Page Range | 3289-3698 | |
FR Document |
Page and Subject | |
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81 FR 3693 - Revocation of Executive Orders 13574, 13590, 13622, and 13645 With Respect to Iran, Amendment of Executive Order 13628 With Respect to Iran, and Provision of Implementation Authorities for Aspects of Certain Statutory Sanctions Outside the Scope of U.S. Commitments Under the Joint Comprehensive Plan of Action of July 14, 2015 | |
81 FR 3691 - Martin Luther King, Jr., Federal Holiday, 2016 | |
81 FR 3689 - Religious Freedom Day, 2016 | |
81 FR 3411 - Sunshine Act Meeting | |
81 FR 3553 - Additional Culturally Significant Objects Imported for Exhibition Determinations: “Bellissima: Italy and High Fashion 1945-1968” Exhibition | |
81 FR 3475 - Sunshine Act Meeting | |
81 FR 3330 - Iranian Transactions and Sanctions Regulations | |
81 FR 3476 - Sunshine Act Meeting | |
81 FR 3353 - Proposed Amendment and Establishment of Restricted Areas; Chincoteague Inlet, VA | |
81 FR 3556 - Petition for Exemption; Summary of Petition Received; Florida State University | |
81 FR 3555 - Petition for Exemption; Summary of Petition Received; Douglas Trudeau | |
81 FR 3555 - Notice of Release From Quitclaim Deed and Federal Grant Assurance Obligations at Santa Maria Public Airport, Santa Maria, Santa Barbara County, California | |
81 FR 3554 - Petition for Exemption; Summary of Petition Received; Alaska Aerial Media | |
81 FR 3554 - Notice of Release From Quitclaim Deed and Federal Grant Assurance Obligations at Oxnard Airport, Oxnard, Ventura County, California | |
81 FR 3557 - Petition for Exemption; Summary of Petition Received; Auburn University | |
81 FR 3556 - Petition for Exemption; Summary of Petition Received | |
81 FR 3475 - Bulk Manufacturer of Controlled Substances Application: Johnson Matthey, Inc. | |
81 FR 3420 - Information Collection; Economic Price Adjustment | |
81 FR 3557 - Petition for Exemption; Summary of Petition Received; Hazon Solutions LLC | |
81 FR 3420 - Information Collection; Change Order Accounting | |
81 FR 3333 - Security Zones; Annual Events in the Captain of the Port Detroit Zone-North American International Auto Show, Detroit River, Detroit MI | |
81 FR 3465 - Notice of Realty Action: Proposed Competitive Sealed-Bid, Oral Auction Sale and Segregation of Public Land in Owyhee County, ID | |
81 FR 3463 - Notice of Intent To Amend the Resource Management Plan for the Sonoran Desert National Monument, Arizona, and Prepare an Associated Environmental Impact Statement | |
81 FR 3468 - Notice of Enforcement of Temporary Court-Ordered Closure To Target Shooting on Public Lands in the Sonoran Desert National Monument, Arizona | |
81 FR 3377 - Approval of Subzone Status, MannKind Corporation, Danbury, Connecticut | |
81 FR 3467 - Notice of Intent To Prepare an Environmental Impact Statement for Expanding an Existing Perlite Mining Operation; Lake County, Oregon | |
81 FR 3462 - Notice of Temporary Closure of Public Land in Sierra County, New Mexico | |
81 FR 3448 - Intent To Request Renewal From OMB of One Current Public Collection of Information: Pipeline Operator Security Information | |
81 FR 3431 - Cellular, Tissue and Gene Therapies Advisory Committee; Notice of Meeting | |
81 FR 3464 - Public Land Order No. 7849; Withdrawal of Public Land for the Protection of the Red Gulch Dinosaur Tracksite; Wyoming | |
81 FR 3553 - 30-Day Notice of Proposed Information Collection: Commodity Jurisdiction Determination | |
81 FR 3481 - Notice of Intent To Prepare an Environmental Impact Statement for the Smithsonian Institution's South Mall Campus Master Plan | |
81 FR 3411 - Notice of Agreements Filed | |
81 FR 3398 - Federal Perkins Loan, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant Programs; 2016-2017 Award Year Deadline Dates | |
81 FR 3397 - Applications for New Awards; Talent Search Program; Correction | |
81 FR 3410 - Consumer Advisory Committee | |
81 FR 3453 - Salt River Pima-Maricopa Indian Community of the Salt River Reservation Liquor Ordinance | |
81 FR 3327 - Establishment of the Los Olivos District Viticultural Area | |
81 FR 3558 - Agency Information Collection Activities: Notice of Request for Extension of Currently Approved Information Collection | |
81 FR 3409 - National Coastal Condition Assessment 2010 | |
81 FR 3356 - Proposed Establishment of the Willcox Viticultural Area | |
81 FR 3452 - Reopening of Nomination Period for State Government Members of the Advisory Committee on Climate Change and Natural Resource Science | |
81 FR 3354 - Access to Data Obtained by Security-Based Swap Data Repositories and Exemption From Indemnification Requirement | |
81 FR 3520 - J.P. Morgan Exchange-Traded Fund Trust, et al.; Notice of Application | |
81 FR 3476 - Notice of Availability of Funds and Funding Opportunity Announcement for Linking to Employment Activities Pre-Release Through Specialized American Job Centers (AJCS)-(“LEAP-2”) | |
81 FR 3477 - Proposed Extension of Existing Collection; Comment Request | |
81 FR 3373 - Endangered and Threatened Wildlife and Plants; Proposed Removal of the Scarlet-Chested Parakeet and Turquoise Parakeet From the List of Endangered and Threatened Wildlife | |
81 FR 3558 - Submission for OMB Review; Comment Request | |
81 FR 3391 - Agency Information Collection Activities Under OMB Review | |
81 FR 3293 - Apricots Grown in Designated Counties in Washington; Decreased Assessment Rate | |
81 FR 3481 - National Endowment for the Arts; Agency Information Collection Activities: Proposed Collection; Comment Request; 2017 Survey of Public Participation in the Arts | |
81 FR 3474 - Certain RF Capable Integrated Circuits and Products Containing the Same; Institution of Investigation | |
81 FR 3473 - Certain Laser-Driven Light Sources, Subsystems Containing Laser-Driven Light Sources, and Products Containing Same; Institution of Investigation | |
81 FR 3354 - Safety Standard for High Chairs; Correction | |
81 FR 3392 - Opportunity for Sponsorship of the GreenGov Symposium | |
81 FR 3559 - Commission on Care | |
81 FR 3440 - Advisory Council on Blood Stem Cell Transplantation; Request for Nominations for Voting Members | |
81 FR 3441 - Advisory Committee on Organ Transplantation Request for Nominations for Voting Members | |
81 FR 3406 - ORPC Maine, LLC; Notice of Preliminary Permit Application Accepted for Filing and Soliciting Comments, Motions To Intervene, and Competing Applications | |
81 FR 3408 - Twain Resources, LLC; Notice of Preliminary Permit Application Accepted for Filing and Soliciting Comments, Motions To Intervene, and Competing Applications | |
81 FR 3408 - KC Lake Hydro LLC; Notice of Surrender of Preliminary Permit | |
81 FR 3408 - City of Brainerd Public Utility Commission; Notice of Application Accepted for Filing, Soliciting Comments, Motions To Intervene, and Protests | |
81 FR 3401 - Notice of Commissioner or Commission Staff Attendance at Miso Meetings | |
81 FR 3405 - Combined Notice of Filings #1 | |
81 FR 3406 - The City of Springfield; Notice of Preliminary Permit Application Accepted for Filing and Soliciting Comments, Motions To Intervene, and Competing Applications | |
81 FR 3406 - Notice of Termination of Requirement To File Fourth Quarter 2015 Land Acquisition Reports | |
81 FR 3404 - Columbia Gas Transmission, LLC; Notice of Application | |
81 FR 3402 - Magnum Gas Storage, LLC; Notice of Intent To Prepare an Environmental Assessment for the Proposed Magnum Gas Storage Amendment Project and Request for Comments on Environmental Issues | |
81 FR 3407 - Combined Notice of Filings #2 | |
81 FR 3425 - Draft Current Intelligence Bulletin: Health Effects of Occupational Exposure to Silver Nanomaterials; Notice of Public Meeting; Availability of Document for Comment | |
81 FR 3450 - Draft Environmental Assessment, Habitat Conservation Plan, and Application for an Incidental Take Permit for Piping Plover, Massachusetts Division of Fisheries and Wildlife | |
81 FR 3294 - Airworthiness Directives; Airbus Airplanes | |
81 FR 3476 - Notice of Lodging Proposed Consent Decree | |
81 FR 3378 - Taking of Marine Mammals Incidental to Specified Activities; Coupeville Timber Towers Preservation Project | |
81 FR 3478 - Request for Letters of Intent To Apply for 2016 Pro Bono Innovation Fund Grants | |
81 FR 3432 - Conditional Approval of a New Animal Drug No Longer In Effect; Masitinib Mesylate Tablets | |
81 FR 3438 - Agency Information Collection Activities; Submission for Office of Management and Budget Review; Comment Request; Adverse Event Reporting and Recordkeeping for Dietary Supplements as Required by the Dietary Supplement and Nonprescription Drug Consumer Protection Act | |
81 FR 3434 - Agency Information Collection Activities; Submission for Office of Management and Budget Review; Comment Request; Food Contact Substance Notification Program | |
