of on or after 12:01 a.m. eastern daylight time OFFICE OF THE UNITED STATES approximately $200 billion, published on May 10, 2019, and entered for TRADE REPRESENTATIVE at 83 FR 47974 (Sep. 21, 2018), as consumption, or withdrawn from warehouse subsequently modified by the notice for consumption, before 12:01 a.m. eastern Implementing Modification to Section published at 83 FR 49153 (September daylight time on June 1, 2019, subchapter III 301 Action: China’s Acts, Policies, and 28, 2018). The increase in the rate of of chapter 99 of the Harmonized Tariff Practices Related to Technology additional duty became effective on Schedule of the United States (HTSUS) is Transfer, Intellectual Property, and May 10, 2019. modified: Innovation Under this implementing 1. By inserting the following new heading AGENCY: Office of the United States modification, and as specified in the 9903.88.09 in numerical sequence, with the Trade Representative. Annex to this notice, products of China material in the new heading inserted in the that are covered by the September 2018 columns of the HTSUS labeled ‘‘Heading/ ACTION: Notice of implementing action that were exported prior to May modification. Subheading’’, ‘‘Article Description’’, and 10, 2019, are not subject to the ‘‘Rates of Duty 1-General’’, respectively:

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Rates of duty Heading/ Article description 1 subheading 2 General Special

‘‘9903.88.09 ...... Articles the product of China, as provided for in U.S. note 20(l) to The duty pro- this subchapter and as provided for in the subheadings enu- vided in the merated in U.S. notes 20(f) or 20(g) to this subchapter, if ex- applicable ported to the United States before May 10, 2019 and entered subheading + for consumption, or withdrawn from warehouse for consump- 10%’’. tion, on or after May 10, 2019, and before June 1, 2019.

2. by inserting the following new U.S. note 20(f) or 20(g) to subchapter III shall continue ways in which such operations will 20(l) to subchapter III of chapter 99 in to be subject to antidumping, countervailing, affect such maps. The Act requires such numerical sequence: or other duties, fees, exactions and charges maps to be developed in consultation ‘‘(l) For the purposes of heading that apply to such products, as well as to the with interested and affected parties in 9903.88.09, products of China, as provided additional 10 percent ad valorem rate of duty for in this note, shall be subject to an imposed by heading 9903.88.09.’’ the local community, government agencies, and persons using the airport. additional 10 percent ad valorem rate of [FR Doc. 2019–09990 Filed 5–14–19; 8:45 am] duty. The products of China that are subject An airport operator who has submitted to an additional 10 percent ad valorem rate BILLING CODE 3290–F9–P noise exposure maps that are found by of duty under heading 9903.88.09 are FAA to be in compliance with the products of China that are classified in the requirements of Part 150, promulgated subheadings enumerated in U.S. notes 20(f) DEPARTMENT OF TRANSPORTATION pursuant to the Act, may submit a noise or 20(g) to subchapter III. All products of compatibility program for FAA approval China that are classified in the subheadings Federal Aviation Administration enumerated in U.S. notes 20(f) or 20(g) to which sets forth the measures the subchapter III are subject to the additional 10 Noise Exposure Map Notice for San operator has taken or proposes to take percent ad valorem rate of duty imposed by Carlos Airport, San Carlos, California to reduce existing non-compatible uses heading 9903.88.09. and prevent the introduction of For the purposes of heading 9903.88.09, AGENCY: Federal Aviation additional non-compatible uses. the products of China that are subject to an Administration, DOT. The FAA has completed its review of additional 10 percent ad valorem rate of duty ACTION: Notice. are products that are: (1) Exported to the the noise exposure maps and accompanying documentation United States before May 10, 2019; and (2) SUMMARY: The Federal Aviation entered for consumption, or withdrawn from Administration (FAA) announces its submitted by County of San Mateo. The warehouse for consumption on or after May determination that the noise exposure documentation that constitutes the 10, 2019, and before June 1, 2019. maps submitted by the County of San ‘‘Noise Exposure Maps’’ as defined in Notwithstanding U.S. note 1 to this section 150.7 of Part 150 includes: subchapter, all products of China that are Mateo for San Carlos Airport are in compliance with applicable Exhibit 1 the existing condition—2017 subject to the additional 10 percent ad Noise Exposure Map and Exhibit 2 the valorem rate of duty imposed by heading requirements. 9903.88.09 shall also be subject to the general future 5-year forecast—2022 Noise DATES: The effective date of the FAA’s rates of duty imposed on products of China Exposure Map. The Noise Exposure classified in the subheadings enumerated in determination on the noise exposure Maps contain current and forecast U.S. notes 20(f) or 20(g) to subchapter III. maps is April 23, 2019. information including the depiction of Products of China that are classified in the FOR FURTHER INFORMATION CONTACT: the airport and its boundary; the runway subheadings enumerated in U.S. note 20(f) or Camille Garibaldi, Environmental configuration, land uses such as 20(g) to subchapter III and that are eligible for Protection Specialist, SFO–613, Federal residential, commercial, industrial, and special tariff treatment under general note Aviation Administration, San Francisco open space/recreational land use; 3(c)(i) to the tariff schedule, or that are Airports District Office, 1000 Marina eligible for temporary duty exemptions or locations of noise sensitive public reductions under subchapter II to chapter 99, Boulevard, Suite 220, Brisbane, buildings (such as schools, hospitals, shall be subject to the additional 10 percent California 94005–1835; or by telephone and historic properties on or eligible for ad valorem rate of duty imposed by heading at (650) 827–7613. the National Register of Historic Places); 9903.88.09. SUPPLEMENTARY INFORMATION: This and the Community Noise Equivalent The additional duties imposed by heading notice announces that the FAA finds Level (CNEL) 65, 70, and 75 decibel 9903.88.09 do not apply to goods for which that the noise exposure maps submitted airport noise contours resulting from entry is properly claimed under a provision for San Carlos Airport are in compliance existing and forecast airport operations. of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, with applicable requirements of 14 Code The frequency of airport operations is 9802.00.50, and 9802.00.60, and heading of Federal Regulations (CFR) Part 150 described in Chapter 2 of the Noise 9802.00.80. For subheadings 9802.00.40, (hereinafter referred to as ‘‘Part 150’’), Exposure Map report. Flight tracks 9802.00.50, and 9802.00.60, the additional effective April 23, 2019. Under 49 associated with San Carlos Airport are duties apply to the value of repairs, U.S.C. 47503 of the Aviation Safety and depicted in Exhibits 2C through 2F. The alterations, or processing performed abroad, Noise Abatement Act (hereinafter San Carlos Airport noise measurement as described in the applicable subheading. referred to as ‘‘the Act’’), an airport program is described in Chapter 2 and For heading 9802.00.80, the additional duties operator may submit to the FAA noise monitor locations are shown on Exhibit apply to the value of the article less the cost or value of such products of the United exposure maps which meet applicable 2K of the report. Estimates of the States, as described in heading 9802.00.80. regulations and which depict non- number of people residing within the Products of China that are provided for in compatible land uses as of the date of CNEL contours is located in Chapter 3, heading 9903.88.09 and classified in one of submission of such maps, a description Table 3A of the Noise Exposure Map the subheadings enumerated in U.S. notes of projected aircraft operations, and the report. The FAA has determined that

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these noise exposure maps and heading FOR FURTHER INFORMATION retroactively released for non- accompanying documentation are in CONTACT. aeronautical use. This release will also compliance with applicable Issued in El Segundo, California on May 6, accommodate a proposed expansion of requirements. This determination is 2019. the boat ramp public parking area. The effective on April 23, 2019. Arlene B. Draper, Matanuska-Susitna Borough operates FAA’s determination on an airport Acting Director, Office of Airports, Western- the boat ramp as a public service and no operator’s noise exposure maps is Pacific Region, AWP–600. payment to the airport is proposed. The FAA has determined that the release of limited to a finding that the maps were [FR Doc. 2019–09957 Filed 5–14–19; 8:45 am] the property will not likely adversely developed in accordance with the BILLING CODE 4910–13–P procedures contained in Appendix A of impact future aviation needs at the Part 150. Such determination does not airport, though the expanded parking constitute approval of the applicant’s DEPARTMENT OF TRANSPORTATION area will affect the sponsors ability to data, information or plans, or a seek lower approach minimums. The commitment to approve a noise Federal Aviation Administration FAA may approve the request, in whole compatibility program or to fund the or in part, no sooner than 30 days after implementation of that program. If Public Notice for Intent To Release the publication of this notice. questions arise concerning the precise Airport Property This release is considered to be for the benefit of the community and will not relationship of specific properties to AGENCY: Federal Aviation noise exposure contours depicted on a Administration (FAA), DOT. generate revenue. noise exposure map submitted under ACTION: Issued in Anchorage, Alaska, on May 9, section 47503 of the Act, it should be Notice of intent to rule on request to release airport property for 2019. noted that the FAA is not involved in Kristi A. Warden, any way in determining the relative non-aeronautical use; Lake Louise Airport (Z55), Lake Louise, Alaska. Director, Alaskan Region Airports Division locations of specific properties with FAA. regard to the depicted noise contours, or SUMMARY: The FAA proposes to rule and [FR Doc. 2019–09982 Filed 5–14–19; 8:45 am] in interpreting the noise exposure maps invites public comment on the interim BILLING CODE 4910–13–P to resolve questions concerning, for release of the aeronautical use only example, which properties should be provision for land at the Lake Louise covered by the provisions of section Airport, Lake Louise, Alaska. DEPARTMENT OF TRANSPORTATION 47506 of the Act. These functions are DATES: Comments must be received on inseparable from the ultimate land use or before June 14, 2019. Federal Highway Administration control and planning responsibilities of local government. These local ADDRESSES: Documents are available for Environmental Impact Statement: Little responsibilities are not changed in any review by appointment at the FAA Cottonwood Canyon, Salt Lake way under Part 150 or through FAA’s Alaskan Region Airports Division, County, Utah review of noise exposure maps. Molly Lamrouex, Compliance Manager, Therefore, the responsibility for the 222 W 7th Avenue, Anchorage, AK. AGENCY: Federal Highway detailed overlaying of noise exposure Telephone: (907) 271–5439 and the Administration (FHWA), DOT, contours onto the map depicting Alaska Department of Transportation & ACTION: Revised Notice of Intent to properties on the surface rests Public Facilities, 2301 Peger Road, prepare an Environmental Impact exclusively with the airport operator Fairbanks, Alaska. Telephone: (907) Statement. that submitted those maps, or with 451–5226. those public agencies and planning Written comments on the Sponsor’s SUMMARY: FHWA on behalf of the Utah agencies with which consultation is request must be delivered or mailed to: Department of Transportation (UDOT) required under section 47503 of the Act. Molly Lamrouex, Compliance Manager, published a Revised Notice of Intent The FAA has relied on the certification Federal Aviation Administration, (NOI) in the Federal Register on March by the airport operator, under section Alaskan Region Airports Division, 222 5, 2019. FHWA on behalf of UDOT is 150.21 of Part 150, that the statutorily W 7th Avenue, Anchorage, AK 99513, issuing this notice to advise the public required consultation has been Telephone Number: (907) 271–5439. that UDOT intends to revise the scope accomplished. FOR FURTHER INFORMATION CONTACT: of the analysis of the Little Cottonwood Copies of the full noise exposure map Molly Lamrouex, Compliance Manager, Canyon project based on the anticipated documentation and of the FAA’s Federal Aviation Administration, 2019–2050 Regional Transportation evaluation of the maps are available for Alaskan Region Airports Division, 222 Plan (RTP) prepared by the Wasatch examination at the following locations: W 7th Avenue, Anchorage, AK 99513. Front Regional Council (WFRC) and Telephone Number: (907) 271–5439/ information collected from the public Federal Aviation Administration, FAX Number: (907) 271–2851. and agencies during the scoping process Western-Pacific Region, Office of and development of the project need. Airports, 777 S Aviation Blvd., Suite SUPPLEMENTARY INFORMATION: The FAA 150, El Segundo, CA 90245 invites public comment on the request FOR FURTHER INFORMATION CONTACT: to release the aeronautical use only Brandon Weston, Environmental Federal Aviation Administration, San grant provision for improvements to an Services Director, Environmental Francisco Airports District Office, existing public boat ramp west of Services Division, UDOT 4501 South 1000 Marina Boulevard, Suite 220, runway 13 operated by the Matanuska- 2700 West, P.O. Box 141265, Salt Lake Brisbane, CA 94005–1835 Susitna Borough, under the provisions City, Utah 84114–1265 Telephone: (801) San Mateo County Airports Division, of 49 U.S.C. 47107(h)(2). The Alaska 965–4603, email: brandonweston@ San Carlos Airport, 620 Airport Drive, Department of Transportation and utah.gov. John Thomas, PE, Little Suite 10, San Carlos, CA 94070–2714 Public Facilities has requested from the Cottonwood Canyon Project Manager, Questions may be directed to the FAA that a portion of airport property UDOT Region 2, 2010 South 2760 West, individual named above under the already in use as a public boat ramp be Salt Lake City, UT 84104–4592;

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Telephone: (801) 550–2248, Email: Fort Union Boulevard to North Little In addition, a public hearing will be [email protected]. Cottonwood Canyon Road; and held following the release of the Draft • SUPPLEMENTARY INFORMATION: The Additional roadway capacity and EIS. Public notice advertisements and environmental review, consultation, and mobility improvements, including the direct mailings will notify interested other actions required by applicable option of adding a third lane on SR–210 parties of the time and place of the federal environmental laws for this in Little Cottonwood Canyon, with the public meetings and the public hearing. project are being or have been carried evaluation of managed lane concepts. The Draft EIS will be available for out by UDOT pursuant to 23 U.S.C. 327 and (3) other alternatives if identified public and agency review and comment and a Memorandum of Understanding during the EIS process. Alternatives that prior to the public hearing. dated January 17, 2017, and executed by do not meet the project purpose and To ensure that the full range of issues FHWA and UDOT. need or that are otherwise not related to this proposed action is On March 5, 2019, at FR Vol. 84, No. reasonable will not be carried forward addressed and all significant issues are 43, page 7967–8, FHWA on behalf of for detailed consideration. identified, comments and suggestions UDOT issued a Revised NOI for UDOT, To ensure the public was informed of are invited from all interested parties. as the lead agency under the National the inclusion of the additional lane into Written comments or questions Environmental Policy Act (NEPA), to EIS, UDOT sent out an email to concerning this proposed action and the prepare an Environmental Impact interested stakeholders and agencies EIS should be directed to UDOT Statement (EIS) for proposed and held an agency scoping meeting on representatives at the mail or email improvements to SR–210, a two-lane April 3, 2019 notifying them of the addresses provided above by June 14, roadway, in Little Cottonwood Canyon change in EIS scope. In addition, the 2019. For additional information please in Salt Lake County, Utah. The inclusion of the additional lane into the visit the project website at proposed project study area in the NOI EIS was included in project information www.udot.utah.gov/littlecottonwoodeis. extended from the intersection of SR– provided at the April 9, 2019 public Information requests or comments can 210 and SR–190/Fort Union Boulevard scoping meeting for comment. An initial also be provided by email to in Cottonwood Heights, Utah to the scoping period was held from March 9– [email protected]. (Catalog terminus of SR–210 in the town of Alta, May 4, 2018 that included mobility of Federal and Domestic Assistance Utah. The extent of the project study improvements on SR–210 in Little Program Number 20.205, Highway area has not changed with this revised Cottonwood Canyon. Comments Research, Planning and Construction. NOI. received during the initial scoping The regulations implementing Executive As part of the release of the March 5, period will be carried forward during Order 12372 regarding 2019 Revised NOI and the EIS process, this process. intergovernmental consultation on UDOT invited public and agency The project may require FHWA to Federal programs and activities apply to comments during a scoping period from appropriate National Forest System this program.) March 5 to May 3, 2019, which included lands and transfer such lands to UDOT Dated: May 7, 2019. a public scoping meeting on April 9, for highway use, pursuant to authority Ivan Marrero, under 23 U.S.C. 317. The project may 2019. Just prior to the initiation of this Division Administrator, Federal Highway scoping period the WFRC released a also require approvals by the USDA Administration, Salt Lake City, Utah. Draft 2019—2050 RTP which included Forest Service, the U.S. Army Corps of [FR Doc. 2019–10009 Filed 5–14–19; 8:45 am] project R–S–53, widen Little Engineers, and/or other agencies. The Cottonwood Canyon Road (SR–210) USDA Forest Service, the U.S. Army BILLING CODE 4910–22–P from 2 to 3 lanes from Wasatch Corps of Engineers, the U.S. Boulevard to End of Canyon. This Environmental Protection Agency, Utah DEPARTMENT OF TRANSPORTATION project was not included in the 2015 to Transit Authority, and Salt Lake City 2040 RTP. The Draft 2019–2050 RTP Department of Public Utilities have Federal Motor Carrier Safety also included Special Bus Service in accepted UDOT’s invitation to be Administration Little Cottonwood Canyon. After cooperating agencies and are expected reviewing the Draft 2019–2050 RTP, to continue in this role with the revised [Docket No. FMCSA–2018–0346] UDOT has revised the scope of the Little scope. Commercial Driver’s Licenses; Pilot Information describing the revised Cottonwood Canyon EIS. The revised Program To Allow Drivers Under 21 To scope and soliciting comments have scope includes the same elements from Operate Commercial Motor Vehicles in been sent to appropriate Federal, state, the March 5, 2019 Revised NOI plus the Interstate Commerce addition of the Little Cottonwood and local agencies as well as to Native Canyon SR-210 RTP projects. The EIS American tribes and to private AGENCY: Federal Motor Carrier Safety scope will include the following: (1) organizations and citizens who have Administration (FMCSA), DOT. Taking no action; (2) one or more previously expressed, or who are known ACTION: Notice and request for alternatives involving multiple, to have, an interest in this proposal. comments. combined actions, including: Information may also be obtained • Transportation System Management through a public website maintained by SUMMARY: Drivers 18, 19 and 20 years (TSM); UDOT at www.udot.utah.gov/ old may currently operate commercial • Enhancing safety and improving littlecottonwoodeis. motor vehicles (CMVs) in intrastate winter time mobility through avalanche During the NEPA process, other commerce. On July 6, 2018, FMCSA mitigation; public meetings will be held as published a Federal Register notice • Enhancing safety, access, and appropriate to allow the public, as well announcing the details of the mobility in the area through improved as Federal, state, and local agencies, and Commercial Driver Pilot Program, that designated parking areas at existing U.S. tribes, to provide comments on the allows certain 18- to 20-year-olds with Department of Agriculture (USDA) purpose of and need for the project, military training to operate CMVs in Forest Service trailheads; potential alternatives, and social, interstate commerce. This document • Roadway improvements to SR–210 economic, and environmental issues of requests comments on a possible second on Wasatch Boulevard from SR–190/ concern. pilot program to allow non-military

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drivers aged 18, 19, and 20 to operate comments are not limited to responses interstate commerce must be at least 21 CMVs in interstate commerce. FMCSA to those requests. years of age, whether or not operation of requests comments on the training, the CMV requires a commercial driver’s Submitting Comments qualifications, driving limitations, and license (CDL) (49 CFR 391.11(b)(1)). vehicle safety systems that FMCSA If you submit a comment, please Under 49 U.S.C. 31315 and 31136(e), should consider in developing options include the docket number for this the Secretary of Transportation (the or approaches for a second pilot notice (FMCSA–2018–0346), indicate Secretary) has authority to grant waivers program for younger drivers. the specific section of this document to and exemptions from the Federal Motor DATES: Comments must be received on which the comment applies, and Carrier Safety Regulations (FMCSRs) or before July 15, 2019. provide a reason for suggestions or and to conduct pilot programs in which recommendations. You may submit ADDRESSES: You may submit comments one or more exemptions are granted to bearing the Federal Docket Management your comments and material online, by allow for the testing of innovative System (FDMS) Docket ID FMCSA– fax, mail, or hand delivery, but please alternatives to certain FMCSRs. FMCSA 2018–0346 using any of the following use only one of these means. FMCSA must publish in the Federal Register a methods: recommends that you include your detailed description of each pilot • Federal eRulemaking Portal: name and a mailing address, an email program, including the exemptions www.regulations.gov. Follow the online address, or a phone number in the body being considered, and provide notice instructions for submitting comments. of your document so the agency can and an opportunity for public comment • Mail: Docket Management Facility, contact you if it has questions regarding before the effective date of the program. U.S. Department of Transportation, 1200 your submission. The Agency is required to ensure that New Jersey Avenue SE, West Building, To submit your comment online, go to the safety measures in the pilot Ground Floor, Room W12–140, www.regulations.gov, put the docket programs are designed to achieve a level Washington, DC 20590–0001. number, ‘‘FMCSA–2018–0346’’ in the of safety that is equivalent to, or greater • Hand Delivery or Courier: West ‘‘Keyword’’ box, and click ‘‘Search.’’ than, the level of safety that would be Building, Ground Floor, Room W12– When the new screen appears, click on achieved through compliance with the 140, 1200 New Jersey Avenue SE, the ‘‘Comment Now!’’ button and type safety regulations. The maximum between 9 a.m. and 5 p.m., Monday your comment into the text box in the duration of a pilot program is 3 years. through Friday, except Federal holidays. following screen. Choose whether you Therefore, a pilot program requires • Fax: 1–202–493–2251. are submitting your comment as an that participating drivers be provided Each submission must include the individual or on behalf of a third party relief from the effect of the intrastate Agency name and the docket number for and then submit. If you submit your only (or ‘‘K’’) restriction that would this notice. Note that DOT posts all comments by mail or hand delivery, appear on a CDL under 49 CFR comments received without change to submit them in an unbound format, no 383.153(a)(10)(vii) and an exemption www.regulations.gov, including any larger than 81⁄2 by 11 inches, suitable for from the requirement that a CMV driver personal information included in a copying and electronic filing. If you operating in interstate commerce be at comment. Please see the Privacy Act submit comments by mail and would least 21 years of age under 49 CFR heading below. like to know that they reached the 391.11(b)(1). facility, please enclose a stamped, self- At the conclusion of each pilot Privacy Act addressed postcard or envelope. FMCSA program, FMCSA must report to In accordance with 5 U.S.C. 553(c), will consider all comments and material Congress its findings, conclusions, and DOT solicits comments from the public received during the comment period. recommendations, including suggested amendments to laws and regulations to better inform its processes. DOT posts Viewing Comments and Documents these comments, without edit, including that would enhance motor carrier, CMV, any personal information the To view comments, as well as and driver safety, and improve commenter provides, to documents mentioned in this notice as compliance with the FMCSRs. www.regulations.gov, as described in being available in the docket, go to Additionally, Section 5404 of the the system of records notice (DOT/ALL– www.regulations.gov and insert the Fixing America’s Surface Transportation 14 FDMS), which can be reviewed at docket number, ‘‘FMCSA–2018–0346’’ (FAST) Act (Pub. L. 114–94, 129 Stat. www.dot.gov/privacy. in the ‘‘Keyword’’ box and click 1312, 1549, Dec. 4, 2015) directed FOR FURTHER INFORMATION CONTACT: Mr. ‘‘Search.’’ Next, click the ‘‘Open Docket FMCSA to establish a pilot program to Selden Fritschner, Commercial Drivers Folder’’ button and choose the allow certain drivers with military License Division, Federal Motor Carrier document listed to review. If you do not training and experience, ages 18, 19 or Safety Administration, 1200 New Jersey have access to the internet, you may 20, to operate CMVs in interstate Avenue SE, Washington, DC 20590– view the docket online by visiting the commerce. Docket Management Facility in Room 0001, by email at selden.fritschner@ III. Background dot.gov, or by telephone at 202–366– W12–140 on the ground floor of the 0677. If you have questions on viewing DOT West Building, 1200 New Jersey Recent Considerations To Change the or submitting material to the docket, Avenue SE, Washington, DC 20590, CDL Driving Age contact Docket Services, telephone (202) between 9 a.m. and 5 p.m., ET., Monday On October 2, 2000, the Truckload 366–9826. through Friday, except Federal holidays. Carriers Association (TCA) petitioned SUPPLEMENTARY INFORMATION: II. Legal Basis FMCSA to conduct a younger driver pilot program. Motor carriers, truck I. Public Participation and Request for Applicable Regulations driver training schools, a trade Comments Subject to limited exceptions for farm association, and an insurance company FMCSA encourages you to participate vehicle drivers of articulated CMVs (49 joined in the petition asking FMCSA to by submitting comments and related CFR 391.67) and private (non-business) authorize a pilot program to determine materials. In this notice, FMCSA motor carriers of passengers (49 CFR if CMV drivers under age 21 could requests certain information, but 391.68), drivers of CMVs engaged in operate CMVs safely in interstate

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commerce. Petitioners stated that this National Guard members who are 18, 19 2020, CDL applicants subject to the rule pilot would address the shortage of or 20 years old and certified in one of must complete a prescribed program of CMV drivers in the trucking industry. seven Military Occupational Specialties instruction presented by an entity listed Petitioners also asserted that recruiting (MOS) to operate CMVs in interstate on FMCSA’s Training Provider Registry, young persons as truck drivers would be commerce. The 2016 notice provided prior to taking the State-administered easier if they could be approached details of current military training. At a CDL skills test, or for the Hazardous immediately after graduation from high minimum, the seven MOS require at Materials endorsement, prior to taking school. least 22 hours of classroom training and the knowledge test. The final rule The pilot program proposed by TCA 62 hours of behind-the-wheel taining in outlined the topics that must be covered would have involved a minimum of 48 a heavy duty military vehicle. In some during classroom and behind the wheel weeks of intensive classroom and instances, additional instruction is training curriculums; however, it did driving instruction and supervision that required for specialized training, not require a minimum number of hours was designed to lead to full-time depending on the vehicle or trailer type. for either classroom or behind the employment as an interstate CMV The Agency received 67 comments to wheel. driver. Each younger driver (18 to 21 the docket; 40 favored the pilot program years of age) would attend a truck driver and 9 opposed it. The remaining 18 Recent Legislative Proposals training school approved by the comments were a form letter asking the On February 27, 2019, companion Professional Truck Driver Institute for a Agency to expand the current pilot bills were introduced in the U.S. House minimum of 22 weeks and receive 8 program or initiate a new one for drivers of representatives and the U.S. Senate weeks of training in a motor carrier’s aged 18, 19, or 20 years old and who are called the ‘‘Developing Responsible ‘‘driver finishing’’ program. This would engaged in agricultural operations. Individuals for a Vibrant Economy Act’’ be followed by 18 weeks of team driving On July 6, 2018, the FMCSA (DRIVE-Safe Act) (H.R. 5358). The with an older, more experienced driver. published a notice detailing the DRIVE-Safe Act proposes to lower the Younger drivers would be required to requirements of the pilot program and age requirement for interstate drivers to pass the performance standards of the responded to comments. The notice is 18 as long as drivers under the age of entire 48-week program and reach the titled ‘‘Proposed Pilot Program To 21 are participating in an age of 19 to begin solo driving. Allow Persons Between the Ages of 18 apprenticeship program that includes On February 20, 2001, FMCSA and 21 With Military Driving separate 120-hour and 280-hour published a notice asking six questions Experience to Operate Commercial probationary periods, during which about the proposed pilot program and Motor Vehicles in Interstate Commerce’’ younger drivers would operate CMVs requesting public comment on the TCA (83 FR 31633). The notice discussed under the supervision of an experienced petition (66 FR 10935). FMCSA received comments and responses received from driver and must achieve specific more than 1,600 comments. Very few the August 2016 notice, and detailed the performance benchmarks before commenters presented data either for or pilot program requirements and advancing. Younger drivers would also against the program. More than 90 procedures. drive vehicles equipped with active percent of the commenters were In addition, on July 6, 2018, the braking collision mitigation systems, opposed, most on the basis that FMCSA published a 60-day notice for forward-facing video event capture, and individuals under the age of 21 lacked the information collection request (ICR) speed limiters set to 65 miles per hour. the maturity and judgment to operate a associated with the Under 21 Military CMV. None explained how interstate CDL Pilot Program (83 FR 31631). The IV. Request for Public Comments drivers under 21 would diminish safety ICR included the application and FMCSA requests responses to the when most States have concluded that consent forms for motor carriers, following questions to help the Agency intrastate drivers under 21 do not do so. covered drivers, control group drivers, determine whether it should propose a Very few truck drivers and motor and intrastate drivers providing younger driver pilot program and the carriers commented, but most of them information for the pilot program. It also parameters of such a program. also opposed the pilot program. explained the Agency’s hypotheses for Instructions for filing comments to the On June 9, 2003, FMCSA denied the the Under 21 Military CDL Pilot public docket are included earlier in TCA petition stating that ‘‘the Agency Program, the monthly reporting this notice. does not have sufficient information at requirements, and the ICR burdens. The The public is encouraged to respond this time to make a determination that Agency anticipates that some of the to the questions listed below; however, the safety measures in the pilot program forms and processes developed for this additional comments are also welcome. are designed to achieve a level of safety information collection may also be equivalent to, or greater than, the level applicable if the Agency decides to General of safety provided by complying with conduct a pilot program involving 1. What data are currently available the minimum 21-year age requirement younger drivers without military on the safety performance (e.g., crash to operate a CMV.’’ (68 FR 34467, training and experience. involvement, etc.) of 18–20-year-old 34468) drivers operating CMVs in intrastate Entry Level Driver Training commerce? Military Under 21 Pilot Program On December 8, 2016, the FMCSA 2. Are there concerns about obtaining On August 22, 2016, FMCSA published a final rule titled ‘‘Minimum insurance coverage for drivers under 21 published a notice of proposed pilot Training Requirements for Entry-Level who operate CMVs in intrastate program titled ‘‘Commercial Driver’s Commercial Motor Vehicle Operators’’ commerce, and would these challenges Licenses; Proposed Pilot Program to (81 FR 88732). The rule on entry-level be greater for interstate operations? Allow Persons Between the Ages of 18 driver training (ELDT) established and 21 with Military Driving Experience minimum training standards for certain Training and Experience to Operate Commercial Motor Vehicles individuals applying for their CDL. As noted above, according to the in Interstate Commerce’’ (81 FR 56745). Specifically, according to FMCSA’s current rulemaking implementation The notice proposed allowing members current rulemaking implementation schedule, starting in 2020, FMCSA will of the military, veterans, Reservists and schedule, beginning on February 6, require completion of an ELDT course

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before a driver may take the CDL skills Requirements for participation? Issued on: May 9, 2019. test. In addition, the 2000 TCA proposal Raymond P. Martinez, In the Under 21 Military Pilot included extensive training Administrator. requirements. The DRIVE-Safe Act Program, FMCSA laid out specific requirements that participating motor [FR Doc. 2019–09944 Filed 5–14–19; 8:45 am] contemplates an extensive BILLING CODE 4910–EX–P apprenticeship program under the carriers and drivers must continue to supervision of an experienced co-driver. satisfy. 1. What is the minimum driving 1. What safety standards should DEPARTMENT OF TRANSPORTATION experience that should be required for a participating motor carriers have to driver to be admitted to a pilot? meet? Are the requirements from the Federal Railroad Administration a. Should there be a requirement for Under 21 Military Pilot Program [Docket Number FRA–2019–0039] experience driving non-commercial appropriate? vehicles (e.g., to hold a regular driver’s 2. What safety standards should Notice of Application for Approval of license for some minimum period of participating drivers have to meet? Are Discontinuance or Modification of a time)? the requirements from the Under 21 Railroad Signal System b. Should there be a requirement for Military Pilot program appropriate? experience driving a CMV in intrastate Under part 235 of Title 49 of the Code 3. What action(s) should the Agency of Federal Regulations (CFR) and 49 commerce for some minimum period of consider taking if drivers in this pilot time? If so, what should that period be U.S.C. 20502(a), this document provides program are convicted of violations the public notice that by a document and how should it be measured (e.g., while operating in interstate commerce? time with a CDL, hours driven, vehicle dated May 1, 2019, the Belt Railway miles traveled) and why? 4. At what point should FMCSA Company of Chicago (BRC) petitioned c. Is there a minimum amount of time remove a driver or motor carrier from a the Federal Railroad Administration a younger driver should be required to pilot program? (FRA) seeking approval to discontinue hold a CLP or CDL? If so, how long and Technology Requirements or modify a signal system. FRA assigned why? Are there driver training topics the petition Docket Number FRA–2019– that should be required for younger The DRIVE-Safe Act would require 0039. drivers beyond those covered in the younger drivers to operate vehicles that Applicant: The Belt Railway ELDT final rule? If so, what are they and are equipped with collision avoidance Company of Chicago, Mr. Harold T. why? systems, front-facing video recorders, Kirman, Director Strategic Planning & 2. What kind of supervision, and how and speed limiters set to 65 mph. Compliance, 6900 South Central much, should be required for drivers 1. Should FMCSA include Avenue, Bedford Park, IL 60638–6397. under 21 in a pilot? requirements for safety equipment or Specifically, BRC requests permission 3. Should there be any specific on-board recording systems in a pilot to permanently remove signal training/qualification requirements for program for younger CMV drivers? If so, components within the interlocking at mentors, supervisors or co-drivers? If so, what equipment and why? Rock Island Junction, Chicago, IL, what type of training or qualifications? located on BRC’s Kenton Line at 2. Are the technologies proposed in milepost 21.4. This location is a direct 4. Should FMCSA require that the DRIVE-Safe Act appropriate? participating motor carriers establish a connection between BRC and the formal apprenticeship program 3. Should FMCSA include other Canadian National Railway’s (CN) according to Department of Labor technologies? If so, what technologies Lakefront Subdivision, as referenced in Standards? If so, why? are appropriate? CN’s February 5, 2019, petition in Insurance Docket Number FRA–2019–0010. BRC Operational Requirements notes that if FRA approves CN’s The TCA proposal and the DRIVE- 1. Will insurance companies be petition, rail access to this location will Safe Act both proposed operational willing to cover younger drivers no longer be possible, rendering these limitations for 18–20-year-old drivers operating CMVs in interstate commerce? BRC signal components no longer beyond what is currently required under 2. What is the surcharge for insuring usable at this location. The proposed Federal regulations. In addition, a younger driver? change is to discontinue switch 9 and graduated driver license programs that 3. Will motor carriers be able to afford signal 2LD governing movement to the begin with operational restrictions (e.g., the insurance coverage for these no longer used connection with CN. may not drive between midnight and younger drivers? A copy of the petition, as well as any 5:00 a.m.) have been shown to be written communications concerning the effective for new drivers. With this in Research and Data petition, is available for review online at http://www.regulations.gov and in mind: 1. What type of data could be 1. Should there be time or distance person at the U.S. Department of provided to the Agency to evaluate the restrictions on younger drivers? If so, Transportation’s (DOT) Docket safety performance of drivers under 21 what should these be and why? Operations Facility, 1200 New Jersey who operate in intrastate commerce, 2. Should younger drivers have more Avenue SE, W12–140, Washington, DC e.g., State-managed safety performance limited hours of service, such as a 20590. The Docket Operations Facility data? maximum of 8 hours of driving each is open from 9 a.m. to 5 p.m., Monday day? If so, what limits should be applied 2. Are traffic violations, crashes, and through Friday, except Federal and why? inspection violations adequate to allow Holidays. 3. Should younger drivers be a comparison of safety records? If not, Interested parties are invited to prohibited from transporting hazardous what other safety performance measures participate in these proceedings by materials, passengers, and/or operating should be used? submitting written views, data, or tank vehicles or oversize/overweight 3. What research should the Agency comments. FRA does not anticipate vehicles? Should there be other consider to assess the safety impacts of scheduling a public hearing in restrictions? younger interstate CMV drivers? connection with these proceedings since

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the facts do not appear to warrant a that by a document dated April 9, 2019, final action is taken. Comments received hearing. If any interested parties desire the Port Authority Trans Hudson after that date will be considered if an opportunity for oral comment and a Corporation (PATH) petitioned the practicable. public hearing, they should notify FRA, Federal Railroad Administration (FRA) Anyone can search the electronic in writing, before the end of the for a waiver of compliance from certain form of any written communications comment period and specify the basis provisions of the Federal railroad safety and comments received into any of our for their request. regulations contained at 49 CFR part dockets by the name of the individual All communications concerning these 240, subpart B, Component Elements of submitting the comment (or signing the proceedings should identify the the Certification Process, and subpart D, document, if submitted on behalf of an appropriate docket number and may be Administration of the Certification association, business, labor union, etc.). submitted by any of the following Programs. FRA assigned the petition Under 5 U.S.C. 553(c), DOT solicits methods: Docket Number FRA–2019–0038. comments from the public to better • Website: http:// Specifically, PATH requests relief inform its processes. DOT posts these www.regulations.gov. Follow the online from the requirement of performing one comments, without edit, including any instructions for submitting comments. unannounced test each calendar year for personal information the commenter • Fax: 202–493–2251. each locomotive engineer as required by provides, to www.regulations.gov, as • Mail: Docket Operations Facility, 49 CFR 240.129(e)(1) and 49 CFR described in the system of records U.S. Department of Transportation, 1200 240.303(a), (c). PATH explains that with notice (DOT/ALL–14 FDMS), which can New Jersey Avenue SE, W12–140, the implementation of Positive Train be reviewed at https:// Washington, DC 20590. Control (PTC) on its system, it is www.transportation.gov/privacy. See • Hand Delivery: 1200 New Jersey impossible for an engineer to fail any of also https://www.regulations.gov/ Avenue SE, Room W12–140, the allowable unannounced tests privacyNotice for the privacy notice of Washington, DC 20590, between 9 a.m. because PTC will automatically perform regulations.gov. and 5 p.m., Monday through Friday, the desired function with or without Issued in Washington, DC. intervention from the engineer. except Federal Holidays. John Karl Alexy, Communications received by July 1, A copy of the petition, as well as any written communications concerning the Deputy Associate Administrator for Railroad 2019 will be considered by FRA before Safety. petition, is available for review online at final action is taken. Comments received [FR Doc. 2019–09958 Filed 5–14–19; 8:45 am] after that date will be considered if www.regulations.gov and in person at BILLING CODE 4910–06–P practicable. the U.S. Department of Transportation’s Anyone can search the electronic (DOT) Docket Operations Facility, 1200 New Jersey Avenue SE, W12–140, form of any written communications DEPARTMENT OF TRANSPORTATION and comments received into any of our Washington, DC 20590. The Docket dockets by the name of the individual Operations Facility is open from 9 a.m. Federal Transit Administration submitting the comment (or signing the to 5 p.m., Monday through Friday, document, if submitted on behalf of an except Federal Holidays. Fiscal Year 2019 Competitive Funding association, business, labor union, etc.). Interested parties are invited to Opportunity; Grants for Buses and Bus In accordance with 5 U.S.C. 553(c), DOT participate in these proceedings by Facilities Program solicits comments from the public to submitting written views, data, or comments. FRA does not anticipate AGENCY: Federal Transit Administration better inform its processes. DOT posts (FTA), DOT. these comments, without edit, including scheduling a public hearing in ACTION: Notice of Funding Opportunity any personal information the connection with these proceedings since (NOFO). commenter provides, to the facts do not appear to warrant a www.regulations.gov, as described in hearing. If any interested parties desire SUMMARY: The Federal Transit the system of records notice (DOT/ALL– an opportunity for oral comment and a Administration (FTA) announces the 14 FDMS), which can be reviewed at public hearing, they should notify FRA, opportunity to apply for approximately http://www.dot.gov/privacy. See also in writing, before the end of the $423.35 million in fiscal year (FY) 2019 http://www.regulations.gov/ comment period and specify the basis funds under the Grants for Buses and #!privacyNotice for the privacy notice of for their request. Bus Facilities Program (CFDA#20.526). All communications concerning these regulations.gov. As required by federal public proceedings should identify the transportation law and subject to Issued in Washington, DC. appropriate docket number and may be funding availability, funds will be John Karl Alexy, submitted by any of the following awarded competitively to assist in the Acting Associate Administrator for Railroad methods: Safety. • Website: http:// financing of capital projects to replace, rehabilitate, purchase or lease buses and [FR Doc. 2019–09959 Filed 5–14–19; 8:45 am] www.regulations.gov. Follow the online related equipment, and to rehabilitate, BILLING CODE 4910–06–P instructions for submitting comments. • Fax: 202–493–2251. purchase, construct or lease bus-related • Mail: Docket Operations Facility, facilities. Projects may include costs DEPARTMENT OF TRANSPORTATION U.S. Department of Transportation, 1200 incidental to the acquisition of buses or New Jersey Avenue SE, W12–140, to the construction of facilities, such as Federal Railroad Administration Washington, DC 20590. the costs of related workforce • Hand Delivery: 1200 New Jersey development and training activities, and [Docket Number FRA–2019–0038] Avenue SE, Room W12–140, project administration expenses. FTA may award additional funds if they are Petition for Waiver of Compliance Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, made available to the program prior to Under part 211 of Title 49 Code of except Federal Holidays. the announcement of project selections. Federal Regulations (CFR), this Communications received by July 1, DATES: Complete proposals must be document provides the public notice 2019 will be considered by FRA before submitted electronically through the

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GRANTS.GOV ‘‘APPLY’’ function by engaged in public transportation. In nonprofit organizations engaged in 11:59 p.m. Eastern Time on June 21, accordance with 49 U.S.C. 5339(b)(2), public transportation. 2019. Prospective applicants should FTA will ‘‘consider the age and Under 49 U.S.C. 5339(b)(3), States initiate the process by promptly condition of buses, bus fleets, related may submit a statewide application on registering on the GRANTS.GOV equipment, and bus-related facilities’’ in behalf of public agencies or private website to ensure completion of the selecting projects for funding. FTA may nonprofit organizations engaged in application process before the prioritize projects that demonstrate how public transportation in rural areas or submission deadline. Instructions for they will address significant repair and for other areas for which a State applying can be found on FTA’s website maintenance needs, improve the safety allocates funds. Except for projects at http://transit.dot.gov/howtoapply and of transit systems and deploy proposed by Indian tribes, all proposals in the ‘‘FIND’’ module of connective projects that include for projects in rural (non-urbanized) GRANTS.GOV. advanced technologies to connect bus areas must be submitted by a State, The GRANTS.GOV funding systems with other networks. either individually or as a part of a opportunity ID is FTA–2019–003–TPM. statewide application. States and other B. Federal Award Information Mail and fax submissions will not be eligible applicants may also submit accepted. Federal public transportation law at consolidated proposals for projects in 49 U.S.C. 5338(a)(2)(M) authorizes urbanized areas. The submission of a FOR FURTHER INFORMATION CONTACT: statewide or consolidated urbanized Mark Bathrick, FTA Office of Program $267,059,980 in FY 2019 funds for the Section 5339(b) Grants for Buses and area application shall not preclude the Management, 202–366–9955, or submission and consideration of any [email protected]. Bus Facilities Program. The Consolidated Appropriations Act, 2019 application from other eligible SUPPLEMENTARY INFORMATION: appropriated an additional recipients in an urbanized area in a Table of Contents $160,000,000 for the Grants for Buses State. Proposals may contain projects to and Bus Facilities Program. After the be implemented by the recipient or its A. Program Description mandatory oversight takedown of subrecipients. B. Federal Award Information To be considered eligible, applicants C. Eligibility Information $3,840,450 and the addition of $130,710 D. Application and Submission Information in unallocated FY 2018 program must be able to demonstrate the E. Application Review funding, FTA is announcing the requisite legal, financial and technical F. Review and Selection Process availability of $423,350,240 for the capabilities to receive and administer G. Federal Award Administration Grants for Buses and Bus Facilities Federal funds under this program. H. Technical Assistance and Other Program Program through this notice. 2. Cost Sharing or Matching Information As required under 49 U.S.C. I. Federal Awarding Agency Contacts 5339(b)(5), a minimum of 10 percent of The maximum federal share for projects selected under the Grants for A. Program Description the amount awarded under the Grants for Buses and Bus Facilities Program Buses and Bus Facilities Program is 80 Section 5339(b) of Title 49, United will be awarded to projects located in percent of the net project cost (i.e., the States Code, as amended by the Fixing rural areas. As required by 49 U.S.C. local amount should be at least 20 America’s Surface Transportation 5339(b)(8), no single grantee will be percent of the net project cost, not 20 (FAST) Act (Pub. L. 114–94, Dec. 4, awarded more than 10 percent of the percent of the requested grant amount), 2015), authorizes FTA to award funds amounts made available. FTA may unless noted below by one of the for the Grants for Buses and Bus further cap the amount a single exceptions. Facilities Program through a a. The maximum Federal share is 85 recipient or State may receive as part of competitive process, as described in this percent of the net project cost of the selection process. In FY 2018, for notice, for capital projects to replace, acquiring vehicles (including clean-fuel example, the largest amount awarded to rehabilitate, purchase or lease buses and or alternative fuel vehicles) that are a single applicant was $11,000,000 and related equipment and to rehabilitate, compliant with the Clean Air Act (CAA) no State received more than 8 percent purchase, construct or lease bus-related and/or the Americans with Disabilities of the total funding available. facilities. Act (ADA) of 1990. FTA will grant pre-award authority to The purpose of the Grants for Buses b. The maximum Federal share is 90 incur costs for selected projects and Bus Facilities Program is to assist in percent of the net project cost of beginning on the date that project the financing of capital projects for acquiring, installing or constructing selections are announced. Funds are buses and bus facilities, including vehicle-related equipment or facilities only available for projects that have not replacing, rehabilitating, purchasing, or (including clean fuel or alternative-fuel incurred costs prior to the selection of leasing buses or related equipment, and vehicle-related equipment or facilities) projects, and will remain available for rehabilitating, purchasing, constructing, that are required by the ADA of 1990, obligation for three Federal fiscal years, or leasing bus-related facilities. or that are necessary to comply with or not including the year in which the The Grants for Buses and Bus maintaining compliance with the Clean funds are allocated to projects. Facilities Program provides funds under Air Act. The award recipient must 49 U.S.C. 5339(b)(1), to eligible C. Eligibility Information itemize the cost of specific, discrete, applicants including designated vehicle-related equipment associated 1. Eligible Applicants recipients that allocate funds to fixed with compliance with ADA or CAA to route bus operators, states or local Under 49 U.S.C. 5339(b)(1), eligible be eligible for the maximum 90 percent governmental entities that operate fixed applicants include designated recipients Federal share for these costs. route bus service, and Indian tribes. that allocate funds to fixed route bus Eligible sources of local match FTA also may award grants to eligible operators, states or local governmental include the following: Cash from non- recipients for projects to be undertaken entities that operate fixed route bus Government sources other than by subrecipients. Eligible subrecipients service, and Indian tribes. Eligible revenues from providing public include all otherwise eligible applicants subrecipients include all otherwise transportation services; revenues and also private nonprofit organizations eligible applicants and also private derived from the sale of advertising and

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concessions; amounts received under a 2. Content and Form of Application The SF424 Mandatory Form and the service agreement with a State or local Submission Supplemental Form will prompt social service agency or private social applicants for the required information, service organization; revenues generated A complete proposal submission including: consists of two forms: The SF424 from value capture financing a. Applicant Name Application for Federal Assistance and mechanisms; or funds from an b. Dun and Bradstreet (D&B) Data the FY 2019 Grants for Buses and Bus undistributed cash surplus; replacement Universal Numbering System (DUNS) Facilities Program supplemental form. or depreciation cash fund or reserve; or number new capital. In addition, transportation The supplemental form and any c. Key contact information (including development credits or documentation supporting documents must be attached contact name, address, email address, of in-kind match may substitute for to the ‘‘Attachments’’ section of the and phone) local match if identified in the SF424. A complete application must d. Congressional district(s) where application. include responses to all sections of the project will take place SF424 Application for Federal e. Project Information (including title, If an applicant proposes a Federal Assistance and the supplemental form, share greater than 80 percent, the an executive summary, and type) unless indicated as optional. The f. A detailed description of the need for application must clearly explain why information on the supplemental form the project is eligible for the proposed the project will be used to determine applicant and g. A detailed description on how the Federal share. project eligibility for the program, and project will support the Bus 3. Eligible Projects to evaluate the proposal against the Infrastructure Program’s objectives selection criteria described in part E of h. Evidence that the project is consistent Under 49 U.S.C. 5339(b)(1), eligible this notice. with local and regional planning projects are capital projects to replace, FTA will accept only one objectives rehabilitate purchase, or lease buses, supplemental form per SF424 i. Evidence that the applicant can vans, and related equipment, and submission. FTA encourages States and provide the local cost share capital projects to rehabilitate, purchase, other applicants to consider submitting j. A description of the technical, legal construct, or lease bus-related facilities. a single supplemental form that and financial capacity of the applicant Recipients are permitted to use up to includes multiple activities to be k. A detailed project budget 0.5 percent of their requested grant evaluated as a consolidated proposal. If l. An explanation of the scalability of award for workforce development a State or other applicant chooses to the project activities eligible under 49 U.S.C. submit separate proposals for individual m. Details on the local matching funds n. A detailed project timeline 5314(b) and an additional 0.5 percent consideration by FTA, each proposal for costs associated with training at the must be submitted using a separate 3. Unique Entity Identifier and System National Transit Institute, to pay not SF424 and supplemental form. for Award Management (SAM) more than 80 percent of the cost of Applicants may attach additional Each applicant is required to: (1) Be eligible activities (see 49 U.S.C. supporting information to the SF424 5314(b)(4) and 49 U.S.C. 5314(c)(4)(A)). registered in SAM before submitting an submission, including but not limited to application; (2) provide a valid unique Applicants must identify the proposed letters of support, project budgets, fleet use of funds for these activities in the entity identifier in its application; and status reports or excerpts from relevant (3) continue to maintain an active SAM project proposal and identify them planning documents. Supporting separately in the project budget. registration with current information at documentation must be described and all times during which the applicant has D. Application and Submission referenced by file name in the an active Federal award or an Information appropriate response section of the application or plan under consideration supplemental form, or it may not be 1. Address by FTA. These requirements do not reviewed. apply if the applicant: (1) Is an Applications must be submitted Information such as applicant name, individual; (2) is excepted from the electronically through GRANTS.GOV. Federal amount requested, local match requirements under 2 CFR 25.110(b) or General information for submitting amount, description of areas served, etc. (c); or (3) has an exception approved by applications through GRANTS.GOV can may be requested in varying degrees of FTA under 2 CFR 25.110(d). FTA may be found at https://www.transit.dot.gov/ detail on both the SF424 and not make an award until the applicant funding/grants/applying/applying-fta- Supplemental Form. Applicants must has complied with all applicable unique funding along with specific instructions fill in all fields unless stated otherwise entity identifier and SAM requirements. for the forms and attachments required on the forms. Applicants should not If an applicant has not fully complied for submission. Mail and fax place N/A or ‘‘refer to attachment’’ in with the requirements by the time FTA submissions will not be accepted. A lieu of typing in responses in the field is ready to make an award, FTA may complete proposal submission consists sections. If information is copied into determine that the applicant is not of two forms: The SF424 Application for the supplemental form from another qualified to receive an award and use Federal Assistance (downloaded from source, applicants should verify that that determination as a basis for making GRANTS.GOV) and the supplemental pasted text is fully captured on the a Federal award to another applicant. form for the FY 2019 Grants for Buses supplemental form and has not been All applicants must provide a unique and Bus Facilities Program (downloaded truncated by the character limits built entity identifier provided by SAM. SAM from GRANTS.GOV or the FTA website into the form. Applicants should use registration takes approximately 3–5 at www.transit.dot.gov/busprogram). both the ‘‘Check Package for Errors’’ and business days, but FTA recommends Applicants may also attach additional the ‘‘Validate Form’’ validation buttons allowing ample time, up to several supporting information. Failure to on both forms to check all required weeks, for completion of all steps. For submit the information as required can fields on the forms, and ensure that the additional information on obtaining a delay or prevent review of the federal and local amounts specified are unique entity identifier, please visit application. consistent. www.sam.gov.

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4. Submission Dates and Times 6. Other Submission Requirements project conforms to FTA’s spare ratio Applicants are encouraged to identify guidelines. Project proposals must be submitted b. For bus facility and equipment scaled funding options in case electronically through GRANTS.GOV by projects (replacement, rehabilitation insufficient funding is available to fund 11:59 p.m. Eastern on June 21, 2019. and/or expansion): Applicants must a project at the full requested amount. Mail and fax submissions will not be provide information on the age and If an applicant indicates that a project accepted. condition of the asset to be rehabilitated is scalable, the applicant must provide FTA urges applicants to submit or replaced relative to its minimum an appropriate minimum funding useful life. applications at least 72 hours prior to amount that will fund an eligible project the due date to allow time to correct any that achieves the objectives of the 2. Demonstration of Benefits problems that may have caused either program and meets all relevant program Applications will be evaluated based Grants.gov or FTA systems to reject the requirements. The applicant must on how well they describe how the submission. Proposals submitted after provide a clear explanation of how the proposed project will improve the the deadline will only be considered project budget would be affected by a condition of the transit system, improve under extraordinary circumstances not reduced award. FTA may award a lesser the reliability of transit service for its under the applicant’s control. Deadlines amount whether or not a scalable option riders and enhance access and mobility will not be extended due to scheduled is provided. within the service area. website maintenance. GRANTS.GOV E. Application Review System Condition: FTA will evaluate scheduled maintenance and outage the potential for the project to improve times are announced on the FTA will evaluate project proposals the condition of the transit system by GRANTS.GOV website. for the Grants for Buses and Bus repairing and/or replacing assets that Within 48 hours after submitting an Facilities Program based on the criteria are in poor condition or have surpassed electronic application, the applicant described in this notice. Projects will be their minimum or intended useful life should receive two email messages from evaluated primarily on the responses benchmarks, lowering the average age of GRANTS.GOV: (1) Confirmation of provided in the supplemental form. vehicles in the fleet and/or reducing the successful transmission to Additional information may be cost of maintaining outdated vehicles, GRANTS.GOV and (2) confirmation of provided to support the responses; facilities and equipment. successful validation by GRANTS.GOV. however, any additional documentation Service Reliability: FTA will evaluate If confirmations of successful validation must be directly referenced on the the potential for the project to reduce are not received or a notice of failed supplemental form, including the file the frequency of breakdowns or other validation or incomplete materials is name where the additional information service interruptions caused by the age received, the applicant must address the can be found. and condition of the agency’s bus fleet. reason for the failed validation, as 1. Demonstration of Need Applicants should document their described in the email notice, and current service reliability metrics and resubmit before the submission Applications will be evaluated based benchmark goals, including their deadline. If making a resubmission for on the quality and extent to which they strategy for improving reliability with or any reason, applicants must include all demonstrate how the proposed project without the award of Bus and Bus original attachments regardless of which will address an unmet need for capital Facilities Program funds. attachments were updated and check investment in bus vehicles and/or Enhanced Access and Mobility: FTA the box on the supplemental form supporting facilities. For example, an will evaluate the potential for the indicating this is a resubmission. applicant may demonstrate an excessive project to improve access and mobility reliance on vehicles that are beyond for the transit riding public, such as Applicants are encouraged to begin their intended service life, insufficient through increased reliability, improved the process of registration on the maintenance facilities due to size or headways, creation of new GRANTS.GOV site well in advance of condition, a vehicle fleet that is transportation choices or eliminating the submission deadline. Registration is insufficient to meet current ridership gaps in the current route network. a multi-step process, which may take demands or passenger facilities that are Proposed benefits should be based on several weeks to complete before an insufficient for their current use. documented ridership demand and be application can be submitted. Registered Applicants should address whether the well-described or documented through a applicants may still be required to take project represents a one-time or periodic study or route planning proposal. steps to keep their registration up to need that cannot reasonably be funded date before submissions can be made from FTA formula program allocations 3. Planning and Local/Regional successfully: (1) Registration in the and State or local resources. As a part Prioritization System for Award Management (SAM) of the response for demonstration of Applicants must demonstrate how the is renewed annually; and, (2) persons need, applicants should provide the proposed project will be consistent with making submissions on behalf of the following information: local and regional long-range planning Authorized Organization Representative a. For bus projects (replacement, documents and local government (AOR) must be authorized in rehabilitation or expansion): Applicants priorities. This will involve assessing GRANTS.GOV by the AOR to make must provide information on the age, whether the project is consistent with submissions. condition and performance of the the transit priorities identified in the 5. Funding Restrictions asset(s) to be replaced or rehabilitated long range plan; and/or contingency/ by the proposed project. For service illustrative projects included in that Funds under this NOFO cannot be expansion requests, applicants must plan; or the locally developed human used to reimburse applicants for provide information on the proposed services public transportation otherwise eligible expenses incurred service expansion and the benefits for coordinated plan. Applicants are not prior to FTA award of a Grant transit riders and the community from required to submit copies of such plans, Agreement until FTA has issued pre- the new service. For all vehicle projects, but should describe how the project will award authority for selected projects. the proposal must address how the support regional goals. Additional

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consideration will be given to require an Environmental Assessment or (D) Using innovative approaches to applications including support letters Environmental Impact Statement under improve safety and expedite project from local and regional planning the National Environmental Policy Act delivery; and organizations, local government of 1969 (NEPA), as amended. The (E) Holding grant recipients officials, public agencies and/or non- proposal must also state whether grant accountable for their performance and profit or private sector partners attesting funds can be obligated within 12 achieving specific, measurable to the consistency of the proposed months from time of award, if selected, outcomes identified by grant applicants. project with these plans. Applicants and indicate the timeframe under which Prior to making an award, FTA is may also address how the proposed the Metropolitan Transportation required to review and consider any project will impact overall system Improvement Program and/or Statewide information about the applicant that is performance, asset management Transportation Improvement Program in the Federal Awardee Performance performance or specific performance can be amended to include the proposed and Integrity Information Systems measures tracked and monitored by the project. Additional consideration will (FAPIIS) accessible through SAM. An applying entity to demonstrate how the be given to projects for which grant applicant, may review and comment on proposed project will address local and funds can be obligated within 12 information about itself that a Federal regional planning priorities. months from time of award. awarding agency previously entered. Evidence of additional local or In assessing whether the proposed The FTA Administrator will regional prioritization (i.e., Statewide implementation plans are reasonable determine the final selection of projects Transportation Improvement Plan and and complete, FTA will review the for program funding. In determining the Long Range Transportation Plan) should proposed project implementation plan, allocation of program funds, FTA may include letters of support for the project including all necessary project consider geographic diversity, diversity from local government officials, public milestones and the overall project in the size of the transit systems agencies (i.e., Metropolitan Planning timeline. For projects that will require receiving funding, the applicant’s Organizations) and non-profit or private formal coordination, approvals or receipt of other competitive awards, sector partners. permits from other agencies or project projects located in or that support 4. Local Financial Commitment partners, the applicant must public transportation service in a demonstrate coordination with these qualified opportunity zone designated Applicants must identify the source of organizations and their support for the pursuant to 26 U.S.C. 1400Z–1, and the the local cost share and describe project, such as through letters of percentage of local share provided. Not whether such funds are currently support. less than 10 percent of the Buses and available for the project or will need to Bus Facilities Program funds will be be secured if the project is selected for 6. Technical, Legal and Financial Capacity distributed to projects in rural areas. In funding. FTA will consider the addition, FTA will not award more than availability of the local cost share as Applicants must demonstrate that 10 percent of the funds to a single evidence of local financial commitment they have the technical, legal and grantee. to the project. Additional consideration financial capacity to undertake the will be given to those projects for which project. FTA will review relevant G. Federal Award Administration local funds have already been made oversight assessments and records to 1. Federal Award Notice available or reserved. Applicants should determine whether there are any submit evidence of the availability of outstanding legal, technical or financial Final project selections will be posted funds for the project, for example by issues with the applicant that would on the FTA website. FTA will also including a board resolution, letter of affect the outcome of the proposed publish a list of the selected projects, a support from the State or other project. Applicants with outstanding summary of final scores for selected documentation of the source of local legal, technical or financial compliance projects, Federal award amounts and funds such as a budget document issues from an FTA compliance review recipients in the Federal Register. highlighting the line item or section or Federal Transit grant-related Single Selected recipients should contact their committing funds to the proposed Audit finding must explain how FTA regional offices for additional project. In addition, as evidence of local corrective actions taken will mitigate information regarding allocations for financial commitment, an applicant may negative impacts on the proposed projects under the Grants for Buses and propose a local cost share that is greater project. Bus Facilities Program. than the minimum requirement. At the time the project selections are Additional consideration will be given F. Review and Selection Process announced, FTA will extend pre-award to those projects that propose a larger In addition to other FTA staff that authority for the selected projects. There percentage of local cost share. may review the proposals, a technical is no blanket pre-award authority for evaluation committee will evaluate these projects before announcement. 5. Project Implementation Strategy proposals based on the published 2. Award Administration Projects will be evaluated based on evaluation criteria. After applying the the extent to which the project is ready above criteria, the FTA Administrator Funds under the Grants for Buses and to implement within a reasonable will consider the following key Bus Facilities Program are available to period of time and whether the Departmental objectives: designated recipients that allocate funds applicant’s proposed implementation (A) Supporting economic vitality at to fixed route bus operators, state or plans are reasonable and complete. the national and regional level; local governmental entities that operate In assessing whether the project is (B) Utilizing alternative funding fixed route bus service, and Indian ready to implement within a reasonable sources and innovative financing tribes. There is no minimum or period of time, FTA will consider models to attract non-Federal sources of maximum grant award amount apart whether the project qualifies for a infrastructure investment; from the restriction that FTA will not Categorical Exclusion, or whether the (C) Accounting for the life-cycle costs award more than ten percent of the required environmental work has been of the project to promote the state of funds to a single grantee; however, FTA initiated or completed for projects that good repair; intends to fund as many meritorious

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projects as possible. Only proposals domestic content for rolling stock. For certification letter. Grant recipients from eligible recipients for eligible FY 2019, the cost of components and must verify each entity’s compliance activities will be considered for funding. subcomponents produced in the United with these requirements before Due to funding limitations, proposals States must be more than 65 percent of accepting its bid. A list of compliant, that are selected for funding may receive the cost of all components. For FY 2020 certified TVMs is posted on FTA’s web less than the amount originally and beyond, the cost of components and page at https://www.fta.dot.gov/ requested. In those cases, applicants subcomponents produced in the United regulations-and-guidance/civil-rights- must be able to demonstrate that the States must be more than 70 percent of ada/eligible-tvms-list. Please note that proposed projects are still viable stand- the cost of all components. There is no this list is nonexclusive and recipients change to the requirement that final alone projects that can be completed must contact FTA before accepting bids assembly of rolling stock must occur in with the amount awarded. from entities not listed on this Web the United States. The Buy America 3. Administrative and National Policy requirements can be found in 49 CFR posting. Recipients may also establish Requirements part 661 and additional guidance on the project-specific DBE goals for vehicle procurements. FTA will provide a. Pre-Award Authority implementation of the phases increase in domestic content can be found at 81 additional guidance as grants are The FTA will issue specific guidance FR 60278 (Sept. 1, 2016). Any proposal awarded. For more information on DBE to recipients regarding pre-award that will require a waiver must identify requirements, please contact Janelle authority at the time of selection. The in the application the items for which Hinton, Office of Civil Rights, 202–366– FTA does not provide pre-award a waiver will be sought. Applicants 9259, email: [email protected]. authority for competitive funds until should not proceed with the expectation e. Planning projects are selected and even then there that waivers will be granted, nor should are Federal requirements that must be applicants assume that selection of a FTA encourages applicants to notify met before costs are incurred. For more project under the Grants for Buses and information about FTA’s policy on pre- the appropriate State Departments of Bus Facilities Program that includes a Transportation and MPOs in areas likely award authority, please see the FY 2018 partnership with a manufacturer, Apportionment Notice published on to be served by the project funds made vendor, consultant, or other third party available under this program. Selected July 16, 2018 which can be accessed at constitutes a waiver of the Buy America projects must be incorporated into the http://www.gpo.gov/fdsys/pkg/FR-2018- requirements applicable at the time the 07-16/pdf/2018-14989.pdf. project is undertaken. Consistent with long-range plans and transportation improvement programs of States and b. Grant Requirements Executive Order 13858 Strengthening Buy-American Preferences for metropolitan areas before they are If selected, awardees will apply for a Infrastructure Projects, signed by eligible for FTA funding. grant through FTA’s Transit Award President Trump on January 31, 2019, f. Standard Assurances Management System (TrAMS). applicants should maximize the use of Recipients of Grants for Buses and Bus goods, products, and materials By submitting a grant application, the Facilities Program funding in urban produced in the United States, in applicant assures that it will comply areas are subject to the grant Federal procurements and through the with all applicable federal statutes, requirements of the Section 5307 terms and conditions of Federal regulations, executive orders, directives, Urbanized Area Formula Grant program, financial assistance awards. FTA circulars and other federal including those of FTA Circular 9030.1E. Recipients of funding in rural d. Disadvantaged Business Enterprise administrative requirements in carrying out any project supported by the FTA areas are subject to the grant FTA requires that its recipients requirements of the Section 5311 receiving planning, capital and/or grant. Further, the applicant Formula Grants for Rural Areas operating assistance that will award acknowledges that it is under a Program, including those of FTA prime contracts exceeding $250,000 in continuing obligation to comply with Circular 9040.1G. All recipients must FTA funds comply with the the terms and conditions of the grant follow the Grants Management Disadvantaged Business Enterprise agreement issued for its project with Requirements of FTA Circular 5010.1E, (DBE) program regulations at 49 CFR FTA. The applicant understands that and the labor protections of 49 U.S.C. part 26. The rule requires that, prior to Federal laws, regulations, policies and 5333(b). Technical assistance regarding bidding on any FTA-assisted vehicle administrative practices might be these requirements is available from procurement, entities that manufacture modified from time to time and may each FTA regional office. vehicles or perform post-production affect the implementation of the project. alterations or retrofitting must submit a c. Buy America The applicant agrees that the most DBE Program plan and annual goal recent Federal requirements will apply The FTA requires that all capital methodology to FTA. Further, to the to the project, unless FTA issues a procurements meet FTA’s Buy America extent that a vehicle remanufacturer is written determination otherwise. The requirements per 49 U.S.C. 5323(j), responding to a solicitation for new or applicant must submit the Certifications which require that all iron, steel, or remanufactured vehicles with a vehicle and Assurances before receiving a grant, manufactured products be produced in to which the remanufacturer has if it does not have current certifications the United States, to help create and provided post-production alterations or on file. protect manufacturing jobs in the retro-fitting (e.g., replacing major United States. The Grants for Buses and components such as engine to provide g. Reporting Bus Facilities Program will have a a ‘‘like new’’ vehicle), the vehicle significant economic impact toward remanufacturer is considered a transit Post-award reporting requirements meeting the objectives of the Buy vehicle manufacturer and must also include the electronic submission of America law. The FAST Act amended comply with the DBE regulations. Federal Financial Reports and Milestone the Buy America requirements to FTA will then issue a transit vehicle Progress Reports in FTA’s electronic provide for a phased increase in the manufacturer (TVM) concurrence/ grants management system.

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H. Technical Assistance and Other U.S.-CHINA ECONOMIC AND Background: This is the fifth public Program Information SECURITY REVIEW COMMISSION hearing the Commission will hold This program is not subject to during its 2019 report cycle. This Executive Order 12372, Notice of Open Public Hearing hearing will examine China’s ‘‘Intergovernmental Review of Federal AGENCY: U.S.-China Economic and development of artificial intelligence, Programs.’’ FTA will consider Security Review Commission. new materials, and energy storage, applications for funding only from renewable energy, and nuclear power. It ACTION: Notice of open public hearing. eligible recipients for eligible projects will assess China’s capabilities in listed in Section C. Complete SUMMARY: Notice is hereby given of the producing and commercializing these applications must be submitted through following hearing of the U.S.-China technologies vis-a`-vis the United States GRANTS.GOV by 11:59 p.m. eastern Economic and Security Review and its ambitions to export these time on June 21, 2019. For assistance Commission. technologies and shape their global with GRANTS.GOV please contact The Commission is mandated by governance in ways that disadvantage GRANTS.GOV by phone at 1–800–518– Congress to investigate, assess, and the United States. The hearing will also 4726 or by email at [email protected]. report to Congress annually on ‘‘the consider China’s potential military Contact information for FTA’s regional national security implications of the application of these technologies and offices can be found on FTA’s website economic relationship between the strategic implications for the United at https://www.transit.dot.gov/about/ United States and the People’s Republic States. The hearing will be co-chaired regional-offices/regional-offices. of China.’’ Pursuant to this mandate, the by Vice Chairman Robin Cleveland and I. Federal Awarding Agency Contacts Commission will hold a public hearing Commissioner Thea Lee. Any interested in Washington, DC on June 7, 2019 on For further information concerning party may file a written statement by ‘‘Technology, Trade, and Military-Civil this notice, please contact the Grants for June 7, 2019 by mailing to the contact Fusion: China’s Pursuit of Artificial Buses and Bus Facilities Program above. A portion of each panel will Intelligence, New Materials, and New manager, Mark Bathrick, via email at include a question and answer period Energy.’’ [email protected] or by phone at between the Commissioners and the 202–366–9955. A TDD is available for DATES: The hearing is scheduled for witnesses. individuals who are deaf or hard of Thursday, June 7, 2019 at 9:30 a.m. Authority: Congress created the U.S.- hearing at 800–877–8339. In addition, ADDRESSES: TBD, Washington, DC. A China Economic and Security Review FTA will post answers to questions and detailed agenda for the hearing will be Commission in 2000 in the National Defense requests for clarifications on FTA’s posted on the Commission’s website at Authorization Act (Pub. L. 106–398), as website at http://transit.dot.gov/ www.uscc.gov. Also, please check the amended by Division P of the Consolidated busprogram. FTA staff will also conduct Commission’s website for possible Appropriations Resolution, 2003 (Pub. L. a webinar for potential applicants to changes to the hearing schedule. 108–7), as amended by Public Law 109–108 learn more about the program and Reservations are not required to attend (November 22, 2005), as amended by Public submittal process. the hearing. Law 113–291 (December 19, 2014). To ensure the receipt of accurate FOR FURTHER INFORMATION CONTACT: Any information about eligibility or the Dated: May 10, 2019. member of the public seeking further program, applicants with questions are information concerning the hearing Daniel W. Peck, encouraged to contact FTA directly, should contact Leslie Tisdale Reagan, Executive Director, U.S.-China Economic and rather than through intermediaries or 444 North Capitol Street NW, Suite 602, Security Review Commission. third parties. Washington, DC 20001; telephone: 202– [FR Doc. 2019–10011 Filed 5–14–19; 8:45 am] K. Jane Williams, 624–1496, or via email at lreagan@ BILLING CODE 1137–00–P Acting Administrator. uscc.gov. Reservations are not required [FR Doc. 2019–09439 Filed 5–14–19; 8:45 am] to attend the hearing. BILLING CODE P SUPPLEMENTARY INFORMATION:

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Part II

Department of the Interior

Bureau of Safety and Environmental Enforcement 30 CFR Part 250 Oil and Gas and Sulfur Operations in the Outer Continental Shelf—Blowout Preventer Systems and Well Control Revisions; Final Rule

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DEPARTMENT OF THE INTERIOR for procedural questions contact Kirk onshore; a strictly enforced 0.5 pounds Malstrom, Regulations and Standards per gallon (ppg) drilling margin; Bureau of Safety and Environmental Branch, (202) 258–1518, or by email: requirements that may be inconsistent Enforcement [email protected]. with American Petroleum Institute (API) SUPPLEMENTARY INFORMATION: Standard 53; and requirements for 30 CFR Part 250 certain BSEE approvals during Executive Summary [Docket ID: BSEE–2018–0002; 190E1700D2 cementing operations that result in ET1SF0000.EAQ000 EEEE500000] In the immediate aftermath of the unnecessary delay). Other stakeholders Deepwater Horizon incident in 2010, suggested that certain regulatory RIN 1014–AA39 BSEE adopted several recommendations requirements do not properly account from multiple investigation teams, and for advances or limitations in Oil and Gas and Sulfur Operations in promulgated multiple rulemakings technology and processes. Further, the Outer Continental Shelf—Blowout including the Drilling Safety Rule (Oct. BSEE received numerous questions Preventer Systems and Well Control 2010), Safety and Environmental regarding the proper interpretation and Revisions Management Systems (SEMS) I (Oct. application of provisions viewed to be AGENCY: Bureau of Safety and 2010), and SEMS II (April 2013), in unclear or ambiguous, requiring BSEE to Environmental Enforcement, Interior. order to improve the safety of offshore provide substantial informal guidance operations. Subsequently, BSEE ACTION: Final rule. regarding the terms of the 2016 WCR. published the Blowout Preventer BSEE posted approximately 100 SUMMARY: The Bureau of Safety and Systems and Well Control final rule (the responses to questions regarding the Environmental Enforcement (BSEE) is WCR) on April 29, 2016. The 2016 WCR 2016 WCR provisions on the BSEE web revising existing regulations for well consolidated the equipment and page at https://www.bsee.gov/guidance- control and blowout preventer systems. operational requirements for well and-regulations/regulations/well- This final rule revises requirements for control into one part of BSEE’s control-rule. well design, well control, casing, regulations; enhanced blowout Accordingly, after thoroughly cementing, real-time monitoring (RTM), preventer (BOP), well design, and well- reexamining the 2016 WCR, experiences and subsea containment. These control requirements; and incorporated from the implementation process, and revisions modify regulations pertaining certain industry consensus standards. BSEE policy, BSEE is amending, to offshore oil and gas drilling, Most of the 2016 WCR provisions revising, or removing current regulatory completions, workovers, and became effective on July 28, 2016. provisions that create unnecessary decommissioning in accordance with Although the 2016 WCR addressed a burdens on stakeholders while still Executive and Secretary of the Interior’s significant number of issues that were maintaining safety and environmental Orders to ensure safety and identified during the analysis of the protection. On May 11, 2018, BSEE environmental protection, while Deepwater Horizon incident, BSEE published in the Federal Register a correcting errors and reducing certain recognized that BOP equipment and proposed rule to revise certain unnecessary regulatory burdens systems continue to improve provisions of the 2016 WCR (83 FR imposed under the existing regulations. technologically and well control 22128) (the ‘‘proposed rule’’) and to Accordingly, after thoroughly processes also evolve. In 2017, Congress solicit comments on several additional reexamining the 2016 Blowout also encouraged BSEE to: issues. In response to the proposed rule, BSEE received over 265 sets of Preventer Systems and Well Control evaluate information learned from additional final rule (WCR), experiences from the stakeholder input and ongoing technical comments containing individually implementation process, and various conversations to inform implementation of submitted comments and multiple BSEE policies (notices to lessees, this rule. To the extent additional similar group form letters, totaling over answers to frequently asked questions, information warrants revisions to the rule 118,000 submittals. Comments included that require public notice and comment, the submittals from individual entities (e.g., and conditions of approval), BSEE will Bureau is encouraged to follow that process amend, revise, or remove certain current companies, industry organizations, non- to ensure that offshore operations promote governmental organizations, State regulatory provisions that create safety and protect the environment in a unnecessary burdens on stakeholders, technically feasible manner.1 governments, and private citizens). All while still maintaining safety and relevant comments are posted at the Additionally, since the WCR became Federal eRulemaking portal: http:// environmental protection. The final effective in 2016, BSEE has continued to regulations also address various issues www.regulations.gov. To access the engage with the offshore oil and gas comments at that website, enter BSEE– and errors that BSEE identified during industry, Standards Development the implementation of the 2016 WCR. 2018–0002 in the Search box. The final Organizations (SDOs), and other regulatory changes reflect BSEE’s DATES: This final rule becomes effective stakeholders. During the course of these consideration of the public comments on July 15, 2019. BSEE will defer engagements, BSEE identified areas for received on both the 2016 WCR and the compliance with certain provisions of regulatory improvement and proposed rule, and stakeholders’ the final rule, however, until the times stakeholders expressed a variety of recommendations pertaining to the specified in those provisions and as concerns regarding the implementation requirements applicable to offshore oil described in Section II of this preamble. of the 2016 WCR. For instance, oil and and gas drilling, completions, The incorporation by reference of natural gas operators raised concerns workovers, and decommissioning. This certain publications listed in the rule is about certain regulatory provisions that rule revises regulatory provisions in 30 approved by the Director of the Federal they assert impose undue burdens on CFR part 250, subparts A, B, D, E, F, G, Register as of July 15, 2019. their industry, but do not significantly and Q on topics such as, but not limited FOR FURTHER INFORMATION CONTACT: For enhance worker safety or environmental to: technical questions contact Fred Brink, protection (e.g., how real time Notifications and submittals to BSEE; Gulf of Mexico Region (GOMR) District monitoring is monitored and utilized Drilling margins; Operations Support, (504) 736–2400, or Lift boats; by email: [email protected]; 1 See n. 10, supra. Real-time monitoring;

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BSEE Approved Verification Table of Contents EIS Environmental Impact Statement Organizations (BAVOs); E.O. Executive Order I. Background EOR End of Operations Report Accumulator systems; A. BSEE Statutory and Regulatory BOP and control station testing; ESA Endangered Species Act Authority and Responsibilities FOIA Freedom of Information Act Coiled tubing; and B. Purpose and Summary of the Mechanical barriers (packers and FONSI Finding of No Significant Impact Rulemaking FRIA Final Regulatory Impact Analysis bridge plugs). C. Summary of Documents Incorporated by FSHR Free Standing Hybrid Riser BSEE utilized the best available data Reference GDP Gross Domestic Product to analyze the economic impacts of the D. Executive and Secretary’s Orders HPHT High Pressure High Temperature final changes. That analysis indicates E. Stakeholder Engagement IADC International Association of Drilling that the estimated overall economic II. Discussion of Compliance Dates for the Contractors impact will benefit the industry over the Final Rule IBR Incorporated By Reference next 10 years because of the reduction A. April 29, 2021—Alternative Cutting IC Information Collection in compliance costs, in addition to Device No Longer Allowed IEC International Electrotechnical B. May 1, 2023—Drill Pipe Positioning increased regulatory certainty. As this Commission Within Shearing Blades IOGP International Association of Oil And rule maintains safety and environmental III. Discussion of Final Rule Requirements Gas Producers protection, the entities realizing savings A. Summary of Key Regulatory Provisions IRIA Initial Regulatory Impact Analysis from these changes can deploy them for B. Summary of Significant Differences ISO International Organization For other, more productive purposes, e.g., Between the Proposed and Final Rules Standardization additional capital investment. Increased 1. Safe Drilling Margin—§§ 250.414 and JIP Joint Industry Project productivity and competiveness of 250.427(b) LMRP Lower Marine Riser Package domestic energy projects benefit 2. Centering Capabilities While Shearing— MASP Maximum Anticipated Surface consumers and the broader U.S. §§ 250.732 and 250.734(a)(16) Pressure 3. Shearing Combinations— MIA Mechanical Integrity Assessment economy. MODU Mobile Offshore Drilling Unit In keeping with recent Executive and § 250.734(a)(1)(ii) 4. Subsea Accumulator Capacity— MPB Multiple Physical Barrier Secretary’s Orders, BSEE undertook a § 250.734(a)(3)(iii) NAICS North American Industry review of the 2016 WCR with a view 5. 21-Day BOP Testing Frequency— Classification System toward the policy direction of § 250.737 NEPA National Environmental Policy Act encouraging energy exploration and IV. Discussion of Public Comments on the NPRM Notice of Proposed Rulemaking production on the Outer Continental Proposed Rule NTTAA National Technology Transfer and Shelf (OCS) and reducing unnecessary A. General Support for the Proposed Rule Advancement Act regulatory burdens, while ensuring that B. General Opposition to the Proposed OCS Outer Continental Shelf OCSLA Outer Continental Shelf Lands Act any such activity is safe and Rule C. 21-Day BOP Testing Frequency OEM Original Equipment Manufacturer environmentally responsible. BSEE OFR Office of the Federal Register carefully reviewed all 342 provisions of D. BSEE Approved Verification Organization (BAVO) OIRA Office of Information and Regulatory the 2016 WCR, and determined that this E. Legal Comments Affairs final rule revises or adds to 71 F. Economic Comments OMB Office of Management Budget OORP Office of Offshore Regulatory provisions of the 2016 WCR—or G. Environmental Comments Programs approximately 20% of the 2016 WCR H. Miscellaneous Comments Psi pounds per square inch provisions. The regulations will still V. Section-by-Section Summary and Ppg pounds per gallon Responses to Comments on the Proposed contain the core safety and PRA Paperwork Reduction Act Rule environmental protective provisions of PWD Pressure While Drilling VI. Procedural Matters the 2016 WCR. In the process, BSEE QRA Quantitative Risk Analysis compared each of the changes to the 424 List of Acronyms and References RCD Regional Containment Demonstration recommendations arising from 26 RFA Regulatory Flexibility Analysis separate reports from 14 different ANL Argonne National Laboratory RIA Regulatory Impact Analysis ANPR Advance Notice of Proposed ROT Remotely Operated Tools organizations developed in the wake of Rulemaking and in response to the Deepwater ROV Remotely Operated Vehicle ANSI American National Standards RTM Real-Time Monitoring Horizon disaster, and determined that Institute SBA Small Business Administration none of the final changes ignores or APA Administrative Procedure Act SCCE Source Control and Containment contradicts any of those APD Application for Permit To Drill Equipment recommendations, or alters any API American Petroleum Institute SDO Standards Development Organization provision of the 2016 WCR in a way that APM Application for Permit to Modify Secretary Secretary of the Interior would make the result inconsistent with ASME American Society of Mechanical SEMS Safety and Environmental those recommendations. Further, Engineers Management Systems BAST Best Available and Safest Technology nothing in this final rule alters any SPPE Safety and Pollution Prevention BAVO BSEE Approved Verification Equipment elements of other rules promulgated Organization SRAM System Risk Assessment since Deepwater Horizon, including the BOEM Bureau of Ocean Energy Management Increased Safety Measures for Energy Management TBT Technical Barriers to Trade Development on the OCS (Drilling BOP Blowout Preventer WAR Well Activity Report Safety Rule) (75 FR 63346, October 14, BSEE Bureau of Safety and Environmental WCP Well Containment Plan 2010), SEMS I and II (75 FR 63610, Enforcement WCR Well Control Rule October 15, 2010, 78 FR 20423, April 5, BSR Blind Shear Ram WTO World Trade Organization 2013). BSEE’s review has been BTS Bureau of Transportation Statistics CDWOP Conceptual Deepwater Operations I. Background thorough, careful, and tailored to the Plan task of reducing unnecessary regulatory A. BSEE Statutory and Regulatory Department Department of the Interior Authority and Responsibilities burdens, while ensuring that operators DWOP Deepwater Operations Plan conduct OCS activities in a safe and EA Environmental Assessment BSEE derives its authority primarily environmentally responsible manner. ECD Equivalent Circulating Density from the Outer Continental Shelf Lands

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Act (OCSLA), 43 U.S.C. 1331–1356a. 2016). The 2016 WCR consolidated into rule is consistent with the proposed Congress enacted OCSLA in 1953, one part the equipment and operational revisions and none of the final changes authorizing the Secretary of the Interior requirements pertaining to BOP and ignore or contradict any of those (Secretary) to lease the OCS for mineral well control for offshore oil and gas recommendations, or alters any development, and to regulate oil and gas drilling, completions, workovers, and provision of the 2016 WCR in a way that exploration, development, and decommissioning that were previously would make the result inconsistent with production operations on the OCS. The codified in various parts of BSEE’s those recommendations. Further, Secretary delegated authority to perform regulations. More specifically, the 2016 nothing in this final rule alters any certain of these functions to BSEE. WCR incorporated industry standards; elements of other rules promulgated To carry out its responsibilities, BSEE adopted reforms to well design, well since Deepwater Horizon, including the regulates offshore oil and gas operations control, casing, cementing, real-time Drilling Safety Rule (Oct. 2010), SEMS to enhance the safety of exploration for well monitoring, and subsea I (Oct. 2010), and SEMS II (April 2013). and development of oil and gas on the containment requirements; and BSEE’s review was thorough, careful, OCS, to ensure that those operations implemented many of the and tailored to the task of reducing protect the environment, and to recommendations arising from various unnecessary regulatory burdens while implement advancements in technology. investigations of the Deepwater Horizon ensuring that OCS activity is conducted BSEE also conducts onsite inspections incident. Most of the provisions of the in a safe and environmentally to ensure compliance with regulations, 2016 WCR became effective on July 28, responsible manner. lease terms, and approved plans and 2016. This rule revises current regulations permits. Detailed information Since the time the 2016 WCR that impact offshore oil and gas drilling, concerning BSEE’s regulations and regulations took effect, oil and natural completions, workovers, and guidance to the offshore oil and gas gas operators have raised various decommissioning activities. The final industry may be found on BSEE’s concerns, and BSEE has identified regulations also address various issues website at: https://www.bsee.gov/ issues during the implementation of the that BSEE identified during the guidance-and-regulations. rule. The concerns and issues involve implementation of the 2016 WCR, as BSEE’s regulatory program covers a certain regulatory provisions that well as numerous questions that have wide range of facilities and activities, impose undue burdens on oil and required substantial informal guidance including drilling, completion, natural gas operators, but do not from BSEE regarding the interpretation workover, production, pipeline, and significantly enhance worker safety or and application of the 2016 WCR.4 For decommissioning operations. Drilling, environmental protection. BSEE example, this final rule: completion, workover, and understands the operators’ concerns that • Clarifies the rig movement reporting decommissioning operations are types have been raised, but BSEE also fully requirements. of well operations that offshore recognizes that the BOP and other well- • Clarifies and revises the operators 2 perform throughout the OCS. control requirements are critical to requirements for certain submittals to These well operations are the primary ensure safety and environmental BSEE to eliminate redundant and focus of this rulemaking. protection. Consistent with recent unnecessary reporting. Executive and Secretary’s Orders • Clarifies the drilling margin B. Purpose and Summary of the (discussed further in Section I.D below) requirements in §§ 250.414 and 250.427. Rulemaking and congressional direction, BSEE • Revises § 250.723 by removing This final rule amends and updates undertook a review of the 2016 WCR. It references to lift boats from the section. certain provisions of the Blowout did so with a view toward the policy • Removes certain prescriptive Preventer Systems and Well Control direction of encouraging energy requirements for RTM. • regulations and updates the regulations exploration and production on the OCS Replaces the use of a BAVO with to better implement BSEE policy. This and reducing unnecessary regulatory the use of an independent third party final rule will strengthen the burdens, while ensuring that any such for certain certifications and Administration’s policy of facilitating activity is conducted in a safe and verifications of BOP systems and energy security leading to increased environmentally responsible manner. components, and removes the domestic oil and gas production, and BSEE carefully analyzed all 342 requirement to have a BAVO submit a reduce unnecessary burdens on provisions of the 2016 WCR, and Mechanical Integrity Assessment report stakeholders while still maintaining proposed to revise or add to 71 for the BOP stack and system. • safety and environmental protection. provisions—or approximately 20%—of Revises the accumulator system Since 2010, in order to improve worker the 2016 WCR provisions. In the requirements and accumulator bottle safety and environmental protection, process, BSEE compared each of the requirements to better align with API Standard 53. BSEE has promulgated a number of changes to the 424 recommendations • rules (e.g., Safety and Environmental arising from 26 separate reports from 14 Revises the control station and pod Management Systems I and II (75 FR different organizations 3 developed in testing schedules to ensure component 63610, October 15, 2010; 78 FR 20423, the wake of and response to the functionality without inadvertently requiring duplicative testing. April 5, 2013), the final safety measures Deepwater Horizon disaster. This final • rule (77 FR 50856, August 22, 2012), the Includes coiled tubing and snubbing requirements in Subpart G. production safety systems final rule (83 3 DOI, DOI OCS Safety Oversight Board, DOI OIG, • Revises the text to ensure FR 49216, September 28, 2018), and the DOI/Department of Homeland Security (DHS) Joint consistency and conformity across the 2016 WCR (81 FR 25888; April 29, Investigation Team, National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, applicable sections of the regulations. Chief Counsel for the National Commission, • Revises the regulation to include a 2 BSEE’s regulations at 30 CFR part 250 generally National Academy of Engineering, Joint Industry apply to ‘‘a lessee, the owner or holder of operating Subsea Well Control and Containment Task Force, 21-day BOP testing frequency. rights, a designated operator or agent of the Environmental Law Institute, Ocean Energy Safety lessee(s). . . ,’’ covered by the definition of ‘‘you’’ Advisory Committee, Chemical Safety Board, Joint 4 BSEE posted approximately 100 responses to in § 250.105. For convenience, this preamble will Industry Oil Spill Preparedness and Response Task questions regarding the 2016 WCR provisions on refer to all of the regulated entities as ‘‘operators,’’ Force, Transportation Research Board, U.S. the BSEE web page https://www.bsee.gov/guidance- unless otherwise indicated. Government Accountability Office (GAO). and-regulations/regulations/well-control-rule.

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C. Summary of Documents Incorporated equivalent circulation density (ECD) International Organization for by Reference exceeds the fracture gradient of a Standardization (ISO)/IEC (International This rule updates a document formation. It also provides guidance Electrotechnical Commission) 17021– currently incorporated by reference to a regarding appropriate responses when 1—Conformity assessment— newer edition, includes an addendum to lost circulation is experienced with Requirements for Bodies Providing an already incorporated standard, and either surface or subsea BOP stack Audit and Certification of Management adds two new standards for operations (excluding diverter Systems—Part 1: Requirements. incorporation. A brief summary of the operations). Lastly, the bulletin The final rule incorporates into the final changes, based on the descriptions recommends four decision tree flow regulations a reference to ISO/IEC 1702– in each standard or specification, is charts for common lost circulation 1, First Edition, June 15, 2015, for provided in the text that follows. scenarios in the OCS: (1) Drilling purposes of the quality management Exploration Wells with Lost Circulation; API Standard 53 and Addendum— system certification requirements of Blowout Prevention Equipment Systems (2) Drilling Ahead Below Salt with Lost § 250.730(d). This standard contains for Drilling Wells Circulation; (3) Drilling Depleted Zones principles and requirements to ensure with Lost Circulation; and (4) Managed the competence, consistency, and API Standard 53 (Fourth Edition Pressure Drilling with Lost Circulation. impartiality of bodies providing audit published November 2012) and Although similar, each flow chart is and certification of all types of addendum (published July 2016) unique and specific to the management systems. It provides provide requirements for the installation circumstances surrounding the lost general requirements for such bodies and testing of blowout prevention circulation event. The flow charts serve performing audit and certification in the equipment systems whose primary as an aid for operators to use when fields of quality, the environment, and functions are to confine well fluids to deciding how best to safely drill ahead other types of management systems. the wellbore, provide means to add when lost circulation occurs. Incorporation of this standard will fluid to the wellbore, and allow provide clarity and consistency controlled volumes to be removed from API Standard 65—Part 2, Isolating surrounding the critical qualifications of the wellbore. BOP equipment systems Potential Flow Zones During Well entities responsible for certifying quality are comprised of a combination of Construction management systems for the components that are covered by this manufacture of BOP stacks. document, Including: Installations for This standard, which API issued in surface and subsea BOPs; choke and kill December 2010 (reaffirmed November How To View the Documents lines; choke manifolds; control systems; 2016), outlines the process for isolating Incorporated by Reference and auxiliary equipment. The document potential flow zones during well When a copyrighted publication is also addresses equipment arrangements. construction. The new Standard 65— incorporated by reference into BSEE The Addendum contains clarifications part 2 enhances the description and regulations, BSEE is obligated to observe to API Standard 53, 4th Edition. classification of well-control barriers, and protect that copyright. BSEE is This standard also provides industry and defines testing requirements for working with the standards best practices related to the use of dual cement to be considered a barrier. organizations to provide free online shear rams, maintenance and testing viewing for standards incorporated by API Recommended Practice 17H— requirements, and failure reporting. The reference. Many such organizations Remotely Operated Tools and Interfaces standard does not address diverters, already make relevant standards on Subsea Production Systems shut-in devices, and rotating head publicly available free of charge. BSEE systems (rotating control devices), The final rule updates the provides members of the public with whose primary purpose is to safely website addresses where these divert or direct flow, rather than to incorporated version of this document from the First Edition (July 2004, standards may be accessed for confine fluids to the wellbore. It also viewing—sometimes for free and does not include procedures and reaffirmed January 2009) to the Second Edition (June 2013) and Errata (January sometimes for a fee. Standards techniques for well control and extreme development organizations decide 2014). This recommended practice temperature operations. whether to charge a fee. One such provides general recommendations and API Bulletin 92L—Drilling Ahead Safely organization, API, provides free online overall guidance for the design and With Lost Circulation in the Gulf of public access to view read-only copies operation of remotely operated tools Mexico of its key industry standards, including (ROT) and remotely operated vehicle a broad range of technical standards. All API Bulletin 92L, First Edition, was (ROV) tooling used on offshore subsea API standards that are safety-related and published in August 2015. API Bulletin systems. ROT and ROV performance is that are incorporated into Federal 92L addresses drilling margins and critical to ensuring safe and reliable regulations, or that are considered for drilling ahead with lost circulation in deepwater operations and this incorporation, are available to the wells drilled in the OCS environments. document provides general performance public for free viewing online in the The drilling margin is the difference guidelines for this and associated Incorporation by Reference Reading between the maximum pore pressure equipment. One of the main differences Room on API’s website at: http:// and minimum fracture pressure of a between the first edition and second publications.api.org.5 In addition to the formation. Lost circulation is the flow of edition of this recommended practice is drilling fluid into the formation instead that the second edition includes 5 To view these standards online, go to the API of returning up the annulus. If provisions on high flow Type D hot publications website at: http://publications.api.org. uncontrolled, lost circulation can lead You must then log-in or create a new account, to consequences potentially as severe as stabs. accept API’s ‘‘Terms and Conditions,’’ click on the ‘‘Browse Documents’’ button, and then select the a blowout. This bulletin identifies items applicable category (e.g., ‘‘Exploration and that should be considered to safely Production’’ or ‘‘IBR Documents Under address lost circulation challenges when Continued

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free online availability of these production, including on the Outer response to those experiences. In standards for viewing on API’s website, Continental Shelf, in order to maintain addition, BSEE solicited input from hardcopies and printable versions are the Nation’s position as a global energy interested parties to identify potential available for purchase from API. The leader and foster energy security and revisions to the regulations, including API website address to purchase resilience for the benefit of the through the public forum held on standards is: https://www.api.org/ American people, while ensuring that September 20, 2017, in Houston, Texas. products-and-services/standards/ any such activity is safe and Further, BSEE gained valuable insights purchase. environmentally responsible’’ and to from comments received in response to The International Organization for ‘‘publish for notice and comment a the proposed rule. BSEE regulatory staff Standardization (ISO) creates proposed rule revising that rule, if used information from these sources documents that provide requirements, appropriate and as consistent with law.’’ and worked directly with BSEE regional specifications, guidelines, or It further directed the Secretary of the subject matter experts to assess the characteristics that can be used Interior to ‘‘take all appropriate action to current requirements for well control consistently to ensure that materials, lawfully revise any related rules and and blowout preventers in order to products, processes, and services are fit guidance for consistency with the policy determine which provisions could for their purposes. All ISO International set forth in section 2 of this order. potentially be revised, while leaving Standards are available at the ISO Store Additionally, the Secretary of the critical safety provisions intact to for purchase at: https://www.iso.org/ Interior shall review BSEE’s regulatory maintain safety and environmental store.html. regime for offshore operators to protection. BSEE also reviewed For the convenience of members of determine the extent to which publically available lists of alternate the viewing public who may not wish additional regulation is necessary.’’ procedures and departures that BSEE to purchase copies or view these To further implement E.O. 13795, the granted through permits, and reviewed incorporated documents online, they Secretary issued Secretary’s Order No. past incident data, specifically may be inspected at BSEE’s office in 3350 on May 1, 2017, directing BSEE to concerning information on equipment Houston, at 1919 Smith Street, Suite review the 2016 WCR for consistency failure after a successful seal of the well. 14042, Houston, Texas 77002. To make with E.O. 13795 and prepare a report an appointment to inspect incorporated ‘‘providing recommendations on E. Stakeholder Engagement material at the Houston BSEE office, call whether to suspend, revise, or rescind Implementation of the 2016 WCR— 1–844–259–4779. BSEE may also make the rule’’ in response to concerns raised BSEE Qs and As the standards available at its other by stakeholders that the 2016 WCR offices located in: Washington, DC; ‘‘unnecessarily include[s] prescriptive The Department promulgated the Sterling, Virginia; New Orleans, measures that are not needed to ensure original ‘‘Blowout Preventer Systems Louisiana; Camarillo, California; and safe and responsible development of our and Well Control’’ final rule (WCR) (81 Anchorage, Alaska. Individuals wishing OCS resources.’’ FR 25888, April 29, 2016). to view standards at a BSEE office may Based on E.O.s 13783 and 13795, Subsequently, during the make arrangements by sending an email congressional guidance, and Secretary’s implementation of the regulations, BSEE to: [email protected]. Order No. 3350, and in light of the received numerous questions from requests received for clarification and stakeholders seeking clarification and D. Executive and Secretary’s Orders revision of various provisions, BSEE guidance concerning the 2016 WCR’s On March 28, 2017, the President reviewed the regulations promulgated provisions. The questions covered a vast issued Executive Order (E.O.) 13783— through the 2016 WCR and is making array of issues and spanned multiple Promoting Energy Independence and revisions to those regulations that will subparts of the regulations. Economic Growth (82 FR 16093). The reduce unnecessary burdens on industry BSEE reviewed each question it E.O. directed Federal agencies to review without affecting key 2016 WCR received and decided whether the all existing regulations and other agency provisions that have a significant impact question presented an issue that was actions with a goal toward ‘‘avoiding on improving safety and equipment appropriate for Bureau guidance. To the regulatory burdens that unnecessarily reliability. extent that a question required guidance encumber energy production, constrain On September 28, 2018, the or clarification, BSEE provided a economic growth, and prevent job Department of the Interior (Department) response to clarify any potentially creation.’’ It instructs agencies to issued Secretary’s Order No. 3369 (S.O. confusing language. In addition to ‘‘review existing regulations that 3369), ‘‘Promoting Open Science.’’ S.O. deciding on the appropriateness of a potentially burden the development or 3369 directs bureaus within the question for guidance, BSEE determined use of domestically produced energy Department to ensure that their use of whether the question was of sufficient resources and appropriately suspend, science in decision-making is open and public interest to merit broader revise, or rescind those that unduly transparent to facilitate public publication of a response. After burden the development of domestic awareness, and to ensure that, when finalizing regulatory guidance in energy resources beyond the degree decisions are based on scientific data or response to a stakeholder’s question, necessary to protect the public interest literature, bureaus utilize the ‘‘best BSEE typically publishes both the or otherwise comply with the law.’’ available science.’’ As previously question and BSEE’s answer on its web On April 28, 2017, the President discussed, BSEE used a number of page. The information, which reflects issued E.O. 13795—Implementing an sources of information to inform BSEE’s guidance on the current America-First Offshore Energy Strategy decisions related to these revisions, regulations, may be found at: https:// (82 FR 20815), which directed the including comments received through a www.bsee.gov/guidance-and- Secretary to review the 2016 WCR for ‘‘Request for comments’’ on the DOI’s regulations/regulations/well-control- consistency with the policy ‘‘to regulatory reform initiatives, published rule. BSEE posted approximately 100 encourage energy exploration and in the Federal Register on June 22, 2017 responses to questions regarding the (82 FR 28429), and experience gained 2016 WCR provisions on the web page. Consideration’’) for the standard(s) you wish to during the implementation of the 2016 BSEE reexamined the questions and review. WCR and the policies developed in answers pertaining to the 2016 WCR.

