Page Range | 69563-69836 | |
FR Document |
Page and Subject | |
---|---|
80 FR 69567 - Home Mortgage Disclosure (Regulation C) | |
80 FR 69835 - Veterans Day, 2015 | |
80 FR 69698 - Sunshine Act Meeting | |
80 FR 69635 - Sunshine Act Meeting Notice | |
80 FR 69773 - Sunshine Act Meetings; Unified Carrier Registration Plan Board of Directors | |
80 FR 69635 - Sunshine Act Meeting | |
80 FR 69736 - In the Matter of Inelco Corp., and Teliphone Corp.; Order of Suspension of Trading | |
80 FR 69722 - Sunshine Act Notice-Public Hearing | |
80 FR 69741 - Sunshine Act Meeting | |
80 FR 69693 - Notice of Availability of the Southline Transmission Line Project Final Environmental Impact Statement (DOE/EIS-0474), New Mexico and Arizona | |
80 FR 69636 - Notification of Proposed Production Activity ASA Electronics, LLC Subzone 125D (Motor Vehicle Audio-Visual Products) Elkhart, Indiana | |
80 FR 69640 - Aluminum Extrusions From the People's Republic of China: Amended Final Affirmative Countervailing Duty Determination Pursuant to Court Decision | |
80 FR 69637 - Welded Line Pipe From the Republic of Korea: Amended Final Determination of Sales at Less Than Fair Value | |
80 FR 69643 - Certain Polyethylene Terephthalate Resin From the People's Republic of China: Notice of Correction to Preliminary Affirmative Less Than Fair Value Determination | |
80 FR 69638 - Drawn Stainless Steel Sinks From the People's Republic of China: Final Results of Countervailing Duty Administrative Review and Rescission in Part; 2012-2013 | |
80 FR 69652 - Notification of a Public Teleconference of the Science Advisory Board Hydraulic Fracturing Research Advisory Panel | |
80 FR 69629 - Request for Comment: Kentucky Underground Injection Control (UIC) Program; Primacy Approval | |
80 FR 69653 - Notice of Opportunity To Provide Information on Existing Programs That Protect Water Quality From Forest Road Discharges | |
80 FR 69770 - Random Drug and Alcohol Testing Percentage Rates of Covered Aviation Employees for the Period of January 1, 2016, Through December 31, 2016 | |
80 FR 69637 - Foreign-Trade Zone (FTZ) 57-Charlotte, North Carolina, Notification of Proposed Production Activity, DNP Imagingcomm America Corporation, Subzone 57C, (Dye Sublimation Transfer Ribbon (STR) and STR Photo Printer Packages), Concord, North Carolina | |
80 FR 69627 - Approval and Promulgation of Air Quality Implementation Plans; Pennsylvania; Allegheny County's Adoption of Control Techniques Guidelines for Four Industry Categories for Control of Volatile Organic Compound Emissions | |
80 FR 69644 - Drawn Stainless Steel Sinks From the People's Republic of China: Final Results of the Antidumping Duty Administrative Review; 2012-2014 | |
80 FR 69641 - Carbon and Certain Alloy Steel Wire Rod From Mexico: Preliminary Results of Antidumping Duty Administrative Review; 2013-2014 | |
80 FR 69772 - Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: Damage Tolerance and Fatigue Evaluation of Composite Rotorcraft Structures | |
80 FR 69772 - Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: Changes in Permissible Stage 2 Airplane Operations | |
80 FR 69773 - Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: FAA Acquisition Management System (FAAAMS) Including ARRA Requirements | |
80 FR 69771 - Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: FAA Airport Master Record | |
80 FR 69698 - Notice Pursuant to the National Cooperative Research and Production Act of 1993-IMS Global Learning Consortium, Inc. | |
80 FR 69697 - Notice Pursuant to the National Cooperative Research and Production Act of 1993-Pistoia Alliance, Inc. | |
80 FR 69698 - Notice Pursuant to the National Cooperative Research and Production Act of 1993-Cooperative Research Group on Ros-Industrial Americas | |
80 FR 69770 - Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: Operating Requirements: Domestic, Flag and Supplemental Operations | |
80 FR 69771 - Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: Commercial Air Tour Operator Reports | |
80 FR 69774 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel EASTER B; Invitation for Public Comments | |
80 FR 69776 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel BLUE MOON; Invitation for Public Comments | |
80 FR 69775 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel GUNGHO; Invitation for Public Comments | |
80 FR 69775 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel SAMBA; Invitation for Public Comments | |
80 FR 69773 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel ENCHANTED; Invitation for Public Comments | |
80 FR 69776 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel BELLA LUNA; Invitation for Public Comments | |
80 FR 69777 - Requested Administrative Waiver of the Coastwise Trade Laws: Vessel TIERRA LYNN; Invitation for Public Comments | |
80 FR 69646 - Agency Information Collection Activities: Comment Request | |
80 FR 69688 - Submission for OMB Review; 30 Day Comment Request; Evaluation of the Science Education Partnership Award (SEPA) Program (OD) | |
80 FR 69685 - Proposed Collection; 60-Day Comment Request; NIH Office of Intramural Training & Education Application (OD) | |
80 FR 69698 - Notice of Federal Advisory Committee Meeting | |
80 FR 69632 - Notice of Request for Extension of Approval of an Information Collection; Select Agent Registration | |
80 FR 69721 - Proposed Emergency Preparedness Frequently Asked Questions | |
80 FR 69705 - Southern California Edison Company, San Onofre Nuclear Generating Station, Units 2 and 3 | |
80 FR 69702 - Mitigation Strategies for Beyond-Design-Basis External Events | |
80 FR 69686 - National Institute of Allergy and Infectious Diseases; Notice of Closed Meetings | |
80 FR 69687 - National Institute of Allergy and Infectious Diseases; Notice of Closed Meetings | |
80 FR 69687 - National Institute of Dental & Craniofacial Research; Notice of Closed Meeting | |
80 FR 69687 - Eunice Kennedy Shriver National Institute of Child Health & Human Development; Amended Notice of Meeting | |
80 FR 69686 - National Cancer Institute; Amended Notice of Meeting | |
80 FR 69707 - Advisory Committee on Reactor Safeguards (ACRS); Meeting of the ACRS Subcommittee on Regulatory Policies and Practices; Notice of Meeting | |
80 FR 69768 - Notice of Issuance of a Presidential Permit to Kinder Morgan Cochin, LLC To Connect, Operate, and Maintain Existing Pipeline Facilities at the International Boundary Between the United States and Canada | |
80 FR 69588 - Visas: Interview Waiver Authority | |
80 FR 69784 - Cancellation of Meeting; National Research Advisory Council; Notice of Meeting Cancellation | |
80 FR 69701 - Agency Information Collection Activities: Comment Request; Education and Human Resources Program Monitoring Clearance | |
80 FR 69564 - Worker Safety and Health Program; Technical Amendments | |
80 FR 69783 - Agency Information Collection (Deployment Risk and Resilience Inventory) Activities Under OMB Review | |
80 FR 69663 - Information Collection Requirement Being Submitted to the Office of Management and Budget for Emergency Review and Approval | |
80 FR 69722 - Federal Prevailing Rate Advisory Committee; Cancellation of Upcoming Meeting | |
80 FR 69623 - Federal Employees' Group Life Insurance Program: Providing Option C Coverage for Children of Same-Sex Domestic Partners; Withdrawal | |
80 FR 69567 - Special Conditions: Boeing Model 787-9 Airplane; Structure-Mounted Airbags | |
80 FR 69723 - Excepted Service | |
80 FR 69726 - Excepted Service | |
80 FR 69700 - Notice of Extension to Public Comment Period for Two Consent Decrees Under the Resource Recovery and Conservation Act | |
80 FR 69649 - Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Grantee Reporting Form-RSA Annual Payback Report | |
80 FR 69650 - Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Study of Enhanced College Advising in Upward Bound | |
80 FR 69689 - Agency Information Collection Activities: Proposed Collection; Comment Request | |
80 FR 69635 - Federal Economic Statistics Advisory Committee Meeting | |
80 FR 69661 - Public Safety and Homeland Security Bureau; Federal Advisory Committee Act; Task Force on Optimal Public Safety Answering Point Architecture | |
80 FR 69777 - Fiscal Service | |
80 FR 69630 - Petitions for Reconsideration of Action in Rulemaking Proceeding | |
80 FR 69660 - Information Collection Being Reviewed by the Federal Communications Commission | |
80 FR 69649 - Submission for OMB Review; Comment Request | |
80 FR 69589 - Housing Improvement Program | |
80 FR 69695 - Proposed Information Collection; National Park Service Concessions | |
80 FR 69674 - Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company | |
80 FR 69619 - Fisheries of the Northeastern United States; Atlantic Coastal Fisheries Cooperative Management Act Provisions; American Lobster Fishery | |
80 FR 69648 - National Commission on the Future of the Army; Notice of Federal Advisory Committee Meeting | |
80 FR 69782 - Solicitation of Nomination for Appointment to the VA Geriatrics and Gerontology Advisory Committee | |
80 FR 69695 - Notice of Public Meeting, Las Cruces District Resource Advisory Council Meeting, New Mexico | |
80 FR 69633 - Submission for OMB Review; Comment Request | |
80 FR 69634 - Submission for OMB Review; Comment Request | |
80 FR 69602 - Drawbridge Operation Regulation; Steamboat Slough (Snohomish River), Marysville, WA | |
80 FR 69719 - Information Collection: NRC Form 171, Duplication Request | |
80 FR 69720 - Information Collection: Rules of General Applicability to Domestic Licensing of Byproduct Material | |
80 FR 69623 - Airworthiness Directives; Pratt & Whitney Canada Corp. Turboprop Engines | |
80 FR 69625 - Airworthiness Directives; Rolls-Royce plc Turbofan Engines | |
80 FR 69651 - Combined Notice of Filings | |
80 FR 69675 - Mylan N.V.; Analysis To Aid Public Comment | |
80 FR 69738 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain Member Organizations To Participate in Business Continuity and Disaster Recovery Plans Testing in Connection With Regulation Systems Compliance and Integrity | |
80 FR 69745 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain ETP Holders To Participate in Business Continuity and Disaster Recovery Plans Testing in Connection With Regulation Systems Compliance and Integrity | |
80 FR 69767 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Mini Options | |
80 FR 69761 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the LIST Routing Option | |
80 FR 69751 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change To List and Trade Options That Overlie a Reduced Value of the FTSE 100 Index | |
80 FR 69760 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule | |
80 FR 69734 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Business and Disaster Recovery Plans Testing Requirements for Certain Participants in Connection With Regulation Systems Compliance and Integrity | |
80 FR 69731 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring OTP Holders To Participate in Business Continuity and Disaster Recovery Plans Testing in Connection With Regulation Systems Compliance and Integrity | |
80 FR 69728 - Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Provide Mechanism for Sub-Account Settlement With Respect to the Alternative Investment Product Services | |
80 FR 69748 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Specifying in Exchange Rules the Exchange's Use of Data Feeds From National Stock Exchange, Inc. for Order Handling and Execution, Order Routing, and Regulatory Compliance | |
80 FR 69765 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain Member Organizations To Participate in Business Continuity and Disaster Recovery Plans Testing in Connection With Regulation Systems Compliance and Integrity | |
80 FR 69749 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE MKT Rule 19-Equities To Specify in Exchange Rules the Exchange's Use of Data Feeds From National Stock Exchange, Inc. for Order Handling and Execution, Order Routing, and Regulatory Compliance | |
80 FR 69755 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Chapter XV, Entitled “Options Pricing,” at Section 2 Governing Pricing for NASDAQ Members | |
80 FR 69647 - U.S. Strategic Command Strategic Advisory Group; Notice of Federal Advisory Committee Closed Meeting | |
80 FR 69737 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 19 To Specify in Exchange Rules the Exchange's Use of Data Feeds From National Stock Exchange, Inc. for Order Handling and Execution, Order Routing, and Regulatory Compliance | |
80 FR 69741 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change To List and Trade Options That Overlie a Reduced Value of the FTSE China 50 Index | |
80 FR 69699 - Agency Information Collection Activities; Proposed eCollection eComments Requested; Application for Registration of Firearms Acquired by Certain Government Entities | |
80 FR 69781 - Proposed Collection; Comment Request for Form 5754 | |
80 FR 69780 - Proposed Collection; Comment Request for Regulation Project | |
80 FR 69781 - Proposed Collection; Comment Request for Regulation Project | |
80 FR 69604 - Air Plan Approval; Ohio; Revised Format for Materials Being Incorporated by Reference | |
80 FR 69779 - Agency Information Collection Activity; Proposed Collection | |
80 FR 69779 - Proposed Collection; Comment Request for Form 14411 | |
80 FR 69780 - Proposed Collection; Comment Request for RP 2006-30 | |
80 FR 69778 - Proposed Collection; Comment Request for Revenue Procedure 2003-36 | |
80 FR 69778 - Proposed Collection; Comment Request for Regulation Project | |
80 FR 69602 - Approval and Promulgation of Implementation Plans; State of Missouri; Control of Petroleum Liquid Storage, Loading and Transfer | |
80 FR 69782 - Advisory Group to the Commissioner of Internal Revenue; Renewal of Charter | |
80 FR 69664 - Proposed Collection; Comment Request | |
80 FR 69662 - Wireless Telecommunications Bureau Seeks Comment on an Appropriate Method for Determining the Protected Contours for Grandfathered 3650-3700 MHz Band Licensees | |
80 FR 69700 - Notice of Lodging of Proposed Consent Decree Under the Clean Air Act | |
80 FR 69578 - Standard Instrument Approach Procedures, and Takeoff Minimums and Obstacle Departure Procedures; Miscellaneous Amendments | |
80 FR 69692 - Navajo Nation Trust Leasing Act of 2000 Approval of Navajo Nation Regulations | |
80 FR 69677 - Proposed Data Collections Submitted for Public Comment and Recommendations | |
80 FR 69681 - Proposed Data Collection Submitted for Public Comment and Recommendations | |
80 FR 69680 - Proposed Data Collection Submitted for Public Comment and Recommendations | |
80 FR 69679 - Proposed Data Collection Submitted for Public Comment and Recommendations | |
80 FR 69683 - Proposed Data Collection Submitted for Public Comment and Recommendations | |
80 FR 69674 - Formations of, Acquisitions by, and Mergers of Bank Holding Companies | |
80 FR 69674 - Formations of, Acquisitions by, and Mergers of Bank Holding Companies; Correction | |
80 FR 69563 - Federal Awarding Agency Regulatory Implementation of Office of Management and Budget's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards | |
80 FR 69632 - Performance Review Board Appointments | |
80 FR 69707 - Biweekly Notice; Applications and Amendments to Facility Operating Licenses and Combined Licenses Involving No Significant Hazards Considerations | |
80 FR 69569 - Airworthiness Directives; Pacific Aerospace Limited Airplanes | |
80 FR 69571 - Airworthiness Directives; Sikorsky Aircraft Corporation (Type Certificate Previously Held by Schweizer Aircraft Corporation) | |
80 FR 69588 - Scope of the Export Administration Regulations | |
80 FR 69588 - General Information | |
80 FR 69786 - Exemptions To Facilitate Intrastate and Regional Securities Offerings | |
80 FR 69573 - Airworthiness Directives; Airbus Airplanes | |
80 FR 69630 - WTB Seeks Comment on a Petition for Declaratory Ruling Clarifying the Regulatory Status of Mobile Messaging Services |
Animal and Plant Health Inspection Service
Farm Service Agency
Food and Nutrition Service
Census Bureau
Foreign-Trade Zones Board
Industry and Security Bureau
International Trade Administration
National Oceanic and Atmospheric Administration
Federal Energy Regulatory Commission
Western Area Power Administration
Centers for Disease Control and Prevention
National Institutes of Health
Substance Abuse and Mental Health Services Administration
Coast Guard
Indian Affairs Bureau
Land Management Bureau
National Park Service
Antitrust Division
Foreign Claims Settlement Commission
Federal Aviation Administration
Federal Motor Carrier Safety Administration
Maritime Administration
Fiscal Service
Internal Revenue Service
Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.
To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.thefederalregister.org and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions.
Social Security Administration.
Final rule.
This final rule adopts the joint interim final rule that was published in the
This final rule is effective November 10, 2015.
For general information, please contact Christopher Brennan, Division Director, at the Social Security Administration Office of Acquisition and Grants, 6401 Security Boulevard, Baltimore, MD 21235, or via telephone at (410) 966-0392.
This final rule adopts the joint interim final rule that was published in the
The Uniform Guidance delivered on two presidential directives; Executive Order 13520 on Reducing Improper Payments (74 FR 62201; November 15, 20019), and February 28, 2011 Presidential Memorandum on Administrative Flexibility, Lower Costs, and Better Results for State, Local, and Tribal Governments, (Daily Comp. Pres. Docs.;
With this final rule, we are adopting OMB's uniform guidance to make technical corrections where needed into our chapter of title 2 of the CFR. With respect to the technical corrections that OMB is issuing, these corrections are included only where it has come to the attention of the COFAR that particular language in the final guidance did not match with the COFAR's intent and would result in an erroneous implementation of the guidance. These technical corrections were detailed in the interim final rule published in the
Pursuant to Executive Order 12866 as supplements by Executive Order 13563, OMB's Office of Information and Regulatory Affairs (OIRA) has designated this joint interim final rule to be not significant.
The Regulatory Flexibility Act (RFA) requires an agency that is issuing a final rule to provide a final regulatory flexibility analysis or to certify that the rule will not have a significant economic impact on a substantial number of small entities. The common interim final rule implemented OMB final guidance issued on December 26, 2013, and will not have a significant economic impact beyond the impact of the December 2013 guidance.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. Ch. 3506; 5 CFR 1320 Appendix A.1) (PRA), each agency reviewed its final rule and determined that there are no new collections of information contained therein. However, the OMB uniform guidance in 2 CFR 200 may have a negligible effect on burden estimates for existing information collections, including recordkeeping requirements for non-Federal entities that receive Federal awards.
OMB offered the public two opportunities to comment on the Uniform Guidance, first through an advanced notice of proposed guidance and, second, through a notice of proposed guidance. OMB considered over 300 comments submitted in
Generally, those agencies that are subject to the Administrative Procedures Act (APA) are required to delay the effective date of their final regulations by 30 days after publication, as required under 5 U.S.C. 553(d), unless an exception under subsection (d) applies.
Under 5 U.S.C. 553(d), these agencies may waive the delayed effective date requirement if they find good cause and explain the basis for the waiver in the final rulemaking document or if the regulations grant or recognize an exemption or relieve a restriction. In the present case, there is good cause to waive the delayed effective date for two reasons.
First, OMB informed the public on December 26, 2013, that agencies would be required to adopt the Uniform Guidance and make it effective by December 26, 2014. The public has had significant time to prepare for the promulgation of these interim final regulations.
Second, while these interim final regulations are based on a new, more effective method for establishing government-wide requirements, the substance of the regulations are, in most cases, virtually identical to the requirements that exist in current agency regulations. In virtually all cases where the new regulations depart from prior OMB guidance to agencies, the new regulations reduce burdens on the public, for example, by increasing the threshold for single audits from $500,000 to $750,000.
Based on these considerations, since we are subject to the APA, we have determined that there is good cause to waive the delayed effective date for this final rule.
Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded Mandates Act) (2 U.S.C. 1532) requires that covered agencies prepare a budgetary impact statement before promulgating a rule that includes any Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. If a budgetary impact statement is required, section 205 of the Unfunded Mandates Act also requires covered agencies to identify and consider a reasonable number of regulatory alternatives before promulgating a rule. OMB has determined that the joint interim final rule will not result in expenditures by State, local, and tribal governments, or by the private sector, of $100 million or more in any one year. Accordingly, we have not prepared a budgetary impact statement or specifically addressed the regulatory alternatives considered.
OMB determined that the joint interim final rule did not have any Federalism implications, as required by Executive Order 13132.
For the reasons set forth in the preamble, we are adopting the interim final rule, which was published on December 19, 2014 (available at 79 FR 75871) that amended 2 CFR chapter XXIII and, under the authority of 5 U.S.C. 301, removed and reserved parts 435 and 437 of title 20, chapter III of the Code of Federal Regulations as a final rule without any further changes.
Office of Environment, Health, Safety and Security, U.S. Department of Energy.
Final rule; technical amendment.
The Department of Energy (DOE) is amending the worker safety and health program rule to clarify references in the regulation to the Occupational Safety and Health Administration's permissible exposure limit for beryllium and updating references to organizations and documents. The regulatory amendments do not alter substantive rights or obligations under current law.
This rule is effective on November 10, 2015.
Jacqueline D. Rogers, U.S. Department of Energy, Office of Environment, Health, Safety and Security, Mailstop AU-11, 1000 Independence Ave. SW., Washington, DC 20585, telephone: (202) 586-4714, or Email:
In 2006, when DOE promulgated 10 CFR part 851, “Worker Safety and Health Program,” it adopted the Occupational Safety and Health Administration's (OSHA) permissible exposure limit (PEL) for beryllium in 29 CFR 1910.1000, “Air Contaminants.” Section 851.23(a)(1) of part 851 also requires DOE contractors to comply with the requirements in 10 CFR part 850, “Chronic Beryllium Disease Prevention Program.”
OSHA has published in the
The Department is also making technical amendments to 10 CFR part 851, Appendix A, Section 7, “Biological Safety,” to avoid confusion within the DOE community regarding the correct terminology, the identity of the agency responsible for biohazards, and the correct forms to use for select agents.
This final rule has been approved by the Secretary of Energy.
This regulatory action has been determined not to be “a significant regulatory action” under Executive Order 12866, “Regulatory Planning and Review,” 58 FR 51735 (October 4, 1993). Accordingly, this action was not subject to review under that Executive Order by the Office of Information and Regulatory Affairs (OIRA) of the Office of Management and Budget (OMB).
The Regulatory Flexibility Act (5 U.S.C. 601
The regulatory amendments in this notice of final rulemaking reflect technical amendments, and clarify DOE's intent to continue to only apply OSHA's PEL for beryllium, and to not apply to DOE and DOE contractors any other beryllium-specific OSHA requirements that may be promulgated in the future. Rights and obligations under 10 CFR part 851 are unaltered and as such, are not subject to the requirement for a general notice of proposed rulemaking under the Administrative Procedure Act (5 U.S.C. 553(a)(2)) (APA). There is no requirement under the APA or any other law that this rule be proposed for public comment. Consequently, this rulemaking is exempt from the requirements of the Regulatory Flexibility Act.
This final rule does not impose a collection of information requirement subject to the Paperwork Reduction Act (44 U.S.C. 3501
DOE has concluded that promulgation of this rule falls into a class of actions that would not individually or cumulatively have a significant impact on the human environment, as determined by DOE's regulations implementing the National Environmental Policy Act of 1969 (42 U.S.C. 4321
Executive Order 13132, “Federalism,” 64 FR 43255 (August 10, 1999) imposes certain requirements on agencies formulating and implementing policies or regulations that preempt State law or that have federalism implications. Agencies are required to examine the constitutional and statutory authority supporting any action that would limit the policymaking discretion of the States and carefully assess the necessity for such actions. The Executive Order also requires agencies to have an accountable process to ensure meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications. On March 14, 2000, DOE published a statement of policy describing the intergovernmental consultation process it will follow in the development of such regulations (65 FR 13735). DOE has examined this rule and has determined that it does not preempt State law and does not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. No further action is required by Executive Order 13132.
With respect to the review of existing regulations and the promulgation of new regulations, section 3(a) of Executive Order 12988, “Civil Justice Reform” (61 FR 4729, February 7, 1996), imposes on Federal agencies the general duty to adhere to the following requirements: (1) Eliminate drafting errors and ambiguity; (2) write regulations to minimize litigation; and (3) provide a clear legal standard for affected conduct rather than a general standard and promote simplification and burden reduction. Section 3(b)(2) of Executive Order 12988 specifically requires that Executive agencies make every reasonable effort to ensure that the regulation: (1) Clearly specifies the preemptive effect, if any, to be given to the regulation; (2) clearly specifies any effect on existing Federal law or regulation; (3) provides a clear legal standard for affected conduct while promoting simplification and burden reduction; (4) specifies the retroactive effect, if any, to be given to the regulation; (5) defines key terms; and (6) addresses other important issues affecting clarity and general draftsmanship under any guidelines issued by the Attorney General. Section 3(c) of Executive Order 12988 requires Executive agencies to review regulations in light of applicable standards in section 3(a) and section 3(b) to determine whether they are met or it is unreasonable to meet one or more of them. DOE has completed the required review and determined that, to the extent permitted by law, this final rule meets the relevant standards of Executive Order 12988.
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4)
Section 654 of the Treasury and General Government Appropriations Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family Policymaking Assessment for any rule that may affect family well-being. This rule would not have any impact on the autonomy or integrity of the family as an institution. Accordingly, DOE has concluded that it is not necessary to prepare a Family Policymaking Assessment.
The Treasury and General Government Appropriations Act, 2001 (44 U.S.C. 3516, note) provides for agencies to review most disseminations of information to the public under guidelines established by each agency pursuant to general guidelines issued by OMB. OMB's guidelines were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines were published at 67 FR 62446 (October 7, 2002). DOE has reviewed this final rule under the OMB and DOE guidelines and has concluded that it is consistent with applicable policies in those guidelines.
Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use,” 66 FR 28355 (May 22, 2001) requires Federal agencies to prepare and submit to the OIRA, which is part of OMB, a Statement of Energy Effects for any proposed significant energy action. A “significant energy action” is defined as any action by an agency that promulgates or is expected to lead to promulgation of a final rule, and that: (1) Is a significant regulatory action under Executive Order 12866, or any successor order; and is likely to have a significant adverse effect on the supply, distribution, or use of energy, or (2) is designated by the Administrator of OIRA as a significant energy action. For any proposed significant energy action, the agency must give a detailed statement of any adverse effects on energy supply, distribution, or use should the proposal be implemented, and of reasonable alternatives to the action and their expected benefits on energy supply, distribution, and use. This regulatory action is not a significant energy action. Accordingly, DOE has not prepared a Statement of Energy Effects.
An agency may find good cause to exempt a rule from the requirement for a notice of proposed rulemaking and the opportunity for public comment under the APA if the requirement is determined to be unnecessary, impracticable, or contrary to the public interest under 5 U.S.C. 533(b)(3)(B). The rule clarifies references in 10 CFR part 851 concerning its adoption of provisions found in 29 CFR part 1910, and updates references to organizations and documents. The first change in this rule is to add “Occupational Safety and Health Administration beryllium requirements except for any permissible exposure limit for beryllium in 29 CFR 1910.1000” to the list of exclusions from 10 CFR part 851, found in 10 CFR 851.2. The second change in this rule is the addition of the words “and 29 CFR 1910.1000, Beryllium” at the end of 10 CFR 851.23(a)(3). Safety and Health requirements relating to DOE and DOE contractors' employees' exposure to beryllium are and will continue to be covered by 10 CFR part 850, “Chronic Beryllium Disease Prevention Program.” The updates of referenced organizations and documents in 10 CFR part 851, Appendix A, Section 7 are strictly technical amendments. Consequently, good cause exists for issuing this amendment as a final rule as notice and comment is unnecessary.
As required by 5 U.S.C. 801, DOE will submit to Congress a report regarding the issuance of this final rule prior to the effective date set forth at the outset of this rulemaking. The report will state that it has been determined that the rule is not a “major rule” as defined by 5 U.S.C. 801(2).
Civil penalty, Federal buildings and facilities, Occupational safety and health, Safety, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, the Department of Energy amends part 851 of chapter III of title 10 of the Code of Federal Regulations as set forth below:
42 U.S.C. 2201(i)(3), (p); 42 U.S.C. 2282c; 42 U.S.C. 5801
(d) This part does not require compliance with any Occupational Safety and Health Administration beryllium requirement except for any permissible exposure limit for beryllium in 29 CFR 1910.1000.
7. * * *
(a) * * *
(3) Provides for submission to the appropriate Head of DOE Field Element, for review and concurrence before transmittal to the Federal Select Agent Program, each Laboratory Registration/Select Agent Program registration application package (APHIS/CDC Form 1, Application for Registration for Possession, Use, and Transfer of Select Agents and Toxins) requesting registration of (or amendment to a previously approved registration) a laboratory facility for the purpose of possessing, using, or transferring biological select agents and/or toxins.
(4) Provides for submission to the appropriate Head of DOE Field Element, a copy of each APHIS/CDC Form 2, Request to Transfer Select Agents and Toxins, upon initial submission of APHIS/CDC Form 2 to a vendor or other supplier requesting or ordering a biological select agent or toxin for transfer, receipt, and handling in the registered facility; and submission to the appropriate Head of DOE Field Element the completed copy of the APHIS/CDC Form 2, documenting final disposition and/or destruction of the select agent or toxin,
In rule document 2015-26607 beginning on page 66128 in the issue of Wednesday, October 28, 2015, make the following corrections:
1. On page 66256, in the second column, in the nineteenth line, “I. Effective Date” should read “VI. Effective Date.”
2. On page 66296, in the third column, in the fourteenth and fifteenth lines, “III. Final Regulatory Flexibility Act Analysis” should read “VIII. Final Regulatory Flexibility Act Analysis”.
3. On page 66305, in the first column, in the 23rd line, “IV. Paperwork Reduction Act” should read “IX. Paperwork Reduction Act”.
Federal Aviation Administration (FAA), DOT.
Final special conditions; request for comments.
These special conditions are issued for the Boeing Model 787-9 airplane. This airplane will have a novel or unusual design feature when compared to the state of technology envisioned in the airworthiness standards for transport-category airplanes. This design feature is airbags mounted to structure to prevent serious injury. The applicable airworthiness regulations do not contain adequate or appropriate safety standards for this design feature. These special conditions contain the additional safety standards that the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards.
This action is effective on Boeing on November 10, 2015. We must receive your comments by December 28, 2015 using any of the following methods:
•
•
•
•
Jeff Gardlin, FAA, Airframe and Cabin Safety Branch, ANM-115, Transport Airplane Directorate, Aircraft Certification Service, 1601 Lind Avenue SW., Renton, Washington 98057-3356; telephone 425-227-2136; facsimile 425-227-1232.
The FAA has determined that notice of, and opportunity for prior public comment on, these special conditions is impracticable because these procedures would significantly delay issuance of the design approval and thus delivery of the affected airplane.
In addition, the substance of these special conditions has been subject to the public comment process in prior instances with no substantive comments received. The FAA therefore finds that good cause exists for making these special conditions effective upon publication in the
We invite interested people to take part in this rulemaking by sending written comments, data, or views. The most helpful comments reference a specific portion of the special conditions, explain the reason for any recommended change, and include supporting data.
We will consider all comments we receive by the closing date for comments. We may change these special conditions based on the comments we receive.
On July 5, 2009, The Boeing Company applied for a change to type certificate no. T00021SE for structure-mounted airbags in the Model 787-9 airplane. The Model 787-9 airplane, which is a derivative of the Model 787 series currently approved under type certificate no. T00021SE, has a maximum passenger capacity of 420 passengers and a maximum takeoff weight of 557,000 lbs.
Under the provisions of Title 14, Code of Federal Regulations (14 CFR) 21.101, The Boeing Company must show that the 787-9, as changed, continues to meet the applicable provisions of the regulations reference listed in type certificate no. T00021SE or the applicable regulations in effect on the date of application for the change, except for earlier amendments as agreed upon by the FAA.
The certification basis includes certain special conditions, exemptions, or later amended sections of the applicable part that are not relevant to these special conditions.
If the Administrator finds that the applicable airworthiness regulations (
Special conditions are initially applicable to the model for which they are issued. Should the type certificate
In addition to the applicable airworthiness regulations and special conditions, the Model 787-9 airplane must comply with the fuel-vent and exhaust-emission requirements of 14 CFR part 34 and the noise-certification requirements of 14 CFR part 36.
The FAA issues special conditions, as defined in 14 CFR 11.19, in accordance with § 11.38, and they become part of the type certification basis under § 21.101.
The Model 787-9 airplane will incorporate the following novel or unusual design feature: Airbags mounted to structure to prevent head injury.
Boeing proposes to install structure-mounted airbags instead of inflatable lap belts as a means to protect each occupant from serious injury in the event of an emergency landing, as required by § 25.562(c)(5), on 787-9 airplanes equipped with B/E Aerospace Super-Diamond Model business-class passenger seats.
Such use of airbags to provide injury protection for the occupant is a novel or unusual feature for this airplane model, and the applicable airworthiness regulations do not contain adequate or appropriate airworthiness standards for these design features. Therefore, special conditions are needed to address requirements particular to installation of airbags in this manner.
Special conditions exist for airbags installed on seat belts, known as inflatable lap belts, which have been installed on Boeing passenger seats. Structure-mounted airbags, although a novel design, were first introduced on Jetstream Aircraft Limited Model 4100 series airplanes, which resulted in issuance of Special Conditions 25-ANM-127 on May 14, 1997. These special conditions supplemented 14 CFR part 25 and, more specifically, §§ 25.562 and 25.785.
The structure-mounted airbag, similar to the inflatable lap belt, is designed to limit occupant forward excursion in the event of an emergency landing. These airbags will reduce the potential for serious injury, including reducing the head injury criterion (HIC) measurement defined in part 25. However, structure-mounted airbags function similarly as automotive airbags, where the airbag deploys from the furniture that is in front of the passenger, relative to the airplane's direction of flight, forming a barrier between the structure and occupant. Also, unlike the inflatable lap belt, the structure-mounted airbag does not move with the occupant. To account for out-of-position and brace-position occupants, the airbag is designed to conform to the curvature of the exposed structure in the head-strike zone.
Because the airbag system is essentially a single-use device, it could deploy under crash conditions that are not sufficiently so severe as to require the injury protection the airbag system provides. Because an actual crash is frequently composed of a series of impacts before the airplane comes to rest, a larger impact following the initial impact could render the airbag system unavailable. This potential situation does not exist with standard upper-torso restraints, which tend to provide continuous protection regardless of impact severity, or number of impacts, in a crash event. Therefore, the airbag-system installation should be such that it provides protection, when it is required, by not expending its protection when it is not required. If the airbag deployment threshold is unnecessarily low, the airbag would need to continue to provide protection when an impact requiring protection occurs.
These special conditions contain the additional safety standards that the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards.
As discussed above, these special conditions are applicable to the Boeing Model 787-9 airplane. Should The Boeing Company apply at a later date for a change to the type certificate to include another model incorporating the same novel or unusual design feature, these special conditions would apply to that model as well.
This action affects only certain novel or unusual design features on one model series of airplane. It is not a rule of general applicability.
Under standard practice, the effective date of final special conditions would be 30 days after the date of publication in the
Aircraft, Aviation safety, Reporting and recordkeeping requirements.
49 U.S.C. 106(g), 40113, 44701, 44702, 44704.
Accordingly, pursuant to the authority delegated to me by the Administrator, the following special conditions are issued as part of the type certification basis for Boeing Model 787-9 airplanes.
1. The applicant must demonstrate by test that the structure-mounted airbag will deploy and provide protection under crash conditions where it is necessary to prevent serious injury to a 50th percentile occupant, as specified in § 25.562. The means of protection must provide a consistent approach to energy absorption for a range of occupants, from a two-year-old child to a 95th percentile male.
2. The structure-mounted airbag must provide adequate protection for each occupant regardless of the number of occupants of the seat assembly.
3. The structure-mounted airbag system must not be susceptible to inadvertent deployment as a result of wear and tear, or inertial loads resulting from in-flight or ground maneuvers (including gusts and hard landings) likely to be experienced in service.
4. Deployment of the structure-mounted airbag must not introduce hazards or injury mechanisms to the seated occupant, including occupants in the brace position. Deployment of the structure-mounted airbag must also not result in injuries that could impede rapid exit from the airplane.
5. The applicant must demonstrate that an inadvertent deployment that could cause injury to a standing or sitting person is improbable. Inadvertent deployment must not cause injury to anyone who may be positioned close to the structure-mounted airbag (
6. Effects of the deflection and deformation of the structure to which the airbag is attached must be taken into account when evaluating deployment and location of the inflated airbag. The effect of loads imposed by airbag
7. Inadvertent deployment of the structure-mounted airbag during the most critical part of flight will either not cause a hazard to the airplane or is extremely improbable.
8. The applicant must demonstrate that the structure-mounted airbag, when deployed, does not impair access to the seatbelt- or harness-release means, and must not hinder evacuation. This will include consideration of adjacent seat places and the aisle.
9. The airbag, once deployed, must not adversely affect the emergency-lighting system, and must not block escape-path lighting to the extent that the light(s) no longer meet their intended function.
10. The structure-mounted airbag must not impede occupants' rapid exit from the airplane 10 seconds after its deployment.
11. Where structure-mounted airbag systems are installed in or close to passenger evacuation routes (other than for the passenger seat for which the airbag is installed), possibility of impact on emergency evacuation (
12. The airbag electronic system must be designed to be protected from lightning per 14 CFR 25.1316(b), and high-intensity radiated fields (HIRF) per 14 CFR 25.1317(c).
13. The structure-mounted airbag system must not contain or release hazardous quantities of gas or particulate matter into the cabin.
14. The structure-mounted airbag installation must be protected from the effects of fire such that no hazard to occupants will result.
15. The inflatable bag material must meet the 2.5-inches-per-minute horizontal flammability test defined in 14 CFR part 25, appendix F, part I, paragraph (a)(1)(iv).
16. The design of the structure-mounted airbag system must protect the mechanisms and controls from external contamination associated with that which could occur on or around passenger seating.
17. The structure-mounted airbag system must have a means to verify the integrity of the structure-mounted airbag activation system.
18. The applicant must provide installation limitations to ensure installation compatibility between the seat design and opposing monument or structure.
Federal Aviation Administration (FAA), Department of Transportation (DOT).
Final rule.
We are superseding Airworthiness Directive (AD) AD 2014-20-13 for certain Pacific Aerospace Limited Model 750XL airplanes. This AD results from mandatory continuing airworthiness information (MCAI) issued by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as fatigue cracks on the fin forward pickup plates, which could cause it to fail. We are issuing this AD to require actions to address the unsafe condition on these products.
This AD is effective December 15, 2015.
The Director of the Federal Register approved the incorporation by reference of a certain publication listed in the AD as of December 15, 2015.
You may examine the AD docket on the Internet at
For service information identified in this AD, contact Pacific Aerospace Limited, Airport Road, Hamilton, Private Bag 3027, Hamilton 3240, New Zealand, phone: +64 7 843 6144; fax: +64 7 843 6134; email:
Karl Schletzbaum, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816) 329-4123; fax: (816) 329-4090; email:
We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to add an AD that would apply to certain Pacific Aerospace Limited Model 750XL airplanes. That NPRM was published in the
Since we issued AD 2014-20-13, Amendment 39-17986 (79 FR 60329, October 7, 2014), Pacific Aerospace Limited has revised the related service information and developed a terminating action for the repetitive inspections.
The Civil Aviation Authority (CAA), which is the aviation authority for New Zealand, has issued AD DCA/750XL/18A, dated August 4, 2015 (referred to after this as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states:
DCA/750XL/18A revised to add note 2 and introduce minor editorial changes. This AD supersedes DCA/750XL/18 and DCA/750XL/16A to introduce the requirements in Pacific Aerospace Limited Mandatory Service Bulletin (MSB) PACSB/XL/068 issue 5, dated 29 June 2015. The revised MSB introduces a life limit for fin forward pickup P/N 11-10281-1 and reduces the torque setting for the fin forward pickup bolt to alleviate some of the loads applied to the pickup. The MSB also introduces a replacement fin forward pickup P/N 11-03375-1 which is not life limited.
You may examine the MCAI on the Internet at
We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM (80 FR 51966, August 27, 2015) or on the determination of the cost to the public.
We reviewed the relevant data and determined that air safety and the public interest require adopting the AD as proposed except for minor editorial changes. We have determined that these minor changes:
• Are consistent with the intent that was proposed in the NPRM (80 FR 51966, August 27, 2015) for correcting the unsafe condition; and
• Do not add any additional burden upon the public than was already proposed in the NPRM (80 FR 51966, August 27, 2015).
We reviewed Pacific Aerospace Limited Mandatory Service Bulletin PACSB/XL/068, Issue 5, dated June 29, 2015. The service bulletin describes procedures for reducing the torque setting for the fin forward pickup bolt. The service bulletin also introduces a new, improved replacement fin forward pickup plate, part number (P/N) 11-0375-1, to replace P/N 11-10281-1. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the
We estimate that this AD will affect 18 products of U.S. registry. We also estimate that it will take about 22 work-hours per product to comply with all the requirements of this AD. The average labor rate is $85 per work-hour. Required parts will cost about $1,692 per product.
Based on these figures, we estimate the cost of this AD on U.S. operators to be $64,116, or $3,562 per product.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
We determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed above, I certify this AD:
(1) Is not a “significant regulatory action” under Executive Order 12866,
(2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),
(3) Will not affect intrastate aviation in Alaska, and
(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
You may examine the AD docket on the Internet at
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
This Airworthiness Directive (AD) becomes effective December 15, 2015.
This AD replaces AD 2014-20-13, Amendment 39-17986 (79 FR 60329, October 7, 2014).
This AD applies to Pacific Aerospace Limited Model 750XL airplanes, all serial numbers through XL-193, XL-195, and XL-197, certificated in any category.
Air Transport Association of America (ATA) Code 53: Fuselage.
This AD was prompted by mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as fatigue cracks on the fin forward pickup plates. We are issuing this AD to detect and correct cracked fin forward pickup plates to prevent failure of the fin forward pickup plates, which could result in reduced control.
Unless already done, do the actions in paragraphs (f)(1) through (f)(4) of this AD:
(1) Within the next 150 hours time-in-service (TIS) after December 15, 2015 (the effective date of this AD), reduce the fin forward pickup bolt torque following the procedures in section 1.D., paragraphs A. 1) and A. 2) of the PLANNING INFORMATION in Pacific Aerospace Limited Mandatory Service Bulletin PACSB/XL/068, Issue 5, dated June 29, 2015.
(2) At or before reaching 2,000 hours total time-in-service (TTIS) or within the next 150 hours TIS after December 15, 2015 (the effective date of this AD), whichever occurs later, and repetitively thereafter at intervals not to exceed 600 hours TIS or 12 months, whichever occurs first, do a detailed visual inspection and liquid penetrant inspection of the fin forward pickup plates for any evidence of cracking. Do the inspections following the procedures in sections 2.A. and 2.B. of the ACCOMPLISHMENT INSTRUCTIONS in Pacific Aerospace Limited Mandatory Service Bulletin PACSB/XL/068, Issue 5, dated June 29, 2015.
(3) If cracks are found during any inspection required in paragraph (f)(2) of this AD, before further flight, replace the fin forward pickup plates with new fin forward pickup plates, part number (P/N) 11-03375-1. Do the replacement following the procedures in section 2.C. of the ACCOMPLISHMENT INSTRUCTIONS in Pacific Aerospace Limited Mandatory Service Bulletin PACSB/XL/068, Issue 5, dated June
(4) If no cracks are found during any inspection required in paragraph (f)(2) of this AD, at or before reaching 6,000 hours TTIS or within the next 600 hours TIS after December 15, 2015 (the effective date of this AD), whichever occurs later, replace the fin forward pickup plates, P/N 11-10281-1, with P/N 11-03375-1. Do the replacement following the procedures in section 2.D. of the ACCOMPLISHMENT INSTRUCTIONS in Pacific Aerospace Limited Mandatory Service Bulletin PACSB/XL/068, Issue 5, dated June 29, 2015. This replacement terminates the repetitive inspections required in paragraph (f)(2) of this AD .
The following provisions also apply to this AD:
(1)
(2)
Refer to MCAI Civil Aviation Authority (CAA) AD DCA/750XL/18A, dated August 4, 2015, for related information. You may examine the MCAI on the Internet at
(1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
(2) You must use this service information as applicable to do the actions required by this AD, unless the AD specifies otherwise.
(i) Pacific Aerospace Limited Mandatory Service Bulletin PACSB/XL/068, Issue 5, dated June 29, 2015.
(ii) Reserved.
(3) For Pacific Aerospace Limited service information identified in this AD, contact Pacific Aerospace Limited, Airport Road, Hamilton, Private Bag 3027, Hamilton 3240, New Zealand, phone: +64 7 843 6144; fax: +64 7 843 6134; email:
(4) You may view this service information at FAA, Small Airplane Directorate, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call 816-329-4148. In addition, you can access this service information on the Internet at
(5) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to:
Federal Aviation Administration (FAA), DOT.
Final rule.
We are adopting a new airworthiness directive (AD) for Sikorsky Aircraft Corporation (Sikorsky) Model 269A, 269A-1, 269B, 269C, 269C-1, 269D, and TH-55A helicopters. This AD requires repetitively inspecting and lubricating the tail rotor (T/R) driveshaft splined fittings. This AD was prompted by a report that the T/R driveshaft can disconnect due to deterioration of the splined coupling. The actions are intended to detect and prevent excessive wear of the splined coupling, which could lead to failure of the T/R driveshaft and subsequent loss of control of the helicopter.
This AD is effective December 15, 2015.
The Director of the Federal Register approved the incorporation by reference of certain documents listed in this AD as of December 15, 2015.
For service information identified in this AD, contact Sikorsky Aircraft Corporation, Customer Service Engineering, 124 Quarry Road, Trumbull, CT 06611; telephone 1-800-Winged-S or 203-416-4299; email
You may examine the AD docket on the Internet at
Stephen Kowalski, Aviation Safety Engineer, New York Aircraft Certification Office, Engine & Propeller Directorate, 1600 Stewart Ave., Suite 410, Westbury, NY 11590; telephone (516) 228-7327; email
On April 22, 2015, at 80 FR 22436, the
Since the NPRM was issued, the FAA Southwest Regional Office has relocated. We have revised the contact information throughout this Final Rule to reflect the new address.
We gave the public the opportunity to participate in developing this AD, but we did not receive any comments on the NPRM (80 FR 22436, April 22, 2015).
We have reviewed the relevant information and determined that an unsafe condition exists and is likely to exist or develop on other products of these same type designs and that air safety and the public interest require adopting the AD requirements as proposed.
We reviewed Sikorsky 269 Alert Service Bulletin (ASB) B-299.1 for Model 269A, 269A-1, 269B, 269C, and TH-55A helicopters; 269C-1 ASB C1B-036.1 for Model 269C-1 helicopters; and 269D ASB DB-041.1 for Model 269D helicopters, each Revision 1 and dated February 24, 2012. Each ASB describes procedures for cleaning, inspecting, and lubricating the forward and aft T/R driveshaft splined fittings and returning to Sikorsky any parts that exceed wear limits. Each ASB also requires implementing a 100-hour TIS recurring inspection of the T/R driveshaft, coupling and internal stop, coupling drive splines, and the pinion nut by following the procedures in each model helicopter's Handbook of Maintenance Instructions. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the
The Sikorsky ASBs require returning any splined fittings that exceed wear limits to Sikorsky, while this AD requires replacing those fittings and the T/R driveshaft.
We estimate that this AD will affect 1,085 helicopters of U.S. Registry. We estimate that operators may incur the following costs in order to comply with this AD. At an average labor rate of $85 per work-hour, inspecting and lubricating the T/R driveshaft splined fittings requires 1.8 hours, for a cost per helicopter of $153 and a total cost of $166,005 for the fleet. Inspecting the grease fittings requires 0.25 hour, for a cost of $21 per helicopter and a total cost of $22,785 for the fleet. Inspecting the driveshaft, fittings, internal stops, and drive spines requires 1.8 hours, for a cost per helicopter of $153 and a total cost of $166,005 for the fleet, per inspection cycle.
If required, replacing the T/R driving spline and driveshaft requires 1.6 work-hours, and required parts will cost about $14,853, for a cost per helicopter of $14,989.
If required, replacing a T/R driven spline and driveshaft requires 1.5 work-hours, and required parts will cost about $14,836, for a cost per helicopter of $14,964.
If required, replacing a grease fitting requires about 0.25 work-hour, and required parts will cost about $5, for a cost per helicopter of $26.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed above, I certify that this AD:
(1) Is not a “significant regulatory action” under Executive Order 12866;
(2) Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979);
(3) Will not affect intrastate aviation in Alaska to the extent that it justifies making a regulatory distinction; and
(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
We prepared an economic evaluation of the estimated costs to comply with this AD and placed it in the AD docket.
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
This AD applies to Sikorsky Aircraft Corporation (Sikorsky) Model 269A, 269A-1, 269B, 269C, 269C-1, 269D, and TH-55A helicopters, certificated in any category.
This AD defines the unsafe condition as insufficient lubrication of a tail rotor (T/R) driveshaft splined fitting. This condition could result in excessive wear of the T/R driveshaft splines, which could lead to failure of the T/R driveshaft and subsequent loss of control of the helicopter.
This AD becomes effective December 15, 2015.
You are responsible for performing each action required by this AD within the specified compliance time unless it has already been accomplished prior to that time.
(1)Within 100 hours time-in-service (TIS):
(i) Inspect each T/R driveshaft splined fitting for a crack, a break, excessive wear,
(ii) If installed, inspect each T/R driveshaft grease fitting for looseness, presence of a check ball inside each fitting, and for proper operation and seating of each check ball. If any grease fitting is loose, missing a check ball, fails to properly operate, or if a check ball fails to seat, before further flight, replace the grease fitting.
(iii) Lubricate each driveshaft fitting by following the Accomplishment Instructions, paragraph 3.B.(6), of Sikorsky 269 ASB B-299.1 for Model 269A, 269A-1, 269B, 269C, and TH-55A helicopters; 269C-1 ASB C1B-036.1 for Model 269C-1 helicopters; or 269D ASB DB-041.1 for Model 269D helicopters, each Revision 1 and dated February 24, 2012.
(2) Within 100 hours TIS after the inspections required by paragraph (e)(1) of this AD, and thereafter at intervals not exceeding 100 hours TIS:
(i) Remove the driveshaft from the gearbox and clean any grease from each end fitting.
(ii) Inspect the driveshaft for straightness, a twist, and a scratch. If the driveshaft has any bends, twists, or scratches, before further flight, replace the driveshaft.
(iii) Inspect the internal splines of each forward and aft fitting and each internal stop for wear. If there is any wear, before further flight, replace the fitting.
(iv) Inspect the drive splines of each splined drive fitting for wear. If there is any wear, before further flight, replace the splined drive fitting.
(v) Loosen the aft frame clamp and apply a torque of 750 to 1,000 inch-pounds to each main transmission aft pinion nut.
(1) The Manager, New York Aircraft Certification Office, FAA, may approve AMOCs for this AD. Send your proposal to: Stephen Kowalski, Aviation Safety Engineer, New York Aircraft Certification Office, Engine & Propeller Directorate, 1600 Stewart Ave., Suite 410, Westbury, NY 11590; telephone (516) 228-7327; email
(2) For operations conducted under a 14 CFR part 119 operating certificate or under 14 CFR part 91, subpart K, we suggest that you notify your principal inspector, or lacking a principal inspector, the manager of the local flight standards district office or certificate holding district office before operating any aircraft complying with this AD through an AMOC.
Joint Aircraft Service Component (JASC) Code: 6500, Tail Rotor Drive.
(1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
(2) You must use this service information as applicable to do the actions required by this AD, unless the AD specifies otherwise.
(i) Sikorsky 269 Alert Service Bulletin (ASB) B-299.1, Revision 1, dated February 24, 2012.
(ii) Sikorsky 269C-1 ASB C1B-036.1, Revision 1, dated February 24, 2012.
(iii) Sikorsky 269D ASB DB-041.1, Revision 1, dated February 24, 2012.
(3) For Sikorsky service information identified in this AD, contact Sikorsky Aircraft Corporation, Customer Service Engineering, 124 Quarry Road, Trumbull, CT 06611; telephone 1-800-Winged-S or 203-416-4299; email
(4) You may view this service information at FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N-321, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call (817) 222-5110.
(5) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call (202) 741-6030, or go to:
Federal Aviation Administration (FAA), Department of Transportation (DOT).
Final rule.
We are adopting a new airworthiness directive (AD) for all Airbus Model A318, A319, A320, and A321 series airplanes. This AD was prompted by a report of skin disbonding on a composite side shell panel of a rudder. This AD requires an inspection to determine if any rudder composite side shell panel has been repaired, a thermography inspection of each rudder that has received this repair, and related investigative and corrective actions if necessary. We are issuing this AD to detect and correct skin disbonding on the rudder, which could affect the structural integrity of the rudder, possibly resulting in reduced control of the airplane.
This AD becomes effective December 15, 2015.
The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of December 15, 2015.
You may examine the AD docket on the Internet at
For service information identified in this AD, contact Airbus, Airworthiness Office—EIAS, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 44 51; email
Sanjay Ralhan, Aerospace Engineer, International Branch, ANM-116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057-3356; telephone 425-227-1405; fax 425-227-1149.
We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to all Airbus Model A318 series airplanes, Model A319 series airplanes, Model A320-211, -212, -214, -231, -232, and -233 airplanes, and Model A321 series airplanes. The NPRM published in the
The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Union, has issued EASA Airworthiness Directive 2013-0302, dated December 19, 2013 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for all Airbus Model A318, A319, A320, and A321 series airplanes. The MCAI states:
A case of skin disbonding was reported on a composite side shell panel of a rudder installed on an A310 aeroplane. Investigation results revealed that this disbonding had started from a skin panel area, previously repaired in-service, in accordance with Structural Repair Manual (SRM) instructions. The initial damage was identified as a disbonding between the core and the skin of the repaired area. This damage was not visually detectable and likely propagated during normal operation due to the variation of pressure during ground-air-ground cycles.
Composite rudder side shell panels are also installed on A320 family aeroplanes, which may have been repaired in-service using a similar method.
This condition, if not detected and corrected, could affect the structural integrity of the rudder, possibly resulting in reduced control of the aeroplane.
To address this potential unsafe condition, Airbus issued Service Bulletin (SB) A320-55-1041 to provide instructions to inspect and correct any affected composite rudder side shell panels.
For the reasons described above, this [EASA] AD requires [an inspection to determine if any rudder composite side shell panel has been repaired], a one-time [pulse] thermography inspection of each rudder that have received a composite rudder side shell panel repair, and, depending on the findings, accomplishment of applicable corrective and follow-up actions [related investigative actions and repetitive inspections].
The related investigative actions include elasticity laminate checker (ELCH) inspections, ultrasonic testing (UT) inspections, pulse thermography inspections, and tap test or woodpecker inspections. The repetitive inspections include ELCH inspections, UT inspections, pulse thermography inspections, and detailed inspections (certain repetitive inspections are required if hole restoration is done; certain other repetitive inspections are options for certain corrective actions). The corrective actions include core venting through the inner skin, replacements, restorations, and repairs.
You may examine the MCAI in the AD docket on the Internet at
We gave the public the opportunity to participate in developing this AD. The following presents the comments received on the NPRM (79 FR 49724, August 22, 2014) and the FAA's response to each comment.
Delta Air Lines Inc. (DAL) requested that we change the compliance time in the NPRM (79 FR 49724, August 22, 2014) from 24 months to at least 42 months. DAL stated that the 24-month compliance time for accomplishing rudder inspections will be overly burdensome to operators of large fleets. DAL explained that it has 128 affected units, and if two full-time technicians were assigned for the inspection and rework, it would take over 7 years to accomplish the inspections. DAL added that a 42-month compliance time would allow proper planning, inspection, and rework of affected rudders and suggested that intervisual inspections could be used to support this compliance time extension.
We disagree with the commenter's request. The compliance time is based on a risk assessment. Some safety issues are more time-sensitive than others. We have considered the compliance time established by the EASA (the State of Design authority), and the overall risk to the fleet, including the severity of the identified unsafe condition and the likelihood of the occurrence of the unsafe condition, to determine the compliance time. However, under the provisions of paragraph (p)(1) of this AD, operators may apply for an extension of the compliance time by providing rationale explaining why a compliance time extension provides an acceptable level of safety. We have not changed this AD in this regard.
United Airlines (UAL) and Airbus requested that we revise the NPRM (79 FR 49724, August 22, 2014) to reference Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, as the appropriate source of service information for accomplishing the required actions. Airbus also requested we allow credit for work accomplished prior to the effective date of this AD using Airbus Service Bulletin A320-55-1041, dated November 26, 2012.
Airbus also requested we to revise paragraph (h) of the proposed AD (79 FR 49724, August 22, 2014) to allow local sanding as an alternative to pulse thermography inspections for determining type, location, and size of repair, as described in Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014. Airbus also requested we allow credit for work accomplished prior to the effective date of this AD using Airbus Service Bulletin A320-55-1041, dated November 26, 2012.
We partially agree with the commenters' requests. We agree to reference Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, as the appropriate source of service information for accomplishing the required actions. We have changed paragraphs (h), (i)(2), (j), (j)(1), (j)(2), (k), (l)(1), (l)(2), and (n) of this AD accordingly. We also agree to provide credit for work accomplished prior to the effective date of this AD using Airbus Service Bulletin A320-55-1041, dated November 26, 2012. We have added new paragraph (o) to this AD to provide this credit, and redesignated subsequent paragraphs accordingly.
However, we disagree with Airbus's request to revise paragraph (h) of this AD to allow local sanding as an alternative to pulse thermography inspections for determining type, location, and size of repair. Based on Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, local sanding is an alternative to pulse thermography inspections only in certain specific cases, and it is possible that pulse thermography inspections would be required after the local sanding. However, operators may apply for approval of an alternative method of compliance (AMOC) in accordance with the provisions specified in paragraph (p)(1) of this AD, and must identify clearly the conditions for using local sanding in lieu of pulse thermography inspections.
UAL requested we remove paragraph (n) of the proposed AD (79 FR 49724, August 22, 2014), which prohibits repair in accordance with certain SRM procedures. UAL stated it is unnecessary to prohibit repair per these procedures since the procedures have been deactivated by Airbus.
We disagree with the commenter's request. Deactivation of SRM procedures by the manufacturer cannot ensure prevention of all operators from using the SRM procedures if they have not kept their manual current. We have not changed this AD in this regard.
UAL and DAL requested that we revise the estimated cost. The commenters stated that the NPRM (79 FR 49724, August 22, 2014) understates the required costs and does not provided on-condition cost estimates. UAL and DAL provided some examples of costs incurred for previous repairs.
We disagree with the commenters' request. We indicated in the NPRM (79 FR 49724, August 22, 2014) that we do not have information about the costs associated with the on-condition actions to mitigate the risk addressed in the NPRM. The on-condition costs can vary for each operator, depending upon inspection findings. Therefore, we have not provided on-condition cost estimates; instead, we provided our best estimate for the inspection costs based on the information received from the airframe manufacturer. We have not changed this AD in this regard.
UAL and DAL requested that we remove paragraph (i)(1) of the proposed AD (79 FR 49724, August 22, 2014), which proposed to require sending to Airbus the records for each rudder and serial number of each rudder for which maintenance records are incomplete or unavailable.
Mr. Amaar Chaudhary requested we revise paragraph (i)(1) of the proposed AD (79 FR 49724, August 22, 2014) to require sending only the rudder serial number to Airbus. However, UAL stated that providing such rudder records is not reasonable because the records are embedded within various paper forms in separate archived collections spanning the airplane life of up to 19 years, and are not in a recoverable electronic format. UAL and DAL also explained that it is possible operators have not retained records for permanent rudder repairs earlier than the previous airplane overhaul per section 121.380 of the Federal Aviation Regulations (14 CFR 121.380).
We agree with the commenters' statements that paragraph (i)(1) of this AD should not require sending rudder repair records to Airbus. However, we disagree with the requests to not require submission of serial numbers of rudders without maintenance records to Airbus. Operators must report the rudders without maintenance records by serial number to Airbus to obtain related rudder manufacturing rework data. We have revised paragraph (i)(1) of this AD to specify sending to Airbus the serial number of each rudder for which maintenance records are not available or are incomplete.
DAL requested that we revise paragraph (g) of the proposed AD (79 FR 49724, August 22, 2014) to remove the requirement to inspect repair records, but instead to require directly complying with the pulse thermography inspection proposed by paragraph (i) of the proposed AD.
We disagree with the commenter's request. Paragraph (g) of this AD establishes the requirements for paragraph (h) and (i) of this AD. An operator is required to inspect airplane maintenance records to determine if it needs to comply with paragraph (h) or (i) of this AD. In addition, the required reporting specified in paragraph (i)(1) of this AD will help determine the extent of the undocumented repairs in the affected fleet. Based on the results of these reports, we might determine that further corrective action is warranted. We have not changed this AD in this regard.
DAL requested that we require a part number change for post-inspection rudders to aid in configuration and AD compliance control, and remove the parts installation limitation in paragraph (m) of the proposed AD (79 FR 49724, August 22, 2014). DAL stated that, to prevent an unnecessary airplane out of service condition in the event a rudder change is required, allowing pre- and post-inspection rudders to be installed throughout the full compliance time would provide the same level of safety.
We disagree with the commenter's requests. Configuration control can be achieved by multiple methods and is unique to each operator's method of managing its fleet. Therefore, we have not been prescriptive regarding methods for configuration control. We also disagree to omit paragraph (m) of this AD (Parts Installation Limitation). The intent of the paragraph (m) of this AD is to ensure that, from the effective date of this AD, rudders with a known unsafe condition are not installed unless the corrective actions of paragraph (j) of this AD are completed. This clarification has been coordinated with the EASA. The compliance time is established based on overall risk to the fleet, including the severity of the failure and the likelihood of the failure's occurrence, fleet utilization, and availability of service information and parts. Therefore, the parts installation limitation should not be related to the compliance time associated with mitigating the unsafe condition. We have revised paragraph (m) of this AD to prevent, as of the effective date of this AD, installing a rudder with a known unsafe condition by specifying that the inspection requirements of paragraphs (h) and (i) of this AD must be done and the applicable corrective actions required by paragraph (j) of this AD must be done, except for rudders that meet the requirements of paragraph (k) of this AD.
DAL, Thermal Wave Imaging, and Snell Group requested the use of alternate equipment for performing the pulse thermography inspection required in the NPRM (79 FR 49724, August 22, 2014). DAL stated that, at a recent Airlines for America non-destructive test (NDT) forum, evidence was presented supporting use of alternate equipment for performing pulse thermography inspections. DAL, Thermal Wave Imaging, and Snell Group explained that Airbus prohibits the use of alternate equipment other than what is recommended in the “NTM task 55-40-50-290-801-A-01.”
Thermal Wave Imaging stated that since Airbus is both the manufacturer of the airplane and the vendor of the inspection equipment, it appears that the non-allowance of equivalent equipment is a business decision intended to increase its revenue and lock out other companies from not only this inspection, but future thermography inspections that may be developed. Thermal Wave Imaging and Snell Group provided a comparison of the Airbus recommended Gecko System equipment with VoyageIR Pro equipment for performing the pulse thermography inspection.
We disagree with the commenters' request. The commenters did not provide any substantiation to support the use of alternate inspection equipment other than the equipment recommended by Airbus. We were informed by Airbus that they have recommended the use of specific equipment after evaluating its performance, which will facilitate mitigating the risks associated with the identified unsafe condition. However, we will consider requests for approval
DAL requested that future revisions of Airbus Service Bulletin A320-55-1041 be considered as approved under EASA Design Organization Approval (DOA) for accomplishing the required AD actions.
We disagree with the commenter's request. Approval authority under EASA DOA, as stated in paragraph (p)(2) of this AD, is only applicable to requirements in this AD to obtain corrective actions from the manufacturer and does not apply to approval of future service information. When referring to a specific service bulletin in an AD, using the phrase, “or later approved revisions,” violates Office of the Federal Register regulations for approving materials that are incorporated by reference. However, affected operators may request approval to use a later revision of the referenced service bulletin as an alternative method of compliance, under the provisions of paragraph (p)(1) of this AD. We have not changed this AD in this regard.
As stated previously, we have revised this final rule to reference Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, as the appropriate source of service information for accomplishing the required actions. This service bulletin revision contains certain actions that are specified as Required for Compliance (RC).
The FAA worked in conjunction with industry, under the Airworthiness Directive Implementation Aviation Rulemaking Committee (ARC), to enhance the AD system. One enhancement was a new process for annotating which procedures and tests in the service information are required for compliance with an AD. Differentiating these procedures and tests from other tasks in the service information is expected to improve an owner's/operator's understanding of crucial AD requirements and help provide consistent judgment in AD compliance. The procedures and tests identified as RC in any service information have a direct effect on detecting, preventing, resolving, or eliminating an identified unsafe condition.
As specified in a NOTE under the Accomplishment Instructions of the specified service information, procedures and tests that are identified as RC in any service information must be done to comply with the AD. However, procedures and tests that are not identified as RC are recommended. Those procedures and tests that are not identified as RC may be deviated from using accepted methods in accordance with the operator's maintenance or inspection program without obtaining approval of an alternative method of compliance (AMOC), provided the procedures and tests identified as RC can be done and the airplane can be put back in an airworthy condition. Any substitutions or changes to procedures or tests identified as RC will require approval of an AMOC.
We reviewed the relevant data, considered the comments received, and determined that air safety and the public interest require adopting this AD with the changes described previously and minor editorial changes. We have determined that these minor changes:
• Are consistent with the intent that was proposed in the NPRM (79 FR 49724, August 22, 2014) for correcting the unsafe condition; and
• Do not add any additional burden upon the public than was already proposed in the NPRM (79 FR 49724, August 22, 2014).
We also determined that these changes will not increase the economic burden on any operator or increase the scope of this AD.
Airbus has issued Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014. The service information describes procedures for inspection of the rudders for potential damage, and repair. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the
We estimate that this AD affects 851 airplanes of U.S. registry.
We also estimate that it would take about 42 work-hours per product to comply with the basic requirements of this AD. The average labor rate is $85 per work-hour. Based on these figures, we estimate the cost of this AD on U.S. operators to be $3,038,070, or $3,570 per product.
We have received no definitive data that would enable us to provide cost estimates for the on-condition actions specified in this AD.
A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a current valid OMB control number. The control number for the collection of information required by this AD is 2120-0056. The paperwork cost associated with this AD has been detailed in the Costs of Compliance section of this document and includes time for reviewing instructions, as well as completing and reviewing the collection of information. Therefore, all reporting associated with this AD is mandatory. Comments concerning the accuracy of this burden and suggestions for reducing the burden should be directed to the FAA at 800 Independence Ave. SW., Washington, DC 20591, ATTN: Information Collection Clearance Officer, AES-200.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
We determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and
For the reasons discussed above, I certify that this AD:
1. Is not a “significant regulatory action” under Executive Order 12866;
2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979);
3. Will not affect intrastate aviation in Alaska; and
4. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
You may examine the AD docket on the Internet at
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
This AD becomes effective December 15, 2015.
None.
This AD applies to the Airbus airplanes specified in paragraphs (c)(1) through (c)(4) of this AD, certificated in any category, all manufacturer serial numbers.
(1) Airbus Model A318-111, -112, -121, and -122 airplanes.
(2) Airbus Model A319-111, -112, -113, -114, -115, -131, -132, and -133 airplanes.
(3) Airbus Model A320-211, -212, -214, -231, -232, and -233 airplanes.
(4) Airbus Model A321-111, -112, -131, -211, -212, -213, -231, and -232 airplanes.
Air Transport Association (ATA) of America Code 55, Stabilizers.
This AD was prompted by a report of skin disbonding on a composite side shell panel of a rudder. We are issuing this AD to detect and correct skin disbonding on the rudder, which could affect the structural integrity of the rudder, possibly resulting in reduced control of the airplane.
Comply with this AD within the compliance times specified, unless already done.
Within 24 months after the effective date of this AD: Inspect the airplane maintenance records to determine if the rudder composite side shell panel has been repaired since first installation of the rudder on an airplane.
If the finding of the inspection required by paragraph (g) of this AD reveals that a rudder repair has been done as described in Figure A-GBBAA (Sheet 01 and 02) or Figure A-GBCAA (Sheet 02) of Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014: Within 24 months after the effective date of this AD, do a pulse thermography inspection on the rudder, limited to the repaired area(s), to determine type, location, and size of the repair, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014.
For each rudder for which maintenance records are not available or are incomplete: Do the actions required by paragraphs (i)(1) and (i)(2) of this AD.
(1) Not later than 3 months before accomplishment of the pulse thermography inspection required by paragraph (i)(2) of this AD, send the serial number of each rudder to Airbus.
(2) Within 24 months after the effective date of this AD, do a pulse thermography inspection on complete rudder side shells to identify and mark the repair location, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014.
After accomplishing the inspections required by paragraphs (h) and (i) of this AD, as applicable: Depending on findings, do the applicable actions specified in paragraphs (j)(1) and (j)(2) of this AD, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, except as required by paragraph (l)(2) of this AD. Findings are specified in Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014.
(1) Do all applicable related investigative actions and corrective actions at the applicable times specified in tables 3, 4A, 4B, 4C, 4D, and 5 in paragraph 1.E.(2), “Accomplishment Timescale,” of Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, except as required by paragraph (l)(1) of this AD.
(2) Do all applicable repetitive inspections of the restored and repaired areas at the applicable intervals specified in tables 3, 4A, 4B, 4C, 4D, and 5 in paragraph 1.E.(2), “Accomplishment Timescale,” of Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014.
Airplanes fitted with a rudder having a serial number which is not in the range TS-1001 to TS-1639 inclusive, or TS-2001 to TS-5890 inclusive; or is not TS-5927; are not affected by the requirements of paragraphs (h), (i), and (j) of this AD, provided it is determined that no repairs have been done as described in the structural repair manual (SRM) procedures identified in Figure A-GBBAA (Sheet 01 and 02) or Figure A-GBCAA (Sheet 02) of Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, on the composite side shell panel of that rudder since first installation on an airplane.
(1) Where Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, specifies a compliance time “after the original Service Bulletin issue date,” this AD requires compliance within the specified compliance time after the effective date of this AD.
(2) If any damage or fluid ingress is found during any inspection required by this AD and Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014, specifies to contact Airbus: Before further flight, repair using a method approved by the Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA; or the European Aviation Safety Agency (EASA); or Airbus's EASA Design Organization Approval (DOA). If approved by the DOA, the approval must include the DOA-authorized signature.
As of the effective date of this AD: Except for rudders that meet the requirements of paragraph (k) of this AD, do not install a rudder unless the rudder is inspected prior to installation as specified in paragraphs (h) and (i) of this AD, and all applicable corrective actions required by paragraph (j) of this AD are done.
As of the effective date of this AD, do not accomplish a composite side shell panel repair on any rudder using an SRM
This paragraph provides credit for actions required by paragraphs (h), (i), and (j) of this AD, if those actions were performed before the effective date of this AD using Airbus Service Bulletin A320-55-1041, dated November 26, 2012, which is not incorporated by reference in this AD.
The following provisions also apply to this AD:
(1) Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA Airworthiness Directive 2013-0302, dated December 19, 2013, for related information. This MCAI may be found in the AD docket on the Internet at
(2) Service information identified in this AD that is not incorporated by reference is available at the addresses specified in paragraphs (r)(3) and (r)(4) of this AD.
(1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
(2) You must use this service information as applicable to do the actions required by this AD, unless this AD specifies otherwise.
(i) Airbus Service Bulletin A320-55-1041, Revision 01, dated February 24, 2014.
(ii) Reserved.
(3) For service information identified in this AD, contact Airbus, Airworthiness Office—EIAS, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 44 51; email
(4) You may view this service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For information on the availability of this material at the FAA, call 425-227-1221.
(5) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to:
Federal Aviation Administration (FAA), Department of Transportation (DOT).
Final rule.
The FAA is issuing a final rule that removes certain redundant or underutilized ground-based nondirectional radio beacon (NDB) and VHF omnidirectional range (VOR) Standard Instrument Approach Procedures (SIAPs). On April 13, 2015, the FAA published a notice of proposed rulemaking to remove 736 procedures. After consideration of public comments and conducting an internal review, the FAA has decided to move forward with removing 334 procedures that did not receive public comment. The 198 procedures for which comments were received will be addressed in the future. The FAA also identified 191 procedures that were proposed for removal but that do not meet the criteria at this time. Those 191 procedures may be reevaluated at a later date; however, their removal is withdrawn from consideration in this rule. There are 13 procedures erroneously identified in the NPRM that were already in the process for removal and should not have been included in this proceeding. The FAA concluded that these procedures should continue in the separate proceeding and are not addressed in this final rule.
This rule is effective December 10, 2015. The removal date of each SIAP, associated Takeoff Minimums, and ODP is as specified in the amendatory provisions.
For information on where to obtain copies of rulemaking documents and other information related to this final rule, see “How To Obtain Additional Information” in the
For technical questions concerning this action, contact Mark D. Adams, Aeronautical Navigation Products, AJV-5, Aeronautical Information Services, Federal Aviation Administration, Air Traffic Organization, 6500 S. MacArthur
The FAA's authority to issue rules on aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106 describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority.
This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart i, Section 40103, sovereignty and use of airspace, and Subpart iii, Section 44701, general requirements. Under these sections, the FAA is charged with prescribing regulations to regulate the safe and efficient use of the navigable airspace; to govern the flight, navigation, protection, and identification of aircraft for the protection of persons and property on the ground, and for the efficient use of the navigable airspace (49 U.S.C. 40103(b)), and to promote safe flight of civil aircraft in air commerce by prescribing regulations and minimum standards for other practices, methods, and procedures necessary for safety in air commerce and national security (49 U.S.C. 44701(a)(5)). This action is within the scope of that authority.
SIAPs are promulgated by rulemaking procedures and are incorporated by reference pursuant to 5 U.S.C. 552(a) and 1 CFR part 51 into Title 14 of the Code of Federal Regulations; Part 97 (14 CFR part 97), Subpart C—TERPS Procedures.
On June 27, 2014, the FAA published criteria for determining whether to retain existing SIAPs (79 FR 36576). Removing identified ground-based NDB and VOR SIAPs is an integral part of right-sizing the quantity and type of procedures in the National Airspace System (NAS). As new technology facilitates the introduction of area navigation (RNAV) instrument approach procedures, the number of procedures available in the NAS has nearly doubled over the past decade. The complexity and cost of maintaining the existing ground based navigational infrastructure while expanding RNAV capability is not sustainable.