81 FR 3336 - Offshore Supply Vessels, Towing Vessel, and Barge Engine Rating Watches | |
81 FR 3324 - Conditional Approval of a New Animal Drug No Longer in Effect; Masitinib | |
81 FR 3426 - Agency Forms Undergoing Paperwork Reduction Act Review | |
81 FR 3429 - Target Animal Safety Data Presentation and Statistical Analysis; Guidance for Industry; Availability | |
81 FR 3430 - Determination That THORAZINE (Chlorpromazine Hydrochloride) Tablets and Other Drug Products Were Not Withdrawn From Sale for Reasons of Safety or Effectiveness | |
81 FR 3435 - Determination That MEVACOR (Lovastatin) Tablets, 20 Milligrams and 40 Milligrams, Were Not Withdrawn From Sale for Reasons of Safety or Effectiveness | |
81 FR 3452 - Endangered Species; Receipt of Application for Permit | |
81 FR 3432 - Implanted Blood Access Devices for Hemodialysis; Guidance for Industry and Food and Drug Administration Staff; Availability | |
81 FR 3436 - Submission and Review of Sterility Information in Premarket Notification (510(k)) Submissions for Devices Labeled as Sterile; Guidance for Industry and Food and Drug Administration Staff; Availability | |
81 FR 3325 - Medical Devices; Ear, Nose, and Throat Devices; Classification of the Tympanic Membrane Contact Hearing Aid | |
81 FR 3471 - Certain Windshield Wiper Devices and Components Thereof; Commission Decision To Review In Part a Final Initial Determination Finding a Violation of Section 337; Request for Written Submissions | |
81 FR 3350 - Airworthiness Directives; BAE Systems (Operations) Limited Airplanes | |
81 FR 3483 - New Postal Product | |
81 FR 3482 - Postal Service Performance Report and Performance Plan | |
81 FR 3339 - NASA Federal Acquisition Regulation Supplement | |
81 FR 3395 - Privacy Act of 1974; System of Records | |
81 FR 3447 - Proposed Collection; 60-Day Comment Request: National Institute on Minority Health and Health Disparities Research Endowments | |
81 FR 3470 - States' Decisions on Participating in Accounting and Auditing Relief for Federal Oil and Gas Marginal Properties | |
81 FR 3377 - Public Quarterly Meeting of the Board of Directors | |
81 FR 3446 - Center for Scientific Review; Notice of Closed Meetings | |
81 FR 3393 - Proposed Collection; Comment Request | |
81 FR 3377 - Notice of Request for Extension of a Currently Approved Information Collection | |
81 FR 3469 - National Register of Historic Places; Notification of Pending Nominations and Related Actions | |
81 FR 3443 - Center for Scientific Review; Notice of Closed Meetings | |
81 FR 3443 - National Cancer Institute; Notice of Closed Meetings | |
81 FR 3446 - National Cancer Institute; Amended Notice of Meeting | |
81 FR 3445 - National Human Genome Research Institute; Notice of Meetings | |
81 FR 3445 - National Institute of Dental & Craniofacial Research; Notice of Closed Meeting | |
81 FR 3545 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 7018 | |
81 FR 3484 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE Arca Integrated Feed | |
81 FR 3490 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE BBO and NYSE Trades | |
81 FR 3496 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT Order Imbalances | |
81 FR 3489 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Obsolete Rules 1000B-1012B and To Amend Rule 722 | |
81 FR 3512 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving a Proposed Rule Change To Permit P.M.-Settled Options on Broad-Based Indexes To Expire on Any Wednesday of the Month by Expanding the End of Week/End of Month Pilot Program | |
81 FR 3532 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Change To Amend FINRA Rule 4210 (Margin Requirements) To Establish Margin Requirements for the TBA Market, as Modified by Partial Amendment No. 1 | |
81 FR 3530 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 132.30(9)-Equities To Conform the Exchange's Rules to Industry-Wide Standards for Recording the Capacity in Which a Member Organization Executes a Transaction | |
81 FR 3500 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT BBO and NYSE MKT Trades | |
81 FR 3547 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE ArcaBook | |
81 FR 3527 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Phlx Rules 792, 794, 797, and 798 | |
81 FR 3514 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT OpenBook | |
81 FR 3506 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE OpenBook | |
81 FR 3390 - Performance of Certain Functions by the National Futures Association Related to Notices of Swap Valuation Disputes Filed by Swap Dealers and Major Swap Participants | |
81 FR 3442 - Solicitation of Nominations for Membership on the Secretary's Advisory Committee on Human Research Protections | |
81 FR 3410 - Regular Meeting | |
81 FR 3337 - Implementing Certain Provisions of the Spectrum Pipeline Act With Respect to the Duties of the Technical Panel | |
81 FR 3343 - United States Standards for Mixed Grain | |
81 FR 3341 - United States Standards for Flaxseed | |
81 FR 3342 - United States Standards for Rye | |
81 FR 3412 - Proposed Agency Information Collection Activities; Comment Request | |
81 FR 3341 - United States Standards for Triticale | |
81 FR 3423 - Proposed Data Collection Submitted for Public Comment and Recommendations | |
81 FR 3421 - Proposed Data Collection Submitted for Public Comment and Recommendations | |
81 FR 3289 - Direct Farm Ownership Microloan | |
81 FR 3393 - Privacy Act of 1974; System of Records | |
81 FR 3559 - Rehabilitation Research and Development Service Scientific Merit Review Board; Notice of Meetings | |
81 FR 3374 - Fisheries of the Exclusive Economic Zone Off Alaska; Western Alaska Community Development Quota Program | |
81 FR 3427 - Announcing the Award of Six Single-Source Program Expansion Supplement Grants From the Tribal Maternal, Infant, and Early Childhood Home Visiting (Tribal MIECHV) Program | |
81 FR 3362 - Special Local Regulations; Marine Events in the Seventh Coast Guard District | |
81 FR 3378 - Proposed Information Collection; Comment Request; Chemical Weapons Convention Declaration and Report Handbook and Forms | |
81 FR 3401 - Agency Information Collection Activities; Comment Request; Campus Equity in Athletics Disclosure Act (EADA) Survey | |
81 FR 3334 - Air Plan Approval; Wisconsin; Wisconsin State Board Requirements | |
81 FR 3348 - Airworthiness Directives; Beechcraft Corporation (Type Certificate Previously Held by Hawker Beechcraft Corporation; Raytheon Aircraft Company) Airplanes | |
81 FR 3344 - Airworthiness Directives; Kaman Aerospace Corporation | |
81 FR 3319 - Airworthiness Directives; MD Helicopters Inc. | |
81 FR 3346 - Airworthiness Directives; Airbus Airplanes | |
81 FR 3339 - Fisheries of the Northeastern United States; Northeast Multispecies Fishery; Trip Limit Adjustment for the Common Pool Fishery | |
81 FR 3323 - Amendment of Class E Airspace; El Paso, TX | |
81 FR 3636 - Hazardous Materials: Adoption of Special Permits (MAP-21) (RRR) | |
81 FR 3310 - Airworthiness Directives; Airbus Helicopters Deutschland GmbH (Previously Eurocopter Deutschland GmbH) (Airbus Helicopters) | |
81 FR 3308 - Airworthiness Directives; Agusta S.p.A. Helicopters | |
81 FR 3306 - Airworthiness Directives; Airbus Helicopters Deutschland GmbH (Previously Eurocopter Deutschland GmbH) Helicopters | |
81 FR 3297 - Airworthiness Directives; Bombardier, Inc. Airplanes | |
81 FR 3320 - Airworthiness Directives; Dassault Aviation Airplanes | |
81 FR 3313 - Airworthiness Directives; Bombardier, Inc. Airplanes | |
81 FR 3301 - Airworthiness Directives; Airbus Airplanes | |
81 FR 3316 - Airworthiness Directives; Airbus Airplanes | |
81 FR 3304 - Airworthiness Directives; Bombardier, Inc. Airplanes | |
81 FR 3562 - Carrier Safety Fitness Determination |
Agricultural Marketing Service
Farm Service Agency
Grain Inspection, Packers and Stockyards Administration
Rural Housing Service
Foreign-Trade Zones Board
Industry and Security Bureau
National Oceanic and Atmospheric Administration
National Telecommunications and Information Administration
Army Department
Federal Energy Regulatory Commission
Centers for Disease Control and Prevention
Children and Families Administration
Food and Drug Administration
Health Resources and Services Administration
National Institutes of Health
Coast Guard
Fish and Wildlife Service
Geological Survey
Indian Affairs Bureau
Land Management Bureau
National Park Service
Office of Natural Resources Revenue
Drug Enforcement Administration
Parole Commission
Employment and Training Administration
Workers Compensation Programs Office
National Endowment for the Arts
Federal Aviation Administration
Federal Highway Administration
Federal Motor Carrier Safety Administration
Pipeline and Hazardous Materials Safety Administration
Alcohol and Tobacco Tax and Trade Bureau
Foreign Assets Control Office
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.