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After carefully considering all relevant A. April 29, 2021—Alternative Cutting Documents incorporated by information in the questions and Device No Longer Allowed reference 6—The final rule: answers, BSEE determined that it is • Requires compliance with the appropriate to revise certain of the Current regulations require, at industry standards contained in API regulations promulgated through the § 250.733(a)(1), that operators use an Standard 53. 2016 WCR to support the goals of the alternative cutting device capable of • Requires compliance with API RP regulatory reform initiative, while still shearing any electric-, wire-, or slick- 17H to standardize ROV hot stab maintaining safety and environmental line before closing the BOP if, prior to activities. This will allow certain protection. Additionally, the revisions April 29, 2021, an operator’s blind shear functions of the BOP to be activated will help clarify any ambiguity in the rams (BSR) are unable to cut such lines remotely and within specified regulatory language, eliminate timeframes. under maximum anticipated surface • redundancies in the provisions, and pressure (MASP) and seal the wellbore. Requires compliance with the cementing guidelines of API Standard align specific requirements more closely After April 29, 2021, BSEE will no 65—Part 2 to help achieve a successful with relevant technical standards. longer allow the use of an alternative cement job. BSEE public forum on well control cutting device, and the BSR in the • Requires compliance with ISO/IEC and blowout preventer rule: To ensure a surface stack will be required to shear 17021–1, which provides requirements complete and thorough review of the any electric-, wire-, or slick-line under of an entity that certifies quality 2016 WCR, prior to this rulemaking, MASP and seal the wellbore. BSEE is management systems for BOP stack BSEE solicited input from interested aware that some current BSR technology manufacturing. parties to identify potential revisions to is available to shear electric-, wire-, or • Requires compliance with API the regulations promulgated through the slick-line. BSEE established this Bulletin 92L, which provides guidance 2016 WCR that would reduce regulatory extended timeframe to allow operators regarding how to safely address lost burdens while maintaining safety and to acquire and install equipment to meet circulation challenges. environmental protection on the OCS. the requirements and to discontinue the Safe drilling practices—The final rule: BSEE held a public forum on September • use of the alternative cutting device. Requires operators to maintain safe 20, 2017, in Houston, Texas. More than Current regulations at § 250.733(b)(1) drilling margins, provides details on 110 participants attended and provided require that new surface BOPs installed when operators may request BSEE comments and suggestions. Participants approval of the safe drilling margins, on floating production facilities after included representatives from: and specifies actions the operator must April 29, 2019, comply with the BOP • Federal agencies; take if a safe drilling margin cannot be requirements of § 250.734(a)(1). This • Media; maintained. • final rule extends that compliance date • Includes requirements related to Oil and gas companies; to April 29, 2021, in order to eliminate • downhole equipment that operators use Classification societies; any confusion between applicable to help reduce the likelihood of a major • Trade associations; compliance dates for §§ 250.733(b)(1) well-control event and ensure the • Environmental groups; and and 250.734(a)(1). The dual shear ram overall integrity of the well. • Equipment manufacturers. requirements for both surface and • Requires real-time monitoring when Additionally, there were eight subsea BOPs will now have the same conducting well operations with a presentations made at the forum. These compliance date of April 29, 2021. subsea BOP or with a surface BOP on a presentations are available at: https:// floating facility, or when operating in a B. May 1, 2023—Drill Pipe Positioning www.bsee.gov/guidance-and- high pressure high temperature (HPHT) regulations/regulations/well-control- Within Shearing Blades environment. Also requires operators to develop and implement a real-time rule/public%20forum. Current regulations at monitoring plan. This will allow II. Discussion of Compliance Dates for § 250.734(a)(16)(i) require operators to operators to anticipate and identify the Final Rule have the capability to position the drill issues in a timely manner and to utilize pipe completely within the area of the resources to assist in addressing critical BSEE considered the public shearing blades during shearing comments on the proposed rule, as well issues. operations no later than May 1, 2023. as relevant information gained during, Failure reporting and analysis—The This final rule retains that compliance among other activities, BSEE’s final rule: • Requires that operators report any interactions with stakeholders, date from the 2016 WCR. significant problems with BOP or well- involvement in development of industry III. Discussion of Final Rule control equipment to BSEE or BSEE’s standards, and evaluation of current Requirements designated third party, so BSEE can technology. Based on its analysis, BSEE help analyze failure trends and is setting an effective date of 60 days A. Summary of Key Regulatory determine whether information should following publication of the final rule, Provisions be provided, in a timely manner, to OCS by which time operators will be After review of all the public operators and, if appropriate, to required to comply with most of the comments received in response to the international offshore regulators and final rule’s provisions. BSEE proposed rule, BSEE determined that it operators. determined, however, that it is • Requires that operators conduct an appropriate to identify alternative will include the following proposed revisions in this final rule. This final investigation and failure analysis within compliance dates, subsequent to the a designated timeframe to help ensure effective date of the final rule, for rule includes most of the provisions in the proposed rule without change, that the causes of failures are identified certain provisions identified below. and addressed. Detailed explanations for the although the final rule revises several of the proposed provisions in response to requirements associated with these 6 comments, as explained in sections IV To view online read-only API documents visit: compliance dates are provided in http://publications.api.org/ Sections IV and V of this preamble. and V of this preamble. AccessToDocuments.aspx.

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Equipment requirements—The final significant number of operational issues, ppg drilling margin requirements in the rule: one of which is ‘‘lost returns.’’ Lost current regulations. • Requires access to and utilization of returns, or lost circulation, occur when In this final rule, BSEE is not revising well intervention equipment for certain drilling fluids escape from the well into the 0.5 ppg default drilling margin subsea completed wells with a tree the formation. A drilling margin is the requirement or the requirements for installed. This will allow the necessary difference between the pore pressure of justifying any alternative equivalent equipment to be maintained and the formation, with the mud weight downhole mud weight. However, based available to perform intervention taken into consideration, and the on comments received, BSEE is revising operations when necessary. fracture pressure of the formation. The § 250.414(c)(2) to allow operators the • Requires the BOP accumulator 2016 WCR established a default option to submit the required capacity to provide fast closure of the minimum drilling margin of 0.5 ppg, but justification for BSEE approval at an BOP components for autoshear/ also provided avenues for operators to earlier date rather than waiting to deadman in accordance with API obtain approval of lower margins submit with the APD. The proposed rule Standard 53. through the permitting process (81 FR indicated that BSEE was considering Operational requirements—The final 25894). Since the effective date of the ‘‘whether it should adhere to its practice rule: 2016 WCR, BSEE has approved many of identifying a specific drilling margin • Requires retesting protocols for Applications for Permit to Drill (APDs) with an avenue for allowing operators to when the BOP or lower marine riser with a drilling margin less than 0.5 submit adequate documentation package (LMRP) are unlatched and then ppg.7 BSEE did not propose changes to justifying the use of a different drilling relatched. These requirements provide the 0.5 ppg safe drilling margin margin . . . .’’ (83 FR 22133). The clarity for the testing required when an requirements; however, BSEE solicited relevant comments informed BSEE’s operator returns to a well location and comments on possible revisions to, or decision to revise § 250.414(c)(2) to relatches the BOP or LMRP to the well. options regarding, the 0.5 ppg drilling permit submission of the alternative These tests help confirm that the BOP margin issue. drilling margin justification prior to or LMRP is properly functional prior to Multiple commenters recommended submitting an APD. Also, based on resuming operations after being replacing the current requirement with comments received, BSEE is revising removed. a performance-based standard under § 250.427(b) to allow an operator to • Requires high and low pressure which an approved safe drilling margin respond to lost circulation events in testing procedures for certain BOP would be established on a case-by-case accordance with API Bulletin 92L and components. The testing requirements basis, based on data and analysis to require notification to the BSEE codify BSEE policy and provide clarity specific to a particular well. They District Manager documenting the and consistency for permitting. suggested that this is a safer and better operator’s use of API Bulletin 92L.8 In • Requires the development of an alternative that would provide a risk- conjunction with the use of API Bulletin alternate testing schedule for control based approach that ensures safety and 92L, BSEE is requiring that an operator stations and pods for subsea BOPs. The provides investment certainty to the submit a revised permit documenting intended result of an alternating testing industry. Multiple commenters also any remedial actions. BSEE is also schedule is to ensure that operators can submitted comments on § 250.427 and clarifying that the District Manager must use each control station, and each pod recommended that, in instances where review and approve proposed remedial for subsea, to properly function all an operator encounters a lost circulation actions in an APD. BSEE recognizes that required BOP components, while zone, the operator should have options API Bulletin 92L may not be a reducing unnecessary duplicative for safely addressing the situation. In consensus document. According to API testing and risk of component wear. particular, many commenters asserted policy,9 documents that are classified as that suspending operations in certain ‘‘bulletins’’ may be developed without B. Summary of Significant Differences circumstances may negatively impact following a consensus process, which is Between the Proposed and Final Rules safety and that drilling ahead to get the preferred process for documents After consideration of all relevant and through a lost circulation zone may be incorporated by reference in significant comments, BSEE made a the safest option to restore the integrity government regulations according to the number of revisions from the proposed of the well. For example, a commenter guidance in OMB Circular A–119. rule to the final rule. We are asserted that suspending drilling while However, OMB Circular A–119 does not highlighting several of these changes in the weak zone to set casing (or preclude the use of standards that are here because they are significant and otherwise remedy the situation) may developed without following a because numerous comments addressed simply transfer risk to a deeper hole voluntary consensus process. API these topics. Discussions of the relevant section, where conditions may be even Bulletin 92L addresses specific and significant comments and BSEE’s more challenging. Commenters technical issues, such as lost circulation responses are found in sections IV and suggested that it is appropriate for while drilling, to help operators V of this preamble. The significant operators to specify in the Deepwater diagnose well stability issues and revisions made in response to comments Operations Plan (DWOP) or APD how remedy the situation. BSEE determined include: they will remedy an anticipated loss of that this document is consistent with circulation on bottom. They suggested BSEE policy in the approaches used to 1. Safe Drilling Margin—§§ 250.414 and using API Bulletin 92L as the standard 250.427(b) for responding to such situations. A 8 API Bulletin 92L provides operators with flow When drilling a well, operators use significant number of commenters also charts to help evaluate what is happening in the the hydrostatic pressure from a mud well during lost circulation events and to respond strongly opposed any changes to the 0.5 accordingly. (e.g., Depending on the situation column to keep sufficient pressure on operators may have to stop drilling and run casing, the formation to prevent gas or oil from 7 Between August 1, 2016 and March 22, 2018, or contact the regulator and drill ahead no more flowing into the wellbore (i.e., a ‘‘kick’’). ‘‘BSEE’s records show that there have been 305 than 300 ft.) If the hydrostatic pressure from the mud wells drilled. Of those wells, BSEE approved 9 The Organization and Procedures for the operators’ use of drilling margins that are less than CSOEM: Policy Document 2017 (S1) and the column is too high, however, the 0.5 ppg for 32 wells.’’ 83 FR 22128, 22133 (May 11, Procedures for Standards Development 2016 formation may fracture and result in a 2018). (Procedures for Standards Development).

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address these issues, appropriate for Congress 10 to ensure that offshore and a recognition that the proposed meeting the agency’s regulatory needs, operations promote safety and protect language’s reliance on a ‘‘combination’’ and preferable to an agency-developed the environment in a technically of shear rams potentially interjected standard. Therefore, API Bulletin 92L is feasible manner, BSEE does not want to some ambiguity regarding the number of appropriate for incorporation into the limit the use of improved technological rams subject to this shearing regulations, even though it is a non- advancements in shear blade designs. requirement. consensus developed bulletin. BSEE has BSEE is not revising the dual shear 3. Shearing Combinations— ram requirements or the associated evaluated API Bulletin 92L and § 250.734(a)(1)(ii) determined that compliance with it compliance date of April 29, 2021, would not reduce safety. The content of In the 2016 WCR, BSEE established found in existing § 250.734(a)(1). the bulletin includes flow charts that that both shear rams must have the capability to shear the specified 4. Subsea Accumulator Capacity— can be used as an aid for operators to § 250.734(a)(3)(iii) use in deciding how best to safely drill equipment. During the development of ahead when lost circulation occurs and the 2016 WCR, BSEE did not receive The purpose of the accumulator the required criteria and procedures are comments specific to the ‘‘both shear system and applicable accumulator met. rams’’ provision. capacity requirements is to ensure that BSEE proposed to revise there is sufficient volume and pressure 2. Centering Capabilities While § 250.734(a)(1)(ii) by clarifying that a in the accumulator bottles to properly Shearing—§§ 250.732 and ‘‘combination of the’’ shear rams must operate BOP components in a specified 250.734(a)(16) be capable of shearing all the items timeframe regardless of the location of Current regulations at §§ 250.732 and specified in the paragraph. BSEE is the accumulator bottles. In the proposed rule, BSEE proposed 250.734 require the use of a shear ram aware that certain casing shears still to remove the reference to the subsea positioning mechanism to ensure that have difficulty shearing electric-, wire- location of the accumulator capacity. pipe is centered within the area of the , or slick-line, while certain BSRs have BSEE understands that the accumulator shearing blade. Since the publication of difficulties shearing larger casing sizes. system works together with the surface the 2016 WCR, many of the shear ram As stated in the proposed rule, the and subsea accumulator capacity to designs have improved the shearing proposed revision would have provided the operators flexibility for how they achieve full functionality and BSEE capabilities to help ensure shearing is utilize the BOP system and components determined that it was unnecessary to conducted on the appropriate shearing for operations, while still ensuring all specifically identify only subsea area of the shear blades. This is critical shearing capabilities. requirements when API Standard 53 commonly done by shaping the shear Multiple commenters generally agreed covers the entire system. ram cutting blades in a ‘‘V’’ or ‘‘W’’ with the proposed language; however, BSEE received multiple comments pattern to help center the pipe as it other commenters opposed any changes supporting the proposed revisions; shears, as well as to increase the blade to existing requirements. Commenters however, BSEE also received comments face surface area to ensure there are no expressed concerns about the proposed asserting that BSEE had not explained areas that cannot shear the pipe in the removal of the requirement to have two how removing the reference to the well. Accordingly, BSEE proposed to fully redundant shear rams and subsea location of accumulator capacity remove the centering mechanism suggested that such a change would not would ensure that the accumulator requirements in both §§ 250.732 and account for the possibility of one shear system can adequately function if there 250.734. However, in the proposed rule ram malfunctioning. The benefit of is a loss of the power fluid connection preamble, BSEE solicited comments having two, fully capable shear rams is to the surface. Based on these about the effectiveness of requiring a fully redundant back up. Under the comments, BSEE has decided to keep shear rams to center pipe or wire while proposed revisions, if one shear ram the clarification that certain shearing, or requiring shear rams to were to fail and the remaining shear ram accumulator capacity must be located have the capability to shear any pipe or could not independently shear the subsea in order to avoid confusion about wire in the hole without a separate necessary equipment, well control how the autoshear and deadman centering mechanism. BSEE also might not have been achieved. systems utilize accumulator capacity. discussed the option of retaining the Based on comments received, BSEE is The autoshear and deadman systems do centering mechanism requirements, but keeping the language in existing not use accumulator capacity from the expressly provided that the shear rams § 250.734(a)(1)(ii) that requires ‘‘both surface accumulators. The conditions to with these capabilities satisfy the shear rams to be capable of shearing’’ function these emergency systems requirements. the specified equipment in the hole. involve the loss of electrical/hydraulic Based on comments, BSEE recognizes BSEE principally bases this decision on communication or connection between that the technology exists to help ensure comments BSEE received concerning the BOP stack and the rig. Therefore, it the pipe is positioned within the shear the importance of shearing redundancy is necessary to require that the surface to optimize shearing autoshear and deadman emergency capabilities. BSEE agrees that even 10 Explanatory Statement to Accompany Div G. of systems’ accumulator capacity must be though this technology exists, the rule Consolidated Appropriations Act, 2017 (Interior, Environment, and Related Agencies), Public Law able to function properly without as proposed would not have specifically 115–31 (May 5, 2017). (‘‘Blowout Preventer Systems connection or communication with the required the use of such technology. In and Well Control Rule.—The Committees encourage surface and therefore the accumulator this final rule, BSEE is now retaining the Bureau to evaluate information learned from capacity must be located subsea. the existing requirement to maintain the additional stakeholder input and ongoing technical conversations to inform implementation of this In this final rule, BSEE is clarifying capability to position the pipe within rule. To the extent additional information warrants that the accumulator bottles for the the shearing blade, however BSEE will revisions to the rule that require public notice and autoshear/deadman systems need to be not require this to be achieved using a comment, the Bureau is encouraged to follow that located subsea. The autoshear/deadman separate mechanism and will allow this process to ensure that offshore operations promote safety and protect the environment in a technically systems are not controlled by surface capability to be accomplished with the feasible manner.’’). 163 Cong. Rec. H 3327, 3880 personnel and are essentially shear ram itself. As encouraged by (May 3, 2017). considered failsafe. Consistent with the

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existing regulations, the accumulator approves an operator’s 21-day BOP A. General Support for the Proposed bottles that operate these systems need testing frequency request. BSEE is Rule to be located subsea to ensure there is requiring operators to demonstrate, in BSEE received hundreds of comments enough fluid and pressure to operate the the 21-day BOP testing frequency expressing general support for the associated functions. This is a request, that they have developed a BOP proposed rule. The public comments clarification to ensure there is no health monitoring plan that includes expressing or suggesting general support confusion about where the required certain system capabilities. BSEE is for the proposed rule as a whole or for fluid and pressure must reside to requiring the BOP health monitoring some of its major provisions comprise a operate the autoshear/deadman plan to include condition monitoring few hundred of the total number of emergency functions. tools that are able to provide continuous comments received. BSEE received 5. 21-Day BOP Testing Frequency— surveillance of sensor readings from the supporting comments from, but not § 250.737 BOP control system, real-time condition limited to, oil and gas companies, In the proposed rule, BSEE requested analysis and displays, functional contractors, industry trade groups, comments on whether the BOP testing pressure signal analysis, and trending equipment manufacturers, class interval should be 7 days, 14 days, or 21 capabilities of the sensor data. The societies, private citizens, and legal days for all operations (i.e., drilling, condition monitoring tools also must firms. Some of the commenters completions, workovers, and include failure propagation analysis and expressing general support for the decommissioning). BSEE also requested a failure tracking and resolution system proposed rule also provided specific comments on the specific cost and to identify recurring problems. BSEE is detailed comments, addressed further operational implications of each testing also requiring operators to submit infra. interval to further its consideration of quarterly reports of the data collected to The comments submitted by industry the issue. Current regulations (multiple the BSEE Regional Supervisor, District trade groups, operators, and service citations throughout § 250.737) require Field Operations. BSEE will review this companies generally supported the pressure and function testing of specific data to help ensure compliance with the proposed alleviation of administrative BOP components for drilling, requirements of the regulations and help burdens and reduction of prescriptive completions, workovers, and support its continual analysis of the 21- regulations. As rationale for their support of the proposed rule, those decommissioning operations every 14 day BOP testing frequency. days. Although BSEE did not present commenters often identified concerns This approach offers a path for revisions to the testing frequency about how the current regulations regulatory text in the proposed rule, operators to avoid the identified cost increase operational risks and impose BSEE raised the option of 21-day BOP and operational concerns associated unnecessary cost burdens but provide testing in the preamble. with more frequent testing, while at the no commensurate safety improvements The industry and BSEE currently rely same time requiring that adequate and or environmental protection. However, on function and hydrostatic tests to proven tools for ensuring safety and while the commenters voiced support verify the performance of BOP environmental protection are in place broadly for the proposed changes, some equipment in the field. These tests have before testing frequency is changed to a of them also cited additional regulatory traditionally been the primary method 21-day interval. provisions that they asserted impose of verifying the capability of in-service unnecessary regulatory burdens that the IV. Discussion of Public Comments on equipment. In recent years, the industry proposed revisions would not go far has raised concerns related to the the Proposed Rule enough to relieve, as discussed in this benefits of pressure and function testing In response to the proposed rule, section and section V of this preamble. of subsea BOPs when compared to the BSEE received over 265 sets of B. General Opposition to the Proposed costs and potential operational issues comments containing individually Rule associated with such testing, including submitted comments and multiple A majority of entities and individuals wear and tear. similar group form letters, totaling over BSEE received multiple comments that commented on the proposed 118,000 submittals. Comments included supporting a 21-day BOP testing revisions expressed general opposition submittals from individual entities (e.g., frequency. These comments provided to the proposed rule and many of its companies, industry organizations, non- some data to justify a 21-day BOP major proposals. A majority of those governmental organizations, State testing frequency. However, BSEE also comments were submitted by non- received many comments opposing any governments, and private citizens). governmental organizations, changes to the BOP testing frequency Some entities submitted comments environmental groups, multiple State and a commenter even stated that the multiple times and a majority of the Attorneys General, lawmakers from the BOP testing frequency should be individual commenters submitted U.S. House of Representatives and U.S. increased to every 7 days. nearly identical comments (similar to a Senate, public, and academia. BSEE analyzed the justifications form letter). Over 117,000 of the A large majority of the approximately provided in the 2016 WCR for the comments submitted follow a type of 118,000 comments that BSEE received decision to adopt a 14-day rather than form letter and contain similar voiced significant concerns about the a 21-day testing frequency. The relevant comments. All relevant comments are proposed changes. The rationale for the analysis offered little by way of data- posted at the Federal eRulemaking commenters’ opposition to the proposed driven conclusions, so BSEE has, portal: http://www.regulations.gov. To revisions to the existing regulations through this rulemaking, undertaken a access the comments at that website, generally fell into two main categories. thorough analysis of the information enter BSEE–2018–0002 in the Search First, many commenters asserted that available. In the final rule, based on box. BSEE reviewed all comments BSEE does not have sufficient evidence comments received, BSEE is revising submitted, and this section and section to support many of the proposed § 250.737 to allow the use of a 21-day V of this preamble contain brief revisions to the existing regulations. BOP testing frequency if an operator summaries of the relevant comments as However, many of the commenters did meets certain criteria and if BSEE well as of BSEE’s responses. not provide additional information/data

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to support assertions. Comments in this 53; some of those commenters cited the approval. To address the concerns first group highlighted the fact that fact that Texas regulations for onshore raised by commenters regarding the BSEE adopted the WCR in 2016 and operations have successfully used 21- availability of data that demonstrates thus asserted that it has not had enough day testing for many years. These the impact on reliability due to testing time to gather the data necessary to commenters cited studies indicating frequency, the final rule requires any support any changes. that a 21-day testing frequency: Provides operator seeking to change testing Second, some commenters cited the for a safe and reliable BOP system; frequency to develop a BOP health findings from the investigations and aligns with global practices and monitoring plan that includes condition reports arising out of Deepwater Horizon technological capabilities; and prevents monitoring tools that provide to support their general contention that extensive pressure testing that can cause continuous surveillance of sensor oversight of the oil and gas industry in premature system wear. Some readings from the BOP control system, the form of regulations is vitally commenters also asserted that function real-time condition analysis and important and necessary. Among these tests provide more reliable indications displays, functional pressure signal comments, opposition to the proposed of BOP performance. Commenters also analysis, and trending capabilities of the rule was apparently premised on the suggested a pilot program that would sensor data. The condition monitoring belief that any ‘‘rollback’’ of the existing implement 21-day testing to gather data tools also must include failure regulations will adversely impact safety to assess the difference in BOP propagation analysis and a failure and environmental protection. performance between 14 and 21-day tracking and resolution system to For a discussion of the substantive testing frequency. Another commenter identify recurring problems. BSEE is comments in opposition to specific provided some data comparing the also requiring operators to submit provisions and BSEE’s responses, refer results of 14-day and 21-day BOP testing quarterly reports of the data collected to to later parts of this section and Section worldwide. Another commenter the BSEE Regional Supervisor, District V of this preamble. suggested that a 21-day testing interval Field Operations. The BOP health C. 21-Day BOP Testing Frequency is appropriate if there are tools, systems, monitoring plan will provide BSEE with and data collection to ensure that the relevant data on how the BOP In the proposed rule, BSEE did not 21-day testing keeps operational risk equipment operates throughout the propose any specific regulatory text and process safety performance equipment lifecycle and additional changes to the existing requirement for equivalent to the 14-day testing interval. assurance of the successful functioning the minimum 14-day testing frequency Commenters who did not support the and oversight of the BOP equipment. for BOP systems. However, BSEE change to the 21-day testing frequency BSEE will review this data to help solicited comments in the proposed rule noted that BSEE considered a 21-day ensure compliance with the on whether the BOP testing frequency BOP testing interval in the context of requirements of the regulations and help should be 7 days, 14 days, or 21 days the 2016 WCR, but rejected that testing support its continual analysis of the 21- for all types of operations. BSEE also interval because the agency did not day testing frequency. requested comments on the adequacy of receive data to support it. The These efforts are consistent with the current function and pressure test commenters further asserted that BSEE BSEE’s implementation of E.O.s 13783 requirements for BOP systems in is again proposing a 21-day BOP testing and 13795, congressional guidance, and predicting the performance of this interval, despite not having any new Secretary’s Order No. 3350 (described in equipment in subsequent drilling data to support the change. Another Section I.D above). operations. Furthermore, BSEE commenter proposed a 7-day interval BSEE analyzed the justifications requested comments about what for BOP testing, along with a provided in the 2016 WCR for the circumstances or environments might recommendation that BSEE undertake a decision to adopt a 14-day rather than justify an increase or decrease to the technical risk analysis of BOP failure a 21-day testing frequency, which required testing frequency. rates for 7-, 14-, and 21-day BOP test offered little by way of data-driven In addition, BSEE is aware of intervals. One commenter suggested that conclusions. Following closure of the potential technologies that may improve BSEE postpone a revision to the BOP comment period, BSEE undertook a the operability and reliability of BOP testing frequency and solicit input from thorough review of available data, systems and thus may affect the need for an advisory committee regarding what a existing regulations, and all comments and appropriate frequency of BOP reasonable and prudent standard should related to the evaluation of 7-, 14-, and testing. Accordingly, BSEE also solicited be. A commenter requested that BSEE 21-day BOP testing interval comments on whether there are show the impact of the proposed change requirements. As part of its analysis, additional technologies, processes, or on all system risks and asserted that BSEE considered the BOP equipment procedures that can be used to BSEE should not rely on industry failure reporting data captured in the supplement existing requirements and comments as a basis for the change. U.S. Department of Transportation provide additional assurances related to • Response: After considering all Bureau of Transportation Statistics the performance of this equipment. comments regarding this potential (BTS) 2017 SafeOCS report titled BSEE asked commenters to provide change, BSEE agrees with many of the Blowout Prevention Safety System— justifications and data to support their commenters’ recommendations to allow 2017 Annual Report.11 The report comments. a 21-day test frequency, under limited analyzed 1129 events and found that circumstances when an operator meets there were 1044 notifications for subsea Summary of Comments—21-Day BOP appropriate qualifications. Therefore, Testing Frequency BOPs and 85 notifications for surface BSEE is revising § 250.737 in the final BOPs. Of the total events, 946 reported BSEE received comments both rule to maintain the 14-day test events were found while the BOPs were supporting a 21-day BOP testing frequency as the default requirement, not in operation. That report observes frequency and opposing such a change. but to allow operators to request special on page 28 that ‘‘[w]ear and tear was the Numerous commenters proposed approval to use a 21-day BOP testing most frequently reported root cause of aligning the regulatory requirement for frequency in lieu of a 14-day BOP BOP testing frequency with the 21-day testing frequency if the operator meets 11 https://www.safeocs.gov/2017_WCR_Annual_ testing frequency found in API Standard certain criteria and receives BSEE Report_v4.pdf.

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failures (53.6 percent).’’ This data helps at more frequent intervals if pressure pending implementation of the BAVO BSEE establish a baseline of operating testing is conducted at a 21-day requirements. events for the 14-day BOP testing frequency. In the proposed rule, BSEE proposed frequency. That report also indicates In addition, one commenter submitted to remove all references to BAVOs and that various forms of monitoring were an analysis of field pressure testing data to replace them with references to an responsible for detecting at least as across two rigs with similar BOP independent third party in §§ 250.731, many reported ‘‘in-operation’’ BOP equipment—one subject to 14-day 250.732, 250.734, 250.738, and 250.739. equipment failures as the equipment testing under requirements applicable in BSEE received many comments failures detected through additional the Gulf of Mexico and the other on a supporting these proposed changes. testing during 2017. These data suggest 21-day testing cycle overseas. The This section includes a summary of the that monitoring plays an important role commenter’s analysis indicates that no general BAVO-related comments and in the detection of BOP equipment reduction in BOP reliability was found BSEE responses. For additional failures, in conjunction with regular in connection with the international 21- discussions of comments associated testing. Health monitoring systems day testing standards. BSEE reviewed with BAVO-specific provisions and allow operators to detect and remediate the commenter’s data and agrees that BSEE responses, refer to section V of potential failures before they occur, and the commenter’s analysis demonstrates this final rule preamble. to understand potential failures and successful use of 21-day BOP testing. Summary of comments: Multiple commenters expressed concerns that their impact on overall BOP system Summary of Comments—21-Day BOP reliability, potentially contributing to changing BAVO requirements in the Testing Frequency in the Economic and new rule would negatively affect safety downward failure trends. Accordingly, Environmental Analyses BSEE determined that operators who and accountability. Multiple comments desire to reduce the frequency of their Multiple commenters questioned the requested keeping the requirement for validity of BSEE’s cost and regular testing should be required to BSEE to certify BAVOs, as described in environmental analyses and asserted adopt more robust BOP health the 2016 WCR. Those commenters that BSEE did not provide any concrete monitoring capabilities to ensure that desired assurance that the third-party data or analysis to support a change to oversight of BOP operability is not will be well-qualified for the extremely the BOP testing frequency in the compromised. Adopting a 21-day testing important work that is required, which regulations. includes verifying and documenting the frequency would align BSEE • Response: BSEE disagrees with the requirements with the BOP testing proper functioning of the BOP. A commenters’ assertion that the draft commenter requested that BSEE explain provisions of API Standard 53 that are economic and environmental analyses widely utilized and accepted how it will ensure that third-party released with the proposed rule were reviewers are truly independent, internationally. A 21-day testing invalid. BSEE reviewed all relevant qualified, and consistent in their frequency would also align with widely comments related to these analyses and execution of inspections and establish a adopted BOP testing standards followed updated or revised them, as appropriate, process to evaluate the independent by the international offshore oil and gas for the final rule (see discussions of the third parties. Another commenter industry. BSEE contacted many 21-day testing provisions in the recommended that BSEE not surrender international regulators 12 responsible environmental assessment and the authority to approve the third-party for overseeing offshore operations and Regulatory Impact Analysis). organizations. A different commenter requested information on whether those asserted that BSEE cannot avoid the regulators allow the use of a 21-day BOP D. BSEE Approved Verification Organization (BAVO) responsibilities it has to ensure drilling testing frequency. BSEE was informed safety by allowing inspections by that, among others, Brazil, Denmark, the The 2016 WCR established criteria 13 organizations that may not have the United Kingdom, and the Netherlands and associated requirements related to expertise or capacity to determine allow a 21-day BOP testing frequency. the use of BAVOs. Pursuant to the whether blowout preventers are being BSEE recognizes the successful regulations promulgated through the correctly operated and maintained. international use of the 21-day testing 2016 WCR, a BAVO is an entity that Another commenter asserted that this frequency and relied, in part, on that submits qualifications to BSEE and change would reduce oversight, experience to support its decision that receives BSEE approval in order to suggesting that if BSEE does not have a a 21-day testing frequency may be perform certain independent role in approving the inspectors, the appropriate for OCS operations under engineering reviews and provides operators would be able to choose who certain conditions. reasonable assurances that certain inspects their BOPs, and that such BSEE also requires additional equipment would perform as designed inspectors would not even be required specified function testing of certain BOP under the operating conditions relevant to be present during inspection. One components. For example, existing to the particular well where the commenter asserted that reports § 250.737(d)(9) requires BOP function equipment will be used. The 2016 WCR prepared by a third-party that is not testing of annular and pipe/variable regulations at §§ 250.731, 250.732, present during the actual inspection bore rams every 7 days. This function 250.734, 250.738, and 250.739 covered would be of minimal value and be too testing would continue to confirm BAVO requirements. The 2016 WCR late to affect real change/improvement. important aspects of BOP functionality established that the BAVO requirements • Response: BSEE does agree that the would not take effect until one year after independent third-parties need to be 12 Canada-Nova Scotia Offshore Petroleum Board BSEE published a list of BAVOs. BSEE qualified to perform the required work. (CNSOPB), Canada-Newfoundland and Labrador Offshore Petroleum Board, Danish Offshore Oil and has not yet published a BAVO list; The independent third-party must have Gas, United Kingdom, Brazil ANP (National Agency accordingly, the BAVO requirements are the qualifications listed under of Petroleum, Natural Gas and Biofuels), Norway not currently effective. However, the § 250.732(b), which requires the PSA (Petroleum Safety Authority), and Australia 2016 WCR also required that operators independent third-party to be a National Offshore Petroleum Safety and Environmental Management Authority. use independent third-parties to technical classification society, or a 13 http://www.hse.gov.uk/offshore/ed-well- perform certain of the certifications, licensed professional engineering firm, control.pdf. verifications, and reporting functions or a registered professional engineer

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capable of providing the required ensure compliance with the regulations. classification society, a licensed certifications and verifications. As BSEE Since 2015, BSEE has consistently professional engineering firm, or a described in the preambles to the 2016 articulated the importance of registered professional engineer capable WCR and the proposed rule, BSEE independent third-party verification and of performing the required actions; expected most of the companies or documentation. This regulatory however, for an individual or company individuals that would be approved as amendment does not eliminate or to become an independent third-party BAVOs to be drawn from the group reduce the role of such verification and that performs the required certifications currently being used as independent documentation. While the regulations and verification under this final rule, it third-parties. BSEE determined that, do not require the independent third must continue to meet the qualifications under these circumstances, submittal to party to be present at the major currently set forth in § 250.732(a)(2) and become a BAVO would be unnecessary inspections, they require the being retained in the final rule at and would not provide significant independent third party to review the meaningful improvements to safety or documentation of the inspections to § 250.732(b). These standards ensure a environmental protection. BSEE has help ensure that the appropriate entities level of professional competence and increased its interaction with the accurately and appropriately complete independence comparable to that independent third-parties to better the inspection and maintenance. The required of BAVOs in the existing understand how they operate and carry independent third party document regulations. out certifications and verifications. For review also allows the comparison of E. Legal Comments example, BSEE engineers and inspectors the design data to the current status of are regularly on a rig or at a testing the equipment. The intent of the major General Comments on Legal Aspects of facility concurrently with independent inspection is to verify that the well the Rulemaking Process third-parties during BOP testing. BSEE control system components are fit for utilizes these opportunities to observe service and within design tolerances to Summary of comments: BSEE the independent third-parties and be utilized for specific well conditions, received a number of comments discuss the required verifications for the which can be verified through a data regarding the rulemaking process. Some associated operations with them. If review and does not require a physical commenters raised specific concerns BSEE becomes aware of any concerns presence. about the process. For example, a with the required independent third- Summary of comments: Commenters commenter asserted that BSEE engaged party certifications or verifications, suggested that BSEE should take steps to in an inadequate information-gathering there are still options for BSEE to ensure that any third-party is acting in process. Several others claimed the address the issues through the operator good faith before it verifies rig safety public comment period was too short, (e.g., verifications through the measures and that BSEE should provide and did not involve enough permitting process). additional explanation and justification participation from stakeholders. Other BSEE disagrees with the assertions to support the proposed change. • commenters expressed support for the that BSEE is surrendering authority to Response: BSEE agrees with the rulemaking process, asserting that this commenters that the independent third- approve third parties, that BSEE is rule would address perceived deficits in parties must act in good faith and be avoiding responsibilities for ensuring the previous rule. safety, or that the changes reduce capable and competent when oversight. The regulatory revision that conducting the required verifications • Response: BSEE disagrees with the eliminates the BAVO process will and certifications. The qualification assertion that the bureau provided an continue to meet the objectives BSEE requirements set forth in final unreasonably short public comment and stated in 2015: ‘‘The objective is to have § 250.732(b) are designed, in part, to that BSEE engaged in an inadequate this equipment monitored during its ensure such professional standards. If information gathering process. As entire lifecycle by an independent third- BSEE becomes aware of any concerns previously discussed, BSEE held a party to verify compliance with BSEE with certifications or verifications that public forum on September 20, 2017, in requirements, OEM recommendations, are performed by an independent third- Houston, Texas, prior to initiating the and recognized engineering practices. party as required by the regulations, rulemaking process, to solicit input on The BSEE believes that the importance BSEE retains options to address these the development of the proposed rule. and complexity of BOP systems and the potential issues through its regulation of In addition, BSEE accepted comments fact that they might be operated at the operator (e.g., verifications through through a ‘‘Request for comments’’ on various worldwide locations throughout the permitting process). the Department of the Interior’s their service life warrants a thorough Summary of comments: A commenter regulatory reform initiatives, published asserted that the proposed definition of and regular assessment of the systems in the Federal Register on June 22, 2017 independent third-party is too broad and verification that design, installation, (82 FR 28429), with no deadline for and would allow organizations or maintenance, inspection, and repair comments. BSEE received 19 comments activities are documented and individuals to perform verification relevant to this rulemaking from traceable.’’ (Proposed WCR, 80 FR activities without having the proper interested parties as a result of this 21504). expertise. The commenter recommends Although the regulations allow retaining and applying the current request for comments. BSEE published operators to select the independent BAVO requirements found in previous the proposed rule with a 60-day third party who performs the § 250.732(a)(3)(i) through (vi) to comment period that was scheduled to inspection, there are multiple paths by potential independent third-parties. close on July 10, 2018, and extended which BSEE can directly verify the • Response: BSEE disagrees with the that comment period by 27 days to adequacy of independent third party commenter’s suggestion to include the August 6, 2018. BSEE determined that performance. For example, BSEE will identified BAVO requirements in this this 87 day comment period on the continue to review the verifications and final rule. Final § 250.732 paragraph (b) proposed rule was reasonably sufficient certifications submitted by independent references the independent third party because it afforded interested parties a third parties and confirm that they qualifications. The existing regulations meaningful opportunity to participate in provide a sufficient level of detail to do not require a BAVO to be a technical the rulemaking process.

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Compliance With the Administrative Contrary to the commenter’s assertion, standards, the proposed rule would Procedure Act (APA) BSEE specifically discussed industry’s allow the oil and gas industry to Summary of comments: A commenter and BSEE’s current reliance on function regulate itself without government and hydrostatic tests and industry’s oversight. asserted that if BSEE chooses to publish • a final rule, then it must first provide concerns ‘‘related to the benefits of Response: BSEE disagrees. As analysis and data upon which the pressure and functional testing of discussed elsewhere in this final rule, proposed rule is based, in compliance subsea BOPs when compared to the BSEE incorporates technical standards with the fair notice requirements of the costs and potential operational by reference in accordance with the 16 Administrative Procedure Act (APA), issues.’’ BSEE requested comments on requirements of the National these specific tests and intervals, Technology Transfer and Advancement asserting that the APA requires BSEE to 18 provide specific revisions with data and including ‘‘[u]nder what circumstances Act (NTTAA) and implementing analysis supporting those proposals and or environments . . . the testing Office of Management and Budget to request further public comments on frequency [should] be increased or (OMB) guidance, the Office of the those specific proposed revisions, rather decreased,’’ and what ‘‘technologies, Federal Register (OFR) regulations (1 than simply ask for comments on a processes, or procedures can be used to CFR part 51), and BSEE’s own broad range of topics. The commenter supplement existing requirements and procedures for incorporation (§ 250.115, asserted that there are several places in provide additional assurances related to What are the procedures for, and effects the proposed rule where BSEE solicits the performance of this equipment.’’ of, incorporation of documents by comments for amending certain existing BSEE did not propose the regulatory reference in this part?). These processes provisions but provides no specific text adopted in the final rule regarding include thorough evaluation of the plans for how it intends to amend those BOP testing frequency. However, BSEE pertinent standards for appropriateness provisions and asserted that without a discussed all of the final rule elements and adequacy as regulatory defined course of action, the public in the proposed rule, and a reasonable requirements. The effect of cannot intelligently critique the commenter could have anticipated the incorporation by reference of an proposed rule. The commenter asserted adopted changes and the text of the final industry standard into the regulations is that BSEE did not include the analysis rule BOP testing frequency provisions that the incorporated document or data on which other proposed was a logical outgrowth of the proposed becomes a regulatory requirement, see revisions are based, thus precluding rule. BSEE specifically requested § 250.115(c), and, thus, becomes subject meaningful public criticism. comments on whether the BOP testing to BSEE oversight and enforcement in • Response: BSEE disagrees. The interval should be 21 days for all types the same manner as other regulatory APA’s notice and comment provision (5 of operations, including associated costs requirements. BSEE incorporates U.S.C. 553(b)) requires that an agency and operational considerations, and standards developed by SDOs with a test its regulation through exposure to highlighted questions surrounding the preference for those standards that are diverse public comment and give benefits of current testing requirements developed using a consensus process. affected parties an opportunity to compared to known concerns. 83 FR Furthermore, BSEE may incorporate develop evidence in the record to 22143. BSEE specifically requested portions of SDO standards, limit their support their positions regarding the comments on circumstances in which applicability to specified sections of rulemaking, thereby enhancing the testing frequency might be decreased BSEE’s regulations, and impose other quality of agency decisionmaking.14 As and alternative approaches to ensuring limitations such as providing that where evidenced by BSEE’s receipt of diverse, the operability and reliability of BOP a provision of an incorporated standard extensive public comments, the systems. Id. BSEE derived the final conflicts with BSEE regulatory proposed rule fairly apprised interested regulatory changes from comments provisions, those regulatory provisions parties about the rule’s detailed subjects received pursuant to the solicitations in prevail. If an SDO later revises a and the range of alternatives the bureau the proposed rule. The final rule’s BOP standard that BSEE has previously was considering. BSEE’s evaluation of testing interval constitutes a logical incorporated in a final rule, BSEE would the comments it received permitted the outgrowth from the proposed rule need to evaluate the revised standard bureau to test these final regulatory because interested parties should have before incorporating it through provisions. Through this rulemaking anticipated that this change was rulemaking in the regulations; in other process, BSEE provided ample and possible and, in fact, filed relevant words, industry itself cannot change the adequate notice of the potential for each comments.17 regulatory requirements by revising a regulatory change implemented through standard after that standard is this final rule and ensured that the Enforcement of Compliance With incorporated in BSEE’s regulations. Nor rulemaking record included adequate Documents Incorporated by Reference is industry authorized to oversee or justification for each such change. Summary of comments: A number of enforce compliance with standards once With regard to revisions to the BOP commenters asserted that, by relying on incorporated into regulation. Once system testing requirements, BSEE incorporation by reference of industry incorporated, BSEE enforces these solicited comments in the proposed rule standards as any other regulatory ‘‘on whether the BOP testing interval 16 Ibid. requirement. 17 ‘‘A rule is deemed a logical outgrowth if should be 7 days, 14 days, or 21 days Correcting Issues From the 2016 for all types of operations including interested parties ‘should have anticipated’ that the change was possible, and thus reasonably should Rulemaking Process drilling, completions, workovers, and have filed their comments on the subject during the decommissioning,’’ as well as comments notice-and-comment period.’’ NE Maryland Waste Summary of comments: A commenter ‘‘on the specific cost and operational Disposal Auth. v. E.P.A., 358 F.3d 936, 952 (D.C. asserted that this proposed rule implications of each testing interval.’’ 15 Cir. 2004) (internal cites omitted). See also, CSX corrected a failure in the 2016 WCR to Transp., Inc. v. Surface Transp. Bd., 584 F.3d 1076, provide a Statement of Energy Effects, as 1081 (D.C. Cir. 2009) (‘‘[A] final rule represents a 14 Prometheus Radio Project v. F.C.C., 652 F.3d logical outgrowth where the NPRM expressly asked required by E.O. 13211. According to 431, 449 (3d Cir. 2011), certiorari denied 567 U.S. for comments on a particular issue or otherwise 951 (2012). made clear that the agency was contemplating a 18 National Technology Transfer and 15 83 FR 22143 (May 11, 2018). particular change.’’). Advancement Act, 15 U.S.C. 370 et seq.

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the commenter, E.O. 13211 required APA and associated regulations and additional analyses of potential impacts BSEE to publish for public comment a guidance. are and will be performed. In addition, detailed statement relating to (1) ‘‘any guidance in OMB Circular A4 regarding Comments on Other Legal Issues adverse effects on energy supply’’ and the preparation of a regulatory impact (2) ‘‘reasonable alternatives to the Summary of comments: A commenter analysis (RIA) for significant action.’’ A commenter claimed that the asserts that the agency cannot adopt rulemakings states that agencies proposed rule makes adjustments to the new revisions in the final rule based on ‘‘should seek to use more rigorous 2016 rule to provide ‘‘economically solicited comments when the agency approaches with higher consequence feasible’’ regulations as required by did not propose those revisions in the rules.’’ BSEE evaluated the OCSLA.19 A commenter asserted that a proposed rule nor provide an recommendations from the stakeholders detailed evaluation of ‘‘reasonable opportunity for public comment on and commenters, considering a number alternatives’’ to the 2016 WCR ‘‘would those revisions. of factors including risk, benefits, and • necessarily have included use of Response: BSEE disagrees. BSEE cost. As previously discussed, consensus standards.’’ According to this decision-making regarding regulatory consistent with congressional same commenter, BSEE’s recent cost revisions is governed by the encouragement, BSEE solicited input impact assessment of the 2016 WCR requirements of the APA and associated from stakeholders early in this found needless waste under certain regulations and guidance. BSEE has rulemaking process to identify those provisions of the rule, leading to ‘‘idled complied with the notice and comment provisions of the existing regulations rigs, unnecessary new equipment, requirements of applicable law with that BSEE could amend, revise, or unnecessary reporting, non-productive respect to all provisions of the final rule. remove to reduce unnecessary burdens time, and lost production opportunities, Any provisions not specifically on stakeholders while still maintaining all of which have no offsetting benefit proposed in the proposed rule reflect safety and environmental protection. to safety or environmental protection.’’ existing requirements and/or are logical BSEE generally focused on those This commenter contended that the outgrowths from the proposed rule. provisions in the existing regulations Summary of comments: A commenter proposed rule included adjustments to that did not significantly enhance asserted that BSEE must perform a the 2016 WCR that provide worker safety or environmental Quantitative Risk Analysis (QRA) before economically feasible avenues for protection. BSEE can realistically conclude that the reaching the safety and environmental With respect to ESA consultation, changes ensure safe operations. In goals required by OCSLA. One BSEE considered the ongoing Section 7 addition, the commenter asserted that commenter asserted that E.O. 13211 is ESA consultations with the U.S. Fish BSEE must evaluate the significant unconstitutional, so any reliance on it is and Wildlife Service, and whether this environmental impacts of the rule would affect any listed species or unlawful. rulemaking by preparing an • Response: BSEE’s articulation of its habitat. The National Marine Fisheries Environmental Impact Statement (EIS). 2016 position with respect to the Service expressly excluded this rule The commenter based this assertion on applicability of E.O. 13211 to the 2016 making from the ongoing programmatic the requirement under the National WCR constitutes the best evidence of consultation. The final rule would not Environmental Policy Act (NEPA) to the bureau’s position.20 The OCSLA give rise to any additional or modified take a ‘‘hard look’’ at the cumulative provision cited by the commenter activities that would affect listed species impacts the rulemaking would have on addresses economic feasibility with or designated critical habitat. BSEE has water resources, wildlife, coastal determined that the final rule will have respect to the use of certain technologies habitats, marine species, air quality, and during OCS operations, not with respect ‘‘no effect’’ on listed species or sociocultural and economic systems, designated critical habitat. BSEE has to the economic feasibility of regulatory including direct and indirect impacts. updates.21 This rulemaking does not determined that ESA consultation is The commenter also asserted that the therefore not required for this rule. make a determination regarding the rulemaking requires BSEE to undertake economic feasibility of any technology Endangered Species Act (ESA) Comments on Best Available and Safest under 43 U.S.C. 1347(b). As explained consultations because removing certain Technology (BAST) Requirement in in more detail in section I of this final regulatory provisions regarding OCSLA rule preamble, E.O.s 12866 and 13563 environmental and worker protections Summary of comments: A commenter direct BSEE to assess the costs and may affect listed species and critical emphasized that OCSLA requires BSEE benefits of available regulatory habitat. to ensure that operators use ‘‘the best alternatives and, if regulation is • Response: BSEE disagrees with the available and safest’’ technology (BAST) necessary, to select a regulatory claim that a QRA is the only way for possible, unless BSEE determines that approach that maximizes net benefits BSEE to conclude that these changes the narrow impracticability exception (accounting for the potential economic, ensure safe operations. As more fully applies. The commenter asserted that environmental, public health, and safety discussed in the final Environmental BSEE failed to ensure or otherwise effects). As a general matter, BSEE Assessment (EA), NEPA requires that determine that the proposed rule meets informs its decision-making with BSEE take a ‘‘hard look’’ at the potential these requirements. This commenter respect to rulemaking through impacts of a rulemaking, however it asserted that before BSEE may rescind fulfillment of the requirements of the does not specifically require a QRA. and revise technological requirements BSEE took its ‘‘hard look’’ through the that were determined to meet the 19 The commenter cited 43 U.S.C. 1347(b) as the basis for its assertion. BSEE–2018–0002–0050 final EA, and reached a Finding of No requirements of BAST, BSEE is Attch. 1 (p. 3). Significant Impact (FONSI), obligated to demonstrate compliance 20 81 FR 25888, 26013 (April 29, 2016). demonstrating that an EIS is not with BAST by ensuring that those 21 43 U.S.C. 1347(b) states, in part: ‘‘[The required. Further, before any actual revisions are as good as the original Secretary] shall require, on all new drilling and operations can be conducted on the requirements. The commenter production operations and, wherever practicable, on existing operations, the use of the best available OCS, there are a number of additional maintained that BSEE may not adopt the and safest technologies which the Secretary stages (e.g., leasing program, lease sales, proposed revisions without a determines to be economically feasible . . . .’’ planning, permitting) at which determination that the benefits of the

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original provisions are clearly • Response: BSEE disagrees. The Pursuant to those Orders, BSEE insufficient to justify the incremental APA’s provisions regarding notice and evaluated existing regulatory provisions costs of implementing these comment (5 U.S.C. 553(b) and (c)) to identify unnecessary regulatory technologies. This commenter asserted require that an agency test its regulation burdens, but always within the bounds that BSEE must provide information through exposure to diverse public of maintaining safety and environmental demonstrating that the rulemaking will comment and give affected parties an protection. BSEE believes that its meet the BAST requirements of OCSLA. opportunity to develop evidence in the process accomplished these goals A commenter urged BSEE to record to support their positions without ‘‘weaken[ing]’’ existing expeditiously finalize its consideration regarding the rulemaking, thereby regulation or failing to maintain safety of the potential revisions to § 250.107. enhancing the quality of agency and environmental protection. BSEE’s • Response: The Conference Report decisionmaking.25 BSEE provided articulation of these sound reasons for regarding OCSLA’s BAST provision 22 thorough and reasoned explanations for its regulatory decisions demonstrates explains that that this provision requires its proposed regulatory actions and that it is not acting arbitrarily or the Secretary to make a ‘‘determination submitted them to public comment. capriciously.26 BSEE disagrees with the as to what are the best available and BSEE’s evaluation of the comments it commenter’s assertion that this rule safest technologies economically received permitted the bureau to test would increase the likelihood of an 23 feasible ....’’ Neither the 2016 these final regulatory provisions. event similar to DWH. As discussed in WCR nor this rule made or makes any Through this rulemaking process, BSEE section I.D of this preamble, this such determination with respect to any provided ample and adequate notice of rulemaking reduces regulatory burden specific technology. Therefore, in this each regulatory change implemented while maintaining safety and rule, the Secretary has not undertaken through this final rule and ensured that environmental protection. any BAST evaluation of economic the rulemaking record included feasibility of any specific technology, adequate justification for each such F. Economic Comments nor did the Secretary do so in the change. Further, BSEE undertook its Comments on Cost and Benefits context of the 2016 WCR (see, e.g., 81 review of the provisions of existing Summary of comments: Some FR 25901; 25911; and 25929). Thus, the regulations as promulgated through the commenters made assertions regarding BAST statutory requirement does not 2016 WCR pursuant to the direction of the cost/benefit aspects of the proposed apply here because this rulemaking multiple Executive Orders and rule as presented in the initial makes no BAST determinations, nor Secretary’s Orders, as well as regulatory impact analysis (IRIA). These does it alter any existing BAST congressional direction. Thus, BSEE comments were varied in scope and in determinations. The BAST statutory faithfully implements OCSLA and fully position. Some commenters supported requirement is independent from complied with procedural legal the overall conclusion of the IRIA, that OCSLA’s provisions establishing the requirements, including those BSEE is alleviating unnecessary Secretary’s authority to promulgate applicable to this rulemaking. regulations to govern OCS operations.24 regulatory burdens on industry with no Comments on Weakening of foregone benefit to the public. Many Comments on Grounds for Decisions Requirements commenters challenged this conclusion, Summary of comments: A commenter Summary of comments: One both for the rule as a whole and with asserted that BSEE failed to meet the commenter strongly opposed the respect to some of the individual APA’s legal standards and argued that proposed rule, asserting that the provisions. Commenters often BSEE must provide ‘‘the grounds of its proposal to weaken the existing well supported their claims with decision and the essential facts upon control regulations, just two years after descriptions in the 2016 WCR or by which the administrative decision was they were promulgated, and before some highlighting statements from the based,’’ and ‘‘good reasons’’ for the provisions of the regulations are multiple investigative and engineering proposed changes in policy, explaining effective, would increase the likelihood studies following the Deepwater the reasons why BSEE disregarded the of another Deepwater Horizon disaster. Horizon incident in 2010. ‘‘facts and circumstances that underlay The commenter observed that the Most comments did not challenge the or were engendered by’’ the prior rule. previous rulemaking was specifically IRIA’s methodology or the compliance The commenter asserted that BSEE designed to prevent another scenario cost or savings estimates. Commenters needs to provide a more detailed similar to the Deepwater Horizon event. that noted these did so generally, justification, providing ‘‘reasoned The commenter stressed that this action usually in the context of added risks or explanation.’’ The commenter also would ‘‘epitomize an arbitrary and foregone benefits to the public. In other asserted that it is arbitrary and words, commenters mostly accepted the capricious for BSEE to assume that the capricious reversal of position.’’ • Response: The APA requires that compliance savings estimates in the proposal to repeal regulations, that two BSEE give a ‘‘general statement of [the IRIA, but asserted that it was incomplete years ago BSEE found would provide regulations’] basis and purpose.’’ (5 and that BSEE essentially ignored the significant societal benefits, will not U.S.C. 553(c)). As previously described, ‘‘benefit’’ part of a cost-benefit analysis. have an effect on societal costs and BSEE broadly based this rulemaking on On this basis, one commenter benefits. congressional guidance, interaction with challenged BSEE’s ‘‘neutral’’ stakeholders, BSEE’s experience designation for safety and environment 22 43 U.S.C. 1347(b). impacts, claiming it treats foregone 23 implementing the 2016 WCR, BSEE’s Conf. Rpt. 95–1091 (Aug. 10, 1978) (p. 109). benefits as having zero value. The 24 43 U.S.C. 1334(a) states, in part: ‘‘The Secretary recognition of technological shall . . . prescribe . . . regulations as may be advancements, and directions contained commenter further asserted, ‘‘BSEE necessary to carry out [OCSLA]. The Secretary may in Executive and Secretary’s Orders must analyze and monetize the forgone at any time prescribe and amend such . . . societal benefits from [the proposed regulations as may be necessary and proper in order issued subsequent to the 2016 WCR. to provide for the prevention of waste and rule] that it analyzed and monetized in conservation of the natural resources of the [OCS], 25 Prometheus Radio Project v. F.C.C., 652 F.3d and the protection of correlative rights therein 431, 449 (3d Cir. 2011), certiorari denied 567 U.S. 26 See, Natl. Indus. Sand Ass’n v. Marshall, 601 . . . .’’ 951 (2012). F.2d 689, 717 (3d Cir. 1979).

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2016, including the risk reduction changes that would be considered a Another commenter made a similar benefits.’’ In the absence of such an ‘‘logical outgrowth’’ of the proposed assertion regarding BSEE’s position that analysis, a separate commenter asserts rule. These comments suggested that the rule would not cause major that, ‘‘BSEE provides no evidence that BSEE should revise provisions that it increases in cost or prices, and asserted the existing rule is actually a burden or did not propose for modification in the that this position does not address that removing safeguards will ensure Notice of Proposed Rulemaking (NPRM) important risk factors. The commenter adequate protections remain in place.’’ and that it did not analyze in the IRIA. asserted that the proposed rule failed to Further comments suggest the savings BSEE considers the suggestions made in account for foregone benefits along with estimates presented in the IRIA are these comments to be outside the scope the avoided costs. The commenter insignificant in comparison to the of this rulemaking. asserted that because the proposed billions in gross domestic product (GDP) revisions ‘‘would have a positive annual Comments on the Elimination of BAVO generated by the coastal communities effect on the economy of $100 million Requirements placed at greater risk if this rule is or more,’’ this rulemaking is subject to finalized—a risk, commenters note, Summary of comments: Regarding the cost-benefit analysis requirements BSEE did not evaluate. Variations of elimination of the BAVO framework, a under E.O.s 12866 and 13563, as well as these claims are found in multiple commenter asserted that, based on the OMB Circular A–4. The commenter comments. supporting RIA for the 2016 WCR, asserted that BSEE claimed it has • Response: The 2016 WCR did not ‘‘BSEE estimated that the BAVO system conducted the required analysis, but make specific claims regarding the would result in a mere $10,000 in argued that while BSEE’s analysis reduced risk created by the provisions annual costs to operators and quantifies industry’s anticipated in that rulemaking. A breakeven verification organizations. BSEE has reduction in compliance costs, it does analysis of the rule’s total compliance provided no evidence that such a small not address the foregone benefits of costs claimed only that BSEE believed annual cost outweighs the critical protections against the types of spills the risk reduction was greater than one benefits of the BAVO system.’’ that have cost billions of dollars to percent. This final rule does not modify • Response: As discussed previously, remediate. The commenter further or change the overwhelming majority of BSEE concluded that the use of asserted that BSEE simply stated that, the provisions codified in the previous independent third parties will provide ‘‘[t]he proposed amendments would not rulemaking. Further, BSEE identified the same level of safety as the BAVO negatively impact worker safety or the the changes being made specifically framework. Implementation of the environment.’’ The commenter observed because they maintain safety and BAVO framework would also impose that the economic analysis conducted environmental protection, and the meaningful costs and burdens on BSEE. for the 2016 WCR ‘‘quantified and societal benefits associated therewith. BSEE considers any compliance cost monetized the potential benefits of the The revisions made through this that does not contribute to safety or rule, including time savings, reductions rulemaking exemplify that there are environmental protection burdensome in oil spills, and reductions in multiple approaches to maintaining and therefore believes it is appropriate fatalities.’’ safety and environmental protection, that the regulatory impact analysis One commenter asserted that the and the associated societal benefits. As reflect a compliance savings and no rulemaking is consistent with the discussed in the ‘‘Section-by-Section foregone public benefit. Executive and Secretary’s Orders, in Summary’’ discussions in this preamble, that the rulemaking would remove this final rule leaves in place several of Comments on Lack of a Risk Analysis or undue burdens on operators. The the provisions proposed for revision in Risk Assessment and Financial Analysis the proposed rule. The final rule focuses commenter supported BSEE’s assertion only on those provisions that are Summary of comments: Several that the proposed rule would increase expected to reduce unnecessary burdens comments asserted that the proposed the competitiveness of America’s on operators, while still maintaining rule lacks sufficient risk analysis and offshore energy industry. safety and environmental protection. asserted that additional analyses are Another commenter asserted that the Accordingly, BSEE has adequately required, while other commenters stated proposed rule would hold risk to an incorporated those benefits into its they were satisfied with the proposed acceptable level and that the risk-based formulation of this final rule. risk assessment. standards and procedures as currently One commenter asserted that BSEE used by operators are sufficient to Comments on Compliance Costs or claimed the proposed rule would not maintain well control. The commenter Savings Estimates cause a major increase in costs or prices asserted that operators can maintain Summary of comments: BSEE for: Consumers; individual industries; well control and manage events safely received few comments on compliance Federal, State, Tribal, or local when: Wells are designed for the range cost or savings estimations in the IRIA. governments; or regions of the nation. of anticipated risk; equipment and One commenter resubmitted a cost The commenter then asserted that these safeguards have the required analysis prepared for the 2016 WCR to conclusions do not consider the risk of redundancy and are properly support the position that BSEE should another spill like Deepwater Horizon or maintained and tested; personnel are revise additional provisions not consider the impacts of that event trained; tests and drills are conducted; included in the proposed rule. related to the shutdown of fishing and and established procedures are Similarly, a separate commenter tourism businesses for months or longer. followed. The commenter emphasized highlighted an unspecified cost burden The same commenter noted that the importance of highly skilled and related to the retention period of real- according to BSEE, the proposed trained personnel on location who are time monitoring data as defined by a changes would reduce regulatory costs able to provide timely and effective well provision not proposed for revision in over a 10-year period at a rate less than control and safety decision making. The the proposed rule. $1 billion total, which the commenter commenter also recommended that • Response: BSEE’s rulemaking asserted is a relatively small amount BSEE consider these general operating process revises only the provisions when compared to the damage of one oil practices when finalizing this and other identified in the proposed rule and spill. regulations.

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• Response: BSEE disagrees with the received through the SafeOCS program requires ‘‘both shear rams to be capable commenters’ assertion that BSEE did on BOP equipment component failures of shearing’’ the specified equipment not consider risk in the development of on the OCS and other key information, run in the hole. BSEE proposed to the proposed and final rule. BSEE such as failure causes, operational change this provision to require only evaluated operational considerations, impacts, and opportunities to improve that a ‘‘combination of the shear rams equipment design and specifications, data quality. More information on the must be capable of shearing’’ the and relevant public input and SafeOCS reporting system and copies of specified equipment run in the hole. As comments to identify appropriate the 2016 and 2017 BTS reports are previously stated, BSEE based the revisions. As previously discussed in available at: https://www.safeocs.gov/ decision not to make that change in this this preamble, BSEE carefully wcr_home.htm. final rule on consideration of the public considered potential changes to these (2) Argonne National Laboratory comments on the proposed rule, the regulations, under direction to identify (ANL) 2017 report and updated 2018 importance of shearing redundancy, and possible revisions that would reduce report on Risk-Based Evaluation of the potential ambiguity the change unnecessary regulatory burdens on Offshore Oil and Gas Operations Using would create regarding the number of stakeholders, while still maintaining a Multiple Physical Barrier Approach. rams subject to this shearing safety and environmental protection. As This project was designed to assist BSEE requirement. For more information on discussed qualitatively in the RIA, BSEE in developing a multiple physical specific proposed provisions that are determined that the selected revisions barrier (MPB) model of risk analysis. not being codified in this final rule, are likely to maintain the same worker The project resulted in a risk-analysis refer to section V of this preamble. safety and environmental protection as technique, developed by ANL, that Concerning the comment that the 2016 final rule, therefore BSEE did focuses on the use of physical barriers recommended that BSEE consider these not evaluate the costs related to a to prevent hydrocarbon release. BSEE general operating practices when potential increase in spills or safety has used a multiple barrier approach as finalizing these and other regulations; issues. BSEE recognizes that pursuant to part of its approach to regulations for BSEE agrees and does this routinely as OMB guidance (OMB circular A–4),27 many years. This project supports that part of developing regulations and agencies are encouraged to ‘‘seek to use approach through the development of a policies. The incorporation by reference more rigorous [economic analysis] formalized methodology for evaluating of industry developed standards in the approaches with higher consequence process safety, to ensure that success regulations is one approach BSEE uses rules,’’ i.e., those rulemakings that are paths (e.g., systems, components, and to address general operating practices expected to have annual benefits and/or human actions needed to ensure the used by the industry. Since these costs in the range from $100 million to success (of a barrier)) are in place and documents are developed by industry, $1 billion. BSEE recognizes that there is are capable of performing their they reflect common industry practices. a potential relationship between a functions in all expected conditions and BSEE also considered input from decrease in regulatory requirements and circumstances. The initial (2016) ANL industry to identify those provisions an increase in risks. However, during project resulted in a joint industry from the existing regulations that were the rulemaking process, BSEE project (JIP), a case study on plug and unduly burdensome, although this was considered the potential impacts of abandonment barriers. More not the only input that BSEE considered contemplated revisions to safety and information on this project and the two in determining how to revise these environmental risks to identify those ANL reports is available at: https:// regulations. www.bsee.gov/research-record/risk- revisions that would reduce burdens on Comments on Potential Safety Impacts based-evaluation-of-offshore-oil-and- operators while maintaining safety and of Proposed RTM Rrevisions environmental protection. While BSEE gas-operations-using-a-multiple- did not develop a specific risk analysis physical. Summary of comments: One for this rulemaking, BSEE considered Regarding the comments on BSEE’s commenter asserted that BSEE must potential risks as part of the process of determination that the proposed rule ascertain whether removing certain developing this rule and RIA. BSEE has would not cause a major increase in provisions, such as RTM requirements, a number of completed and ongoing costs or prices, the revisions to the would increase the risk of human error, efforts related to evaluating risk in OCS regulatory requirements in this final or remove a check on human error, operations. BSEE considered rule are expected to reduce unnecessary regarding the need for an operator’s information from these efforts when burdens, while still maintaining safety offshore and onshore teams to come to evaluating the requirements of the and environmental protection. The 2016 consensus on how to proceed. The current well control regulations to WCR did not make specific claims commenter also asserted that BSEE must identify requirements that could be regarding the risk reduction created by provide quantitative risk analyses to revised while still maintaining safety the provisions in that rulemaking. A support the proposed rule provisions, and protection of the environment. breakeven analysis of the rule’s stating that such an analysis is critical Among the ongoing efforts considered compliance costs claimed only that to understanding whether BSEE’s by BSEE that address well control- BSEE had concluded that the risk proposal to rescind such built-in safety related risk issues, are: reduction was greater than one percent checks would impermissibly undermine (1) The SafeOCS failure reporting (81 FR 25987). This final rule does not safety. The commenter also cited program, and the ‘‘Blowout Preventions modify or change the overwhelming System Risk Assessment and System Events and Equipment majority of the provisions codified in Management (SRAM) as an approach Component Failures’’ 2016 Annual the 2016 WCR. BSEE determined that that works effectively in other countries. • Report and ‘‘Blowout Preventions the selected revisions are likely to Response: The final rule revises System Safety’’ 2017 Annual Report on maintain safety and environmental part of the existing RTM requirements, failures, by BTS. These reports include protection. but does not entirely remove them. summaries and analysis of the data This final rule does not codify some Section 250.724 paragraph (a) of the provisions of the proposed rule. One final rule continues to require RTM 27 https://www.whitehouse.gov/sites/ example is the proposed revision to when operators conduct ‘‘well whitehouse.gov/files/omb/circulars/A4/a-4.pdf. existing § 250.734(a)(1)(ii), which operations with a subsea BOP or with a

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surface BOP on a floating facility, or Comments on Financial Assurance location of potential leasing activity that when operating in a high pressure high Summary of comments: A commenter the Secretary determines will best meet temperature (HPHT) environment.’’ The asserted that operators should provide national energy needs for the five-year operator must ‘‘gather and monitor real- evidence of financial ability to plug period under consideration. The Leasing time well data using an independent, wells and cover lost income, including Program is subject to its own separate automatic, and continuous monitoring the loss of income to those who rely on public comment processes and is system capable of recording, storing, f clean ocean for their livelihoods. beyond the scope of this rulemaking. and transmitting data.’’ This includes • Response: BSEE assumes that this While certain regulations apply data regarding the BOP control system, comment is related to financial exclusively to certain regions, the bulk the well’s active fluid circulating assurance (bonding) issues. BSEE does of BSEE’s regulations apply to the entire system, and the downhole conditions not regulate financial assurance for the OCS regardless of location. As analyzed with bottom hole assembly tools. offshore oil and gas industry; the Bureau throughout, BSEE disagrees with the of Ocean Energy Management’s commenters’ assertion that this The final rule continues to require rulemaking weakens the precautions to operators to transmit such data as they (BOEM’s) regulations at 30 CFR parts 553, Oil Spill Financial Responsibility prevent spills and incidents. are gathered in accordance with a real- Accordingly, the impacts of this rule are time monitoring plan. The final rule for Offshore Facilities and 556, Leasing of Sulfur or Oil and Gas and Bonding not pertinent to commenters’ concerns, requires that operators have the and any concerns related to the capability to monitor the data using Requirements in the Outer Continental Shelf address that responsibility. expansion of operations into new areas qualified personnel. In addition, BSEE should be directed toward BOEM’s requires the operator to develop and G. Environmental Comments proposed Leasing Program, as that is not maintain a real-time monitoring plan Comments on the OCS Leasing Program a subject of this rulemaking. Regardless that meets certain specified criteria. of the BOEM leasing pace, BSEE permits Summary of comments: A number of The final rule removes the language in operations on an individual well-by- commenters addressed elements of the existing § 250.724(b) discussing contact well basis taking into account site- BOEM draft proposed 2019–2024 between onshore and offshore personnel specific environmental and operational National OCS Leasing Program (Leasing and stating that, after completing conditions to help ensure safety and Program). These commenters focused on operations, the operator must preserve environmental protection. the potential impacts of the proposed and store these data for recordkeeping BSEE disagrees that the regulations regulations in conjunction with the purposes as required in §§ 250.740 and are being weakened and it selected the potential for oil and gas exploration and 250.741, and must provide BSEE with revisions implemented through this rule development in areas that could be access to the designated real-time based in part on the fact that they are opened for leasing under BOEM’s monitoring data onshore upon request. likely to maintain the same level of proposed Leasing Program. One The final rule also removes the safety and environmental protection for commenter asserted that BOEM’s requirement from § 250.724 that the OCS activities as established by the proposed expansion of leasing would operators include certifications that they 2016 final regulations. This rulemaking entail the issuance of leases at a pace have a real-time monitoring plan in does not revise or reduce the oil spill that exceeds the pace of recent leasing their APD. These provisions are response plan requirements. activities. The commenter further prescriptive, but unnecessary. The asserted that this would lead to an General Comments on Environmental regulations still require the operator’s increase in the risk of spills, blowouts, Impacts RTM plan to describe how the data will and other consequences, and that the Summary of comments: Multiple be transmitted and monitored by leases would be issued in areas where commenters were concerned that the qualified personnel, procedures for, and there is currently no oil and gas proposed rule would increase methods of, communication between rig production and little or no production environmental impacts of drilling and personnel and monitoring personnel, of oil and natural gas has taken place. other well operations, thus negatively and actions to be taken in the event of The commenter asserted that the affecting the environment. One loss of communications. Further, the proposed rule would weaken the commenter asserted that the penalties existing regulations (§§ 250.740 and precautions in place to prevent these imposed for failures are insufficient to 250.741) already specify recordkeeping consequences just as offshore drilling motivate operators to comply with the requirements for all of Subpart G. BSEE would begin in areas that are not regulations. The commenter asserted also has the authority to request these prepared to respond to spills. that the 2016 WCR was overly records from the operators. Removal of Some comments asserted that the conservative in its estimations of its these redundant or unnecessary proposal in the Leasing Program to environmental benefits. The commenter requirements for storage of RTM data expand OCS leasing into additional also asserted that BSEE admitted that it from § 250.724 do not remove the geographic areas would magnify any understated the environmental benefits obligation for the operator to develop reduction in safety and environmental when BSEE assumed that the rule and implement an RTM plan, which protection resulting from the proposed would reduce oil spill risk by only one includes a description of how the data revisions in this rulemaking. Some percent per year. The commenter will be stored; therefore, the change in commenters asserted that BSEE must asserted that this mistake is further risk is minimal and a quantitative risk consider the impacts that the proposed compounded by the fact that BSEE analysis, as suggested by the commenter rule would have under the expanded relies on this erroneous one percent is not needed. Leasing Program proposed by BOEM. reduction of risk assessment in its costs Regarding the commenter’s mention • Response: BSEE is aware of BOEM’s reduction analysis for the proposed of the SRAM, BSEE recognizes that Leasing Program. The proposed Leasing revisions to the regulations promulgated there are numerous ways to approach Program is a separate action by BOEM, through the 2016 WCR. The commenter risk assessments and may consider other which is a separate bureau from BSEE also asserted that a significant monetary approaches for future policies or within the Department. The Leasing imbalance exists between current civil regulations. Program specifies the size, timing, and penalties and operating costs; asserting

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that the penalties are too small to deter BSEE generally agrees with the that the proposed rule would increase risk-taking and provide a financial commenters’ assertions about the the risk of significant impacts. As incentive to disregard regulatory importance of civil penalties. However, previously mentioned, BSEE considered compliance. The commenter, however, those considerations are beyond the potential risks while developing the acknowledged that BSEE cannot address scope of this rulemaking. BSEE also final rule. In particular, we concluded this problem through regulations, and agrees that the sufficiency of the that the risk of a catastrophic oil spill is that Congress needs to mandate maximum civil penalties allowable not increased by the regulatory revisions penalties that will discourage this under OCSLA is a question that would of this rule. These considerations behavior. need to be addressed by Congress. BSEE included the public’s input on the A different commenter expressed also generally agrees with the proposed rule and information from a concern regarding how the proposed commenters’ assertions about the number of BSEE efforts related to rule would negatively affect the importance of decommissioning. evaluating risk in OCS operations—such environment. The commenter expressed However, this aspect of as BSEE’s SafeOCS failure reporting opposition to any provisions of the decommissioning operations is also program and the ANL report on Risk- proposed rule that would weaken beyond the scope of this rulemaking. Based Evaluation of Offshore Oil and Gas Operations Using a Multiple requirements for decommissioning, Comments on the Need for an EIS such as possibly excluding Physical Barrier Approach. These decommissioning from RTM Summary of comments: Multiple various sources of information led BSEE commenters recommended that BSEE requirements. The commenter to identify changes to the regulations should prepare an EIS. These referenced a 2010 article by the implemented through the 2016 WCR commenters asserted that the Associated Press asserting that there are that would reduce regulatory burden environmental impacts discussed in the more than 27,000 sealed and abandoned while maintaining safety and draft EA are significant in scope and oil and gas wells in the Gulf of Mexico, environmental protection on the OCS. intensity and that the impacts of a with more than 3,200 wells classified as For example, the final rule does not catastrophic discharge would be severe. active that have no cement plugging. include certain changes initially The commenters also asserted that the The commenters asserted that these mentioned in the proposed rule that proposed rule would increase the risk of 3,200 wells pose a significant risk to the would have eliminated the requirement significant impacts; therefore, BSEE for both shear rams in a BOP to be health of the Gulf and coastal should prepare an EIS for this communities because the factors that capable of shearing specific equipment rulemaking. Another commenter run in the hole and eliminated could lead to leaks are not being asserted that the standard for triggering monitored. The commenter noted that requirements related to pipe positioning an EIS is low and that an EIS should be for shear rams. Inasmuch as the impacts in recent years, millions of dollars from prepared when substantial questions are Deepwater Horizon recovery and of the rule are either neutral or positive, raised about whether a project may have the potential for expansion of the restoration funds were provided to state a significant impact on the environment. programs to safely plug abandoned geographic area subject to leasing does A commenter also asserted that agencies not increase the risks to a level wells. The commenter asserted that must identify their methodologies, approaching significance. General BSEE should strengthen requirements indicate when information is statements of dissatisfaction with the for decommissioning activities to incomplete or unavailable, acknowledge draft EA’s analyses or general prevent the risk of future leaks. scientific disagreement and data gaps, • statements regarding NEPA legal Response: BSEE disagrees with the and evaluate indeterminate adverse standards, do not assist BSEE in commenters’ assertions that the selected impacts based on approaches or providing any supplemental analysis regulatory revisions would negatively methods ‘‘generally accepted in the that could assist the public in affect the environment. BSEE has scientific community.’’ Some understanding the potential determined that this rulemaking does commenters asserted that BSEE’s environmental impacts of the final rule. not alter the baseline (2016 level) risk utilization of an environmental profile of the 2016 WCR, for the reasons assessment is unsupportable because of Comments on the Adequacy of Impacts specified in the rule and RIA. There are the potential effects from a possible Analysis no benefits (forgone or otherwise) to catastrophic oil spill, like the Deepwater Summary of comments: A number of quantify because the baseline risk Horizon incident, and BOEM’s plans to comments asserted that BSEE’s analyses profile is unchanged. Therefore, those dramatically expand the scope of of impacts on environmental resources forgone benefits are ultimately offshore drilling through the National are inadequate. One comment asserted quantified at zero. In the EA, BSEE OCS Program under development. that BSEE’s one-sided evaluation of evaluated the revisions in this • Response: BSEE disagrees that the economic impacts violates NEPA and rulemaking to focus the impact analyses potential impacts of the rule are that the analysis fails to address the on those revisions that could potentially significant. BSEE used the best available ‘‘crippling economic consequences of change operators’ responsibilities for scientific information to conduct a failing to prevent an oil spill that could how they conduct their operations. The comprehensive review of the potential have been prevented under the 2016 impact analysis focuses on the likely environmental impacts of the provisions well control rule.’’ Another comment impacts associated with a possible loss of the proposed rule. More specifically, asserted that the draft EA fails to of well control, discharges of BSEE reviewed and incorporated the disclose and analyze impacts to water hydrocarbons to the environment, and impact analyses from multiple existing resources, wildlife on nearby habitats, air pollution emissions associated with environmental documents into the draft air quality, sociocultural systems, testing activities. BSEE evaluated the EA and determined that there were no commercial and recreational fisheries, impacts of the final rule provisions and significant environmental impacts tourism, and recreation, as well as determined that none of the provisions associated with any of the NEPA cumulative impacts. The commenter will significantly impact the quality of alternatives considered, and, most also disapproved of BSEE’s the human environment under NEPA importantly, with the provisions in this determination that consultation for (refer to the final EA and FONSI). final rule. Furthermore, BSEE disagrees threatened and endangered species is

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not necessary at this time. The may be attributed to this rulemaking in improve safety by aligning the commenter asserted that BSEE’s order to estimate its environmental regulations with actual industry conclusions are not supported by any effects. BSEE acknowledges that there is practices; by incorporating the standard qualitative or quantitative analysis and some level of risk associated with it would apply to operators, suppliers, therefore fail to satisfy the hard look offshore oil and gas activities; however and contractors; and that the standard requirement of NEPA. the scope of this EA is limited to this would provide for timely introduction • Response: BSEE stands by the rulemaking, which adopted changes to and management of new technology. conclusions provided in the EA, while the current regulations that reduce A commenter asserted that the noting that BSEE used the best available regulatory burdens while maintaining economic production of crude oil and scientific information to conduct a safety and environmental protection. natural gas in the Gulf of Mexico is vital comprehensive review of the potential The cumulative impacts analysis to the U.S. economy and American environmental impacts. This considered the baseline data included in consumers. The commenter emphasized information includes multiple existing Chapter 3, Affected Environment, which the importance of ensuring that any environmental analysis documents, describes current conditions and past regulations BSEE adopts optimize risk listed in the next paragraph, as well as and ongoing impacts on the resources reduction without making development information received through public that could potentially be affected by the and production uneconomic or unsafe. comment on the proposed rule and a activities included under each A commenter asserted that new number of BSEE efforts (e.g., ANL alternative, as well as reasonably technologies can provide industry with studies) related to evaluating risk in foreseeable future activities that should operational information. The OCS operations. As previously be taken into account. The EA commenter asserted that the industry mentioned, the changes to the appropriately describes and analyzes all and BSEE recognize that technologies regulations promulgated through the of the current and reasonably already exist, or are in development, 2016 WCR are limited only to those that foreseeable future impacts from other that can provide operators with data would reduce regulatory burden while activities described in the Cumulative regarding the equipment’s performance. maintaining safety and environmental Effects section 4.5 of the EA based on The commenter asserted that use of protection on the OCS. Those comments the estimated negligible to small these and other emerging technologies, that express general dissatisfaction with impacts attributed to promulgating the along with API Standard 53 failure the analyses do not provide any final regulations in this rulemaking reporting, may lead to advances that supplemental analysis that could assist under Alternative 4, and the small further improve safety and reliability. • Response: BSEE agrees with the the public in understanding the contribution to total cumulative comments generally supporting the potential environmental impacts of the impacts. rule. BSEE considered the ongoing Section selected revisions. BSEE has reviewed The project area evaluated in the EA 7 ESA consultations with the U.S. Fish all comments submitted and is revising is fully described in Chapter 3 of the and Wildlife Service and National the proposed rule as appropriate. BSEE responds directly to comments on EA, Affected Environment. The EA Marine Fisheries Service, and whether specific provisions and discusses the incorporates by reference baseline this rule would affect any listed species final rule provisions in section V of this information regarding resources that are or habitat. The final rule would not give preamble. relevant to the operations conducted rise to any additional or modified under the revised regulations from the Summary of comments: Several activities that would affect listed species commenters asserted that the proposed Final Programmatic Environmental or designated critical habitat. BSEE has Impact Statement; Outer Continental rule failed to adequately demonstrate determined that the final rule will have how it will protect safety. Another Shelf Oil and Gas Leasing Program: ‘‘no effect’’ on listed species or 2017–2022; Final Environmental Impact commenter asserted that the proposed designated critical habitat. BSEE has Statement; Gulf of Mexico OCS Oil and rule allows operators to govern their determined that ESA consultation is Gas Lease Sales: 2017–2022; Gulf of own safety. The commenter asserted therefore not required for this rule. Mexico Lease Sales 249, 250, 251, 252, that the proposed revisions would allow 253, 254, 256, 257, 259, and 261; Final H. Miscellaneous Comments a substantial degree of self-governance Programmatic Environmental to the operators and that this is an Comments on General Safety Issues Assessment of the Use of Well industry that has demonstrated an Stimulation Treatments on the Pacific A number of comments discussed inability to obtain oil in a safe, Outer Continental Shelf: May 2016; and overall safety issues purportedly responsible way. The commenter the Final Environmental Assessment; implicated by the rulemaking, not referred to a recent series of surprise Oil and Gas and Sulfur Operations on related to a specific proposed revision. inspections of drilling rigs that revealed the Outer Continental Shelf—Blowout Some commenters stated that they a number of major safety violations and Preventer Systems and Well Control: perceived that the proposed rule would asserted that several of the companies April 2016. BSEE rigorously evaluated improve the overall safety of operations, pushing hardest against the regulations and discussed in Chapter 4 of the EA, while others raised concerns that the were cited for violations more often Environmental Consequences, the proposed rule would decrease overall than the industry average. A different analyses of impacts on water resources, safety. commenter asserted that the proposed wildlife on nearby habitats, air quality, Summary of comments: Multiple rule lacked adequate evidence that it sociocultural systems, commercial and commenters expressed support for the would protect safety. This commenter recreational fisheries, tourism, and proposed rule’s reliance on best asserted that BSEE must evaluate safety recreation, as well as cumulative management practices, innovation to with respect to the different impacts, while noting that many of the increase safety and reliability, geographical environments where the quantitative and qualitative analyses are optimization of risk reduction, support oil and gas operations will occur. The supported in the documents for the nation’s efforts to increase energy commenter noted that different ocean incorporated by reference. independence, and incorporation of API environments present different In the EA, BSEE identified the scope Standard 53. One commenter asserted constraints, challenges, and operational of reasonably foreseeable activities that that adoption of API Standard 53 would risks; and asserted that BSEE must

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evaluate whether the proposed revisions standards with specific regulatory additional requirements applicable to would ensure safety in all provisions, if there are any places where such submissions, under the environments. The commenter further the standards are lacking. Most circumstances presented. asserted that BSEE did not provide importantly, once incorporated by Concerning the commenter’s assertion evidence that the existing regulations reference, such standards are that the development of the proposed are actually a burden or that removing enforceable as any other regulatory rule did not include studies, safeguards will ensure adequate requirement, and BSEE is responsible investigations, reports, or public protections remain in place. The for oversight of compliance and solicitations for information, BSEE commenter also asserted that the enforcement—it is not left to industry. disagrees. As previously discussed, proposed rule did not provide sufficient Further, if industry modifies an BSEE considered questions that arose analysis on how it would safeguard incorporated standard, those during the implementation of the 2016 workers and protect the environment, modifications do not impact the WCR and the policies developed in but focused on assertions about regulatory requirements unless and response to those questions. In addition, reducing regulatory burdens for until BSEE incorporates those BSEE solicited input from interested industry and burdensome paperwork for modifications through a separate parties to identify potential revisions to regulators. The commenter asserted that rulemaking. the regulations; including the public the proposed rule lacked any studies, The commenter referred to a recent forum held on September 20, 2017, in investigations, reports, or public series of surprise inspections of drilling Houston, Texas. Further, BSEE received solicitations for information. rigs that revealed a number of major and considered a substantial amount of A commenter contended that the safety violations and asserted that information from commenters through reduced oversight contemplated by the several of the companies pushing the APA notice and comment process. proposed rule would make losses of hardest against the regulations were BSEE’s approach to this regulatory well control and oil spills more likely to cited for violations more often than the reform was to consider input from a occur. The commenter claimed that industry average. BSEE regularly variety of sources to make proposals weakening safety regulations designed conducts unscheduled or ‘‘surprise’’ that would carefully remove to prevent blowouts would further inspections of facilities on the OCS. unnecessary burdens while leaving contribute to the already routine oil BSEE is not certain whether this critical safety provisions intact. spills that will occur in the Atlantic if comment is referring to the regular Summary of comments: One the Administration finalizes its plan to unplanned inspections or a specific commenter asserted that allow oil and gas development in that increased inspection effort. Regardless, implementation of the proposed rule area. The commenter asserted that, if BSEE normally inspects mobile offshore and adoption of a related procedure for offshore drilling increases, the level of drilling units (MODUs) at least once checking well pressures as a standard safety and prudence must also increase. every 30 days when they are in industry practice would potentially • Response: BSEE reviewed all operation on the OCS. BSEE does not have prevented a number of fatalities. comments submitted and is revising the agree with the assertion that the This commenter recommended that proposed rule as appropriate. BSEE does companies most vigorously opposing BSEE incorporate a specific safety not agree with the commenters’ the regulations were cited for violations procedure in the regulations, so it assumption that this rulemaking will more often than the industry average. would become a standard industry allow the operators to govern their own BSEE did not consider the number of practice. safety. The use of various regulatory violations issued to specific operators • Response: BSEE received and approaches in this rulemaking— when developing this rulemaking. assessed the comment and is not including the incorporation of Regarding the concern that BSEE must incorporating the commenter’s standards; performance-based evaluate safety with respect to the suggested procedure into the regulations requirements; independent third parties different geographic environments at this time. BSEE disagrees that it instead of BAVOs—increases the where the oil and gas operations will would be appropriate to require the responsibilities on operators, but does occur, BSEE agrees that differences in commenters’ identified specific not reduce BSEE’s oversight geographic environment can impact the procedures on all wells and rigs, and responsibilities. BSEE continues to nature of operations. This is reflected in doing so would be beyond the scope of review and approve permit applications the fact that certain of BSEE’s regulatory this rulemaking. BSEE may evaluate the for specific activities and to inspect all requirements are specifically tailored to procedures for possible inclusion in OCS facilities for compliance with particular geographic environments, future rulemakings, if appropriate. applicable law, regulation, plans, such as the Arctic or frontier areas. Prior Comments on Energy Independence permits, and lease terms. Operator to receiving approval from BSEE to applications must contain appropriate begin drilling operations on the OCS, an Summary of comments: Some information to demonstrate compliance operator must submit an exploration or commenters expressed concern that with BSEE regulations, including any development plan to BOEM for BSEE is promoting increased drilling documents incorporated by reference. approval. The exploration or and energy independence at the expense The incorporation by reference of development plan addresses operational of its obligations to protect the industry standards does not mean the considerations relevant to the specific environment. One commenter asserted industry is self-regulating. BSEE location and operating environment (for that BSEE’s function is to promote participates in the development of many more information on the content of safety and protect the environment. The of the standards incorporated by exploration and development plans, go commenter referenced BSEE’s reference. In addition, BSEE reviews to: https://www.boem.gov/Submitting- explanation in the proposed rule that and analyzes any standards Complete-Exploration-and- the intention of this rulemaking is to incorporated in the regulations to Development-Plans/). As part of the fortify the Administration’s position ensure the documents provide for safety review of the APD, BSEE confirms toward facilitating energy security and environmental protection and are whether the APD is consistent with the leading to increased domestic oil and consistent with BSEE’s authorities and approved exploration or development gas production and to reduce policies. BSEE may supplement plan, as well as consistent with the unnecessary burdens on stakeholders.

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However, the commenter asserted that it conflict of interest, because API is a personnel, consumer advocates, and is not BSEE’s duty to increase major oil and gas industry trade academics. production of oil or gas. The commenter association and lobbying firm. The other BSEE disagrees with the assertion that noted BSEE’s mission statement that commenter views the performance- the performance-based standards says its mission is to ‘‘promote safety, based standards in the proposed rule as incorporated by reference in this protect the environment, and conserve poorly defined, claiming they should be rulemaking are poorly defined and resources offshore through vigorous clearly established before the final rule’s vague and need to be more ‘‘clearly regulatory oversight and enforcement.’’ publication. The commenter asserts that The commenter asserted that it is established’’ before they can be adopted a number of provisions in the proposed in a final rule. Performance-based inappropriate for BSEE to sacrifice its rule regarding performance-based standards establish expectations for safe public trust obligations in favor of standards are extremely vague. This operations that allow for more flexibility enhancing industry profits. commenter opined that BSEE should • to determine the appropriate approach Response: BSEE disagrees with the have published an Advance Notice of commenters’ assertions that this to meeting the expectations based on Proposed Rulemaking (ANPR) to gather rulemaking is promoting increased specific operating conditions. This the information necessary to prepare a drilling and energy independence at the approach is not a design flaw that must better defined proposed rule, if BSEE expense of BSEE’s obligations to protect be corrected, but rather an important safety and the environment. BSEE did not know which proposed standards to include. feature of such standards. BSEE’s recognizes its obligations to protect regulations include a mix of prescriptive safety and the environment under Response: BSEE disagrees with the and performance-based regulatory OCSLA; however, as stated in suggestion that BSEE should have standards, and both approaches offer a § 250.101(b), and pursuant to 43 U.S.C. published an ANPR before publishing variety of strengths and benefits. 1332(3). BSEE is also obligated to follow the proposed rule. As previously sound conservation practices to make discussed, when BSEE initiated its Comments on Production Safety OCS resources available for review of these regulations, BSEE held Systems development to meet the Nation’s a public forum in Houston, Texas, energy needs. Applying sound which was attended by more than 110 Summary of comments: A commenter conservation practices includes interested parties. The participants of discussed the removal of the ensuring that the requirements in the the public forum provided comments requirement for third-party certification regulations do not unduly burden and suggestions before BSEE began the for safety and pollution prevention responsible development and process of developing the proposed rule. equipment (SPPE). This commenter production of oil and natural gas BSEE likewise obtained useful input asserted that both safety and resources, while maintaining safety and into the development of this rulemaking environmental risks would increase by environmental protection. BSEE’s through the Department’s ‘‘request for removing the requirement for third- responsibilities go beyond safety and comment’’ on its overall regulatory party inspection and certification, environmental protection and extend to reform initiatives. The proposed rule especially for extreme conditions. The numerous aspects of the proper also served as an opportunity for BSEE commenter expressed concern regarding management of OCS oil and gas to secure public comment and input. BSEE’s proposal to remove the operations. In addition, as previously requirement for review and certification discussed, this rulemaking executes the As discussed previously, this rulemaking does not allow operators to of SPPE by an independent third party mandates from the President and the contained in § 250.802(c)(1), including Secretary, as set forth in E.O. 13783— operate without oversight. BSEE the requirement of inspection and Promoting Energy Independence and continues to serve in an oversight and certification to demonstrate that the Economic Growth; E.O. 13795— enforcement capacity, even where Implementing an America-First Offshore regulatory requirements are tied to SPPE will function under the most Energy Strategy; and Secretary’s Order industry standards. BSEE also disagrees extreme conditions to which it may be No. 3350. BSEE disagrees that this rule with the commenters’ assertion that exposed. The commenter opposed this fails to maintain safety and there is a conflict of interest inherent in change, asserting that: These environmental protection and stands by using industry standards. Federal law in inspections were specifically tailored to its determination that every change fact requires that an agency ‘‘use address one of the causes of the made in this rule meets that standard. standards developed or adopted by Deepwater Horizon catastrophe; third- voluntary consensus standards bodies party inspections respond to extreme Comments on Conflicts of Interest rather than government-unique conditions becoming more prevalent Summary of comments: Some standards, except where inconsistent and intense with climate change; and commenters took issue with the fact that with applicable law or otherwise SPPE implicates a level of risk that BSEE incorporated input from impractical.’’ NTTAA; OMB Circular A– meets BSEE’s standard for requiring interested parties in the proposed rule. 119 at p. 13. BSEE follows the third-party inspection. The commenters claimed that the requirements of the NTTAA and the • Response: This comment is related proposed rule would allow operators to relevant guidance in OMB Circular A– to another rulemaking—1014–AA37 provide their own oversight, while not 119 when incorporating standards into Production Safety Systems (AA37). The acknowledging API’s role as a lobbyist its regulations. Membership in an API final rule for that rulemaking was for the oil and gas industry. These standard development committee is not commenters asserted that this creates a limited to industry representatives 28 published in the Federal Register on conflict of interest for these parties and and may include non-industry September 28, 2018 (83 FR 49216). for BSEE and that this would make members, such as government BSEE received this comment in losses of well control and catastrophic connection with that rulemaking, as oil spills more likely. One of these 28 http://mycommittees.api.org/standards/ well, and responded to it in the AA37 commenters asserted that adopting Reference/API%20Procedures%20for production safety systems final rule. standards developed by API creates a %20Standards%20Development-2016.pdf.