On April 13, 2015, the FAA published a notice of proposed rulemaking (NPRM) proposing to remove certain SIAPs (80 FR 19577). The NPRM included a list of 736 procedures that were identified for cancellation and the comment period closed on May 28, 2015.
The following 13 SIAPs were proposed for cancellation in the NPRM. In reviewing the procedures and comments, the FAA realized that these 13 procedures were already being processed for cancellation and were at various stages. Additionally, the navigation facilities supporting a number of these procedures were either decommissioned or at various stages of that process. The inclusion of these procedures in the NPRM was in error, in that these procedures were already subject to prior agency commitments. The FAA notes three of these procedures received comment (VOR RWY 18 at Pryor Field Regional, Alabama (DCU); NDB RWY 14 at Montgomery County Airpark, Maryland (GAI); and NDB RWY 27 at Athens/Ben Epps, Georgia (AHN)) concerning lack of backup instrument flight procedures in case of instrument landing system failure, impacts to instrument flight training, and reduced airport access. The FAA confirms that for each of the three above affected procedures, the airports continue to maintain at least one other ground based procedure. In addition, there remain procedures available within a 20 nm radius of these airports for instrument flight training. The procedures are listed below with the associated
The FAA proposed to cancel 191 procedures listed in the following table. However, after further consideration and a reevaluation of the policy criteria described in the June 27, 2014, statement of policy, the FAA has determined that these procedures do not meet the criteria at this time. Therefore these procedures will remain in effect and are not included in this final rule; however the FAA may reevaluate these procedures at a later date.
Lastly, the FAA received comments on 198 SIAPs that are still under review. Once the agency has made a determination on those procedures, and if warranted, the FAA will issue a final rule cancelling any subject procedures. For the remaining 335 SIAPs proposed in the NPRM upon which no comments were received, the FAA has decided to proceed with cancellation of those procedures.
SIAPs and associated supporting data adopted or removed by the FAA are documented on FAA Forms 8260-3, 8260-4, and 8260-5, which are incorporated by reference under 5 U.S.C. 552(a), 1 CFR part 51, and 14 CFR part 97. The following procedures did not receive any comments and the FAA has determined that they should be removed consistent with FAA policy on maintaining instrument approach procedures in the NAS. Additionally, the list can be viewed on the Aeronautical Information Services IFP Announcements and Reports Web page at the following link,
The FAA has determined that this final rule only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore—(1) is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979) and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. For the same reason, the FAA certifies that this amendment will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
An electronic copy of rulemaking documents may be obtained from the Internet by—
1. Searching the Federal eRulemaking Portal (
2. Visiting the FAA's Regulations and Policies Web page at
3. Accessing the Government Publishing Office's Web page at
Copies may also be obtained by sending a request to the Federal Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence Avenue SW., Washington, DC 20591, or by calling (202) 267-9677. Persons requesting additional information must identify the docket or amendment number of this rulemaking.
All documents the FAA considered in developing this rule, including technical reports, may be accessed from the Internet through the Federal eRulemaking Portal referenced in item (1) above.
Comments received may be viewed by going to
The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996 requires FAA to comply with small entity requests for information or advice about compliance with statutes and regulations within its jurisdiction. A small entity with questions regarding this document, may contact its local FAA official, or the person listed under the
Air traffic control, Airports, Incorporation by reference, Navigation (air).
Accordingly, pursuant to the authority delegated to me, Title 14, Code of Federal Regulations, Part 97 (14 CFR part 97) is amended by removing Standard Instrument Approach Procedures and/or Takeoff Minimums and Obstacle Departure Procedures effective at 0901 UTC on the dates specified, as follows:
49 U.S.C. 106(f), 106(g), 40103, 40106, 40113, 40114, 40120, 44502, 44514, 44701, 44719, 44721-44722.
The following procedures will be removed effective December 10, 2015.
The following procedures will be removed effective February 04, 2016.
The following procedures will be removed effective March 31, 2016.
In Title 15 of the Code of Federal Regulations, Parts 300 to 799, revised as of January 1, 2015, on page 208, in § 730.8, in paragraph (c), remove the first instance of the phrase: “General information including assistance in understanding the EAR, information on how to obtain forms, electronic services, publications, and information on training programs offered by BIS, is available from the Office of Export Services at the following locations:”
In Title 15 of the Code of Federal Regulations, Parts 300 to 799, revised as of January 1, 2015, on page 233, in § 734.4, in paragraph (a)(4), add the term “ECCN” before “9E003.a.1”.
State Department.
Final rule.
This rule is promulgated to clarify the circumstances in which a consular officer and the Deputy Assistant Secretary for Visa Services may waive the requirement for a nonimmigrant visa interview.
This rule is effective November 10, 2015.
Lauren A. Boquin, Legislation and Regulations Division, Visa Services, Bureau of Consular Affairs, Department of State, 600 19th St. NW., Washington, DC 20006, (202) 485-7638.
The Immigration and Nationality Act (INA), at section 222(h), sets out detailed requirements for in-person interviews of applicants for nonimmigrant visas. This rule amends 22 CFR 41.102 to be consistent with INA 222(h). It is also amended to reflect delegation of the Secretary of State's authority under INA section 222(h)(1)(C)(ii) to waive visa interviews upon a determination that a waiver is necessary as a result of unusual or emergent circumstances. In a delegation of authority dated August 20, 2012 (77 FR 52379), the Secretary authorized the Assistant Secretary for Consular Affairs to waive in-person visa interviews under such circumstances, which would include humanitarian crises or medical emergencies. The delegation also included authority to re-delegate, and the authority was re-delegated to the Deputy Assistant Secretary for Visa Services.
Paragraph (b) of section 41.102 is amended to add Taipei Economic and Cultural Representative Office (TECRO) nonimmigrants classifiable as E-1 visa holders, since such nonimmigrants are equivalent to diplomatic or official visa holders. Paragraph (c) was inserted to reflect the Secretary's undelegated authority to waive the personal appearance requirement in the national interest. The amended paragraph (d) of this regulation reflects the full scope of the Deputy Assistant Secretary for Visa Services' waiver authority, consistent with the above-referenced delegations. Paragraph (e) revised the prior paragraph (d) to reflect the revised structure of the regulation and to be consistent with the authority in INA 222(h) on overcoming prior refusals.
This regulation involves a foreign affairs function of the United States and, therefore, in accordance with 5 U.S.C. 553(a)(1), is exempt from the requirements of 5 U.S.C. 553. In addition, since this rulemaking relates to rules of Department organization, procedure, or practice, it is exempt from notice-and-comment rulemaking in accordance with 5 U.S.C. 553(b). Finally, since this rulemaking is exempt from section 553, the provisions of 5 U.S.C. 553(d) do not apply, and this rulemaking is effective immediately.
Because this final rule is exempt from notice-and-comment rulemaking under 5 U.S.C. 553, it is exempt from the Regulatory Flexibility Act (5 U.S.C. 603 and 604). Nonetheless, consistent with the Regulatory Flexibility Act (5 U.S.C. 605(b)), the Department certifies that this rule will not have a significant economic impact on a substantial number of small entities.
The Unfunded Mandates Reform Act of 1995 (codified at 2 U.S.C. 1532) generally requires agencies to prepare a statement before proposing any rule that may result in an annual expenditure of $100 million or more by State, local, or tribal governments, or by the private sector. This rule will not result in any such expenditure, nor will it significantly or uniquely affect small governments.
This rule is not a major rule as defined by 5 U.S.C. 804. The Department is aware of no monetary effect on the economy that will result from this rulemaking.
The Department of State has reviewed this rule to ensure its consistency with the regulatory philosophy and principles set forth in Executive Order 12866, and has determined that the benefits of this regulation outweigh any cost. The Department has considered this rule in light of Executive Order 13563 and affirms that this regulation is consistent with the guidance therein. The Department does not consider this rule to be a significant rulemaking action.
This regulation will not have substantial direct effects on the States, on the relationship between the national government and the States, or the distribution of power and responsibilities among the various levels of government. The rule will not have federalism implications warranting the application of Executive Orders 12372 and 13132.
The Department has reviewed the regulation in light of sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate ambiguity, minimize litigation, establish clear legal standards, and reduce burden.
This rule does not impose any new information collection requirements under the provisions of the Paperwork Reduction Act, 44 U.S.C. Chapter 35.
Aliens, Foreign officials, Immigration, Documentation of nonimmigrants, Passports and visas.
For the reasons stated in the preamble, the Department of State amends 22 CFR part 41 to read as follows:
22 U.S.C. 2651a; 8 U.S.C. 1104; Pub. L. 105-277, 112 Stat. 2681-795 through 2681-801; 8 U.S.C. 1185 note (sec. 7209 of Pub. L. 108-458, as amended by sec. 546 of Pub. L. 109-295).
(a) Except when the requirement of personal appearance has been waived pursuant to paragraph (b), (c), or (d) of this section, each applicant for a nonimmigrant visa who is at least 14 years of age and not more than 79 years of age must personally appear before and be interviewed by a consular officer, who shall determine on the basis of the applicant's representations, the visa application and other relevant documentation:
(1) The proper nonimmigrant classification, if any, of the alien; and
(2) The alien's eligibility to receive a visa.
(b) Waivers of personal appearance by consular officers. Except as provided in paragraph (e) of this section or as otherwise instructed by the Deputy Assistant Secretary of State for Visa Services, a consular officer may waive the requirement of personal appearance if the consular officer concludes the alien presents no national security concerns requiring an interview and:
(1) Is within a class of nonimmigrants classifiable under the visa symbols A-1, A-2, C-2, C-3 (except attendants, servants, or personal employees of accredited officials), G-1, G-2, G-3, G-4, NATO-1, NATO-2, NATO-3, NATO-4, NATO-5, NATO-6, or is a Taipei Economic and Cultural Representative Office (TECRO) nonimmigrant classifiable under visa symbol E-1, and is seeking a visa in such classification; or
(2) Is an applicant for a diplomatic or official visa as described in § 41.26 or § 41.27 of this chapter; or
(3) Is an applicant who is within 12 months of the expiration of the applicant's previously issued visa and:
(i) Is seeking re-issuance of a nonimmigrant visa in the same classification;
(ii) Is applying at the consular post of the applicant's usual residence; and
(iii) Is an applicant for whom the consular officer has no indication of visa ineligibility or of noncompliance with U.S. immigration laws and regulations.
(c) Waivers of personal appearance in the national interest. Except as provided in paragraph (e) of this section, the Secretary may waive the requirement of personal appearance of an individual applicant or a class of applicants if the Secretary determines that such waiver is in the national interest of the United States.
(d) Waivers of personal appearance in unusual or emergent circumstances. Except as provided in paragraph (e) of this section, the Deputy Assistant Secretary for Visa Services may waive the requirement of personal appearance of an individual applicant or a class of applicants if the Deputy Assistant Secretary determines that such waiver is necessary as a result of unusual or emergent circumstances.
(e) Cases in which personal appearance may not be waived. Except for a nonimmigrant applicant whose personal appearance is waived under paragraphs (b)(1), (b)(2), or (c) of this section, the personal appearance requirement may not be waived for:
(1) Any nonimmigrant applicant who is not a national or resident of the country in which he or she is applying.
(2) Any nonimmigrant applicant who was previously refused a visa, is listed in CLASS, or otherwise requires a Security Advisory Opinion, unless:
(i) The visa was refused and the refusal was subsequently overcome; or
(ii) The alien was found inadmissible, but the inadmissibility was waived.
(3) Any nonimmigrant applicant who is from a country designated by the Secretary of State as a state sponsor of terrorism, regardless of age, or who is a member of a group or sector designated by the Secretary of State under section 222(h)(2)(F) of the Immigration and Nationality Act.
Final rule.
The Bureau of Indian Affairs is updating its regulations governing its Housing Improvement Program, which is a safety-net program that provides grants for repairing, renovating, or replacing existing housing and for providing new housing. This final rule is an important part of the
This rule is effective December 10, 2015.
Mr. Les Jensen, Division of Housing Assistance, Bureau of Indian Affairs at (907) 586-7397. Individuals who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service at 1 (800) 877-8339 between 8 a.m. and 4 p.m. Monday through Friday, excluding Federal holidays.
The Housing Improvement Program (HIP) is a safety-net program that provides grants for the cost of services to repair, renovate, or replace existing housing and provide new housing for eligible members of federally recognized Indian tribes. The BIA administers the HIP under the regulations at 25 CFR part 256. The BIA distributes HIP funding based on a priority ranking derived from a point system to identify those individuals and families most in need of housing assistance. Funding is restricted to individuals and families that reside in the tribe's service area. In Fiscal Year (FY) 2015, the HIP will serve approximately 140 recipients. These recipients are individuals and families with extremely low incomes.
This final rule updates various provisions to align the HIP with other Federal program requirements, allow leveraging of housing funds to increase the number of families served and projects funded, and provide tribes with flexibility to better address lengthy waiting lists of tribal members awaiting housing assistance.
Currently, the HIP provides funding for four categories of housing needs:
• Category A—for repair of existing homes;
• Category B—for renovation of existing homes to standard housing condition;
• Category C-1—for construction of replacement homes; and
• Category C-2—for new housing.
For each category, there is a limit on the amount of funding a recipient may receive. The final rule increases the limit for Category A funding from $2,500 to $7,500 and increases the limit for Category B funding from $35,000 to $60,000. The original limits are inadequate, given the average costs of repair and renovation to standard housing condition. These limit increases better reflect the actual costs of repair and renovation. Further, these limit increases will allow more households to repair and renovate existing homes, rather than spending more on each individual household to build a new home. This approach will improve housing conditions for more households.
The final rule adds a new Category D, to allow assistance toward the purchase of a modest house (
Priority ranking for HIP assistance is based on total numeric value (points) received under the ranking factors. The current ranking factors are based on the applicant's annual household income, whether there is an aged person living in the house, whether there is a disabled person living in the house, and family size. There are a certain number of points available for each of the ranking factors. Each applicant receives a certain number of points under each of the ranking factors. The final rule updates the current ranking factors, as shown in the table below.
Overall, the adjustments to the points are intended to create a level playing field among applicants and provide tribes with more flexibility to determine how best to serve applicants on their long waiting lists.
Under the HIP, the recipient may be required to enter into a “payback agreement” which provides that the recipient will have to pay back the entire amount of funding received or a portion thereof if the recipient sells the home within a certain period of time. If the payback period expires, no payback is required and the money is considered a grant. Currently, for Category B, the payback period is 5 years. So, for example, a family that receives HIP funding for a home must repay the funding if the family sells the home within 5 years of receiving the funding. The final rule does not establish a uniform payback period, but provides that the payback agreement will establish the payback period. The final rule does not affect the payback period for Category C.
The final rule also increases the time for consideration of an application to 4 years. Currently an application expires after one year, requiring an applicant who does not receive assistance under the HIP to reapply annually until assistance is received. The final rule places each application in the application pool for four years, so an applicant need only apply once every 4 years until assistance is received.
HIP funding applicants must provide proof of land ownership before the grant award. The final rule allows the applicant to provide proof of a homesite lease or proof that the applicant can obtain the land, even by lease, rather than requiring ownership. A certificate of title is required if and when the applicant becomes the owner of the home.
The final rule also increases square-footage limits to allow Americans with Disabilities Act (ADA) requirements to be met, when applicable, and clarify when ADA requirements apply. The following table shows the increases in square footage the final rule makes.
The definition of “standard housing” reduces the number of persons appropriate for a three-bedroom dwelling from “up to seven persons” to “up to six persons” to reflect that, depending on the make-up of the family, three persons per bedroom may be considered crowded. Additionally, the final rule changes the bedroom sizes to require “up to 120 feet” of floor space for the first bedroom and “up to 100 feet” of floor space for each additional bedroom, to allow tribes the flexibility to provide for smaller square footage where appropriate. The current rule requires “at least 120 feet” and “at least 100 feet,” respectively.
We received 20 written comment submissions on this rule and several oral comments at tribal consultations. The following summarizes the substantive comments received and our responses.
Every tribe that submitted comments on the rule supported the proposed rule changes in general, noting the importance of the HIP as a program, and further stating that the changes provide flexibility for tribes to better address long waiting lists in their service areas, foster relationships with other agencies to leverage Federal housing funds, and increase the number of families served and projects funded. Only one commenter opposed the rule for reasons summarized below (
One tribe asked how the changes to factors will provide tribes with flexibility to better address lengthy waiting lists. Expanding the criteria and adjusting the points allows younger families more of a chance at assistance by awarding a similar number of points for different factors. This may result in more ties in points among applicants, which will allow the tribe flexibility to identify the priority among applicants with a similar number of points. By increasing the funding limits in Categories A and B, more households will be able to repair and renovate existing homes, reducing the need to build new homes. These changes, along with the new category for down-payment assistance to purchase a new home, allow Federal dollars to stretch farther and serve more households.
A commenter stated that the tribe supports allowing applicants to provide proof of a lease rather than homeownership because some families cannot afford to purchase a home but still need to participate in the HIP to bring living conditions to an acceptable level. The final rule allows proof of a lease rather than homeownership.
One commenter suggested multiple changes to the definitions, as listed here.
• The definition of “agency” should include a unit of BIA that enters into cooperative agreements and/or self-determination contracts with tribes. The final rule does not incorporate this
• The citation in the definition of “overcrowding” is incorrect. The final rule includes the correct citation, to 256.10 instead of 256.11.
• The definition of “permanent members of household” should be reworded to be “adults and any children living in the household who intend to live there continuously.” The final rule does not make this change because the suggested wording could be interpreted to increase eligibility requirements by requiring proof of the children's intention to live in the household continuously.
• The definition of “standard housing condition” should include a four bedroom house as adequate for all but the largest families. The final rule inserts this provision and clarifies the number of occupants that each size house may not exceed.
• The definition of “standard housing condition” should state that, in regions of severe climate, the size of the house may be changed to comply with the requirement that the heating system has the capacity to maintain a minimum temperature of 70 degrees in the house. The final rule does not incorporate this change because the size requirements and heating system requirements are compatible and both can be met even in areas of severe climate.
Another commenter asked whether all agencies of the Federal government are using the same definition of homelessness. The definition of “homelessness” for the purposes of HIP is different from that of other Federal agencies, to ensure that our definition encompasses persons who may be without a home but staying with extended family or friends, while other agencies' definitions may focus more on chronic homelessness.
A commenter asked for more information on what it means that the rule changes will “align” HIP requirements with other programs. The rule changes will allow eligible applicants for the HIP to participate in both the HIP and other government housing programs to leverage available funding and make down payments or receive repairs or renovations they may not otherwise have been able to afford.
A few commenters recommended specifying in the definition of “standard housing condition” that, if no housing codes with building standards exist, construction must meet appropriate building standards for the region. The final rule does not incorporate this change because every housing office should have a standard housing code, which would apply.
One commenter suggested adding to the policy statement that every American Indian and Alaska Native should have the opportunity for a “safe” home and suitable living “conditions” (rather than “environment”). The final rule incorporates these edits because the opportunity for “safe” homes, in addition to decent homes, is consistent with national housing policy.
One commenter supported the provision at 256.3 requiring BIA to provide a certificate of title for the dwelling once the program participant owns the home. Another commenter suggested adding to the end of 256.25 that a certificate of title or ownership will be issued upon completion of the work. The tribe or lender may issue a certificate of title.
Several commenters stated their support of the proposal to increase the income guidelines for eligibility from 125 percent to 150 percent of the Federal Poverty Income Guidelines because it will extend the reach of the program to more applicants who are in need of housing but not eligible for other housing assistance programs. The final rule includes this increase.
One commenter requested more information about the Federal Poverty Income Guidelines. The Department of Health and Human Services publishes the guidelines on an annual basis. They are available at:
Some commenters stated that, while they recognize the need to serve clients who have not previously received assistance through the HIP, they recommend that this restriction on eligibility not apply to recipients of Category B rehabilitation funds if the funds were received prior to a certain time, such as more than 25 years ago. The final rule retains the restriction on eligibility in the interest of fairness, to ensure that those who have not yet received HIP assistance are given priority.
A few commenters stated that the eligibility restriction against having acquired present housing through participation in a Federal government-sponsored housing program should be deleted. The commenters stated that the restriction could unnecessarily limit participation in the HIP and that participation in other programs, such as a Mutual Help, HUD Section 184, or Section 502 program should not prevent someone from participating in the HIP. The final rule clarifies that only past participation, over the previous 20-year period, in another Federal government-sponsored program to obtain your current home restricts your eligibility for the HIP. The final rule encourages contemporaneous participation in another Federal government-sponsored housing program to leverage available funding.
Several commenters stated their support of the proposal to increase the limit for Category A (Repair) funding from $2,500 to $7,500 because it better reflects average costs of housing repairs and would allow tribes to address more housing conditions that threaten the health and safety of tribal members. A commenter stated that current funding limits allow only minimal repairs that do not make any lasting improvements, while the proposed limits would improve the health of impoverished families by better addressing basic housing needs. The final rule includes the proposed increase in Category A funding.
One commenter stated that there should be higher limits on repair costs and lower limits on renovation costs because renovations may be strictly cosmetic. The final rule does not change the limits because renovations funded by the HIP are those necessary to bring the house to standard housing condition.
One commenter stated that BIA should revisit the limits in two or three years, rather than the 13 years it took to update the current limits with this rule, to ensure that the amount continues to be sufficient. While revisiting the limits in two to three years may be unrealistic, BIA will endeavor to revisit the limits more frequently to account for inflation and other factors that may affect the effectiveness of the limits.
One commenter stated that higher limits are necessary to address emergency repairs such as roofing, windows, doors, insulation, and old wiring and heating, and stated that such repairs may cost $15,000 and up. While Category A funding may be used to address safety concerns, the HIP generally is not intended for emergency repairs.
Several commenters expressed their support for increasing the limit for Category B funding from $35,000 to $60,000 because the current renovation limits fail to provide adequate funding to improve housing conditions to a level that meets applicable building code standards. The final rule includes the increase in Category B funding.
The proposed rule would have lengthened the Category B payback period to 10 years. So, for example, a family that receives HIP funding for a home would have had to repay the funding if the family sold the home within 10 years. Several commenters also expressed their support of increasing the payback agreement period from 5 years to 10 years for Category B, to better allow the tribe to recoup the costs before the recipient sells the home and allow those recouped costs to be used to address the housing needs of other program recipients on the waiting list. One commenter expressed opposition to increasing the payback period, stating that the increase would detrimentally affect grant recipients by requiring them to stay in their home for at least 10 years. Another commenter suggested a pro-rata formula for payback beyond 5 years, because wear and tear on a home over 5 years can be significant. The final rule provides that the payback agreement will establish the payback period in order to allow flexibility in determining the appropriate payback period under each set of circumstances.
One commenter stated support for the inclusion of freight costs in Category C funding for homes in Alaska. The final rule includes freight costs for Category C funding.
One commenter stated that the table at 256.10(a)(1) should also require that the land has adequate ingress and egress rights and reasonable access to utilities. The final rule does not include this additional requirement because the cited provision addresses homes already owned, so it is presumed that there is already adequate ingress and egress and reasonable access to utilities.
Several commenters supported the proposed increase in square footage limits. Some stated that that it will allow tribes to better serve families with disabilities and meet Americans with Disabilities Act requirements. One commenter, while conceptually in favor of the square footage limits, stated concern that, without additional appropriations, the increases may prevent the HIP from reaching a greater number of people in need or reduce the number served. Another commenter stated that the proposed increases to bedroom sizes do not go far enough. The final rule incorporates the proposed increases in square footage limits to better serve families with disabilities.
A few commenters recommended clarifying that recipients of Category B and Category C who sell the house must repay the tribe directly operating the HIP (or BIA), to ensure that funding stays in the community where it was originally invested, consistent with the Indian Self-Determination and Education Assistance Act (ISDEAA) and self-governance. The final rule incorporates this change; however, any funding returned to the tribe or tribal organization may be used only for the HIP.
One commenter suggested providing a $60,000 funding limit for Alaska and a lower funding limit for the lower 48 States because renovations are generally more costly in Alaska. The final rule imposes a funding limit of $60,000 on renovations, regardless of what State the home is located in; however, it allows for additional funding for homes in Alaska to cover freight costs.
Several commenters stated their support of the proposed new Category D, allowing for down payment assistance. The commenters pointed out that assistance with down payments will help tribes promote homeownership to families of all ages and will allow tribes to serve working class families that would not otherwise qualify for housing because they do not have the financial resources to come up with a down payment. One noted that the down payment assistance dollars could be used to buy down the interest rate and principal loan so that monthly mortgage payments are more affordable for working families.
One commenter stated a concern that Category D does not include spending caps or payback agreements that the current HIP program categories possess and that, without a cap, the limited HIP funds may serve fewer recipients. BIA agrees that a cap may be appropriate at some point but requires several years to collect data on what an appropriate cap would be. For this reason, BIA will revisit this comment at some point in the next decade or two.
A few commenters specifically supported the proposed language at 256.11(b) saying that Category D funds may be used for down payment assistance, closing costs, and pre-homeownership counseling.
A few commenters suggested defining the income eligibility for Category D using the definition provided in the Native American Housing Assistance and Self-Determination Act (NAHASDA) regulations at 12 CFR 1000.10, which would allow those with an annual income that is 80 percent of the area median income or United States median income, whichever is higher, to be eligible. The final rule does not incorporate this suggestion because defining income eligibility for one category in a manner different from the other categories would be administratively burdensome.
A few commenters suggested that, to promote use of Category D, BIA set aside 10 percent of each region's HIP allocation for Category D. They also suggested that BIA document the need for Category D funding so future appropriation requests can be increased to meet down payment assistance needs. There is no change to the final rule to address this comment because BIA addresses allocations in its annual funding letter to tribes. BIA believes it will take several funding cycles to fully implement the Category D program and identify the appropriate level of funding based on participation.
One commenter stated that down payment assistance should be offered as part of Category C-2, because creating a new Category D will demand more time, resources, and procedures. BIA has determined that the more cost effective solution is to create a new Category D for down payment assistance because it can be separately tracked and administered.
A commenter stated that the 30-point ranking value for factor 6, applicants with an approved financing package, may lead to an approval bias toward Category D applications, while needs related to the other three categories go unmet. The final rule lowers the point value from 30 to 25 in response to these comments. BIA believes the 25-point value will allow tribes the flexibility to put an applicant for Category D assistance on an equal footing with applicants for other categories. HIP funds will still be made available for the other categories.
One commenter stated that, with the addition of Category D, the intent of the program is changed from a safety-net program because the program would no longer be providing assistance to the neediest of the needy with no other resources, since Category D applicants do have other resources for assistance.
One commenter asked whether a person approved for participation in the HIP can get a loan “on top of” the HIP assistance. The final rule does not allow loans in addition to HIP assistance, but does encourage coordination of HIP assistance with other Federal resources to leverage those resources.
Several commenters stated their support of the new ranking factors for homelessness, overcrowding, and dilapidated housing, as helping to identify and prioritize tribal communities' housing needs.
A few commenters suggested adding a new factor for veterans; one suggested the new factor for veterans should be for 20 points. The final rule adds veteran as an “other condition” in recognition of both the important contribution to society that veterans have made and the disadvantage many veterans are under economically. The final rule provides the veteran ranking factor with a point value of 5 to balance this factor with other factors.
A few commenters stated their support for increasing the maximum number of points for dependent children. One noted that single-parent families are growing and in need of housing but have difficulty in gaining approval under the HIP, and that elders often live with these families and, as such, the proposed increase in points serves two constituencies. One commenter stated that there should be a ranking factor or priority points for families with young children, and that these families should be prioritized above all because it is our duty as society to allocate sufficient resources for habitable homes to these children. The proposed and final rule increase the maximum number of points awarded for dependent children from 5 to 15 points.
The final rule retains the threshold for being considered “aged”at 55 years old. The proposed rule proposed to increase the threshold from 55 years old to 62 years old to align the age with the Social Security age for retirement. Several commenters opposed increasing the threshold for being considered “aged” from 55 years of age to 62 years of age. These commenters recommended that the threshold stay at 55 with a maximum of 20, rather than 15 points, allowing anyone over 75 to obtain 20 points. One commenter noted that the basis for the proposed increase to 62, aligning the HIP age requirement with the Social Security age of retirement, does not reflect the realities Indian Country faces, in which the average American Indian or Alaska Native has a shorter lifespan and more medical issues. Another commenter stated that the program should target the elderly and disabled by giving them higher priority. The final rule retains the current threshold for “aged” at 55 in response to these comments. The final rule retains the proposed maximum of 15 points for this factor to ensure that it is appropriately weighted against other factors so that tribes have more flexibility to address their lengthy waiting lists in a manner they determine best serves tribal members awaiting housing assistance.
One commenter supported the proposal to provide a set number of points if at least one disabled person is in the household, regardless of how many disabled persons are in the household. Another commenter opposed the proposal to provide a set number of points, stating that it does not account for the fact that households with two disabled members often experience high mortality rates and may put at a disadvantage those households where one disabled member dies before the household is served. The final rule provides for 10 points for any household in which there is at least one disabled member.
A few commenters stated that the proposed 10 points is not enough to account for disabled persons; one suggested 20 points should be provided for a disabled person. BIA ran several scenarios using different point values and determined that 10 points is appropriate to put this factor on equal footing with the other factors. As a whole, the rule attempts to balance the number of points available in each category to allow for households with different needs to remain competitive with each other in scoring, thereby allowing the tribe to prioritize among households with tied or close scores.
One commenter asked whether someone with fetal alcohol effects would be considered disabled under the rule. The rule defines “disabled” broadly to encompass a physical or intellectual impairment that substantially limits one or more major life activities.
Several commenters supported the proposal of allowing applications to remain active for four years, rather than the current one year, because this change removes unnecessary regulatory and administrative burdens, removes a deterrent to reapplying, benefits applicants, and provides greater flexibility to tribes in providing housing services. One commenter stated that the change is not advantageous to the applicant or the HIP because the applicant's circumstances may change over the course of four years. The final rule incorporates the four-year period because applicants may annually update their applications to address any updated circumstances.
A few commenters noted the typographical error in the title of the “National Environmental Policy Act.” The proposed rule identified the Act as the “National Environmental Protection Act.” The final rule corrects this error.
A few commenters also noted their view that all of the specific actions authorized by the HIP would be covered by a NEPA categorical exclusion and suggested adding language to 256.19 to clarify this. The final rule incorporates this change.
Nearly every commenter stated support of continued funding for the HIP and asserted that more funding is needed for the HIP. One commenter stated that the HIP targets a population in dire need of support and has had a significant impact on the lives of Indian people, but over the years, the funding in real dollars has dropped substantially. Another commenter stated that the households the tribe is serving through the HIP truly have no other options to improve living conditions. These commenters stated that there is a need for Congress and the Administration to work together to fund the HIP at a meaningful level; otherwise, the increases in funding limits, while
One commenter stated that funding for Category C, in particular, is needed. BIA recommends that tribes ask their regional HIP officers if additional funding for Category C is needed.
Another commenter stated that the HIP's funding formula methodology does not currently function well for tribes in its area because the income limits are too low. The final rule increases the current income limits but BIA has determined that increasing the limits further may duplicate other programs, rather than meeting the HIP's goal to meet the housing needs of the neediest.
A commenter stated that HIP funds should be leveraged with the U.S. Department of Energy (DOE) funding for energy efficiency. BIA encourages tribes to work with BIA, DOE, and other agencies to leverage funding.
A commenter expressed concern that the higher funding limits will mean fewer applications will be accepted and fewer households will receive benefits. BIA does not expect the rule's changes to the HIP to decrease the number of participants because the rule changes allow for better leveraging of federal funding, allowing each dollar to go farther.
A few commenters addressed issues with the Federal Emergency Management Agency (FEMA) mapping. BIA suggests that tribes may want to consider contacting FEMA regarding mapping.
One commenter stated that households should be eligible for HIP assistance, even if prior assistance was received, if the useful life expectancy of the house has been exceeded and it otherwise qualifies as dilapidated. The final rule retains the restriction on previous assistance to be eligible for the HIP in order to prioritize getting HIP assistance to those who have not received assistance before, in the interest of fairness.
A commenter suggested adding more items to the list of other income for which applicants must provide proof in applying for the HIP. The final rule does not incorporate this change because the income items listed are examples and are not an exhaustive list.
A commenter suggested that “your position on the priority list” should be the first item listed in 256.17, listing factors that affect the length of time it takes to do work on your house. The final rule accepts this edit because the position on the priority list is an important factor that participants often overlook. This commenter also suggested that “infrastructure availability” should be added to the list. The final rule adds this to the list as an example of “other unforeseen factors.”
Commenters provided suggestions for additional non-substantive edits that the final rule does not incorporate. A few commenters suggested the Bureau create an advisory committee for updates to the HIP handbook. BIA plans to update the handbook and suggests that tribes and other interested parties work through their housing officers to provide comments.
Executive Order (E.O.) 12866 provides that the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB) will review all significant rules. OIRA has determined that this rule is not significant. E.O. 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the nation's regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. The E.O. directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this rule in a manner consistent with these requirements.
The Department certifies that this rule will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601
This rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. It will not result in the expenditure by State, local, or tribal governments, in the aggregate, or by the private sector of $100 million or more in any one year. Nor will this rule have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. Funding for the HIP comes from the Federal Government budget.
This rule does not impose an unfunded mandate on State, local, or tribal governments or the private sector of more than $100 million per year. The rule does not have a significant or unique effect on State, local, or tribal governments or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531
Under the criteria in Executive Order 12630, this rule does not affect individual property rights protected by the Fifth Amendment nor does it involves a compensable “taking.” A takings implication assessment is not required.
Under the criteria in Executive Order 13132, this rule has no substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. This rule updates the implementation requirements for the HIP, which is a Federal program.
This rule complies with the requirements of Executive Order 12988. Specifically, this rule has been reviewed to eliminate errors and ambiguity and written to minimize litigation; and is written in clear language and contains clear legal standards.
In accordance with the President's memorandum of April 29, 1994, “Government-to-Government Relations with Native American Tribal Governments,” Executive Order 13175 (59 FR 22951, November 6, 2000), 512 DM 4 and 5, and the BIA Government-to-Government Consultation Policy, we have held several listening sessions and consultation sessions with representatives of federally recognized tribes throughout the development of this rule. In 2010, BIA staff implementing the HIP opened a dialogue with Indian tribes because tribes indicated that the program as structured was not allowing them to make progress on their waiting lists of members with housing needs. BIA then held several listening sessions and incorporated comments received during those listening sessions into the rule. Following publication of the proposed rule, BIA hosted consultation sessions with Indian tribes throughout February 2015, including two sessions in Washington, DC to accommodate those attending the National American Indian Housing Council legislative conference and the National Congress of American Indian Executive Council Winter Session, one in Anchorage, Alaska, and one by teleconference. BIA has addressed the input received during those sessions in this final rule.
The Paperwork Reduction Act (PRA), 44 U.S.C. 3501
The following describes the information collection requirements in the rule. The information collection requirements differ from those in the current rule in that applicants need only submit a full application form every four years, but applicants must provide an update (in any format) annually if any information on the application changes. The application form associated with this information collection is also being updated. The revisions result in a net decrease of 4,000 hours because a full application is now required only once every four years, and applicants must only provide annual updates.
This rule does not constitute a major Federal action significantly affecting the quality of the human environment.
This final rule is not a significant energy action under the definition in Executive Order 13211. A Statement of Energy Effects is not required.
The primary authors of this document are Les Jensen, Office of Indian Services, Bureau of Indian Affairs, Elizabeth Appel, Director, Office of Regulatory Affairs & Collaborative Action—Indian Affairs, Department of the Interior, and Sabrina McCarthy, Office of the Solicitor—Division of Indian Affairs.
Grant programs—housing and community development, Grant programs—Indians, Housing, Indians, Reporting and recordkeeping requirements.
For the reasons given in the preamble, the Department proposes to amend 25 CFR chapter I, subchapter K, by revising part 256 to read as follows:
25 U.S.C. 13, 5 U.S.C. 301, 25 U.S.C. 2 and 9, and 43 U.S.C. 1457.
The purpose of the part is to define the terms and conditions under which assistance is given to Indians under the Housing Improvement Program (HIP).
As used in this part:
(1) Reservations (former reservations in Oklahoma);
(2) Allotments;
(3) Restricted lands; and
(4) Indian-owned lands (including lands owned by corporations established pursuant to the Alaska Native Claims Settlement Act).
(1) General construction conforms to applicable tribal, county, State, or national codes and to appropriate building standards for the region.
(2) The heating system has the capacity to maintain a minimum temperature of 70 degrees in the house during the coldest weather in the area and be safe to operate and maintain and deliver a uniform heat distribution.
(3) The plumbing system includes a properly installed system of piping and fixtures certified by a licensed plumbing contractor.
(4) The electrical system includes wiring and equipment properly installed to safely supply electrical energy for lighting and appliance operation certified by a licensed electrician according to the applicable electrical code.
(5) The number of occupants per house does not exceed these limits:
(i) Two-bedroom house: Up to four persons;
(ii) Three-bedroom house: Up to six persons;
(iii) Four-bedroom house: Adequate for all but the largest families.
(6) The first bedroom has up to 120 sq. ft. of floor space and additional bedrooms have up to100 sq. ft. of floor space each.
(7) The house site provides economical access to utilities and is easy to enter and leave.
(8) The house has access to school bus routes, if the household includes children who rely on school buses.
(a) The BIA housing policy is that every American Indian and Alaska Native should have the opportunity for a safe and decent home and suitable living conditions, which is consistent with the national housing policy. The HIP will serve the neediest of the needy Indian families who have no other resource for standard housing.
(b) Every American Indian or Alaska Native who meets the basic eligibility criteria defined in § 256.6 may participate in the HIP.
(c) The BIA encourages tribal participation in administering the HIP. Tribal involvement is necessary to ensure that the services provided under the program respond to the needs of tribes and program participants.
(d) The BIA encourages partnerships and leveraging with other complementary programs to increase basic benefits derived from the HIP, such as an agreement with:
(1) The Indian Health Service to provide water and sanitation facilities;
(2) The United States Department of Agriculture, Rural Development to leverage down payment assistance for a new unit; or
(3) Any other program and resource.
(e) The servicing housing office will issue a Certificate of Title or Ownership.
The information collection requirements contained in this part have been approved by the Office of Management and Budget under 44 U.S.C. 3507
The HIP is a safety-net program that provides grants for the cost of services
(a) Live in substandard housing or are homeless; and
(b) Have no other resource for assistance.
You are eligible for the HIP if you meet all of the following criteria:
(a) You are a member of a federally recognized Indian tribe;
(b) You live in an approved tribal service area;
(c) Your annual income is 150 percent or less of the Department of Health and Human Services poverty income guidelines, which are available from your servicing housing office or the Department of the Interior Web site at
(d) Your present housing is substandard as defined in § 256.2;
(e) You meet the ownership requirements for the assistance needed, as defined in § 256.8, § 256.9, or § 256.10;
(f) You have no other resource for housing assistance;
(g) You have not previously received assistance relating to categories as defined in §§ 256.9, 256.10, and 256.11; and
(h) You did not acquire your present housing through past participation in a Federal government-sponsored housing program over the previous 20 year period.
Four categories of assistance are available under the HIP, as outlined in the following table.
You qualify for interim improvement assistance under Category A if it is not cost effective to repair the house in which you live and if either of the following is true:
(a) Other resources to meet your housing needs exist but are not immediately available; or
(b) You qualify for replacement housing under Category C, but there are no HIP funds available to replace your house.
You qualify for renovation assistance under Category B if you meet all of the following criteria:
(a) Your servicing housing office determines that it is cost effective to renovate the house.
(b) You occupy and own the house.
(c) Your servicing housing office determines that the renovation will bring the house to standard housing condition according to all applicable building codes.
(d) You sign a written agreement stating that, if you sell the house before satisfaction of the Payback Agreement you will be required to repay the tribe, tribal organization that administers the HIP, or BIA the remaining balance according to the terms of the Payback Agreement:
(1) The grant under this part will be voided; and
(2) At the time of settlement of the sale of the house, you will repay the tribe or tribal organization that operates the HIP or BIA the full cost of all renovations made under this part.
(a) You qualify for replacement housing assistance under Category C if you meet one of the three sets of requirements in the following table.
(b) If you qualify for assistance under paragraph (a) of this section, you must sign a written grant agreement stating that, if you sell the house within 10 years of assuming ownership:
(1) The grant under this part will be voided; and
(2) At the time of settlement of the sale of the house, you will repay the tribe or tribal organization that operates the HIP or BIA the full cost of the house.
(c) If you sell the house more than 10 years after you assume ownership, the following conditions apply:
(1) You may retain 10 percent of the original cost of the house per year, beginning with the eleventh year.
(2) If you sell the house after 20 years, you will not have to repay the tribe, tribal organization, or BIA.
(d) A modest house provided with Category C assistance must meet the standards in the following table.
(a) You qualify for grant assistance under Category D if you apply for financing from tribal, Federal, or other sources of credit and have inadequate income or limited financial resources to meet the lender requirements for home ownership.
(b) The grant must not exceed the amount necessary to secure the loan and may be used for down-payment assistance, closing costs, and pre-home ownership counseling. Participation with other complementary housing programs is encouraged.
(c) The method of awarding the grant must ensure that the funds are used for the purpose intended.
The HIP is administered by a servicing housing office operated by either a tribe (under a Pub. L. 93-638 contract or a self-governance annual funding agreement) or BIA.
(a) First, obtain an application, BIA Form 6407, from your servicing housing office or the BIA Web site.
(b) Second, complete and sign BIA Form 6407.
(c) Third, submit your completed and signed application to your servicing housing office.
(d) Fourth, furnish to the servicing housing office documentation proving your tribal membership. Examples of acceptable documentation include a copy of your Certificate of Degree of Indian Blood (CDIB) or a copy of your tribal membership card.
(e) Fifth, provide proof of income from all permanent members of your household.
(1) Submit signed copies of current 1040 tax returns from all permanent members of the household, including W-2s and all other attachments. Submit the Social Security number of the applicant only.
(2) Provide proof of all other income from all permanent members of the household. This includes unearned income such as Social Security, general assistance, retirement, and unemployment benefits.
(3) If you or other household members did not file a tax return, submit a signed notarized statement explaining why you did not.
(f) Sixth, furnish a copy of your annual trust income statement for your Individual Indian Money (IIM) account from your home agency. If you do not have an IIM account, furnish a statement from your home agency to that effect.
(g) Seventh, provide proof of ownership of the residence and land or potential leasehold interest:
(1) For fee property, provide a copy of a fully executed deed, which is available at your local county or parish court house;
(2) For trust property, provide certification of ownership from your home agency;
(3) For tribally owned land, provide a copy of a properly executed tribal assignment, certified by the tribe;
(4) For multi-owner property, provide a copy of a properly executed lease;
(5) For a potential lease, provide proof of ability to acquire an undivided leasehold (that is, you will be the only lessee) for a minimum of 25 years from the date of service; or
(6) For down-payment assistance, provide a description and the location of the house to be purchased, verification of your intent to purchase, and the sale price of the house.
(h) Eighth, if you seek down payment assistance, provide a letter from the institution where you have applied for mortgage financing that specifies:
(1) The down payment amount; and
(2) The closing costs required for you to qualify for the loan.
(a) The servicing housing office will review your application. If your application is incomplete, the office will notify you, in writing, of what is needed to complete your application and of the date by which it must be submitted. If you do not return your application by the deadline date, you will not be considered for assistance in that program year.
(b) The servicing housing office will use your completed application to determine if you are eligible for the HIP.
(1) If you are found ineligible for the program, the servicing housing office will advise you in writing within 45 days of receipt of your completed application.
(2) If you are found eligible for the program, the servicing housing office will assess your application for need, according to the factors and numeric values shown in the following table.
(c) The servicing housing office will develop a list of the applications received and considered for the HIP for the current program year. The list will include, at a minimum, all of the following:
(1) The number of applications received and, of those, the number considered.
(2) The rank assigned to applicants in order of need, from highest to lowest, in accordance with tribal approval and knowledge of need, based on the total numeric value assigned using the factors in paragraph (b) of this section. (In case of a tie, the family with the lower income per household member will be listed first.)
(3) The estimated allowable costs of the improvements, renovations, and replacement projects for each applicant and for the entire priority list. This data must identify which applicants will be served based on the amount of available funding, starting with the neediest applicant and continuing until the available funding is depleted.
(4) A list of the applicants not ranked, with an explanation of why they weren't ranked (such as the reason for ineligibility or the reason for incomplete application).
(d) The servicing housing office submits to the regional office an annual fiscal year report that includes all of the following:
(1) Number of eligible applicants;
(2) Number of applicants who received service;
(3) Names of applicants who received service; and
(4) All of the following for each applicant that received service:
(i) Date of construction start;
(ii) Date of construction completion;
(iii) Cost; and
(iv) HIP category.
Your servicing housing office will inform you whether you will receive funds in writing within 45 days after it completes the list required by § 256.14(c).
(a) If funding is available, the office will send you complete information on how to obtain HIP services.
(b) If funding is not available, the office will send you instructions on how to update your application for funding for the next available program year.
If you don't receive funding, your servicing housing office will retain and consider your application for 3 more years. During this 4-year period, you must ensure that the information on your application is still accurate and provide an annual written update if any information has changed.
How long it takes to do work on your house depends on:
(a) Your position on the priority list;
(b) Whether funds are available;
(c) The type of work to be done;
(d) The climate and seasonal conditions where your house is located;
(e) The availability of a contractor; and
(f) Other unforeseen factors, such as infrastructure availability.
The servicing housing office will determine what work is to be done on your house or whether your house will be replaced. The servicing housing office also provides the priority list annually to the Indian Health Service if the Indian Health Service is responsible for verifying availability or feasibility of water and wastewater facilities.
(a) First, a trained and qualified representative of your servicing housing office will visit your house to identify what renovation and or replacement will be done under the HIP. The representative will ensure that flood, National Environmental Policy Act (NEPA) and earthquake requirements are met, including the determination that the renovation or replacement is appropriately treated as a categorical exclusion.
(b) Second, based on the list of renovations or replacement to be done, your servicing housing office will estimate the total cost of renovation to your house. Cost estimates will be based on locally available services and product costs, or other regional-based, industry-recognized cost data, such as that provided by the MEANs or Marshall Swift. If the house is located in Alaska, documented, reasonable, substantiated freight costs, in accordance with Federal Property Management Regulations (FPMR 101-40), not to exceed 100 percent of the cost of materials, can be added to the cost of the project.
(c) Third, your servicing housing office will determine which HIP category the improvements to your house meet, based on the estimated cost of renovation or replacement. If the estimated cost to renovate your house is more than $60,000, your servicing housing office will recommend your house for replacement or refer you to another source for housing. The other source does not have to be for a replacement house; it may be for government-subsidized rental units or other sources for standard housing.
(d) Fourth, your servicing housing office will develop a detailed, written report, called a scope of work, that identifies what renovation or construction work on your house will be accomplished and how. The scope of work is used to inform potential bidders of what work is to be done. When the work includes new construction, the scope of work will be supplemented with a set of construction plans and specifications. The construction plans must:
(1) Meet the occupancy and square footage criteria in § 256.10 (d); and
(2) Provide complete and detailed instructions to the builder.
The servicing housing office will notify you in writing what work is being scheduled under the HIP. You will be requested to approve the scheduled work by signing a copy of the notice and returning it to the servicing housing office. Work will start after you return the signed copy to the servicing housing office.
Your house will be renovated or replaced by either:
(a) A licensed and bonded independent contractor or construction company; or
(b) A tribe that operates the HIP under an Indian Self-Determination and Education Assistance Act agreement.
The servicing housing office must follow Federal procurement or other Bureau-approved tribal procurement policy. Generally, your servicing housing office develops a “bid specification” or statement of work, which identifies the work to be performed. The appropriate contracting office uses the “bid specification” to provide information and invite bids on the project to interested parties. The contracting office selects the winning bidder after technical review of the bids by and written recommendation from the servicing housing office, and after determination that the bidder is qualified and capable of completing the project as advertised.
(a) Partial payments to independent contractors will not exceed 80 percent of the value of the completed and acceptable work.
(b) Recommendation for final payment will be made after final inspection and after all provisions of the contract have been met and all work has been completed.
(a) You will be notified by your servicing housing office that you must vacate your house only if:
(1) It is scheduled for major renovations requiring that all occupants vacate the house for safety reasons; or
(2) It is scheduled for replacement, which requires demolition of your current house.
(b) If you are required to vacate the premises during construction, you are responsible for:
(1) Locating other lodging;
(2) Paying all costs associated with vacating and living away from the house; and
(3) Removing all your belongings and furnishings before the scheduled beginning work date.
(a) At various stages of construction, a trained and qualified representative of your servicing housing office or a building inspector will review the work to ensure that it meets construction standards and building codes. Upon completion of each stage, further construction can begin only after the inspection occurs and approval is granted.
(b) Inspections of construction and renovation will occur, at a minimum, at the following stages:
(1) Upon completion of inspection footings and foundations;
(2) Upon completion of inspection rough-in, roughwiring, and plumbing; and
(3) At final completion.
Your servicing housing office will advise you, in writing, that the work has been completed in compliance with the project contract. Also, you will have a final walk-through of the house with a representative of your servicing housing office. You will be requested to verify that you received the notice of completion of the work by signing a copy of the notice and returning it to your servicing housing office.
You will need flood insurance if your house is located in an area identified as having special flood hazards under the Flood Disaster Protection Act of 1973 (Pub. L. 93-234, 87 Stat. 975). Your servicing housing office will advise you.
No. The intention of this program is to assist the neediest of the needy, who have never received services from any other Federal entity.
Yes. If you meet the eligibility criteria in § 256.6 and funding is available, you
Yes. HIP resources may be supplemented with other available resources (
You may appeal action or inaction by a BIA official, in accordance with 25 CFR part 2.
Coast Guard, DHS.
Notice of temporary deviation from regulations.
The Coast Guard has issued a temporary deviation from the operating schedule that governs the Burlington Northern Santa Fe Railway Company (BNSF) Railroad Bridge (BNSF Steamboat Slough Bridge) across Steamboat Slough (Snohomish River), mile 1.0 near Marysville, WA. The deviation is necessary to accommodate scheduled bridge rail joint maintenance and replacement. The deviation allows the bridge to remain in the closed-to-navigation position during the maintenance to allow safe movement of work crews.
This deviation is effective from 6 a.m. on November 29, 2015 to 11:59 p.m. on December 20, 2015.
The docket for this deviation, [USCG-2015-1003] is available at
If you have questions on this temporary deviation, call or email the Bridge Administrator, Coast Guard Thirteenth District; telephone 206-220-7282 email
BNSF has requested a temporary deviation from the operating schedule for the BNSF Steamboat Slough Bridge, mile 1.0, crossing Steamboat Slough (Snohomish River), near Marysville, WA. BNSF requested the BNSF Steamboat Slough Bridge remain in the closed-to-navigation position for rail maintenance. This maintenance has been scheduled and is funded as part of the Cascade Corridor Improvement Project.
The normal operating schedule for this bridge operates in accordance with 33 CFR 117.1059, which states the draw shall open on signal if at least four hours notice is given. BNSF Steamboat Slough Bridge is a swing bridge and provides 8 feet of vertical clearance above mean high water elevation while in the closed-to-navigation position.
This deviation allows the BNSF Steamboat Slough Bridge at mile 1.0 crossing Steamboat Slough on the Snohomish River, to remain in the closed-to-navigation position, and need not open for maritime traffic from 6 a.m. on November 29, 2015 to 11:59 p.m. on December 20, 2015. The bridge shall operate in accordance to 33 CFR 117.1059 at all other times.
Vessels able to pass through the bridge in the closed-to-navigation position may do so at anytime. The bridge will be required to open, if needed, for vessels engaged in emergency response operations during this closure period, but any time lost to emergency openings will necessitate a time extension added to the approved dates. Waterway usage on this part of the Snohomish River and Steamboat Slough includes tug and barge to small pleasure craft. The BNSF Steamboat Slough Bridge receives an average number of three opening request during the month of December. BNSF has coordinated with Steamboat Slough users that frequently request bridge openings during this time of year. No immediate alternate route for vessels to pass is available on this part of the river. The Coast Guard will also inform the users of the waterways through our Local and Broadcast Notices to Mariners of the change in operating schedule for the bridge so that vessels can arrange their transits to minimize any impact caused by the temporary deviation.
In accordance with 33 CFR 117.35(e), the drawbridges must return to their regular operating schedule immediately at the end of the effective period of this temporary deviation. This deviation from the operating regulations is authorized under 33 CFR 117.35.
Environmental Protection Agency (EPA).
Final rule.
The Environmental Protection Agency (EPA) is taking final action to approve the State Implementation Plan (SIP) revision submitted by the state of Missouri. This revision includes regulatory amendments that remove the requirements of stage II vapor recovery control systems at gasoline dispensing facilities in the St. Louis area, revise certification and testing procedures for stage I vapor recovery systems, prohibit above ground storage tanks at gasoline dispensing facilities, and include general revisions to better clarify the rule. These revisions to Missouri's SIP do not have an adverse effect on air quality as demonstrated in Missouri's technical demonstration document and EPA's technical support demonstration which is a part of this docket.
This final rule is effective on December 10, 2015.
EPA has established a docket for this action under Docket ID No. EPA-R07-OAR-2015-0268. All documents in the docket are listed on the
Steven Brown, Environmental Protection Agency, Air Planning and Development Branch, 11201 Renner Boulevard, Lenexa, Kansas 66219 at (913) 551-7718, or by email at
Throughout this document “we,” “us,” or “our” refer to EPA. This section provides additional information by addressing the following:
EPA is taking final action to approve a SIP revision submitted by the state of Missouri that removes the requirements of stage II vapor recovery control systems at gasoline dispensing facilities in the St. Louis area and includes minor revisions to the rule as described below. EPA proposed approval on July 22, 2015 and no comments were received.
On November 20, 2014, Missouri submitted a request to revise the SIP to include the following revision to Missouri Rule 10 CSR 10-5.220, “Control of Petroleum Liquid Storage, Loading and Transfer” which: (1) Removes the requirements of stage II vapor recovery control systems at gasoline dispensing facilities in the St. Louis area, (2) revises certification and testing procedures for the remaining stage I systems consistent with California Air Resources Board (CARB) vapor recovery requirements instead of the Missouri Performance Evaluation and Test Procedures (MOPETP), (3) prohibits above ground storage tanks at gasoline dispensing facilities, and (4) includes general text revisions to better clarify the rule.
The state submission has met the public notice requirements for SIP submissions in accordance with 40 CFR 51.102. The submission also satisfied the completeness criteria of 40 CFR part 51, appendix V. In addition, as explained above and in more detail in the technical support document which is part of this document, the revision meets the substantive SIP requirements of the CAA, including section 110, section 193 and implementing regulations.
The public comment period on EPA's proposed rule opened July 22, 2015, the date of its publication in the
EPA is taking final action to amend the Missouri SIP to remove the requirements of stage II vapor recovery control systems at gasoline dispensing facilities in the St. Louis area, revise certification and testing procedures for stage I vapor recovery systems, prohibit above ground storage tanks at gasoline dispensing facilities, and include general revisions to better clarify the rule.
In this rule, EPA is finalizing regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, EPA is finalizing the incorporation by reference the Missouri Regulation “Control of Petroleum Liquid Storage, Loading and Transfer” described in the amendments to 40 CFR part 52 set forth below.” EPA has made, and will continue to make, these documents generally available electronically through
Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this final action merely approves state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this final action:
• Is not a “significant regulatory action” under the terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is therefore not subject to review under Executive Orders 12866 and 13563 (76 FR 3821, January 21, 2011);
• Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501
• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601
• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);
• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);
• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);
• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);
• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and
• Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).
The SIP is not approved to apply on any Indian reservation land or in any other area where EPA or an Indian tribe has demonstrated that a tribe has jurisdiction. In those areas of Indian country, the rule does not have tribal implications and will not impose substantial direct costs on tribal governments or preempt tribal law as specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
The Congressional Review Act, 5 U.S.C. 801
Environmental protection, Air pollution control, Carbon monoxide, Incorporation by reference, Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Volatile organic compounds.
For the reasons stated in the preamble, EPA amends 40 CFR part 52 as set forth below:
42 U.S.C. 7401
(c) * * *
Environmental Protection Agency (EPA).
Final rule; administrative change.
The Environmental Protection Agency (EPA) is revising the format for materials that are incorporated by reference (IBR) into the Ohio State Implementation Plan (SIP). The regulations and other materials affected by this format change have all been previously submitted by Ohio and approved by EPA.
This final rule is effective on November 10, 2015.
EPA has established a docket for this action under Docket ID No. EPA-R05-OAR-2015-0637. SIP materials which are incorporated by reference into 40 CFR part 52 are available for inspection at the following locations: Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604 and the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call (202) 741-6030, or go to:
Matt Rau, Environmental Engineer, Control Strategies Section, Air Programs Branch (AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6524,
Throughout this document whenever “we”, “us”, or “our” is used, we mean EPA. This supplementary information section is arranged as follows:
This format revision will primarily affect the “Identification of plan” section, as well as the format of the SIP materials that will be available for public inspection at NARA and the EPA Region 5 Office. EPA is also adding a table in the “Identification of plan” section which summarizes the approval actions that EPA has taken on the nonregulatory and quasi-regulatory portions of the Ohio SIP.
Each state has a SIP containing the control measures and strategies to attain and maintain the National Ambient Air Quality Standards (NAAQS) along with other Clean Air Act (CAA) requirements. The SIP is extensive, containing such elements as air pollution control regulations, emission inventories, monitoring networks, attainment demonstrations, and enforcement mechanisms.
Each state must formally adopt the control measures and strategies in the SIP after the public has had an opportunity to comment on them. The states then submit them to EPA as requested SIP revisions on which EPA must formally act.
EPA evaluates submitted SIPs to determine if they meet CAA requirements. If and when these control measures and strategies are approved by EPA, after notice and comment rulemaking, they are incorporated into the Federally approved SIP and identified in part 52 (Approval and Promulgation of Implementation Plans), title 40 of the Code of Federal Regulations (40 CFR part 52). The actual state regulations approved by EPA are not reproduced in their entirety in 40 CFR part 52, but are “incorporated by reference”, which means that EPA has approved a given state regulation with a specific effective date. This format allows the public to know which measures are contained in a given SIP and to help determine whether the state is enforcing the regulations. It also assists EPA and the public to take enforcement action should a state not enforce its SIP-approved regulations.
The SIP is a dynamic document that the state can revise as necessary to address the unique air pollution problems in the state. Therefore, EPA must periodically take action on SIP revisions containing new and/or revised regulations in order to make them part of the SIP. On May 22, 1997 (62 FR 27968), EPA revised the procedures for incorporating by reference Federally approved SIPs.
EPA has been developing the following: (1) A revised SIP document for each state that would be incorporated by reference under the provisions of title 1 CFR part 51; (2) a revised mechanism for announcing EPA approval of revisions to an applicable SIP and updating both the IBR document and the CFR; and (3) a revised format of the “Identification of plan” sections for each applicable subpart to reflect these revised IBR procedures
The Federally approved regulations, source-specific permits, and nonregulatory provisions (entirely or portions of) submitted by each state agency and approved by EPA have been organized into a “SIP compilation”. The SIP compilation contains the updated regulations, source-specific permits, and nonregulatory provisions approved by EPA through previous rulemaking actions in the
Each SIP compilation contains three parts. Part one contains regulations, part two contains source-specific requirements, and part three contains nonregulatory provisions that have been EPA approved. Each part consists of a table of identifying information for each SIP-approved regulation, each SIP-approved permit, and each nonregulatory SIP provision. In this action, EPA is publishing the tables summarizing the applicable SIP requirements for Ohio. The state effective dates in the tables indicate the date of the most recent revision to a particular approved regulation. The EPA Regional Offices have the primary responsibility for updating the compilations and ensuring their accuracy.
EPA's Region 5 Office developed and will maintain the compilation for Ohio. A copy of the full text of Ohio's regulatory and source-specific compilations will also be maintained at NARA.
In order to better serve the public, EPA revised the organization of the “Identification of plan” section and included additional information to clarify the enforceable elements of the SIP.
The revised Ohio Identification of plan section contains five subsections:
All revisions to the applicable SIP become Federally enforceable as of the effective date of the revisions to paragraphs (c), (d), or (e) of the applicable Identification of plan section found in each subpart of 40 CFR part 52.
To facilitate enforcement of previously approved SIP provisions and provide a smooth transition to the new SIP processing system, EPA retains the original Identification of plan section, previously appearing in the CFR as the first or second section of part 52 for each state subpart. After an initial two-year period, EPA will review its experience with the new system and enforceability of previously approved SIP measures and will decide whether or not to retain the Identification of plan appendices for some further period.
Although EPA is retaining the original Identification of Plan section, other sections of part 52 are duplicative of the new Identification of Plan section. EPA is therefore removing §§ 52.1881(b) “Regulations for the control of sulfur dioxide in the State of Ohio”, 52.1890 “Removed control measures”, 52.1891 “Section 110(a)(2) infrastructure requirements”, and 52.1919 “Identification of plan-conditional approval” as part of the general “housekeeping” discussed below.
This action constitutes a “housekeeping” exercise to ensure that all revisions to the state programs that have occurred are accurately reflected in 40 CFR part 52. State SIP revisions are controlled by EPA regulations at 40 CFR part 51.
EPA has determined that this action falls under the “good cause” exemption in section 553(b)(3)(B) of the Administrative Procedures Act (APA) which, upon finding “good cause,” authorizes agencies to dispense with public participation and section 553(d)(3) allows an agency to make a rule effective immediately (thereby avoiding the 30-day delayed effective date otherwise provided for in the APA). This action simply codifies provisions which are already in effect as a matter of law in Federal and approved state programs.
Under Section 553 of the APA, an agency may find good cause where procedures are “impractical, unnecessary, or contrary to the public interest” since the codification only reflects existing law. Likewise, there is no purpose served by delaying the effective date of this action. Immediate notice in the CFR benefits the public by removing outdated citations.
In this rule, EPA is finalizing regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, EPA is finalizing the incorporation by reference of the Ohio Regulations described in the amendments to 40 CFR part 52 set forth below. EPA has made, and will continue to make, these documents generally available electronically through
Under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011), this action is not a “significant regulatory action” and is therefore not subject to review by the Office of Management and Budget. This rule is not subject to Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001) because it is not a significant regulatory action under Executive Order 12866. Because the agency has made a “good cause” finding that this action is not subject to notice-and-comment requirements under the Administrative Procedure Act or any other statute as indicated in the
The Congressional Review Act (5 U.S.C. 801
EPA has also determined that the provisions of section 307(b)(1) of the CAA pertaining to petitions for judicial review are not applicable to this action. Prior EPA rulemaking actions for each individual component of the Ohio SIP compilations had previously afforded interested parties the opportunity to file a petition for judicial review in the United States Court of Appeals for the appropriate circuit within 60 days of such rulemaking action. Thus, EPA sees no need in this action to reopen the 60-day period for filing such petitions for judicial review for these “Identification of plan” reorganization actions for Ohio.
Environmental protection, Air pollution control, Carbon monoxide, Incorporation by reference, Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Volatile organic compounds.
Part 52 of chapter I, title 40, Code of Federal Regulations, is amended as follows:
42 U.S.C. 7401
(a)
(b)
(2) EPA Region 5 certifies that the rules/regulations provided by EPA in the SIP compilation at the addresses in paragraph (b)(3) of this section are an exact duplicate of the officially
(3) Copies of the materials incorporated by reference may be inspected at the Environmental Protection Agency, Region 5, Air Programs Branch, 77 West Jackson Boulevard, Chicago, IL 60604 or the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call (202) 741-6030, or go to:
(c)
(d)
(e)
(a) This section identifies the original “Air Implementation Plan for the State of Ohio” and all revisions submitted by Ohio that were federally approved prior to September 1, 2015.
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Final rule.
This action modifies the timing of the Lobster Conservation Management Area 4 seasonal closure. This action is necessary to ensure fishery regulations for the lobster fishery in Federal waters remain consistent with the Commission's Interstate Fishery Management Plan for American Lobster and previously implemented state measures and the intent of the Atlantic Coastal Fisheries Cooperative Management Act. This action is intended to ensure fishing effort is reduced in Area 4.
This rule is effective December 10, 2015.
Allison Murphy, Fishery Policy Analyst, (978) 281-9122.
The American lobster fishery is managed by the Atlantic States Marine Fisheries Commission under Amendment 3 to the Interstate Fishery Management Plan for American Lobster (ISFMP). We manage the portion of the fishery conducted in Federal waters from 3 to 200 miles offshore, based on management recommendations made by the Commission.
The American lobster management unit is divided between two lobster stocks and seven Lobster Conservation Management Areas.
The 2009 stock assessment indicated that the Southern New England American lobster stock, which includes all or part of six areas including Area 4, is at a low level of abundance. The stock is experiencing persistent recruitment failure caused by a combination of environmental factors and continued fishing mortality. To address the poor condition of the stock, the Commission adopted Addendum XVII to Amendment 3 of the ISFMP in February of 2012. The measures in the addendum were intended to reduce fishing exploitation on the Southern New England lobster stock by 10 percent. Copies of the addendum are available on the Commission's Web site at:
Consistent with the Commission's action in Addendum XVII, we issued complementary regulations (80 FR 2028; January 15, 2015) for Areas 2, 3, 4, and 5. Measures for Area 4 included a mandatory v-notching requirement for egg-bearing female lobsters and an annual seasonal closure from February 1-March 31. States came into compliance with Addendum XVII by January 1, 2013.
We are changing the Area 4 seasonal closure from February 1-March 31 to April 30-May 31, consistent with the Commission's recommendation. The American Lobster Technical Committee analyzed the effectiveness of the initial February 1-March 31 Area 4 closure after it was implemented by the states and presented these results to the Commission in late 2014. The Technical Committee's analysis indicated that the February and March closure in Area 4 only achieved a 3.7-percent reduction in effort, falling short of the required 10-percent reduction. The Technical Committee recommended that the Lobster Board shift the annual seasonal closure from February 1-March 31 to April 30-May 31. The Technical Committee projected that this shift would achieve a 10.1-percent reduction in effort. The Lobster Board reviewed this analysis and approved the Area 4 seasonal closure modification during several meetings in late 2014 and early 2015. The Lobster Board also recommended that all jurisdictions change the closure date to April 30-May 31 annually. New York and New Jersey (the two states bordering Area 4) have already adjusted their regulatory closure to this later date. The changes implemented by this rule ensure consistency between state and Federal Area 4 management measures.
Our proposed rule, published August 5, 2015 (80 FR 46533), solicited comments through September 4, 2015. We received three comments, one from the Atlantic States Marine Fisheries Commission, one from the Atlantic Offshore Lobstermen's Association, and one from the Massachusetts Lobstermen's Association, in response to the proposed rule. A summary of the comments and our responses is provided below.
The wording of the proposed rule already allows a lobster vessel to transit an area closure with lobsters legally caught in other areas. As a result, although we acknowledge the commenters' concerns, we are not modifying the Area 4 transiting provisions from those we proposed.
In addition, changing transiting regulations for Area 4 would create an inconsistency with the transiting regulations for other areas. Changing the transiting provisions in Area 4 could lead industry to believe that lobsters could not be retained onboard while transiting Areas 5 or the Outer Cape. We do not want to create additional confusion. Therefore, we are not modifying the transiting provisions.
This final rule has been determined to be consistent with the provisions of the Atlantic Coastal Act, the National Standards of the Magnuson-Stevens Act, and other applicable laws.
This final rule has been determined to be not significant for the purposes of Executive Order (E.O.) 12866.
This final rule does not contain policies with federalism implications as that term is defined in E.O. 13132. The approved measures are based upon the American Lobster ISFMP that was created by and is overseen by the states. These measures were a result of a modification to Addendum XVII measures, which was approved by the Commission's American Lobster Board, recommended by the Commission for Federal adoption, and are in place at the state level. Consequently, NMFS has consulted with the states in the creation of the ISFMP, which makes recommendations for Federal action. Additionally, these measures would not pre-empt state law and would do nothing to directly regulate the states.
This final rule does not contain a collection of information requirement subject to review and approval by the Office of Management and Budget under the Paperwork Reduction Act.
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires agencies to assess the economic impacts of their regulations on small entities. The objective of the RFA is to consider the impacts of a rulemaking on small entities, and the capacity of those affected by regulations to bear the direct and indirect costs of regulation. We prepared a Final Regulatory Flexibility Analysis (FRFA) for this action as required by section 603 of the RFA. The FRFA describes the economic impact this final rule would have on small entities. The approved management measure would affect small entities (
No public comments were submitted about the IRFA. See the Comments and Responses section for general comments received on the rule's measures.
The RFA recognizes and defines three kinds of small entities: Small businesses; small organizations; and small governmental jurisdictions. The Small Business Administration (SBA) size standards define whether a business entity is small and, thus, eligible for Government programs and preferences reserved for “small business” concerns. Size standards have been established (and recently modified) for all for-profit economic activities or industries in the North American Industry Classification System (NAICS). Designations of large and small entities were based on each entity's 3-year average landings. For entities landing a majority of revenue in shellfish (NAICS 111412), the threshold for “large” is $5.5 million. For entities landing a plurality of revenue in finfish (NAICS 111411), the threshold for “large” is $20.5 million. The number of directly regulated entities for purposes of analyzing the economic impacts and describing those that are small businesses is selected based on permits held. Because this regulation applies only to the businesses that hold Area 4 permits, only those business entities are evaluated. Business entities that do not own vessels with directly regulated permits are not described.
Of the 47 small entities identified in the IRFA, 23 are considered a shellfish business, 12 are considered a finfish business, and 12 could not be identified as either because even though they had a lobster permit (in Area 4), they had no earned revenue from fishing activity. Because they had no revenue in the last 3 years, they would be considered small by default and would also be considered as latent effort.
The entity definition used by the Northeast Fisheries Science Center Social Sciences Branch uses only unique combinations of owners. That is, entities are not combined if they have a shared owner. Section 3 of the Small Business Act defines affiliation as: Affiliation may arise among two or more persons with an identity of interest. Individuals or firms that have identical or substantially identical business or economic interests (such as family members, individuals or firms with common investments, or firms that are economically dependent through contractual or other relationships) may be treated as one party with such interests aggregated (13 CFR 121.103(f)).
The recent addition of vessel owner information to the permit data allows us to better define fishing “businesses.” The vessel ownership data identify all the individual people who own fishing vessels. Vessels can be grouped together according to common owners, which can then be treated as a fishing business for purposes of RFA analyses. Revenues summed across all vessels in the group and the activities that generate those revenues form the basis for determining whether the entity is a large or small business. Ownership data are available for those potentially impacted by this action from 2010 onward.
A person who does not currently own a fishing vessel, but who has owned a qualifying vessel that has sunk, been destroyed, or transferred to another person, must apply for and receive a “confirmation of history” (CPH) if the fishing and permit history of such vessel has been retained lawfully by the applicant. Issuance of a valid CPH preserves the eligibility of the applicant to apply for a permit for a replacement vessel based on the qualifying vessel's fishing and permit history at a subsequent time. The ownership data based on the permits held do not contain information on CPH permits. A total of six CPH's exist for lobster Area 4.
This action contains no new collection-of-information, reporting, or recordkeeping requirements.
Due to the expected high rate of dual permitting and that the states are already compliant with the revised Area 4 seasonal closure, the majority of Federal vessels must already abide by these requirements and have already been impacted. For those vessels not dually permitted, this change in the Area 4 seasonal closure can be expected to have a limited economic impact to permit holders. Because the regulations are consistent with Commission recommendations and current state regulations, alternative measures, such as maintain the status quo, would likely create inconsistencies and regulatory disconnects with the states and would likely worsen potential economic impacts. Therefore, the status quo was not considered reasonable, and for similar reasons, other alternatives that maintained disconnected state and Federal closures were not considered.
Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996 states that, for each rule or group of related rules for which an agency is required to prepare a FRFA, the agency shall publish one or more guides to assist small entities in complying with the rule, and shall designate such publications as “small entity compliance guides.” The agency shall explain the actions a small entity is required to take to comply with a rule or group of rules. As part of this rulemaking process, we will send a small entity compliance guide to all Federal permit holders affected by this action. In addition, copies of this final rule and guide (
Fisheries, fishing.
For the reasons set out in the preamble, 50 CFR part 697 is amended as follows:
16 U.S.C. 5101
(c) * * *
(1) * * *
(xxx) * * *
(B)
(
(
(
(
(
(
(
(
(
(
(
U.S. Office of Personnel Management.
Notice of proposed rulemaking; withdrawal.
The United States Office of Personnel Management (OPM) hereby withdraws a notice of proposed rulemaking (NPRM) to amend the Federal Employees' Group Life Insurance (FEGLI) regulations to allow children of same-sex domestic partners living in states that do not allow same-sex couples to marry to be covered as family members under an eligible individual's FEGLI Option C enrollment.
The proposed rule, published on October 15, 2014, in the
Ronald Brown, Policy Analyst, (202) 606-0004, or by email to
The Office of Personnel Management is withdrawing the proposed rule published October 15, 2014 entitled, “Federal Employees' Group Life Insurance Program: Providing Option C Coverage for Children of Same-Sex Domestic Partners” (79 FR 61788-61790). The proposed regulation would have allowed children of same-sex domestic partners living in states that do not allow same-sex couples to marry to be covered as family members under an eligible individual's FEGLI Option C enrollment. On June 26, 2015, the United States Supreme Court ruled in
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to adopt a new airworthiness directive (AD) for certain Pratt & Whitney Canada Corp. (PWC) PT6A-60AG, -65AG, -67AF, and -67AG turboprop engines. This proposed AD was prompted by incidents of corrosion and perforation of the two-ply Cu-Be bellows in Woodward fuel control units (FCUs). This proposed AD would require removing the Woodward FCU and installing an FCU that is eligible for installation. We are proposing this AD to prevent failure of the Woodward FCU, which could lead to failure of the engine, in-flight shutdown, and loss of control of the airplane.