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Farm Service Agency, USDA.
Final rule.
The Farm Service Agency (FSA) is adding Direct Farm Ownership Microloan (DFOML) to the existing Direct Loan Program. The revisions to the Direct Loan Program regulations consist of application, eligibility, repayment terms, and security requirements to better serve the unique operating needs of small family farm operations. The existing Microloans (ML) in the Direct Loan Program already include MLs for operating loans (OL). DFOML is expected to make farm ownership loans (FOs) available and more attractive to small operators through reduced application requirements, more timely application processing, and added flexibility for Youth Loan (YL) borrowers in meeting the farm experience eligibility requirement.
We invite you to submit comments on this final rule. In your comment, please specify RIN 0560-AI33 and include the volume, date, and page number of this issue of the
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Comments will be available for inspection online at
Russ Clanton; telephone: (202) 690-0214. Persons with disabilities or who require alternative means for communication should contact the USDA Target Center at (202) 720-2600 (voice).
FSA provides agricultural credit to the Nation's farmers and ranchers through the FO Program. The Consolidated Farm and Rural Development Act of 1972 (CONACT, Pub. L. 92-419), as amended, authorizes FSA's FO Program. The FO Program is designed to finance the farm ownership needs of family farms for operators who meet the program eligibility requirements. Among other things, eligible applicants must be unable to obtain sufficient credit from other sources; have sufficient farming experience; have an acceptable credit history; and have adequate collateral for the proposed loan. (See 7 CFR 764.101 and 764.152 for a full explanation of FO eligibility requirements.) FO funds may be used, among other purposes, to purchase a farm, enlarge an existing farm, construct new farm buildings or improve structures, pay closing costs, and promote soil and water conservation and protection. (See 7 CFR 764.151 for a complete list of FO funds uses.) Throughout this rule, any reference to “farm” or “farmer” also includes “ranch” or “rancher,” respectively; in this document, the word “operator” refers to farmers who operate a farm.
FSA has conducted a Direct ML Program for OLs since January 2013 and has made 16,842 MLs to farmers since inception and provided MLs totaling $66.1 million dollars in FY 2013, $98.3 million in FY 2014, and $209.4 million in FY 2015 and the first quarter of FY 2016 (loan amounts are as of January 13, 2016). The Direct ML Program has seen explosive growth and helped to fill a need for financing of small farm operations, many of them to beginning or underserved farmers. Following the success of the Direct ML Program for direct OLs, FSA has decided to expand the ML Program to add direct FOs to reach more beginning farmers and farmers with small farms.
FSA evaluated the unique needs of small farm operations and identified unintended barriers to applying for FOs of smaller loan amounts. FSA is simplifying the application process and adding flexibility for meeting loan eligibility in order to encourage their participation. FSA is creating the new DFOML application process within the existing FO Program framework, and will use existing FO appropriations to focus on the financing needs of small farm operations.
FSA is implementing the DFOML to provide credit in an aggregate amount not to exceed $50,000. The $50,000 limit for MLs is established as specified in section 5106 of the Agricultural Act of 2014 (Pub. L. 113-79, referred to as the 2014 Farm Bill), amending the CONACT (7 U.S.C. 1943), to set the limit of $50,000 for the total ML indebtedness outstanding at any one time to any single borrower. Therefore, eligible farmers cannot have more than $50,000 in direct ML debt in each of the direct FO and OL programs upon loan closing. It is intended that smaller loan amounts will help small operations, such as beginning farmers, truck farmers, niche-type operations, and those who have demonstrated financial and business experience through the successful repayment of a Youth Loan (YL). These farmers tend to have difficulty obtaining real estate financing from lenders who are unlikely to loan such small amounts, particularly to non-typical operations. FSA is providing credit to these farmers at reasonable rates and terms that are significant because financing costs have a greater impact on smaller startup operations, which typically have a tighter cash flow.
Similar to the OL ML, under 7 CFR 761.104(e) DFOML applicants can provide other forms of documentation, such as operator's sales receipts, financial statements, contracts, and tax returns. This change will be helpful for operations where past yields have little bearing on the projected plan, such as vegetable operators who plan short term and grow different crops to meet current demand; operators who produce crops using measures such as rows or partial rows versus acres; or operators who
Additionally, repayment terms are being modified for these smaller FOs to allow borrowers to more quickly build equity in their farm real estate according to their repayment ability. That, combined with the already established flexibility for the farmers to make loan payments when they sell their products, allows farmers to more efficiently manage their income and resources.
This rule modifies the FO eligibility requirements in 7 CFR 764.152 to allow farmers who have successfully repaid an FSA financed YL to use the term of that loan toward the 3 years farm management experience for a DFOML. Each year of the YL term can be applied toward meeting the requirement for 3 years of farm management experience.
The repayment terms of DFOML will differ from the regular FO Program; the maximum number of years for a borrower to pay back a DFOML is 25 years. For smaller real estate loans, there is not a large difference in the payment amount between the annual installments under DFOML's maximum 25-year amortization schedule and the regular FO's maximum 40 year amortization. However; the interest paid on a 40 year amortization is considerably larger than on the 25-year schedule. The borrowers will benefit from paying less total interest on the life of their loan. The average number of years for an FO to be outstanding is 13 years, with loans being either paid in full or refinanced with another lender within this timeframe. Some borrowers do remain with FSA for the duration of their FO term. The 25-year maximum is reasonable for assisting our borrowers to purchase land and to build equity in the property. The benefits will help small operations endure through the start-up years, demonstrate capacity, build equity, move up to FSA regular loan programs, and eventually graduate to commercial credit.
Our role in providing supervised credit is to help borrowers prepare for the transition to conventional credit. While a DFOML will reduce the paperwork burden on applicants and FSA staff, it will not reduce the amount of oversight provided by FSA to these farmers. In fact, as a result of streamlining the application process, FSA will have more time to work on cash flow analysis, provide borrower training and ready these borrowers for transition into commercial credit.
This rule is revising 7 CFR 764.51 to add the requirements for the DFOML application. A complete DFOML application will consist of the following:
• A microloan application form (§ 764.51(b)(1));
• A balance sheet (§ 764.51(b)(9) and (d)(2)(ii));
• An operating plan (§ 764.51(b)(9));
• Applicable environmental information (§ 764.51(b)(7));
• Description of the applicant's farm training and experience (§ 764.51(b)(3));
• Verification of applicant's farm experience (§ 764.51(d)(2)(v));
• Documentation that credit cannot be obtained elsewhere (§ 764.51(b)(6));
• Documents with regard to the property or option to purchase agreement (§ 764.51(b)(10));
• The credit report fee (§ 764.51(b)(11)); and
• Verification of non-farm income for repayment (§ 764.51(d)(2)(iii)).
• In addition, if the applicant is an entity, the complete application will include entity and entity member information specified in § 764.51(b)(2).
The DFOML application form is the same one in use for applicants for Direct ML Program for OLs. This form is intended to capture most of the information needed to process an ML, including sections for the applicant to describe farm training and experience. It also reduces and simplifies the financial statement.
Environmental information will still be handled through the county office process, involving FSA staff and NRCS staff, as applicable. This will not change from the current process followed for regular FOs.
Verification of non-farm income will only be required if that income is necessary for a feasible plan and sufficient cash flow for debt repayment. This is a change from the existing FO application process, as income is always verified as specified in § 764.51(b)(8). If it is necessary to verify debt, debts will be verified through the credit bureau reporting system.
This information will be sufficient for a loan official to determine eligibility and feasibility. The DFOML includes an abbreviated loan assessment, Farm Business Plan credit presentation, and year-end analysis, which will better parallel components of a small operation. Additionally, since these real estate loans will be $50,000 or less, the appraisal requirement may be met by an authorized agency official's evaluation that establishes the value of the real estate. An acceptable evaluation for DFOML will include an identification of the location of the property; a description of the property, including any improvements and its current and projected use; confirmation that the property was physically inspected and the date of the inspection; description of the analysis performed and supporting information used to determine the property's market value; an effective date of the evaluation and signature of the preparer.
The reduced requirements will allow loan staff to focus on paperwork that is valuable in the analysis of these smaller operations, instead of reviewing the required forms and paperwork necessary with larger, more complex real estate loans. The lower loan limit helps mitigate much of the risk inherent with less documentation and non-typical agricultural operations.
For incomplete applications, FSA will follow existing direct loan processing procedures. Following current procedures, FSA will inform the applicant, through written correspondence, of any missing items needed to complete the application prior to established regulatory deadlines.