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V. Section-by-Section Summary and of § 250.115 is based on the introductory Add a new paragraph (j)(2) for the Responses to Comments on the language in the existing § 250.198, with incorporation by reference of ISO/IEC Proposed Rule certain minor, non-substantive wording 17021–1 in order to update the This summary discusses every section changes for clarity. The revised erroneous standard previously of 30 CFR part 250 proposed for revision § 250.198, which will serve as a incorporated by the 2016 WCR. in the proposed rule and this final rule. centralized Incorporated by Reference As previously mentioned, the This summary does not address sections (IBR) section, deletes the introductory proposed rule also discussed potential of the existing regulations that are not language in accordance with OFR’s technical (non-substantive) revisions to implicated by the proposed or final rule. recommendations for these types of IBR § 250.198 that BSEE was considering to Although BSEE did not receive provisions. Specifically, the OFR address recommendations from the substantive comments on numerous recommends that a centralized IBR OFR. section, such as § 250.198, should not sections covered by the proposed rule, Summary of Final Rule Revisions the final rule includes and summarizes include language regarding legal those sections. BSEE received requirements or justifications, scope of As explained in the previous substantive comments on many other the regulations, instructions, or policy. discussion of new § 250.115, BSEE is sections covered by the proposed rule, The OFR recommends that the reorganizing this section consistent with some of which are included in this final centralized IBR section list documents the OFR’s recommendations. These rule without revision and some of incorporated by reference and provide revisions include technical, non- which are revised in the final rule. information about where the standards substantive changes to the organization Those sections, as well as the relevant are referenced in the regulations and of the section to remove discussions of comments on those sections and BSEE’s how to obtain a copy of the actual matters other than the incorporated responses, are summarized here. standards. Accordingly, this rulemaking materials themselves and to make the removes the introductory language in section more user friendly, as well as Subpart A—General existing § 250.198 and relocates the minor wording and formatting changes What are the procedures for, and effects language to the new § 250.115 with for clarity and consistency. of, incorporation of documents by minor revisions. Also, based on comments on the reference in this part? (§ 250.115) proposed rule, BSEE is revising final Documents Incorporated by Reference paragraph (e)(94) to include the This section in the current regulations (§ 250.198) addendum to the already incorporated is reserved. This section of the existing API Standard 53 Fourth Edition, Summary of Proposed Revisions regulations includes citations and other November 2012. For the reasons discussed in the BSEE did not propose any specific information regarding all documents section-by-section summary for changes to this section in the proposed (e.g., industry standards) incorporated § 250.427 of this final rule, BSEE is also rule. However, in the proposed rule by reference in 30 CFR part 250, adding a new paragraph (e)(6), discussion of § 250.198, BSEE discussed including where to find references to incorporating by reference API Bulletin the potential for technical (non- the incorporated documents in specific 92L. substantive) revisions to § 250.198 for sections of the regulations. The The final rule includes, without the purposes of reorganizing and requirements for complying with a change, all other documents proposed revising that section to make it clearer, specific incorporated document can be for incorporation by reference, more user-friendly, and more consistent found where the document is referenced including: with the OFR’s recommendations for in the regulations, as specified in API Standard 65—Part 2, Isolating incorporations by reference in Federal existing § 250.198. The existing section Potential Flow Zones During Well regulations. BSEE consulted with the also discusses BSEE’s process for Construction; Second Edition, December OFR regarding its suggestions for incorporating documents by reference, 2010; specific organizational and language the regulatory effects of incorporation, API Recommended Practice 17H, changes to § 250.198 and addressed and procedures that operators may Remotely Operated Tool and Interfaces such technical revisions in this final follow to seek BSEE’s approval to on Subsea Production Systems, Second rule. One element of the organizational comply with alternatives to an Edition, June 2013, Errata January 2014; changes involved moving certain incorporated document. and portions of existing § 250.198 out of that Summary of Proposed Revisions ISO/IEC 17021–1—Conformity regulation, so that it is focused more assessment—Requirements for bodies exclusively on the incorporated BSEE proposed to: providing audit and certification of materials themselves. BSEE chose to Revise existing paragraph (h)(63), management systems—Part 1: implement this action by relocating the which incorporates API Standard 53, to Requirements, First Edition, June 2015. relevant provisions to reserved add a new cross reference to § 250.734, § 250.115. BSEE determined that those as revised in the final rule. BSEE also Summary of Comments solicited comments on whether to technical revisions will not have a Comments Related to Proposed substantive impact on the incorporate the 2016 addendum to this standard; § 250.198—Incorporation of API incorporations by reference of industry Standard 53 Addendum standards discussed in this rule or Revise existing paragraph (h)(78), elsewhere. which incorporates API Standard 65— Summary of comments: Some Part 2, Isolating Potential Flow Zones commenters suggested that BSEE Summary of Final Rule Revisions During Well Construction; Second incorporate API Standard 53, 4th This final rule adds new § 250.115 in Edition, December 2010, to add a new Edition, Addendum, which was accordance with the recommendations cross reference to § 250.420(a); released in July 2016. These and requirements of the OFR pertaining Revise existing paragraph (h)(94) to commenters asserted that many of the to regulations that incorporate update the incorporation of API RP 17H operations in the Gulf of Mexico already documents by reference. The language to the Second Edition; and comply with the July 2016 Addendum

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of API Standard 53 4th Edition. They Comments Related to Proposed supplement with specific requirements asserted that the Addendum clarifies the § 250.198—Effectiveness of Using where appropriate. existing text of API Standard 53, Industry Standards Moreover, as previously discussed, including clarifying unintended Summary of comments: A commenter the NTTAA mandates that Federal conflicts with API Specification 16C, objected to BSEE incorporating by agencies use technical standards Specification for Choke and Kill reference any industry standards developed by voluntary consensus Equipment and that these clarifications developed by the oil and gas industry, standards organizations, instead of would increase operational safety and asserting that standards are ‘‘more fluid government-developed standards, where reliability. They also asserted that the and not enforceable by law.’’ The practicable and consistent with Addendum was compiled, reviewed, commenter asserted that this makes it applicable law. There are only a few SDOs, including API, that address and approved by industry more difficult for BSEE to be effective, issues related to offshore oil and gas representatives, including operators, noting that similar problems existed operations. Also, API provides equipment owners, original equipment prior to the Deepwater Horizon oil spill. standards on technical topics that are manufacturers (OEMs), independent The commenter cited the BP Oil Spill not addressed by other SDOs. third parties, and service companies. Commission report, asserting that it Additionally, consistent with the These commenters stated that API is criticized this culture and stated that the NTTAA’s preference for agency use of developing a 5th Edition of API Department of the Interior has in turn voluntary consensus standards (see 15 Standard 53, but that it was not relied on API in developing its own U.S.C. 272(e)(1)(A)(v)), API develops its available at the time of the rulemaking. regulatory safety standards and that • standards through a general consensus Response: BSEE agrees with the API’s shortfalls have undermined the commenter’s suggestion about process, which provides for input from entire Federal regulatory system. This those who are potentially materially incorporating the API Standard 53 commenter was concerned about addendum into the regulations. BSEE impacted by the standard, however, findings from the BP Oil Spill membership on API standards reviewed the Addendum and Commission report that the API determined that it would not committees is not limited to industry standards represent the ‘‘lowest participants. In addition, based on significantly alter or negatively impact common denominator,’’ and do not safety. It does, however, address and recommendations in other post- reflect ‘‘best industry practices.’’ Deepwater Horizon reports (see, e.g., resolve the same problematic issues for • Response: BSEE disagrees with the which BSEE currently grants departures, Final Report on the Investigation of the commenters’ assertions that the Macondo Well Blowout, Deepwater and the IBR of the Addendum will documents incorporated by reference eliminate the need for granting such Horizon Study Group (March 1, 2011) at are not enforceable and that BSEE relies pp. 94–98), BSEE has expanded its departures going forward (e.g., section on API to develop regulations. First, 7.2.3.2.9 Side outlet location and standards program and increased its BSEE notes that the cited Report’s involvement in the standards section 7.3.13.2.5 fire rating of MUX concerns with incorporation of industry development process, including lines). Therefore, BSEE determined that standards were based on agency development of many API standards, the Addendum is appropriate for practices and other circumstances pre- and is continuously improving and incorporation into the regulations. dating the 2010 Deepwater Horizon formalizing BSEE’s internal process for With regard to the comments about incident. Since that event, many BSEE reviewing standards relevant to the API developing API standard 53 5th and industry practices and regulatory program. These Edition, BSEE will evaluate that circumstances have changed developments help BSEE identify issues document when it is finalized for significantly. Concerning the comments that may not be adequately addressed in possible incorporation into the on BSEE’s use of API standards and the incorporated standards and to regulations in a future rulemaking. assertion that API standards supplement those standards, as Summary of comments: A commenter increasingly do not represent best necessary, in its regulations. suggested that arbitrary requirements industry practices, BSEE does not agree BSEE also disagrees with the beyond the provisions in API Standard that incorporation and use of the commenter’s assertion that industry 53 ‘‘reduce safety by adding standards referenced in this final rule is developed standards should not be unnecessary complexity to the blowout either inappropriate or detrimental to incorporated in its regulations because prevention equipment systems.’’ safety and environmental protection. BSEE does not have the authority to • Response: The commenter does not For example, BSEE evaluated the enforce compliance with incorporated specify which requirements in the differences between the first and second documents. BSEE incorporates industry regulations the commenter considers to editions of API RP 17H and determined standards by reference in accordance be arbitrary or how such requirements that the second edition of API RP 17H with the requirements of the NTTAA add ‘‘unnecessary complexity to the eliminates the conflict between the first and implementing OMB guidance, OFR blowout prevention equipment edition and API Standard 53, helps regulations (1 CFR part 51), and BSEE’s systems.’’ In any event, BSEE disagrees ensure that the appropriate methods are own procedures for incorporation with the commenter’s assertion that any utilized to comply with the API (§ 250.115, What are the procedures for, requirements in this final rule or Standard 53 ROV closure timeframes of and effects of, incorporation of existing regulations related to BOP 45 seconds, and includes provisions on documents by reference in this part?). systems are arbitrary or unnecessary. high flow Type D 17H hot stabs. All of The effect of incorporation by reference For all the reasons discussed in the 2016 the standards referenced in this of an industry standard into the WCR, other prior rulemakings, and in rulemaking serve as a valuable regulations is that the incorporated the proposed rule and this final rule, complement to BSEE’s regulations in document becomes a regulatory BSEE has determined that any such helping to achieve the bureau’s safety requirement, see existing § 250.198(a)(3) additional requirements are reasonable and environmental objectives under (moved to new final § 250.115(c)), and and appropriate to ensure that BOP OCSLA. When incorporated into the thus becomes subject to BSEE oversight systems are designed and utilized regulations, these standards provide a and enforcement in the same manner as appropriately. binding baseline that BSEE may other regulatory requirements. BSEE has

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repeatedly described this principle in a currently reviewing many of the means to fulfill the legitimate objective number of previous rulemakings. standards incorporated in the existing pursued. In particular, according to BSEE is not certain what the regulations and will provide additional OMB Circular A–119, the TBT commenter means by industry standards information regarding its review when Agreement, Article 2.4, provides that being ‘‘more fluid.’’ However, the appropriate. If BSEE decides that some where technical regulations are required commenter may be concerned about updating of incorporated standards (e.g., and relevant international standards industry issuance of revisions to or new by referencing new editions of existing exist or their completion is imminent, editions of incorporated standards. The standards, or replacing previously World Trade Organization (WTO) OFR regulations, at 1 CFR part 51, incorporated standards with different Members shall use them, or the relevant govern how BSEE and other Federal standards, or simply deleting outdated parts of them, as a basis for their agencies incorporate documents by standards) in the regulations is technical regulation. In addition, 19 reference. Agencies may incorporate a warranted, it will explain its position U.S.C. 2532 directs Federal agencies, in document by reference by publishing in through future rulemakings, as developing standards, to base their the Federal Register the document title, appropriate. Of course, BSEE may also standards on international standards, if edition, date, author, publisher, decide, for appropriate reasons, to keep appropriate. OMB Circ. A–119 (p. 22). identification number, and other a previously incorporated edition of a specified information. Incorporation by standard in the regulations even if there Subpart B—Plans and Information reference of a document is limited to the is an updated edition. BSEE is not in a What must the DWOP contain? edition of the document so position at this time, either incorporated. See existing substantively or procedurally, to (§ 250.292) § 250.198(a)(1) (moved to new final implement the updates suggested by the This section of the existing § 250.115(a)). In short, the operator must commenter as part of this final rule. regulations specifies information (e.g., comply with the edition of the standard Summary of comments: Some description of the typical wellbore, that BSEE incorporates in its commenters recommended that BSEE structural design for each surface regulations. If an SDO later revises a should incorporate into its regulations system) that must be included in a standard that BSEE has previously additional documents and updated DWOP. Paragraph (p) of this section incorporated in a final rule, BSEE would editions associated with BOP systems details the information that must be need to evaluate the revised standard (e.g., ANSI/API Spec. 16A— contained within a DWOP relating to before choosing whether to incorporate Specification for Drill-through free standing hybrid risers (FSHR) and it through rulemaking into the Equipment, API Standard 16AR— the associated buoy and tether system. regulations; in other words, industry Standard for Repair and Remanufacture itself cannot change the regulatory of Drill-through Equipment, and API Summary of Proposed Revisions requirements by revising a standard Spec 20E—Alloy and Carbon Steel after BSEE incorporates the standard in Bolting for Use in the Petroleum and BSEE proposed to revise the FSHR its regulations. Natural Gas Industries). requirements of this section to eliminate • Response: BSEE acknowledges the duplicative submittals and certifications Comments Related to Proposed importance of those standards to of FSHR systems. § 250.198—Use of the Latest Published offshore operations. However, they were Edition and Incorporation of Additional not proposed for incorporation in the Summary of Final Rule Revisions Documents proposed rule and BSEE is not currently BSEE received no substantive Summary of comments: Several in a position—procedurally or comments on these provisions of the commenters recommended that BSEE substantively—to incorporate them into proposed rule and includes the incorporate the latest published edition this final rule. BSEE will evaluate these proposed language in the final rule of each standard into the regulations. documents for possible future without change. Commenters asserted that BSEE has incorporation in the regulations. BSEE directly participated in the development continually evaluates new standards Subpart D—Oil and Gas Drilling of these standards and that recognition and new editions of existing standards Operations of these standards in the regulations for possible incorporation into the would be consistent with the regulations. If, after completing What must my description of well expectations of the NTTAA, which evaluations of these standards, BSEE drilling design criteria address? requires BSEE to consult and use determines they are appropriate to (§ 250.413) technical standards that are developed incorporate, we may proceed with a This section of the existing or adopted by voluntary consensus separate rulemaking process to regulations specifies the type of standards bodies in lieu of BSEE incorporate the documents. information that must be provided in creating its own unique standards. Summary of comments: A commenter the well drilling description portion of • Response: BSEE generally agrees recommended that BSEE define an APD. that it should consider whether to international standards as any globally incorporate the latest editions of recognized, good-practice standards. Summary of Proposed Revisions standards for which prior editions are • Response: BSEE does not agree that already incorporated in the regulations. any such definition is necessary in these BSEE proposed to add to paragraph BSEE reviews its regulations in regulations. BSEE follows the guidance (g) a parenthetical clarification of accordance with E.O. 13563—Improving established by OMB Circular A–119. ‘‘surface and downhole’’ after Regulation and Regulatory Review and With respect to international standards, ‘‘proposed drilling fluid weights,’’ to E.O. 13610—Identifying and Reducing OMB Circular A–119 explains that the ensure the operator includes the weight Regulatory Burdens, ‘‘to ensure, among United States is obligated under the of the drilling fluid in both places. BSEE other things, that regulations Technical Barriers to Trade (TBT) proposed this clarification to help incorporating standards by reference are Agreement to use relevant international ensure the drilling fluid weight is fully updated on a timely basis . . . .’’ (OMB standards, except where such standards evaluated and appropriate for the Circular A–119 at p. 4). In fact, BSEE is would be an ineffective or inappropriate estimated bottom hole pressures.

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Summary of Final Rule Revisions margins other than 0.5 ppg based on appropriate safe drilling margins BSEE received a few comments in specific well conditions. through the well permitting process. Some commenters asserted that general support of the proposed Summary of Comments revisions to this section, and is technology has improved to justify a including the proposed language in the Comments Related to Proposed performance-based drilling margin, final rule without change. § 250.414—Opposition to Any Proposed specifically citing hydraulic modeling Revisions to the 0.5 ppg Safe Drilling techniques, managed pressure drilling, What must my drilling prognosis Margin and use of real-time downhole pressure include? (§ 250.414) Summary of comments: Multiple while drilling (PWD). • Response: BSEE does not accept the This section of the existing commenters expressed significant commenters’ recommendations to regulations describes the information concerns about potential revisions to the replace the 0.5 ppg drilling margin with that must be included in the drilling 0.5 ppg safe drilling margin a performance-based option. BSEE prognosis portion of an APD. requirements and emphasized the notes, however, that existing regulations importance of a safe drilling margin. Summary of Proposed Revisions provide opportunities for similar case- Many commenters also asserted that the BSEE proposed to revise paragraph by-case analyses based on specific well 0.5 ppg margin was added to the (c)(3) of this section to add the words conditions. The regulations establish existing regulations based on the ‘‘and analogous’’ before ‘‘well behavior default minimum requirements; technical work and recommendations observations’’ and ‘‘, if available’’ at the however, they also allow for deviation from the National Academy of end of the paragraph. BSEE proposed from the default 0.5 ppg drilling margin Engineering and the National Research this minor wording change to ensure with sufficient justification, based on Council arising out of Deepwater that operators use available data from demonstrated well conditions and Horizon investigations and that any wells with similar conditions to those of operational plans. It is the operator’s proposed changes to or removal of the the well being drilled when determining responsibility to provide sufficient data safe drilling margin requirements lack the pore pressure and fracture gradient and justification to use a lower drilling to ensure accuracy and safety when technical evidence or justification. margin. BSEE is retaining the 0.5 ppg establishing the drilling margin. In the Commenters asserted that BSEE must drilling margin as a presumptive proposed rule, BSEE solicited comments have clear, defined, and enforceable minimum requirement as a default on many of the safe drilling margin criteria to determine whether the standard in the regulations. As more provisions, including potential proposed drilling margin will be safe drilling margin data and research alternatives to the current default 0.5 and cannot simply accept an operator’s becomes available, BSEE may reevaluate ppg drilling margin and the possibility conclusory statements that its proposal the drilling margin for possible is safe. revisions in future rulemakings. of replacing it with a more performance- • based standard. Response: BSEE agrees with the BSEE agrees that technology is commenters’ concerns about making improving and could help justify a Summary of Final Rule Revisions revisions to the 0.5 ppg drilling margin performance-based drilling margin at The 0.5 ppg drilling margin requirements at this time. BSEE is some point. However, BSEE would need requirements in this section remain keeping the 0.5 ppg drilling margin as to obtain and evaluate more research unchanged. As in the existing a presumptive minimum requirement as and data before it can develop and regulations, the final rule requires the a default standard in the regulations. As adopt a performance-based drilling use of a default 0.5 ppg drilling margin more drilling margin data and research margin. In the meantime, an operator while continuing to allow for a becomes available, BSEE may reevaluate may use the improved technologies deviation from the default under certain the drilling margin for possible cited by the commenters to substantiate circumstances. The request to deviate revisions in future rulemakings. an alternative drilling margin specified does not have to be submitted as an Comments Related to Proposed in an APD, provided it complies with alternate procedure or departure § 250.414—Use of a Performance-Based the requirement in existing request. However, as the proposed rule Drilling Margin § 250.414(c)(2) regarding adequate indicated, BSEE considered whether to documentation to justify the alternative allow a different method or ‘‘avenue’’ Summary of comments: Multiple margin. for operators to submit a justification for commenters expressed support for a different drilling margin (83 FR revising or removing the 0.5 ppg safe Comments Related to Proposed 22133). Based on comments received, drilling margin default standard § 250.414—Drilling Margin Below 0.5 BSEE is revising § 250.414(c)(2) to allow requirement. Some commenters ppg operators the option to submit the recommended replacing the current Summary of comments: Some required justification for BSEE approval requirements with a performance-based commenters asserted that evaluation at an earlier date prior to the APD. Any standard established on a case-by-case and analysis of industry data on wells such approval will be contingent upon basis, based on data and analysis drilled demonstrates that operators have confirmation in the APD that the plans specific to a particular well. Those safely planned and drilled sections of and information underlying the BSEE commenters asserted that this would be wells below the current default 0.5 ppg approved justifications have not a safer and better alternative for drilling margin and that the current 0.5 changed. An operator may submit such establishing safe drilling margins. They ppg margin is arbitrary and does not requests prior to an APD, or continue to asserted that such an alternative would ensure safety. provide that information within the provide a risk-based approach that • Response: BSEE agrees with the APD. Regardless of the timing of the ensures safety and provides investment commenters that operators have request to use an alternative drilling certainty to the industry. Some successfully drilled some wells below margin, each request will require the commenters also suggested that industry the default 0.5 ppg drilling margin supporting justifications as provided in would welcome the opportunity to under the current regulations. As noted existing regulations. BSEE is currently propose an engineered, performance- in the proposed rule, between approving some APDs with drilling based standard for the establishment of promulgation of that default margin in

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the 2016 WCR and publication of the option to submit the required the existing regulatory requirements proposed rule, BSEE approved the justification for a proposed alternative would provide consistency for planning drilling of 32 wells with drilling safe drilling margin for BSEE approval and permitting purposes. Also, in margins below the 0.5 ppg default. at an earlier date prior to the APD. Any paragraph (f), BSEE proposed removing Operators may continue to utilize such approval will be contingent upon the specifics of the listed example drilling margins below 0.5 ppg provided confirmation in the APD that the plans regarding when a liner may be used as that they apply for such a margin in and information underlying the BSEE intermediate casing. The proposed rule their APDs and comply with the approved justifications have not stated that the example is redundant requirements in § 250.414(c)(2) by changed. BSEE is not revising the because it restates the same information providing adequate documentation to requirements to use a default 0.5 ppg already contained in this section. justify the alternative drilling margin. drilling margin or the standards for Summary of Final Rule Revisions However, BSEE disagrees with the obtaining approval of a deviation from commenters’ assertion that the 0.5 ppg the default under certain circumstances. BSEE received a few comments in margin is arbitrary and does not ensure As such, this change will have no general support of the proposed safety. A 0.5 ppg is an appropriate safe impact on safety or environmental revisions to this section, and is drilling margin for normal drilling protection. The revision to including the proposed language in the scenarios, and, prior to the § 250.414(c)(2) will simply provide final rule without change. promulgation of the 2016 WCR, BSEE operators with the option to request What are the requirements for casing approved (and thus made a BSEE approval for alternative safe and liner installation? (§ 250.423) requirement) this margin in numerous drilling margins on a well-by-well basis APDs. BSEE understands that there are at any time that the necessary This section of the existing some well-specific circumstances that information is available. BSEE drilling regulations establishes requirements for may justify an acceptable lower drilling engineers review drilling margins and proper installation of casing in the margin to drill a well safely and BSEE the APD with intimate knowledge of the subsea wellhead or liner in the liner has approved appropriate alternative particular field and are the subject hanger, including requirements for downhole mud weights as part of a safe matter experts on drilling in their latching or lock down mechanisms and drilling margin in many APDs. respective BSEE regions. pressure testing on the seal assembly. However, BSEE is choosing not to alter the 0.5 ppg default drilling margin in What well casing and cementing Summary of Proposed Revisions requirements must I meet? (§ 250.420) this final rule. BSEE proposed to revise paragraphs Summary of comments: A commenter This section of the existing (a) and (b) by removing the words ‘‘and recommended adding the Conceptual regulations imposes specific cementing’’ after ‘‘upon successfully Deepwater Operations Plan (CDWOP or requirements for casing and cementing installing.’’ The proposed rule DWOP) into the regulatory text with the of all wells. objective of obtaining field-wide explained that revisions to this section approvals when it is anticipated that a Summary of Proposed Revisions are necessary because there are many situations in the design of the casing or lower drilling margin may be needed on BSEE proposed to incorporate by liner string running tool where the numerous wells. The commenter reference API Standard 65—Part 2 in latching or lock down mechanism is asserted that this would be important paragraph (a)(6) of this section for automatically engaged upon installing for sanctioning major capital projects, purposes of specifying the standards to the string. BSEE proposed these since regulatory certainty is critical ensure centralization of the pipe during revisions to allow more flexibility on an when making multi-billion dollar cementing. BSEE determined that the operational, case-by-case basis for investment decisions. In particular, the standards set forth in API Standard 65— determining the appropriate time to commenter asserted that industry needs Part 2 would provide clearer guidelines engage these mechanisms and thus clarity on the requirements for permit for operators than the existing reduce the number of alternate approval and reasonable certainty that regulatory language. BSEE will approve an engineered procedure requests submitted to BSEE drilling margin before incurring major Summary of Final Rule Revisions for approval under § 250.141. costs that would be wasted if approval BSEE received a few comments in Summary of Final Rule Revisions were denied. general support of the proposed • Response: BSEE declines to accept revisions to this section and is including BSEE received and considered the commenter’s suggestion. The DWOP the proposed language in the final rule comments on the proposed revisions or CDWOP is a field overview and not without change. and includes the proposed revisions in well-specific. The operator submits a the final rule. Additionally, as suggested DWOP for each development project in What are the casing and cementing by some commenters, BSEE is revising which it will use non-conventional requirements by type of casing string? paragraphs (a) and (b) by removing from production or completion technology, (§ 250.421) each the following language: ‘‘If there is however that submission does not This section of the existing an indication of an inadequate cement include the full scope of relevant regulations specifies casing and job, you must comply with information required in the APD. BSEE cementing requirements applicable to § 250.428(c).’’ These statements are does not believe that the relevant certain types of casing strings (e.g., drive unnecessary because § 250.428(c) is determinations can be reached at a field or structural strings, conductor strings). applicable for any cementing operation level through the DWOP process, as and does not need to be specifically opposed to the well-specific level. Summary of Proposed Revisions cross referenced in this section. However, BSEE recognizes that the BSEE proposed to make minor Removing this cross reference does not timing of drilling margin approval may revisions in paragraphs (c), (d), (e), and change any requirements for how affect sanctioning of major capital (f) to clarify that all identified length operators must respond to indications of projects, and BSEE is revising requirements are to be taken from an inadequate cement job; if there are § 250.414(c)(2) to allow operators the measured depth. This clarification of any indications of an inadequate cement

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job, the operator must evaluate the Summary of Proposed Revisions Bulletin 92L. BSEE is revising cement job as required in § 250.428. BSEE did not propose any revisions to § 250.427(b) to allow operators to take action in accordance with API Bulletin Summary of Comments this section. BSEE did, however, solicit comments regarding potential 92L, and provide notification to the Summary of comments: Many alternative approaches to administering BSEE District Manager documenting the commenters agreed with the proposed the safe drilling margin requirements, operator’s use of API Bulletin 92L, when changes, and also asserted that including specifically ‘‘whether there the operator cannot maintain its references to section § 250.428 in this are situations where drilling can approved drilling margin. In section were redundant and should be continue prior to receiving alternative conjunction with the use of API Bulletin removed from this section. safe drilling margin approval from 92L, BSEE is requiring submittal of a • BSEE,’’ such as ‘‘where, despite not revised permit documenting any Response: BSEE agrees with the remedial actions. BSEE has evaluated commenters that referencing § 250.428 being able to maintain the approved safe drilling margin, an operator’s continued API Bulletin 92L and determined that is not necessary in this section, and has reliance on that standard when revised the final regulatory text drilling with an alternative drilling margin creates little risk’’ and ‘‘what responding to drilling margin issues accordingly. This language is would not reduce safety. BSEE also level of follow-up reporting . . . would unnecessary because § 250.428(c) is determined that this document is be appropriate.’’ applicable for any cementing operation consistent with BSEE policy in the and thus does not need to be Summary of Final Rule Revisions approaches used to address these issues, specifically cross-referenced in Based upon comments received, BSEE appropriate for meeting the agency’s paragraphs (a) and (b). Removing this regulatory needs, and preferable to an cross-reference does not change any is revising paragraph (b) to require notification to the BSEE District agency-developed standard. API requirements for how operators must Bulletin 92L includes flow charts that respond to indications of an inadequate Manager in the event the required safe drilling margin cannot be maintained, can be used as an aid to safely drill cement job; if there are any indications ahead when lost circulation occurs and of an inadequate cement job, the and to incorporate API Bulletin 92L as a standard for further action, where the required criteria and procedures are operator must evaluate the cement job met. as required in § 250.428. appropriate. In conjunction with the incorporation of API Bulletin 92L, BSEE What must I do in certain cementing Summary of comments: A commenter is requiring submittal of a revised and casing situations? (§ 250.428) expressed concerns that the proposed permit documenting any responsive This section of the existing revisions to this section would actions taken to remedy lost circulation. regulations describes actions that must compromise safety and asserted that BSEE is also clarifying that the District be taken when certain situations (e.g., BSEE failed to explain why its prior Manager must review and approve any unexpected formation pressures) are rationale for the language of § 250.423 proposed remedial actions where the encountered during casing or cementing contained in the 2016 WCR was operator suspends drilling operations in operations. inaccurate or no longer applies. The response to an inability to maintain the commenter recommended retaining the drilling margin. Summary of Proposed Revisions current regulatory requirements. • Summary of Comments BSEE proposed to revise paragraph (c) Response: BSEE disagrees that this to include the term ‘‘unplanned’’ when revision compromises safety or is Comments Related to Proposed describing the lost returns that provide inaccurate and inconsistent with prior § 250.427—Incorporation of API indications of an inadequate cement job. rationale. After further BSEE review Bulletin 92L BSEE proposed this revision to since the 2016 WCR, and as discussed Summary of comments: Many minimize the number of unnecessary in the proposed rule, some of these commenters requested that BSEE revised permits submitted to BSEE for latching or locking mechanisms are incorporate API Bulletin 92L, in approval. Current cementing practices designed to automatically engage upon accordance with NTTAA requirements, utilize improved well modelling to installation of the associated string. The for managing certain well conditions identify and account for zones that may revisions made by this final rule such as mud losses. The commenters have anticipated losses that are not continue to ensure the lock down asserted that this document was indicative of an inadequate cement job. mechanisms are properly securing the developed by API with BSEE BSEE proposed to redesignate existing appropriate liner or casing in place to participation to provide detailed paragraph (c)(iii) as new paragraph ensure wellbore integrity while operational direction in the event of lost (c)(iv) and to add new paragraph (c)(iii) eliminating inconsistency between the circulation while drilling in the Gulf of to allow the use of tracers in the cement, existing regulatory text and certain Mexico. The commenters asserted that it and the logging of the tracers’ location common designs of the relevant is appropriate for operators to specify, prior to drill out, as an alternative mechanisms. in the well’s DWOP or APD, how they approach for locating the top of cement. What are the requirements for pressure will remedy an anticipated loss of BSEE proposed this addition to provide integrity tests? (§ 250.427) circulation on bottom. They also more viable options and more flexibility asserted that, if an operator experiences for locating top of cement, without This section in the current regulations an unanticipated loss of circulation or a compromising safety, in order to help specifies the requirements for reduced drilling margin, the operator minimize rig down time from running conducting pressure integrity testing. should provide notice and the operator’s in and out of the hole multiple times. This section also requires the operator plan for remedying the issue to BSEE In addition, BSEE proposed a revision to revise its drilling program based upon within a reasonable timeframe. to paragraph (d) to clarify that, if there pressure integrity testing and hole • Response: For the reasons is an inadequate cement job, operators behavior observations and requires the explained in part III.B.1 of this notice, are required to comply with operator to maintain the safe drilling BSEE agrees with the commenters’ § 250.428(c)(1). This revision would margin while drilling. recommendations to incorporate API help assess the overall cement job to

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allow for improved planning of was not considered and approved for confirm the location of the tracers; remedial actions. remedial action, the operator must however, BSEE expects that operators BSEE also proposed to revise obtain separate approval to remedy the will still be able to locate the TOC by paragraph (d) to allow BSEE to pre- actual issue presented. logging tracers with the BHA. approve remedial cementing actions Comments Related to Proposed Comments Related to Proposed through a contingency plan within the § 250.428—Unplanned Versus § 250.428(c)—Evaluation Logs original approved permit. BSEE Unanticipated Lost Returns proposed to allow operators to include Summary of comments: A commenter the remedial actions as contingency Summary of comments: A commenter suggested that BSEE require a cement plans in the original APD, for BSEE to suggested that the proposed wording evaluation log in complex, higher risk consider for pre-approval, in order to change should be ‘‘unanticipated lost wells and for wells in environmentally minimize the time necessary for returns’’ instead of ‘‘unplanned lost sensitive locations. The commenter operators to commence approved returns.’’ asserted that temperature and tracer logs • remedial cementing actions, and to Response: BSEE disagrees with will indicate the cement top, but will reduce burdens on operators and BSEE commenter. This change is not not provide information on cement resulting from multiple submissions of necessary because certain lost returns quality throughout the entire cement revised permits. However, the rule can be planned for within a BSEE- column. The commenter also asserted clarifies that, if BSEE has not already approved permit, and the information that a cement evaluation log provides approved the remedial actions, the can be identified, included, and substantially more information on operator must submit the remedial approved within the permit. Further, cement placement and quality. The actions in a revised permit application there can be lost returns that an operator commenter also suggested that if for BSEE review and approval. may not ‘‘anticipate’’ occurring, but remedial cementing is needed, a cement which the operator nevertheless may be evaluation log should be run to verify Summary of Final Rule Revisions: able to plan for in advance, should they the repair. • BSEE received and considered occur. The key is whether the operator Response: BSEE agrees with the comments on these provisions of the has an acceptable plan in place for commenter that a cement evaluation log proposed rule and includes the addressing the lost returns, regardless of helps determine cement placement and proposed language in the final rule whether it anticipates them occurring or the overall quality of the cement job. without change. not. If an operator encounters However, BSEE disagrees with the circumstances that are not described in commenter’s suggestion that a cement Summary of Comments an approved permit, such as unplanned evaluation log is necessary for the Comments Related to Proposed lost returns, then a new BSEE approval specified wells even when there is not § 250.428(d)—Use of a Professional would be required at that time. an indication of an inadequate cement Engineer (PE) job. BSEE requires other tests to help Comments Related to Proposed confirm well and cement integrity (e.g., Summary of comments: A commenter § 250.428(c)(1)—Use of a Casing Shoe pressure integrity testing required in opposed the proposal to allow pre- Test existing § 250.427). The purpose of approval of remedial cementing actions paragraph (c) is to help determine f HT Summary of comments: Some in lieu of requiring approval at the commenters suggested that BSEE add whether remedial actions are necessary time, asserting that pre-approval would when there is an indication of an t the use of a casing shoe test to locate the be hypothetical since the problem to b inadequate cement job, and BSEE’s t top of cement. remedied would not b known at the • Response: BSEE disagrees with regulations offer the option to run time of approval. commenter. A casing shoe test by itself cement evaluation logs to determine the • Response: BSEE disagrees with the does not confirm cement integrity TOC. Furthermore, BSEE also has the commenter. PE certification of the behind the casing/liner or verify the top discretion to require additional logs if remedial actions may be included in the of cement (TOC). warranted on a case-by-case basis. original permit, if the operator is able to anticipate where losses may occur (e.g., Comments Related to Proposed Comments Related to Proposed depleted zones, known geology). The PE § 250.428(c)(1)(iii)—Use of Tracers § 250.428(d)—Use of Flow Charts may review the proposed remedial Summary of comments: Some Summary of comments: A commenter actions in the original permit to ensure commenters expressed concerns about recommended the addition of language integrity and consistency with BSEE’s the proposed language to require logging to allow the use of approved operator regulations. If the operator chooses to of the tracers prior to drill out. The flow charts to determine the extent and include contingency planning in the commenters recommended removal of timeliness of the remedial actions in original permit application, those ‘‘prior to drill out.’’ The commenters lieu of BSEE-approved permits. contingencies would be reviewed and asserted that tracers are meant to be • Response: BSEE declines to certified by the PE. If the operator used when the losses are more likely, expressly include a reference in the encounters circumstances that the and that operators should be able to find regulations that would allow the use of approved permits do not address the TOC through the use of bottom hole operator flow charts for remedial actions (including PE certification), it would be assembly (BHA) measurement while in lieu of a BSEE-approved permit. If a required to submit a revised permit for drilling (MWD). cement job is deemed inadequate BSEE approval that would include the • Response: BSEE does not accept the according to the criteria specified in the PE certification. Accordingly, the commenters’ suggested removal of existing regulations, then the operator commenter’s concern that the problem ‘‘prior to drill out.’’ The addition of must take remedial actions. BSEE does would not be known at the time of tracers to this section allows operators not limit the information that is approval is addressed by the fact that another option for determining if the submitted within a permit application any approval will reach only those cement job is adequate. The commenters for BSEE review and approval. An issues foreseen and considered at the incorrectly assumed that BSEE is operator may submit flow charts in the time of approval; if the issue that arises requiring an additional logging run to permit application outlining the

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proposed remedial actions, if it so What are the requirements for to clarify that it is applicable only to chooses. BSEE may consider approval of directional and inclination surveys? collocated equipment identified in the such flow charts as part of the operator’s (§ 250.461) Regional Containment Demonstration remedial actions. But flow charts will This section of the existing (RCD) or Well Containment Plan and not replace permits in the approval regulations specifies operational not to all collocated equipment. BSEE process. requirements for conducting surveys in proposed revisions to both paragraphs vertical and directional wells. (e)(3) and (e)(4) to help ensure that the What are the diverter actuation and equipment described in those testing requirements? (§ 250.433) Summary of Proposed Revisions paragraphs is available for BSEE BSEE proposed to revise paragraph (b) inspection. This section of the existing by extending the maximum permitted regulations describes the requirements Summary of Final Rule Revisions survey intervals during angle-changing for diverter actuation, pressure testing, portions of directional wells from 100 BSEE received and considered and vent line flow testing. feet to 180 feet. This would account for multiple comments in support of and in Summary of Proposed Revisions the majority of the pipe stand lengths in opposition to the proposed changes. use and would address technological BSEE is including the proposed BSEE proposed to revise existing developments that BSEE has language in the final rule. BSEE is also paragraph (b) to modify requirements accommodated through approvals of including in this final rule an for subsequent diverter testing after the alternative procedures under § 250.141 administrative revision to paragraph initial test, by allowing partial since before the 2016 WCR. (e)(2)(i) to reflect the correct cross- reference to the Subpart H regulations. activation of the diverter element and by Summary of Final Rule Revisions not requiring a flow test. BSEE proposed This change is technical, non- these changes to codify longstanding BSEE received a few comments in substantive, and necessary due to the general support of the proposed BSEE policy, minimize the number of updated citations from another recently revisions to this section, and is alternate procedure requests submitted published BSEE rulemaking, Final Rule: including the proposed language in the to BSEE, and help minimize the Oil and Gas and Sulphur Operations on final rule without change. the Outer Continental Shelf—Oil and possibility of accidental discharge of Gas Production Safety Systems (83 FR mud overboard during full flow testing. What are the source control, containment, and collocated equipment 49216, September 28, 2018) which Summary of Final Rule Revisions requirements? (§ 250.462) updated the production safety systems requirements of Subpart H. BSEE received and considered This section of the existing multiple comments regarding this regulations outlines the requirements Summary of Comments proposed provision, including a number for BSEE approval of the operator’s Comments Related to Proposed in general support, and includes the source control and containment § 250.462—SCCE Availability capabilities, including a determination proposed language in the final rule Summary of comments: Some without change. of the source control and containment equipment capabilities, assurance of commenters opposed the proposed Summary of Comments access to the equipment, and ability to revisions to this section, asserting that deploy Source Control and Containment the proposed changes would weaken the Comments Related to Proposed requirements to have SCCE available, § 250.433—Opposition to Proposed Equipment (SCCE). This section also includes maintenance, inspection, and and could significantly increase the Changes testing requirements for specified time involved to control a major oil containment equipment. spill. Summary of comments: A commenter • Response: BSEE disagrees with opposed the proposed changes asserting Summary of Proposed Revisions these comments. The dedicated that the proposed rule did not In paragraph (b) of this section, BSEE equipment at issue is used solely for adequately define the proposed reduced proposed to clarify that the SCCE to containment and must be available for diverter system testing or demonstrate which operators need to have access is inspection by BSEE at all times, and the that the new test regimen would provide based on the determinations regarding location of this collocated equipment a level of safety equivalent to the source control and containment will be provided to BSEE. The existing test requirements. capabilities required in § 250.462(a). equipment required for the specific well • Response: BSEE disagrees with the BSEE also proposed to clarify that the location is determined based on the commenter. The final rule requirements identified list of equipment represents operator’s RCD or Well Containment will improve the existing regulation and examples of the types of SCCE that may Plan (WCP). As discussed in the will ensure safety at least equivalent to be determined appropriate in specific proposed rule, the majority of SCCE, the existing requirements. The revisions circumstances rather than equipment such as capping stacks and top hats, has will minimize the risk of hydrocarbons that is universally required. no other commercial purpose and is or mud inadvertently being discharged BSEE proposed revisions to paragraph used solely for containment operations. overboard during subsequent testing (e)(1)(ii) to replace the phrase ‘‘a BSEE This unique containment equipment is maintained and readily available for while ensuring functionality and approved verification organization’’ inspection by BSEE at any time and integrity of the components by requiring with the phrase ‘‘an independent third party.’’ would be available for immediate use if the partial activation. Furthermore, BSEE also proposed revisions to a well control event occurs. Other BSEE still requires actuation of the paragraph (e)(3) to clarify that subsea equipment listed for source control that diverter sealing element, diverter valves, utility equipment utilized solely for has broader commercial purposes, such and diverter control systems upon containment operations must be as ROVs and vessels, are also required installation, and a flow test of the vent available for inspection at all times. to be readily available. The clarifying lines as required in existing § 250.433. BSEE proposed revising paragraph (e)(4) revisions to these regulatory provisions

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do not weaken these key safety • Response: BSEE agrees with the How do I manage the thermal effects elements. commenters who expressed general caused by initial production on a newly completed or recompleted well? Subpart E—Oil and Gas Well- support for the proposed revisions. (§ 250.522) Completion Operations BSEE also agrees to some extent with one commenter’s concerns about This section of the existing Tubing and Wellhead Equipment potential confusion regarding the regulations specifies operational (§ 250.518) mechanical barriers language in the requirements regarding thermal casing This section of the existing proposed changes to § 250.518, Tubing pressure during initial startup. regulations outlines the completion and Wellhead Equipment. The required Summary of Proposed Revisions operational requirements for tubing, mechanical barriers are specific to the wellhead equipment, subsurface safety associated operation (workover, BSEE proposed minimal revisions to equipment, and packers and bridge completion, or decommissioning) and this section to update incorrect plugs. the regulatory text should be clear and citations. These revisions are administrative in nature and ensure that Summary of Proposed Revisions consistent with similar requirements. Based on the consideration of this the appropriate citations are correctly BSEE proposed revisions to paragraph comment, BSEE revised the language in cross referenced. (e)(1) to clarify that only permanently final § 250.518 to be consistent with the installed packers or bridge plugs, which Summary of Final Rule Revisions language in final § 250.619, pertaining are qualified as mechanical barriers, are BSEE received a few comments in required to comply with ANSI/API to workover operations. During general support of the proposed Spec. 11D1. BSEE proposed these comment review, BSEE determined that revisions to this section and is including changes to ensure that the packers and it should add a new final paragraph (g) the proposed language in the final rule bridge plugs utilized as required that mimics the language proposed for without change. mechanical barriers are ANSI/API Spec. § 250.619, Tubing and wellhead equipment, to address the circumstance When am I required to take action from 11D1 compliant, while eliminating the my casing diagnostic test? (§ 250.525) requirement that packers and plugs used of well control equipment being for other, non-critical, purposes meet unlatched during initial completion This section of the existing the standard. operations. This language is consistent regulations specifies certain operational with how BSEE has implemented this conditions that, when identified in the Summary of Final Rule Revisions regulation, and BSEE is making this casing diagnostic tests, would require an BSEE received and considered addition to further clarify the intent to operator to take actions. comments on the proposed revisions have two barriers in place prior to Summary of Proposed Revisions and, based on that review, BSEE is removing the tree or well control BSEE proposed minimal revisions to revising paragraph (e)(1) in this final equipment. This addition reflects paragraph (d) of this section to update rule to further clarify that the current BSEE requirements and ‘‘uppermost’’ permanently installed incorrect citations. These revisions are operational practice. However, BSEE administrative in nature and ensure that packer and ‘‘all permanently installed’’ disagrees with the commenter’s bridge plugs, which qualify as a the appropriate citations are correctly suggestion that the barriers should be mechanical barrier, must comply with cross referenced. identified in the well control plan, as ANSI/API Spec. 11D1. These revisions Summary of Final Rule Revisions provide further clarity about what these mechanical barriers are identified packers and bridge plugs are covered by within the well schematics submitted in BSEE received a few comments in this section and codify BSEE policy that BSEE permit applications. general support of the proposed has been in place since the revisions to this section and is including What are the requirements for casing the proposed language in the final rule implementation of the 2016 WCR. Also pressure management? (§ 250.519) based on BSEE’s consideration of without change. comments received on the proposed This section of the existing What do I submit if my casing rule, BSEE is adding in the final rule a regulations requires casing pressure diagnostic test requires action? new paragraph (g) to require operators management and adherence to specified (§ 250.526) to ‘‘have two independent barriers, one industry standards and the requirements This section of the existing being mechanical, in the exposed center of this subpart. regulations specifies the required wellbore prior to removing the tree and/ submittals in the event of a casing or well control equipment.’’ Summary of Proposed Revisions diagnostic test that requires action. Summary of Comments BSEE proposed minimal revisions to Summary of Proposed Revisions Comments Related to Proposed this section in order to update incorrect BSEE proposed minimal revisions to § 250.518—Barrier clarification citations. These revisions are administrative in nature and ensure that this section to update incorrect Summary of comments: Multiple the appropriate citations are correctly citations. These revisions are commenters supported the proposed cross referenced. administrative in nature and ensure that clarification of this section. However, the appropriate citations are correctly one commenter expressed concerns that Summary of Final Rule Revisions cross referenced. there would bt confusion about the use of mechanical barriers designed for BSEE received a few comments in Summary of Final Rule Revisions other operations during well completion general support of the proposed BSEE received a few comments in or workovers. The commenter asserted revisions to this section and is including general support of the proposed that identification of the proper barriers the proposed language in the final rule revisions to this section and is including should bt stated in the well control plan without change. the proposed language in the final rule to eliminate any potential confusion. without change.

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What if my casing pressure request is subparts of BSEE’s regulations (in 30 is also moving the phrase ‘‘You must denied? (§ 250.530) CFR part 250) by consolidating those have two independent barriers, one This section of the existing requirements in Subpart G, which is being mechanical, in the exposed center regulations outlines the steps an applicable to drilling, completions, wellbore prior to removing the tree and/ operator must take when BSEE denies workovers, and decommissioning or well control equipment’’ from its casing pressure request. operations. proposed paragraph (e)(1) to new final Summary of Final Rule Revisions paragraph (g). This administrative Summary of Proposed Revisions: change will help clarify the BSEE received a few comments in BSEE proposed minimal revisions to requirements in paragraph (e)(1) and general support of the proposed paragraph (b) of this section to update confirm that paragraph (g) is a stand- revisions to this section and is including incorrect citations. These revisions are the proposed removal and reservation in alone requirement. administrative in nature and ensure that the final rule without change. the appropriate citations are correctly Summary of Comments cross referenced. Tubing and Wellhead Equipment Comments Related to Proposed (§ 250.619) Summary of Final Rule Revisions § 250.619—Barrier Clarification This section of the existing BSEE received a few comments in regulations outlines the workover Summary of comments: Multiple general support of the proposed operational requirements for tubing, commenters supported the proposed revisions to this section and is including wellhead equipment, subsurface safety clarification of this section for the the proposed language in the final rule equipment, and packers and bridge reasons explained in the proposed rule. without change. plugs. However, one commenter expressed concerns that there would bt confusion Subpart F—Oil and Gas Well-Workover Summary of Proposed Revisions Operations about the use of mechanical barriers BSEE proposed to revise paragraph designed for other operations during Definitions (§ 250.601) (e)(1) by clarifying that only well completion or workovers. The This section in the existing permanently installed packers and commenter asserted that identification regulations lists the definitions specific bridge plugs that are qualified as of the proper barriers should bt to workover operations. mechanical barriers are required to included in the well control plan to comply with ANSI/API Spec. 11D1. eliminate any potential confusion. Summary of Proposed Revisions This revision would codify BSEE’s • Response: BSEE agrees with the BSEE revises the definition of policy developed since promulgation of ‘‘routine operations’’ in this section to the 2016 WCR, to ensure that the commenters’ expression of general make it consistent with the definition of required mechanical barriers in a well support for the proposed revisions. routine operations in § 250.105 by are held to a higher standard than other BSEE also agrees to some extent with adding paragraph (m) ‘‘Acid common packers or bridge plugs used one commenter’s concerns about treatments.’’ The 2016 WCR did not for various well-specific conditions and potential confusion regarding the address this provision, however based completions design. Furthermore, BSEE mechanical barriers language in the on BSEE experience, this revision is is aware that certain packers and bridge proposed changes to § 250.518. The necessary to help minimize confusion plugs cannot meet the specifications of required mechanical barriers are about the definition of routine ANSI/API Spec. 11D1. specific to the associated operation operations. BSEE also proposed to require (workover, completion, or operators to have two independent decommissioning) and the regulatory Summary of Final Rule Revisions barriers, including one mechanical text should be clear and consistent with BSEE received a few comments in barrier, in the exposed center wellbore similar requirements. Based on the general support of the proposed prior to removing the tree or well consideration of this comment BSEE revisions to this section and is including control equipment. This addition would revised the language in final § 250.518 the proposed language in the final rule codify existing BSEE policy and make to be consistent with the language in without change. the workover requirements in Subpart F proposed and final § 250.619, and regarding mechanical barriers similar to Coiled Tubing and Snubbing Operations modified the proposed organization of those already found in existing (§ 250.616) § 250.619 for clarity and consistency. § 250.720(a). This language is consistent with how This section of the existing regulations specifies the minimum Summary of Final Rule Revisions BSEE has implemented this regulation, requirements for coiled tubing and BSEE received and considered and BSEE is making this addition to snubbing equipment as well as comments on the proposed revisions further clarify the intent to have two operational requirements for conducting and, based on that review, BSEE is barriers in place prior to removing the workover operations with the revising paragraph (e)(1) in this final tree or well control equipment. This production tree in place. rule to further clarify that both the addition reflects current BSEE ‘‘uppermost’’ permanently installed requirements and operational practice. Summary of Proposed Revisions packer and ‘‘all permanently installed’’ However, BSEE disagrees with the BSEE proposed to remove and reserve bridge plugs that qualify as a commenter’s suggestion that the barriers this section, and to move the content of mechanical barrier must comply with should be identified in the well control this section to proposed § 250.750, with ANSI/API Spec. 11D1. These revisions plan as these mechanical barriers are minor revisions discussed in connection provide further clarity about what identified within the well schematics with that provision. BSEE proposed packers and bridge plugs are covered by submitted in BSEE permit applications. these revisions to help eliminate this section and codify BSEE policy that inconsistencies between similar has been in place since the requirements throughout different implementation of the 2016 WCR. BSEE

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Subpart G—Well Operations and available for inspection by BSEE upon the system has not been modified, the Equipment request. BSEE proposed this addition to previous test should be sufficient. ensure that when intervention is • Response: BSEE disagrees with the What rig unit movements must I report? necessary on a well, the applicable tools comments. When the functional system (§ 250.712) (such as the tree interface tools) are is disconnected, whether it is modified This section of the existing available and ready for their intended or not, it is important to ensure that the regulations specifies the requirements use. emergency systems are completely for reporting to BSEE of rig unit functional upon reconnection of that movement on and off location, and Summary of Final Rule Revisions system. The deadman system specifies the required content of the BSEE received and considered functionality is verified by testing that reporting. comments on the proposed revisions system, as required by this regulation. Summary of Proposed Revisions and includes the proposed language in Comments Related to Proposed the final rule. Furthermore, based on §§ 250.720(a)(3)(iii), 734, and 738— BSEE proposed to revise this section comments received, BSEE is also adding by adding new paragraphs (g) and (h). Independent Third Party Re- language to paragraph (a)(3)(iii) to Verifications BSEE proposed to add paragraph (g) to require that the operator, upon relatch clarify that reporting is not necessary for of a BOP or LMRP, ‘‘submit a revised Summary of comments: A commenter rig movements to and from the safe zone permit with a written statement from an recommended that BSEE require a during permitted operations. BSEE independent third party certifying that report from an independent third party proposed to add paragraph (h) to clarify the previous certification in § 250.731(c) if the events listed in § 250.720(a)(1) that, if a rig unit is already on a well, remains valid. . . .’’ This revision will would invalidate a verification BSEE would not require a notification provide BSEE with additional assurance submitted pursuant to §§ 250.731(d) and for any additional rig unit movements 250.732(c). that the related equipment is fit for • on that well. service upon relatch and clarifies the Response: BSEE agrees with the commenter and added a requirement for Summary of Final Rule Revisions necessary submittal and associated information required in order to receive submitting a revised permit with a BSEE received a comment in general District Manager approval. This written statement from an independent support of the proposed revisions to this addition reflects current BSEE practice third party certifying that the previous section and is including the proposed and is the same information operators certification under § 250.731(c) remains language in the final rule without must submit with the required BSEE valid. BSEE also made corresponding change. permits. This provides assurance that edits to similar requirements in §§ 250.734 and 250.738. These revisions When and how must I secure a well? the specified BOP certifications are still help ensure that the BOP is still fit for (§ 250.720) valid and provides consistent documentation of recertification. service at the same location following This section of the existing Corresponding edits are also made to relatch after disconnect. regulations outlines the requirements §§ 250.734 and 250.738. for securing a well whenever operations Comments Related to Proposed BSEE is also revising paragraph (d) to are interrupted (e.g., evacuation of the § 250.720(d)—Intervention Equipment clarify that operators need only meet the rig crew, inability to keep the rig on Requirements requirements from the proposed rule for location, and repair to major rig or well- Summary of comments: Multiple subsea completed wells with a tree control equipment). commenters expressed concerns with installed that have a shut-in tubing the proposed requirements related to the Summary of Proposed Revisions pressure that is greater than the availability of intervention equipment. BSEE proposed to revise paragraph hydrostatic pressure of the water Commenters asserted that the proposed (a)(1) to add an impending National column, or subsea wells that are not requirements were ‘‘overly prescriptive’’ Weather Service-named tropical storm capable of having the annulus and would place undue financial or hurricane to the list of example monitored. This revision will help burden on operators. The commenters events that would interrupt operations ensure that operators have available the proposed replacing § 250.720(d) with and require notification. Furthermore, appropriate intervention tools for wells language that requires operators to BSEE also proposed to add new with higher risk potential, and will prepare and have available a well paragraph (a)(3) to include provisions reduce the unnecessary burden of intervention readiness plan based on a for testing the applicable BOP or LMRP applying this new requirement to lower risk analysis, and that only requires the upon relatch according to § 250.734 risk wells. equipment identified as necessary paragraphs (b)(2) or (b)(3), respectively, Summary of Comments through that plan to be available for use and obtaining BSEE approval before and BSEE inspection. Additionally, one Comments Related to Proposed resuming operations. BSEE proposed of the commenters recommended § 250.720(a)—Retesting the Deadman these revisions to codify the BSEE storm adding a definition for ‘‘readily System policy reflected in longstanding available.’’ guidance and to provide clarity for Summary of comments: Some • Response: BSEE agrees with the testing requirements when an operator commenters expressed concerns with commenter’s recommendation that the has returned to the well location and the requirement in § 250.734(b), operator should determine the required relatched the BOP or LMRP. BSEE also incorporated here, to re-test the intervention equipment based on an proposed to add new paragraph (d) deadman systems when they have not analysis of the risks associated with a requiring equipment and capabilities for been repaired or affected by the well. Accordingly, BSEE revised well intervention and specifying that suspension. The commenters proposed § 250.720(d) to limit the equipment used solely for well recommend not to test the deadman intervention equipment requirements to intervention must be readily available upon relatch. The commenters asserted subsea completed wells with a tree for use, maintained in accordance with that, while it is important to verify that installed, that have a shut-in tubing applicable OEM recommendations, and the system is functional, in cases where pressure that is greater than the

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hydrostatic pressure of the water emergency shutdown station for the weather or environmental conditions column, or that are not capable of production system, and shutting in that could make mooring more difficult. having the annulus monitored. BSEE producing wells for certain rig • Response: BSEE generally agrees wants to ensure that appropriate movements) for operations on a with the commenter that different lift intervention equipment is available and platform that has a producing well or boat sizes may present different risks; properly maintained for higher risk other hydrocarbon flow. however, BSEE is not making any changes to this section of the proposed wells, but not to impose unnecessary Summary of Proposed Revisions burdens through application of these rule. BSEE determined that the vast new requirements to low risk wells. BSEE proposed to revise this section majority of lift boats used on the OCS BSEE disagrees with the by removing the phrase ‘‘or lift boat.’’ are relatively small compared to the size recommendation to define ‘‘readily This would primarily impact paragraph of a MODU and would not typically be available’’ because it would be (c)(3), which requires a shut-in of all expected to have the same operational impractical to establish uniform producible wells located in the affected impacts and potential risks as a MODU. requirements for the deployment wellbay when a lift boat moves within BSEE is considering the effects of the timeframe of the intervention 500 feet of the platform until the lift size of lift boats for potential future equipment due to the variability of boat is in place, secured, and ready to rulemakings, and may gather additional equipment and logistics for each well begin operations. information and provide guidance on a location. Operators should not rely on Summary of Final Rule Revisions case-by-case basis for any lift boats that SCCE for routine intervention could reasonably be expected to have an BSEE received and considered operations where intervention operational impact comparable to a comments on the proposed revisions MODU. equipment is required. and includes the proposed language in What are the requirements for prolonged the final rule without change. BSEE What are the real-time monitoring operations in a well? (§ 250.722) received comments in general support requirements? (§ 250.724) This section of the existing of and opposition to the proposed This section of the existing regulations specifies actions necessary changes in addition to the following regulations requires operators to gather to determine well integrity for specific, substantive comments. and monitor real-time well data when operations continuing longer than 30 Summary of Comments conducting operations with a subsea days from a previous casing or liner test. BOP or with a surface BOP on a floating Comments Related to Proposed facility, or when operating in an HPHT If well integrity has deteriorated to a § 250.723—Lift Boat Activities level below minimum safety factors, this environment, and to develop a real time section requires repairs or installation of Summary of comments: A commenter monitoring (RTM) plan detailing how additional casing and subsequent recommended requiring lift boats to the operator will develop and utilize pressure testing, as approved by the approach platforms from the opposite RTM. side of subsea pipeline placement, District Manager. Summary of Proposed Revisions which the commenter understands is Summary of Proposed Revisions the current industry-accepted practice. BSEE proposed to revise this section BSEE proposed to revise the The commenter also asserted that the by removing many of the prescriptive prolonged operations well casing specific regulations should take into real-time monitoring requirements and reporting requirements in paragraph consideration the type of work the lift moving towards a more performance- (a)(2) of this section to clarify that BSEE boat is performing to help minimize based approach. BSEE proposed to does not require District Manager unnecessary shut-ins. remove existing paragraph (b) with its approval to resume operations if an • Response: BSEE agrees that associated prescriptive requirements, operator conducts a successful pressure operators should consider subsea and to re-designate existing paragraph test as already approved in the infrastructure when positioning any (c) as paragraph (b), with minor applicable permit. BSEE also proposed type of bottom supported vessels. BSEE revisions to shift certain prescriptive to clarify that operators must document is not including the commenter’s elements to be more performance-based. the successful pressure test results in recommendations in the regulations due BSEE also proposed to continue the Well Activity Report (WAR), and to the diverse equipment, multiple requiring the items in existing also proposed minor revisions to this possible subsea configurations, and paragraph (c) in an RTM plan. varying operational situations presented paragraph to provide that the Summary of Final Rule Revisions calculations are used to ‘‘indicate’’ not by impacted operations. They are ‘‘show’’ that the well’s integrity is above likewise outside the scope of this BSEE received and considered the minimum safety factors. rulemaking. Removal of lift boats from comments on this section, and is this provision should address the revising proposed paragraph (a)(2) to Summary of Final Rule Revisions commenter’s concerns regarding clarify that it relates to monitoring of BSEE received a few comments in unnecessary shut-ins. ‘‘the well’s active fluid circulating general support of the proposed system.’’ This revision would clarify the Comments Related to Proposed revisions to this section and is including intent of the 2016 WCR RTM § 250.723—Lift Boat Size the proposed language in the final rule requirements and ensure that the system without change. Summary of comments: Multiple used for circulation of the well fluid is commenters expressed concerns with properly monitored, while removing What additional safety measures must I the removal of lift boats from this any implication that RTM is required for take when I conduct operations on a section. However, the commenters also fluids not in active circulation. BSEE is platform that has producing wells or has suggested that, if the current regulations also adding back in clarifying language other hydrocarbon flow? (§ 250.723) are too onerous, the shut-in requirement similar to the first sentence in existing This section of the existing should only apply to lift boats that are paragraph (b) (with certain prescriptive regulations requires additional safety above a certain size or class, or when lift elements removed), as follows: ‘‘(b) You measures (e.g., installation of an boats approach during more challenging must transmit these data as they are

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gathered, barring unforeseeable or requirements are located in Subpart G, Comments Related to Proposed unpreventable interruptions in which covers operations and equipment § 250.724—Weakening Real Time transmission, and have the capability to associated with drilling, completion, Monitoring Plan Requirements monitor the data, using qualified workover, and decommissioning Summary of comments: Many of the personnel in accordance with a real- activities. BSEE agrees with the commenters oppose BSEE’s proposed time monitoring plan, as provided in commenters that RTM should apply to elimination of prescriptive requirements paragraph (c) of this section.’’ BSEE is drilling, completion, workover, and for RTM plans and adoption of a also re-designating proposed paragraph decommissioning operations because all performance-based approach. The (b) as final paragraph (c) with no other the operations have similar potential commenters also assert that the changes to the remainder of the hazards and risks, and are also usually proposed rule: Lacks meaningful proposed section. These revisions conducted utilizing the same types of standardization of RTM requirements; address comments received about rigs and equipment. does not provide sufficient oversight if clarifying who will be monitoring the Summary of comments: Some of the operators are not required to transmit data by making that a matter to be data onshore in real time for monitoring addressed in the RTM plan. These commenters request that BSEE apply RTM only to the operations covered in by qualified personnel; and should not revisions do not alter the requirements limit the requirements to drilling of the substantive RTM operational API Standard 53, reduce the data retention period for RTM data from 2 operations. As the basis for opposing the capabilities and what is addressed removal of prescriptive requirements for within the company-specific RTM plan. years to 90 days, and clarify that an RTM monitoring center located onshore RTM plans, many of the commenters Summary of Comments is not required. cite the findings and recommendations of the post-Deepwater Horizon • Comments Related to Proposed Response: BSEE disagrees with the investigations and reports as well as the § 250.724—Performance-Based Real comments regarding restricting the rationales that support the RTM Time Monitoring Plan applicability of RTM to the scope of API requirements found in the 2016 WCR. Summary of comments: Some of the Standard 53 and reducing the data • Response: BSEE is establishing an commenters support the transition from retention timeframes. BSEE believes that initial framework for RTM and may prescriptive requirements to a it is important for the RTM supplement the regulations with performance-based Real Time requirements to apply to all operations additional operational provisions as Monitoring (RTM) plan. The conducted with a subsea BOP, surface more experience and research becomes commenters assert that a performance- BOP on a floating facility, and BOPs available. Even though the 2016 RTM based approach will allow them to used in HPHT environments because requirements have a compliance date of develop plans that are tailored to the these types of operations usually have April 29, 2019, a majority of the operating conditions, risk profiles, and the highest potential for hazards and operators already utilize many of the operator policies and procedures for increased risks. The regulations allow RTM capabilities within their current specific wells. the operator to tailor its approach operations. BSEE was able, through • Response: BSEE agrees in part with toward monitoring the specific increased interaction with these the commenters’ assertion that a operational components covered under companies, to better understand the performance-based approach has the paragraph (a) in the context of the logistical and operational considerations potential to align an operator’s RTM specific rig and operation through the for implementation of the RTM plan more effectively with a specific RTM plan. BSEE is also establishing an requirements. The 2016 WCR’s RTM well’s operating condition and risk initial framework for RTM and may requirements were themselves largely profile. BSEE is establishing an initial supplement the regulations to include a performance-based, relying primarily on framework for RTM and may reduced time period for data retention the operator’s development of an RTM supplement the regulations with as more experience and research plan tailored to its operations but built additional operational provisions as becomes available. For now, BSEE off of core principles. The revisions more experience and research becomes believes that the longer data retention implemented here do not reflect a sea available. window is important to ensure the change in philosophy, but rather merely availability of needed data. remove certain unnecessarily Comments Related to Proposed prescriptive elements (e.g., specifying § 250.724—Scope and Applicability of BSEE agrees with the commenters that that the RTM data must be transmitted Real Time Monitoring Plan an onshore RTM monitoring center is onshore, certain communications Summary of comments: Some of the not required. With currently available protocols, and that monitoring commenters support limiting the scope technology, operators are capable of personnel must be onshore). of RTM plans to drilling operations only using RTM remotely on computers and Notwithstanding the performance-based and providing operators with discretion tablets using web based applications. nature of these revisions, BSEE agrees regarding whether or not to include This allows for subject matter experts to that it is important to retain specific workover, completion, and utilize the data anywhere and at any requirements concerning data decommissioning activities in their time as necessary, as detailed in the transmission and has revised the RTM plans. On the other hand, multiple company’s RTM plan. BSEE requires the proposed RTM requirements to preserve other commenters assert that RTM operator to identify in the RTM plan content similar to the first sentence of should apply to all operations. how the RTM data will be transmitted existing paragraph (b), due to confusion • Response: BSEE currently requires and monitored, requires the rig from the commenters about who is RTM for all operations conducted with personnel and monitoring personnel to allowed to monitor the data. BSEE bases a subsea BOP, surface BOP on a floating be separate individuals, and requires this revision on comments received facility, and BOPs used in HPHT certain communication capabilities seeking clarification regarding who environments. BSEE is not making any among personnel, but does not must monitor the data, but does not changes to this requirement. As prescriptively dictate the establishment require changes to RTM operations or explained in the regulations, the RTM of an onshore monitoring center. the contents of the company-specific

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RTM plan. This revision clarifies who those operational and mechanical Summary of Final Rule Revisions must monitor the RTM data as described limits. BSEE received and considered in the RTM plan. In accordance with BSEE proposed to amend paragraph comments on the proposed revisions, paragraphs (c)(5) and (6), BSEE requires (b) to clarify that BSEE expects the use and includes in the final rule most of the rig personnel and monitoring of ‘‘applicable’’ OEM recommendations the proposed language without change, personnel to be separate individuals. for the design, fabrication, maintenance, except for the following revisions to Additionally, the updated regulations and repair of BOP systems, as well as paragraph (c). BSEE is revising proposed still establish requirements for RTM personnel training in their use. The paragraph (c) by replacing the references processes and systems. proposed revision to include to ‘‘BSEE’’ with ‘‘the Chief, Office of Comments Related to Proposed ‘‘applicable’’ is necessary because some Offshore Regulatory Programs (OORP)’’ § 250.724—RTM Verification OEMs may not have specific for purposes of directing where to send recommendations for every item submittals, and adding the address for Summary of comments: Multiple required by this paragraph. the Chief of OORP in paragraph (c)(4). commenters recommend that BSEE These revisions clarify to whom and periodically verify that operators are BSEE also proposed to revise the where to send failure reporting implementing their RTM plans via failure reporting requirements in submittals within BSEE, unless BSEE audits conducted by the agency, a paragraph (c) to codify BSEE guidance designates a third party to receive that BAVO, or an independent third-party. and current practice. BSEE proposed to information. Based on comments The commenters also recommend that remove the failure reporting references received, BSEE is also clarifying how to BSEE clarify the process by which the to ANSI/API Specs 6A and 16A because request an extension to the failure implementation of RTM requirements the failure reporting process outlined in analysis timeframe. BSEE is adding to will be verified and enforced. those standards is redundant to API paragraph (c)(2) a requirement that, if an • Response: This regulation requires Standard 53 and the remaining operator cannot complete the that operators develop and implement requirements of this section. Proposed investigation and analysis within the RTM plans, and specifically requires revisions to this paragraph also allotted time, they must submit a that those plans be made available to included clarification on submitting request for an extension of time BSEE upon request. If BSEE has any failure data and reports to BSEE, unless detailing how the investigation and concerns with an operator’s RTM BSEE has designated a third party to analysis will be completed. The request operations, then BSEE may undertake collect the data and reports, and for an extension of time must be inspections and enforcement actions to ensuring that an investigation and submitted for approval to BSEE through ensure compliance with the regulations. failure analysis are started within 120 the Chief of OORP. BSEE has additional options such as days. BSEE reevaluated the timeframes Summary of Comments routine onsite inspections or set forth in the 2016 WCR for verifications through the permitting performing the investigation and failure Comments Related to Proposed process to ensure that RTM plans are analysis and determined that certain § 250.730—What Are the General implemented in compliance with the operations would preclude operators Requirements for BOP Systems and regulations. from meeting the original timeframes. System Components? What are the general requirements for Accordingly, BSEE proposed to require Casing Shear Ram Requirements BOP systems and system components? that operators start their investigation Summary of comments: BSEE (§ 250.730) and failure analysis within 120 days of received a comment regarding the the failure. BSEE then proposed a 120- proposed changes to § 250.730(a) This section of the existing day timeframe for the operator to removing the phrase ‘‘excluding casing regulations includes requirements for complete the investigation and failure shear’’ from requirements for the BOP. the design, fabrication, installation, analysis once they have started the The commenter expressed concern that maintenance, inspection, repair, testing, process. BSEE’s justification refers to the fact and use of BOP systems and BSEE proposed to revise paragraph that BSEE ‘‘expects operators to ensure components. This section also requires (c)(4) to explain that BSEE may ram closure time and sealing integrity compliance with certain provisions of designate a third party to collect failure before exceeding those operational and API Standard 53 and several related data and reports on behalf of BSEE, and mechanical limits.’’ The commenter industry standards, and requires if it does so, operators must send the asserted that BSEE should clearly define operators to use failure reporting failure data and reports to the and state these expectations in the procedures. designated third party. regulations. The commenter also Summary of Proposed Revisions asserted that BSEE should confirm all BSEE also proposed to revise relevant specifications through their BSEE proposed to revise paragraph (a) paragraph (d) by removing the reference permitting process, inspection program, by removing ‘‘excluding casing shear’’ to a document incorrectly incorporated and performance testing requirements, and replacing ‘‘at all times’’ with ‘‘in the by reference, and incorporating the asserting that FHÈ Standard 53 and FHÈ event of flow due to a kick.’’ BSEE correct document. The regulations Spec 16D include details about the requires the BOP system as a whole to promulgated pursuant to the 2016 WCR accumulator system that enable BSEE to be capable of closing and sealing the require that BOP stacks be confirm compliance. wellbore. BSEE also proposed to clarify manufactured pursuant to a quality • Response: BSEE disagrees with the that the BOP system must be able to management system certified by an comment. The requirements in this close and seal the wellbore in the event entity that meets the requirements of section ensure that operators properly of flow due to a kick. BSEE knows there ISO 17011. The reference to the ISO design, install, maintain, inspect, test, are mechanical and operational design 17011 standard in the 2016 WCR is and operate each BOP component and limits of equipment, and expects incorrect, and BSEE proposed to correct the entire BOP system. The operators to ensure ram closure time the error by incorporating the ISO/IEC requirements of this section apply to the and sealing integrity to avoid exceeding 17021–1 standard. entire BOP system, including the casing

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shear. BSEE requires the BOP system as provides that the operator may request BSEE disagrees that a provision is a whole to be capable of closing and an extension to the failure analysis needed for BSEE to require accelerated sealing the wellbore before exceeding timeframes by submitting a request to investigations. BSEE has determined mechanical or operational limits of the the Chief, OORP and, if appropriate, that the timeframes required by the final equipment. BSEE reviews compliance BSEE may approve an extension. The rule are reasonable for conducting with the incorporated documents nature of certain operational failures— timely and thorough investigations, through the permit and inspection such as systematic failures, stack pulls, given that they will generally involve process. and lower marine riser pulls—may multiple parties and complex, large warrant additional case-by-case equipment. Comments Related to Proposed consideration, as it is reasonable to BSEE disagrees that the continuation § 250.730(c)—Failure Reporting expect the related analyses would of well operations should always Requirements require more time than allowed in the require the replacement or repair of Summary of comments: A commenter rule. In 2017, only 1.5% of the reported failed equipment. BSEE regulations recognized BSEE’s efforts related to the failure notifications resulted in an require redundant components for well reporting, analysis, and use of failure investigation and failure analysis that control. Thus, in some cases, well data. However, the commenter was required more than 120 days to operations may continue following an concerned that the proposed changes to complete. BSEE extended the timeframe equipment component failure. failure reporting do not provide a clear in the final rule to reduce its own Summary of comments: A commenter definition of f reportable failure. administrative burden for those cases asserted that allowing the same amount • Response: BSEE disagrees that the where extra time could enable the of time to initiate the failure definition of failure provided in timely resolution and completion of an investigation as to perform and § 250.730(c)(1) is unclear. The definition investigation and analysis report. For complete the investigation does not aligns with the definition used by the those rare cases requiring more time, seem appropriate. The commenter Blowout Preventer Reliability Joint BSEE believes that providing for an asserted that an operator should start Industry Project (JIP), a joint effort of the extension request is appropriate and the investigation within 30 days, and International Association of Drilling that the request may reasonably be then complete the investigation within Contractors (IADC) and the International expected to include the items 120 days of commencement. The Association of Oil and Gas Producers recommended by the commenter. commenter also suggested that if the (IOGP). This definition is generally used Summary of comments: A commenter operator cannot complete the report and understood by the industry and stressed that the failure investigation within the timeframe allotted, the adopted in the SafeOCS implementing and submittal of the reports to BSEE operator should submit monthly guidance, which was informed by input should occur as soon as practicable, progress reports to show progress from the JIP. preferably immediately after the failure. towards a solution. Another commenter Comments Related to Proposed The commenter asserted that, for observed that the proposed changes § 250.730(c)—Timing of Failure conducting a failure investigation and would essentially double the time permitted for failure investigation, Investigations analysis, it makes more sense to provide a required time ‘‘from the time thereby delaying completion of the Summary of comments: Multiple equipment first becomes available for investigation by four months. This commenters expressed concern testing’’ and not from the time of the commenter asserted that delaying a regarding the timing requirements incident. In addition, the commenter failure investigation does not make related to failure investigations. One asserted that, in addition to an option sense because the purpose of this commenter recognized that BSEE did for operators to request an extension, requirement is to inform BSEE and the propose to add additional time for the there should be a provision for BSEE to manufacturer of problems, so those investigation, but asserted that this did require an accelerated investigation, if problems may be resolved quickly in not address potential extenuating warranted by the circumstances. The order to prevent other accidents or circumstances (operational or commenter also suggested that BSEE failures. investigation related) that may prevent should not tie the failure analysis to • Response: The commenter’s the operator from completing an continuing well operations, asserting assumption that operators will use all investigation within 120 days. that continuing well operations should available time to delay a submission Therefore, the commenter requested that depend on the replacement of the failed does align with BSEE’s experience with BSEE include a provision in the final equipment with properly functioning the recent history of reporting since the rule to address investigations that equipment. rule implementation began. BSEE’s cannot be completed within the allotted • Response: BSEE agrees that an experience shows operators to be time. The commenter proposed that the investigation and failure analysis should making a good faith effort to complete provision require operators to provide a occur as soon as practicable after a investigations as soon as practicable. progress report, reasons regarding why failure. For subsea BOP operations, Based upon a substantial number of the investigation was not completed, equipment is not readily available for submissions, BSEE expects most and a defined period for the extension. investigation until it is returned to the submitters will have completed their • Response: BSEE disagrees with surface. If BSEE were to tie the investigation and analysis reports long including a provision that would allow requirement to begin the investigation before the allowable time runs. In 2017, operators a blanket extension of the 120 and failure analysis to the time the only 1.5% of the reported failure days to complete the failure analysis. equipment becomes available for notifications resulted in an investigation The final rule provides adequate time testing, rather than the time of the and failure analysis that required more for an operator to initiate and complete incident, it could result in delays in than 120 days to complete. The a failure analysis. BSEE does, however, commencing the investigation. BSEE provision in the rule allows extra time acknowledge that there may be believes that the new timeframes for the moderately complicated cases extenuating circumstances that prevent provide ample time for commencing the that require more time to process. For an operator from meeting these investigation without leaving the timing example, the nature of certain timelines. Accordingly, the final rule open and indefinite. operational failures—such as systematic

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failures, stack pulls, and lower marine • Response: BSEE disagrees with problematic wells as soon as possible to riser pulls—may warrant additional allowing a blanket extension of the 120- prevent additional failures. case-by-case consideration, as it is day completion date for the failure • Response: BSEE disagrees with the reasonable to expect the related analyses analysis. BSEE does, however, assertion that the language in paragraph would require more time beyond that acknowledge that there may be (c)(1) will ‘‘reduce the clarity, safety, allowed in the rule. BSEE extended the extenuating circumstances that prevent and effectiveness of BOP systems by timeframe in the final rule to reduce an operator from meeting these limiting information exchange about administrative burden for those cases timelines. Accordingly, the final rule equipment failures.’’ In terms of where extra time could enable the provides that if an operator cannot meet specifying to whom data should be timely resolution and completion of an the required timeframes, the operator submitted, BSEE agrees that this was investigation and analysis report. For may request an extension to the failure less than clear with respect to those rare cases requiring more time analysis timeframes by submitting a submissions to BSEE, and accordingly than the rule allows, BSEE believes that request to the Chief, OORP and, if modified the proposed rule text to clarify that submissions directed to providing for an extension request is appropriate, BSEE may approve an BSEE should be sent to the Chief, appropriate. BSEE does not, however, extension. Due to the potential for some OORP. With respect to a third party expect these revised timelines to result failures to have broader safety in general delays of the type described designated to receive data, BSEE can implications, it is not reasonable to by the commenter. provide information on who operators We agree with the commenter that it allow the operator to define an open- should submit this data to through a is important for BSEE and the ended period in which to complete the variety of public notices, such as a press manufacturer to acquire and review the investigation. Extension requests will be release or NTL. Not including these equipment failure information to make handled on case-by-case basis to allow specifics in the regulations allows BSEE recommendations to prevent similar consideration of circumstances. In 2017, to change the designated third party failures in the future. BSEE works with only 1.5% of the reported failure without undertaking rulemaking. With the U.S. Department of Transportation’s notifications resulted in an investigation respect to reporting to equipment Bureau of Transportation Statistics and failure analysis that required more manufacturers, it is up to the operator (BTS),29 to ensure technical review of than 120 days to complete. BSEE to find out from the equipment the information provided by submitters. extended the timeframe in the final rule manufacturer to whom the required data The analysis considers potential to reduce administrative burden for and information should be submitted. consequences related to specific those cases where extra time could With respect to the use of a third failures, potential systematic concerns, enable the timely resolution and party to receive data, as previously and any reduction in effective barrier completion of an investigation and discussed, BSEE currently has an operation. When significant safety analysis report. For those rare cases agreement with BTS to receive and concerns are identified, there are requiring more time than the rule process the data through the SafeOCS processes in place to raise awareness in allows, BSEE believes providing for an program. This agreement is consistent a timely manner to prevent similar extension request is appropriate and with the policies of the Confidential failures. Items of lesser potential that such a request may reasonably be Information Protection and Statistical significance are dealt with through expected to address the items Efficiency Act (CIPSEA).30 CIPSEA public reports based on aggregated data. recommended by the commenter. requires that BTS treat and store such Summary of comments: A commenter Summary of comments: A commenter reports confidentially, under strict suggested that the rule include a method asserted that proposed § 250.730(c)(1) criminal and civil penalties for to extend investigations that have been would reduce the clarity, safety, and noncompliance. Information submitted started, but are not complete within the effectiveness of BOP systems by limiting under CIPSEA also is protected from 120 days. This commenter information exchange about equipment release to other government agencies recommended including a requirement failures. The commenter opposed the (including BSEE), from Freedom of for the operator to submit a status Information Act (FOIA) requests and update to BSEE detailing the progress to proposed language because it does not specify who the operator must notify at subpoenas. If the information were to be date, the reasons why the investigation submitted to BSEE, BSEE could only was not completed within the required BSEE or other entities, such as the equipment manufacturer. The protect its confidentiality to the extent timeframe, and an extension period, if allowed by Federal law other than any. The commenter is concerned that commenter also asserted that the use of third parties to receive data and reports CIPSEA. The SafeOCS program was the fixed number of 120 days may result designed to protect the confidentiality in conclusions that do not identify the on behalf of BSEE will make it substantially more difficult for the of information submitted and promote true root cause, thereby ultimately failure reporting without fear of compromising safety. public to acquire those data and reports using the Freedom of Information Act reprisals. BSEE uses this third-party approach for submission of equipment 29 (FOIA). The commenter contends that Operators submit failure information through component failure information in the www.SafeOCS.gov, where it is received and because the focus is on equipment processed by BTS. BSEE identified BTS as the failure, it would be important for interest of promoting the sharing of designee and recommended that SPPE failure technical experts to acquire and review safety data and information, while information should be sent to BTS via protecting sensitive identifying the equipment failure information to www.SafeOCS.gov through a press release issued on information the release of which could October 26, 2016 (https://www.bsee.gov/newsroom/ make recommendations to prevent latest-news/statements-and-releases/press-releases/ similar failures in the future. The bsee-expands-safeocs-program). BSEE and BTS 30 Reports submitted through www.SafeOCS.gov entered into a Memorandum of Understanding commenter supported the 120-day are collected and analyzed by BTS and protected (MOU) that provides for BTS to collect BOP and failure analysis completion date in the from release under the Confidential Information SPPE failure reports. The MOU may be viewed on existing regulations, asserting that this Protection and Statistical Efficiency Act (CIPSEA) BSEE’s website at: https://www.bsee.gov/sites/ timeframe ensures that any needed (44 U.S.C. 101). Annual reports for 2016 and 2017 bsee.gov/files/bsee-bts-mou-08-18-2016_0.pdf. reporting periods for well control regulations are Reporting instructions are on the SafeOCS website equipment changes are quickly available at: https://www.safeocs.gov/wcr_ at: https://www.SafeOCS.gov. identified, and changes can be made at home.htm.

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reduce the incentive to share all of the under § 250.730(c), it provides BSEE recommendations, if they exist, for facts related to an incident. This with a notification that a submission maintenance and repair are important determination was made to protect trade was made and includes the name of the for ensuring the condition of the secrets and proprietary information and company. BSEE may choose to open an equipment remains within the design especially to ensure facts that pertain to investigation at any time when limits. BSEE is not adding safety are not left out of reports due to information received from non-BTS ‘‘remanufacture’’ because this is covered concerns about disclosure under FOIA. sources demonstrates operators are not under ‘‘repair’’. BSEE believes placing this raw data at complying with the requirements. Comments Related to Proposed risk of disclosure under FOIA would However, it is important to note, BSEE § 250.730—Proposed Revisions Reduce reduce operator openness in what is does not receive any information from Operational Requirements for BOPs shared regarding equipment component BTS about a single failure report other failures. For this reason, the Bureau of than the name, submittal date, and Summary of comments: A commenter Transportation Statistics currently reference ID numbers of the report of the asserted that the proposed revisions in houses BSEE’s system of record on this reporting company. § 250.730 would reduce the conditions collection effort. BTS maintains the raw data and entity under which a BOP must function, We agree with the commenter that it information to allow aggregated while increasing the time allowed for is important for technical experts and reporting. BTS also has measures operators to investigate and report on a others to acquire and review the available under CIPSEA whereby a BOP failure. The commenter asserted equipment failure information to make confidentiality officer from BTS may that the proposed revisions would only recommendations to prevent similar communicate with a respondent when require a BOP to be capable of closing failures in the future. BTS engages safety issues of particular concern to and sealing a wellbore ‘‘in the event of subject matter experts to analyze the subject matter experts arise and warrant flow due to a kick,’’ eliminating the reports and prepare public reports that immediate action. Thus far, BSEE has existing language that requires a BOP to are available to all stakeholders. BTS observed a close correlation between the be capable of closing and sealing the has the ability under CIPSEA to have a companies engaged in drilling activity wellbore ‘‘at all times.’’ The commenter confidentiality officer from BTS and those reporting equipment emphasized that there are other communicate with a respondent when component failures. conditions that may necessitate closure safety issues arise of particular concern and sealing besides a kick, such as an to subject matter experts. The BTS Comments Related to Proposed approaching hurricane or a fire or other confidentiality officer may recommend § 250.730(d)—BOP Stack Manufacturing malfunction. This commenter asserted that the submitter of the information Requirements that the proposed change would communicate the safety issue directly Summary of comments: A commenter substantially narrow the conditions with BSEE and the OEM. recommended that BSEE add the phrase under which a BOP would be required In addition, § 250.730(c)(1) requires ‘‘or stack sub-assemblies’’ to the BOP to be capable of closing. that operators follow the failure stack manufacturing requirements under • Response: BSEE disagrees. The reporting procedures in API Standard § 250.730(d). The commenter asserted proposed revisions would not weaken 53, which is incorporated by reference that this change would clarify that the or alter the underlying requirements in BSEE regulations at § 250.198. API rule covers the overall BOP stack and that the BOP system must be able to Standard 53 includes processes for the the component assemblies contained function during all operations. This sharing of equipment failure within the stack. section ensures that the BOP system is information between the manufacturers • Response: BSEE disagrees with this designed to close and seal a well in the and owners of blowout prevention recommendation. The commenter did event of flow from a kick from the well equipment. This would include not provide enough information or because that is representative of the reporting of any malfunction or failure justification to substantiate the most critical and challenging by the equipment owner to the recommended change. Stack sub- circumstances a BOP must address. The equipment manufacturer and the assemblies are part of the BOP stack; operator must verify the ability of the manufacturer’s response to the therefore it is BSEE’s view that they are BOP to function during a non-kick event equipment owner with a timeline for already covered under these through the regular function and failure resolution. requirements. pressure testing as required by final § 250.737. The operator will also still be Comments Related to Proposed Comments Related to Proposed required to obtain independent third- § 250.730(c)—Anonymous Failure § 250.730(b)—Corrective Maintenance party certification that the BOP is Reporting Summary of comments: A commenter designed, tested, and maintained to Summary of comments: One recommended that BSEE remove perform under the maximum commenter expressed concern that the ‘‘maintenance’’ and ‘‘repair’’ from the environmental and operational proposal to allow companies to requirement for the operator to follow conditions anticipated to occur at the anonymously submit the results of original equipment manufacturer (OEM) well under § 250.731. equipment failure investigations recommendations for the BOP systems through a third-party would effectively in § 250.730(b). The commenter Comments Related to Proposed make the failure reporting requirement suggested adding ‘‘remanufacture’’ to § 250.730—Incorporate API Standard 53 voluntary. this requirement. According to the Addendum 1 and API Standard 53, 5th • Response: BSEE disagrees. The commenter, the recommended changes Edition failure reporting is required regardless would ensure consistency with API 53, Summary of comments: A commenter of where and how an operator submits further noting that maintenance is recommended that the incorporation by the data. This revision does not provide covered in § 250.730(a). reference of API Standard 53, Blowout for anonymous failure reporting through • Response: BSEE disagrees with the Prevention Equipment Systems for a designated third party. The failure comment. The OEM designs the Drilling Wells, Fourth Edition, July reporting is not anonymous. Each time equipment according to detailed 2016, should include Addendum 1 of BTS receives a notification of failure specifications. Therefore, the OEM that standard. The commenter also

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noted that the 5th edition of that generally maintain close Comments Related to Proposed standard is being finalized and communications with operators and § 250.730(a)—Request To Incorporate recommended that BSEE consider the drilling contractors, including coming API RP 59 5th edition for incorporation by on location as needed. OEMs develop Summary of comments: A commenter reference to ensure operations on the maintenance procedures through an recommended that BSEE incorporate by OCS are conducted according to the effective communication program reference API Recommended Practice latest edition of the API standard for including practices for sharing 59, Second Edition—Recommended well control systems and are consistent information under API Standard 53 and Practice for Well Control, Section 4.4 in with operations around the world. through notification requirements under § 250.730(a). The commenter asserts that • Response: BSEE reviewed the this final rule. the methodology of API RP 59, section addendum and determined it is The TBT Agreement seeks to avoid 4.4 focuses on one open hole interval of appropriate for incorporation into the unnecessary obstacles to international regulations. The addendum addresses trade, in part by requiring that technical flow, not on the entire open well bore multiple issues that BSEE has had to regulations and conformity assessment interval pertinent to the worst case deal with through departures from procedures be consistent with discharge. This addresses the long- compliance with the incorporated API international standards promulgated by standing, safe well control practice of Standard 53 (without the addendum) international standards developing drilling 10 to 20 feet into a drilling since the development of the 2016 WCR organizations (SDOs). This rule does not break or a prospective hydrocarbon (e.g., section 7.2.3.2.9 Side outlet create a technical barrier to trade interval, then stopping drilling location and section 7.3.13.2.5 fire because it is neutral as to the national operations to ‘‘check for flow’’ as the rating of MUX lines). The inclusion of origin of regulated equipment. The proven method of determining a kick in a well. the addendum to API Standard 53 proposed rule did not, and this final • brings the regulations in line with the rule does not, discriminate in favor of Response: BSEE will evaluate API current latest edition of this standard. U.S.-fabricated equipment. The final RP 59 for possible incorporation by BSEE understands that API is rule is equally applicable to all relevant reference in a future rulemaking. developing a 5th Edition of API equipment, regardless of the Operators should develop appropriate Standard 53, and BSEE will evaluate equipment’s country of origin. control procedures based on specific that document when it is finalized for Accordingly, BSEE’s proposed rule did well and site conditions and accepted possible incorporation into the not, and the final rule does not, create good engineering practices. regulations in a future rulemaking. an unnecessary technical barrier to Comments Related to Proposed trade. Comments Related to Proposed § 250.730—BOP System Requirements § 250.730—Use of OEM Recommended Comments Related to Proposed Summary of comments: A commenter Maintenance Practices § 250.730—Use of Word ‘‘applicable’’ strongly opposed the proposed revisions Summary of comments: A commenter for Applying OEM Recommendations to requirements in §§ 250.730, 250.733, asserted that the OEMs do not have Summary of comments: A commenter and 250.734 regarding the BOP systems. operational experience and the type of asserted that ‘‘applicable’’ is subjective The commenter expressed concern that continuous feedback needed to develop and the proposed rule is not clear about the proposed revisions would allow the effective maintenance practices to who determines if an OEM use of BOPs that cannot close and seal manage assets. The commenter also recommendation is applicable. The a wellbore under the range of conditions asserted that because OEMs do not need commenter was concerned that an encountered, including high-pressure, to worry about rig downtime, they can operator or drilling contractor could high-temperature drilling environments. afford to be conservative. The decide to simply disregard OEM The commenter noted that the existing commenter concluded that this poses a recommendations as not applicable. The language in § 250.730(a) is unambiguous significant risk that the OEM-developed commenter recommended changing the regarding the key capabilities of the maintenance practices would require proposed regulations to state that the BOP system, stating that the BOP system the operator to perform unnecessary operator must follow the OEM is required to be able to close and seal maintenance and repairs. The recommendations unless BSEE directs the wellbore at all times. The commenter also asserted that this them otherwise or they receive other commenter asserted that the proposed practice could result in OEMs directions in writing from the OEM. rule would weaken this language by leveraging this as an aftermarket • Response: BSEE disagrees. As BSEE specifying only certain circumstances in revenue generator, and this approach explained in the proposed rule which the BOP system must function, presents a technical barrier to trade and preamble, and included in the final i.e., only in the event of flow due to a causes a conflict of interest. The § 250.730(b) clarifies that BSEE expects kick. commenter generally challenged certain the use of ‘‘applicable’’ OEM • Response: BSEE disagrees. The OEM maintenance recommendations, recommendations for the design, revisions do not weaken or alter the based on proven field results. fabrication, maintenance, and repair of underlying requirement that the BOP • Response: This regulation does not BOP systems, as well as personnel system must be able to function during require the OEM to perform the training in their use. The proposed all operations. This section specifically maintenance or train the personnel revision to include ‘‘applicable’’ is ensures that the BOP system is designed performing maintenance. With regard to necessary because some OEMs may not to close and seal a well in the event of the OEM recommendations, operators have specific recommendations for flow from a kick from the well because are required to comply only with every item required by this paragraph, that is representative of the most critical applicable OEM recommendations to and operators are not required to follow and challenging circumstances a BOP the extent that they exist. If an operator recommendations that are not must address. The operator is required has a specific issue with OEM applicable to the relevant equipment or to verify the ability of the BOP to recommendations, BSEE may recognize operation. BSEE expects operators to operate in a non-kick event through other alternative procedures. OEMs of follow OEM recommendations to the regular function and pressure testing offshore operational equipment extent relevant recommendations exist. required by § 250.737. The regulation

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still requires that the operator obtain Summary of Comments of MASP already takes into account independent third-party certification Comments Related to Proposed depth, whether at surface or subsea. that the BOP is designed, tested, and § 250.731(a)(5)—Regulator Set Points BSEE also disagrees with the maintained to perform under the recommendation to revise Summary of comments: Multiple maximum environmental and § 250.732(a)(3) and remove commenters asserted that there is f operational conditions anticipated to § 250.731(c)(1) because the requirements difference between sealing and closing occur at the well under § 250.731. in § 250.732 are utilized to provide in this context and requested supporting documentation for the What information must I submit for BOP clarification on the intent of the verifications required in § 250.731. systems and system components? regulation. Commenters expressed (§ 250.731) concerns with BSEE’s explanation and What are the independent third party reference to FHÈ Standard 53 to requirements for BOP systems and This section of the existing adequately clarify the intent. system components? (§ 250.732) regulations details the information that Commenters also requested justification This section of the existing must be included in the applicable for the removal of the word ‘‘effective’’. regulations describes the criteria for an • Response: BSEE does not agree with BSEE permit (e.g., APD or APM) for any organization to become a BAVO, and the comments. Paragraph (a)(5) operation that uses a BOP. The required identifies the circumstances in which an principally identifies information that information includes a complete operator must use a BAVO to satisfy description of the BOP system and must be submitted to BSEE for BOP systems and system components. certification, verification, or reporting system components, schematic requirements. drawings, and verifications Subsequent sections regulate operational and equipment demonstrating that the BOP is fit for Summary of Proposed Revisions requirements for these systems and service on the applicable well. components. BSEE used the term BSEE proposed to revise this section by removing all references to a BAVO Summary of Proposed Revisions ‘‘close’’ because the regulator settings are not changed throughout operations. and, where appropriate, replacing those BSEE proposed to revise the The requirements of paragraph (a)(5) references with an independent third information submitted to BSEE pursuant only relate to the regulator set points, party. This change would also be made to paragraph (a)(5) by replacing ‘‘to and do not alter any of the ram in appropriate locations throughout achieve an effective seal of each ram operational requirements contained in Subpart G where BAVOs are referenced. BOP’’ with ‘‘to close each ram BOP.’’ §§ 250.733 and 250.734 for surface and Independent third parties have been This revision would affect information subsea BOPs, respectively. Some of the utilized as a long-standing industry practice to carry out certifications and submitted to BSEE and would more rams do not seal, such as the casing verifications similar to those that a accurately align with the control system shear ram, and BSEE utilizes this data in the permit application to evaluate BAVO would perform. Independent and regulator control setting third parties have been performing the requirements of API Standard 53. ram closing and sealing capabilities. The word ‘‘effective’’ in this context is functions identified for BAVOs since BSEE also proposed to revise this not necessary and does not provide any promulgation of the 2016 WCR. Based section by removing the BAVO supplemental regulatory standard. on BSEE’s determination to remove the verification requirements in existing use of BAVOs, as previously discussed paragraphs (d) and (f). The BAVO Comments Related to Proposed under section IV of this final rule verifications required by existing § 250.731(c)—Applicability to Coiled preamble, BSEE revised the section paragraphs (d)(1) and (d)(3) were Tubing heading to reflect the change from a redundant to the verifications required Summary of comments: A commenter BAVO to an independent third party, by paragraph (c). However, the requested clarification about the removed paragraphs (a)(1) and (a)(3), verifications required by current applicability of paragraph (c) to coiled and replaced all remaining BAVO paragraph (d)(2) are still necessary and tubing. The commenter also asserted references with references to an BSEE therefore proposed to add them to that § 250.731(c)(1) can be interpreted to independent third party. The revised paragraph (c). BSEE proposed to mean that a shear test at depth is independent third-party qualifications remove paragraph (f) because the Report required. In reality, the depth in existing paragraph (a)(2) remain in this section, but would now be in that is the subject of that paragraph adjustment is a calculation based on proposed paragraph (b). would be eliminated by the proposed different densities of hydraulic fluid revisions to § 250.732(d). The and seawater. The commenter, BSEE also proposed to remove the independent third-party verifications therefore, recommended adding the requirements in current paragraph (b)(1)(iv) to verify that testing was under paragraph (c) help ensure that the words ‘‘and depth’’ to § 250.732(a)(3) so performed on the outermost edges of the BOP is fit for service at each specific that the provision states, ‘‘Include shearing and sealing pressures for all shearing blades of the shear ram well. BSEE also proposed to revise this pipe to be used in the well including positioning mechanism. This proposed section by replacing references to a correction for MASP and depth.’’ The change would align the verification BAVO with references to an commenter also suggested removing requirements with BSEE’s proposal to independent third party that meets the § 250.731(c)(1). remove the centering mechanism requirements of § 250.732(b). • Response: Section 250.731(c) requirement from existing Summary of Final Rule Revisions applies to coiled tubing; however, § 250.734(a)(16) that is the subject of § 250.731(c)(4) is only applicable to the this verification. BSEE also proposed to BSEE received and considered specified situations (subsea BOP, a BOP remove from existing paragraph comments on the proposed revisions in an HPHT environment, or a surface (b)(1)(i)—a vestigial reference to a and includes the proposed language in BOP on a floating facility). BSEE compliance deadline that has already the final rule without change. disagrees with the suggestion to add the passed. This is merely an administrative term ‘‘and depth’’ because the definition revision.