We must receive comments on this proposed AD by January 11, 2016.
You may send comments by any of the following methods:
•
•
•
•
For service information identified in this proposed AD, contact Pratt & Whitney Canada Corp., 1000 Marie-Victorin, Longueuil, Quebec, Canada, J4G 1A1; phone: 800-268-8000; fax: 450-647-2888; Web site:
You may examine the AD docket on the Internet at
Besian Luga, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781-238-7750; fax: 781-238-7199; email:
We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the
We will post all comments we receive, without change, to
The Transport Canada Civil Aviation, which is the aviation authority for Canada, has issued Canada AD CF-2015-23, dated July 23, 2015 (referred to hereinafter as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states:
There have been in-service incidents involving corrosion and perforation of the two-ply Cu-Be bellows in Woodward Fuel Control Units (FCU) fitted to PT6A-60, -65 and -67 series engines. In certain instances, associated bellows leakage has resulted in loss of engine power, in-flight shutdowns (IFSD) and even accidents. Engines installed on the aeroplanes that are used for crop dusting, due to the operational environment, are more susceptible to corrosion damage to the subject bellows.
Loss of engine power or shut down in flight by itself usually is not considered a catastrophic event. However, on an aeroplane with single engine installation, an engine power loss or IFSD at a critical phase of flight could adversely affect the safe operation of the aeroplane.
This AD affects the PT6A-60AG, PT6A-65AG, PT6A-67AF, and PT6A-67AG engine models because they have the affected Woodward FCUs installed.
You may obtain further information by examining the MCAI in the AD docket on the Internet at
PWC has issued Service Bulletin (SB) No. PT6A-72-14389, Revision 3, dated January 27, 2011 and SB No. PT6A-72-13473, Revision 1, dated May 26, 2015. The service information describes procedures for replacing Woodward FCUs. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the
This product has been approved by the aviation authority of Canada, and is approved for operation in the United States. Pursuant to our bilateral agreement with Canada, they have notified us of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all information provided by Transport Canada Civil Aviation and determined the unsafe condition exists and is likely to exist or develop on other products of the same type design. This NPRM would require replacing the Woodward FCU.
We estimate that this proposed AD affects 341 engines installed on airplanes of U.S. registry. We also estimate that it would take about 1.5 hours per engine to comply with this proposed AD. The average labor rate is $85 per hour. Required parts cost about $1,000 per engine. Based on these figures, we estimate the cost of this proposed AD on U.S. operators to be $384,478.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed above, I certify this proposed regulation:
(1) Is not a “significant regulatory action” under Executive Order 12866,
(2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),
(3) Will not affect intrastate aviation in Alaska to the extent that it justifies making a regulatory distinction, and
(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
We must receive comments by January 11, 2016.
None.
This AD applies to Pratt & Whitney Canada Corp. (PWC) PT6A-60AG, BS919 and BS1048 with pre-SB No. PT6A-72-13402, dated August 12, 2005 configuration; PT6A-65AG, BS708, BS903, BS1101, and BS1102 with pre-SB PT6A-72-13408, dated July 3, 2006 configuration; PT6A-67AF; and PT6A-67AG turboprop engines with Woodward fuel control units (FCUs) installed.
This AD was prompted by incidents of corrosion and perforation of the two-ply Cu-Be bellows in Woodward FCUs. We are issuing this AD to prevent failure of the Woodward FCU, which could lead to failure of the engine, in-flight shutdown, and loss of control of the airplane.
Comply with this AD within the compliance times specified, unless already done.
(1) For PWC PT6A-67AF and PT6A-67AG engines, within 500 flight hours (FHs) or one year after the effective date of this AD, whichever occurs first, replace the Woodward FCU. Use paragraphs 3.A. and 3.C. of PWC Service Bulletin (SB) No. PT6A-72-14389, Revision 3, dated January 27, 2011 to replace the FCU.
(2) For PWC PT6A-60AG BS919 and BS1048 engines with pre-SB No. PT6A-72-13402 configuration, within 36 months after the effective date of this AD, replace the Woodward FCU. Use paragraph 3.C.(1) and 3.C.(3) of PWC SB No. PT6A-72-13473, Revision 1, dated May 26, 2015 to replace the FCU.
(3) For PWC PT6A-65AG BS708, BS903, BS1101, and BS1102 engines with pre-SB PT6A-72-13408 configuration, within 36 months after the effective date of this AD, replace the Woodward FCU. Use paragraphs 3.A.(1) and 3.A.(3) of PWC SB No. PT6A-72-13473, Revision 1, dated May 26, 2015 to replace the FCU.
You may take credit for the actions required by paragraph (e) of this AD if you performed the actions before the effective date of this AD in accordance with PWC SB No. PT6A-72-14389, Revision 2, dated April 23, 2009; or SB No. PT6A-72-13473, dated March 12, 2015; or SB No. PT6A-72-13408, Revision 1, dated March 12, 2015; or earlier versions.
The Manager, Engine Certification Office, FAA, may approve AMOCs for this AD. Use the procedures found in 14 CFR 39.19 to make your request. You may email your request to:
(1) For more information about this AD, contact Besian Luga, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781-238-7750; fax: 781-238-7199; email:
(2) Refer to MCAI Transport Canada AD CF-2015-23, dated July 23, 2015, for more information. You may examine the MCAI in the AD docket on the Internet at
(3) PWC SB No. PT6A-72-14389, Revision 3, dated January 27, 2011 and SB No. 13473, Revision 1, dated May 26, 2015, can be obtained from PWC, using the contact information in paragraph (h)(4) of this proposed AD.
(4) For service information identified in this proposed AD, contact Pratt & Whitney Corp., 1000 Marie-Victorin, Longueuil, Quebec, Canada, J4G 1A1; phone: 800-268-8000; fax: 450-647-2888; Web site:
(5) You may view this service information at the FAA, Engine & Propeller Directorate, 12 New England Executive Park, Burlington, MA. For information on the availability of this material at the FAA, call 781-238-7125.
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to supersede airworthiness directive (AD) 2015-04-03 that applies to certain Rolls-Royce plc (RR) RB211 Trent 768-60, 772-60, and 772B-60 turbofan engines. AD 2015-04-03 requires inspection of the sealing sleeve on the high-pressure/intermediate-pressure (HP/IP) turbine support internal oil feed tube and removal of those sealing sleeves affected by AD 2015-04-03. This proposed AD would require removal of either the affected sealing sleeve only or both the affected sealing sleeve and the oil feed tube. We are proposing this AD to prevent failure of the HP/IP turbine support internal oil feed tube, which could lead to uncontained engine failure and damage to the airplane.
We must receive comments on this proposed AD by January 11, 2016.
You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:
•
•
•
•
For service information identified in this proposed AD, contact Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, DE24 8BJ, United Kingdom; phone: 011-44-1332-242424; fax: 011-44-1332-249936; email:
You may examine the AD docket on the Internet at
Philip Haberlen, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781-238-7770; fax: 781-238-7199; email:
We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the
We will post all comments we receive, without change, to
On February 11, 2015, we issued AD 2015-04-03, Amendment 39-18105 (80
Since we issued AD 2015-04-03, Amendment 39-18105 (80 FR 9380, February 23, 2015), we received a report of high oil consumption on an engine that did not have an affected sealing sleeve. The manufacturer's investigation revealed that certain oil feed tube threaded end adapters were manufactured with the outer diameter larger than the drawing maximum, which can cause binding of the sliding joint and ultimately lead to low-cycle fatigue failure of the HP/IP turbine support internal oil feed tube. Also since we issued AD 2015-04-03, the European Aviation Safety Agency has issued AD 2015-0105R1, dated August 18, 2015, which requires inspection of the affected sealing sleeve and removal of the affected sealing sleeve or removal of both the affected sealing sleeve and oil feed tube.
RR has issued RR Alert Non-Modification Service Bulletin (NMSB) No. RB.211-72-AJ035, Revision 2, dated August 10, 2015 and RR Service Bulletin (SB) No. RB.211-72-H754, dated October 1, 2014. The Alert NMSB No. RB.211-72-AJ035, Revision 2, dated August 10, 2015, provides guidance on identification of the sealing sleeve, part number (P/N) FW15003, and replacement of the non-conforming sealing sleeve, P/N FW15003, with a conforming sealing sleeve, P/N FW15003. The SB No. RB.211-72-H754, dated October 1, 2014, provides information on the replacement of the sealing sleeve, P/N FW15003, and oil feed tube, P/N FW14193, with a sealing sleeve, P/N KH28323 and oil feed tube, P/N KH28324. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the
We are proposing this AD because we evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the same type design.
This proposed AD would require removal of the affected sealing sleeve only or both the affected sealing sleeve and the oil feed tube. Both corrective actions eliminate the unsafe condition caused by affected sealing sleeves and/or affected oil feed tube threaded end adapters.
We estimate that this proposed AD affects 58 engines installed on airplanes of U.S. registry. We also estimate that it would take about 1.2 hours per engine to comply with this proposed AD. The average labor rate is $85 per hour. Required parts cost approximately $5,850 per engine. Based on these figures, we estimate the cost of this proposed AD on U.S. operators to be $345,216.
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority.
We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
We have determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.
For the reasons discussed above, I certify that the proposed regulation:
(1) Is not a “significant regulatory action” under Executive Order 12866,
(2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),
(3) Will not affect intrastate aviation in Alaska to the extent that it justifies making a regulatory distinction, and
(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
We must receive comments by January 11, 2016.
This AD supersedes AD 2015-04-03.
This AD applies to Rolls-Royce plc (RR) RB211 Trent 768-60, 772-60, and 772B-60 turbofan engines, all serial numbers, except those engines:
(1) That have had Modification 72-H754 applied in production, or
(2) that have been modified in accordance with RR Service Bulletin (SB) No. RB.211-72-H754, dated October 1, 2014, or
(3) with sealing sleeve, part number (P/N) FW15003, with markings 102013, 112013, or 102013L.
This AD was prompted by fractures of the high-pressure/intermediate pressure (HP/IP) turbine support internal oil feed tube. We are issuing this AD to prevent failure of the HP/IP turbine support internal oil feed tube, which could result in uncontained engine failure and damage to the airplane.
Comply with this AD within the compliance times specified, unless already done.
(1) If sealing sleeve, P/N FW15003, is installed without markings 102013, 112013, or 102013L, or if the markings cannot be sufficiently identified, then within 1,600 flight cycles or 24 months after the effective date of this AD, whichever occurs first:
(i) Remove the affected sealing sleeve, P/N FW15003, and replace it with a sealing sleeve eligible for installation. Use paragraph 3.A.(4)(b) of RR Alert Non-Modification Service Bulletin (NMSB) No. RB.211-72-AJ035, Revision 2, dated August 10, 2015, to perform the part replacement, or,
(ii) Remove the affected sealing sleeve, P/N FW15003, and the oil feed tube, P/N FW14193, and replace with parts eligible for installation. Use paragraph 3.B. or 3.C., as appropriate, of RR SB No. RB.211-72-H754, dated October 1, 2014, to perform the parts replacement.
(2) Reserved.
The Manager, Engine Certification Office, FAA, may approve AMOCs to this AD. Use the procedures found in 14 CFR 39.19 to make your request. You may email your request to:
(1) For more information about this AD, contact Philip Haberlen, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781-238-7770; fax: 781-238-7199; email:
(2) Refer to MCAI European Aviation Safety Agency AD 2015-0105R1, dated, August 18, 2015, for more information. You may examine the MCAI in the AD docket on the Internet at
(3) RR Alert NMSB No. RB.211-72-AJ035, Revision 2, dated August 10, 2015 and RR SB No. RB.211-72-H754, dated October 1, 2014, can be obtained from RR, using the contact information in paragraph (g)(4) of this AD.
(4) For service information identified in this AD, contact Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, DE24 8BJ, United Kingdom; phone: 011-44-1332-242424; fax: 011-44-1332-249936; email:
(5) You may view this service information at the FAA, Engine & Propeller Directorate, 12 New England Executive Park, Burlington, MA. For information on the availability of this material at the FAA, call 781-238-7125.
Environmental Protection Agency (EPA).
Proposed rule.
The Environmental Protection Agency (EPA) is proposing to convert the conditional approval of revisions to the Pennsylvania State Implementation Plan (SIP) submitted by the Commonwealth of Pennsylvania on behalf of the Allegheny County Health Department (ACHD) to a full approval. The SIP revision included amendments to the ACHD Rules and Regulations, Article XXI, Air Pollution Control, and meets the requirement to adopt Reasonably Available Control Technology (RACT) for sources covered by EPA's Control Techniques Guidelines (CTG) standards for the following categories: Miscellaneous metal and/or plastic parts surface coating processes, automobile and light-duty truck assembly coatings, miscellaneous industrial adhesives, and fiberglass boat manufacturing materials. Upon review of the submittal, EPA found that the average monomer volatile organic compound (VOC) content limits were referenced but not included in the regulation for fiberglass boat manufacturing materials. ACHD has revised the regulation and submitted the table of VOC content limits for fiberglass boat manufacturing materials to EPA in order to address specific RACT requirements for Allegheny County. EPA is, therefore, proposing to convert the conditional approval to a full approval of the revisions to the Pennsylvania SIP in accordance with the requirements of the Clean Air Act (CAA).
Written comments must be received on or before December 10, 2015.
Submit your comments, identified by Docket ID Number EPA-R03-OAR-2014-0475 by one of the following methods:
A.
B.
C.
D.
Irene Shandruk, (215) 814-2166, or by email at
Section 172(c)(1) of the CAA provides that SIPs for nonattainment areas must include reasonably available control measures (RACM), including RACT, for sources of emissions. Section 182(b)(2)(A) provides that for certain nonattainment areas, states must revise their SIP to include RACT for sources of VOC emissions covered by a CTG document issued after November 15, 1990 and prior to the area's date of attainment. EPA defines RACT as “the lowest emission limitation that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility.” 44 FR 53761 (September 17, 1979).
CTGs are documents issued by EPA intended to provide state and local air pollution control authorities information to assist them in determining RACT for VOC from various sources. Section 183(e)(3)(c) provides that EPA may issue a CTG in lieu of a national regulation as RACT for a product category where EPA determines that the CTG will be substantially as effective as regulations in reducing emissions of VOC in ozone nonattainment areas. The recommendations in the CTG are based upon available data and information and may not apply to a particular situation based upon the circumstances. States can follow the CTG and adopt state regulations to implement the recommendations contained therein, or they can adopt alternative approaches. In either case, states must submit their RACT rules to EPA for review and approval as part of the SIP process.
In 1977 and 1978, EPA published CTGs for miscellaneous metal and plastic parts surface coatings, automobile and light-duty truck assembly coatings, miscellaneous industrial adhesives, and fiberglass boat manufacturing materials. After reviewing the 1977/1978 CTGs for these industries, conducting a review of currently existing state and local VOC emission reduction approaches for these industries, and taking into account any information that has become available since then, EPA developed new CTGs entitled
On November 15, 2013, Pennsylvania Department of Environmental Protection (PADEP) submitted to EPA on behalf of ACHD a SIP revision concerning the adoption of the EPA CTGs for miscellaneous metal and/or plastic parts surface coating processes, automobile and light-duty truck assembly coatings, miscellaneous industrial adhesives, and fiberglass boat manufacturing materials in Allegheny County. Allegheny County is adopting EPA's CTG standards for miscellaneous metal and/or plastic parts surface coating processes, automobile and light-duty truck assembly coatings, miscellaneous industrial adhesives, and fiberglass boat manufacturing materials. These regulations, with a state effective date of June 8, 2013, are contained in the ACHD Rules and Regulations, Article XXI, Air Pollution Control sections 2105.83 (Control of VOC Emissions from Miscellaneous Metal and/or Plastic Parts Surface Coating Processes), 2105.84 (Control of VOC Emissions from Automobile and Light-Duty Truck Assembly Coatings), 2105.85 (Control of VOC Emissions from Miscellaneous Industrial Adhesives), and 2105.86 (Control of VOC Emissions from Fiberglass Boat Manufacturing Materials) in order to establish: (1) Applicability for miscellaneous metal and/or plastic parts surface coating processes, automobile and light-duty truck assembly coatings, miscellaneous industrial adhesives, and fiberglass boat manufacturing materials; (2) exemptions; (3) record-keeping and work practice requirements; and (4) emission limitations. Upon review of the November 15, 2013 submittal, EPA found that a table of average monomer VOC content limit for fiberglass boat manufacturing materials was referenced; however, the table was erroneously not included in the regulation. Pursuant to section 110(k)(4) of the CAA, PADEP submitted on behalf of ACHD a letter dated July 16, 2014 committing to submit a SIP revision to EPA addressing this error in order to satisfy the RACT requirements under the 8-hour ozone standard for Allegheny County.
On November 26, 2014 (79 FR 70470), EPA conditionally approved the SIP revisions concerning the adoption of these CTGs. On September 9, 2015, PADEP submitted to EPA on behalf of ACHD a supplemental SIP revision containing the missing table of VOC content limits, and thereby addressing the erroneous deficiency in the regulation for fiberglass boat manufacturing materials.
EPA is proposing to convert from conditional approval to full approval the Commonwealth of Pennsylvania SIP revision submitted on November 15, 2013, as supplemented with the September 9, 2015 SIP submittal, which consists of amendments to the ACHD Rules and Regulations, Article XXI, Air Pollution Control for adopting RACT for sources covered by EPA's CTG standards for the following categories: Miscellaneous metal and/or plastic parts surface coating processes, automobile and light-duty truck assembly coatings, miscellaneous industrial adhesives, and fiberglass boat manufacturing materials. Pursuant to section 110(k)(4) of the CAA, the conditional approval was based upon a letter from PADEP on behalf of ACHD dated July 16, 2014 committing to submit to EPA, no later than twelve months from EPA's final conditional approval of ACHD's adoption of CTGs for miscellaneous metal and/or plastic parts surface coating processes, automobile and light-duty truck assembly coatings, miscellaneous industrial adhesives, and fiberglass boat manufacturing materials, an additional SIP revision to address the missing table of average monomer VOC content in the current regulation for fiberglass boat manufacturing materials. On September 9, 2015, PADEP on behalf of ACHD submitted a supplemental SIP revision containing the table of monomer VOC content limits for fiberglass boat manufacturing materials. EPA has determined that ACHD has satisfied this condition, and therefore, EPA is proposing to remove the conditional nature of its approval and replace it with a full approval of Allegheny County's adoption of CTGs for miscellaneous metal and/or plastic parts surface coating processes,
In this rulemaking, the EPA is proposing to include in a final EPA rule regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by reference the Commonwealth of Pennsylvania rules regarding controls of VOC emissions discussed in Section III of this preamble. The EPA has made, and will continue to make, these documents generally available electronically through
Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely proposes to approve state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action:
• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);
• does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501
• is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601
• does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);
• does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);
• is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);
• is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);
• is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and
• does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).
In addition, this proposed rule, pertaining to ACHD's adoption of CTG standards for miscellaneous metal and/or plastic parts surface coating processes, automobile and light-duty truck assembly coatings, miscellaneous industrial adhesives, and fiberglass boat manufacturing materials, does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.
Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Ozone, Volatile organic compounds.
42 U.S.C. 7401
Environmental Protection Agency (EPA).
Notice of public comment period and opportunity to request a public hearing.
The U.S. Environmental Protection Agency (EPA) hereby gives public notice that the EPA has received a complete application from the Commonwealth of Kentucky requesting approval of its Underground Injection Control (UIC) Program for Class II injection wells. The EPA has determined the application contains all the required elements; see the
Comments will be accepted on or before December 23, 2015. Requests for a public hearing must be received by December 9, 2015. Requests for a hearing should be mailed to Nancy Marsh (see the
Submit your comments, identified by Docket ID No. EPA-HQ-OW-2015-0372 to the
Publicly available docket materials are available either electronically in
(1) U.S. Environmental Protection Agency, Region 4, Library, 9th Floor, 61 Forsyth Street SW., Atlanta, Georgia 30303. The Library is open from 8:00 a.m. to 4:30 p.m. Monday through Friday, excluding legal holidays. The telephone number for the Library is (404) 562-8190.
(2) Kentucky Department of Natural Resources, Division of Oil and Gas 1025 Capital Center Drive, Frankfort, Kentucky 40601. The Office is open from 8:00 a.m. to 12:00 p.m. and 1:00 p.m.-5:00 p.m. Monday through Friday, excluding legal holidays. Please contact Marvin Combs at (502) 573-0147.
(3) Kentucky Underground Injection Control Program, Primacy Approval: EPA West, Room 3334, 1301 Constitution Ave. NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566-1744, and the telephone number for the OW Docket is (202) 566-2426.
Nancy Marsh, GW & UIC Section, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303; telephone number: (404) 562-9350; fax number: (404) 562-9439; email address:
The Commonwealth of Kentucky has submitted an application to regulate Class II injection wells in the State. The application was determined to be complete because it contained all of the requirements of the
Federal Communications Commission.
Petitions for reconsideration.
Petitions for Reconsideration (Petitions) have been filed in the Commission's rulemaking proceeding by: Kim M. Keenan, on behalf of the Multicultural Media, Telecom and Internet Council; Donald L. Herman, Jr., on behalf of the Rural-26 DE Coalition; and D. Cary Mitchell, on behalf of the Blooston Rural Carriers.
Oppositions to the Petitions must be filed on or before November 25, 2015. Replies to an opposition must be filed on or before December 7, 2015.
Federal Communications Commission, 445 12th Street SW., Washington, DC 20554.
Leslie Barnes, Wireless Telecommunications Bureau, (202) 418-1612, email:
This is a summary of Commission's document, Report No. 3031, released November 4, 2015. The full text of the Petitions is available for viewing and copying at the FCC Reference Information Center, 445 12th Street SW., Room CY-A257, Washington, DC 20554 or may be accessed online via the Commission's Electronic Comment Filing System at
Federal Communications Commission.
Proposed rule.
In this document, the Federal Communications Commission's Wireless Telecommunications Bureau (Bureau) seeks comment on a petition for declaratory ruling on the regulatory status of mobile messaging services.
Comments are due November 20, 2015. Reply Comments are due December 21, 2015.
Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47 CFR 1.415 and 1.419, interested parties may file comments and reply comments on or before the dates indicated above. All filings should refer to WT Docket No. 08-7. Comments may be filed using the Commission's Electronic Comment Filing System (ECFS).
Filings can be sent by hand or messenger delivery, by commercial overnight courier, or by first-class or overnight U.S. Postal Service mail. All filings must be addressed to the Commission's Secretary, Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings for the Commission's Secretary must be delivered to FCC Headquarters at 445 12th Street SW., Room TW-A325,
Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority mail must be addressed to 445 12th Street SW., Washington, DC 20554.
Daniel Ball, Wireless Telecommunications Bureau, 202-418-1310, email
This is a summary of the Bureau's Public Notice, DA No. 15-1169 WT Docket No 08-7, released October 13, 2015. The full text of this document is available for inspection and copying during business hours in the FCC Reference Information Center, Portals II, 445 12th Street SW., Room CY-A257, Washington, DC 20554. Also, it may be purchased from the Commission's duplicating contractor at Portals II, 445 12th Street SW., Room CY-B402, Washington, DC 20554; Copies of the Public Notice also may be obtained via ECFS by entering the docket number WT Docket 15-180; DA No. 15-865. Additionally, the complete item is available on the Federal Communications Commission's Web site at
By this Public Notice, the Wireless Telecommunications Bureau seeks comment on a petition for a declaratory ruling on the regulatory status of mobile messaging services.
On August 28, 2015, Twilio Inc. filed a petition for an expedited declaratory ruling, asking the Commission “to declare that messaging services are governed by Title II” of the Communications Act. Today's Public Notice seeks comment on the Twilio Petition and seeks to refresh the record in this proceeding in light of marketplace and legal developments since the Commission sought comment in 2008 on a similar petition.
Twilio describes itself as a “cloud-based developer-platform company” that facilitates “merging cloud computing, web services, and traditional voice and messaging communications.” In its Petition, Twilio asserts that wireless providers engage in a variety of discriminatory and anti-competitive practices that cannot be adequately addressed absent a declaratory ruling classifying messaging services under Title II. Twilio further asserts that, under judicial and Commission precedent, messaging services constitute telecommunications services and commercial mobile radio services and are thus subject to Title II.
The Commission invites comment on the issues raised in the Twilio Petition and the Commission seeks to refresh the record on the Joint Petition. The Commission invites commenters to offer detailed estimates—numerical estimates if available—of any costs or benefits claimed.
This proceeding has been designated as a “permit-but-disclose” proceeding in accordance with the Commission's
In proceedings governed by rule 1.49(f) or for which the Commission has made available a method of electronic filing, written
Office of Human Resource Management, Departmental Management, USDA.
Notice of Appointment.
This notice announces the appointment of the members of the Senior Executive Service (SES) and Senior Level (SL) and Scientific or Professional (ST) Performance Review Boards (PRB) for the U.S. Department of Agriculture (USDA), as required by 5 U.S.C. 4314(c)(4). The Performance Review Board assures consistency, stability, and objectivity in the performance appraisal process. USDA has a total of six PRBs: the Secretary's PRB; Departmental Management and Staff Offices PRB; Natural Resources and Environment PRB; Farm and Foreign Agricultural Services, Rural Development, and Food, Nutrition, and Consumer Services PRB; Marketing and Regulatory Programs, Food Safety PRB; and Research, Education, and Economics PRB. The PRBs are comprised of career and noncareer executives and Chairpersons to make recommendations on the performance of executives to the Secretary, including performance ratings and bonuses for SES, SL, and ST employees. The boards meet annually to review and evaluate performance appraisal documents and provide written recommendations to the Secretary for final approval of performance ratings and base salary increases.
In accordance with 5 U.S.C. 4314(c)(4), the following executives may be appointed by mission areas to the USDA PRBs:
Effective November 2, 2015.
Roberta Jeanquart, Director, Office of Human Resources Management, telephone: (202) 260-8718, email:
Animal and Plant Health Inspection Service, USDA.
Extension of approval of an information collection; comment request.
In accordance with the Paperwork Reduction Act of 1995, this notice announces the Animal and Plant Health Inspection Service's intention to request an extension of approval of an information collection associated with the regulations for select agent registration.
We will consider all comments that we receive on or before January 11, 2016.
You may submit comments by either of the following methods:
• Federal eRulemaking Portal: Go to
• Postal Mail/Commercial Delivery: Send your comment to Docket No. APHIS-2015-0083, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118, Riverdale, MD 20737-1238.
Supporting documents and any comments we receive on this docket may be viewed at
For information on the regulations for select agent registration, contact Mr. Charles L. Divan, Operations Director, Agriculture Select Agent Services, National Import Export Services, VS, APHIS, 4700 River Road Unit 2, Riverdale, MD 20737; (301) 851-3300, option 3. For copies of more detailed information on the information collection, contact Ms. Kimberly Hardy, APHIS' Information Collection Coordinator, at (301) 851-2727.
APHIS regulations for select agents and toxins are contained in 7 CFR part 331 (plant) and 9 CFR part 121 (animal and overlap
The registration process is designed to obtain critical information concerning individuals or entities in possession of select agents or toxins, as well as the specific characteristics of the agents or toxins, including name, strain, and genetic information. These data are needed, in part, to allow APHIS to determine the biosafety and biocontainment level of an entity as well as the entity's security situation. This, in turn, helps APHIS to ensure that appropriate safeguard, containment, and disposal requirements commensurate with the risk of the agent or toxin are present at the entity, thus preventing access to such agents and toxins for use in domestic or international terrorism. APHIS will also request information to determine that individuals seeking to register have a lawful purpose to possess, use, or transfer agents or toxins.
We are asking the Office of Management and Budget (OMB) to approve our use of this information collection activity for an additional 3 years.
The purpose of this notice is to solicit comments from the public (as well as affected agencies) concerning our information collection. These comments will help us:
(1) Evaluate whether the collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility;
(2) Evaluate the accuracy of our estimate of the burden of the collection of information, including the validity of the methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to be collected; and
(4) Minimize the burden of the collection of information on those who are to respond, through use, as appropriate, of automated, electronic, mechanical, and other collection technologies, such as electronic submission of responses.
All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record.
The Department of Agriculture has submitted the following information collection requirement(s) to OMB for review and clearance under the Paperwork Reduction Act of 1995, Public Law 104-13. Comments regarding (a) whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency's estimate of burden including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or
Comments regarding this information collection received by December 10, 2015 will be considered. Written comments should be addressed to: Desk Officer for Agriculture, Office of Information and Regulatory Affairs, Office of Management and Budget (OMB), New Executive Office Building, 725 17th Street NW., Washington, DC 20502. Commenters are encouraged to submit their comments to OMB via email to:
An agency may not conduct or sponsor a collection of information unless the collection of information displays a currently valid OMB control number and the agency informs potential persons who are to respond to the collection of information that such persons are not required to respond to the collection of information unless it displays a currently valid OMB control number.
The Department of Agriculture has submitted the following information collection requirement(s) to OMB for review and clearance under the Paperwork Reduction Act of 1995, Public Law 104-13. Comments regarding (a) whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency's estimate of burden including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology should be addressed to: Desk Officer for Agriculture, Office of Information and Regulatory Affairs, Office of Management and Budget (OMB),
An agency may not conduct or sponsor a collection of information unless the collection of information displays a currently valid OMB control number and the agency informs potential persons who are to respond to the collection of information that such persons are not required to respond to the collection of information unless it displays a currently valid OMB control number.
November 23, 2015, 1 p.m. EDT.
U.S. Chemical Safety Board, 1750 Pennsylvania Ave. NW., Suite 910, Washington, DC 20006.
Open to the public.
The Chemical Safety and Hazard Investigation Board (CSB) will convene a public meeting on November 23, 2015, starting at 1 p.m. EDT in Washington, DC at the CSB offices located at 1750 Pennsylvania Avenue NW., Suite 910. The Board will discuss investigations and operational activities through the end of the calendar year and will also provide an update on CSB audits conducted by the EPA Inspector General. An opportunity for public comment will be provided.
The meeting is free and open to the public. If you require a translator or interpreter, please notify the individual listed below as the “Contact Person for Further Information,” at least three business days prior to the meeting.
A conference call line will be provided for those who cannot attend in person. Please use the following dial-in number to join the conference: 1-888-862-6557, confirmation number 41154160.
The CSB is an independent federal agency charged with investigating accidents and hazards that result, or may result, in the catastrophic release of extremely hazardous substances. The agency's Board Members are appointed by the President and confirmed by the Senate. CSB investigations look into all aspects of chemical accidents and hazards, including physical causes such as equipment failure as well as inadequacies in regulations, industry standards, and safety management systems.
The time provided for public statements will depend upon the number of people who wish to speak. Speakers should assume that their presentations will be limited to three minutes or less, but commenters may submit written statements for the record.
Amy McCormick, Board Affairs Specialist,
United States Commission on Civil Rights.
Notice of Commission business meeting.
Date and Time: Wednesday, November 18, 2015; 10 a.m. EST.
Place: 1331 Pennsylvania Ave. NW., Suite 1150, Washington, DC.
Lenore Ostrowsky, Acting Chief, Public Affairs Unit (202) 376-8591.
Hearing-impaired persons who will attend the briefing and require the services of a sign language interpreter should contact Pamela Dunston at (202) 376-8105 or at
This meeting is open to the public.
Bureau of the Census, Department of Commerce.
Notice of public meeting.
The Bureau of the Census (U.S. Census Bureau) is giving notice of
December 11, 2015. The meeting will begin at approximately 9:00 a.m. and adjourn at approximately 4:30 p.m.
The meeting will be held at the U.S. Census Bureau Conference Center, 4600 Silver Hill Road, Suitland, MD 20746.
James R. Spletzer, Designated Federal Official, Department of Commerce, U.S. Census Bureau, Research and Methodology Directorate, Room 5K175, 4600 Silver Hill Road, Washington, DC 20233, telephone 301-763-4069, email:
Members of the FESAC are appointed by the Secretary of Commerce. The Committee advises the Directors of the BEA, the Census Bureau, and the Commissioner of the Department of Labor's BLS, on statistical methodology and other technical matters related to the collection, tabulation, and analysis of federal economic statistics. The Committee is established in accordance with the Federal Advisory Committee Act (Title 5, United States Code, Appendix 2).
The meeting is open to the public, and a brief period is set aside for public comments and questions. Persons with extensive questions or statements must submit them in writing at least three days before the meeting to the Designated Federal Official named above. If you plan to attend the meeting, please register by Tuesday, December 1, 2015. You may access the online registration form with the following link:
This meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should also be directed to the Designated Federal Official as soon as known, and preferably two weeks prior to the meeting.
Due to increased security and for access to the meeting, please call 301-763-9906 upon arrival at the Census Bureau on the day of the meeting. A photo ID must be presented in order to receive your visitor's badge. Visitors are not allowed beyond the first floor.
The St. Joseph County Airport Authority, grantee of FTZ 125, submitted a notification of proposed production activity to the FTZ Board on behalf of ASA Electronics, LLC (ASA), operator of Subzone 125D, for ASA's facility located in Elkhart, Indiana. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on October 21, 2015.
ASA already has authority to produce motor vehicle radio/cassette players, radio/compact disc players, compact disc players, speakers, video observation systems, TV/video cassette recorder/digital video disk entertainment systems, and flip down video screens within Subzone 125D. The current request would add new finished products and foreign-status materials and components to the scope of authority. Pursuant to 15 CFR 400.14(b), FTZ activity would be limited to the specific foreign-status components and specific finished products described in the submitted notification (as described below) and subsequently authorized by the FTZ Board.
Production under FTZ procedures could exempt ASA from customs duty payments on the foreign status materials and components used in export production. On its domestic sales, ASA would be able to choose the duty rates during customs entry procedures that apply to: Microphones; audio speakers; amplifiers; digital video disk (DVD) players; observation cameras; radios; liquid crystal display (LCD) monitors; television antennas; radar/navigation antennas; power control systems; camera switchers; public address systems; insulated coaxial cables; and, wire harnesses (duty rate ranges from free to 5.3%) for the foreign-status inputs noted below and in the existing scope of authority. Customs duties also could possibly be deferred or reduced on foreign status production equipment.
The components sourced from abroad include: plastic bags/packaging; foam packaging; plastic radio housings/TV cabinets/speaker grills; rubber gaskets; paper insert packaging/retail box packaging/manuals; steel bolts/screws; zinc camera housings; metal brackets/sleeves; camera receivers-wireless; microphones; audio speakers/amplifiers; subwoofer speakers; speaker grills; DVD players; memory cards-SD; wireless transmitters; observation cameras; radios; rear view mirror monitors; LCD monitors; TV antennas; radar/navigation antennas; printed circuit boards; TV tuners; fuses; power filters; bulkhead coaxial camera connectors; power control systems; camera switchers; diodes and light emitting diodes; public address systems; insulated coaxial cables; and, wire harnesses (duty rate ranges from free to 5.5%).
Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is December 21, 2015.
A copy of the notification will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230-0002, and in the “Reading Room” section of the FTZ Board's Web site, which is accessible via
For further information, contact Pierre Duy at
The Charlotte Regional Partnership, Inc., grantee of FTZ 57, submitted a notification of proposed production activity to the FTZ Board on behalf of DNP Imagingcomm America Corporation (DNP), operator of Subzone 57C, located in Concord, North Carolina. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on October 27, 2015.
DNP already has authority to slit foreign jumbo rolls of thermal transfer ribbons (TTR) and STR and to assemble STR photo printer components (including photo printer packages—printer cartridges and paper) within Subzone 57C. The current request would add certain foreign-status materials and components to the scope of authority. DNP's new activity would involve manufacturing ink and coating polyethylene terephalate (PET) film to produce finished STR jumbo rolls. The finished STR jumbo rolls would then be slit and combined with other components to make photo cartridges that will be assembled with foreign photo paper to make photo printer packages. Pursuant to 15 CFR 400.14(b), additional FTZ authority would be limited to the specific foreign-status materials/components described in the submitted notification (as described below) and subsequently authorized by the FTZ Board.
Production under FTZ procedures could exempt DNP from customs duty payments on the foreign-status materials/components used in export production. On its domestic sales, DNP would be able to choose the duty rate during customs entry procedures that applies to the photo printer packages (duty-free) for the foreign-status materials/components noted below and in the existing scope of authority. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.
The materials/components sourced from abroad include: Talc hydrated magnesium silica; silicone dioxide; polyisocyanate prepolymer; dihydroxy bis ammonium lactate-titanium (IV) 2 propanal water; zinc stearyl phosphate; isocyanate resin; 2-H benzotriazol-2YL 4.6-bis 1 methyl 1 phenylethyl phenol; substituted heterocyclic compound; paraffin and hydrocarbon waxes; ethylcarbamate derivative; indophenol derivative; solvent dye (blue, violet, yellow, red); pyrazolone derivative; 2.2-(1.2-ethenediyldi-4.1-phenylene) bisbenzoxazole; acrylic copolymer solution; epoxypropoxy propyl; black dye; hydros colloidal alumina; polyaniline-sulfonic acid; vinyl acetal polymers; acrylic resin for coating; polyvinyl butyral; polyester resin; acrylate resin; ethylene glycol monobutyl ether; copolyester; synthetic resin; polyurethane resin; methyl silsesquioxane; plastic tape/labels/film/cores/flanges/spindles/caps; empty cartridges; smart cards (radio frequency identification devices); 4.5 micron polyethylene terephalate film; and photo paper (duty rates range from free to 6.5%). The request indicates that any foreign-status inputs (including PET film) subject to an antidumping/countervailing duty (AD/CVD) order will be admitted to the zone in domestic (duty-paid) status (19 CFR Sec. 146.43).
Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is December 21, 2015.
A copy of the notification will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230-0002, and in the “Reading Room” section of the FTZ Board's Web site, which is accessible via
Diane Finver at
Enforcement and Compliance, International Trade Administration, Department of Commerce.
The Department of Commerce (the Department) is amending the final determination in the less-than-fair-value investigation of welded line pipe from the Republic of Korea (Korea) to correct a ministerial error. The period of investigation is October 1, 2013, through September 30, 2014.
David Goldberger or Ross Belliveau, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-4136 or (202) 482-4952, respectively.
On October 13, 2015, the Department published the final determination in the less-than-fair-value investigation of welded line pipe from Korea.
Based on our analysis of the allegations submitted by HYSCO and the petitioners, we determined that, with respect to the conversion cost adjustment and the toll processing cost adjustment, we did not make ministerial errors, as defined by section 735(e) of the Tariff Act of 1930, as amended (the Act) and 19 CFR 351.224(f).
The scope of the investigation appears in Appendix I of the
Section 735(e) of the Act, and 19 CFR 351.224(f) define a “ministerial error” as an error “in addition, subtraction, or other arithmetic function, clerical error resulting from inaccurate copying, duplication, or the like, and any similar type of unintentional error which the Secretary considers ministerial.”
We analyzed the ministerial error allegations and determined, in accordance with section 735(e) of the Act and 19 CFR 351.224(e), that we made ministerial errors with respect to the revisions to date of sale and the application of the G&A and financial expense ratios. In implementing the date of sale methodology to use the earlier of invoice date or shipment date, we inadvertently failed to update HYSCO's reported date of sale variable to account for invoice and shipment date revisions. Therefore, we corrected this error. In addition, we revised HYSCO's calculation of the G&A and financial expense ratios cost of goods sold denominator to reflect the major input rule and transactions disregarded rule adjustments, in order to keep the calculation of the ratios on the same basis as the cost of manufacturing to which they are applied.
As a result of correcting these ministerial errors, we determine that the following weighted-average margins exist for the period October 1, 2013, through September 30, 2014:
The following cash deposit requirements will be effective upon publication of this notice for all shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication of this amended final determination, as provided by section 735(c)(1)(B) of the Act: (1) The cash deposit rate for HYSCO will be the rate we determined in this amended final determination (
In accordance with section 735(d) of the Act, we notified the U.S. International Trade Commission (ITC) of the
This amended final determination notice is published in accordance with section 735(e) of the Act and 19 CFR 351.224(e).
Enforcement and Compliance, International Trade Administration, Department of Commerce.
The Department of Commerce (the Department) has conducted an administrative review of the countervailing duty (CVD) order on drawn stainless steel sinks (sinks) from the People's Republic of China (PRC). The period of review (POR) is August 6, 2012, through December 31, 2013. On May 7, 2015, we published the preliminary results of this administrative review.
Effective date: November 10, 2015.
Jennifer Meek, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-2778.
Drawn stainless steel sinks are sinks with single or multiple drawn bowls, with or without drain boards, whether finished or unfinished, regardless of type of finish, gauge, or grade of sinks. The products covered by this order are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under statistical reporting number 7324.10.0000. Although the HTSUS subheading is provided for convenience and customs purposes, the written description of the scope of the order is dispositive.
A full description of the scope of the order is contained in the memorandum from Christian Marsh, Deputy Assistant Secretary for Enforcement and Compliance, to Paul Piquado, Assistant Secretary for Enforcement and Compliance, “Decision Memorandum for the Final Results of Countervailing Duty Administrative Review: Drawn Stainless Steel Sinks from the People's Republic of China” dated concurrently with this notice (Issues and Decision Memorandum), which is hereby adopted by this notice. A list of topics discussed in the Issues and Decision Memorandum is provided as Appendix I to this Notice.
The Issues and Decision Memorandum is a public document and is on file electronically
All issues raised in the case briefs submitted by parties are addressed in the Issues and Decision Memorandum. A list of the issues which parties raised and to which we respond in the Issues and Decisions Memorandum is attached to this notice as Appendix I. The Department conducted this review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each program found countervailable, we determine that there is a subsidy,
In making these findings, we relied, in part, on facts available and, because we determine that the Government of the PRC did not act to the best of its ability to respond to the Department's requests for information, we applied an adverse inference in selecting from among the facts otherwise available.
Based on our analysis of U.S. Customs and Border Protection (CBP) information and information provided by Native Produce, we determine that Native Produce did not have any reviewable entries during the POR. No evidence of shipments was placed on the record, therefore, pursuant to 19 CFR 351.213(d)(3), we are rescinding the administrative review of this company. For additional information regarding this determination,
In accordance with 19 CFR 351.221(b)(5), we calculated an individual subsidy rate for for 2012 and 2013, respectively, as set forth below.
Consistent with 19 CFR 351.212(b)(2), we intend to issue assessment instructions to CBP fifteen days after the date of publication of these final results. The Department will instruct CBP to liquidate shipments of subject merchandise produced and/or exported by Guangdong Dongyuan Kitchenware Industrial Co., Ltd. entered, or withdrawn from warehouse, for consumption for the periods on or after August 6, 2012 through December 3, 2012, and on or after April 10, 2013, through December 31, 2013. For entries made during the gap period
For the rescinded company, countervailing duties shall be assessed at rates equal to the cash deposit of estimated countervailing duties required at the time of entry, or withdrawal from warehouse, for consumption, during the period on or after August 6, 2012, through December 3, 2012, and on or after April 10, 2013, through December 31, 2013, in accordance with 19 CFR 351.212(c)(1)(i).
In accordance with section 751(a)(2)(C) of the Act, the Department intends to instruct CBP to collect cash deposits of estimated countervailing duties in the amount shown above for Dongyuan, as determined for 2013, on shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this review. For all non-reviewed firms, we will instruct CBP to continue to collect cash deposits at the most-recent company-specific or all-others rate applicable to the company, as appropriate. These cash deposit requirements, when imposed, shall remain in effect until further notice.
This notice serves as a final reminder to parties subject to administrative protective order (APO) of their responsibilities concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply
We are issuing and publishing these results in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213.
Enforcement and Compliance, International Trade Administration, Department of Commerce.
On October 23, 2015, the United States Court of International Trade (CIT) sustained the Department of Commerce's (the Department's) results of redetermination pursuant to court remand, which recalculated the all-others subsidy rate in the countervailing duty (CVD) investigation of aluminum extrusions from the People's Republic of China (the PRC),
Kristen Johnson, AD/CVD Operations, Office III, Enforcement and Compliance, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: 202-482-4793.
In the
In
In
In
In the second results of redetermination pursuant to remand issued in this litigation, the Department designated the all-others rate as equal to the preliminary rate it calculated for the mandatory respondents,
The CIT's holdings were appealed to the CAFC. On June 3, 2014, the CAFC held that section 351.204(d)(3) of the Department's regulations, which directs the Department to exclude voluntary respondents' rates from its calculation of the all-others rate, was inconsistent
On remand, the Department recalculated the all-others rate using a simple average of the voluntary respondents' rates.
Petitioners
After considering the
The Department requested and received from the voluntary respondents (
On October 23, 2015, in
Because there is now a final court decision with respect to the
For companies subject to the all-others rate, the cash deposit rate will be the rate listed above and the Department will instruct U.S. Customs and Border Protection accordingly. This notice is issued and published in accordance with sections 705(d) and 777(i)(1) of the Act and consistent with the clarification in
Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce.
The Department of Commerce (the Department) is conducting an administrative review of the antidumping duty order on carbon and certain alloy steel wire rod (wire rod) from Mexico. The period of review (POR) is October 1, 2013 through September 30, 2014.
James Terpstra (for Deacero) or Jolanta Lawska (for AMLT), AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: 202-482-3965 and 202-482-8362, respectively.
The merchandise covered by the
The Department is conducting this review in accordance with section 751(a)(2) of the Tariff Act of 1930, as amended (the Act). Constructed export prices or export price are calculated in accordance with section 772 of the Act. Normal value is calculated in accordance with section 773 of the Act.
For a full description of the methodology underlying our conclusions, please see the Preliminary Decision Memorandum, which is hereby adopted by this notice. A list of the topics discussed in the Preliminary Decision Memorandum is attached as an appendix to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at
As a result of this review, we preliminarily determine that the weighted-average dumping margins for the POR are as follows:
Upon issuance of the final results, the Department shall determine, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries covered by this review. For any individually examined respondents whose weighted-average dumping margin is above
In accordance with the Department's “automatic assessment” practice, for entries of subject merchandise during the POR produced by each respondent for which they did not know that their merchandise was destined for the United States, we will instruct CBP to liquidate unreviewed entries at the all-others rate if there is no rate for the intermediate company(ies) involved in the transaction. For a full discussion of this clarification,
We intend to issue instructions to CBP 15 days after publication of the final results of this review.
The following cash deposit requirements will be effective upon publication of the notice of final results of administrative review for all shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication of the final results of this administrative review, as provided by section 751(a)(2) of the Act: (1) The cash deposit rate for Deacero and AMLT will be equal to the weighted-average dumping margins established in the final results of this administrative review; (2) for merchandise exported by manufacturers or exporters not covered in this administrative review but covered in a prior completed segment of the proceeding, the cash deposit rate will continue to be the company-specific rate published in the completed segment for the most recent period; (3) if the exporter is not a firm covered in this review, a prior review, or the original investigation, but the manufacturer is, the cash deposit rate will be the rate established in the completed segment for the most recent period for the manufacturer of the merchandise; and (4) the cash deposit rate for all other manufacturers or exporters will continue to be 20.11 percent, the all-others rate established in the investigation.
Concerning Deacero, on October 1, 2012, the Department found that wire rod with an actual diameter of 4.75 mm to 5.00 mm produced (hereinafter referred to as narrow gauge wire rod) in Mexico and exported to the United States by Deacero was circumventing the
Deacero challenged the Department's ruling in the
During the POR of the instant review, Deacero shipped narrow gauge wire rod as well as wire rod with actual diameters greater than 5.00 mm. In light of the CIT's holding in
The Department intends to disclose to interested parties to this proceeding the calculations performed in connection with these preliminary results within five days after the date of publication of this notice.
Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce. All documents must be filed electronically using ACCESS. An electronically-filed request must be received successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time, within 30 days after the date of publication of this notice.
Unless the deadline is extended, the Department intends to issue the final results of this administrative review, including the results of our analysis of the issues raised by the parties in their case and rebuttal briefs, within 120 days after the publication of these preliminary results, pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).
This notice also serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Secretary's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties.
These preliminary results of review are issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act.
Enforcement and Compliance, International Trade Administration, Department of Commerce.
Steve Bezirganian, Office VI, AD/CVD
On October 15, 2015, the Department of Commerce (the Department) published the preliminary affirmative less than fair value determination on certain polyethylene terephthalate resin from the People's Republic of China.
This correction to the
Enforcement and Compliance, International Trade Administration, Department of Commerce.
On May 7, 2015, the Department of Commerce (Department) published the preliminary results of the administrative review of the antidumping duty (AD) order on drawn stainless steel sinks (drawn sinks) from the People's Republic of China (PRC).
Brian C. Smith or Reza Karamloo, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-1766 and (202) 482-4470, respectively.
For a description of events that have occurred since the publication of the
The products covered by the order include drawn stainless steel sinks. Imports of subject merchandise are currently classified under the Harmonized Tariff Schedule of the United States (HTSUS) subheadings 7324.10.0000 and 7324.10.0010. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of the order is dispositive.
All issues raised in the case and rebuttal briefs are addressed in the
Based on our review of the record and comments received from interested parties regarding our
In the
In the
In the
For companies subject to this review, which established their eligibility for a separate rate, the Department finds that the following weighted-average dumping margins exist for the period October 4, 2012, through March 31, 2014:
Pursuant to section 751(a)(2)(C) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.212(b), the Department determined, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries of subject merchandise in accordance with the final results of this review. The Department intends to issue appropriate assessment instructions directly to CBP 15 days after publication of the final results of this administrative review.
For each individually examined respondent in this review (
For the respondents which were not selected for individual examination in this administrative review and which qualified for a separate rate, the assessment rate is equal to the average of the weighted-average dumping margins assigned to Dongyuan and Yingao, or 4.29 percent.
For the companies identified above as part of the PRC-wide entity, we will instruct CBP to apply an
The Department has refined its assessment practice in NME cases. Pursuant to this refinement in practice, for entries that were not reported in the U.S. sales databases submitted by companies individually examined during this review, the Department will instruct CBP to liquidate such entries at the PRC-wide rate. In addition, if the Department determines that an exporter under review had no shipments of the subject merchandise, any suspended entries that entered under that exporter's case number (
The following cash deposit requirements will be effective upon publication of the final results of this administrative review for all shipments of the subject merchandise from the PRC entered, or withdrawn from warehouse, for consumption on or after the publication date, as provided for by section 751(a)(2)(C) of the Act: (1) For the companies listed above that have a separate rate, the cash deposit rate will be that rate established in the final results of this review (except, if the rate is zero or
The Department intends to disclose to the parties the calculations performed for these final results within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b).
This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f) to file a certificate regarding the reimbursement of antidumping and/or countervailing duties prior to liquidation of the relevant entries during this POR. Failure to comply with this requirement could result in the Department's presumption that reimbursement of antidumping and/or countervailing duties occurred and the subsequent assessment of doubled antidumping duties.
This notice also serves as a reminder to parties subject to administrative protective order (APO) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.
This notice is published in accordance with sections 751(a)(l) and 777(i)(l) of the Act.
Bureau of Consumer Financial Protection.
Notice and request for comment.
In accordance with the Paperwork Reduction Act of 1995 (PRA), the Consumer Financial Protection Bureau (Bureau) is requesting to renew the Office of Management and Budget (OMB) approval for an existing information collection, and to revise an existing information collection, titled, “Home Mortgage Disclosure (Regulation C) 12 CFR 1003.”
Written comments are encouraged and must be received on or before January 11, 2016 to be assured of consideration.
You may submit comments, identified by the title of the information collection, OMB Control Number (see below), and docket number (see above), by any of the following methods:
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Documentation prepared in support of this information collection request is available at
In accordance with 5 CFR 1320.11(f) and 1320.11(h), this information collection request (ICR) is being submitted to OMB in association with the final rule for Regulation C (RIN 3170-AA10), 80 FR 66127 published October 27, 2015. Further, since the information collection requirements as contained in current Regulation C are currently scheduled to expire on January 31, 2016 and the information collection requirements as contained in the final rule for Regulation C will generally not become effective until January 1, 2018, this ICR is also contemporaneously being submitted to OMB under 5 CFR 1320.12,
Department of Defense.
Notice of Federal Advisory Committee closed meeting.
The Department of Defense is publishing this notice to announce the following Federal Advisory Committee meeting of the U.S. Strategic Command Strategic Advisory Group. This meeting will be closed to the public.
Wednesday, December 2, 2015, from 8:00 a.m. to 5:00 p.m. and Thursday, December 3, 2015, from 8:00 a.m. to 11:00 a.m.
Dougherty Conference Center, Building 432, 906 SAC Boulevard, Offutt AFB, Nebraska 68113.
Ms. Christy Fetzer, Alternate Designated Federal Officer, (402) 294-4102, 901 SAC Boulevard, Suite 1F7, Offutt AFB, NE 68113-6030.
This meeting is being held under the provisions of the Federal Advisory Committee Act of 1972 (5 U.S.C. App 2, section 1), the Government in Sunshine Act of 1976 (5 U.S.C. 552b), and 41 CFR 102-3.150.
Deputy Chief Management Officer, Department of Defense (DoD).
Notice of Federal Advisory Committee meeting.
The DoD is publishing this notice to announce two days of meetings of the National Commission on the Future of the Army (“the Commission”). The meetings will be partially closed to the public.
Date of the Closed Meetings: Wednesday, November 18, 2015, from 1 p.m. to 5 p.m. and Thursday, November 19, 2015, from 8 a.m. to 12 p.m.
Date of the Open Meeting: Thursday, November 19, 2015, from 3 p.m. to 5 p.m.
Address of Closed Meetings, November 18 and 19, 2015: Rm 12110, 5th Floor, Zachary Taylor Building, 2530 Crystal Dr., Arlington, VA 22202.
Address of Open Meeting, November 19, 2015: Polk Conference Room, Room 12158, James Polk Building, 2521 S. Clark St., Arlington, VA 22202.
Mr. Don Tison, Designated Federal Officer, National Commission on the Future of the Army, 700 Army Pentagon, Room 3E406, Washington, DC 20310-0700, Email:
Due to circumstances beyond the control of the Designated Federal Officer and the Department of Defense, the National Commission on the Future of the Army was unable to provide public notification of its meeting of November 18-19, 2015, as required by 41 CFR 102-3.150(a). Accordingly, the Advisory Committee Management Officer for the Department of Defense, pursuant to 41 CFR 102-3.150(b), waives the 15-calendar day notification requirement.
This meeting will be held under the provisions of the Federal Advisory Committee Act (FACA) of 1972 (5 U.S.C., Appendix, as amended), the Government in the Sunshine Act of 1976 (5 U.S.C. 552b, as amended), and 41 CFR 102-3.150.
During the closed meeting on Thursday, November 19, 2015, the Commission will continue the discussion on the rationale for proposals using the Comprehensive Analytical Review's results from the November 18 closed meeting and establish the framework for subcommittee proposals. During the open meeting on Thursday, November 19, 2015, the Commission will hear subcommittee interim reports and the public will have an opportunity to provide remarks.
November 19, 2015—Closed Meeting: The Commission will continue the discussion on the rationale for subcommittee proposals using the Comprehensive Analytical Review results, additionally the Commission and subcommittee staff leads will establish the framework work for presenting subcommittee proposals to the Commission. All presentations and resulting discussion are classified.
November 19, 2015—Open Meeting: The Commission will receive interim reports from representatives from the various subcommittees and time will be allotted for public comments.
Pursuant to 41 CFR 102-3.140 through 102-3.165 and the availability of space, the meeting scheduled for November 19, 2015 from 3 p.m. to 5 p.m.at the James Polk Building is open to the public. Seating is limited and pre-registration is strongly encouraged. Media representatives are also encouraged to register. Members of the media must comply with the rules of photography and video filming in the James Polk Building. The closest public parking facility is located in the basement and along the streets. Visitors will be required to present one form of photograph identification. Visitors to the James Polk Office Building will be screened by a magnetometer, and all items that are permitted inside the building will be screened by an x-ray device. Visitors should keep their belongings with them at all times. The following items are strictly prohibited in the James Polk Office Building: Any pointed object,
Notice.
The Department of Defense has submitted to OMB for clearance, the following proposal for collection of information under the provisions of the Paperwork Reduction Act.
Consideration will be given to all comments received by December 10, 2015.
Fred Licari, 571-372-0493.
Comments and recommendations on the proposed information collection should be emailed to Ms. Jasmeet Seehra, DoD Desk Officer, at
You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:
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Written requests for copies of the information collection proposal should be sent to Mr. Licari at WHS/ESD Directives Division, 4800 Mark Center Drive, East Tower, Suite 02G09, Alexandria, VA 22350-3100.
Office of Special Education and Rehabilitative Services (OSERS), Department of Education (ED).
Notice.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 3501
Interested persons are invited to submit comments on or before December 10, 2015.
To access and review all the documents related to the information collection listed in this notice, please use
For specific questions related to collection activities, please contact Rose Ann Ashby, (202) 245-7258.
The Department of Education (ED), in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general
Section 302 (b)(2)(C) of the Act requires the academic institutions (
The Annual Payback Report form for which RSA is requesting an extension collects data on the status of “current” and “exited” RSA scholars who are/were the recipients of scholarships. In addition to meeting the requirement that all scholars be tracked, the information collected on the form currently in use will continue to provide performance data relevant to the rehabilitation fields and degrees pursued by RSA scholars, as well as the funds owed and the rehabilitation work completed by them.
Institute of Education Sciences (IES), Department of Education (ED).
Notice.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 3501
Interested persons are invited to submit comments on or before December 10, 2015.
To access and review all the documents related to the information collection listed in this notice, please use
For specific questions related to collection activities, please contact Marsha Silverberg, 202-2018-7178.
The Department of Education (ED), in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the Department assess the impact of its information collection requirements and minimize the public's reporting burden. It also helps the public understand the Department's information collection requirements and provide the requested data in the desired format. ED is soliciting comments on the proposed information collection request (ICR) that is described below. The Department of Education is especially interested in public comment addressing the following issues: (1) Is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records.
Take notice that the Commission has received the following Natural Gas Pipeline Rate and Refund Report filings:
Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.
Any person desiring to protest in any of the above proceedings must file in accordance with Rule 211 of the Commission's Regulations (18 CFR 385.211) on or before 5:00 p.m. Eastern time on the specified comment date.
The filings are accessible in the Commission's eLibrary system by clicking on the links or querying the docket number.
eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at:
Environmental Protection Agency (EPA).
Notice.
The EPA Science Advisory Board (SAB) Staff Office announces a public teleconference of the SAB Hydraulic Fracturing Research Advisory Panel as part of the peer review of the EPA draft report,
The public teleconference will be held on Thursday, December 3, 2015, from 2:00 p.m. to 6:00 p.m. (Eastern Time).
The teleconference will be conducted by telephone only.
Members of the public who wish to obtain further information regarding this public teleconference may contact Edward Hanlon, Designated Federal Officer, by telephone: (202) 564-2134 or email at
The EPA's Office of Research and Development (ORD) has developed a draft assessment report concerning the relationship between hydraulic fracturing and drinking water in the United States. The purpose of the report,
The purpose of the December 3, 2015, public teleconference is for the SAB Hydraulic Fracturing Research Advisory Panel to complete agenda items from the October 28-30, 2015 Panel meeting, namely to develop preliminary key points in response to charge questions on the agency's draft assessment.
Written statements should be identified by Docket ID No. EPA-HQ-OA-2015-0245 and submitted to the Docket at
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Public comments submitted after November 25, 2015 will be marked late, and should be submitted to the Docket by email, mail, hand delivery or fax (see detailed instructions above). Consistent with SAB Staff Office general practice, comments received after November 25, 2015 will be made available to the SAB Panel as soon as practicable. It is EPA's policy to include all comments received in the public docket without change and to make the comments available on-line at
Documents in the docket are listed in the
Environmental Protection Agency (EPA).
Notice.
The Environmental Protection Agency (EPA) solicits public input and information on existing public and private sector programs that address stormwater discharges from forest roads. This information will assist EPA in responding to the remand in
Comments must be received on or before January 11, 2016.
Submit your comments, identified by Docket ID No. EPA-HQ-OW-2015-0668, to the
Prasad Chumble, EPA Headquarters, Office of Water, Office of Wastewater Management via email at
This notice does not impose requirements on any entity.
EPA is gathering information on existing programs addressing stormwater discharges from forest roads to determine what additional measures, if any, are necessary to protect water quality. As described below, section 402(p)(6) of the Clean Water Act (CWA) allows EPA to consider a range of regulatory and non-regulatory approaches, and determine which stormwater discharges (if any) need controls under 402(p)(6). Since EPA's last public notice on May 23, 2012 (77 FR 30473), in which the Agency also solicited comments on approaches for addressing water quality impacts associated with forest roads, a number of developments have occurred, including statutory and regulatory changes, collection of additional water quality data, results from new research, new information pertaining to effectiveness of BMPs, and updates to federal, state, local, tribal, and other programs. Therefore, the Agency seeks to obtain public input and updated information on the implementation, effectiveness, and scope of approaches and programs that are currently in place for addressing stormwater discharges from forest roads.
The objective of the CWA is to restore and maintain the chemical, physical, and biological integrity of the nation's waters. 33 U.S.C. 1251(a). To that end, the CWA provides that the discharge of any pollutant by any person shall be unlawful, except in compliance with other provisions of the statute. The CWA provides for a permit program, in general, for the discharge of a pollutant from a “point source,” which is defined in section 502 of the CWA as “any discernible, confined and discrete conveyance, including but not limited to any pipe, ditch, channel, tunnel, conduit, well, discrete fissure, container, rolling stock, concentrated animal feeding operation, or vessel or other floating craft, from which pollutants are or may be discharged.” 33 U.S.C. 1362(14). In 1987 Congress added section 402(p) to the CWA, which required National Pollutant Discharge Elimination System (NPDES) permits for certain specified stormwater discharges and provided EPA with discretion to determine whether and how discharges from other stormwater sources should be addressed “to protect water quality.”
For the initial phase of stormwater regulation, section 402(p)(1) created a temporary moratorium on NPDES permits for point sources except for those listed in section 402(p)(2), which includes discharges already required to have a permit; discharges from municipal separate storm sewer systems serving population of 100,000 or more; and stormwater discharges “associated with industrial activity.” Congress did not define discharges associated with industrial activity, allowing EPA to define the term. For other stormwater discharges, section 402(p)(5) directs EPA to conduct studies, in consultation with the states, for “identifying those stormwater discharges or classes of stormwater discharges for which permits are not required”; “determining to the maximum extent practicable, the nature and extent of pollutants in such discharges”; and “establishing procedures and methods to control stormwater discharges to the extent necessary to mitigate impacts on water quality.” Section 402(p)(6) directs the Agency to issue regulations, in consultation with state and local officials, based on such studies. The section allows EPA flexibility in issuing regulations to address designated stormwater discharges and does not require the use of NPDES permits. Specifically, the section states that the regulations “shall establish priorities, establish requirements for state stormwater management programs, and establish expeditious deadlines” and may include “performance standards, guidelines, guidance, and management practices and treatment requirements, as appropriate.” 33 U.S.C. 1342(p)(6). This flexibility is unique to stormwater discharges regulated under section 402(p)(6) and differs from the requirement for NPDES permits for stormwater discharges listed in section 402(p)(2) of the Act.
Prior to the 1987 Amendments, there were numerous questions regarding the appropriate means of regulating stormwater discharges through the NPDES program. These questions stemmed from serious water quality impacts of stormwater, the variable nature of stormwater, the large number of stormwater discharges, and the limited resources of permitting agencies. EPA undertook several regulatory actions, which resulted in extensive litigation, in an attempt to address these unique discharges.
EPA's Silvicultural Rule (40 CFR 122.27) predates the 1987 amendments to the CWA that added section 402(p) for stormwater controls. The Agency defined silvicultural point source as part of the Silvicultural Rule to specify which silvicultural discharges were to be included in the NPDES program. The rule defines silvicultural point source to mean any “discernible, confined and discrete conveyance related to rock crushing, gravel washing, log sorting, or log storage facilities which are operated in connection with silvicultural activities and from which pollutants are discharged into waters of the United States,” and further explains that “the term does not include non-point source silvicultural activities such as nursery operations, site preparation, reforestation and subsequent cultural treatment, thinning, prescribed burning, pest and fire control, harvesting operations, surface drainage, or road construction and maintenance from which there is natural runoff.”
In 1990, EPA promulgated the Phase I stormwater regulations (55 FR 47990) (“Phase I Rule”), following the 1987 amendments which directed the Agency to develop regulations requiring permits for large and medium municipal separate storm sewer systems and stormwater “discharges associated with industrial activity.” In the Phase I regulations EPA defined the term “storm water discharge associated with industrial activity,” which is not defined by the Act but was discussed in the legislative history to the 1987 amendments. In describing the scope of the term “associated with industrial activity,” several members of Congress explained in the legislative history that the term would apply if a discharge was “directly related to manufacturing, processing or raw materials storage areas at an industrial plant.” (Vol. 132 Cong. Rec. H10932, H10936 (daily ed. October 15, 1986); Vol. 133 Cong. Rec. H176 (daily ed. January 8, 1987)). The Phase I Rule provided the regulatory definition of “associated with industrial
In developing the second phase of stormwater regulations, EPA submitted to Congress in March 1995 a report that evaluated the nature of stormwater discharges from municipal and industrial facilities that were not already regulated under the Phase I regulations (U.S. Environmental Protection Agency, Office of Water.
The Phase II stormwater regulations were challenged in
During several years following the decision in
In 2011, the U.S. Court of Appeals for the Ninth Circuit issued a decision in
On May 23, 2012, EPA published a Notice in the
On December 7, 2012, EPA promulgated a final rule (77 FR 72970) to specify that for the purposes of assessing whether stormwater discharges are “associated with industrial activity,” the only facilities under the SIC code 2411 that are “industrial” are: Rock crushing, gravel washing, log sorting, and log storage. This rulemaking clarified that, contrary to the Ninth Circuit's decision in
In 2014, Congress amended section 402(l) of the Federal Water Pollution Control Act to effectively prohibit the use of NPDES permits for the discharge of runoff “resulting from the conduct of the following silviculture activities conducted in accordance with standard industry practice: nursery operations, site preparation, reforestation and subsequent cultural treatment, thinning, prescribed burning, pest and fire control, harvesting operations, surface drainage, or road construction and maintenance.” 33 U.S.C. 1342(l). In addition, the amendment prohibits third party lawsuits authorized by section 505(a) for any non-permitting program established under 402(p)(6), or for any other limitations applied to silviculture activities.
In December 2014, EDC and the Natural Resources Defense Council filed a petition with the Ninth Circuit to compel EPA to respond, within six months, to the question remanded in the 2003
The Agency's May 23, 2012 Notice summarized the research EPA had collected to date on the water quality impacts resulting from stormwater discharges from forest roads. Much of this research was compiled in the 2008 report “National Level Assessment of Water Quality Impairments Related to Forest Roads and Their Prevention by Best Management Practices” prepared by the Great Lakes Environmental Center, Inc. (GLEC). This document is available in the docket for today's notice and provides an extensive discussion on water quality impacts from forest road stormwater discharges, which are primarily erosion and sedimentation,
EPA's research indicates that improperly designed, constructed, maintained, or decommissioned forest roads, as well as abandoned “legacy roads,”
The focus of this notice is to solicit input on the implementation and effectiveness of existing public and private programs, whether voluntary or legally binding and enforceable, in mitigating water quality impacts from stormwater discharges from forest roads, rather than to receive additional comments or materials on water quality impacts of these discharges. Specifically, EPA seeks input on the implementation, effectiveness, and scope of existing federal, state, local, tribal and private sector programs. The Agency also seeks input on additional approaches and regulations, if necessary, to mitigate negative impacts on water quality from forest road stormwater discharges.
On May 23, 2012, EPA published a Notice that sought comment on potential approaches for addressing water quality impacts resulting from stormwater discharges from forest roads. In response to that Notice, EPA received over 100 comment letters. Some comments pointed to existing programs suggesting that a national regulation addressing discharges from forest roads is unnecessary because existing state and tribal programs are sufficient. Others asserted that existing federal, state, and tribal programs are insufficient to protect water quality.
As discussed above, EPA is prohibited from requiring NPDES permits for stormwater discharges from forest roads associated with defined “silvicultural activities” as a result of the 2014 amendment to section 402(l) of the CWA. However, authority to regulate these discharges in other ways and using other methods remains, including under section 402(p)(6). As noted, section 402(p)(6) of the CWA allows EPA flexibility in issuing regulations to address designated stormwater discharges and does not require the use of NPDES permits. Specifically, the section states that the regulations shall establish priorities, establish requirements for state stormwater management programs, and establish expeditious deadlines and may include “performance standards, guidelines, guidance, and management practices and treatment requirements, as appropriate.” 33 U.S.C. 1342(p)(6).
In assessing whether regulation is required under section 402(p)(6) of the CWA, EPA is considering the effectiveness of existing programs in addressing water quality impacts attributable to stormwater discharges from forest roads, including federal, state, local, tribal, third-party certifications, and combinations of these approaches, as well as voluntary BMP-based approaches. In this notice, EPA requests information on these and other means currently in place for addressing the water quality impacts of stormwater discharges from forest roads or certain portions of forest roads. EPA also requests information on implementation and lessons learned from experience with existing programs.
In assessing how best to manage stormwater discharges from forest roads, EPA recognizes that any effective program should be informed by several considerations. It is EPA's view that there are four key considerations for managing stormwater discharges as described later in this notice: (1) The advantage of leveraging existing strategies that work, including existing effective federal, state, local, tribal, private, and voluntary BMP-based programs; (2) the utility of addressing site-specific factors; (3) the need to prioritize actions; and (4) the benefits of accountability measures.
Forest road stormwater management programs vary across the country in response to state or regional factors. EPA is working with federal agencies, states, and tribes as well as the private sector to understand their programs for managing stormwater discharges from forest roads. The Agency is interested in engaging other interested stakeholders in the process as well. EPA provided an overview of existing public and private programs to manage stormwater discharges from forest roads in its May 23, 2012
A range of guidelines are available to assist forest owners, managers, and operators in designing and maintaining forest roads and selecting the appropriate BMPs to control stormwater discharges. For example, EPA has issued national guidance to assist forest owners and operators to protect lakes and streams from polluted runoff that can result from forestry activity and, in particular, from improperly built or maintained forest roads (USEPA, 2005). Other federal agencies as well as states have also developed guidance documents to protect water quality from forest road discharges (For example USFS (2012) and Georgia Forestry Commission (2009)). In addition, industry has developed standards for voluntary certification programs (For example, NCASI (2012) and SFI (2015)). BMP-based approaches allow forest road owners and operators to tailor management practices to site-specific factors such as topography, road design, soils, geologic factors, road use, and climate. The diversity of the forest road networks, the different classes of roads, the different local physical conditions, and the broad range of road conditions and uses indicate the importance of site-specific BMP selection and implementation to protect water quality.
EPA also intends to consider the complexity and vastness of the Nation's forest road network and diversity of the forested landscape. EPA seeks additional information that would assist the Agency in evaluating various approaches, including, for example: Differences among forest uses; particularly vulnerable features of the road network (for example, stream crossings); critical phases (for example, road closure or decommissioning); ownerships of different forest tracts; types of ownership, including public, private, and tribal-owned lands; and forest road conditions, type, and usage. The selection of appropriate management strategies and BMPs can vary based on site-specific factors, including topography, road design, soils, geologic factors, road use, road maintenance schedule, and climate. EPA also would like information on the effectiveness of properly implemented BMPs in protecting water quality from forest road stormwater discharges. EPA solicits information on what approaches have been or could be applied nationally regardless of forest road type
EPA recognizes the importance of prioritization in allocating resources. For example, protecting beneficial uses such as fish spawning or public water supply may be a high priority in some areas while reducing impacts to waters listed as impaired or included in an existing Total Maximum Daily Load (TMDL) might be a high priority in other areas. EPA requests information on how existing programs identify and determine where to allocate resources to prioritize high quality, or pristine, waters or alternatively, impaired waters, or how to prioritize focus on certain forest roads that may be more problematic than others.
Finally, accountability is a key element of a successful approach ensuring stormwater discharges from forest roads are properly implemented and managed across the country and that reasonable progress is made in addressing inadequately managed stormwater discharges from forest roads. EPA seeks information regarding existing programs, such as adaptive management approaches, that include accountability measures such as monitoring, reporting, necessary updates, and consequences for failure to adhere to the objectives of the management program.
As described in further detail below, many owners and operators of forest lands are employing a variety of effective approaches to manage, operate, comply with and maintain forest roads to control stormwater discharges. Depending on the jurisdiction, owners or operators use federal requirements, BMP state program requirements, as well as tribal requirements, or follow the standards of voluntary programs, including forest stewardship and sustainability initiatives. Some of these approaches are used in combinations that may provide a more holistic approach, which may be more protective and effective.
Many states and some tribes have programs in place that function to prevent or minimize forest road stormwater discharge impacts on water quality. These programs generally establish standards for the design of forest roads and BMPs. State and tribal programs vary in their substantive level of protection, specificity and enforceability, and generally fall into three categories: regulatory, non-regulatory, and combination programs. Information available to EPA indicates that 15 states have established mandatory BMPs for forest roads and the remaining 35 states allow for voluntary implementation of BMPs to control stormwater discharges from forest roads (GLEC, 2008). In some cases the failure to implement voluntary measures can result in enforcement where noncompliance leads to a significant risk to water quality. For example, the California program resembles a permit program and is mandatory, whereas Florida relies primarily on voluntary compliance with state-approved road BMPs. The discussion below describes two existing state programs and briefly describes several existing tribal programs to illustrate the different approaches used to address forest road impacts.