Since DFOMLs are FOs, applicants will be subject to existing FO eligibility requirements. However, FSA added flexibility for YL borrowers in meeting the managerial ability requirement. Current regulations in 7 CFR 764.152(d) require that an FO applicant show the ability to manage a farm operation; the applicant must have participated in the business operations of a farm for at least 3 years out of the 10 years prior to the date the application is submitted. One of these three years can be substituted with the following experience:
• Postsecondary education in agriculture business, horticulture, animal science, agronomy, or other agricultural related fields,
• Significant business management experience, or
• Leadership or management experience while serving in any branch of the military.
As noted above, the current revisions add flexibility for farmers who have successfully repaid an FSA financed YL to use the term of that loan toward the 3 years farm management experience for a DFOML.
Except as noted in the rule, FO eligibility and feasibility criteria will remain consistent with existing programs in FLP, but the small loan amount will make the extensive paperwork requirements unnecessary. The farm operation will be required to project a positive cash flow, and servicing options will remain consistent with existing FLP options. The DFOML process will simply broaden the reach of FSA's FO Program by providing flexibility that allows FSA loan programs to be more attractive to small and beginning farmers.
This rule modifies the ML definition, in 7 CFR 761.2, to include FO uses of funds; the prior ML definition only addressed direct OLs. Additionally, this rule creates a distinction between MLs used for OL and FO purposes in areas in which the application process, eligibility, and security requirements differ.
FSA has considered several options in creating the DFOML and has weighed the underwriting risks against the opportunity to improve the FO Program. The underwriting risks will be limited due to the lower loan amounts and the smaller pool of applicants who are able to benefit from DFOML. The benefits to beginning and small farmers to apply for DFOML clearly outweigh any perceived risks or barriers.
As specified in § 764.101(c) and (e), MLs are exempted from the requirements of obtaining 150 percent security and taking a lien on non-essential assets. As specified in § 764.155(b)(1), an ML made for FO purposes, may be secured only by the real estate being purchased or improved, as long as it meets the 100 percent security requirement. This is consistent with the security requirements in place for existing OL MLs.
Other existing and applicable regulatory requirements pertaining to development of operating plans, loan processing and closing, use of loan funds, loan servicing, and environmental requirements not specifically amended by this rule will apply to MLs, like other FOs.
In addition to the changes discussed above, this rule is making conforming minor changes to correct the ML limit to be consistently $50,000 and to otherwise add MLs to FOs in the regulations.
In general, the Administrative Procedure Act (5 U.S.C. 553) requires that a notice of proposed rulemaking be published in the
The Administrative Procedure Act (5 U.S.C. 553) provides generally that before rules are issued by Government agencies, the rule is required to be published in the
Executive Order 12866, “Regulatory Planning and Review,” and Executive Order 13563, “Improving Regulation and Regulatory Review,” direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasized the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility.
The Office of Management and Budget (OMB) designated this rule as not significant under Executive Order 12866 and, therefore, OMB has not reviewed this final rule.
The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), generally requires an agency to prepare a regulatory flexibility analysis of any rule whenever an agency is required by APA or any other law to publish a final rule, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. This rule is not subject to the Regulatory Flexibility Act because it is exempt from notice and comment rulemaking requirements of the APA and no other law requires that a proposed rule be published for this rulemaking initiative.
The environmental impacts of this rule have been considered in a manner consistent with the provisions of the National Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on Environmental Quality (40 CFR parts 1500-1508), and the FSA regulations for compliance with NEPA (7 CFR 799 and 7 CFR part 1940, subpart G). FSA concluded that simplifying the application process and adding flexibility for meeting loan eligibility requirements to encourage small farm operation participation in its FO program explained in this rule are administrative in nature and will not have a significant impact on the quality of the human environment either individually or cumulatively. The environmental responsibilities for each prospective applicant will not change from the current process followed for all FLP actions (7 CFR 1940.309). Therefore, FSA will not prepare an environmental assessment or environmental impact statement on this rule.
Executive Order 12372, “Intergovernmental Review of Federal Programs,” requires consultation with State and local officials. The objectives of the Executive Order are to foster an intergovernmental partnership and a strengthened Federalism, by relying on State and local processes for State and local government coordination and review of proposed Federal Financial
This rule has been reviewed in accordance with Executive Order 12988, “Civil Justice Reform.” The provisions of this rule will not have preemptive effect with respect to any State or local laws, regulations, or policies that conflict with such provision or which otherwise impede their full implementation. The rule will not have retroactive effect.
This rule has been reviewed under Executive Order 13132, “Federalism.” The policies contained in this rule will not have any substantial direct effect on States, on the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government. Nor would this rule impose substantial direct compliance costs on State and local governments. Therefore, consultation with the States is not required.
This rule has been reviewed in accordance with the requirements of Executive Order 13175, “Consultation and Coordination with Indian Tribal Governments.” Executive Order 13175 requires Federal agencies to consult and coordinate with tribes on a government-to-government basis on policies that have tribal implications, including regulations, legislative comments or proposed legislation, and other policy statements or actions that have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes or on the distribution of power and responsibilities between the Federal Government and Indian tribes.
FSA has assessed the impact of this rule on Indian tribes and determined that this rule does not, to our knowledge, have tribal implications that require tribal consultation under Executive Order 13175. If a Tribe requests consultation, FSA will work with the USDA Office of Tribal Relations to ensure meaningful consultation is provided where changes, additions, and modifications identified in this rule are not expressly mandated by the 2014 Farm Bill.
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA, Pub. L. 104-4) requires Federal agencies to assess the effects of their regulatory actions on State, local, or Tribal governments or the private sector. Agencies generally must prepare a written statement, including a cost benefit analysis, for proposed and final rules with Federal mandates that may result in expenditures of $100 million or more in any 1 year for State, local, or Tribal governments, in the aggregate, or to the private sector. UMRA generally requires agencies to consider alternatives and adopt the more cost effective or least burdensome alternative that achieves the objectives of the rule. This rule contains no Federal mandates under the regulatory provisions of Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) for State, local, or Tribal governments, or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of UMRA.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), FSA described the Direct Farm Ownership Microloan (DFOML) information collection activities in the request for the renewal and revision of the 0260-0237, Direct Loan Making, notice published on 10/07/2015, 80 FR 60614-60615. FSA will be using the existing approval for the forms to begin the DFOML collection under the 0560-0237, Direct Loan Making. Therefore, no change to the information collection was required in this rule.
FSA is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes.
The title and number of the Federal assistance programs, as found in the Catalog of Federal Domestic Assistance, to which this final rule would apply is:
Accounting, Loan programs-agriculture, Rural areas.
Agriculture, Disaster assistance, Loan programs-agriculture, Agricultural commodities, Livestock.
For reasons discussed above, FSA amends 7 CFR chapter VII as follows:
5 U.S.C. 301 and 7 U.S.C. 1989.
(b) * * *
5 U.S.C. 301 and 7 U.S.C. 1989.
The addition reads as follows:
(d) For an ML request for FO purposes, all of the following criteria must be met:
(1) The loan requested is:
(i) To pay for any authorized purpose under the FO Program, which are specified in § 764.151; and
(ii) $50,000 or less and the applicant's total outstanding Agency FO debt at the time of loan closing will be $50,000 or less,
(2) The applicant must submit the following:
(i) Items specified in paragraphs (b)(1), (2), (3), (6), (7), (9), (10), and (11) of this section;
(ii) Financial and production records for the most recent production cycle, if available and practicable to project the cash flow of the operating cycle; and
(iv) Verification of all non-farm income relied upon for repayment; and
(v) Verification of applicant's farm experience;
(3) The Agency may require an ML applicant to submit any other information listed in paragraph (b) of this section upon request when necessary to make a determination on the loan application.
The revision reads as follows:
(i) * * *
(4)
(a)
The addition reads as follows:
(e) For an ML made for FO purposes, if an ML applicant has successfully repaid an FSA financed youth loan, the term of that loan may be used toward the 3 years of management experience required for a FO direct loan.
The addition reads as follows:
(b) * * *
(1) For MLs made for FO purposes the Agency schedules repayment of an FO based on the applicant's ability to repay and the useful life of the security. In no event will the term be more than 25 years from the date of the note.
(2) [Reserved]
(b) * * *
(1) An ML made for FO purposes, may be secured only by the real estate being purchased or improved, as long as its value is at least 100 percent of the loan amount.
(2) [Reserved]
The addition reads as follows:
(c) Downpayment loans made as an ML for FO purposes may not exceed $50,000.
Agricultural Marketing Service, USDA.
Affirmation of interim rule as final rule.
The Department of Agriculture is adopting, as a final rule, without change, an interim rule that implemented a recommendation from the Washington Apricot Marketing Committee (Committee) to decrease the assessment rate from $1.50 to $0.75 per ton of Washington apricots handled for the 2015-2016 and subsequent fiscal periods. The Committee locally administers the marketing order and is comprised of apricot producers and handlers operating within designated counties in Washington. The interim rule was necessary to allow the Committee to reduce its financial reserve while still providing adequate funding to meet program expenses.
Effective January 22, 2016.