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BSEE also proposed to revise existing referenced regulation. BSEE is retaining paragraph to reflect the commenter’s paragraph (b)(2)(ii) by changing the in § 250.734(a)(16)(i) the centering recommendation, except that we have testing facilities’ verification pressure requirement for shearing, but not used the phrase ‘‘prior to opening the testing hold time demonstration from 30 requiring that it utilize a positioning component.’’ BSEE revised this minutes to 5 minutes. This revision mechanism. BSEE is making paragraph to help ensure that the testing would allow the use of previously corresponding edits to this section to is done in one continuous action to established historical data to help help ensure the shearing verifications better simulate sealing after shearing in demonstrate the blind shear ram and certifications align with the revised real world well control applications. functionality in the applicable permit shearing requirements. This application. requirement helps verify that the shear Comments Related to Proposed BSEE proposed to make a minor rams will shear along any point of the § 250.732(a)(2)(ii)—Lab 30 Minute vs 5 revision to paragraph (c) to update an shearing surface. Minute Pressure Hold Time incorrect citation—the referenced BSEE is revising proposed paragraph definition of HPHT environments is (a)(2) to clarify that the pressure Summary of comments: Multiple found in § 250.804(b), rather than integrity test applies to sealing commenters oppose the proposed § 250.807(b), as stated in the existing components. A pressure integrity test replacement of the existing regulations. for a non-sealing component is not requirements in § 250.732(b)(2)(ii) of f BSEE proposed to remove the practicable or feasible. BSEE is also 30-minute hold time for f verification Mechanical Integrity Assessment (MIA) revising proposed paragraph (a)(2)(i) to pressure test with the proposed report requirements from paragraph (d). indicate that testing is conducted after § 250.732(a)(2)(ii) f 5-minute hold time. The MIA report was required as a the shearing is completed and prior to The commenters asserted that f 30- function of the use of BAVOs. BSEE opening. BSEE made this revision based minute test is an established practice determined that an MIA report is no on comments to provide clarity for according to various standards longer necessary because BSEE defining how the verification is organizations, and therefore the proposed to eliminate the use of BAVOs conducted. BSEE revised this section to commenters see no reason for the and the information contained within help ensure that the testing is change. The commenters also asserted the MIA report is redundant with the accomplished in one continuous action that BSEE does not provide any analysis BOP equipment capability verifications to better simulate sealing after shearing required by § 250.731. in real-world well control applications. or data to support this change and should make any data available. Summary of Final Rule Revisions Summary of Comments • Response: BSEE does not agree that BSEE received and considered Comments Related to Proposed holding a constant pressure for 30 comments on the proposed revisions, § 250.732(a)(1)—Definition of Drill Pipe minutes is necessary to demonstrate and includes in the final rule most of Summary of comments: A commenter sealing capabilities. Based on BSEE the proposed language without change, asserted that the use of the word ‘‘drill experience since the promulgation of except for the following revisions. BSEE pipe’’ throughout § 250.732(a) is not the 2016 WCR and a review of is revising proposed paragraphs (a)(1)(i) complete. The commenter recommends longstanding historical data and (iii) and (iv) (final paragraphs that BSEE include terms, such as coiled (a)(1)(i) and (iii) and (v)) by replacing demonstrating successful application of tubing, shear subs, and landing strings ‘‘drill pipe’’ with ‘‘tubular body of any 5 minute hold time testing, BSEE in this section for completeness. concluded that 30 minute testing is drill pipe (excluding tool joints, bottom- • Response: BSEE agrees with the unnecessary. BSEE is unaware of hole tools, and bottom hole assemblies commenter and has revised proposed such as heavy-weight pipe or collars), standards referencing a standardized 30- paragraphs (a)(1)(i), (iii), and (v) by minute lab test pressure holding time workstring, tubing and associated replacing ‘‘drill pipe’’ with ‘‘tubular for BOP shearing verification. However, exterior control lines and any electric-, body of any drill pipe (excluding tool BSEE is aware of an industry standard, wire-, and slick-line to be used in the joints, bottom-hole tools, and bottom well.’’ BSEE made these revisions to hole assemblies such as heavy-weight API 16TR1, Shear Ram Performance provide consistency with the shearing pipe or collars), workstring, tubing and Test Protocol, that includes field requirements of §§ 250.733(a)(1) and associated exterior control lines and any performance testing and specifies a 5 250.734(a)(1)(ii). This clarification electric-, wire-, and slick-line to be used minute pressure hold time after shearing would help ensure that the shear testing in the well.’’ These revisions make these pipe. BSEE reviewed the publicly applies to the required equipment that testing requirements consistent with the available incident data on the BSEE needs to be shearable. This revision shearing requirements of website to try to identify any past does not add new equipment required §§ 250.733(a)(1) and 734(a)(1)(ii). This incidents involving failure of equipment for shear testing, but instead clarifies clarification will help ensure that the after successfully sealing in a well, but BSEE’s established practice. shear testing applies to the required was unable to identify any such BSEE also is re-designating proposed equipment that needs to be shearable. incidents. BSEE is also unaware of any paragraphs (a)(1)(iv) and (a)(1)(v) as data showing lab failures during the (a)(1)(v) and (a)(1)(vi) respectively, and Comments Related to Proposed hold times between the 30-minute and retaining (in large part) existing § 250.732(a)(2)(i)—Pressure Integrity 5-minute intervals. BSEE also reviewed paragraph (b)(1)(iv) as new (a)(1)(iv) to Testing Procedures permits issued prior to 2010 to verify ensure that testing is performed on the Summary of comments: A commenter the historic lab shear and seal data hold outermost edges of the shearing blades recommended that BSEE remove of the shear ram. This retention was ‘‘immediately’’ and add ‘‘after the times. Of the permits reviewed, pressure based on comments, and modifies the shearing is completed and prior to hold times did not indicate any failures existing text of the relevant provision opening the rams’’ to provide clarity to after the 5-minute mark. BSEE uses this only to remove reference to the shear the pressure integrity testing. 5 minute testing data to verify that the ram positioning mechanism that is no • Response: BSEE agrees with the component will provide a seal when longer required under the cross- commenter and has revised this activated.

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Comments Related to Proposed Comments Related to Proposed decommissioning operations where § 250.732—BAVOs § 250.732—MIA Report Content estimated well pressures are low. The Summary of comments: A commenter provisions in this proposed paragraph Summary of comments: A commenter were inadvertently removed from the expressed concerns about the removal of suggested that specific items in the MIA report are not redundant of other regulations through the 2016 WCR, and the BAVO and MIA report. A are consolidated from §§ 250.516, requirements and should be included in commenter recommended that in the 250.616, and 250.1706 of the regulations the regulations (e.g., existing absence of the BAVO and MIA report as they existed before the 2016 WCR. §§ 250.732(d)(5), 250.732(d)(8), requirements, it is critical that BSEE BSEE proposed minor revisions to the 250.732(d)(9), 250.732(d)(11), and ensure strict compliance with all third- original language to conform to the 250.732(d)(13)). applicable operations covered under party certification requirements, • Response: BSEE disagrees with the revised Subpart G and to update cross- including the BOP equipment capability suggested changes. The MIA report referenced citations. verifications required by § 250.731. content is not only redundant of • Response: BSEE agrees with the § 250.731, but also of other independent Summary of Final Rule Revisions commenter that it is important to ensure third-party reviews, certifications, and BSEE received and considered compliance with independent third- verifications required in §§ 250.734, comments on the proposed revisions party certification and verification 250.738, and 250.739, as well as and includes in the final rule most of requirements. In final § 250.731(c), personnel operational requirements in the proposed language without change, BSEE requires certifications by an existing § 250.710, What instructions except for the following revisions. BSEE independent third party, in lieu of a must be given to personnel engaged in is revising paragraph (a)(1) by adding: BAVO, that include verification, for a well operations? among others. It is not ‘‘Prior to April 29, 2021, if your blind subsea BOP, a BOP in an HPHT necessary to retain the identified shear rams are unable to cut any environment as defined in § 250.804(b), elements of the MIA report. electric-, wire-, or slick-line under or a surface BOP on a floating facility, What are the requirements for a surface MASP as defined for the operation and that the BOP has not been compromised BOP stack? (§ 250.733) seal the wellbore, you must use an or damaged from previous service. BSEE alternative cutting device capable of expects full compliance with these This section of the existing shearing the lines before closing the regulations describes the capability, certification requirements, regardless of BOP. This device must be available on type, and number of BOPs required who is performing the certification. The the rig floor during operations that when an operator uses a surface BOP requirements of § 250.731 adequately require their use.’’ BSEE is retaining the stack for drilling or for conducting cover the substance of the matters alternative cutting device requirements, operations. This section also describes similar to those found in existing previously addressed in the MIA report, the requirements for the risers and BOP and BSEE expects that independent regulations, based on comments. As stack when a surface BOP is used on a many commenters stated, BSEE is aware third parties will capably perform the floating production facility. that not all OEMs currently offer same functions previously assigned to Summary of Proposed Revisions wireline cutting capability for all BOP BAVOs, as they have since sizes and rated working pressures. This promulgation of the 2016 WCR. BSEE proposed to revise paragraph addition is necessary to ensure that a Summary of comments: Multiple (a)(1) by removing the reference to an device capable of cutting wire is commenters oppose the proposed extended time for compliance with available to help ensure sealing revisions to remove the BAVO, and exterior control line shearing efficiency. BSEE is limiting this recommend that the companies that requirements under the 2016 WCR, requirement to the window prior to operators use to assess blowout which has elapsed and no longer April 29, 2021, because, after that point, preventers should continue to be BSEE- warrants reference in the regulations. shear rams must be capable of shearing certified. The commenters assert that BSEE also proposed to remove the wire. Since the publication of the this is important to ensure that reviews requirement to have an alternative proposed rule, BSEE has discussed of important equipment are objective cutting device used for shearing electric-, these shearing requirements with and standardized through the use of wire-, or slick-line if your blind shear relevant OEMs and has determined that BSEE-certification of third-parties. rams are unable to cut and seal under the technology currently exists, but is • maximum anticipated surface pressure not yet available for commercial off-the- Response: BSEE disagrees that (MASP). shelf use. BSEE needs to certify the parties used BSEE also proposed to revise BSEE is also revising paragraph (b)(1) to assess blowout preventers. BSEE is paragraph (b)(1) by extending the to clarify that, after April 29, 2021, maintaining rigorous qualification compliance date from April 29, 2019, to operators must follow the BOP requirements for independent third April 29, 2021, to correspond with the requirements in § 250.734(a)(1) for new parties that ensure their professional same requirements for subsea BOP floating production facilities installed qualification and independence. The stacks. This revision would align the with a surface BOP. These revisions are independent third party must be a dual shear ram requirements for surface based on comments seeking clarity. technical classification society, or a BOPs installed on floating facilities and Since the publication of the 2016 WCR, licensed professional engineering firm, subsea BOPs. Aligning these dates will including in the comments for this or a registered professional engineer reduce confusion between the different rulemaking, stakeholders have capable of providing the required effective dates of the similar expressed confusion about the certifications and verifications. If BSEE requirements for surface BOPs used on requirements in this section that becomes aware of any performance floating facilities and subsea BOPs. reference § 250.734 regarding dual shear issues with an independent third party, BSEE proposed to add new paragraph rams, which do not take effect until BSEE has options for addressing the (e) to clarify the minimum requirements 2021. BSEE is making the compliance issues (e.g., verifications through the of a surface BOP system for well- date of April 29, 2021 the same for permitting process). completion, workover, and §§ 250.733(b)(1) and 250.734(a)(1) to

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avoid confusion. This will apply only to pertaining to 5,000 psi (5K) systems and which the shear rams must be capable new floating production facilities with a API Standard 53. The commenter of shearing wire. surface BOP, and the expected number recommended that BSEE align those Comments Related to Proposed of those types of facilities is minimal. regulations with API Standard 53 to §§ 250.733 and 250.734—Dual Blind avoid confusion. The intent of the proposed rule was for Shear Rams the requirements to apply to new • Response: BSEE agrees that there facilities installed after 2021. These are differences between the regulations Summary of comments: Multiple regulations do not apply to existing and API Standard 53; furthermore, BSEE commenters recommended that BSEE facilities, even if they are redeployed at does not agree with using the API require dual blind shear rams. The another location because of several Standard 53 options for stack commenters assert that blind shear rams issues, including, but not limited to, arrangements for 5K systems. Paragraph provide an extra layer of safety because clearance and weight issues. (e) applies to well-completion, they are designed to be capable of BSEE is revising proposed paragraph workover, and decommissioning sealing and shearing the drill pipe operations. during active drilling. (e)(4) to clarify that the drill string • should include the drill pipe, work Response: BSEE disagrees with the Comments Related to Proposed recommendation to require dual blind string, or tubing, depending on the § 250.733(b)(1)—Floating Facilities operation. Based on BSEE’s review of shear rams. Other shearing rams have the proposed rule and submitted Summary of comments: Multiple other shearing utility besides shearing comments, this clarification will help commenters assert that paragraph (b)(1) the listed components in §§ 250.733 and ensure the set of pipe rams can seal is applicable only to new floating 250.734 (e.g., the casing shear ram is around drill pipe, work string, or tubing. production facilities. still necessary to shear casing, which • Response: BSEE agrees with the When conducting well completions, the BSR cannot shear). The current commenters and has revised proposed workover, and decommissioning regulations provide the operators paragraph (b)(1) to clarify its operations, there are many types of flexibility for how they utilize the BOP applicability only to new floating equipment that are run in the hole system and components for operations, production facilities installed after April through the BOP. This requirement while still requiring all critical shearing 29, 2021, that use a surface BOP. reflects longstanding and current BSEE capabilities. This final rule does not practice. This revision does not change Comments Related to Proposed change the requirement for operators to or affect an operator’s burden, as it is § 250.733(a)(1)—Alternative Cutting utilize dual shear rams by 2021, and currently reflected in operational Device does not require both shear rams to seal. practice and does not add new Summary of comments: Multiple What are the requirements for a subsea equipment required for shear testing. commenters oppose removing the BOP system? (§ 250.734) The revision simply clarifies current, alternative cutting device requirement, This section of the existing longstanding BSEE practice. as there are no qualified OEM blind regulations identifies the requirements Summary of Comments shear rams for certain BOPs. of a subsea BOP system used for drilling Commenters assert that the alternative or to conduct operations. The section Comments Related to Proposed cutting device is considered necessary describes the requirements for subsea § 250.733—Compliance Dates to meet the requirement and considered BOP system capabilities, as well as the Summary of comments: A commenter part of the BOP system; therefore, BSEE functionality, type, and quantity of suggests that it would be preferable to must allow the alternative cutting required equipment (e.g., BOPs, pod apply the April 2019 deadline for device. A commenter also suggested that control systems, accumulator capacity, surface BOPs to both subsea and surface BSEE should allow the use of the ROVs, autoshear and deadman, acoustic BOPs. alternative cutting device prior to April control system, and management and • Response: BSEE disagrees that the 29, 2021, and, after this date, require operating protocols). This section also compliance dates for subsea BOP dual that the shearing rams be capable of describes the actions that an operator shear ram requirements should be 2019, shearing the wire. must take if it suspends operations to because there would not be sufficient • Response: BSEE agrees with the repair the subsea BOP system. time to install and implement the commenters and has added back in the required equipment modifications. provisions related to the alternative Summary of Proposed Revisions BSEE understands that there is potential cutting device to paragraph (a)(1). BSEE BSEE proposed to revise paragraph confusion about the compliance date is aware that not all OEMs currently (a)(1)(ii) by providing that a applicable to this section’s reference to offer wireline cutting capability for all ‘‘combination of the’’ shear rams must the dual shear ram requirements of BOP sizes and rated working pressures. be capable of shearing all the items § 250.734, because those requirements As encouraged by Congress 31 to ensure specified in the paragraph. This revision do not take effect until 2021. Therefore, that offshore operations promote safety would have aligned the functionality of BSEE is making the compliance dates of and protect the environment in a the BOP system with API Standard 53 April 29, 2021 the same for technically feasible manner, this and proposed § 250.730(a). BSEE §§ 250.733(b)(1) and 250.734(a)(1) to addition is necessary to ensure that a explained that certain casing shears avoid confusion. This requirement only device capable of cutting wire is still have difficulty shearing electric-, applies to newly installed floating available to ensure sealing efficiency. wire-, or slick-line, while certain blind production facilities that use a surface Consistent with an option discussed in shear rams have difficulties shearing BOP. the proposed rule to extend the larger casing sizes. This proposed compliance date, BSEE is limiting the revision would have provided the Comments Related to Proposed timeframe for allowing the alternative operators flexibility in designing the § 250.733(e)—5K Systems cutting device. The cutting device may BOP system and components for Summary of comments: A commenter only be used until April 29, 2021, after operations while still ensuring all asserted that there are differences and critical shearing capabilities. BSEE confusion between the regulations 31 See n. 10, supra. further proposed to revise paragraph

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(a)(1)(ii) by removing references to the intervention after the well has already BOP or LMRP upon relatch of the BOP extended compliance dates for certain been secured. However, it would not or LMRP to the well. BSEE proposed shearing requirements under the 2016 affect or decrease the ROV’s ability to these revisions to codify longstanding WCR, which have passed and no longer close the required components for well BSEE policy and to clarify testing warrant reference in the regulations. control purposes. During a well control requirements when an operator has BSEE proposed to revise the event, the most critical functions would returned to the well location and accumulator requirements in paragraph be to close the BOP components and relatched the BOP or LMRP to the well. (a)(3) to better align with API Standard seal the well. These tests would help confirm that the 53. BSEE also proposed to remove the BSEE also proposed to revise BOP or LMRP is properly functional reference to the subsea location of the paragraph (a)(4) by requiring the ROV to prior to resuming operations after the accumulator capacity. BSEE function the appropriate BOP BOP or LMRP is removed. understands that the accumulator component within the required system works together with the surface response time contained in API Summary of Final Rule Revisions and subsea accumulator capacity to Standard 53. BSEE proposed to revise BSEE received and considered achieve full functionality, and BSEE this paragraph not only to better align it comments on the proposed revisions proposed that it would be unnecessary with API Standard 53, but also to and includes most of the proposed for this provision to identify only subsea account for recent technological language in the final rule without requirements when the entire system is advancements in ROV capabilities to change, except for the following covered under API Standard 53. meet the appropriate BOP closing times. revisions. BSEE proposed to revise paragraph BSEE is aware that operators currently BSEE is not finalizing the proposed (a)(3)(i) by clarifying that the use high flow rate ROVs to meet the revisions to paragraph (a)(1)(ii) and is accumulator capacity must be sufficient BOP component closing times of API keeping many of the existing to close each required shear ram, ram Standard 53. requirements, except for the references locks, and one pipe ram and to BSEE proposed to incorporate the to the now-past compliance date from disconnect the LMRP. During a well latest edition (i.e., the 2nd edition) of the 2016 WCR. This change from the control event, the most critical functions API RP 17H in proposed paragraph proposed rule is based on BSEE’s would be to close the BOP components (a)(4). BSEE explained that there is a consideration of comments received and and seal the well. conflict between the ANSI/API RP 17H on BSEE’s understanding concerning BSEE proposed to revise paragraph 1st edition, as incorporated by reference the importance of shearing redundancy. (a)(3)(ii) to clarify that the accumulator in the 2016 WCR, and the API Standard It is also based on BSEE’s recognition capacity must have the capability to 53 ROV requirements. The 2nd edition that the proposed language would have perform the ROV functions within the of API RP 17H eliminates the conflict permitted reliance on a ‘‘combination’’ required times specified in API with API Standard 53. By incorporating of shear rams, which would have Standard 53 using the ROVs or flying by reference the 2nd edition of API RP created some potential ambiguity leads. These revisions were proposed to 17H, BSEE would ensure that the regarding the number of rams subject to better align this section with API appropriate methods are utilized to this shearing requirement. Standard 53, and to account for comply with the API Standard 53 ROV BSEE revised final paragraph technological advancements in ROV closure timeframe of 45 seconds. (a)(3)(iii) by removing the extended capabilities to meet the appropriate BOP BSEE proposed to revise paragraph compliance date and clarifying that the closing times. (a)(6)(iv) by clarifying that the accumulator bottles for autoshear and BSEE proposed to revise paragraph autoshear/deadman functions must be deadman must be located subsea. Based (a)(3)(iii) by removing the word able to close, at a minimum, two shear on comments received, BSEE is ‘‘dedicated’’ before bottles, thus rams in sequence, but do not need to removing the existing compliance date allowing bottles to be shared among operate every emergency function. of April 29, 2021, for this provision emergency and secondary control Closing two shear rams in sequence may because an extension of time is no system functions to secure the wellbore. not be advantageous for certain longer necessary due to the current This revision would further align the Emergency Disconnect Sequence (EDS) operational abilities of the accumulator accumulator capacity requirements with functions, as discussed in the proposed systems. The autoshear/deadman API Standard 53, account for the rule (83 FR 22140). systems are functions not controlled by appropriate number of accumulator BSEE proposed to revise paragraph surface personnel and are essentially bottles on the subsea BOP stack, help (a)(16) by removing references to the considered failsafe. The bottles need to ensure that the regulatory requirements centering mechanism and the ability to be located subsea to ensure there is do not exceed the operational or mitigate compression of the pipe enough fluid and pressure to operate the mechanical design limits of the between the shear rams in paragraphs associated respective functions. BSEE wellhead and BOP systems, and help (a)(16)(i) and (ii), respectively. Many of revised final paragraph (a)(4) by minimize risks associated with the shear ram designs have improved clarifying that the operator must have approaching those design limits. the shearing capabilities to help ensure the ROV intervention capability to close BSEE also proposed to revise the shearing is conducted on the the identified BOP components. This paragraph (a)(4) by removing the word appropriate shearing area of the shear revision is based on comments received ‘‘opening’’ and adding references to the blades. and will help ensure that the BOP ROV function response times contained BSEE proposed to revise paragraph components can be properly functioned, in API Standard 53. After publication of (b)(1) by replacing the BAVO references if necessary, through the use of an ROV the 2016 WCR, the API Standard 53 with references to an independent third hot stab. BSEE emphasizes that the committee clarified that standard’s party. response times are a critical function of definition of ‘‘operate,’’ with respect to BSEE also proposed to revise the ROV capabilities; BSEE does not critical functions, included only the paragraph (b)(2), redesignate existing want to limit the options available to ‘‘close’’ function and not the ‘‘open’’ paragraph (b)(3) as (b)(4), and add new function the required BOP components. function. Removal of the ROV ‘‘open’’ paragraph (b)(3) in order to include The use of flying leads, a Subsea function could limit the ability for well provisions for testing the applicable Accumulator Module (SAM) unit, or a

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high flow ROV can all meet the required original centering mechanism the existing regulations. BSEE’s analysis component closing time. This revision requirement. is set forth in further detail above at is consistent with a BSEE Q and A BSEE is also revising paragraph (b)(1) Section III.B.3. BSEE may consider posted on BSEE’s website at https:// to require operators to submit a revised possible revisions to this provision in www.bsee.gov/guidance-and- permit with a written statement from an future rulemakings. independent third party documenting regulations/regulations/well-control- Comments Related to Proposed the BOP system repairs and certifying rule. § 250.734(a)(3)(iii)—Compliance Date that the previous certification, required BSEE also revised paragraph (a)(6)(iv) for Shared Accumulator Bottles by adding ‘‘and an EDS mode’’ after in § 250.731(c), remains valid. This revision is necessary for consistency Summary of comments: A commenter ‘‘functions.’’ This revision is based on questioned whether the reference to the BSEE’s consideration of comments and with similar requirements and revisions based on BSEE’s consideration of April 29, 2021, date is necessary if there is intended to clarify that an EDS mode comments received on proposed is no longer a requirement to have must be able to shear in an emergency § 250.720. This revision will provide dedicated bottles in the accumulator situation. This is also consistent with BSEE with additional assurance that the system. guidance provided in the BSEE Q and • related equipment is fit for service upon Response: BSEE agrees with the As posted on BSEE’s website at https:// relatch of the BOP to the well, and will commenter and removed the reference www.bsee.gov/guidance-and- reflect current BSEE practice. The type to the compliance date of April 29, 2021 regulations/regulations/well-control- of information required within this new from final § 250.734(a)(3)(iii). BSEE is rule. submittal is similar to the type of removing the compliance date because Based on consideration of comments, information operators submit with their no extension of time is necessary due to BSEE is revising paragraph (a)(6)(v) to original required BSEE permits. This the current operational capabilities of retain a modified version of the existing revision helps provide assurance that the accumulator systems. requirement that the sequencing must there is a current certification of the Comments Related to Proposed allow a sufficient delay when closing BOP and provides consistent § 250.734(a)(6)(v)—Shearing Risk two shear rams in order to provide documentation of recertification. BSEE Assessment maximum sealing efficiency. Due to the includes the proposed language for Summary of comments: A commenter various BOP configurations across paragraphs (b)(2) and (3) in the final suggested that a risk assessment should industry, BSEE wants to provide clarity rule without change. about how the BOP systems should be performed to ensure the fish of the function properly to achieve necessary Summary of Comments sheared tubular is clear of the blind ram shearing and sealing during a well Comments Related to Proposed while it is trying to close. For example, control event. § 250.734—(Dual Shear Rams) the commenter asserted, if the drill pipe was in compression and the sequence Based on consideration of comments Summary of comments: Numerous was casing shear ram (CSR) then BSR, received, BSEE is revising paragraph commenters opposed the proposed the BSR would not be closing on an (a)(16)(i) to preserve a modified version elimination of the existing requirement open hole due to fact that it must be of the existing requirement for operators that both shear rams be capable of located above the CSR. The commenter to have the capability to position the shearing certain equipment in the hole also requested clarification that, for entire pipe completely within the area and the proposal to replace that emergency functions, no additional of the shearing blade. This capability requirement with a requirement that a steps can be taken (such as lifting the cannot be another ram BOP or annular combination of shear rams be capable of drill pipe, hanging off on pipe rams, preventer, but these may be used during shearing the equipment. The etc.). a planned shear. BSEE recognizes that commenters asserted that this proposed • Response: BSEE does not agree with the technology exists to help ensure the change would weaken the regulations the suggestion that a risk assessment pipe is positioned within the shear and negatively impact safety because it should be required for shearing surface to optimize shearing would not provide for a fully redundant procedures. However, an operator may capabilities. BSEE agrees with some shear ram as a backup. The commenters use a risk assessment to help identify commenters that, even though this also asserted that the proposed revision the actions by personnel required in the technology exists, the proposed rule’s would not account for situations in well control plan in accordance with wholesale removal of the positioning which one of the shear rams § 250.710, What instructions must be requirement did not specifically require malfunctions. One of these commenters given to personnel engaged in well the use of such technology. BSEE is requested an explanation from BSEE as operations? The regulations also require restoring the requirement to have the to why requiring only one shear ram to that the well control plan contain capability to position the pipe within seal under MASP is acceptable. Another specific procedures regarding how the shearing blade; however, BSEE does commenter suggested that the operators would seal the wellbore and not require this to be achieved with a regulations should prescribe a minimum shear pipe, including what to do when separate mechanism and allows use of design basis capability for shear rams, non-shearables are located across a BSR. the shear ram. As encouraged by along with a clear date for compliance. Summary of comments: A commenter Congress 32 to ensure that offshore • Response: BSEE agrees with the suggested adding a requirement that a operations promote safety and protect comments about the utility of redundant single shear ram, or a combination of the environment in a technically shear rams and is revising the proposed shear rams, must be capable of feasible manner, BSEE does not want to requirement in § 250.734(a)(1)(ii) that a performing the shearing tasks. limit the use of improved technological ‘‘combination of the shear rams must be • Response: BSEE does not agree with advancements in shear blade designs. capable of . . .’’ to preserve in the final the suggested revision. BSEE is keeping BSEE retained the compliance date of rule the existing requirement that the existing provision in May 1, 2023, associated with the ‘‘[b]oth shear rams must be capable of § 250.734(a)(1)(ii) that requires both . . . .’’ This revision will keep that shear rams to be capable of shearing the 32 See n. 10, supra. portion of paragraph (a)(1)(ii) as it is in specified components. The suggested

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revisions would not support a fully requirement of the 2016 WCR, because of emergency functions should be redundant shear ram in the event one that requirement is not currently in developed by the operator based on shear ram is unable to function. BSEE effect. One commenter agrees that a safety considerations and an operational may evaluate revisions to this provision centering mechanism is not necessary, risk assessment. The EDS mode is a in future rulemakings. but asserts that there should be a separate type of emergency function requirement for the capability to shear from the autoshear/deadman. EDS is a Comments Related to Proposed the tubular in any position in the function that is manually initiated and § 250.734—Centering Pipe While wellbore. operated by rig personnel and involves Shearing • Response: BSEE agrees with the a controlled disconnect. Summary of comments: Several comments about the importance of Summary of comments: Multiple commenters supported removing the requiring pipe centering capabilities, commenters support the requirement requirement to have a centering and is retaining the requirement that that the autoshear/deadman systems mechanism to center the drill pipe prior operators have the capability to position close, at a minimum, two shear rams in to shearing. Those same commenters, the pipe within the shearing blade. sequence. A commenter proposed to however, disagreed with the need for However, BSEE will not find it add that: The sequence should allow a prescriptive design requirements for the necessary for this to be achieved with a sufficient delay to complete the shearing shear ram, since those requirements are separate mechanism and will allow this function before sealing and that a risk already adequately addressed in ANSI/ capability to be established with the assessment should be performed to API Spec. 16A 4th Edition— shear ram (e.g., shear ram blade design). ensure no conditions exist where the Specification for Drill-through BSEE recognizes the technology exists sealing rams would be expected to shear Equipment. to help ensure the pipe is positioned after the non-sealing ram shears, and no • Response: BSEE disagrees in part within the shear surface to optimize additional procedures, such as lifting and agrees in part. BSEE is retaining the shearing capabilities. The proposed the drill pipe, can be performed for requirement that operators have the rule, however, did not specifically emergency systems. capability to position the pipe within require the use of such centering • Response: BSEE has revised the shearing blade; however, BSEE does technology. As encouraged by paragraph (a)(6)(v) to retain a modified not require this to be achieved with a Congress 34 to ensure that offshore version of the existing requirement that separate mechanism and will allow this operations promote safety and protect the sequencing must allow a sufficient capability to be established with the the environment in a technically delay when closing two shear rams in shear ram. BSEE recognizes that the feasible manner, BSEE agrees with the order to provide maximum sealing technology exists to help ensure the importance of such capabilities, but efficiency. Due to the various BOP pipe is positioned within the shear does not want to limit the use of configurations across industry, BSEE surface to optimize shearing improved technological advancements wants to provide clarity about how the capabilities. The proposed rule, in shear blade designs. For further BOP systems should function properly however, did not specifically require the analysis, see Section III.B.2. to achieve necessary shearing and use of such centering technology. As sealing during a well control event. encouraged by Congress 33 to ensure that Comments Related to Proposed BSEE wants to ensure optimal shearing offshore operations promote safety and § 250.734—Emergency Functions—EDS, and sealing functionality during a well protect the environment in a technically Autoshear/Deadman control event. Depending upon the rig feasible manner, BSEE agrees with the Summary of comments: One operations, operators develop different importance of such capabilities, but commenter asserts that the justification EDS modes that would function does not want to limit the use of for eliminating the requirement for the different BOP components at improved technological advancements Emergency Disconnect Sequence (EDS) appropriate times. The selection of the in shear blade designs. For further system to be capable of closing two EDS mode and the specific sequencing analysis, see Section III.B.2. BSEE shear rams in sequence is inadequate of emergency functions should be currently incorporates ANSI/API Spec. because the proposed revisions would developed by the operator based on 16A, Third edition in § 250.198. not sufficiently address how shear ram safety considerations and an operational Summary of comments: Numerous closure will be assured when an EDS risk assessment. The EDS mode is a commenters disagree with eliminating occurs. separate type of emergency function the requirement for a drill pipe • Response: BSEE has revised from the autoshear/deadman. EDS is a centering mechanism. These paragraph (a)(6)(iv) by adding ‘‘and an function that is manually initiated and commenters cite numerous reasons for EDS mode’’ after ‘‘functions’’ to provide operated by rig personnel and involves why they disagree, including that the clarity about how the BOP systems a controlled disconnect. Operators may need for a centering mechanism was a should function properly to achieve use a risk assessment to help identify lesson learned from the Deepwater necessary shearing and sealing. This the actions required of personnel in the Horizon investigation, and that the revision is based on BSEE’s well control plan in accordance with existing shear rams that do not use consideration of comments and is § 250.710. The well control plan newer technology would not be able to intended to clarify that an EDS mode contains specific procedures about how center the drill pipe. One of these must be able to shear in an emergency operators would seal the wellbore and commenters suggests that using the situation. BSEE wants to ensure optimal shear pipe, including what to do when newer shearing blades that can center a shearing and sealing functionality non-shearables are located across a BSR. pipe should be a baseline requirement, during a well control event. Depending and that a specific timeframe for on the rig operations, operators develop Comments Related to Proposed compliance should be established. The different EDS modes that would § 250.734—Pipe Compression commenters also question whether the function different BOP components at Summary of comments: Several agency has sufficient experience with appropriate times. The selection of the commenters identified a potential pipe implementing the centering mechanism EDS mode and the specific sequencing compression issue when functioning the shear rams. Commenters asserted that 33 See n. 10, supra. 34 See n. 10, supra. pipe compression could compromise

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the proper functioning of the BOP, and a low psi, so long as operators end the 53 because industry standards can be a commenter adds that a better test with an acceptable psi, because weakened, whereas standards understanding of dynamic fluid allowing such a test procedure would established by the agency and set in conditions inside the BOP is needed in place a significant amount of trust in regulations can be more stringent. order to improve shearing and sealing industry self-regulation. • Response: As more thoroughly capabilities. Another commenter • Response: BSEE is allowing the use described in the preamble to the asserted that drill pipe compression of a 1,000 psi test for the initial proposed rule, the most critical ROV along with a sequence of casing shear deadman test to verify functionality of functions would be to close the BOP ram then blind shear ram would the system. BSEE will still require components and seal the well for well preclude the blind shear ram from operators to fully pressure test the control purposes. This regulatory closing on an open hole, and that components used within the deadman revision does not limit the operator’s operators must have the ability to system according to § 250.737(d)(4). ability to include the open function on mitigate compression of the pipe stub BSEE will oversee and enforce the ROV panel. With respect to the between the shearing rams when both compliance with these testing comments regarding reliance on shear rams are closed. The commenters requirements and will not rely on industry standards, BSEE incorporates a question whether there have been industry self-regulation. specific edition of a standard; when a standard is updated by the standards sufficient technological advances in Comments Related to Proposed organization, BSEE evaluates the BOP and shear ram design in the two § 250.734(a)(4)—ROV Intervention years since the adoption of the 2016 updated edition and would only WCR, and the validity of the assumption Summary of comments: Numerous incorporate the updated edition as that there will be industry-wide commenters supported removing the appropriate. In other words, BSEE only adoption of the new technologies if they open function requirement from the incorporates into its regulations exist. ROV panel. However, the commenters (through public rulemaking) those • Response: As a general matter, also requested clarity regarding whether standards that it has determined to be BSEE agrees that understanding the the timing requirements could be met by adequate and appropriate, and the dynamic fluid condition inside the BOP using only an ROV or by using a flying regulatory force and content of those is an important research area. BSEE is lead. These commenters suggested incorporated standards can only be requiring in § 250.734(a)(16)(i) of the aligning the timing requirements with altered through subsequent rulemaking. final rule the capability to position the those in API Standard 53 and prior BSEE also utilizes industry standards to pipe within the shearing blade, which references in the rule with respect to establish foundational requirements will help mitigate the concerns about ROV capability. which it can supplement. the ability to shear pipe due to • Response: BSEE is revising this Comments Related to Proposed compression. BSEE recognizes that the section to clarify that operators must § 250.734—Accumulator Systems and technology exists to help ensure the have the capability to perform the Capacity pipe is positioned within the shear required function in the response times surface to optimize shearing outlined in API Standard 53. This can Summary of comments: A commenter capabilities. BSEE is retaining the be accomplished with a flying lead or supported BSEE’s proposed revisions to requirement to utilize such technology, SAM unit, or the ROV. This clarification allow sharing of bottles among but allowing for different technologies is based on a BSEE Q and A related to emergency and secondary control to meet this requirement. the 2016 WCR. BSEE agrees that the system functions to secure f wellbore. response times are the critical function The commenter recommended that Comments Related to Proposed of the ROV capabilities. BSEE has not BSEE reference the FHÈ Spec. 16D, § 250.734—Retesting Deadman mandated a high capacity ROV, but Specification for Control Systems for Summary of comments: Multiple rather that the ROV hot stabs would Drilling Well Control Equipment and commenters disagreed with the accept the high flow via flying leads. Control Systems for Diverter Equipment, requirement to retest the deadman Summary of comments: Some Second Edition, incorporated by system when the system has not been commenters expressed concern about reference in § 250.198 related to controls repaired or affected by a suspension of the reference to compliance with API RP systems, and clarify whether sharing operations. The commenters asserted 17H 2nd Edition, since API Standard 53 bottles would be f sufficiently that retesting the deadman subsea after already covers the same requirement redundant system to allow for a successful surface certification is not and the relevant receptacles are not emergency use. necessary every time the BOP or LMRP materially different from those • Response: BSEE agrees with the is latched to the wellhead, and that the addressed in ANSI/API RP 17H 1st commenter generally about the use of previous test is sufficient to demonstrate Edition. API Spec. 16D related to control the system’s proper functioning when • Response: BSEE disagrees with the systems; however, BSEE disagrees that a the system has not been modified. The assertion that BSEE should only reference to API Spec. 16D is necessary commenters assert that testing the reference API Standard 53. API in this section. BSEE already deadman system in such situations Standard 53 does not contain all of the incorporates API Spec. 16D and API presents unnecessary risks. same information or the same level of Standard 53, and requires sufficient • Response: BSEE disagrees. When specificity covered under API RP 17H. accumulator volume for the emergency the functional system is disconnected, it Summary of comments: One operations. The accumulator is important to ensure that the commenter opposed removing the requirements are covered under emergency systems are completely requirement that ROVs be capable of § 250.735. functional upon reconnection of that opening each shear ram, ram lock, or Summary of comments: A commenter system. BSEE has determined that this pipe ram, since the ability to asserted that BSEE’s proposed revisions requires retesting upon relatch. temporarily open the ram or lock may to the accumulator requirements in Summary of comments: One be necessary for well control § 250.734(a)(3) would reduce safety and commenter is concerned with allowing intervention. The commenter also severely weaken the ability of the operators to conduct the deadman test at disagreed with relying on API Standard subsea BOP system to function in the

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event of a lost connection to the surface cfn center h“ht as justification for the Summary of Comments rig. The commenter further asserted that removal of requirements to verify that BSEE does not explain how removing testing is performed jn the outermost Comments Related to the reference to the subsea location of edges of the shearing blades of the shear § 250.735(g)(2)(i)—Remotely Operated accumulator capacity would ensure that ram positioning mechanism. The Locking Devices the accumulator system could commenter asserted that this assumes Summary of comments: A commenter adequately function if there is a loss of that these newer blades, which are not suggested that BSEE remove the the power fluid connection to the clearly defined, are used universally. requirements for remotely operated surface, and that BSEE therefore must Multiple commenters recommended locking devices on surface BOP blind continue to require that the necessary that BSEE should clarify that the newer shear rams that are required by April 29, accumulator capacity be located subsea. shearing blades that cfn center h“ht are 2019. The commenter asserted that, The commenter recommended that required and that BSEE should give f while these types of devices are BSEE should retain the requirement in necessary by design for subsea BOPs, § 250.734(a)(3)(iii) for dedicated bottles. specific time frame for operators to • comply. due to the inability to manually access Response: BSEE agrees with the the rams and engage locking devices, • commenter and has revised the language Response: BSEE generally agrees manual access is not an issue on surface in final § 250.734(a)(3)(iii) to clarify that with the commenters and has retained BOPs and the manual locking devices the accumulator capacity for autoshear/ (with modifications) provisions in that have been successfully utilized for deadman must be located subsea. The § 250.734(a)(16)(i) that require operators decades are sufficient to allow securing autoshear/deadman systems are to have the capability to position the of these surface rams when necessary. considered failsafe systems that entire pipe completely within the area The commenter asserted that there are function automatically in emergency of the shearing blade. This capability multiple surface BOP sizes and ratings situations and do not require surface can be achieved by a separate that would require these modifications personnel action to function. Consistent mechanism or by ram design. As and expressed concerns about space with the current requirements, the encouraged by Congress 35 to ensure that accumulator bottles that function those issues to accommodate the modified systems need to be located subsea to offshore operations promote safety and locking systems, depending on the rig ensure there is enough fluid and protect the environment in a technically size and type being utilized. pressure to operate the associated feasible manner, BSEE agrees with the • Response: BSEE did not propose or functions. This is a clarification to importance of positioning capabilities, discuss changes to this provision in the ensure there is no confusion about but does not want to limit the proposed rule and as such would not be where the required fluid and pressure technology that can be used to meet in a position to make the suggested must reside to operate the autoshear/ those requirements. changes in this final rule. Regardless, BSEE disagrees with the suggestion deadman emergency functions. What associated systems and related about removing the remotely locking Autoshear/deadman are separate equipment must all BOP systems triggers to operate the same equipment device requirement for surface BOP include? (§ 250.735) and would not be functioned together. blind shear rams. BSEE’s position is that Each emergency function has different This section of the existing a manual lock would require rig criteria that must be met before it will regulations details the associated personnel to enter a potentially automatically function. systems and related equipment that all hazardous area and that a remotely locking device would help limit Comments Related to Proposed BOP systems must include. The required items include an accumulator personnel exposure to the potentially § 250.734—Accumulators and Industry hazardous area, if a shearing event is system; an automatic backup to the Standards necessary. Summary of comments: Multiple primary accumulator-charging system; at least two full BOP control stations; Summary of comments: A commenter commenters asserted that BSEE should requested clarification in paragraph explain why allowing operators to choke, kill, and fill-up lines; and locking devices. (g)(2) that a pilot-operated check valve simply use industry standards, which is considered a remotely operated do not necessarily require accumulators, Summary of Proposed Revisions locking device. The commenter is justified. suggested that the rule should be • Response: BSEE disagrees with the BSEE proposed to revise paragraph (a) modified to read as follows: ‘‘(2) For commenters. BSEE incorporates by clarifying that the accumulator surface BOPs: (i) Remotely operated industry standards, not all of which system must have the fluid volume locking devices (i.e., pilot operated include accumulator specifications, into capacity and appropriate pre-charge check valve) must be installed on blind the regulations as required by the pressures in accordance with API shear rams no later than April 29, NTTAA. Before incorporating standards, Standard 53. These proposed revisions 2021. . . .’’ BSEE thoroughly evaluates them for would provide consistency with API • Response: BSEE did not propose or adequacy and appropriateness. BSEE Standard 53 and conform to the other discuss changes to this provision in the also supplements those standards with proposed accumulator system revisions proposed rule, and as such would not be its own regulatory requirements related in § 250.734. to operations and equipment, as we do in a position to make the suggested in the case of accumulators. Summary of Final Rule Revisions changes in this final rule. Regardless, BSEE does not want to limit the types Comments Related to Proposed BSEE received and considered of devices (e.g., pilot operated check § 250.734—Centering Pipe While comments on the proposed revisions valve) that can be used for locking. Shearing and includes the proposed language in Operators should contact the Summary of comments: A commenter the final rule without change. appropriate BSEE District Manager if asserted that this section refers to the there are any questions about the use of ‘‘newer shearing blades’’ which 35 See n. 10, supra. specified use of this type of equipment.

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What are the requirements for choke revisions included clarification that the minimal to help confirm that all of the manifolds, kelly-type valves inside test rams and non-sealing shear rams do BOP components can properly function BOPs, and drill string safety valves? not need to be pressure tested, because upon installation on the well. (§ 250.736) the non-sealing shear rams are not BSEE proposed to revise paragraph This section of the existing pressure holding components and the (d)(4)(iii) to include annulars in the regulations describes the requirements test ram is an inverted ram that is not pressure testing requirements of for the installation, use, and capability utilized for well control purposes. BSEE paragraphs (b) and (c) of this section. of choke manifolds, BOP systems, also proposed to revise paragraph (b)(2) This proposed revision would not alter valves, pipes, and flexible hoses to reflect the current BSEE policy for the current testing requirements for appropriate for the working pressure conducting the high-pressure test for annulars and would provide clarity for and temperature and operating specific components. For example, some where to find them. BSEE proposed to revise paragraph conditions. of the proposed revisions included specific procedures and testing (d)(4)(v) to clarify the initial subsea Summary of Proposed Revisions parameters for initial equipment pressure testing requirements to confirm BSEE proposed to revise paragraph pressure testing, as well as provisions closure of the selected ram through an (d)(5) by including equipment for subsequent pressure testing on the ROV hot stab. This revision would requirements for the safety valve when same equipment. require the operator to confirm closure running casing with a subsea BOP. This In the proposed rule, BSEE proposed through a 1,000 psi pressure test held revision would specify that the safety to revise paragraphs (d)(2)(ii) and for 5 minutes. This proposed revision valve must be available on the rig floor (d)(3)(iii) by removing the requirement would codify BSEE policy for pressure if the length of casing being run exceeds to submit test results to BSEE where testing the selected ram through the the water depth, which would result in BSEE is unable to witness testing. These ROV hot stabs. BSEE has concluded that the casing being across the BOP stack proposed revisions would significantly testing to higher pressures is not and the rig floor prior to crossing over reduce the number of submittals to necessary for this circumstance because to the drill pipe running string. This BSEE and minimize the associated the intended purpose of this test is to revision would provide clarity and burden for BSEE to review those verify operability of the ROV hot stab to consistency throughout BSEE permitting submittals. If BSEE is unable to witness close the selected ram. Selected rams and minimize the number of alternate the testing, BSEE may access the testing must be pressure tested according to procedure or equipment requests documentation upon request, in other regularly required pressure testing submitted to BSEE. accordance with §§ 250.740, 250.741, intervals and prior to commencing well and 250.746. operations. Summary of Final Rule Revisions BSEE proposed to revise paragraph BSEE proposed to remove existing BSEE received a few comments in (d)(3)(iv) by removing ‘‘test and[.]’’ paragraph (d)(4)(vi) because the testing general support of the proposed BSEE would remove this term to requirements of the selected ram would revisions to this section and is including minimize confusion regarding now be covered under proposed the proposed language in the final rule verification and testing. In this instance, paragraph (d)(4)(v). without change. verification of closure qualifies as BSEE also proposed to revise testing the ROV functions. The purpose paragraph (d)(5) by clarifying the What are the BOP system testing of the stump test is to help ensure the alternating testing schedules of control requirements? (§ 250.737) BOP components and control systems stations and pods. These proposed This section of the existing can function properly before being revisions help ensure that operators regulations details the pressure test utilized on a well. develop a testing schedule that provides frequency, procedures, and duration for BSEE proposed to revise paragraph for alternating testing between the BOP systems. This section also contains (d)(3)(v) to clarify that pressure testing control stations, and also between the additional testing requirements, of each ram and annular on the stump pods for subsea BOPs. The intended including compliance with API test is only required once. This revision result of alternating the testing is to Standard 53, using water to test a would help ensure that the testing of ensure that each control station, and surface BOP system, stump testing a BOP components during stump testing each pod for subsea, can properly subsea BOP system, performing an would limit unnecessarily duplicative function all required BOP components. initial subsea BOP test, alternating pressure testing of each ram or annular. BSEE proposed to revise paragraph testing pods between control stations, as It is unnecessary to pressure test a ram (d)(12)(iv) by clarifying that, during the well as pressure and function tests of or annular multiple times during stump deadman test on the seafloor, operators various components. testing if that component has already are not required to indicate the been successfully pressure tested, discharge pressure of the subsea Summary of Proposed Revisions verifying proper functionality. accumulator throughout the entire test. BSEE solicited comments in the BSEE proposed to revise paragraph These revisions would require that the proposed rule ‘‘on whether the BOP (d)(4)(i) to clarify that the initial subsea remaining pressure be documented at testing interval should be 7 days, 14 BOP test on the seafloor would need to the end of the test, to help verify the days, or 21 days for all types of begin ‘‘within 30 days of the stump proper accumulator settings required to operations including drilling, test.’’ BSEE receives many questions function the specific critical BOP completions, workovers, and about the timing of the initial subsea components. decommissioning,’’ as well as ‘‘on the test and, as written, the regulation was BSEE proposed to revise paragraph specific cost and operational ambiguous regarding exactly what (d)(12)(vi) to clarify the pressure testing implications of each testing interval.’’ 36 needed to occur within the 30 days. requirements of the 2016 WCR, and to BSEE proposed to revise paragraph (b) BSEE proposed this revision to clarify confirm closure of the BSR(s) during the to clarify the BOP system pressure that the testing must begin within 30 autoshear/deadman and EDS testing. testing requirements. These proposed days of the stump test. BSEE wants to This proposed revision would require ensure that the time between the stump confirmation of closure through a 1,000 36 83 FR 22143 (May 11, 2018). testing and the initial subsea test is psi pressure test held for 5 minutes.

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Testing to higher pressures is not BOP tests and this revision codifies can use this option, it must submit a necessary for this circumstance because current practice. request to BSEE for approval to use a 21- the BSR(s) will be pressure tested BSEE is revising paragraph (d)(10) to day BOP testing frequency. In the 21- according to other regularly required address the 21-day BOP pressure testing day BOP testing frequency request, pressure testing intervals and prior to option in new paragraph (a)(4). If BSEE BSEE is requiring the operator to commencing well operations. approves an operator’s request to use a develop a BOP health monitoring plan BSEE proposed to add paragraph 21-day BOP test frequency in that includes the use of condition (d)(13) setting forth exceptions from the accordance with paragraph (a)(4), then monitoring tools capable of providing requirements for pressure testing the BSEE will allow the operator to function continuous surveillance of sensor choke and kill side outlet valves. This test its shear ram(s) BOPs every 21 days readings from the BOP control system, proposed addition would codify BSEE in accordance with the terms of that real-time condition analysis and policy and provide consistency for approval. displays, functional pressure signal permitting throughout the Regions and BSEE is also making minor analysis, and trending capabilities of the Districts without meaningfully reducing corresponding revisions to paragraph sensor data. The plan must include safety or environmental protection. (d)(13)(i) to remove the reference to the failure propagation analysis and a 14-day BOP testing and to clarify that failure tracking and resolution system to Summary of Final Rule Revisions the specified procedure applies to BOP identify recurring problems. BSEE is BSEE received and considered testing, irrespective of the BOP testing also requiring operators to submit comments on the proposed revisions frequency. quarterly reports of the data collected to and includes most of the proposed Summary of Comments the BSEE Regional Supervisor, District language in the final rule without Field Operations. BSEE will review this change, except for the following Comments Related to § 250.737(a)(2)— data to help ensure compliance with the revisions. Based on comments received, 21-Day BOP Testing Frequency requirements of the regulations and help BSEE is redesignating existing Summary of comments: BSEE evaluate the effectiveness and paragraph (a)(4) as (a)(5) and adding received multiple comments supporting appropriateness of the 21-day testing new paragraph (a)(4) to allow the use of and opposing any changes to the BOP frequency. BSEE disagrees with the a 21-day BOP pressure testing testing frequency, as discussed in assertion that it did not identify clearly frequency, in lieu of meeting the sections III and IV of this preamble. enough the types of actions it was schedule established in paragraph (a)(2), However, a commenter recommended considering. The proposed rule solicited if certain criteria are met and BSEE that BSEE allow a 21-day testing comments on a number of issues related approves an operator’s 21-day BOP frequency if additional requirements to this topic, along with context for the testing frequency request. BSEE is were put in place to help provide solicitation (see 83 FR 22143) and requiring operators to demonstrate, in assurances of BOP functionality, BSEE’s final rule is based on its analysis the 21-day BOP testing frequency equivalent performance, and operational of the input received in response to that request, that they have developed a BOP risk as under a 14-day BOP testing solicitation and other elements of the health monitoring plan that includes frequency. The commenter record. Further analysis of BSEE’s certain system capabilities. BSEE is recommended that BSEE require action on this issue is found at Sections requiring the BOP health monitoring condition monitoring tools, failure III.B.5 and IV.C of this preamble. plan to include condition monitoring propagation analysis, and a failure Comments Related to Proposed tools that are able to provide continuous tracking and resolution system. In § 250.737(b)—BOP Testing Validity surveillance of sensor readings from the addition, the commenter suggested that BOP control system, real-time condition if BSEE allowed a 21-day BOP testing Summary of comments: Multiple analysis and displays, functional frequency, it should require the operator commenters recommended that BSEE pressure signal analysis, and historical to collect lifecycle data related to the align the regulations with the testing sensor data. The plan also must include reliability of performance of functioned requirements of API Standard 53 and failure propagation analysis and a components, determine whether there is allow the use of alternative pressure failure tracking and resolution system to a relationship between usage and testing systems that can determine test identify recurring problems. BSEE is deterioration, and understand the validity in less than 5 minutes. The also requiring the operators to submit impact of testing frequency on commenters requested that BSEE clarify quarterly reports of the data collected to reliability. In addition, a commenter the statement in paragraph (b) that states the BSEE Regional Supervisor, District asserted that the proposed rule did not ‘‘. . . test must hold pressure long Field Operations. identify to which technologies BSEE enough to demonstrate the tested BSEE is revising paragraph (b)(3) by was referring with regard to possible component(s) holds the required adding ‘‘or APM’’ after APD. This revisions to BOP system testing pressure.’’ addition is based on BSEE’s further requirements, or under what • Response: BSEE disagrees with the analysis of the proposed rule and circumstances or based on what recommendation that BSEE should provides clarification. This revision information BSEE might amend or allow the use of systems that can test in codifies longstanding BSEE practice of restructure § 250.737. less than 5 minutes. More research and identifying the applicable operational • Response: BSEE agrees with the consistency is necessary before BSEE permit that is used for specific types of commenter’s recommendations about will be in a position to allow pressure operations. allowing a 21-day BOP testing frequency testing systems that demonstrate test Based on comments received, BSEE is if there are additional requirements to validity in less than 5 minutes. BSEE revising paragraph (c) to clarify that the help provide assurance of equivalent also disagrees with the commenters’ use of a digital recorder is an acceptable performance and operational risk when request to clarify that the test must hold method for documenting the duration of compared to a 14-day BOP testing pressure long enough to demonstrate the pressure tests. This revision is only a frequency. In the final rule, BSEE is tested component(s) holds the required minor clarification. BSEE already allows allowing the use of a 21-day BOP testing pressure, because more research and the use of a digital recorder on subsea frequency. However, before an operator consistency is necessary before BSEE

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will be in a position to validate the equipment is run subsea and latched Comments Related to Proposed alternative timeframes. onto the well. BSEE wants to ensure that § 250.737(d)(3)(v)—Stump Test the equipment, as configured, is Procedures Comments Related to Proposed operational before it is run subsea. § 250.737(d)—Verification of ROV Summary of comments: Multiple Intervention Functions Comments Related to Proposed commenters expressed concerns with Summary of comments: Multiple § 250.737(d)(4)(v)—Verifying Closure of the proposed revisions to commenters recommended that any Rams Through ROV Hot Stabs § 250.737(d)(3)(v) that stated ‘‘pressure additional installed ROV intervention testing of each ram and annular Summary of comments: A commenter functions must be verified per the component is only required once.’’ The asserted that although the proposed equipment owner’s maintenance commenters further expressed concerns method for confirming closure of the program, but not to exceed once per with BSEE’s proposed rationale to rams may be a valid method of verifying year. eliminate ‘‘unnecessarily duplicative closure, there are other methods that • Response: BSEE disagrees with this pressure testing’’ and to limit the risk of should be approved, such as position recommendation. BSEE wants to ensure component wear. Section 250.737(c) indicators, and a combination of that operators verify all ROV hot stabs requires repeat testing if a pressure test parameters such as volume, time, and a prior to commencing operations on each under § 250.737(b) and (c) is not pressure spike at the end of travel. The well. successful. The commenters asserted commenter asserted that the pressure of that the proposed revision to Comments Related to Proposed 1,000 psi seems completely arbitrary § 250.737(d)(3)(v) does not appear to § 250.737(d)(2) and (3)—Review of and had been specifically rejected by take into account the possibility of a Testing Results BSEE in the alternate procedure/ failed test and the need for a repeat test. Summary of comments: Multiple departures section of the August 17, The commenters further asserted that commenters opposed the proposed 2016 WCR presentation in Houston, the Department also proposed to removal of the requirement that the Texas. weaken § 250.737(d)(5)(i)(A) and (B) by operator must provide the initial test • Response: BSEE disagrees with the reducing BOP control station testing results to the District Manager if BSEE recommendation to accept use of the from weekly to every other week and cannot witness testing. The commenters identified methods to confirm closure of that this change would cut in half the expressed concerns with removing the the rams. More research and data is BOP control station testing frequency. • real-time supervision of the methods necessary to fully evaluate those Response: BSEE disagrees with the used to conduct inspections of well methods and BSEE may include those assertion that the proposed revisions control system components, asserting methods in future rulemakings, would weaken the regulations. that the change would allow too much depending on future findings. BSEE is Paragraph (d)(3)(v) applies to the stump discretion to operators, and would allowing the use of 1,000 psi pressure testing which is conducted prior to the remove a safeguard that prevents for the ROV test because that is subsea BOP stack being latched onto the inadequate testing, thus reducing safety. sufficient to verify functionality of the well. The stump test is the main • Response: BSEE disagrees with the system. The BOP system and each BOP opportunity to identify and correct assertion that the removal of the component are still required to be fully issues with the stack before deployment. requirement to provide the initial test pressure tested according to There is additional required testing once results to BSEE, when BSEE is unable to § 250.737(b). the BOP stack is installed, plus regularly witness testing, reduces safety. BSEE scheduled testing during operations reviews the test results during routine Comments Related to Proposed while the BOP is latched onto the well. inspections of facilities. The operator is § 250.737(d)(5)(ii)—Testing of Remote Section 250.737(c) requires a successful still required to make the results Panels pressure test of the required components and applies to paragraph available to BSEE upon request for Summary of comments: Multiple (d). Accordingly, paragraph (c) states verification. BSEE also retains the commenters recommended that BSEE that ‘‘If the equipment does not hold the option for BSEE to witness the testing. revise the regulations to allow required pressure during a test, you additional alignment between the Comments Related to Proposed must correct the problem and retest the proposed rule and API Standard 53, § 250.737(d)(3)(iv)—Testing of ROV affected component(s).’’ Panels During Stump Testing Section 7.6.5.1.4, which states, ‘‘[i]f Comments Related to Proposed Summary of comments: A commenter installed, remote panels where all BOP § 250.737(d)(12)(iv)—Deadman Test asserted that, since BSEE proposed that functions are not included (e.g. lifeboat Procedures BOP ROV panels should not be required panels, etc.) shall be function tested in to have open functions, BSEE should accordance with the equipment owner’s Summary of comments: A commenter remove the requirement to test systems procedures.’’ The commenters asserted disagreed with the proposed changes to that currently have open functions for that the inclusion of the phrase ‘‘in the deadman system test procedures. rams on the ROV panels. The accordance with the equipment owner’s The commenter expressed concerns commenter was concerned that procedures’’ in the regulations would with the proposed revision that would operators with systems that already allow the operator to conduct the test only require operators to record starting have open functions for rams will with the BOP on-deck and would not and stopping pressure to determine remove them so they do not have to test. alter the effectiveness or intent of the deadman closing efficiency. • Response: BSEE disagrees with the proposed BSEE text. • Response: BSEE disagrees that there comment. The referenced testing • Response: BSEE disagrees with the is any basis for concern. In paragraph requirement is applicable to the stump comment. Operators must function test (d)(12)(iv) testing is used to verify that test, which is performed before the BOP the remote panels upon the initial BOP there is sufficient accumulator capacity is installed. The stump test is used to test to ensure functionality with the for the required BOP deadman verify the functionality of the ROV complete installed system. On-deck functions. Documenting the final components while on the surface, before testing alone is not sufficient. pressure on the subsea accumulator

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after a deadman test is sufficient to the use of conflicting terms that may Comments Related to § 250.738—Riser verify that the subsea accumulation have different meanings throughout the Gas Handler Systems system can deliver the necessary fluid regulations. volume to execute this emergency Summary of comments: A commenter operation. This verification Summary of Final Rule Revisions recommended requiring the use of a demonstrates the system is adequately riser gas handler system for all rigs with BSEE received and considered marine risers. The commenter asserted deployed in the application on the well comments on the proposed revisions for safe operation. that requiring the use of riser gas and generally includes the proposed handler systems would safely manage Comments Related to Proposed language in the final rule without gas in the marine riser, prevent future § 250.737(d)(12)(vi)—Deadman Test change, except for the following incidents like Deepwater Horizon, and Procedures revisions. BSEE is reversing the order of prevent environmental damage. existing paragraphs (b)(3) and (b)(4), and Summary of comments: A commenter • Response: BSEE disagrees with the asserted that BSEE’s proposed revision redesignating them appropriately. This change was necessary to avoid recommendation to require the use of a to paragraph (d)(12)(vi) would place a riser gas handler system on all wells. significant amount of trust in industry confusion about the process for submitting and then getting BSEE Operators are currently allowed to use self-regulation because the revision riser gas handler systems pursuant to seems to allow for operators to conduct approval and reflects the logical order for the process. BSEE is revising final this section. However, it is beyond the the deadman test at low pounds per scope of this rulemaking to require it for square inch (psi) during the test, as long paragraph (b)(3) with conforming edits to §§ 250.720 and 250.734, to require all rigs with marine risers. BSEE may as operators complete the test with an evaluate the use of riser gas handler acceptable psi. The commenter operators to submit a revised permit instead of a report. The revised permit systems for possible inclusion in future recommended that BSEE provide rulemakings. justification for the revisions. must include a written statement from • Response: BSEE is allowing the use an independent third party Comments Related to Proposed of a 1,000 psi test for the initial documenting the BOP repairs, § 250.738(b)—Reverification of BOP deadman test because that is sufficient replacement, or reconfiguration and System to verify functionality of the system. certifying that the previous certification The components utilized within the under § 250.731(c) remains valid. This Summary of comments: A commenter deadman system are still required to be revision is necessary to be consistent recommended that BSEE should fully pressure tested according to with the independent third-party consider requiring a report from an § 250.737(d)(4). BSEE will oversee certification comments on proposed independent third party if operations compliance with and enforcement of § 250.720 and BSEE’s final approach to are interrupted due to the events listed these testing requirements and will not that provision. This revision will in § 250.720(a)(1). The commenter rely on industry self-regulation. provide BSEE with additional assurance asserted that the events listed in that the relevant BOP system is fit for § 250.720(a)(1) would invalidate a What must I do in certain situations service upon relatch and reflects current verification submitted under involving BOP equipment or systems? BSEE practice. The independent third- §§ 250.732(c) and 250.731(d) and that (§ 250.738) party certification contains the same consideration should be given to This section of the existing type of information operators submit including or moving these requirements regulations describes actions that with their original required BSEE to § 250.738, as well. operators must take when certain permits. This revision provides • Response: BSEE agrees with the situations occur with BOP systems, such assurance that there is a current commenter, in part, and added a as if the BOP equipment does not hold certification of the BOP and provides requirement for submitting a revised the required pressure during a test or if consistent documentation of permit with a written statement from an the BOP control station or pod does not recertification. independent third party certifying that function properly. BSEE removes the language ‘‘with the the previous certification under Summary of Proposed Revisions new, repaired, or reconfigured BOP.’’ § 250.731(c) remains valid. BSEE also made corresponding edits to similar BSEE proposed to revise paragraphs from existing paragraph (b)(3); requirements in §§ 250.734 and 250.738. (b), (i), (m), and (o) by replacing the redesignated by this final rule as These revisions help ensure that the references to BAVOs with references to paragraph (b)(4) because they are BOP remains fit for service at the same an independent third party throughout. redundant to the updated introductory BSEE proposed to revise paragraph (f) language for paragraph (b). location. to clarify the testing requirements Summary of Comments What are the BOP maintenance and implemented by the 2016 WCR inspection requirements? (§ 250.739) necessary to verify the integrity of the Comments Related to Proposed affected casing ram or casing shear ram § 250.738(f)—Shell Test for Casing Rams This section of the existing and connections. This proposed regulations details the maintenance and revision would codify BSEE policy to Summary of comments: Multiple inspection requirements for BOPs. The allow the pressure testing to test the commenters agreed with the intent of requirements include: Meeting or pressure of the BOP component above this revision, but requested that BSEE exceeding minimum thresholds for this ram, as specified in the approved clarify the timing and location of the maintenance and inspection; a complete permit. test. breakdown and physical inspection of BSEE also proposed to revise • Response: BSEE disagrees that the the BOP every 5 years; a visual paragraph (m) to replace the term ‘‘well- timing and location of the shell test inspection of the surface BOP system on control equipment’’ with ‘‘circulating or needs to be clarified. The regulations a daily basis; and training of all ancillary equipment.’’ This revision state that the operator must conduct the personnel who maintain, inspect, or would eliminate confusion arising from shell test before running casing. repair BOPs.

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Summary of Proposed Revisions phrase makes the associated Comments Related to Proposed BSEE proposed to revise paragraph (b) requirements less specific, adds § 250.739—BAVO Present During by replacing ‘‘complete breakdown and ambiguity to otherwise clear language, Inspections detailed physical inspection’’ with a and leaves some testing requirements Summary of comments: Multiple ‘‘major, detailed inspection,’’ open for interpretation, which cannot commenters asserted that BSEE identifying examples of well control ensure the safety and environmental proposed to weaken the rule by system components, replacing protection provided by BOPs. The eliminating the requirement for a BAVO references to the BAVO with references commenters suggested that BSEE should to be physically present at the 5-year to an independent third party, and be more specific in its proposed BOP inspection and by proposing an replacing the requirement to have a regulation in explaining how far the inadequate substitute of having a third- BAVO present during each inspection BOP must be broken down to meet an party inspector read industry’s with a requirement for an independent acceptable BOP ‘‘major, detailed’’ 5-year inspection report after-the-fact before third party to review inspection results. inspection. compiling its own report. The BSEE proposed replacing ‘‘complete • Response: BSEE disagrees with the commenters asserted that if a third-party breakdown and detailed physical assertion that the proposed language inspector is not physically present at the inspection’’ with a ‘‘major, detailed adds ambiguity regarding what is 5-year BOP inspection, that person inspection’’ to correct the industry required for the 5 year inspection. This would not have the opportunity to misconception, prevalent since the revision is designed to provide clarity physically inspect the equipment, promulgation of the 2016 WCR, that and eliminate misconceptions regarding collect independent data and photos, or each component of the BOP must be the existing inspection requirement, not make recommendations for repairs/ dismantled to its smallest possible part. to substantively alter that requirement. replacements before the BOP is returned This was never the intent behind this to service or rebuilt. The commenters BSEE expects this 5-year inspection to provision of the 2016 WCR and the further asserted that any report prepared be conducted in the same manner, proposed revisions would clarify BSEE’s by a third-party absent the opportunity whether it is called a complete positions on the 2016 WCR requirement to participate in the actual inspection breakdown and detailed physical and resolve perceived ambiguities, would have little value and would come inspection or a major detailed without substantively altering the much too late in the process to effect inspection requirement. inspection. This revision is consistent real change/improvement. BSEE also proposed to remove the with the guidance posted on the BSEE • Response: BSEE disagrees with the requirement for the BAVO to be present website at https://www.bsee.gov/ assertions that having an independent during each inspection and replace it guidance-and-regulations/regulations/ third party reviewing the documents, with a requirement that an independent well-control-rule. As discussed in the instead of being physically present for third party review the inspections proposed rule, BSEE used the term the inspections, is inadequate. BSEE results. BSEE expects the independent ‘‘major detailed inspection’’ to correct requires the independent third party to third party to review the documentation the industry misconception prevalent review the documentation of the of the inspections to help ensure that since the promulgation of the 2016 WCR inspections and compile a detailed the appropriate entities accurately and that each BOP component must be inspection report. These independent appropriately complete the activities. dismantled to its smallest possible part. third party responsibilities help ensure The proposed revisions would ease the This was never the intent behind this that the appropriate entities accurately logistical and economic burdens derived provision of the 2016 WCR. These and appropriately complete the from the 2016 WCR requirement to have revisions clarify BSEE’s position on the inspection activities, as well as identify the BAVO onsite at all times during all 2016 WCR requirements and resolve any necessary corrective actions. The inspections. perceived ambiguities, without independent third party document substantively altering the inspection review allows the comparison of the Summary of Final Rule Revisions requirement. design data with the current status of BSEE received and considered Summary of comments: Multiple the equipment. The intent of the major comments on these provisions of the commenters supported the proposed inspection is to verify that the well proposed rule and includes the clarification to the rule. The control system components are fit for proposed language in the final rule commenters asserted that the proposed service and within design tolerances to without change. BSEE received be utilized for specific well conditions. comments in general support and language codifies clarification previously given by BSEE regarding the These goals can be verified during a opposition to the proposed changes, in data review and do not require the addition to the following comments. intent of the phrase ‘‘complete breakdown’’ in the current regulation independent third party to be physically Summary of Comments and also ensures that proven industry present during the major inspection to make that determination. Because the practice to phase recertification as part Comments Related to Proposed inspection may be performed in phased of a continuous maintenance and § 250.739—BOP Complete Breakdown intervals, as provided in the 2016 WCR, inspection program is acceptable. The Versus Major Detailed Inspection having a BAVO or third party present commenters also asserted that this Summary of comments: Multiple during the inspection would not be approach is consistent with the commenters asserted that the proposed practical or logistically feasible. For requirements of API Standard 53 and rule would make a number of provisions example, in the situation where the rig more confusing. For example, one that BSEE appropriately retained the is arriving on the OCS from overseas, proposed revision to § 250.739 replaces requirement that inspections be the independent third party would not the requirement for regular ‘‘complete documented and reviewed by an be present during any maintenance and breakdowns and detailed physical independent third party. inspections, and the independent third inspections’’ with a requirement for • Response: BSEE agrees with the party review of the major inspections ‘‘major, detailed inspections.’’ The commenter and no changes are results would correspond to the commenters asserted that changing this necessary. certifications and verifications required

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by §§ 250.731 and 250.732, without guidance on the BSEE website at https:// applies only to coiled tubing. As being present during the inspections. www.bsee.gov/guidance-and- previously stated in the final rule regulations/regulations/well-control- discussion under § 250.750, based on What are the coiled tubing and rule. Many regulations contained in BSEE’s review of the proposed rule, snubbing requirements? (§ 250.750) Subpart G are applicable to coiled BSEE is revising this new section and This is a new section in which BSEE tubing operations, such as, but not separating out the snubbing proposed to consolidate coiled tubing limited to, the items listed in the requirements, creating a separate section and snubbing operational requirements. relevant Q and A on the BSEE website applicable only to snubbing operations Summary of Proposed Revisions at https://www.bsee.gov/guidance-and- under final § 250.760. regulations/regulations/well-control- The content of this proposed section rule. What are the snubbing requirements? was moved from current §§ 250.616 and In § 250.750, BSEE is adding a new (§ 250.760) 250.1706, both titled Coiled tubing and paragraph (b) to clarify that BSEE Summary of Proposed Revisions snubbing operations and removed and considers all coiled tubing operations to BSEE did not propose to add this new reserved both in this final rule. BSEE be non-routine. BSEE is making this section, however the content was proposed this section to consolidate clarification based on our review of the included in proposed § 250.750. some of the minimum BOP system proposed rule and a review of the component requirements for coiled comments associated with the definition Summary of Final Rule Revisions tubing and snubbing operations. BSEE of routine operations in § 250.601, BSEE is adding this new section and proposed minor revisions to the original Definitions. This clarification also language to conform to the applicable undesignated center heading to clarify codifies longstanding BSEE policy that the snubbing requirements. To avoid operations covered under Subpart G. considers operations with a coiled BSEE also proposed to add a paragraph confusion between coiled tubing and tubing unit to be non-routine and snubbing requirements in this final rule, (d) to conform snubbing unit testing require a permit. This addition helps with updated requirements. BSEE is separating their respective clarify the approval process for use of requirements into different sections and Summary of Final Rule Revisions coiled tubing for workovers. relocating the proposed snubbing BSEE did not receive any comments Coiled Tubing Testing Requirements requirements under this new section. specific to this section and only (§ 250.751) The content of this section is being moved from proposed § 250.750(b), (c), received one comment asking how the This is a new section in which BSEE and (d), with minor conforming proposed requirements of a different proposed to consolidate coiled tubing revisions to reflect the separation of section apply to coiled tubing and snubbing operational requirements. operations. Based on BSEE’s review and coiled tubing requirements and the continued analysis of the proposed rule Summary of Proposed Revisions applicability only to snubbing and the single comment applicable to BSEE proposed to add this section to operations and equipment. These coiled tubing, BSEE is making codify current BSEE policy regarding changes are administrative and non- administrative and technical revisions the coiled tubing testing and recording substantive. BSEE did not receive by modifying the proposed requirements. In this addition, BSEE comments on the relevant language from undesignated center heading and proposed to reintroduce language proposed § 250.750 and is finalizing it separating out the coiled tubing and similar to provisions that were as described. snubbing requirements to create inadvertently removed from the Subpart Q—Decommissioning separate sections only applicable to regulations through the 2016 WCR, Activities snubbing operations. To avoid consolidating elements from §§ 250.617 confusion between coiled tubing and and 250.1707 of the regulations as they What are the general requirements for snubbing requirements in this final rule, existed before the 2016 WCR. Both decommissioning? (§ 250.1703) BSEE is separating their respective sections are currently reserved. BSEE This section of the existing requirements into different sections. proposed revisions to the original regulations details decommissioning The coiled tubing requirements are language to conform to the applicable requirements, including getting District addressed under new §§ 250.750, What requirements of Subpart G. For example, Manager approval, permanently are the coiled tubing requirements? and in the proposed rule, this section would plugging all wells, removing all 250.751, Coiled tubing testing not include the former provisions platforms and facilities, requirements. The requirements for regarding testing of the coiled tubing decommissioning all pipelines, and snubbing operations, which were connector, because the proposal would clearing the seafloor of obstructions. proposed as § 250.750 paragraphs (b), instead state that operators ‘‘must test Summary of Proposed Revisions (c), and (d), were revised and moved to the coiled tubing unit in accordance new § 250.760, What are the snubbing with § 250.737 paragraphs (a), (b), (c), BSEE proposed to revise paragraph (b) requirements? in the final rule. BSEE is (d)(9), and (d)(10).’’ Section 250.737 to clarify that only packers or bridge also including minor clarifications to requires testing of the system when plugs used as mechanical barriers are the proposed text to more accurately installed and provides testing criteria. required to comply with ANSI/API reflect BSEE’s longstanding coiled As proposed, identifying the connector Spec. 11D1. BSEE proposed this tubing practices. BSEE is removing testing in this section is not necessary revision to codify BSEE’s policy to ‘‘with the production tree in place’’ because it is already covered by the ensure that the required mechanical proposed in paragraph (a) because testing requirements of § 250.737. barriers in a well are held to a higher coiled tubing requirements apply to any standard than other common packers or well operation that uses coiled tubing. Summary of Final Rule Revisions bridge plugs used for various well BSEE is also adding ‘‘follow the BSEE did not receive any comments specific conditions and completions applicable requirements of this subpart specific to this section. BSEE is making design. Furthermore, BSEE is aware that . . .’’ to final §§ 250.750(a) and minor revisions to better reflect changes certain packers and bridge plugs cannot 250.760(a) to align with the Q and A to the undesignated center heading that meet the specifications of ANSI/API

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Spec. 11D1. This revision would reduce and includes the proposed language in proposed rule and will remove and the number of alternate equipment the final rule without change. reserve this section in the final rule. requests submitted to BSEE. BSEE also Summary of Comments To what depth must I remove wellheads proposed to add that operators must and casings? (§ 250.1716) have two independent barriers, one Comments Related to Proposed being mechanical, in the exposed center § 250.1704—Plug and Abandonment This section of the existing wellbore (e.g., this could be the tubing Plans regulations establishes the minimum depth below the mud line for removal or casing depending on the well Summary of comments: One of all wellheads and casings, unless an configuration) prior to removing the tree commenter suggested that plugging and alternate depth is approved by the or well control equipment. BSEE abandonment plans should be based on District Manager. proposed this addition to codify BSEE risk acceptance and planned on a well- policy, align the well decommissioning by-well basis. The commenter also Summary of Proposed Revisions requirements with similar requirements recommended the use of a DNV BSEE proposed to revise paragraph from §§ 250.720(a) and 250.1712(g), and Recommended Practice. to help ensure the well is properly (b)(3) by changing the water depth • Response: BSEE disagrees with the criteria for when BSEE may approve an secured before removal of the tree or suggestion that plugging and well control equipment. alternate depth for removal of the abandonment activities should be based wellhead or casing from 800 meters to Summary of Final Rule Revisions on risk. BSEE does not consider a risk 1,000 feet. At depths greater than 1,000 BSEE received no substantive assessment by itself sufficient for feet, there is little risk of obstruction to comments on these provisions of the determination of all plugging and other users of the OCS or its waters or proposed rule, however BSEE did abandonment operations. Plugging and contact with other equipment, and little receive comments on similar abandonment operations are currently risk of safety or environmental issues mechanical barrier requirements in conducted on a well specific basis as from removal to an alternate depth. approved within the applicable BSEE §§ 250.518 and 250.619. Based on its Summary of Final Rule Revisions consideration of the comments, BSEE is permits. BSEE will review the identified revising paragraph (b) to clarify that DNV Recommended Practice for BSEE received comments in general only the required mechanical barrier possible inclusion in future support of the proposed revisions to this must be ANSI/API Spec. 11D1 qualified. rulemakings, as appropriate. section and is including the proposed language in the final rule without This revision is consistent with the Coiled Tubing and Snubbing Operations change. similar requirements in final §§ 250.518 (§ 250.1706) and 250.619 and BSEE’s If I install a subsea protective device, Summary of Proposed Revisions implementation of the mechanical what requirements must I meet? barrier requirements finalized in the BSEE proposed to remove and reserve (§ 250.1722) 2016 WCR. this section. BSEE proposed to move the This section of the existing content of this existing regulation to What decommissioning applications regulations states that if a subsea proposed § 250.750. BSEE proposed and reports must I submit and when protective device is installed, then it these revisions to help eliminate must I submit them? (§ 250.1704) must be done in a manner that allows inconsistencies between similar fishing gear to pass over the obstruction This section of the existing requirements spread throughout regulations provides a table that without damage to the obstruction, the different regulatory subparts by protective device, or the fishing gear. identifies the required decommissioning consolidating those requirements into applications and subsequent reports, as Subpart G, which is applicable to Summary of Proposed Revisions well as the deadlines for when to submit drilling, completions, workovers, and BSEE proposed to revise paragraph (d) them. decommissioning operations. to direct the submittal of the trawl test Summary of Proposed Revisions Summary of Final Rule Revisions report to the EOR rather than an APM. BSEE proposed to revise paragraph (g) This proposed revision would not affect BSEE received no substantive the substance of the reporting by shifting the requirements for comments on these provisions of the submittal of the site clearance requirement or the information BSEE proposed rule and will remove and receives, only the mechanism through verification activity information to an reserve this section in the final rule. Application for Permit to Modify which it is received. (APM). The site clearance verification Must I notify BSEE before I begin well Summary of Final Rule Revisions plugging operations? (§ 250.1713) activity information will be removed BSEE received no substantive from the end of operations report (EOR). Summary of Proposed Revisions comments on these provisions of the BSEE proposed these revisions to better proposed rule and includes the reflect current practice and limit BSEE proposed to remove and reserve this section. Based upon BSEE proposed language in the final rule redundant reporting. without change. BSEE also proposed to revise experience with the implementation of paragraph (h) by adding the submittal of the 2016 WCR, BSEE determined that VI. Procedural Matters the decommissioning activity the submittal of the information Regulatory Planning and Review information, upon completion, to the required by this section is redundant (Executive Orders (E.O.) 12866, 13563, EOR. BSEE proposed these revisions to with similar rig movement notification and 13771) better reflect current practice and limit information required under § 250.712, redundant reporting. What rig unit movements must I report? Executive Order 12866 provides that the Office of Information and Regulatory Summary of Final Rule Revisions Summary of Final Rule Revisions Affairs (OIRA) within the OMB will BSEE received and considered BSEE received no substantive review all significant rules. This action comments on the proposed revisions comments on these provisions of the is an economically significant regulatory

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action that was submitted to OMB for cost estimates in the 2016 WCR analysis conditions and replace the BAVO review as it would have a positive are primarily because that analysis: requirements for BOP systems and annual effect on the economy of $100 (1.) Underestimated the cost for system components with independent million or more. BSEE coordinated revising permits or reporting certain third party requirements. The previous development of an economic analysis to operations to the District Manager provisions were either duplicative or assess the anticipated costs and (§§ 250.428 and 250.722), and required a more burdensome potential benefits of the final rule. The (2.) Underestimated both the number certification process than reasonably significant positive economic effect on of subsea BOPs that would require necessary. The changes to the the economy is the result of the modifications and the cost of those certification processes do not affect estimated cost savings of this rule. BSEE modifications under the 1014–AA11 worker safety and the environment. estimates the amendments in this regulations (§ 250.734). The revisions to final § 250.734 better rulemaking would save the regulated The revisions to existing ram and define the BOP components industry $152 million annually over ten accumulator requirements for subsea years (discounted at 7 percent). BOPs (§ 250.734) yield cost savings of functionality requirements, revise the Details on the estimated cost savings $369 million (nominal $). The changes requirements for ROV capability and of this rule can be found in the rule’s to § 250.734 better align the shear ram functionality, and amend accumulator regulatory impact analysis. The cost provisions with API Standard 53 and capacity requirements for subsea BOP savings for this final rule are due to revise the accumulator capacity stacks. This revision to the accumulator regulatory clarifications, reduction in requirements for subsea BOP stacks. requirements increases operator paperwork burdens, adoption of With changes to § 250.737, BSEE is flexibility to utilize the appropriate industry standards, and migration to allowing operators to move to a 21-day accumulator capacity to perform the performance-based standards for select BOP testing interval upon satisfaction of necessary emergency functions. provisions. certain conditions. These changes align Through the implementation of the This rule revises regulatory provisions the testing interval with industry and WCR, BSEE was able to better evaluate in 30 CFR part 250, subparts D, E, F, G, global standards and help avoid the effects of the WCR accumulator and Q. BSEE has reassessed a number of premature wear and tear on critical requirements on subsea BOP space and the provisions in the (1014–AA11) 2016 components. BSEE expects operators weight limitations. After reevaluating WCR and revises some provisions to using subsea BOPs to seek to move to the API 53 standards, BSEE agrees that reflect performance-based standards a 21-day interval, realizing a cost certain prescriptive requirements in the rather than prescriptive requirements. savings of $919 million (nominal $) over current regulations are unnecessary. The Other revisions reduce or eliminate 10-years. The changes to this provision regulatory text revisions to § 250.734 parts of the paperwork burden, without represent the single largest cost savings align BSEE regulations with the impacting the current levels of safety in the rule. performance standards in API Standard and environmental protection. BSEE This rule will reduce the regulatory 53, ensuring the subsea accumulator sought the best available data and burden on industry, while maintaining capacity is sufficient to actuate the BOP information to analyze the economic worker safety and environmental ram functions necessary to seal the well. impact of these changes. The Regulatory protection. BSEE is providing industry This performance standard meets the Impact Analysis (RIA) for this flexibility, when practical, to meet the intent of the 1014–AA11 WCR without rulemaking can be found in the https:// safety or equipment standards, rather the prescriptive and unnecessarily www.regulations.gov/ docket (Docket ID: than specifying the compliance method. burdensome requirements. BSEE–2018–0002). The Final RIA For example, BSEE will eliminate the The § 250.737 paragraph (d)(5) (FRIA) indicates that the estimated requirement that operators resubmit an overall cost savings to the industry over APD in the event of planned mud losses amendments allow operators to the next 10 years would exceed $1.5 or inadequate cement jobs. Instead, alternate BOP tests between the two billion in nominal dollars. BSEE will allow the operator to outline control stations rather than testing from BSEE revised certain provisions of the remedial actions to these scenarios in both control stations on each test. The 2016 WCR to support the goals of the contingency plans included in the rule returns the regulations to pre-2016 Administration’s regulatory reform original BSEE-approved APD. This WCR regulatory language in order to initiatives, while ensuring safety and revision will not change the operational prevent the additional wear and tear on environmental protection. BSEE has responses to these events, and therefore the BOP components. This change received additional information since reduces the paperwork burden and aligns BSEE regulations with the the publication of the 2016 WCR and expensive operational downtime industry testing standards. revisited several of the compliance cost without affecting operational risks. BSEE’s estimate of the net total, assumptions in the economic analysis Other changes remove BOP stack annualized and discounted regulatory for the 2016 final rule. The certification requirements regarding cost savings can be found in the modifications to the BSEE compliance design specifications and equipment following table.

TOTAL 10-YEAR ESTIMATED COST SAVINGS ASSOCIATED WITH AMENDMENTS TO SUBPARTS D, E, F, G, AND Q

Year Undiscounted Discounted at 3% Discounted at 7%

Total ...... $1,543,093,357 $1,309,246,758 $1,067,468,876 Annualized ...... 154,309,336 153,483,661 *151,983,553 * The annualized cost savings assuming the rule is effective in 2019 and discounted over an infinite time horizon, would be $60,996,080 at a 7% discount rate (using 2016$).

This rule reduces the burden imposed safety and environmental protection. compliance costs, savings, and benefits on industry, while ensuring continued Additional information on the

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can be found in the FRIA posted in the Regulatory Flexibility Act and Small which the rule’s provisions will apply docket. Business Regulatory Enforcement directly. For NAICS codes 211120 and This rule revises multiple provisions Fairness Act 211130, SBA defines a small company in the current regulations to implement The Regulatory Flexibility Act, 5 as having fewer than 1,251 employees. performance-based provisions based U.S.C. 601–612, requires agencies to BSEE considers that a rule will have upon reasonably obtainable safety, analyze the economic impact of an impact on a ‘‘substantial number of technical, economic, and other regulations when a significant economic small entities’’ when the total number of information. Other redundant or impact on a substantial number of small small entities impacted by the rule is unnecessary reporting requirements are entities is likely and to consider equal to or exceeds 10 percent of the also being eliminated. BSEE is regulatory alternatives that will achieve relevant universe of small entities in a providing industry flexibility, when the agency’s goals, while minimizing given industry. BSEE’s analysis shows the burden on small entities. In practical, to meet the safety or that there are 48 small companies with addition, the Small Business Regulatory active operations on the OCS and all of equipment standards, rather than Enforcement Fairness Act of 1996, 5 these companies could be impacted by specifying the compliance method. U.S.C. 601 note, requires agencies to the rule if conducting drilling or well Based on a consideration of the produce compliance guidance for small operations. Therefore, BSEE expects that qualitative and quantitative safety and entities if the rule has a significant the rule would affect a substantial environmental factors related to the economic impact. For the reasons number of small entities. rule, BSEE’s assessment is that it is explained in this analysis, BSEE Large companies are responsible for consistent with the policies of the believes the rule may have a significant the majority of activity in deepwater, applicable E.O.s and the OCSLA. economic impact and, therefore, a where subsea BOPs are used with Executive Order 13563 reaffirms the Regulatory Flexibility Analysis (RFA) floating MODUs. BSEE’s first-order principles of E.O. 12866 while calling for the rule is required by the Regulatory estimate for the rule’s small entity cost for improvements in the Nation’s Flexibility Act. The RFA, which savings is proportional to the number of regulatory system to promote assesses the impact of this rule on small drilling rigs being operated or entities, can be found in the FRIA predictability, to reduce uncertainty, contracted by small companies (circa within the docket for this rulemaking. October 2017). and to use the best, most innovative, As defined by the Small Business and least burdensome tools for Administration (SBA), a small entity is This rule is a deregulatory action; achieving regulatory ends. The E.O. one that is ‘‘independently owned and BSEE has evaluated possible costs and directs agencies to consider regulatory operated and which is not dominant in benefits and has estimated that there is approaches that reduce burdens and its field of operation.’’ What an overall associated cost savings. BSEE maintain flexibility and freedom of characterizes a small business varies has estimated the annualized cost choice for the public where these from industry to industry in order to savings by regulatory provision and approaches are relevant, feasible, and properly reflect industry size then allocated those savings to small or consistent with regulatory objectives. differences. This rule affects lease large entities based on drilling/well E.O. 13563 emphasizes further that operators that are conducting OCS activity (circa October, 2017; activity regulations must be based on the best drilling or well operations. BSEE’s breakouts can be found in the RFA). The available science and that the analysis shows this includes about 69 changes to §§ 250.423, 250.734, and rulemaking process must allow for companies with active drilling or well 250.737(d)(5) would only apply to public participation and an open operations. Of the 69 companies, 21 (30 subsea BOPs and would yield cost exchange of ideas. We have developed percent) are large and 48 (70 percent) savings that sum to $47,421,114. All this rule in a manner consistent with are small. Entities affected by this rule remaining changes apply to all well these requirements. are classified primarily under North operations or subsea/surface BOPs and American Industry Classification yield cost savings that sum to Executive Order 13771 requires System (NAICS) codes 211120 (Crude $106,888,221. Using the share of small Federal agencies to take proactive Petroleum Extraction), 211130 (Natural and large companies subject to each measures to reduce the costs associated Gas Extraction), and 213111 (Drilling suite of provisions, we estimate that with complying with Federal Oil and Gas Wells). The rule indirectly small companies would realize 25 regulations. This rule is an E.O. 13771 impacts OCS drilling contractors that percent of the cost savings from this rule deregulatory action. are classified under NAICS code 21311, and large companies 75 percent. The however this analysis focuses on the allocation is displayed in the following OCS oil and gas lessees and operators to table.

COST SAVINGS BY OPERATOR SIZE [Undiscounted annualized $]

Small companies Large companies Total cost Provision Percent of Percent of savings operators Cost savings operators Cost savings

Subsea BOP Provisions ...... 12 $5,578,955 88 $41,842,160 $47,421,114 All Other Provisions ...... 30 32,315,044 70 74,573,178 106,888,221

Total ...... *37,893,998 ...... **116,415,337 154,309,336 * (25% of Total). ** (75% of Total).

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This rule: Federalism (E.O. 13132) 13). BSEE also complies with the OFR a. Will have a positive economic Under the criteria in section 1 of E.O. regulations governing incorporation by effect on the economy of $100 million 13132, this final rule does not have reference. (See, 1 CFR part 51.) Those or more. The cost savings will not sufficient federalism implications to regulations specify the process for materially affect the economy nationally warrant the preparation of a federalism updating an incorporated standard at or in any local area. summary impact statement. This rule § 51.11(a), including seeking approval will not substantially and directly affect by OFR for a change to a standard b. Will not cause a major increase in incorporated by reference in a final rule. costs or prices for consumers; the relationship between the Federal and State governments. To the extent individual industries; Federal, State, Paperwork Reduction Act (PRA) of 1995 that State and local governments have a Tribal, or local governments; or regions This final rule contains collections of role in OCS activities, this rule will not of the nation. This rule will have information that will be submitted to affect that role. A federalism summary positive effects on OCS operators and is OMB for review and approval under the impact statement is not required. not anticipated to negatively impact oil, The BSEE has the authority to PRA, 44 U.S.C. 3501 et seq. As part of gas, and sulfur production or the cost of regulate offshore oil and gas drilling, its continuing effort to reduce fuels for consumers. completion, workover, and paperwork and burdens on respondents, c. Will not have significant or adverse decommissioning operations. State BSEE invites the public and other effects on competition, employment, governments do not have authority over Federal agencies to comment on any aspect of the reporting and investment, productivity, innovation, or offshore drilling, completion, workover, recordkeeping burden. If you wish to the ability of U.S.-based enterprises to and decommissioning operations on the comment on the information collection compete with foreign-based enterprises. OCS. None of the changes in this rule (IC) aspects of this final rule, you may This rule is a major rule because it will affect areas that are under the jurisdiction of the States. It will not send your comments directly to OMB will have an annual effect on the and send a copy of your comments to economy of $100 million or more in at change the way that the States and the Federal government interact, or the way the Regulations and Standards Branch least one year of the 10-year period that States interact with private (see the ADDRESSES section of this final analyzed. The requirements apply to all companies. rule). Please reference 30 CFR 250, entities operating on the OCS regardless subpart G, Blowout Preventer Systems of company designation as a small Civil Justice Reform (E.O. 12988) and Well Control, 1014–0028, in your business. For more information on the This final rule complies with the comments. To see a copy of the small business impacts, see the RFA in requirements of E.O. 12988. information collection request the FRIA. Small businesses may send Specifically, this rule: submitted to OMB, go to http:// comments on the actions of Federal (1) Meets the criteria of section 3(a) www.reginfo.gov (select Information employees who enforce, or otherwise requiring that all regulations be Collection Review, Currently Under determine compliance with, Federal reviewed to eliminate errors and Review); or you may obtain a copy of regulations to the Small Business and ambiguity and be written to minimize the supporting statement for the Agriculture Regulatory Enforcement litigation; and collection of information by contacting Ombudsman, and to the Regional Small (2) Meets the criteria of section 3(b)(2) the Bureau’s Information Collection Business Regulatory Fairness Board. requiring that all regulations be written Clearance Officer at (703) 787–1607. The Ombudsman evaluates these in clear language and contain clear legal The PRA provides that an agency may actions annually and rates each agency’s standards. not conduct or sponsor, and a person is responsiveness to small business. If you not required to respond to, a collection Consultation With Indian Tribes (E.O. wish to comment on actions by of information unless it displays a 13175) employees of BSEE, call 1–888–REG– currently valid OMB control number. FAIR (1–888–734–3247). BSEE is committed to regular and The OMB is required to make a decision meaningful consultation and concerning the collection of information Unfunded Mandates Reform Act of 1995 collaboration with tribes on policy contained in these regulations 30–60 decisions that have tribal implications. days after publication of this document This final rule will not impose an Under the criteria in E.O. 13175 and the in the Federal Register. unfunded mandate on State, local, or Department’s Policy on Consultation The public may comment, at any tribal governments or the private sector with Indian Tribes (S.O. 3317, time, on the accuracy of the IC burden of more than $100 million per year. The Amendment 2, dated December 31, in this rule and may submit any final rule will not have a significant or 2013), we have evaluated this final rule comments to DOI/BSEE; ATTN: unique effect on State, local, or tribal and determined that it has no Regulations and Standards Branch; governments or the private sector. A substantial direct effects on federally VAE–ORP; 45600 Woodland Road, statement containing the information recognized Indian tribes. Sterling, VA 20166; email kye.mason@ required by the Unfunded Mandates bsee.gov, or fax (703) 787–1093. Reform Act (2 U.S.C. 1531 et seq.) is not National Technology Transfer and The title of the collection of required. Advancement Act (NTTAA) information for this rule is 30 CFR part Takings Implication Assessment (E.O. BSEE complies with the National 250, Blowout Preventer Systems and 12630) Technology Transfer and Advancement Well Control Revisions (Final Act (NTTAA) (15 U.S.C. 3701 et seq.) Rulemaking). The final regulations Under the criteria in E.O. 12630, this requirement that an agency ‘‘use concern BOP system requirements and final rule does not have significant standards developed or adopted by maintaining well control, among others, takings implications. The rule is not a voluntary consensus standards bodies and the information is used in BSEE’s governmental action capable of rather than government-unique efforts to regulate oil and gas operations interference with constitutionally standards, except where inconsistent on the OCS to protect life and the protected property rights. A Takings with applicable law or otherwise environment, conserve natural Implication Assessment is not required. impractical.’’ (OMB Circular A–119 at p. resources, and prevent waste.