Maine provides an example of a state that employs a non-regulatory forest management program. In a voluntary program, the state typically develops state-wide forestry BMPs (including measures for forest roads) and recommends that the forest owners implement the BMPs. Generally, there are no permit mechanisms or enforcement actions, but many states with voluntary programs use a hands-on approach that emphasizes education, outreach, and training for forest owners, loggers, and others (Maine DEC, 2012).
Maine's forestry BMP program is administered through the Maine Forest Service (MFS). Broadly, the program consists of voluntary BMPs implemented by the landowner, monitoring of the BMPs by MFS, and, if needed, a regulatory “safety net.” The primary focus of the MFS program is training and outreach. MFS works to develop and revise BMPs, the most recent set being published in 2004. MFS then offers frequent training courses across the state and online to promote understanding of the principles and techniques in selecting and installing appropriate BMPs. Deficiencies in the implementation of BMPs (as identified by follow-up monitoring or other mechanisms) may lead to specialized training sessions (Maine DEC, 2012).
The MFS also conducts field monitoring of forestry BMPs. In collaboration with other stakeholders, a state-wide monitoring protocol was developed and has been implemented annually at selected sites since 2006. As noted in GLEC (2008), surveys have shown that BMPs are, for the most part, being consistently implemented and installation rates have improved substantially over time. When the need for improvements in BMP application are identified, MFS works cooperatively with the landowner to address the issue (Maine DEC, 2012).
Maine has a number of state laws that address sediment discharges to surface waters, including discharges due to timber operations. As needed, MFS works with other state agencies to identify problems and address them in a regulatory manner. Most issues are resolved cooperatively before a regulatory solution is needed (Maine DEC, 2012).
North Carolina has a combination approach for its forest management program, as it employs elements of both regulatory and non-regulatory programs. In 1990, the state developed administrative rules (
The North Carolina Forest Service (NCFS) conducts thousands of forestry compliance inspections each year and has found high FPG compliance rates on a statewide basis. More focused implementation-specific monitoring has been conducted several times since 2000 by the NCFS and has also shown high implementation rates for forest road BMPs, despite their voluntary nature. State staff also provide technical assistance in designing and implementing BMPs and in assessing water quality. North Carolina revised its BMP manual in 2006 and included detailed discussions about all aspects of managing forest roads. The state has implemented a number of training and education programs in concert with demonstration projects to promote proper BMP usage. North Carolina agencies also coordinate to ensure that forestry operations are compliant with state requirements, that inspections are properly conducted, and that enforcement protocols are appropriately established (North Carolina FS, 2012).
Across the country, over 300 tribal reservations are significantly forested, and tribal lands include 17.9 million acres of forest land, including 7.7 million acres of productive timberland (ITC 2007). Tribal governments in partnership with the U.S. government dedicate substantial resources to improving tribal forest management. Much of the responsibility for managing forests on tribal lands across the country
NIFRMA requires the development of forestry management plans under which the forests are managed in accordance with BMPs, as approved through an interdisciplinary team consisting of forestry experts from academia, the private sector, forest-managing tribes and the U.S. Department of Agriculture Forest Service. The Tribal Forest Protection Act (Pub. L. 108-278) authorizes the Secretary of Agriculture and the Secretary of the Interior to enter into an agreement or contract with tribes to carry out projects to protect forests on tribal lands. Protection of such land is particularly important for tribes because they pass their land on from generation to generation. This helps to ensure future availability of natural resources, including healthy forests and clean water.
Many tribes have taken on significant roles in sustainable forest management. For example, the Menominee Indian Tribe of Wisconsin manages the forested portions of the reservation for long-term sustainability through the Menominee Tribal Enterprises (MTE), which has received certifications for sustainable management from the Forest Stewardship Council (FSC)-approved programs conducted by the Scientific Certification and the Rainforest Alliance. According the MTE Millwork Web site,
EPA requests comments regarding the implementation, effectiveness and scope of state, local, and tribal programs, both mandatory and voluntary, in preventing or minimizing forest road environmental impacts on water quality. EPA also seeks feedback on which elements are regarded as necessary for an effective program (for example, an inventory of forest roads; logger training and outreach; technical assistance; requirements for best management practices for forest roads; guidelines for prioritizing and addressing water quality concerns related to stormwater discharges from existing forest roads; accountability measures; public involvement and the opportunity for public input into the development of the state program; a program for monitoring or auditing to assess program compliance; a program for monitoring the effectiveness of the roads program in minimizing water quality impacts; and an adaptive management process to revise BMPs based on effectiveness monitoring) and how much flexibility is appropriate for state and tribal programs.
Federal agencies, such as the U.S. Department of Agriculture Forest Service (FS) and the Bureau of Land Management (BLM), have established programs for the management of stormwater discharges from forest roads on federal lands. These agencies manage large tracts of forested lands, including lands that are actively being disturbed by road building, road maintenance, logging operations, unauthorized public and recreational use or other tasks, and have generally demonstrated sound environmental stewardship in managing these lands.
FS has developed a number of programs related to managing discharges from forest roads to improve water quality. For example, FS is revising its Forest Service Manual and Forest Service Handbook directives (FSM 2500
FS has also created the Watershed Condition Framework, an approach to assessing watersheds in national forests and grasslands, implementing protective measures and providing for ongoing monitoring.
FS has also developed a suite of tools for the identification and prioritization of road segments at risk for contributing
BLM is a significant owner and manager of forests and woodlands on federal lands as well, primarily in the western U.S. and Alaska. Similar to FS, a full suite of activities are authorized and managed on BLM forests and woodlands, including timber harvesting, hazardous fuel reduction treatments, recreation, fish and wildlife conservation, oil and gas activities, and grazing. Authorized uses in forests and woodlands, such as timber harvesting, often include road construction and maintenance, which are broadly governed by policies, standards, and right of way agreements that ensure proper design and upkeep.
One example of multiple agencies coordinating to implement BMPs in a particular region of forests is the Northwest Forest Plan under the Aquatic Conservation Strategy. The recently released “
EPA welcomes comments on the implementation, effectiveness and scope of these federal programs and how they work in coordination with state and tribal programs to assist EPA in developing its response to the 2003 remand in
In recent years, forestry organizations, such as the Sustainable Forestry Initiative (SFI) and Forest Stewardship Council (FSC), have developed non-governmental third-party certification programs to address water quality impacts from forest roads. A wide variety of certification programs exist worldwide, but most have common elements such as standards for responsible forest management and harvesting, third-party audits, documentation, and publication. These certification programs address many aspects of forest management, but they specifically include management practices for mitigating water quality impacts resulting from stormwater discharges from forest roads. Also, these programs typically avoid developing a single set of standards and acknowledge necessary regional variation in BMPs.
Certification programs are, at their core, market- or consumer-driven. Certification is incorporated into a chain-of-custody process that permits a producer of consumer products (for example, paper, lumber, and furniture) to apply a “green” or “eco-friendly” label to those products as recognition of responsible sourcing and to ultimately influence consumer purchasing choices that translate into increased sales. Some producers of end products may
SFI grew out of a program developed by the American Forest & Paper Association and relies on a system of principles and objectives. A set of BMP-related requirements must be met for forest owners, loggers, and others to attain SFI's certification for forest fiber sourcing. Performance measures focus on adherence to applicable water quality laws and installation of BMPs, with performance criteria that include developing an overall program for certification and compliance, monitoring of BMPs during all phases of forestry activities, mapping of water resources, and recordkeeping. Third-party audits (typically conducted annually) verify the certification process. This program is also already a central element in many of the states' forestry training programs and also includes outreach to landowners and support for various research efforts.
FSC's program places an emphasis on conservation, as well as social and economic criteria. Similar to SFI, FSC's program relies on a series of overarching principles and more specific performance criteria. One such criterion specifies that forest owners must develop written plans to address erosion and other impacts associated with forest operations. Specific guidelines for forest roads include minimizing erosion, avoiding water crossings, and minimizing habitat fragmentation. FSC offers two types of certification: one for forest managers and another for entities involved in the intermediate and end uses of the wood products.
Like the state and federal programs, these programs are revised over time. For example, in 2015, SFI revised the standards that guide their certification program; the new standards specifically mention managing water quality impacts resulting from the construction and use of forest roads. Data also suggest that BMP implementation rates are substantially higher in forests that participate in certification programs (Texas Forest Service, 2011).
EPA requests comments on the implementation, effectiveness and scope
EPA encourages public comments to inform EPA's upcoming decision as to whether there is a need for additional regulation of stormwater discharges from forest roads. Requests for comment can be found throughout this notice in the sections where they are discussed. This section specifically requests comment on the issues below. To the extent possible, EPA requests that comments provide concrete examples or quantitative data.
1. For purposes of the discussion in this notice, EPA uses the term “forest road” to mean a road located on forested land, and the term “logging road” to mean a forest road that is used to support logging activities. That is, as used in this notice, logging roads are a subset of forest roads. However, the Agency has not established regulatory definitions of “forest road,” “logging road,” or “forested land” and welcomes comment on whether and how EPA should define these terms. EPA is also interested in the way in which states, tribes, and other federal agencies currently define them. EPA recognizes that some forest roads are built initially to support logging activities but later serve other purposes that may or may not continue to include support for logging activities. EPA requests comment on the way in which states, tribes, and other federal agencies distinguish among such forest roads.
2. EPA seeks comment on the implementation, effectiveness, and scope of existing federal, state, local, tribal, and other programs in addressing stormwater discharges from forest roads. EPA encourages submittal of specific information (for example, BMP implementation rates, effectiveness of implemented BMPs to protect water quality, pollutant reduction studies, audit results, and examples of adaptive management).
3. EPA requests comments on what specific elements of a forest road program are most important to ensure it is effective and protective of water quality. For example, forest road programs may include an inventory of forest roads; a requirement for BMPs; a systematic planning process for prioritizing and addressing water quality concerns related to stormwater discharges from existing roads; an accountability measure; an opportunity for public involvement in the development and management of the program; water quality monitoring to assess effectiveness of the program; and/or an adaptive management process to revise BMPs based on effective monitoring.
4. EPA also invites comments on what additional measures, consistent with federal law, could be implemented in existing programs to increase water quality protection from forest roads stormwater discharges where necessary.
A list of references cited in this notice is available at
Federal Communications Commission.
Notice and request for comments.
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3520), the Federal Communications
Written PRA comments should be submitted on or before January 11, 2016. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible.
Direct all PRA comments to Cathy Williams, FCC, via email
For additional information about the information collection, contact Cathy Williams at (202) 418-2918.
Federal Communications Commission.
Notice of public meeting.
In accordance with the Federal Advisory Committee Act (FACA), this notice advises interested persons that the Federal Communications Commission's (FCC) Task Force on Optimal Public Safety Answering Point (PSAP) Architecture (Task Force) will hold its fifth meeting.
December 10, 2015.
Federal Communications Commission, Room TW-C305 (Commission Meeting Room), 445 12th Street SW., Washington, DC 20554.
Timothy May, Federal Communications Commission, Public Safety and Homeland Security Bureau, 202-418-1463, email:
The meeting will be held on December 10, 2015, from 1:00 p.m. to 4:00 p.m. in the Commission Meeting Room of the FCC, Room TW-305, 445 12th Street SW., Washington, DC 20554. The Task Force is a Federal Advisory Committee that studies and will report findings and recommendations on PSAP structure and architecture to determine whether additional consolidation of PSAP infrastructure and architecture improvements would promote greater efficiency of operations, safety of life, and cost containment, while retaining needed integration with local first responder dispatch and support. On December 2, 2014, pursuant to the FACA, the Commission established the Task Force charter for a period of two years, through December 2, 2016. At this meeting, the Task Force will hear presentations and consider a vote on the recommendations and reports of Working Group 1—Cybersecurity: Optimal Approach for PSAPs and Working Group 2—Optimal Approach to NG911 Architecture Implementation by PSAPs.
Members of the general public may attend the meeting. The FCC will attempt to accommodate as many attendees as possible; however, admittance will be limited to seating availability. The Commission will provide audio and/or video coverage of the meeting over the Internet from the FCC's Web page at
Open captioning will be provided for this event. Other reasonable accommodations for people with disabilities are available upon request. Requests for such accommodations should be submitted via email to
Federal Communications Commission.
Notice.
In this document, the Wireless Telecommunications Bureau (Bureau) seeks comment on the appropriate methodology for determining the contours for protecting existing 3650-3700 MHz wireless broadband licensees from Citizens Broadband Radio Service users during a fixed transition period.
Comments are due on or before December 10, 2015. Reply comments are due on or before December 28, 2015.
All filings in response to the notice must refer to WT Docket No. 12-354. The Wireless Telecommunications Bureau strongly encourages parties to file comments electronically. Comments may be submitted electronically by the following methods:
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Paul Powell, Mobility Division, Wireless Telecommunications Bureau at (202) 418-1613 or via email at
This is a summary of public notice (DA 15-1208) released on October 23, 2015. The complete text of the public notice is available for viewing via the Commission's ECFS Web site by entering the docket number, WT Docket No. 12-354. The complete text of the public notice is also available for public inspection and copying from 8:00 a.m. to 4:30 p.m. Eastern Time (ET) Monday through Thursday or from 8:00 a.m. to 11:30 a.m. ET on Fridays in the FCC Reference Information Center, 445 12th Street SW., Room CY-B402, Washington, DC 20554, telephone 202-488-5300, fax 202-488-5563, or you may contact BCPI at its Web site:
In the notice, the Bureau seeks comment on the appropriate methodology for determining the protected interference contours for existing 3650-3700 MHz wireless broadband licensees during a fixed transition period. During the transition period existing licensees will receive protection for operations that are within their “Grandfathered Wireless Protection Zone,” provided that: (1) The stations were registered in the Commission's Universal Licensing System (ULS) on or before April 17, 2015; and (2) as of a year later (April 17, 2016) the stations are constructed, in service, and fully compliant with the relevant operating rules.
Specifically, the Bureau seeks comment on a two-pronged approach to defining the Grandfathered Wireless Protection Zone around “grandfathered” base stations. Under this two-part approach, the Grandfathered Wireless Protection Zone around each base station would be defined by: (1) Sectors with a 4.4 km radius from each registered base station, and the azimuth and beamwidth registered for that base station with associated unregistered customer premises equipment (CPE) to encompass the operational area of unregistered subscriber stations; and (2) sectors (centered on each base station with the registered azimuth and beamwidth) which would encompass all registered subscriber stations within that sector. The first prong of the approach will provide protection for unregistered subscribers that operate below the mobile power limit of 1 watt/25 MHz EIRP, which are within the range of a registered base station. Since unregistered CPE operates at low power it is only able to effectively communicate with base stations within a limited range. Considering the relative low power of unregistered CPE compared to the power of a base station, the upstream or “talk-back” path determines the maximum range of a system. Using average values for unregistered CPE transmit power and base station receiver sensitivity specifications from existing type certified equipment, and assuming free space loss along a line of sight path, we calculate that a typical unregistered CPE will have a maximum range of approximately 4.4 km for “talk-back” to a base station. The second prong of the approach will provide protection to each base station's registered CPE. Protected sectors around each base station will be defined based on the distance from the base station to the furthest CPE unit registered in ULS and the base station antenna parameters (
The notice seeks comment on how best to implement the protection methodology, including properly collecting and managing data. Much of the relevant data is already stored in the Commission's ULS but ULS does not record three key elements needed to implement the proposed methodology: (1) Information that would distinguish between base station and CPE use; (2) the specific center frequency on which the station operates; and (3) whether a base station has associated unregistered CPE. Therefore, the Bureau proposes to implement a mechanism whereby licensees will certify which of their base stations are constructed, in service, and in full compliance with the rules by April 17, 2016, and provide the three key elements simultaneously. The notice seeks comment on this approach and alternative approaches. This proceeding has been designated as a “permit-but-disclose” proceeding in accordance with the Commission's
Federal Communications Commission.
Notice and request for comments.
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3520), the Federal Communications Commission invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The FCC may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid Office of Management and Budget (OMB) control number.
Written PRA comments should be submitted on or before December 1, 2015.
Direct all PRA comments to Nicholas A. Fraser, OMB, via email
For additional information about the information collection, contact Cathy Williams at (202) 418-2918.
The Commission is requesting emergency OMB processing of the information collection requirement(s) contained in this notice and has requested OMB approval no later than 26 days after the collection is received at OMB. To view a copy of this information collection request (ICR) submitted to OMB: (1) Go to the Web page
The Commission is revising the currently approved information collection to implement new collection requirements resulting from the Commission's adoption of new and modified rules prohibiting certain communications for full power and Class A television broadcast licensees and for applicants seeking to participate in the forward auction component of the BIA and requiring such covered parties to file a report with the Commission within a specified period of time if they make or receive a prohibited communication. Subject to certain exceptions, section 1.2205(b) of the Commission's rules provides that, beginning on the deadline for submitting applications to participate in the reverse auction and until the results of the incentive auction are announced by public notice, all full power and Class A broadcast television licensees are prohibited from communicating directly or indirectly any incentive auction applicant's bids or bidding strategies to any other full power or Class A broadcast television licensee or to any forward auction applicant. Section 1.2205(c) requires any party that makes or receives a prohibited communication to report such communication in writing to the Commission immediately, and in no case later than five business days after the communication occurs. Section 1.2205(d) provides the procedures for filing any reports required under section 1.2205(c). Subject to certain exceptions, forward auction applicants in the BIA are subject to a BIA-specific provision in section 1.2105(c) of the Commission's rules (in addition to the Commission's existing prohibited communications rule applicable to applicants in traditional Commission auctions), which provides that, beginning on the deadline for submitting applications to participate in the forward auction and until the results of the incentive auction have been announced by public notice, all forward auction applicants are prohibited from communicating directly or indirectly any incentive auction applicant's bids or bidding strategies to any full power or Class A broadcast television licensee. Section 1.2105(c) requires forward applicants that make or receive a prohibited communications that is prohibited under section 1.2105(c) to file a report of such a communication with the Commission.
The Commission's rules prohibiting certain communications in Commission auctions are designed to reinforce existing antitrust laws, facilitate detection of collusive conduct, and deter anticompetitive behavior, without being so strict as to discourage pro-competitive arrangements between auction participants. They also help assure participants that the auction process will be fair and objective, and not subject to collusion. The information collected through the Commission's existing reporting requirement under section 1.2105(c) allows the Commission to enforce the prohibition on forward auction applicants by making clear the responsibility of parties who receive information that potentially violates the rules to promptly report to the Commission, thereby enhancing the competitiveness and fairness of its spectrum auctions. The revised information collection under the BIA-specific rule in section 1.2105(c) and in sections 1.2205(c) and 1.2205(d) will likewise help the Commission enforce the prohibition on covered parties in the BIA, further assuring incentive auction participants that the auction process will be fair and competitive. The prohibited communication reporting requirement required of covered parties will enable the Commission to ensure that no bidder gains an unfair advantage over other bidders in its auctions and thus enhances the competitiveness and fairness of Commission's auctions. The information collected will be reviewed and, if warranted, referred to the Commission's Enforcement Bureau for possible investigation and administrative action. The Commission may also refer allegations of anticompetitive auction conduct to the Department of Justice for investigation.
Federal Housing Finance Agency.
60-day Notice of Submission of Information Collection for Approval from Office of Management and Budget.
In accordance with the requirements of the Paperwork Reduction Act of 1995, the Federal Housing Finance Agency (FHFA) is seeking public comments concerning the information collection known as the “National Survey of Existing Mortgage Borrowers” (NSEMB). This is a new collection that has not yet been assigned a control number by the Office of Management and Budget (OMB). FHFA intends to submit the information collection to OMB for review and approval of a three-year control number.
Interested persons may submit comments on or before January 11, 2016.
Submit comments to FHFA, identified by “Proposed Collection; Comment Request: `National Survey of Existing Mortgage Borrowers, (No. 2015-N-11)' ” by any of the following methods:
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We will post all public comments we receive without change, including any personal information you provide, such as your name and address, email address, and telephone number, on the FHFA Web site at
Forrest Pafenberg, Supervisory Policy Analyst, Office of the Chief Operating Officer, by email at
The NSEMB will be a periodic, voluntary survey of individuals who currently have a first mortgage loan secured by single-family residential property. The survey questionnaire will consist of approximately 80-85 questions designed to learn directly from mortgage borrowers about their mortgage experience, any challenges they may have had in maintaining their mortgage and, where applicable, terminating a mortgage. It will request specific information on: The mortgage; the mortgaged property; the borrower's experience with the loan servicer; and the borrower's financial resources and financial knowledge. FHFA is also seeking clearance to pretest the survey questionnaire and related materials from time to time through the use of focus groups. A preliminary draft of the survey questionnaire (which at this time includes only 66 questions) appears at the end of this notice.
The NSEMB will be a component of the larger “National Mortgage Database” (NMDB) Project (Project), which is a multi-year joint effort of FHFA and the Consumer Financial Protection Bureau (CFPB) (although the NSEMB is being sponsored only by FHFA). The Project is designed to satisfy the Congressionally-mandated requirements of section 1324(c) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008.
In order to fulfill those and other statutory mandates, as well as to support policymaking and research efforts, FHFA and CFPB committed in July 2012 to fund, build and manage the NMDB Project. When fully complete, the NMDB will be a de-identified loan-level database of closed-end first-lien residential mortgages. It will: (1) Be representative of the market as a whole; (2) contain detailed, loan-level information on the terms and performance of mortgages, as well as characteristics of the associated borrowers and properties; (3) be continually updated; (4) have an historical component dating back before the financial crisis of 2008; and (5) provide a sampling frame for surveys to collect additional information.
The core data in the NMDB are drawn from a random 1-in-20 sample of all closed-end first-lien mortgage files outstanding at any time between January 1998 and the present in the files of Experian, one of the three national credit repositories. A random 1-in-20 sample of mortgages newly reported to Experian is added each quarter. The NMDB also draws information on mortgages in the NMDB datasets from other existing sources, including the Home Mortgage Disclosure Act (HMDA) database that is maintained by the Federal Financial Institutions Examination Council (FFIEC), property valuation models, and data files maintained by Fannie Mae and Freddie Mac and by federal agencies. Currently, FHFA obtains additional data from its quarterly National Survey of Mortgage Borrowers (NSMB), which provides critical and timely information on newly-originated mortgages and those borrowing that are not available from any existing source, including: The range of nontraditional and subprime mortgage products being offered, the methods by which these mortgages are being marketed, and the characteristics of borrowers for these types of loans.
While the quarterly NSMB provides information on newly-originated mortgages, it does not solicit borrowers' experience with maintaining their existing mortgages; nor is detailed information on that topic available from any other existing source. The NSEMB will solicit such information, including information on borrowers' experience with maintaining a mortgage under financial stress, their experience in soliciting financial assistance, their success in accessing federally-sponsored programs designed to assist them, and, where applicable, any challenges they may have had in terminating a mortgage loan. The NSEMB questionnaire will be sent out to a stratified random sample of 10,000 borrowers in the NMDB. The NSEMB assumes a 25 percent overall response rate, which would yield 2,500 survey responses.
The information collected through the NSEMB questionnaire will be used, in combination with information obtained from existing sources in the NMDB, to assist FHFA in understanding how the performance of existing mortgages is influencing the residential mortgage market, what different borrower groups are discussing with their servicers when they are under financial stress, and
FHFA expects that, in the process of developing the initial and any subsequent NSEMB survey questionnaires and related materials, it will sponsor one or more focus groups to pretest those materials. Such pretesting will ultimately help to ensure that the survey respondents can and will answer the survey questions and will provide useful data on their experiences with maintaining their existing mortgages. FHFA will use information collected through the focus groups to assist in drafting and modifying the survey questions and instructions, as well as the related communications, to read in the way that will be most readily understood by the survey respondents and that will be most likely to elicit usable responses. Such information will also be used help the agency decide on how best to organize and format the survey questionnaire.
While FHFA currently has firm plans to conduct the survey only once—in the second quarter of 2016—it may decide to conduct further periodic NSEMB surveys once the first survey is completed. The agency therefore estimates that the survey will be conducted, on average, once annually over the next three years and that it will conduct pre-testing on each set of annual survey materials. FHFA has analyzed the hour burden on members of the public associated with pre-testing the survey materials (24 hours) and with conducting the survey (5,000 hours) and estimates the total annual hour burden imposed on the public by this information collection to be 5,024 hours. The estimate for each phase of the collection was calculated as follows:
FHFA estimates that it will sponsor two focus groups prior to conducting each survey, with 12 participants in each focus group, for a total of 24 focus group participants. It estimates the participation time for each focus group participant to be one hour, resulting in a total annual burden estimate of 24 hours for the pre-testing phase of the collection (2 focus groups per year × 12 participants in each group × 1 hour per participant = 24 hours).
FHFA estimates that the NSEMB questionnaire will be sent to 10,000 recipients each time it is conducted. Although the agency expects only 2,500 of those surveys to be returned, it assumes that all of the surveys will be returned for purposes of this burden calculation. Based on the reported experience of respondents to the quarterly NSMB questionnaire, which contains a similar number of questions, FHFA estimates that it will take each respondent 30 minutes to complete each survey, including the gathering of necessary materials to respond to the questions. This results in a total annual burden estimate of 5,000 hours for the survey phase of this collection (1 survey per year × 10,000 respondents per survey × 30 minutes per respondent = 5,000 hours).
FHFA requests written comments on the following: (1) Whether the collection of information is necessary for the proper performance of FHFA functions, including whether the information has practical utility; (2) The accuracy of FHFA's estimates of the burdens of the collection of information; (3) Ways to enhance the quality, utility, and clarity of the information collected; and (4) Ways to minimize the burden of the collection of information on survey respondents, including through the use of automated collection techniques or other forms of information technology.
The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).
The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than November 27, 2015.
A. Federal Reserve Bank of Minneapolis (Jacquelyn K. Brunmeier, Assistant Vice President) 90 Hennepin Avenue, Minneapolis, Minnesota 55480-0291:
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The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841
The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The applications will also be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States.
Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than December 4, 2015.
A. Federal Reserve Bank of Kansas City (Dennis Denney, Assistant Vice President) 1 Memorial Drive, Kansas City, Missouri 64198-0001:
In connection with this application, applicant also has applied to engage indirectly in general insurance activities, pursuant to section 225.28(b)(11)(iii)(A).
The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).
The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than November 24, 2015.
A. Federal Reserve Bank of Minneapolis (Jacquelyn K. Brunmeier, Assistant Vice President) 90 Hennepin Avenue, Minneapolis, Minnesota 55480-0291:
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B. Federal Reserve Bank of San Francisco (Gerald C. Tsai, Director, Applications and Enforcement) 101 Market Street, San Francisco, California 94105-1579:
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This notice corrects a notice (FR Doc. 2015-27768) published on page 67405 of the issue for Monday, November 2, 2015.
Under the Federal Reserve Bank of Boston heading, the entry for ESB
A. Federal Reserve Bank of Boston (Prabal Chakrabarti, Senior Vice President) 600 Atlantic Avenue, Boston, Massachusetts 02210-2204:
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Comments on this application must be received by November 27, 2015.
Federal Trade Commission.
Proposed Consent Agreement.
The consent agreement in this matter settles alleged violations of federal law prohibiting unfair methods of competition. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent orders—embodied in the consent agreement—that would settle these allegations.
Comments must be received on or before December 3, 2015.
Interested parties may file a comment at
Jasmine Rosner (202-326-3558), Bureau of Competition, 600 Pennsylvania Avenue NW., Washington, DC 20580.
Pursuant to Section 6(f) of the Federal Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing consent orders to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been placed on the public record for a period of thirty (30) days. The following Analysis to Aid Public Comment describes the terms of the consent agreement, and the allegations in the complaint. An electronic copy of the full text of the consent agreement package can be obtained from the FTC Home Page (for November 3, 2015), on the World Wide Web, at
You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before December 3, 2015. Write “Mylan N.V.—Consent Agreement, File No. 151-0129” on your comment. Your comment—including your name and your state—will be placed on the public record of this proceeding, including, to the extent practicable, on the public Commission Web site, at
Because your comment will be made public, you are solely responsible for making sure that your comment does not include any sensitive personal information, like anyone's Social Security number, date of birth, driver's license number or other state identification number or foreign country equivalent, passport number, financial account number, or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, like medical records or other individually identifiable health information. In addition, do not include any “[t]rade secret or any commercial or financial information which . . . is privileged or confidential,” as discussed in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do not include competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names.
If you want the Commission to give your comment confidential treatment, you must file it in paper form, with a request for confidential treatment, and you have to follow the procedure explained in FTC Rule 4.9(c), 16 CFR 4.9(c).
Postal mail addressed to the Commission is subject to delay due to heightened security screening. As a result, we encourage you to submit your comments online. To make sure that the Commission considers your online comment, you must file it at
If you file your comment on paper, write “Mylan N.V.—Consent Agreement, File No. 151-0129” on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. If possible, submit your paper comment to the Commission by courier or overnight service.
Visit the Commission Web site at
The Federal Trade Commission (“Commission”) has accepted, subject to final approval, an Agreement Containing Consent Orders (“Consent Agreement”) from Mylan N.V. (“Mylan”) that is designed to remedy the anticompetitive effects resulting from Mylan's acquisition of Perrigo Company plc (“Perrigo”). Under the terms of the proposed Consent Agreement, Mylan is required to divest to Alvogen, Inc. (“Alvogen”) all of its rights and assets to the following generic pharmaceutical products: (1) Acyclovir ointment; (2) bromocriptine mesylate tablets; (3) clindamycin phosphate/benzoyl peroxide gel; (4) hydromorphone hydrochloride extended release tablets; (5) liothyronine sodium tablets; (6) polyethylene glycol 3350 over-the-counter (“OTC”) oral solution packets; and (7) scopolamine extended release transdermal patches.
The proposed Consent Agreement has been placed on the public record for thirty days for receipt of comments from interested persons. Comments received during this period will become part of the public record. After thirty days, the Commission will again evaluate the proposed Consent Agreement, along with the comments received, to make a final decision as to whether it should withdraw from the proposed Consent Agreement or make final the Decision and Order (“Order”).
On September 14, 2015, Mylan launched a hostile tender offer to gain a controlling interest in Perrigo. The Commission alleges in its Complaint that the proposed acquisition, if consummated, would violate Section 7 of the Clayton Act, as amended, 15 U.S.C. 18, and Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. 45, by lessening current and future competition in seven generic pharmaceutical markets in the United States. The proposed Consent Agreement will remedy the alleged violations by preserving the competition that otherwise would be eliminated by the proposed acquisition.
A generic pharmaceutical drug contains the same active ingredient as the brand name product, but typically at a much more affordable price. Pharmaceutical companies usually launch generic versions of drugs after a branded product loses its patent protection. When only one generic product is available, the price for the branded product typically acts as a ceiling above which the generic manufacturer cannot price its product. During this period, the branded product competes directly with the generic. Once multiple generic suppliers enter a market, the branded drug manufacturer usually ceases to provide any competitive constraint on the prices for generic versions of the drug. Rather, generic suppliers compete only against each other.
Mylan's proposed acquisition of Perrigo will lessen competition in seven concentrated generic pharmaceutical product markets by reducing the number of current or future suppliers competing in each market. The proposed acquisition will reduce current competition in four generic pharmaceutical markets: (1) Bromocriptine mesylate tablets; (2) clindamycin phosphate/benzoyl peroxide gel; (3) liothyronine sodium tablets; and (4) polyethylene glycol 3350 OTC oral solution packets.
• Bromocriptine mesylate is a dopamine agonist used to treat Type 2 diabetes, pituitary tumors, Parkinson's disease, neuroleptic malignant syndrome, and hyperprolactinemia. The market for generic 2.5 mg bromocriptine mesylate tablets is highly concentrated with only three current suppliers: Mylan, Perrigo, and Sandoz AG. Absent a remedy, the proposed transaction would consolidate the market from three to two suppliers.
• Clindamycin phosphate/benzoyl peroxide gel is a combination antibiotic and drying agent used to stop the bacterial infection that causes acne. Today, only Mylan supplies the market with generic clindamycin phosphate 1%/benzoyl peroxide 5% gel. Perrigo recently received FDA approval for generic clindamycin phosphate 1%/benzoyl peroxide 5% gel and is poised to start supplying the market in the near future. As a result, the proposed transaction would reduce the number of generic clindamycin phosphate 1%/benzoyl peroxide 5% gel suppliers from two to one.
• Liothyronine sodium is a synthetic thyroid hormone used to treat hypothyroidism and to treat or prevent enlarged thyroid glands. Currently, only three suppliers provide generic liothyronine sodium tablets in the 0.005 mg, 0.025 mg, and 0.05 mg strengths: Mylan, Perrigo, and SigmaPharm Laboratories, LLC. The proposed transaction would further consolidate an already highly concentrated market, leaving two suppliers post-transaction.
• Polyethylene glycol 3350, a laxative, is an OTC oral solution packet used to treat occasional constipation. In the 17 gm/packet OTC market, Mylan, Perrigo, and Gavis Pharmaceuticals, LLC, are the only active suppliers in the market. As a result, the proposed transaction would consolidate the number of active suppliers of generic polyethylene glycol 3350 OTC oral solution packets from three to two.
Additionally, the proposed acquisition will reduce future competition in three generic pharmaceutical markets: (1) Acyclovir ointment; (2) hydromorphone hydrochloride extended release tablets; and (3) scopolamine extended release transdermal patches. In each of these markets, either Mylan or Perrigo is a likely new entrant in the near future. Without a remedy, the proposed acquisition would eliminate an independent entrant into each market, likely depriving customers of the significant cost savings that result when an additional generic supplier enters a concentrated market.
• Acyclovir ointment is a topical product used to slow the growth and spread of the herpes virus. Mylan and Amneal Pharmaceuticals LLC currently hold ANDAs and supply acyclovir 5% ointment. Allergan plc (“Allergan”) also sells an authorized generic version of acyclovir 5% ointment. Perrigo is one of a limited number of suppliers likely to enter this market in the near future.
• Hydromorphone hydrochloride is an analgesic used to treat moderate to severe pain in narcotic-tolerant patients. Perrigo and Allergan hold ANDAs for 8 mg, 12 mg, and 16 mg extended release tablets. In addition, Mallinckrodt plc markets an authorized generic version of hydromorphone hydrochloride extended release tablets. Mylan is one of a limited number of suppliers likely to enter this market in the near future.
• Scopolamine transdermal patches prevent nausea and vomiting associated with motion sickness and recovery from anesthesia and surgery. Novartis AG currently markets the branded version, Transderm Scop, which is available as a 1 mg/72 hour extended release transdermal patch. Perrigo holds the only approved ANDA for the generic version of Transderm Scop. Mylan is one of a limited number of other
Entry into each of these generic pharmaceutical markets would not be timely, likely, or sufficient in magnitude, character, and scope to deter or counteract the anticompetitive effects of the proposed acquisition. The combination of drug development times and regulatory requirements, including approval by the United States Food and Drug Administration (“FDA”), is costly and lengthy.
The proposed acquisition likely would cause significant anticompetitive harm to consumers by eliminating current or future competition between Mylan and Perrigo in these seven concentrated markets. In each of these markets, Mylan and Perrigo are two of a limited number of current or likely future suppliers in the United States. Market participants characterize each of the markets as a current or likely future commodity market, in which the number of generic suppliers has a direct impact on pricing. Customers and competitors have observed that the price of generic pharmaceutical products decreases with new entry even after several suppliers have entered the market. Removal of an independent generic pharmaceutical supplier from the relevant markets in which Mylan and Perrigo currently compete likely would result in significantly higher prices post-acquisition. Similarly, the elimination of a future independent competitor would prevent the price decreases that are likely to result from the firm's entry. Thus, absent a remedy, the proposed acquisition will likely cause U.S. consumers to pay significantly higher prices for these generic drugs.
The proposed Consent Agreement effectively remedies the proposed acquisition's anticompetitive effects in each relevant market. Under the Consent Agreement, Mylan is required to divest to Alvogen its rights to the seven relevant products. Alvogen is an international pharmaceutical company, with commercial operations in thirty-four countries. Its business focuses on developing, manufacturing, and distributing generic, branded, and OTC pharmaceutical products. Mylan must accomplish the divestitures to Alvogen and relinquish its rights to these products no later than thirty days after the proposed acquisition is consummated.
The Commission's goal in evaluating possible purchasers of divested assets is to maintain the competitive environment that existed prior to the proposed acquisition. If the Commission determines that Alvogen is not an acceptable acquirer, or that the manner of the divestitures is not acceptable, the proposed Order requires Mylan to unwind the sale of rights to Alvogen and to divest the products to a Commission-approved acquirer within six months of the date the Order becomes final. The proposed Order further allows the Commission to appoint a trustee if Mylan fails to divest the products as required.
The proposed Consent Agreement contains several provisions to help ensure that the divestitures are successful. The Order requires Mylan to take all action to maintain the economic viability, marketability, and competitiveness of the products to be divested until such time that they are transferred to a Commission-approved acquirer. Mylan must provide transitional services to Alvogen to assist it in establishing independent manufacturing capabilities. These transitional services include technical assistance to manufacture the divestiture products in substantially the same manner and quality employed or achieved by Mylan, and advice and training from knowledgeable Mylan employees. Mylan must also provide Alvogen with a supply of the divested products while Mylan transfers manufacturing technology to Alvogen or its designated manufacturer. The goal of the transitional services is to ensure that Alvogen will be able to operate independent of Mylan in the manufacture and sale of the divested products. Nothing in the Consent Agreement, however, precludes Alvogen from sourcing active pharmaceutical ingredients or other divestiture product inputs from Mylan on a negotiated basis.
As Alvogen was unable to perform due diligence on the Perrigo products at issue, Mylan divested its own on-market, generic acyclovir ointment product rather than Perrigo's product in development. Because the competition that is preserved by the proposed Consent Agreement will only occur when the Perrigo product is launched, the proposed Order permits Mylan to retain the right to sell acyclovir ointment through a license from Alvogen until thirty days after Mylan receives approval for the Perrigo ANDA, but for no longer than three years. This provision is designed to permit Mylan to remain an active market participant pending the approval of Perrigo's acyclovir ointment ANDA but also ensures Mylan's continued incentive to develop and launch the Perrigo product.
The purpose of this analysis is to facilitate public comment on the proposed Consent Agreement, and it is not intended to constitute an official interpretation of the proposed Order or to modify its terms in any way.
By direction of the Commission.
Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).
Notice with comment period.
The Centers for Disease Control and Prevention (CDC), as part of its continuing efforts to reduce public burden and maximize the utility of government information, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. This notice invites comment on Data Collection for the Residential Care Community and Adult Day Services Center Components of the National Study of Long-Term Care Providers. The purpose is to collect data for the residential care community and adult day services center components for the 2016 wave of the National Study of Long-Term Care Providers.
Written comments must be received on or before January 11, 2016.
You may submit comments, identified by Docket No. CDC-2015-0098 by any of the following methods:
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All public comment should be submitted through the Federal eRulemaking portal (Regulations.gov) or by U.S. mail to the address listed above.
To request more information on the proposed project or to obtain a copy of the information collection plan and instruments, contact the Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS-D74, Atlanta, Georgia 30329; phone: 404-639-7570; Email:
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3520), Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. In addition, the PRA also requires Federal agencies to provide a 60-day notice in the
Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; to develop, acquire, install and utilize technology and systems for the purpose of collecting, validating and verifying information, processing and maintaining information, and disclosing and providing information; to train personnel and to be able to respond to a collection of information, to search data sources, to complete and review the collection of information; and to transmit or otherwise disclose the information.
Residential Care Community and Adult Day Service Center Components of the National Study of Long-Term Care Providers (OMB Control No. 0920-0943 Exp. Date: 07/31/2015)—Reinstatement with change—National Center for Health Statistics (NCHS), Centers for Disease Control and Prevention (CDC).
Section 306 of the Public Health Service (PHS) Act (42 U.S.C. 242k), as amended, authorizes that the Secretary of Health and Human Services (DHHS), acting through NCHS, “shall collect statistics on health resources . . . [and] utilization of health care, including extended care facilities, and other institutions.”
NCHS seeks approval to collect data for the residential care community (RCC) and adult day services center (ADSC) survey components of the 3rd wave of the National Study of Long-Term Care Providers (NSLTCP). A two year clearance is requested.
As background here are some details on the complete study design. The NSLTCP, a voluntary survey, is designed to (1) broaden NCHS' ongoing coverage of paid, regulated long-term care (LTC) providers; (2) merge with existing administrative data on LTC providers and service users (
Data will be collected from two types of LTC providers in the 50 states and the District of Columbia: 11,690 RCCs and 5,440 ADSCs in each wave. Data were collected in 2012 and 2014. The data to be collected beginning in 2016 include the basic characteristics, services, staffing, and practices of RCCs and ADSCs, and aggregate-level distributions of the demographics, selected health conditions and health care utilization, physical functioning, and cognitive functioning of RCC residents and ADSC participants.
Expected users of data from this collection effort include, but are not limited to CDC; other Department of Health and Human Services (DHHS) agencies, such as the Office of the Assistant Secretary for Planning and Evaluation and the Agency for Healthcare Research and Quality; associations, such as LeadingAge (formerly the American Association of Homes and Services for the Aging), National Center for Assisted Living, American Seniors Housing Association, Assisted Living Federation of America, and National Adult Day Services Association; universities; foundations; and other private sector organizations such as the Alzheimer's Association and the AARP Public Policy Institute.
Expected burden from data collection is 30 minutes per respondent. We estimate that 5% of RCC and ADSC directors will be called for an additional 5 minutes of data retrieval when there are errors or omissions in their returned questionnaires. Two year clearance is requested to cover the collection of data. The burden for the collection is shown in Table 1 below. There is no cost to respondents other than their time to participate.
Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).
Notice with comment period.
The Centers for Disease Control and Prevention (CDC), as part of its continuing efforts to reduce public burden and maximize the utility of government information, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. This notice invites comment for Developing a Self-Management Tool for Individuals with Systemic Lupus Erythematosus (SLE), to assess the value of a tool aimed to enhance the ability of persons with SLE to effectively manage their condition.
Written comments must be received on or before January 11, 2016.
You may submit comments, identified by Docket No. CDC-2015-0099 by any of the following methods:
All public comment should be submitted through the Federal eRulemaking portal (Regulations.gov) or by U.S. mail to the address listed above.
To request more information on the proposed project or to obtain a copy of the information collection plan and instruments, contact the Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS-D74, Atlanta, Georgia 30329; phone: 404-639-7570; Email:
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3520), Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. In addition, the PRA also requires Federal agencies to provide a 60-day notice in the
Developing a Self-Management Tool for Individuals with Systemic Lupus Erythematosus (SLE)—New—National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP), Centers for Disease Control and Prevention (CDC).
Systemic Lupus Erythematosus (SLE) is an autoimmune disease in which the immune system produces antibodies to cells within the body leading to widespread inflammation and tissue damage. SLE has a variety of clinical manifestations and can affect joints, skin, the brain, lungs, kidneys, and blood vessels. Effective SLE management depends not only upon clinical interventions, but also on self-management—those things done on a day-to-day basis to manage SLE. SLE self-management requires gaining essential knowledge, skills, and confidence to manage the condition.
CDC previously launched a two-year project called “
The proposed information collection will assess a SLE self-management tool that is in development to ensure that the tool is usable and useful to members of the target audience. The tool is expected to be comprised of multiple SLE self-management resources that may include, but are not limited to: Education resources about fatigue management, pain management, healthy diet, and exercise; symptom trackers; medication trackers; appointment calendars; resources about communication with family, friends, and co-workers about SLE; and strategies for coping with depression and anxiety. CDC plans to make the tool available in an electronic format (web-based or a native mobile application) and will consider making it available as a printed resource, depending on the feedback obtained during the testing process.
The information collection will also gauge the needs of the target audience(s), tool format and delivery method(s), and the tool's clarity, relevance, salience and appeal. A series of focus groups with women with a diagnosis of SLE, and one-on-one telephone interviews with men with a diagnosis of SLE will be conducted to assess the tool. The same discussion guide will be used for all information collection. The estimated burden per response for participating in a focus group discussion is 2 hours. The estimated burden per response for a discussion conducted via telephone interview is 45 minutes. Respondent burden also includes 2 hours for reviewing the draft SLE self-management tool in advance of the focus group meeting or telephone interview.
OMB approval is requested for one year. Participation is voluntary and there are no costs to respondents other than their time.
Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).
Notice with comment period.
The Centers for Disease Control and Prevention (CDC), as part of its continuing efforts to reduce public burden and maximize the utility of government information, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. This notice invites comment on a proposed information collection request entitled “Data Collection for Community-based Tick Control for the Prevention of Rocky Mountain Spotted Fever in Hermosillo, Mexico.” This project will be carried out in collaboration with the Rickettsial Zoonoses Branch, National Center for Emerging and Zoonotic Infectious Diseases (NCEZID), Centers for Disease Control and Prevention (CDC) and the University of Sonora School of Medicine (UNSOM) to assess the efficacy and impact of a community based tick prevention project.
Written comments must be received on or before January 11, 2016.
You may submit comments, identified by Docket No. CDC-2015-0100 by any of the following methods:
• Federal eRulemaking Portal: Regulation.gov. Follow the instructions for submitting comments.
• Mail: Leroy A. Richardson, Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS-D74, Atlanta, Georgia 30329.
All public comment should be submitted through the Federal eRulemaking portal (Regulations.gov) or by U.S. mail to the address listed above.
To request more information on the proposed project or to obtain a copy of the information collection plan and instruments, contact the Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS-D74, Atlanta, Georgia 30329; phone: 404-639-7570; Email:
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3520), Federal agencies must obtain approval from the Office of
Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; to develop, acquire, install and utilize technology and systems for the purpose of collecting, validating and verifying information, processing and maintaining information, and disclosing and providing information; to train personnel and to be able to respond to a collection of information, to search data sources, to complete and review the collection of information; and to transmit or otherwise disclose the information.
Community-based Tick Control for the Prevention of Rocky Mountain Spotted Fever in Hermosillo, Mexico”—New—National Center for Emerging and Zoonotic Diseases (NCEZID), Centers for Disease Control and Prevention (CDC).
The Centers for Disease Control and Prevention (CDC) Rickettsial Zoonoses Branch (RZB) requests approval of a public health intervention assessment tool to demonstrate the efficacy and impact of public health research related to the prevention of Rocky Mountain spotted fever [RMSF] in Hermosillo, Mexico. These activities include monitoring cases, conducting tick control interventions, and performing participant surveys to assess the knowledge, attitudes, and practices relating to tick control and prevention.
The information collection for which approval is sought is in accordance with RZB's mission to reduce morbidity and mortality of rickettsial diseases and decrease the burden of disease through control and prevention methods. Authorizing Legislation comes from section 301 of the Public Health Service Act (42 U.S.C. 241).
Approval for a three-year data collection will allow RZB to collect information related to risk of RMSF to improve and inform prevention activities. Successful execution of RZB's public health mission requires use data collection activities in collaboration with multiple local and international partners. RZB proposes the following use of pre/posttests to evaluate the changes in knowledge, attitudes and practices relating to tick control as well as perceived impact of the intervention project. The project will also collect basic household information to document their consent to participate. Data collection will be conducted in-person. Data will be recorded on paper forms and then entered into an electronic database.
RZB estimates involvement of 1,300 respondents and a maximum of 600 hours of burden for research activities each year. The collected information will not impose a cost burden on the respondents beyond that associated with their time to provide the required data.
Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).
Notice with comment period.
The Centers for Disease Control and Prevention (CDC), as part of its continuing efforts to reduce public burden and maximize the utility of government information, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. This notice invites comment on the “Occupational Health Safety Network (OHSN)” data collection.
Written comments must be received on or before January 11, 2016.
You may submit comments, identified by Docket No. CDC-2015-0101 by any of the following methods:
All public comment should be submitted through the Federal eRulemaking portal (Regulations.gov) or by U.S. mail to the address listed above.
To request more information on the proposed project or to obtain a copy of the information collection plan and instruments, contact the Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS-D74, Atlanta, Georgia 30329; phone: 404-639-7570; Email:
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3520), Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. In addition, the PRA also requires Federal agencies to provide a 60-day notice in the
Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; to develop, acquire, install and utilize technology and systems for the purpose of collecting, validating and verifying information, processing and maintaining information, and disclosing and providing information; to train personnel and to be able to respond to a collection of information, to search data sources, to complete and review the collection of information; and to transmit or otherwise disclose the information.
Occupational Health Safety Network (OHSN)—Existing Information Collection in use Without an OMB Control Number—National Institute for Occupational Safety and Health (NIOSH), Centers for Disease Control and Prevention (CDC).
Healthcare in the United States is a growing industry that employs more than 19 million workers with a substantial burden of occupational injuries and illnesses. In 2013, one in five workers in the healthcare and social assistance industry reported a nonfatal job-related injury. This is the highest number of non-fatal injuries reported among all private industries.
U.S. healthcare facilities depend on surveillance data to track the incidence of injuries, identify risk factors, target prevention activities and evaluate interventions to reduce the occurrence of occupational injury among healthcare personnel. To assist healthcare facilities to enhance capacity to use existing surveillance data, in 2012, the National Institute for Occupational Safety and Health (NIOSH) launched the Occupational Health Safety Network (OHSN), a voluntary surveillance system developed specifically for healthcare personnel environment. OHSN is a free and secure electronic occupational safety and health surveillance system that has provided U.S. healthcare facilities the ability to efficiently analyze their own occupational injury data while, at the same time, serving as a source for national surveillance by sharing their de-identified injury data with NIOSH. Unlike other national occupational surveillance systems, OHSN offers an integrated approach to monitor standard occupational injuries among facility-based healthcare personnel in the U.S. and to provide timely, facility-level feedback to participants with benchmarking and analyses capabilities.
OHSN collects two types of data from participating facilities. Facilities collect these data to meet specific regulatory or administrative requirements. Thus, no new data collection is required. Participating facilities provide OHSN a onetime enrollment. The enrollment form requests information about the participating facility, which is publically available from American Hospital Association. Participating facilities also provide a monthly submission of occupational injury data collected in the previous month. These data are sent to OHSN via a web portal in a format using standardized data elements and value sets. No personal identifiable information is transmitted to OHSN. Data elements include: Injury time, location and surrounding circumstances of each injury event.
Healthcare facilities download data through an OHSN-provided data conversion and mapping tools which uploads the monthly occupational injury data.
Each participating facility has access to the OHSN web portal, facilities are able to analyze current and historical data to benchmark their worker injury rates and trends and compare their data to aggregate data from similar workplaces. In addition they are able to assess the impact of prevention efforts on occupational health and safety over time using aggregated data analysis and visualization tools (charts and graphs).
OHSN currently tracks three common, serious, and preventable categories of traumatic injury to healthcare personnel: Slips, trips and falls; musculoskeletal disorders resulting from patient handling and movement events; and workplace violence. NIOSH proposes to add new modules about exposure to sharps injury and blood and body fluids exposures.
NIOSH analyzes the data submitted to OHSN to conduct occupational health surveillance and to produce periodic aggregate reports on the occurrence of and risk factors for occupational injuries among all OHSN facilities.
OHSN has been operating continuously and receiving voluntary monthly reports from 116 participating facilities since 2012 and is projected to enroll total of 300 facilities in the next 3 years. NIOSH seeks approval for an OMB control number to continue this
Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).
Notice with comment period.
The Centers for Disease Control and Prevention (CDC), as part of its continuing efforts to reduce public burden and maximize the utility of government information, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. CDC is requesting a new three-year approval for “The Cooperative Re-engagement Controlled Trial (CoRECT)” information collections.
Written comments must be received on or before January 11, 2016.
You may submit comments, identified by Docket No. CDC-2015-0097 by any of the following methods:
•
•
All public comment should be submitted through the Federal eRulemaking portal (Regulations.gov) or by U.S. mail to the address listed above.
To request more information on the proposed project or to obtain a copy of the information collection plan and instruments, contact the Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS-D74, Atlanta, Georgia 30329; phone: 404-639-7570; Email:
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3520), Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. In addition, the PRA also requires Federal agencies to provide a 60-day notice in the
Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; to develop, acquire, install and utilize technology and systems for the purpose of collecting, validating and verifying information, processing and maintaining information, and disclosing and providing information; to train personnel and to be able to respond to a collection of information, to search data sources, to complete and review the collection of information; and to transmit or otherwise disclose the information.
The Cooperative Re-engagement Controlled Trial (CoRECT)—New—National Center for HIV/AIDS, Viral Hepatitis, STD, and TB Prevention (NCHHSTP), Centers for Disease Control and Prevention (CDC).
The Centers for Disease Control and Prevention (CDC), National Center for HIV/AIDS, Viral Hepatitis, STD, and TB Prevention (NCHHSTP), Division of HIV/AIDS Prevention (DHAP) requests a new three-year OMB approval for information collection for a new research study entitled “The Cooperative Re-engagement Controlled Trial (CoRECT)”. The purpose of the study is to evaluate a combined health department and clinic intervention to improve engagement in HIV care.
The CoRECT Study data collection is comprised of six core components: 1. Electronic clinic data abstraction (Electronic Medical Record (EMR) abstraction will be conducted by project clinic staff at each project clinic to develop the clinic-based “Out of Care” list; 2. electronic surveillance data abstraction (Electronic surveillance data abstraction will be conducted by project health department staff at each health department to develop the health department based “Out of Care” list); 3. a “Barriers to Care” survey (These surveys will provide information regarding barriers to accessing healthcare (
Prospective data collection will provide information about participant's baseline characteristics including sex, race/ethnicity, HIV exposure risk category, CD4 and viral load test results, date of first clinic visit, and insurance status.
HIV antiretroviral therapy (ART) can durably suppress the plasma HIV viral load, which improves individual survival and dramatically reduces further HIV transmission. Increasing the number of people living with HIV who access HIV care and achieve viral load suppression is a priority of the National HIV/AIDS Strategy. Within the continuum of HIV care in the United States, improvements in linkage to and retention in effective care provide the greatest opportunity to improve rates of HIV viral suppression. It is estimated that of the 1.2 million persons living with HIV in 2011, only 40% were engaged in HIV medical care and only 30% achieved viral suppression.
HIV clinical trials with enhanced case management have demonstrated that interventions provided by the health department can improve linkage to HIV care and interventions provided by the clinic can improve retention in HIV care. Although linkage to care has improved in many health department jurisdictions, being linked to care is not enough. There is a need to ensure that: (i) People diagnosed with HIV and linked to care are engaging medical care (
The CoRECT study is a randomized controlled trial that seeks to establish a data-sharing partnership between health departments and HIV care clinical providers to identify HIV-infected persons who are out of care and evaluate an intervention that aims to have randomized participants: (a) Link to an HIV clinic; (b) remain in HIV medical care; (c) achieve HIV viral load suppression within 12 months; and (d) achieve durable HIV viral load suppression over 18 months.
The study is funded by CDC through cooperative agreements with the Connecticut State Department of Public Health (in collaboration with Yale University School of Medicine), the Massachusetts State Department of Public Health, and the Philadelphia Department of Public Health.
In compliance with the requirement of Section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, for opportunity for public comment on proposed data collection projects, the Office of Intramural Training & Education (OITE), Office of the Director (OD), the National Institutes of Health (NIH), will publish periodic summaries of proposed projects to be submitted to the Office of Management and Budget (OMB) for review and approval.
Written comments and/or suggestions from the public and affected agencies are invited on one or more of the following points: (1) Whether the proposed collection of information is necessary for the proper performance of the function of the agency, including whether the information will have practical utility; (2) The accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (3) Ways to enhance the quality, utility, and clarity of the information to be collected; and (4) Ways to minimize the burden of the collection of information on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.
To obtain a copy of the data collection plans and instruments, submit comments in writing, or request more information on the proposed project, contact: Dr. Patricia Wagner, Office of Intramural Training & Education (OITE), 2 Center Drive; Building 2/Room 2E06; Bethesda, Maryland 20892, or call non-toll-free number 240-476-3619, or Email your request, including your address to:
Comments regarding this information collection are best assured of having their full effect if received within 60 days of the date of this publication.
NIH Office of Intramural Training & Education Application, Revision, 0925-0299 Expiration Date: 3/31/2016, Office of Intramural Training & Education (OITE), Office of the Director (OD), National Institutes of Health (NIH).
OMB approval is requested for 3 years. There are no costs to respondents other than their time. The total estimated annualized burden hours are 16,332.55.
Notice is hereby given of a change in the meeting of the National Cancer Advisory Board, November 30, 2015, 6:30 p.m. to December 2, 2015, 12:00 p.m., National Institutes of Health, Building 31, 31 Center Drive, Bethesda, MD, 20892 which was published in the
The open session on December 2, 2015 has been canceled. The meeting is partially closed to the public.
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of the following meetings.
The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of the following meetings.
The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of the following meetings.
The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of a meeting of the Board of Scientific Counselors, National Institute of Dental and Craniofacial Research.
The meeting will be closed to the public as indicated below in accordance with the provisions set forth in section 552b(c)(6), Title 5 U.S.C., as amended for the review, discussion, and evaluation of individual intramural programs and projects conducted by the National Institute of Dental and Craniofacial Research, including consideration of personnel qualifications and performance, and the competence of individual investigators, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
Information is also available on the Institute's/Center's home page:
Notice is hereby given of a change in the meeting of the National Institute of Child Health and Human Development Special Emphasis Panel, November 19, 2015, 8:00 p.m. to November 20, 2015 5:00 p.m., St. Gregory Hotel, 2033 M Street NW., Washington, DC 20036 which was published in the
The meeting location has changed from the St. Gregory Hotel, Washington DC to the Washington Marriott Wardman Park Hotel, Washington, DC. The meeting date has changed from Nov. 19-20, 2015 to Nov. 19, 2015 only. The meeting is closed to the public.
Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended (5 U.S.C. App.), notice is hereby given of the following meetings.
The meetings will be closed to the public in accordance with the
Under the provisions of Section 3507(a)(1)(D) of the Paperwork Reduction Act of 1995, the National Institutes of Health (NIH), has submitted to the Office of Management and Budget (OMB) a request for review and approval of the information collection listed below. This proposed information collection was previously published in the
To obtain a copy of the data collection plans and instruments or request more information on the proposed project contact: Tony Beck, Ph.D., Office of Science Education/SEPA, Office of Research Infrastructure Programs, Division of Program Coordination, Planning, and Strategic Initiatives, Office of the Director, National Institutes of Health, 6701 Democracy Boulevard, Room 206, Bethesda, MD 20892 or call non-toll-free number 301-435-0805 or email your request, including your address to:
OMB approval is requested for one year. There are no costs to respondents other than their time. The total estimated annualized burden hours are 523.
In compliance with Section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995 concerning opportunity for public comment on proposed collections of information, the Substance Abuse and Mental Health Services Administration (SAMHSA) will publish periodic summaries of proposed projects. To request more information on the proposed projects or to obtain a copy of the information collection plans, call the SAMHSA Reports Clearance Officer on (240) 276-1243.
Comments are invited on: (a) Whether the proposed collections of information are necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.
SAMHSA is conducting a national evaluation of the Now is the Time (NITT) initiative, which includes separate programs—NITT Project AWARE (Advancing Wellness and Resilience in Education)—State Educational Agency (SEA), Healthy Transitions (HT), and two Minority Fellowship Programs (Youth and Addiction Counselors). These programs are united by their focus on capacity building, system change, and workforce development.
NITT-HT, which is the focus of this data collection, represents a response to the fourth component of President Obama's NITT Initiative: Increasing access to mental health services. The purpose of the NITT-HT program is to improve access to treatment and support services for youth/young adults 16-25 years that either have, or are at risk of developing a mental illness or substance use disorder, and are at high risk of suicide. NITT-HT grants were made to 17 state or local jurisdictions, each of which include 2-3 learning laboratories (n = 43), which are the local communities of practice responsible for implementing the NITT-HT approach. The NITT-HT program aims to increase awareness about early signs and symptoms of mental health conditions in the community; identify action strategies to use when a mental health concern is detected; provide training to provider and community groups to improve services and supports for youth/young adults; enhance peer and family supports; and develop effective services and interventions for youth and young adults with a serious mental health condition and their families. The NITT-HT evaluation is designed to understand whether and how NITT-HT grantees reach these program goals by examining system- and grantee-level processes and system- and client-level outcomes. Data collection efforts that will support the evaluation are described below.
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All NITT-HT grantees (n = 17) will be visited once during the 5-year grant period. Activities associated with the grantee visit (
Prior to the grantee visit, the
During the one-time grantee visit, several in-person interviews and two client-oriented focus groups will be conducted with NITT-HT program staff. The
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Send comments to Summer King, SAMHSA Reports Clearance Officer, Room 2-1057, One Choke Cherry Road, Rockville, MD 20857 or email her a copy at
Bureau of Indian Affairs, Interior.
Notice.
On May 16, 2014, the Bureau of Indian Affairs (BIA) approved the Navajo Nation General Leasing Regulations under the Navajo Nation Trust Leasing Act of 2000. With this approval, the Tribe is authorized to enter into leases without BIA approval.
Ms. Cynthia Morales, Office of Trust Services—Division of Realty, Bureau of Indian Affairs; Telephone (202) 768-4166; Email
The Navajo Nation Trust Leasing Act authorizes the Nation to issue leases for purposes authorized under 25 U.S.C. 415(a) without the approval of the Secretary, provided the lease is executed under tribal regulations approved by the Secretary. Congress enacted the Leasing Act in 2000, to “establish a streamlined process for the Navajo Nation to lease trust lands without having the approval of the Secretary of the Interior for individual leases,” and “[t]o maintain, strengthen, and protect the Navajo Nation's leasing power over Navajo trust lands.” Public Law 106-568 § 1202, 114 Stat. 2933 (Dec. 27, 2000).
The Department's regulations governing the surface leasing of trust and restricted Indian lands specify that, subject to applicable Federal law, permanent improvements on leased land, leasehold or possessory interests, and activities under the lease are not subject to State and local taxation and may be subject to taxation by the Indian tribe with jurisdiction.
Section 5 of the Indian Reorganization Act, 25 U.S.C. 465, preempts State and local taxation of permanent improvements on trust land.
The strong Federal and tribal interests against State and local taxation of improvements, leaseholds, and activities on land leased under the Department's leasing regulations apply equally to improvements, leaseholds, and activities on land leased pursuant to tribal leasing regulations approved under the Navajo Nation Trust Leasing Act. The Navajo Nation Trust Leasing Act was intended to “revitalize the distressed Navajo Reservation by promoting political self-determination, and encouraging economic self-sufficiency, including economic development that increases productivity and the standard of living for members of the Navajo Nation.” Public Law 106-568 § 1202, 114 Stat. 2933 (Dec. 27, 2000). Moreover, the Navajo Nation Trust Leasing Act was the model for the HEARTH (Helping Expedite and Advance Responsible Tribal Homeownership) Act of 2012, for which Congress's overarching intent was to “allow tribes to exercise greater control over their own land, support self-determination, and eliminate bureaucratic delays that stand in the way of homeownership and economic development in tribal communities.” 158 Cong. Rec. H. 2682 (May 15, 2012).
Assessment of State and local taxes would obstruct these express Federal policies supporting tribal economic development and self-determination, and also threaten substantial tribal interests in effective tribal government, economic self-sufficiency, and territorial autonomy.
Just like BIA's surface leasing regulations, tribal regulations under the Navajo Nation Trust Leasing Act pervasively cover all aspects of leasing. Furthermore, the Federal government remains involved in the tribal land leasing process by approving the tribal leasing regulations in the first instance. The Secretary also retains authority to take “all appropriate actions . . . in furtherance of the trust obligation of the United States to the Navajo Nation” and necessary actions remedy violations of tribal regulations, including cancelling the lease or rescinding approval of the tribal regulations and reassuming lease approval responsibilities. 25 U.S.C. 415(e). Moreover, the Secretary continues to review, approve, and
Accordingly, the Federal and tribal interests weigh heavily in favor of preemption of State and local taxes on lease-related activities and interests, regardless of whether the lease is governed by tribal leasing regulations or Part 162. Improvements, activities, and leasehold or possessory interests may be subject to taxation by the Navajo Nation.
Bureau of Land Management, Interior; Western Area Power Administration, DOE.
Notice of availability.
In accordance with the National Environmental Policy Act of 1969 (NEPA), as amended, and the Federal Land Policy and Management Act of 1976 (FLPMA), as amended, the Bureau of Land Management (BLM) and the Western Area Power Administration (Western) have prepared a Final Environmental Impact Statement (EIS) for the proposed Southline Transmission Line Project (Project), and by this notice are announcing its availability.
Neither the BLM nor Western will issue a final decision on the proposed Project for a minimum of 30 days after the date that the Environmental Protection Agency publishes its Notice of Availability in the
Copies of the Southline Transmission Line Project Final EIS have been sent to affected Federal, State, and local government agencies as well as to other stakeholders. Copies of the Final EIS are available for public inspection at the BLM Las Cruces District Office, 1800 Marquess Street, Las Cruces, New Mexico 88005; the BLM New Mexico State Office, 301 Dinosaur Trail, Santa Fe, New Mexico 87508; the BLM Arizona State Office, One North Central Avenue, Suite 800, Phoenix, Arizona 85004; the BLM Safford Field Office, 711 14th Avenue, Safford, Arizona 85546; and the BLM Tucson Field Office, 3201 East Universal Way, Tucson, Arizona 85756. The Final EIS and supporting documents are available electronically on the Project Web site at:
Mark Mackiewicz, PMP, BLM Senior National Project Manager; telephone (435) 636-3616; email:
Persons who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at (800) 877-8339 to contact the above individual during normal business hours. The FIRS is available 24 hours a day, 7 days a week, to leave a message or question with the above individual. You will receive a reply during normal business hours.
Southline Transmission, LLC (Southline), the proponent, has filed a right-of-way (ROW) application with the BLM pursuant to Title V of FLPMA, proposing to construct, operate, maintain, and eventually decommission a high-voltage, alternating current electric transmission line. The BLM and Western agreed to be joint lead agencies in accordance with 40 CFR 1501.5(b). Western is a power-marketing agency within the DOE and is also a participant in the proposed Project with Southline.
The proposed Project would consist of two sections. The first section would entail construction of approximately 240 miles of new double-circuit 345-kilovolt (kV) transmission line in a 200-foot ROW between the Afton Substation, south of Las Cruces, New Mexico, and Apache Substation, south of Willcox, Arizona (Afton-Apache or New Build Section). The second section would entail the upgrade of approximately 120 miles of Western's existing Saguaro-Tucson and Tucson-Apache 115-kV transmission line in a 100-foot existing ROW to a double-circuit 230-kV transmission line in a 100 to 150-foot ROW (Apache-Saguaro or Upgrade Section). The Upgrade Section would originate at the Apache Substation and terminate at the Saguaro Substation northwest of Tucson, Arizona. Both new permanent ROWs and temporary construction ROWs would be required in the New Build Section and in some portions of the Upgrade Section for the transmission line, access roads, and other permanent and temporary Project components.
The proposed Project would involve the interconnection with and expansion and upgrade of 14 existing substations in southern Arizona and New Mexico, as well as the potential construction of a new 345-kV substation facility in New Mexico. The Project would also include installation of a fiber optic network communications system. Fee ownership would only be considered for substations or substation expansions; all other land rights acquired on non-federal lands would be through easements or leases. The New Build Section (Afton-Apache) would include construction and operation of:
• 205 miles of 345-kV double-circuit electric transmission line as well as associated roads and ancillary facilities in New Mexico and Arizona with a planned bidirectional capacity of up to 1,000 MW. This section is defined by endpoints at the existing Afton Substation, south of Las Cruces in Doña Ana County, New Mexico, and Western's existing Apache Substation, south of Willcox in Cochise County, Arizona;
• 5 miles of 345-kV single-circuit electric transmission line between the existing Afton Substation and the existing Luna-Diablo 345-kV transmission line;
• 30 miles of 345-kV double-circuit electric transmission line between New Mexico State Route 9 and Interstate 10 east of Deming in Luna County, New Mexico, to provide access for potential renewable energy generation sources in southern New Mexico. This segment of the proposed Project is included in the analysis, however, development of this segment would be determined at a later date;
• One potential new substation on approximately 25 acres of land in Luna County, New Mexico (proposed Midpoint Substation), to provide an intermediate connection point for future interconnection requests; and
The Upgrade Section (Apache-Saguaro) would include:
• Replacing 120 miles of Western's existing Saguaro-Tucson and Tucson-Apache 115-kV single-circuit electric wood-pole H-frame transmission lines with a 230-kV double-circuit electric steel-pole transmission line. This section is defined by endpoints at the existing Apache Substation, south of Willcox in Cochise County, Arizona, and the existing Saguaro Substation, northwest of Tucson in Pima County, Arizona;
• 2 miles of new build double-circuit 230-kV electric transmission line to interconnect with the existing Tucson Electric Power Company Vail Substation, located southeast of Tucson and just north of the existing 115-kV Tucson-Apache line; and
• Interconnection with and upgrade of 12 existing substations along Western's existing Saguaro-Tucson and Tucson-Apache 115-kV lines in Arizona. Substation expansions would be required for installation of new communications equipment, new 230-kV bays with transformers, breakers, switches, and ancillary equipment. In some cases expansion may require a separate yard.
Environmental and social concerns and issues were identified through both the initial public scoping and Draft EIS comment periods. The issues addressed in the Final EIS that shaped the Project's scope and alternatives include, but are not limited to:
In addition to the Proponent Preferred Action, Southline also submitted the Proponent Alternative route for the New Build Section of the proposed Project, both of which were the product of extensive stakeholder outreach. In addition to the Proponent Preferred Action, the Proponent Alternative and the No Action Alternative, the BLM and Western are considering local alternatives and route variations. To simplify the analysis of alternatives, the Project area has been divided into four major route groups: (1) Afton Substation to Hidalgo Substation (New Build Section); (2) Hidalgo Substation to Apache Substation (New Build Section); (3) Apache Substation to Pantano Substation (Upgrade Section); and (4) Pantano Substation to Saguaro Substation (Upgrade Section).
Route Group 1: Afton to Hidalgo (New Build Section). This route group includes two sub-routes and five local alternatives. Both sub-routes are approximately 140 miles long. Local alternatives range between approximately 9 and 43 miles long. The route group crosses portions of Doña Ana, Grant, and Hidalgo counties in New Mexico. Three of the four local alternatives were identified by Southline and represent routing options developed to avoid localized environmental conflicts along the international border. The fourth local alternative provides a co-location option with the proposed SunZia Southwest Transmission Line Project.
Route Group 2: Hidalgo to Apache (New Build Section). This route group includes two sub-routes, four route variations and eight local alternatives. Both sub-routes are approximately 95 miles long. Route variations and local alternatives range between approximately 1 and 54 miles long. The alternatives in this group cross portions of Hidalgo County in New Mexico and portions of Cochise, Greenlee, and Graham counties in Arizona. The four route variations and eight local alternatives were identified by the BLM and Western and represent routing options developed to avoid localized environmental conflicts around Lordsburg and Willcox Playas.
Route Group 3: Apache to Pantano (Upgrade Section). This route group includes the upgrade of the existing Western 115-kV line between the Apache and Pantano substations; the line measures about 70 miles between these two substations. There is one local alternative identified by Southline that represents routing options designed to avoid residential development in the Benson area. Route Group 3 crosses portions of Cochise and Pima counties in Arizona.
Route Group 4: Pantano to Saguaro (Upgrade Section). This group includes the upgrade of the existing Western 115-kV line between the Pantano and Saguaro substations; the line measures about 50 miles between these two substations. There are one route variation and ten local alternatives in Route Group 4. The alternatives in this group cross portions of Pima and Pinal counties in Arizona. Nine of the ten local alternatives proposed by the BLM and Western in this route group are options for replacing the portion of the existing Western line that crosses over Tumamoc Hill in Tucson. The route variation and the tenth local alternative are routing options near the Tucson International Airport and Marana Regional Airport, and were proposed by the lead agencies to address potential conflicts with future airport expansion and economic development plans as well as removing the existing line from a dense residential development with encroachments.
The Final EIS also considers two substation alternatives (Midpoint North and Midpoint South) proposed by Southline; they are options for the location of the proposed Midpoint Substation located within Route Group 1. Both alternative locations would be in Luna County, New Mexico.
For the New Build Section, the Agency Preferred Alternative consists of a combination of the Proponent-Proposed Action, Proponent Alternative, and agency local alternative segments within Route Groups 1 and 2. The route was selected by the BLM and Western as the Agency Preferred Alternative because it would maximize use of existing and linear ROWs by paralleling existing and proposed infrastructure and transmission lines; eliminate the need for plan amendments through conformance with existing land use plans; minimize impacts to military operations at and near the Willcox Playa; and minimize impacts to sensitive resources. Public and agency comments on the Draft EIS expressed concern that portions of the Agency Preferred Alternative in the New Build Section would parallel the SunZia Southwest Transmission Line project, a project not yet constructed. Additional comments expressed concern about potential avian conflicts along the southeastern side of the Willcox Playa. The Agency Preferred Alternative for the Final EIS takes all comments received on the Draft EIS into consideration and suggests appropriate mitigation to be used to avoid sensitive resources as well as residential and economic development conflicts in the area.
The Agency Preferred Alternative for the Upgrade Section consists of a combination of Proponent-Proposed Action and local alternatives at Tumamoc Hill and near the Marana Airport within Route Groups 3 and 4. The route was selected because it would maximize the use of the existing ROW and facilities currently used for Western's Saguaro-Tucson and Tucson-Apache 115-kV transmission lines; minimize impacts to sensitive resources at Tumamoc Hill; and minimize impacts
The BLM requires mitigation measures and conservation actions to achieve land use plan goals and objectives. The sequence of mitigation action would be the mitigation hierarchy (avoid, minimize, rectify, reduce or eliminate over time, or compensate) identified by the CEQ (40 CFR 1508.20), BLM's Draft Regional Mitigation Manual, section 1794, and as described in the Final EIS. Certain alternatives, if selected, may require compensatory mitigation for those implementation-level activities that result in impacts the agencies cannot adequately avoid, minimize, rectify, reduce, or eliminate over time (
The BLM, Western, Southline, and cooperating agencies worked together to develop routes that would conform to existing Federal land use plans. No plan amendments are required for the Upgrade portion of the proposed Project in Arizona or the Agency Preferred Alternative for the New Build Section in New Mexico, as described in the Final EIS.