Teresa Hutchinson, Marketing Specialist, or Gary Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724; Fax: (503) 326-7440; or Email:
Small businesses may obtain information on complying with this and other marketing order regulations by viewing a guide at the following Web site:
This rule is issued under Marketing Agreement No. 132 and Order No. 922, as amended (7 CFR 922), regulating the handling of apricots grown in designated counties in Washington, hereinafter referred to as the “order.” The order is effective under the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the “Act.”
The Department of Agriculture (USDA) is issuing this rule in conformance with Executive Orders 12866, 13563, and 13175.
Under the order, Washington apricot handlers are subject to assessments, which provide funds to administer the order. Assessment rates issued under the order are intended to be applicable to all assessable Washington apricots for the entire fiscal period, and continue indefinitely until amended, suspended, or terminated. The Committee's fiscal period begins on April 1 and ends on March 31.
In an interim rule published in the
Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) has considered the economic impact of this rule on small entities. Accordingly, AMS has prepared this final regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Marketing orders issued pursuant to the Act, and the rules issued thereunder, are unique in that they are brought about through group action of essentially small entities acting on their own behalf.
There are approximately 100 apricot producers in the production area and approximately 17 handlers subject to regulation under the marketing order. Small agricultural producers are defined by the Small Business Administration as those having annual receipts of less than $750,000, and small agricultural service firms are defined as those having annual receipts of less than $7,000,000 (13 CFR 121.201).
The National Agricultural Statistics Service reported that, in 2014, the Washington apricot total utilization of 8,500 tons (including both fresh and processed markets) sold for an average of $1,080 per ton. Consequently, the total farm-gate value in 2014 was approximately $9,180,000. Based on the number of producers in the production area (100), the 2014 average revenue from the sale of apricots is estimated at approximately $91,800 per producer. In addition, based on information from the USDA's Market News Service, 2014 f.o.b. prices for WA No. 1 apricots ranged from $20.00 to $26.00 per 24-pound loose-pack container, and from $22.00 to $30.00 for 2-layer tray-pack containers. Using average price and shipment information provided by the Committee, it is determined that each of the Washington apricot handlers currently ship less than $7,000,000 worth of apricots on an annual basis. In view of the foregoing, it can be concluded that the majority of Washington apricots producers and handlers may be classified as small entities.
This rule continues in effect the action that decreased the assessment rate collected from handlers for the 2015-2016 and subsequent fiscal periods from $1.50 to $0.75 per ton of apricots handled. The Committee also unanimously recommended 2015-2016 fiscal period expenditures of $7,610. With a 2015 Washington apricot crop estimate of 5,800 fresh market tons, the Committee anticipates assessment income of approximately $4,350. Income derived from handler assessments, along with funds from the Committee's monetary reserve, will be adequate to cover budgeted expenses for the 2015-2016 fiscal period. This action will allow the Committee to reduce its financial reserve while still providing adequate funding to meet program expenses.
This rule continues in effect the action that decreased the assessment obligation imposed on handlers. Assessments are applied uniformly on all handlers. However, decreasing the assessment rate reduces the burden on handlers, and may reduce the burden on producers.
In addition, the Committee's meeting was widely publicized throughout the Washington apricot industry, and all interested persons were invited to attend the meeting and participate in Committee deliberations on all issues. Like all Committee meetings, the May 12, 2015, meeting was a public meeting, and all entities, both large and small, were able to express views on this issue.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the order's information collection requirements have been previously approved by the Office of Management and Budget (OMB) and assigned OMB No. 0581-0189. No changes in those requirements as a result of this action are necessary. Should any changes become necessary, they would be submitted to OMB for approval.
This action imposes no additional reporting or recordkeeping requirements on either small or large Washington apricot handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies.
USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule.
Comments on the interim rule were required to be received on or before October 19, 2015. No comments were received. Therefore, for reasons given in the interim rule, we are adopting the interim rule as a final rule, without change.
To view the interim rule, go to:
This action also affirms information contained in the interim rule concerning Executive Orders 12866, 12988, 13175, and 13563; the Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 U.S.C. 101).
After consideration of all relevant material presented, it is found that finalizing the interim rule, without change, as published in the
Apricots, Marketing agreements, Reporting and recordkeeping requirements.
Accordingly, the interim rule amending 7 CFR part 922, which was published at 80 FR 50189 on August 19, 2015, is adopted as a final rule without change.
Federal Aviation Administration (FAA), Department of Transportation (DOT).
Final rule; request for comments.
We are adopting a new airworthiness directive (AD) for all Airbus Model A319-113 and A319-114 airplanes; and Model A320-211 and A320-212 airplanes. This AD requires identifying affected engines, and doing a torque check of the forward engine
This AD becomes effective February 5, 2016.
The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of February 5, 2016.
We must receive comments on this AD by March 7, 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 AD, contact Airbus, Airworthiness Office—EAS, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 44 51; email
You may examine the AD docket on the Internet at
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.
The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Union, has issued EASA AD 2015-0229, dated November 27, 2015, (referred to after this as “the MCAI”), to correct an unsafe condition for all Airbus Model A319-113 and A319-114 airplanes; and Model A320-211 and A320-212 airplanes. The MCAI states:
A review of the maintenance instructions revealed that an incorrect torque value with wrong unit for the four forward engine mount pylon bolts was included in task 71-00-00-400-040-A01, “Installation of the power plant with Engine Positioner TWW75E”, of the A320 family (CFMI) [CFM International] Aircraft Maintenance Manual (AMM), revision dated May 2013. It was determined that this AMM inconsistent torque unit affected the A319/A320 airplane equipped with CFM56-5A engines only.
Subsequently, AMM task 71-00-00-400-040-A01 was corrected to include the correct values in the August 2015 revision. During the period between these two AMM revisions, incorrect torque values may have been applied.
This condition, if not corrected, and if combined with induced maintenance damage, could lead to forward engine mount failure, possibly resulting in engine detachment and consequent reduced control of the airplane, damage to the airplane and/or injury to persons on the ground.
To address this potential unsafe condition, Airbus issued Alert Operators Transmission (AOT) A71N010-15 * * *, to provide instructions to check the torque values of the forward engine mount bolts.
For the reasons described above, this [EASA] AD requires identification of CFM56-5A engines that were installed by using the incorrect torque data, verifying the proper torque value of the all four forward engine mount pylon bolts and, depending on findings, accomplishment of corrective action(s) [
You may examine the MCAI on the Internet at
Airbus has issued Alert Operators Transmission (AOT) A71N010-15, dated September 30, 2015. The service information describes procedures for checking the current torque value for the forward engine bolts; torqueing the bolt; replacing the forward engine mount bolts, nuts, and washers; doing a fluorescent penetrant inspection and dimensional check of the pylon bolt holes of the affected forward engine mount platform for local deformation and cracks; and doing corrective actions. 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 another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with the State of Design Authority, we have been notified of the unsafe condition described in the MCAI and service information referenced above. We are issuing this AD because we evaluated all pertinent information and determined the unsafe condition exists and is likely to exist or develop on other products of these same type designs.
An unsafe condition exists that requires the immediate adoption of this AD. The FAA has found that the risk to the flying public justifies waiving notice and comment prior to adoption of this rule because this condition, if not corrected, and if combined with induced maintenance damage, could lead to forward engine mount failure. A failed engine mount can result in engine detachment and consequent reduced control of the airplane, damage to the airplane, and injury to persons on the
This AD is a final rule that involves requirements affecting flight safety, and we did not precede it by notice and opportunity for public comment. We invite you to send any written relevant data, views, or arguments about this AD. Send your comments to an address listed under the
We will post all comments we receive, without change, to
We estimate that this AD affects 126 airplanes of U.S. registry.
We also estimate that it will take about 5 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 $53,550, or $425 per product.
In addition, we estimate that any necessary follow-on actions will take about 1 work-hour for a cost of $85 per product. We have no definitive costs for the engine mounting bolts, nuts, and washers, and no way of determining the number of aircraft that might need this action.
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 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.
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 February 5, 2016.
None.
This AD applies to the airplanes identified in paragraphs (c)(1) and (c)(2) of this AD, certificated in any category.
(1) Airbus Model A319-113 and A319-114 airplanes, all manufacturer serial numbers.
(2) Airbus Model A320-211 and A320-212 airplanes, all manufacturer serial numbers.
Air Transport Association (ATA) of America Code 71, Power Plant.
This AD was prompted by an incorrect torque unit for the CFM56-5A engine forward mount fasteners that was inadvertently introduced into a certain Airbus airplane maintenance manual. We are issuing this AD to prevent loose bolts, which if combined with induced maintenance damage, could lead to forward engine mount failure. An engine mount failure can result in an engine detachment and consequent reduced control of the airplane, damage to the airplane, and injury to persons on the ground.
Comply with this AD within the compliance times specified, unless already done.
Within 2 months after the effective date of this AD, accomplish the actions required by paragraphs (g)(1) and (g)(2) of this AD, as applicable.