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Potential respondents comprise • Subpart G (1014–0028, expiration § 250.731 will add Independent Third Federal OCS oil, gas, and sulphur 07/31/19) will increase annual burden Party costs, increasing the non-hour cost operators and lessees. Responses to this by +73,214 hours (+4,048 hours is due burdens by $31,000 per submission collection of information are mandatory, to this rulemaking and +69,166 hours (total of $6,138,000 annual non-hour or are required to obtain or retain a due to re-estimating the annual number costs) (see Discussion of Final Rule benefit; they are also submitted on of responses) and increase +$765,000 Requirements above). During this occasion, daily and weekly (during annual non-hour costs for ITP. rulemaking it was discovered that BSEE drilling operations), monthly, quarterly, The following is a brief explanation of had overestimated the number of biennially, and as a result of situations how the final regulatory changes will responses/submittals. We are decreasing encountered, depending upon the affect the various subpart hour burdens: that by 62 responses; which in turn requirement. The IC does not include decrease the annual hour burden by 310 questions of a sensitive nature. The Application for Permit To Drill (APD) hours. BSEE will protect proprietary 1014–0025 § 250.750(a)(4) requires operators that information according to the Freedom of § 250.414(c)(2) is new and will allow plan to conduct operations without Information Act (5 U.S.C. 552) and DOI operators the option to submit the downhole check valves, describe implementing regulations (43 CFR part required justification and alternate procedures and equipment in 2), 30 CFR part 252, OCS Oil and Gas documentation for a proposed Form BSEE–0124, APM, and have it Information Program, and 30 CFR alternative safe drilling margin for BSEE approved by the District Manager. The 250.197, Data and information to be approval at an earlier date prior to the responses/burden associated with made available to the public or for APD. This will increase the annual § 250.616 (245 approvals × .75 hour = limited inspection. burden hour by 15 hours. 184 annual hour burdens) and This final rule will increase BSEE’s IC § 250.428 removes the requirement to § 250.1706 (503 requests × .25 hour = inventory by +87,744 annual hour resubmit an APD in the event of 126 annual hour burdens) are being burdens; as well as increase annual non- planned mud losses, or remedial actions relocated to 250.750(a)(4) (for a total of hour costs burdens by $10,918,000 for for inadequate cement jobs, if these 748 requests × 1 hour); increasing the Independent Third Party (ITP) costs. circumstances are addressed in the annual hour burden by 438 hours (see BSEE-Approved Verification original approved APD. Reductions will Discussion of Final Rule Requirements Organization (BAVO); is being replaced be shown during the renewal process above). with ITP. In connection with the (see Discussion of Final Rule § 250.1722(d) will direct the submittal original WCR, BSEE assumed hour Requirements above). of the trawl test report to the End of burdens in place of non-hour costs § 250.724(b) will eliminate the Operations Report (EOR) rather than an associated with BAVO submissions; requirement to submit certification that APM; and will decrease the annual hour however, in this final rule, we are you have a real-time monitoring plan burden by 36 hours (see Discussion of capturing non-hour costs associated that meets the criteria listed. This will Final Rule Requirements above). with hiring ITPs. Below is a list of the decrease the annual hour burden by 109 Subpart A 1014–0022 current OMB Control Numbers affected hours (see Discussion of Final Rule § 250.115 is the regulatory text from by this final rulemaking and their Requirements above). associated increases/decreases in hour § 250.198 but moved and relocated to § 250.731 will add Independent Third § 250.115. This burden will remain the burdens and non-hour costs: Party costs, increasing the non-hour cost • Applications for Permits to Drill same and is covered under § 250.141 burdens by $31,000 per submission (see (see Discussion of Final Rule (APD–1014–0025, expiration 4/30/20) Discussion of Final Rule Requirements will increase annual burden by +14,523 Requirements above). above). During this rulemaking it was § 250.423 is rewording the hours annually (¥69 hours due to this discovered that BSEE had requirement in a manner that will rulemaking, and +14,592 due to re- underestimated the number of reduce the number of alternative estimating the annual number of responses/submittals. We are increasing procedure or equipment requests under response) and increase +$3,999,000 that by 128 submittals annually, which § 250.141. Reductions will be shown annual non-hour costs for ITP; in turn increase the annual hour burden • during the renewal process (see Applications for Permits to Modify by 14,592 hours. Discussion of Final Rule Requirements (APM–1014–0026, expiration 7/31/20) § 250.738(b) requires operators submit above). will decrease annual burden by ¥33 a revised permit with a written hours (+277 hours due to this statement from an independent third Subpart B 1014–0024 ¥ rulemaking, and 310 hours due to re- party documenting the repairs, § 250.292(p) will require less estimating the annual number of replacement, or reconfiguration and information to be submitted in the responses) and increase +$6,138,000 certifying that the previous certification DWOP. Reductions will be shown annual non-hour costs for ITP; in § 250.731(c) remains valid. This will during the renewal process (see • Subpart A (1014–0022, expiration increase the annual hour burden by 25 Discussion of Final Rule Requirements 2/28/21), BSEE is not making any hours (see Discussion of Final Rule above). changes to hour-burden or non-hour Requirements above). costs; Subpart D 1014–0018 • Subpart B (1014–0024, expiration Application for Permit To Modify § 250.427(b) will revise the 10/31/21), BSEE is not making any (APM) 1014–0026 requirement to include a notification to changes to hour-burden or non-hour § 250.724(b) will eliminate the BSEE District Manager. BSEE is also costs; requirement to submit certification that clarifying that the District Manager must • Subpart D (1014–0018, expiration you have a real-time monitoring plan review and approve proposed remedial 3/31/2021) will increase the annual that meets the criteria listed. This will actions. This will increase the annual burden by +40 hours (+40 due to this decrease the annual hour burden by 125 hour burden by 40 hours (see rulemaking) and increase +$16,000 hours (see Discussion of Final Rule Discussion of Final Rule Requirements annual non-hour costs for ITP; Requirements above). above).

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§ 250.462(e)(1) will add Independent Discussion of Final Rule Requirements (FONSI) for the rule, therefore the Third Party costs increasing the non- above). preparation of an environmental impact hour cost burdens by $8,000 per New § 250.732(d) requires operators statement pursuant to NEPA is not notification (total of $16,000 annual to make all documentation that required. A copy of the final EA and non-hour costs) (see Discussion of Final demonstrates compliance with the FONSI can be viewed at Rule Requirements above). requirements of this section available to www.regulations.gov (use the keyword/ § 250.1722 will direct the submittal of BSEE upon request; increasing the ID ‘‘BSEE–2018–0002’’). annual hour burden by 40 hours (see the trawl test report to the End of Data Quality Act Operations Report (EOR) rather than an Discussion of Final Rule Requirements APM. Burden hours associated with above). In developing this rule, we did not Subpart Q are already covered under Old § 250.732(d) will eliminate the conduct or use a study, experiment, or EOR reporting. Any reductions/ submission of Mechanical Integrity survey requiring peer review under the increases will be shown during the Assessment Reports; decreasing the Data Quality Act (Pub. L. 106–554, app. renewal process (see Discussion of Final annual hour burden by 900 hours (see C, sec. 515, 114 Stat. 2763, 2763A–153– Rule Requirements above). Discussion of Final Rule Requirements 154). above). Subpart G 1014–0028 § 250.737(a)(4) and (d)(10) (test Effects on the Nation’s Energy Supply § 250.720(a)(3) will require operators frequency for function test shear rams) (E.O. 13211) will increase the annual hour burden by submit a revised permit with a written This final rule is not a significant 75 hours. BSEE is requiring operators statement from an independent third energy action under the definition in that wish to request approval for a 21- party certifying that the previous E.O. 13211. Although the rule is a day BOP testing frequency, demonstrate certification remains valid and to significant regulatory action under E.O. the development of a BOP health request and receive District Manager 12866, it is not likely to have a monitoring plan (including, but not approval before resuming operations significant adverse effect on the supply, limited to, information/requirements after unlatching the BOP or LMRP. This distribution, or use of energy. A such as condition monitoring tool; will increase the annual hour burden by Statement of Energy Effects is not failure propagation analysis; a failure 13 hours (see Discussion of Final Rule required. Requirements above). tracking and resolution system that § 250.720(d) was proposed but had includes detailed failure reports and Severability been inadvertently omitted from the identification of recurring problems). In addition, this will increase annual hour If a court holds any provisions of this information collection. The requirement final rule or their applicability to any is new and will require operators to burdens by 100 hours to submit quarterly reports of the data collected persons or circumstances invalid, the identify and make available for BSEE remainder of the provisions and their inspection, specified equipment used with the health monitoring plan to the BSEE Regional Supervisor, District Field applicability to other people or solely for intervention operations. This circumstances will not be affected. will increase the annual hour burden by Operations (see Discussion of Final Rule 10 hours (see Discussion of Final Rule Requirements above). List of Subjects in 30 CFR Part 250 § 250.737(d)(5) will allow for Requirements above). alternating tests between two control Administrative practice and § 250.722(a)(2) will require operators stations. This will increase the annual procedure, Continental shelf, to document successful pressure test in hour burden by 25 hours (see Continental Shelf—mineral resources, the Well Activity Report (WAR). This Discussion of Final Rule Requirements Continental Shelf—rights-of-way, will increase the annual hour burden by above). Environmental impact statements, 150 hours (see Discussion of Final Rule § 250.751 will include the coiled Environmental protection, Government Requirements above). tubing testing and recording contracts, Incorporation by reference, § 250.730(c)(2) will increase the requirements that were inadvertently Investigations, Oil and gas exploration, annual hour burden by 5 hours. Based removed in the original Well Control Penalties, Pipelines, Reporting and on comments received BSEE is Rule. This will increase the annual hour recordkeeping requirements, Sulfur. clarifying how to request an extension burden by 3,630 hours (see Discussion Joseph R. Balash, to the failure analysis timeframe. of Final Rule Requirements above). Furthermore, they must submit an Once this rule becomes effective, Assistant Secretary—Land and Minerals Management, U.S. Department of the Interior. extension request to the Chief, Office of BSEE will use the current OMB control Offshore Regulatory Programs, detailing numbers for the affected subparts For the reasons stated in the how the investigation and analysis will discussed and will have their preamble, the Bureau of Safety and get completed to BSEE for approval (see information collection burdens adjusted Environmental Enforcement (BSEE) Discussion of Final Rule Requirements accordingly through the renewal amends 30 CFR part 250 as follows: above). process. New § 250.732(a) will add PART 250—OIL AND GAS AND Independent Third Party costs, National Environmental Policy Act of SULFUR OPERATIONS IN THE OUTER increasing the non-hour cost burdens by 1969 (NEPA) CONTINENTAL SHELF $5,100 per verification (total increase is BSEE has prepared a final $765,000 annual non-hour costs) (see environmental assessment (EA) that ■ 1. The authority citation for part 250 Discussion of Final Rule Requirements concludes that this final rule will not continues to read as follows: above). have a significant impact on the quality Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, Old § 250.732(a) will eliminate the of the human environment under the 33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334. requirement to request and submit for National Environmental Policy Act of approval all relevant information to 1969 (NEPA) (42 U.S.C. 4321 et seq.). Subpart A—General become a BAVO. This will decrease the The final EA supports the issuance of a annual hour burden by 700 hours (see Finding of No Significant Impact ■ 2. Add § 250.115 to read as follows:

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§ 250.115 What are the procedures for, and available for inspection at the National Protection, incorporated by reference at effects of, incorporation of documents by Archives and Records Administration § 250.490. reference in this part? (NARA). To make an appointment to (e) American Petroleum Institute For the documents incorporated by inspect incorporated material at the (API), API Recommended Practices (RP), reference in this part: Houston BSEE office, call 1–844–259– Specs, Standards, Manual of Petroleum (a) Incorporation by reference of a 4779. For information on the availability Measurement Standards (MPMS) document is limited to the edition of the of this material at NARA, call 202–741– chapters, 1220 L Street, NW, document, or the specific edition and 6030 or go to http://www.archives.gov/ Washington, DC 20005–4070; http:// supplement or addendum, that is cited federal-register/cfr/ibr-locations.html. www.api.org; phone: 202–682–8000: in § 250.198. Future amendments or (a) American Concrete Institute (ACI), (1) API 510, Pressure Vessel revisions of the incorporated document ACI Standards, 38800 Country Club Inspection Code: In-Service Inspection, are not included. BSEE will publish any Drive, Farmington Hills, MI 48331– Rating, Repair, and Alteration, Tenth changes to the incorporation of the 3439: http://www.concrete.org; phone: Edition, May 2014; Addendum 1, May document in the Federal Register and 248–848–3700: 2017; incorporated by reference at amend § 250.198 as appropriate. (1) ACI Standard 318–95, Building §§ 250.851(a) and 250.1629(b); (b) BSEE may make a rule amending Code Requirements for Reinforced (2) API 570, Piping Inspection Code: the incorporation of a document Concrete, 1995; incorporated by In-service Inspection, Rating, Repair, effective without prior opportunity for reference at § 250.901. and Alteration of Piping Systems, public comment when BSEE (2) ACI 318R–95, Commentary on Fourth Edition, February 2016; determines: Building Code Requirements for Addendum 1, May 2017; incorporated (1) That the revisions to the document Reinforced Concrete, 1995; incorporated by reference at § 250.841(b). result in safety improvements or by reference at § 250.901. (3) API Bulletin 2INT–DG, Interim represent new industry standard (3) ACI 357R–84, Guide for the Design Guidance for Design of Offshore technology and do not impose undue and Construction of Fixed Offshore Structures for Hurricane Conditions, costs on the affected parties; and Concrete Structures, 1984; reapproved May 2007; incorporated by reference at (2) BSEE meets the requirements for 1997, incorporated by reference at § 250.901; making a rule immediately effective § 250.901. (4) API Bulletin 2INT–EX, Interim under 5 U.S.C. 553. Guidance for Assessment of Existing (b) American Gas Association (AGA (c) The effect of incorporation by Offshore Structures for Hurricane Reports), 400 North Capitol Street NW, reference of a document into the Conditions, May 2007; incorporated by Suite 450, Washington, DC 20001, regulations in this part is that the reference at § 250.901; http://www.aga.org; phone: 202–824– incorporated document is a (5) API Bulletin 2INT–MET, Interim 7000; requirement. When a section in this part Guidance on Hurricane Conditions in (1) AGA Report No. 7—Measurement refers to an incorporated document, you the Gulf of Mexico, May 2007; of Natural Gas by Turbine Meters; are responsible for complying with the incorporated by reference at § 250.901; provisions of that entire document, Revised February 2006; incorporated by (6) API Bulletin 92L, Drilling Ahead except to the extent that the section that reference at § 250.1203(b); Safely with Lost Circulation in the Gulf refers to the document provides (2) AGA Report No. 9—Measurement of Mexico, First Edition, August 2015; otherwise. When a section in this part of Gas by Multipath Ultrasonic Meters; incorporated by reference at refers to a part of an incorporated Second Edition, April 2007; § 250.427(b); document, you are responsible for incorporated by reference at (7) API MPMS Chapter 1— complying with that part of the § 250.1203(b); Vocabulary, Second Edition, July 1994; document as provided in that section. (3) AGA Report No. 10—Speed of incorporated by reference at § 250.1201; (d) Under §§ 250.141 and 250.142, Sound in Natural Gas and Other Related (8) API MPMS Chapter 2—Tank you may comply with a later edition of Hydrocarbon Gases; Copyright 2003; Calibration, Section 2A—Measurement a specific document incorporated by incorporated by reference at and Calibration of Upright Cylindrical reference, provided: § 250.1203(b). Tanks by the Manual Tank Strapping (1) You show that complying with the (c) American Institute of Steel Method, First Edition, February 1995; later edition provides a degree of Construction, Inc. (AISC), AISC reaffirmed February 2007; incorporated protection, safety, or performance equal Standards, One East Wacker Drive, Suite by reference at § 250.1202; to or better than would be achieved by 700, Chicago, IL 60601–1802; http:// (9) API MPMS Chapter 2—Tank compliance with the listed edition; and www.aisc.org; phone: 312–670–2400: Calibration, Section 2B—Calibration of (2) You obtain prior written approval (1) ANSI/AISC 360–05, Specification Upright Cylindrical Tanks Using the for alternative compliance from the for Structural Steel Buildings, Optical Reference Line Method, First authorized BSEE official. incorporated by reference at § 250.901. Edition, March 1989; reaffirmed, ■ 3. Revise § 250.198 to read as follows: (2) [Reserved] December 2007; incorporated by (d) American National Standards reference at § 250.1202; § 250.198 Documents incorporated by Institute (ANSI), http.www./ (10) API MPMS Chapter 3—Tank reference. webstore.ansi.org/; phone: 212–642– Gauging, Section 1A—Standard Practice Certain material is incorporated by 4900: for the Manual Gauging of Petroleum reference into this part with the (1) ANSI/ASME B 16.5–2003, Pipe and Petroleum Products, Second approval of the Director of the Federal Flanges and Flanged Fittings, Edition, August 2005; incorporated by Register under 5 U.S.C. 552(a) and 1 incorporated by reference at § 250.1002; reference at § 250.1202; CFR part 51. All incorporated material (2) ANSI/ASME B 31.8–2003, Gas (11) API MPMS Chapter 3—Tank is available for inspection at the Transmission and Distribution Piping Gauging, Section 1B—Standard Practice Houston BSEE office at 1919 Smith Systems, incorporated by reference at for Level Measurement of Liquid Street Suite 14042, Houston, Texas § 250.1002; Hydrocarbons in Stationary Tanks by 77002 and is available from the sources (3) ANSI Z88.2–1992, American Automatic Tank Gauging, Second indicated in this section. It is also National Standard for Respiratory Edition, June 2001; reaffirmed, October

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2006; incorporated by reference at Hydrocarbons by Ultrasonic Flow (36) API MPMS Chapter 10— § 250.1202; Meters Using Transit Time Technology; Sediment and Water, Section 3— (12) API MPMS Chapter 4—Proving First Edition, February 2005; Standard Test Method for Water and Systems, Section 1—Introduction, Third incorporated by reference at Sediment in Crude Oil by the Centrifuge Edition, February 2005; incorporated by § 250.1202(a); Method (Laboratory Procedure), Third reference at § 250.1202; (26) API MPMS Chapter 6—Metering Edition, May 2008; incorporated by (13) API MPMS Chapter 4—Proving Assemblies, Section 1—Lease reference at § 250.1202; Systems, Section 2—Displacement Automatic Custody Transfer (LACT) (37) API MPMS Chapter 10— Provers, Third Edition, September 2003; Systems, Second Edition, May 1991; Sediment and Water, Section 4— incorporated by reference at § 250.1202; reaffirmed, April 2007; incorporated by Determination of Water and/or (14) API MPMS Chapter 4—Proving reference at § 250.1202; Sediment in Crude Oil by the Centrifuge Systems, Section 4—Tank Provers, (27) API MPMS Chapter 6—Metering Method (Field Procedure), Third Second Edition, May 1998, reaffirmed Assemblies, Section 6—Pipeline Edition, December 1999; incorporated November 2005; incorporated by Metering Systems, Second Edition, May by reference at § 250.1202; reference at § 250.1202; 1991; reaffirmed, February 2007; (38) API MPMS Chapter 10— (15) API MPMS Chapter 4—Proving incorporated by reference at § 250.1202; Sediment and Water, Section 9— Systems, Section 5—Master-Meter (28) API MPMS Chapter 6—Metering Standard Test Method for Water in Provers, Second Edition, May 2000, Assemblies, Section 7—Metering Crude Oils by Coulometric Karl Fischer reaffirmed, August 2005; incorporated Viscous Hydrocarbons, Second Edition, Titration, Second Edition, December by reference at § 250.1202; May 1991; reaffirmed, April 2007; 2002; reaffirmed 2005; incorporated by (16) API MPMS Chapter 4—Proving incorporated by reference at § 250.1202; reference at § 250.1202; Systems, Section 6—Pulse Interpolation, (29) API MPMS Chapter 7— (39) API MPMS Chapter 11.1— Second Edition, May 1999; reaffirmed Temperature Determination, First Volume Correction Factors, Volume 1, 2003; incorporated by reference at Edition, June 2001; reaffirmed, March Table 5A—Generalized Crude Oils and § 250.1202; 2007; incorporated by reference at JP–4 Correction of Observed API Gravity (17) API MPMS Chapter 4—Proving § 250.1202; to API Gravity at 60 °F, and Table 6A— Systems, Section 7—Field Standard Test (30) API MPMS Chapter 8—Sampling, Generalized Crude Oils and JP–4 Measures, Second Edition, December Section 1—Standard Practice for Correction of Volume to 60 °F Against 1998; reaffirmed 2003; incorporated by Manual Sampling of Petroleum and API Gravity at 60 °F, API Standard 2540, reference at § 250.1202; Petroleum Products, Third Edition, First Edition, August 1980; reaffirmed (18) API MPMS Chapter 4—Proving October 1995; reaffirmed, March 2006; March 1997; incorporated by reference Systems, Section 8—Operation of incorporated by reference at § 250.1202; at § 250.1202; Proving Systems; First Edition, (31) API MPMS Chapter 8—Sampling, (40) API MPMS Chapter 11.2.2— reaffirmed March 2007; incorporated by Section 2—Standard Practice for Compressibility Factors for reference at § 250.1202(a), (f), and (g); Automatic Sampling of Liquid Hydrocarbons: 0.350–0.637 Relative (19) API MPMS Chapter 5—Metering, Petroleum and Petroleum Products, Density (60 °F/60 °F) and ¥50 °F to Section 1—General Considerations for Second Edition, October 1995; 140 °F Metering Temperature, Second Measurement by Meters, Fourth Edition, reaffirmed, June 2005; incorporated by Edition, October 1986; reaffirmed: September 2005; incorporated by reference at § 250.1202; December 2007; incorporated by reference at § 250.1202; (32) API MPMS Chapter 9—Density reference at § 250.1202; (20) API MPMS Chapter 5—Metering, Determination, Section 1—Standard (41) API MPMS Chapter 11—Physical Section 2—Measurement of Liquid Test Method for Density, Relative Properties Data, Section 1— Hydrocarbons by Displacement Meters, Density (Specific Gravity), or API Temperature and Pressure Volume Third Edition, September 2005; Gravity of Crude Petroleum and Liquid Correction Factors for Generalized incorporated by reference at § 250.1202; Petroleum Products by Hydrometer Crude Oils, Refined Products, and (21) API MPMS Chapter 5—Metering, Method, Second Edition, December Lubricating Oils; May 2004 Section 3—Measurement of Liquid 2002; reaffirmed October 2005; (incorporating Addendum 1, September Hydrocarbons by Turbine Meters, Fifth incorporated by reference at 2007); incorporated by reference at Edition, September 2005; incorporated § 250.1202(a) and (l); § 250.1202(a), (g), and (l); by reference at § 250.1202; (33) API MPMS Chapter 9—Density (42) API MPMS Chapter 11—Physical (22) API MPMS Chapter 5—Metering, Determination, Section 2—Standard Properties Data, Addendum to Section Section 4—Accessory Equipment for Test Method for Density or Relative 2, Part 2—Compressibility Factors for Liquid Meters, Fourth Edition, Density of Light Hydrocarbons by Hydrocarbons, Correlation of Vapor September 2005; incorporated by Pressure Hydrometer, Second Edition, Pressure for Commercial Natural Gas reference at § 250.1202; March 2003; incorporated by reference Liquids, First Edition, December 1994; (23) API MPMS Chapter 5—Metering, at § 250.1202; reaffirmed, December 2002; Section 5—Fidelity and Security of (34) API MPMS Chapter 10— incorporated by reference at § 250.1202; Flow Measurement Pulsed-Data Sediment and Water, Section 1— (43) API MPMS Chapter 12— Transmission Systems, Second Edition, Standard Test Method for Sediment in Calculation of Petroleum Quantities, August 2005; incorporated by reference Crude Oils and Fuel Oils by the Section 2—Calculation of Petroleum at § 250.1202; Extraction Method, Third Edition, Quantities Using Dynamic Measurement (24) API MPMS Chapter 5—Metering, November 2007; incorporated by Methods and Volumetric Correction Section 6—Measurement of Liquid reference at § 250.1202; Factors, Part 1—Introduction, Second Hydrocarbons by Coriolis Meters; First (35) API MPMS Chapter 10— Edition, May 1995; reaffirmed March Edition, reaffirmed, March 2008; Sediment and Water, Section 2— 2002; incorporated by reference at incorporated by reference at Standard Test Method for Water in § 250.1202; § 250.1202(a); Crude Oil by Distillation, Second (44) API MPMS Chapter 12— (25) API MPMS Chapter 5—Metering, Edition, November 2007; incorporated Calculation of Petroleum Quantities, Section 8—Measurement of Liquid by reference at § 250.1202; Section 2—Calculation of Petroleum

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Quantities Using Dynamic Measurement Edition, September 1993; reaffirmed Installation, and Maintenance of Methods and Volumetric Correction October 2006; incorporated by reference Synthetic Fiber Ropes for Offshore Factors, Part 2—Measurement Tickets, at § 250.1202; Mooring, First Edition, March 2001, Third Edition, June 2003; incorporated (54) API MPMS Chapter 21—Flow Addendum, May 2007; incorporated by by reference at § 250.1202; Measurement Using Electronic Metering reference at §§ 250.800(c) and (45) API MPMS Chapter 12— Systems, Section 1—Electronic Gas 250.901(a) and (d); Calculation of Petroleum Quantities, Measurement, First Edition, August (65) API RP 2T, Recommended Section 2—Calculation of Petroleum 1993; reaffirmed, July 2005; Practice for Planning, Designing, and Quantities Using Dynamic Measurement incorporated by reference at § 250.1203; Constructing Tension Leg Platforms, Methods and Volumetric Correction (55) API MPMS Chapter 21—Flow Second Edition, August 1997; Factors, Part 3—Proving Reports; First Measurement Using Electronic Metering incorporated by reference at § 250.901(a) Edition, reaffirmed 2009; incorporated Systems, Section 2—Electronic Liquid and (d); by reference at § 250.1202(a) and (g); Volume Measurement Using Positive (66) ANSI/API RP 14B, Design, (46) API MPMS Chapter 12— Displacement and Turbine Meters; First Installation, Operation, Test, and Calculation of Petroleum Quantities, Edition, June 1998; incorporated by Redress of Subsurface Safety Valve Section 2—Calculation of Petroleum reference at § 250.1202(a); Systems, Sixth Edition, September 2015; Quantities Using Dynamic Measurement (56) API MPMS Chapter 21—Flow incorporated by reference at Methods and Volumetric Correction Measurement Using Electronic Metering §§ 250.802(b), 250.803(a), 250.814(d), Factors, Part 4—Calculation of Base Systems, Addendum to Section 2—Flow 250.828(c), and 250.880(c); Prover Volumes by the Waterdraw Measurement Using Electronic Metering (67) API RP 14C, Recommended Method, First Edition, December 1997; Systems, Inferred Mass; First Edition, Practice for Analysis, Design, reaffirmed, 2009; incorporated by reaffirmed February 2006; incorporated Installation, and Testing of Basic reference at § 250.1202(a), (f), and (g); by reference at § 250.1202(a); Surface Safety Systems for Offshore (47) API MPMS Chapter 14—Natural (57) API RP 2A–WSD, Recommended Production Platforms, Seventh Edition, Gas Fluids Measurement, Section 3— Practice for Planning, Designing and March 2001, reaffirmed: March 2007; Concentric, Square-Edged Orifice Constructing Fixed Offshore Platforms— incorporated by reference at Meters, Part 1—General Equations and Working Stress Design, Twenty-first §§ 250.125(a), 250.292(j), 250.841(a), Uncertainty Guidelines, Third Edition, Edition, December 2000; Errata and 250.842(a), 250.850, 250.852(a), September 1990; reaffirmed, January Supplement 1, December 2002; Errata 250.855, 250.856(a), 250.858(a), 2003; incorporated by reference at and Supplement 2, September 2005; 250.862(e), 250.865(a), 250.867(a), § 250.1203; Errata and Supplement 3, October 2007; 250.869(a) through (c), 250.872(a), (48) API MPMS Chapter 14—Natural incorporated by reference at §§ 250.901, 250.873(a), 250.874(a), 250.880(b) and Gas Fluids Measurement, Section 3— 250.908, 250.919, and 250.920; (c), 250.1002(d), 250.1004(b), Concentric, Square-Edged Orifice (58) API RP 2D, Operation and 250.1628(c) and (d), 250.1629(b), and Meters, Part 2—Specification and Maintenance of Offshore Cranes, Sixth 250.1630(a); Installation Requirements, Fourth Edition, May 2007; incorporated by (68) API RP 14E, Recommended Edition, April 2000; reaffirmed March reference at § 250.108; Practice for Design and Installation of 2006; incorporated by reference at (59) API RP 2FPS, RP for Planning, Offshore Production Platform Piping § 250.1203; Designing, and Constructing Floating (49) API MPMS Chapter 14—Natural Production Systems; First Edition, Systems, Fifth Edition, October 1991; Gas Fluids Measurement, Section 3— March 2001; incorporated by reference reaffirmed, January 2013; incorporated Concentric, Square-Edged Orifice at § 250.901; by reference at §§ 250.841(b), Meters; Part 3—Natural Gas (60) API RP 2I, In-Service Inspection 250.842(a), and 250.1628(b) and (d); Applications; Third Edition, August of Mooring Hardware for Floating (69) API RP 14F, Recommended 1992; Errata March 1994, reaffirmed, Structures; Third Edition, April 2008; Practice for Design, Installation, and February 2009; incorporated by incorporated by reference at § 250.901(a) Maintenance of Electrical Systems for reference at § 250.1203; and (d); Fixed and Floating Offshore Petroleum (50) API MPMS Chapter 14.5/GPA (61) ANSI/API RP 2N, Third Edition, Facilities for Unclassified and Class 1, Standard 2172–09; Calculation of Gross ‘‘Recommended Practice for Planning, Division 1 and Division 2 Locations, Heating Value, Relative Density, Designing, and Constructing Structures Upstream Segment, Fifth Edition, July Compressibility and Theoretical and Pipelines for Arctic Conditions’’, 2008, reaffirmed: April 2013; Hydrocarbon Liquid Content for Natural Third Edition, April 2015; incorporated incorporated by reference at Gas Mixtures for Custody Transfer; by reference at § 250.470(g); §§ 250.114(c), 250.842(c), 250.862(e), Third Edition, January 2009; (62) API RP 2RD, Recommended and 250.1629(b); incorporated by reference at § 250.1203; Practice for Design of Risers for Floating (70) API RP 14FZ, Recommended (51) API MPMS Chapter 14—Natural Production Systems (FPSs) and Practice for Design, Installation, and Gas Fluids Measurement, Section 6— Tension-Leg Platforms (TLPs), First Maintenance of Electrical Systems for Continuous Density Measurement, Edition, June 1998; reaffirmed, May Fixed and Floating Offshore Petroleum Second Edition, April 1991; reaffirmed, 2006, Errata, June 2009; incorporated by Facilities for Unclassified and Class I, February 2006; incorporated by reference at §§ 250.733, 250.800(c), Zone 0, Zone 1 and Zone 2 Locations, reference at § 250.1203; 250.901(a), (d), and 250.1002(b); Second Edition, May 2013; incorporated (52) API MPMS Chapter 14—Natural (63) API RP 2SK, Design and Analysis by reference at §§ 250.114(c), 250.842(c), Gas Fluids Measurement, Section 8— of Stationkeeping Systems for Floating 250.862(e), and 250.1629(b); Liquefied Petroleum Gas Measurement, Structures, Third Edition, October 2005, (71) API RP 14G, Recommended Second Edition, July 1997; reaffirmed, Addendum, May 2008, reaffirmed June Practice for Fire Prevention and Control March 2006; incorporated by reference 2015; incorporated by reference at on Fixed Open-type Offshore at § 250.1203; §§ 250.800(c) and 250.901(a) and (d); Production Platforms, Fourth Edition, (53) API MPMS Chapter 20—Section (64) API RP 2SM, Recommended April 2007; Reaffirmed, January 2013; 1—Allocation Measurement, First Practice for Design, Manufacture, incorporated by reference at

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§§ 250.859(a), 250.862(e), 250.880(c), Equipment, Twentieth Edition, October Equipment, Second Edition, May 2011; and 250.1629(b); 2010; Addendum 1, November 2011; incorporated by reference at § 250.730; (72) API RP 14J, Recommended Errata 2, November 2011; Addendum 2, (92) ANSI/API Spec. 17J, Practice for Design and Hazards November 2012; Addendum 3, March Specification for Unbonded Flexible Analysis for Offshore Production 2013; Errata 3, June 2013; Errata 4, Pipe, Third Edition, July 2008, Facilities, Second Edition, May 2001; August 2013; Errata 5, November 2013; incorporated by reference at reaffirmed: January 2013; incorporated Errata 6, March 2014; Errata 7, §§ 250.852(e), 250.1002(b), and by reference at §§ 250.800(b) and (c), December 2014; Errata 8, February 2016; 250.1007(a). 250.842(c), and 250.901(a) and (d); Addendum 4, June 2016; Errata 9, June (93) ANSI/API Spec. Q1, Specification (73) API RP 17H, Remotely Operated 2016; Errata 10, August 2016; for Quality Management System Tools and Interfaces on Subsea incorporated by reference at §§ 250.730, Requirements for Manufacturing Production Systems, Second Edition, 250.802(a), 250.803(a), 250.833, Organizations for the Petroleum and June 2013; Errata, January 2014; 250.873(b), 250.874(g), and 250.1002(b); Natural Gas Industry, Ninth Edition, incorporated by reference at (83) API Spec. 6AV1, Specification for June 2013; Errata, February 2014; Errata § 250.734(a); Verification Test of Wellhead Surface 2, March 2014; Addendum 1, June 2016; (74) API RP 65, Recommended Safety Valves and Underwater Safety incorporated by reference at §§ 250.730 Practice for Cementing Shallow Water Valves for Offshore Service, Second and 250.801(b) and (c); Flow Zones in Deepwater Wells, First Edition, February 2013; incorporated by (94) API Standard 53, Blowout Edition, September 2002; incorporated reference at §§ 250.802(a), 250.833, Prevention Equipment Systems for by reference at § 250.415; 250.873(b), and 250.874(g); Drilling Wells, Fourth Edition, (75) API RP 75, Recommended (84) API STD 6AV2, Installation, November 2012, Addendum 1, July Practice for Development of a Safety and Maintenance, and Repair of Surface 2016, incorporated by reference at Environmental Management Program for Safety Valves and Underwater Safety §§ 250.730, 250.734, 250.735, 250.736, Offshore Operations and Facilities, Valves Offshore; First Edition, March 250.737, and 250.739; Third Edition, May 2004, reaffirmed 2014; Errata 1, August 2014; (95) API Standard 65—Part 2, May 2008; incorporated by reference at incorporated by reference at §§ 250.820, Isolating Potential Flow Zones During §§ 250.1900, 250.1902, 250.1903, 250.834, 250.836, and 250.880(c) Well Construction; Second Edition, 250.1909, 250.1920; (85) ANSI/API Spec. 6D, Specification December 2010; incorporated by (76) API RP 86, API Recommended for Pipeline Valves, Twenty-third reference at §§ 250.415(f) and Practice for Measurement of Multiphase Edition, April 2008; Effective Date: 250.420(a); Flow; First Edition, September 2005; October 1, 2008, Errata 1, June 2008; (96) API Standard 2552, USA incorporated by reference at Errata 2, November 2008; Errata 3, Standard Method for Measurement and §§ 250.1202(a) and 250.1203(b); February 2009; Addendum 1, October Calibration of Spheres and Spheroids, (77) API RP 90, Annular Casing 2009; Contains API Monogram Annex as First Edition, 1966; reaffirmed, October Pressure Management for Offshore Part of U.S. National Adoption; ISO 2007; incorporated by reference at Wells, First Edition, August 2006; 14313:2007 (Identical), Petroleum and § 250.1202; incorporated by reference at § 250.519; natural gas industries—Pipeline (97) API Standard 2555, Method for (78) API RP 500, Recommended transportation systems—Pipeline valves; Liquid Calibration of Tanks, First Practice for Classification of Locations incorporated by reference at Edition, September 1966; reaffirmed for Electrical Installations at Petroleum § 250.1002(b); March 2002; incorporated by reference Facilities Classified as Class I, Division (86) ANSI/API Spec. 11D1, Packers at § 250.1202; 1 and Division 2, Third Edition, and Bridge Plugs, Second Edition, July (f) American Society of Mechanical December 2012; Errata January 2014, 2009; incorporated by reference at Engineers (ASME), 22 Law Drive, P.O. incorporated by reference at §§ 250.518, 250.619, and 250.1703; Box 2900, Fairfield, NJ 07007–2900; §§ 250.114(a), 250.459, 250.842(a), (87) ANSI/API Spec. 14A, http://www.asme.org; phone: 1–800– 250.862(a) and (e), 250.872(a), Specification for Subsurface Safety 843–2763. 250.1628(b) and (d), and 250.1629(b); Valve Equipment, Eleventh Edition, (1) 2017 ASME Boiler and Pressure (79) API RP 505, Recommended October 2005, reaffirmed, June 2012; Vessel Code (BPVC), Section I, Rules for Practice for Classification of Locations incorporated by reference at §§ 250.802 Construction of Power Boilers, 2017 for Electrical Installations at Petroleum and 250.803(a); Edition, July 1, 2017, incorporated by Facilities Classified as Class I, Zone 0, (88) ANSI/API Spec. 16A, reference at §§ 250.851(a) and Zone 1, and Zone 2, First Edition, Specification for Drill-through 250.1629(b). November 1997; reaffirmed, August Equipment, Third Edition, June 2004, (2) 2017 ASME Boiler and Pressure 2013; incorporated by reference at reaffirmed August 2010; incorporated by Vessel Code, Section IV, Rules for §§ 250.114(a), 250.459, 250.842(a), reference at § 250.730; Construction of Heating Boilers, 2017 250.862(a) and (e), 250.872(a), (89) ANSI/API Spec. 16C, Edition, July 1, 2017, incorporated by 250.1628(b) and (d), and 250.1629(b); Specification for Choke and Kill reference at §§ 250.851(a) and (80) API RP 2556, Recommended Systems, First Edition, January 1993, 250.1629(b). Practice for Correcting Gauge Tables for reaffirmed July 2010; incorporated by (3) 2017 ASME Boiler and Pressure Incrustation, Second Edition, August reference at § 250.730; Vessel Code, Section VIII, Rules for 1993; reaffirmed November 2003; (90) API Spec. 16D, Specification for Construction of Pressure Vessels; incorporated by reference at § 250.1202; Control Systems for Drilling Well Division 1, 2017 Edition; July 1, 2017, (81) API Spec. 2C, Specification for Control Equipment and Control Systems incorporated by reference at Offshore Pedestal Mounted Cranes, for Diverter Equipment, Second Edition, §§ 250.851(a) and 250.1629(b). Sixth Edition, March 2004, Effective July 2004, reaffirmed August 2013; (4) 2017 ASME Boiler and Pressure Date: September 2004; incorporated by incorporated by reference at § 250.730; Vessel Code, Section VIII, Rules for reference at § 250.108; (91) ANSI/API Spec. 17D, Design and Construction of Pressure Vessels; (82) ANSI/API Spec. 6A, Specification Operation of Subsea Production Division 2: Alternative Rules, 2017 for Wellhead and Christmas Tree Systems—Subsea Wellhead and Tree Edition, July 1, 2017, incorporated by

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reference at §§ 250.851(a) and Petroleum Production; incorporated by (1) A detailed description and 250.1629(b). reference at § 250.901. drawings of the FSHR, buoy, and the (5) 2017 ASME Boiler and Pressure (j) International Organization for associated connection system; Vessel Code, Section VIII, Rules for Standardization (ISO), 1, ch. de la Voie- (2) Detailed information regarding the Construction of Pressure Vessels; Creuse, CP 56, CH–1211, Geneva 20, system used to connect the FSHR to the Division 3: Alternative Rules for Switzerland; www.iso.org; phone: 41– buoyancy air can, and associated Construction of High Pressure Vessels, 22–749–01–11: redundancies; and (1) ISO/IEC (International 2017 Edition, July 1, 2017, incorporated (3) Descriptions of your monitoring Electrotechnical Commission) 17011, by reference at §§ 250.851(a) and system and monitoring plan to monitor Conformity assessment—General 250.1629(b). the pipeline FSHR and the associated requirements for accreditation bodies (g) American Society for Testing and connection system for fatigue, stress, accrediting conformity assessment Materials (ASTM), ASTM Standards, and any other abnormal condition (e.g., bodies, First edition 2004–09–01; 100 Bar Harbor Drive, P.O. Box C700, corrosion) that may negatively impact West Conshohocken, PA 19428–2959; Corrected version 2005–02–15; incorporated by reference at the riser system’s integrity. http://www.astm.org; phone: 1–877– * * * * * 909–2786: §§ 250.1900, 250.1903, 250.1904, and 250.1922. (1) ASTM Standard C 33–07, Subpart D—Oil and Gas Drilling approved December 15, 2007, Standard (2) ISO/IEC 17021–1, Conformity assessment—Requirements for bodies Operations Specification for Concrete Aggregates; providing audit and certification of incorporated by reference at § 250.901; ■ management systems—Part 1: 5. Amend § 250.413 by revising (2) ASTM Standard C 94/C 94M–07, Requirements, First Edition, June 2015, paragraph (g) to read as follows: approved January 1, 2007, Standard incorporated by reference at Specification for Ready-Mixed Concrete; § 250.413 What must my description of § 250.730(d). incorporated by reference at § 250.901; well drilling design criteria address? (3) [Reserved] * * * * * (3) ASTM Standard C 150–07, (k) Center for Offshore Safety (COS), approved May 1, 2007, Standard 1990 Post Oak Blvd., Suite 1370, (g) A single plot containing curves for Specification for Portland Cement; Houston, TX 77056; estimated pore pressures, formation incorporated by reference at § 250.901; www.centerforoffshoresafety.org; phone: fracture gradients, proposed drilling (4) ASTM Standard C 330–05, 832–495–4925. fluid weights (surface and downhole), approved December 15, 2005, Standard (1) COS Safety Publication COS–2–01, planned safe drilling margin, and casing Specification for Lightweight Aggregates Qualification and Competence setting depths in true vertical for Structural Concrete; incorporated by Requirements for Audit Teams and measurements; reference at § 250.901; Auditors Performing Third-party SEMS * * * * * (5) ASTM Standard C 595–08, Audits of Deepwater Operations, First ■ 6. Amend § 250.414 by revising approved January 1, 2008, Standard Edition, Effective Date October 2012; paragraphs (c)(2) and (c)(3) to read as Specification for Blended Hydraulic incorporated by reference at follows: Cements; incorporated by reference at §§ 250.1900, 250.1903, 250.1904, and § 250.901; 250.1921. § 250.414 What must my drilling prognosis (h) American Welding Society (2) COS Safety Publication COS–2–03, include? (AWS), AWS Codes, 8669 NW 36 Street, Requirements for Third-party SEMS * * * * * #130, Miami, FL 33126; http:// Auditing and Certification of Deepwater (c) * * * Operations, First Edition, Effective Date www.aws.org;phone: 800–443–9353: (2) In lieu of meeting the criteria in October 2012; incorporated by reference (1) AWS D1.1:2000, Structural paragraph (c)(1)(ii) of this section, you at §§ 250.1900, 250.1903, 250.1904, and Welding Code—Steel, 17th Edition, may use an equivalent downhole mud 250.1920. October 18, 1999; incorporated by weight as specified in your APD, (3) COS Safety Publication COS–2–04, reference at § 250.901; provided that you submit adequate Requirements for Accreditation of Audit (2) AWS D1.4–98, Structural Welding documentation (such as risk modeling Service Providers Performing SEMS Code—Reinforcing Steel, 1998 Edition; data, off-set well data, analog data, Audits and Certification of Deepwater incorporated by reference at § 250.901; seismic data) to justify the alternative Operations, First Edition, Effective Date (3) AWS D3.6M:1999, Specification equivalent downhole mud weight. You October 2012; incorporated by reference for Underwater Welding (1999); may submit such justification in at §§ 250.1900, 250.1903, 250.1904, and incorporated by reference at § 250.901. advance of your full APD, and BSEE 250.1922. (i) National Association of Corrosion may consider such justification for Engineers (NACE) International, NACE Subpart B—Plans and Information approval when submitted. Any such Standards, Park Ten Place, Houston, TX approval will be contingent upon your 77084; http://www.nace.org; phone: ■ 4. Amend § 250.292 by revising confirmation in the APD that your plans 281–228–6200: paragraph (p) to read as follows: and the information underlying your (1) NACE Standard MR0175–2003, approved justification have not § 250.292 What must the DWOP contain? Standard Material Requirements, Metals changed. for Sulfide Stress Cracking and Stress * * * * * (3) When determining the pore Corrosion Cracking Resistance in Sour (p) If you propose to use a pipeline pressure and lowest estimated fracture Oilfield Environments, Revised January free standing hybrid riser (FSHR) on a gradient for a specific interval, you must 17, 2003; incorporated by reference at permanent installation that utilizes a consider related off-set and analogous §§ 250.490 and 250.901; buoyancy air can suspended from the well behavior observations, if available. (2) NACE Standard RP0176–2003, top of the riser, you must provide the Standard Recommended Practice, following information in your DWOP in * * * * * Corrosion Control of Steel Fixed the discussions required by paragraphs ■ 7. Amend § 250.420 by revising Offshore Structures Associated with (f) and (g) of this section: paragraph (a)(6) to read as follows:

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§ 250.420 What well casing and cementing Standard 65—Part 2 (as incorporated by § 250.421 What are the casing and requirements must I meet? reference in § 250.198); and cementing requirements by type of casing * * * * * * * * * * string? (a) * * * ■ 8. Amend § 250.421 by revising * * * * * (6) Provide adequate centralization paragraphs (c), (d), (e), and (f) to read as consistent with the guidelines of API follows:

Casing type Casing requirements Cementing requirements

******* (c) Surface ...... Design casing and select setting depths based on rel- Use enough cement to fill the calculated annular space evant engineering and geologic factors. These fac- to at least 200 feet measured depth (MD) inside the tors include the presence or absence of hydro- conductor casing. carbons, potential hazards, and water depths. When geologic conditions such as near-surface frac- tures and faulting exist, you must use enough ce- ment to fill the calculated annular space to the mudline. (d) Intermediate ...... Design casing and select setting depth based on antici- Use enough cement to cover and isolate all hydro- pated or encountered geologic characteristics or carbon-bearing zones and isolate abnormal pressure wellbore conditions. intervals from normal pressure intervals in the well. As a minimum, you must cement the annular space 500 feet MD above the casing shoe and 500 feet MD above each zone to be isolated. (e) Production ...... Design casing and select setting depth based on antici- Use enough cement to cover or isolate all hydrocarbon- pated or encountered geologic characteristics or bearing zones above the shoe. wellbore conditions. As a minimum, you must cement the annular space at least 500 feet MD above the casing shoe and 500 feet MD above the uppermost hydrocarbon-bearing zone. (f) Liners ...... If you use a liner as surface casing, you must set the Same as cementing requirements for specific casing top of the liner at least 200 feet MD above the pre- types. For example, a liner used as intermediate cas- vious casing/liner shoe.. ing must be cemented according to the cementing If you use a liner as an intermediate string below a sur- requirements for intermediate casing. face string or production casing below an inter- mediate string, you must set the top of the liner at least 100 feet MD above the previous casing shoe. You may not use a liner as conductor casing. A subsea well casing string whose top is above the mudline and that has been cemented back to the mudline will not be considered a liner.

■ 9. Amend § 250.423 by revising ■ 10. Amend § 250.427 by revising (2) Notify the District Manager and paragraphs (a) and (b) to read as follows: paragraph (b) to read as follows: take further action in accordance with API Bulletin 92L (as incorporated by § 250.423 What are the requirements for § 250.427 What are the requirements for casing and liner installation? pressure integrity tests? reference in § 250.198), if appropriate. You must submit a revised permit * * * * * * * * * * documenting any responsive actions (a) You must ensure that the latching (b) While drilling, you must maintain taken. mechanisms or lock down mechanisms the safe drilling margin identified in are engaged upon successfully installing § 250.414. When you cannot maintain ■ 11. Amend § 250.428 by revising the casing string. the safe drilling margin, you must: paragraphs (c) and (d) to read as follows: (b) If you run a liner that has a (1) Suspend drilling operations and latching mechanism or lock down submit proposed remedial actions to the § 250.428 What must I do in certain mechanism, you must ensure that the District Manager. The District Manager cementing and casing situations? latching mechanisms or lock down must review and approve your proposed * * * * * mechanisms are engaged upon remedial actions, which may include successfully installing the liner. limited drilling through a lost * * * * * circulation zone; or

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If you encounter the following situation: Then you must . . .

******* (c) Have indication of inadequate cement job (such as un- (1) Locate the top of cement by: planned lost returns, no cement returns to mudline or ex- (i) Running a temperature survey; pected height, cement channeling, or failure of equipment), (ii) Running a cement evaluation log; (iii) Using tracers in the cement and logging them prior to drill out; or (iv) Using a combination of these techniques. (2) Determine if your cement job is inadequate. If your cement job is determined to be inadequate, refer to paragraph (d) of this section. (3) If your cement job is determined to be adequate, report the results to the Dis- trict Manager in your submitted WAR. (d) Inadequate cement job, ...... Comply with § 250.428(c)(1) and take remedial actions. The District Manager must review and approve all remedial actions either through a previously ap- proved contingency plan within the permit or remedial actions included in a re- vised permit before you may take them, unless immediate actions must be taken to ensure the safety of the crew or to prevent a well-control event. If you complete any immediate action to ensure the safety of the crew or to prevent a well-control event, submit a description of the action to the District Manager when that action is complete. Any changes to the well program, that are not in- cluded in the approved permit, will require submittal of a certification by a pro- fessional engineer (PE) certifying that they have reviewed and approved the proposed changes. You must also meet any other requirements of the District Manager for remedial actions.

*******

■ 12. Amend § 250.433 by revising (b) Survey requirements for a (b) You must have access to and the paragraph (b) to read as follows: directional well. You must conduct ability to deploy Source Control and directional surveys on each directional Containment Equipment (SCCE) and all § 250.433 What are the diverter actuation well and digitally record the results. other necessary supporting and and testing requirements? Surveys must give both inclination and collocated equipment to regain control * * * * * azimuth at intervals not to exceed 500 of the well. SCCE means the capping (b) For floating drilling operations feet during the normal course of stack, cap-and-flow system, with a subsea BOP stack, you must drilling. Intervals during angle-changing containment dome, and/or other subsea actuate the diverter system within 7 portions of the hole may not exceed 180 and surface devices, equipment, and days after the previous actuation. For feet. vessels, which have the collective subsequent testing, you may partially purpose to control a spill source and * * * * * stop the flow of fluids into the actuate the diverter element and a flow ■ environment or to contain fluids test is not required. 14. Amend § 250.462 by revising paragraphs (b) introductory text, escaping into the environment based on * * * * * (e)(1)(ii), (e)(2)(i), (e)(3), and (e)(4) to the determinations outlined in ■ 13. Amend § 250.461 by revising read as follows: paragraph (a) of this section. This SCCE, paragraph (b) to read as follows: supporting equipment, and collocated § 250.462 What are the source control, equipment may include, but is not § 250.461 What are the requirements for containment, and collocated equipment limited to, the following: directional and inclination surveys? requirements? * * * * * * * * * * * * * * * (e) * * *

Equipment Requirements, you must: Additional information

(1) * * * (ii) Pressure test pressure containing critical com- Pressure containing critical components are those ponents on a bi-annual basis, but not later than components that will experience wellbore pres- 210 days from the last pressure test. All pres- sure during a shut-in. These components in- sure testing must be witnessed by BSEE (if clude, but are not limited to: All blind rams, well- available) and an independent third party. head connectors, and outlet valves.

******* (2) Production safety systems used for (i) Meet or exceed the requirements set forth in flow and capture operations. Subpart H, excluding required equipment that would be installed below the wellhead or that is not applicable to the cap and flow system.

******* (3) Subsea utility equipment, ...... Have all equipment utilized solely for containment Subsea utility equipment includes, but is not lim- operations available for inspection at all times. ited to: Hydraulic power sources, debris re- moval, and hydrate control equipment.

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Equipment Requirements, you must: Additional information

(4) Collocated equipment designated Have equipment available for inspection at all Collocated equipment includes, but is not limited by the operator in the Regional Con- times. to, dispersant injection equipment and other tainment Demonstration (RCD) or subsea control equipment. Well Containment Plan (WCP),

Subpart E—Oil and Gas Well- § 250.519 What are the requirements for diagnostic test. After 30 days of Completion Operations casing pressure management? continuous production, the initial Once you install your wellhead, you production startup operation is ■ 15. Amend § 250.518 by revising must meet the casing pressure complete and you must perform casing paragraph (e)(1) and adding new management requirements of API RP 90 diagnostic testing as required in paragraph (g) to read as follows: (as incorporated by reference in §§ 250.521 and 250.523. § 250.198) and the requirements of ■ 18. Amend § 250.525 by revising § 250.518 Tubing and wellhead equipment. §§ 250.519 through 250.531. If there is a paragraph (d) to read as follows: * * * * * conflict between API RP 90 and the casing pressure requirements of this § 250.525 When am I required to take (e) * * * subpart, you must follow the action from my casing diagnostic test? (1) The uppermost permanently requirements of this subpart. * * * * * installed packer and all permanently ■ 17. Revise § 250.522 to read as (d) Any well that has sustained casing installed bridge plugs qualified as follows: pressure (SCP) and is bled down to mechanical barriers must comply with prevent it from exceeding its MAWOP, ANSI/API Spec. 11D1 (as incorporated § 250.522 How do I manage the thermal except during initial startup operations by reference in § 250.198); effects caused by initial production on a described in § 250.522; * * * * * newly completed or recompleted well? * * * * * A newly completed or recompleted (g) You must have two independent ■ 19. Revise § 250.526 to read as well often has thermal casing pressure barriers, one being mechanical, in the follows: during initial startup. Bleeding casing exposed center wellbore prior to pressure during the startup process is § 250.526 What do I submit if my casing removing the tree and/or well control considered a normal and necessary diagnostic test requires action? equipment. operation to manage thermal casing Within 14 days after you perform a ■ 16. Revise § 250.519 to read as pressure; therefore, you do not need to casing diagnostic test requiring action follows: evaluate these operations as a casing under § 250.525:

You must submit either . . . to the appropriate . . . and it must include . . . You must also . . .

(a) a notification of corrective District Manager and copy the requirements under § 250.527, submit an Application for Permit to Modify or Corrective Action action; or, Regional Supervisor, Field Plan within 30 days of the diagnostic test. Operations, (b) a casing pressure request, Regional Supervisor, Field Op- requirements under § 250.528. erations,

■ 20. Amend § 250.530 by revising § 250.616 [Reserved] § 250.712 What rig unit movements must I report? paragraph (b) to read as follows: ■ 23. Amend § 250.619 by revising * * * * * § 250.530 What if my casing pressure paragraph (e)(1) and adding new request is denied? paragraph (g) to read as follows: (g) You are not required to report rig unit movements to and from the safe * * * * * § 250.619 Tubing and wellhead equipment. zone during the course of permitted (b) You must submit the casing * * * * * operations. diagnostic test data to the appropriate (e) * * * (h) If a rig unit is already on a well, Regional Supervisor, Field Operations, (1) The uppermost permanently you are not required to report any within 14 days of completion of the installed packer and all permanently additional rig unit movements on that diagnostic test required under installed bridge plugs qualified as well. mechanical barriers must comply with § 250.523(e). ■ ANSI/API Spec. 11D1 (as incorporated 25. Amend § 250.720 by revising Subpart F—Oil and Gas Well-Workover by reference in § 250.198). paragraph (a)(1) and adding paragraphs (a)(3) and (d) to read as follows: Operations * * * * * (g) You must have two independent § 250.720 When and how must I secure a ■ 21. Amend § 250.601 by adding barriers, one being mechanical, in the well? paragraph (m) to the definition of exposed center wellbore prior to (a) * * * ‘‘routine operations’’ to read as follows: removing the tree and/or well control (1) The events that would cause you § 250.601 Definitions. equipment. to interrupt operations and notify the * * * * * Subpart G—Well Operations and District Manager include, but are not limited to, the following: (m) Acid treatments. Equipment (i) Evacuation of the rig crew; * * * * * ■ 24. Amend § 250.712 by adding (ii) Inability to keep the rig on ■ 22. Remove and reserve § 250.616 paragraphs (g) and (h) to read as follows: location;

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(iii) Repair to major rig or well-control with a rig unit on or jacked-up over a communications between rig personnel equipment; platform with producing wells or that and monitoring personnel, and a (iv) Observed flow outside the well’s has other hydrocarbon flow: protocol for how you will respond to casing (e.g., shallow water flow or * * * * * any significant and/or prolonged bubbling); or (c) * * * interruption of monitoring capabilities (v) Impending National Weather (3) A MODU moves within 500 feet of or communications, including your Service-named tropical storm or a platform. You may resume production protocol for notifying BSEE of any hurricane. once the MODU is in place, secured, significant and/or prolonged * * * * * and ready to begin operations. interruptions. (3) If you unlatch the BOP or LMRP: * * * * * ■ 29. Revise § 250.730 to read as (i) Upon relatch of the BOP, you must ■ 28. Revise § 250.724 to read as follows: test according to § 250.734(b)(2), or follows: § 250.730 What are the general (ii) Upon relatch of the LMRP, you § 250.724 What are the real-time requirements for BOP systems and system must test according to § 250.734(b)(3); components? and monitoring requirements? (a) You must ensure that the BOP (iii) You must submit a revised permit (a) When conducting well operations system and system components are with a written statement from an with a subsea BOP or with a surface designed, installed, maintained, independent third party certifying that BOP on a floating facility, or when inspected, tested, and used properly to the previous certification under operating in an high pressure high ensure well control. The working- § 250.731(c) remains valid and receive temperature (HPHT) environment, you pressure rating of each BOP component District Manager approval before must gather and monitor real-time well (excluding annular(s)) must exceed resuming operations. data using an independent, automatic, and continuous monitoring system MASP as defined for the operation. For * * * * * a subsea BOP, the MASP must be (d) You must have the equipment capable of recording, storing, and transmitting data regarding the determined at the mudline. The BOP used solely for intervention operations system includes the BOP stack, control (e.g., tree interface tools) identified, following: (1) The BOP control system; system, and any other associated readily available, properly maintained, (2) The well’s active fluid circulating system(s) and equipment. The BOP and available for BSEE inspection upon system; and system and individual components request. This equipment is required for (3) The well’s downhole conditions must be able to perform their expected subsea completed wells with a tree with the bottom hole assembly tools (if functions and be compatible with each installed, that meet the following any tools are installed). other. Your BOP system must be capable conditions: (b) You must transmit these data as of closing and sealing the wellbore in (1) Have a shut-in tubing pressure that they are gathered, barring unforeseeable the event of flow due to a kick, is greater than the hydrostatic pressure or unpreventable interruptions in including under anticipated flowing of the water column, or transmission, and have the capability to conditions for the specific well (2) Are not capable of having the monitor the data, using qualified conditions, without losing ram closure annulus monitored. personnel in accordance with a real- time and sealing integrity due to the ■ 26. Amend § 250.722 by revising time monitoring plan, as provided in corrosiveness, volume, and abrasiveness paragraph (a)(2) to read as follows: paragraph (c) of this section. of any fluids in the wellbore that the (c) You must develop and implement BOP system may encounter. Your BOP § 250.722 What are the requirements for a real-time monitoring plan. Your real- prolonged operations in a well? system must meet the following time monitoring plan, and all real-time requirements: * * * * * monitoring data, must be made available (1) The BOP requirements of API (a) * * * to BSEE upon request. Your real-time Standard 53 (incorporated by reference (2) Report the results of your monitoring plan must include the in § 250.198) and the requirements of evaluation to the District Manager and following: §§ 250.733 through 250.739. If there is a obtain approval of those results before (1) A description of your real-time conflict between API Standard 53 and resuming operations. Your report must monitoring capabilities, including the the requirements of this subpart, you include calculations that indicate the types of the data collected; must follow the requirements of this well’s integrity is above the minimum (2) A description of how your real- subpart. safety factors, if an imaging tool or time monitoring data will be transmitted (2) The provisions of the following caliper is used. District Manager during operations, how the data will be industry standards (all incorporated by approval is not required to resume labeled and monitored by qualified reference in § 250.198) that apply to operations if you conducted a successful personnel, and how the data will be BOP systems: pressure test as approved in your stored as required in §§ 250.740 and (i) ANSI/API Spec. 6A; permit. You must document the 250.741; (ii) ANSI/API Spec. 16A; successful pressure test in the WAR. (3) A description of your procedures (iii) ANSI/API Spec. 16C; * * * * * for providing BSEE access, upon (iv) API Spec. 16D; and ■ 27. Amend § 250.723 by revising the request, to your real-time monitoring (v) ANSI/API Spec. 17D. (3) For surface and subsea BOPs, the introductory text and paragraph (c)(3) to data; pipe and variable bore rams installed in read as follows: (4) The qualifications of the personnel monitoring the data; the BOP stack must be capable of § 250.723 What additional safety measures (5) Your procedures for, and methods effectively closing and sealing on the must I take when I conduct operations on of, communication between rig tubular body of any drill pipe, a platform that has producing wells or has personnel and the monitoring workstring, and tubing (excluding other hydrocarbon flow? personnel; and tubing with exterior control lines and You must take the following safety (6) Actions to be taken if you lose any flat packs) in the hole under MASP, as measures when you conduct operations real-time monitoring capabilities or defined for the operation, at the

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proposed regulator settings of the BOP equipment from meeting the functional 20166. BSEE may designate a third party control system. specification. to receive the data and reports on behalf (4) The current set of approved (2) You must ensure that an of BSEE. If BSEE designates a third schematic drawings must be available investigation and a failure analysis are party, you must submit the data and on the rig and at an onshore location. If started within 120 days of the failure to reports to the designated third party. you make any modifications to the BOP determine the cause of the failure, and (d) If you plan to use a BOP stack or control system that will require are completed within 120 days upon manufactured after the effective date of changes to your BSEE-approved starting the investigation and failure this regulation, you must use one schematic drawings, you must suspend analysis. You must also ensure that the manufactured pursuant to an ANSI/API operations until you obtain approval results and any corrective action are Spec. Q1 (as incorporated by reference from the District Manager. documented. You must ensure that the in § 250.198) quality management (b) You must ensure that the design, analysis report is submitted to the Chief system. Such quality management fabrication, maintenance, and repair of OORP, unless BSEE has designated a system must be certified by an entity your BOP system is in accordance with third party as provided in paragraph that meets the requirements of ISO/IEC the requirements contained in this part, (c)(4) of this section, as well as the 17021–1 (as incorporated by reference applicable Original Equipment manufacturer. If you cannot complete in § 250.198). Manufacturer’s (OEM) the investigation and analysis within (1) BSEE may consider accepting recommendations unless otherwise the specified time, you must submit an equipment manufactured under quality directed by BSEE, and recognized extension request detailing how you assurance programs other than ANSI/ engineering practices. The training and will complete the investigation and API Spec. Q1, provided you submit a qualification of repair and maintenance analysis to BSEE for approval. You must request to the Chief, OORP for approval, personnel must meet or exceed submit the extension request to the containing relevant information about applicable OEM training Chief, OORP. the alternative program. recommendations unless otherwise (3) If the equipment manufacturer (2) You must submit this request to directed by BSEE. notifies you that it has changed the (c) You must follow the failure design of the equipment that failed or if the Chief, OORP; Bureau of Safety and reporting procedures contained in API you have changed operating or repair Environmental Enforcement; 45600 Standard 53, (incorporated by reference procedures as a result of a failure, then Woodland Road, Sterling, Virginia in § 250.198), and: you must, within 30 days of such 20166. (1) You must provide a written notice changes, report the design change or ■ 30. Amend § 250.731 by: of equipment failure to the Chief, Office modified procedures in writing to the ■ a. Removing paragraphs (d) and (f); of Offshore Regulatory Programs Chief OORP, unless BSEE has ■ b. Redesignating paragraph (e) as (d); (OORP), unless BSEE has designated a designated a third party as provided in and third party as provided in paragraph paragraph (c)(4) of this section. ■ c. Revising paragraphs (a)(5) and (c) to (c)(4) of this section, and the (4) Submit notices and reports to the read as follows: manufacturer of such equipment within Chief, Office of Offshore Regulatory 30 days after the discovery and Programs; Bureau of Safety and § 250.731 What information must I submit identification of the failure. A failure is Environmental Enforcement; 45600 for BOP systems and system components? any condition that prevents the Woodland Road, Sterling, Virginia * * * * *

You must submit: Including:

(a) * * * ...... (5) Control system pressure and regulator settings needed to close each ram BOP under MASP as de- fined for the operation;

******* (c) Certification by an independent Verification that: third party, (1) Test data demonstrate the shear ram(s) will shear the drill pipe at the water depth as required in § 250.732; (2) The BOP was designed, tested, and maintained to perform under the maximum environmental and operational conditions anticipated to occur at the well; (3) The accumulator system has sufficient fluid to operate the BOP system without assistance from the charging system; and (4) If using a subsea BOP, a BOP in an HPHT environment as defined in § 250.804(b), or a surface BOP on a floating facility, the BOP has not been compromised or damaged from previous service.

*******

■ 31. Revise § 250.732 to read as § 250.732 What are the independent third submit verification by an independent follows: party requirements for BOP systems and third party and supporting system components? documentation as required by this (a) Prior to beginning any operation paragraph to the appropriate District requiring the use of any BOP, you must Manager and Regional Supervisor.

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You must submit verification and documentation related to: That:

(1) Shear testing, ...... (i) Demonstrates that the BOP will shear the tubular body of any drill pipe (excluding tool joints, bottom- hole tools, and bottom hole assemblies such as heavy-weight pipe or collars), workstring, tubing and as- sociated exterior control lines and any electric-, wire-, and slick-line to be used in the well; (ii) Demonstrates the use of test protocols and analysis that represent recognized engineering practices for ensuring the repeatability and reproducibility of the tests, and that the testing was performed by a facility that meets generally accepted quality assurance standards; (iii) Provides a reasonable representation of field applications, taking into consideration the physical and mechanical properties of the tubular body of any drill pipe (excluding tool joints, bottom-hole tools, and bottom hole assemblies such as heavy-weight pipe or collars), workstring, tubing and associated exterior control lines and any electric-, wire-, and slick-line to be used in the well; (iv) Ensures testing was performed on the outermost edges of the shearing blades of the shear ram; (v) Demonstrates the shearing capacity of the BOP equipment to the physical and mechanical properties of the tubular body of any drill pipe (excluding tool joints, bottom-hole tools, and bottom hole assemblies such as heavy-weight pipe or collars), workstring, tubing and associated exterior control lines and any electric-, wire-, and slick-line to be used in the well; and (vi) Includes relevant testing results. (2) Pressure integrity testing for (i) Shows that testing is conducted after the shearing is completed and prior to opening the component; sealing components, and (ii) Demonstrates that the equipment will seal at the rated working pressures (RWP) of the BOP for 5 min- utes; and (iii) Includes all relevant test results. (3) Calculations Include shearing and sealing pressures for all pipe to be used in the well including corrections for MASP.

(b) The independent third-party must you must submit verification by an review process. You must submit the be a technical classification society, a independent third party that it verifications required by this paragraph licensed professional engineering firm, conducted a comprehensive review of (c) to the appropriate District Manager or a registered professional engineer the BOP system and related equipment and Regional Supervisor before you capable of providing the required you propose to use. You must provide begin any operations in an HPHT certifications and verifications. the independent third party access to environment with the proposed (c) For wells in an HPHT any facility associated with the BOP equipment. environment, as defined by § 250.804(b), system or related equipment during the

You must submit: Including:

(1) Verification that the independent third party conducted a detailed re- view of the design package to ensure that all critical components and systems meet recognized engineering practices, (2) Verification that the designs of individual components and the over- (i) Identification of all reasonable potential modes of failure; and all system have been proven in a testing process that demonstrates (ii) Evaluation of the design verification tests. The design verification the performance and reliability of the equipment in a manner that is tests must assess the equipment for the identified potential modes of repeatable and reproducible, failure. (3) Verification that the BOP equipment will perform as designed in the temperature, pressure, and environment that will be encountered, and (4) Verification that the fabrication, manufacture, and assembly of indi- For the quality control and assurance mechanisms, complete material vidual components and the overall system uses recognized engineer- and quality controls over all contractors, subcontractors, distributors, ing practices and quality control and assurance mechanisms. and suppliers at every stage in the fabrication, manufacture, and as- sembly process.

(d) You must make all documentation and bottom hole assemblies that include (b) * * * that demonstrates compliance with the heavy-weight pipe or collars), (1) On new floating production requirements of this section available to workstring, tubing and associated facilities installed after April 29, 2021, BSEE upon request. exterior control lines, and any electric- that include a surface BOP, follow the , wire-, and slick-line that is in the hole ■ 32. Amend § 250.733 by: BOP requirements in § 250.734(a)(1). ■ a. Revising paragraphs (a)(1) and and sealing the wellbore after shearing. * * * * * (b)(1); and Prior to April 29, 2021, if your blind ■ b. Adding paragraph (e) to read as shear rams are unable to cut any (e) Additional requirements for follows: electric-, wire-, or slick-line under surface BOP systems used in well- MASP as defined for the operation and completion, workover, and § 250.733 What are the requirements for a seal the wellbore, you must use an decommissioning operations. The surface BOP stack? alternative cutting device capable of minimum BOP system for well- (a) * * * shearing the lines before closing the completion, workover, and (1) The blind shear rams must be BOP. This device must be available on decommissioning operations must meet the rig floor during operations that capable of shearing at any point along the appropriate standards from the require their use. the tubular body of any drill pipe following table: (excluding tool joints, bottom-hole tools, * * * * *

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When . . . The minimum BOP stack must include . . .

(1) The expected pressure is less Three BOPs consisting of an annular, one set of pipe rams, and one set of blind-shear rams. than 5,000 psi, (2) The expected pressure is 5,000 Four BOPs consisting of an annular, two sets of pipe rams, and one set of blind-shear rams. psi or greater or you use multiple tubing strings, (3) You handle multiple tubing Four BOPs consisting of an annular, one set of pipe rams, one set of dual pipe rams, and one set of blind- strings simultaneously, shear rams. (4) You use a tapered drill pipe, At least one set of pipe rams that are capable of sealing around each size of drill pipe, work string, or tub- work string, or tubing, ing. If the expected pressure is greater than 5,000 psi, then you must have at least two sets of pipe rams that are capable of sealing around the larger size drill pipe, work string, or tubing. You may sub- stitute one set of variable bore rams for two sets of pipe rams. (5) You use a surface BOP on a The elements required by § 250.733(b)(1) of this part. floating facility,

■ 33. Amend § 250.734 by: ■ b. Revising paragraphs (a)(1)(ii), (a)(3), § 250.734 What are the requirements for a subsea BOP system? ■ a. Removing paragraph (a)(6)(vi); and (a)(4), (a)(6)(iv), (a)(6)(v), (a)(16), and (b) to read as follows: (a) * * *

When operating with a subsea BOP system, you Additional requirements must:

(1) * * * ...... (ii) Both shear rams must be capable of shearing at any point along the tubular body of any drill pipe (excluding tool joints, bottom-hole tools, and bottom hole assemblies such as heavy-weight pipe or collars), workstring, tubing and associated exterior control lines, appropriate area for the liner or casing landing string, shear sub on subsea test tree, and any electric-, wire-, slick-line in the hole; under MASP. At least one shear ram must be capable of sealing the wellbore after shearing under MASP conditions as defined for the operation. Any non- sealing shear ram(s) must be installed below a sealing shear ram(s).

******* (3) Have the accumulator ca- The accumulator capacity must: pacity, to provide fast clo- (i) Close each required shear ram, ram locks, one pipe ram, and disconnect the LMRP. sure of the BOP compo- (ii) Have the capability to perform ROV functions within the required times outlined in API Standard 53 with ROV nents and to operate all or flying leads. critical functions; (iii) Have bottles located subsea for the autoshear and deadman (which may be shared between those two sys- tems) to secure the wellbore. These bottles may also be utilized to perform the secondary control system func- tions (e.g., ROV or acoustic functions). (iv) Perform under MASP conditions as defined for the operation. (4) * * * ...... You must have the ROV intervention capability to close each shear ram, ram locks, one pipe ram, and dis- connect the LMRP under MASP conditions as defined for the operation. You must be capable of performing these functions in the response times outlined in API Standard 53 (as incorporated by reference in § 250.198). The ROV panels on the BOP and LMRP must be compliant with API RP 17H (as incorporated by reference in § 250.198).

******* (6) * * * ...... (iv) Autoshear/deadman functions and an EDS mode must close, at a minimum, two shear rams in sequence and be capable of performing their expected shearing and sealing action under MASP conditions as defined for the operation. (v) Your sequencing must allow a sufficient delay when closing your two shear rams in order to provide maximum sealing efficiency.

******* (16) Use a BOP system that (i) No later than May 1, 2023, you must have the capability to position the entire pipe completely within the area has the following mecha- of the shearing blade. This capability cannot be a separate ram BOP or annular preventer, but you may use nisms and capabilities; those during a planned shear. (ii) If your control pods contain a subsea electronic module with batteries, a mechanism for personnel on the rig to monitor the state of charge of the subsea electronic module batteries in the BOP control pods.

(b) If you suspend operations to make (2) Upon relatch of the BOP, perform (i) Pressure test riser connector/gasket repairs to any part of the subsea BOP an initial subsea BOP test in accordance in accordance with § 250.737(b) and (c); system, you must stop operations at a with § 250.737(d)(4), including (ii) Pressure test choke and kill stabs safe downhole location. Before deadman in accordance with at LMRP/BOP interface in accordance resuming operations you must: § 250.737(d)(12)(vi). If repairs take with § 250.737(b) and (c); (1) Submit a revised permit with a longer than 30 days, once the BOP is on (iii) Full function test of both pods and both control panels; written statement from an independent deck, you must test in accordance with (iv) Verify acoustic pod third party documenting the repairs and the requirements of § 250.737; communication (if equipped); and certifying that the previous certification (3) Upon relatch of the LMRP, you (v) Deadman test with pressure test in in § 250.731(c) remains valid; must test according to the following: accordance with § 250.737(d)(12)(vi).

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(4) Receive approval from the District safety valve must be available on the rig long as your plan is consistent with Manager. floor if the length of casing being run recognized engineering and industry * * * * * exceeds the water depth, which would practice, BSEE will approve your result in the casing being across the BOP ■ 34. Amend § 250.735 by revising request if it includes the following: stack and the rig floor prior to crossing paragraph (a) to read as follows: (i) Condition monitoring tools, over to the drill pipe running string; including continuous surveillance of § 250.735 What associated systems and * * * * * sensor readings from the BOP control related equipment must all BOP systems ■ 36. Amend § 250.737 by: system, real-time condition analysis and include? ■ a. Redesignating paragraph (a)(4) as displays, functional pressure signal * * * * * (a)(5), analysis, historical sensor data; (a) An accumulator system (as ■ b. Adding new paragraph (a)(4), (ii) Failure propagation analysis; specified in API Standard 53, ■ c. Revising paragraphs (b) (iii) A failure tracking and resolution incorporated by reference in § 250.198). introductory text, (b)(2), (b)(3), (c), system that includes detailed failure Your accumulator system must have the (d)(2)(ii), (d)(3)(iii), (d)(3)(iv), (d)(3)(v), reports and identification of recurring fluid volume capacity and appropriate (d)(4)(i), (d)(4)(iii), (d)(4)(v); problems; and pre-charge pressures in accordance with ■ d. Removing paragraph (d)(4)(vi), API Standard 53. If you supply the ■ e. Revising paragraphs (d)(5), (d)(10), (iv) Submission of quarterly reports of accumulator regulators by rig air and do (d)(12)(iv), and (d)(12)(vi); and the data collected pursuant to ■ not have a secondary source of f. Adding paragraph (d)(13). paragraphs (a)(4)(i)(iii) to the BSEE pneumatic supply, you must equip the The additions and revisions read as Regional Supervisor, District Field regulators with manual overrides or follows: Operations. other devices to ensure capability of § 250.737 What are the BOP system * * * * * hydraulic operations if rig air is lost; testing requirements? (b) Pressure test procedures. When * * * * * * * * * * you pressure test the BOP system, you ■ 35. Amend § 250.736 by revising (a) * * * must conduct a low-pressure test and a paragraph (d)(5) to read as follows: (4) In lieu of meeting the schedule high-pressure test for each BOP established in paragraph (a)(2) of this component (excluding test rams and § 250.736 What are the requirements for section, you may request that BSEE non-sealing shear rams). You must begin choke manifolds, kelly-type valves inside approve a 21-day BOP testing frequency. each test by conducting the low- BOPs, and drill string safety valves? To obtain BSEE approval, you must pressure test then transition to the high- * * * * * submit a request to the appropriate pressure test. Each individual pressure (d) * * * BSEE Regional Supervisor, District Field test must hold pressure long enough to (5) When running casing, a safety Operations. Your request must demonstrate the tested component(s) valve in the open position available on demonstrate that you have developed a holds the required pressure. The table in the rig floor to fit the casing string being BOP health monitoring plan that this paragraph (b) outlines your pressure run in the hole. For subsea BOPs, the includes certain system capabilities. As test requirements.

You must conduct a . . . According to the following procedures . . .

******* (2) High-pressure test for blind shear ram-type BOPs, ram-type BOPs, (i) The high-pressure test must equal the RWP of the equipment or be the choke manifold, outside of all choke and kill side outlet valves 500 psi greater than your calculated MASP, as defined for the oper- (and annular gas bleed valves for subsea BOP), inside of all choke ation for the applicable section of hole. Before you may test BOP and kill side outlet valves below uppermost ram, and other BOP equipment to the MASP plus 500 psi, the District Manager must components. have approved those test pressures in your permit. (ii) The blind shear ram (BSR) must be tested to: (A) MASP plus 500 psi for the hole section to which it is exposed; or (B) Full well MASP plus 500 psi on initial latch up and all subse- quent BSR pressure tests can be done to the casing/liner test pressure for the applicable hole section. (iii) The choke and kill side outlet valves must be tested to, except as provided in paragraph (d)(13) of this section: (A) MASP plus 500 psi for the hole section to which it is exposed; or (B) Full well MASP plus 500 psi on initial latch up and all subse- quent pressure tests can be done to the casing/liner test pres- sure for the applicable hole section. (3) High-pressure test for annular-type BOPs, inside of choke or kill The high pressure test must equal 70 percent of the RWP of the valves (and annular gas bleed valves for subsea BOP) above the up- equipment or be 500 psi greater than your calculated MASP, as de- permost ram BOP. fined for the operation for the applicable section of hole. Before you may test BOP equipment to the MASP plus 500 psi, the District Manager must have approved those test pressures in your APD or APM.

*******

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(c) Duration of pressure test. Each test duration is acceptable if recorded on a not hold the required pressure during a must hold the required pressure for 5 chart not exceeding 4 hours, or on a test, you must correct the problem and minutes, which must be recorded on a digital recorder. The recorded test retest the affected component(s). chart not exceeding 4 hours, or on a pressures must be within the middle * * * * * digital recorder. However, for surface half of the chart range, i.e., cannot be BOP systems and surface equipment of within the lower or upper one-fourth of (d) * * * a subsea BOP system, a 3-minute test the chart range. If the equipment does

You must . . . Additional requirements . . .

******* (2) * * * ...... (ii) Contact the District Manager at least 72 hours prior to beginning the initial test to allow BSEE representative(s) to witness testing. (3) * * * ...... (iii) Contact the District Manager at least 72 hours prior to beginning the stump test to allow BSEE representative(s) to witness testing. (iv) You must verify closure of all ROV intervention functions on your subsea BOP stack during the stump test. (v) You must follow paragraphs (b) and (c) of this section. Pressure testing of each ram and annular component is only required once. (4) * * * ...... (i) You must begin the initial subsea BOP test on the seafloor within 30 days of the stump test.

******* (iii) You must pressure test well-control rams and annulars according to paragraphs (b) and (c) of this section.

******* (v) You must test and verify closure of at least one set of rams during the initial subsea test through a ROV hot stab. You must confirm clo- sure of the selected ram through the ROV hot stab with a 1,000 psi pressure test for 5 minutes. (5) Alternate tests between control stations ...... (i) For two complete BOP control stations you must: (A) Designate a primary and secondary station; (B) Alternate testing between the primary and secondary control stations on a weekly basis; and (C) For a subsea BOP, develop an alternating testing schedule to ensure the primary and secondary control stations will function each pod. (ii) Remote panels where all BOP functions are not included (e.g., life boat panels) must be function-tested upon the initial BOP tests.

******* (10) * * * ...... If BSEE approves your request to utilize a 21-day BOP test frequency pursuant to § 250.737(a)(4), you may function test shear ram(s) BOPs every 21 days in accordance with the terms of that approval.

******* (12) * * * ...... (iv) Following the deadman system test on the seafloor you must docu- ment the final remaining pressure of the subsea accumulator sys- tem.

******* (vi) You must confirm closure of the BSR(s) with a 1,000 psi pressure test for 5 minutes.

******* (13) Pressure test the choke and kill side outlet valves ...... According to paragraph (b) of this section, except as follows: (i) Test the wellbore side of the choke and kill side outlet valves above the uppermost pipe ram to the approved annular test pressure. Choke and kill side outlet valves below the uppermost pipe ram must be tested to MASP plus 500 psi for the applicable hole section. (ii) For the 30 day BSR testing, test the wellbore side of the choke and kill side outlet valves between the upper most pipe ram and the upper most ram, to the casing/liner test pressure or annular test pressure, whichever is greater. (iii) For BOPs with only one choke and kill side outlet valve, you are only required to pressure test the choke and kill side outlet valves from the wellbore side.

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* * * * * (b)(4), (f), (i), (m), and (o) to read as § 250.738 What must I do in certain follows: situations involving BOP equipment or ■ 37. Amend § 250.738 by revising systems? paragraphs (b) introductory text, (b)(3), * * * * *

If you encounter the following situation: Then you must . . .

(b) Need to repair, replace, or reconfigure a surface BOP or subsea BOP system;

******* (3) Submit a revised permit with a written statement from an inde- pendent third party documenting the repairs, replacement, or recon- figuration and certifying that the previous certification under § 250.731(c) remains valid. (4) You must receive approval from the District Manager prior to re- suming operations.

******* (f) Plan to install casing rams or casing shear rams in a surface BOP Before running casing, perform a shell test to the permit approved test stack; pressure of the BOP component above the casing ram/casing shear. If this installation was not included in your approved permit, and changes the BOP configuration approved in the APD or APM, you must notify and receive approval from the District Manager.

******* (i) You activate any shear ram and pipe or casing is sheared; ...... Retrieve, physically inspect, and conduct a full pressure test of the BOP stack after the situation is fully controlled. You must submit to the District Manager a report from an independent third party certi- fying that the BOP is fit to return to service.

******* (m) Plan to utilize any other circulating or ancillary equipment (e.g., but Contact the District Manager and request approval in your APD or not limited to, subsea isolation device, subsea accumulator module, APM. Your request must include a report from an independent third or gas handler) that is in addition to the equipment required in this party on the equipment’s design and suitability for its intended use subpart; as well as any other information required by the District Manager. The District Manager may impose any conditions regarding the equipment’s capabilities, operation, and testing.

******* (o) You install redundant components for well control in your BOP sys- Comply with all testing, maintenance, and inspection requirements in tem that are in addition to the required components of this subpart this subpart that are applicable to those well-control components. If (e.g., pipe/variable bore rams, shear rams, annular preventers, gas any redundant component fails a test, you must submit a report from bleed lines, and choke/kill side outlets or lines); an independent third party that describes the failure and confirms that there is no impact on the BOP that will make it unfit for well- control purposes. You must submit this report to the District Manager and receive approval before resuming operations. The District Man- ager may require you to provide additional information as needed to clarify or evaluate your report.

*******

■ 38. Amend § 250.739 by revising all system and component inspection ■ 39. Add an undesignated center and paragraph (b) introductory text to read dates. These records must be available § 250.750 to read as follows: as follows: on the rig. An independent third party Coiled Tubing Operations is required to review the inspection § 250.739 What are the BOP maintenance results and must compile a detailed § 250.750 What are the coiled tubing and inspection requirements? report of the inspection results, requirements? * * * * * including descriptions of any problems (a) For coiled tubing operations, you (b) A major, detailed inspection of the and how they were corrected. You must must follow the applicable requirements well control system components make these reports available to BSEE of this subpart and you must meet the (including but not limited to riser, BOP, upon request. This major inspection following minimum requirements for LMRP, and control pods) must be must be performed every 5 years from the BOP system: performed every 5 years. This major the following applicable dates, (1) BOP system components must be inspection may be performed in phased whichever is later: in the following order from the top intervals. You must track and document * * * * * down:

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BOP system when expected surface pressures are less than BOP system when expected surface pres- BOP system for wells with returns taken through an outlet on or equal to 3,500 psi sures are greater than 3,500 psi the BOP stack

(i) Stripper or annular-type well Stripper or annular-type well control compo- Stripper or annular-type well control component. control component. nent. (ii) Hydraulically-operated blind Hydraulically-operated blind rams ...... Hydraulically-operated blind rams. rams. (iii) Hydraulically-operated shear Hydraulically-operated shear rams ...... Hydraulically-operated shear rams. rams. (iv) Kill line inlet ...... Kill line inlet ...... Kill line inlet. (v) Hydraulically-operated two- Hydraulically-operated two-way slip rams ...... Hydraulically-operated two-way slip rams. way slip rams. Hydraulically-operated pipe rams. (vi) Hydraulically-operated pipe Hydraulically-operated pipe rams ...... A flow tee or cross. rams. Hydraulically-operated blind-shear rams. Hydraulically-operated pipe rams. These rams should be located as close to Hydraulically-operated blind-shear rams on wells with surface the tree as practical. pressures >3,500 psi. As an option, the pipe rams can be placed below the blind-shear rams. The blind-shear rams should be located as close to the tree as practical.

(2) You may use a set of least 200 psi above the pre-charge (3) An inside BOP or a spring-loaded, hydraulically-operated combination pressure, without assistance from a back-pressure safety valve in the open rams for the blind rams and shear rams. charging system. position located on the rig floor, and (3) You may use a set of (7) All connections used in the (4) An essentially full-opening, work- hydraulically-operated combination surface BOP system from the tree to the string safety valve in the open position rams for the hydraulic two-way slip uppermost required ram must be must be maintained on the rig floor at rams and the hydraulically-operated flanged, including the connections all times and a wrench to fit the work- pipe rams. between the well control stack and the string safety valve must be readily (4) You must attach a dual check first full-opening valve on the choke available. valve assembly to the coiled tubing line and the kill line. connector at the downhole end of the (5) Proper connections must be (b) BSEE considers all coiled tubing readily available for inserting valves in coiled tubing string for all coiled tubing operations to be non-routine. operations. If you plan to conduct the work string. ■ 40. Add § 250.751 to read as follows: operations without downhole check (b) Test the snubbing unit in valves, you must describe alternate § 250.751 Coiled tubing testing accordance with § 250.737(a), (b), and procedures and equipment in Form requirements. (c). BSEE–0124, Application for Permit to You must test the coiled tubing unit Modify and have it approved by the Subpart Q—Decommissioning in accordance with § 250.737(a), (b), (c), Activities District Manager. (d)(9), and (d)(10). You must (5) You must have a kill line and a successfully pressure test the dual check separate choke line. You must equip ■ 42. Amend § 250.1703 by revising valves to the rated working pressure of paragraph (b) to read as follows: each line with two full-opening valves the connector, the rated working and at least one of the valves must be pressure of the dual check valve, § 250.1703 What are the general remotely controlled. You may use a expected surface pressure, or the requirements for decommissioning? manual valve instead of the remotely collapse pressure of the coiled tubing, * * * * * controlled valve on the kill line if you whichever is less. The test interval for (b) Permanently plug all wells. install a check valve between the two coiled tubing operations must include a full-opening manual valves and the Packers and bridge plugs used as 10 minute high-pressure test for the qualified mechanical barriers must pump or manifold. The valves must coiled tubing string. have a working pressure rating equal to comply with ANSI/API Spec. 11D1 (as ■ or greater than the working pressure 41. Add an undesignated center incorporated by reference in § 250.198). rating of the connection to which they heading and § 250.760 to read as You must have two independent are attached, and you must install them follows: barriers, one being an ANSI/API Spec. 11D1 qualified mechanical barrier, in between the well control stack and the Snubbing Operations choke or kill line. For operations with the exposed center wellbore prior to expected surface pressures greater than § 250.760 What are the snubbing removing the tree and/or well control 3,500 psi, the kill line must be requirements? equipment; connected to a pump or manifold. You (a) For snubbing operations, you must * * * * * must not use the kill line inlet on the follow the applicable requirements of ■ 43. Amend § 250.1704 by adding BOP stack for taking fluid returns from this subpart and have the following paragraph (g)(4) and revising paragraph the wellbore. minimum BOP-system components: (h)(2) to read as follows: (6) You must have a hydraulic- (1) One set of pipe rams hydraulically actuating system that provides sufficient operated, § 250.1704 What decommissioning accumulator capacity to close-open- (2) Two sets of stripper-type pipe applications and reports must I submit and close each component in the BOP stack. rams hydraulically operated with spacer when must I submit them? This cycle must be completed with at spool, * * * * *

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Decommissioning applications When to submit Instructions and reports

******* (g) * * * ...... (4) Within 30 days after you complete site clearance Include information required under § 250.1743(a). verification activities, (h) * * * ...... (2) Within 30 days after completion of decommissioning ac- Include information required under §§ 250.1712 and tivity, 250.1721.