The BLM and Western have utilized the NEPA comment period to assist the agencies in satisfying the public involvement requirements under Section 106 of the National Historic Preservation Act (16 U.S.C. 470(f)), as provided for in 36 CFR 800.2(d)(3). The agencies have also consulted with Indian tribes on a government-to-government basis in accordance with Executive Order 13175 and other policies. Ongoing Native American tribal consultations will continue to be conducted in accordance with law and policy, and tribal concerns, including impacts on Indian trust assets, will be given due consideration. The BLM has also completed, with Western input, formal consultation under Section 7 of the Endangered Species Act with the U.S. Fish and Wildlife Service.
Based on the environmental analysis in this Final EIS, the BLM will decide whether to authorize the Proponent Preferred Action, Agency Preferred Alternative, alternatives, or any combination thereof on Public Lands. The Administrator will decide whether Western would use its borrowing authority to partially finance and/or hold partial ownership in the resulting transmission facilities and capacity. Western will consider the environmental analysis as the Project Development and Finance Phases are completed, as outlined in the Transmission Infrastructure Program
Comments on the Draft EIS received from the public and internal agency review were considered, and document revisions were incorporated as appropriate into the Final EIS. Public comments resulted in the addition of clarifying text, but did not result in substantial changes to the proposed Project or the impact analysis between the Draft and Final EIS.
40 CFR 1506.6, 40 CFR 1506.10, 43 CFR 1610.2.
Bureau of Land Management, Interior.
Notice of public meeting.
In accordance with the Federal Land Policy and Management Act and the Federal Advisory Committee Act, the Bureau of Land Management's (BLM), Las Cruces District Resource Advisory Council (RAC) will meet as indicated below.
The RAC will meet on December 8, 2015, at the BLM Las Cruces District Office, 1800 Marquess Street, Las Cruces, New Mexico from 8:30 a.m.-12 p.m. The public may send written comments to the RAC at the BLM Las Cruces District Office, 1800 Marquess Street, Las Cruces, NM 88005.
Deborah Stevens, BLM Las Cruces District, 1800 Marquess Street, Las Cruces, NM 88005, 575-525-4421. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8229 to contact the above individual during normal business hours. The FIRS is available 24 hours a day, 7 days a week, to leave a message or question with the above individual. You will receive a reply during normal business hours.
The 10-member Las Cruces District RAC advises the Secretary of the Interior, through the BLM, on a variety of planning and management issues associated with public land management in New Mexico. Planned agenda items include a welcome by the Chair, and presentations and discussions related to the New Mexico Copper Project Draft Environmental Impact Statement; the Prehistoric Trackways National Monument Record of Decision and planning process; lands with wilderness characteristics; Restore New Mexico; and grazing permit renewals. A half-hour public comment period, during which the public may address the RAC, will begin at 11:30 a.m. All RAC meetings are open to the public. Depending on the number of individuals wishing to comment and time available, the time for individual oral comments may be limited.
National Park Service, Interior.
Notice; request for comments.
We (National Park Service, NPS) will ask the Office of Management and Budget (OMB) to approve the information collection (IC) described below. As required by the Paperwork Reduction Act of 1995 and as part of our continuing efforts to reduce paperwork and respondent burden, we invite the general public and other Federal agencies to take this opportunity to comment on this IC. This IC is scheduled to expire on November 30, 2016. We may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number.
To ensure that we are able to consider your comments on this IC, we must receive them by January 11, 2016.
Send your comments on the IC to Madonna L. Baucum, Information Collection Clearance Officer, National Park Service, 12201 Sunrise Valley Drive, Room 2C114, Mail Stop 242, Reston, VA 20192 (mail); or
To request additional information about this IC, contact Brian P. Borda, Chief, Commercial Services Program, National Park Service, 1201 I Street NW., Washington, DC 20005 (mail), (202) 513-7156 (phone), or
Private businesses under contract to the National Park Service manage food, lodging, tours, whitewater rafting, boating, and many other recreational activities and amenities in more than 100 national parks. These services gross more than $1 billion every year and provide jobs for more than 25,000 people during peak season.
The regulations at 36 CFR part 51 primarily implement title IV of the National Parks Omnibus Management Act of 1998 (Pub. L. 105-391), which provides legislative authority, policies, and requirements for the solicitation, award, and administration of NPS concession contracts. Following are the information collection requirements associated with soliciting, awarding, and administering NPS concessions. We collect the following information in narrative and form format:
The public solicitation process begins with the issuance of a prospectus to invite the general public to submit proposals for the contract. The prospectus describes the terms and conditions of the concession contract to be awarded, the procedures to be followed in the selection of the best proposal, and the information that must be provided. Information that we collect includes, but is not limited to:
• Description of how respondent will conduct operations to minimize disturbance to wildlife; protect park resources; and provide visitors with a high quality, safe, and enjoyable visitor experience.
• Organizational structure and history and experience with similar operations.
• Details on violations or infractions and how they were handled.
• Financial information and demonstration that the respondent has a credible, proven track record of meeting obligations.
Amendments to proposals may be submitted in accordance with 36 CFR 51.15 and 51.32.
Regulations at 36 CFR 51.47 state that any person may appeal a determination that a concessioner is not a preferred offeror for the purposes of a right of preference in renewal. The appeal must specify the grounds for the appeal.
In accordance with 36 CFR 51.54, a request for approval to construct a capital improvement must include appropriate plans and specifications for the capital improvement. The request must also include an estimate of the total construction cost of the capital improvement.
In accordance with 36 CFR 51.55, a concessioner obtaining a leasehold surrender interest must submit a construction report to the NPS. The construction report must be supported by actual invoices of the capital improvement's construction cost together with, if requested by the NPS, a written certification from a certified public accountant (CPA).
36 CFR part 51, subpart J, provides that a concessioner must obtain NPS approval to assign, sell, convey, grant, contract for, or otherwise transfer: Any concession contract; any rights to operate under or manage the performance of a concession contract as a subconcessioner or otherwise; any controlling interest in a concessioner or concession contract; or any leasehold surrender interest or possessory interest obtained under a concession contract. The amount and type of information to be submitted varies with the type and complexity of the proposed transaction. Information includes, but is not limited to:
• Instruments proposed to implement the transaction.
• Opinion of counsel that the proposed transaction is lawful under all applicable Federal and State laws.
• Narrative description of the proposed transaction.
• Statement as to the existence and nature of any litigation relating to the proposed transaction.
• Description of the management qualifications, financial background, and financing and operational plans of any proposed transferee.
• Description of all financial aspects of the proposed transaction.
• Prospective financial statements (proformas).
• Schedule that allocates in detail the purchase price (or, in the case of a transaction other than an asset purchase, the valuation) of all assets assigned or encumbered. In addition, the applicant must provide a description of the basis for all allocations and ownership of all assets.
We currently use NPS Forms 10-356 and 10-356A to collect annual financial reports. These forms are an accumulation of various financial statements commonly used by industry for reporting in conformance with generally accepted accounting principles. The information provides a comprehensive view of the concessioner's financial situation at the end of the fiscal year and the concessioner's activity over the preceding year. We are proposing revisions to the currently approved NPS Form 10-356 and NPS Form 10-356A. You can view the currently approved forms at
• Modifying Schedules D-PI and D-LSI and adding Schedule D-1. These changes are necessary to accommodate accounting rule changes in the Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 853. Some concession contracts have provisions for possessory interest and leasehold surrender interest, and ASC Topic 853 changes the accounting treatment of these assets.
• Deleting Schedules N and O due to the small number of concessioners that must complete them. These schedules will be included in a proposed new form, NPS Form 10-356B (see below).
• Deleting Schedule L so that all notes and supplemental text will be captured on Schedule F.
• Replacing high-season and low-season collection fields on Schedule M with annual collection fields.
• Adding “other” data fields on many schedules.
• Revising indirect operating expenses collection fields on Schedule B to match the indirect operating expenses collection fields on NPS Form 10-356 Schedule I.
• Replacing high-season and low-season collection fields on Schedule M with annual collection fields.
• Adding “other” data fields on many schedules.
We are proposing a new NPS Form 10-356B, which will include:
• Supplemental Schedules N and O (currently on NPS Form 10-356)
• Supplemental Schedule R. This new schedule is necessary to accurately track utility add-ons for the small number of concessioners that have an approved rate add-on in their contract. Concessioners choose how to account for the approved rate add-on in their annual financial report on NPS Forms 10-356 or 10-356A according to best industry accounting practices. However, the currently approved forms do not include any schedules or collection areas that show the amount of revenue collected in excess of approved rates or the cost of utilities provided by the National Park Service to the concessioner. This information is necessary to ensure that visitors are only charged the approved rate add-on amount and to ensure that we have a comprehensive view of the concessioner's financial situation as it relates to the regulations at 36 CFR part 51.
In accordance with 36 CFR 51.98, a concessioner (and any subconcessioner) must keep and make available to NPS, records for the term of the concession contract and for 5 years after the termination or expiration of the concession contract.
We invite comments concerning this information collection on:
• Whether or not the collection of information is necessary, including whether or not the information will have practical utility;
• The accuracy of our estimate of the burden for this collection of information;
• Ways to enhance the quality, utility, and clarity of the information to be collected; and
• Ways to minimize the burden of the collection of information on respondents.
Comments that you submit in response to this notice are a matter of public record. We will include or summarize each comment in our request to OMB to approve this IC. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment, including your personal identifying information, may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.
Notice is hereby given that, on October 9, 2015, pursuant to Section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301
No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and Pistoia Alliance, Inc. intends to file additional written notifications disclosing all changes in membership.
On May 28, 2009, Pistoia Alliance, Inc. filed its original notification pursuant to Section 6(a) of the Act. The Department of Justice published a notice in the
The last notification was filed with the Department on July 15, 2015. A notice was published in the
Notice is hereby given that, on October 16, 2015, pursuant to Section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301
No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and RIC-Americas intends to file additional written notifications disclosing all changes in membership.
On April 30, 2014, RIC-Americas filed its original notification pursuant to Section 6(a) of the Act. The Department of Justice published a notice in the
The last notification was filed with the Department on May 22, 2015. A notice was published in the
Notice is hereby given that, on October 13, 2015, pursuant to Section 6(a) of the National Cooperative Research and Production Act of 1993, 15 U.S.C. 4301
Also, K12, Herndon, VA; Kaywon University, Gyeonnggi-do REPUBLIC OF KOREA; and Carson Dellosa Publishing, Greensboro, NC, have withdrawn as parties to this venture.
No other changes have been made in either the membership or planned activity of the group research project. Membership in this group research project remains open, and IMS Global intends to file additional written notifications disclosing all changes in membership.
On April 7, 2000, IMS Global filed its original notification pursuant to Section 6(a) of the Act. The Department of Justice published a notice in the
The last notification was filed with the Department on July 20, 2015. A notice was published in the
The Foreign Claims Settlement Commission, pursuant to its regulations (45 CFR part 503.25) and the Government in the Sunshine Act (5 U.S.C. 552b), hereby gives notice in regard to the scheduling of open meetings as follows:
Thursday, November 19, 2015: 10 a.m.—Oral hearings on Objection to Commission's Proposed Decisions in Claim Nos. LIB-III-025 and LIB-III-019.
All meetings are held at the Foreign Claims Settlement Commission, 600 E Street NW., Washington, DC. Requests for information, or advance notices of intention to observe an open meeting, may be directed to: Patricia M. Hall, Foreign Claims Settlement Commission, 600 E Street NW., Suite 6002, Washington, DC 20579. Telephone: (202) 616-6975.
Department of Justice.
Notice of Federal Advisory Committee Meeting. Request for Public Comment.
The National Commission on Forensic Science will hold meeting [insert number] at the time and location listed below.
(1) Public Hearing.—The meeting will be held on December 7, 2015 from 12:00 p.m. to 5:00 p.m. and December 8, 2015 from 9:00 a.m. to 5:00 p.m.
(2) Written Public Comment.—Written public comment regarding National Commission on Forensic Science meeting materials can be submitted through
Andrew J. Bruck, Senior Counsel to the Deputy Attorney General and Designated Federal Official, 950 Pennsylvania Avenue NW., Washington, DC 20530, by email at
Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
60-day notice.
The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.
Comments are encouraged and will be accepted for 60 days until January 11, 2016.
If you have additional comments especially on the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions or additional information, please contact Andrew Ashton, NFA Branch Specialist, 244 Needy Road, Martinsburg, WV 25402, at 304-616-4501
Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points:
• Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
• Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;
• Evaluate whether and if so how the quality, utility, and clarity of the information to be collected can be enhanced; and
• Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology,
Overview of this information collection 1140-0016:
1.
2.
3.
Form number (if applicable): ATF F 10 (5320.10).
Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
4.
Primary: State Local or Tribal Governments.
Other (if applicable): None.
Abstract: Primary: State Local or Tribal Governments. Other: None. The form is required to be submitted by State and local government entities wishing to register an abandoned or seized and previously unregistered National Firearms Act weapon. The form is required whenever application for such a registration is made.
5.
6.
If additional information is required contact: Jerri Murray, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE., Room 3E-405B, Washington, DC 20530.
On September 30, 2015, the Department of Justice lodged two proposed Consent Decrees with two United States District Courts, the Middle District of Florida and the Eastern District of Louisiana, in lawsuits both entitled
The two consent decrees require Mosaic to spend approximately $170 million on projects to ensure the proper treatment, storage, and disposal of its hazardous waste and reduce the environmental impact of its manufacturing and waste management programs. Mosaic also will establish a $630 million trust fund—which will be invested to grow until it reaches full funding of $1.8 billion—the cost to cover phosphogypsum stack closure, including the treatment of hazardous process wastewater, at four of its operating facilities, and long-term care of all of its Florida and Louisiana facilities. The Mosaic Company, Mosaic Fertilizer's parent company, will provide financial guarantees for this work, and the settlement also requires Mosaic Fertilizer to submit a $50 million letter of credit. Mosaic also will pay a $5 million civil penalty to the United States and $1.55 million to Louisiana and $1.45 million to Florida, who are state co-plaintiffs in these cases. In addition, Mosaic will spend $2.2 million on two local environmental projects: A $1.2 million environmental project in Florida to mitigate and prevent certain potential environmental impacts associated with an orphaned industrial property located in Mulberry, Florida; and a $1 million project in Louisiana to fund studies regarding statewide water quality issues and the development of watershed nutrient management plans to be utilized by beef cattle, dairy and poultry producers.
The prior notice of lodging of the Consent Decrees, published on October 7, 2015, stated that the Department of Justice would receive comments concerning the settlement until November 7, 2015. Having received a request for an extension of the initial comment period and given the public interest in this settlement, the United States is extending the comment period for an additional thirty (30) Days, until December 7, 2015.
The Department of Justice will receive, for a period of sixty (60) days from October 7, 2015, any comments relating to the proposed Consent Decrees. Comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, and should refer to United States v. Mosaic Fertilizer, LLC, Civil Action No. 15-cv-02286 in the Middle District of Florida and Civil Action No. 15-cv-04889 in the Eastern District of Louisiana, with D.J. Ref. No. 90-7-1-08388. All comments must be submitted no later than December 7, 2015. Comments may be submitted by email or by mail:
To submit comments: Send them to:
By email:
By mail: Assistant Attorney General, U.S. DOJ—ENRD, P.O. Box 7611, Washington, DC 20044-7611.
During the public comment period, the Consent Decrees may be examined and downloaded at this Justice Department Web site:
We will provide a paper copy of the Consent Decrees upon written request and payment of reproduction costs (25 cents per page). Please mail your request and payment to: Consent Decree Library, U.S. DOJ-ENRD, P.O. Box 7611, Washington, DC 20044-7611. If you would like a copy of the Consent Decree lodged with the Middle District of Florida, please enclose a check or money order, payable to the United States Treasury, for $162.50 (or $20.50 for a paper copy without the exhibits). If you would like a copy of the Consent Decree lodged with the Eastern District of Louisiana, the cost is $124.50 (or $21.25 for a paper copy without the exhibits). If you would like a copy of both Consent Decrees, the cost is $287.00 (or $41.75 for paper copies without the exhibits).
On November 3, 2015, the Department of Justice lodged a proposed Consent Decree with the United States District Court for the District of Arizona in the lawsuit entitled
The United States filed this civil enforcement action under the federal Clean Air Act. The United States' complaint seeks injunctive relief and civil penalties for violations of the regulations that govern emissions from the defendant's copper smelting facility in Hayden, Arizona. The proposed consent decree resolves the claims alleged in the complaint and requires the defendant to perform injunctive relief that will significantly reduce emissions of particulate matter, sulfur dioxide, and several hazardous air pollutants including lead and arsenic at its facility, and to pay a civil penalty of $4.5 million. Additionally, the proposed consent decree requires the defendant to spend at least $8 million on environmental mitigation projects that will benefit communities adversely affected by pollution from its facility. The defendant will also perform a Supplemental Environmental Project (“SEP”) under the proposed consent
The publication of this notice opens a period for public comment on the proposed consent decree. Comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, and should refer to
During the public comment period, the proposed consent decree may be examined and downloaded at this Justice Department Web site:
Please enclose a check or money order for $32.75 (25 cents per page reproduction cost) payable to the United States Treasury.
National Science Foundation.
Notice.
The National Science Foundation (NSF) is announcing plans to renew this collection. In accordance with the requirement of section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, we are providing opportunity for public comment on this action. After obtaining and considering public comment, NSF will prepare the submission requesting Office of Management and Budget (OMB) clearance of this collection for no longer than 3 years.
Written comments should be received by January 11, 2016 to be assured of consideration. Comments received after that date will be considered to the extent practicable.
Written comments regarding the information collection and requests for copies of the proposed information collection request should be addressed to Suzanne Plimpton, Reports Clearance Officer, National Science Foundation, 4201 Wilson Blvd., Rm. 295, Arlington, VA 22030, or by email to
Suzanne Plimpton at (703) 292-7556 or send email to
The Directorate for Education and Human Resources (EHR), a unit within NSF, promotes rigor and vitality within the Nation's STEM education enterprise to further the development of the 21st century's STEM workforce and public scientific literacy. EHR does this through diverse projects and programs that support research, extension, outreach, and hands-on activities that service STEM learning and research at all institutional (
The scope of this information collection request will primarily cover descriptive information gathered from education and training (E&T) projects that are funded by NSF. NSF will primarily use the data from this collection for program planning, management, and audit purposes to respond to queries from the Congress, the public, NSF's external merit reviewers who serve as advisors, including Committees of Visitors (COVs), the NSF's Office of the Inspector General, and as a basis for either internal or third-party evaluations of individual programs.
The collections will generally include three categories of descriptive data: (1) Staff and project participants (data that are also necessary to determine individual-level treatment and control groups for future third-party study or for internal evaluation); (2) project implementation characteristics (also necessary for future use to identify well-matched comparison groups); and (3) project outputs (necessary to measure baseline for pre- and post- NSF-funding-level impacts).
Since this collection will primarily be used for accountability and evaluation purposes, including responding to queries from COVs and other scientific experts, a census rather than sampling design typically is necessary. At the individual project level funding can be adjusted based on individual project's responses to some of the surveys. Some data collected under this collection will serve as baseline data for separate research and evaluation studies.
NSF-funded contract or grantee researchers and internal or external evaluators in part may identify control, comparison, or treatment groups for NSF's E&T portfolio using some of the descriptive data gathered through this collection to conduct well-designed, rigorous research and portfolio evaluation studies.
The total estimate for this collection is 58,449 annual burden hours. The average annual reporting burden is between 1.7 and 114 hours per “respondent,” depending on whether a respondent is a direct participant who is self-reporting or representing a project and reporting on behalf of many project participants.
Nuclear Regulatory Commission.
Draft interim staff guidance; request for comment.
The U.S. Nuclear Regulatory Commission (NRC) is soliciting public comment on its draft Japan Lessons-Learned Division Interim Staff Guidance (JLD-ISG), JLD-ISG-2012-01, Draft Revision 1, “Compliance with Order EA-12-049, Order Modifying Licenses with Regard to Requirements for Mitigation Strategies for Beyond-Design-Basis External Events.” This draft JLD-ISG revision provides guidance and clarification to assist nuclear power reactors applicants and licensees with the identification of measures needed to comply with requirements to mitigate challenges to key safety functions.
Submit comments by December 10, 2015. Comments received after this date will be considered if it is practical to do so, but the Commission is able to ensure consideration only for comments received before this date.
You may submit comments by any of the following methods (unless this document describes a different method for submitting comments on a specific subject):
•
•
For additional direction on obtaining information and submitting comments, see “Obtaining Information and Submitting Comments” in the
Eric Bowman, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-2963; email:
Please refer to Docket ID NRC-2012-0068 when contacting the NRC about the availability of information for this action. You may obtain publicly-available information related to this action by any of the following methods:
• Federal Rulemaking Web site: Go to
• NRC's Agencywide Documents Access and Management System (ADAMS): You may obtain publicly-available documents online in the ADAMS Public Documents collection at
• The documents identified in the following table are available to interested persons through one or more of the following methods, as indicated.
• The NRC may post materials related to this document, including public comments, on the Federal rulemaking Web site at
• NRC's PDR: You may examine and purchase copies of public documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852.
Please include Docket ID NRC-2012-0068 in your comment submission.
The NRC cautions you not to include identifying or contact information that you do not want to be publicly disclosed in your comment submission. The NRC posts all comment submissions at
If you are requesting or aggregating comments from other persons for submission to the NRC, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that the NRC does not routinely edit comment submissions to remove such information before making the comment submissions available to the public or entering the comment submissions into ADAMS.
The NRC staff issued JLD-ISG-2012-01 Revision 0 on August 29, 2012. The NRC staff developed JLD-ISG-2012-01 Draft Revision 1 to provide further guidance and clarification to assist nuclear power reactor applicants and licensees with the identification of measures needed to comply with requirements to mitigate challenges to key safety functions. These requirements are contained in Order EA-12-049. In addition, these requirements are included in the following license conditions: Virgil C. Summer Nuclear Station, Unit 2 License (V.C. Summer), License No. NPF-93, Condition 2.D.(13), V.C. Summer Nuclear Station, Unit 3 License, License No. NPF-94, Condition 2.D.(13), and Enrico Fermi Nuclear Plant, Unit 3 License, License No. NPF-95, Condition 2.D.(12)(g). The draft ISG is not a substitute for the requirements in Order EA-12-049, and compliance with the ISG is not required. This ISG revision is being issued in draft form for public comment to involve the public in development of the implementation guidance.
Following the events at the Fukushima Dai-ichi nuclear power plant on March 11, 2011, the NRC established a senior-level agency task force referred to as the Near-Term Task Force (NTTF). The NTTF was tasked with conducting a systematic and methodical review of the NRC regulations and processes, and determining if the agency should make additional improvements to these programs in light of the events at Fukushima Dai-ichi. As a result of this review, the NTTF developed a comprehensive set of recommendations, documented in SECY-11-0093, dated July 12, 2011. These recommendations were enhanced by the NRC staff following interactions with stakeholders. Documentation of the staff's efforts is contained in SECY-11-0124, dated September 9, 2011, and SECY-11-0137, dated October 3, 2011.
As directed by the Commission's SRM for SECY-11-0093, the NRC staff reviewed the NTTF recommendations within the context of the NRC's existing regulatory framework and considered the various regulatory vehicles available to the NRC to implement the recommendations. SECY-11-0124 and SECY-11-0137 established the staff's prioritization of the recommendations.
After receiving the Commission's direction in SRM-SECY-11-0124 and SRM-SECY-11-0137, the NRC staff conducted public meetings to discuss enhanced mitigation strategies intended to maintain or restore core cooling, containment, and spent fuel pool (SFP) cooling capabilities following beyond-design-basis external events. At these meetings, the industry described its proposal for a Diverse and Flexible Mitigation Capability (FLEX), as documented in NEI's letter, dated December 16, 2011. FLEX is proposed as a strategy to fulfill the key safety functions of core cooling, containment integrity, and spent fuel cooling. Stakeholder input influenced the staff to pursue a more performance-based approach to improve the safety of operating power reactors than was originally envisioned in NTTF Recommendation 4.2, SECY-11-0124, and SECY-11-0137.
On February 17, 2012, the NRC staff provided SECY-12-0025 to the Commission, including the proposed order to implement the enhanced mitigation strategies. As directed by SRM-SECY-12-0025, the NRC staff issued Order EA-12-049 and, in parallel, issued as a Request for Information under 10 CFR 50.54(f) for a reevaluation of licensees' flooding and seismic hazards.
Guidance and strategies required by the order would be available if the loss of power, motive force and normal access to the ultimate heat sink to prevent fuel damage in the reactor, and SFP affected all units at a site simultaneously. The order requires a three-phase approach for mitigating beyond-design-basis external events. The initial phase requires the use of installed equipment and resources to maintain or restore core cooling, containment, and SFP cooling. The transition phase requires providing sufficient, portable, onsite equipment and consumables to maintain or restore these functions until they can be accomplished with resources brought from off site. The final phase requires obtaining sufficient offsite resources to sustain those functions indefinitely.
On May 4, 2012, NEI submitted document 12-06, Revision B, and on May 13, 2012, Revision B1, to provide specifications for an industry-developed methodology for the development, implementation, and maintenance of guidance and strategies in response to the mitigating strategies order. The strategies and guidance described in NEI 12-06 expand on the strategies the industry developed and implemented to address the limited set of beyond-design-basis external events that involve the loss of a large area of the plant due to explosions and fire required pursuant to paragraph (hh)(2) of 10 CFR 50.54(f), “Conditions of licenses.”
On May 31, 2012, the NRC staff issued a draft version of JLD-ISG-2012-01, Revision 0, and published a notice of its availability for public comment in the
On July 3, 2012, NEI submitted Revision C to NEI 12-06, incorporating many of the exceptions and clarifications included in the draft version of this ISG. On August 3, 2012, NEI submitted Draft Revision 0 to NEI 12-06, incorporating many of the remaining exceptions and clarifications. On August 21, 2012, NEI submitted Revision 0 to NEI 12-06, making various editorial corrections. The NRC reviewed the August 21, 2012, submittal of Revision 0 of NEI 12-06 and endorsed it as a process the NRC considers acceptable for meeting the regulatory requirements with noted clarifications in revision 0 of JLD-ISG-2012-01.
By February 2013, licensees of operating power reactors submitted their overall integrated plans (OIPs) under the Mitigating Strategies order describing the guidance and strategies to be developed and implemented. Because this development and implementation was to be accomplished in parallel with the reevaluation of the seismic and flooding hazards under the 10 CFR 50.54(f) letter issued subsequent to SECY-12-0025, these included in their key assumptions a statement that typically read, “[f]lood and seismic re-evaluations pursuant to the 10 CFR 50.54(f) letter of March 12, 2012, are not completed and therefore not assumed in this submittal. As the reevaluations are completed, appropriate issues will be entered into the corrective action system and addressed on a schedule commensurate with other licensing
In order to clarify the relationship between the Mitigating Strategies order and the hazard reevaluation, the NRC staff provided COMSECY-14-0037 to the Commission on November 21, 2014, requesting that the Commission affirm that “[l]icensees for operating nuclear power plants need to address the reevaluated flooding hazards within their mitigating strategies for beyond-design-basis external events (Order EA-12-049 and related [Mitigation of Beyond-Design-Basis Events] MBDBE rulemaking).” COMSECY-14-0037 further requested affirmation that “[l]icensees for operating nuclear power plants may need to address some specific flooding scenarios that could significantly damage the power plant site by developing targeted or scenario-specific mitigating strategies, possibly including unconventional measures, to prevent fuel damage in reactor cores or spent fuel pools.” In SRM-COMSECY-14-0037, the Commission affirmed these two items and noted that “it is within the staff's authority, and is the staff's responsibility, to determine, on a plant-specific basis, whether targeted or scenario-specific mitigating strategies, possibly including unconventional measures, are acceptable.”
On August 25, 2015, NEI submitted Revision 1 to NEI 12-06, incorporating lessons learned in the implementation of Order EA-12-049 and alternative approaches taken by licensees for compliance to that order. Following a public webinar discussion of potential exceptions and clarifications that took place on September 21, 2015, NEI submitted Revision 1A to NEI 12-06 on October 5, 2015.
The NRC is seeking advice and recommendations from the public on the revision to this interim staff guidance document. We are particularly interested in comments and supporting rationale from the public on the following:
Spent Fuel Pool (SFP) Spray strategy: Order EA-12-049 was issued in parallel with the March 12, 2012, request for information under 10 CFR 50.54(f) for reevaluation of seismic and flooding hazards. The order and the guidance developed to support the development and implementation of the mitigating strategies were intended to address the uncertainties associated with beyond-design-basis external events. Since March 12, 2012, the NRC has completed NUREG-2161, “Consequence Study of a Beyond-Design-Basis Earthquake Affecting the Spent Fuel Pool for a U.S. Mark I Boiling Water Reactor,” which predicted an SFP liner failure likelihood of about two times in a million years and a possibility of release of radioactive materials only if that liner failure occurs during 8 percent of the operating cycle of the reference plant considered in the study. The results of the study showed that the risk of individual latent cancer fatality within 10 miles of the reference plant due to the effects of a beyond-design-basis earthquake on the SFP is several orders of magnitude below the quantitative health objectives established in the Commission's safety goal policy, “Safety Goals for the Operations of Nuclear Power Plants,” 51 FR 28044, August 4, 1986, as corrected and republished at 51 FR 30028, August 21, 1986. These results did not quantitatively credit the existing SFP spray strategy under 10 CFR 50.54(hh)(2), which would be necessary for conformance with the guidance contained in this revision to JLD-ISG-2012-01 through its endorsement of NEI 12-06, Revision 1A, at Tables C-3 and D-3 for boiling-water reactors and pressurized-water reactors, respectively. The NRC seeks comment on whether continuing to require the SFP spray strategy under Order EA-12-049 is warranted in light of the analyses performed for NUREG-2161, or whether the need for this strategy should be limited or removed.
By this action, the NRC is requesting public comments on JLD-ISG-2012-01 Draft Revision 1. This draft JLD-ISG proposes guidance related to requirements contained in Order EA-12-049, Mitigation Strategies for Beyond-Design-Basis External Events. The NRC staff will make a final determination regarding issuance of the JLD-ISG after it considers any public comments received in response to this request.
For The Nuclear Regulatory Commission.
Nuclear Regulatory Commission.
Draft environmental assessment and finding of no significant impact; request for comment.
The U.S. Nuclear Regulatory Commission (NRC) is issuing for public comment a draft environmental assessment (EA) and finding of no significant impact (FONSI) related to a request to amend Facility Operating License Nos. NPF-10 and NPF-15 and Docket No. 72-41, issued to the Southern California Edison Company (SCE or “the licensee”), for operation of the San Onofre Nuclear Generating Station, Units 2 and 3 (hereinafter “SONGS” or “the facility”), including the general-license Independent Spent Fuel Storage Installation (ISFSI), located in San Diego County, California. The requested amendment would permit licensee security personnel to use certain firearms and ammunition feeding devices not previously permitted, notwithstanding State, local and certain Federal firearms laws or regulations that otherwise prohibit such actions.
Submit comments by December 10, 2015. Comments received after this date will be considered if it is practical to do so, but the Commission is able to ensure consideration only for comments received before this date. Any potential party as defined in § 2.4 of title 10 of the
You may submit comments by any of the following methods (unless this document describes a different method for submitting comments on a specific subject):
• Federal Rulemaking Web site: Go to
• Mail comments to: Cindy Bladey, Office of Administration, Mail Stop:
For additional direction on obtaining information and submitting comments, see “Obtaining Information and Submitting Comments” in the
Marlayna Vaaler, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-3178,
Please refer to Docket ID NRC-2015-0023 when contacting the NRC about the availability of information for this action. You may obtain publicly-available information related to this action by any of the following methods:
• Federal Rulemaking Web site: Go to
• NRC's Agencywide Documents Access and Management System (ADAMS): You may obtain publicly-available documents online in the ADAMS Public Documents collection at
• NRC's PDR: You may examine and purchase copies of public documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852.
Please include Docket ID NRC-2015-0023 in your comment submission.
The NRC cautions you not to include identifying or contact information that you do not want to be publicly disclosed in your comment submission. The NRC posts all comment submissions at
If you are requesting or aggregating comments from other persons for submission to the NRC, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that the NRC does not routinely edit comment submissions to remove such information before making the comment submissions available to the public or entering the comment submissions into ADAMS.
The NRC is considering a request to amend Facility Operating License Nos. NPF-10 and NPF-15 and Docket No. 72-41, issued to SCE for the operation of SONGS, Units 2 and 3, including the general-license ISFSI, located in San Diego County, California, in accordance with 10 CFR 50.90, “Application for amendment of license, construction permit, or early site permit.” Therefore, as required by 10 CFR 51.21, “Criteria for and identification of licensing and regulatory actions requiring environmental assessments,” and 10 CFR 51.33, “Draft finding of no significant impact; distribution,” the NRC has prepared a draft EA documenting its finding. The requested amendment would permit licensee security personnel to use certain firearms and ammunition feeding devices not previously permitted, notwithstanding State, local, and certain Federal firearms laws or regulations that otherwise prohibit such actions.
The proposed action would permit security personnel at SONGS during the performance of their official duties, to transfer, receive, possess, transport, import, and use certain firearms and large capacity ammunition feeding devices not previously permitted to be owned or possessed, notwithstanding State, local, and certain Federal firearms laws, or regulations that otherwise prohibit such actions.
The proposed action is in accordance with the SONGS application dated August 28, 2013 (ADAMS Accession No. ML13242A277), as supplemented by letters dated December 31, 2013 (ADAMS Accession No. ML14007A496), May 15, 2014 (ADAMS Accession No. ML14139A424), and February 10, 2015 (ADAMS Accession No. ML15044A047).
The proposed action would allow the transfer, receipt, possession, transportation, importation, and use of those firearms and devices needed in the performance of official duties required for the protection of SONGS and associated special nuclear materials, consistent with the SONGS NRC-approved security plan.
The NRC has completed its evaluation of the proposed action and concludes that the proposed action would only allow the use of those firearms and devices necessary to protect SONGS and associated special nuclear materials, consistent with the SONGS NRC-approved security plan. Therefore, the proposed action would not significantly increase the probability or consequences of any accidents. In addition, the proposed action would not change the types or the amounts of any effluents that may be released offsite. There would also be no significant increase in occupational or public radiation exposure. Therefore, there would be no significant radiological environmental impacts associated with the proposed action.
The proposed action would not impact land, air, or water resources, including biota. In addition, the proposed action would not result in any socioeconomic or environmental justice impacts or impacts to historic and cultural resources. Therefore, there would also be no significant non-radiological environmental impacts associated with the proposed action.
Accordingly, the NRC concludes that the issuance of the requested amendment would not result in significant environmental impacts.
The NRC will publish in the
As an alternative to the proposed action, the NRC staff considered denying the proposed action (
The proposed action would not involve the use of any resources.
The staff did not consult with any Federal agency or California state agencies regarding the environmental impact of the proposed action.
The licensee has requested a license amendment to permit licensee security personnel, in the performance of their official duties, to transfer, receive, possess, transport, import, and use certain firearms and large capacity ammunition feeding devices not previously permitted to be owned or possessed, notwithstanding State, local, and certain Federal firearms laws or regulations that would otherwise prohibit such actions.
On the basis of the information presented in this environmental assessment, the NRC concludes that the proposed action would not cause any significant environmental impact and would not have a significant effect on the quality of the human environment. In addition, the NRC has determined that an environmental impact statement is not necessary for the evaluation of this proposed action.
Other than the licensee's letter dated August 28, 2013, there are no other environmental documents associated with this review. This document is available for public inspection as indicated above.
For the Nuclear Regulatory Commission.
The ACRS Subcommittee on Regulatory Policies and Practices will hold a meeting on November 18, 2015, Room T-2B1, 11545 Rockville Pike, Rockville, Maryland.
The meeting will be open to public attendance.
The agenda for the subject meeting shall be as follows:
The Subcommittee will review the Draft Final Regulatory Guide 1.127, “Design and Inspection Criteria for Water-Control Structures Associated with Nuclear Power Plants”. The Subcommittee will hear presentations by and hold discussions with the NRC staff and other interested persons regarding this matter. The Subcommittee will gather information, analyze relevant issues and facts, and formulate proposed positions and actions, as appropriate, for deliberation by the Full Committee.
Members of the public desiring to provide oral statements and/or written comments should notify the Designated Federal Official (DFO), Girija Shukla (Telephone 301-415-6855 or Email:
Detailed meeting agendas and meeting transcripts are available on the NRC Web site at
If attending this meeting, please enter through the One White Flint North building, 11555 Rockville Pike, Rockville, MD. After registering with security, please contact Mr. Theron Brown (Telephone 240-888-9835) to be escorted to the meeting room.
Nuclear Regulatory Commission.
Biweekly notice.
Pursuant to Section 189a. (2) of the Atomic Energy Act of 1954, as amended (the Act), the U.S. Nuclear Regulatory Commission (NRC) is publishing this regular biweekly notice. The Act requires the Commission to publish notice of any amendments issued, or proposed to be issued, and grants the Commission the authority to issue and make immediately effective any amendment to an operating license or combined license, as applicable, upon a determination by the Commission that such amendment involves no significant hazards consideration, notwithstanding the pendency before the Commission of a request for a hearing from any person.
This biweekly notice includes all notices of amendments issued, or proposed to be issued from October 10, 2015, to October 26, 2015. The last biweekly notice was published on October 27, 2015.
Comments must be filed December 10, 2015. A request for a hearing must be filed by January 11, 2016.
You may submit comments by any of the following methods (unless this document describes a different method for submitting comments on a specific subject):
•
•
For additional direction on obtaining information and submitting comments, see “Obtaining Information and Submitting Comments” in the
Lynn Ronewicz, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington DC 20555-0001; telephone: 301-415-2549, email:
Please refer to Docket ID NRC-2015-0253 when contacting the NRC about the availability of information for this action. You may obtain publicly-available information related to this action by any of the following methods:
•
•
•
Please include Docket ID NRC-2015-0253, facility name, unit number(s), application date, and subject in your comment submission.
The NRC cautions you not to include identifying or contact information that you do not want to be publicly disclosed in your comment submission. The NRC posts all comment submissions at
If you are requesting or aggregating comments from other persons for submission to the NRC, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that the NRC does not routinely edit comment submissions to remove such information before making the comment submissions available to the public or entering the comment submissions into ADAMS.
The Commission has made a proposed determination that the following amendment requests involve no significant hazards consideration. Under the Commission's regulations in § 50.92 of title 10 of the
The Commission is seeking public comments on this proposed determination. Any comments received within 30 days after the date of publication of this notice will be considered in making any final determination.
Normally, the Commission will not issue the amendment until the expiration of 60 days after the date of publication of this notice. The Commission may issue the license amendment before expiration of the 60-day period provided that its final determination is that the amendment involves no significant hazards consideration. In addition, the Commission may issue the amendment prior to the expiration of the 30-day comment period should circumstances change during the 30-day comment period such that failure to act in a timely way would result, for example in derating or shutdown of the facility. Should the Commission take action prior to the expiration of either the comment period or the notice period, it will publish in the
Within 60 days after the date of publication of this notice, any person(s) whose interest may be affected by this action may file a request for a hearing and a petition to intervene with respect to issuance of the amendment to the subject facility operating license or combined license. Requests for a hearing and a petition for leave to intervene shall be filed in accordance with the Commission's “Agency Rules of Practice and Procedure” in 10 CFR part 2. Interested person(s) should consult a current copy of 10 CFR 2.309, which is available at the NRC's PDR, located at One White Flint North, Room O1-F21, 11555 Rockville Pike (first floor), Rockville, Maryland 20852. The NRC's regulations are accessible electronically from the NRC Library on the NRC's Web site at
As required by 10 CFR 2.309, a petition for leave to intervene shall set forth with particularity the interest of the petitioner in the proceeding, and how that interest may be affected by the results of the proceeding. The petition should specifically explain the reasons why intervention should be permitted with particular reference to the following general requirements: (1) The name, address, and telephone number of the requestor or petitioner; (2) the nature of the requestor's/petitioner's right under the Act to be made a party to the proceeding; (3) the nature and extent of the requestor's/petitioner's property, financial, or other interest in the proceeding; and (4) the possible effect of any decision or order which may be entered in the proceeding on the requestor's/petitioner's interest. The petition must also set forth the specific contentions which the requestor/petitioner seeks to have litigated at the proceeding.
Each contention must consist of a specific statement of the issue of law or fact to be raised or controverted. In addition, the requestor/petitioner shall provide a brief explanation of the bases for the contention and a concise statement of the alleged facts or expert opinion which support the contention and on which the requestor/petitioner intends to rely in proving the contention at the hearing. The requestor/petitioner must also provide references to those specific sources and documents of which the petitioner is aware and on which the requestor/petitioner intends to rely to establish those facts or expert opinion. The petition must include sufficient information to show that a genuine dispute exists with the applicant on a material issue of law or fact. Contentions shall be limited to matters within the scope of the amendment under consideration. The contention must be one which, if proven, would entitle the requestor/petitioner to relief. A requestor/petitioner who fails to satisfy these requirements with respect to at least one contention will not be permitted to participate as a party.
Those permitted to intervene become parties to the proceeding, subject to any limitations in the order granting leave to intervene, and have the opportunity to participate fully in the conduct of the hearing with respect to resolution of that person's admitted contentions, including the opportunity to present evidence and to submit a cross-examination plan for cross-examination of witnesses, consistent with NRC regulations, policies and procedures.
Petitions for leave to intervene must be filed no later than 60 days from the date of publication of this notice. Requests for hearing, petitions for leave to intervene, and motions for leave to file new or amended contentions that are filed after the 60-day deadline will not be entertained absent a determination by the presiding officer that the filing demonstrates good cause by satisfying the three factors in 10 CFR 2.309(c)(1)(i)-(iii).
If a hearing is requested, and the Commission has not made a final determination on the issue of no significant hazards consideration, the Commission will make a final determination on the issue of no significant hazards consideration. The final determination will serve to decide when the hearing is held. If the final determination is that the amendment request involves no significant hazards consideration, the Commission may issue the amendment and make it immediately effective, notwithstanding the request for a hearing. Any hearing held would take place after issuance of the amendment. If the final determination is that the amendment request involves a significant hazards consideration, then any hearing held would take place before the issuance of any amendment unless the Commission finds an imminent danger to the health or safety of the public, in which case it will issue an appropriate order or rule under 10 CFR part 2.
A State, local governmental body, federally-recognized Indian tribe, or agency thereof, may submit a petition to the Commission to participate as a party under 10 CFR 2.309(h)(1). The petition should state the nature and extent of the petitioner's interest in the proceeding. The petition should be submitted to the Commission by December 28, 2015. The petition must be filed in accordance with the filing instructions in the “Electronic Submissions (E-Filing)” section of this document, and should meet the requirements for petitions for leave to intervene set forth in this section, except that under § 2.309(h)(2) a State, local governmental body, or Federally-recognized Indian tribe, or agency thereof does not need to address the standing requirements in 10 CFR 2.309(d) if the facility is located within its boundaries. A State, local governmental body, Federally-recognized Indian tribe, or agency thereof may also have the opportunity to participate under 10 CFR 2.315(c).
If a hearing is granted, any person who does not wish, or is not qualified, to become a party to the proceeding may, in the discretion of the presiding officer, be permitted to make a limited appearance pursuant to the provisions of 10 CFR 2.315(a). A person making a limited appearance may make an oral or written statement of position on the issues, but may not otherwise participate in the proceeding. A limited appearance may be made at any session of the hearing or at any prehearing conference, subject to the limits and conditions as may be imposed by the presiding officer. Persons desiring to make a limited appearance are requested to inform the Secretary of the Commission by December 28, 2015.
All documents filed in NRC adjudicatory proceedings, including a request for hearing, a petition for leave to intervene, any motion or other document filed in the proceeding prior to the submission of a request for hearing or petition to intervene, and documents filed by interested governmental entities participating under 10 CFR 2.315(c), must be filed in accordance with the NRC's E-Filing rule (72 FR 49139; August 28, 2007). The E-Filing process requires participants to submit and serve all adjudicatory documents over the internet, or in some cases to mail copies on electronic storage media. Participants may not submit paper copies of their filings unless they seek an exemption in accordance with the procedures described below.
To comply with the procedural requirements of E-Filing, at least 10 days prior to the filing deadline, the participant should contact the Office of the Secretary by email at
Information about applying for a digital ID certificate is available on the NRC's public Web site at
If a participant is electronically submitting a document to the NRC in accordance with the E-Filing rule, the participant must file the document using the NRC's online, Web-based submission form. In order to serve documents through the Electronic Information Exchange System, users will be required to install a Web browser plug-in from the NRC's Web site. Further information on the Web-based submission form, including the installation of the Web browser plug-in, is available on the NRC's public Web site at
Once a participant has obtained a digital ID certificate and a docket has been created, the participant can then submit a request for hearing or petition for leave to intervene. Submissions should be in Portable Document Format (PDF) in accordance with NRC guidance available on the NRC's public Web site at
A person filing electronically using the NRC's adjudicatory E-Filing system may seek assistance by contacting the NRC Meta System Help Desk through the “Contact Us” link located on the NRC's public Web site at
Participants who believe that they have a good cause for not submitting documents electronically must file an exemption request, in accordance with 10 CFR 2.302(g), with their initial paper filing requesting authorization to continue to submit documents in paper format. Such filings must be submitted by: (1) First class mail addressed to the Office of the Secretary of the Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention: Rulemaking and Adjudications Staff; or (2) courier, express mail, or expedited delivery service to the Office of the Secretary, Sixteenth Floor, One White Flint North, 11555 Rockville Pike, Rockville, Maryland, 20852, Attention: Rulemaking and Adjudications Staff. Participants filing a document in this manner are responsible for serving the document on all other participants. Filing is considered complete by first-class mail as of the time of deposit in the mail, or by courier, express mail, or expedited delivery service upon depositing the document with the provider of the service. A presiding officer, having granted an exemption request from using E-Filing, may require a participant or party to use E-Filing if the presiding officer subsequently determines that the reason for granting the exemption from use of E-Filing no longer exists.
Documents submitted in adjudicatory proceedings will appear in the NRC's electronic hearing docket which is available to the public at
Petitions for leave to intervene must be filed no later than 60 days from the date of publication of this notice. Requests for hearing, petitions for leave to intervene, and motions for leave to file new or amended contentions that are filed after the 60-day deadline will not be entertained absent a determination by the presiding officer that the filing demonstrates good cause by satisfying the three factors in 10 CFR 2.309(c)(1)(i)-(iii).
For further details with respect to these license amendment applications, see the application for amendment which is available for public inspection in ADAMS and at the NRC's PDR. For additional direction on accessing information related to this document, see the “Obtaining Information and Submitting Comments” section of this document.
1. Does the proposed amendment involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No.
The proposed amendment revises the note to Technical Specification (TS) 3.8.1 Required Actions L.1, L.2, and L.3 to indicate the Required Actions are not required when the Condition is entered to restore a KHU to OPERABLE status. This change is consistent with Amendment Nos. 382, 384, and 383, which approved a cumulative 240 hours of allowed outage time over a 3-year period when both KHUs are inoperable when in the 45-day Completion Time of TS 3.8.1 Required Action C.2.2.5. The proposed TS change does not modify the reactor coolant system pressure boundary, nor make any physical changes to the facility design, material, or construction standards. The probability of any design basis accident (DBA) is not affected by this change, nor are the consequences of any DBA affected by this change. The proposed change does not involve changes to any structures, systems, or components (SSCs) that can alter the probability for initiating a LOCA [loss-of-coolant accident] event.
Therefore, the proposed TS changes do not significantly increase the probability or consequences of an accident previously evaluated.
2. Does the proposed amendment create the possibility of a new or different kind of accident from any accident previously evaluated?
Response: No.
The proposed TS change revises the note to TS 3.8.1 Required Actions L.1, L.2, and L.3 to indicate the Required Actions are not required when the Condition is entered to restore a KHU to OPERABLE status. Revision of the note allows the 60 hour Completion Time of TS 3.8.1 Condition H to limit the time that both KHUs are inoperable. The changes do not alter the plant configuration (no new or different type of equipment will be installed) or make changes in methods governing normal plant operation. No new failure modes are identified, nor are any SSCs required to be operated outside the design bases.
Therefore, the possibility of a new or different kind of accident from any kind of accident previously evaluated is not created.
3. Does the proposed amendment involve a significant reduction in a margin of safety?
Response: No.
The proposed TS change revises the note to TS 3.8.1 Required Actions L.1, L.2, and L.3 to indicate the Required Actions are not required when the Condition is entered to restore a KHU to OPERABLE status. Revision of the note allows the 60 hour Completion Time of TS 3.8.1 Condition H to limit the time that both KHUs are inoperable. The proposed TS change does not involve: (1) A physical alteration of the Oconee Units; (2) the installation of new or different equipment; (3) operating any installed equipment in a new or different manner; (4) a change to any set points for parameters which initiate protective or mitigation action; or (5) any impact on the fission product barriers or safety limits.
Therefore, this request does not involve a significant reduction in a margin of safety.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment request involves no significant hazards consideration.
1. Does the proposed amendment involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No.
The proposed site PDEP and PD EAL [Permanently Defueled Emergency Action Level] Bases Manual revisions are commensurate with the ongoing and anticipated reduction in radiological source term at the CR-3 site and reflects the addition of spent fuel being transferred to the ISFSI facility. These changes add the responsibility for responding to ISFSI emergencies to the CR-3 PDEP Shift Supervisor/Certified Fuel Handler, and accompanying changes to the PD EAL Bases Manual due to the creation of a potential or actual release path to the environment, degradation of one or more storage canisters or fuel assemblies due to environmental factors, and configuration changes that could cause challenges in removing the canister or fuel from storage.
There are no longer design basis accidents or postulated beyond design basis accidents that could result in doses to the public and the environment beyond the exclusion area boundary that would exceed the EPA PAGs [Protective Action Guidelines]. CR-3 was shut down on September 26, 2009, and will not be restarted. With the reactor permanently defueled, the spent fuel pool and its support systems are dedicated to spent fuel storage only. With the spent fuel in wet storage for some time, the spectrum of postulated accidents is much smaller than for an operational plant, with the majority of design basis accidents no longer possible. The only remaining credible design basis accident is the fuel handling accident, which does not result in exceeding the EPA Protective Action Guidelines at the exclusion area boundary. Spent fuel located in the spent fuel pools will be transferred to the ISFSI facility. Emergency Planning Zones beyond the exclusion area boundary and the associated protective actions are no longer required. No corporate personnel, personnel involved in off-site dose projections, or personnel with special qualifications are required to augment the ERO [Emergency Response Organization].
The credible events for the ISFSI facility remain unchanged. The indications of damage to a loaded Dry Shielded Canister CONFINEMENT BOUNDARY have been revised to be twice the design basis dose rate as described in Draft Amendment 14 to COC [Certificate of Compliance] 1004 Technical Specifications for the Standardized NUHOMS Horizontal Modular Storage System, Sections 5.2.4 `Radiation Protection Program' and 5.4.2 HSM [horizontal storage module] or HSM-H Dose Rate Evaluation Program (Reference 7), while in transit or HSM storage.
Damage to Dry Shielded Canister CONFINEMENT BOUNDARY as indicated by the following on-contact radiation readings at some prescribed distance from the transfer cask or HSM:
1300 mrem/hr (gamma + neutron) on the radial surface of the fuel transfer cask while in transit to the ISFSI HSM
This change is consistent with industry practices previously approved by the NRC to distinguish whether a degraded containment barrier condition exists.
The probability of occurrence of previously evaluated accidents is not increased, since most previously analyzed accidents can no longer occur and the probability of the remaining credible design basis accident is unaffected by the proposed amendment.
The deletion of the Communicator position does not impact Emergency Notifications from the plant since the Emergency Coordinator has shown the capability to perform this function. This function is not involved in operations or evolutions that could cause an accident since it is not performed until after the emergency is declared, and has no effect on accident mitigation.
Therefore, the proposed changes do not affect any plant system, the operation and maintenance of CR-3 and the ISFSI facility, or increase the probability or consequences of an accident previously evaluated.
2. Does the proposed change create the possibility of a new or different kind of accident from any accident previously evaluated?
Response: No.
The proposed changes have no impact on facility structures, systems, or components (SSCs) affecting the safe storage of irradiated fuel, or on the methods of operation of such SSCs, or on the handling and storage of irradiated fuel itself. Additionally, the proposed changes have no impact on a Fuel Handling Accident, which is the remaining credible design basis accident evaluated. The CR-3 PDEP is applicable for the plant's defueled condition. There is no impact on the prevention, diagnosis, or mitigation of reactor-related transients as there are no longer any reactor-related accidents. Accidents cannot result in different or more adverse failure modes or accidents than previously evaluated because the reactor is permanently shut down and defueled, and CR-3 is no longer authorized to operate the reactor.
There are no longer credible events that would result in doses to the public beyond the exclusion area boundary that would exceed the EPA [Environmental Protection
The credible events for the ISFSI facility remain unchanged. The indications of damage to a loaded Dry Shielded Canister CONFINEMENT BOUNDARY have been revised to be twice the design basis dose rate as described in Draft Amendment 14 to COC 1004 Technical Specifications for the Standardized NUHOMS Horizontal Modular Storage System, Sections 5.2.4 `Radiation Protection Program' and 5.4.2 HSM or HSM-H Dose Rate Evaluation Program (Reference 7), while in transit or HSM storage.
Damage to Dry Shielded Canister CONFINEMENT BOUNDARY as indicated by the following on-contact radiation readings at some prescribed distance from the transfer cask or HSM:
1300 mrem/hr (gamma + neutron) on the radial surface of the fuel transfer cask while in transit to the ISFSI horizontal storage module (HSM)
This change is consistent with industry practices previously approved by the NRC to distinguish whether a degraded containment barrier condition exists. The proposed amendment does not introduce a new mode of plant operation or new accident pre-cursors, does not involve any physical alterations to plant configurations, or make changes to plant system set points that initiate a new or different kind of accident.
The deletion of the Communicator position does not impact Emergency Notifications from the plant since the Emergency Coordinator has shown the capability to perform this function. This function is not involved in operations or evolutions that could cause or create new or different kinds of accidents since the communication of Emergency Notifications is not performed until after the emergency is declared and cannot affect an accident or event already in progress.
Therefore, the proposed changes have no direct effect on any plant system, the operation and maintenance of CR-3 or the ISFSI facility, or create the possibility of a new or different kind of accident.
3. Does the proposed amendment involve a significant reduction in a margin of safety?
Response: No.
The proposed changes have no direct effect on any plant system, do not involve any physical plant limit or parameter, License Condition, Technical Specification Limiting Condition of Operability or operating philosophy, and therefore cannot affect any margin of safety. The margin of safety is maintained by conforming to the CR-3 Technical Specifications or the ISFSI Technical Specifications. The proposed CR-3 PDEP and PD EAL Bases Manual revisions are commensurate with the on-going and anticipated reduction in radiological source term at the CR-3 site and reflect spent fuel being transferred to the ISFSI facility. These changes add the responsibility for implementing the emergency plan for the ISFSI facility to the Shift Supervisor/Certified Fuel Handler.
The only remaining credible accident for CR-3, while the SFP is operable and prior to the transference of all spent fuel to dry shielded canisters, is a fuel handling accident. The proposed amendment does not adversely affect the inputs or assumptions of any design basis analysis that impact the fuel handling accident. There are no longer credible events that would result in doses to the public beyond the exclusion area boundary that would exceed the EPA PAGs. Emergency Planning Zones beyond the exclusion area boundary and the associated protective actions are no longer required. No corporate personnel, personnel involved in offsite dose projections, or personnel with special qualifications are required to augment the ERO. The credible events for the ISFSI facility remain unchanged. The indications of damage to a loaded Dry Shielded Canister CONFINEMENT BOUNDARY have been revised to be twice the design basis dose rate as described in Draft Amendment 14 to COC 1004 Technical Specifications for the Standardized NUHOMS Horizontal Modular Storage System, Sections 5.2.4 `Radiation Protection Program' and 5.4.2 HSM or HSM-H Dose Rate Evaluation Program (Reference 7), while in transit or HSM storage.
Damage to Dry Shielded Canister CONFINEMENT BOUNDARY as indicated by the following on-contact radiation readings at some prescribed distance from the transfer cask or HSM:
1300 mrem/hr (gamma + neutron) on the radial surface of the fuel transfer cask while in transit to the ISFSI HSM
This change is consistent with industry practices previously approved by the NRC to distinguish whether a degraded containment barrier condition exists. The proposed changes are limited to the CR-3 PDEP and PD EAL Bases Manual and do not impact the safe storage of irradiated fuel. The proposed revisions do not affect any requirements for SSCs credited in the remaining analyses of applicable postulated accidents, and as such, do not affect the margin of safety associated with these accident analyses.
The deletion of the Communicator position does not impact Emergency Notifications from the plant since the Emergency Coordinator has shown the capability to perform this function. This function is not involved in design basis analyses or operations that could cause any decrease in any previously analyzed safety margin.
Therefore, the proposed changes do not create the possibility of reduction in any safety margin.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment request involves no significant hazards consideration.
1. Does the proposed amendment involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No.
The proposed change removes a figure, replaces that figure with a text description of the site location and corrects a typographical error. An administrative change such as this is not an initiator of any accident previously evaluated. As a result, the probability of an accident previously evaluated is not affected. The consequences of an accident with the incorporation of this administrative change are not different than the consequences of the same accident without this change. As a result, the consequences of an accident previously evaluated are not affected by this change.
Based on the above, it is concluded that the proposed change does not involve a significant increase in the probability or consequences of an accident previously evaluated.
2. Does the proposed amendment create the possibility of a new or different kind of accident from any accident previously evaluated?
Response: No.
The proposed change does not modify the plant design, nor does the proposed change alter the operation of the plant or equipment involved in either routine plant operation or
Based on the above, it is concluded that the proposed change does not create the possibility of a new or different kind of accident from any accident previously evaluated.
3. Does the proposed amendment involve a significant reduction in a margin of safety?
Response: No.
The proposed change consists of an administrative change to remove a figure, replace that figure with a text description of the site location, and correct a typographical error. The change does not alter the manner in which safety limits, limiting safety system settings, or limiting conditions for operation are determined. The safety analysis acceptance criteria are not affected by this change. The proposed change will not result in plant operation in a configuration outside of the design basis.
Therefore, the proposed change does not involve a significant reduction in a margin of safety.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment request involves no significant hazards consideration.
1. Does the proposed change involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No.
The proposed changes are editorial in nature and have no effect on accident scenarios previously evaluated. The proposed changes consist of editorial corrections to TS Section 1.4, “Frequency,” that would make the Duane Arnold Energy Center (DAEC) TS consistent with the Standard Technical Specifications for General Electric BWR/4 Plants (NUREG-1433). The proposed changes do not affect initiating events for accidents previously evaluated and do not affect or modify plant systems or procedures used to mitigate the progression or outcome of those accident scenarios.
Therefore, the proposed changes do not involve a significant increase in the probability or consequences of an accident previously evaluated.
2. Does the proposed change create the possibility of a new or different kind of accident from any accident previously evaluated?
Response: No.
The proposed changes are editorial in nature consisting of editorial corrections to TS Section 1.4, “Frequency.” The proposed changes do not involve a physical alteration of the plant (
The proposed changes do not introduce any new accident precursors, nor do they impose any new or different requirements or eliminate any existing requirements. The proposed changes do not alter assumptions made in the safety analysis.
Therefore, the proposed change does not create the possibility of a new or different kind of accident from any accident previously evaluated.
3. Does the proposed change involve a significant reduction in a margin of safety?
Response: No.
Margin of safety is related to confidence in the ability of the fission product barriers (fuel cladding, reactor coolant system, and primary containment) to perform their design functions during and following postulated accidents. The proposed changes are editorial in nature consisting of editorial corrections to TS Section 1.4, “Frequency.” No setpoints at which protective actions are initiated are altered by the proposed changes. The proposed changes do not alter the manner in which the safety limits are determined. These changes are consistent with plant design and do not change the TS operability requirements; thus, previously evaluated accidents are not affected by this proposed change.
Therefore, the proposed changes do not involve a significant reduction in a margin of safety.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment request involves no significant hazards consideration.
1. Does the proposed change involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No.
The proposed change to the reactor steam dome pressure from 785 psig to 685 psig in TS [Technical Specification] SLs [Safety Limits] 2.1.1.1 and 2.1.1.2 does not alter the use of the analytical methods used to determine the safety limits that have been previously reviewed and approved by the NRC. The proposed change is in accordance with an NRC approved critical power correlation methodology and as such maintains required safety margins. The proposed change does not adversely affect accident initiators or precursors nor does it alter the design assumptions, conditions, or configuration of the facility or the manner in which the plant is operated and maintained.
The proposed change does not alter or prevent the ability of structures, systems, and components (SSCs) from performing their intended function to mitigate the consequences of an initiating event within the assumed acceptance limits. The proposed change does not require any physical change to any plant SSCs nor does it require any change in systems or plant operations. The proposed change is consistent with the safety analysis assumptions and resultant consequences.
Therefore, the proposed change does not involve a significant increase in the probability or consequences of an accident previously evaluated.
2. Does the proposed change create the possibility of a new or different kind of accident from any accident previously evaluated?
Response: No.
The proposed change does not involve a physical alteration of the plant (
The proposed change does not introduce any new accident precursors, nor does it impose any new or different requirements or eliminate any existing requirements. The proposed change does not alter assumptions made in the safety analysis.
Therefore, the proposed change does not create the possibility of a new or different kind of accident from any accident previously evaluated.
3. Does the proposed change involve a significant reduction in a margin of safety?
Response: No.
Margin of safety is related to confidence in the ability of the fission product barriers (fuel cladding, reactor coolant system, and primary containment) to perform their design functions during and following postulated accidents. Evaluation of the 10 CFR part 21 condition by General Electric determined that there was no decrease in the safety margin, the Minimum Critical Power Ratio improves during the transient, and therefore is not a threat to fuel cladding integrity.
The proposed change to Reactor Core Safety Limits 2.1.1.1 and 2.1.1.2 is consistent with, and within the capabilities of the applicable NRC approved critical power correlation, and thus continues to ensure that valid critical power calculations are performed. No setpoints at which protective actions are initiated are altered by the proposed change. The proposed change does not alter the manner in which the safety limits are determined. This change is consistent with plant design and does not change the TS operability requirements; thus, previously evaluated accidents are not affected by this proposed change.
Therefore, the proposed change does not involve a significant reduction in a margin of safety.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment request involves no significant hazards consideration.
1. Does the proposed change involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No.
The proposed increase in staff augmentation times has no effect on normal plant operation or on any accident initiator or precursors and does not impact the function of plant structures, systems, or components (SCCs). The proposed change does not alter or prevent the ability of the ERO to perform their intended functions to mitigate the consequences of an accident or event. The ability of the ERO to respond adequately to radiological emergencies has been demonstrated as acceptable through a staffing analysis as required by 10 CFR 50 Appendix E.IV.A.9.
Therefore, the proposed Emergency Plan changes do not involve a significant increase in the probability or consequences of an accident previously evaluated.
2. Does the proposed change create the possibility of a new or different kind of accident from any accident previously evaluated?
Response: No.
The proposed change does not impact the accident analysis. The change does not involve a physical alteration of the plant (
Therefore, the proposed change does not create the possibility of a new or different kind of accident from any accident previously evaluated.
3. Does the proposed change involve a significant reduction in a margin of safety?
Response: No.
Margin of safety is associated with confidence in the ability of the fission product barriers (
Therefore, the proposed change does not involve a significant reduction in a margin of safety.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment request involves no significant hazards consideration.
In order to resolve the non-conservative TS value, the proposed change would revise the RCS flow requirements in DCPP TS 3.4.1 to be consistent with TS 3.4.1 in NUREG-1431, Revision 4, Volume 1, “Standard Technical Specifications—Westinghouse Plants,” April 2012 (ADAMS Accession No. ML12100A222). The proposed change to the RCS flow requirements in TS 3.4.1 would also be consistent with the NRC-approved Technical Specification Task Force (TSTF) Traveler-339-A, Revision 2, “Relocate TS Parameters to [Core Operating Limits Report] COLR,” and NRC-approved WCAP-14483-A, “Generic Methodology for Expanded Core Operating Limits Report,” dated June 13, 2000 (ADAMS Accession No. ML003723269).
The proposed change would delete the current DCPP, Units 1 and 2 TS 3.4.1 RCS flow Tables 3.4.1-1 and 3.4.1-2, and would add the DCPP, Units 1 and 2 RCS thermal design flow values of 350,800 gpm and 354,000 gpm, respectively, to the requirements of TS 3.4.1. In addition, the proposed change would add the RCS MMF values of 359,200 gpm and 362,500 gpm, to the DCPP, Units 1 and 2 COLR, respectively. Consistent with the Standard Technical Specifications (STS), the proposed change would also include a reference to the RCS COLR flow requirements in the TS 3.4.1 Limiting Condition for Operation and Surveillance Requirements. Due to the elimination of RCS flow Tables 3.4.1-1 and 3.4.1-2, a reference to these tables is also deleted from Figure 2.1.1-1, “Reactor Core Safety Limit.”
As such, the proposed change would resolve the non-conservative TS value for Unit 1 and serve to make the DCPP, Units 1 and 2 TS more consistent with the STS in NUREG-1431.
1. Does the proposed change involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No.
The proposed change revises the DCPP Unit 1 and Unit 2 RCS flow requirements in TS 3.4.1, “RCS Pressure, Temperature, and Flow Departure from Nucleate Boiling (DNB) Limits,” to be more consistent with TS 3.4.1 in NUREG-1431 and with the applicable DCPP safety analyses. The proposed RCS flow values will ensure the assumptions of the safety analyses continue to be met.
As such, the proposed change does not affect the design or function of any plant structures, systems, and components (SSCs). Thus, the proposed change does not affect plant operation, design features, or any analysis that verifies the capability of an SSC to perform a design function. As the proposed change is consistent with the RCS flow assumptions of the safety analyses, the proposed change does not affect any previously evaluated accidents in the UFSAR. In addition, the proposed change does not affect any SSCs, operating procedures, and administrative controls which have the function of preventing or mitigating any accident previously evaluated in the UFSAR.
The proposed change will not alter any accident analyses assumptions discussed in the UFSAR and will continue to assure the DCPP units operate within the assumptions of the applicable safety analyses described in the UFSAR.
Therefore, the proposed change does not involve a significant increase in the probability or consequences of an accident previously evaluated.
2. Does the proposed change create the possibility of a new or different accident from any accident previously evaluated?
Response: No.
The proposed change revises the DCPP Unit 1 and Unit 2 RCS flow requirements in TS 3.4.1, “RCS Pressure, Temperature, and Flow Departure from Nucleate Boiling (DNB) Limits,” to be more consistent with TS 3.4.1 in NUREG-1431 and with the applicable DCPP safety analyses. The proposed RCS flow values will ensure the assumptions of the safety analyses continue to be met.
The proposed change does not change any system functions or maintenance activities. The change does not involve physical alteration of the plant, that is, no new or different type of equipment will be installed. The proposed change involves no physical plant modification or changes in plant operation, therefore no new failure modes are created. As such, the proposed change does not create new failure modes or mechanisms that are not identifiable during testing, and no new accident precursors are generated.
Therefore, the proposed change does not create the possibility of a new or different accident from any accident previously evaluated.
3. Does the proposed change involve a significant reduction in a margin of safety?
Response: No.
The margin of safety is established through equipment design, operating parameters, and the setpoints at which automatic actions are initiated. The proposed change does not physically alter safety-related systems, nor does it affect the way in which safety-related systems perform their functions. The setpoints at which protective actions are initiated are not altered by the proposed change. Therefore, sufficient equipment remains available to actuate upon demand for the purpose of mitigating an analyzed event. The proposed RCS flow value changes are consistent with the plant safety analyses. Therefore, the proposed change does not involve a significant reduction in a margin of safety.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment requests involve no significant hazards consideration.
1. Do the proposed changes involve a significant increase in the probability or consequences of an accident previously evaluated?
The only accident previously evaluated, is the Spent Fuel Pool Boiling Event. The initiating event (loss of cooling) would no longer lead to a rapid increase in pool temperature to the boiling point or to a relatively short-term reduction in pool level due to evaporative losses. Currently a loss of
The most likely cause of a loss of function of the Spent Fuel Pool Cooling System (SFPCS) is not a failure of components in the cooling system, but instead a loss of electrical power. The probability of a loss of power is substantially higher than the probability of a contemporaneous common cause failure of active components in the cooling system. For example, NRC has collected operating experience on loss of Spent Fuel Pool (SFP) cooling for nuclear plants in the U.S., which includes both safety-related and non-safety-related cooling systems. As indicated in NUREG-1275, Volume 12, the causes of loss of SFP cooling were the loss of the SFP cooling pumps due to loss of electrical power (39 of 56 events), loss of suction from the spent fuel pool, flow blockage, loss of the heat sink, and one case of inadequate configuration control. As concluded by the NRC: “The dominant cause of the actual loss of SFP cooling events was loss of electrical power to the SFP cooling pumps.” There were no cases involving a common cause failure mode, such as seismic events or tornados. Given this operating experience, any increase in the probability of a spent fuel pool boiling event due to the seismic re-classification of the system would be minimal in comparison to the failure rate due to loss of electrical power.
The change in commitment does not affect the consequences of the spent fuel pool boiling accident (which by definition assumes loss of the spent fuel pool cooling system). Revised dose calculations were completed to support the changes to the Updated Final Safety Analysis Report (UFSAR) Chapter 15 Accident Analysis, and the UFSAR was revised to reflect the new analysis. These were recently reviewed to verify they remain bounding for the much slower event, even if it is not terminated (through restored cooling or adequate make-up) prior to reaching levels approaching the top of the stored fuel. This re-evaluation confirmed the doses previously calculated remain bounding and several orders of magnitude below applicable limits.
Therefore, the proposed changes do not involve a significant increase in the probability or consequences of an accident previously evaluated.
2. Do the proposed changes create the possibility of a new or different kind of accident from any accident previously evaluated?
The only accident relevant to this proposed change would be an unmitigated Spent Fuel Pool Boiling Event (
The Make-up System will ensure that sufficient water is supplied to the SFPs in the event of loss of cooling. In addition to the Seismic Category I make-up source, currently there are numerous other diverse sources of make-up for the SFPs, including:
• As provided in SONGS Units 2 and 3 procedures, the Nuclear Service Water connections located on the SFP operating level can be used via hoses to fill the pool. These connections are QC III, Seismic Category II.
• As provided in SONGS Units 2 and 3 Mitigation Strategies, water from Fire Water Tanks T-102 and T-103 via Fire Pumps P-220 (diesel driven), P-221 or P-222 (both of which are motor driven) can be provided through the installed fire system piping to two fire hose cabinets located on the Spent Fuel Pool Operating level. The tanks, pumps and piping are QC III-EPS and Seismic Category II.
• As provided in SONGS Units 2 and 3 Mitigation Strategies, make-up to the SFPs can be provided using water from one or more of the following sources: Demineralized Water Tanks T-266, T-267 or T-268, all are located at a higher elevation at the Make-up Demineralizer Area at the south end of the plant. Skid mounted pump P-i1058 delivers water from these sources to the seismic standpipe and from the standpipe to the SFP. T-266, T-267 and T-268 are QC III, Seismic Category II. P-1058 is QC III-EPS and Seismic Category III.
• As discussed in SONGS Units 2 and 3 Mitigation Strategies, the 10″ City Water Line Supply Line can be used as an alternate source of SFP make-up water.
• Another make-up path is available using the Seismic Category I Demineralized Water Storage Tank (T-351) located in the North Industrial Area along with Seismic Category I portable diesel driven Fire Pump (P-i1065) using strategically staged hoses between the tank, pump, Seismic Category I standpipe and the Spent Fuel Pool. The hoses are pressure tested annually and are inspected for location quarterly per SONGS Units 2 and 3 procedures.
The Mitigation Strategies are sequenced to assure the strategies can be deployed in 2 hours or less. The capability to achieve this time requirement was evaluated in a formal study and further demonstrated in the field using actual staff, procedures and equipment.
Given the number and diversity of make-up sources, and the time available to supply make-up to the SFPs in the loss of spent fuel pool cooling, it is not credible to postulate a complete loss of make-up to a SFP. As discussed in NRC's June 30, 2014, letter concerning San Onofre Nuclear Generating Station, Units 2 and 3—Rescission of Order EA-12-049:
[T]he time to boil off water inventory in the SFP to a level of 10 feet above the spent fuel will be sufficiently long to obviate the need for additional strategies to restore SFP cooling. The NRC staff concludes that given the low decay heat levels and the long time to boil off, the reliance on the SFP inventory for passive cooling provides an equivalent level of protection as that which would be provided by the initial phase of the guidance and strategies for maintaining or restoring SFP cooling capabilities that would be necessary for compliance with Order EA-12-049 using installed equipment. The staff further concludes that the long time to boil off the SFP inventory to a point at which make-up would be necessary for radiation shielding purposes obviates the need for the transition phase of the guidance and strategies that would be necessary for compliance with Order EA-12-049 using on-site portable equipment. The staff also concludes that the low decay heat and long boil-off period provides sufficient time for the licensee to obtain off-site resources on an ad hoc basis to sustain the SFP cooling function indefinitely, obviating the need for the final phase of the guidance and strategies that would be necessary for compliance with Order EA-12-049.