(1) Identify each CFM56-5A engine that has been installed on the airplane as specified in A318/A319/A320/A321 Airplane Maintenance Manual (AMM) Task 71-00-00-400-040-A01, “Installation of the Power Plant with Engine Positioner TWW-75E,” of an AMM having a revision date between May 2013 and July 2015 (inclusive). A review of airplane maintenance records is acceptable in lieu of this determination if the date of the AMM revision used for the engine installation can be conclusively determined from that review.
(2) For each engine installation determined to be affected as required by paragraph (g)(1) of this AD, check the torque values applied on the forward engine mount bolts, in accordance with the instructions of paragraph 4.2.2 of Airbus Alert Operators Transmission (AOT) A71N010-15, dated September 30, 2015.
If, during the torque check required by paragraph (g)(2) of this AD, any bolt rotation is detected, accomplish the actions required by paragraphs (h)(1) and (h)(2) of this AD.
(1) Before further flight, torque the affected bolt, in accordance with the instructions of paragraph 4.2.3.1 of Airbus AOT A71N010-15, dated September 30, 2015.
(2) During the next engine removal, replace the forward engine mount bolts, nuts, and washers; accomplish a fluorescent penetrant inspection and dimensional check of the pylon bolt holes of the affected forward engine mount platform for local deformation
As of the effective date of this AD, installation of a CFM56-5A engine on an airplane is permitted, provided that the installation is accomplished using the torque values for forward engine mount bolts specified in paragraph 4.2.3.1 of Airbus AOT A71N010-15, dated September 30, 2015.
Additional guidance for the re-torque can be found in Airbus A318/A319/A320/A321 AMM, Task 71-00-00-400-040-A01, “Installation of the Power Plant with Engine Positioner TWW 75E,” dated August 2015.
Special flight permits, as described in Section 21.197 and Section 21.199 of the Federal Aviation Regulations (14 CFR 21.197 and 21.199), are not allowed.
The following provisions also apply to this AD:
Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA AD 2015-0229, dated November 27, 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 this AD specifies otherwise.
(i) Airbus Alert Operators Transmission (AOT) A71N010-15, dated September 30, 2015.
(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.
We are adopting a new airworthiness directive (AD) for certain Bombardier, Inc. Model CL-600-2C10 (Regional Jet Series 700, 701, & 702) airplanes. This AD was prompted by reports of cracked forward door members of the inboard main landing gear (MLG) doors. This AD requires repetitive inspections of the inboard MLG doors, repairs if necessary, and replacement of the inboard MLG doors. This AD also provides optional terminating action for the door replacement. We are issuing this AD to prevent loss of an MLG door during flight, which could result in damage to the airplane.
This AD becomes effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of February 25, 2016.
You may examine the AD docket on the Internet at
For service information identified in this AD, contact Bombardier, Inc., 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone 514-855-5000; fax 514-855-7401; email
Aziz Ahmed, Aerospace Engineer, ANE-171, FAA, New York Aircraft Certification Office, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone 516-228-7329; fax 516-794-5531.
We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to certain Bombardier, Inc. Model CL-600-2C10 (Regional Jet Series 700, 701, & 702) airplanes. The NPRM published in the
Transport Canada Civil Aviation (TCCA), which is the aviation authority for Canada, has issued Canadian Airworthiness Directive CF-2014-42, dated December 12, 2014 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for certain Bombardier, Inc. Model CL-600-2C10 (Regional Jet Series 700, 701, & 702) airplanes. The MCAI states:
Cases of inboard MLG doors with cracked door forward members were found. A cracked inboard MLG door forward member could result in door departure from the aeroplane. Loss of an MLG door during flight could result in damage to the aeroplane and injury to persons on the ground.
This [Canadian] AD mandates the repetitive inspection [and corrective actions if necessary] and replacement of the inboard MLG doors.
The repetitive inspection is a detailed inspection for damage (including deformation, pulled or missing fasteners on the inner skins and outer skin, and cracks) on the inner skins, outer skin, and the forward member of the inboard MLG doors. Corrective actions include repairing, removing, or replacing the inboard MLG door.
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 comment received on the NPRM (80 FR 37200, June 30, 2015) and the FAA's response to the comment.
Envoy Airlines requested that we revise the wording in paragraph (i)(1)(ii)(A) of the proposed AD (80 FR 37200, June 30, 2015) to clarify that removal of the MLG door is not required in all repair situations. Envoy Airlines stated that Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013, specifies that repairs can be accomplished with the door installed in some situations. Envoy Airlines suggested that the text “Repair and reinstall the door” in paragraph (i)(1)(ii)(A) of the proposed AD be reworded to specify “repair the door.”
We agree with the commenter's request to revise the repair instructions. We have revised paragraph (i)(1)(ii)(A) of this AD by removing the instructions to reinstall the door.
We have clarified the inspection area in paragraph (g) of this AD by specifying to inspect for damage on the inner skins, outer skin, and the forward member of the inboard MLG doors.
Paragraph (i)(1)(ii)(A) of the proposed AD (80 FR 37200, June 30, 2015) specifies to do a repair “if repair of the inboard MLG is possible.” We have revised paragraph (i)(1)(ii)(A) of this AD to clarify the repair is done if it is possible to repair the inboard MLG door in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013.
We have also revised paragraph (i)(1)(i) of this AD to specify that clarify that removed damaged doors cannot be reinstalled, unless the door is repaired prior to reinstallation and the actions specified in paragraph (l) of this AD are done.
We have also clarified the actions required by paragraphs (i)(1)(iii), (i)(2), (k)(1), and (k)(2)(i) of this AD by specifying that where Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, specifies to contact the manufacturer for certain instructions, this AD requires accomplishing those actions using a method approved by the Manager, New York ACO, ANE-170, FAA; or TCCA; or Bombardier, Inc.'s TCCA DAO.
We have also revised paragraph (m) of this AD to refer to the latest revision of Bombardier Service Bulletin 670BA-32-043, dated July 2, 2014. The “Pre SB Part Number” column of Section M, Relationship Chart, of Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, is the same as that in Bombardier Service Bulletin 670BA-32-043, dated July 2, 2014.
We reviewed the relevant data, considered the comment 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 (80 FR 37200, June 30, 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 37200, June 30, 2015).
We also determined that these changes will not increase the economic burden on any operator or increase the scope of this AD.
Bombardier has issued the following service information.
• Bombardier Modification Summary Package IS670528200033, Revision A-2, dated October 11, 2005. This service information describes procedures for enlarging the forward and aft hinge cutouts of the MLG inboard and outboard doors.
• Bombardier Service Bulletin 670BA-32-040, Revision D, dated July 2, 2014, including Appendix A, Revision A, dated July 2, 2014, and Appendix B, Revision B, dated July 2, 2014. This service information describes procedures for increasing the clearances between the MLG fairing and the MLG doors.
• Bombardier Service Bulletin 670BA-32-040, Revision E, dated November 13, 2014, including Appendix A, Revision A, dated July 2, 2014, and Appendix B, Revision B, dated July 2, 2014. This service information describes procedures for increasing the clearances between the MLG fairing and the MLG doors, and for enlarging the forward and aft hinge cutouts of the MLG inboard and outboard doors.
• Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013. This service information describes procedures for inspecting and repairing the inboard MLG door inner skins, outer skin, and the forward member.
• Bombardier Service Bulletin 670BA-32-043, dated July 2, 2014; and Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014. This service information describes procedures for replacing the inboard MLG doors.
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 269 airplanes of U.S. registry.
We estimate that it will take about 16 work-hours per product to comply with the basic requirements of this AD. The average labor rate is $85 per work hour. Required parts will cost about $31,000 per product. Based on these figures, we estimate the cost of this AD on U.S. operators to be $8,704,840, or $32,360 per product.
In addition, we estimate that any necessary follow-on actions will take up to 44 work-hours and require parts costing up to $31,000, for a cost of up to $34,740 per product. We have no way of determining the number of aircraft that might need these actions.
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 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 February 25, 2016.
None.
This AD applies to Bombardier, Inc. Model CL-600-2C10 (Regional Jet Series 700, 701, & 702) airplanes, certificated in any category, serial numbers 10002 and subsequent, as identified in Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013.
Air Transport Association (ATA) of America Code 32, Landing Gear.
This AD was prompted by reports of cracked forward door members of the inboard main landing gear (MLG) doors. We are issuing this AD to prevent loss of an MLG door during flight, which could result in damage to the airplane.
Comply with this AD within the compliance times specified, unless already done.
Within 660 flight hours or 12 months after the effective date of this AD, whichever occurs first: Do a detailed inspection for damage (including deformation, pulled or missing fasteners on the inner skins and outer skin, and cracks) on the inner skins, outer skin, and the forward member of the inboard MLG doors, in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013. Repeat the inspection thereafter at intervals not to exceed 660 flight hours or 12 months, whichever occurs first.
For the purposes of this AD, a detailed inspection is an intensive examination of a specific item, installation, or assembly to detect damage, failure, or irregularity. Available lighting is normally supplemented with a direct source of good lighting at an intensity deemed appropriate. Inspection aids such as mirror, magnifying lenses, etc., may be necessary. Surface cleaning and elaborate procedures may be required.