*******

§ 250.1706 [Reserved] (b) * * * (d) Within 30 days after you complete ■ 44. Remove and reserve § 250.1706: (3) The water depth is greater than the trawling test described in paragraph 1,000 feet. (c) of this section, submit a report to the § 250.1713 [Reserved] appropriate District Manager using form ■ 45. Remove and reserve § 250.1713: ■ 47. Amend § 250.1722 by revising BSEE–0125, End of Operations Report ■ 46. Amend § 250.1716 by revising paragraph (d) introductory text to read (EOR) that includes the following: as follows: paragraph (b)(3) to read as follows: * * * * * § 250.1716 To what depth must I remove § 250.1722 If I install a subsea protective [FR Doc. 2019–09362 Filed 5–14–19; 8:45 am] wellheads and casings? device, what requirements must I meet? BILLING CODE 4310–VH–P * * * * * * * * * *

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Part III

Federal Reserve System

12 CFR Parts 217, 225, 238, et al. Prudential Standards for Large Foreign Banking Organizations; Revisions to Proposed Prudential Standards for Large Domestic Bank Holding Companies and Savings and Loan Holding Companies; Proposed Rule

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FEDERAL RESERVE SYSTEM organizations, using a category approach Attorney, (202) 452–3886, Legal that is broadly consistent with the one Division. Board of Governors of the 12 CFR Parts 217, 225, 238, and 252 set forth in this proposal. Federal Reserve System, 20th and C [Regulations Q, Y, LL, and YY; Docket No. DATES: Comments on the proposal, Streets NW, Washington, DC 20551. R–1658; RIN 7100–AF45] including elements of the proposal that SUPPLEMENTARY INFORMATION: would be applied to domestic banking Table of Contents Prudential Standards for Large Foreign organizations and foreign banking Banking Organizations; Revisions to organizations, and other clarifying I. Introduction Proposed Prudential Standards for revisions and technical changes A. Background Large Domestic Bank Holding discussed in section II.G of the B. Considerations in Tailoring Enhanced Prudential Standards for Foreign Companies and Savings and Loan Supplementary Information Section, Holding Companies Banking Organizations must be received by June 21, 2019. II. Overview of the Proposal AGENCY: Board of Governors of the ADDRESSES: You may submit comments, A. Scope of Application Federal Reserve System (Board). identified by Docket No. R–1658 and B. Scoping Criteria for Proposed Categories RIN 7100–AF45, by any of the following 1. Size ACTION: Notice of proposed rulemaking 2. Other Risk-Based Indicators with request for public comment. methods: • Agency Website: http:// a. Cross-Jurisdictional Activity b. Nonbank Assets SUMMARY: www.federalreserve.gov. Follow the The Board is requesting c. Off-Balance Sheet Exposure comment on a proposed rule that would instructions for submitting comments at d. Weighted Short-Term Wholesale revise the framework for applying the https://www.federalreserve.gov/apps/ Funding enhanced prudential standards foia/proposedregs.aspx. 3. Alternative Scoping Criteria applicable to foreign banking • Email: regs.comments@ 4. Determination of Applicable Category of organizations under section 165 of the federalreserve.gov. Include docket Standards Dodd-Frank Wall Street Reform and number and RIN in the subject line of C. Enhanced Prudential Standards for Consumer Protection Act, as amended the message. Foreign Banking Organizations • Fax: (202) 452–3819 or (202) 452– 1. Category II Standards by the Economic Growth, Regulatory 2. Category III Standards Relief, and Consumer Protection Act. 3102. • Mail: Ann E. Misback, Secretary, 3. Category IV Standards The proposal would establish categories D. Single-Counterparty Credit Limits that would be used to tailor the Board of Governors of the Federal E. Risk-Management and Risk Committee stringency of enhanced prudential Reserve System, 20th Street and Requirements standards based on the risk profile of a Constitution Avenue NW, Washington, F. Enhanced Prudential Standards for foreign banking organization’s DC 20551. Foreign Banking Organizations With a operations in the United States. The All public comments are available Smaller U.S. Presence from the Board’s website at http:// G. Technical Changes to the Regulatory proposal also would amend certain Framework for Foreign Banking enhanced prudential standards, www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm as submitted, Organizations and Domestic Banking including standards relating to liquidity, Organizations risk management, stress testing, and unless modified for technical reasons or III. Proposed Reporting Changes single-counterparty credit limits, and to remove sensitive personally IV. Impact Assessment would make corresponding changes to identifiable information at the A. Liquidity reporting forms. The proposal would commenter’s request. Public comments B. Capital Planning and Stress Testing make clarifying revisions and technical may also be viewed electronically or in C. Single-Counterparty Credit Limits paper form in Room 146, 1709 New V. Administrative Law Matters changes to the Board’s October 31, 2018, A. Solicitation of Comments and Use of proposal for large U.S. bank holding York Avenue, Washington, DC 20006 between 9:00 a.m. and 5:00 p.m. on Plain Language companies and certain savings and loan B. Paperwork Reduction Act Analysis holding companies relating to the weekdays. C. Regulatory Flexibility Act Analysis Board’s internal liquidity stress testing FOR FURTHER INFORMATION CONTACT: requirements and GSIB surcharge rule. Constance Horsley, Deputy Associate I. Introduction Separately, the Board, the Office of the Director, (202) 452–5239; Elizabeth The Board of Governors of the Federal Comptroller of the Currency (OCC) and MacDonald, Manager, (202) 475–6316; Reserve System (Board) is requesting the Federal Deposit Insurance Brian Chernoff, Lead Financial comment on a proposed rule (the Corporation (FDIC) (together, the Institution Policy Analyst, (202) 452– proposal) that would revise the agencies) are requesting comment on a 2952; Mark Handzlik, Lead Financial framework for applying enhanced proposal to revise the applicability of Institution Policy Analyst, (202) 475– prudential standards to foreign banking the agencies’ capital and liquidity 6636, J. Kevin Littler, Lead Financial organizations with total consolidated requirements for foreign banking Institution Policy Analyst, (202) 475– assets of $100 billion or more.1 organizations based on the same 6677; Matthew McQueeney, Senior categories, and the Board is requesting Financial Institution Policy Analyst II, 1 Foreign banking organization means a foreign bank that operates a branch, agency, or commercial comment on whether it should impose (202) 452–2942; or Christopher Powell, lending company subsidiary in the United States; standardized liquidity requirements on Senior Financial Policy Analyst II, (202) controls a bank in the United States; or controls an the U.S. branch and agency network of 452–3442, Division of Banking Edge corporation acquired after March 5, 1987; and a foreign banking organization, as well Supervision and Regulation; or Laurie any company of which the foreign bank is a subsidiary. See 12 CFR 211.21(o); 12 CFR 252.2(k). as possible approaches for doing so. In Schaffer, Associate General Counsel, An agency is place of business of a foreign bank, addition, the Board and the FDIC are (202) 452–2272; Benjamin McDonough, located in any state, at which credit balances are separately requesting comment on a Assistant General Counsel (202) 452– maintained, checks are paid, money is lent, or, to proposal to revise the applicability of 2036; Asad Kudiya, Counsel, (202) 475– the extent not prohibited by state or federal law, deposits are accepted from a person or entity that the resolution planning requirements 6358; Jason Shafer, Counsel (202) 728– is not a citizen or resident of the United States. A applicable to large U.S. banking 5811; Mary Watkins, Senior Attorney, branch is a place of business of a foreign bank, organizations and foreign banking (202) 452–3722; or Alyssa O’Connor, located in any state, at which deposits are received

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Specifically, the proposal would revise complex U.S. subsidiary operations organizations, the Dodd-Frank Act also the thresholds for application of maintained insufficient capital in the directs the Board to give due regard to enhanced prudential standards to United States and were not the principles of national treatment and foreign banking organizations and tailor appropriately positioned to support equality of competitive opportunity and the stringency of those standards based losses among those operations. to take into account the extent to which on the U.S. risk profiles of these firms. Accordingly, these firms were forced to a foreign banking organization is The proposal generally would align significantly reduce assets in the United subject, on a consolidated basis, to with the framework the Board proposed States to address capital deficiencies. In home-country standards that are for large U.S. bank holding companies addition, the funding models of many comparable to those applied to financial and certain savings and loan holding foreign banking organizations presented companies in the United States.9 companies on October 31, 2018 (the unique vulnerabilities, as they relied on The Board’s enhanced prudential domestic proposal).2 The proposal also dollar-denominated short-term standards implement section 165 of the is consistent with the Board’s ongoing wholesale funding obtained in the Dodd-Frank Act and strengthen capital, efforts to assess the impact of its United States to fund their global liquidity, risk-management, and other regulations while exploring alternatives investment activities. Disruptions in the prudential standards for banking that achieve regulatory objectives and U.S. wholesale funding market limited organizations.10 In applying section 165 improve upon the regulatory the ability of these firms to satisfy to foreign banking organizations, the framework’s simplicity, transparency, liquidity demands, as some of them Board has tailored enhanced prudential and efficiency. lacked adequate risk-management standards based, in part, on the size and Under the proposal, a foreign banking practices to account for the liquidity complexity of a foreign banking organization with $100 billion or more stresses of individual products or organization’s activities in the United in total consolidated assets and a business lines, had not adequately States. The standards applicable to significant U.S. presence would be accounted for draws from off-balance foreign banking organizations with a subject to Category II, Category III, or sheet exposures, or had not adequately more limited U.S. presence largely rely Category IV 3 enhanced prudential planned for a disruption in funding on compliance with comparable home- standards depending on the size of its sources. As a result, many experienced country standards applied at the U.S. operations and the materiality of significant distress and required consolidated foreign parent level. In the same risk-based indicators that were unprecedented liquidity support from comparison, a foreign banking included in the domestic proposal: U.S. and home-country authorities.5 For organization with a significant U.S. Cross-jurisdictional activity, nonbank example, analysis using Federal Reserve presence is subject to enhanced assets, off-balance sheet exposure, and Board data on Term Auction Facility prudential standards and supervisory weighted short-term wholesale funding, usage in 2008 and 2009 finds that expectations that apply to its combined as discussed below.4 Foreign banking approximately 40 percent of foreign U.S. operations.11 A foreign banking organizations with $100 billion or more banking organizations borrowed from organization with U.S. non-branch in total consolidated assets that do not the facility during the financial crisis. assets of $50 billion or more 12 also must meet the thresholds for application of Furthermore, on average, U.S. branches form a U.S. intermediate holding Category II, Category III, or Category IV of foreign banking organizations that company 13 that must calculate risk- standards due to their limited U.S. used the facility funded approximately based and leverage capital ratios, create presence would be subject to 10 percent of their assets through the a risk-management structure (including requirements that largely defer to Term Auction Facility during this for the management of liquidity risk), compliance with similar home-country period. and engage in stress testing in a manner standards at the consolidated level, with Section 165 of the Dodd-Frank Act comparable to a similarly situated U.S. the exception of certain risk- was enacted in response to the financial bank holding company.14 management standards. crisis and directed the Board to The presence of foreign banking establish enhanced prudential standards organizations in the United States brings A. Background for foreign banking organizations with competitive and countercyclical benefits The financial crisis revealed total consolidated assets of $50 billion to U.S. markets, as these firms serve as significant weaknesses in resiliency and or more.6 These standards must include an important source of credit to U.S. risk management in the financial sector, enhanced risk-based capital and households and businesses and and demonstrated how the failure or leverage requirements, liquidity contribute materially to the strength and distress of large, leveraged, and requirements, risk-management liquidity of U.S. financial markets. Post- interconnected financial companies, requirements, and stress test including foreign banking organizations, requirements, among others.7 These 9 12 U.S.C. 5365(b)(2). could pose a threat to U.S. financial standards also must increase in 10 12 CFR part 252. stability. Certain foreign banking stringency based on certain statutory 11 The combined U.S. operations of a foreign considerations in section 165.8 In banking organization include any U.S. subsidiaries organizations with the largest, most (including any U.S. intermediate holding company, applying section 165 to foreign banking which would reflect on a consolidated basis any and that is not an agency. See 12 CFR 211.21(b) and U.S. depository institution subsidiaries thereof), (e). 5 See, e.g., Goldberg and Skeie, 2011, ‘‘Why did U.S. branches, and U.S. agencies. 2 Prudential Standards for Large Bank Holding U.S. branches of foreign banks borrow at the 12 U.S. non-branch assets are defined in Companies and Savings and Loan Holding discount window during the crisis?’’, Liberty Street Regulation YY. See 12 CFR 252.152(b)(2). Companies, 83 FR 61408 (November 29, 2018). Economics Blog, Federal Reserve Bank of New 13 Risk-management and liquidity standards, as 3 Category I standards would apply only to U.S. York. well as single-counterparty credit limits, apply to a global systemically important bank holding 6 12 U.S.C. 5365. foreign banking organization at the level of its companies. See infra note 28. 7 In addition, the Dodd-Frank Act authorizes the combined U.S. operations. Capital standards apply 4 As explained further in this SUPPLEMENTARY Board to establish additional enhanced prudential to a U.S. intermediate holding company, but they INFORMATION section, cross-jurisdictional activity standards relating to contingent capital, public do not apply to U.S. branches and agencies, which would be measured (a) excluding intercompany disclosures, short-term debt limits, and such other are not required to maintain regulatory capital liabilities; and (b) would allow recognition of prudential standards as the Board determines separately from the foreign banks of which they are financial collateral in calculating intercompany appropriate. a part. claims. 8 See 12 U.S.C. 5365(a)(1), (b)(3). 14 12 CFR 252.153 et seq.

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crisis financial regulations have resulted comprise approximately 25 percent of section 165 of the Dodd-Frank Act in substantial gains in resiliency for the combined U.S. assets of these firms, under the Economic Growth, Regulatory individual firms and the financial with a range of zero to 70 percent at Relief, and Consumer Protection Act system as a whole. Foreign banking individual firms.19 The crisis (EGRRCPA).22 organizations’ U.S. operations have experience demonstrated that nonbank The proposal would raise the asset become less fragmented and maintain activities could exacerbate the effects of size threshold for the application of more capital and liquidity in the United a banking organization’s distress or enhanced prudential standards to States.15 In addition, the U.S. operations failure, due to the business and foreign banking organizations, of foreign banking organizations subject operational complexities associated consistent with EGRRCPA, and is to enhanced prudential standards with these activities. designed to more precisely address the generally have made significant The U.S. operations of some foreign risks presented by foreign banking improvements in risk identification and banking organizations also exhibit organizations to U.S. financial stability management, data infrastructure, and greater complexity and face risks due to in a manner that broadly aligns with the controls. These improvements have significant levels of cross-jurisdictional domestic proposal. The proposal builds helped to build a more resilient activity and off-balance sheet exposure. upon the Board’s practice of tailoring financial system that is better positioned Among foreign banking organizations enhanced prudential standards applied to provide American consumers, with combined U.S. assets of $100 to foreign banking organizations based businesses, and communities access to billion or more, cross-jurisdictional on the risk profile of their combined the credit they need, even under activity (excluding cross-jurisdictional U.S. operations. By applying standards 20 challenging economic conditions. liabilities to non-U.S. affiliates) is that are broadly consistent with the The U.S. operations of foreign equivalent to approximately 30 percent standards that would apply to U.S. bank banking organizations vary in their of those assets, ranging from 13 to as holding companies of a similar risk complexity and systemic significance, much as 81 percent, whereas off-balance profile under the domestic proposal, and can present significant risks to U.S. sheet exposure is equivalent to this proposal would take into account financial stability. As shown in the approximately 30 percent of those the principles of national treatment and financial crisis, disproportionate use of assets, ranging from 10 to as much as 51 equality of competitive opportunity 21 dollar-denominated short-term percent. As discussed below, both between foreign and domestic banking wholesale funding relative to more cross-jurisdictional activity and off- organizations. stable, insured deposits presents balance sheet exposure provide a The proposal would distinguish the significant risks to U.S. financial measure of a banking organization’s manner in which a foreign banking stability and the safety and soundness of interconnectedness, as well as other organization determines its applicable an individual firm; some foreign risks. category of capital standards as banking organizations remain heavily The Board is proposing to modify the compared to its applicable category for reliant on this source of funding. Among enhanced prudential standards all other standards. For risk- all foreign banking organizations with framework applicable to foreign banking management standards, liquidity combined U.S. assets 16 of $100 billion organizations in a manner standards, and single-counterparty or more, short-term wholesale funding commensurate with the risks such credit limits, a foreign banking is equivalent to approximately 30 organizations pose to U.S. financial organization would determine the percent of their U.S. assets, ranging from stability, based on the risk-based 10 percent to as much as 60 percent.17 indicators set forth in this proposal. applicable category based on the risk profile of its combined U.S. operations. U.S. branches of these firms tend to B. Considerations in Tailoring have particularly high reliance on short- This approach is consistent with the Enhanced Prudential Standards for current enhanced prudential standards term wholesale funding because they Foreign Banking Organizations generally lack access to retail deposits. framework and recognizes that certain In addition, some foreign banking The Board conducts periodic reviews risks are more appropriately regulated organizations engage in complex of its rules to update, reduce across the combined U.S. operations of activities through broker-dealers in the unnecessary costs associated with, and a foreign banking organization to United States, which are highly streamline regulatory requirements prevent or mitigate risks to U.S. interconnected to U.S. and foreign based on its supervisory experience and financial stability. For example, funding financial intermediaries. Among foreign consistent with the effective vulnerabilities at a U.S. branch can banking organizations with combined implementation of its statutory expose a foreign banking organization’s U.S. assets of $100 billion or more, U.S. responsibilities. These efforts include other U.S. operations to heightened broker-dealer subsidiaries comprise assessing the impact of regulations as liquidity risk because their customers approximately 25 percent of these firms’ well as exploring alternative approaches and counterparties may not distinguish U.S. assets in aggregate, with a range of that achieve regulatory objectives while liquidity stress at one component of the zero to 50 percent at individual firms.18 improving the regulatory framework’s U.S. operations from the liquidity Overall, total nonbank assets, including simplicity, transparency, and efficiency. position of another part of the U.S. broker-dealer subsidiaries, in aggregate The proposal is the result of this operations. As a result, liquidity stress practice, and reflects amendments to among the combined U.S. operations of 15 Sources: Consolidated Financial Statements for a foreign banking organization can Holding Companies (FR Y–9C) and Complex 19 Id. manifest rapidly and simultaneously, Institution Liquidity Monitoring Report (FR 2052a). 20 See section II.B.2.a of this SUPPLEMENTARY regardless of the source of that risk. 16 See, infra note 18. INFORMATION section. In addition, while the Similarly, single-counterparty credit 17 Source: FR 2052a, as of June 30, 2018. proposal would allow recognition of financial 18 Sources: Parent Company Only Financial collateral in calculating intercompany claims, limits that are based on and apply only Statements for Large Holding Companies (FR Y– recognition of financial collateral is not reflected in to one aspect of a foreign banking 9LP), The Capital and Asset Report for Foreign this analysis. organization’s operations in the United Banking Organizations (FR Y–7Q), and the 21 This analysis was based on data compiled from States can create an incentive to Securities Exchange Commission’s Financial and the FR Y–7Q, as well as information collected from Operational Combined Uniform Single Report, as of certain foreign banking organizations supervised by September 30, 2018. the Board as of September 30, 2018. 22 Public Law 115–174, 132 Stat. 1296 (2018).

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concentrate risk elsewhere in the counterparty credit limits, to a foreign prudential standards framework and organization’s U.S. operations. banking organization at the level of its recognizes that U.S. branches and More generally, the tendency of combined U.S. operations. agencies do not maintain regulatory market participants to take a more For capital standards, a foreign capital separately from their foreign holistic view of the financial strength banking organization would determine parents. and resilience of a foreign banking the applicable category based on the risk organization’s U.S. operations profile of its U.S. intermediate holding The visual below provides a underscores the importance of applying company, if any,23 and not the simplified illustration of a how a foreign enhanced prudential standards combined U.S. operations of the foreign banking organization may structure its comprehensively across those banking organization.24 Capital U.S. operations, and depicts the portion operations. Accordingly, consistent with standards under the proposed categories of those operations that would comprise the current enhanced prudential would apply to a foreign banking its combined U.S. operations for standards framework, the proposal organization at the U.S. intermediate purposes of the proposal. would apply risk-management and holding company level. This approach BILLING CODE 6210–01–P liquidity standards, as well as single- is consistent with the current enhanced

BILLING CODE 6210–01–C assets of $100 billion or more, based on the United States directly through U.S. II. Overview of the Proposal the risk profile of their U.S. operations. branches and agencies or through The proposal broadly aligns with the subsidiaries. Specifically, the proposal The proposal would revise the framework set forth in the domestic would establish three categories of framework for determining the proposal,25 with modifications, for standards to address risk-management, applicability of enhanced prudential example, to address the fact that foreign liquidity, and single-counterparty credit standards for foreign banking banking organizations may operate in limits for foreign banking organizations organizations with total consolidated

23 A foreign banking organization with no U.S. subsidiary of the foreign banking organization 25 See also Proposed Changes to Applicability intermediate holding company would be subject to would continue to be subject to the generally Thresholds for Regulatory Capital and Liquidity requirements that defer largely to compliance with applicable capital requirements under the agencies’ Requirements, 83 FR 66024 (December 21, 2018) home-country capital standards. Any U.S. bank regulatory capital rule. (domestic interagency proposal). holding company or depository institution 24 See supra note 9.

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with $100 billion or more in total proposal that would address the U.S. risk profiles, measured based on consolidated assets and a significant applicability of resolution planning the levels of nonbank assets, off-balance U.S. presence (i.e., combined U.S. assets requirements to large U.S. banking sheet exposure, and weighted short-term of $100 billion or more). The proposal organizations and foreign banking wholesale funding among those would also establish three categories of organizations based on a category operations. The least stringent capital standards for a U.S. intermediate approach that is broadly consistent with prudential standards would apply under holding company with total the categories set forth in this proposal. Category IV to a foreign banking consolidated assets of $100 billion or organization with combined U.S. assets A. Scope of Application more, which would apply only to a U.S. of at least $100 billion that is not subject intermediate holding company. The Consistent with the domestic proposal to Category III or Category II standards requirements under each category and EGRRCPA’s amendments to section based on its U.S. risk profile. would be based on the risk profile of a 165 of the Dodd-Frank Act, this Section II.B. of this SUPPLEMENTARY foreign banking organization’s proposal generally would increase the INFORMATION section discusses the combined U.S. operations or U.S. asset size threshold for application of proposed criteria for determining which intermediate holding company, as the enhanced prudential standards category of standards would apply to a measured by their size and the framework to foreign banking foreign banking organization, and materiality of the following risk-based organizations from $50 billion to $100 Sections II.C. through II.E. of this indicators: Cross-jurisdictional activity, billion in total consolidated assets.26 SUPPLEMENTARY INFORMATION section nonbank assets, off-balance sheet Under the proposal, such a foreign discuss the standards that would apply exposure, and weighted short-term banking organization with $100 billion under each category. Section II.F. of this wholesale funding. For foreign banking or more in combined U.S. assets 27 SUPPLEMENTARY INFORMATION section organizations with $100 billion or more would be subject to Category II, discusses the standards that would in total consolidated assets and a Category III, or Category IV enhanced apply to foreign banking organizations limited U.S. presence (i.e., less than prudential standards.28 The category of with total consolidated assets of $100 $100 billion in combined U.S. assets), standards that would apply to a foreign billion or more, but a U.S. presence that the proposal would not apply the banking organization would be based on does not meet the criteria for the category framework, and instead would the risk profile of its U.S. operations, as application of prudential standards continue to rely largely on compliance measured by size, cross-jurisdictional under the categories described in this with similar home-country standards at activity, nonbank assets, off-balance proposal and that presents lesser risk to the consolidated, foreign-parent level. In sheet exposure, and weighted short-term U.S. financial stability. Other than U.S. addition, foreign banking organizations wholesale funding. The most stringent risk-management requirements, the with $50 billion or more in total requirements would apply to a foreign proposal would not apply enhanced consolidated assets would continue to banking organization subject to Category prudential standards to foreign banking be required to meet U.S. risk II standards. Requirements under this organizations with total consolidated management requirements. category would apply to a foreign assets of less than $100 billion, The proposal also would implement banking organization with very large consistent with EGRRCPA. reporting requirements that are U.S. operations or those with significant B. Scoping Criteria for Proposed necessary to accommodate the use of the cross-jurisdictional activity, and Categories risk-based indicators for the combined generally would remain unchanged U.S. operations of a foreign banking from existing requirements. In Under the proposal, the three organization, and make certain technical comparison, requirements applicable to categories for determining the enhanced amendments to the Board’s enhanced foreign banking organizations would prudential standards that apply to prudential standards framework related become increasingly less stringent foreign banking organizations with to the organization of the framework, under Category III and Category IV, combined U.S. assets of $100 billion or certain clarifying revisions, and the respectively, commensurate with the more would be defined based on the removal of outdated transitional reduced sizes and risk profiles of their following criteria, measured based on provisions. U.S. operations. Category III standards the combined U.S. operations of a Concurrently with this proposal, the would apply to a foreign banking foreign banking organization: agencies separately are seeking organization with U.S. operations that • Category II standards, including comment on a proposal that would are significant in size or have elevated risk-management standards, liquidity amend the agencies’ capital and requirements, and single-counterparty liquidity requirements to introduce 26 Under the proposal, the threshold for credit limit requirements, would apply consistent categories for tailoring those application of risk-management requirements to foreign banking organizations the would increase from $10 billion to $50 billion in combined U.S. operations of which have standards based on the risk profile of total consolidated assets. foreign banking organizations’ U.S. 27 Combined U.S. assets means the sum of the $700 billion or more in assets, or $75 operations (the interagency foreign consolidated assets of each top-tier U.S. subsidiary billion or more in cross-jurisdictional banking organization capital and of a foreign banking organization (excluding any activity.29 In addition, under the liquidity proposal). As part of that section 2(h)(2) company, if applicable) and the total interagency foreign banking assets of each U.S. branch and U.S. agency of a proposal, the Board is requesting foreign banking organization, as reported by the organization capital and liquidity comment on, but is not proposing, foreign banking organization on the Annual Report proposal, the most stringent whether it should impose standardized of Foreign Banking Organizations (FR Y–7Q). standardized liquidity requirements liquidity requirements to address the 28 This proposal would not apply the most would apply to the foreign banking stringent Category I standards to foreign banking organization at the level of any U.S. liquidity risks of the U.S. branches and organizations because, under the domestic agencies of a foreign banking proposal, Category I standards would apply only to intermediate holding company and organization with significant U.S. U.S. global systemically important bank holding operations, as well as potential companies. Under Board regulations, only a top-tier 29 Cross-jurisdictional activity would be U.S. bank holding company can be identified as a measured excluding cross-jurisdictional liabilities approaches to do so. In addition, the U.S. global systemically important bank holding to non-U.S. affiliates and cross-jurisdictional claims Board, together with the FDIC, company. See 12 CFR 217.11(d); 12 CFR part 217, on non-U.S. affiliates to the extent that these claims separately is seeking comment on a subpart H. are secured by financial collateral.

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certain of its depository institution similar risk profiles. Such an approach 1. Size subsidiaries. would allow firms and the public to • Section 165 of the Dodd-Frank Act, as Category III standards, including identify what requirements apply to a amended by EGRRCPA, requires the risk-management standards, liquidity foreign banking organization’s U.S. Board to apply enhanced prudential requirements, and single-counterparty operations and predict what standards to foreign banking credit limit requirements, would apply requirements would apply if the risk organizations based on their total to foreign banking organizations that are profile of those operations were to consolidated asset size. The proposal not subject to Category II standards and change. By taking into consideration the would consider total consolidated asset the combined U.S. operations of which materiality of each risk indicator that size for determining whether a foreign have $250 billion or more in assets or would be used to determine the banking organization is subject to the $75 billion or more in any of the applicability of Category II, Category III, enhanced prudential standards following indicators: Nonbank assets, or Category IV standards, the proposal framework, and tailor the application of weighted short-term wholesale funding, would provide a basis for assessing the those standards based on the combined or off-balance sheet exposure. extent to which a foreign banking U.S. assets of a foreign banking Standardized liquidity requirements 30 organization’s U.S. operations present organization 32 or, with respect to the (applicable at the level of its U.S. U.S. financial stability and safety and application of capital standards, the intermediate holding company (and soundness risks. The proposed total consolidated assets of a foreign certain of its depository institution thresholds would apply based on the banking organization’s U.S. subsidiaries), if any) would vary in level of each indicator averaged over the intermediate holding company.33 This stringency based on a foreign banking preceding four calendar quarters, as approach is similar to the current organization’s level of weighted short- described further below, in order to enhanced prudential standards term wholesale funding, as described in capture significant changes in a foreign framework. the interagency foreign banking banking organization’s U.S. risk profile, The Board believes a size threshold organization capital and liquidity rather than temporary fluctuations. based on a foreign banking proposal. organization’s U.S. presence is • Category IV risk-management In general, the proposed categories of standards align with the categories that appropriate for differentiating among standards and liquidity requirements foreign banking organizations in view of would apply to foreign banking would apply under the domestic proposal to U.S. banking organizations. the statutory purpose of the enhanced organizations with at least $100 billion prudential standards framework, which in combined U.S. assets that do not The domestic proposal includes an additional category of standards— is to prevent or mitigate risk to U.S. meet any of the thresholds proposed for financial stability.34 In addition, a size Categories II and III. In addition, as Category I—that would apply to U.S. global systemically important bank threshold based on the combined U.S. discussed in the interagency foreign operations or U.S. intermediate holding banking organization capital and holding companies (U.S. GSIBs), identified using the methodology under company of a foreign banking liquidity proposal, standardized organization would more closely align the Board’s U.S. GSIB surcharge rule.31 liquidity requirements would apply to a the application of enhanced prudential Because the U.S. GSIB surcharge rule foreign banking organization with $50 standards to both domestic and foreign would not identify a foreign banking billion or more in weighted short-term banking organizations. The asset size organization or U.S. intermediate wholesale funding at its combined U.S. thresholds set forth in this proposal are holding company as a U.S. GSIB, operations, at the level of its U.S. generally consistent with those that Category I standards would not apply to intermediate holding company (and would apply to large U.S. banking any foreign banking organization or U.S. certain of its depository institution organizations under the domestic intermediate holding company under subsidiaries), if any. proposal for Categories II through IV. this proposal. Capital standards, including stress In developing the asset size testing and capital planning, would Question 1: What would be the thresholds for the domestic proposal, apply to a U.S. intermediate holding advantages and disadvantages of the Board considered the requirements company that meets the thresholds for including enhanced prudential of section 165 of the Dodd-Frank Act, as Categories II, III and IV described above, standards that are more stringent than amended by EGRRCPA, together with based on its total consolidated assets or those in Category II, comparable to historical examples of large U.S. the materiality of the risk-based those of Category I under the domestic banking organizations that experienced indicators. The stress testing and capital proposal, and applying them to a U.S. planning requirements would increase intermediate holding company or the 32 Combined U.S. assets are reported on the FR Y– in stringency commensurate with the combined U.S. operations of a foreign 7 or FR Y–7Q. Total consolidated assets of a U.S. risk profile of a U.S. intermediate banking organization with a comparable intermediate holding company are reported on the Consolidated Statements for Holding Companies, holding company. systemic risk profile to that of a U.S. under Form FR Y–9C. Consistent with the existing The use of a multi-category approach GSIB? What differences in enhanced prudential standards framework, the combined U.S. would align the enhanced prudential prudential standards would be assets of a foreign banking organization would standards applicable to foreign banking appropriate to apply to such a U.S. continue to be calculated as the sum of the consolidated assets of each top-tier U.S. subsidiary organizations with those set forth in the intermediate holding company or of the foreign banking organizations (excluding any domestic proposal for U.S. firms with foreign banking organization with section 2(h)(2) company, if applicable) and the total respect to its combined U.S. operations, assets of each U.S. branch and U.S. agency of the 30 The specific standardized liquidity relative to the standards that would foreign banking organization. 33 requirements that would apply under Categories III apply under the proposal? All U.S. intermediate holding companies are and IV based on weighted short-term wholesale required to file Form FR Y–9C, regardless of funding levels of $75 billion and $50 billion, whether they control a bank. If the U.S. respectively, are discussed in the interagency 31 See 12 CFR part 217 subpart H; see also intermediate holding company has not filed an FR foreign banking organization capital and liquidity Regulatory Capital Rules: Implementation of Risk- Y–9C for each of the four most recent consecutive proposal. Proposed changes to the liquidity data Based Capital Surcharge for Global Systemically quarters, it must use the most recent quarter or reporting requirements under FR 2052a are Important Bank Holding Companies, 80 FR 49082 consecutive quarters as reported on FR Y–9C. discussed later in this proposal. (August 14, 2015). 34 12 U.S.C. 5365(a)(1).

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significant distress or failure during the risk-based indicators? To what extent a. Cross-Jurisdictional Activity financial crisis. The Board’s analysis can other factors adequately Foreign banking organizations with found that the crisis experience of differentiate among the risk profiles of U.S. operations that engage in domestic banking organizations with foreign banking organizations and serve significant cross-jurisdictional activity total consolidated assets of $100 billion, as tools to tailor prudential standards? present complexities that support the $250 billion, and $700 billion presented 2. Other Risk-Based Indicators application of more stringent standards. materially different risks to U.S. For example, significant cross-border financial stability and the U.S. economy Consistent with the domestic proposal, this proposal also would activity of the U.S. operations of a more broadly, which would support the foreign banking organization may differentiation of enhanced prudential consider the level of cross-jurisdictional activity, nonbank assets, off-balance require more sophisticated risk standards for firms included within management to appropriately address those size thresholds.35 In addition, size sheet exposure, and weighted short-term wholesale funding levels of a foreign the heightened interconnectivity and thresholds of these orders of magnitude complexity of those operations and the reflected observed differences in banking organization’s U.S operations to determine the applicable category of diversity of risks across all jurisdictions structural and operational complexity, in which the foreign banking and in the range and scale of financial standards. The Board is proposing to apply a uniform threshold of $75 billion organization provides financial services. services a firm provides. In addition, cross-jurisdictional activity The Board recognizes that the U.S. for each of these risk-based indicators. A threshold of $75 billion would may present increased challenges in operations of foreign banking resolution because there could be legal organizations are structured differently represent at least 30 percent and as much as 75 percent of the size of the or regulatory restrictions that prevent than domestic firms; nevertheless, the the transfer of financial resources across risks to U.S. financial stability and U.S. operations of a foreign banking organization or a U.S. intermediate borders where multiple jurisdictions safety and soundness that stem from and regulatory authorities are involved. size are present regardless of structure. holding company with combined U.S. assets or total consolidated assets, The use of a threshold based on cross- Because foreign banking organizations jurisdictional activity to differentiate operate through both branches and respectively, of between $100 billion and $250 billion. The agencies also prudential standards applicable to agencies as well as U.S. subsidiaries, the foreign banking organizations is also proposal would establish categories proposed a $75 billion threshold for these indicators in the domestic intended to maintain consistency with based on the foreign banking interagency proposal. Under this the thresholds proposed for large U.S. organization’s combined U.S. assets. proposal and the domestic proposal, banking organizations under the The size of a foreign banking setting the thresholds for these risk- domestic proposal. The Board’s capital organization’s U.S. operations provides based indicators at $75 billion would and liquidity regulations currently use a measure of the extent to which U.S. ensure that domestic banking total on-balance sheet foreign exposure, customers or counterparties may be organizations and the U.S. operations of as reported on the Country Exposure exposed to a risk of loss or suffer a foreign banking organizations that Report (FFIEC 009), to determine the disruption in the provision of services account for the vast majority—over 70 application of certain requirements for in the United States.36 For example, percent—of the total amount of each depository institution holding during the financial crisis some large risk-based indicator would be subject to companies and certain of their foreign banking organizations rapidly enhanced prudential standards. To the depository institution subsidiaries, such deleveraged their U.S. operations to extent the levels and distribution of an as the supplementary leverage ratio and address capital deficiencies, leaving indicator substantially change in the countercyclical capital buffer.38 commercial borrowers without a future, the Board may consider For purposes of determining the primary source of funding and modifications, if appropriate. application of prudential standards contributing to large-scale asset fire In addition to foreign banking under the proposal, a foreign banking sales. For foreign banking organizations organizations with $700 billion or more organization would measure cross- with the largest U.S. operations, rapid in combined U.S. assets, Category II jurisdictional activity as the sum of the deleveraging among those operations standards would apply to a foreign cross-jurisdictional assets and liabilities could disrupt U.S. markets and thereby banking organization with (1) $100 of its combined U.S. operations or its present significant risks to U.S. financial billion or more in combined U.S. assets U.S. intermediate holding company, as stability in the same way as similarly and (2) combined U.S. operations with applicable, excluding intercompany sized domestic firms, due to the $75 billion or more in cross- liabilities and collateralized materiality of their presence in the jurisdictional activity. Similarly, in intercompany claims. Measuring cross- United States. addition to foreign banking jurisdictional activity taking into Question 2: What are the advantages organizations with $250 billion or more and disadvantages of using size in combined U.S. assets, Category III In addition to U.S. intermediate holding companies thresholds to tailor prudential standards standards would apply to foreign with $250 billion or more in total assets, Category for foreign banking organizations? In banking organization with (1) $100 III capital standards would apply to a U.S. what ways, if any, does the inclusion of intermediate holding company with (1) $100 billion billion or more in combined U.S assets or more in total consolidated assets and (2) $75 asset size thresholds in prudential and (2) combined U.S. operations with billion or more in weighted short-term wholesale standards drive changes in foreign at least $75 billion in weighted short- funding, nonbank assets, or off-balance sheet banking organizations’ business models exposure. term wholesale funding, nonbank assets, 38 and risk profiles in ways that differ from 37 See 12 CFR 217.10 (requiring advanced or off-balance sheet exposure. approaches Board-regulated institutions to maintain the effects of thresholds based on other a supplementary leverage ratio); 217.11(b) 37 For capital standards, in addition to U.S. (requiring advanced approaches Board-regulated 35 83 FR 61408, 61413–14 (November 29, 2018). intermediate holding companies with $700 billion institutions to maintain a countercyclical capital 36 For domestic banking organizations, categories or more in total assets, Category II would apply to buffer); 217.100(b)(1) (describing the size and on- of standards are defined based on total consolidated a U.S. intermediate holding company with (1) total balance sheet foreign exposure thresholds for assets, including the U.S. banking organization’s consolidated assets of $100 billion or more and (2) determining an advanced approaches Board- international operations. $75 billion or more in cross-jurisdictional activity. regulated institution).

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account both assets and liabilities— claims, including repurchase As an example of how the proposed instead of just assets—would provide a agreements and securities lending financial collateral recognition would broader gauge of the scale of cross- agreements. Specifically, claims on non- operate, if the U.S. operations of a border operations and associated risks, U.S. affiliates would be reduced by the foreign banking organization placed as it includes both borrowing and value of any financial collateral in a cash with the parent foreign banking lending activities outside of the United manner consistent with the Board’s organization through a reverse States.39 The proposal would adjust the capital rule,42 which permits, for repurchase agreement, and the parent measurement of cross-jurisdictional example, banking organizations to foreign banking organization provided activity to exclude intercompany recognize financial collateral when securities that qualified as financial liabilities and to recognize collateral in measuring the exposure amount of collateral, the exposure of the U.S. calculating intercompany claims in repurchase agreements and securities operations would be reduced by the order to reflect the structural differences borrowing and securities lending value of the securities in a manner between foreign banking organizations’ transactions (together, repo-style consistent with the capital rule’s operations in the United States and transactions).43 The capital rule collateral haircut approach. If the value domestic holding companies. recognizes as financial collateral certain of the claim exceeds the value of the Specifically, the proposed cross- financial collateral after taking into types of high-quality collateral, jurisdictional activity indicator would account supervisory haircuts, then the including cash on deposit and securities exclude liabilities of the combined U.S. uncollateralized portion of the claim issued by the U.S. government, as well operations or U.S. intermediate holding would be included in the foreign company that reflect transactions with as certain types of equity securities and banking organization’s measure of cross- non-U.S. affiliates. Intercompany debt. With the exception of cash on jurisdictional activity. Conversely, if the liabilities generally represent funding deposit, the banking organization also is value of the collateral after taking into from the foreign banking organization to required to have a perfected, first- account supervisory haircuts exceeds its U.S. operations and, in the case of priority interest in the collateral or, the value of the claim, the exposure to certain long-term debt instruments, may outside of the United States, the legal the non-U.S. affiliate would be excluded be required by regulation.40 The equivalent thereof.44 Permitting the from the measure of cross-jurisdictional proposed exclusion recognizes the reduction of certain claims on non-U.S. activity. benefit of the foreign banking affiliates if the collateral meets the In addition to the proposal to exclude organization providing support to its definition of financial collateral would intercompany liabilities and certain U.S. operations. Short-term funding ensure that the collateral is liquid, while collateralized intercompany claims from from affiliates, which may pose the use of supervisory haircuts would the measure of cross-jurisdictional heightened liquidity risks to the U.S. also limit risk associated with price activity, the Board is requesting operations, would be captured in the volatility. In addition, relying on the comment on alternatives to adjusting proposal’s measure of weighted short- capital rule’s definition of financial the measure for cross-jurisdictional term wholesale funding. collateral would provide clarity activity to recognize that the U.S. Foreign banking organizations’ U.S. regarding the types of collateral eligible intermediate holding company or operations often intermediate to reduce the amount of cross- combined U.S. operations engage in transactions between U.S. clients and jurisdictional claims under this substantial and regular transactions foreign markets, including by approach. with non-U.S. affiliates. facilitating access for foreign clients to Under the first alternative, the Board U.S. markets, and clearing and settling 42 See 12 CFR 217.37. would exclude all transactions with U.S. dollar-denominated transactions. In 43 See the definition of ‘‘repo-style transaction’’ at non-U.S. affiliates from the computation addition, they engage in transactions to 12 CFR 217.2. of the cross-jurisdictional activity of a manage enterprise-wide risks. In these 44 See 12 CFR 217.2. The proposal would differ U.S. intermediate holding company or roles, they engage in substantial and from the FFIEC 009, on which U.S. intermediate the combined U.S. operations of a holding companies report cross-border claims, in regular transactions with non-U.S. two respects. The FFIEC 009 uses different rules to foreign banking organization. This affiliates. In recognition that the U.S. recognize collateral, using the term ‘‘eligible alternative would focus only on third- operations have increased cross- collateral,’’ which includes cash as well as party assets and liabilities and may be jurisdictional activity as a result of these investment grade debt or marketable equity a less burdensome way to account for securities. In addition, the FFIEC 009 requires activities, the proposal would include in reporting of repurchase agreements, securities the structural differences between cross-jurisdictional claims only the net lending agreements and other similar financing foreign banking organizations’ exposure (i.e., net of collateral value agreements at the value of the outstanding claim, operations in the United States and subject to haircuts) of all secured regardless of the amount of collateral provided. See large domestic holding companies. Instructions for the Preparation of the Country Under the second alternative, the transactions with non-U.S. affiliates to Exposure Report (FFIEC 009) at 12–13 (effective the extent that these claims are September 2016). The proposal would use the Board would adjust the $75 billion collateralized by financial collateral.41 concept of financial collateral from the capital rule threshold for the cross-jurisdictional The proposed recognition of financial and would recognize collateral for any claim, activity indicator. For example, the collateral would apply to all types of including claims to which the collateral haircut Board could apply a threshold of $100 approach applies under the capital rule. In addition, the FFIEC 009 measures cross- billion for cross-jurisdictional activity 39 The Basel Committee on Banking Supervision jurisdictional activity on an ultimate-risk basis, such that the U.S. intermediate holding (BCBS) recently amended its measurement of cross- whereby claims are allocated based on the country company or combined U.S. operations border activity to more consistently reflect of residence of the ultimate obligor, which, in of a foreign banking organization would derivatives, and the Board anticipates it will certain cases, can mean the country or residence of separately propose changes to the FR Y–15 in a the collateral provided (ultimate-risk basis). be subject to Category II capital or manner consistent with this change. Any related Securities lending agreements and repurchase liquidity standards if it exceeded this changes to the proposed cross-jurisdictional activity agreements, however, are allocated based on the threshold. This alternative would indicator would be updated through those residence of the counterparty, without taking into recognize the flows between a foreign separately proposed changes to the FR Y–15. consideration features of the collateral. The 40 See 12 CFR 252.162 and 12 CFR 252.165. proposal would require allocation of exposures on banking organization’s U.S. operations 41 See the definition of ‘‘financial collateral’’ at 12 an ultimate-risk basis (subject to the netting and its foreign affiliates without making CFR 217.2. described above). any additional adjustments to address

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intercompany liabilities or this alternative approach, collateral could account for the risk of collateralized intercompany claims. would be recognized in the calculation transactions with a delayed settlement This alternative would not require a of the exposure if the collateral is date, and why? What are the advantages foreign banking organization to monitor HQLA. Would relying on the definition and disadvantages of the use of collateral transfers or calculate of HQLA help ensure the collateral is settlement-date accounting versus trade- supervisory haircuts in measuring its liquid and provide greater clarity on the date accounting for purposes of the cross-jurisdictional activity. types of collateral that could be cross-jurisdictional activity indicator? Question 3: What are the advantages recognized? What are the burdens Question 12: What are the advantages and disadvantages of recognizing the associated with this approach and how or disadvantages of the alternative value of collateral for certain do these burdens compare with the approaches to measuring non-U.S. transactions with non-U.S. affiliates in benefits? affiliate transactions for purposes of the the computation of the cross- Question 8: As discussed above, cross-jurisdictional activity indicator? jurisdictional activity of a U.S. measuring cross-jurisdictional activity How do these alternatives compare to intermediate holding company or the on an ultimate risk basis takes into the proposal? combined U.S. operations of a foreign consideration both the type of collateral, Question 13: What other positions, if banking organization? How would this and the location of the collateral or any, should be excluded from or recognition align with the objectives of issuer. On the FFIEC 009, if collateral is included in the cross-jurisdictional the proposed indicator as a measure of in the form of investment grade debt or activity indicator for purposes of operational complexity, scope, and risks marketable securities, risk is allocated determining prudential standards, and associated with operations and based on the residence of the issuer of why? How would excluding from the activities in foreign jurisdictions and the security, while cash collateral is cross-jurisdictional activity measure a with principles of national treatment allocated based on the residence of the broader or narrower set of intercompany and equality of competitive legal entity where the cash is held. What assets and liabilities align with the opportunity? would be the advantages and objectives of the proposed indicator as Question 4: What would be the disadvantages of allocating cross- a measure of operational complexity, advantages and disadvantages of jurisdictional claims based on the scope, and risks associated with excluding from the measure of cross- location of the entity holding the operations and activities in foreign jurisdictional activity liabilities to non- collateral for securities and cash? jurisdictions and with principles of U.S. affiliates? How would this Question 9: On the FFIEC 009, national treatment and equality of exclusion align with the objectives of the repurchase agreements, securities competitive opportunity? Question 14: What would be the proposed indicator as a measure of lending agreements, and other similar advantages and disadvantages of operational complexity, scope, and risks financial transactions cannot be re- including in or excluding from the associated with operations and allocated or ‘‘transferred’’ to a different proposed cross-jurisdictional activity activities in foreign jurisdictions and jurisdiction based on the location of the indicator positions of the U.S. branches with principles of national treatment collateral or issuer. What would be the and agencies of a foreign banking and equality of competitive advantages and disadvantages of organization with the parent foreign opportunity? allowing repurchase agreements, banking organization or other non-U.S. Question 5: What are the advantages securities financing transactions, and affiliates? For example, what would be and disadvantages of recognizing other similar agreements to be excluded the advantages or disadvantages of collateral for all repo-style transactions from the measure of cross-jurisdictional including or excluding reported gross and other collateralized positions? To activity if the collateral was issued by a due from and gross due to the parent what extent should the type of U.S. entity or, for cash collateral, foreign banking organization or other transaction determine whether located in the United States? How would such treatment align with the non-U.S. affiliates? collateral is recognized? Question 15: What modifications to Question 6: What are the advantages objectives of the proposed indicator as a measure of operational complexity, the proposed cross-jurisdictional and disadvantages of relying on the activity measure should the Board definition of financial collateral in the scope, and risks associated with operations and activities in foreign consider to better align it with the capital rule and applying supervisory proposed treatment for U.S. banking haircuts in calculating the amount of jurisdictions and with principles of national treatment and equality of organizations under the domestic cross-jurisdictional claims? What are proposal and promote consistency in the burdens associated with this competitive opportunity? Question 10: What are the advantages the measurement of assets and approach and how do these burdens liabilities across the Board’s prudential compare with the benefits? Are there and disadvantages of measuring cross- jurisdictional activity on an immediate- standards framework and applicable other criteria that the Board should accounting standards, and why? How consider in addition to this approach counterparty basis (i.e., on the basis of the country of residence of the borrower) would any such modification more (e.g., the amount of time that would be appropriately account for the risks of needed to monetize the collateral) and rather than on an ultimate-risk basis? What, if any, clarifications could be cross-jurisdictional activity for foreign why? banking organizations and mitigate Question 7: What would be the made to the measurement of cross- jurisdictional activity on an ultimate- risks to U.S. financial stability? advantages and disadvantages of other Question 16: To what extent would ways to define eligible collateral, such risk basis to ensure consistency across banking organizations and more using a particular measure of cross- relying on the definition of high-quality jurisdictional activity create incentives liquid assets (HQLA) in the liquidity accurate assessment of risk? Question 11: What is the most for foreign banking organizations to coverage ratio rule (LCR rule)? 45 Under appropriate way in which the proposed restructure relationships between U.S. subsidiaries, U.S. branches and 45 See Liquidity Coverage Ratio: Liquidity Risk cross-jurisdictional activity indicator Measurement Standards, 79 FR 61440, 61450 (Oct. agencies, and non-U.S. affiliates? 10, 2014), codified at 12 CFR part 50 (OCC), 12 CFR the definition of HQLA under the Board’s LCR rule, Question 17: What alternative part 249 (Board), and 12 CFR part 329 (FDIC). For see 12 CFR 249.20. indicators should the Board consider to

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the proposed cross-jurisdictional presented by domestic banking margin calls on derivative exposures activity indicator as a measure of cross- organizations. and draws on commitments. These border activity of a foreign banking Nonbank activities also may involve a exposures can be a source of safety and organization? How would any broader range of risks than those soundness risk, as organizations with alternative indicator align with the associated with banking activities, and significant off-balance sheet exposure proposed cross-jurisdictional activity can increase interconnectedness with may have to fund these positions in the measure for U.S. banking organizations other financial market participants, market in a time of stress. These risks under the domestic interagency requiring sophisticated risk also may affect financial stability proposal? management and governance, including because they can manifest rapidly and Question 18: What are the advantages capital planning, stress testing, and with less transparency to other market and disadvantages of the proposal or liquidity risk management. If not participants, in comparison to the risks the alternatives in combination with adequately managed, the risks associated with on-balance sheet other potential changes to the associated with nonbanking activities positions. In addition, because draws on measurement and reporting of cross- could present significant safety and off-balance sheet exposures such as jurisdictional activity discussed above soundness concerns and increase committed credit and liquidity facilities (e.g., ultimate-risk basis)? How would financial stability risks. The distress or tend to increase in times of stress, they changes to the measurement and failure of a nonbank subsidiary could be can exacerbate the effects of stress reporting of cross-jurisdictional activity destabilizing to the U.S. operations of a conditions.47 in combination with the proposal or foreign banking organization and the Off-balance sheet exposure may also alternatives align with the objectives of foreign banking organization itself, and serve as a measure of the proposed indicator as a measure of cause counterparties and creditors to interconnectedness. Some off-balance operational complexity, scope, and risks lose confidence in the organization’s sheet exposures, such as derivatives, are associated with operations and global operations. Nonbank assets also concentrated among the largest financial activities in foreign jurisdictions and reflect the degree to which a foreign firms.48 The distress or failure of one with principles of national treatment banking organization and its U.S. party to a financial contract, such as a and equality of competitive operations may be engaged in activities derivative or securities financing opportunity? through legal entities that are not transaction, can trigger disruptive subject to separate capital requirements Question 19: Data reported on the terminations of these contracts that or to the direct regulation and destabilize the defaulting party’s Banking Organization Systemic Risk supervision applicable to a regulated Report (FR Y–15) is used to measure the otherwise solvent affiliates.49 Such a banking entity. default also can lead to disruptions in systemic risk of large banking The proposed nonbank assets other financial markets, for example, by organizations, including to identify and indicator would align with the measure causing market participants to rapidly calibrate surcharges applied to U.S. of nonbank assets currently used in the unwind trading positions.50 In this way, GSIBs. The Board may amend the FR Y– capital plan rule to tailor certain the effects of one party’s failure or 15 in this context, and would seek requirements as well as with the distress can be amplified by its off- comment on the effect of any changes nonbank assets indicator in the balance sheet connections with other on the U.S. GSIB surcharge framework domestic proposal.46 as well as on the advantages and financial market participants. disadvantages of incorporating these c. Off-Balance Sheet Exposure Under the proposal, off-balance sheet changes into the calculation of risk Off-balance sheet exposure exposure would be measured as the indicators. The Board also may complements the measure of size by difference between total exposure and separately amend the FR Y–15 in the taking into consideration financial and context of the calculation of risk banking activities not reflected on the 47 See William F. Bassett, Simon Gilchrist, indicators. What are the advantages and balance sheet of a foreign banking Gretchen C. Weinbach, Egon Zakrajsˇek, ‘‘Improving Our Ability to Monitor Bank Lending,’’ in Risk disadvantages of the risk-based organization with respect to its U.S. Topography: Systemic Risk and Macro Modeling indicator definitions tracking the inputs operations. Like size, off-balance sheet 149–161 (Markus Brunnermeier and Arvind to the U.S. GSIB surcharge framework? exposure provides a measure of the Krishnamurthy, eds. 2014), available at: http:// extent to which customers or www.nber.org/chapters/c12554. b. Nonbank assets 48 See, e.g., Sheri M. Markose, Systemic Risk from counterparties may be exposed to a risk Global Financial Derivatives: A Network Analysis The level of a banking organization’s of loss or suffer a disruption in the of Contagion and its Mitigation with Super- investment in nonbank subsidiaries provision of services. In addition, off- Spreader Tax, IMF Working Papers (Nov. 30, 2012), provides a measure of the organization’s balance sheet exposure can lead to available at: https://www.imf.org/en/Publications/ WP/Issues/2016/12/31/Systemic-Risk-from-Global- business and operational complexity. significant future draws on liquidity, Financial-Derivatives-A-Network-Analysis-of- Specifically, banking organizations with particularly in times of stress. During Contagion-and-Its-40130. significant investments in nonbank the financial crisis, for example, 49 To address these risks, the agencies have subsidiaries are more likely to have vulnerabilities among the U.S. established restrictions relating to the qualified complex corporate structures, inter- operations of foreign banking financial contracts of U.S. GSIBs, the insured depository institution subsidiaries of U.S. GSIBs, affiliate transactions, and funding organizations were exacerbated by and the U.S. operations of systemically important relationships. A banking organization’s foreign banking organizations. See 12 CFR part 252, complexity is positively correlated with 46 The capital plan rule defines ‘‘average total subpart I (Board); 12 CFR part 47 (OCC); and 12 the impact of the organization’s failure nonbank assets’’ as the average of the total nonbank CFR part 382 (FDIC). That rule does not apply to assets of a U.S. intermediate holding company savings and loan holding companies, to the U.S. or distress. Through its U.S. subject to the capital plan rule, calculated in operations of other large foreign banking intermediate holding company, a accordance with the instructions to the FR Y–9LP, organizations, or to other large bank holding foreign banking organization can for the four most recent consecutive quarters or, if companies. maintain significant investments in the intermediate holding company has not filed the 50 See e.g., The Orderly Liquidation of Lehman FR Y–9LP, for each of the four most recent Brothers Holdings Inc. under the Dodd-Frank Act, nonbank subsidiaries, and therefore may consecutive quarters, for the most recent quarter or 5 FDIC Quarterly No. 2, 31 (2011), https:// present structural, funding, and consecutive quarters, as applicable. See 12 CFR www.fdic.gov/bank/analytical/quarterly/2011-vol5- resolution concerns analogous to those 225.8(d)(2). 2/article2.pdf.

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on-balance sheet assets.51 Total funding from affiliates can contribute to asset size and cross-jurisdictional exposure includes on-balance sheet a firm’s funding vulnerability in times activity. For example, a foreign banking assets plus certain off-balance sheet of stress. organization or U.S. intermediate exposures, including derivative Weighted short-term wholesale holding company could be subject to exposures, repo-style transactions, and funding levels would serve as both a Category II standards if one or more of other off-balance sheet exposures (such threshold for the general application of these indicators equals or exceeds a as commitments). Category III standards, as well as a level such as $100 billion or $200 separate threshold for applying billion. A threshold of $200 billion d. Weighted Short-Term Wholesale enhanced liquidity requirements to Funding would represent at least 30 percent and foreign banking organizations whose as much as 80 percent of total assets for The proposed weighted short-term combined U.S. operations reflect the U.S. operations of a foreign banking wholesale funding indicator would heightened liquidity risk profiles. A organization with between $250 billion provide a measure of the liquidity risk foreign banking organization whose and $700 billion in combined U.S. presented by the U.S. operations of a combined U.S. operations have assets. If the Board were to adopt foreign banking organization, as reliance weighted short-term wholesale funding additional indicators for purposes of on short-term, generally uninsured of at least $75 billion would be subject identifying foreign banking funding from more sophisticated to the general application of Category III organizations with U.S. operations that counterparties can make those standards, which would include daily should be subject to Category II operations vulnerable to large-scale liquidity data reporting under this standards, at what level should the funding runs. In particular, foreign proposal and full standardized liquidity threshold for each indicator be set, and banking organizations with U.S. requirements applicable to a U.S. why? Commenters are encouraged to operations that fund long-term assets intermediate holding company and provide data supporting their with short-term liabilities from financial certain depository institution recommendations. intermediaries such as investment funds subsidiaries, if any, under the may need to rapidly sell less liquid interagency foreign banking 3. Alternative Scoping Criteria assets to meet withdrawals and organization capital and liquidity An alternative approach for tailoring maintain their operations in a time of proposal. By contrast, a foreign banking the application of enhanced prudential stress, which they may be able to do organization subject to Category III standards to a foreign banking only at ‘‘fire sale’’ prices. Asset fire sales standards whose combined U.S. organization would be to use a single, can cause rapid deterioration in a operations have less than $75 billion of comprehensive score to assess the risk foreign banking organization’s financial weighted short-term wholesale funding profile and systemic footprint of a condition and adversely affect U.S. would be subject to a monthly liquidity foreign banking organization’s financial stability by driving down asset data reporting requirement under this combined U.S. operations or U.S. prices across the market. As a result, the proposal and reduced standardized intermediate holding company. The use of weighted short-term wholesale liquidity requirements applicable to a Board uses such an identification funding presents both safety and U.S. intermediate holding company and methodology (scoring methodology) to soundness and financial stability risks. certain depository institution identify a U.S. bank holding company as Short-term wholesale funding also subsidiaries, if any, under the a U.S. GSIB and apply risk-based capital provides a measure of interagency foreign banking surcharges to these firms. As an interconnectedness among market organization capital and liquidity alternative in the domestic proposal, the 53 participants, including other financial proposal. Board described a scoring methodology sector entities, which can provide a Question 20: What are the advantages that could be used to tailor prudential mechanism for transmission of distress. and disadvantages of the proposed risk- standards for domestic banking The proposed short-term wholesale based indicators? What different organizations. funding indicator would measure the indicators should the Board use, and The scoring methodology in the extent to which the U.S. operations of why? Board’s regulations is used to calculate Question 21: The Board is considering a foreign banking organization rely on a U.S. GSIB’s capital surcharge under 52 whether Category II standards should short-term wholesale funding sources. two methods.54 The first method is apply based on weighted short-term Weighted short-term wholesale funding based on the sum of a bank holding wholesale funding, nonbank assets, and would include exposures between the company’s systemic indicator scores off-balance sheet exposure, using a U.S. operations of a foreign banking reflecting its size, interconnectedness, higher threshold than the $75 billion organization and its non-U.S. affiliates, cross-jurisdictional activity, threshold that would apply for Category as reliance on short-term wholesale substitutability, and complexity III standards, in addition to the (method 1). The second method is based 51 thresholds discussed above based on In connection with extending the applicability on the sum of these same measures of of the FR Y–15 reporting requirements to U.S. branches and agencies of a foreign banking 53 In addition, as discussed in more detail in the risk, except that the substitutability organization (discussed below), the proposal would interagency foreign banking organization capital measures are replaced with a measure of add this measure of off-balance sheet exposure to and liquidity proposal, domestic and foreign the bank holding company’s reliance on the FR Y–15 reporting form as a separate line item. banking organizations subject to Category IV short-term wholesale funding (method 52 Specifically, short-term wholesale funding is standards that have weighted short-term wholesale 55 the amount of a firm’s funding obtained from funding levels of at least $50 billion would be 2). Consistent with the domestic wholesale counterparties or retail brokered deposits subject to reduced standardized liquidity and sweeps with a remaining maturity of one year requirements, which would apply to its U.S. 54 Application of a U.S. GSIB’s capital surcharge or less. Categories of short-term wholesale funding intermediate holding company and certain of its is determined based on an annual calculation. are then weighted based on four residual maturity depository institution subsidiaries, if any. The Similarly, the alternative scoping criteria under this buckets; the asset class of collateral, if any, backing Board is requesting comment on whether it should proposal would be based on an annual calculation. the funding; and characteristics of the counterparty. impose standardized liquidity requirements on the See 12 CFR part 217, subpart H. See, 12 CFR 217.406 and Regulatory Capital Rules: U.S. branch and agency network of a foreign 55 For more discussion relating to the scoring Implementation of Risk-Based Capital Surcharges banking organization, as well as possible methodology, please see the Board’s final rule for Global Systemically Important Bank Holding approaches for doing so, which would be proposed establishing the scoring methodology. See Companies, 80 FR 49082 (August 14, 2015). through a future rulemaking. Regulatory Capital Rules: Implementation of Risk-

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proposal and as an alternative to the consistency with the Board’s existing estimates of method 1 and method 2 threshold approach under this proposal, regulations. scores for a banking organization whose the Board is seeking comment on use of Under the alternative scoring distress impacted U.S. financial stability the scoring methodology to tailor the approach, the size of a foreign banking during the crisis (Wachovia), and application of enhanced prudential organization’s combined U.S. assets, estimated method 1 and method 2 standards to the U.S. operations of together with the method 1 or method scores assuming significant growth in foreign banking organizations. 2 score of its U.S. operations under the operations (e.g., if one or more U.S. The scoring methodology was scoring methodology, would be used to intermediate holding companies each designed to identify and assess the determine which category of standards had $700 billion in assets). The Board systemic risk of a large banking would apply. Consistent with the also considered the outlier method 1 organization, and similarly can be used proposal, most enhanced prudential and method 2 scores for domestic and to measure the risks posed by the U.S. standards would be based on the foreign banking organizations with more operations of foreign banking method 1 or method 2 score applicable than $250 billion in total consolidated organizations.56 The component to a foreign banking organization’s assets that are not U.S. GSIBs.61 measures of the scoring methodology combined U.S. operations. The Based on this analysis and to identify banking organizations that have application of capital standards, maintain comparability to the domestic heightened risk profiles and provide a however, would apply based on the proposal, under the alternative scoring basis for assessing risk to safety and method 1 or method 2 score of a foreign approach the Board would apply soundness and U.S. financial stability. banking organization’s U.S. Category II standards to any foreign Size, interconnectedness, cross- intermediate holding company. U.S. banking organization with at least $100 jurisdictional activity, substitutability, intermediate holding companies already billion in combined U.S. assets whose complexity, and short-term wholesale report information required to calculate combined U.S. operations have (a) a funding are indicators of risk for both method 1 and method 2 scores, and in method 1 score that meets or exceeds a foreign and domestic banking connection with this proposal, those minimum score between 60 and 80, or organizations. Similar to the thresholds- reporting requirements would be (b) a method 2 score that meets or based approach set forth in this extended to include a foreign banking exceeds a minimum score between 100 organization’s combined U.S. and 150. These same size thresholds proposal, the indicators used in the 59 scoring methodology closely align with operations. and score ranges would apply to U.S. To determine which category of the risk-based factors specified in intermediate holding companies for the standards would apply under the section 165 of the Dodd-Frank Act. application of capital standards. alternative scoring methodology, the Because this information would be Category III. Under the proposal, the Board considered the distribution of Board would apply Category III reported publicly, use of the scoring method 1 and method 2 scores of the methodology would promote standards to a foreign banking U.S. operations of foreign banking organization with combined U.S. assets transparency in the application of such organizations, U.S. intermediate holding standards to foreign banking of $250 billion or more, or for capital companies, domestic bank holding standards, a U.S. intermediate holding organizations. companies and certain savings and loan The Board has previously used the company with total consolidated assets holding companies with at least $100 of $250 billion or more, that does not scoring methodology and global billion in total consolidated assets.60 As methodology 57 to identify and apply meet the criteria for Category II. This discussed below, the Board is providing reflects, among other things, the crisis enhanced prudential standards to U.S. ranges of scores for the application of subsidiaries and operations of foreign experience of domestic banking Category II and Category III standards. If organizations with total consolidated global systemically important banking the Board adopts a final rule that uses assets of $250 billion or more, which organizations (foreign GSIBs). For the scoring methodology to establish presented materially different risks to example, the Board’s restrictions on tailoring thresholds, the Board would U.S. financial stability relative to firms qualified financial contracts and total set a single score within the listed with less than $250 billion in assets. loss-absorbing capacity requirements ranges for the application of Category II Similarly, under the domestic proposal, apply to U.S. GSIBs and the U.S. and Category III standards. the Board would at a minimum apply operations of foreign GSIBs, with the Category II. In selecting the ranges of Category III standards to a firm with latter identified under the Board’s method 1 or method 2 scores that could assets of $250 billion or more, reflecting scoring methodology or the global define the application of Category II 58 the threshold above which the Board methodology. Accordingly, use of the standards, the Board considered the must apply enhanced prudential scoring methodology would promote potential of a firm’s material distress or standards under section 165. failure to disrupt the U.S. financial The domestic proposal seeks Based Capital Surcharges for Global Systemically system or economy. The Board comment on an alternative scoring Important Bank Holding Companies, 80 FR 49082 estimated method 1 and method 2 (Aug. 14, 2015). approach under which a firm with total scores for domestic banking 56 See infra note 41. consolidated assets between $100 organizations with more than $250 57 Global methodology means the assessment billion and $250 billion that has a billion in total consolidated assets, and methodology and the higher loss absorbency method 1 or method 2 score within a requirement for global systemically important banks foreign banking organizations with more specified range would be subject to issued by the BCBS, as updated from time to time. than $250 billion in combined U.S. See 12 CFR 252.2. assets. To this sample, the Board added 58 See 12 CFR 252.82(b) (definition of ‘‘covered 61 Outliers can be determined by a number of entity’’ with regard to restrictions on qualified statistical methods. For these purposes, the Board financial contracts); 12 CFR 252.160 (definition of 59 As discussed below, under the proposal, the FR computed an outlier as the third quartile plus three ‘‘covered IHC’’ with regard to total loss-absorbing Y–15 would be amended to collect risk-indicator times the interquartile range of method 1 and capacity requirements). See also 12 CFR 252.153(b) data for the combined U.S. operations of foreign method 2 scores of U.S. bank holding companies, (identification of foreign GSIBs in the enhanced banking organizations. certain U.S. savings and loan holding companies, prudential standards rule; 12 CFR 252.170(a)(2)(ii) 60 In conducting its analysis, the Board U.S. intermediate holding companies, and the (definition of ‘‘major foreign banking organization’’ considered method 1 and method 2 scores as of combined U.S. operations of foreign banking in single counterparty credit limits rule). September 30, 2018. organizations.

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Category III standards. Specifically, the purposes of tailoring prudential each of the four most recent calendar Board proposed selecting a minimum standards, should the Board use method quarters, or until the foreign banking score for application of Category III 1 scores, method 2 scores, or both? What organization met the criteria for another standards between 25 and 45 under are the challenges of applying the category of standards based on an method 1, or between 50 and 85 under alternative scoring approach to the increase in the value of one or more method 2. The maximum score for combined U.S. operations or U.S. indicators, averaged over the preceding application of the Category III standards intermediate holding company of a four calendar quarters. This approach would be one point lower than the foreign banking organization? What would be consistent with the existing minimum score selected for application modifications to the alternative scoring applicability and cessation requirements of Category II standards. In selecting approach, if any, should the Board of the enhanced prudential standards these ranges, the Board compared the consider and why (e.g., should rule.63 scores of domestic firms with total intercompany transactions be reflected If a foreign banking organization consolidated assets of between $100 in the calculation of indicators)? becomes subject to a different category billion and $250 billion with those of Question 24: If the Board adopted the of standards, the standards under that firms with total consolidated assets alternative scoring approach, what category would be effective on the first greater than $250 billion. The Board would be the advantages or day of the second quarter following the performed a similar analysis including disadvantages of requiring scores to be date on which the foreign banking the scores of foreign banking calculated for the U.S. operations of a organization met the criteria for that organizations and found similar results. foreign banking organization at a category of standards. For example, a The Board is therefore considering the frequency greater than annually, foreign banking organization that same thresholds for application of including, for example, requiring scores changes from Category IV to Category III Category III standards to foreign banking to be calculated on a quarterly basis? standards based on an increase in the organizations under the alternative Question 25: With respect to each value of a risk-based indicator averaged scoring approach. Use of these category of standards described above, over the first, second, third, and fourth thresholds would maintain comparable at what level should the method 1 or quarters of a calendar year would be treatment between domestic firms and method 2 score thresholds be set and subject to Category III standards the U.S. operations of foreign banking why? Commenters are encouraged to beginning on April 1 (the first day of the organizations under the alternative provide data supporting their second quarter) of the following year. scoring approach. recommendations. Under the proposal, a foreign banking Specifically, under the alternative Question 26: What other approaches organization could be subject to scoring approach, Category III standards should the Board consider in setting different categories of standards for its would apply to a foreign banking thresholds for tailored prudential combined U.S. operations and U.S. organization with combined U.S. assets standards for foreign banking intermediate holding company. between $100 billion and $250 billion organizations and why? How would any Consider, for example, a foreign banking with a method 1 score that meets or such approach affect the comparability organization with combined U.S. assets exceeds a minimum score between 25 of requirements across domestic of $400 billion, cross-jurisdictional and 45 or a method 2 score that meets banking organizations and foreign activity of $80 billion at its combined or exceeds a minimum score between 50 banking organizations? U.S. operations, and a U.S. intermediate and 85, and in either case is below the holding company with consolidated 4. Determination of Applicable Category score threshold for Category II total assets of $260 billion and $45 of Standards standards. These same size thresholds billion of cross-jurisdictional activity. In and score ranges would apply to U.S. Under the proposal, a foreign banking this example, the combined U.S. intermediate holding companies for the organization with combined U.S. assets operations of the foreign banking application of capital standards. of $100 billion or more would be organization would be subject to Category IV: Under the alternative required to determine the category of Category II liquidity and risk- scoring approach, Category IV standards standards that would apply to its management standards as well as single- would apply to a foreign banking combined U.S. operations or U.S. counterparty credit limits 64 because organization with at least $100 billion in intermediate holding company, as together, the U.S. intermediate holding combined U.S. assets whose method 1 applicable. In order to capture company and branch and agency or method 2 score for its combined U.S. significant changes, rather than network have more than $75 billion in operations is below the minimum score temporary fluctuations, in a foreign cross-jurisdictional activity. However, threshold for Category III. Likewise, banking organization’s U.S. risk profile, the U.S. intermediate holding company Category IV capital standards would a category of standards would apply to would be subject to Category III capital apply to a foreign banking organization a foreign banking organization’s U.S. standards based on its total consolidated with a U.S. intermediate holding operations or its U.S. intermediate assets (which exceed $250 billion) and company that has at least $100 billion holding company based on a four- lower level of cross-jurisdictional in total assets and does not meet the quarter average of the levels for each activity. minimum score threshold for Category indicator.62 A foreign banking Question 27: What are the advantages III. organization would remain subject to a and disadvantages of determining the Question 22: What are the advantages category of standards until it no longer category of standards applicable to a and disadvantages to the use of the meets the indicators for that category in foreign banking organization’s alternative scoring approach and combined U.S. operations or U.S. category thresholds described above 62 With respect to a foreign banking organization intermediate holding company on a instead of the proposed thresholds for that has reported an indicator for less than four quarterly basis? Would making this foreign banking organizations? quarters, the proposal would refer to the average of Question 23: If the Board were to use the most recent quarter or quarters. The measurement approach discussed in this section 63 See e.g., 12 CFR 252.150. the alternative scoring approach to would apply to all standards within a given 64 Single-counterparty credit limits are discussed differentiate foreign banking category, including regulatory and reporting in section II.D. of this SUPPLEMENTARY INFORMATION organizations’ U.S. operations for requirements for a foreign banking organization. section.

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determination on an annual basis would addition, U.S. intermediate holding The proposal would make changes to be more appropriate and why? companies subject to Category II capital the Board’s single-counterparty credit Question 28: What are the advantages standards would continue to report the limits to align the thresholds for and disadvantages of the proposed information required under the existing application of these requirements with transition period for foreign banking FR Y–14 reporting forms to inform the the proposed thresholds for other organizations that meet the criteria for Board’s supervisory stress test and enhanced prudential standards and to a different category of standards due to facilitate review of the firm’s capital tailor further the requirements changes in its U.S. risk profile? What plan, as well as the ongoing monitoring applicable to U.S. intermediate holding would be the advantages or and supervision of these companies. companies. Under the proposal, single- disadvantages of providing additional counterparty credit limits would apply The proposal would maintain the time to conform to new requirements? to the combined U.S. operations of a enhanced prudential standards rule’s foreign banking organization subject to C. Enhanced Prudential Standards for existing liquidity risk-management, Foreign Banking Organizations Category II or Category III standards. monthly internal liquidity stress testing, The proposed revisions to the single- 1. Category II Standards and liquid asset buffer requirements for counterparty credit limits rule are a foreign banking organization with discussed in section II.D. of this Category II standards would apply to combined U.S. operations subject to a foreign banking organization with SUPPLEMENTARY INFORMATION section. Category II liquidity standards. Daily Question 29: What modifications, if $700 billion or more in combined U.S. liquidity data reporting under Form FR assets, or $75 billion or more in cross- any, should the Board consider to the 2052a also would apply to a foreign proposed Category II prudential jurisdictional activity. In view of its banking organization with combined complexity, interconnectedness, and the standards for foreign banking U.S. operations subject to Category II organizations, and why? materiality of its U.S. presence, the standards. These requirements help to distress or failure of a foreign banking ensure that a foreign banking 2. Category III Standards organization with U.S. operations that organization has effective governance Category III standards would apply to would be subject to Category II and risk management processes to a foreign banking organization with standards could impose substantial measure and estimate liquidity needs, combined U.S. assets of $250 billion or costs on the U.S. financial system and and sufficient liquid assets to cover more, or a heightened risk profile as economy. As discussed in section II.B. risks and exposures and to support measured based on the level of weighted SUPPLEMENTARY INFORMATION of this activities through a range of conditions. short-term wholesale funding, nonbank section, foreign banking organizations In particular, internal liquidity stress assets, and off-balance sheet exposure with the largest U.S. operations testing, liquidity buffer, and liquidity among its combined U.S. operations.69 typically have more complex risk-management requirements help to A foreign banking organization with operational and management structures ensure that a foreign banking U.S. operations of this size or risk and provide financial services in the organization with large U.S. operations profile heightens the need for United States on a broader range and can appropriately manage liquidity risk sophisticated capital planning and more scale than smaller firms. In addition, and withstand disruptions in funding intensive oversight through stress foreign banking organizations with U.S. sources.67 Consistent with current testing, as well as sophisticated operations that engage in heightened requirements, for foreign banking measures to monitor and manage levels of cross-jurisdictional activity organizations with both a U.S. liquidity risk. For example, U.S. present operational complexities and intermediate holding company and a intermediate holding companies that interconnectivity concerns, and are U.S. branch or agency, the foreign engage in heightened levels of nonbank exposed to a greater diversity of risks as banking organization would conduct activities may be exposed to a relatively a result of the multiple jurisdictions in internal liquidity stress tests separately broader range of risks, and the which they provide financial services. for each of its U.S. intermediate holding application of more sophisticated The risks and operational complexities company, the U.S. branch or agency capital planning and stress testing associated with cross-jurisdictional network, and the combined U.S. requirements would be appropriate to activity can present significant operations.68 support those activities. Similarly, a challenges to the recovery and foreign banking organization with resolution process. mandatory mid-cycle stress test provided modest heightened levels of off-balance sheet To address these risks and maintain risk-management benefits and limited incremental exposure among its combined U.S. consistency with the domestic proposal, information to market participants beyond what the operations may be required to fulfill under this proposal a U.S intermediate annual company-run stress test provides. substantial draws on commitments and 67 holding company subject to Category II As discussed in the interagency foreign banking margin calls on derivatives during times capital standards would continue to organization capital and liquidity proposal, the implementation of standardized liquidity of stress. Rigorous risk management and submit an annual capital plan, and the requirements to complement a firm’s own internal liquidity monitoring would Federal Reserve would conduct an liquidity stress testing and buffer requirements appropriately support risks associated assessment of the company’s capital would help address liquidity risk. with these exposures. plan according to the capital plan rule.65 68 The proposal would revise the FR 2052a reporting requirements to require all foreign The Board’s current prudential The proposal also would maintain banking organizations subject to Category II standards framework generally applies annual supervisory stress testing for standards to report the FR 2052a on a daily basis the same capital standards to all U.S. these U.S. intermediate holding (daily reporting requirements would also apply to intermediate holding companies with companies and require company-run foreign banking organizations subject to Category III $250 billion or more in total 66 standards that have weighted short-term wholesale stress testing on an annual basis. In funding of $75 billion or more in respect of their combined U.S. operations). Some foreign banking 69 Category III capital standards would apply to a 65 12 CFR 225.8. organizations that would be subject to Category II U.S. intermediate holding company with total 66 The proposal would remove the mid-cycle standards currently report FR 2052a data on a consolidated assets of $250 billion or more, or a company-run stress testing requirement for a U.S. monthly basis. For these firms, the proposal would heightened risk profile based on its level or intermediate holding company subject to Category increase the frequency of reporting requirements weighted short-term wholesale funding, nonbank II standards. In the Board’s experience, the under the FR 2052a. assets, and off-balance sheet exposure.

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consolidated assets.70 The proposed every two years, rather than annually.71 a foreign banking organization with framework would further differentiate Because such a U.S. intermediate heightened levels of weighted short- among foreign banking organizations holding company would continue to term wholesale funding, because a firm with $250 billion or more in combined submit an annual capital plan that relies more on unsecured, less- U.S. assets, consistent with the domestic (including the results of an internal stable funding relative to deposits proposal. In particular, Category II capital stress test) and would be subject typically must rollover liabilities in would include standards generally to annual supervisory stress testing, a order to fund its routine activities. consistent with those developed by the reduction in the frequency of Accordingly, short-term wholesale BCBS that are appropriate for very large disclosures related to the company-run funding can be indicative of a firm that or complex firms, whereas Category III stress test should reduce compliance has heightened liquidity risk. would include less stringent standards, costs without a material increase in Question 30: What modifications, if based on the relatively lower U.S. risk safety and soundness or financial any, should the Board consider to the profiles of foreign banking organizations stability risks.72 Public disclosure of proposed Category III prudential that would be subject to Category III supervisory stress test results would standards for foreign banking standards. continue to be made on an annual basis. organizations, and why? The proposal would largely maintain For the reasons described under the Question 31: What are the advantages the existing capital planning and stress discussion of Category II standards, the and disadvantages of reducing the testing standards under the capital plan proposal would maintain existing frequency of the company-run stress test and enhanced prudential standards liquidity risk management, monthly and related disclosures to every other rules for U.S. intermediate holding internal liquidity stress testing, and year for a U.S. intermediate holding companies that would be subject to liquidity buffer requirements for the company subject Category III standards? Category III capital standards, but would combined U.S. operations of a foreign 3. Category IV Standards remove the mid-cycle company-run banking organization subject to Category Under the proposal, Category IV stress testing requirement and require III liquidity standards. The proposal standards would apply to foreign public disclosure of company-run stress also would include liquidity data banking organizations with combined test results every other year rather than reporting requirements under FR 2052a U.S. assets of $100 billion or more that annually. The Board would continue to for a foreign banking organization do not meet the criteria for Categories II conduct supervisory stress testing of subject to Category III liquidity or III with respect to their combined these U.S. intermediate holding standards, and tailor those requirements companies on an annual basis. U.S. operations or U.S. intermediate based on the level of weighted short- In regard to capital planning, a U.S. holding companies (as applicable). term wholesale funding. Some foreign intermediate holding company subject Based on an analysis of the crisis banking organizations that would be to Category III capital standards would experience of large domestic banking subject to Category III standards continue to submit confidential data to organizations, the Board found that the currently report FR 2052a data for their the Board using the existing schedule failure or distress of a U.S. banking combined U.S. operations on a monthly for FR Y–14 reports. Such a U.S. organization that meets or exceeds the basis. However, under the proposal, if intermediate holding company also thresholds for Category IV standards, the combined U.S. operations of a would submit an annual capital plan while not likely to have as great of an foreign banking organization have $75 and report the information required impact on U.S. financial stability as the billion or more in weighted short-term under the FR Y–14A. The FR Y–14 and failure or distress of a firm subject to wholesale funding, FR 2052a data Y–14A reports are inputs into the Category II or III standards, could would be submitted for each business supervisory stress test and inform the nonetheless have an amplified negative day.73 Daily reporting is appropriate for Board’s review of the firm’s capital plan, effect on economic growth and as well as the ongoing monitoring and 71 The company-run stress testing requirement employment relative to the failure or supervision of these companies. In under the enhanced prudential standards rule distress of smaller firms. addition, as part of the internal stress includes a mandatory public disclosure component, Notwithstanding structural differences test, a U.S. intermediate holding whereas the capital plan rule does not. Compare 12 between the U.S. operations of foreign company must establish and maintain CFR 252.58 with 12 CFR 225.8. The proposal would maintain the annual internal stress test requirement banking organizations and domestic internal processes for assessing capital under the capital plan rule, but reduce the required firms, the size and risk profile of such adequacy under expected and stressful frequency of company-run stress testing under the U.S. operations could present similar conditions, which represent an enhanced prudential standards rule to every other risk to financial stability and safety and important risk management capability year. As a result, in the intervening year between company-run stress tests under the enhanced soundness as those presented by U.S. for a U.S. intermediate holding prudential standards rule, the proposed Category III firms. company of this size or risk profile. standards would require a U.S. intermediate Relative to current requirements A U.S. intermediate holding company holding company to conduct an internal capital under the enhanced prudential subject to Category III capital standards stress test only as part of its annual capital plan standards rule, the proposed Category would publicly disclose the results of submission, without required public disclosure. 72 Consistent with the domestic proposal, a U.S. IV standards would maintain core company-run stress tests only once intermediate holding company of a foreign banking elements of the capital and liquidity organizations subject to Category II capital standards, and tailor these requirements 70 For example, the supplementary leverage ratio, standards would conduct and publicly report the to reflect the lower risk profile and countercyclical capital buffer, and requirement to results of a company-run stress test more frequently lesser degree of complexity of a foreign recognize most elements of accumulated other (annually) than U.S. intermediate holding comprehensive income (AOCI) in regulatory capital companies of foreign banking organizations subject banking organization subject to this generally apply to U.S. intermediate holding to Category III standards (every two years), based on category of standards. companies with $250 billion or more in total the differences in size, cross-jurisdictional activity, The proposal would tailor the consolidated assets or $10 billion or more in on- complexity, and risk profile indicated by the application of capital standards for U.S. balance sheet foreign exposure. In addition, if a U.S. scoping criteria for each of these categories. 83 FR intermediate holding company that meets this 66024 (December 21, 2018). intermediate holding companies subject threshold has an insured depository institution 73 FR 2052a data would be submitted on a subsidiary, the U.S. intermediate holding company monthly basis for combined U.S. operations of a standards with less than $75 billion in weighted also is subject to the LCR rule. foreign banking organization subject to Category III short-term wholesale funding.

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to Category IV capital standards, As part of the capital plan proposal, requirements under Category IV. First, consistent with the domestic proposal. the Board intends to maintain the the combined U.S. operations of a Specifically, the proposal would reduce requirement that the firm submit an foreign banking organization subject to the frequency of supervisory stress annual capital plan, but provide greater this category of standards would testing to every other year, and flexibility to U.S. intermediate holding calculate collateral positions on a eliminate the requirement to conduct companies to develop their annual monthly basis, rather than weekly. and publicly report the results of a capital plans. Under such an approach, Second, the proposal would clarify that company-run stress test. A supervisory Category IV standards could require a risk limits established to monitor stress test cycle of this frequency would capital plan to include estimates of sources of liquidity risk must be be consistent with the domestic revenues, losses, reserves, and capital consistent with the established liquidity proposal and appropriate for the risk levels based on a forward-looking risk tolerance for the combined U.S. profile of a U.S. intermediate holding analysis, taking into account the U.S. operations a foreign banking company subject to this category of intermediate holding company’s organization and appropriately reflect standards. The proposal would maintain idiosyncratic risks under a range of their risk profile. Importantly, limits the existing FR Y–14 reporting for these conditions; however, it would not established in accordance with the U.S. intermediate holding companies in require submission of the results of proposal would not need to consider order to provide the Board with the data company-run stress tests on the FR Y– activities or risks that are not relevant to it needs to conduct supervisory stress 14A. This change would align with the the combined U.S. operations of a testing and inform the Board’s ongoing proposal to remove company-run stress foreign banking organization. Third, monitoring and supervision of these testing requirements from Category IV while the proposal would continue to 74 companies. standards under this proposal. The require a foreign banking organization The Board continues to expect a U.S. Board also intends at a future date to subject to Category IV standards to intermediate holding company of a revise its guidance relating to capital establish and maintain procedures for foreign banking organization subject to planning to align with the proposed monitoring intraday risk that are Category IV capital standards to have a categories of standards and to allow consistent with the risk profile of its sound capital position and sound more flexibility in how all firms subject combined U.S. operations, Category IV capital planning practices. Capital is to Category IV standards perform capital standards would not specify any central to the ability of a U.S. planning. required elements of those procedures. intermediate holding company to absorb Category IV liquidity standards would unexpected losses and continue to lend include liquidity risk management, Question 32: What modifications, if to creditworthy businesses and stress testing, and buffer requirements. any, should the Board consider to the consumers. To be resilient under a range The combined U.S. operations of a proposed Category IV standards, and of conditions, a U.S. intermediate foreign banking organization that would why? holding company must maintain be subject to Category IV standards Question 33: What are the advantages sufficient levels of capital to support the typically do not present the risks to U.S. and disadvantages of conducting a risks associated with its exposures and financial stability that are associated supervisory stress test every other year, activities. As a result, processes for with size, cross-jurisdictional activity, rather than annually, and eliminating managing and allocating capital nonbank assets, and off-balance sheet the company-run stress testing resources are critical to a company’s exposure. Accordingly, the proposal requirement for purposes of Category IV financial strength and resiliency, and would reduce the frequency of required standards? What would be the also to the stability and effective internal liquidity stress testing to at advantages or disadvantages of the functioning of the U.S. financial system. least quarterly, rather than monthly.77 Board conducting supervisory stress In April 2018, the Board issued a Under the proposed Category IV tests for these U.S. intermediate holding proposal to apply stress buffer standards, a foreign banking companies on a more frequent basis? requirements to large bank holding organization would continue to be How should the Board consider companies and U.S. intermediate required to maintain a liquidity buffer at providing U.S. intermediate holding 75 holding companies. As part of a future its U.S. intermediate holding company companies with additional flexibility in capital plan proposal, the Board intends that is sufficient to meet the projected their capital plans? to propose that the stress buffer net stressed cash-flow need over the 30- requirements under Category IV would day planning horizon under the internal D. Single-Counterparty Credit Limits be calculated in a manner that aligns liquidity stress test and a liquidity Section 165(e) of the Dodd-Frank Act with the proposed two-year supervisory buffer at its U.S. branches and agencies requires the Board to establish single- stress testing cycle. Specifically, the that is sufficient to meet projected needs counterparty credit limits for large U.S. Board plans to propose that the stress over the first fourteen days of a stress and foreign banking organizations in buffer requirements would be updated test with a 30-day planning horizon. order to limit the risks that the failure annually to reflect planned The proposal also would modify of any individual firm could pose to distributions, but only every two years certain liquidity risk-management to reflect stress loss projections.76 other firms subject to such 78 likely be, a material change in the firm’s risk requirements. Under the Board’s 74 The Board plans to separately propose profile, financial condition, or corporate structure. enhanced prudential standards reductions in FR Y–14 reporting requirements for See 12 CFR 225.8(e)(4). In the event of a framework, single-counterparty credit firms subject to Category IV standards as part of the resubmission, the Board may conduct a quantitative limits apply to the combined U.S. capital plan proposal at a later date, to align with evaluation of that capital plan. As noted in the changes the Board would propose to the capital April 2018 proposal, the Board may recalculate a operations of a foreign banking plan rule. firm’s stress buffer requirements whenever the firm organization with $250 billion or more 75 See Amendments to the Regulatory Capital, chooses or is required to resubmit its capital plan. in total consolidated assets, and Capital Plan, and Stress Test Rules, 83 FR 18160 83 FR 18171. separately to any subsidiary U.S. (proposed April 25, 2018). 77 Combined U.S. operations of a foreign banking intermediate holding company of such a 76 Under the capital plan rule, the Board may organization subject to Category IV standards would require a U.S. intermediate holding company to remain subject to monthly FR 2052a liquidity resubmit its capital plan if there has been, or will reporting requirements. 78 12 U.S.C. 5365(e).

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firm with total consolidated assets of capital.85 For ‘‘major U.S. intermediate The proposal also would apply single- $50 billion or more.79 holding companies,’’ the rule applies counterparty credit limits separately to The single-counterparty credit limits the same aggregate limits that apply to a U.S. intermediate holding company of that apply to those foreign banking a major foreign banking organization— a foreign banking organization subject to organizations and their U.S. (i) an aggregate net credit exposure limit Category II or Category III standards but intermediate holding companies to any single counterparty equal to 25 would modify the requirements increase in stringency in a manner percent of tier 1 capital,86 and (ii) an currently applicable to those U.S. commensurate with their size and risk aggregate net credit exposure limit to a intermediate holding companies. First, profile. All foreign banking ‘‘major counterparty’’ equal to 15 the proposal would eliminate the organizations are subject to an aggregate percent of tier 1 capital.87 requirements applicable to major U.S. net credit exposure limit to any single Other provisions of the single- intermediate holding companies and counterparty equal to 25 percent of tier counterparty credit limits apply only to instead subject all U.S. intermediate 1 capital. In addition, if a foreign U.S. intermediate holding companies companies to a uniform aggregate net banking organization has the with total consolidated assets of $250 credit exposure limit to a single characteristics of a ‘‘major foreign billion or more. Specifically, the current counterparty equal to 25 percent of tier banking organization,’’ 80 it also is rule sets forth requirements for the 1 capital. In addition, the proposal subject to an aggregate net credit treatment of exposures to securitization would remove the bifurcated treatment exposure limit to any ‘‘major vehicles, investment funds, and other under the current rule regarding counterparty’’ 81 equal to 15 percent of special purpose vehicles (collectively, exposures to SPVs and the application tier 1 capital.82 These requirements SPVs),88 and the application of of the economic interdependence and apply to the combined U.S. operations economic interdependence and control control relationship tests, as well as of a foreign banking organization and relationship tests to aggregate connected compliance requirements. Under the are determined with respect to the counterparties 89 for U.S. intermediate proposal, these requirements would foreign banking organization’s tier 1 holding companies that meet or exceed apply to all U.S. intermediate holding capital. Alternatively, a foreign banking this asset size threshold. In addition, companies as they apply currently to U.S. intermediate holding companies organization may comply with these U.S. intermediate holding companies with $250 billion or more in total requirements by certifying that it meets, with $250 billion or more in total consolidated assets. These revisions are on a consolidated basis, standards consolidated assets must comply with intended to more appropriately balance established by its home country the rule on a daily basis as of the end the single-counterparty credit limits that supervisor that are consistent with the of each business day and submit a apply to U.S. intermediate holding BCBS large exposure standard.83 quarterly report to demonstrate its compliance.90 companies by maintaining the core For those foreign banking aggregate net credit exposure limit and The proposal would revise the organizations’ U.S. intermediate holding extending the applicability of other Board’s single-counterparty credit limits companies, the Board’s single- requirements that are integral to the counterparty credit limits apply a to align the thresholds for application of framework. While these revisions would similar approach. For a U.S. these requirements with the proposed increase the compliance burden relative intermediate holding company with thresholds for other enhanced to the single-counterparty credit limits total consolidated assets of at least $50 prudential standards. Under the currently applicable to certain U.S. billion and less than $250 billion, its proposal, single-counterparty credit intermediate holding companies with aggregate net credit exposure to a single limits would apply to the combined less than $250 billion in assets, they are counterparty cannot exceed 25 percent U.S. operations of a foreign banking consistent with the focus of the post- of total regulatory capital plus the organization subject to Category II or crisis reform framework as it relates to balance of its allowance for loan and Category III standards or of a foreign reducing interconnectivity within the lease losses that is not includable in tier banking organization with $250 billion financial system and the maintenance of 2 capital.84 In comparison, a U.S. or more in total consolidated assets. A higher-quality forms of capital and, intermediate holding company with foreign banking organization would therefore, could help to mitigate risks to total consolidated assets of at least $250 continue to be able to comply with the U.S. financial stability. In particular, the billion and less than $500 billion is single-counterparty credit limits by Board has stated that basing single- subject to an aggregate net credit certifying to the Board that it meets counterparty credit limits on tier 1 exposure limit of 25 percent of tier 1 comparable home-country standards capital sets the limits relative to the that apply on a consolidated basis. company’s ability to absorb losses on a 79 12 CFR 252.72(a). going-concern basis and acknowledges 80 ‘‘Major foreign banking organization’’ means a 85 Id. at 252.172(b)(1). market participants’ focus on higher- top-tier foreign banking organization that has the 86 Id. quality capital during the financial characteristics of a global systemically important 87 Id. at 252.172(c)(1). crisis.91 banking organization under the global methodology, 88 Id. at 252.175. For a discussion of the treatment The proposal would not apply single- or is identified by the Board as a major foreign of exposures to SPVs under the single-counterparty banking organization. 12 CFR 252.171(z). credit limit rule, see ‘‘Single-Counterparty Credit counterparty credit limits to the 81 ‘‘Major counterparty’’ means a U.S. GSIB, a Limits for Bank Holding Companies and Foreign combined U.S. operations of foreign foreign banking organization that is a global Banking Organizations,’’ 83 FR 38460, 38480–82 banking organizations subject to systemically important banking organization, and (Aug. 6, 2018). Category IV standards unless such a any nonbank financial company supervised by the 89 12 CFR 252.176. For a discussion of the Board. 12 CFR 252.171(y). economic interdependence and control relationship foreign banking organization has $250 82 12 CFR 252.172(c). tests to aggregate connected counterparties under billion or more in total consolidated 83 12 CFR 252.172(d). See also BCBS, Supervisory the single-counterparty credit limit rule, see id. at assets, as required by federal law.92 In Framework for Measuring and Controlling Large 38482–84. addition, the proposal only would apply Exposures (April 2014). The large exposures 90 12 CFR 252.178(a)(1) and (a)(3). A U.S. single-counterparty credit limits to U.S. standard establishes an international single- intermediate holding company with less than $250 counterparty credit limit framework for billion in total consolidated assets must comply internationally active banks. with single-counterparty credit limits as of the end 91 See 83 FR 38460, 38471 (Aug. 6, 2018). 84 12 CFR 252.172(a). of each quarter. See 12 CFR 252.178(a)(2). 92 See supra note 71.

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intermediate holding companies of to establish a risk committee that is manner commensurate with its U.S. risk foreign banking organizations subject to ‘‘responsible for the oversight of the profile. Under the proposal, foreign Category II or Category III standards. As enterprise-wide risk management banking organizations with at least $50 discussed above, the proposed practices’’ that meets other statutory billion but less than $100 billion in total indicators for Category II and Category requirements.94 EGRRCPA raised the consolidated assets, as well as foreign III represent measures of vulnerability to threshold for mandatory application of banking organizations with total safety and soundness and financial the risk-committee requirement from consolidated assets of $100 billion or stability risks, which may be publicly traded bank holding companies more but less than $50 billion in exacerbated if a foreign banking with $10 billion in total consolidated combined U.S. assets, would be organization has combined U.S. assets to publicly traded bank holding required to maintain a risk committee operations with outsized credit companies with $50 billion or more in and make an annual certification to that exposure to a single counterparty. total consolidated assets. Additionally, effect. Additionally, foreign banking Accordingly, application of these limits the Board has discretion to apply risk- organizations with total consolidated would help to mitigate this risk. In committee requirements to publicly assets of $100 billion or more and $50 addition, foreign banking organizations traded bank holding companies with billion or more in combined U.S. assets with combined U.S. operations that under $50 billion in total consolidated would be required to comply with the have high reliance on weighted short- assets if the Board determines doing so more detailed risk-committee and risk- term wholesale funding or a significant is necessary or appropriate to promote management requirements in the concentration of nonbank assets or off- sound risk management practices. Board’s enhanced prudential standards balance sheet exposure often also have Under the current enhanced rule (Regulation YY), which include the a high degree of interconnectedness prudential standards rule, all foreign chief risk officer requirement. The with other market participants and may banking organizations with total proposal would eliminate the risk- be likely to transmit their distress or consolidated assets of $50 billion or committee requirements that apply for failure to those participants. Single- more, and publicly traded foreign foreign banking organizations with less counterparty credit limits may reduce banking organizations with at least $10 than $50 billion in total consolidated the extent of that transmission.93 billion in total consolidated assets, must assets. Foreign banking organizations with maintain a risk committee that meets Similar to its approach for domestic combined U.S. operations that would be specified requirements.95 These banking organizations, the Board subject to Category IV standards requirements vary based on a foreign historically has assessed the adequacy typically do not present these risks. banking organization’s total of risk management of foreign banking Question 34: What are the advantages consolidated assets and combined U.S. organizations through the examination and disadvantages of the proposed assets. Foreign banking organizations process as informed by supervisory revisions to the applicability with at least $10 billion but less than guidance; the requirements in section requirements for single-counterparty $50 billion in total consolidated assets, 165(h) of the Dodd-Frank Act credit limits and the removal of as well as foreign banking organizations supplement, but do not replace, the aggregate net credit exposure limits with total consolidated assets of $50 Board’s existing risk management applicable to major U.S. intermediate billion or more but less than $50 billion guidance and supervisory holding companies? in combined U.S. assets, must annually expectations.97 Given the activities and Question 35: What are the advantages certify to the Board that they maintain risk profiles of foreign banking and disadvantages of extending to U.S. a qualifying committee that oversees the organizations with less than $50 billion intermediate holding companies with risk management policies of the in total consolidated assets, the Board less than $250 billion in total combined U.S. operations of the foreign expects to review these firms’ risk consolidated assets that are subject to banking organization. In contrast, management practices through the Category II or Category III standards the foreign banking organizations with total supervisory process. The Board would requirements under the single- consolidated assets of $50 billion or continue to expect foreign banking counterparty credit limits framework more and $50 billion or more in organizations with less than $50 billion regarding the treatment of exposures to combined U.S. assets are subject to more in total consolidated assets to establish SPVs and the application of the detailed risk-committee and risk- risk management processes and economic interdependence and control management requirements, including procedures commensurate with their relationship tests, as well as heightened the requirement to appoint a U.S. chief risks. compliance requirements? risk officer.96 F. Enhanced Prudential Standards for E. Risk-Management and Risk- Consistent with EGRRCPA, the Foreign Banking Organizations With a Committee Requirements proposal would raise the total consolidated asset threshold for Smaller U.S. Presence Sound enterprise-wide risk application of the risk-committee The current regulatory framework for management supports the safe and requirement to foreign banking foreign banking organizations tailors the sound operation of banking organizations and would not change the application of enhanced prudential organizations and reduces the substance of the risk-committee standards based on the size and likelihood of their material distress or requirement for these firms. Maintaining complexity of a foreign banking failure, and thus promotes U.S. financial these risk-committee requirements for organization’s U.S. operations. Under stability. Section 165(h) of the Dodd- foreign banking organizations with total Frank Act requires certain publicly the Board’s current enhanced prudential consolidated assets of $50 billion or standards rule, foreign banking traded bank holding companies, which more would help support the safety and includes foreign banking organizations, organizations with at least $10 billion soundness of a foreign banking but less than $50 billion in total organization’s U.S. operations in a 93 The limitation on a U.S. intermediate holding consolidated assets are subject to company’s exposure to a single counterparty also may reduce the likelihood that distress at another 94 12 U.S.C. 5363(h). 97 See Enhanced Prudential Standards for Bank firm would be transmitted to the U.S. intermediate 95 See 12 CFR 252.144, 252.155, and subpart M. Holding Companies and Foreign Banking holding company. 96 12 CFR 252.155. Organizations, 79 FR 17239, 17247 (Mar. 27, 2014).