Similarly, as described in NRC's 2015 exemption from certain emergency planning requirements for SONGS Units 2 and 3:
Additionally, in its letters to the NRC dated October 6, 2014, and December 15, 2014, SCE described the SFP make-up strategies that could be used in the event of a catastrophic loss of SFP inventory. The multiple strategies for providing make-up water to the SFP include: Using existing plant systems for inventory make-up; an internal strategy that relies on installed fire water pumps and service water or fire water storage tanks; or an external strategy that uses portable pumps to initiate make-up flow into the SFPs through a seismic standpipe and standard fire hoses routed to the SFPs or to a spray nozzle. These strategies will continue to be required as a license condition. Considering the very low probability of beyond-design-basis accidents affecting the SFP, these diverse strategies provide defense-in-depth and time to provide additional make-up or spray water to the SFP before the onset of any postulated off-site radiological release.
It is not necessary to postulate both a loss of spent fuel pool cooling in conjunction with a loss of spent fuel pool make-up, and such an event is not postulated in UFSAR Section 15.7.3.8 related to SFP boiling and is not credible given the number of diverse sources of make-up and the time available to supply make-up.
As currently discussed in UFSAR 9.1.2.3, spent fuel pool boiling also will not adversely affect the integrity of the SFPs. The reinforced concrete temperature differences and gradients were determined based on an inside face temperature of 230 °F (water temperature of 212 °F and gamma heating of 18 °F). That analysis indicates that the SFP walls have sufficient structural capability to accommodate this thermal loading.
Therefore, the proposed changes do not create the possibility of a new or different kind of accident from any previously evaluated.
3. Do the proposed changes involve a significant reduction in a margin of safety?
The proposed changes do not alter any design basis or safety limits for the plant. The applicable limits are spent fuel clad temperature and spent fuel pool level. The spent fuel cladding temperature is assured by maintaining water level to support natural circulation cooling within the spent fuel racks. Forced cooling keeps evaporative losses and Fuel Handling Building environs within nominal limits. Thus, the SSCs that support the design and safety limits are limited to those that maintain inventory (Spent Fuel Pool and related structural components (pool liner, structure, and racks) and sufficient equipment to replace evaporative or other losses. Complete loss of make-up is not credible given the existence of numerous sources of make-up and the time available to provide make-up. No changes to the pool and its structures are proposed and make-up capability remains assured.
Therefore, the proposed changes do not involve a significant reduction in a margin of safety.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment request involves no significant hazards consideration.
1. Does the proposed amendment involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No.
The proposed amendment contains no technical changes; all proposed changes are administrative. These changes are consistent with the intent of what has already been approved by the Nuclear Regulatory Commission (NRC).
There are no accidents affected by this change, and therefore no increase in the probability or consequences of an accident previously evaluated.
2. Does the proposed amendment create the possibility of a new or different kind of accident from any accident previously evaluated?
Response: No.
The proposed amendment contains no technical changes; all proposed changes are administrative. These changes are consistent with the intent of what has already been approved by the Nuclear Regulatory Commission (NRC).
There are no accidents affected by this change, and therefore no possibility of a new or different kind of accident from any accident previously evaluated.
3. Does the proposed amendment involve a significant reduction in a margin of safety?
Response: No.
The proposed amendment contains no technical changes; all proposed changes are administrative. These changes are consistent with the intent of what has already been approved by the Nuclear Regulatory Commission (NRC).
There are no accidents affected by this change, and therefore no reduction in a margin of safety.
The NRC staff has reviewed the licensee's analysis and, based on this review, it appears that the three standards of 10 CFR 50.92(c) are satisfied. Therefore, the NRC staff proposes to determine that the amendment request involves no significant hazards consideration.
During the period since publication of the last biweekly notice, the Commission has issued the following amendments. The Commission has determined for each of these amendments that the application complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations. The Commission has made appropriate findings as required by the Act and the Commission's rules and regulations in 10 CFR Chapter I, which are set forth in the license amendment.
A notice of consideration of issuance of amendment to facility operating license or combined license, as applicable, proposed no significant hazards consideration determination, and opportunity for a hearing in connection with these actions, was published in the
Unless otherwise indicated, the Commission has determined that these amendments satisfy the criteria for categorical exclusion in accordance with 10 CFR 51.22. Therefore, pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared for these amendments. If the Commission has prepared an environmental assessment under the special circumstances provision in 10 CFR 51.22(b) and has made a determination based on that assessment, it is so indicated.
For further details with respect to the action see (1) the applications for amendment, (2) the amendment, and (3) the Commission's related letter, Safety Evaluation, and/or Environmental Assessment as indicated. All of these items can be accessed as described in the “Obtaining Information and Submitting Comments” section of this document.
The Commission's related evaluation of the amendments is contained in a Safety Evaluation dated October 7, 2015.
The Commission's related evaluation of the amendment is contained in a Safety Evaluation dated October 22, 2015.
The Commission's related evaluation of the amendments is contained in a Safety Evaluation dated October 14, 2015.
No significant hazards consideration comments received: No.
The Commission's related evaluation of the amendment is contained in a Safety Evaluation dated October 9, 2015.
The Commission's related evaluation of the amendment is contained in a Safety Evaluation dated October 20, 2015.
The Commission's related evaluation of the amendment is contained in a Safety Evaluation dated September 23, 2015.
The Commission's related evaluation of the amendment is contained in a Safety Evaluation dated October 15, 2015.
The Commission's related evaluation of the amendment is contained in an SE dated October 20, 2015.
No significant hazards consideration determination comments received: No.
For the Nuclear Regulatory Commission.
Nuclear Regulatory Commission.
Notice of submission to the Office of Management and Budget; request for comment.
The U.S. Nuclear Regulatory Commission (NRC) has recently submitted a request for renewal of an existing collection of information to the Office of Management and Budget (OMB) for review. The information collection is entitled, NRC Form 171, “Duplication Request.”
Submit comments by December 10, 2015.
Submit comments directly to the OMB reviewer at: Vlad Dorjets, Desk Officer, Office of Information and Regulatory Affairs (OMB-3150-0066) NEOB-10202, Office of Management and Budget, Washington, DC 20503; telephone: 202-395-7315, email:
Tremaine Donnell, NRC Clearance Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-6258; email:
Please refer to Docket ID NRC-2015-0031 when contacting the NRC about the availability of information for this action. You may obtain publicly-available information related to this action by any of the following methods:
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•
The NRC cautions you not to include identifying or contact information in comment submissions that you do not want to be publicly disclosed in your comment submission. All comment submissions are posted at
If you are requesting or aggregating comments from other persons for submission to the OMB, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that comment submissions are not routinely edited to remove such information before making the comment submissions available to the public or entering the comment into ADAMS.
Under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the NRC recently submitted a request for renewal of an existing collection of information to OMB for review entitled, NRC Form 171, “Duplication Request.” The NRC hereby informs potential respondents that an agency may not conduct or sponsor, and that a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.
The NRC published a
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For the Nuclear Regulatory Commission.
Nuclear Regulatory Commission.
Notice of submission to the Office of Management and Budget; request for comment.
The U.S. Nuclear Regulatory Commission (NRC) has recently submitted a renewal of an existing collection of information to the Office of Management and Budget (OMB) for review. The information collection is entitled, “Rules of General Applicability to Domestic Licensing of Byproduct Material.”
Submit comments by December 10, 2015.
Submit comments directly to the OMB reviewer at: Vlad Dorjets, Desk Officer, Office of Information and Regulatory Affairs (3150-0017), NEOB-10202, Office of Management and Budget, Washington, DC 20503; telephone: 202-395-7315, email:
Tremaine Donnell, NRC Clearance Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-6258; email:
Please refer to Docket ID NRC-2015-0130 when contacting the NRC about the availability of information for this action. You may obtain publicly-available information related to this action by any of the following methods:
• Federal rulemaking Web site: Go to
• NRC's Agencywide Documents Access and Management System (ADAMS): You may obtain publicly-available documents online in the ADAMS Public Documents collection at
• NRC's PDR: You may examine and purchase copies of public documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852.
• NRC's Clearance Officer: A copy of the collection of information and related instructions may be obtained without charge by contacting the NRC's Clearance Officer, Tremaine Donnell, Office of Information Services, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-6258; email:
The NRC cautions you not to include identifying or contact information in comment submissions that you do not want to be publicly disclosed in your comment submission. All comment submissions are posted at
If you are requesting or aggregating comments from other persons for submission to the OMB, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that comment submissions are not routinely edited to remove such information before making the comment submissions available to the public or entering the comment into ADAMS.
Under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the NRC recently submitted a request for renewal of an existing collection of information to OMB for review entitled, “Rules of General Applicability to Domestic Licensing of Byproduct Material.” The NRC hereby informs potential respondents that an agency may not conduct or sponsor, and that a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.
The NRC published a
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For the Nuclear Regulatory Commission.
Nuclear Regulatory Commission.
Notice of availability; request for comments.
The U.S. Nuclear Regulatory Commission (NRC) is making available for comment a set of emergency preparedness frequently asked questions (EPFAQs). These EPFAQs are intended to provide clarification of endorsed Nuclear Energy Institute's guidance related to emergency preparedness (EP) at licensed power reactor sites. The NRC is publishing these draft EPFAQs to inform the public and solicit comments.
Submit comments by December 10, 2015. Comments received after this date will be considered if it is practical to do so, but assurance of consideration cannot be given except for comments received on or before this date.
You may submit comment by any of the following methods (unless this document describes a different method for submitting comments on a specific subject):
• Federal Rulemaking Web site: Go to
• Mail comments to: Cindy Bladey, Office of Administration, Mail Stop: O12-H08, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.
For additional direction on accessing information and submitting comments, see “Obtaining Information and Submitting Comments” in the
Don A. Johnson, Office of Nuclear Security and Incident Response, U.S. Nuclear
Please refer to Docket ID NRC-2015-0254 when contacting the NRC about the availability of information regarding this document. You may obtain publicly-available information related to this action by the following methods:
• Federal Rulemaking Web site: Go to
• NRC's Agencywide Documents Access and Management System (ADAMS): You may obtain publicly-available documents online in the ADAMS Public Documents collection at
• NRC's PDR: You may examine and purchase copies of public documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852.
Please include Docket ID NRC-2015-0254 in the subject line of your comment submission, in order to ensure that the NRC is able to make your comment submission available to the public in this docket.
The NRC cautions you not to include identifying or contact information that you do not want to be publicly disclosed in your comment submission. The NRC posts all comment submissions at
If you are requesting or aggregating comments from other persons for submission to the NRC, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that the NRC does not routinely edit comment submissions to remove such information before making the comment submissions available to the public or entering the comment submissions into ADAMS.
The NRC is requesting comments on these draft EPFAQs. The NRC has developed this program for the staff to provide clarification of endorsed guidance related to EP. This process is intended to describe the manner in which the NRC may provide interested parties an opportunity to share their individual views with the NRC staff regarding the appropriate response to questions raised on the interpretation or applicability of EP regulatory guidance issued by the NRC, before the NRC issues an official response to such questions.
For the Nuclear Regulatory Commission.
2 p.m., Wednesday, December 2, 2015.
Offices of the Corporation, Twelfth Floor Board Room, 1100 New York Avenue NW., Washington, DC
Hearing OPEN to the Public at 2 p.m.
Public Hearing in conjunction with each meeting of OPIC's Board of Directors, to afford an opportunity for any person to present views regarding the activities of the Corporation.
Individuals wishing to address the hearing orally must provide advance notice to OPIC's Corporate Secretary no later than 5 p.m. Wednesday, November 25, 2015. The notice must include the individual's name, title, organization, address, and telephone number, and a concise summary of the subject matter to be presented.
Oral presentations may not exceed ten (10) minutes. The time for individual presentations may be reduced proportionately, if necessary, to afford all participants who have submitted a timely request an opportunity to be heard.
Participants wishing to submit a written statement for the record must submit a copy of such statement to OPIC's Corporate Secretary no later than 5 p.m. Wednesday, November 25, 2015. Such statement must be typewritten, double spaced, and may not exceed twenty-five (25) pages.
Upon receipt of the required notice, OPIC will prepare an agenda, which will be available at the hearing, that identifies speakers, the subject on which each participant will speak, and the time allotted for each presentation.
A written summary of the hearing will be compiled, and such summary will be made available, upon written request to OPIC's Corporate Secretary, at the cost of reproduction.
Written summaries of the projects to be presented at the December 10, 2015 Board meeting will be posted on OPIC's Web site.
Information on the hearing may be obtained from Catherine F. I. Andrade at (202) 336-8768, via facsimile at (202) 408-0297, or via email at
U.S. Office of Personnel Management.
Notice.
The Federal Prevailing Rate Advisory Committee is issuing this notice to cancel the November 19, 2015, public meeting scheduled to be held in Room 5A06A, U.S. Office of Personnel Management Building, 1900 E Street NW., Washington, DC. The original
Madeline Gonzalez, 202-606-2838, or email
U.S. Office of Personnel Management (OPM).
Notice.
This notice identifies Schedule A, B, and C appointing authorities applicable to a single agency that were established or revoked from August 1, 2015, to August 31, 2015.
Senior Executive Resources Services, Senior Executive Services and Performance Management, Employee Services, (202) 606-2246.
In accordance with 5 CFR 213.103, Schedule A, B, and C appointing authorities available for use by all agencies are codified in the Code of Federal Regulations (CFR). Schedule A, B, and C appointing authorities applicable to a single agency are not codified in the CFR, but the Office of Personnel Management (OPM) publishes a notice of agency-specific authorities established or revoked each month in the
No Schedule A Authorities to report during August 2015.
No Schedule B Authorities to report during August 2015.
The following Schedule C appointing authorities were approved during August 2015.
The following Schedule C appointing authorities were revoked during August 2015.
5 U.S.C. 3301 and 3302; E.O. 10577, 3 CFR, 1954-1958 Comp., p. 218.
U.S. Office of Personnel Management.
U.S. Office of Personnel Management (OPM).
Notice.
This notice identifies Schedule A, B, and C appointing authorities applicable to a single agency that were established or revoked from September 1, 2015, to September 30, 2015.
Senior Executive Resources Services, Senior Executive Services and Performance Management, Employee Services, (202) 606-2246.
In accordance with 5 CFR 213.103, Schedule A, B, and C appointing authorities available for use by all agencies are codified in the Code of Federal Regulations (CFR). Schedule A, B, and C appointing authorities applicable to a single agency are not codified in the CFR, but the Office of Personnel Management (OPM) publishes a notice of agency-specific authorities established or revoked each month in the
(d) General—
(1) Not to exceed 1,000 positions to perform cyber risk and strategic analysis, incident handling and malware/vulnerability analysis, program management, distributed control systems security, cyber incident response, cyber exercise facilitation and management, cyber vulnerability detection and assessment, network and systems engineering, enterprise architecture, intelligence analysis, investigation, investigative analysis and cyber-related infrastructure interdependency analysis requiring unique qualifications currently not established by OPM. Positions will be at the General Schedule (GS) grade levels 09-15. Appointments may be made under this authority until the regulations implementing Border Patrol Agency Pay Reform Act of 2014 become effective or until June 30, 2016, whichever comes first.
No Schedule B Authorities to report during September 2015.
The following Schedule C appointing authorities were approved during September 2015.
The following Schedule C appointing authorities were revoked during September 2015.
5 U.S.C. 3301 and 3302; E.O. 10577, 3 CFR, 1954-1958 Comp., p. 218.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
The proposed rule change consists of amendments to NSCC's Rules & Procedures (“Rules”)
In its filing with the Commission, NSCC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NSCC has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
Settlement of AIP Payments is done on a prefunded basis. On each date for which settlement will occur (“Settlement Date”), an AIP participant (“AIP Member”) that is in a debit position for such day must satisfy its full debit balance before NSCC will settle any contra-side credit positions with respect to such AIP Member. NSCC simply passes AIP Payments from one AIP Member to the contra-side AIP Member without netting and without guaranteeing payment, and settlement of AIP Payments is segregated from all other money settlement at NSCC.
Participation in AIP is governed by Rule 53 of NSCC's Rules. A party seeking to be an AIP Member is required to enter into a separate AIP membership agreement with NSCC, even if it is otherwise a participant of other NSCC services.
AIP Members are divided into two categories—“AIP Manufacturers” and “AIP Distributors”. AIP Manufacturers act on behalf of, or under authority of, the sponsor, general partner, or other party responsible for the creation or manufacturing of an eligible alternative investment product (“Eligible AIP Product”). AIP Manufacturers are generally the fund entities themselves (“Funds”). AIP Distributors act on behalf of, or under authority of, a customer or other investor in an Eligible AIP Product. AIP Distributors are generally the broker/dealers whose clients invest in Eligible AIP Products.
Within AIP, a fund administrator is a party engaged under contract to provide administrative services with respect to one or more Eligible AIP Products and is eligible to be an AIP Member as an AIP Manufacturer (“AIP Fund Administrator”). In general, AIP Fund Administrators process AIP transactions with respect to their various Fund clients by creating separate sub-accounts within AIP, each of which is attributable to a specific Fund client. In this structure, the Fund client generally would not be an AIP Member.
Under the current AIP Rules, AIP Fund Administrators are responsible for all activities related to their sub-accounts. These activities include, for example, submitting, reviewing, and confirming order instructions, reviewing and confirming settlement statements, and making AIP Payments. With respect to making AIP Payments, the Rules provide that on Settlement Date all sub-account obligations roll up to the AIP Fund Administrator's primary AIP account. These obligations are then presented to the AIP Fund Administrator's settlement bank for gross debit settlement and gross credit settlement.
Because AIP Fund Administrators are responsible for settlement of AIP Payments, an AIP Fund Administrator in a debit position on Settlement Date must assure that each applicable Fund client has timely delivered payment to such AIP Fund Administrator's settlement bank. To the extent that a single Fund client fails to deliver its payment on Settlement Date (and the AIP Fund Administrator is not otherwise able to cover such Fund's shortfall), NSCC is required to reverse all of the AIP Fund Administrator's contra-side credit positions for the day, including the contra-side credit positions attributable to Funds that actually did pay.
In recent months, NSCC has learned from several fund administrators interested in becoming AIP Members that the responsibility to make AIP Payments at NSCC is a responsibility that fund administrators generally do not undertake outside of AIP. In the current processing environment outside of AIP, fund administrators perform all transaction processing functions for their Funds, but they generally do not control money settlement.
As explained by certain fund administrators to NSCC, the current AIP Payment structure as applied to AIP Fund Administrators has slowed adoption of AIP by the fund administrator community.
An AIP Fund Administrator choosing to create an AIP Settling Sub-Account would designate to NSCC the applicable Fund client with responsibility for settlement of AIP Payments with respect to such AIP Settling Sub-Account. Such designated Fund would not be an AIP Member (“AIP Non-Member Fund”). Each such AIP Non-Member Fund would enter into a standard agreement pursuant to which an NSCC-approved AIP Settling Bank would perform settlement services directly for the AIP Non-Member Fund (“Appointment of AIP Settling Bank and AIP Settling Bank Agreement”).
Under the proposal, AIP Fund Administrators would remain responsible for all activities with respect to their AIP Settling Sub-Accounts, except that AIP Fund Administrators would not be responsible for settling AIP Payments. For example, AIP Fund Administrators would remain responsible for order processing applicable to their AIP Settling Sub-Accounts, including submitting, reviewing, and confirming order instructions. In addition, AIP Fund Administrators would be responsible for informing their AIP Non-Member Funds of their respective daily AIP Payment obligations. All reporting, liability, and indemnification obligations to NSCC under NSCC's Rules would remain with the AIP Fund Administrator.
As is the case today, settlement of all AIP Payments would be done on a prefunded basis. NSCC would not net or guarantee any AIP Payments with respect to AIP Settling Sub-Accounts, and all settlement of AIP Payments (including those of AIP Non-Member Funds) would continue to be segregated from all other money settlement at NSCC.
Prior to NSCC approving any AIP Settling Sub-Account, NSCC would require the applicable AIP Fund Administrator to enter into documentation and/or agreements, or otherwise procure documentation and/or agreements, in such form as required by NSCC from time to time, which would contain:
• The AIP Fund Administrator's acknowledgement and agreement that it will be responsible for all matters, activities, liabilities, and obligations applicable to AIP Members under the Rules with respect to such AIP Settling Sub-Account, except for settlement of AIP Payments;
• the AIP Fund Administrator's agreement to indemnify NSCC for any loss, liability, or expense sustained by NSCC in connection with, arising from, or related to such AIP Settling Sub-Account, including with respect to the Foreign Account Tax Compliance Act (“FATCA”);
• the AIP Fund Administrator's agreement that it will be responsible for
• the AIP Fund Administrator's designation of the AIP Non-Member Fund with responsibility for making AIP Payments with respect to such AIP Settling Sub-Account;
• the AIP Non-Member Fund's consent and approval with respect to such designation;
• the AIP Fund Administrator's agreement of its obligation to notify NSCC of changes in condition to the AIP Non-Member Fund that would otherwise require notice to NSCC under Rule 2B (Ongoing Membership Requirements and Monitoring) or Rule 20 (Insolvency);
• the AIP Fund Administrator's agreement of its obligation to notify the applicable AIP Non-Member Fund of such AIP Non-Member Fund's daily AIP Payment balance; and
• the AIP Non-Member Fund's appointment of an AIP Settling Bank, and such AIP Settling Bank's agreement to act as AIP Settling Bank for such AIP Non-Member Fund.
In addition, the applicable AIP Fund Administrator would need to obtain from the applicable AIP Non-Member Fund tax documentation in such form as required by NSCC from time to time, and with respect to any AIP Non-Member Fund that is treated as a non-U.S. entity for U.S. federal income tax purposes, the AIP Fund Administrator would need to provide NSCC with an executed FATCA certification from such AIP Non-Member Fund in the form approved by NSCC.
On a going-forward basis with respect to FATCA, AIP Fund Administrators would need to obtain from their AIP Non-Member Funds periodic tax documentation, including FATCA certifications to the extent applicable, and provide such documentation to NSCC. Failure to provide such tax documentation, including FATCA certifications, in the manner and timeframes set forth by NSCC from time to time would result in revocation of NSCC's approval, in NSCC's sole and absolute discretion, of such AIP Settling Sub-Account.
Under the proposal, AIP Fund Administrators would be required to indemnify NSCC for any loss, liability, or expense sustained by NSCC in connection with, arising from, or related to FATCA in respect of their AIP Settling Sub-Accounts. The proposed FATCA-related provisions in this proposed rule change are substantially similar to the current provisions in the Rules governing how NSCC monitors and treats its non-U.S. members with respect to FATCA.
In connection with this proposal, NSCC would amend the following Rules:
• The following new defined terms would be created: “AIP Fund Administrator”, “AIP Non-Member Fund”, and “AIP Settling Sub-Account”, each of which would be defined or further described in Rule 53 (Alternative Investment Product Services and Members).
• The defined term “AIP Settling Bank” would be amended to: provide that AIP Settling Banks undertake to perform settlement services for AIP Members, as well as for AIP Non-Member Funds; and correct an incorrect Rule citation within the defined term.
The description of “AIP Settling Bank Only Member” as a type of NSCC Limited Member would be amended to provide that AIP Settling Bank Only Members undertake to perform settlement services with respect to AIP on behalf of AIP Members, as well as AIP Non-Member Funds.
The Rule would be amended to: permit AIP Fund Administrators to create AIP Settling Sub-Accounts and address the agreements and documents that NSCC would require prior to approving any such AIP Settling Sub-Account; describe the tax and FATCA-related requirements in connection with creating and maintaining such AIP Settling Sub-Accounts; describe the settlement process with respect to AIP Settling Sub-Accounts; state that NSCC will not notify any AIP Non-Member Fund of any debit or credit balance and identify that it is the AIP Fund Administrator's obligation to notify each such AIP Non-Member Fund of its applicable debit or credit balance; state that NSCC will not guarantee AIP Payments to any AIP Non-Member Fund; specify that NSCC will not be liable for the acts, delays, omissions, bankruptcy, or insolvency of any AIP Non-Member Fund unless the Corporation was grossly negligent, engaged in willful misconduct, or in violation of federal securities laws for which there is a private right of action; and address applicable technical changes in connection with the foregoing.
The Rule would be amended to provide that AIP Settling Banks may undertake to: perform settlement services on behalf of AIP Non-Member Funds; describe the settlement process with respect to AIP Settling Sub-Accounts; and make certain technical corrections.
The Rule would be amended to specify that NSCC will not be liable for the acts, delays, omissions, bankruptcy, or insolvency of any AIP Non-Member Fund unless the Corporation was grossly negligent, engaged in willful misconduct, or in violation of federal securities laws for which there is a private right of action; and make clear that NSCC will not be responsible for the completeness or accuracy of any AIP data received from or transmitted to an AIP Member (including an AIP Fund Administrator with respect to any AIP Settling Sub-Account thereof), nor for any errors, omissions, or delays which may occur in the transmission of such AIP data to or from an AIP Member (including an AIP Fund Administrator with respect to any AIP Settling Sub-Account thereof).
The Rule would be amended to make clear that settlement with respect to AIP Settling Sub-Accounts is not guaranteed and that NSCC will reverse any credit previously given to any AIP Member (including any AIP Settling Sub-Account) that is the contra-side to an AIP Member (including a contra-side AIP Settling Sub-Account) whose payment was not received by NSCC.
NSCC believes that the proposed rule change is consistent with the requirements of the Act, in particular Section 17A(b)(3)(F) of the Act.
NSCC does not believe that the proposed rule change would have any impact, or impose any burden, on competition because the ability to settle at the sub-account level is optional and available to all AIP Fund Administrators.
Written comments relating to the proposed rule change have not yet been solicited or received. NSCC will notify the Commission of any written comments when received by NSCC.
Within 45 days of the date of publication of this notice in the
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule change should be disapproved.
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1)
The Exchange proposes to require certain OTP Holders
In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
As adopted by the Commission, Regulation SCI applies to certain self-regulatory organizations (including the Exchange), alternative trading systems (“ATSs”), plan processors, and exempt clearing agencies (collectively, “SCI entities”), and will require these SCI entities to comply with requirements with respect to the automated systems central to the performance of their regulated activities. Among the requirements of Regulation SCI is Rule 1001(a)(2)(v), which requires the Exchange and other SCI entities to maintain “[b]usiness continuity and disaster recovery plans that include maintaining backup and recovery capabilities sufficiently resilient and geographically diverse and that are reasonably designed to achieve next business day resumption of trading and two-hour resumption of critical SCI systems following a wide-scale disruption.”
With respect to an SCI entity's BC/DR plans, including its backup systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI entity to: “[e]stablish standards for the designation of those members or participants that the SCI entity reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of such plans.”
To comply with Rule 1004 of Regulation SCI, the Exchange proposes to adopt Rule 2.26, governing mandatory testing of Exchange backup systems as described below. The requirements of proposed Rule 2.26 would apply to OTP Holders that transact on the Exchange's options market.
First, in paragraph (a) of proposed Rule 2.26, the Exchange proposes to establish standards for the designation of OTP Holders that the Exchange reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of the Exchange's business continuity and disaster recovery plans.
Second, in paragraph (b) of proposed Rule 2.26, the Exchange proposes to specify that OTP Holders that are designated pursuant to paragraph (a) of proposed Rule 2.26 would be required to participate in scheduled functional and performance testing of the Exchange's business continuity and disaster recovery plans, which shall not be less than once every 12 months.
Third, in paragraph (c) of proposed Rule 2.26, the Exchange proposes to make clear that Lead Market Makers
Fourth, in paragraph (d) of proposed Rule 2.26, the Exchange proposes that at least three (3) months prior to a scheduled functional and performance testing of the Exchange's business continuity and disaster recovery plans, the Exchange will publish the criteria to be used by the Exchange to determine which OTP Holders will be required to participate in such testing and notify those OTP Holders that are required to participate based on such criteria.
Finally, in paragraph (e) of proposed Rule 2.26, the Exchange proposes to make clear that OTP Holders not designated pursuant to standards established in paragraph (a) of proposed Rule 2.26 are permitted to connect to the Exchange's backup systems and may participate in testing of such systems. Proposed paragraph (e) is consistent with Regulation SCI, which encourages “SCI entities to permit non-designated members or participants to participate in the testing of the SCE entity's BC/DR plans if they request to do so.”
The Exchange notes that it encourages all OTP Holders to connect to the Exchange's backup systems and to participate in testing of such systems. However, in adopting the requirements in proposed Rule 2.26, the rule will subject only those OTP Holders to mandatory testing that the Exchange believes are, taken as a whole, the minimum necessary to maintain fair and orderly markets. The Exchange believes that designating OTP Holders to participate in mandatory testing because
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,
The proposal will ensure that the OTP Holders necessary to ensure the maintenance of a fair and orderly market are properly designated consistent with Rule 1004 of Regulation SCI. Specifically, as proposed, the Exchange will adopt clear and objective criteria with respect to the designation of OTP Holders that are required to participate in the testing of the Exchange's BC/DR plans, as well as appropriate notification regarding such designation. As set forth in the SCI Adopting Release, “SROs have the authority, and legal responsibility, under Section 6 of the Exchange Act, to adopt and enforce rules (including rules to comply with Regulation SCI's requirements relating to BC/DR testing) applicable to their members or participants that are designed to, among other things, foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest.”
The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposal is not a competitive proposal but rather is necessary for the Exchange's compliance with Regulation SCI.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow the Exchange to incorporate changes required under Regulation SCI, such as establishing standards for designating BCP/DR participants, prior to the November 3, 2015 compliance date. Accordingly, the Commission designates the proposed rule change to be operative upon filing.
At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B)
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
CHX proposes to adopt business continuity and disaster recovery plans (“BC/DR plans”) testing requirements for certain Participants
The text of this proposed rule change is available on the Exchange's Web site at (
In its filing with the Commission, the CHX included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements.
As adopted by the Commission, Regulation SCI applies to certain self-regulatory organizations (including the Exchange), alternative trading systems (“ATSs”), plan processors, and exempt clearing agencies (collectively, “SCI entities”), and will require these SCI entities to comply with requirements with respect to the automated systems central to the performance of their regulated activities. Among the requirements of Regulation SCI is Rule 1001(a)(2)(v), which requires the Exchange and other SCI entities to maintain “[b]usiness continuity and disaster recovery plans that include maintaining backup and recovery capabilities sufficiently resilient and geographically diverse and that are reasonably designed to achieve next business day resumption of trading and two-hour resumption of critical SCI systems following a wide-scale disruption.”
With respect to an SCI entity's BC/DR plans, including its backup systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI entity to: “[e]stablish standards for the designation of those members or participants that the SCI entity reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of such plans.”
First, in paragraph (a) of Rule 21, the Exchange proposes to include language from paragraph (a) of Rule 1004 of Regulation SCI to summarize the Exchange's obligation pursuant to such rule. Specifically, the Exchange proposes to state that “[p]ursuant to Regulation SCI and with respect to the Exchange's business continuity and disaster recovery plans, including its backup systems, the Exchange is required to establish standards for the designation of Participants that the Exchange reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the
Second, in paragraph (b) of Rule 21, the Exchange proposes to specify the criteria that will result in a Participant receiving a designation requiring it to connect to the Exchange's backup systems and to participate in functional and performance testing as announced by the Exchange, which shall occur at least once every 12 months. Specifically, proposed paragraph (b)(1) would require all Participants that account for a meaningful percentage of the Exchange's overall trades or volume to connect to the Exchange's backup systems and to participate in functional and performance testing.
The Exchange notes that it encourages all Participants to connect to the Exchange's backup systems and to participate in testing of such systems. In fact, if a Participant executes an average daily volume of 1 million or more provide shares in the Matching System during the month, CHX will impose a cap on logical port charges equal to the greatest number of ports attributable to that Participant in either of CHX's data centers which helps reduce the economic burden of maintaining connectivity to Exchange's data centers.
In addition to paragraphs (a) and (b) described above, the Exchange also proposes to adopt Interpretation and Policy .01, which would provide additional detail regarding the notice that will be provided to Participants that have been designated pursuant to subparagraph (b) of the Rule as well as the Exchange's method for measuring the trades and volume thresholds. As proposed, Interpretation and Policy .01 would state that for purposes of identifying Participants that account for a meaningful percentage of the Exchange's overall trades or volume, the Exchange will measure trades and volume executed on the Exchange on a quarterly basis. The percentage of trades and volume that the Exchange considers to be meaningful for purposes of this Interpretation and Policy .01 will be determined by the Exchange and will be published in a circular distributed to Participants. The Exchange will publish the first circular consistent with this proposal prior to the Regulation SCI compliance date of November 3, 2015. The proposed Interpretation and Policy would also require the Exchange to notify individual Participants quarterly that are subject to proposed paragraph (b) based on the prior calendar quarter's trades and volume. Finally, as proposed, if a Participant has not previously been subject to the requirements of proposed paragraph (b), then such Participant would have until the next calendar quarter before such requirements are applicable. The Exchange believes the proposed notice requirements are necessary to provide Participants with proper advance notice in the event they become subject to proposed Rule 21(b). The proposed timeframes would also provide Participants with adequate time to become compliant with such Rule due to the necessary infrastructure changes it may take to connect to the Exchange's backup systems for a Participant that is not already connected.
The Exchange believes that its proposal is consistent with Section 6(b) of the Act
The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposal is not a competitive proposal but rather is necessary for the Exchange's compliance with Regulation SCI.
No written comments were either solicited or received.
Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A)
A proposed rule change filed under Rule 19b-4(f)(6)
The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow the Exchange to incorporate changes required under Regulation SCI, such as establishing standards for designating business continuity and disaster recovery plan participants, prior to the November 3, 2015 compliance date. Therefore, the Commission designates the proposed rule change to be operative upon filing.
At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.
Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549.
Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be available for inspection and copying at the principal office of the CHX. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Inelco Corp. (CIK No. 1427352), a revoked Nevada corporation with its principal place of business listed as Coral Springs, Florida with stock quoted on OTC Link under the ticker symbol INLC, because it has not filed any periodic reports since the period ended June 30, 2013. On January 14, 2015, a delinquency letter was sent by the Division of Corporation Finance to Inelco requesting compliance with their periodic filing obligations, but Inelco did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission Rules (Rule 301 of Regulation S-T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual).
It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Teliphone Corp. (CIK No. 1101783), a Nevada corporation with its principal place of business listed as Vancouver, British Columbia, Canada with stock quoted on OTC Link under the ticker symbol TLPH, because it has not filed any periodic reports since the period ended March 31, 2013. On January 14, 2015, a delinquency letter was sent by the Division of Corporation Finance to Teliphone requesting compliance with their periodic filing obligations, and Teliphone received the delinquency letter on February 6, 2015, but failed to cure its delinquencies.
The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed companies.
Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the securities of the above-listed companies is suspended for the period from 9:30 a.m. EST on November 6, 2015, through 11:59 p.m. EST on November 19, 2015.
By the Commission.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes to amend Rule 19 to specify in Exchange rules the Exchange's use of data feeds from National Stock Exchange, Inc. for order handling and execution, order routing, and regulatory compliance. The text of the proposed rule change is available on the Exchange's Web site at
In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
The Exchange proposes to amend Rule 19 to specify in Exchange rules which data feeds from National Stock Exchange, Inc. (“NSX”) that the Exchange would use for order handling and execution, order routing, and regulatory compliance.
On July 18, 2014, the Exchange filed a proposed rule change that clarified the Exchange's use of certain data feeds for order handling and execution, order routing, and regulatory compliance.
To reflect that, subject to regulatory approval, NSX intends to reopen trading and has reactivated its connections to the SIPs, the Exchange proposes to amend Supplementary Material .01 to Rule 19, to specify which data feeds the Exchange would use for NSX. As proposed, the Exchange would use the SIP Data Feed for NSX and would not have a secondary source.
The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue but rather would provide the public and investors with information about which data feeds the Exchange uses for execution and routing decisions.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange has stated that it is requesting this waiver because NSX intends to reactivate its status as an operating Participant of the SIPs, subject to regulatory approval, and that the proposed rule change would permit the Exchange to immediately provide the enhanced transparency in Exchange rules regarding which data feeds the Exchange would use for NSX. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because this waiver will enable the Exchange to disclose in a timely manner that it will be using NSX SIP data for purpose of fulfilling its order handling and execution, order routing, and regulatory compliance obligations, if and when NSX receives the necessary regulatory approval to recommence trading.
At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B)
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1)
The Exchange proposes to require certain Exchange member organizations
In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
As adopted by the Commission, Regulation SCI applies to certain self-regulatory organizations (including the Exchange), alternative trading systems (“ATSs”), plan processors, and exempt clearing agencies (collectively, “SCI entities”), and will require these SCI entities to comply with requirements with respect to the automated systems central to the performance of their regulated activities. Among the requirements of Regulation SCI is Rule 1001(a)(2)(v), which requires the Exchange and other SCI entities to maintain “[b]usiness continuity and disaster recovery plans that include maintaining backup and recovery capabilities sufficiently resilient and geographically diverse and that are reasonably designed to achieve next business day resumption of trading and two-hour resumption of critical SCI systems following a wide-scale disruption.”
With respect to an SCI entity's BC/DR plans, including its backup systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI entity to: “[e]stablish standards for the designation of those members or participants that the SCI entity reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of such plans.”
To comply with Rule 1004 of Regulation SCI, the Exchange proposes to amend current Rule 431,
First, in paragraph (a) of revised Rule 431, the Exchange proposes to establish standards for the designation of Members that the Exchange reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of the Exchange's business continuity and disaster recovery plans.
Second, in paragraph (b) of revised Rule 431, the Exchange proposes to specify that Members that are designated pursuant to paragraph (a) of revised Rule 431 would be required to participate in scheduled functional and performance testing of the Exchange's business continuity and disaster recovery plans, which shall not be less than once every 12 months.
Third, in paragraph (c) of revised Rule 431, the Exchange proposes to make clear that Designated Market Makers,
Fourth, in paragraph (d) of revised Rule 431, the Exchange proposes that at least three (3) months prior to a scheduled functional and performance testing of the Exchange's business continuity and disaster recovery plans, the Exchange will publish the criteria to be used by the Exchange to determine which Members will be required to participate in such testing and notify those Members that are required to participate based on such criteria.
Finally, in paragraph (e) of revised Rule 431, the Exchange proposes to make clear that Members not designated pursuant to standards established in paragraph (a) of revised Rule 431 are permitted to connect to the Exchange's backup systems and may participate in testing of such systems. Proposed paragraph (e) is consistent with Regulation SCI, which encourages “SCI
The Exchange notes that it encourages all Members to connect to the Exchange's backup systems and to participate in testing of such systems. However, in adopting the requirements of revised Rule 431, the rule will subject only those Members to mandatory testing that the Exchange believes are, taken as a whole, the minimum necessary to maintain fair and orderly markets. The Exchange believes that designating Members to participate in mandatory testing because they, for example, account for a significant portion of the Exchange's overall volume or maintain exclusive responsibilities with respect to Exchange-listed securities is a reasonable means to ensure the maintenance of a fair and orderly market on the Exchange.
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,
The proposal would ensure that the Members necessary to ensure the maintenance of a fair and orderly market are properly designated consistent with Rule 1004 of Regulation SCI. Specifically, as proposed, the Exchange would adopt clear and objective criteria with respect to the designation of Members that are required to participate in the testing of the Exchange's BC/DR plans, as well as appropriate notification regarding such designation. As set forth in the SCI Adopting Release, “SROs have the authority, and legal responsibility, under Section 6 of the Exchange Act, to adopt and enforce rules (including rules to comply with Regulation SCI's requirements relating to BC/DR testing) applicable to their members or participants that are designed to, among other things, foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest.”
The Exchange does not believe that the proposed rule change would impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposal is not a competitive proposal but rather is necessary for the Exchange's compliance with Regulation SCI.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow the Exchange to incorporate changes required under Regulation SCI, such as establishing standards for designating BCP/DR participants, prior to the November 3, 2015 compliance date. Accordingly, the Commission designates the proposed rule change to be operative upon filing.
At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B)
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange Commission will hold a Closed Meeting on Thursday, November 12, 2015 at 2 p.m.
Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters also may be present.
The General Counsel of the Commission, or her designee, has certified that, in her opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the scheduled matter at the Closed Meeting.
Commissioner Aguilar, as duty officer, voted to consider the items listed for the Closed Meeting in closed session.
The subject matter of the Closed Meeting will be:
Institution and settlement of injunctive actions;
Institution and settlement of administrative proceedings; and
Other matters relating to enforcement proceedings.
At times, changes in Commission priorities require alterations in the scheduling of meeting items.
For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact the Office of the Secretary at (202) 551-5400.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange is proposing to amend its rules to list and trade options that overlie a reduced value of the FTSE China 50 Index.
The text of the proposed rule change is available on the Exchange's Web site (
In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
The purpose of this proposed rule change is to permit the Exchange to list and trade options that overlie a reduced value of the FTSE China 50 Index (“China 50 options”). China 50 options would be A.M., cash-settled contracts with European-style exercise.
The FTSE China 50 Index is a free float-adjusted market capitalization index that is designed to measure the performance of 50 of the largest and most liquid Chinese stocks (H Shares,
The FTSE China 50 Index was launched on April 19, 2001 and is
The FTSE China 50 Index is monitored and maintained by FTSE. Adjustments to the FTSE China 50 Index could be made on a daily basis with respect to corporate events and dividends. FTSE reviews the FTSE China 50 Index quarterly (March, June, September and December) according to rules for inserting and deleting companies that “are designed to provide stability in the selection of constituents of the FTSE China 50 Index while ensuring that the [FTSE China 50] Index continues to be representative of the market by including or excluding those companies which have risen or fallen significantly.”
Real-time data is distributed at least every 15 seconds while the index is being calculated using FTSE's real-time calculation engine to Bloomberg L.P. (“Bloomberg”), Thomson Reuters (“Reuters”) and other major vendors. End of day data is distributed daily to clients through FTSE as well as through major quotation vendors, including Bloomberg and Reuters.
The Exchange proposes to base trading in options on a fraction of the full size FTSE China 50 Index. In particular, the Exchange proposes to list FTSE China 50 options that are based on one one-hundredth of the value of the FTSE China 50 Index. The Exchange believes that listing options on the reduced value of the index will attract a greater source of customer business than if options were based on the full value of the FTSE China 50 Index. The Exchange further believes that listing options on a reduced value of the FTSE China 50 Index will provide an opportunity for investors to hedge, or speculate on, the market risk associated with the stocks comprising the FTSE China 50 Index. Additionally, by reducing the value of the FTSE China 50 Index, investors will be able to use this trading vehicle while extending a smaller outlay of capital. The Exchange believes this should attract additional investors, and, in turn, create a more active and liquid trading environment.
The FTSE China 50 Index meets the definition of a broad-based index as set forth in Rule 24.1(i)(1).
Additionally, the Exchange proposes to add new Interpretation and Policy .02(b) to Rule 24.2,
The Exchange believes that A.M. settlement is appropriate for China 50 options due to the nature of the index that encompasses the Chinese market. The components of the FTSE China 50 Index open with the start of trading on the SEHK at approximately 8:30 p.m. (Chicago time) (prior day) and close with the end of trading on the SEHK at approximately 3:00 a.m. (Chicago time) (next day). The closing FTSE China 50 Index level is distributed by FTSE between approximately 3:00 a.m. and 4:00 a.m. (Chicago time) each trading day. Thus, between 8:30 a.m. and 3:15 p.m. (Chicago time) the FTSE China 50 Index level is a static value that market participants can access via data vendors.
As a result, there will not be a current FTSE China 50 Index level calculated and disseminated while China 50 options would be traded.
Because the FTSE China 50 Index is comprised of 50 of the largest and most liquid Chinese stocks traded on the SEHK, the Exchange believes that the initial listing requirements are appropriate to trade options on this index. In addition, similar to other broad based indexes, the Exchange proposes various maintenance requirements, which require continual compliance and periodic compliance.
Exhibit 3 presents contract specifications for China 50 options.
The contract multiplier for China 50 options would be $100. China 50 options would be quoted in index points and one point would equal $100. The minimum tick size for series trading below $3 would be 0.05 ($5.00) and at or above $3 will be 0.10 ($10.00).
Initially, the Exchange would list in-, at- and out-of-the-money strike prices. Additional series may be opened for trading as the underlying index level moves up or down.
The Exchange would be permitted to list up to twelve near-term expiration months.
The trading hours for China 50 options would be from 8:30 a.m. (Chicago time) to 3:15 p.m. (Chicago time).
The proposed China 50 options would expire on the third Friday of the expiring month.
Exercise would result in delivery of cash on the business day following expiration. China 50 options would be A.M.-settled, in that the expiring contract would cease trading on the business day (usually a Thursday) before the expiration date (generally a Friday).
The exercise settlement amount would be equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by the contract multiplier ($100).
If the exercise settlement value is not available or the normal settlement procedure cannot be utilized due to a trading disruption or other unusual circumstance, the settlement value would be determined in accordance with the rules and bylaws of The Options Clearing Corporation (“OCC”).
The Exchange proposes to apply the default position limits for broad-based index options to China 50 options. Specifically, the chart set forth in Rule 24.4(a),
The Exchange proposes that China 50 options be margined as “broad-based index” options, and under CBOE rules, especially, Rule 12.3(c)(5)(A), the margin requirement for a short put or call shall be 100% of the current market value of the contract plus 15% of the “product of the current index group value and the applicable index multiplier,” reduced by any out-of-the-money amount. There would be a minimum margin requirement of 100% of the current market value of the contract plus: 10% of the aggregate put exercise price amount in the case of puts, and 10% of the product of the current index group value and the applicable index multiplier in the case of calls. Additional margin may be required pursuant to Rules 12.3(h) and 12.10 (Margin Required is Minimum).
The Exchange believes that FTSE China 50 Index options are an eligible product for portfolio margining under CBOE Rule 12.4. Accordingly, the
Except as modified herein, the rules in Chapters I through XIX, XXIV, XXIVA, and XXIVB would equally apply to China 50 options. China 50 options would be subject to the same rules that currently govern other CBOE index options, including sales practice rules,
The Exchange hereby designates China 50 options as eligible for trading as Flexible Exchange Options as provided for in Chapters XXIVA (Flexible Exchange Options) and XXIVB (FLEX Hybrid Trading System).
The Exchange represents that it has an adequate surveillance program in place for China 50 options and intends to use the same surveillance procedures currently utilized for each of the Exchange's other index options to monitor trading in China 50 options.
The Exchange is a member of the Intermarket Surveillance Group (“ISG”), which “is comprised of an international group of exchanges, market centers, and market regulators.”
The Exchange is also an affiliate member of the International Organization of Securities Commissions (“IOSCO”), which has members from over 100 different countries. The Hong Kong Securities and Futures Commission, the regulator of the market on which the constituent securities trade, is also a member of IOSCO.
The Exchange notes that FTSE China 50 ETFs, such as the iShares China Large-Cap ETF (FXI), are actively traded products. CBOE also lists options overlying those ETFs (FXI options) and those options are actively traded as well.
CBOE has analyzed its capacity and represents that it believes the Exchange and the Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of new series that would result from the introduction of China 50 options. Because the proposal is limited to one new class, the Exchange believes that the additional traffic that would be generated from the introduction of China 50 options would be manageable.
The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
The Exchange believes that the proposed rule change will further the Exchange's goal of introducing new and innovative products to the marketplace. Currently, the Exchange believes that there is unmet market demand for exchange-listed options listed on this popular cash index. As described above, the iShares China Large-Cap ETF is an actively traded product, as are the options on that ETF. E-Mini FTSE China 50 Index Futures are listed for trading on CME. As a result, CBOE believes that China 50 options are designed to provide different and additional opportunities for investors to hedge or speculate on the market risk on the FTSE China 50 Index by listing an option directly on the FTSE China 50 Index.
The Exchanges believes that the FTSE China 50 Index is not easily susceptible to manipulation. The index is a broad-based index and has high market capitalization. The FTSE China 50 Index is comprised of 50 of the largest and most liquid Chinese stocks traded on the SEHK and no single component comprises more than 15% of the index, making it not easily subject to market manipulation.
Additionally, the iShares China Large-Cap ETF is an actively traded product, as are options on that ETF. Because the index has 50 of the largest and most liquid Chinese stocks that trade on the
China 50 options would be subject to the same rules that currently govern other CBOE index options, including sales practice rules,
The Exchange represents that it has an adequate surveillance program in place for China 50 options. The Exchange also represents that it has the necessary systems capacity to support the new option series.
CBOE does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Specifically, CBOE believes that the introduction of new cash index options will enhance competition among market participants and will provide a new type of options to compete with domestic products such as FXI options, E-Mini FTSE China 50 Index Future and European-traded derivatives on the FTSE China 50 Index to the benefit of investors and the marketplace.
No written comments were solicited or received with respect to the proposed rule change.
Within 45 days of the date of publication of this notice in the
A. By order approve or disapprove such proposed rule change, or
B. institute proceedings to determine whether the proposed rule change should be disapproved.
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1)
The Exchange proposes to require certain ETP Holders§
In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
As adopted by the Commission, Regulation SCI applies to certain self-regulatory organizations (including the Exchange), alternative trading systems (“ATSs”), plan processors, and exempt clearing agencies (collectively, “SCI entities”), and will require these SCI entities to comply with requirements with respect to the automated systems central to the performance of their regulated activities. Among the requirements of Regulation SCI is Rule 1001(a)(2)(v), which requires the Exchange and other SCI entities to maintain “[b]usiness continuity and disaster recovery plans that include maintaining backup and recovery capabilities sufficiently resilient and geographically diverse and that are reasonably designed to achieve next business day resumption of trading and two-hour resumption of critical SCI systems following a wide-scale disruption.”
With respect to an SCI entity's BC/DR plans, including its backup systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI entity to: “[e]stablish standards for the designation of those members or participants that the SCI entity reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of such plans.”
To comply with Rule 1004 of Regulation SCI, the Exchange proposes to amend current Rule 2.2,
First, in paragraph (a) of revised Rule 2.2, the Exchange proposes to establish standards for the designation of ETP Holders that the Exchange reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of the Exchange's business continuity and disaster recovery plans.
Second, in paragraph (b) of revised Rule 2.2, the Exchange proposes to specify that ETP Holders that are designated pursuant to paragraph (a) of revised Rule 2.2 would be required to participate in scheduled functional and performance testing of the Exchange's business continuity and disaster recovery plans, which shall not be less than once every 12 months.
Third, in paragraph (c) of revised Rule 2.2, the Exchange proposes to make clear that Lead Market Makers
Fourth, in paragraph (d) of revised Rule 2.2, the Exchange proposes that at least three (3) months prior to a scheduled functional and performance testing of the Exchange's business continuity and disaster recovery plans, the Exchange will publish the criteria to be used by the Exchange to determine which ETP Holders will be required to participate in such testing and notify those ETP Holders that are required to participate based on such criteria.
Finally, in paragraph (e) of revised Rule 2.2, the Exchange proposes to make clear that ETP Holders not designated pursuant to standards established in paragraph (a) of revised Rule 2.2 are permitted to connect to the Exchange's backup systems and may participate in testing of such systems. Proposed paragraph (e) is consistent with Regulation SCI, which encourages
The Exchange notes that it encourages all ETP Holders to connect to the Exchange's backup systems and to participate in testing of such systems. However, in adopting the requirements in revised Rule 2.2, the rule will subject only those ETP Holders to mandatory testing that the Exchange believes are, taken as a whole, the minimum necessary to maintain fair and orderly markets. The Exchange believes that designating ETP Holders to participate in mandatory testing because they, for example, account for a significant portion of the Exchange's overall volume or maintain exclusive responsibilities with respect to Exchange-listed securities is a reasonable means to ensure the maintenance of a fair and orderly market on the Exchange.
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,
The proposal will ensure that the ETP Holders necessary to ensure the maintenance of a fair and orderly market are properly designated consistent with Rule 1004 of Regulation SCI. Specifically, as proposed, the Exchange will adopt clear and objective criteria with respect to the designation of ETP Holders that are required to participate in the testing of the Exchange's BC/DR plans, as well as appropriate notification regarding such designation. As set forth in the SCI Adopting Release, “SROs have the authority, and legal responsibility, under Section 6 of the Exchange Act, to adopt and enforce rules (including rules to comply with Regulation SCI's requirements relating to BC/DR testing) applicable to their members or participants that are designed to, among other things, foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest.”
The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposal is not a competitive proposal but rather is necessary for the Exchange's compliance with Regulation SCI.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
A proposed rule change filed under Rule 19b-4(f)(6)
The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow the Exchange to incorporate changes required under Regulation SCI, such as establishing standards for designating BCP/DR participants, prior to the November 3, 2015 compliance date. Accordingly, the Commission designates the proposed rule change to be operative upon filing.
At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B)
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes to specify in Exchange rules the Exchange's use of data feeds from National Stock Exchange, Inc. for order handling and execution, order routing, and regulatory compliance. The text of the proposed rule change is available on the Exchange's Web site at
In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
The Exchange proposes to amend NYSE Arca Equities Rule 7.37 (“Rule 7.37”) and NYSE Arca Equities Rule 7.37P (“Rule 7.37”) to specify in Exchange rules which data feeds from National Stock Exchange, Inc. (“NSX”) that the Exchange would use for order handling and execution, order routing, and regulatory compliance.
On July 18, 2014, the Exchange filed a proposed rule change that clarified the Exchange's use of certain data feeds for order handling and execution, order routing, and regulatory compliance.
To reflect that, subject to regulatory approval, NSX intends to reopen trading and has reactivated its connections to the SIPs, the Exchange proposes to amend Commentary .01 to Rule 7.37 and Rule 7.37P(d) to specify which data feeds the Exchange would use for NSX. As proposed, the Exchange would use the SIP Data Feed for NSX and would not have a secondary source.
The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue but rather would provide the public and investors with information about which data feeds the Exchange uses for execution and routing decisions.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange has stated that it is requesting this waiver because NSX intends to reactivate its status as an operating Participant of the SIPs, subject to regulatory approval, and that the proposed rule change would permit the Exchange to immediately provide the enhanced transparency in Exchange rules regarding which data feeds the Exchange would use for NSX. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because this waiver will enable the Exchange to disclose in a timely manner that it will be using NSX SIP data for purpose of fulfilling its order handling and execution, order routing, and regulatory compliance obligations, if and when NSX receives the necessary regulatory approval to recommence trading.
At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B)
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes to amend NYSE MKT Rule 19—Equities to specify in Exchange rules the Exchange's use of data feeds from National Stock Exchange, Inc. for order handling and execution, order routing, and regulatory compliance. The text of the proposed rule change is available on the Exchange's Web site at
In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
The Exchange proposes to amend NYSE MKT Rule 19—Equities (“Rule 19”) to specify in Exchange rules which data feeds from National Stock Exchange, Inc. (“NSX”) that the Exchange would use for order handling and execution, order routing, and regulatory compliance.
On July 18, 2014, the Exchange filed a proposed rule change that clarified the Exchange's use of certain data feeds for order handling and execution, order routing, and regulatory compliance.
To reflect that, subject to regulatory approval, NSX intends to reopen trading and has reactivated its connections to the SIPs, the Exchange proposes to amend Supplementary Material .01 to Rule 19, to specify which data feeds the Exchange would use for NSX. As proposed, the Exchange would use the SIP Data Feed for NSX and would not have a secondary source.
The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue but rather would provide the public and investors with information about which data feeds the Exchange uses for execution and routing decisions.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange has stated that it is requesting this waiver because NSX intends to reactivate its status as an operating Participant of the SIPs, subject to regulatory approval, and that the proposed rule change would permit the Exchange to immediately provide the enhanced transparency in Exchange rules regarding which data feeds the Exchange would use for NSX. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because this waiver will enable the Exchange to disclose in a timely manner that it will be using NSX SIP data for purpose of fulfilling its
At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B)
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange is proposing to amend its rules to list and trade options that overlie a reduced value of the FTSE 100 Index.
The text of the proposed rule change is available on the Exchange's Web site (
In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
The purpose of this proposed rule change is to permit the Exchange to list and trade options that overlie the FTSE 100 Index (“FTSE 100 options”). FTSE 100 options would be A.M., cash-settled contracts with European-style exercise.
The FTSE 100 Index is a free float-adjusted market capitalization index that is designed to measure the performance of the 100 largest companies traded on the London Stock Exchange and valued in the British pound (“GBP”).
The FTSE 100 Index was launched on January 3, 1984, and is calculated by FTSE International Limited (“FTSE”), which is a provider of investment support tools. The FTSE 100 Index is calculated and published on a real-time basis in British pounds during U.K. and U.S. trading hours: from 2:00-10:30 a.m. (Chicago time) the real-time index is calculated using real time prices of the securities. At 10:30 a.m. (Chicago time) the real time index closes using the closing prices from the London Stock Exchange. Thus, between 10:30 a.m. and 3:15 p.m. (Chicago time) the FTSE 100 Index level is a static value that market participants can access via data vendors.
The methodology used to calculate the FTSE 100 Index is similar to the methodology used to calculate the value of other benchmark market-capitalization weighted indexes. Specifically, the FTSE 100 Index is governed by the Ground Rules for the FTSE UK Index Series.
The FTSE 100 Index is monitored and maintained by FTSE. Adjustments to the FTSE 100 Index could be made on a daily basis with respect to corporate events and dividends. FTSE reviews the FTSE 100 Index quarterly (March, June, September and December) according to rules for inserting and deleting companies that “are designed to provide stability in the selection of constituents of the FTSE UK Index Series while ensuring that the Indexes continue to be representative of the market by including or excluding those companies which have risen or fallen significantly.”
Real-time data is distributed at least every 15 seconds while the index is being calculated using FTSE's real-time calculation engine to Bloomberg L.P. (“Bloomberg”), Thomson Reuters (“Reuters”) and other major vendors. End of day data is distributed daily to clients through FTSE as well as through major quotation vendors, including Bloomberg and Reuters.
The Exchange proposes to base trading in options on a fraction of the full size of the FTSE 100 Index. In particular, the Exchange proposes to list FTSE 100 options that are based on one one-tenth of the value of the FTSE 100 Index. The Exchange believes that listing options on the reduced value of the index will attract a greater source of customer business than if options were based on the full value of the FTSE 100 Index. The Exchange further believes that listing options on a reduced value of the index will provide an opportunity for investors to hedge, or speculate on, the market risk associated with the stocks comprising the FTSE 100 Index. Additionally, by reducing the value of the FTSE 100 Index, investors will be able to use this trading vehicle while extending a smaller outlay of capital. The Exchange believes this should attract additional investors, and, in turn, create a more active and liquid trading environment.
The FTSE 100 Index meets the definition of a broad-based index as set forth in Rule 24.1(i)(1).
Additionally, the Exchange proposes to add new Interpretation and Policy .02(b) to Rule 24.2,
The Exchange believes that A.M. settlement is appropriate for FTSE 100 options due to the nature of the index that encompasses the U.K. market. The components of the FTSE 100 Index open
As a result, the FTSE 100 Index level will not be calculated using real time prices of the constituent securities during a portion of the day when options are trading, specifically between 10:30 a.m. and 3:15 p.m. (Chicago time).
Because the FTSE 100 Index is comprised of 100 of the largest companies traded on the London Stock Exchange, the Exchange believes that the initial listing requirements are appropriate to trade options on this index. In addition, similar to other broad based indexes, the Exchange proposes various maintenance requirements, which require continual compliance and periodic compliance.
Exhibit 3 presents contract specifications for FTSE 100 options.
The contract multiplier for FTSE 100 options would be $100. FTSE 100 options would be quoted in index points and one point would equal $100. The minimum tick size for series trading below $3 would be 0.05 ($5.00) and at or above $3 will be 0.10 ($10.00).
Initially, the Exchange would list in-, at- and out-of-the-money strike prices. Additional series may be opened for trading as the underlying index level moves up or down.
The Exchange would be permitted to list up to twelve near-term expiration months.
The trading hours for FTSE 100 options would be from 8:30 a.m. (Chicago time) to 3:15 p.m. (Chicago time).
The proposed FTSE 100 options would expire on the third Friday of the expiring month.
Exercise would result in delivery of cash on the business day following expiration. FTSE 100 options would be A.M.-settled, in that the expiring contract would cease trading on the business day (usually a Thursday) before the expiration date (generally a Friday).
The exercise settlement amount would be equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by the contract multiplier ($100).
If the exercise settlement value is not available or the normal settlement procedure cannot be utilized due to a trading disruption or other unusual circumstance, the settlement value would be determined in accordance with the rules and bylaws of The Options Clearing Corporation (“OCC”).
The Exchange proposes to apply the default position limits for broad-based index options to FTSE 100 options. Specifically, the chart set forth in Rule 24.4(a),
The Exchange proposes that FTSE 100 options be margined as “broad-based index” options, and under CBOE rules, especially, Rule 12.3(c)(5)(A), the margin requirement for a short put or call shall be 100% of the current market value of the contract plus 15% of the “product of the current index group value and the applicable index multiplier,” reduced by any out-of-the-money amount. There would be a minimum margin requirement of 100% of the current market value of the contract plus: 10% of the aggregate put exercise price amount in the case of puts, and 10% of the product of the current index group value and the applicable index multiplier in the case of calls. Additional margin may be required pursuant to Rules 12.3(h) and 12.10 (Margin Required is Minimum).
The Exchange believes that FTSE 100 options are an eligible product for portfolio margining under CBOE Rule 12.4. Accordingly, the Exchange proposes that FTSE 100 options be allowed in portfolio margin accounts. CBOE proposes that the FTSE 100 Index be treated as a high-capitalization, broad-based index and that a new Product Group be established in which to house a FTSE 100 Index Class Group. This new Product Group would be referred to as the “United Kingdom Indexes Product Group. The assumed market moves utilized for the new Product Group would be −8%/+6%, with a 100% offset of gains and losses between products in the same Class Group. With respect to a percentage offset between Class Groups within the United Kingdom Indexes Product Group, none would be specified at this time given that the FTSE 100 Index would be the only Class Group.
Except as modified herein, the rules in Chapters I through XIX, XXIV, XXIVA, and XXIVB would equally apply to FTSE 100 options. FTSE 100 options would be subject to the same rules that currently govern other CBOE index options, including sales practice rules,
The Exchange hereby designates FTSE 100 options as eligible for trading as Flexible Exchange Options as provided for in Chapters XXIVA (Flexible Exchange Options) and XXIVB (FLEX Hybrid Trading System).
The Exchange represents that is has an adequate surveillance program in place for FTSE 100 options and intends to use the same surveillance procedures currently utilized for each of the Exchange's other index options to monitor trading in FTSE 100 options.
The Exchange is a member of the Intermarket Surveillance Group (“ISG”), which “is comprised of an international group of exchanges, market centers, and market regulators.”
The Exchange is also an affiliate member of the International Organization of Securities Commissions (“IOSCO”), which has members from over 100 different countries. The United Kingdom's Financial Conduct Authority, the regulator of the market on which the constituent securities trade, is also a member of IOSCO.
CBOE has analyzed its capacity and represents that it believes the Exchange and the Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of new series that would result from the introduction of FTSE 100 options. Because the proposal is limited to one new class, the Exchange believes that the additional traffic that would be generated from the introduction of FTSE 100 options would be manageable.
The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
The Exchange believes that the proposed rule change will further the Exchange's goal of introducing new and innovative products to the marketplace. Currently, the Exchange believes that there is unmet market demand for exchange-listed security options listed on this popular cash index. As described above, E-Mini FTSE 100 Index futures are listed for trading on CME. In addition, other derivatives contracts on the FTSE 100 Index are listed for trading in Europe (
The Exchanges believes that the FTSE 100 Index is not easily susceptible to manipulation. The index is a broad-based index and has high market capitalizations. The FTSE 100 Index is comprised of 100 of the largest companies traded on the London Stock Exchange and no single component comprises more than 10% of the index, making it not easily subject to market manipulation.
Additionally, because the index has 100 of the largest and most liquid stocks listed on the London Stock Exchange, the Exchange believes that the initial listing requirements are appropriate to trade options on the index. In addition, similar to other broad-based indexes, the Exchange proposes to adopt various maintenance criteria, which would require continual compliance and periodic compliance.
FTSE 100 options would be subject to the same rules that currently govern other CBOE index options, including sales practice rules,
The Exchange represents that it has an adequate surveillance program in place for FTSE 100 options. The Exchange also represents that it has the necessary systems capacity to support the new option series.
CBOE does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Specifically, CBOE believes that the introduction of new cash index options will enhance competition among market participants and will provide a new type of options to compete with FTSE 100 futures and European-traded derivatives on the FTSE 100 Index to the benefit of investors and the marketplace.
No written comments were solicited or received with respect to the proposed rule change.
Within 45 days of the date of publication of this notice in the
A. By order approve or disapprove such proposed rule change, or
B. Institute proceedings to determine whether the proposed rule change should be disapproved.
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes to amend Chapter XV, entitled “Options Pricing,” at Section 2, which governs pricing for NASDAQ members using the NASDAQ Options Market (“NOM”), NASDAQ's facility for executing and routing standardized equity and index options, to amend the Customer
The text of the proposed rule change is available on the Exchange's Web site at
In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
The Exchange proposes to amend Chapter XV, Section 2, entitled “NASDAQ Options Market—Fees and Rebates” to amend the Customer and Professional Penny Pilot Options Rebates to Add Liquidity. Each of the proposed rule changes will be detailed below.
Today, the Exchange offers tiered Penny Pilot Options Rebates to Add Liquidity to Customers and Professionals based on various criteria with rebates ranging from $0.20 to $0.48 per contract. Participants may qualify for Customer and Professional Penny Pilot Options Rebates to Add Liquidity by adding a certain amount of liquidity as specified by each tier.
The Exchange proposes to amend current note “e” to permit Participants that qualify for the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity
The Exchange believes that this new added incentive will encourage Participants to add even more liquidity on NOM to earn a higher rebate. Also, the Exchange is not only providing Participants another manner in which to earn a higher options rebate by participating in the options market, but is also permitting equities volume to qualify for the options rebate, thereby benefitting the Nasdaq Market Center as well as the NOM market, by incentivizing order flow to these markets.
Currently, note “d” of Chapter XV, Section 2(1) states that Participants that qualify for Customer or Professional Rebate to Add Liquidity Tiers 7
The Exchange proposes to remove the incentive to obtain a lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options for Participants that qualify for Tier 7 of the Customer and Professional Penny Pilot Options Rebate to Add Liquidity as of October 22, 2015. This incentive will remain for Participants that qualify for Tier 8, as is the case today. The Exchange desires to incentivize market participants to add liquidity in the highest tier in order to obtain the lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options. Note “d” will be amended to remove Tier 7. Additionally, from October 1, 2015 through the date of this filing, no member has qualified for the lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.50 per contract with Tier 7.
The Exchange proposes to remove the period at the end of Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 to conform the rule text.
NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The Exchange's proposal to amend note “e” to provide for an additional means to earn a higher rebate for Participants that qualify for the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity is reasonable because the opportunity to earn a higher rebate of $0.53
The Exchange is not only providing Participants with a manner in which to earn an additional options rebate, but also expanding the qualifications to permit participation in the equities market to qualify for the additional rebate. This participation benefits the Nasdaq Market Center as well as the NOM market by incentivizing order flow to these markets. As with existing tiers that require participation in both the Nasdaq Market Center and NOM, this additional rebate recognizes the prevalence of trading in which members simultaneously trade different asset classes within the same strategy. Because cash equities and options markets are linked, with liquidity and trading patterns on one market affecting those on the other, the Exchange believes that pricing incentives that encourage market participant activity in NOM also support price discovery and liquidity provision in the Nasdaq Market Center. Further, because the proposed incentive which is being added in note “e” require significant levels of liquidity provision, which benefits all market participants, and because activity in NOM also supports price discovery and liquidity provision in the Nasdaq Market Center due to the increasing propensity of market participants to be active in both markets and the influence of each market on the pricing of securities in the other, this proposal is reasonable. Moreover, the incentive has the potential to make the applicable higher rebate available to a wider range of market participants by introducing an additional means of qualification. Finally, other options exchanges today pay rebates to participants that add order both options and equity order flow.
The Exchange's proposal to amend note “e” to provide for an additional means to earn a higher rebate for Participants that qualify for the Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity is equitable and not unfairly discriminatory because all Participants may qualify for Tier 8 and the additional incentive. Qualifying Participants will be uniformly paid the rebate provided the requirements are met for the time period from October 22, 2015 through October 30, 2015. The Exchange's proposal to permit Participants to receive an additional $0.05 per contract rebate in addition to the Tier 8 rebate of $0.48 per contract, provided they qualify for Tier 8 and add options and equity volume as specified in the new note “e” criteria,
The Exchange's proposal to remove the incentive in note “d” for Participants that qualify for Tier 7 and continue to apply the incentive for Participants that qualify for Tier 8 is reasonable because the Exchange desires to incentivize market participants to add liquidity in the highest tier in order to obtain the lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options.
The Exchange's proposal to remove the incentive in note “d” for Participants that qualify for Tier 7 and continue to apply the incentive for Participants that qualify for Tier 8 is equitable and not unfairly discriminatory because the Exchange will uniformly apply the incentive to all Participants that qualify for Tier 8.
The Exchange's proposal to remove the period at the end of Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 for consistency is reasonable, equitable and not unfairly discriminatory.
NASDAQ does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
The Exchange's proposal to adopt a new note “e” incentive does not impose an undue burden on intra-market competition because all Participants are eligible to qualify for the Tier 8 Customer or Professional Rebate to Add Liquidity Tier, provided they meet the qualifications for that tier, and additionally all Participants may qualify for the additional requirements in new note “e”.
Furthermore, incentivizing Participants to add not only options, but equities volume does not impose an undue burden on intra-market competition because cash equities and options markets are linked, with liquidity and trading patterns on one market affecting those on the other, the Exchange believes that pricing incentives that encourage market participant activity in NOM also support price discovery and liquidity provision in the Nasdaq Market Center. Further, the pricing incentives require significant levels of liquidity provision, which benefits all market participants on NOM and the Nasdaq Market Center. Moreover, the changes have the potential to make the applicable incentives available to a wider range of market participants by introducing an additional means of qualification.
The Exchange's proposal to remove the incentive in note “d” from Participants that qualify for Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 7 and continue to apply the incentive to Participants that qualify for Customer and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 does not impose an undue burden on intra-market competition because the Exchange will uniformly apply the incentive to all Participants. No Participant will receive the incentive in note “d” for Tier 7 qualification as of October 22, 2015 and all Participants that have met the criteria for Customer and Professional rebate Tier 8 would continue to receive the note “d” incentive. Further, there are no Participants that qualified for the Tier 7 incentive from October 1, 2015 through the date of this filing.
The Exchange's proposal addressed herein does not impose an inter-market burden on competition because the Exchange operates in a highly competitive market in which many sophisticated and knowledgeable market participants can readily and do send order flow to competing exchanges if they deem fee levels or rebate incentives at a particular exchange to be excessive or inadequate. These market forces support the Exchange belief that the proposed rebate structure and tiers proposed herein are competitive with rebates and tiers in place on other exchanges. The Exchange believes that this competitive marketplace continues to impact the rebates present on the Exchange today and substantially influences the proposals set forth above. Other options markets offer similar rebates to incentive market participants to direct order flow to their markets. The Exchange believes that continuing to offer rebates and increasing those rebates and providing opportunities to earn higher rebates will benefit the marketplace by continuing to reward liquidity providers and thereby offering other market participants an opportunity to interact with this order flow.
No written comments were either solicited or received.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange proposes to amend the Fees Schedule relating to Continuing Education Fees. The text of the proposed rule change is available on the Exchange's Web site (
In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
The Exchange proposes to amend the Fees Schedule.
On August 8, 2015, the Securities and Exchange Commission approved SR-FINRA-2015-015 relating proposed changes to FINRA Rule 1250 to provide a Web-based delivery method for completing the Regulatory Element of the continuing education requirements.
The Exchange currently utilizes FINRA's Continuing Education Programs for its own continuing education requirements. Consistent with SR-FINRA-2015-015, the Exchange recently filed SR-CBOE-2015-084
The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
In particular, the Web-based delivery method for continuing education is in the interest of investors and free and open markets. In general, Web-based delivery will remove time parameters that exist with respect to taking continuing education at testing centers. Having additional time to take continuing education may result in better learning outcomes, which should enhance investor protection. In addition, the option to have Web-based delivery of the Regulatory Element of the S106, S201, and S901 Continuing Education Programs at a reduced cost lowers barriers to entry and removes impediments to a free and open market and national market system by making it easier and less costly for Trading Permit Holders to participate in the market. Accordingly, the Exchange believes that Web-based delivery of the Regulatory Element of the S106, S201, and S901 Continuing Education Programs and reducing the costs of continuing education in general are goals that are consistent with the Act.
The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. As FINRA has stated, the proposed rule change is specifically intended to reduce the burdens of continuing education on market participants while preserving the integrity of the S106, S201, and S901 Continuing Education Programs. In general, reduction in cost and removal of barriers to entry encourages competition among market participants, particularly in situations where such rules are employed universally across the markets. By bringing the Exchange's fees structure in line with that of FINRA, the Exchange believes it is removing impediments to free and open markets and encouraging competition between the Exchange and other markets that use the S106, S201, and S901 Continuing Education Programs. Accordingly, the Exchange further believes that the proposed rule change will relieve burdens on, and otherwise promote competition.
The Exchange neither solicited nor received written comments on the proposed rule change.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
The Exchange proposes to modify Rule 4758(a)(1)(A)(x), concerning LIST Orders.
The text of the proposed rule change is available on the Exchange's Web site at
In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
Nasdaq is proposing to amend Rule 4758(a)(1)(A)(x) to allow an Order
When Nasdaq determines that the primary market is “open”,
Two minutes prior to market close, any LIST Orders on the Nasdaq book are sent to their respective primary listing markets to post on those markets' books until market close or the Order's cancellation, whichever is earlier. LIST Orders entered at or after two minutes prior to the end of regular market hours, but before the conclusion of regular market hours trading, are also sent to the primary listing market for
The Exchange is proposing to allow the use of Good-til-Canceled TIF with a LIST routing option.