(1) If any damage is found on any inner skin or outer skin of the inboard MLG door during any inspection required by paragraph (g) of this AD: Before further flight, do the actions specified in paragraph (i)(1)(i), (i)(1)(ii), or (i)(1)(iii) of this AD.
(i) Remove the damaged inboard MLG door, in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013. A damaged inboard MLG door cannot be reinstalled, unless the repair specified in paragraph (i)(1)(ii) of this AD is done prior to reinstallation and the actions specified in paragraph (l) of this AD are done at the times specified in paragraph (l) of this AD.
(ii) Repair the door as specified in paragraph (i)(1)(ii)(A) or (i)(1)(ii)(B) of this AD, as applicable.
(A) If it is possible to repair the inboard MLG door in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013: Repair the door, in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013.
(B) If it is not possible to repair the inboard MLG door in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013: Repair using a method approved by the Manager, New York Aircraft Certification Office (ACO), ANE-170, FAA; or Transport Canada Civil Aviation (TCCA); or Bombardier, Inc.'s TCCA Design Approval Organization (DAO).
(iii) Replace the inboard MLG door, in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, except, where Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, specifies to contact the manufacturer for certain instructions, this AD requires accomplishing those actions using a method approved by the Manager, New York ACO, ANE-170, FAA; or TCCA; or Bombardier, Inc.'s TCCA DAO.
(2) If any damage is found on the forward member of the inboard MLG door during any inspection required by paragraph (g) of this AD: Before further flight, replace the inboard MLG door, in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, except, where Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, specifies to contact the manufacturer for certain instructions, this AD requires accomplishing those actions using a method approved by the Manager, New York ACO, ANE-170, FAA; or TCCA; or Bombardier, Inc.'s TCCA DAO.
Within 6,600 flight hours or 36 months after the effective date of this AD, whichever occurs first, except as provided by paragraph (l) of this AD: Replace the inboard MLG doors, in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014; except, where Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, specifies to contact the manufacturer for certain instructions, this AD requires accomplishing those actions using a method approved by the Manager, New York ACO, ANE-170, FAA; or TCCA; or Bombardier, Inc.'s TCCA DAO.
(1) Doing the MLG door replacement required by the introductory text of paragraph (j) of this AD terminates the inspections required by paragraph (g) of this AD for that MLG door.
(2) Doing the MLG door replacement required by the introductory text of paragraph (j) of this AD does not terminate the actions required by AD 2010-23-19, Amendment 39-16508 (75 FR 68695, November 9, 2010).
Doing any of the actions specified in paragraph (k)(1), (k)(2), (k)(3), or (k)(4) of this AD is acceptable for compliance with the requirements of paragraph (j) of this AD.
(1) Replacement of the inboard MLG door, in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, except, where Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, specifies to contact the manufacturer for certain instructions, this AD requires accomplishing those actions using a method approved by the Manager, New York ACO, ANE-170, FAA; or TCCA; or Bombardier, Inc.'s TCCA DAO; and enlargement of the forward and aft hinge cutouts, in accordance with the procedures specified in Bombardier Modification Summary Package IS670528200033, Revision A-2, dated October 11, 2005.
(2) Installation of an inboard MLG door assembly with a part number listed in the “Post SB Part Number” column of Section M, Relationship Chart, of Bombardier Service Bulletin 670BA-32-043, dated July 2, 2014, in accordance with a method specified in paragraph (k)(2)(i) or (k)(2)(ii) of this AD.
(i) Do the installation in accordance with the Accomplishment instructions of Bombardier Service Bulletin 670BA-32-043, dated July 2, 2014; or Bombardier Service Bulletin 670BA-32-043, Revision A dated November 13, 2014; except, where Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014, specifies to contact the manufacturer for certain instructions, this AD requires accomplishing those actions using a method approved by the Manager, New York ACO, ANE-170, FAA; or TCCA; or Bombardier, Inc.'s TCCA DAO.
(ii) Do the installation using a method approved by the Manager, New York ACO, ANE-170, FAA; or TCCA; or Bombardier, Inc.'s TCCA DAO.
(3) Doing the actions specified in “PART C—Installation of the Inboard MLG Door Part Number CC670-10520-15 and Increase of the Clearance Between the Left MLG Inboard-Door and the MLG Fairing” and “PART D—Installation of the Inboard MLG Door Part Number CC670-10520-16 and Increase of the Clearance Between the Right MLG Inboard-Door and the MLG Fairing” of the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-040, Revision E, dated November 13, 2014, including Appendix A, Revision A, dated July 2, 2014, and Appendix B, Revision B, dated July 2, 2014.
(4) Doing the actions specified in paragraphs (k)(4)(i) and (k)(4)(ii) of this AD.
(i) Doing the actions specified in “PART C—Installation of the Inboard MLG Door Part Number CC670-10520-15 and Increase of the Clearance Between the Left MLG Inboard-Door and the MLG Fairing” and “PART D—Installation of the Inboard MLG Door Part Number CC670-10520-16 and Increase of the Clearance Between the Right MLG Inboard-Door and the MLG Fairing” of the Accomplishment Instructions of Bombardier Service Bulletin 670BA-32-040, Revision D, dated July 2, 2014, including Appendix A, Revision A, dated July 2, 2014, and Appendix B, Revision B, dated July 2, 2014.
(ii) Enlargement of the forward and aft hinge cutouts specified in Bombardier Modification Summary Package IS670528200033, Revision A-2, dated October 11, 2005.
If an MLG door is removed, the replacement required by paragraph (j) of this AD can be delayed until the MLG door is reinstalled. When the removed MLG door is reinstalled, the actions required by paragraph (j) of this AD must be done at the time specified in paragraph (j) of this AD.
Upon completion of the actions specified in paragraph (j) or (k) of this AD, no person may install an inboard MLG door assembly with a part number listed in the “Pre SB Part Number” column of Section M, Relationship Chart, of Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014; on any airplane.
The following provisions also apply to this AD:
(1)
(2)
Special flight permits, as described in Section 21.197 and Section 21.199 of the Federal Aviation Regulations (14 CFR 21.197 and 21.199), are not allowed.
Refer to Mandatory Continuing Airworthiness Information (MCAI) Canadian Airworthiness Directive CF-2014-42, dated December 12, 2014, for related information. This MCAI may be found in the AD docket 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 this AD specifies otherwise.
(i) Bombardier Modification Summary Package IS670528200033, Revision A-2, dated October 11, 2005.
(ii) Bombardier Service Bulletin 670BA-32-040, Revision D, dated July 2, 2014, including Appendix A, Revision A, dated July 2, 2014, and Appendix B, Revision B, dated July 2, 2014.
(iii) Bombardier Service Bulletin 670BA-32-040, Revision E, dated November 13, 2014, including Appendix A, Revision A, dated July 2, 2014, and Appendix B, Revision B, dated July 2, 2014.
(iv) Bombardier Service Bulletin 670BA-32-042, Revision A, dated July 2, 2014, including Appendixes A and B, both dated November 5, 2013.
(v) Bombardier Service Bulletin 670BA-32-043, dated July 2, 2014.
(vi) Bombardier Service Bulletin 670BA-32-043, Revision A, dated November 13, 2014.
(3) For service information identified in this AD, contact Bombardier, Inc., 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone 514-855-5000; fax 514-855-7401; 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), DOT.
Final rule.
We are adopting a new airworthiness directive (AD) for all Airbus Model A310 and Airbus Model A300 B4-600, B4-600R, and F4-600R series airplanes; and Model A300 C4-605R Variant F airplanes (collectively called Model A300-600 series airplanes). This AD was prompted by a report of skin disbonding and damage found on the composite side panel of the rudder, located between the rudder core and skin of a previously repaired area. This AD requires an inspection for disbonding or damage of certain rudders, and related investigative actions and corrective actions if necessary. We are issuing this AD to detect and correct disbonding and damage of the rudder, which could result in reduced structural integrity of the rudder and consequent reduced controllability of the airplane.
This AD is effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of February 25, 2016.
You may examine the AD docket on the Internet at
For service information identified in this final rule, contact Airbus SAS, Airworthiness Office—EAW, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 44 51; email
Dan Rodina, Aerospace Engineer, International Branch, ANM-116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057-3356; telephone 425-227-2125; 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 A310 and Airbus Model A300 B4-600, B4-600R, and F4-600R series airplanes, and Model A300 C4-605R Variant F airplanes (collectively called Model A300-600 series airplanes) 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 2014-0026, dated January 28, 2014 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for all Airbus Model A310 and Airbus Model A300 B4-600, B4-600R, and F4-600R series airplanes; and Model A300 C4-605R Variant F airplanes (collectively called Model A300-600 series airplanes). The MCAI states:
A case of skin disbonding was reported on a composite side of a rudder installed on an A310 aeroplane.
The investigation results revealed that this disbonding started from a skin panel area previously repaired in-service in accordance with the Structural Repair Manual (SRM).