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company-run stress testing requirements financial companies with more than $10 consolidated assets of less than $250 in subpart L and the risk-management billion in total consolidated assets to billion that do not meet the criteria for and risk-committee requirements in financial companies with more than application of Category II, Category III, subpart M, the latter of which is $250 billion in total consolidated assets. or Category IV standards to be subject to described above.98 Additionally, foreign As a result, foreign banking a home-country supervisory stress test banking organizations with at least $50 organizations with less than $50 billion on a biennial basis, rather than annually billion in total consolidated assets but in total consolidated assets would no as under the current framework. less than $50 billion in combined U.S. longer be required to be subject to a As mentioned above in section II.E. of assets are subject to risk-based and home-country capital stress testing this Supplementary Information, risk- leverage capital, risk-management and regime, or if the foreign banking committee requirements in subpart N risk-committee, liquidity risk organization was not subject to would be further differentiated based on management, and capital stress testing qualifying home country standards, combined U.S. assets. Under the requirements in subpart N of the Board’s additional stress testing requirements in proposal, foreign banking organizations enhanced prudential standards rule.99 subpart L.101 with $100 billion or more in total consolidated assets but less than $50 The Board largely requires the foreign 2. Enhanced Prudential Standards for banking organization’s compliance with billion in combined U.S. assets would Foreign Banking Organizations With be required to certify on an annual basis home-country capital and liquidity $100 Billion or More in Total standards at the consolidated level, and that they maintain a qualifying risk Consolidated Assets but Less Than $100 committee that oversees the risk imposes certain risk-management Billion in Combined U.S. Assets requirements that are specific to the management policies of the combined U.S. operations of a foreign banking Under the Board’s existing enhanced U.S. operations of the foreign banking organization. prudential standards rule, subpart N organization. In contrast, foreign The proposal generally adopts this applies to foreign banking organizations banking organizations with $100 billion approach for foreign banking with $50 billion or more in total or more in total consolidated assets, and organizations with a limited U.S. consolidated assets but less than $50 at least $50 billion but less than $100 presence; however, it would also billion in combined U.S. assets. billion in combined U.S. assets would implement targeted changes to reduce Currently, the standards in subpart N— be subject to more detailed risk- the stringency of certain requirements which include risk-based and leverage committee and risk-management applicable to these firms, as described capital, liquidity risk management, and requirements, which include the chief below. It would also maintain certain capital stress testing requirements— risk officer requirement. These more risk-management and capital largely require compliance with home- detailed risk-committee requirements requirements for a U.S. intermediate country standards. would be the same requirements that Consistent with EGRRCPA, the holding company of a foreign banking apply to foreign banking organizations proposal would raise the threshold for organization that does not meet the with $100 billion or more in combined application of subpart N to foreign thresholds under the proposal for the U.S. assets. banking organizations with $100 billion application of Category II, Category III or The proposal would not revise the or more in total consolidated assets but Category IV standards. $50 billion U.S. non-branch asset less than $100 billion in combined U.S. threshold for the U.S. intermediate 1. Enhanced Prudential Standards for assets. Under the proposed rule, the holding company formation Foreign Banking Organizations With requirements under subpart N would requirement. This requirement has Less Than $50 Billion in Total continue to largely defer to home- resulted in substantial gains in the Consolidated Assets country standards and remain generally resilience and safety and soundness of The proposal would eliminate risk- unchanged from the requirements that foreign banking organizations’ U.S. committee and risk-management apply currently to a foreign banking operations. Therefore, a foreign banking requirements for foreign banking organization with a limited U.S organization subject to subpart N (i.e., organizations with less than $50 billion presence, including liquidity risk one with less than $100 billion in in total consolidated assets, as described management requirements, risk-based combined U.S. assets) may have or above. and leverage capital requirements, and could be required to form a U.S. In addition, consistent with capital stress testing requirements. intermediate holding company. A U.S. EGRRCPA, the proposal would However, consistent with the proposed intermediate holding company of such a eliminate subpart L of the Board’s stress testing frequency for smaller and foreign banking organization would not enhanced prudential standards rule, less complex domestic holding be subject to Category II, Category III, or which currently prescribes company- companies, the proposal would require Category IV capital standards, but it run stress testing requirements for foreign banking organizations with total would remain subject to the risk-based foreign banking organizations with more and leverage capital requirements that than $10 billion but less than $50 101 For foreign savings and loan holding apply to a U.S. bank holding company billion in total consolidated assets.100 companies, the proposal would apply company-run of a similar size and risk profile under stress testing requirements to foreign savings and the Board’s capital rule.102 Similarly, a EGRRCPA raised the threshold for loan holding companies with more than $250 mandatory application of company-run billion in total consolidated assets. These U.S. intermediate holding company of a stress testing requirements from requirements would be the same as those that foreign banking organization subject to currently apply in subpart L of the enhanced subpart N would be required to comply prudential standards rule. See id. Raising the asset with risk-management and risk- 98 The company-run stress testing requirements in size threshold for application of company-run stress subpart L also currently apply to foreign savings testing requirements for foreign savings and loan committee requirements. As under the and loan holding companies with at least $10 holding companies to more than $250 billion in billion in total consolidated assets. See 12 CFR total consolidated assets would be consistent with 102 12 CFR part 217. As discussed in the 252.120 et seq. section 165(i)(2) of the Dodd-Frank Act, as amended interagency foreign banking organization capital 99 12 CFR 252.140 et seq. by EGRRCPA. Under this proposal, company-run and liquidity proposal, such a U.S. intermediate 100 Subpart L also currently applies to foreign stress test requirements for foreign savings and loan holding company would be subject to the generally savings and loan holding companies with more holding companies would be in the new subpart R applicable risk-based and leverage capital than $10 billion in total consolidated assets. Id. of Regulation LL. requirements.

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current rule, under the proposal the risk formation of a U.S. intermediate holding the enhanced prudential standards committee of the U.S. intermediate company. In light of the requests framework. holding company may also serve as the received under this section following For both foreign and domestic U.S. risk committee for the foreign the initial compliance with the U.S. banking organizations, the Board is banking organization’s combined U.S. intermediate holding company soliciting comment on whether to more operations. requirement, the time period for the closely align the assets that qualify as Board’s expected action would be highly liquid assets in the enhanced G. Technical Changes to the Regulatory shortened from 180 days to 90 days. prudential standards rule 103 with Framework for Foreign Banking These amendments would apply to a HQLA under the current LCR rule.104 Organizations and Domestic Banking U.S. intermediate holding company Specifically, the enhanced prudential Organizations formed under subpart N or subpart O. standards rule requires certain large The proposal would make several As discussed above, capital foreign and domestic banking technical changes and clarifying requirements would apply to a U.S. organizations to hold buffers of highly revisions to the Board’s enhanced intermediate holding company based on liquid assets. The rule defines highly prudential standards rule. In addition to its risk profile, while other requirements liquid assets to include cash, certain any defined terms described previously would be based on the risk profile of the securities issued or guaranteed by the in this Supplementary Information combined U.S. operations of a foreign U.S. government or a U.S. government- section, the proposal would add defined banking organization. Subpart O of sponsored enterprise, and other assets terms for foreign banking organizations Regulation YY currently provides that a that a firm demonstrates to the Board’s with combined U.S. operations subject foreign banking organization that forms satisfaction meet specific liquidity to Category II, III, or IV standards, two or more U.S. intermediate holding criteria.105 defined as ‘‘Category II foreign banking companies would meet any threshold The LCR rule describes assets that are organizations’’, ‘‘Category III foreign governing applicability of particular HQLA that may be used by a firm to banking organizations’’, or ‘‘Category IV requirements by aggregating the total meets its net cash outflow amount.106 foreign banking organizations’’, consolidated assets of the U.S. HQLA are expected to be easily and respectively. Similarly, the proposal intermediate holding companies. The immediately convertible into cash with would add defined terms for ‘‘Category proposal would not change this little or no expected loss of value during II U.S. intermediate holding aggregation requirement, but would a period of stress.107 Certain HQLA are companies’’, ‘‘Category III U.S. amend the requirement to consider the subject to additional, asset-specific intermediate holding companies’’, and risk-based indicators discussed above. requirements, including, for example, ‘‘Category IV U.S. intermediate holding In addition, the proposal would that the assets be liquid and readily companies’’. The addition of these terms provide a reservation of authority to marketable.108 would facilitate the requirements for permit a foreign banking organization to When the Board adopted the application of enhanced prudential comply with the requirements of enhanced prudential standards rule in standards under the category framework Regulation YY through a subsidiary 2014, the Board stated that HQLA under set forth in this proposal. foreign bank or company of the foreign the then-proposed LCR rule would be The proposal would revise the banking organization. In making this liquid under most scenarios, but a requirements for establishment of a U.S. determination, the Board would take covered company would still be intermediate holding company to into consideration the ownership required to demonstrate to the Board eliminate the requirement to submit an structure of the foreign banking that these assets meet the criteria for implementation plan. The organization, including (1) whether the highly liquid assets set forth in the implementation plan requirement was foreign banking organization is owned enhanced prudential standards rule.109 intended to facilitate initial compliance or controlled by a foreign government; After several years of supervising firms with the U.S. intermediate holding (2) whether the action would be that are subject to the enhanced company requirement. To assess consistent with the purposes of this prudential standards rule and LCR rule, compliance with the U.S. intermediate part; and (3) any other factors that the the Board is considering whether it holding company requirement under the Board determines are relevant. For would be appropriate to expand the list proposal, information would be example, if top-tier foreign banking of enumerated highly liquid assets to requested through the supervisory organization is a sovereign wealth fund include certain assets that are HQLA process. Such information could that controls a U.S. bank holding (potentially reflecting operational include information on the U.S. company, with prior approval of the requirements of the LCR rule), or subsidiaries of the foreign banking Board the U.S. bank holding company otherwise adjust the definition of highly organization that would be transferred, could comply with the requirements liquid assets to align with the LCR rule. a projected timeline for the structural established under Regulation YY Under this approach, a banking reorganization, and a discussion of the instead of the sovereign wealth fund, organization would no longer be firm’s plan to comply with the provided that doing so would not raise required to obtain a determination from enhanced prudential standards that significant supervisory or policy issues would be applicable to the U.S. and would be consistent with the 103 12 CFR 252.35(b) and 12 CFR 252.157(c). intermediate holding company. purposes of section 165. The reservation 104 See Liquidity Coverage Ratio: Liquidity Risk The proposal also would make of authority is intended to provide Measurement Standards, 79 FR 61440, 61450 (Oct. 10, 2014), codified at 12 CFR part 50 (OCC), 12 CFR conforming amendments to the process additional flexibility to address certain part 249 (Board), and 12 CFR part 329 (FDIC). For for requesting an alternative foreign banking organization structures, the definition of HQLA under the Board’s LCR rule, organizational structure for a U.S. as well as to provide clarity and reduce see 12 CFR 249.20. intermediate holding company, as well burden for these institutions. 105 Id. as clarify that a foreign banking The proposal also would amend 106 12 CFR 50.20 (OCC), 12 CFR 249.20 (Board), and 12 CFR 329.20 (FDIC). organization may submit a request for Regulation YY to eliminate transition 107 See 79 FR at 61450. an alternative organizational structure and initial applicability provisions that 108 12 CFR 50.20 (OCC), 12 CFR 249.20 (Board), in the context of a reorganization, were relevant only for purposes of the and 12 CFR 329.20 (FDIC). anticipated acquisition, or prior to initial adoption and implementation of 109 See 79 FR 17259–60 (Oct. 10, 2014).

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the Board for assets that are HQLA, as requirement takes effect. The proposed Board-regulated institutions under the those assets would be enumerated as procedures are consistent with other Board’s existing GSIB surcharge rule. highly liquid assets in Regulation YY. similar notice procedures in Regulation Question 39: How could the Board Question 36: How, if at all, should the YY. The proposed changes would help further improve the structure of the Board adjust the current definition of ensure that the internal liquidity stress enhanced prudential standards highly liquid assets in 12 CFR tests conducted by a banking framework in Regulation YY and 252.35(b)(3) and 252.157(c)(7) of the organization are consistent with that proposed prudential standards in enhanced prudential standards rule to banking organization’s liquidity risk Regulation LL? For example, would improve alignment with the definition of profile.113 providing all definitions under one HQLA? Should the enumerated list of For domestic bank holding section facilitate compliance with the highly liquid assets be expanded to companies, the proposal would amend framework? Are there other structural or include any or all of certain categories the Board’s GSIB surcharge rule to technical changes to Regulation YY and of HQLA (e.g., level 1 liquid assets, all require a bank holding company subject Regulation LL the Board should level 1 and level 2A liquid assets, to Category III standards to compute its consider and, if so, why? Are there other certain level 1 liquid assets, certain level method 1 score on an annual basis to clarifications to Regulation YY that the 2A liquid assets, etc.) or certain assets determine whether it is a U.S. GSIB. Board should consider and, if so, how that are HQLA (e.g., sovereign bonds Currently, the Board’s GSIB surcharge and why? For example, are there that are assigned a zero percent risk rule applies only to a domestic bank defined terms that could be further weight under the Board’s capital holding company that is an advanced clarified? regulation)? Should ‘‘cash’’ in the approaches Board-regulated institution Question 40: What are the advantages enhanced prudential standards rule be (a bank holding company with $250 or disadvantages of providing foreign clarified to mean Reserve Bank balances billion or more in total consolidated banking organizations additional and foreign withdrawable reserves, to assets or $10 billion or more in on- flexibility in complying with the Board’s more closely align with the enumerated balance sheet foreign exposure), as a risk-committee requirements? What, if list of level 1 liquid assets that are not bank holding company that does not any, additional flexibility should the securities in the LCR rule? meet these thresholds is less likely to Board provide to foreign banking Question 37: What are the advantages pose heightened risks to U.S. financial organizations with $50 billion or more and disadvantages of incorporating into stability.114 in combined U.S. assets to maintain the definition of highly liquid assets In the domestic interagency proposal, their risk committees at entities other other requirements of the LCR rule the Board proposed to revise the than at the top-tier foreign banking related to HQLA, including, for definition of advanced approaches organization or at the foreign banking example, the requirements for an asset Board-regulated institution to include a organization’s U.S. intermediate holding to be ‘‘eligible HQLA,’’ the haircuts bank holding company that is identified company? What alternative structures applied to HQLA, or the quantitative as a U.S. GSIB or a bank holding should the Board consider? What factors limits on the composition of the HQLA company that has either $700 billion in should the Board consider in amount? 110 total consolidated assets or $75 billion determining whether to provide foreign Question 38: If a firm’s HQLA satisfy in cross-jurisdictional activity. The banking organizations with additional the requirements in the LCR rule to be Board did not address whether a flexibility or permit an alternative eligible HQLA,111 what are the Category III banking organization would structure in complying with the risk- advantages and disadvantages of need to calculate its method 1 score in committee requirements? In particular, requiring the firm to separately the domestic proposal or the domestic to what extent should the Board demonstrate that the HQLA meet the interagency proposal. As noted by the consider (a) the scope of the risk other requirements in the enhanced Board in the domestic proposal, committee’s oversight of the combined prudential standards rule for highly Category III standards would apply to U.S. operations of the foreign banking liquid assets? 112 What would be the domestic bank holding companies that organization; and (b) the reporting lines advantages and disadvantages of could pose heightened risks to U.S from the risk committee to the global adding other requirements for highly financial stability and would further the board of directors of the foreign banking liquid assets in the enhanced prudential safety and soundness of a bank holding organization? standards rule, including a requirement company of such size and risk Question 41: What are the advantages that a firm take into account potential profile.115 Accordingly, because of the or disadvantages of requiring a domestic conflicts to a business or risk risk profile of these firms, the Board is bank holding company subject to management strategy stemming from proposing to revise the GSIB surcharge Category III standards to compute its the monetization of these assets? rule to require Category III banking method 1 score? What would be the In addition, the proposal would organizations to calculate their method advantages or disadvantages of the amend the internal liquidity stress 1 scores annually. The proposed change Board, instead of the bank holding testing requirements to provide a would not increase the number of firms companies subject to the GSIB banking organization with notice and an that currently calculate their method 1 surcharge rule, computing the method 1 opportunity to respond if the Board GSIB score annually, as all proposed scores for all, or some, bank holding determined that the banking Category III domestic bank holding companies subject to the GSIB organization must change the frequency companies are advanced approaches surcharge rule? of its internal liquidity stress testing. III. Proposed Reporting Changes The proposed procedures would allow a 113 The proposed procedures would not limit the To accommodate the proposed banking organization to respond to the authority of the Board under any other provision of law or regulation to take supervisory or revisions to the framework for Board’s determination before such enforcement action, including action to address determining the applicability of unsafe or unsound practices or conditions, deficient 110 12 CFR 249.21 and 249.22. liquidity levels, or violations of law. enhanced prudential standards to 111 See 12 CFR 50.22 (OCC); 12 CFR 249.22 114 See 12 CFR 217.400(b)(1). See 80 FR 49082 foreign banking organizations, the (Board); 12 CFR 329.50 (FDIC). (August 14, 2015). proposal would make various changes 112 12 CFR 252.35(b)(3) and 252.157(c)(7). 115 83 FR 61408, 61413 (November 29, 2018). to related reporting forms. Specifically,

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the proposal would amend the FR Y–7, organizations with $100 billion or more and ‘‘large and noncomplex’’ bank FR Y–7Q, FR Y–9C, FR Y–14, FR Y–15, in total consolidated assets and holding company to align with and FR 2052a. combined U.S. assets of $100 billion or proposed changes in § 225.8(d)(9). The Board is proposing to revise Item more. The Board is proposing to modify the 5 on the FR Y–7, Regulation YY The Board is proposing to amend the FR Y–15 report to require a foreign Compliance for the Foreign Banking FR Y–9C to further clarify requirements banking organization to report data for Organization (FBO), to align the for U.S. intermediate holding companies its combined U.S. operations that are reporting form with the applicability subject to Category III capital standards. related to the criteria for determining thresholds set forth in this proposal and In the domestic proposal, the Board the applicability of enhanced prudential other regulatory changes that are proposed to amend the FR Y–9C to standards under this proposal. consistent with the Board’s July 2018 clarify that Category III Board-regulated Currently, only U.S. intermediate statement concerning EGRRCPA.116 institutions would not be included in holding companies are required to the Specifically, Item 5(a) would be the proposed definition of ‘‘advanced FR Y–15. Extending FR Y–15 reporting amended to apply only to foreign approaches banking organizations’’ but requirements to the combined U.S. savings and loan holding companies would be required to comply with the operations of a foreign banking with more than $250 billion in total supplementary leverage ratio and organization would allow the Board to consolidated assets, and would assess countercyclical capital buffer determine the applicable category of compliance with the capital stress requirements. Specifically, the domestic standards, as well as monitor the risk testing requirements under proposed proposal would require line item 45 to profile of those operations, consistent section 238.162 of the Board’s be completed by ‘‘advanced approaches with the scope of application of this Regulation LL, as revised under this banking organizations and Category III proposal. Specifically, foreign banking proposal. Items 5(b) and 5(c) would Board-regulated institutions.’’ This organizations would be required to continue to assess compliance with the proposal would make additional report the information required under risk committee requirements in sections changes to line item 45 to further clarify new schedules H through N of the FR 252.132(a) and 252.144(a) of the Board’s that the supplementary leverage ratio Y–15, which would replicate schedules Regulation YY, respectively, but the and countercyclical capital buffer apply A through G of the current FR Y–15 for descriptions for each Item would be to Category III U.S. intermediate holding domestic holding companies (with the updated to conform to the asset size companies. Accordingly, line item 45 exception of cross-jurisdictional thresholds under this proposal. For Item would be amended to apply to activity, as discussed below).117 5(b), the description would also ‘‘advanced approaches holding Schedules H through N would be eliminate language referring to foreign companies, Category III bank holding structured to include three columns, in banking organizations that are publicly companies, Category III savings and which a foreign banking organization traded, as that distinction would be loan holding companies or Category III would report the information request for eliminated under this proposal. U.S. intermediate holding companies.’’ each item for (i) its U.S. intermediate Similarly, the Board is proposing to The instructions for the FR Y–9C also holding company, (ii) its U.S. branch revise Items 5(d) and 5(e) to align the would be amended in this proposal to and agency network, and (iii) its descriptions of the requirements with align with the proposed revisions to line combined U.S. operations. In the asset size thresholds under this item 45. Under the domestic proposal, calculating an item for its U.S. branch proposal. These Items would continue the instructions for Schedule HC–R of and agency network, a foreign banking to assess compliance with the capital the FR Y–9C would be clarified to organization would not be required to stress testing requirements in sections indicate that Category III Board- reflect transactions between its 252.146(b) and 252.158(b) of the Board’s regulated institutions are not subject to individual branches and agencies; such Regulation YY. the advanced approaches rule but are transactions would be treated as if they The proposal would amend the FR Y– subject to the supplementary leverage were transactions between affiliates 7Q to align with revisions to Regulation ratio and countercyclical capital buffer. under generally accepted accounting YY. Currently, top-tier foreign banking This proposal would amend those principles, and thus eliminated in organizations with $50 billion or more instructions to further clarify that the consolidation. Similarly, in calculating in total consolidated assets must report supplementary leverage ratio and an item for its combined U.S. Part 1B—Capital and Asset Information countercyclical capital buffer also apply operations, a foreign banking for Top-tier Foreign Banking to Category III bank holding companies, organization would not be required to Organizations with Consolidated Assets Category III savings and loan holding reflect transactions between entities that of $50 billion or more. The proposal companies, and Category III U.S. comprise the combined U.S. operations would now require top-tier foreign intermediate holding companies. of the foreign banking organization. banking organizations that are subject to Consistent with EGRRCPA and the Consistent with the domestic proposal, either sections 252.143 or 252.154 of the Board’s July 2018 statement relating to the proposal would add two line items Board’s Regulation YY to report Part 1B. EGRRCPA, the proposal would revise to Schedule H of the FR Y–15 to Section 252.143 outlines risk-based and the FR Y–14A, Y–14M, and Y–14Q to calculate total off-balance sheet leverage capital requirements for foreign revise the threshold for U.S. exposure. New line item M4 (total banking organizations with total intermediate holding companies that consolidated assets) would report the consolidated assets of $250 billion or would be required to submit these total consolidated on-balance sheet more but combined U.S. assets of less forms, by increasing it to U.S. assets for the respondent, as calculated than $100 billion, while section 252.154 intermediate holding companies with under Schedule HC, item 12 (total describes risk-based and leverage capital $100 billion or more in total consolidated assets) on the FR Y–9C. requirements for foreign banking consolidated assets. U.S. intermediate New line item M5 (total off-balance holding companies below this size sheet exposures) would be total 116 See Board statement regarding the impact of threshold would no longer be required the Economic Growth, Regulatory Relief, and to submit these forms. The proposal Consumer Protection Act, July 6, 2018, available at 117 U.S. intermediate holding companies would https://www.federalreserve.gov/newsevents/ would also make technical changes to no longer be required to report on schedules A pressreleases/bcreg20180706b.htm. the definitions of ‘‘large and complex’’ through G of the FR Y–15.

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exposure, as currently defined on the FR determining whether a foreign banking IV. Impact Assessment Y–15, minus line item M4. For purposes organization is required to submit FR In general, the Board expects the of reporting cross-jurisdictional activity, 2052a liquidity data on a daily basis, proposed adjustments to the capital and the FR Y–15 would require foreign which is whether a foreign banking liquidity enhanced prudential standards banking organizations to report assets organizations is subject to supervision would reduce aggregate compliance and liabilities of the U.S. intermediate within the Board’s Large Institution costs for foreign banking organizations holding company and U.S. branch and Supervision Coordinating Committee with $100 billion or more in combined agency network, excluding cross- (LISCC) portfolio.118 All other foreign U.S. assets, with minimal effects on the jurisdictional liabilities to non-U.S. banking organizations with combined safety and soundness of these firms and affiliates and cross-jurisdictional claims U.S. assets of $100 billion or more U.S. financial stability.119 With respect on non-U.S. affiliates to the extent that would be subject to monthly filing to reporting burden, certain foreign these claims are secured by eligible requirements. The proposal also would banking organizations with weighted financial collateral. To effectuate this clarify reporting transition periods if a short-term wholesale funding of $75 change, the proposal would add new change in category or level of short-term billion or more that previously filed the line items to proposed Schedule L and wholesale funding alters a firm’s FR FR 2052a on a monthly basis may amend the instructions accordingly. 2052a reporting frequency. experience a minor increase in Finally, the proposed changes to the FR Question 42: What are the challenges, compliance costs due to the increase in Y–15 would make a number of reporting frequency of the FR 2052a to additional edits to the form’s if any, of reporting the information required under the FR Y–15 for the daily. For additional impact instructions to clarify reporting information, commenters should also requirements given the new scope of combined U.S. operations of a foreign banking organization? review the interagency foreign banking reporting for foreign banking organization capital and liquidity organizations, and further align the form Question 43: What are the costs and proposal. with the proposed categorization benefits of the proposed changes to the framework (e.g., amending references to FR 2052a, including the advantages and A. Liquidity ‘‘advanced approaches’’ institutions). disadvantages of the proposed reporting The proposed changes to liquidity The Board is proposing to revise the frequency for firms subject to Category requirements are expected to reduce FR 2052a report to modify the current II and III standards? compliance costs for firms that would reporting frequency as described Question 44: What changes should the be subject to Category IV standards by previously in this Supplementary Board consider to the proposed reducing the required frequency of Information section. Consistent with reporting requirements to alleviate internal liquidity stress tests and EGRRCPA, the revisions would remove burden? Commenters are encouraged to tailoring the liquidity risk management foreign banking organizations with less explain how any such changes would requirements to the risk profiles of these than $100 billion in combined U.S. allow the Board to effectively monitor firms. The Board does not expect these assets from the scope of FR 2052a and supervise foreign banking proposed changes to materially affect reporting requirements. Additionally, organizations subject to the proposed the liquidity buffer levels held by these the proposal would require foreign reporting requirements, as appropriate firms or these firms’ exposure to banking organizations with combined to prevent or mitigate risks to U.S. liquidity risk. U.S. assets of $100 billion or more to financial stability. B. Capital Planning and Stress Testing report the FR 2052a on a daily basis if they are: (i) Subject to Category II Question 45: What systems First, while the Board expects the standards, or (ii) have $75 billion or modifications would be required to proposed changes to capital planning more in weighted short-term wholesale report the information that would be and stress testing requirements to have funding. This would increase the required under the FR Y–15 in no material impact on the capital levels frequency of reporting for foreign connection with this proposal? How of U.S. intermediate holding companies banking organizations subject to much time would be required to with $100 billion or more in total Category II standards with less than implement any such modifications? consolidated assets, the proposal would $700 billion in combined U.S. assets Question 46: As a part of this reduce compliance costs for U.S. and foreign banking organizations proposal, the Federal Reserve has intermediate holding companies subject subject to Category III standards with released proposed Y–15 forms that to Category III or IV capital standards. $75 billion or more in weighted short- would add Schedules H–N to be These firms currently must conduct term wholesale funding; these foreign reported by foreign banking company-run stress tests on a semi- banking organizations currently report organizations. As an alternative, the annual basis. For U.S. intermediate the FR 2052a liquidity data on a Federal Reserve could add two new holding companies that would be monthly basis. Reporting daily liquidity columns to Schedules A–G instead of subject to Category III standards, the data would facilitate enhanced creating new schedules for these firms. supervisory monitoring based on these 119 Foreign banking organizations with less than What are the advantages and $100 billion in combined U.S. assets (and U.S. firms’ liquidity risk profile, as indicated disadvantages of these two approaches? intermediate holding companies with less than by their size, level of weighted short- What other approaches should the $100 billion in total consolidated assets) would term wholesale funding or cross- Board consider for collecting the Y–15 have significantly reduced compliance costs, as jurisdictional activity. The proposal to these firms would no longer be subject to subpart data from the U.S. branches and O of the enhanced prudential standards rule or the require daily FR 2052a liquidity data agencies, as well as the combined U.S. capital plan rule, and would no longer be required based on whether a foreign banking operations for foreign banking to file FR Y–14, FR Y–15, or FR 2052a reports. organization is subject to Category II organizations? While these foreign banking organizations would no standards or has weighted short-term longer be subject to internal liquidity stress testing and buffer requirements with respect to their U.S. wholesale funding (among its combined 118 See SR Letter 12–17, ‘‘Consolidated operations, these firms’ U.S. operations currently U.S. operations) of $75 billion or more Supervision Framework for Large Financial hold HLA well in excess of their current liquidity would replace the existing criteria for Institutions’’ (December 17, 2012). buffer requirements.

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proposal would reduce this frequency to V. Administrative Law Matters Banking Organization Systemic Risk every other year. For U.S. intermediate Report (FR Y–15; OMB No. 7100–0352). A. Solicitation of Comments and Use of holding companies that would be The proposed rule also contains Plain Language subject to Category IV standards, the reporting and recordkeeping proposal would remove this Section 722 of the Gramm-Leach- requirements subject to the PRA. To requirement altogether.120 In addition, Bliley Act (Pub. L. 106–102, 113 Stat. implement these requirements, the under the proposal the Board would 1338, 1471, 12 U.S.C. 4809) requires the Board proposes to revise reporting and conduct supervisory stress tests of U.S. federal banking agencies to use plain recordkeeping requirements associated intermediate holding companies subject language in all proposed and final rules with Regulations Y, LL and YY: (7) to Category IV standards on a two-year, published after January 1, 2000. The Reporting and Recordkeeping rather than annual, cycle. For U.S. Board has sought to present the Requirements Associated with intermediate holding companies subject proposal in a simple and Regulation Y (Capital Plans) (FR Y–13; to Category III or Category IV standards, straightforward manner, and invites OMB No. 7100–0342), (8) Reporting the proposed changes would reduce the comment on the use of plain language. Requirements Associated with compliance costs associated with capital For example: Regulation LL (FR LL; OMB No. 7100– • planning and stress testing. Has the Board organized the NEW), and (9) Reporting, material to suit your needs? If not, how Recordkeeping, and Disclosure C. Single-Counterparty Credit Limits could it present the proposal more Requirements Associated with The proposed changes to the single- clearly? Regulation YY (FR YY; OMB No. 7100– counterparty credit limits framework are • Are the requirements in the 0350). This document contains not expected to increase risks to U.S. proposal clearly stated? If not, how Paperwork Reduction Act burden financial stability. The proposal would could the proposal be more clearly estimates for the proposed changes to remove U.S. intermediate holding stated? Regulations Y, LL and YY for this • companies of a foreign banking Do the regulations contain technical proposed rule, as well as the burden organization subject to Category IV language or jargon that is not clear? If estimates for the proposed reporting and standards (as measured based on the so, which language requires recordkeeping requirements in clarification? Regulations Y, LL and YY in the combine U.S. operations of the foreign • banking organization) from the Would a different format (grouping proposal issued by the Board for applicability of single-counterparty and order of sections, use of headings, domestic banking organizations on credit limits. While these U.S. paragraphing) make the regulation October 31, 2018 (83 FR 61408). Foreign intermediate holding companies would easier to understand? If so, what banking organizations do not currently changes would achieve that? report all of the data for the measure of recognize reductions in compliance • costs associated with these Would more, but shorter, sections cross-jurisdictional activity and, requirements, they typically do not be better? If so, which sections should accordingly, the burden estimates rely present the risks that are intended to be be changed? on firm categorizations using best • What other changes can the Board addressed by the single-counterparty available data. incorporate to make the regulation credit limits framework. In addition, the Comments are invited on: easier to understand? proposal would remove the single- (a) Whether the proposed collections counterparty credit limits applicable to B. Paperwork Reduction Act Analysis of information are necessary for the major U.S. intermediate holding proper performance of the Board’s Certain provisions of the proposed functions, including whether the companies; however, there currently are rule contain ‘‘collections of no U.S. intermediate holding companies information has practical utility; information’’ within the meaning of the (b) The accuracy of the estimates of that meet or exceed the asset size Paperwork Reduction Act of 1995 (PRA) threshold for these requirements. the burden of the proposed information (44 U.S.C. 3501–3521). The Board may collections, including the validity of the The proposal would increase the costs not conduct or sponsor, and a of compliance for U.S. intermediate methodology and assumptions used; respondent is not required to respond (c) Ways to enhance the quality, holding companies with less than $250 to, an information collection unless it utility, and clarity of the information to billion in total consolidated assets and displays a currently valid Office of be collected; that are subject to Category II or Management and Budget (OMB) control (d) Ways to minimize the burden of Category III standards, as determined number. The Board reviewed the the information collections on based on the combined U.S. operations proposed rule under the authority respondents, including through the use of a foreign banking organization. The delegated to the Board by OMB. of automated collection techniques or proposal would extend the applicability The proposed rule contains reporting other forms of information technology; of certain provisions under the single- requirements subject to the PRA. To and counterparty credit limits framework to implement these requirements, the (e) Estimates of capital or startup costs these U.S. intermediate companies, Board proposes to revise the (1) and costs of operation, maintenance, which currently apply only to those Complex Institution Liquidity and purchase of services to provide with $250 billion or more in total Monitoring Report (FR 2052a; OMB No. information. consolidated assets. 7100–0361), (2) Annual Report of All comments will become a matter of Foreign Banking Organizations (FR Y–7; public record. Comments on aspects of 120 Although the proposal would not modify the OMB No. 7100–0297), (3) Capital and this proposed rule that may affect requirement for a U.S. intermediate holding Asset Report for Foreign Banking reporting, recordkeeping, or disclosure company that would be subject to Category IV standards to conduct an internal capital stress test Organizations (FR Y–7Q; OMB No. requirements and burden estimates as part of its annual capital plan submission, the 7100–0125), (4) Consolidated Financial should be sent to Ann E. Misback, Board intends to propose changes in the future Statements for Holding Companies (FR Secretary, Board of Governors of the capital plan proposal to align with the proposed Y–9C; OMB No. 7100–0128), (5) Capital Federal Reserve System, 20th Street and removal of company-run stress testing requirements for these firms. See section IV.D of this Assessments and Stress Testing (FR Y– Constitution Avenue NW, Washington, Supplementary Information section. 14A/Q/M; OMB No. 7100–0341), and (6) DC 20551. A copy of the comments may

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also be submitted to the OMB desk their operations. Section 165 of the Frequency: Annual and event- officer to the Office of Information and Dodd-Frank Act requires the Board to generated. Regulatory Affairs, Office of establish prudential standards, Affected Public: Businesses or other Management and Budget, New including liquidity requirements, for for-profit. Executive Office Building, Room 10235, certain BHCs and foreign banking Respondents: Bank holding 725 17th Street NW, Washington, DC organizations. companies (BHCs), savings and loan 20503 or by fax to 202–395–6974. Financial institution information holding companies (SLHCs), securities required by the FR 2052a is collected as holding companies (SHCs), and Proposed Revision, With Extension, of part of the Board’s supervisory process. intermediate holding companies (IHCs) the Following Information Collections Therefore, such information is entitled (collectively, holding companies (HCs)), (1) Report title: Complex Institution to confidential treatment under foreign banking organizations (FBOs), Liquidity Monitoring Report. exemption 8 of the Freedom of state member banks (SMBs) unaffiliated Agency form number: FR 2052a. Information Act (FOIA) (5 U.S.C. with a BHC, Edge Act and agreement OMB control number: 7100–0361. 552(b)(8)). In addition, the institution corporations, and nationally chartered Frequency: Monthly, each business information provided by each banks that are not controlled by a BHC day (daily). respondent would not be otherwise (with regard to their foreign investments Affected Public: Businesses or other available to the public and its disclosure only). for-profit. could cause substantial competitive Estimated number of respondents: FR Respondents: U.S. bank holding harm. Accordingly, it is entitled to Y–6: 4,079; FR Y–7: 257; FR Y–10: companies, U.S. savings and loan confidential treatment under the 4,269; FR Y–10E: 4,269. holding companies, and foreign banking authority of exemption 4 of the FOIA (5 Estimated average hours per response: organizations with U.S. assets. U.S.C. 552(b)(4), which protects from FR Y–6: 5.5; FR Y–7: 4.5; FR Y–10: 2.5; Estimated number of respondents: disclosure trade secrets and commercial FR Y–10E: 0.5. Monthly: 25; Daily: 17. or financial information. Estimated annual burden hours: FR Estimated average hours per response: Current Actions: To implement the Y–6: 22,435; FR Y–7: 1,157; FR Y–10: Monthly: 120; Daily: 220. reporting requirements of the proposed 32,018; FR Y–10E: 2,135. Estimated annual burden hours: rule, the Board is proposing to modify General description of report: The FR 971,000. the current FR 2052a reporting Y–6 is an annual information collection General description of report: The FR frequency. Consistent with EGRRCPA’s submitted by top-tier domestic HCs and 2052a is used to monitor the overall changes, the revisions would remove FBOs that are non-qualifying. It collects liquidity profile of institutions foreign banking organizations with less financial data, an organization chart, supervised by the Board. These data than $100 billion in combined U.S. verification of domestic branch data, provide detailed information on the assets from the scope of FR 2052a and information about shareholders. liquidity risks within different business reporting requirements. Additionally, The Federal Reserve uses the data to lines (e.g., financing of securities the proposal would require foreign monitor HC operations and determine positions, prime brokerage activities). In banking organizations with combined HC compliance with the provisions of particular, these data serve as part of the U.S. assets of $100 billion or more to the BHC Act, Regulation Y (12 CFR part Board’s supervisory surveillance report the FR 2052a on a daily basis if 225), the Home Owners’ Loan Act program in its liquidity risk they are (1) subject to Category II (HOLA), Regulation LL (12 CFR part management area and provide timely standards or (2) have $75 billion or 238), and Regulation YY (12 CFR part information on firm-specific liquidity more in weighted short-term wholesale 252). risks during periods of stress. Analyses funding. All other foreign banking The FR Y–7 is an annual information of systemic and idiosyncratic liquidity organizations with combined U.S. assets collection submitted by FBOs that are risk issues are then used to inform the of $100 billion or more would be subject qualifying to update their financial and Board’s supervisory processes, to monthly filing requirements. The organizational information with the including the preparation of analytical Board estimates that proposed revisions Federal Reserve. The FR Y–7 collects reports that detail funding to the FR 2052a would decrease the financial, organizational, shareholder, vulnerabilities. respondent count by 6. Specifically, the and managerial information. The Legal authorization and Board estimates that the number of Federal Reserve uses the information to confidentiality: The FR 2052a is monthly filers would decrease from 36 assess an FBO’s ability to be a authorized pursuant to section 5 of the to 25, but the number of daily filers continuing source of strength to its U.S. Bank Holding Company Act (12 U.S.C. would increase from 12 to 17. The operations and to determine compliance 1844), section 8 of the International Board estimates that proposed revisions with U.S. laws and regulations. Banking Act (12 U.S.C. 3106), section 10 to the FR 2052a would increase the The FR Y–10 is an event-generated of HOLA (12 U.S.C. 1467a), and section estimated annual burden by 259,160 information collection submitted by 165 of the Dodd-Frank Act (12 U.S.C. hours. The draft reporting forms and FBOs; top-tier HCs; securities holding 5365) and is mandatory. Section 5(c) of instructions are available on the Board’s companies as authorized under Section the Bank Holding Company Act public website at https:// 618 of the Dodd-Frank Act (12 U.S.C. authorizes the Board to require bank www.federalreserve.gov/apps/ 1850a(c)(1)); state member banks holding companies (BHCs) to submit reportforms/review.aspx. unaffiliated with a BHC; Edge and reports to the Board regarding their (2) Report title: Annual Report of agreement corporations that are not financial condition. Section 8(a) of the Holding Companies; Annual Report of controlled by a member bank, a International Banking Act subjects Foreign Banking Organizations; Report domestic BHC, or an FBO; and foreign banking organizations to the of Changes in Organizational Structure; nationally chartered banks that are not provisions of the Bank Holding Supplement to the Report of Changes in controlled by a BHC (with regard to Company Act. Section 10(b)(2) of HOLA Organizational Structure. their foreign investments only) to authorizes the Board to require savings Agency form number: FR Y–6; FR Y– capture changes in their regulated and loan holding companies (SLHCs) to 7; FR Y–10; FR Y–10E. investments and activities. The Federal file reports with the Board concerning OMB control number: 7100–0297. Reserve uses the data to monitor

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structure information on subsidiaries country regulators’ administration, (annual): 144; FR Y–7NS: 22; FR Y–7Q and regulated investments of these execution, and disclosure of their stress (quarterly): 1,170; FR Y–7Q (annual): 44. entities engaged in banking and test regime and its results, and may General description of report: The FR nonbanking activities. cause substantial competitive harm to Y–7N and the FR Y–7NS are used to The FR Y–10E is an event-driven the FBO providing the information, and assess an FBO’s ability to be a supplement that may be used to collect thus this information may be protected continuing source of strength to its U.S. additional structural information from disclosure under FOIA exemption operations and to determine compliance deemed to be critical and needed in an 4. Exemption 6 of FOIA might also with U.S. laws and regulations. FBOs expedited manner. apply with regard to the respondents’ file the FR Y–7N quarterly or annually Legal authorization and submission of non-public personal or the FR Y–7NS annually confidentiality: These information information of owners, shareholders, predominantly based on asset size collections are mandatory as follows: directors, officers and employees of thresholds. The FR Y–7Q is used to FR Y–6: Section 5(c)(1)(A) of the Bank respondents. Exemption 6 covers assess consolidated regulatory capital Holding Company Act (BHC Act) (12 ‘‘personnel and medical files and and asset information from all FBOs. U.S.C. 1844(c)(1)(A)); sections 8(a) and similar files the disclosure of which The FR Y–7Q is filed quarterly by FBOs 13(a) of the International Banking Act would constitute a clearly unwarranted that have effectively elected to become (IBA) (12 U.S.C. 3106(a) and 3108(a)); invasion of personal privacy’’ (5 U.S.C. or be treated as a U.S. financial holding sections 11(a)(1), 25, and 25A of the 552(b)(6)). All requests for confidential company (FHC) and by FBOs that have Federal Reserve Act (FRA) (12 U.S.C. treatment would need to be reviewed on total consolidated assets of $50 billion 248(a)(1), 602, and 611a); and sections a case-by-case basis and in response to or more, regardless of FHC status. All 113, 165, 312, 618, and 809 of the Dodd- a specific request for disclosure. other FBOs file the FR Y–7Q annually. Frank Wall Street Reform and Consumer Current Actions: The Board is Legal authorization and Protection Act (Dodd-Frank Act) (12 proposing to revise item 5 on the FR Y– confidentiality: With respect to FBOs U.S.C. 5361, 5365, 5412, 1850a(c)(1), 7, Regulation YY Compliance for the and their subsidiary IHCs, section 5(c) and 5468(b)(1)). Foreign Banking Organization (FBO), to of the BHC Act, in conjunction with FR Y–7: Sections 8(a) and 13(a) of the align the reporting form with the section 8 of the International Banking IBA (12 U.S.C. 3106(a) and 3108(a)); applicability thresholds set forth in this Act (12 U.S.C. 3106), authorizes the sections 113, 165, 312, 618, and 809 of proposal and other regulatory changes board to require FBOs and any the Dodd-Frank Act (12 U.S.C. 5361, that are consistent with the Board’s July subsidiary thereof to file the FR Y–7N 5365, 5412, 1850a(c)(1), and 5468(b)(1)). 2018 statement concerning EGRRCPA. reports, and the FR Y–7Q. FR Y–10 and FR Y–10E: Sections 4(k) Information collected in these reports and 5(c)(1)(A) of the BHC Act (12 U.S.C. The Board estimates that proposed revisions to the FR Y–7 would not generally is not considered confidential. 1843(k), and 1844(c)(1)(A)); section 8(a) However, because the information is impact the respondent count, but the of the IBA (12 U.S.C. 3106(a)); sections collected as part of the Board’s estimated average hours per response 11(a)(1), 25(7), and 25A of the FRA (12 supervisory process, certain information would decrease from 6 hours to 4.5 U.S.C. 248(a)(1), 321, 601, 602, 611a, may be afforded confidential treatment hours. The Board estimates that 615, and 625); sections 113, 165, 312, pursuant to exemption 8 of FOIA (5 proposed revisions to the FR Y–7 would 618, and 809 of the Dodd-Frank Act (12 U.S.C. 552(b)(8)). Individual decrease the estimated annual burden U.S.C. 5361, 5365, 5412, 1850a(c)(1), respondents may request that certain by 385 hours. The draft reporting forms and 5468(b)(1)); and section 10(c)(2)(H) data be afforded confidential treatment and instructions are available on the of the Home Owners’ Loan Act (HOLA) pursuant to exemption 4 of the FOIA if Board’s public website at https:// (12 U.S.C. 1467a(c)(2)(H)). the data has not previously been Except as discussed below, the data www.federalreserve.gov/apps/ publically disclosed and the release of collected in the FR Y–6, FR Y–7, FR Y– reportforms/review.aspx. the data would likely cause substantial (3) Report title: Financial Statements 10, and FR Y–10E are generally not harm to the competitive position of the of U.S. Nonbank Subsidiaries Held by considered confidential. With regard to respondent (5 U.S.C. 552(b)(4)). Foreign Banking Organizations, information that a banking organization Additionally, individual respondents Abbreviated Financial Statements of may deem confidential, the institution may request that personally identifiable U.S. Nonbank Subsidiaries Held by may request confidential treatment of information be afforded confidential Foreign Banking Organizations, and such information under one or more of treatment pursuant to exemption 6 of the exemptions in the Freedom of Capital and Asset Report for Foreign the FOIA if the release of the Information Act (FOIA) (5 U.S.C. 552). Banking Organizations. information would constitute a clearly Agency form number: FR Y–7N, FR The most likely case for confidential unwarranted invasion of personal treatment will be based on FOIA Y–7NS, and FR Y–7Q. OMB control number: 7100–0125. privacy (5 U.S.C. 552(b)(6)). The exemption 4, which permits an agency Frequency: Quarterly and annually. applicability of FOIA exemptions 4 and to exempt from disclosure ‘‘trade secrets Affected Public: Businesses or other 6 would be determined on a case-by- and commercial or financial information for-profit. case basis. obtained from a person and privileged Respondents: Foreign banking Current Actions: The proposal would and confidential’’ (5 U.S.C. 552(b)(4)). organizations (FBOs). amend the FR Y–7Q to align with To the extent an institution can Estimated number of respondents: FR revisions to the enhanced prudential establish the potential for substantial Y–7N (quarterly): 35; FR Y–7N (annual): standards rule. Currently, top-tier competitive harm, such information 19; FR Y–7NS: 22; FR Y–7Q (quarterly): foreign banking organizations with $50 would be protected from disclosure 130; FR Y–7Q (annual): 29. billion or more in total consolidated under the standards set forth in National Estimated average hours per response: assets must report Part 1B—Capital and Parks & Conservation Association v. FR Y–7N (quarterly): 7.6; FR Y–7N Asset Information for Top-tier Foreign Morton, 498 F.2d 765 (DC Cir. 1974). In (annual): 7.6; FR Y–7NS: 1; FR Y–7Q Banking Organizations with particular, the disclosure of the (quarterly): 2.25; FR Y–7Q (annual): 1.5. Consolidated Assets of $50 billion or responses to the certification questions Estimated annual burden hours: FR more. The proposal would now require on the FR Y–7 may interfere with home Y–7N (quarterly): 1,064; FR Y–7N top-tier foreign banking organizations

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that are subject to either sections financial statements for the consolidated by, on behalf of, or for the use of an 252.143 or 252.154 of the enhanced holding company. The Board requires agency responsible for the regulation or prudential standards rule to report Part HCs to provide standardized financial supervision of financial institutions (5 1B. The Board estimates that proposed statements to fulfill the Board’s U.S.C. 552(b)(8)). revisions to the FR Y–7Q would not statutory obligation to supervise these Current Actions: To implement the impact the respondent count, but the organizations. The FR Y–9ES is a reporting requirements of the proposed estimated average hours per response financial statement for HCs that are rule, the Board is proposing to amend would decrease from 3 hours to 2.25 Employee Stock Ownership Plans. The the FR Y–9C to further clarify hours. The Board estimates that Board uses the FR Y–9CS (a free-form requirements for U.S. intermediate proposed revisions to the FR Y–7Q supplement) to collect additional holding companies subject to Category would decrease the estimated annual information deemed to be critical and III capital standards. This proposal burden by 390 hours. The draft needed in an expedited manner. HCs would amend those instructions to reporting forms and instructions are file the FR Y–9C on a quarterly basis, further clarify that the supplementary available on the Board’s public website the FR Y–9LP quarterly, the FR Y–9SP leverage ratio and countercyclical buffer at https://www.federalreserve.gov/apps/ semiannually, the FR Y–9ES annually, also apply to Category III bank holding reportforms/review.aspx. and the FR Y–9CS on a schedule that is companies, Category III savings and (4) Report title: Consolidated determined when this supplement is loan holding companies, and Category Financial Statements for Holding used. III U.S. intermediate holding companies. Companies. Legal authorization and The Board estimates that proposed Agency form number: FR Y–9C, FR Y– confidentiality: The FR Y–9 family of revisions to the FR Y–9C would increase 9LP, FR Y–9SP, FR Y–9ES, and FR Y– reports is authorized by section 5(c) of the respondent count by 1. The draft 9CS. the Bank Holding Company Act (12 reporting forms and instructions are OMB control number: 7100–0128. U.S.C. 1844(c)), section 10(b) of the available on the Board’s public website Frequency: Quarterly, semiannually, Home Owners’ Loan Act (12 U.S.C. at https://www.federalreserve.gov/apps/ and annually. 1467a(b)), section 618 of the Dodd- reportforms/review.aspx. Affected Public: Businesses or other Frank Wall Street Reform and Consumer (5) Report title: Capital Assessments for-profit. Protection Act (Dodd-Frank Act) (12 and Stress Testing. Respondents: Bank holding U.S.C. 1850a(c)(1)), and section 165 of Agency form number: FR Y–14A/Q/ companies (BHCs), savings and loan the Dodd-Frank Act (12 U.S.C. 5365). M. holding companies (SLHCs), securities The obligation of covered institutions to OMB control number: 7100–0341. holding companies (SHCs), and U.S. report this information is mandatory. Frequency: Annually, semiannually, Intermediate Holding Companies (IHCs) With respect to FR Y–9LP, FR Y–9SP, quarterly, and monthly. (collectively, holding companies (HCs)). FR Y–ES, and FR Y–9CS, the Affected Public: Businesses or other Estimated number of respondents: FR information collected would generally for-profit. Y–9C (non-advanced approaches not be accorded confidential treatment. Respondents: The respondent panel holding companies): 292; FR Y–9C If confidential treatment is requested by consists of any top-tier bank holding (advanced approached holding a respondent, the Board will review the company (BHC) that has $100 billion or companies): 19; FR Y–9LP: 338; FR Y– request to determine if confidential more in total consolidated assets, as 9SP: 4,238; FR Y–9ES: 82; FR Y–9CS: treatment is appropriate. determined based on (1) the average of 236. With respect to FR Y–9C, Schedule the firm’s total consolidated assets in Estimated average hours per response: HI’s item 7(g) ‘‘FDIC deposit insurance the four most recent quarters as reported FR Y–9C (non-advanced approaches assessments,’’ Schedule HC–P’s item quarterly on the firm’s FR Y–9C or (2) holding companies): 46.34; FR Y–9C 7(a) ‘‘Representation and warranty the average of the firm’s total (advanced approached holding reserves for 1–4 family residential consolidated assets in the most recent companies): 47.59; FR Y–9LP: 5.27; FR mortgage loans sold to U.S. government consecutive quarters as reported Y–9SP: 5.40; FR Y–9ES: 0.50; FR Y– agencies and government sponsored quarterly on the firm’s FR Y–9Cs, if the 9CS: 0.50. agencies,’’ and Schedule HC–P’s item firm has not filed an FR Y–9C for each Estimated annual burden hours: FR 7(b) ‘‘Representation and warranty of the most recent four quarters. The Y–9C (non advanced approaches reserves for 1–4 family residential respondent panel also consists of any holding companies): 54,125; FR Y–9C mortgage loans sold to other parties’’ are U.S. intermediate holding company (advanced approached holding considered confidential. Such treatment (IHC). Reporting is required as of the companies): 3,617; FR Y–9LP: 7,125; FR is appropriate because the data is not first day of the quarter immediately Y–9SP: 45,770; FR Y–9ES: 41; FR Y– publicly available and the public release following the quarter in which the 9CS: 472. of this data is likely to impair the respondent meets this asset threshold, General description of report: The FR Board’s ability to collect necessary unless otherwise directed by the Board. Y–9 family of reporting forms continues information in the future and could Estimated number of respondents: 35. to be the primary source of financial cause substantial harm to the Estimated average hours per response: data on HCs on which examiners rely competitive position of the respondent. FR Y–14A: Summary, 887; Macro between on-site inspections. Financial Thus, this information may be kept Scenario, 31; Operational Risk, 18; data from these reporting forms is used confidential under exemptions (b)(4) of Regulatory Capital Instruments, 21; to detect emerging financial problems, the Freedom of Information Act, which Business Plan Changes, 16; and review performance, conduct exempts from disclosure ‘‘trade secrets Adjusted Capital Plan Submission, 100. preinspection analysis, monitor and and commercial or financial information FR Y–14Q: Retail, 15; Securities, 13; evaluate capital adequacy, evaluate HC obtained from a person and privileged PPNR, 711; Wholesale, 151; Trading, mergers and acquisitions, and analyze or confidential’’ (5 U.S.C. 552(b)(4)), and 1,926; Regulatory Capital Transitions, an HC’s overall financial condition to (b)(8) of the Freedom of Information 23; Regulatory Capital Instruments, 54; ensure the safety and soundness of its Act, which exempts from disclosure Operational Risk, 50; MSR Valuation, operations. The FR Y–9C, FR Y–9LP, information related to examination, 23; Supplemental, 4; Retail FVO/HFS, and FR Y–9SP serve as standardized operating, or condition reports prepared 15; Counterparty, 514; and Balances, 16.

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FR Y–14M: 1st Lien Mortgage, 516; enhancing the continued viability of FR Y–14 would decrease the reporting Home Equity, 516; and Credit Card, 512. large firms, including continuous panel by 1 respondent. The draft FR Y–14: Implementation, 7,200; monitoring of firms’ planning and reporting forms and instructions are Ongoing Automation Revisions, 480. FR management of liquidity and funding available on the Board’s public website Y–14 Attestation—Implementation, resources, as well as regular assessments at https://www.federalreserve.gov/apps/ 4,800; Attestation On-going Audit and of credit, market and operational risks, reportforms/review.aspx. Review, 2,560. and associated risk management (6) Report title: Banking Organization Estimated annual burden hours: FR practices. Information gathered in this Systemic Risk Report. Y–14A: Summary, 62,090; Macro data collection is also used in the Agency form number: FR Y–15. Scenario, 2,170; Operational Risk, 630; supervision and regulation of these OMB control number: 7100–0352. Regulatory Capital Instruments, 735; financial institutions. To fully evaluate Frequency: Quarterly. Business Plan Changes, 560; and the data submissions, the Board may Affected Public: Businesses or other Adjusted Capital Plan Submission, 500. conduct follow-up discussions with, or for-profit. FR Y–14Q: Retail, 2,100; Securities, request responses to follow up questions Respondents: U.S. bank holding 1,820; Pre-Provision Net Revenue from, respondents. Respondent firms are companies (BHCs), covered savings and (PPNR), 99,540; Wholesale, 21,140; currently required to complete and loan holding companies (SLHCs), and Trading, 92,448; Regulatory Capital submit up to 18 filings each year: Two U.S. intermediate holding companies Transitions, 3,220; Regulatory Capital semi-annual FR Y–14A filings, four (IHCs) of foreign banking organizations Instruments, 7,560; Operational risk, quarterly FR Y–14Q filings, and 12 with $100 billion or more in total 7,000; Mortgage Servicing Rights (MSR) monthly FR Y–14M filings. Compliance consolidated assets, and any BHC Valuation, 1,380; Supplemental, 560; with the information collection is designated as a global systemically Retail Fair Value Option/Held for Sale mandatory. important bank holding company (GSIB) (Retail FVO/HFS), 1,500; Counterparty, Legal authorization and that does not otherwise meet the 24,672; and Balances, 2,240. FR Y–14M: confidentiality: The Board has the consolidated assets threshold for BHCs. 1st Lien Mortgage, 204,336; Home authority to require BHCs to file the FR Estimated number of respondents: 42. Equity, 167,184; and Credit Card, Y–14A/Q/M reports pursuant to section Estimated average hours per response: 79,872. FR Y–14: Implementation, and 5 of the Bank Holding Company Act 408.01. On-going Automation Revisions, 16,800. (BHC Act) (12 U.S.C. 1844), and to Estimated annual burden hours: FR Y–14 Attestation On-going Audit require the U.S. IHCs of FBOs to file the 68,546. and Review, 33,280. FR Y–14 A/Q/M reports pursuant to General description of report: The FR General description of report: These section 5 of the BHC Act, in conjunction Y–15 quarterly report collects systemic collections of information are applicable with section 8 of the International risk data from U.S. bank holding to top-tier BHCs with total consolidated Banking Act (12 U.S.C. 3106). The companies (BHCs), covered savings and assets of $100 billion or more and U.S. Board has authority to require SLHCs to loan holding companies (SLHCs), and IHCs. This family of information file the FR Y–14A/Q/M reports pursuant U.S. intermediate holding companies collections is composed of the following to section 10 of HOLA (12 U.S.C. (IHCs) with total consolidated assets of three reports: 1467a). $50 billion or more, and any BHC 1. The FR Y–14A collects quantitative The information collected in these identified as a global systemically projections of balance sheet, income, reports is collected as part of the Board’s important banking organization (GSIB) losses, and capital across a range of supervisory process, and therefore is based on its method 1 score calculated macroeconomic scenarios and afforded confidential treatment as of December 31 of the previous qualitative information on pursuant to exemption 8 of the Freedom calendar year. The Board uses the FR Y– methodologies used to develop internal of Information Act (FOIA) (5 U.S.C. 15 data to monitor, on an ongoing basis, projections of capital across scenarios 552(b)(8)). In addition, individual the systemic risk profile of institutions either annually or semi-annually. respondents may request that certain that are subject to enhanced prudential 2. The quarterly FR Y–14Q collects data be afforded confidential treatment standards under section 165 of the granular data on various asset classes, pursuant to exemption 4 of FOIA if the Dodd-Frank Wall Street Reform and including loans, securities, and trading data has not previously been publicly Consumer Protection Act (Dodd-Frank assets, and PPNR for the reporting disclosed and the release of the data Act). In addition, the FR Y–15 is used period. would likely cause substantial harm to to (1) facilitate the implementation of 3. The monthly FR Y–14M is the competitive position of the the GSIB surcharge rule, (2) identify comprised of three retail portfolio- and respondent (5 U.S.C. 552(b)(4)). other institutions that may present loan-level schedules, and one detailed Determinations of confidentiality based significant systemic risk, and (3) analyze address-matching schedule to on exemption 4 of FOIA would be made the systemic risk implications of supplement two of the portfolio and on a case-by-case basis. proposed mergers and acquisitions. loan-level schedules. Current Actions: To implement the Legal authorization and The data collected through the FR Y– reporting requirements of the proposed confidentiality: The mandatory FR Y–15 14A/Q/M reports provide the Board rule, the Board proposes to revise the FR is authorized by sections 163 and 165 of with the information and perspective Y–14 threshold for U.S. intermediate the Dodd-Frank Act (12 U.S.C. 5463 and needed to help ensure that large firms holding companies that would be 5365), the International Banking Act (12 have strong, firm-wide risk required to submit these forms, by U.S.C. 3106 and 3108), the Bank measurement and management increasing it to apply only U.S. Holding Company Act (12 U.S.C. 1844), processes supporting their internal intermediate holding companies with and HOLA (12 U.S.C. 1467a). assessments of capital adequacy and $100 billion or more in total Most of the data collected on the FR that their capital resources are sufficient consolidated assets. U.S. intermediate Y–15 is made public unless a specific given their business focus, activities, holding companies below this size request for confidentiality is submitted and resulting risk exposures. The threshold would no longer be required by the reporting entity, either on the FR annual CCAR exercise complements to submit these forms. The Board Y–15 or on the form from which the other Board supervisory efforts aimed at estimates that proposed revisions to the data item is obtained. Such information

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will be accorded confidential treatment jurisdictional liabilities to non-U.S. (225.8(e)(4)), 1,000 hours; review of under exemption 4 of the Freedom of affiliates and cross-jurisdictional claims capital plans by the Federal Reserve Information Act (FOIA) (5 U.S.C. on non-U.S. affiliates to the extent that reporting (225.8(f)(3)(i)), 32 hours; prior 552(b)(4)) if the submitter substantiates these claims are secured by eligible approval request requirements reporting its assertion that disclosure would likely financial collateral. To effectuate this (225.8(g)(1), (3), & (4)), 2,300 hours; cause substantial competitive harm. In change, the proposal would add new prior approval request requirements addition, items 1 through 4 of Schedule line items to proposed Schedule L and exceptions (225.8(g)(3)(iii)(A)), 32 G of the FR Y–15, which contain amend the instructions accordingly. The hours; prior approval request granular information regarding the proposal would clarify that Line Item requirements reports (225.8(g)(6)), 32 reporting entity’s short-term funding, 2(a) should be completed only with hours; annual capital planning will be accorded confidential treatment respect to the U.S. intermediate holding recordkeeping (225.8(e)(1)(i)) (LISCC under exemption 4 for observation dates company’s liabilities to its foreign and large and complex firms), 214,560 that occur prior to the liquidity coverage subsidiaries, if any, and not liabilities to hours; annual capital planning ratio disclosure standard being non-U.S. affiliates of the foreign banking recordkeeping (225.8(c)(1)(i)) (large and implemented. To the extent confidential organization not held by the U.S. noncomplex firms), 142,720 hours; data collected under the FR Y–15 will intermediate holding company. Line annual capital planning recordkeeping be used for supervisory purposes, it may Item 2(a) would be left blank for the (225.8(e)(1)(iii)), 3,400 hours. be exempt from disclosure under U.S. branch or agency. The Board General description of report: Exemption 8 of FOIA (5 U.S.C. estimates that the proposed changes to Regulation Y (12 CFR part 225) requires 552(b)(8)). the FR Y–15 would increase the large bank holding companies (BHCs) to Current Actions: To implement the respondent count by 5 respondents. The submit capital plans to the Federal reporting requirements of the proposed Board also estimates that proposed Reserve on an annual basis and to rule, the Board is proposing to modify revisions to the FR Y–15 would increase require such BHCs to request prior the FR Y–15 report to require a foreign the estimated average hours per approval from the Federal Reserve banking organization to report data for response by 7.01 hours and would under certain circumstances before its combined U.S. operations that are increase the estimated annual burden by making a capital distribution. related to the criteria for determining 9,198 hours. The draft reporting forms Current Actions: This proposal and the applicability of enhanced prudential and instructions are available on the the Board’s proposal on prudential standards under this proposal. Foreign Board’s public website at https:// standards for domestic banking banking organizations would be www.federalreserve.gov/apps/ organizations (83 FR 61408) would required to report the information reportforms/review.aspx. make various changes to the Board’s required under new schedules H (7) Report title: Reporting and capital plan rule. First, the threshold for through N of the FR Y–15, which would Recordkeeping Requirements application of § 225.8 would be raised replicate schedules A through F of the Associated with Regulation Y (Capital from bank holding companies with $50 current FR Y–15 for domestic holding Plans). billion or more in total consolidated companies (with the exception of cross- Agency form number: FR Y–13. assets to bank holding companies with jurisdictional activity, as discussed OMB control number: 7100–0342. $100 billion or more in total below).121 Schedules H through N Frequency: Annually. consolidated assets. Second, the would be structured to include three Affected Public: Businesses or other proposals would amend the definition columns, in which a foreign banking for-profit. of ‘‘large and noncomplex bank holding organization would report the Respondents: BHCs and IHCs. company’’ to be Category IV banking information request for each item for (i) Estimated number of respondents: 36. Estimated average hours per response: organizations, pursuant to 12 CFR 252.5. its U.S. intermediate holding company, The proposed changes would reduce the (ii) its U.S. branch and agency network, Annual capital planning reporting (225.8(e)(1)(ii)), 80 hours; data panels for various provisions in § 225.8. and (iii) its combined U.S. operations. (8) Title of Information Collection: collections reporting (225.8(e)(3)), 1,005 Consistent with the domestic proposal, Reporting Requirements Associated hours; data collections reporting the proposal would add two line items with Regulation LL. to Schedule H of the FR Y–15 to (225.8(e)(4)), 100 hours; review of Agency Form Number: FR LL. calculate total off-balance sheet capital plans by the Federal Reserve OMB control number: 7100–NEW. exposure. New line item M4 (total reporting (225.8(f)(3)(i)), 16 hours; prior Frequency: Biennial. consolidated assets) would report the approval request requirements reporting Affected Public: Businesses or other total consolidated on-balance sheet (225.8(g)(1), (3), & (4)), 100 hours; prior for-profit. assets for the respondent, as calculated approval request requirements Respondents: Savings and loan under Schedule HC, item 12 (total exceptions (225.8(g)(3)(iii)(A)), 16 holding companies. consolidated assets) on the FR Y–9C. hours; prior approval request Description of the Information New line item M5 (total off-balance requirements reports (225.8(g)(6)), 16 Collection: Section 252.122(b)(1)(iii) of sheet exposures) would be total hours; annual capital planning the Board’s Regulation YY currently exposure, as currently defined on the FR recordkeeping (225.8(e)(1)(i)) (LISCC requires, unless the Board otherwise Y–15, minus line item M4. For purposes and large and complex firms), 11,920 determines in writing, a foreign savings of reporting cross-jurisdictional activity, hours; annual capital planning and loan holding company with more the FR Y–15 would require foreign recordkeeping (225.8(c)(1)(i)) (large and than $10 billion in total consolidated banking organizations to report assets noncomplex firms), 8,920 hours; annual assets that does not meet applicable and liabilities of the U.S. intermediate capital planning recordkeeping home-country stress testing standards to holding company and U.S. branch and (225.8(e)(1)(iii)), 100 hours. report on an annual basis a summary of Estimated annual burden hours: agency network, excluding cross- the results of the stress test to the Board. Annual capital planning reporting Current Actions: The Board proposes to move the requirement for foreign 121 U.S. intermediate holding companies would (225.8(e)(1)(ii)), 2,720 hours; data no longer be required to report on schedules A collections reporting (225.8(e)(3)), savings and loan holding companies through G of the FR Y–15. 25,125 hours; data collections reporting currently in § 252.122(b)(1)(iii) of

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Regulation YY into the proposed Description of the Information all bank holding companies subject to § 238.162(b)(1)(ii) of Regulation LL. In Collection: Section 165 of the Dodd- this provision must calculate collateral doing so, the Board proposes to amend Frank Act, as amended by EGRRCPA, positions weekly (or more frequently, as the frequency of the reporting requires the Board to implement directed by the Board). requirement in proposed enhanced prudential standards for bank Section 252.34(h)(3) would require a § 238.162(b)(1)(ii) from annual to at least holding companies and foreign banking bank holding company with total biennial. The Board also proposes to organizations with total consolidated consolidated assets of $100 billion or raise the threshold for applicability of assets of $250 billion or more, and more to establish and maintain section 238.162 from more than $10 provides the Board with discretion to procedures for monitoring intraday billion in total consolidated assets to apply enhanced prudential standards to liquidity risk exposure that are more than $250 billion in total certain bank holding companies and consistent with the bank holding consolidated assets. foreign banking organizations with $100 company’s capital structure, risk profile, Legal authorization and billion or more, but less than $250 complexity, activities, and size. If the confidentiality: This information billion, in total consolidated assets. The bank holding company is a global collection is authorized by section 10 of enhanced prudential standards include systemically important bank holding the Home Owners’ Loan Act (HOLA) risk-based and leverage capital company, Category II bank holding and section 165(i)(2) of the Dodd-Frank requirements, liquidity standards, company, or a Category III bank holding Act. The obligation of covered requirements for overall risk company, these procedures must institutions to report this information is management (including establishing a address how the management of the mandatory. This information would be risk committee), stress test bank holding company will: (1) Monitor disclosed publicly and, as a result, no requirements, and debt-to-equity limits and measure expected daily gross issue of confidentiality is raised. for companies that the Financial liquidity inflows and outflows; (2) Estimated number of respondents: Stability Oversight Council has manage and transfer collateral to obtain 1.122 determined pose a grave threat to intraday credit; (3) identify and Estimated average hours per response: financial stability. prioritize time-specific obligations so 80. Current Actions: As described below, that the bank holding company can Estimated annual burden hours: 40. the Board is amending reporting, meet these obligations as expected and (8) Title of Information Collection: recordkeeping and disclosure settle less critical obligations as soon as Reporting, Recordkeeping, and requirements in Regulation YY to be possible; (4) manage the issuance of Disclosure Requirements Associated consistent with EGRRCPA’s changes to credit to customers where necessary; with Regulation YY (Enhanced section 165 of the Dodd-Frank; the and (5) consider the amounts of Prudential Standards). Board’s proposal to amend prudential collateral and liquidity needed to meet Agency Form Number: FR YY. standards for domestic banking payment systems obligations when OMB Control Number: 7100–0350. organizations (83 FR 61408); and the assessing the bank holding company’s Frequency of Response: Annual, proposal described in this Federal overall liquidity needs. Category IV semiannual, quarterly. Affected Public: Businesses or other Register document, which amends bank holding companies would not be for-profit. prudential standards for foreign banking subject to the proscriptive language. Respondents: State member banks, organizations and foreign savings and Subpart L—The proposal would U.S. bank holding companies, savings loan holding companies. eliminate subpart L. In doing so, the and loan holding companies, nonbank Subpart D—The domestic proposal proposal would eliminate financial companies, foreign banking proposed to change applicability § 252.122(b)(1)(iii), which currently organizations, U.S. intermediate holding thresholds for application of subpart D requires, unless the Board otherwise companies, foreign saving and loan from bank holding companies with $50 determines in writing, a foreign banking holding companies, and foreign billion or more in total consolidated organization with total consolidated nonbank financial companies assets to bank holding companies with assets of more than $10 billion but less supervised by the Board. $100 billion or more in total than $50 billion or a foreign savings and Number of respondents: 24 U.S. bank consolidated. In doing so, the number of loan holding company with total holding companies with total respondents for collections of consolidated assets of more than $10 consolidated assets of $50 billion or information in §§ 252.34 and 252.35 billion that does not meet the home- more, 46 U.S. bank holding companies would decrease. Additionally, the country stress testing standards set forth with total consolidated assets over $10 burden hours for compliance with in the rule to report on an annual basis billion and less than $50 billion, 21 §§ 252.34(h)(1) and (3) would be a summary of the results of the stress state member banks with total reduced. Section 252.34(h)(1) would test to the Board. This requirement consolidated assets over $10 billion, 39 require a bank holding company with would continue to exist for foreign savings and loan holding companies total consolidated assets of $100 billion banking organizations with total with total consolidated assets over $10 or more to establish and maintain consolidated assets of more than $100 billion, 24 foreign banking organizations policies and procedures to monitor billion in proposed §§ 252.146 and with total consolidated assets of $50 assets that have been, or are available to 252.158 of Regulation YY, and for a billion or more and combined U.S. be, pledged as collateral in connection foreign savings and loan holding assets of $50 billion or more, 17 U.S. with transactions to which it or its company with total consolidated assets intermediate holding companies, and affiliates are counterparties and sets of more than $250 billion in proposed 102 foreign banking organizations with forth minimum standards for those § 238.162 of Regulation LL. Subpart M—The proposal would total consolidated assets of more than procedures. Category IV bank holding change the applicability thresholds for $10 billion and combined U.S. assets of companies would be required to application of subpart M from foreign less than $50 billion. calculate their collateral positions on a monthly basis; all other bank holding banking organizations with between $10 122 Currently, there are no foreign savings and companies subject to the section would and $50 billion in total consolidated loan holding companies in existence. For PRA be required to calculate their collateral assets to foreign banking organizations purposes, ‘‘1’’ is used as a placeholder. positions on a weekly basis. Currently, with between $50 and $100 billion in

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total consolidated assets. In doing so, more to establish and maintain Regulations Q,125 Y,126 LL,127 and the number of respondents for procedures for monitoring intraday YY 128 that would affect the regulatory collections of information in § 252.132 liquidity risk exposure for its combined requirements that apply to foreign would decrease. U.S. operations that are consistent with banking organizations and foreign Subpart N—The proposal would the capital structure, risk profile, savings and loan holding companies change the applicability thresholds for complexity, activities, and size of the with more than $10 billion in total application of subpart N from foreign foreign banking organization and its consolidated assets and U.S. depository banking organizations with $50 billion combined U.S. operations. If the foreign institution holding companies with or more in total consolidated assets but banking organization is a Category II $100 billion or more in total combined U.S. assets of less than $50 foreign banking organization or a consolidated assets. Therefore, billion to foreign banking organizations Category III foreign banking companies that are affected by the with $100 billion or more in total organization, these procedures must proposal substantially exceed the $550 consolidated assets but combined U.S. address how the management of the million asset threshold at which a assets of less than $100 billion. In doing combined U.S. operations will: (1) banking entity is considered a ‘‘small so, the number of respondents for Monitor and measure expected gross entity’’ under SBA regulations. collections of information in §§ 252.143, daily inflows and outflows; (2) manage Because the proposal is not likely to 252.144, 252.145, 252.146, 252.154, and transfer collateral to obtain intraday apply to any company with assets of 252.157, and 252.158 would decrease. credit; (3) identify and prioritize time- $550 million or less if adopted in final Moreover, some of the requirements in specific obligations so that the foreign form, the proposal is not expected to subpart N would only apply to foreign banking organizations can meet these affect any small entity for purposes of banking organizations with $250 billion obligations as expected and settle less the RFA. The Board does not believe or more in total consolidated assets. critical obligations as soon as possible; that the proposal duplicates, overlaps, These provisions include §§ 252.143(a) (4) manage the issuance of credit to or conflicts with any other Federal and 252.145(a). customers where necessary; and (5) rules. In light of the foregoing, the Board Subpart O—The proposal would consider the amounts of collateral and does not believe that the proposal, if change the applicability thresholds for liquidity needed to meet payment adopted in final form, would have a application of subpart O from foreign systems obligations when assessing the significant economic impact on a banking organizations with $50 billion overall liquidity needs of the combined substantial number of small entities or more in total consolidated assets and U.S. operations. Category IV foreign supervised. Nonetheless, the Board combined U.S. assets of $50 billion or banking organizations would not be seeks comment on whether the proposal more to foreign banking organizations subject to the proscriptive language. would impose undue burdens on, or with $100 billion or more in total have unintended consequences for, consolidated assets and combined U.S. Current estimated annual burden: 41,619 hours. small banking organizations, and assets of $100 billion or more. In doing whether there are ways such potential so, the number of respondents for Proposed revisions estimated annual burdens or consequences could be collections of information in §§ 252.153, burden: (11,238) hours. minimized in a manner consistent the 252.156, and 252.157 would decrease. Total estimated annual burden: purpose of the proposal. The proposal would also eliminate 30,381 hours. implementation plans in § 252.153(d), List of Subjects C. Regulatory Flexibility Act Analysis which would result in a reduction of 12 CFR Part 217 annual burden hours. The burden hours for compliance In accordance with the Regulatory Administrative practice and with § 252.156(g)(1) and (3) also would Flexibility Act (RFA), 5 U.S.C. 601 et procedure, Banks, Banking, Capital, be reduced. Section 252.156(g)(1) would seq., the Board is publishing an initial Federal Reserve System, Holding require a foreign banking organization regulatory flexibility analysis of the companies, Reporting and with combined U.S. assets of $100 proposal. The RFA requires each federal recordkeeping requirements, Risk, billion or more to establish and agency to prepare an initial regulatory Securities. flexibility analysis in connection with maintain policies and procedures to 12 CFR Part 225 monitor assets that have been or are the promulgation of a proposed rule, or available to be pledged as collateral in certify that the proposed rule will not Administrative practice and connection with transactions to which have a significant economic impact on procedure, Banks, Banking, Capital entities in its U.S. operations are a substantial number of small planning, Holding companies, Reporting 123 counterparties. Previously, all foreign entities. Under regulations issued by and recordkeeping requirements, banking organizations subject to this the SBA, a small entity includes a bank, Securities, Stress testing. bank holding company, or savings and provision were required to calculate 12 CFR Part 238 collateral positions on a weekly basis (or loan holding company with assets of Administrative practice and more frequently, as directed by the $550 million or less (small banking 124 procedure, Banks, Banking, Federal Board). As proposed, Category IV organization). Based on the Board’s Reserve System, Reporting and foreign banking organizations analysis, and for the reasons stated recordkeeping requirements, Securities. companies would calculate all of the below, the Board believes that this collateral positions for its combined proposed rule will not have a significant 12 CFR Part 252 U.S. operations on a monthly basis; all economic impact on a substantial number of small banking organizations Administrative practice and other foreign banking organizations with procedure, Banks, Banking, Capital at least $100 billion in combined U.S. As discussed in the SUPPLEMENTARY planning, Federal Reserve System, assets would calculate on a weekly INFORMATION section, the Board is basis. proposing to adopt amendments to 125 12 CFR part 217. Section 252.156(g)(3) would require a 126 12 CFR part 225. foreign banking organization with 123 See 5 U.S.C. 603, 604, and 605. 127 12 CFR part 238. combined U.S. assets of $100 billion or 124 See 13 CFR 121.201. 128 12 CFR part 252.

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Holding companies, Reporting and 3907, and 3909; 15 U.S.C. 1681s, 1681w, Subpart N—Risk Committee, Liquidity recordkeeping requirements, Securities, 6801 and 6805. Risk Management, and Liquidity Buffer Stress testing. Requirements for Covered Savings Subpart A—General Provisions and Loan Holding Companies With Authority and Issuance ■ 4. In § 225.8, as proposed to be Total Consolidated Assets of $100 For the reasons stated in the amended at 83 FR 61408 (November 29, Billion or More Supplementary Information, Chapter II 2018), is further amended by revising of title 12 of the Code of Federal ■ 6. Section 238.124, as proposed to be paragraph (c) and paragraph (d)(9) to added at 83 FR 61408 (November 29, Regulations is proposed to be amended read as follows: as follows: 2018), is further amended by adding § 225.8 Capital planning. paragraph (a)(8) to read as follows: PART 217—CAPITAL ADEQUACY OF * * * * * § 238.124 Liquidity stress testing and BANK HOLDING COMPANIES, (c) Transitional arrangements— buffer requirements SAVINGS AND LOAN HOLDING Transition periods for certain bank (a) * * * COMPANIES, AND STATE MEMBER holding companies. (8) Notice and Response. (i) If the BANKS (REGULATION Q) (1) A bank holding company that Board determines that a savings and ■ 1. The authority citation for part 217 meets the $100 billion asset threshold loan holding company must conduct continues to read as follows: (as measured under paragraph (b) of this liquidity stress tests according to a section) on or before September 30 of a frequency other than the frequency Authority: 12 U.S.C. 248(a), 321–338a, calendar year must comply with the provided in paragraphs (a)(2)(i) and (ii) 481–486, 1462a, 1467a, 1818, 1828, 1831n, of this section, the Board will notify the 1831o, 1831p–1, 1831w, 1835, 1844(b), 1851, requirements of this section beginning 3904, 3906–3909, 4808, 5365, 5368, 5371. on January 1 of the next calendar year, savings and loan holding company unless that time is extended by the before the change in frequency takes Subpart H—Risk-based Capital Board in writing. effect, and describe the basis for its Surcharge for Global Systemically (2) A bank holding company that determination. Within 14 calendar days Important Bank Holding Companies meets the $100 billion asset threshold of receipt of a notification under this after September 30 of a calendar year paragraph, the savings and loan holding ■ 2. Amend § 217.400 by: must comply with the requirements of company may request in writing that the ■ a. Revising paragraph (b)(1); this section beginning on January 1 of Board reconsider the requirement. The ■ b. Removing the text to paragraph the second calendar year after the bank Board will respond in writing to the (b)(2) introductory text; holding company meets the $100 billion company’s request for reconsideration ■ c. Revising paragraph (b)(2)(i); and asset threshold, unless that time is prior to requiring the company conduct ■ d. Removing paragraph (b)(3). extended by the Board in writing. liquidity stress tests according to a The revisions read as follows: (3) The Board or the appropriate frequency other than the frequency § 217.400 Purpose and applicability. Reserve Bank with the concurrence of provided in paragraphs (a)(2)(i) and (ii) of this section. * * * * * the Board, may require a bank holding company described in paragraph * * * * * (b) * * * ■ (1) General. This subpart applies to a (c)(1)(i) or (ii) of this section to comply 7. Add subpart R to read as follows: bank holding company that: with any or all of the requirements in Subpart R—Company-Run Stress Test (i) Is an advanced approaches Board- paragraphs (e)(1), (e)(3), (f), or (g) of this Requirements for Foreign Savings and regulated institution or a Category III section if the Board or appropriate Loan Holding Companies With Total Board-regulated institution; Reserve Bank with concurrence of the Consolidated Assets Over $250 Billion (ii) Is not a consolidated subsidiary of Board, determines that the requirement Sec. a bank holding company; and is appropriate on a different date based 238.160 Definitions. (iii) Is not a consolidated subsidiary of on the company’s risk profile, scope of 238.161 Applicability. 238.162 Capital stress testing requirements. a foreign banking organization. operation, or financial condition and (2) * * * provides prior notice to the company of Subpart R—Company-Run Stress Test (i) A bank holding company identified the determination Requirements for Foreign Savings and in § 217.400(b)(1) is subject to § 217.402 (d) * * * Loan Holding Companies With Total of this part and must determine whether (9) Large and noncomplex bank Consolidated Assets Over $250 Billion it qualifies as a global systemically holding company means any bank important BHC beginning the year holding company subject to this section § 238.160 Definitions. immediately following the year in that, as of December 31 of the calendar For purposes of this subpart, the which the bank holding company year prior to the capital plan cycle, is following definitions apply: becomes an advanced approaches identified as a Category IV banking (a) Foreign savings and loan holding Board-regulated institution or a organization pursuant to 12 CFR 252.5. company means a savings and loan Category III Board-regulated institution; * * * * * holding company as defined in section * * * * * 10 of the Home Owners’ Loan Act (12 PART 238—SAVINGS AND LOAN U.S.C. 1467a(a)) that is incorporated or PART 225—BANK HOLDING HOLDING COMPANIES (REGULATION organized under the laws of a country COMPANIES AND CHANGE IN BANK LL) other than the United States. CONTROL (REGULATION Y) (b) Pre-provision net revenue means ■ 5. The authority citation for part 238 revenue less expenses before adjusting ■ 3. The authority citation for part 225 continues to read as follows: for total loan loss provisions. continues to read as follows: Authority: 5 U.S.C. 552, 559; 12 U.S.C. (c) Stress test cycle has the same Authority: 12 U.S.C. 1817(j)(13), 1818, 1462, 1462a, 1463, 1464, 1467, 1467a, 1468, meaning as in subpart O of this part. 1828(o), 1831i, 1831p-1, 1843(c)(8), 1844(b), 1813, 1817, 1829e, 1831i, 1972, 15 U.S.C. 78 (d) Total loan loss provisions means 1972(1), 3106, 3108, 3310, 3331–3351, 3906, l. the amount needed to make reserves

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adequate to absorb estimated credit by the home-country supervisor of an (1) The ownership structure of the losses, based upon management’s internal capital adequacy stress test foreign banking organization, including evaluation of the loans and leases that conducted by the foreign savings and whether the foreign banking the company has the intent and ability loan holding company, conducted on at organization is owned or controlled by to hold for the foreseeable future or least a biennial basis; and a foreign government; until maturity or payoff, as determined (ii) Requirements for governance and (2) Whether the action would be under applicable accounting standards. controls of stress testing practices by consistent with the purposes of this relevant management and the board of part; and § 238.161 Applicability. directors (or equivalent thereof). (3) Any other factors that the Board (a) Applicability for foreign savings (b) Additional standards. (1) Unless determines are relevant. and loan holding companies with total the Board otherwise determines in ■ 10. Revise § 252.2 to read as follows: consolidated assets of more than $250 writing, a foreign savings and loan § 252.2 Definitions. billion—(1) General. A foreign savings holding company that does not meet and loan holding company must comply each of the requirements in paragraphs Unless otherwise specified, the with the stress test requirements set (a)(1) and (2) of this section must: following definitions apply for purposes forth in this section beginning on the (i) Conduct an annual stress test of its of this part: first day of the ninth quarter following U.S. subsidiaries to determine whether Affiliate has the same meaning as in the date on which its total consolidated those subsidiaries have the capital section 2(k) of the Bank Holding assets exceed $250 billion. necessary to absorb losses as a result of Company Act (12 U.S.C. 1841(k)) and (2) Total consolidated assets. Total adverse economic conditions; and § 225.2(a) of this chapter. consolidated assets of a foreign savings (ii) Report on at least a biennial basis Applicable accounting standards and loan holding company for purposes a summary of the results of the stress means U.S. generally accepted of this subpart are equal to the average test to the Board that includes a accounting principles, international of total assets for the four most recent description of the types of risks financial reporting standards, or such calendar quarters as reported by the included in the stress test, a description other accounting standards that a foreign savings and loan holding of the conditions or scenarios used in company uses in the ordinary course of company on its applicable regulatory the stress test, a summary description of its business in preparing its report. If the foreign savings and loan the methodologies used in the stress consolidated financial statements. holding company has reported total test, estimates of aggregate losses, pre- Average combined U.S. assets means consolidated assets for the four most provision net revenue, total loan loss the average of combined U.S. assets for recent calendar quarters, total provisions, net income before taxes and the four most recent calendar quarters consolidated assets are equal to the pro forma regulatory capital ratios or, if the banking organization has not average of total consolidated assets as required to be computed by the home- reported combined U.S. assets for each reported for the most recent quarter or country supervisor of the foreign of the four most recent calendar quarters, or most recent year. savings and loan holding company and quarters, the average of combined U.S. (3) Cessation of requirements. A any other relevant capital ratios, and an assets for the most recent calendar foreign savings and loan holding explanation of the most significant quarter or quarters, as applicable. Average cross-jurisdictional activity company will remain subject to causes for any changes in regulatory means the average of cross-jurisdictional requirements of this subpart until the capital ratios. date on which the foreign savings and (2) An enterprise-wide stress test that activity for the four most recent loan holding company’s total is approved by the Board may meet the calendar quarters or, if the banking consolidated assets are below $250 stress test requirement of paragraph organization has not reported cross- billion for each of four most recent (b)(1)(ii) of this section. jurisdictional activity for each of the calendar quarters. four most recent calendar quarters, the (b) [Reserved] PART 252—ENHANCED PRUDENTIAL average of cross-jurisdictional activity STANDARDS (REGULATION YY) for the most recent calendar quarter or § 238.162 Capital stress testing quarters, as applicable. requirements. ■ 8. The authority citation for part 252 Average off-balance sheet exposure (a) In general. (1) A foreign savings continues to read as follows: means the average of off-balance sheet and loan holding company with total Authority: 12 U.S.C. 321–338a, 481–486, exposure for the four most recent consolidated assets of more than $250 1467a, 1818, 1828, 1831n, 1831o, 1831p–l, calendar quarters or, if the banking billion must: 1831w, 1835, 1844(b), 1844(c), 3101 et seq., organization has not reported total (i) Be subject on a consolidated basis 3101 note, 3904, 3906–3909, 4808, 5361, exposure and total consolidated assets to a capital stress testing regime by its 5362, 5365, 5366, 5367, 5368, 5371. for each of the four most recent calendar home-country supervisor that meets the quarters, the average of off-balance sheet Subpart A—General Provisions requirements of paragraph (a)(2) of this exposure for the most recent calendar section; and ■ 9. Amend § 252.1 by adding paragraph quarter or quarters, as applicable. (ii) Conduct such stress tests or be (c) to read as follows: Average total consolidated assets subject to a supervisory stress test and means the average of total consolidated meet any minimum standards set by its § 252.1 Authority and purpose. assets for the four most recent calendar home-country supervisor with respect to * * * * * quarters or, if the banking organization the stress tests. (c) Reservation of authority. The has not reported total consolidated (2) The capital stress testing regime of Board may permit a foreign banking assets for each of the four most recent a foreign savings and loan holding organization to comply with the calendar quarters, the average of total company’s home-country supervisor requirements of this part through a consolidated assets for the most recent must include: subsidiary foreign bank or company of calendar quarter or quarters, as (i) A supervisory capital stress test the foreign banking organization. In applicable. conducted by the relevant home-country making this determination, the Board Average total nonbank assets means supervisor or an evaluation and review shall consider: the average of total nonbank assets for

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the four most recent calendar quarters identified as a Category IV banking liabilities of the U.S. intermediate or, if the banking organization has not organization pursuant to § 252.5. holding company, as reported on the FR reported or calculated total nonbank Category IV foreign banking Y–15. assets for each of the four most recent organization means a foreign banking (3) The cross-jurisdictional activity of calendar quarters, the average of total organization identified as a Category IV a foreign banking organization is equal nonbank assets for the most recent banking organization pursuant to to the sum of cross-jurisdictional claims calendar quarter or quarters, as § 252.5. and cross-jurisdictional liabilities of the applicable. Category IV U.S. intermediate holding combined U.S. operations of the foreign Average weighted short-term company means a U.S. intermediate banking organization, as reported on the wholesale funding means the average of holding company identified as a FR Y–15. weighted short-term wholesale funding Category IV banking organization Depository institution has the same for each of the four most recent calendar pursuant to § 252.5. meaning as in section 3 of the Federal quarters or, if the banking organization Combined U.S. assets means the sum Deposit Insurance Act (12 U.S.C. has not reported weighted short-term of the consolidated assets of each top- 1813(c)). wholesale funding for each of the four tier U.S. subsidiary of the foreign DPC branch subsidiary means any most recent calendar quarters, the banking organization (excluding any subsidiary of a U.S. branch or a U.S. average of weighted short-term section 2(h)(2) company, if applicable) agency acquired, or formed to hold wholesale funding for the most recent and the total assets of each U.S. branch assets acquired, in the ordinary course quarter or quarters, as applicable. and U.S. agency of the foreign banking of business and for the sole purpose of Bank holding company has the same organization, as reported by the foreign securing or collecting debt previously meaning as in section 2(a) of the Bank banking organization on the FR Y–7Q. contracted in good faith by that branch Holding Company Act (12 U.S.C. Combined U.S. operations means: or agency. 1841(a)) and § 225.2(c) of this chapter. (1) The U.S. branches and agencies of Foreign banking organization has the Banking organization means: the foreign banking organization, if any; same meaning as in § 211.21(o) of this (1) A bank holding company that is a and chapter, provided that if the top-tier (2) The U.S. subsidiaries of the foreign U.S. bank holding company, which foreign banking organization is banking organization (excluding any means a bank holding company that is: incorporated in or organized under the section 2(h)(2) company, if applicable) (i) Incorporated in or organized under laws of any State, the foreign banking and subsidiaries of such U.S. the laws of the United States or in any organization shall not be treated as a subsidiaries. State; and foreign banking organization for (ii) Not a consolidated subsidiary of a Company means a corporation, partnership, limited liability company, purposes of this part. bank holding company that is FR Y–7 means the Annual Report of incorporated in or organized under the depository institution, business trust, special purpose entity, association, or Foreign Banking Organizations laws of the United States or in any State; reporting form. (2) A U.S. intermediate holding similar organization. FR Y–7Q means the Capital and Asset company; or Control has the same meaning as in Report for Foreign Banking (3) A foreign banking organization. section 2(a) of the Bank Holding Board means the Board of Governors Company Act (12 U.S.C. 1841(a)), and Organizations reporting form. of the Federal Reserve System. the terms controlled and controlling FR Y–9C means the Consolidated Category II bank holding company shall be construed consistently with the Financial Statements for Holding means a U.S. bank holding company term control. Companies reporting form. identified as a Category II banking Council means the Financial Stability FR Y–9LP means the Parent Company organization pursuant to § 252.5. Oversight Council established by Only Financial Statements of Large Category II foreign banking section 111 of the Dodd-Frank Act (12 Holding Companies. organization means a foreign banking U.S.C. 5321). FR Y–15 means the Systemic Risk organization identified as a Category II Credit enhancement means a Report. banking organization pursuant to qualified financial contract of the type Global methodology means the § 252.5. set forth in section 210(c)(8)(D)(ii)(XII), assessment methodology and the higher Category II U.S. intermediate holding (iii)(X), (iv)(V), (v)(VI), or (vi)(VI) of loss absorbency requirement for global company means a U.S. intermediate Title II of the Dodd-Frank Wall Street systemically important banks issued by holding company identified as a Reform and Consumer Protection Act the Basel Committee on Banking Category II banking organization (12 U.S.C. 5390(c)(8)(D)(ii)(XII), (iii)(X), Supervision, as updated from time to pursuant to § 252.5. (iv)(V), (v)(VI), or (vi)(VI)) or a credit time. Category III bank holding company enhancement that the Federal Deposit Global systemically important means a U.S. bank holding company Insurance Corporation determines by banking organization means a global identified as a Category III banking regulation is a qualified financial systemically important bank, as such organization pursuant to § 252.5. contract pursuant to section term is defined in the global Category III foreign banking 210(c)(8)(D)(i) of Title II of the act (12 methodology. organization means a foreign banking U.S.C. 5390(c)(8)(D)(i)). Global systemically important BHC organization identified as a Category III Cross-jurisdictional activity. (1) The means a bank holding company banking organization pursuant to cross-jurisdictional activity of a U.S. identified as a global systemically § 252.5. bank holding company is equal to the important BHC pursuant to 12 CFR Category III U.S. intermediate holding sum of its cross-jurisdictional claims 217.402. company means a U.S. intermediate and cross-jurisdictional liabilities, as Global systemically important foreign holding company identified as a reported on the FR Y–15. banking organization means a top-tier Category III banking organization (2) The cross-jurisdictional activity of foreign banking organization that is pursuant to § 252.5. a U.S. intermediate holding company is identified as a global systemically Category IV bank holding company equal to the sum of cross-jurisdictional important foreign banking organization means a U.S. bank holding company claims and cross-jurisdictional under § 252.153(b)(4).