Nasdaq does not currently make MGTC or SGTC available to Participants entering LIST orders because it has not programmed the System to accept such Orders due to technological challenges. Consequently, under the current functionality if the LIST Order is not executed in full then it will be canceled when it expires based on the TIF assigned to the Order, which could be immediately (after determining whether the Order is marketable) or up to the end of the current trading day at which time the LIST Order would be canceled. The Exchange is now technologically able to allow a LIST Order to have a TIF of MGTC or SGTC, so it is proposing to eliminate the current limitation and allow Participants to designate a LIST Order with a GTC attribute. Nasdaq notes that the operation of the LIST Order will remain unchanged, with only the time that the Order remains active affected. For example, a Participant entering a LIST Order that would only be available for execution during Market Hours would, under the current rules, designate the Order with a TIF of MDAY.
By way of example, at 6 a.m. a Participant enters a LIST MGTC order to buy 1,000 shares of IBM, a NYSE-listed security. The Order is held by Nasdaq until 7:45 a.m. and then sent by the System to NYSE to participate in the NYSE opening. In the NYSE opening process 500 shares of the Order are executed. The remaining 500 shares of the Order are sent back to Nasdaq, where it checks the Nasdaq book and receives an execution of 100 shares against a resting sell Order. The remaining 400 shares of the Order are then routed to away markets, where the Order receives an execution on ARCA of 100 shares. The remaining 300 shares are then posted to the Nasdaq book. At 2 p.m., a market participant enters a sell Order that executes against the resting Order for 100 shares. At 3:58 p.m. the remaining 200 shares are sent to NYSE to participate in the NYSE closing process. In the NYSE closing process, 100 shares are executed with the remaining 100 returning to Nasdaq to be held until 7:45 a.m. the next day,
The scenario described above would be slightly different if the Order was received for a security listed on Nasdaq. For example, at 6 a.m. a Participant enters a LIST MGTC order to buy 1,000 shares of AAPL, a Nasdaq-listed security. The Order is placed into the Nasdaq opening and in the Nasdaq opening process 500 shares of the Order are executed. The remaining 500 shares would then be transferred to the Nasdaq continuous book. At 2 p.m., a market participant enters a sell Order that executes against the resting Order for 100 shares, leaving 400 shares resting on the continuous book. At 3:58 p.m. the remaining 400 shares would continue to rest on the Nasdaq continuous book until the closing cross. When the closing cross occurs, 100 shares are executed in the cross. The remaining 300 shares would be held by Nasdaq until the next day, at which time the Order would participate in the Nasdaq opening process.
Nasdaq believes that the proposed rule change is consistent with the
Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended.
No written comments were either solicited or received.
Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2015-135. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1)
The Exchange proposes to require certain member organizations
In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.
As adopted by the Commission, Regulation SCI applies to certain self-regulatory organizations (including the Exchange), alternative trading systems (“ATSs”), plan processors, and exempt clearing agencies (collectively, “SCI entities”), and will require these SCI entities to comply with requirements with respect to the automated systems central to the performance of their regulated activities. Among the requirements of Regulation SCI is Rule 1001(a)(2)(v), which requires the Exchange and other SCI entities to maintain “[b]usiness continuity and disaster recovery plans that include maintaining backup and recovery capabilities sufficiently resilient and geographically diverse and that are reasonably designed to achieve next business day resumption of trading and two-hour resumption of critical SCI systems following a wide-scale disruption.”
With respect to an SCI entity's BC/DR plans, including its backup systems, paragraph (a) of Rule 1004 of Regulation SCI requires each SCI entity to: “[e]stablish standards for the designation of those members or participants that the SCI entity reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of such plans.”
To comply with Rule 1004 of Regulation SCI, the Exchange proposes to amend current Rule 438,
First, in paragraph (a) of revised Rule 438, the Exchange proposes to establish standards for the designation of Members that the Exchange reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of the Exchange's business continuity and disaster recovery plans.
Second, in paragraph (b) of revised Rule 438, the Exchange proposes to specify that Members that are designated pursuant to paragraph (a) of revised Rule 438 would be required to participate in scheduled functional and performance testing of the Exchange's business continuity and disaster recovery plans, which shall not be less than once every 12 months.
Third, in paragraph (c) of revised Rule 438, the Exchange proposes to make
Fourth, in paragraph (d) of revised Rule 438, the Exchange proposes that at least three (3) months prior to a scheduled functional and performance testing of the Exchange's business continuity and disaster recovery plans, the Exchange will publish the criteria to be used by the Exchange to determine which Members will be required to participate in such testing and notify those Members that are required to participate based on such criteria.
Finally, in paragraph (e) of revised Rule 438, the Exchange proposes to make clear that Members not designated pursuant to standards established in paragraph (a) of revised Rule 438 are permitted to connect to the Exchange's backup systems and may participate in testing of such systems. Proposed paragraph (e) is consistent with Regulation SCI, which encourages “SCI entities to permit non-designated members or participants to participate in the testing of the SCE entity's BC/DR plans if they request to do so.”
The Exchange notes that it encourages all Members to connect to the Exchange's backup systems and to participate in testing of such systems. However, in adopting the requirements in revised Rule 438, the rule will subject only those Members to mandatory testing that the Exchange believes are, taken as a whole, the minimum necessary to maintain fair and orderly markets. The Exchange believes that designating Members to participate in mandatory testing because they, for example, account for a significant portion of the Exchange's overall volume or maintain exclusive responsibilities with respect to Exchange-listed securities is a reasonable means to ensure the maintenance of a fair and orderly market on the Exchange.
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,
The proposal will ensure that the Members necessary to ensure the maintenance of a fair and orderly market are properly designated consistent with Rule 1004 of Regulation SCI. Specifically, as proposed, the Exchange will adopt clear and objective criteria with respect to the designation of Members that are required to participate in the testing of the Exchange's BC/DR plans, as well as appropriate notification regarding such designation. As set forth in the SCI Adopting Release, “SROs have the authority, and legal responsibility, under Section 6 of the Exchange Act, to adopt and enforce rules (including rules to comply with Regulation SCI's requirements relating to BC/DR testing) applicable to their members or participants that are designed to, among other things, foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest.”
The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposal is not a competitive proposal but rather is necessary for the Exchange's compliance with Regulation SCI.
No written comments were solicited or received with respect to the proposed rule change.
The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow the Exchange to incorporate changes required under Regulation SCI, such as establishing standards for designating BCP/DR participants, prior to the November 3, 2015 compliance date. Accordingly, the Commission designates the proposed rule change to be operative upon filing.
At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B)
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
CBOE proposes to replace the reference to “Google, Inc.” with “Alphabet, Inc.” in Interpretation and Policy .22 to Rule 5.5.
The text of the proposed rule change is available on the Exchange's Web site (
In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
The purpose of this filing is to update Interpretation and Policy .22 to Rule 5.5 in order to reflect the new name for a class that is eligible for Mini-option contracts. Specifically, Rule 5.5.22 permits the Exchange to list Mini-option contracts on five option classes, including Google, Inc. (“Google”). Google recently reorganized and created a new public holding company called Alphabet, Inc. (“Alphabet”). The symbol “GOOGL” remains unchanged. As a result, the Exchange proposes to amend Rule 5.5.22 by replacing the name “Google, Inc.” with “Alphabet, Inc.” No other changes are being proposed by this filing.
The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
In particular, the current filing proposes to change the name “Google, Inc.” to “Alphabet, Inc.” in order to reflect the new ownership structure and is consistent with the Act because Rule 5.5.22 will now accurately reflect the name of this class that is eligible for Mini-options trading.
CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change does not impose any burden on intramarket competition because it applies to all Trading Permit Holders. There is no burden on intermarket competition as the proposed change would update Rule 5.5.22 to reflect the new name for a class that is eligible for Mini-options trading. As a result, there would be no substantive changes to the Exchange's operations or its rules.
The Exchange neither solicited nor received comments on the proposed rule change.
Because the foregoing proposed rule change does not:
A. Significantly affect the protection of investors or the public interest;
B. impose any significant burden on competition; and
C. become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Department of State.
The Department of State issued a Presidential Permit to Kinder-Morgan Cochin, LLC on November 3, 2015 to connect, operate, and maintain existing pipeline facilities at the U.S.-Canadian border in Detroit, Michigan acquired by that company for the transport of liquid hydrocarbons between the United States and Canada. The Department of State determined that issuance of this permit would serve the national interest. In making this determination and issuing the permit, the Department of State followed the procedures established under Executive Order 13337, and provided public notice and opportunity for comment. This permit replaces the 1972 Presidential Permit for these pipeline facilities, but authorizes no new
Office of Europe, Western Hemisphere and Africa, Bureau of Energy Resources, U.S. Department of State (ENR/EDP/EWA). 2201 C St. NW., Ste. 4843, Washington DC 20520. Attn: Deputy Director. Tel: 202-647-2041.
Additional information concerning the Kinder-Morgan Cochin, LLC pipeline facilities and documents related to the Department of State's review of the application for a Presidential Permit can be found at
By virtue of the authority vested in me as Under Secretary of State for Economic Growth, Energy, and the Environment, including those authorities under Executive Order 13337, 69 FR 25299 (2004), and Department of State Delegation of Authority 118-2 of January 26, 2006; having requested and received the views of members of the public and various federal agencies; I hereby grant permission, subject to the conditions herein set forth, to Kinder Morgan Cochin, LLC (hereinafter referred to as the “permittee”), incorporated in the State of Delaware, to connect, operate, and maintain existing pipeline facilities at the border of the United States and Canada in Detroit, Michigan for the transport of liquid hydrocarbons between the United States and Canada.
The term “facilities” as used in this permit means the relevant portion of the pipeline and any land, structures, installations or equipment appurtenant thereto.
The term “United States facilities” as used in this permit means those parts of the facilities located in the United States. The United States facilities consist of a ten-inch diameter pipeline in existence at the time of this permit's issuance extending from the international border between the United States and Canada underneath the Detroit River to the first block valve in the United States, located at a point onshore in Detroit, Michigan. The United States facilities also include certain appurtenant facilities.
This permit is subject to the following conditions:
(2) The connection, operation and maintenance of the United States facilities shall be in all material respects as described in the permittee's October 2, 2014 application for a Presidential Permit (the “Application”).
(2) The permittee shall hold harmless and indemnify the United States from any claimed or adjudged liability arising out of construction, connection, operation, or maintenance of the facilities, including but not limited to environmental contamination from the release or threatened release or discharge of hazardous substances and hazardous waste.
(3) The permittee shall maintain the United States facilities and every part thereof in a condition of good repair for their safe operation, and in compliance with prevailing environmental standards and regulations.
IN WITNESS WHEREOF, I, the Under Secretary of State for Economic Growth, Energy, and the Environment, have hereunto set my hand this 3rd day of November 2015 in the City of Washington, District of Columbia.
Federal Aviation Administration (FAA), DOT.
Notice and request for comments.
In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. 14 CFR part 121 prescribes the requirements governing air carrier operations. The information collected is used to determine air operators' compliance with the minimum safety standards and the applicants' eligibility for air operations certification.
Written comments should be submitted by December 10, 2015.
Interested persons are invited to submit written comments on the proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the attention of the Desk Officer, Department of Transportation/FAA, and sent via electronic mail to
Ronda Thompson at (202) 267-1416, or by email at:
Federal Aviation Administration (FAA), DOT.
Notice.
The FAA has determined that the minimum random drug and alcohol testing percentage rates for the period January 1, 2016, through December 31, 2016, will remain at 25 percent of safety-sensitive employees for random drug testing and 10 percent of safety-sensitive employees for random alcohol testing.
Ms. Vicky Dunne, Office of Aerospace Medicine, Drug Abatement Division, Program Policy Branch (AAM-820), Federal Aviation Administration, 800 Independence Avenue SW., Room 806,
Similarly, 14 CFR 120.217(c), requires the decision on the minimum annual random alcohol testing rate to be based on the random alcohol test violation rate. If the violation rate remains less than 0.50%, the Administrator may continue the minimum random alcohol testing rate at 10%. In 2014, the random alcohol test violation rate was 0.106%. Therefore, the minimum random alcohol testing rate will remain at 10% for calendar year 2016.
If you have questions about how the annual random testing percentage rates are determined please refer to the Code of Federal Regulations Title 14, section 120.109(b) (for drug testing), and 120.217(c) (for alcohol testing).
Federal Aviation Administration (FAA), DOT.
Notice and request for comments.
In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. Aeronautical information is required by the FAA in order to carry out agency missions such as those related to aviation flying safety, flight planning, airport engineering and federal grants analysis, aeronautical chart and flight information publications, and the promotion of air commerce as required by statute.
Written comments should be submitted by January 11, 2016.
Send comments to the FAA at the following address: Ronda Thompson, Room 441, Federal Aviation Administration, ASP-110, 950 L'Enfant Plaza SW., Washington, DC 20024.
Ronda Thompson at (202) 267-1416, or by email at:
Federal Aviation Administration (FAA), DOT.
Notice and request for comments.
In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. The commercial air tour operational data provided to the FAA and NPS will be used by the agencies as background information useful in the development of air tour management plans and voluntary agreements for purposes of meeting the mandate of the National Parks Air Tour Management Act (NPATMA) of 2000.
Written comments should be submitted by December 10, 2015.
Interested persons are invited to submit written comments on the proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the attention of the Desk Officer, Department of Transportation/FAA, and sent via electronic mail to
Ronda Thompson at (202) 267-1416, or by email at:
Federal Aviation Administration (FAA), DOT.
Notice and request for comments.
In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. To obtain type certification of a rotorcraft, an applicant must show that the rotorcraft complies with specific certification requirements. To show compliance, the applicant must submit substantiating data.
Written comments should be submitted by January 11, 2016.
Send comments to the FAA at the following address: Ronda Thompson, Room 441, Federal Aviation Administration, ASP-110, 950 L'Enfant Plaza SW., Washington, DC 20024.
Ronda Thompson at (202) 267-1416, or by email at:
Federal Aviation Administration (FAA), DOT.
Notice and request for comments.
In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. This information will be used to issue special flight authorizations for non-revenue transports and non-transport jet operations of Stage 2 airplanes at U.S. airports. Only a minimal amount of data is requested to identify the affected parties and determine whether the purpose for the flight is one of those enumerated by law.
Written comments should be submitted by January 11, 2016.
Send comments to the FAA at the following address: Ronda Thompson, Room 441, Federal Aviation Administration, ASP-110, 950 L'Enfant Plaza SW., Washington, DC 20024.
Ronda Thompson at (202) 267-1416, or by email at:
Federal Aviation Administration (FAA), DOT.
Notice and request for comments.
In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. The FAA Acquisition Management System establishes policies and internal procedures for FAA acquisition. The information collection is necessary to solicit, award, and administer contracts for supplies, equipment, services, facilities, and real property to fulfill FAA's mission.
Written comments should be submitted by January 11, 2016.
Send comments to the FAA at the following address: Ronda Thompson, Room 441, Federal Aviation Administration, ASP-110, 950 L'Enfant Plaza SW., Washington, DC 20024.
Ronda Thompson at (202) 267-1416, or by email at:
Federal Motor Carrier Safety Administration (FMCSA), DOT.
Notice of Unified Carrier Registration Plan Board of Directors meeting.
The meeting will be held on December 9, 2015, from 8 a.m. to 1 p.m. Pacific Standard Time.
The meetings will be open to the public at the Courtyard Marriott- San Diego Downtown, 530 Broadway, San Diego, CA 92101 and via conference call. Those not attending the meetings in person may call 1-877-422-1931, passcode 2855443940, to listen and participate in the meetings.
Open to the public.
The Unified Carrier Registration Plan Board of Directors (the Board) will continue its work in developing and implementing the Unified Carrier Registration Plan and Agreement and to that end, may consider matters properly before the Board.
Mr. Avelino Gutierrez, Chair, Unified Carrier Registration Board of Directors at (505) 827-4565.
Maritime Administration, Department of Transportation.
Notice.
As authorized by 46 U.S.C. 12121, the Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before December 10, 2015.
Comments should refer to docket number MARAD-2015-0120. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at
Linda Williams, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-0903, Email
As described by the applicant the intended service of the vessel ENCHANTED is:
The complete application is given in DOT docket MARAD-2015-0120 at
Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the
By Order of the Maritime Administrator.
Maritime Administration, Department of Transportation.
Notice.
As authorized by 46 U.S.C. 12121, the Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before December 10, 2015.
Comments should refer to docket number MARAD-2015-0127. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at
Linda Williams, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-0903, Email
As described by the applicant the intended service of the vessel EASTER B is:
The complete application is given in DOT docket MARAD-2015-0127 at
Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the
By Order of the Maritime Administrator.
Maritime Administration, Department of Transportation.
Notice.
As authorized by 46 U.S.C. 12121, the Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before December 10, 2015.
Comments should refer to docket number MARAD-2015-0125. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at
Linda Williams, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-0903, Email
As described by the applicant the intended service of the vessel GUNGHO is:
The complete application is given in DOT docket MARAD-2015-0125 at
Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the
By Order of the Maritime Administrator.
Maritime Administration, Department of Transportation.
Notice.
As authorized by 46 U.S.C. 12121, the Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before December 10, 2015.
Comments should refer to docket number MARAD-2014-0121. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at
Linda Williams, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-0903, Email
As described by the applicant the intended service of the vessel SAMBA is:
The complete application is given in DOT docket MARAD-2014-0121 at
Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the
By Order of the Maritime Administrator.
Maritime Administration, Department of Transportation.
Notice.
As authorized by 46 U.S.C. 12121, the Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before December 10, 2015.
Comments should refer to docket number MARAD-2015-0122. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at
Linda Williams, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-0903, Email
As described by the applicant the intended service of the vessel BLUE MOON is:
The complete application is given in DOT docket MARAD-2015-0122 at
Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the
By Order of the Maritime Administrator.
Maritime Administration, Department of Transportation.
Notice.
As authorized by 46 U.S.C. 12121, the Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before December 10, 2015.
Comments should refer to docket number MARAD-2015-0123. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at
Linda Williams, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-0903, Email
As described by the applicant the intended service of the vessel BELLA LUNA is:
The complete application is given in DOT docket MARAD-2015-0123 at
Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the
By Order of the Maritime Administrator.
Maritime Administration, Department of Transportation.
Notice.
As authorized by 46 U.S.C. 12121, the Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by MARAD. The vessel, and a brief description of the proposed service, is listed below.
Submit comments on or before December 10, 2015.
Comments should refer to docket number MARAD-2015-0124. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590. You may also send comments electronically via the Internet at
Linda Williams, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23-453, Washington, DC 20590. Telephone 202-366-0903, Email
As described by the applicant the intended service of the vessel TIERRA LYNN is:
The complete application is given in DOT docket MARAD-2015-0124 at
Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the
By Order of the Maritime Administrator.
Bureau of the Fiscal Service, Treasury.
Notice of rate to be used for Federal debt collection, and discount and rebate evaluation.
The Secretary of the Treasury is responsible for computing and publishing the percentage rate that is used in assessing interest charges for outstanding debts owed to the Government (The Debt Collection Act of 1982, as amended (codified at 31 U.S.C. Section 3717)). This rate is also used by agencies as a comparison point in evaluating the cost-effectiveness of a cash discount. In addition, this rate is used in determining when agencies should pay purchase card invoices when the card issuer offers a rebate (5 CFR 1315.8). Notice is hereby given that the applicable rate for calendar year 2016 is 1.00 percent.
January 1, 2016 through December 31, 2016.
E-Commerce Division, Bureau of the Fiscal Service, Department of the Treasury, 401 14th Street SW., Washington, DC 20227 (Telephone: 202-874-9428).
The rate reflects the current value of funds to the Treasury for use in connection with Federal Cash Management systems and is based on investment rates set for purposes of Public Law 95-147, 91 Stat. 1227 (October 28, 1977). Computed each year by averaging Treasury Tax and Loan (TT&L) investment rates for the 12-month period ending every September 30, rounded to the nearest whole percentage, for applicability effective each January 1. Quarterly revisions are made if the annual average, on a moving basis, changes by 2 percentage points. The rate for calendar year 2016 reflects the average investment rates for the 12-month period that ended September 30, 2015.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Revenue Procedure 2003-36, Industry Issue Resolution Program.
Written comments should be received on or before January 11, 2016 to be assured of consideration.
Direct all written comments to Michael A. Joplin, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or copies of this revenue procedure should be directed to Martha R. Brinson, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the Internet at
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Distributions of Stock and Stock Rights.
Written comments should be received on or before January 11, 2016 to be assured of consideration.
Direct all written comments to Michael A. Joplin, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or copies of the regulation should be directed to Martha R. Brinson, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the Internet at
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13(44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Form 14411, Systemic Advocacy Issue Submission form.
Written comments should be received on or before January 11, 2016 to be assured of consideration.
Direct all written comments to Michael Joplin, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or copies of the form and instructions should be directed to Allan Hopkins, at Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the internet at
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)).
Written comments should be received on or before January 11, 2016 to be assured of consideration.
Direct all written comments to Michael Joplin, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or regulations should be directed to Allan Hopkins, at Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the Internet, at
The regulation affects taxpayers that exclude discharge of indebtedness from gross income under Code section 108. The collection of information is required for a taxpayer to elect to reduce the adjusted bases of depreciable property under section 108(b)(5), to elect to treat section 1221(l) real property as either depreciable property or depreciable real property, and to account for a partnership interest as either depreciable property or depreciable real property.
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning RP 2006-30, Restaurant Tips—Attributed Tip Income Program (ATIP).
Written comments should be received on or before January 11, 2016 to be assured of consideration.
Direct all written comments to Michael Joplin, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or copies of the form and instructions should be directed to Allan Hopkins, at Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the internet at
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13(44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning required distributions from retirement plans (§ 1.403(b)-3).
Written comments should be received on or before January 11, 2016 to be assured of consideration.
Direct all written comments to Michael Joplin, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or copies of the regulations should be directed to Allan Hopkins, at Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the internet at
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning limitations on corporate net operating loss carryforwards.
Written comments should be received on or January 11, 2016to be assured of consideration.
Direct all written comments to Michael Joplin, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or copies of the regulation should be directed to Allan Hopkins, or at Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the internet, at
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Request for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13(44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Form 5754, Statement by Person(s) Receiving Gambling Winnings.
Written comments should be received on or before January 11, 2016 to be assured of consideration.
Direct all written comments to Michael Joplin, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or copies of the form and instructions should be directed to Allan Hopkins at Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the internet at
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Internal Revenue Service (IRS), Treasury.
Notice.
The Charter for the Information Reporting Program Advisory Committee (IRPAC), has been renewed for a two-year period beginning October 28, 2015.
Ms. Caryl Grant, National Public Liaison, at
Notice is hereby given under section 10(a)(2) of the Federal Advisory Committee Act, 5 U.S.C. App. (1988), and with the approval of the Secretary of the Treasury to announce the renewal of the Information Reporting Program Advisory Committee (IRPAC). The purpose of the IRPAC is to provide an organized public forum for discussion of relevant information reporting issues of mutual concern as between Internal Revenue Service (“IRS”) officials and representatives of the public. Advisory committee members convey the public's perception of IRS activities, advise with respect to specific information reporting administration issues, provide constructive observations regarding current or proposed IRS policies, programs, and procedures, and propose improvements to information reporting operations and the Information Reporting Program. Membership is balanced to include stakeholder segmentation, geographic location, industry representation and influence in channel communication and preferences, technology adaptation, life cycle data reporting, economics and specific product/service usage.
Notice.
The Department of Veterans Affairs (VA) is seeking nominees to be considered for membership on the VA Geriatrics and Gerontology Advisory Committee (Committee).
The VA Geriatrics and Gerontology Advisory Committee (Committee) is authorized by statute, title 38 U.S.C. 7315, to: (1) Advise the Secretary on all matters pertaining to geriatrics and gerontology; (2) assess (through an evaluation process that includes a site visit conducted no later than 3 years after its establishment) each new VA Geriatric Research, Education, and Clinical Center (GRECC), on its ability to achieve its established mission; (3) assess the capability of VA to provide high-quality geriatric, extended, and other health care services to eligible Veterans, taking into consideration the likely demand for such services from such Veterans; (4) assess the current and projected needs of eligible Veterans for geriatric, extended care, and other health care services from VA and its activities and plans designed to meet such needs; and (5) perform such additional functions as the Secretary or
In accordance with the statute, the members of the Committee are non-Federal employees appointed by the Secretary from the general public, and should have demonstrated interest and expertise in research, education, and clinical activities related to aging. Members serve as Special Government Employees. The Committee meets at least once annually. Subgroups of the Committee, consisting of the Chair and at least two other self-selected members and staff, conduct up to a total of five site visits each year to new and existing GRECCs and the VA medical centers that host them. In accordance with Federal Travel Regulations, VA will cover travel expenses—to include per diem—for all members of the Committee, for any travel associated with official Committee duties.
The Secretary appoints each Committee member for a period of up to 4 years. The Secretary may reappoint each member for one additional term. A term of service for any member may not exceed 8 years. Self-nominations and nominations of Veterans and non-Veterans will be accepted. In accordance with OMB guidance, federally-registered lobbyists may not serve on Federal advisory committees in their individual capacity. Additional information regarding this issue can be found at:
The Department makes every effort to ensure that the membership of its advisory committees is fairly balanced in terms of points of view represented. The Department also strives for balanced membership regarding regional representation, race/ethnicity representation, professional expertise, war era service, gender, former enlisted or officer status, and branch of service. Other considerations include longevity of military service, ability to handle complex issues, and ability to contribute to the assessment of health care and benefits needs of aging Veterans.
Nomination packages must be typed (12 point font) and include: (1) A cover letter from the nominee, and (2) a current resume that is no more than four pages in length. The cover letter must summarize: The nominees' interest in serving on the committee and contributions she/he can make to the work of the committee; expertise in aging-related research, clinical care, and education; the military branch affiliation and timeframe of military service, if any; and any relevant Veterans service activities s/he is currently engaged in. Finally, please include in the cover letter the nominee's complete contact information (name, address, email address, and phone number); and a statement confirming that s/he is not a Federal employee or a Federally-registered lobbyist. The resume should show professional work experience. Any letters of nomination from organizations or other individuals should accompany the package when it is submitted.
Nominations for membership on the Committee must be received by November 30, 2015, no later than 4:00 p.m., Eastern Standard Time. All nomination packages should be sent to: Ms. Marcia Holt-Delaney, Veterans Health Administration (10P4G), Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC, 20420.
For additional information, including a copy of the Committee's most recent charter and a list of the current membership, contact Dr. Kenneth Shay, Designated Federal Officer for the Committee, at
Veterans Health Administration, Department of Veterans Affairs.
Notice.
In compliance with the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3521), this notice announces that the Veterans Health Administration (VHA), Department of Veterans Affairs, will submit the collection of information abstracted below to the Office of Management and Budget (OMB) for review and comment. The PRA submission describes the nature of the information collection and its expected cost and burden and includes the actual data collection instrument.
Written comments and recommendations on the proposed collection of information should be received on or before December 10, 2015.
Submit written comments on the collection of information through
Crystal Rennie, Enterprise Records Service (005R1B), Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 632-7492 or email
Under the PRA of 1995 (Public Law 104-13; 44 U.S.C. 3501—3521), Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. This request for comment is being made pursuant to Section 3506(c)(2)(A) of the PRA.
With respect to the following collection of information, VHA invites comments on: (1) Whether the proposed collection of information is necessary for the proper performance of VHA's functions, including whether the information will have practical utility; (2) the accuracy of VHA's estimate of the burden of the proposed collection of information; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology.
Legal authority for this data collection is found under 38 U.S.C., Part I, Chapter 5, Section 527 that authorizes the collection of data that will allow measurement and evaluation of the Department of Veterans Affairs Programs, the goal of which is improved health care for veterans.
An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The
By direction of the Secretary.
Department of Veterans Affairs.
The Department of Veterans Affairs gives notice under the Federal Advisory Committee Act, 5 U.S.C., App. 2, that a meeting of the National Research Advisory Council, previously scheduled to be held in Room 730, on December 9, 2015, at the Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC, is hereby postponed. The Notice of Meeting appeared in the
If you have any questions, please contact Pauline Cilladi-Rehrer, Designated Federal Officer, at
Securities and Exchange Commission.
Proposed rules.
We are proposing amendments to Rule 147 under the Securities Act of 1933, which currently provides a safe harbor for compliance with the Section 3(a)(11) exemption from registration for intrastate securities offerings. Our proposal would modernize the rule and establish a new exemption to facilitate capital formation, including through offerings relying upon recently adopted intrastate crowdfunding provisions under state securities laws. The proposed amendments to the rule would eliminate the restriction on offers and ease the issuer eligibility requirements, while limiting the availability of the exemption at the federal level to issuers that comply with certain requirements of state securities laws.
We further propose rule amendments to Rule 504 of Regulation D under the Securities Act to facilitate issuers' capital raising efforts and provide additional investor protections. The proposed amendments to Rule 504 would increase the aggregate amount of securities that may be offered and sold in any twelve-month period from $1 million to $5 million and disqualify certain bad actors from participation in Rule 504 offerings.
Comments should be received by January 11, 2016.
Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment forms (
• Send an email to
• Use the Federal Rulemaking Portal (
• Send paper comments to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
Studies, memoranda or other substantive items may be added by the Commission or staff to the comment file during this rulemaking. A notification of the inclusion in the comment file of any such materials will be made available on the SEC's Web site. To ensure direct electronic receipt of such notifications, sign up through the “Stay Connected” option at
Anthony G. Barone, Special Counsel, or Zachary O. Fallon, Special Counsel, Office of Small Business Policy, Division of Corporation Finance, at (202) 551-3460, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-3628.
We propose to amend Rule 147
Today's proposals are part of the Commission's efforts to assist smaller companies with capital formation consistent with other public policy goals, including investor protection. These proposals also complement recent efforts by the U.S. Congress,
We propose to modernize and expand Rule 147 under the Securities Act, a safe harbor for intrastate offerings exempt from registration pursuant to Securities Act Section 3(a)(11).
We also propose to amend Rule 504 of Regulation D under the Securities Act to increase the aggregate amount of securities that may be offered and sold pursuant to Rule 504 in any twelve-month period from $1 million to $5 million and to disqualify certain bad actors from participation in Rule 504 offerings. The proposed increase would facilitate capital formation by increasing the flexibility that state securities regulators have to implement coordinated review programs to facilitate regional offerings.
The proposed amendments to Rule 147 would establish a new Securities Act exemption for intrastate offerings of securities by companies doing business in-state, including offerings relying upon newly adopted and proposed crowdfunding provisions under state securities laws. The proposed amendments seek to modernize Rule 147, while retaining the underlying intrastate character of Rule 147 that permits companies to raise money from investors within their state pursuant to state securities laws without concurrently registering the offers and sales at the federal level.
Securities Act Section 3(a)(11) provides an exemption from registration under the Securities Act for, “[a]ny security which is part of an issue offered and sold only to persons resident within a single State or Territory, where the issuer of such security is a person resident and doing business within, or, if a corporation, incorporated by and doing business within, such State or Territory.”
Section 3(a)(11) and the Commission's Rule 147 safe harbor limit both
• Derive at least 80% of its consolidated gross revenues in-state;
• have at least 80% of its consolidated assets in-state; and
• intend to use and use at least 80% of the net proceeds from an offering conducted pursuant to Rule 147 in connection with the operation on an in-state business or real property.
Market participants and commenters have indicated that the combined effect of Section 3(a)(11)'s statutory limitation on offers and the prescriptive threshold requirements of Rule 147 unduly limit the availability of the exemption for local companies that would otherwise conduct intrastate offerings.
A number of states have adopted and/or enacted crowdfunding
The most common concerns expressed about Rule 147 are:
• The limitation of offers to in-state residents only, which raises questions about the proper use of the Internet for these offerings;
• The limitation of eligible issuers only to those that are incorporated or organized in-state, which excludes local issuers with local operations that incorporate or organize in a different state for business reasons; and
• The limitation of eligible issuers only to those that can satisfy each of the three 80% thresholds concerning their revenues, assets and use of net proceeds in order for the issuers to be deemed “doing business” within a state or territory, which unduly restricts the local businesses that may rely upon the exemption for local financings in their home state or territory.
The proposed amendments to Rule 147 would amend these requirements and revise the rule to allow an issuer to engage in any form of general solicitation or general advertising, including the use of publicly accessible Internet Web sites, to offer and sell its securities, so long as all sales occur within the same state or territory in which the issuer's principal place of business is located, and the offering is registered in the state in which all of the purchasers are resident or is conducted pursuant to an exemption from state law registration in such state that limits the amount of securities an issuer may sell pursuant to such exemption to no more than $5 million in a twelve-month period and imposes an investment limitation on investors. The proposed amendments would define an issuer's principal place of business as the location in which the officers, partners, or managers of the issuer primarily direct, control and coordinate the activities of the issuer and further require the issuer to satisfy at least one of four threshold requirements that would help ensure the in-state nature of the issuer's business.
As noted above, Rule 147 was adopted as a safe harbor for compliance with Section 3(a)(11). Our proposed amendments to the rule, however, would allow an issuer to make offers accessible to out-of-state residents and to be incorporated out-of-state, so long as sales are made only to in-state residents and the issuer's principal place of business is in-state and it satisfies at least one additional requirement that would further demonstrate the in-state nature of the issuer's business. As proposed, an issuer would only be able to avail itself of the
To satisfy Section 3(a)(11) and the current Rule 147 safe harbor, all of the securities in an offering must be both offered
When Congress enacted Section 3(a)(11) in 1934, the legislative history stated, among other things, that “a person who comes within the purpose of the exemption, but happens to use a newspaper for the circulation of his advertising literature, which newspaper is transmitted in interstate commerce, does not thereby lose the benefits of the exemption.”
The Commission released further guidance on Section 3(a)(11) in 1961 that restated the staff guidance in the 1937 Letter of General Counsel.
As noted above, however, market participants and commenters have indicated that Section 3(a)(11)'s statutory limitation on offers unduly limits the availability of the exemption, for example, by limiting the manner in which issuers may communicate with or locate potential in-state investors over the Internet.
Given that amended Rule 147 would allow offers to be accessible by out-of-state residents, the proposed amendments would require an issuer to include a prominent disclosure on all offering materials used in connection with a Rule 147 offering, stating that sales will be made only to residents of the same state or territory as the issuer.
1. Should we amend Rule 147 to eliminate the limitation on offers to in-state residents, as proposed? Why or why not? Please explain.
2. Should we retain the existing safe harbor and create a new rule pursuant to our authority under Section 28 to reflect our proposed revisions? Why or why not? How would our proposed revisions interact with other recent rules adopted pursuant to the JOBS Act, if at all?
3. Should we adopt the proposed disclosure requirement for all offering materials used in reliance on this rule? Why or why not? Should we require additional or different disclosure? If so, what language would be appropriate?
Rule 147 currently requires issuers to be incorporated or organized under the laws of the state or territory in which
Therefore, for corporations, limited partnerships, trusts, or other forms of business organizations, we propose to eliminate the current requirement of Rule 147 that limits the availability of the rule to issuers organized in the state in which an offering takes place.
The proposed amendments also would replace the current rule's “principal office” requirement for an issuer, such as a general partnership or other form of business organization that is not organized under any state or territorial law,
4. Should we amend Rule 147 to eliminate the requirement that entities be incorporated or organized under the laws of the state in which the offering takes place, as proposed? Additionally, should we limit availability of the exemption to issuers organized or incorporated in the United States or one of its territories? Why or why not? Please explain.
5. Should we amend Rule 147, as proposed, to eliminate the current issuer residence requirement, while continuing to require an issuer to have a principal place of business in the state in which an intrastate offer and sale takes place? Would this requirement, in conjunction with the additional proposed requirements for an issuer to demonstrate the in-state nature of its business
6. In addition to requiring that an issuer have its principal place of business in the state where the offer and sale occurs, should we also require that the issuer be registered in-state as an out-of-state entity and/or that the issuer have obtained all licenses and registrations necessary to lawfully conduct business in-state? Why or why not?
The Section 3(a)(11) intrastate offering exemption allows businesses to raise money within the state from investors who are more likely than those outside the state to be familiar with the issuer and its management. Accordingly, the doing business requirement of Section 3(a)(11) has traditionally been viewed strictly.
Rule 147 followed these concepts by setting forth three 80% threshold tests for the issuer to be deemed “doing business” in-state. Specifically, Rule 147(c)(2) deems an issuer to be doing business in-state if its principal office is located within the state and at least:
• 80% of its consolidated gross revenues are derived from the operation of a business or of real property located in or from the rendering of services within such state or territory;
• 80% of its consolidated assets are located within such state or territory; and
• 80% of the net proceeds from the offering are intended to be used by the issuer, and are in fact used, in connection with the operation of a business or of real property, the purchase of real property located in, or the rendering of services within such state or territory.
We propose to simplify the doing business in-state determination by amending the current rule requirements so that an issuer's ability to rely on the rule would be based on the location of the issuer's principal place of business, as opposed to its “principal office.”
As discussed more fully in Section II.B.4.c below, we believe that our rules should continue to require that the securities sold in an intrastate offering in one state should have to come to rest within such state before sales are permitted to out-of-state residents.
Additionally, we propose to require issuers to satisfy an additional criterion that we believe would provide further assurance of the in-state nature of the issuer's business within the state in which the offering takes place. For these purposes, we propose to retain the 80% threshold tests of the current rule in modified form with the addition of an alternative test based on the location of a majority of the issuer's employees.
As proposed, and in addition to the requirement that an issuer have its principal place of business in-state, an issuer would be required to meet at least one of the following requirements:
• The issuer derived at least 80% of its consolidated gross revenues from the operation of a business or of real property located in or from the rendering of services within such state or territory;
• The issuer had at the end of its most recent semi-annual fiscal period prior to the first offer of securities pursuant to the exemption, at least 80% of its consolidated assets located within such state or territory;
• The issuer intends to use and uses at least 80% of the net proceeds to the issuer from sales made pursuant to the exemption in connection with the operation of a business or of real property, the purchase of real property located in, or the rendering of services within such state or territory;
• A majority of the issuer's employees are based in such state or territory.
We believe the proposed amendments would expand capital raising opportunities for companies while continuing to require them to have an in-state presence sufficient to justify reliance on the exemption. Given the increasing “interstate” nature of small business activities, it has become increasingly difficult for companies, even smaller companies that are physically located within a single state or territory, to satisfy all of the residence requirements of current Rule 147(c)(2).
In addition, states could decide whether to adopt specific additional requirements not specifically contemplated in this proposal that are consistent with their respective interests in facilitating capital formation and protecting their resident investors in intrastate securities offerings within their jurisdiction.
7. Should we amend Rule 147 as proposed to require an issuer to have an in-state principal place of business and satisfy at least one of four alternative requirements that demonstrate the in-state nature of the issuer's business? Why or why not?
8. As proposed, should we limit the ability of issuers that have previously conducted an intrastate offering in reliance on proposed Rule 147, but that have since changed their principal place of business, to conduct an offering in reliance on the proposed rule in a different state until all of the securities sold in a prior intrastate offering have come to rest in the state in which the previous offering took place? Why or why not? Or, would the integration provisions of proposed Rule 147(g) sufficiently prevent an issuer from conducting two intrastate offerings pursuant to proposed Rule 147 within a short period of time, such that the proposed limitation would not be necessary? Should the proposed limitation be longer (
9. Should we modify, as proposed, the current 80% threshold requirements of Rule 147(c)(2)(i)-(iii) to no longer require an issuer to satisfy all of the thresholds and include an alternative requirement based on the location of a majority of the issuer's employees? Why or why not? If not, should we retain the current threshold requirements for an issuer to be deemed “doing business” within a state or territory, but at lower percentage thresholds? If so, please specify the appropriate percentage thresholds. Or should we use different alternative threshold tests than under the current or proposed rules? Please explain.
10. As proposed, if we retain the threshold requirements in modified form, should issuers only be required to meet one or more of the requirements? Should they be required to meet two or more of the requirements? Please explain.
11. Do the proposed 80% threshold requirements provide sufficient guidance to issuers as to how to comply with such requirements? If not, what additional guidance, rules or revisions to the proposed rules should the Commission provide to clarify compliance with the proposed requirements?
12. Is the proposed alternative requirement that an issuer have derived at least 80% of its consolidated gross revenues in-state an appropriate indicator of in-state business activities for purposes of an issuer's eligibility for the proposed exemption? Does this alternative requirement provide sufficient clarity for issuers that would seek to comply with it? As proposed, should this requirement continue to require an issuer to calculate gross revenue on a consolidated basis? Please explain.
13. Is the proposed alternative requirement that the issuer had, at the end of its most recent semi-annual fiscal period prior to an initial offer of securities in any offering or subsequent offering pursuant to the exemption, at least 80% of its consolidated assets located in-state an appropriate indicator of in-state business activities for purposes of an issuer's eligibility for the proposed exemption? Does this alternative requirement provide sufficient clarity for issuers that would seek to comply with it? As proposed, should this requirement continue to require an issuer to calculate assets by including the assets of its subsidiaries on a consolidated basis? Please explain.
14. Is the proposed alternative requirement that the issuer intend to use and use at least 80% of the net proceeds from sales made pursuant to the exemption in connection with the operation of a business or of real property, the purchase of real property located in, or the rendering of services within such state or territory an appropriate indicator of in-state business activities for purposes of an issuer's eligibility for the proposed exemption? Does this alternative requirement provide sufficient clarity for issuers that would seek to comply with it? Please explain.
15. As proposed, and in addition to the proposed alternative 80% threshold requirements, should we add an alternative threshold requirement based on the location of a majority of an issuer's employees? Why or why not?
16. In addition to the requirement in proposed Rule 147(c)(1) that an issuer have a principal place of business in-state, does the proposed requirement that an issuer be able to satisfy the requirements of proposed Rule 147(c)(2) by having a majority of its employees based in such state or territory provide a sufficient basis to determine the in-state nature of the issuer's business? Why or why not? If not, what additional or alternative criteria could we add to the proposed requirement to provide a sufficient basis?
17. As proposed, should we limit availability of the exemption to those issuers that can satisfy the proposed “principal place of business” definition and at least one of the additional requirements of proposed Rule 147(c)(2) that would demonstrate the in-state nature of the issuer's business? Why or why not? Please explain.
18. Is our proposed definition of “principal place of business” appropriate? Why or why not? Would the proposed definition of “principal place of business” alone adequately establish in-state status for purposes of determining eligibility to conduct an offering pursuant to the exemption at the federal level? Are there any additional or alternative requirements that should be included in the rule to establish in-state status?
Current Rule 147(d) requires that offers and sales of securities pursuant to the rule be made only to persons resident within the state or territory of which the issuer is a resident.
Consistent with the requirements in Regulation D,
Consistent with our proposal to permit issuers to satisfy the purchaser residency requirement by establishing a reasonable belief that such purchasers are in-state residents, we propose to eliminate the current requirement in Rule 147 that issuers obtain a written representation from each purchaser as to his or her residence.
Additionally, we are concerned that maintaining the current requirement for an issuer to obtain a written representation from purchasers of in-state residency status may cause confusion with the proposed reasonable belief standard. Issuers, particularly smaller issuers likely to conduct intrastate offerings, may mistakenly believe that obtaining a written representation from purchasers of in-state residency status would, without more, be sufficient to establish a reasonable belief that such purchasers are in-state residents, which, as noted above, would not be the case. For these reasons, we propose to eliminate the requirement that issuers obtain a written representation from purchasers as to their in-state residency. We are, however, seeking comment on whether this requirement should be retained.
19. Should we add a reasonable belief standard to the issuer's determination as to the residence of the purchaser at the time of the sale of the securities, as proposed? Why or why not?
20. Should we eliminate the requirement to obtain a written representation from the purchaser, as proposed? Why or why not? Alternatively, should we retain the requirement to obtain a written representation but supplement it with a reasonable belief standard? Why or why not? What additional benefit, if any, would be provided by supplementing the current written representation requirement with a reasonable belief standard?
21. Should the rules provide a safe harbor for determining an individual purchaser's residence, based upon certain objective criteria, such as: (1) The jurisdiction in which a person owns or leases its primary home, (2) the jurisdiction in which a person maintains certain other indicia of residence (such as a driver's license, voting registration, tax situs), or (3) the jurisdiction in which a person's principal occupation is based? Why or why not? Are there other criteria that should be used to establish such a safe harbor?
The proposed amendments also would define the residence of a purchaser that is a legal entity, such as a corporation, partnership, trust or other form of business organization, as the location where, at the time of the sale, the entity has its principal place of business.
22. Should we define the residence of a purchaser that is a legal entity, such as a corporation, partnership, trust or other form of business organization, as the location where, at the time of the sale, the entity has its principal place of business? Why or why not? Should we define principal place of business differently for this purpose? If so, how should we define it?
23. Current Rule 147(d)(3) provides that an entity organized for the specific purpose of acquiring the securities offered pursuant to the rule is not treated as a resident of the state or territory unless all of the beneficial owners of such organization are also residents of such state or territory.
Under current Rule 147(e), “during the period in which securities that are part of an issue are being offered and sold by the issuer, and for a period of nine months from the date of the last sale by the issuer of such securities, all resales of any part of the issue, by any person, shall be made only to persons resident within such state or territory.”
As the Commission previously noted when discussing resales pursuant to Section 3(a)(11), the requirement that the entire distribution of securities pursuant to the intrastate exemption be offered and sold to in-state residents should not be read to suggest “that securities which have actually come to rest in the hands of resident investors, such as persons purchasing without a view to further distribution or resale to non-residents, may not in due course be resold by such persons, whether directly or through dealers or brokers, to non-residents without in any way affecting the exemption.”
The Commission's approach in the 1961 Release reflects the view that the determination as to when a given purchase of securities in an intrastate offering has come to rest in-state depends less on a defined period of time after the final sale by the issuer in such offering than it does on whether a resident purchaser—that seeks to resell any securities purchased in such an offering—has taken the securities “without a view to further distribution or resale to non-residents.”
For these reasons, we propose to amend the limitation on resales in Rule 147(e) to provide that “for a period of nine months from the date of the sale by the issuer of a security sold pursuant to this rule, any resale of such security by a purchaser shall be made only to persons resident within such state or territory, as determined pursuant to paragraph (d) of this rule.”
Additionally, as mentioned above, the application of Rule 147(e) in the context of the Section 3(a)(11) safe harbor may give rise to uncertainty in the offering process that we propose to address in the amended rules. Currently, Rule 147(a) requires issuers to comply with all of the terms and conditions of the rule in order for an offering to come within the safe harbor.
While we propose to maintain the resale limitations in Rule 147(e), in the modified form discussed above, we also propose to amend Rule 147(b) so that an issuer's ability to rely on Rule 147 would no longer be conditioned on a purchaser's compliance with Rule 147(e).
24. Should we amend the rule, as proposed, to impose a limitation on resales by resident purchasers to non-residents based on the date of sale by the issuer to the relevant purchaser rather than based on the date when the offering terminates? Why or why not?
25. Is the proposed nine-month period appropriate? Should it be longer or shorter? If so, what would be the appropriate amount of time (
26. Instead of adopting the limitation on resales proposed in Rule 147(e), should securities issued under amended Rule 147 be considered “restricted securities” under Rule 144(a)(3)?
27. As proposed, should we no longer condition an issuer's ability to satisfy Rule 147 on investor compliance with Rule 147(e)? Why or why not? Are there any risks to investors posed by the proposed revisions to Rule 147(b) that would no longer condition the
The integration safe harbor of current Rule 147(b)(2) provides that offers or sales of securities that take place either prior to the six-month period immediately preceding, or after the six-month period immediately following, any Rule 147 offering will not be integrated with any offers or sales of securities by the issuer made in reliance on the safe harbor.
1. are the offerings part of a single plan of financing;
2. do the offerings involve issuance of the same class of security;
3. are the offerings made at or about the same time;
4. is the same type of consideration to be received; and
5. are the offerings made for the same general purpose.”
Integration safe harbors provide issuers, particularly smaller issuers whose capital needs often change, with valuable certainty about their eligibility to comply with an exemption from Securities Act registration.
The concept of integration has evolved since the adoption of Rule 147 in 1974,
The proposed Rule 147 safe harbor would include any prior offers or sales of securities by the issuer, as well as certain subsequent offers or sales of securities by the issuer occurring within six months after the completion of an offering exempted by Rule 147. As proposed, offers and sales made pursuant to Rule 147 would not be integrated with:
• Prior offers or sales of securities; or
• Subsequent offers or sales of securities that are:
• Registered under the Act, except as provided in Rule 147(h);
• Exempt from registration under Regulation A (17 CFR 230.251
• Exempt from registration under Rule 701 (17 CFR 230.701);
• Made pursuant to an employee benefit plan;
• Exempt from registration under Regulation S (17 CFR 230.901 through 230.905);
• Exempt from registration under section 4(a)(6) of the Act (15 U.S.C. 77d(a)(6)); or
• Made more than six months after the completion of an offering conducted pursuant to this rule.
As with Rule 251(c) of Regulation A, the proposed safe harbor from integration provided by proposed Rule 147(g) would expressly provide that any offer or sale made in reliance on the rule would not be integrated with any other offer or sale made either before the commencement of, or more than six months after, the completion of the Rule 147 offering. In other words, for transactions that fall within the scope of the safe harbor, issuers would not have to conduct an independent integration analysis of the terms of any offering being conducted under the provisions of another rule-based exemption in order to determine whether the two offerings would be treated as one for purposes of qualifying for either exemption. This bright-line rule would assist issuers, particularly smaller issuers, in analyzing certain transactions, but would not address the issue of potential offers or sales that occur concurrently with, or close in time after, a Rule 147 offering.
Consistent with the current integration guidance in Preliminary Note 3 to Rule 147, our proposed amendments would clarify that, if the safe harbor does not apply, whether subsequent offers and sales of securities would be integrated with any securities offered or sold pursuant to this rule would depend on the particular facts and circumstances. There would be no presumption that offerings outside the integration safe harbors should be integrated.
An offering made in reliance on Rule 147 would not be integrated with another exempt offering made concurrently by the issuer, provided that each offering complies with the requirements of the exemption that is being relied upon for the particular offering.
Consistent with our approach to integration in Rule 251(c), we are proposing that offers or sales made in reliance on Rule 147 should not be integrated with subsequent offers or sales that are registered under the Securities Act, except as provided under our proposed paragraph (h) to Rule 147, or qualified by the Commission pursuant to Regulation A. While prior offers or sales of securities made in reliance on Rule 147 are currently not integrated with subsequent Regulation A offerings,
Additionally, subsequent offers or sales pursuant to Securities Act Rule 701 or an employee benefit plan would be included in the proposed Rule 147(g) integration safe harbor. While these types of offerings to employees and to persons that provide similar functions for the issuer may provide the issuer with capital, they are primarily compensatory in nature and benefit the issuer and its employees in a manner that is distinct from other types of securities offerings, such as by aligning employee and company interests. For these reasons, we believe that these types of compensatory employee benefit offerings should be included in the safe harbor, if they occur subsequent to a Rule 147 offering.
We also propose to include subsequent offers or sales made pursuant to Regulation S
Additionally, we propose to include in the list of transactions covered by the Rule 147 safe harbor subsequent offers or sales of securities made pursuant to rules we are concurrently adopting today in a companion release for securities-based crowdfunding transactions under Title III of the JOBS Act.
28. As proposed, should we include any prior offers or sales of securities made by the issuer before the start of a Rule 147 offering in the Rule 147(g) integration safe harbor? Why or why not?
29. Should the Rule 147(g) integration safe harbor include, as proposed, the list of subsequent offers or sales of securities by the issuer that may be made within six months after the termination of the Rule 147 offering without being subject to integration? Why or why not?
30. Should we expand the list of subsequent offers or sales of securities by the issuer that may be made within six months after the termination of the Rule 147 offering without being subject to integration to include other types of offers and sales of securities by the issuer? Alternatively, should we narrow the list of subsequent offers or sales of securities included in the integration safe harbor? Why or why not? Please explain.
31. Should we include language in the rule text expressly stating that an offering made in reliance on Rule 147 would not be integrated with another exempt offering made concurrently by the issuer, provided that each offering complies with the requirements of the exemption that is being relied upon for the particular offering? Why or why not?
32. Should we include a new paragraph (h) to Rule 147, as proposed, concerning offers to investors other than qualified institutional investors and institutional accredited investors within 30 calendar days prior to a registered offering? Why or why not?
Currently, Rule 147(f)(3) requires issuers, in connection with any offers or sales pursuant to the rule, to disclose, in writing, the limitations on resale contained in Rule 147(e)
Specifically, we propose to clarify in the text of the amended rule the specific language of the required disclosure and that such disclosure should be prominently provided to each offeree and purchaser at the time any offer or sale is made by the issuer to such person pursuant to the exemption.
As noted above, we propose to retain the substance of the disclosure requirements of current Rule 147(f)(3), in modified form, in the amended rules. As proposed, Rule 147(f)(3) would require issuers to make specified disclosures to offerees and purchasers about the limitations on resale contained in proposed Rule 147(e) and the legend requirement of proposed Rule 147(f)(1)(i), but would no longer require issuers to disclose to offerees and purchasers the stop transfer instructions provided by an issuer to its transfer agent
33. As proposed, should we modify the requirements of current Rule 147(f)(3) to require issuers to disclose to offerees and purchasers the resale limitations of Rule 147(e) and the legend requirement of Rule 147(f)(1)(i) at the time any such offer or sale is made, but no longer require an issuer to disclose to such persons the stop transfer instructions to its transfer agent, if any, and the provisions of Rule 147(f)(2) regarding the issuance of new certificates during the Rule 147(e) resale period?
34. As proposed, should we permit the disclosures required by Rule 147(f)(3) to be provided orally? Should we instead require these disclosures to be made in writing, as under the current rule? Alternatively, should we no longer require these disclosures to be provided to offerees, while continuing to require that they be provided to purchasers? Or, prior to making any sales, should we require issuers that only make oral offers to provide, in addition to the required oral disclosure, written disclosure to offerees a reasonable time before any sales are made to such persons? Why or why not?
35. Should the amendments to Rule 147 include a substantial compliance provision, similar to the provision in Rule 508 of Regulation D,
36. Should we amend Rule 147 to make the exemption available for secondary distributions? Why or why not?
We believe the proposed amendments to Rule 147 would facilitate capital formation by smaller companies seeking to raise capital in-state by increasing the utility of the rule while maintaining appropriate protections for resident investors. Consistent with the policy underlying the adoption of objective standards for determining compliance with Section 3(a)(11) in current Rule 147, we believe that the protections afforded to resident investors in an intrastate offering primarily flow from the requirements of state securities law.
As discussed above,
Rule 147 does not currently have an offering amount limitation and does not currently limit the amount of securities an investor can purchase in an offering pursuant to the rule. Preliminarily, however, we believe that, in light of the proposed changes to Rule 147, which, as noted above, would no longer be a safe harbor for compliance with Section 3(a)(11), a maximum offering amount limitation and investor investment limitations in the rule would provide investors with additional protection and would be consistent with existing state law crowdfunding provisions.
State crowdfunding laws allow, and in some states mandate, the use of an intermediary. The intermediary may be a federally registered broker-dealer, or an intrastate broker-dealer that is exempt from federal registration requirements. Section 15(a)(1) of the Exchange Act provides an exemption for a broker-dealer whose business is “exclusively intrastate and who does not make use of any facility of a national securities exchange.” In the state crowdfunding context, some intermediaries may be small broker-dealers seeking to only operate intrastate. To the extent that information posted on the Internet in connection with a state crowdfunding offering by an intermediary would be considered an interstate offer of securities, such business would be ineligible for the intrastate broker-dealer exemption. We are seeking comment on these issues, including whether the proposed rule should require issuers to use the services of any such intermediary at the federal level.
37. Should we limit the availability of Rule 147, as proposed to be amended, to issuers that have registered an offering in the state in which all of the purchasers are resident or that conduct the offering pursuant to an exemption from state law registration in such state that limits the amount of securities an issuer may sell pursuant to such exemption to no more than $5 million in a twelve-month period and the amount of securities an investor can purchase in any such offering? Why or why not?
38. Would the proposed requirements that an issuer conduct the offering pursuant to an exemption from state law registration in such state that limits the amount of securities an issuer may sell pursuant to such exemption to no more than $5 million in a twelvemonth period and that limits the amount of securities an investor can purchase in any such offering provide adequate investor protections at the federal level? Why or why not? Or, are the proposed maximum offering amount and/or investor investment limitations unnecessary at the federal level, in light of the local character of the intrastate offerings that would be conducted pursuant to the proposed rule and the presence of state oversight in such offerings? Please explain.
39. Should Rule 147, as proposed to be amended, specify the maximum offering amount limitation that must be included in a state exemption from registration? Why or why not? Should the proposed $5 million maximum offering amount limitation be adopted at a lower or higher dollar amount? If so, what amount and why? If not, why not?
40. Should Rule 147, as proposed to be amended, itself specify a maximum offering amount limitation for purposes of compliance with the proposed rule at the federal level and, in a change from the proposed rule, no longer require that a maximum offering amount limitation be included in any exemptive provision adopted at the state level? What benefit, if any, is derived from the proposed inclusion of a specified maximum offering amount limitation of not more than $5 million of securities in a twelve-month period at both the state and federal level? Please explain.
41. Should the proposed requirement that a state law exemption from registration impose investment limitations on investors, when the offering is conducted pursuant to proposed Rule 147 at the federal level, include specific maximum dollar amounts that an investor must be subject to or other specific criteria, such as criteria based on an investor's net worth and/or annual income? Why or why not? Please explain.
42. Should Rule 147, as proposed to be amended, include the proposed requirement that a state law exemption include investment limitations in order for the issuer to be able to conduct an intrastate offering pursuant to Rule 147, as proposed to be amended? Why or why not? Please explain.
43. Should we limit the application of the proposed requirement that a state law exemption include investment limitations, in order for the issuer to be able to conduct an intrastate offering pursuant to Rule 147, as proposed to be amended, to non-accredited investors only, while not requiring an accredited investor, as that term is defined in Rule 501(a) of Regulation D,
44. Should the provisions at the federal level allow states to have greater flexibility in drafting exemptive provisions that in their judgment provide sufficient investor protections at the state level, whether or not such state law provisions include a maximum offering amount limitation or investor investment limitations? Why or why not?
45. As an additional or alternative requirement to the current requirements in proposed Rule 147, should we limit the availability of the exemption to issuers that have registered an offering in the state in which all of the purchasers are resident or that conduct the offering pursuant to an exemption from state law registration in such state that requires the use of an intermediary? Why or why not?
46. Should we provide guidance about the operation of the intrastate broker-dealer exemption under the
47. Should we adopt any minimum disclosure or delivery requirements for offerings that are conducted pursuant to the proposed rule that are offered pursuant to an exemption from state registration, such as narrative and/or financial statement disclosure and delivery requirements similar to the requirements of Rule 502(b) of Regulation D?
48. Whether we adopt the proposed revisions to Rule 147 as amended Rule 147 or as a new rule, should we require a notice filing with the exemption? For example, if we repeal Rule 505 and adopt the exemption as new Rule 505, should we require issuers that conduct offerings pursuant to the new exemption to file offering related information with the Commission on a Form D? Why or why not? Should we instead adopt a new form to file offering related information that is similar to the information disclosed on Form D? If so, what information should that new form elicit?
The proposed amendments, if adopted, would not alter the fact that the Section 3(a)(11) statutory exemption continues to be a capital raising alternative for issuers with local operations seeking local financing. We believe, however, that it is possible that issuers will find it easier to satisfy the requirements of proposed Rule 147 than Section 3(a)(11).
The proposed amendments to Rule 147 would operate prospectively only. If adopted as proposed, Rule 147 would no longer be a safe harbor for conducting a valid intrastate exempt offering under Section 3(a)(11). An issuer that attempts to comply with amended Rule 147, but fails to do so, may claim any other exemption that is available. Failure to satisfy the requirements of amended Rule 147, however, would also likely result in a failure to satisfy the statutory requirements for the intrastate offering exemption under Section 3(a)(11) since the requirements of Section 3(a)(11) are more restrictive.
We recognize that none of the existing state crowdfunding provisions contemplate reliance upon the proposed amendments to Rule 147 and that states that have crowdfunding provisions based on compliance with Section 3(a)(11), or compliance with both Section 3(a)(11) and Rule 147, would need to amend these provisions in order for issuers to take full advantage of these amendments.
49. Should we leave existing Rule 147 in place and unchanged as a safe harbor for compliance with Section 3(a)(11) while adopting the proposed revisions to Rule 147 as a new rule instead? For example, if we were to repeal Rule 505 of Regulation D,
50. States that have adopted crowdfunding provisions based on current Rule 147 may need to consider the import of any final rule amendments at the federal level. How would the proposed amendments to Rule 147 impact these provisions? Would the Commission's rulemaking process, which in this case provides for a 60-day comment period, and the additional time before any final rules potentially would be adopted and thereafter become effective, provide sufficient time for states to consider and address the impact of the proposed amendments on their state law provisions? Why or why not? Please explain.
Rule 504
• Subject to reporting pursuant to Section 13 or 15(d) of the Exchange Act;
• an investment company;
• a development stage company that either has no specific business plan or purpose or that has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies (“blank check company”).
• Exclusively in one or more states that provide for the registration of the securities, and require the public filing and delivery to investors of a substantive disclosure document before sale that are made in accordance with state law requirements;
• in one or more states that have no provision for the registration of the securities or the public filing or delivery of a disclosure document before sale, if the securities have been registered in at least one state that provides for such registration, public filing and delivery before sale, offers and sales are made in that state in accordance with such provisions, and the disclosure document is delivered before sale to all purchasers (including those in the states that have no such procedure); or
• exclusively according to state law exemptions from registration that permit general solicitation and general advertising so long as sales are made only to “accredited investors” as defined in Rule 501(a) of Regulation D.
Rule 504, together with Rules 505 and 506, comprise the Securities Act exemptions of Regulation D.
• Simplify existing rules and regulations;
• eliminate any unnecessary restrictions that those rules and regulations placed on issuers, particularly small businesses; and
• achieve uniformity between state and federal exemptions in order to facilitate capital formation consistent with the protection of investors.
Regulation D offerings are exempt from the registration requirements of the Securities Act. Offerings conducted pursuant to Rule 504 or Rule 505, however, must be registered in each state in which they are offered or sold unless an exemption to state registration is available under state securities laws.
We propose to increase the aggregate amount of securities that may be offered and sold in any twelve-month period pursuant to Rule 504 from $1 million to $5 million and to disqualify certain bad actors from participation in Rule 504 offerings. We believe these amendments to Rule 504 will facilitate capital formation, result in increased efficiencies (and potentially lower costs) to issuers and increase investor protection. We also understand that state securities regulators have sought to expedite the state securities law registration process by developing coordinated review programs.
In light of the proposed changes to Rule 504, we also seek comment on the continued utility of Rule 505 as an exemption from registration. Rule 505 is used far less frequently than Rule 506, and an increase in the Rule 504 offering ceiling from $1 million to $5 million could diminish its utility.
The proposed amendments to Rule 504 would raise the aggregate amount of securities an issuer may offer and sell in any twelve-month period from $1 million to $5 million, which is the maximum statutorily allowed under Section 3(b)(1).
Much like the deference that Congress provided to the states in the intrastate offering exemption under Section 3(a)(11), in adopting Rule 504, the Commission placed substantial reliance upon state securities laws and regulations.
The purpose of Rule 504 is to aid small businesses raising “seed capital.”
Similar to the rationale underlying our proposal to ease the eligibility requirements for issuers under Rule 147, increasing the Rule 504 offering limit to $5 million would create a larger federal exemptive framework for state regulators to tailor and coordinate among themselves state specific requirements for smaller offerings by smaller issuers that are consistent with their respective sovereign interests in facilitating capital formation and the protection of investors in intrastate and regional interstate securities offerings. Increasing the offering limit from $1 million to $5 million may also make the Rule 504 exemption more attractive to start-up companies seeking capital financing, as compared to alternative financing methods, as the legal and accounting expenses of the offering may be offset by the larger gross proceeds of the offering to the issuer.
In conjunction with our proposed increase to the Rule 504 aggregate offering amount limitation, we are proposing to adopt provisions that would disqualify certain bad actors from participation in offerings conducted pursuant to the exemption.
The proposed Rule 504 disqualification provisions would be implemented by reference to the disqualification provisions of Rule 506 of Regulation D.
Issuers have overwhelmingly relied upon Rule 506 instead of Rule 504 for offerings of $1 million or less.
We also are seeking public comment on whether additional changes to Rule 504 should be adopted in the final amended rules. In particular, in conjunction with the proposed increase in the Rule 504 offering amount limitation, we are contemplating amending the calculation of the aggregate offering limitation in Rule 504(b)(2).
When the current aggregation provisions in Rules 504 and 505 were originally adopted in Rule 505's predecessor Rule 242, the Commission noted that aggregating offering amounts across offerings conducted pursuant to Section 3(b) was intended to “limit[] the potential for the issuer to raise large sums by circumventing the registration provisions of the Securities Act through
The Commission has brought a number of enforcement actions in recent years against persons that have sought to use the provision in Rule 504(b)(1)(iii) permitting conditional use of general solicitation and general advertising to engage in fraudulent offerings.
Lastly, we propose certain technical amendments to Rules 504 and 505. We propose a technical amendment to Rule 504(b)(2), and its related provision in Rule 505(b)(2), that would update the reference to Securities Act Section 3(b) to Section 3(b)(1). This technical revision is necessary in light of the re-designation of Section 3(b) as Section 3(b)(1) that occurred as a result of the Securities Act amendments in Title IV of the JOBS Act.
As proposed, should we increase the Rule 504 offering limit from a maximum of $1 million of securities in a twelve-month period to a maximum of $5 million of securities in a twelve-month period? Why or why not? Should we adopt a higher or lower aggregate offering limit? If so, what should the aggregate offering limit be and why? For example, should we use our general exemptive authority to adopt a $20 million annual offering limit in Rule 504 that aligns with the maximum offering limit permitted under Tier 1 of Regulation A? 52.
52. Would the proposed increase in the Rule 504 aggregate offering amount limitation give state securities regulators greater flexibility to develop regional coordinated review programs that would rely on Rule 504 at the federal level? Why or why not? What additional changes, if any, could we make to Rule 504 in order to facilitate efforts by state securities regulators to develop robust coordinated review programs that include appropriate investor protections and encourage capital formation?
53. Should we amend Rule 504, as proposed, to include bad actor disqualification provisions that align with those included in Rule 506(d) of Regulation D? Why or why not?
54. As proposed, should issuers only be disqualified from reliance on Rule 504 for bad actor disqualifying events that occur after the effectiveness of any final rule amendments? Why or why not?
55. If we adopt bad actor disqualification provisions for Rule 504 offerings, should we require issuers to provide disclosure to purchasers of any bad actor disqualifying events that occur before effectiveness of any final rule amendments as proposed? Why or why not?
56. Should we amend the method by which an issuer calculates compliance with the Rule 504 aggregate offering amount limitation to remove the reference to other offerings conducted pursuant to Section 3(b)(1)? Or should we instead continue to require issuers to aggregate Rule 504 offerings with all offerings conducted within the prior twelve-month period pursuant to Section 3(b)(1) and/or in violation of Section 5(a) when calculating the offering amount limitation? Why or why not? Should offerings made in violation of Section 5(a) be aggregated in all instances?
57. Are there additional changes to Rule 504 that would increase the general utility of the exemption or provide additional investor protections? If so, please explain.
58. Should Rule 504 be available to Exchange Act reporting companies? Why or why not?
59. Should securities sold in reliance on Rule 504(b)(1)(iii) pursuant to a state law exemption that permits general solicitation and general advertising so long as sales are made only to accredited investors be subject to the limitations on resale in Rule 502(d) and, as such, be deemed “restricted securities” for purposes of Rule 144? Alternatively, should we adopt a requirement, similar to proposed Rule 147(e),
60. Are there other amendments we should make to Rule 504(b)(1)(iii) to address concerns about potential abuse of this provision? Please explain.
61. Should we repeal Rule 504(b)(1)(iii), in light of our proposed revisions to Rule 147? With the exception of the unrestricted status of securities sold pursuant to Rule 504(b)(1)(iii), what value would this rule continue to provide to issuers and investors?
As noted above, in light of the proposed changes to Rule 504, we also are seeking comment on the continued utility of Rule 505 as an exemption from registration. Rule 505 is used far less frequently than Rule 506, and an increase in the Rule 504 offering ceiling from $1 million to $5 million could diminish its utility. Rule 505 is available to both non-reporting and
Issuers relying upon Rule 505 are subject to additional conditions not required under Rule 504, such as the following:
• Sales to no more than 35 non-accredited investors and an unlimited number of accredited investors;
• Delivery of a disclosure document to non-accredited investors
• Disqualification of felons and other “bad actor” from participating in the offering.
With the exception of the offering limitation contained in Rule 505, the Rule 505 requirements are substantially similar to the requirements of Rule 506.
Amending Rule 504 to allow for a larger aggregate offering amount of up to $5 million may reduce the incentives to use Rule 505 by issuers contemplating an exempt offering. Absent additional amendments to Regulation D, if we were to eliminate Rule 505, Regulation D would be limited to two offering exemptions, Rule 504 and Rule 506. Rule 504 would be available only to non-reporting issuers
62. Should we repeal Rule 505? Why or why not?
63. If Rule 505 is retained, should it be modified in some manner? For example, if we amend the manner in which the aggregate offering amount limitation is calculated in Rule 504 offerings, should we make a corresponding change to the manner in which the Rule 505 aggregate offering amount limitation is calculated?
64. Should Rule 505 be replaced with a new Securities Act exemption having, any, or all, of the following features:
• Early-stage capital formation as its primary purpose;
• eligibility only for non-Exchange Act reporting issuers;
• subject to the anti-fraud provisions of the federal securities laws and the civil liability provisions of Section 12(a)(2) of the Securities Act;
• exempting holders of the securities from the registration requirements of Section 12(g) of the Exchange Act;
• a relatively low maximum aggregate offering amount over a 12-month period, such as $100,000;
• a limit on the maximum investment amount per investor, such as $2,000;
• a higher maximum investment amount for more sophisticated investors, based on criteria, such as net worth, net income or some other proxy for investment sophistication;
• “covered security” status under Section 18 of the Securities Act by either enacting a new “safe harbor” pursuant to Securities Act Section 4(a)(2) or by defining purchasers of securities issued in an offering pursuant to the exemption as “qualified purchasers,” pursuant to Securities Act Section 18(b)(3);
• additional or alternative criteria?
65. Alternatively, whether or not we repeal Rule 505 and if, as proposed, we increase the aggregate offering amount that may be raised pursuant to Rule 504 to $5 million of securities in a twelve-month period, should the amendments to Rule 504 include some of the provisions currently required by Rule 505? If so, which ones and why? Should any such requirement of current Rule 505 only be required if the Rule 504
We solicit comment, both specific and general, on each component of the proposals. We request and encourage any interested person to submit comments regarding:
• the proposals that are the subject of this release;
• additional or different revisions to the rules discussed above; and
• other matters that may have an effect on the proposals contained in this release.
Comment is solicited from the point of view of both issuers and investors, as well as of capital formation facilitators, such as broker-dealers, and other regulatory bodies, such as state securities regulators. Any interested person wishing to submit written comments on any aspect of the proposal is requested to do so. With regard to any comments, we note that such comments are of particular assistance to us if accompanied by supporting data and analysis of the issues addressed in those comments. We urge commenters to be as specific as possible.
This section analyzes the expected economic effects of the proposed amendments relative to the current baseline, which is the regulatory framework and state of the market
The proposed amendments would primarily impact the financing market for startups and small businesses.
As discussed above, existing Rule 147 is a safe harbor for complying with the intrastate offering exemption provided by Section 3(a)(11) of the Securities Act. Consistent with the statutory exemption, Rule 147 imposes no offering amount limit but requires that issuers offer and sell securities to residents of the same state or territory in which the issuer is resident. In addition, issuers seeking to rely on the safe harbor must satisfy certain prescriptive threshold requirements to be considered “doing business” in-state. Existing Rule 504 limits the offering amount to $1 million in a 12-month period and permits general solicitation under certain conditions, such as that offers and sales are made exclusively in one or more states that provide for securities registration and the public filing and delivery to investors of a substantive disclosure document before sale.
The proposed
Under current Rule 147, there are no restrictions on the type of issuers that can utilize the safe harbor, and there is no limit on the amount of capital that can be raised. However, there are in-state residency and eligibility requirements that an issuer must satisfy in order to rely on Rule 147. Eligible issuers are those that are incorporated or organized in-state, have their “principal office” in-state, and can satisfy three 80% thresholds concerning their revenues, assets and use of net proceeds.
While we do not have access to data on the number and size of offerings,
Currently, issuers that intend to conduct intrastate crowdfunding offerings are required to use Rule 147 by most of the states that have enacted crowdfunding provisions.
Given that almost all the enacted state crowdfunding provisions currently exclude reporting companies and entities defined as an investment company under the Investment Company Act of 1940, we expect that issuers that rely on Rule 147 are likely operating companies (“non-fund issuers”). While information on the size of these issuers is not available, data from NASAA shows that most issuers are from varied industries such as agriculture, manufacturing, business services, retail, entertainment, and technology.
We anticipate that many potential issuers of securities under proposed Rule 147, particularly those utilizing Rule 147 for intrastate crowdfunding, will continue to be small businesses, early stage firms and start-ups that are close to the “idea” stage of the business venture. Some of these issuers may lack business plans that are sufficiently developed to attract venture capitalists (VCs) or angel investors that invest in high risk ventures, or may not offer the profit potential or business model to attract such investors.
Rule 504 of Regulation D provides an exemption from registration under Section 3(b)(1) of the Securities Act for offerings that do not exceed $1 million during a 12-month period. An analysis of Form D filings indicates that reliance on Rule 504 exemptions has been declining over time. As shown in Figure 1, while offerings under Rule 506 of Regulation D grew significantly from 1993 to 2014, offerings under Rule 504 and Rule 505 in 2014 were one quarter of 1993 levels. In addition, while offering activity under Rule 504 has been higher than under the Rule 505 exemption, the number of new Rule 504 offerings peaked in 1999, with 3,402 new offerings initiated, and steeply declined afterward. Compared to the early 1990s when Rule 504 offerings constituted approximately 28% of all
The current limited use of the Rule 504 exemption and the predominance of Rule 506 are also evident when we consider the total amount raised in offerings under each of these exemptions. Overall, capital formation in the Rule 504 market constituted approximately 0.1% of the capital raised in all Regulation D offerings initiated during 2009-2014.
During the period 2009-2014, issuers relying on the Rule 504 exemption were predominantly non-fund issuers. As shown in Table 2, less than 3% of new Rule 504 offerings during 2009-2014 were initiated by fund issuers.
Figure 2 shows the size of Rule 504 issuers during the period 2009-2014.
Most Rule 504 issuers in the past five years reported to operate in the technology, real estate or other industry (Figure 3).
As reported in Form D filings, during the period 2009-2014, Rule 504 issuers had their principal place of business in California (22%), followed by Texas, New York, Florida, Colorado and Illinois, though most were incorporated in Delaware (19%), California (14%) and Nevada (10%). In addition, approximately 32% of the Rule 504 offerings had separate states of incorporation and principal places of business. While only approximately 2%
Currently, Rule 147 limits offers and sales to residents of the same state as the issuer. There are no other limitations on who can invest in Rule 147 and Rule 504 offerings. Although the Commission does not track data concerning investors participating in Rule 147 offerings, data from Form D filings provide some insights into the number and type of investors in Rule 504 offerings.
Table 3 below, shows that almost 31,000 investors participated in new Rule 504 offerings initiated during the period 2009-2014.
Offerings that involved non-accredited investors between 2009 and 2014 were typically smaller and, on average, had fewer investors than those offerings that involved only accredited investors. The presence of non-accredited investors was larger in Rule 504 offerings, where the number of non-accredited investors is not limited, than in Rule 505 or Rule 506 offerings, where the number of non-accredited investors is limited to 35. Table 3 above shows that approximately 57% of Rule 504 offerings during 2009-2014 reported having sold, or intending to sell, to non-accredited investors.
We believe, given investment limitations under state crowdfunding provisions, that many investors affected by the proposed amendments to Rule 147 would likely be individual retail investors whose broad access to potentially riskier investment opportunities in early-stage ventures is currently limited, either because they do not have the necessary accreditation or sophistication to invest in most private offerings or because they do not have sufficient funds to participate as angel investors. Intrastate crowdfunding offerings may provide retail investors with additional investment opportunities, although the extent to which they invest in such offerings will likely depend on their view of the potential return on investment as well as the potential risks, including fraud.
In contrast, larger, more sophisticated or well-funded investors may be less likely to invest in intrastate crowdfunding offerings. The relatively low offering amount limits, in-state investor residency requirements, and low investment limits for crowdfunding investors under state laws
Issuers of private offerings may use broker-dealers to help them with various aspects of the offering and to help ensure compliance with the ban on general solicitation and advertising that exists for most private offerings. Private offerings can also involve finders and investment advisers who connect issuers with potential investors for a fee.
Although we are unable to predict the use of broker-dealers, transfer agents, investment advisers and finders in private offerings as a result of the proposed rules, data on the use of broker-dealers and finders in the Rule 506 market suggests that they may not currently play a large role in private offerings. Form D filings indicate that approximately 21% of Rule 506 offerings, including 15% of Rule 506 offerings initiated by non-fund issuers, used an intermediary during 2009-2014.
The potential economic impact of the proposed amendments, including their effects on efficiency, competition and capital formation, will depend primarily on the extent of use of the amended Rule 147 and Rule 504 exemptions, and how these methods compare to alternative methods that startups and small businesses can use for raising capital.
As the proposed amendments to Rule 504 would permit offerings up to $5 million by all types of issuers, the analysis below discusses alternatives available for startups and small businesses to access up to $5 million in capital. Current state crowdfunding provisions, most of which require issuers to rely on Rule 147 for federal exemption, have offering limits up to $4 million and restrict private funds and investment companies from utilizing crowdfunding provisions. Our analysis below, therefore, also subsumes a discussion of alternative sources for non-fund issuers to raise capital up to $4 million.
Startups and small businesses can potentially access a variety of external financing sources in the capital markets through, for example, registered or unregistered offerings of debt, equity or hybrid securities and bank loans. Issuers seeking to raise capital must register the offer and sale of securities under the Securities Act or qualify for an exemption from registration under the federal securities laws. Registered offerings, however, are generally too costly to be viable alternatives for startups and small businesses. Issuers conducting registered offerings must pay Commission registration fees, legal and accounting fees and expenses, transfer agent and registrar fees, costs associated with periodic reporting requirements and other regulatory requirements, and various other fees. Two surveys concluded that the average initial compliance cost associated with conducting an initial public offering is $2.5 million, followed by an ongoing compliance cost for issuers, once public, of $1.5 million per year.
Title I of the JOBS Act provided certain accommodations to issuers that qualify as emerging growth companies (EGCs). According to a recent working paper, the underwriting, legal and accounting fees of EGC and non-EGC initial public offerings were similar (based on a time period from April 5, 2012 to April 30, 2014). For a median EGC initial public offering, gross spread comprised 7% of proceeds and accounting and legal fees comprised 2.4% of proceeds.
For startups and small businesses that can potentially access capital under the Rule 147 safe harbor and Rule 504 exemption, offerings under other existing exemptions from registration may represent alternative methods of raising capital. For example, startups and small businesses could rely on current exemptions and safe harbors, such as Section 3(a)(11), Section 4(a)(2),
Each of these exemptions, however, includes restrictions that may limit its suitability for startups and small businesses seeking to raise capital up to $5 million. Table 4 below lists the main requirements of these exemptions.
While
The table above also includes the number of Regulation A offerings by size. From 2009 to 2014, 38 issuers relied on Regulation A for offerings of up to $5 million.
The analysis above does not include securities-based crowdfunding transactions under the Regulation Crowdfunding exemption. Under these rules, which are not yet in effect, offerings pursuant to Regulation Crowdfunding are limited to a maximum amount of $1 million over a 12-month period and are subject to ongoing disclosure requirements. Securities issued pursuant to these rules can be sold to an unlimited number of investors (subject to certain investment limits), are freely tradable after one year, and can be offered and sold across states without state registration. In addition to the existing regulatory scheme of exemptions and safe harbors described above, Regulation Crowdfunding will provide a new exemption from the registration requirements of the Securities Act. Once effective, this exemption will provide startups and small businesses with an alternate source for raising up to $1 million in capital in a 12-month period through certain securities-based crowdfunding transactions. Unlike intrastate crowdfunding provisions enacted at the state level, the new federal crowdfunding exemption would allow interstate offerings. Table 6 below presents a comparison of the provisions of Regulation Crowdfunding and intrastate crowdfunding that rely on current Rule 147 for federal exemption.
While
For example, a 2014 study reports that startups frequently resort to bank financing early in their lifecycle.
An earlier study by Federal Reserve Board staff covering the pre-recessionary period suggests that 60% of small businesses had outstanding credit in the form of a credit line, a loan or a capital lease.
Small businesses may also receive funding from various loan guarantee programs of the Small Business Administration (“SBA”), which makes credit more accessible to small businesses by either lowering the interest rate of the loan or enabling a market-based loan that a lender would
Borrowing from financial institutions is, however, relatively costly for many early-stage issuers and small businesses as they may have low revenues, irregular cash-flow projections, insufficient assets to offer as collateral, and high external monitoring costs.
Other sources of debt financing for startups and small businesses include peer-to-peer and peer-to-business lending,
Family and friends are also sources through which startups and small businesses can raise capital. This source of capital is usually available early in the lifecycle of a small business, before the business engages arm's-length, more formal funding channels.
In general, the proposed amendments to Rule 147 and Rule 504 are intended to expand the capital raising options available to startups and small businesses, including through the use of intrastate and regional securities offering provisions that have been enacted or could be enacted by various states, and thereby promote capital formation within the larger economy.
Securities-based crowdfunding is a relatively new and evolving capital market which provides startups and small businesses an alternative mechanism of raising funds using the Internet, by selling small amounts of securities to a large number of investors. Title III of the JOBS Act directed the Commission to establish rules for an exemption that would facilitate this market at the federal level. Around the same time, some states began enacting intrastate crowdfunding statutes and rules that provide issuers with exemptions from state registration. Most state crowdfunding rules require issuers to comply with the requirements of Section 3(a)(11) and Rule 147, while one state currently provides issuers with the option of utilizing Rule 504 or another Regulation D exemption.
By modernizing the existing requirements under Rule 147, the proposed amendments would facilitate capital formation through intrastate crowdfunded offerings as well as through other state registered or state exempt offerings. By raising the offering amount limit under Rule 504 from $1 million to $5 million, the proposed amendments may facilitate offerings, including those registered or exempt in a state, or regional offerings made pursuant to the implementation of regional coordinated review programs.
As discussed below, the effects of the proposed amendments on capital formation would depend, first, on whether issuers that currently raise or plan to raise capital would choose to rely on securities offerings pursuant to amended Rules 147 and 504 in lieu of other methods of raising capital, such as Regulation Crowdfunding and Rule 506 of Regulation D. To assess the likely impact of the proposed amendments on capital formation, we consider the features of amended Rules 147 and 504 that potentially could increase the use of securities offerings by new issuers and by issuers that already rely on other private offering options.
Second, to the extent that securities offerings under amended Rule 147 and Rule 504 provide capital raising options for issuers that currently do not have access to capital, the proposed amendments could enhance the overall level of capital formation in the economy in addition to any reallocation of demand for capital amongst the various capital raising options that could arise from issuers changing their capital raising methods.
Third, to the extent that states currently have residency and eligibility requirements in addition to prescriptive threshold requirements that correspond to existing Rule 147 provisions, the impact of the proposed amendments to Rule 147 on capital formation would significantly depend on whether states choose to modernize their provisions to align with the amended Rule 147. Any changes to the intrastate and regional securities offering provisions that may be enacted would, in turn, affect the expected use of amended Rule 504. For instance, while current intrastate crowdfunding provisions in most states require issuers to rely on Rule 147 for the federal exemption, to the extent the amended state provisions require the offerings to comply with either Rule 147 or Rule 504 in the future, the choice between reliance on these two exemptions could depend on issuers' preferences with respect to general solicitation, target investor base, and investor location. For example, while Rule 147 offerings would be restricted to in-state investors, Rule 504 offerings would be available to investors in more than one state, thus making regional offerings feasible. At the same time, there is no limit on the maximum offering amount under proposed Rule 147 for an offering that is registered with a state, while the proposed amendments under Rule 504 limit the maximum amount that can be sold over a twelve-month period to $5 million.
Finally, the impact of the proposed amendments on aggregate capital formation also would depend on whether new investors are attracted to the Rule 147 and Rule 504 markets or whether investors reallocate existing capital among various types of offering options. For example, if the amended exemptions allow issuers to reach a category of potential investors significantly different from those that they can reach through other offering methods, capital formation, in aggregate, could increase. However, if the amended exemptions are viewed by investors as substantially similar to alternate exemptions, investors may simply reallocate their capital from other markets to the Rule 147 or Rule 504 markets. Investor demand for securities offered under amended Rule 147 and Rule 504 could, in particular, depend on the extent to which expected risk, return and liquidity of the offered securities compare to what investors can obtain from securities in other exempt offerings and in registered offerings.
Investor demand also would depend on whether state offering reporting requirements are sufficient to enable investors to evaluate the aforementioned characteristics of Rule 147 and Rule 504 offerings. For example, investors may be less willing to participate in intrastate crowdfunding or regional offerings that are made in reliance on exemptions from both state registration under state crowdfunding provisions and registration with the Commission under Rule 147 and Rule 504 and that are subject to lower reporting requirements. Alternatively, the state registration requirement for using general solicitation in Rule 504 offerings, the proposed amendment to disqualify certain bad actors from participation in Rule 504 offerings, the maximum offering amount for state exempt offerings that rely on Rule 147, and the reporting requirements for larger intrastate crowdfunding offerings under state provisions may mitigate some of these investor protection concerns. For example, in a number of states, current intrastate crowdfunding provisions require issuers for offerings greater than $1 million to submit audited financial statements.
The proposed amendments to Rule 147 and Rule 504 would remove or
Overall, the proposed amendments to Rule 147 and Rule 504 could increase the aggregate amount of capital raised in the economy if used by issuers that have not previously conducted offerings using the provisions or other exemptions, or registered offerings. The impact of the proposed amendments on capital formation could also be redistributive in nature by encouraging issuers to shift from one to another capital raising method. This potential outcome may have a significant net positive effect on capital formation and allocative efficiency by providing issuers with access to capital at a lower cost than alternative capital raising methods and by providing investors with additional investment opportunities. The net effect also would depend on whether investors find the rules' disclosure requirements and investor protections to be sufficient to evaluate the expected return and risk of such offerings and to choose between offerings reliant on Rule 147, Rule 504 and other exempt offerings.
As these proposed amendments are not currently in effect, the data does not exist to estimate the effect of the proposed rules on the potential rate of substitution between alternative methods of raising capital and the overall expansion (or decline, if any) in capital raising by potential issuers affected by the proposed amendments. However, we anticipate that the proposed amendments would result in an increased use of the Rule 147 exemption for intrastate offerings, including for intrastate crowdfunding as more states enact provisions facilitating such offerings. Similarly, we expect the proposed amendments would increase the use of the Rule 504 exemption, especially by facilitating efforts among state securities regulators to implement regional coordinated review programs that would enable regional offerings. Although it is not possible to predict the extent of such increase or the type and size of the issuers that would conduct intrastate crowdfunding offerings, the current number of businesses pursuing similar levels of financing through alternative capital raising methods, as discussed in the baseline section, provide an upper bound for Rule 147 and Rule 504 usage.
We recognize that the proposed amendments to Rules 147 and 504 could raise investor protection concerns. For instance, as we discuss in detail further in this section, allowing Rule 147 issuers to have more dispersed assets and revenues could reduce oversight of issuers by in-state securities regulators. However, we believe such concerns are mitigated by the continuing applicability of state regulatory requirements that may impose additional eligibility conditions, as well as the residency requirements for investors and issuers under the amended rule provisions.
In addition to state regulations, the proposed amendments that condition the availability of the amended Rule 147 exemption on states having an exemption that limits the maximum offering size and includes investment limits, and the proposed amendments to Rule 504 to disqualify certain bad actors from participation in Rule 504 offerings, could help to address such investor protection concerns. Finally, it should be noted that the Commission would retain authority under the antifraud provisions of the federal securities laws to pursue enforcement action against issuers and other persons involved in such offerings. Nevertheless, if investors demand higher returns because of a perceived increase in the risk of fraud as a result of less extensive federal regulation, issuers may face a higher cost of capital. We are unable to predict if or how the proposed amendments would affect the incidence of fraud in Rules 147 and 504 offerings.
In the sections below, we analyze in more detail the potential costs and benefits stemming from the specific amendments proposed today, as well as their impact on efficiency, competition and capital formation, relative to the baseline discussed above.
The proposed amendments to Rule 147 would facilitate intrastate offerings of securities by local companies, including offerings relying upon crowdfunding provisions under state securities laws. The proposed amendments seek to modernize Rule 147 to align with contemporary business practices, while retaining the underlying intrastate character of Rule 147 that permits local issuers to raise money from investors within their state without having to register the securities at the federal level.
Currently, offers pursuant to Rule 147 must be limited to state residents only. The proposed amendments to Rule 147 would allow an issuer to make offers to out-of-state residents, as long as sales are made only to residents of the issuer's state or territory.
The proposed amendments would enable Rule 147 issuers to engage in broad-based solicitations, including on publicly accessible Web sites, in order to successfully locate potential in-state investors. For example, for a New Jersey-based Rule 147 offering, issuers would be permitted under proposed Rule 147 to advertise and disseminate offering information through online media to reach New Jersey residents that work in New York, even though such information can be viewed by New York residents. This is not permitted under the current rule. Hence, the proposed amendments to Rule 147 would provide issuers with the flexibility to utilize a wider array of options to advertise their offerings, taking advantage of modern communication technologies such as the Internet and other social media platforms that allow investors inside and outside the issuer's state of residence to openly access offering information. In this regard, we expect the proposed amendments to be particularly effective at facilitating state-based crowdfunding offerings that rely heavily on online platforms to bring issuers and investors together.
The proposed amendments would thus make it easier for issuers to rely upon Rule 147 to conduct their offerings. Online advertising provides a cheaper and more efficient means of communicating with a more diffused base of prospective investors. Consequently, the elimination of offering limitations to residents should result in lower search costs for issuers. The amended provisions also may reduce issuers' uncertainty about compliance as they would not need to limit advertising or take additional precautions to ensure that only in-state residents could view the offering.
The inclusion of legends on certificates or other documents evidencing the security and other mandatory disclosures in offering materials would inform investors, especially out-of-state investors, about the intrastate nature of the offering. At the same time, as a greater number of investors become aware of a larger and more diverse set of investment opportunities in private offerings, the proposed amendments may enable investors to diversify their investment portfolio and allocate their capital more efficiently. Further, such broadly advertised Rule 147 offerings would be able to more effectively compete for potential investors with Rule 504, Rule 506(c), and Regulation A offerings, where general solicitation is also permitted. The proposed amendments could thus heighten competition between unregistered capital markets, which may result in a more optimal flow of capital between investors and issuers, thereby enhancing the overall allocative efficiency of those markets.
However, as issuers utilizing amended Rule 147 advertise more widely and freely, the likelihood of out-of-state investors purchasing into the offering could increase. The inclusion of legends and other mandatory disclosures may mitigate this concern and provide a certain measure of investor protection, although out-of-state investors in their desire to avail themselves of an attractive investment opportunity may overlook the legends or disclosures or may even disregard them. While issuers are required to have a reasonable belief that all their purchasers are resident within the state, the probability of violating the intrastate sale provisions could increase (relative to the baseline), at least in resale transactions that occur within the restrictive period for intrastate resales. Broader advertising of Rule 147 offerings could also impact the effectiveness of state oversight as regulators may not have adequate resources to track the conduct of such offerings on mass media.
The proposed amendments to Rule 147 would eliminate the requirement that issuers need to be incorporated in the state where the offering is conducted and would revise the current residency requirement to focus on the issuer's “principal place of business” rather than its “principal office.” The former would be defined as the location from which officers, partners, or managers of the issuer primarily direct, control and coordinate the activities of the issuer.
The proposed elimination of the requirement that the issuer be registered or incorporated in the state where the offering is being conducted would align the rule's provisions with modern business practices, thereby making it easier for a greater number of issuers to utilize the exemption. A significant number of companies are incorporated in states other than where their
The practice of incorporating in certain states extends beyond public companies to private and smaller companies. As discussed in our baseline analysis above, data from Form D filings for the period 2009-2014 indicates that a significant percentage of Rule 504 and Rule 505 issuers were incorporated in Delaware and had separate states of incorporation and principal places of business.
Eliminating the requirement to be incorporated in-state also would enable foreign incorporated issuers that have their principal place of business in a U.S. state to access the Rule 147 capital market. This would create a uniform basis for firms that are operating in similar local fashion, irrespective of their country or state of incorporation, to utilize the Rule 147 exemption. Form D filings for the period 2009-2014 reported that approximately 3% of Regulation D offerings (approximately 3,000 offerings) were initiated by issuers that were incorporated outside of the United States and had their principal place of business in a U.S. state.
We recognize the potential for issuers to switch their principal place of business to a different state in order to conduct Rule 147 offerings in multiple states. To mitigate such concerns, the proposed amendments limit issuers that change their principal place of business from utilizing the exemption to conduct another intrastate offering in a different state for a period of nine months from the date of last sale of securities under the prior Rule 147 offering. This would be consistent with the duration of the resale limitation period during which sales to out-of-state residents are not permitted. As we discuss in detail below, such a provision should help to deter issuers from misusing the amended residency requirements to change their principal place of business in order to sell to residents in multiple states.
The proposed amendments to Rule 147 would modify the current “doing business” in-state tests for issuers by requiring them to have a principal place of business in-state and to satisfy one of four specified tests. The proposed amendments would include a new alternative test whereby issuers can qualify if a majority of their employees are located in the state. Consequently, under proposed Rule 147, in order to be deemed “doing business” in a state, issuers would have to have a principal place of business in-state and satisfy at least one of the following requirements:
• 80% of the issuer's consolidated assets are located within such state or territory;
• 80% of the issuer's consolidated gross revenues are derived from the operation of a business or of real property located in or from the rendering of services within such state or territory;
• 80% of the net proceeds from the offering are intended to be used by the issuer, and are in fact used, in connection with the operation of a business or of real property, the purchase of real property located in, or the rendering of services within such state or territory; or
• A majority of the issuer's employees are in such state or territory.
The proposed modifications to the existing “doing business” in-state tests would provide greater flexibility to potential Rule 147 issuers and thereby ease their burden in complying with the exemption, while also better aligning the regulation with modern business practices. Issuers could use the test that best reflects the local nature of their business operations.
As currently required, satisfying all the existing “doing business” in-state tests may be burdensome even for small businesses that are largely located in one state. For example, by restricting issuers' operations and capital investments substantially to one state, the existing requirement to qualify under all these tests may have adverse effects on the growth and survival of startups and early stage ventures that rely on the exemption.
Requiring an issuer to own a majority of its assets in one state, invest most of the capital raised in one state, and obtain revenue mostly from in-state sales could create inefficient constraints for startups and small businesses to operate and grow. While the original intent of Section 3(a)(11) and Rule 147 was to ensure that investors and issuers are located in the same state so that they are potentially familiar with each other,
The proposed amendments, by easing the eligibility and residency requirements for issuers, would enable a greater number of firms to use Rule 147 to raise capital. Such new issuers could be those entities that are currently accessing capital through an alternate private capital market, or they could be issuers that could not previously raise capital in any market but would be able to use amended Rule 147 to meet their funding needs. In addition, to the extent raising capital in the Rule 147 market is cheaper than raising capital in alternate capital markets, issuers would benefit from such lower costs. Easier access to local capital would enable issuers to finance investment opportunities in a timely manner, thereby accelerating firm growth, which could consequently promote state employment and economic growth.
As more firms become eligible or are willing to raise capital pursuant to amended Rule 147, the set of investment opportunities for investors would also increase in a corresponding manner, resulting in greater allocative efficiency and higher capital formation. To the extent the use of Rule 147 increases because of substitution out of other capital markets, the economy-wide increase in capital formation may not be significant while competition amongst private capital markets would be higher.
At the same time, allowing issuers with a different state of incorporation to raise capital in another state under amended Rule 147 could result in fewer incorporations for the state where the offering is being conducted, if this proposed amendment results in more issuers relocating to jurisdictions with perceived legal and tax advantages. Moreover, if issuers with widely-distributed assets and operations over more than one state make use of amended Rule 147, state oversight of such issuers could weaken, with a consequent decrease in investor protection. For example, if a majority or a significant proportion of an issuer's assets is located out-of-state, it could be more difficult for state regulators to assess whether any disclosures to investors about such assets are fair and accurate. However, state enforcement actions for protecting in-state investors can extend to issuers whose assets are located beyond the boundaries of the state, which could potentially deter issuers from engaging in fraudulent intrastate offerings. We also believe that qualifying under any one of the four “doing business” in-state tests and requiring an issuer to have an in-state principal place of business, such that the officers and managers of the issuer primarily direct, control and coordinate the activities of the issuer in the state, would provide a state regulator with a sufficient basis from which to regulate an issuer's activities and enforce state securities laws for the protection of resident investors. In addition, if the proposed amendments to Rule 147 are adopted, state regulators may choose to amend their state regulations to comport with amended Rule 147, which would allow them to consider any additional requirements, including qualification tests, for issuers to comply with state securities offerings regulations.
At the same time, even under the proposed amendment requiring issuers to qualify under one of the specified “doing business” in-state tests, the high threshold levels specified in such tests may preclude certain issuers that use modern business models (
Additionally, the proposed amendment to limit the ability of issuers for a period of nine months from the date of last sale of securities under a Rule 147 offering to conduct a new Rule 147 offering in a different state would discourage issuers from altering their principal place of business to raise capital through multiple state offerings. The duration of this proposed restriction is consistent with the period in which resales to out-of-state investors would not be permitted. In this regard, the proposed amendment could help mitigate some of the concerns relating to investor protection that may arise from the amended residency requirements. To the extent a change in principal place of business to a new state is motivated by business needs, this amendment could affect the capital raising prospects of firms by forcing them to delay their intrastate offerings. For example, certain start-ups and small businesses that could potentially change their principal place of business at lower costs could be affected by the proposed amendment. Issuers located in a greater metropolitan area (
We note that, under the integration provisions of current and proposed Rule 147, an issuer that conducts a Rule 147 offering in one state within six months of having offered or sold securities pursuant a Rule 147 offering in another state would have such offers and sales integrated for the purpose of compliance with the federal rule. In this respect, we believe that the proposed nine-month period during which an issuer would be prohibited from conducting an intrastate offering pursuant to the proposed rule after having completed sales of securities pursuant to the proposed rule in a different state would have the effect of extending by three months the six-month period of time during which
The proposed amendments would limit the availability of the exemption at the federal level to offerings that are either registered in the state in which all of the purchasers are resident or conducted pursuant to an exemption from state law registration in such state that limits the amount of securities an issuer may sell pursuant to such exemption to no more than $5 million in a twelve-month period and imposes an investment limitation on investors. These proposed limits would provide additional protections at the federal level and could mitigate investor protection concerns that may arise from the proposed modernization of Rule 147. Specifically, the proposed availability of amended Rule 147 to exempt offerings of up to $5 million in a twelve-month period could provide greater investor protection by reducing the scale of fraudulent offerings, especially those that may be directed towards non-accredited investors and do not have significant state oversight. Similarly, the proposed limitation on the availability of the amended rule, as it relates to offerings that are exempt from state registration, to offerings that are conducted pursuant to a state law exemption that includes investment limitations could reduce the individual exposure of investors to potential fraud or loss of investment in a state-exempt offering pursuant to amended Rule 147.
The proposed amendments would not alter existing state provisions that rely on, or the ability of states to adopt provisions that require issuers to comply with, Section 3(a)(11) and that may not impose a limitation on the maximum aggregate offering amount an issuer can raise or include investment limitations. As Rule 147 would no longer be a safe harbor for compliance with Section 3(a)(11), however, some states would need to update their existing provisions in order to effectively realize the benefits of the proposed amendments to Rule 147. These updates could be limited to removing existing references to Section 3(a)(11) and/or adopting additional provisions that comport with the proposed rule. In the interest of expanding capital raising opportunities, some state regulations may be overly permissive, leading to a “race-to-the-bottom” that could ultimately impair investor protection. Given that state regulators have economic and reputational incentives to provide local issuers and investors with capital markets that are viable over the long run, it is unclear how significant this “race-to-the-bottom” would be.
Current intrastate crowdfunding provisions provide exemptions for offerings of less than $5 million and most of these state provisions have investment limits for non-accredited investors. For example, the highest maximum offering limit that any intrastate crowdfunding provisions currently permit is in Illinois, for crowdfunded offerings up to $4 million. As shown in the baseline, the median (average) offering size limit is $2 million ($1.6 million) in all the states that currently permit crowdfunding transactions. The impact of the proposed amendments on states regulatory flexibility is therefore moderated by the current absence of an intrastate crowdfunding exemption that permits offerings greater than $5 million. In addition, while the proposed amendment relating to investment limits only permits issuers to conduct their offerings pursuant to the proposed rule in states that have included investment limitations, it does not specify what such limitations should be.
However, such limitations at the federal level could unduly restrict capital raising options of issuers, especially those issuers that sell primarily to accredited investors. A limit on the maximum offering amount could also restrict legitimate state interests in permitting larger offerings within their jurisdictions that otherwise rely on Rule 147 at the federal level. To the extent competition between states to enact securities laws to attract issuers to their territories results in better regulations that promote effective functioning of local financial markets, the proposed amendments would limit state regulators' opportunities to customize provisions that better suit the interests of issuers and investors in their state, rather than using a “one-size fits all,” or uniform, approach at the federal level that may work better for issuers and investors in some states than others.
The proposed rules would include a number of additional amendments to Rule 147, including removing the requirement that an issuer obtain investor representations as to residency status and establishing a reasonable belief standard for determining whether a purchaser is a state resident at the time of the sale of the securities. This proposed amendment would be conceptually consistent with similar requirements in Regulation D offerings and would provide greater certainty to issuers as to their compliance with the conditions of the exemption, potentially encouraging greater reliance on the amended rule. In addition, providing a reasonable belief standard for ascertaining the in-state residency of investors would provide greater flexibility for Rule 147 issuers who currently are required to obtain a written representation from investors about their residency, and who are provided no relief under the rules for sales to persons that are not, in fact, in-state residents. This, in turn, could increase the number of issuers that rely on the amended Rule 147 exemption. At the same time, such provisions may result in issuers selling to investors who are not, in-fact, residents of the state, with a corresponding decline in investor protection. We believe this decline would be somewhat mitigated by any additional requirements that state securities laws may prescribe, as well as the reasonable belief standard and the mandatory disclosures and legends required under the proposed rule amendments.
Moreover, the proposed rules would add a provision to define the residence of a purchaser that is a legal entity—such as a corporation, partnership, trust or other form of business organization—as the location where, at the time of the sale, the entity has its principal place of business. This definition would create consistency in defining the place of residence of entity investors with that of the issuer while also helping to ensure that investors are sufficiently local by nature. Such uniformity would also help to alleviate the rule's compliance burden by providing greater certainty.
The proposed rule also would include a provision to amend the limitation on resales in Rule 147(e) to provide that resales can be made only to in-state residents during the nine-month period from the date of sale by the issuer. By amending the start date for the restricted period from “date of
Additionally, the proposed approach not to condition the availability of the exemption on the issuer complying with provisions relating to resale restrictions would provide greater certainty to issuers. For example, issuers would not need to be concerned about potentially losing the exemption when the resale provisions are violated under circumstances that are beyond their control. At the same time, given that issuers would continue to be subject to other compliance conditions such as in-state sales limitations, mandatory offeree and purchaser disclosures, and stop transfer instructions, as well as federal antifraud and civil liability provisions, we believe, that this proposed amendment would not significantly increase risk of investor harm.
The proposed amendment to Rule 147(f) to require disclosure regarding the limitations on resale to every offeree, in the manner in which the offering is communicated, would provide greater flexibility to issuers and ease compliance burdens in cases of oral offerings. Similarly, the proposed amendments to remove the requirement to disclose to offerees and purchasers the stop transfer instructions provided by an issuer to its transfer agent and the provisions of Rule 147(f)(2) regarding the issuance of new certificates during the Rule 147(e) resale period, would also ease compliance burdens for issuers. These changes together would lower the regulatory burden for issuers, especially smaller issuers, but may adversely impact the information provided to potential investors (offerees), who may not receive such information in writing, prior to making their investment decision. This impact is somewhat mitigated by the continuing requirement to provide the disclosure regarding resale restrictions, in writing, to every purchaser.
Finally, the proposed rule would expand the current Rule 147 integration safe harbor such that offers and sales pursuant to Rule 147 would not be integrated with: (i) Any prior offers or sales of securities, (ii) any offers or sales made more than six months after the completion of the offering, or (iii) any subsequent offer or sale of securities that is either registered under the Securities Act, exempt from registration pursuant to Regulation A, Regulation S, Rule 701, or Section 4(a)(6) or made pursuant to an employee benefit plan. The expansion of the integration safe harbor would provide issuers with greater certainty that they can engage in other exempt or register offerings either prior to or near in time with an intrastate offering without risk of becoming ineligible to rely on the Rule 147 exemption. Similarly, the addition of Section 4(a)(6) to the list of exempt offerings which will not be integrated with a Rule 147 offering would provide certainty to issuers that they can conduct concurrent crowdfunding offerings as per the provisions of the respective exemptions. This flexibility and ensuing certainty would be especially beneficial for small issuers who likely face greater challenges in relying on a single financing option for raising the desired amount of capital. However, such expansion of the integration safe harbor could result in fewer investor protections than if the offerings were integrated. The proposed rule, however, provides for non-integration only to the extent that the issuer meets the requirements of each of the other offering exemptions that are used to raise capital. Furthermore, requiring an issuer to wait at least 30 calendar days between its last offer made in reliance on Rule 147 and the filing of a registration statement with the Commission would provide additional protection to investors in registered offerings who might otherwise be influenced by an earlier intrastate offering. Therefore, we do not believe that the proposed adoption of the integration safe harbor would result in a significantly increased risk to investors.
The proposed amendments to Rule 504 would raise the maximum aggregate amount that could be raised under a Rule 504 offering, in a 12-month period, from $1 million to $5 million and would disqualify certain bad actors from participation in Rule 504 offerings. Additionally, in order to account for the proposed increased to the Rule 504 aggregate offering amount limitation, we propose technical amendments to the notes to Rule 504(b)(2) that would update the current illustrations in the rule regarding how the aggregate offering limitation is calculated in the event that an issuer sells securities pursuant to Rule 504 and Rule 505 within the same twelve-month period.
As shown in our baseline analysis above, use of Rule 504 offerings has been declining over the past decade, in absolute terms as well as relative to Rule 506 of Regulation D. Relative to Rule 504 offerings, Rule 506 offerings have the advantage of preemption from state registration. Thus, even though Rule 506(b) offerings, unlike Rule 504 offerings, are limited to accredited investors and up to only 35 non-accredited investors, capital raising activity during the last two decades suggests that the benefits of state preemption outweigh unrestricted access to non-accredited investors. With the adoption of Rule 506(c), which allows for general solicitation, the comparative advantage of current Rule 504 has further diminished.
The current $1 million maximum amount was set by the Commission in 1988 and was meant to provide “seed capital” for small and emerging businesses.
Four parallel developments may further change the regulatory landscape
In light of these developments, the increase in the maximum amount that can be raised in Rule 504 offerings to $5 million could help make this market more attractive for startups and small businesses while also facilitating intrastate and regional offerings greater than $1 million.
A higher offering amount limit for Rule 504 offerings could increase the number of issuers that seek to utilize the exemption. To the extent that amended Rule 504 permits issuers to raise larger amounts of capital at lower costs than other unregistered capital markets, the proposed amendment could also lower issuer cost of capital and facilitate intrastate crowdfunding and the regional offerings market as it evolves. In addition to new issuers raising capital for the first time, it is likely that some issuers currently using other unregistered capital markets may switch to the amended Rule 504 market. Such movement would increase competition for supply of and demand for capital between the different unregistered markets, especially exemptions pursuant to amended Rule 147, Rule 506 of Regulation D, Regulation A, Regulation Crowdfunding, and other Section 4(a)(2) and Section 3(a)(11) exemptions. Further, modernizing our exemptive scheme in order to provide issuers, and especially small businesses, with more options for capital raising could foster an environment that encourages new market participants to enter the capital markets, thereby enhancing the overall level of capital formation in the economy.
The proposed increase in the Rule 504 offering amount limit could also increase the number of investors, including non-accredited investors that can access a wider array of investment opportunities to diversify their investment portfolios with positive effects on the supply of capital and the allocative efficiency of unregistered capital markets. At the same time, increased access by non-accredited investors to Rule 504 offerings could raise investor protection concerns. Incidence of fraud could be higher under regional offerings relying on the Rule 504 exemption due to reduced oversight by states that may rely on reciprocal registration or coordinated review programs in the alternate state. The Commission's experience with the elimination of the prohibition against general solicitation for Rule 504 offerings in 1992
Recent enforcement cases involving Rule 504 offerings could also raise concerns regarding the potential for increased incidence of fraud under the proposed amendments. Most of these cases have involved promoters who engaged in secondary market sales of unrestricted securities that were previously issued in reliance on Rule 504(b)(1)(iii), defrauding investors and in some cases unsophisticated issuers.
Some of these investor concerns could be mitigated by the proposed amendments to Rule 504(b)(2) and the proposed amendment to extend bad actor disqualification provisions to Rule 504, consistent with other rules under Regulation D. As described above, the proposed amendment to Rule 504(b)(2) would update the current illustrations
The proposed amendments to Rule 504 would include bad actor disqualification provisions that are substantially similar to related provisions in Rule 506 of Regulation D.
We expect that the bad actor disqualification provisions could help reduce the potential for fraud in these types of offerings and thus strengthen investor protection. If disqualification standards lower the risk premium associated with the risk of fraud due to the presence of bad actors in securities offerings, they could also reduce the cost of capital for issuers that rely on the amended Rule 504 exemption. In addition, the requirement that issuers determine whether any covered persons are subject to disqualification might reduce the need for investors to conduct their own due diligence and could therefore increase efficiency. While fraud can still occur without prior incidence of disqualification on the part of the issuer or covered persons, these provisions could mitigate some of the concerns relating to incidence of fraud in offerings pursuant to amended Rule 504, including offerings pursuant to regional coordinated review programs, that could be registered in one jurisdiction but offered and sold in multiple jurisdictions.
The disqualification provisions could also impose costs on issuers and covered persons. Issuers that are disqualified from using amended Rule 504 may experience an increased cost of capital or a reduced availability of capital, which could have negative effects on capital formation. In addition, issuers may incur costs related to seeking disqualification waivers from the Commission and replacing personnel or avoiding the participation of covered persons who are subject to disqualifying events. Issuers also might incur costs to restructure their share ownership to avoid beneficial ownership of 20% or more of the issuer's outstanding voting equity securities by individuals subject to disqualification.
As discussed above, the proposed amendments would provide, by reference to Rule 506(d), a reasonable care exception as applicable for other exemptive rules under Regulation D. A reasonable care exception could facilitate capital formation by encouraging issuers to proceed with Rule 504 offerings in situations in which issuers otherwise might have been deterred from relying on Rule 504 if they risked potential liability under Section 5 of the Securities Act for unknown disqualifying events. At the same time, this exception also could increase the potential for fraud, by limiting issuers' incentives to determine whether bad actors are involved with their offerings. We also recognize that some issuers might incur costs associated with conducting and documenting their factual inquiry into possible disqualifications. The rule's flexibility with respect to the nature and extent of the factual inquiry required could allow an issuer to tailor its factual inquiry as appropriate to its particular circumstances, thereby potentially limiting costs. Finally, we note that extending the disqualification provisions to Rule 504 would create a more consistent regulatory regime under Regulation D that would simplify due diligence requirements and thereby benefit issuers and investors that participate in different types of exempt offerings.
As discussed in our baseline analysis above, over the past 20 years, the use of the Rule 505 exemption has declined steadily and to a greater extent than the decline in the use of the Rule 504 exemption, in terms of the number of new offerings and amount of capital raised. During 2014, Rule 505 offerings raised less than 0.02% of capital raised in the Regulation D market, and approximately 2% of all capital raised by Regulation D offerings of less than $5 million, Rule 506 which has state preemption clearly dominates the market due to the lower regulatory burden associated with this provision, relative to Rules 504 and 505.
Further, we believe that by allowing offerings up to $5 million, amended Rule 504 would be preferable to existing Rule 505 for issuers currently eligible for both exemptions because it would provide access to an unlimited number of non-accredited investors and restricted general solicitation. Other unregistered markets may also provide a comparable market for potential Rule 505 issuers to raise the desired capital.
To the extent that issuers are not able to switch to an alternate market or raise a sufficient amount of capital, however, rescinding Rule 505 could cause overall capital formation in the economy and allocative efficiency of capital markets to decline. For example, reporting companies and investment companies cannot utilize the Rule 504 exemption. However, very few reporting companies (8 out of 289) or fund issuers (11) used the Rule 505 exemption during 2014,
The impact of repealing Rule 505 would also depend on investor
An alternative to the proposed amendments relating to the four alternative criteria an issuer must satisfy in order to demonstrate it is doing business in-state could be to lower the percentage thresholds for the current or proposed 80% threshold requirements. For example, compared with the current 80% threshold requirements, requiring issuers to have the majority of their assets, derive the majority of their revenue, or use the majority of their offering proceeds in-state could better comport with modern business practices, provide greater flexibility and make it less burdensome for issuers to satisfy these requirements. Such a change would also align Rule 147 with other tests, including the proposed majority employees test, and also those tests that use a majority threshold for determining issuer status, for example for determining foreign private issuers.
Lowering the prescriptive threshold requirements, while retaining the requirement to satisfy all or some of the criteria that provide indicia of in-state business, would help balance issuer compliance obligations with the need to align the locus of Rule 147 capital raising more closely with issuer operations. At the same time, if issuers with widely-distributed operations over more than one state are able to make greater use of amended Rule 147 under such lower thresholds, state oversight of such issuers could weaken, with a consequent decrease in investor protection. Some of these concerns could be mitigated by continuing to restrict sales to in-state residents and the inclusion of the principal place of business requirement, by the ability of states to extend their enforcement activities to issuers whose assets are located beyond state borders, and by the availability of federal authority to pursue enforcement action under the antifraud provisions of the federal securities laws.
As another alternative to the proposed rules we considered eliminating the proposed requirement to qualify under any of the “doing business” tests. This alternative would significantly ease the burden for potential Rule 147 issuers in complying with the exemption, while also modernizing regulations to align with modern business practices. As described above, in recent years new business models have emerged that may make the eligibility tests ill-suited for relying on the Rule 147 exemption as a capital raising option. Requiring an issuer to own a significant proportion of its assets, have a majority of its employees in one state, invest most of the capital raised in one state, or derive revenue mostly from in-state sales could create inefficient constraints for startups and small businesses to operate and grow. In view of these broad changes in business practices, the principal place of business requirement may be sufficiently effective in establishing the local nature of an offering pursuant to Rule 147 for purposes of compliance with the “doing business” in-state requirement at the federal level. Relative to the proposed approach, this alternative approach would provide more flexibility to state regulators to enact their own eligibility and residency requirements that better suit the interests of issuers and investors in their state, rather than using a “one-size-fits all,” or uniform, approach at the federal level that may work better for issuers and investors in some states than others.
At the same time, under such alternative, as issuers with widely-distributed assets and operations over more than one state make use of amended Rule 147, state oversight of such issuers could weaken, with a consequent decrease in investor protection. For example, if a majority or a significant proportion of an issuer's assets is located out-of-state, it could be more difficult for state regulators to assess whether any disclosures to investors about such assets are fair and accurate. At the same time, state enforcement actions for protecting in-state investors can extend to issuers whose assets are located beyond the boundaries of the state. Additionally, under this alternative, the principal place of business requirement would replace the prescriptive “doing business” in-state requirements and could help mitigate investor protection concerns related to the local nature of the offering.
The offer limit under Rule 504 was last increased from $500,000 to $1 million in 1988. Adjusted for inflation, the $1 million in 1988 would be worth approximately $2 million today.
Alternately, the maximum offering limit under amended Rule 504 could be raised to an amount greater than $5 million. One example could be to align the maximum offering limit to that of the Tier I offer limit ($20 million) under amended Regulation A. This could allow for more cost-effective state registration, while also providing a competitive alternative to eligible issuers in Tier 1 of the Regulation A market. However, unlike the Regulation A market, non-accredited investors have no investment limits under the Rule 504 provisions. Moreover, recent enforcement cases have highlighted instances of investor abuse in offerings that are sold only to accredited investors in reliance on Rule 504(b)(1)(iii). A higher maximum offering amount would thus lead to greater investor protection concerns.
In light of concerns about potential abuses involving securities issued in reliance on Rule 504(b)(1)(iii),
Additionally, Rule 504 could be amended to include additional disclosures to address investor protection concerns arising from the increase in the maximum offering size. While such disclosures could mitigate some of these concerns, they would increase the compliance burden for Rule 504 issuers and may also overlap or extend similar requirements under state law provisions in the jurisdiction in which such Rule 504 offering is registered.
We request comments regarding our analysis of the potential economic effects of the proposed amendments and other matters that may have an effect on the proposed rule. We request comment from the point of view of issuers, investors and other market participants. With regard to any comments, we note that such comments are of particular assistance to us if accompanied by supporting data and analysis of the issues addressed in those comments. For example, we are interested in receiving estimates and data on all aspects of the proposal and, in particular, on the expected size of the Rule 147 and Rule 504 markets (number of offerings, number of issuers, size of offerings, number of investors, etc., as well as information comparing these estimates to our baseline), overall economic impact of the proposed amendments, and any other aspect of this economic analysis. We also are interested in comments on the benefits and costs we have identified and any benefits and costs we may have overlooked as well as the impact of the proposed amendments on competition.
66. What type (size, industry, age, etc.) and how many issuers have relied on Rule 147 during the years 2013 and 2014? In what states were these offerings conducted? How many of these were state-registered offerings? How many claimed an exemption from registration under state laws?
67. What types of issuers (size, industry, age, etc.) would most likely rely on intrastate or regional offerings pursuant to amended Rules 147 and 504?
68. As proposed, would amended Rules 147 and 504 attract startups and small businesses that are considering an offering pursuant to Regulation Crowdfunding? What types of issuers (size, industry, age, etc.) would prefer to conduct an intrastate crowdfunding offering to an interstate crowdfunding offering?
69. How similar is a securities-based intrastate crowdfunding offering to a securities-based offering under Regulation Crowdfunding? How would the cost of an interstate crowdfunding offering compare with the cost of an intrastate crowdfunding offering? How would the expected incidence of success, failure, fraud and other outcomes of an interstate crowdfunding offering compare to the cost of an intrastate crowdfunding offering?
70. Are issuers more likely to use the exemption under amended Rule 147 or the exemption under amended Rule 504 for intrastate offerings if they have a choice under state regulation? Would the cost of raising capital be lower under amended Rule 147 or under amended Rule 504?
71. As proposed, would the amended Rules 147 and 504 attract issuers that are considering offerings under Rule 506(b) or Rule 506(c) of Regulation D or Regulation A? What would the costs and benefits be from relying on the amended rules, compared to the costs and benefits from relying on Rule 506(b) or Rule 506(c) of Regulation D or Regulation A? Please provide estimates, where possible.
72. What would be the economic effect of the proposed modification of the “doing business” in-state tests on Rule 147 offerings? What types of issuers and investors are most likely to be affected by the proposed amendments to the “doing business” tests?
73. What would be the economic effect of the elimination of all “doing business” in-state tests on Rule 147 offerings? What types of issuers and investors are most likely to be affected by the existing “doing business” in-state requirements? Would the elimination of all “doing business” in-state tests decrease investor protection? What would be the economic effect of retaining some or all of the tests with lower qualifying thresholds?
74. What are the economic effects of requiring a maximum offering amount and investment limits for Rule 147 offerings that are exempt from state registration? Will issuers be likely to use Rule 147 if these proposed amendments relating to state-exempt offerings are adopted?
75. How would amended Rule 147 affect other state registered and state exempt offerings? What type of issuers (size, age, industry, etc.) would rely on amended Rule 147 pursuant to state registration or a state exemption other than intrastate crowdfunding? What would be the typical offering sizes?
76. Would the amended Rules 147 and 504 attract accredited and/or non-accredited investors to intrastate and regional offerings? How would the costs and benefits of the amended requirements compare to the costs and benefits of state preemption that currently exists for securities offered under Rule 506 of Regulation D? How would the costs and benefits compare to other exempt offering methods, such as Regulation A or Regulation Crowdfunding? Please provide estimates, where possible.
77. Would the amended Rule 147 and 504 exemptions attract intermediaries (
78. To what extent would additional resale restrictions on securities issued in reliance of Rule 504(b)(1)(iii) decrease the liquidity of such securities?
79. How would a decrease in the Rule 504 offering amount limitation to, for example, $2.5 million in a 12-month period affect the use of Rule 504 exemption? Would it be sufficient to efficiently address capital raising needs of issuers and effectively address investor protection concerns? Would the costs of state registration be feasible under a smaller Rule 504 offering limitation?
80. How would an increase in the Rule 504 offering amount limitation to, for example, $20 million in a 12-month period affect the use of Tier 1 of Regulation A? How would issuers benefit from the increased offering limitation? Would any such increase in the offering limitation have an adverse effect on investor protection?
81. In the case of a repeal of Rule 505, which alternate exemption would Rule 505 issuers be most likely to utilize? How would the costs of capital for such issuers be affected?
82. What would the cost be for an issuer that issues securities under state crowdfunding provisions and crosses the Section 12(g) thresholds for registering with the Commission? Please provide quantitative estimates, where available.
83. What would be the economic impact of alternatives to the proposed rule amendments that have been discussed above?
The proposed amendments to Rule 147 do not contain a “collection of information” requirement within the meaning of the Paperwork Reduction Act of 1995 (“PRA”).
The proposed amendments to Rule 504 of Regulation D contain “collection of information” requirements within the meaning of the PRA. There are two titles for the collection of information requirements contemplated by the proposed amendments. The first title is: “Form D” (OMB Control No. 3235-0076), an existing collection of information.
The information collection requirements related to the filing of Form D with the Commission are mandatory to the extent that an issuer elects to make an offering of securities in reliance on the relevant exemption. Responses are not confidential, and there is no mandatory retention period for the information disclosed. The hours and costs associated with preparing and filing forms and retaining records constitute reporting and cost burdens imposed by the collection of information requirements. We are applying for an OMB control number for the proposed new collection of information in accordance with 44 U.S.C. 3507(j) and 5 CFR 1320.13, and OMB has not yet assigned a control number to the new collection. Responses to the new collection of information would be mandatory. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information requirement unless it displays a currently valid OMB control number.
The Form D filing is required for issuers as a notice of sales without registration under the Securities Act based on a claim of exemption under Regulation D or Section 4(a)(5) of the Securities Act. The Form D must include basic information about the issuer, certain related persons, and the offering. This information is used by the Commission to observe use of the Regulation D exemptions and safe harbor.
As we are not proposing to alter the information requirements of Form D, our proposed amendments will not affect the paperwork burden of the form, and the burden for responding to the collection of information in Form D will be the same as before the proposed amendments to Form D. However, we estimate that our proposed amendments to increase the aggregate amount of securities that may be offered and sold in any 12-month period in reliance on Rule 504 will increase the number of Form D filings that are made with the Commission.
The table below shows the current total annual compliance burden, in hours and in costs, of the collection of information pursuant to Form D. For purposes of the PRA, we estimate that, over a three-year period, the average burden estimate will be four hours per Form D. Our burden estimate represents the average burden for all issuers. This burden is reflected as a one hour burden of preparation on the company and a cost of $1,200 per filing. In deriving these estimates, we assume that 25% of the burden of preparation is carried by the issuer internally and that 75% of the burden of preparation is carried by outside professionals retained by the issuer at an average cost of $400 per hour. The portion of the burden carried by outside professionals is reflected as a cost, while the portion of the burden carried by the issuer internally is reflected in hours.
For
We estimate that the proposed amendments to Rule 504 would result in a much smaller annual increase in the number of new Form D filings than the average annual increase that has occurred over the past five years. To estimate how the proposed amendments to Rule 504 would impact the number of new Form D filings, we used as a reference point the impact of a past rule change on the market for Regulation D
Based on these increases, we estimate that the annual compliance burden of the collection of information requirements for issuers making Form D filings after amending Rule 504 to increase the aggregate offering amount from $1 million to $5 million would be an aggregate 25,500 hours of issuer personnel time and $30,600,000 for the services of outside professionals per year.
As
The Commission would adopt the proposed Regulation D Rule 504(b)(3) Felons and Other Bad Actors Disclosure Statement under the Securities Act. The Regulation D Rule 504(b)(3) Felons and Other Bad Actors Disclosure Statement that would be required to be furnished to investors does not involve submission of a form filed with the Commission and is not required to be presented in any particular format, although it must be in writing. The hours and costs associated with preparing and furnishing the Regulation D Rule 504(b)(3) Felons and Other Bad Actors Disclosure Statement to investors in the offering constitute reporting and cost burdens imposed by the collection of information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.
The disclosure or paperwork burden imposed on issuers appears in a note to proposed Rule 504(b)(3) and pertains to events that occurred before effectiveness of the final rules but which would have triggered disqualification had they occurred after effectiveness. Issuers relying on proposed Rule 504 would be required to furnish disclosure of any relevant past events that would have triggered disqualification under proposed Rule 504(b)(3) that relate to the issuer or any other covered person. If there are any such events, a disclosure statement would be required to be furnished, a reasonable time before sale, to all purchasers in the offering. The disclosure requirement would serve to protect purchasers by ensuring that they receive information regarding any covered persons that were subject to such disqualifying events.
The disclosure requirement would not apply to triggering events occurring after the effective date of the proposed rule amendments, if adopted, because those events would result in disqualification from reliance on Rule 504 (absent a waiver or other exception provided in Rule 506(d)), rather than any disclosure obligation.
The steps that issuers would take to comply with the proposed disclosure requirement are expected to mirror the steps they would take to determine whether they are disqualified from relying on Rule 504. We expect that issuers planning or conducting a Rule 504 offering would undertake a factual
We expect that the size of the issuer and the circumstances of the particular Rule 504 offering would determine the scope of the factual inquiry and require tailored and offering-specific data gathering approaches. We do not anticipate that it would generally be necessary for any issuer or any compensated solicitor to make inquiry of any covered individual with respect to ascertaining the existence of events that require disclosure more than once, because the proposed period to be covered by the inquiry would end with the effective date of any new disqualification rules (so future events would be unlikely to affect the inquiry or change the disclosures that would have to be made). We do, however, expect that issuers may be required to revise their factual inquiry for each Rule 504 offering due to changes in management or intermediaries, other changes to the group of covered persons or if questions arise about the accuracy of previous responses. We also would expect that the disclosure requirement may serve the additional function of helping issuers develop processes and procedures for the factual inquiry required to establish reasonable care under the disqualification provisions of Rule 506(d).
We anticipate that the Regulation D Rule 504(b)(3) Felons and Other Bad Actors Disclosure Statement would result in an incremental increase in the burdens and costs for issuers that rely on the Rule 504 exemption by requiring these issuers to conduct factual inquiries into the backgrounds of covered persons with regard to events that occurred before effectiveness of the final bad actor disqualification provisions. For purposes of the PRA, we estimate the total annual increase in paperwork burden for all affected Rule 504 issuers to comply with our proposed collection of information requirements would be approximately 830 hours of company personnel time and approximately $9,600 for the services of outside professionals. These estimates include the incremental time and cost of conducting a factual inquiry to determine whether the Rule 504 issuers have any covered persons with past disqualifying events. The estimates also include the cost of preparing a disclosure statement that issuers would be required to furnish to each purchaser a reasonable time prior to sale.
In deriving our estimates, consistent with those assumptions used in the PRA analysis for the Rule 506 bad actor disqualification provisions,
Approximately 750 Rule 504 issuers
On the basis of the factual inquiry, approximately eight issuers (or approximately 1%) would spend ten hours to prepare a disclosure statement describing matters that would have triggered disqualification under Rule 504(b)(3) of Regulation D had they occurred on or after the effective date of the rule amendments; and
For purposes of the disclosure statement, approximately eight Rule 504 issuers would retain outside professional firms to spend three hours on disclosure preparation at an average cost of $400 per hour.
The increase in burdens and costs associated with conducting the proposed factual inquiry for the disclosure statement requirement should pose a minimal incremental effort given that issuers are simultaneously required to conduct a similar factual inquiry for purposes of determining disqualification from the Rule 506 exemption.
It is difficult to provide any standardized estimates of the costs involved with the factual inquiry. There is no central repository that aggregates information from all federal and state courts and regulators that would be relevant in determining whether a covered person has a disqualifying event in his or her past. In this regard, we are currently unable to accurately estimate the burdens and costs for issuers in a verifiable way. We expect, however, that the costs to issuers may be higher or lower depending on the size of the issuer and the number and roles of covered persons. We realize there may be a wide range of issuer size, management structure, and offering participants involved in Rule 504 offerings and that different issuers may develop a variety of different factual inquiry procedures.
Where the issuer or any covered person would be subject to an event covered by Rule 504(b)(3) that existed before the effective date of these rules, the issuer would be required to prepare disclosure for each relevant Rule 504 offering. The estimates include the time and the cost of data gathering systems, the time and cost of preparing and reviewing disclosure by in-house and outside counsel and executive officers, and the time and cost of delivering or furnishing documents and retaining records.
Issuers conducting ongoing or continuous offerings would be required to update their factual inquiry and disclosure as necessary to address additional covered persons. The annual incremental paperwork burden, therefore, depends on an issuer's Rule 504 offering activity and the changes in covered persons from offering to offering. For example, some issuers may only conduct one Rule 504 offering during a year while other issuers may have multiple, separate Rule 504 offerings during the course of the same year involving different financial intermediaries, may hire new executive officers or may have new 20% shareholders, any of which would result in a different group of covered persons. In deriving our estimates, we recognize that the burdens would likely vary among individual companies based on a number of factors, including the size and complexity of their organizations. We believe that some companies would experience costs in excess of this estimated average and some companies may experience less than the estimated average costs.
We request comment on our approach and the accuracy of the current estimates. Pursuant to 44 U.S.C. 3506(c)(2)(A), the Commission solicits
Persons submitting comments on the collection of information requirements should direct the comments to the Office of Management and Budget, Attention: Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Washington, DC 20503, and send a copy to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090, with reference to File No. S7-22-15. Requests for materials submitted to OMB by the Commission with regard to these collections of information should be in writing, refer to File No. S7-22-15, and be submitted to the Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549-1090. OMB is required to make a decision concerning the collection of information between 30 and 60 days after publication of this release. Consequently, a comment to OMB is assured of having its full effect if OMB receives it within 30 days of publication.
The Regulatory Flexibility Act (“RFA”)
The primary reason for, and objective of, the proposed amendments to Rule 147 is to establish a new Securities Act exemption for intrastate offerings of securities by local companies, including offerings relying upon newly adopted and proposed crowdfunding provisions under state securities laws. Market participants and state regulators have indicated that the combined effect of Section 3(a)(11)'s statutory limitation on offers and the prescriptive issuer eligibility requirements of Rule 147 unduly restrict the availability of the exemption for local companies that would otherwise conduct intrastate offerings in a manner that is consistent with the original intent of Section 3(a)(11). These commenters have also indicated that the current requirements of Rule 147 make it difficult for issuers to take advantage of recently adopted state crowdfunding provisions. The proposed amendments to Rule 147 would ease these limitations in the rule and would allow an issuer to engage in any form of general solicitation or general advertising, including the use of publicly accessible Internet Web sites, to offer and sell its securities, so long as all purchasers of such securities are residents of the same state or territory in which the issuer's principal place of business is located. We propose to amend Rule 147 pursuant to our general exemptive authority under Section 28 of the Securities Act.
The primary reason for, and objective of, the proposed amendments to Rule 504 is to facilitate capital formation by increasing the flexibility of state securities regulators to implement regional coordinated review programs that would facilitate regional offerings. The proposed amendments to Rule 504 would raise the aggregate amount of securities an issuer may offer and sell in any 12-month period from $1 million to $5 million and disqualify certain bad actors from participating in Rule 504 offerings. We believe that raising the aggregate offering limitation and disqualifying certain bad actors would maximize the flexibility of state securities regulators to implement regional coordinated review programs and provide for greater consistency across Regulation D.
We are proposing the amendments pursuant to Sections 3(b)(1), 4(a)(2), 19 and 28 of the Securities Act.
For purposes of the RFA, under our rules, an issuer, other than an investment company, is a “small business” or “small organization” if it has total assets of $5 million or less as of the end of its most recent fiscal year and is engaged or proposing to engage in an offering of securities which does not exceed $5 million.
While we lack data on the number and size of Rule 147 offerings
Currently, issuers that intend to conduct intrastate crowdfunding offerings are required to use the Rule 147 exemption by most of the states that have enacted crowdfunding provisions. Since December 2011, when the first state enacted crowdfunding provisions, 106 state crowdfunding offerings have been reported to be filed with the respective state regulators.
The proposed amendments to Rule 504 would affect small issuers that rely on this exemption from Securities Act registration. All issuers that sell securities in reliance on Regulation D are required to file a Form D with the Commission reporting the transaction. For the year ended December 31, 2014, 19,717 issuers made 22,004 new Form D filings, of which 495 issuers relied on the Rule 504 exemption. Based on the information reported by issuers on Form D, there were 146 small issuers
The proposed amendments to Rule 147 would not impose any reporting or recordkeeping requirements, but would require that issuers conducting offerings in reliance on the rule make certain specific disclosures to each offeree and purchaser in the offering. These disclosures would be made to each offeree in the manner in which any such offer is communicated and to each purchaser of a security in the offering in writing. The proposed amendments to Rule 147 would also require that issuers place a specific legend on the certificate or other document evidencing the securities that are being offered in reliance on the rule.
In order to comply with proposed Rule 147(d), issuers would need to have a reasonable belief that a prospective purchaser resides within the state or territory of which the issuer has its principal place of business. The steps required to establish reasonable belief would vary with the circumstances. For example, an issuer may need to consider facts and circumstances, such as the existence of a pre-existing relationship between the issuer and the prospective purchaser providing the issuer with insight and knowledge as to the primary residence of the prospective purchaser. An issuer may also consider other facts and circumstances establishing the residency of a prospective purchaser, such as evidence of the home address of the prospective purchaser, as documented by a recently dated utility bill, pay-stub, information contained in a state or federal tax returns, or any state-issued documentation, such as a driver's license or identification card.
The proposed amendments to Rule 504 would increase the aggregate offering ceiling from $1 million to $5 million and disqualify certain bad actors from participating in Rule 504 offerings. Issuers would need to comply with all the current requirements of Rule 504, including the filing of a Form D.
In addition, we would expect that issuers would exercise reasonable care to ascertain whether a disqualification exists with respect to any covered person, and document their exercise of reasonable care. The steps required would vary with the circumstances, but we anticipate would generally include making factual inquiry of covered persons and, where the issuer has reason to question the veracity or completeness of responses to such inquiries, further steps such as reviewing information on publicly available databases. In addition, issuers would have to prepare any necessary disclosure regarding preexisting events. We would expect that the costs of compliance would vary depending on the size and nature of the offering but that they would generally be lower for small entities than for larger ones because of the relative simplicity of their organizational structures and securities offerings and the generally smaller numbers of individuals and entities involved.
We believe that there are no federal rules that conflict with the proposed amendments to Rule 147 and Rule 504 of Regulation D. As discussed above,
The Regulatory Flexibility Act directs us to consider significant alternatives that would accomplish the stated objectives of our amendments, while minimizing any significant adverse impact on small entities. Specifically, we considered the following alternatives: (1) Establishing different compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) clarifying, consolidating or simplifying compliance and reporting requirements for small entities under the rule; (3) using performance rather than design standards; and (4) exempting small entities from coverage of all or part of the proposed amendments.
With respect to clarification, consolidation and simplification of the rule's compliance and reporting requirements for small entities, the proposed amendments to Rule 147 do not impose any new reporting requirements. To the extent the proposed amendments may be considered to create a new compliance requirement to have a reasonable belief that a prospective purchaser is a resident of the state or territory in which the issuer has its principal place of business, the precise steps necessary to meet that requirement will vary according to the circumstances, and this flexible standard will be applicable to all issuers, regardless of size. We believe our proposals are designed to streamline and modernize the rule for all issuers, both large and small. Nevertheless, we request comment on ways to clarify, consolidate, or simplify any part of the proposed amendments to Rule 147, including whether we should retain the current safe harbor under Rule 147.
In connection with our proposed amendments to Rule 147, we do not think it feasible or appropriate to establish different compliance or reporting requirements or timetables for small entities. The proposed amendments are designed to facilitate access to capital for both large and small issuers, but particularly smaller issuers who may satisfy their financing needs by limiting the sales of their securities only to residents of the state or territory
With respect to exempting small entities from coverage of the proposed amendments to Rule 147, we believe such changes would be impracticable. These proposed amendments are designed to facilitate an issuer's access to capital, regardless of the size of the issuer. We have endeavored throughout these proposed amendments to minimize the regulatory burden on all issuers, including small entities, while meeting our regulatory objectives. We believe exempting small entities from our proposals would increase, rather than decrease, their regulatory burden. Nevertheless, we request comment on ways in which we could exempt small entities from coverage of any unduly onerous aspects of our proposed amendments.
In connection with our proposed amendments to Rule 504 of Regulation D, we do not think it is feasible or appropriate to establish different compliance or reporting requirements or timetables for small entities. Our proposals are intended to facilitate issuers' access to capital and are particularly designed for smaller issuers who are not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and who are offering no more than $5 million of their securities in any twelve month period. The proposed amendments are also designed to exclude “felons and other `bad actors' ” from involvement in Rule 504 securities offerings, which we believe could benefit small issuers by protecting them and their investors from bad actors and increasing investor trust in such offerings. Increased investor trust could potentially reduce the cost of capital and create greater opportunities for small businesses to raise capital. Exempting small entities from our proposals would increase, rather than decrease, their regulatory burden. Nevertheless, we request comment on whether it is feasible or appropriate for small entities to have different requirements or timetables for compliance with our proposals.
With respect to clarification, consolidation and simplification of the compliance and reporting requirements for small entities, the proposed amendments do not impose any new reporting requirements. To the extent the proposed amendments may be considered to create a new compliance requirement to exercise reasonable care to ascertain whether a disqualification exists with respect to any offering and to furnish a written description of preexisting triggering events, the precise steps necessary to meet that proposed requirement would vary according to the circumstances. In general, we believe the requirement would more easily be met by small entities than by larger ones because we believe that their structures and securities offerings would be generally less complex and involve fewer participants. Nevertheless, we request comment on ways to clarify, consolidate, or simplify any part of our proposed rule amendments for small entities.
With respect to the use of performance or design standards, we note that our proposed amendments to Rule 504 relating to increasing the aggregate offering amount that may be offered and sold in any 12-month period from $1 million to $5 million would use design rather than performance standards. We note, however, that the “reasonable care” exception would be a performance standard. With respect to exempting small entities from coverage of these proposed amendments, we believe that such an approach would be impracticable. Regulation D was designed, in part, to provide exemptive relief for smaller issuers. Exempting small entities from bad actor provisions could result in a decrease in investor protection and trust in the private placement and small offerings markets. We have endeavored to minimize the regulatory burden on all issuers, including small entities, while meeting our regulatory objectives, and have proposed to include a “reasonable care” exception and waiver authority for the Commission to give issuers and other covered persons additional flexibility with respect to the application of these amendments.
We encourage comments with respect to any aspect of this initial regulatory flexibility analysis. In particular, we request comments regarding:
• The number of small entities that may be affected by the proposals;
• The existence or nature of the potential impact of the proposals on small entities discussed in the analysis; and
• How to quantify the impact of the proposed amendments.
Commenters are asked to describe the nature of any impact and provide empirical data supporting the extent of the impact. Such comments will be considered in the preparation of the Final Regulatory Flexibility Analysis, if the proposals are adopted, and will be placed in the same public file as comments on the proposed amendments themselves.
For purposes of the Small Business Regulatory Enforcement Fairness Act of 1996 (“SBREFA”),
• An annual effect on the economy of $100 million or more (either in the form of an increase or a decrease);
• a major increase in costs or prices for consumers or individual industries; or
• significant adverse effects on competition, investment or innovation.
If a rule is “major,” its effectiveness will generally be delayed for 60 days pending Congressional review.
We request comment on whether our proposed amendments would be a “major rule” for purposes of SBREFA. We solicit comment and empirical data on:
• The potential effect on the U.S. economy on an annual basis;
• any potential increase in costs or prices for consumers or individual industries; and
• any potential effect on competition, investment or innovation.
We request those submitting comments to provide empirical data and other factual support for their views to the extent possible.
The amendments contained in this release are being proposed under the authority set forth in Sections 3(b)(1), 4(a)(2), 19 and 28 of the Securities Act of 1933, as amended.
Reporting and recordkeeping requirements, Securities.
15 U.S.C. 77b, 77b note, 77c, 77d, 77f, 77g, 77h, 77j, 77r, 77s, 77z-3, 77sss, 78c, 78d, 78j, 78
(a)
(1) Registers the offer and sale of such securities in the state in which all purchasers of the securities are resident; or
(2) Conducts the offer and sale of such securities pursuant to an exemption from registration in the state in which all purchasers of the securities are resident that limits the amount of securities:
(i) An issuer may sell pursuant to such exemption to no more than $5 million in a twelve-month period; and
(ii) An investor may purchase in such offering (as determined by the appropriate authority in such state).
(b)
(c)
(1) Have its principal place of business within the state or territory in which all purchasers of the securities are resident. The issuer shall be deemed to have its principal place of business in a state or territory in which the officers, partners or managers of the issuer primarily direct, control and coordinate the activities of the issuer; and
(2) Meet at least one of the following requirements:
(i) The issuer derived at least 80% of its consolidated gross revenues from the operation of a business or of real property located in or from the rendering of services within such state or territory;
(ii) The issuer had at the end of its most recent semi-annual fiscal period prior to an initial offer of securities in any offering or subsequent offering pursuant to this section, at least 80% of its assets and those of its subsidiaries on a consolidated basis located within such state or territory;
(iii) The issuer intends to use and uses at least 80% of the net proceeds to the issuer from sales made pursuant to this section (§ 230.147) in connection with the operation of a business or of real property, the purchase of real property located in, or the rendering of services within such state or territory; or
(iv) A majority of the issuer's employees are based in such state or territory.
An issuer that has previously conducted an intrastate offering pursuant to this section (§ 230.147) may not conduct another intrastate offering pursuant to this section (§ 230.147), based upon satisfaction of the principal place of business definition contained in paragraph (c)(1) of this section (§ 230.147(c)(1)) in a different state or territory, until the expiration of the time period specified in paragraph (e) of this section (§ 230.147(e)), calculated on the basis of the date of the last sale in such offering.
Revenues must be calculated based on the issuer's most recent fiscal year, if the first offer of securities pursuant to this section is made during the first six months of the issuer's current fiscal year, and based on the first six months of the issuer's current fiscal year or during the twelve-month fiscal period ending with such six-month period, if the first offer of securities pursuant to this section is made during the last six months of the issuer's current fiscal year.
(d)
(1) A corporation, partnership, limited liability company, trust or other form of business organization shall be deemed to be a resident of a state or territory if, at the time of sale to it, it has its principal place of business, as defined in paragraph (c)(1) of this section, within such state or territory.
(2) Individuals shall be deemed to be residents of a state or territory if such individuals have, at the time of sale to them, their principal residence in the state or territory.
(3) A corporation, partnership, trust or other form of business organization, which is organized for the specific purpose of acquiring securities offered pursuant to this section (§ 230.147), shall not be a resident of a state or territory unless all of the beneficial owners of such organization are residents of such state or territory.
(e)
(f)
(i) Place a prominent legend on the certificate or other document evidencing
(ii) Issue stop transfer instructions to the issuer's transfer agent, if any, with respect to the securities, or, if the issuer transfers its own securities, make a notation in the appropriate records of the issuer.
(2) The issuer shall, in connection with the issuance of new certificates for any of the securities that are sold pursuant to this section (§ 230.147) that are presented for transfer during the time period specified in paragraph (e), take the steps required by paragraphs (f)(1)(i) and (ii) of this section.
(3) The issuer shall, at the time of any offer or sale by it of a security pursuant to this section (§ 230.147), prominently disclose to each offeree in the manner in which any such offer is communicated and to each purchaser of such security in writing the following: “Sales will be made only to residents of the same state or territory as the issuer. Offers and sales of these securities are made under an exemption from registration and have not been registered under the Securities Act of 1933. For a period of nine months from the date of the sale by the issuer of the securities, any resale of the securities (or the underlying securities in the case of convertible securities) by a purchaser shall be made only to persons resident within the purchaser's state or territory of residence.”
(g)
(1) Prior offers or sales of securities; or
(2) Subsequent offers or sales of securities that are:
(i) Registered under the Act, except as provided in paragraph (h) of this section;
(ii) Exempt from registration under Regulation A (§ 230.251
(iii) Exempt from registration under Rule 701 (§ 230.701);
(iv) Made pursuant to an employee benefit plan;
(v) Exempt from registration under Regulation S (§§ 230.901 through 230.905);
(vi) Exempt from registration under section 4(a)(6) of the Act (15 U.S.C. 77d(a)(6)); or
(vii) Made more than six months after the completion of an offering conducted pursuant to this section.
If none of the safe harbors applies, whether subsequent offers and sales of securities will be integrated with any securities offered or sold pursuant to this section (§ 230.147) will depend on the particular facts and circumstances.
(h)
(b) * * *
(2) The aggregate offering price for an offering of securities under this § 230.504, as defined in § 230.501(c), shall not exceed $5,000,000, less the aggregate offering price for all securities sold within the twelve months before the start of and during the offering of securities under this § 230.504, in reliance on any exemption under section 3(b)(1), or in violation of section 5(a) of the Securities Act.
The calculation of the aggregate offering price is illustrated as follows:
If an issuer sold $900,000 on June 1, 2013 under this § 230.504 and an additional $4,100,000 on December 1, 2013 under § 230.505, the issuer could only sell $900,000 of its securities under this § 230.504 on June 1, 2014. Until December 1, 2014, the issuer must count the December 1, 2013 sale towards the $5,000,000 limit within the preceding twelve months.
If a transaction under § 230.504 fails to meet the limitation on the aggregate offering price, it does not affect the availability of this § 230.504 for the other transactions considered in applying such limitation. For example, if an issuer sold $5,000,000 of its securities on January 1, 2014 under this § 230.504 and an additional $500,000 of its securities on July 1, 2014, this § 230.504 would not be available for the later sale, but would still be applicable to the January 1, 2014 sale.
(3)
For purposes of disclosure of prior “bad actor” events pursuant to § 230.506(e), an issuer shall furnish to each purchaser, a reasonable time prior to sale, a description in writing of any matters that would have triggered disqualification under this paragraph (b)(3) but occurred before January 11, 2016.
(b) * * *
(2)
By the Commission.
Category | Regulatory Information | |
Collection | Federal Register | |
sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
Publisher | Office of the Federal Register, National Archives and Records Administration |