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GAAP means generally accepted (i) Is registered with, or approved by, (ii) The sum of the foreign banking accounting principles as used in the a non-U.S. national securities regulatory organization’s equity investments in United States. authority; and unconsolidated U.S. subsidiaries, Home country, with respect to a (ii) Provides a liquid, two-way market excluding equity investments in any foreign banking organization, means the for the instrument in question, meaning section 2(h)(2) company. country in which the foreign banking that there are enough independent bona U.S. agency has the same meaning as organization is chartered or fide offers to buy and sell so that a sales the term ‘‘agency’’ in § 211.21(b) of this incorporated. price reasonably related to the last sales chapter. Home country resolution authority, price or current bona fide competitive U.S. branch has the same meaning as with respect to a foreign banking bid and offer quotations can be the term ‘‘branch’’ in § 211.21(e) of this organization, means the governmental determined promptly and a trade can be chapter. entity or entities that under the laws of settled at such price within a reasonable U.S. branches and agencies means the the foreign banking organization’s home time period conforming with trade U.S. branches and U.S. agencies of a county has responsibility for the custom. foreign banking organization. resolution of the top-tier foreign banking (3) A company can rely on its U.S. government agency means an organization. determination that a particular non- agency or instrumentality of the United Home-country supervisor, with U.S.-based securities exchange provides States whose obligations are fully and respect to a foreign banking a liquid two-way market unless the explicitly guaranteed as to the timely organization, means the governmental Board determines that the exchange payment of principal and interest by the entity or entities that under the laws of does not provide a liquid two-way full faith and credit of the United States. the foreign banking organization’s home market. U.S. government-sponsored enterprise county has responsibility for the Section 2(h)(2) company has the same means an entity originally established or supervision and regulation of the top- meaning as in section 2(h)(2) of the chartered by the U.S. government to tier foreign banking organization. Bank Holding Company Act (12 U.S.C. serve public purposes specified by the Nonbank financial company 1841(h)(2)). U.S. Congress, but whose obligations are supervised by the Board means a State means any state, not explicitly guaranteed by the full company that the Council has commonwealth, territory, or possession faith and credit of the United States. determined under section 113 of the of the United States, the District of U.S. intermediate holding company Dodd-Frank Act (12 U.S.C. 5323) shall Columbia, the Commonwealth of Puerto means the top-tier U.S. company that is be supervised by the Board and for Rico, the Commonwealth of the required to be established pursuant to which such determination is still in Northern Mariana Islands, American § 252.147 or § 252.153. effect. Samoa, Guam, or the United States U.S. subsidiary means any subsidiary Non-U.S. affiliate means any affiliate Virgin Islands. that is incorporated in or organized of a foreign banking organization that is Subsidiary has the same meaning as under the laws of the United States or incorporated or organized in a country in section 3 of the Federal Deposit in any State, commonwealth, territory, other than the United States. Insurance Act (12 U.S.C. 1813). or possession of the United States, the Off-balance sheet exposure. (1) The Top-tier foreign banking organization, Commonwealth of Puerto Rico, the off-balance sheet exposure of a U.S. with respect to a foreign bank, means Commonwealth of the North Mariana bank holding company or U.S. the top-tier foreign banking organization Islands, the American Samoa, Guam, or intermediate holding company is equal or, alternatively, a subsidiary of the top- the United States Virgin Islands. Weighted short-term wholesale to: tier foreign banking organization funding means the weighted short-term (i) The total exposure of such banking designated by the Board. wholesale funding of a banking organization, as reported by the banking Total consolidated assets. (1) Total organization, as reported on the FR Y– organization on the FR Y–15; minus consolidated assets of a U.S. bank 15. (ii) The total consolidated assets of holding company or a U.S. intermediate ■ 11. In § 252.5, as proposed to be added such banking organization for the same holding company is equal to the total at 83 FR 61408 (November 29, 2018), is calendar quarter. consolidated assets of such banking revised to read as follows: (2) The off-balance sheet exposure of organization, as reported on the FR Y– a foreign banking organization is equal 9C. § 252.5 Categorization of banking to: (2) Total consolidated assets of a organizations. (i) The total exposure of the combined foreign banking organization is equal to (a) General. (1) A U.S. bank holding U.S. operations of the foreign banking the total consolidated assets of the company with average total organization, as reported by such foreign banking organization, as consolidated assets of $100 billion or foreign banking organization on the FR reported on the FR Y–7Q. more must determine its category among Y–15; minus Total nonbank assets. (1) Total the four categories described in (ii) The combined U.S. assets of the nonbank assets of a U.S. bank holding paragraphs (b) through (e) of this section foreign banking organization for the company or U.S. intermediate holding at least quarterly. same calendar quarter. company is equal to the total nonbank (2) A U.S. intermediate holding Publicly traded means an instrument assets of such banking organization, as company with average total that is traded on: reported on the FR Y–9LP. consolidated assets of $100 billion or (1) Any exchange registered with the (2) Total nonbank assets of a foreign more must determine its category among U.S. Securities and Exchange banking organization is equal to: the three categories described in Commission as a national securities (i) The sum of the assets of the foreign paragraphs (c) through (e) of this section exchange under section 6 of the banking organization’s nonbank U.S. at least quarterly. Securities Exchange Act of 1934 (15 subsidiaries, including the total (3) A foreign banking organization U.S.C. 78f); or nonbank assets of any U.S. intermediate with total consolidated assets of $100 (2) Any non-U.S.-based securities holding company, excluding the assets billion or more and average combined exchange that: of any section 2(h)(2) company; plus U.S. assets of $100 billion or more must

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determine its category among the three (2) For a foreign banking organization, (iii) Is not a Category III banking categories described in paragraphs (c) $250 billion or more in average organization; and through (e) of this section at least combined U.S. assets; or (iv) Has: quarterly. (B)(1)(i) For a U.S. bank holding (A) For a U.S. bank holding company (b) Global systemically important company or a U.S. intermediate holding or a U.S. intermediate holding company, BHC. A banking organization is a global company, $100 billion or more in average total consolidated assets of $100 systemically important BHC if it is average total consolidated assets; or billion or more; or identified as a global systemically (ii) For a foreign banking organization, (B) For a foreign banking organization, important BHC pursuant to 12 CFR $100 billion in average combined U.S. average combined U.S. assets of $100 217.402. assets; and billion or more. (c) Category II. (1) A banking (2) At least: (2) After meeting the criteria in organization is a Category II banking (i) $75 billion in average total paragraph (e)(1), a banking organization organization if the banking organization: nonbank assets; continues to be a Category IV banking (i) Has: (ii) $75 billion in average weighted organization until the banking (A)(1) For a U.S. bank holding short-term wholesale funding; or organization: company or a U.S. intermediate holding (iii) $75 billion in average off-balance (i) Has: company, $700 billion or more in sheet exposure; (A) For a U.S. bank holding company average total consolidated assets; (ii) Is not a global systemically or a U.S. intermediate holding company, (2) For a foreign banking organization, important BHC; and less than $100 billion in total $700 billion or more in average (iii) Is not a Category II banking consolidated assets for each of the four combined U.S. assets; or organization. most recent calendar quarters; (B)(1) Has $75 billion or more in (2) After meeting the criteria in (B) For a foreign banking organization, average cross-jurisdictional activity; and paragraph (d)(1) of this section, a less than $100 billion in combined U.S. (2)(i) For a U.S. bank holding banking organization continues to be a assets for each of the four most recent company or a U.S. intermediate holding Category III banking organization until calendar quarters; company, $100 billion or more in the banking organization: (ii) Meets the criteria in paragraph (b) average total consolidated assets; or (i) Has: of this section to be a global (ii) For a foreign banking organization, (A)(1) For a U.S. bank holding systemically important BHC; $100 billion or more in average company or a U.S. intermediate holding (iii) Meets the criteria in paragraph combined U.S. assets; and company, less than $250 billion in total (c)(1) of this section to be a Category II (ii) Is not a global systemically consolidated assets for each of the four banking organization; or important BHC. (iv) Meets the criteria in paragraph most recent calendar quarters; or (2) After meeting the criteria in (d)(1) of this section to be a Category III (2) For a foreign banking organization, paragraph (c)(1) of this section, a banking organization. less than $250 billion in combined U.S. banking organization continues to be a ■ 12. Revise the heading of subpart D to assets for each of the four most recent Category II banking organization until read as follows: calendar quarters; the banking organization: (i) Has: (B) Less than $75 billion in total Subpart D—Enhanced Prudential (A)(1) For a U.S. bank holding nonbank assets for each of the four most Standards for Bank Holding company or a U.S. intermediate holding recent calendar quarters; Companies With Total Consolidated company, less than $700 billion in total (C) Less than $75 billion in weighted Assets of $100 Billion or More consolidated assets for each of the four short-term wholesale funding for each of the four most recent calendar quarters; ■ 13. Section 252.35 is amended by most recent calendar quarters; or adding paragraph (a)(8) to read as (2) For a foreign banking organization, and follows: less than $700 billion in combined U.S. (D) Less than $75 billion in off- balance sheet exposure for each of the (a) * * * assets for each of the four most recent (8) Notice and Response. If the Board calendar quarters; and four most recent calendar quarters; or (ii) Has: determines that a bank holding (B) Less than $75 billion in cross- company must conduct liquidity stress jurisdictional activity for each of the (A) For a U.S. bank holding company or a U.S. intermediate holding company, tests according to a frequency other than four most recent calendar quarters; the frequency provided in paragraphs (ii)(A) For a U.S. bank holding less than $100 billion in total (a)(2)(i) and (ii) of this section, the company or a U.S. intermediate holding consolidated assets for each of the four Board will notify the bank holding company, less than $100 billion in total most recent calendar quarters; or company before the change in frequency consolidated assets for each of the four (B) For a foreign banking organization, takes effect, and describe the basis for most recent calendar quarters; less than $100 billion in combined U.S. (B) For a foreign banking organization, assets for each of the four most recent its determination. Within 14 calendar less than $100 billion in combined U.S. calendar quarters; days of receipt of a notification under assets for each of the four most recent (iii) Meets the criteria in paragraph (b) this paragraph, the bank holding calendar quarters; or of this section to be a global company may request in writing that the (iii) Meets the criteria in paragraph (b) systemically important BHC; or Board reconsider the requirement. The to be a global systemically important (iv) Meets the criteria in paragraph Board will respond in writing to the BHC. (c)(1) of this section to be a Category II company’s request for reconsideration (d) Category III. (1) A banking banking organization. prior to requiring the company conduct organization is a Category III banking (e) Category IV. (1) A banking liquidity stress tests according to a organization if the banking organization: organization is a Category IV banking frequency other than the frequency (i) Has: organization if the banking organization: provided in paragraphs (a)(2)(i) and (ii) (A)(1) For a U.S. bank holding (i) Is not global systemically of this section. company or a U.S. intermediate holding important BHC; * * * * * company, $250 billion or more in (ii) Is not a Category II banking ■ 14. Revise the heading of subpart E to average total consolidated assets; or organization; read as follows:

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Subpart E—Supervisory Stress Test subject to this section pursuant to a rule a covered company must estimate the Requirements for Certain U.S. Banking or order of the Board. following for each scenario required to Organizations With $100 Billion or (2) Ongoing applicability. (i) A bank be used: More in Total Consolidated Assets and holding company (including any * * * * * Nonbank Financial Companies successor company) that is subject to (b) Assumptions regarding capital Supervised by the Board any requirement in this subpart shall actions. In conducting a stress test remain subject to any such requirement under § 252.54, a covered company is ■ 15. Section 252.43 is amended by unless and until the bank holding required to make the following revising paragraph (a)(2) to read as company: assumptions regarding its capital follows: (A) Is not a global systemically actions over the planning horizon: § 252.43 Applicability. important BHC; (B) Is not a Category II bank holding * * * * * (a) * * * company; and (c) * * * (2) Ongoing applicability. A bank (C) Is not a Category III bank holding (1) In general. The senior management holding company or U.S. intermediate company. of a covered company must establish holding company (including any (ii) A U.S. intermediate holding and maintain a system of controls, successor company) that is subject to company (including any successor oversight, and documentation, any requirement in this subpart shall company) that is subject to any including policies and procedures, that remain subject to any such requirement requirement in this subpart shall remain are designed to ensure that its stress unless and until its total consolidated subject to any such requirement unless testing processes are effective in assets fall below $100 billion for each of and until the U.S. intermediate holding meeting the requirements in this four consecutive quarters, as reported company: subpart. These policies and procedures on the FR Y–9C and, effective on the as- (A) Is not a Category II U.S. must, at a minimum, describe the of date of the fourth consecutive FR Y– intermediate holding company; and covered company’s stress testing 9C. (B) Is not a Category III U.S. practices and methodologies, and * * * * * intermediate holding company. processes for validating and updating ■ 16. Section 252.44, as proposed to be * * * * * the company’s stress test practices and amended at 83 FR 61408 (November 29, ■ 18. Section 252.54, as proposed to be methodologies consistent with 2018), is further amended by revising amended at 83 FR 61408 (November 29, applicable laws and regulations. paragraph (c) to read as follows: 2018), is further amended by revising * * * * * ■ 21. Section 252.57 is amended by § 252.44 Analysis conducted by the Board. paragraph (a) to read as follows: revising paragraph (a) to read as follows: * * * * * § 252.54 Stress test. (c) Frequency of analysis conducted (a) Stress test—(1) In general. A § 252.57 Reports of stress test results. by the Board. (1) Except as provided in covered company must conduct a stress (a) Reports to the Board of stress test paragraph (c)(2) of this section, the test as required under this subpart. results. A covered company must report Board will conduct its analysis of a (2) Frequency. (i) Except as provided the results of the stress test required covered company on an annual basis. in paragraph (a)(2)(ii) of this section, a under § 252.54 to the Board in the (2) The Board will conduct its covered company must conduct an manner and form prescribed by the analysis of a Category IV bank holding annual stress test. The stress test must Board. Such results must be submitted company or a Category IV U.S. be conducted by April 5 of each by April 5 of the calendar year in which intermediate holding company on a calendar year based on data as of the stress test is performed pursuant to biennial basis and occurring in each December 31 of the preceding calendar § 252.54, unless that time is extended by year ending in an even number. year, unless the time or the as-of date is the Board in writing. ■ 17. In § 252.53, republish paragraphs extended by the Board in writing. * * * * * (a)(1)(i) through (iii) and as proposed to (ii) A Category III bank holding ■ 22. Section 252.58 is amended by be revised in 83 FR 61408 (November company or a Category III U.S. revising paragraph (a)(1) to read as 29, 2018) further revise paragraphs intermediate holding company must follows: (a)(1)(iv) through (vi) to read as follows: conduct a biennial stress test. The stress test must be conducted by April 5 of § 252.58 Disclosure of stress test results. § 252.53 Applicability. each calendar year ending in an even (a) Public disclosure of results—(1) In (a) Scope—(1) Applicability. Except as number, based on data as of December general. A covered company must provided in paragraph (b) of this 31 of the preceding calendar year, publicly disclose a summary of the section, this subpart applies to any unless the time or the as-of date is results of the stress test required under covered company, which includes: extended by the Board in writing. § 252.54 within the period that is 15 (i) A global systemically important * * * * * calendar days after the Board publicly BHC; discloses the results of its supervisory (ii) Any Category II bank holding § 252.55 [Removed and Reserved] stress test of the covered company company; ■ 19. Section 252.55 is removed and pursuant to § 252.46(c), unless that time (iii) Any Category III bank holding reserved. is extended by the Board in writing. company; ■ 20. Section 252.56 is amended by * * * * * (iv) Any Category II U.S. intermediate revising paragraphs (a) introductory holding company subject to this section text, (b) introductory text, and (c)(1) to Subpart L—[Removed and Reserved] pursuant to § 252.153; read as follows: (v) Any Category III U.S. intermediate ■ 23. Remove and reserve subpart L, holding company subject to this section § 252.56 Methodologies and practices. consisting of §§ 252.120 through pursuant to § 252.153; and (a) Potential impact on capital. In 252.122. (vi) Any nonbank financial company conducting a stress test under § 252.54, ■ 24. Revise the heading for subpart M supervised by the Board that is made for each quarter of the planning horizon, to read as follows.

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Subpart M—Risk Committee organization before it applies any 2(h)(2) company and DPC branch Requirement for Foreign Banking requirement, condition or restriction, subsidiary, if applicable). Organizations With Total Consolidated and describe the basis for imposing such (i) For purposes of this subpart, U.S. Assets of at Least $50 Billion but Less requirement, condition, or restriction. non-branch assets of a foreign banking Than $100 Billion Within 14 calendar days of receipt of a organization are calculated as the notification under this paragraph, the ■ average of the sum of the total 25. In § 252.131, revise paragraphs (a) company may request in writing that the consolidated assets of the top-tier U.S. and (c) to read as follows: Board reconsider the requirement, condition, or restriction. The Board will subsidiaries of the foreign banking § 252.131 Applicability. organization (excluding any section (a) General applicability. A foreign respond in writing to the organization’s request for reconsideration prior to 2(h)(2) company and DPC branch banking organization with total subsidiary) for the four most recent consolidated assets of at least $50 applying the requirement, condition, or restriction. calendar quarters, as reported to the billion but less than $100 billion must Board on the FR Y–7Q, or, if the foreign comply with the risk-committee Subpart N—Enhanced Prudential banking organization has not reported requirements set forth in this subpart Standards for Foreign Banking this information on the FR Y–7Q for beginning on the first day of the ninth Organizations With Total Consolidated each of the four most recent calendar quarter following the date on which its Assets of $100 Billion or More but quarters, the average for the most recent total consolidated assets equal or exceed Combined U.S. Assets of Less Than $50 billion. quarter or consecutive quarters as $100 Billion reported on the FR Y–7Q. * * * * * (c) Cessation of requirements. A ■ 27. Revise the heading of subpart N to (ii) In calculating U.S. non-branch foreign banking organization will read as set forth above. assets, a foreign banking organization remain subject to the risk-committee ■ 28. Revise § 252.140 to read as must reduce its U.S. non-branch assets requirements of this section until the follows: calculated under this paragraph by the earlier of the date on which: § 252.140 Scope. amount corresponding to balances and (1) Its reported total consolidated This subpart applies to foreign transactions between a top-tier U.S. assets on the FR Y–7 are below $50 banking organizations with total subsidiary and any other top-tier U.S. billion for each of four consecutive consolidated assets of $100 billion or subsidiary (excluding any 2(h)(2) calendar quarters; and more, but combined U.S. assets of less company or DPC branch subsidiary) to (2) It becomes subject to the than $100 billion. the extent such items are not already requirements of subpart N or subpart O ■ 29. In § 252.142, revise paragraph (a), eliminated in consolidation. of this part. add paragraph (b)(3), and revise (iii) U.S. non-branch assets are * * * * * paragraph (c) to read as follows: measured on the as-of date of the most ■ 26. In § 252.132 revise the section recent FR Y–7Q used in the calculation heading, paragraph (a) introductory text, § 252.142 Applicability. and paragraph (d) to read as follows: (a) General applicability. A foreign of the average. banking organization with total (c) Cessation of requirements—(1) § 252.132 Risk-committee requirements for consolidated assets of $100 billion or Enhanced prudential standards foreign banking organizations with total consolidated assets of $50 billion or more more and combined U.S. assets of less applicable to the foreign banking but less than $100 billion. than $100 billion must: organization. A foreign banking (1) Comply with the capital stress (a) U.S. risk committee certification. A organization will remain subject to the testing, risk-management and risk foreign banking organization with total requirements set forth in this subpart committee requirements set forth in this consolidated assets of at least $50 until its reported total consolidated subpart beginning no later than on the billion but less than $100 billion, must, assets on the FR Y–7Q are below $100 first day of the ninth quarter the date on on an annual basis, certify to the Board billion for each of four consecutive which its total consolidated assets equal that it maintains a committee of its calendar quarters, or it becomes subject or exceed $100 billion; and to the requirements of subpart O of this global board of directors (or equivalent (2) Comply with the risk-based and part. thereof), on a standalone basis or as part leverage capital requirements and of its enterprise-wide risk committee (or liquidity risk-management requirements (2) Intermediate holding company equivalent thereof) that: set forth in this subpart beginning no requirement. A foreign banking * * * * * later than on the first day of the ninth organization will remain subject to the (d) Noncompliance with this section. quarter following the date on which its U.S. intermediate holding company If a foreign banking organization does total consolidated assets equal or exceed requirement set forth in § 252.147 until not satisfy the requirements of this $250 billion; and the sum of the total consolidated assets section, the Board may impose (3) Comply with the U.S. intermediate of the top-tier U.S. subsidiaries of the requirements, conditions, or restrictions holding company requirement set forth foreign banking organization (excluding relating to the activities or business in § 252.147 beginning no later than on any section 2(h)(2) company and DPC operations of the combined U.S. the first day of the ninth quarter branch subsidiary) is below $50 billion operations of the foreign banking following the date on which its U.S. for each of four consecutive calendar organization. The Board will coordinate non-branch assets equal or exceed $50 quarters, or it becomes subject to the with any relevant State or Federal billion. U.S. intermediate holding company regulator in the implementation of such (b) * * * requirements, conditions, or (3) U.S. non-branch assets. U.S. non- requirements of subpart O of this part. restrictions. If the Board determines to branch assets are equal to the sum of the ■ 30. In § 252.143, revise the section impose one or more requirements, consolidated assets of each top-tier U.S. heading and paragraphs (a)(1) conditions, or restrictions under this subsidiary of the foreign banking introductory text, (b), and (c) to read as paragraph, the Board will notify the organization (excluding any section follows:

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§ 252.143 Risk-based and leverage capital banking organizations with combined (2) Processes and systems for requirements for foreign banking U.S. assets of less than $50 billion—(1) establishing managerial and employee organizations with total consolidated assets U.S. risk committee certification. Each responsibility for risk management of of $250 billion or more but combined U.S. foreign banking organization with the combined U.S. operations; assets of less than $100 billion. combined U.S. assets of less than $50 (3) Processes and systems for ensuring (a) * * * billion must, on an annual basis, certify the independence of the risk- (1) A foreign banking organization to the Board that it maintains a management function of the combined with total consolidated assets of $250 committee of its global board of U.S. operations; and billion or more and combined U.S. directors (or equivalent thereof), on a (4) Processes and systems to integrate assets of less than $100 billion must standalone basis or as part of its risk management and associated certify to the Board that it meets capital enterprise-wide risk committee (or controls with management goals and the adequacy standards on a consolidated equivalent thereof) that: compensation structure of the combined basis established by its home-country (i) Oversees the risk management U.S. operations. supervisor that are consistent with the policies of the combined U.S. operations (iii) Placement of the U.S. risk regulatory capital framework published of the foreign banking organization; and committee. (A) A foreign banking by the Basel Committee on Banking (ii) Includes at least one member organization that conducts its Supervision, as amended from time to having experience in identifying, operations in the United States solely time (Basel Capital Framework). assessing, and managing risk exposures through a U.S. intermediate holding * * * * * of large, complex firms. company must maintain its U.S. risk (b) Reporting. A foreign banking (2) Timing of certification. The committee as a committee of the board organization with total consolidated certification required under paragraph of directors of its U.S. intermediate assets of $250 billion or more and (a) of this section must be filed on an holding company (or equivalent combined U.S. assets of less than $100 annual basis with the Board thereof). billion must provide to the Board concurrently with the FR Y–7. (B) A foreign banking organization reports relating to its compliance with (b) Risk-management and risk that conducts its operations through the capital adequacy measures committee requirements for foreign U.S. branches or U.S. agencies (in described in paragraph (a) of this banking organizations with combined addition to through its U.S. intermediate section concurrently with filing the FR U.S. assets of more than $50 billion but holding company, if any) may maintain Y–7Q. less than $100 billion—(1) U.S. risk its U.S. risk committee either: (c) Noncompliance with the Basel committee—(i) General. Each foreign (1) As a committee of the global board Capital Framework. If a foreign banking banking organization with combined of directors (or equivalent thereof), on a organization does not satisfy the U.S. assets of more than $50 billion but standalone basis or as a joint committee requirements of this section, the Board less than $100 billion must maintain a with its enterprise-wide risk committee may impose requirements, conditions, U.S. risk committee that approves and (or equivalent thereof); or or restrictions, including risk-based or periodically reviews the risk (2) As a committee of the board of leverage capital requirements, relating management policies of the combined directors of its U.S. intermediate to the activities or business operations U.S. operations of the foreign banking holding company (or equivalent of the U.S. operations of the organization and oversees the risk- thereof), on a standalone basis or as a organization. The Board will coordinate management framework of such joint committee with the risk committee with any relevant State or Federal combined U.S. operations. of its U.S. intermediate holding regulator in the implementation of such (ii) Risk-management framework. The company required pursuant to requirements, conditions, or foreign banking organization’s risk- § 252.147(e)(3). restrictions. If the Board determines to management framework for its (iv) Corporate governance impose one or more requirements, combined U.S. operations must be requirements. The U.S. risk committee conditions, or restrictions under this commensurate with the structure, risk must meet at least quarterly and paragraph, the Board will notify the profile, complexity, activities, and size otherwise as needed, and must fully organization before it applies any of its combined U.S. operations and document and maintain records of its requirement, condition or restriction, consistent with its enterprise-wide risk proceedings, including risk- and describe the basis for imposing such management policies. The framework management decisions. requirement, condition, or restriction. must include: (v) Minimum member requirements. (A) Policies and procedures Within 14 calendar days of receipt of a The U.S. risk committee must: establishing risk-management notification under this paragraph, the (A) Include at least one member governance, risk-management organization may request in writing that having experience in identifying, procedures, and risk-control the Board reconsider the requirement, assessing, and managing risk exposures infrastructure for the combined U.S. condition, or restriction. The Board will of large, complex financial firms; and operations of the foreign banking (B) Have at least one member who: respond in writing to the organization’s organization; and (1) Is not an officer or employee of the request for reconsideration prior to (B) Processes and systems for foreign banking organization or its applying the requirement, condition, or implementing and monitoring affiliates and has not been an officer or restriction. compliance with such policies and employee of the foreign banking ■ 31. Revise § 252.144 to read as procedures, including: organization or its affiliates during the follows: (1) Processes and systems for previous three years; and § 252.144 Risk-management and risk identifying and reporting risks and risk- (2) Is not a member of the immediate committee requirements for foreign banking management deficiencies, including family, as defined in § 225.41(b)(3) of organizations with total consolidated assets regarding emerging risks, on a combined the Board’s Regulation Y (12 CFR of $100 billion or more but combined U.S. U.S. operations basis and ensuring 225.41(b)(3)), of a person who is, or has assets of less than $100 billion. effective and timely implementation of been within the last three years, an (a) Risk-management and risk- actions to address emerging risks and executive officer, as defined in committee requirements for foreign risk-management deficiencies; § 215.2(e)(1) of the Board’s Regulation O

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(12 CFR 215.2(e)(1)) of the foreign organization’s combined U.S. operations of the foreign banking banking organization or its affiliates. operations, including risk-management organization. Such liquidity stress test (2) [Reserved] deficiencies and emerging risks, and must be conducted consistently with the (c) U.S. chief risk officer—(1) General. how such risks relate to the global Basel Committee principles for liquidity A foreign banking organization with operations of the foreign banking risk management and must incorporate combined U.S. assets of more than $50 organization; and 30-day, 90-day, and one-year stress-test billion but less than $100 billion or its (v) Meet regularly and as needed with horizons. The ‘‘Basel Committee U.S. intermediate holding company, if the Board to assess compliance with the principles for liquidity risk any, must appoint a U.S. chief risk requirements of this section. management’’ means the document officer with experience in identifying, (d) Responsibilities of the foreign titled ‘‘Principles for Sound Liquidity assessing, and managing risk exposures banking organization. The foreign Risk Management and Supervision’’ of large, complex financial firms. banking organization must take (September 2008) as published by the (2) Responsibilities. (i) The U.S. chief appropriate measures to ensure that its Basel Committee on Banking risk officer is responsible for overseeing: combined U.S. operations implement Supervision, as supplemented and (A) The measurement, aggregation, the risk management policies overseen revised from time to time. and monitoring of risks undertaken by by the U.S. risk committee described in * * * * * the combined U.S. operations; paragraphs (a) or (b) of this section, and ■ 33. In § 252.146, revise the section (B) The implementation of and its combined U.S. operations provide heading and paragraphs (b)(1) ongoing compliance with the policies sufficient information to the U.S. risk introductory text, (b)(2)(i), and (c)(1)(ii) and procedures for the foreign banking committee to enable the U.S. risk and (iii) to read as follows: organization’s combined U.S. operations committee to carry out the set forth in paragraph (b)(1)(ii)(A) of this responsibilities of this subpart. § 252.146 Capital stress testing section and the development and (e) Noncompliance with this section. requirements for foreign banking implementation of processes and If a foreign banking organization does organizations with total consolidated assets systems set forth in paragraph of $100 billion or more but combined U.S. not satisfy the requirements of this assets of less than $100 billion. (b)(1)(ii)(B) of this section; and section, the Board may impose (C) The management of risks and risk requirements, conditions, or restrictions * * * * * controls within the parameters of the relating to the activities or business (b) In general. (1) A foreign banking risk-control framework for the combined operations of the combined U.S. organization with total consolidated U.S. operations, and the monitoring and operations of the foreign banking assets of more than $100 billion and testing of such risk controls. organization. The Board will coordinate combined U.S. assets of less than $100 (ii) The U.S. chief risk officer is with any relevant State or Federal billion must: responsible for reporting risks and risk- regulator in the implementation of such * * * * * management deficiencies of the requirements, conditions, or (2) * * * combined U.S. operations, and resolving restrictions. If the Board determines to (i) A supervisory capital stress test such risk-management deficiencies in a impose one or more requirements, conducted by the foreign banking timely manner. conditions, or restrictions under this organization’s home-country supervisor (3) Corporate governance and paragraph, the Board will notify the or an evaluation and review by the reporting. The U.S. chief risk officer organization before it applies any foreign banking organization’s home- must: requirement, condition, or restriction, country supervisor of an internal capital (i) Receive compensation and other and describe the basis for imposing such adequacy stress test conducted by the incentives consistent with providing an requirement, condition, or restriction. foreign banking organization, according objective assessment of the risks taken Within 14 calendar days of receipt of a to the frequency specified in the by the combined U.S. operations of the notification under this paragraph, the following paragraphs (b)(2)(i)(A) and foreign banking organization; organization may request in writing that (B): (ii) Be employed by and located in the (A) If the foreign banking organization U.S. branch, U.S. agency, U.S. the Board reconsider the requirement, condition, or restriction. The Board will has total consolidated assets of $250 intermediate holding company, if any, billion or more, on at least an annual or another U.S. subsidiary; respond in writing to the organization’s request for reconsideration prior to basis; or (iii) Report directly to the U.S. risk (B) If the foreign banking organization applying the requirement, condition, or committee and the global chief risk has total consolidated assets of less than restriction. officer or equivalent management $250 billion, at least biennially; and ■ 32. In § 252.145, revise the section official (or officials) of the foreign * * * * * banking organization who is responsible heading and paragraph (a) to read as follows: (c) * * * for overseeing, on an enterprise-wide (1) * * * basis, the implementation of and § 252.145 Liquidity risk-management (ii) Conduct a stress test of its U.S. compliance with policies and requirements for foreign banking subsidiaries to determine whether those procedures relating to risk-management organizations with total consolidated assets subsidiaries have the capital necessary governance, practices, and risk controls of $250 billion or more but combined U.S. to absorb losses as a result of adverse of the foreign banking organization, assets of less than $100 billion. economic conditions, according to the unless the Board approves an alternative (a) A foreign banking organization frequency specified in the following reporting structure based on with total consolidated assets of $250 paragraphs (c)(1)(ii)(A) and (B): circumstances specific to the foreign billion or more and combined U.S. (A) If the foreign banking organization banking organization; assets of less than $100 billion must has total consolidated assets of $250 (iv) Regularly provide information to report to the Board on an annual basis billion or more, on at least an annual the U.S. risk committee, global chief risk the results of an internal liquidity stress basis; or officer, and the Board regarding the test for either the consolidated (B) If the foreign banking organization nature of and changes to material risks operations of the foreign banking has total consolidated assets of less than undertaken by the foreign banking organization or the combined U.S. $250 billion, at least biennially; and

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(iii) Report a summary of the results General. Subject to paragraph (c) of this reports the indicators used by the global of the stress test to the Board that section, a foreign banking organization methodology to identify a banking includes a description of the types of that is required to form a U.S. organization as a global systemically risks included in the stress test, a intermediate holding company under important banking organization and, if it description of the conditions or paragraph (a) of this section must hold does, whether the top-tier foreign scenarios used in the stress test, a its entire ownership interest in any U.S. banking organization has determined summary description of the subsidiary (excluding each section that it has the characteristics of a global methodologies used in the stress test, 2(h)(2) company or DPC branch systemically important banking estimates of aggregate losses, pre- subsidiary, if any) through its U.S. organization under the global provision net revenue, total loan loss intermediate holding company. methodology pursuant to paragraph provisions, net income before taxes and (2) Reporting. Each U.S. intermediate (b)(6) of this section. pro forma regulatory capital ratios holding company shall submit (6) Global systemically important required to be computed by the home- information in the manner and form banking organization under the global country supervisor of the foreign prescribed by the Board. methodology. A top-tier foreign banking banking organization and any other (3) Examinations and inspections. organization that controls a U.S. relevant capital ratios, and an The Board may examine or inspect any intermediate holding company and explanation of the most significant U.S. intermediate holding company and prepares or reports for any purpose the causes for any changes in regulatory each of its subsidiaries and prepare a indicator amounts necessary to capital ratios. report of their operations and activities. determine whether the top-tier foreign * * * * * (4) Global systemically important banking organization is a global ■ 34. Add § 252.147 to read as follows: banking organizations. For purposes of systemically important banking this part, a top-tier foreign banking organization under the global § 252.147 U.S. intermediate holding organization with U.S. non-branch methodology must use the data to company requirement for foreign banking assets that equal or exceed $50 billion determine whether the top-tier foreign organizations with combined U.S. assets of banking organization has the less than $100 billion but U.S. non-branch is a global systemically important assets of $50 billion or more. foreign banking organization if any of characteristics of a global systemically important banking organization under (a) Requirement to form a U.S. the following conditions are met: (i) The top-tier foreign banking the global methodology. intermediate holding company. (1) organization determines, pursuant to (c) Alternative organizational Formation. A foreign banking paragraph (b)(6) of this section, that the structure—(1) General. Upon a written organization with U.S. non-branch top-tier foreign banking organization has request by a foreign banking assets of $50 billion or more must the characteristics of a global organization, the Board may permit the establish a U.S. intermediate holding foreign banking organization to establish company, or designate an existing systemically important banking organization under the global or designate multiple U.S. intermediate subsidiary that meets the requirements holding companies; use an alternative of paragraph (a)(2) of this section, as its methodology; or (ii) The Board, using information organizational structure to hold its U.S. intermediate holding company. combined U.S. operations; or not (2) Structure. The U.S. intermediate available to the Board, determines: (A) That the top-tier foreign banking transfer its ownership interests in holding company must be: (i) Organized under the laws of the organization would be a global certain subsidiaries to a U.S. United States, any one of the fifty states systemically important banking intermediate holding company. (2) Factors. In making a determination of the United States, or the District of organization under the global under paragraph (c)(1) of this section, Columbia; and methodology; (ii) Be governed by a board of (B) That the top-tier foreign banking the Board may consider whether directors or managers that is elected or organization, if it were subject to the applicable law would prohibit the appointed by the owners and that Board’s Regulation Q, would be foreign banking organization from operates in an equivalent manner, and identified as a global systemically owning or controlling one or more of its has equivalent rights, powers, important BHC under 12 CFR 217.402 of U.S. subsidiaries through a single U.S. privileges, duties, and responsibilities, the Board’s Regulation Q; or intermediate holding company, or to a board of directors of a company (C) That the U.S. intermediate holding whether circumstances otherwise chartered as a corporation under the company, if it were subject to 12 CFR warrant an exception based on the laws of the United States, any one of the 217.402 of the Board’s Regulation Q, foreign banking organization’s activities, fifty states of the United States, or the would be identified as a global scope of operations, structure, or similar District of Columbia. systemically important BHC. considerations. (3) Notice. Within 30 days of (5) Notice. Each top-tier foreign (3) Request—(i) Contents. A request establishing or designating a U.S. banking organization that controls a submitted under this section must intermediate holding company under U.S. intermediate holding company include an explanation of why the this section, a foreign banking shall submit to the Board by January 1 request should be granted and any other organization must provide to the Board: of each calendar year through the U.S. information required by the Board. (i) A description of the U.S. intermediate holding company: (ii) Timing. The Board shall act on a intermediate holding company, (i) Notice of whether the home- request for an alternative organizational including its name, location, corporate country supervisor (or other appropriate structure within 90 days of receipt of a form, and organizational structure; home country regulatory authority) of complete request, unless the Board (ii) A certification that the U.S. the top-tier foreign banking organization provides notice to the company that it intermediate holding company meets of the U.S. intermediate holding is extending the period for action. the requirements of this section; and company has adopted standards (4) Conditions. The Board may grant (iii) Any other information that the consistent with the global methodology; relief under this section upon such Board determines is appropriate. and conditions as the Board deems (b) Holdings and regulation of the (ii) Notice of whether the top-tier appropriate, including, but not limited U.S. intermediate holding company—(1) foreign banking organization prepares or to, requiring the U.S. operations of the

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foreign banking organization to comply profile, complexity, activities, and size (v) The U.S. intermediate holding with additional enhanced prudential of the U.S. intermediate holding company must take appropriate standards, or requiring the foreign company and consistent with the risk measures to ensure that it implements banking organization to enter into management policies for the combined the risk management policies for the supervisory agreements governing such U.S. operations of the foreign banking U.S. intermediate holding company and alternative organizational structure. organization. The framework must it provides sufficient information to the (d) Modifications. The Board may include: U.S. risk committee to enable the U.S. modify the application of any section of (A) Policies and procedures risk committee to carry out the this subpart to a foreign banking establishing risk-management responsibilities of this subpart; organization that is required to form a governance, risk-management (vi) A U.S. intermediate holding U.S. intermediate holding company or procedures, and risk-control company must comply with risk to such U.S. intermediate holding infrastructure for the U.S. intermediate committee and risk management company if appropriate to accommodate holding company; and requirements beginning on the date that the organizational structure of the (B) Processes and systems for it is required to established under this foreign banking organization or implementing and monitoring subpart or, if the U.S. intermediate characteristics specific to such foreign compliance with such policies and holding company is subject to risk banking organization and such procedures, including: committee and risk management modification is appropriate and (1) Processes and systems for requirements on the date that the consistent with the capital structure, identifying and reporting risks and risk- foreign banking organization becomes size, complexity, risk profile, scope of management deficiencies at the U.S. subject to § 252.147(a)(3), on the date operations, or financial condition of intermediate holding company, that the foreign banking organization each U.S. intermediate holding including regarding emerging risks and becomes subject to this subpart. company, safety and soundness, and the ensuring effective and timely financial stability mandate of section implementation of actions to address Subpart O—Enhanced Prudential 165 of the Dodd-Frank Act. emerging risks and risk-management Standards for Foreign Banking (e) Enhanced prudential standards for deficiencies; Organizations With Total Consolidated U.S. intermediate holding companies— (2) Processes and systems for Assets of $100 Billion or More and (1) Capital requirements for a U.S. establishing managerial and employee Combined U.S. Assets of $100 Billion intermediate holding company. (i)(A) A responsibility for risk management of or More U.S. intermediate holding company the U.S. intermediate holding company; ■ 35. Revise § 252.150 to read as must comply with 12 CFR part 217, (3) Processes and systems for ensuring follows: other than subpart E of 12 CFR part 217, the independence of the risk- in the same manner as a bank holding management function of the U.S. § 252.150 Scope. company. intermediate holding company; and This subpart applies to foreign (B) A U.S. intermediate holding (4) Processes and systems to integrate banking organizations with total company may choose to comply with risk management and associated consolidated assets of $100 billion or subpart E of 12 CFR part 217. controls with management goals and the more and combined U.S. assets of $100 (ii) A U.S. intermediate holding compensation structure of the U.S. billion or more. company must comply with capital intermediate holding company. ■ 36. Revise § 252.152 to read as adequacy standards beginning on the (iii) Corporate governance follows: date it is required to established under requirements. The risk committee of the this subpart, or if the U.S. intermediate U.S. intermediate holding company § 252.152 Applicability. holding company is subject to capital must meet at least quarterly and (a) General applicability. (1) A foreign adequacy standards on the date that the otherwise as needed, and must fully banking organization must: foreign banking organization becomes document and maintain records of its (i) Comply with the requirements of subject to § 252.142(a)(3), on the date proceedings, including risk- this subpart (other than the U.S. that the foreign banking organization management decisions. intermediate holding company becomes subject to this subpart. (iv) Minimum member requirements. requirement set forth in § 252.153) (2) Risk-management and risk The risk committee must: beginning on the first day of the ninth committee requirements—(i) General. A (A) Include at least one member quarter following the date on which its U.S. intermediate holding company having experience in identifying, combined U.S. assets equal or exceed must establish and maintain a risk assessing, and managing risk exposures $100 billion; and committee that approves and of large, complex financial firms; and (ii) Comply with the requirement to periodically reviews the risk (B) Have at least one member who: establish or designate a U.S. management policies and oversees the (1) Is not an officer or employee of the intermediate holding company risk-management framework of the U.S. foreign banking organization or its requirement set forth in § 252.153(a) intermediate holding company. The risk affiliates and has not been an officer or beginning on the first day of the ninth committee must be a committee of the employee of the foreign banking quarter following the date on which its board of directors of the U.S. organization or its affiliates during the U.S. non-branch assets equal or exceed intermediate holding company (or previous three years; and $50 billion or, if the foreign banking equivalent thereof). The risk committee (2) Is not a member of the immediate organization has established or may also serve as the U.S. risk family, as defined in § 225.41(b)(3) of designated a U.S. intermediate holding committee for the combined U.S. the Board’s Regulation Y (12 CFR company pursuant to § 252.147, operations required pursuant to 225.41(b)(3)), of a person who is, or has beginning on the first day following the § 252.144(b). been within the last three years, an date on which the foreign banking (ii) Risk-management framework. The executive officer, as defined in organization’s combined U.S. assets U.S. intermediate holding company’s § 215.2(e)(1) of the Board’s Regulation O equal or exceed $100 billion. risk-management framework must be (12 CFR 215.2(e)(1)) of the foreign (2) Changes in requirements following commensurate with the structure, risk banking organization or its affiliates. a change in category. A foreign banking

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organization that changes from one the extent such items are not already organization is subject to subpart N of category of banking organization eliminated in consolidation. this part and is in compliance with the described in § 252.5(c) through (e) to (iii) U.S. non-branch assets are U.S. intermediate holding company another of such categories must comply measured on the as-of date of the most requirements as set forth in § 252.147. with the requirements applicable to the recent FR Y–7Q used in the calculation ■ 37. In § 252.153, revise paragraphs new category under this subpart no later of the average. (a)(1) and (3) and (c) through (e) to read than on the first day of the second (3) Total consolidated assets. (i) Total as follows: quarter following the change in the consolidated assets of a foreign banking foreign banking organization’s category. organization are equal to the § 252.153 U.S. intermediate holding (b) Asset measures—(1) Combined consolidated assets of the foreign company requirement for foreign banking banking organization. For purposes of organizations with U.S. non-branch assets U.S. assets. Combined U.S. assets of a of $50 billion or more. foreign banking organization are equal this subpart, ‘‘total consolidated assets’’ to the sum of the consolidated assets of are calculated as the average of the (a) * * * (1) A foreign banking organization each top-tier U.S. subsidiary of the foreign banking organization’s total with U.S. non-branch assets of $50 foreign banking organization (excluding assets for the four most recent calendar billion or more must establish a U.S. any section 2(h)(2) company, if quarters as reported by the foreign intermediate holding company, or applicable) and the total assets of each banking organization on the FR Y–7Q. If designate an existing subsidiary that U.S. branch and U.S. agency of the the foreign banking organization has not meets the requirements of paragraph foreign banking organization. For filed the FR Y–7Q for the four most (a)(2) of this section, as its U.S. purposes of this subpart, ‘‘combined recent calendar quarters, the Board shall U.S. assets’’ are calculated as the use an average of the foreign banking intermediate holding company. average of the total combined assets of organization’s total consolidated assets * * * * * U.S. operations for the four most recent reported on its most recent two FR Y– (3) Notice. Within 30 days of consecutive quarters as reported by the 7Qs. Total consolidated assets are establishing or designating a U.S. foreign banking organization on the FR measured on the as-of date of the most intermediate holding company under Y–7Q, or, if the foreign banking recent FR Y–7Q used in the calculation this section, a foreign banking organization has not reported this of the average. organization must provide to the Board: information on the FR Y–7Q for each of (ii) Total consolidated assets of a U.S. (i) A description of the U.S. the four most recent consecutive intermediate holding company purposes intermediate holding company, quarters, the average of the combined of this subpart are equal to its including its name, location, corporate U.S. assets for the most recent quarter or consolidated assets, calculated based on form, and organizational structure; consecutive quarters as reported on the the average of the holding company’s (ii) A certification that the U.S. FR Y–7Q. Combined U.S. assets are total consolidated assets in the four intermediate holding company meets measured on the as-of date of the most most recent quarters as reported the requirements of this section; and recent FR Y–7Q used in the calculation quarterly on the FR Y–9C. If the holding (iii) Any other information that the of the average. company has not filed the FR Y–9C for Board determines is appropriate. (2) U.S. non-branch assets. U.S. non- each of the four most recent calendar * * * * * branch assets are equal to the sum of the quarters, total consolidated assets means (c) Alternative organizational consolidated assets of each top-tier U.S. the average of its total consolidated structure—(1) General. Upon a written subsidiary of the foreign banking assets, as reported on the FR Y–9C, for request by a foreign banking organization (excluding any section the most recent quarter or quarters, as organization, the Board may permit the 2(h)(2) company and DPC branch applicable. Total consolidated assets are foreign banking organization to establish subsidiary, if applicable). measured on the as-of date of the most or designate multiple U.S. intermediate (i) For purposes of this subpart, U.S. recent FR Y–9C used in the calculation holding companies; use an alternative non-branch assets of a foreign banking of the average to its total consolidated organizational structure to hold its organization are calculated as the assets, as reported on the FR Y–9C; combined U.S. operations; or not average of the sum of the total (c) Cessation of requirements—(1) transfer its ownership interests in consolidated assets of the top-tier U.S. Enhanced prudential standards certain subsidiaries to a U.S. subsidiaries of the foreign banking applicable to the foreign banking intermediate holding company. organization (excluding any section organization. Subject to paragraph (c)(2) (2) Factors. In making a determination 2(h)(2) company and DPC branch of this section, a foreign banking under paragraph (c)(1) of this section, subsidiary) for the four most recent organization will remain subject to the the Board may consider whether consecutive quarters, as reported to the applicable requirements of this subpart applicable law would prohibit the Board on the FR Y–7Q, or, if the foreign until its reported combined U.S. assets foreign banking organization from banking organization has not reported on the FR Y–7Q are below $100 billion owning or controlling one or more of its this information on the FR Y–7Q for for each of four consecutive calendar U.S. subsidiaries through a single U.S. each of the four most recent consecutive quarters. intermediate holding company, or quarters, the average for the most recent (2) Intermediate holding company whether circumstances otherwise quarter or consecutive quarters as requirement. A foreign banking warrant an exception based on the reported on the FR Y–7Q. organization will remain subject to the foreign banking organization’s activities, (ii) In calculating U.S. non-branch U.S. intermediate holding company scope of operations, structure, or similar assets, a foreign banking organization requirement set forth in § 252.153 until considerations. must reduce its U.S. non-branch assets the sum of the total consolidated assets (3) Request—(i) Contents. A request calculated under this paragraph by the of the top-tier U.S. subsidiaries of the submitted under this section must amount corresponding to balances and foreign banking organization (excluding include an explanation of why the transactions between a top-tier U.S. any section 2(h)(2) company and DPC request should be granted and any other subsidiary and any other top-tier U.S. branch subsidiary) is below $50 billion information required by the Board. subsidiary (excluding any 2(h)(2) for each of four consecutive calendar (ii) Timing. The Board shall act on a company or DPC branch subsidiary) to quarters, or until the foreign banking request for an alternative organizational

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structure within 90 days of receipt of a total consolidated assets of $100 billion compensation structure of the U.S. complete request, unless the Board or more must comply with 12 CFR 225.8 intermediate holding company. provides notice to the company that it in the same manner as a bank holding (iii) Corporate governance is extending the period for action. company. requirements. The risk committee of the (4) Conditions. (i) The Board may (ii) A U.S. intermediate holding U.S. intermediate holding company grant relief under this section upon such company with total consolidated assets must meet at least quarterly and conditions as the Board deems of $100 billion or more must comply otherwise as needed, and must fully appropriate, including, but not limited with 12 CFR 225.8 in accordance with document and maintain records of its to, requiring the U.S. operations of the the transition provisions of 12 CFR proceedings, including risk- foreign banking organization to comply 225.8 of Regulation Y. management decisions. with additional enhanced prudential (3) Risk-management and risk (iv) Minimum member requirements. standards, or requiring the foreign committee requirements—(i) General. A The risk committee must: banking organization to enter into U.S. intermediate holding company (A) Include at least one member supervisory agreements governing such must establish and maintain a risk having experience in identifying, alternative organizational structure. committee that approves and assessing, and managing risk exposures (ii) If the Board permits a foreign periodically reviews the risk of large, complex financial firms; and banking organization to form two or management policies and oversees the (B) Have at least one member who: more U.S. intermediate holding risk-management framework of the U.S. (1) Is not an officer or employee of the companies under this section, each U.S. intermediate holding company. The risk foreign banking organization or its intermediate holding company must committee must be a committee of the affiliates and has not been an officer or determine its category pursuant to board of directors of the U.S. employee of the foreign banking section 252.5 of this part as though the intermediate holding company (or organization or its affiliates during the U.S. intermediate holding companies equivalent thereof). The risk committee previous three years; and (2) Is not a member of the immediate were a consolidated company. may also serve as the U.S. risk (d) Modifications. The Board may family, as defined in § 225.41(b)(3) of committee for the combined U.S. modify the application of any section of the Board’s Regulation Y (12 CFR operations required pursuant to this subpart to a foreign banking 225.41(b)(3)), of a person who is, or has § 252.155(a). organization that is required to form a been within the last three years, an (ii) Risk-management framework. The U.S. intermediate holding company or executive officer, as defined in U.S. intermediate holding company’s to such U.S. intermediate holding § 215.2(e)(1) of the Board’s Regulation O risk-management framework must be company if appropriate to accommodate (12 CFR 215.2(e)(1)) of the foreign commensurate with the structure, risk the organizational structure of the banking organization or its affiliates. foreign banking organization or profile, complexity, activities, and size (v) The U.S. intermediate holding characteristics specific to such foreign of the U.S. intermediate holding company must take appropriate banking organization and such company and consistent with the risk measures to ensure that it implements modification is appropriate and management policies for the combined the risk management policies for the consistent with the capital structure, U.S. operations of the foreign banking U.S. intermediate holding company and size, complexity, risk profile, scope of organization. The framework must it provides sufficient information to the operations, or financial condition of include: U.S. risk committee to enable the U.S. each U.S. intermediate holding (A) Policies and procedures risk committee to carry out the company, safety and soundness, and the establishing risk-management responsibilities of this subpart. financial stability mandate of section governance, risk-management (vi) A U.S. intermediate holding 165 of the Dodd-Frank Act. procedures, and risk-control company must comply with risk (e) Enhanced prudential standards for infrastructure for the U.S. intermediate committee and risk management U.S. intermediate holding companies— holding company; and requirements beginning on the date that (1) Capital requirements for a U.S. (B) Processes and systems for it is required to established under this intermediate holding company. (i)(A) A implementing and monitoring subpart or, if the U.S. intermediate U.S. intermediate holding company compliance with such policies and holding company is subject to risk must comply with 12 CFR part 217, procedures, including: committee and risk management other than subpart E of 12 CFR part 217, (1) Processes and systems for requirements on the date that the in the same manner as a bank holding identifying and reporting risks and risk- foreign banking organization becomes company. management deficiencies at the U.S. subject to § 252.153(a)(1)(ii), on the date (B) A U.S. intermediate holding intermediate holding company, that the foreign banking organization company may choose to comply with including regarding emerging risks and becomes subject to this subpart. subpart E of 12 CFR part 217. ensuring effective and timely (4) Liquidity requirements. (i) A U.S. (ii) A U.S. intermediate holding implementation of actions to address intermediate holding company must company must comply with capital emerging risks and risk-management comply with the liquidity risk- adequacy standards beginning on the deficiencies; management requirements in § 252.156 date that it is required to established (2) Processes and systems for and conduct liquidity stress tests and under this subpart or, if the U.S. establishing managerial and employee hold a liquidity buffer pursuant to intermediate holding company is responsibility for risk management of § 252.157. subject to capital adequacy standards on the U.S. intermediate holding company; (ii) A U.S. intermediate holding the date that the foreign banking (3) Processes and systems for ensuring company must comply with liquidity organization becomes subject to section the independence of the risk- risk-management, liquidity stress test, 252.153(a)(1)(ii), on the date that the management function of the U.S. and liquidity buffer requirements foreign banking organization becomes intermediate holding company; and beginning on the date that it is required subject to this subpart. (4) Processes and systems to integrate to established under this subpart. (2) Capital planning. (i) A U.S. risk management and associated (5) Stress test requirements. (i)(A) A intermediate holding company with controls with management goals and the U.S. intermediate holding company

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with total consolidated assets of $100 with any relevant State or Federal of its U.S. intermediate holding billion or more must comply with the regulator in the implementation of such company required pursuant to requirements of subpart E of this part in requirements, conditions, or § 252.153(e)(3). the same manner as a bank holding restrictions. If the Board determines to * * * * * company; impose one or more requirements, (b) * * * (B) A U.S. intermediate holding conditions, or restrictions under this (1) General. A foreign banking company must comply with the paragraph, the Board will notify the organization with combined U.S. assets requirements of subpart E beginning the organization before it applies any of $100 billion or more or its U.S. later of: requirement, condition or restriction, intermediate holding company, if any, (1) The stress test cycle of the and describe the basis for imposing such must appoint a U.S. chief risk officer calendar year after the calendar year in requirement, condition, or restriction. with experience in identifying, which it becomes subject to regulatory Within 14 calendar days of receipt of a assessing, and managing risk exposures capital requirements; or notification under this paragraph, the of large, complex financial firms. (2) In accordance with the transition company may request in writing that the * * * * * provisions of subpart E. Board reconsider the requirement, ■ 40. In § 252.156, revise the section (ii)(A) A Category II U.S. intermediate condition, or restriction. The Board will heading and paragraphs (a)(1), (b)(1) and holding company and a Category III U.S. respond in writing to the organizations (2), (b)(3)(i), (b)(4) through (6), (c)(1), intermediate holding company must request for reconsideration prior to (c)(2)(ii), (d)(1), (e)(1), (e)(2)(i)(A) and comply with the requirements of applying the requirement, condition, or (C), (e)(2)(ii)(A), (f), (g) introductory text, subpart F of this part in the same restriction. (g)(1) introductory text, (g)(1)(i), (g)(3) manner as a bank holding company; ■ 39. In § 252.155 revise the section introductory text, (g)(3)(i), (ii) and (iv), (B) A U.S. intermediate holding heading and paragraphs (a)(1) and (3) and republish (g)(3)(v) to read as company must comply with the and (b)(1) to read as follows: follows: requirements of subpart F beginning the later of: § 252.155 Risk-management and risk- § 252.156 Liquidity risk-management (1) The stress test cycle of the committee requirements for foreign banking requirements for foreign banking calendar year after the calendar year in organizations with combined U.S. assets of organizations with combined U.S. assets of $100 billion or more. $100 billion or more. which it becomes subject to regulatory capital requirements; or (a) * * * (a) * * * (2) In accordance with the transition (1) General. Each foreign banking (1) The U.S. risk committee provisions of subpart F. organization with combined U.S. assets established by a foreign banking ■ 38. In § 252.154 revise the section of $100 billion or more must maintain organization pursuant to § 252.155(a) (or heading and paragraphs (a)(1), (b), and a U.S. risk committee that approves and a designated subcommittee of such (c) to read as follows: periodically reviews the risk committee composed of members of the management policies of the combined board of directors (or equivalent § 252.154 Risk-based and leverage capital U.S. operations of the foreign banking thereof)) of the U.S. intermediate requirements for foreign banking organization and oversees the risk- holding company or the foreign banking organizations with combined U.S. assets of management framework of such organization, as appropriate must: $100 billion or more. combined U.S. operations. The U.S. risk * * * * * (a) * * * committee’s responsibilities include the (b) * * * (1) A foreign banking organization liquidity risk-management (1) Liquidity risk. The U.S. chief risk with combined U.S. assets of $100 responsibilities set forth in § 252.156(a). officer of a foreign banking organization billion or more must certify to the Board * * * * * with combined U.S. assets of $100 that it meets capital adequacy standards (3) Placement of the U.S. risk billion or more must review the on a consolidated basis established by committee. (i) A foreign banking strategies and policies and procedures its home-country supervisor that are organization that conducts its established by senior management of the consistent with the regulatory capital operations in the United States solely U.S. operations for managing the risk framework published by the Basel through a U.S. intermediate holding that the financial condition or safety Committee on Banking Supervision, as company must maintain its U.S. risk and soundness of the foreign banking amended from time to time (Basel committee as a committee of the board organization’s combined U.S. operations Capital Framework). of directors of its U.S. intermediate would be adversely affected by its * * * * * holding company (or equivalent inability or the market’s perception of (b) Reporting. A foreign banking thereof). its inability to meet its cash and organization with combined U.S. assets (ii) A foreign banking organization collateral obligations (liquidity risk). of $100 billion or more must provide to that conducts its operations through (2) Liquidity risk tolerance. The U.S. the Board reports relating to its U.S. branches or U.S. agencies (in chief risk officer of a foreign banking compliance with the capital adequacy addition to through its U.S. intermediate organization with combined U.S. assets measures described in paragraph (a) of holding company, if any) may maintain of $100 billion or more must review this section concurrently with filing the its U.S. risk committee either: information provided by the senior FR Y–7Q. (A) As a committee of the global board management of the U.S. operations to (c) Noncompliance with the Basel of directors (or equivalent thereof), on a determine whether the combined U.S. Capital Framework. If a foreign banking standalone basis or as a joint committee operations are operating in accordance organization does not satisfy the with its enterprise-wide risk committee with the established liquidity risk requirements of this section, the Board (or equivalent thereof); or tolerance. The U.S. chief risk officer may impose requirements, conditions, (B) As a committee of the board of must regularly, and, at least semi- or restrictions relating to the activities directors of its U.S. intermediate annually, report to the foreign banking or business operations of the U.S. holding company (or equivalent organization’s U.S. risk committee and operations of the foreign banking thereof), on a standalone basis or as a enterprise-wide risk committee, or the organization. The Board will coordinate joint committee with the risk committee equivalent thereof (if any) (or a

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designated subcommittee of such (6) Liquidity stress testing. The U.S. contingency funding plan for its committee composed of members of the chief risk officer of a foreign banking combined U.S. operations at least relevant board of directors (or organization with combined U.S. assets annually, and when changes to market equivalent thereof)) on the liquidity risk of $100 billion or more must: and idiosyncratic conditions warrant. profile of the foreign banking (i) Approve the liquidity stress testing (2) * * * organization’s combined U.S. operations practices, methodologies, and (i) * * * and whether it is operating in assumptions required in § 252.157(a) at (A) Identify liquidity stress events accordance with the established least quarterly, and whenever the that could have a significant impact on liquidity risk tolerance for the U.S. foreign banking organization materially the liquidity of the foreign banking operations, and must establish revises its liquidity stress testing organization or its combined U.S. procedures governing the content of practices, methodologies or operations; such reports. assumptions; * * * * * (3) * * * (ii) Review the liquidity stress testing (C) Identify the circumstances in (i) The U.S. chief risk officer of a results produced under § 252.157(a) of which the foreign banking organization foreign banking organization with this subpart at least quarterly; and would implement its action plan combined U.S. assets of $100 billion or (iii) Approve the size and described in paragraph (e)(2)(ii)(A) of more must approve new products and composition of the liquidity buffer this section, which circumstances must business lines and evaluate the liquidity established under § 252.157(c) of this include failure to meet any minimum costs, benefits, and risks of each new subpart at least quarterly. liquidity requirement imposed by the business line and each new product (c) * * * Board on the foreign banking offered, managed or sold through the (1) A foreign banking organization organization’s combined U.S. foreign banking organization’s with combined U.S. assets of $100 operations; combined U.S. operations that could billion or more must establish and * * * * * have a significant effect on the liquidity maintain a review function that is (ii) * * * risk profile of the U.S. operations of the independent of the management (A) Include an action plan that clearly foreign banking organization. The functions that execute funding for its describes the strategies that the foreign approval is required before the foreign combined U.S. operations to evaluate banking organization will use to banking organization implements the the liquidity risk management for its respond to liquidity shortfalls in its business line or offers the product combined U.S. operations. combined U.S. operations for identified through its combined U.S. operations. In (2) * * * liquidity stress events, including the determining whether to approve the (ii) Assess whether the foreign methods that the organization or the new business line or product, the U.S. banking organization’s liquidity risk combined U.S. operations will use to chief risk officer must consider whether management function of its combined access alternative funding sources; U.S. operations complies with the liquidity risk of the new business * * * * * applicable laws and regulations, and line or product (under both current and (f) Liquidity risk limits—(1) Liquidity sound business practices; and stressed conditions) is within the risk limits for Category II and III foreign foreign banking organization’s * * * * * banking organizations. A Category II established liquidity risk tolerance for (d) * * * foreign banking organization or Category its combined U.S. operations. (1) A foreign banking organization III foreign banking organization must * * * * * with combined U.S. assets of $100 monitor sources of liquidity risk and (4) Cash-flow projections. The U.S. billion or more must produce establish limits on liquidity risk, chief risk officer of a foreign banking comprehensive cash-flow projections for including limits on: organization with combined U.S. assets its combined U.S. operations that (A) Concentrations in sources of of $100 billion or more must review the project cash flows arising from assets, funding by instrument type, single cash-flow projections produced under liabilities, and off-balance sheet counterparty, counterparty type, paragraph (d) of this section at least exposures over, at a minimum, short- secured and unsecured funding, and as quarterly (or more often, if changes in and long-term time horizons. The applicable, other forms of liquidity risk; market conditions or the liquidity foreign banking organization must (B) The amount of liabilities that position, risk profile, or financial update short-term cash-flow projections mature within various time horizons; condition of the foreign banking daily and must update longer-term cash- and organization or the U.S. operations flow projections at least monthly. (C) Off-balance sheet exposures and warrant) to ensure that the liquidity risk * * * * * other exposures that could create of the foreign banking organization’s (e) * * * funding needs during liquidity stress combined U.S. operations is within the (1) A foreign banking organization events. established liquidity risk tolerance. with combined U.S. assets of $100 (ii) Each limit established pursuant to (5) Liquidity risk limits. The U.S. chief billion or more must establish and paragraph (g)(1) of this section must be risk officer of a foreign banking maintain a contingency funding plan for consistent with the company’s organization with combined U.S. assets its combined U.S. operations that sets established liquidity risk tolerance and of $100 billion or more must establish out the foreign banking organization’s must reflect the organization’s capital liquidity risk limits as set forth in strategies for addressing liquidity needs structure, risk profile, complexity, paragraph (f) of this section and review during liquidity stress events. The activities, and size. the foreign banking organization’s contingency funding plan must be (2) Liquidity risk limits for Category IV compliance with those limits at least commensurate with the capital foreign banking organizations. A quarterly (or more often, if changes in structure, risk profile, complexity, Category IV foreign banking market conditions or the liquidity activities, size, and the established organization must monitor sources of position, risk profile, or financial liquidity risk tolerance for the combined liquidity risk and establish limits on condition of the U.S. operations of the U.S. operations. The foreign banking liquidity risk that are consistent with foreign banking organization warrant). organization must update the the organization’s established liquidity

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risk tolerance and that reflect the ■ b. Adding paragraph (a)(8); and (i) Stress test function. A foreign organization’s capital structure, risk ■ c. Revising paragraphs (b) and (c)(1). banking organization with combined profile, complexity, activities, and size. The revisions and addition read as U.S. assets of $100 billion or more, (g) Collateral, legal entity, and follows: within its combined U.S. operations and intraday liquidity risk monitoring. A its enterprise-wide risk management, foreign banking organization with § 252.157 Liquidity stress testing and buffer requirements for foreign banking must establish and maintain policies combined U.S. assets of $100 billion or organizations with combined U.S. assets of and procedures governing its liquidity more must establish and maintain $100 billion or more. stress testing practices, methodologies, procedures for monitoring liquidity risk (a) * * * and assumptions that provide for the as set forth in this paragraph. (1) * * * incorporation of the results of liquidity (1) Collateral. The foreign banking (i) A foreign banking organization stress tests in future stress testing and organization must establish and with combined U.S. assets of $100 for the enhancement of stress testing maintain policies and procedures to billion or more must conduct stress tests practices over time. monitor assets that have been or are to separately assess the potential impact (ii) Controls and oversight. The available to be pledged as collateral in of liquidity stress scenarios on the cash foreign banking organization must connection with transactions to which flows, liquidity position, profitability, establish and maintain a system of entities in its U.S. operations are and solvency of: controls and oversight that is designed counterparties. These policies and to ensure that its liquidity stress testing procedures must provide that the * * * * * (ii) Each liquidity stress test required processes are effective in meeting the foreign banking organization: requirements of this section. The (i) Calculates all of the collateral under this paragraph (a)(1) must use the stress scenarios described in paragraph controls and oversight must ensure that positions for its combined U.S. each liquidity stress test appropriately operations according to the frequency (a)(3) of this section and take into account the current liquidity condition, incorporates conservative assumptions specified in paragraphs (g)(1)(i)(A) and with respect to the stress scenario in (B) or as directed by the Board, risks, exposures, strategies, and activities of the combined U.S. paragraph (a)(3) of this section and other specifying the value of pledged assets elements of the stress-test process, relative to the amount of security operations. (iii) The liquidity stress tests required taking into consideration the capital required under the relevant contracts structure, risk profile, complexity, and the value of unencumbered assets under this paragraph (a)(1) must take into consideration the balance sheet activities, size, and other relevant available to be pledged: factors of the combined U.S. operations. (A) If the foreign banking organization exposures, off-balance sheet exposures, These assumptions must be approved by is not a Category IV foreign banking size, risk profile, complexity, business U.S. chief risk officer and subject to organization, on a weekly basis; or lines, organizational structure and other (B) If the foreign banking organization characteristics of the foreign banking independent review consistent with the is a Category IV foreign banking organization and its combined U.S. standards set out in § 252.156(c). organization, on a monthly basis; operations that affect the liquidity risk * * * * * * * * * * profile of the combined U.S. operations. (8) Notice and response. If the Board (3) Intraday exposure. The foreign (iv) In conducting a liquidity stress determines that a foreign banking banking organization must establish and test using the scenarios described in organization must conduct liquidity maintain procedures for monitoring paragraphs (a)(3)(i) and (iii) of this stress tests according to a frequency intraday liquidity risk exposure for its section, the foreign banking other than the frequency provided in combined U.S. operations that are organization must address the potential paragraphs (a)(2)(i) and (ii) of this consistent with the capital structure, direct adverse impact of associated section, the Board will notify the foreign risk profile, complexity, activities, and market disruptions on the foreign banking organization before the change size of the foreign banking organization banking organization’s combined U.S. in frequency takes effect, and describe and its combined U.S. operations. If the operations and the related indirect effect the basis for its determination. Within foreign banking organization is a such impact could have on the 14 calendar days of receipt of a Category II foreign banking organization combined U.S. operations of the foreign notification under this paragraph, the or a Category III foreign banking banking organization and incorporate foreign banking organization may organization these procedures must the potential actions of other market request in writing that the Board address how the management of the participants experiencing liquidity reconsider the requirement. The Board combined U.S. operations will: stresses under the market disruptions will respond in writing to the (i) Monitor and measure expected that would adversely affect the foreign organization’s request for gross daily inflows and outflows; banking organization or its combined reconsideration prior to requiring the (ii) Manage and transfer collateral to U.S. operations. foreign banking organization to conduct obtain intraday credit; (2) Frequency. The foreign banking liquidity stress tests according to a * * * * * organization must perform the liquidity frequency other than the frequency (iv) Manage the issuance of credit to stress tests required under paragraph provided in paragraphs (a)(2)(i) and (ii) customers where necessary; and (a)(1) according to the frequency of this section. (v) Consider the amounts of collateral specified in paragraphs (a)(2)(i) and (ii) (b) Reporting of liquidity stress tests and liquidity needed to meet payment or as directed by the Board: required by home-country regulators. A systems obligations when assessing the (i) If the foreign banking organization foreign banking organization with overall liquidity needs of the combined is not a Category IV foreign banking combined U.S. assets of $100 billion or U.S. operations. organization, at least monthly; or more must make available to the Board, ■ 41. Amend § 252.157 by: (ii) If the foreign banking organization in a timely manner, the results of any ■ a. Revising the section heading and is a Category IV foreign banking liquidity internal stress tests and paragraphs (a)(1)(i) introductory text, organization, at least quarterly. establishment of liquidity buffers (a)(1)(ii) through (iv), (a)(2), and (a)(7)(i) * * * * * required by regulators in its home and (ii); (7) * * * jurisdiction. The report required under

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this paragraph must include the results net due from position. If, on a net basis, requirements of this subpart, including of its liquidity stress test and liquidity the U.S. branches and agencies of a but not limited to § 252.172, beginning buffer, if required by the laws or foreign banking organization with on January 1, 2020, unless that time is regulations implemented in the home combined U.S. assets of $100 billion or extended by the Board in writing. jurisdiction, or expected under more provide funding to the foreign (iii) A foreign banking organization supervisory guidance. banking organization’s non-U.S. offices that becomes a covered foreign entity (c) * * * and non-U.S. affiliates, calculated as the subject to this subpart after October 5, (1) General. A foreign banking average daily position over a stress test 2018, must comply with the organization with combined U.S. assets cycle for a given year, the foreign requirements of this subpart beginning of $100 billion or more must maintain banking organization must report the on the first day of the ninth calendar a liquidity buffer for its U.S. following information to the Board by quarter after it becomes a covered intermediate holding company, if any, January 5 of each calendar year, unless foreign entity, unless that time is calculated in accordance with paragraph such date is extended by the Board: accelerated or extended by the Board in (c)(2) of this section, and a separate * * * * * writing. liquidity buffer for its U.S. branches and (2) U.S. intermediate holding agencies, if any, calculated in Subpart Q—Single-Counterparty Credit companies. (i) A U.S. intermediate accordance with paragraph (c)(3) of this Limits holding company that is a covered section. foreign entity as of October 5, 2018, ■ 43. Revise § 252.170 to read as must comply with the requirements of * * * * * follows: ■ 42. In § 252.158, revise the section this subpart, including but not limited heading and paragraphs (b)(1) § 252.170 Applicability and general to § 252.172, beginning on July 1, 2020, introductory text, (b)(2)(i), (c)(1) provisions. unless that time is extended by the introductory text and (c)(2) introductory (a) In general. (1) This subpart Board in writing. text to read as follows: establishes single counterparty credit (ii) [Reserved] limits for a covered foreign entity. (iii) A U.S. intermediate holding § 252.158 Capital stress testing (2) For purposes of this subpart: company that becomes a covered foreign requirements for foreign banking entity subject to this subpart after organizations with combined U.S. assets of (i) Covered foreign entity means: $100 billion or more. (A) A Category II foreign banking October 5, 2018, must comply with the organization; requirements of this subpart beginning * * * * * on the first day of the ninth calendar (b) * * * (B) A Category III foreign banking organization; quarter after it becomes a covered (1) A foreign banking organization foreign entity, unless that time is with combined U.S. assets of $100 (C) A foreign banking organization with total consolidated assets that equal accelerated or extended by the Board in billion or more and that has a U.S. writing. branch or U.S. agency must: or exceed $250 billion with respect to its combined U.S. operations; and (d) Cessation of requirements—(1) * * * * * (D) Any U.S. intermediate holding Foreign banking organizations. (i) Any (2) * * * company of a Category II foreign foreign banking organization that (i) A supervisory capital stress test banking organization or a Category III becomes a covered foreign entity will conducted by the foreign banking foreign banking organization. remain subject to the requirements of organization’s home-country supervisor (ii) Major foreign banking this subpart unless and until: or an evaluation and review by the organization means a foreign banking (A) The covered foreign entity is not foreign banking organization’s home- organization that is a covered foreign a Category II foreign banking country supervisor of an internal capital entity and meets the requirements of organization; adequacy stress test conducted by the § 252.172(c)(3) through (5). (B) The covered foreign entity is not foreign banking organization, according (b) Credit exposure limits. (1) Section a Category III foreign banking to the frequency specified in paragraphs 252.172 establishes credit exposure organization; and (b)(2)(A) and (B): limits for covered foreign entities and (C) Its total consolidated assets fall (A) If the foreign banking organization major foreign banking organizations. below $250 billion for each of four is not a Category IV foreign banking (2) A covered foreign entity is consecutive quarters, as reported on the organization, on at least an annual basis; required to calculate its aggregate net covered foreign entity’s FR Y–7Q, or credit exposure, gross credit exposure, effective on the as-of date of the fourth (B) If the foreign banking organization and net credit exposure to a consecutive FR Y–7Q. is a Category IV foreign banking counterparty using the methods in this (ii) A foreign banking organization organization, at least biennially; and subpart. that is a covered foreign entity and that * * * * * (c) Applicability of this subpart—(1) has ceased to be a major foreign banking (c) * * * Foreign banking organizations. (i) A organization for purposes of § 252.172(c) (1) In general. A foreign banking foreign banking organization that is a is no longer subject to the requirements organization with combined U.S. assets covered foreign entity as of October 5, of § 252.172(c) beginning on the first of $100 billion or more must report to 2018, must comply with the day of the calendar quarter following the Board by January 5 of each calendar requirements of this subpart, including the reporting date on which it ceased to year, unless such date is extended by but not limited to § 252.172, beginning be a major foreign banking organization; the Board, summary information about on July 1, 2020, unless that time is provided that the foreign banking its stress-testing activities and results, extended by the Board in writing. organization remains subject to the including the following quantitative and (ii) Notwithstanding paragraph requirements of this subpart, unless it qualitative information: (c)(1)(i) of this section, a foreign banking ceases to be a foreign banking * * * * * organization that is a major foreign organization that is a covered foreign (2) Additional information required banking organization as of October 5, entity pursuant to paragraph (d)(1)(i) of for foreign banking organizations in a 2018, must comply with the this section.

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(2) U.S. intermediate holding have aggregate net credit exposure to counterparty is connected by a control companies. (i) Any U.S. intermediate any counterparty that exceeds 25 relationship with one or more other holding company that becomes a percent of the tier 1 capital of the counterparties. covered foreign entity will remain foreign banking organization. * * * * * subject to the requirements of this (c) * * * ■ 49. Amend § 252.178 by: (2) No major foreign banking subpart unless and until: ■ a. Revising paragraph (a)(1); (A) The covered foreign entity is not organization may permit its combined ■ b. Removing and reserving paragraph the subsidiary of a Category II foreign U.S. operations to have aggregate net (a)(2); and credit exposure to any major banking organization; ■ (B) The covered foreign entity is not counterparty that exceeds 15 percent of c. Revising paragraph (c)(2). the subsidiary of a Category III foreign the tier 1 capital of the major foreign The revisions read as follows: banking organization; or banking organization. § 252.178 Compliance. (C) The covered foreign entity’s total * * * * * (a) * * * consolidated assets fall below $50 ■ 46. Amend § 252.173 by removing and (1) Using all available data, including billion for each of four consecutive reserving paragraph (b)(1) and revising any data required to be maintained or quarters, as reported on the covered paragraph (b)(2) to read as follows: foreign entity’s FR Y–9C, effective on reported to the Federal Reserve under the as-of date of the fourth consecutive § 252.173 Gross credit exposure. this subpart, a covered foreign entity FR Y–9C. * * * * * must comply with the requirements of ■ 44. Amend § 252.171 by; (b) * * * this subpart on a daily basis at the end ■ a. Revising paragraph (f)(1); (2) A covered foreign entity must of each business day. ■ b. Removing paragraph (aa); and calculate pursuant to § 252.175 its gross * * * * * ■ c. Redesignating paragraphs (bb) credit exposure due to any investment (c) * * * through (ll) as (aa) through (kk) in the debt or equity of, and any credit (2) A covered foreign entity may respectively. derivative or equity derivative between request a special temporary credit The revision reads as follows: the covered foreign entity and a third exposure limit exemption from the party where the covered foreign entity is § 252.171 Definitions. Board. The Board may grant approval the protection provider and the for such exemption in cases where the * * * * * reference asset is an obligation or equity Board determines that such credit (f) * * * security of, or equity investment in, a transactions are necessary or (1) With respect to a natural person, securitization vehicle, investment fund, appropriate to preserve the safety and the natural person, and, if the credit and other special purpose vehicle that is soundness of the covered foreign entity exposure of the covered foreign entity to not an affiliate of the covered foreign or U.S. financial stability. In acting on such natural person exceeds 5 percent entity. a request for an exemption, the Board of its tier 1 capital, the natural person will consider the following: and members of the person’s immediate * * * * * family collectively; (i) A decrease in the covered foreign § 252.175 [Amended] entity’s tier 1 capital; * * * * * ■ 47. In § 252.175, remove and reserve (ii) The merger of the covered foreign ■ 45. Amend § 252.172 by: paragraph (a)(1) to read as follows: entity with another covered foreign ■ a. Removing and reserving paragraph ■ 48. In § 252.176 remove and reserve entity; (a); paragraph (a)(1) and revise paragraph (iii) A merger of two counterparties; ■ b. Revising paragraph (b); (a)(2)(i) to read as follows: ■ c. Removing and reserving paragraph or (c)(1); and § 252.176 Aggregation of exposures to (iv) An unforeseen and abrupt change ■ d. Revising paragraph (c)(2). more than one counterparty due to in the status of a counterparty as a result The revisions read as follows: economic interdependence or control of which the covered foreign entity’s relationships. credit exposure to the counterparty § 252.172 Credit exposure limits. (a) *** becomes limited by the requirements of * * * * * (2)(i) If a covered foreign entity has an this section; or (b) Limit on aggregate net credit aggregate net credit exposure to any (v) Any other factor(s) the Board exposure for covered foreign entities. (1) counterparty that exceeds 5 percent of determines, in its discretion, is No U.S. intermediate holding company its tier 1 capital, the covered foreign appropriate. that is a covered foreign entity may have entity must assess its relationship with * * * * * an aggregate net credit exposure to any the counterparty under paragraph (b)(2) counterparty that exceeds 25 percent of of this section to determine whether the By order of the Board of Governors of the the tier 1 capital of the U.S. counterparty is economically Federal Reserve System. intermediate holding company. interdependent with one or more other Ann Misback, (2) No foreign banking organization counterparties of the covered foreign Secretary of the Board. that is a covered foreign entity may entity and under paragraph (c)(1) of this [FR Doc. 2019–07895 Filed 5–14–19; 8:45 am] permit its combined U.S. operations to section to determine whether the BILLING CODE 6210–01–P

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Part IV

The President

Proclamation 9882—National Charter Schools Week, 2019 Proclamation 9883—National Defense Transportation Day and Transportation Week, 2019 Proclamation 9884—Peace Officers Memorial Day and Police Week, 2019 Proclamation 9885—Mother’s Day, 2019 Notice of May 13, 2019—Continuation of the National Emergency With Respect to Yemen

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Federal Register Presidential Documents Vol. 84, No. 94

Wednesday, May 15, 2019

Title 3— Proclamation 9882 of May 10, 2019

The President National Charter Schools Week, 2019

By the President of the United States of America

A Proclamation During National Charter Schools Week, we recognize the important contribu- tions public charter schools make by providing American families with the freedom to choose high-quality education options that meet their chil- dren’s needs. For more than a quarter century, charter schools—tuition- free public schools of choice—have been incubators of educational innova- tions, while being accountable for student achievement and outcomes. Today, what began as a grassroots movement now flourishes in 44 States, the District of Columbia, Guam, and Puerto Rico, with more than 7,000 schools serving approximately 3.2 million students. Charter schools empower families to pursue the right educational fit for their children, helping ensure that there are paths to the American Dream that match the needs of students striving to achieve it. The unique needs of students, rather than address or family income, should determine where they learn. My Administration is committed to reducing the outsized Federal footprint in education and to empowering families, as well as State and local policymakers and educators, with the flexibility to adapt to student needs. Public charter schools work for students, teachers, and communities. The Center for Research on Education Outcomes found that charter schools better serve low-income students, minority students, and students learning English than neighboring public schools. The success of our Nation’s public charter schools in helping students of all backgrounds thrive and in addressing the needs of local education confirms what Americans have always known: those who are closest to students know best how to prepare them to reach their full potential. Nothing better proves the value of and need for charter schools than the ever-growing demand from students and families. Although charter school enrollment has increased at least sevenfold in the past 18 years, more than one million students remain on charter school waiting lists today. A recent survey found that 59 percent of parents would prefer to send their child to a different type of school than the one to which they have been assigned. Because of the success of and demand for public charter schools, each year since taking office, I have proposed to increase and improve funding for them as a key part of my Administration’s ambitious efforts to expand every family’s access to all types of high-quality education opportunities. In my fiscal year 2020 budget request, I called on the Congress to increase funding for the Federal Charter Schools Program to $500 million, an increase of $60 million over the current level. No matter where they live or how much their parents earn, all children deserve access to education that enriches their minds. This week, we cele- brate all the students, families, teachers, administrators, and community leaders who support public charter schools and education freedom. We reaffirm our commitment to expanding every family’s access to high-quality

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education opportunities and to supporting educational excellence and inno- vation for the benefit of every student and for the continued prosperity of our great Nation. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim May 12 through May 18, 2019, as National Charter Schools Week. I commend our Nation’s successful public charter schools, teachers, and administrators, and I call on States and communities to help students and empower parents and families by supporting high-quality charter schools as an important school choice option. IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of May, in the year of our Lord two thousand nineteen, and of the Independence of the United States of America the two hundred and forty-third.

[FR Doc. 2019–10255 Filed 5–14–19; 11:15 am] Billing code 3295–F9–P

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Proclamation 9883 of May 10, 2019

National Defense Transportation Day and National Transpor- tation Week, 2019

By the President of the United States of America

A Proclamation The capability to move and travel freely and efficiently by land, air, and sea is critical to our economic strength, vital to our national defense, and essential to the American way of life. On National Defense Transportation Day and during National Transportation Week, we recognize the dedicated professionals who ensure our transportation infrastructure system is safe, convenient, reliable, and fully prepared to support our national defense. America’s infrastructure systems help sustain our competitive edge and mili- tary readiness. After many decades of constant and increasing use, much of our Nation’s infrastructure has fallen into disrepair. More than 25 percent of our Nation’s bridges are structurally deficient; more than 20 percent of our roads are in poor condition; and drivers lose nearly $160 billion annually because of congestion and delays. If left unaddressed by 2025, our Nation’s deteriorating infrastructure will drain our economy of nearly 2.5 million jobs and $4 trillion in gross domestic product. As a Nation, we cannot afford to wait additional decades to address these critical issues and fix our transportation system. Our country forged its path to global economic dominance through an efficient and hard-nosed determination to build. In 1933, we summoned our most gifted engineers and workers to construct the Golden Gate Bridge; they finished it in 4 years. Three years earlier, in 1930, construction began on the Empire State Building; it took about 1 year to complete. Decades of bureaucratic and regulatory roadblocks have sapped us of that zeal to build. These self- imposed obstacles regularly stall and delay even the most important of infrastructure projects. The environmental review process for some improve- ment projects can take more than 20 years to complete. Improving our infrastructure will enhance quality of life, productivity, and the competitiveness of American workers and families. For this reason, I have called on the Congress to pass legislation that provides the funding required to rebuild our roads and bridges. These funds will catalyze new State and local investments in infrastructure, and focus resources on rural communities. By repairing our existing infrastructure and by building bold new projects, we will reduce traffic congestion, improve road conditions, and boost commerce throughout our country. We cannot fully tackle our infrastructure needs until we commit to meaning- ful regulatory reform. Last year, we made important strides by establishing a coordinated and timely environmental review process through the One Federal Decision Memorandum of Understanding. This policy sets a Govern- ment-wide goal of completing Federal environmental reviews for major infra- structure projects in 2 years—not 10 or 20. We will move more quickly, ensuring sound environmental, community, and economic outcomes in the process. Finally, maintaining and improving our infrastructure is a matter of economic and national security. It is central to our ability to manufacture and export

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goods, execute emergency responses, achieve energy independence, and se- cure our Nation. It sustains our military readiness and capabilities, facilitating the safe and expeditious movement of our troops and the transport of their supplies and equipment to locations in America and around the world. Our men and women in uniform deserve to be safe and well-stocked as they put their lives on the line to defend our freedoms and way of life. To recognize the men and women who work in the transportation industry and who contribute to our Nation’s well-being and defense, the Congress, by joint resolution approved May 16, 1957, as amended (36 U.S.C. 120), has designated the third Friday in May of each year as ‘‘National Defense Transportation Day,’’ and, by joint resolution approved May 14, 1962, as amended (36 U.S.C. 133), has declared that the week during which that Friday falls be designated as ‘‘National Transportation Week.’’ NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, do hereby proclaim Friday, May 17, 2019, as National Defense Transportation Day and May 12 through May 18, 2019, as National Transpor- tation Week. I encourage all Americans to celebrate these observances with appropriate ceremonies and activities to learn more about how our transpor- tation system contributes to the security of our citizens and the prosperity of our Nation. IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of May, in the year of our Lord two thousand nineteen, and of the Independence of the United States of America the two hundred and forty-third.

[FR Doc. 2019–10257 Filed 5–14–19; 11:15 am] Billing code 3295–F9–P

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Proclamation 9884 of May 10, 2019 Peace Officers Memorial Day and Police Week, 2019

By the President of the United States of America

A Proclamation On Peace Officers Memorial Day and throughout Police Week, we express our unending gratitude to our Nation’s law enforcement officers. Those brave men and women selflessly confront danger to protect our families and defend our communities. We also honor those in blue who have been killed or disabled in the line of duty. We are especially mindful of the tremendous sacrifices of the 106 heroes who laid down their lives last year while protecting their communities. My Administration is working on several fronts to enhance the health and safety of our Nation’s law enforcement officers. The Department of Justice (DOJ) continues to promote initiatives that provide funding for bulletproof vests, active shooter training, the National Blue Alert System, and other programs that bolster the physical and mental health of those who protect us. We are making surplus military equipment available to law enforcement agencies. We are implementing the Law Enforcement Mental Health and Wellness Act, which I signed into law last year, to improve the delivery of and access to mental health and wellness services. And when tragedy does strike, DOJ’s Public Safety Officers’ Benefits Program stands ready and able to assist the families of the fallen and catastrophically injured. The best way we can support law enforcement is to reduce violent crime. My Administration has secured $50 million in funding for one of the most effective crime prevention strategies in America, the Project Safe Neighbor- hoods initiative. This results-based and data-proven initiative is reducing violent crime nationwide by leveraging local law enforcement and community partnerships, along with strategic enforcement efforts, to arrest the most violent criminals in the most violent locations. Through the combined efforts of all levels of law enforcement, violent crime in our country is falling. Our Nation’s law enforcement officers serve with courage, dedication, and strength. They fearlessly enforce our laws, even at the risk of personal peril, safeguarding our property, our liberty, and our lives. We owe them, and their families, our full and enduring support. By a joint resolution approved October 1, 1962, as amended (76 Stat. 676), and by Public Law 103–322, as amended (36 U.S.C. 136–137), the President has been authorized and requested to designate May 15 of each year as ‘‘Peace Officers Memorial Day’’ and the week in which it falls as ‘‘Police Week.’’ NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, do hereby proclaim May 15, 2019, as Peace Officers Memorial Day and May 12 through May 18, 2019, as Police Week. In humble apprecia- tion of our hardworking law enforcement officers, Melania and I will light the White House in blue on May 15. I call upon all Americans to observe Peace Officers Memorial Day and Police Week with appropriate ceremonies and activities. I also call on the Governors of the States and Territories and officials of other areas subject to the jurisdiction of the United States, to direct that the flag be flown at half-staff on Peace Officers Memorial Day. I further encourage all Americans to display the flag from their homes and businesses on that day.

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IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of May, in the year of our Lord two thousand nineteen, and of the Independence of the United States of America the two hundred and forty-third.

[FR Doc. 2019–10262 Filed 5–14–19; 11:15 am] Billing code 3295–F9–P

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Proclamation 9885 of May 10, 2019

Mother’s Day, 2019

By the President of the United States of America

A Proclamation For more than a century, Americans have set aside the second Sunday in May to honor, celebrate, and thank the inspirational mothers in our lives. In 1914, the Congress, by joint resolution (38 Stat. 770), designated this day as Mother’s Day and requested the President to call for its appropriate observance. Today, we recognize mothers everywhere who inspire us to dream big and to never give up. Mothers have always played an integral role in shaping our great Nation. Even before our country was founded, mothers inspired sons and daughters to patriotism and devotion to the ideal of freedom for all. After First Lady Abigail Adams died in 1818, her son, President John Quincy Adams, wrote: ‘‘She had been, during the war of our Revolution, an ardent patriot, and the earliest lesson of unbounded devotion to the cause of their country that her children received was from her.’’ Inspirational mothers across Amer- ica continue to pass on this same lesson, encouraging their children to become leaders in their own families and great citizens in their communities and this Nation. Even in our lowest moments, mothers see the best in their children. Through their guidance and unwavering love, they prepare us for the challenges of adulthood and provide us with the confidence we need to reach our full potential. They are some of the best examples of everyday heroes, and their consistent devotion to family and grace under pressure too often go overlooked. At any stage in life, we find comfort in knowing that we can call on our mothers and grandmothers or reflect on our wonderful memories of them to find wisdom and strength. On this Mother’s Day, we pay tribute to our mothers, whether we are their children by birth, adoption, or foster care, for their devotion to seeing us lead happy and successful lives. Today, and every day, let us ensure that our mothers know and feel our deep gratitude for the gift of life and for their unmatched sacrifices to strengthen our families and our Nation. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim May 12, 2019, as Mother’s Day. I encourage all Americans to express their love and respect for their mothers or beloved mother figures, whether with us in person or in spirit, and to reflect on the importance of motherhood to the prosperity of our families, communities, and Nation.

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IN WITNESS WHEREOF, I have hereunto set my hand this tenth day of May, in the year of our Lord two thousand nineteen, and of the Independence of the United States of America the two hundred and forty-third.

[FR Doc. 2019–10263 Filed 5–14–19; 11:15 am] Billing code 3295–F9–P

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Notice of May 13, 2019

Continuation of the National Emergency With Respect to Yemen

On May 16, 2012, by Executive Order 13611, the President declared a national emergency pursuant to the International Emergency Economic Pow- ers Act (50 U.S.C. 1701–1706) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States con- stituted by the actions and policies of certain former members of the Govern- ment of Yemen and others that threaten Yemen’s peace, security, and sta- bility. These actions include obstructing the political process in Yemen and blocking implementation of the agreement of November 23, 2011, be- tween the Government of Yemen and those in opposition to it, which provided for a peaceful transition of power that meets the legitimate demands and aspirations of the Yemeni people. The actions and policies of certain former members of the Government of Yemen and others in threatening Yemen’s peace, security, and stability continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. For this reason, the national emer- gency declared on May 16, 2012, to deal with that threat must continue in effect beyond May 16, 2019. 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 13611. This notice shall be published in the Federal Register and transmitted to the Congress.

THE WHITE HOUSE, May 13, 2019. [FR Doc. 2019–10264

Filed 5–14–19; 11:15 am] Billing code 3295–F9–P

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Reader Aids Federal Register Vol. 84, No. 94 Wednesday, May 15, 2019

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING MAY

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 10 CFR Presidential Documents 2 CFR Executive orders and proclamations 741–6000 1800...... 20239 72...... 21687 The United States Government Manual 741–6000 Proposed Rules: 3 CFR 50...... 21727 Other Services Executive Orders: 52...... 21727 Electronic and on-line services (voice) 741–6020 13870...... 20523 72...... 21728 Privacy Act Compilation 741–6050 13871...... 20761 430...... 18414, 20048 Proclamations: 431 ...... 18414, 20048, 20704 9822 (See Proc. ELECTRONIC RESEARCH 9880) ...... 21229 11 CFR 9842 (See Proc. 100...... 18697 World Wide Web 9880) ...... 21229 101...... 18697 Full text of the daily Federal Register, CFR and other publications 9865...... 18695 102...... 18697 is located at: www.govinfo.gov. 9866...... 18969 104...... 18697 9867...... 19683 105...... 18697 Federal Register information and research tools, including Public 9868...... 19685 108...... 18697 Inspection List and electronic text are located at: 9869...... 19687 110...... 18697 www.federalregister.gov. 9870...... 19689 114...... 18697 9871...... 19691 E-mail 9872...... 19693 12 CFR FEDREGTOC (Daily Federal Register Table of Contents Electronic 9873...... 19695 204...... 20541 Mailing List) is an open e-mail service that provides subscribers 9874...... 19697 208...... 21691 with a digital form of the Federal Register Table of Contents. The 9875...... 19851 211...... 21691 digital form of the Federal Register Table of Contents includes 9876...... 20529 Ch. VI...... 21693 9877...... 20531 HTML and PDF links to the full text of each document. Proposed Rules: To join or leave, go to https://public.govdelivery.com/accounts/ 9878...... 20533 217...... 21988 9879...... 20535 USGPOOFR/subscriber/new, enter your email address, then 225...... 21634, 21988 9880...... 21229 follow the instructions to join, leave, or manage your 231...... 18741 9881...... 21685 subscription. 238...... 21634, 21988 9882...... 22039 243...... 21600 PENS (Public Law Electronic Notification Service) is an e-mail 9883...... 22041 252...... 21988 service that notifies subscribers of recently enacted laws. 9884...... 22043 381...... 21600 9885...... 22045 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html Ch. X...... 21732 and select Join or leave the list (or change settings); then follow Administrative Orders: 1003...... 20049, 20972 the instructions. Memorandums: 1005...... 21729 Memorandum of Apr. FEDREGTOC and PENS are mailing lists only. We cannot 22, 2019 ...... 19853 respond to specific inquiries. 13 CFR Notices: Proposed Rules: Reference questions. Send questions and comments about the Notice of May 8, 124...... 21256 Federal Register system to: [email protected] 2019 ...... 20537 127...... 21256 The Federal Register staff cannot interpret specific documents or Notice of May 8, regulations. 2019 ...... 20539 14 CFR Notice of May 13, 25...... 18701, 20021 2019 ...... 22047 FEDERAL REGISTER PAGES AND DATE, MAY 39 ...... 18704, 18707, 19709, 6 CFR 20242, 20246, 20248, 20252, 18383–18694...... 1 5...... 20240 20542, 20772 18695–18970...... 2 71 ...... 20256, 20257, 20258, 18971–19682...... 3 7 CFR 20774 19683–19852...... 6 610...... 19699 97...... 18971, 18973 19853–20004...... 7 622...... 19699 Proposed Rules: 20005–20238...... 8 625...... 19699 25 ...... 18997, 20053, 21733 20239–20536...... 9 652...... 19699 39 ...... 19745, 19879, 19881, 20537–20764...... 10 985...... 19703 19885, 19888, 19891, 20054, 20057, 20300, 20303, 20822, 20765–21232...... 13 1220...... 20765 1260...... 20765 20823, 21268, 21270, 21273, 21233–21686...... 14 1455...... 19699 21276, 21279 21687–22048...... 15 Proposed Rules: 71...... 20306 51...... 19743 15 CFR 930...... 20043 744...... 21233 8 CFR Proposed Rules: 214...... 20005 960...... 21282

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16 CFR 917...... 18430, 20595 52 ...... 19005, 19007, 19750, Proposed Rules: 18...... 20776 925...... 18433, 20597 19893, 20070, 20071, 20318, 1...... 18757, 20077 433...... 18711 935...... 20599 20604, 20838 2...... 20088 460...... 20777 938...... 18435 63...... 18926, 20208 30...... 20077 80...... 21305 73...... 19897 Proposed Rules: 31 CFR 81...... 19007, 19893 95...... 20088 Ch. I ...... 18746 Proposed Rules: 131...... 18454 33...... 19000 174...... 20320 17 CFR 48 CFR 180...... 20320, 20843 Proposed Rules: 32 CFR 300...... 20073 Ch.1 ...... 19834, 19847 23...... 21044 151...... 18383 1...... 19839 43...... 21044 Proposed Rules: 41 CFR 2...... 19835, 19839 45...... 21044 199...... 18437 Proposed Rules: 3...... 19839 49...... 21044 200...... 18437 App. C Ch. 301...... 19895 4...... 19837, 19839 5...... 19839 20 CFR 304–2...... 19895 33 CFR 304–3...... 19895 6...... 19839 655...... 20005 100 ...... 18727, 18974, 19715, 304–5...... 19895 7...... 19839 20027, 20028, 20270, 21699 304–6...... 19895 8...... 19837, 19839 21 CFR 165 ...... 18387, 18389, 18975, 9...... 19839 1308...... 20023 20028, 20029, 20034, 20035, 42 CFR 10...... 19835 Proposed Rule: 20544, 20546, 20547, 21701, 403...... 20732 11...... 19839 73...... 20060 21703, 21704 405...... 19855 12...... 19835 1308...... 18423 326...... 18979 423...... 19855 13...... 19835 Proposed Rules: 447...... 19718 16...... 19837, 20292 22 CFR 100 ...... 20060, 20307, 20602 484...... 20810 17...... 19837, 19839 40...... 19712 165 ...... 18452, 19003, 20307, 1001...... 20810 18...... 19835 20318, 20825, 21302 Proposed Rules: 19...... 19839 24 CFR 175...... 20827 410...... 18748 22...... 19839 412...... 19158 26...... 19835, 19839 Proposed Rules: 36 CFR 5...... 20589 413...... 19158 30...... 19839 204...... 19748 Proposed Rules: 414...... 18748 31...... 19839 7...... 21738 424...... 18748 35...... 19837 26 CFR 488...... 18748 45...... 19839 37 CFR 50...... 19839 1...... 20790 493...... 18748 52...... 19839 300...... 20801 201...... 20273 495...... 19158 53...... 19839 Proposed Rules: 38 CFR 44 CFR 1 ...... 18652, 18999, 21198 Proposed Rules: 17...... 21668 64...... 18403 2...... 20607 29 CFR 39 CFR 45 CFR 1602...... 18383, 18974 111...... 18731, 21238 49 CFR 1904...... 21416 Proposed Rules: 233...... 20804 155...... 19000 1002...... 20292 1910...... 21416 3020...... 18982 1312...... 20292 1915...... 21416 3050...... 20806 46 CFR Proposed Rules: 1926...... 21416 Proposed Rules: 401...... 20551 240...... 20472 4022...... 21698 3020...... 21304 404...... 20551 571...... 21309 4041A ...... 18715 Proposed Rules: 576...... 21741 4245...... 18715 40 CFR 25...... 20827 4281...... 18715 49...... 21240 355...... 18468 50 CFR Proposed Rules: 52 ...... 18392, 18736, 18738, 356...... 18469 548...... 21300 18989, 18991, 19680, 19681, 17...... 19877 778...... 21300 20274, 20808, 21253 47 CFR 300...... 18409 791...... 21301 81...... 21253 2...... 20810 622...... 19728 158...... 18993 25...... 20810 635...... 20296 30 CFR 180 ...... 18398, 20037, 21706 30...... 18405, 20810 648...... 20820, 21723 250...... 21908 271...... 20549 52...... 19874 660...... 19729, 20578 916...... 20259 300...... 20550, 21708 54...... 19874 Proposed Rules: 934...... 20264 1552...... 21714 64...... 19874 17...... 19013, 21312 Proposed Rules: Proposed Rules: 73...... 21718 218...... 21126 913...... 18428 1...... 20062 76...... 18406 648...... 18471, 20609

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