The initial damage has been identified as a disbonding between the core and the repaired area. This damage may not be visually detectable and likely propagates during normal operation due to the variation of pressure during ground-air-ground cycles.
This condition, if not detected and corrected, could affect the structural integrity of the rudder, possibly resulting in reduced control of the aeroplane.
For the reasons described above, this [EASA] AD requires a one-time thermography inspection of each repaired rudder or rudder whose maintenance records are incomplete and, depending on findings, accomplishment of applicable corrective and follow-up actions.
Depending on configuration and inspection results, the repetitive inspection intervals are 750 or 1,000 flight cycles, or 500 flight hours or 4 months, whichever occurs later.
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 (80 FR 3525, January 23, 2015) and the FAA's response to each comment.
FedEx stated that Airbus has not provided any data or analysis showing the de-validated SRM procedures in the proposed AD (80 FR 3525, January 23, 2015) as inadequate. FedEx noted that one finding on a Model A310 airplane with skin disbonding and damage found on the composite side panel of the
We infer that the commenter is asking for justification to support issuing this final rule. We acknowledge the commenter's concerns. However, the safety risk of undetected rudder skin disbonding that may not be detectable visually and could propagate during normal operation due to the variation of aerodynamic pressure during ground-air-ground cycles is sufficient to require the proposed actions. We also acknowledge that Airbus does not have new SRM procedures available, partially due to the unknown size and location of previously accomplished SRM repairs and the type of skin disbonding that may be identified that will result in each repair needing to be evaluated individually. Therefore, we have determined that inspections are necessary if an applicable SRM repair has been done, or if maintenance records are not available or are incomplete. The service information provides procedures for the detailed inspections; therefore, using a method approved by the FAA, EASA, or Airbus's EASA DOA is necessary only for repairs. We have determined it is necessary to proceed with issuing this final rule as proposed.
FedEx asked that paragraph (i) of the proposed AD (80 FR 3525, January 23, 2015) be revised to allow a composite side shell panel repair on any rudder using future revisions of the SRM procedure identified in Figure A-GBBAA (Sheet 01 and 02) or Figure A-GBCAA (Sheet 02) of Airbus Service Bulletin A310-55-2051; or Figure A-GBBAA (Sheet 01, 02, or 03) or Figure A-GBCAA (Sheet 02 or 04) of Airbus Service Bulletin A300-55-6050. FedEx stated that when Airbus revalidates the SRM procedures, FedEx won't be able to use those procedures for the repair because it is not allowed per paragraph (i) of the proposed AD.
We do not agree with the request. Although we understand the FedEx concerns, allowing the use of later revisions of service documents in an AD is not allowed by the Office of the Federal Register's regulations. However, after the manufacturer validates a later revision of the SRM procedures that provides an acceptable level of safety we can evaluate the later revision of the SRM as an alternative method of compliance, in accordance with the procedures specified in paragraph (m)(1) of this AD. Paragraph (i) of this AD only prohibits the use of specific SRM procedures identified in that paragraph. We have not changed this AD in this regard.
We reviewed the relevant data, considered the comments received, and determined that air safety and the public interest require adopting this 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 3525, January 23, 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 3525, January 23, 2015).
Airbus has issued Service Bulletins A300-55-2051 and A310-55-6050, both Revision 01, both dated August 20, 2014. The service information describes procedures for inspecting the left- and right-hand rudder side shells for disbonding or damage, and related investigative actions and corrective actions if necessary. The actions described in this service information are intended to correct the unsafe condition identified in the MCAI. 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 199 airplanes of U.S. registry.
We also estimate that it will take about 4 work-hours per product to comply with the basic requirements of this AD. The average labor rate is $85 per work-hour. Required parts will cost about $0 per product. Based on these figures, we estimate the cost of this AD on U.S. operators to be $67,660, or $340 per product.
We have received no definitive data that would enable us to provide a cost estimate for the on-condition actions specified in this AD.
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, 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 is effective February 25, 2016.
None.
This AD applies to all Airbus Model A310-203, -204, -221, -222, -304, -322, -324, and -325 airplanes; Model A300 B4-601, B4-603, B4-620, and B4-622 airplanes; Model A300 B4-605R and B4-622R airplanes; and Model A300 F4-605R, F4-622R, and A300 C4-605R Variant F airplanes; certificated in any category.
Air Transport Association (ATA) of America Code 55, Stabilizers.
This AD was prompted by a report of skin disbonding and damage found on the composite side panel of the rudder, located between the rudder core and skin of a previously repaired area. We are issuing this AD to detect and correct disbonding and damage of the rudder, which could result in reduced structural integrity of the rudder, and consequent reduced controllability of the airplane.
Comply with this AD within the compliance times specified, unless already done.
Within 4 months after the effective date of this AD: Check the applicable rudder maintenance records to determine if any composite side shell panel repair has been done since first installation of the rudder, and do the applicable actions specified in paragraph (g)(1) or (g)(2) of this AD at the time specified in paragraph 1.E., “Compliance,” of Airbus Service Bulletin A300-55-6050, or A310-55-2051, both Revision 01, both dated August 20, 2014; as applicable, except as provided by paragraph (j)(3) of this AD.
(1) If a repair is identified based on the maintenance records: Perform a rudder thermography inspection of the repaired area only for disbonding or damage, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A300-55-6050, or A310-55-2051, both Revision 01, both dated August 20, 2014; as applicable.
(2) If the rudder maintenance records are unavailable or incomplete: Perform a rudder thermography inspection of the complete side shell panels to identify and mark the repair locations for disbonding or damage, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A300-55-6050, or A310-55-2051, both Revision 01, both dated August 20, 2014; as applicable.
If any disbonding or damage is found during any inspection required by paragraph (g)(1) or (g)(2) of this AD: Do the actions required by paragraphs (h)(1) and (h)(2) of this AD, as applicable.
(1) At the time specified in paragraph 1.E., “Compliance,” of Airbus Service Bulletin A300-55-6050, or A310-55-2051, both Revision 01, both dated August 20, 2014; as applicable, except as required by paragraph (j)(1) of this AD; do the applicable related investigative actions identified in Tables 3, 4A, 4B, 4C, 4D, and 5 of paragraph 1.E., “Compliance,” of Airbus Service Bulletin A300-55-6050, or A310-55-2051, both Revision 01, both dated August 20, 2014; as applicable, to determine the type and extent of the disbonding or damage, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A300-55-6050, or A310-55-2051, both Revision 01, both dated August 20, 2014; as applicable. Repeat the applicable inspection at the time specified in paragraph 1.E., “Compliance” of Airbus Service Bulletin A300-55-6050, or A310-55-2051, both Revision 01, both dated August 20, 2014; as applicable.
(2) Before further flight: Repair any disbonding or damage found during any inspection required by paragraph (h)(1) of this AD, or replace any affected rudder, as applicable, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A300-55-6050, or A310-55-2051, both Revision 01, both dated August 20, 2014; as applicable, except as required by paragraph (j)(4) of this AD.
As of the effective date of this AD, do not accomplish a composite side shell panel repair on any rudder using an SRM procedure identified in Figure A-GBBAA (Sheet 01 and 02) or Figure A-GBCAA (Sheet 02) of Airbus Service Bulletin A310-55-2051; or Figure A-GBBAA (Sheet 01, 02, or 03) or Figure A-GBCAA (Sheet 02 or 04) of Airbus Service Bulletin A300-55-6050; as applicable.
(1) Where Airbus Service Bulletins A300-55-6050; and A310-55-2051; both Revision 01, both dated August 20, 2014; specify a compliance time “from original service bulletin issue date,” this AD requires compliance within the specified compliance time after the effective date of this AD.
(2) Where Airbus Service Bulletins A300-55-6050; and A310-55-2051 both Revision 01, both dated August 20, 2014; specify to contact Airbus for appropriate action: 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).
(3) Airplanes on which a rudder is installed having a serial number that is not in the range HF-1005 through HF-1323, inclusive; HF-1325, HF-1327, HF-1329, HF-1331, HF-1332, HF-1340, TS-1324, TS-1326, TS-1328, TS-1330, TS-1333 through TS-1339, inclusive; TS-1341 through TS-1420, inclusive; or TS-2001 through TS-2197, inclusive; are not affected by the requirements of paragraphs (g) and (h) of this AD, provided that no repairs have been done in accordance with the applicable SRM specified in paragraph (i) of this AD on the composite side shell panel of that rudder since installation.
(4) The compliance time for the initial detailed inspection of the restored area for loose or lost tape identified in Tables 3 and 4 of paragraph 1.E., “Compliance,” of Airbus Service Bulletins A300-55-6050 and A310-55-2051, both Revision 01, both dated August 20, 2014; specifies “within 500 FH or 4 months after closing holes.” This AD requires this action within 500 flight hours or 4 months, whichever occurs later, after the holes are closed.
This paragraph provides credit for actions required by paragraphs (g) and (h) of this AD, if those actions were performed before the effective date of this AD using Airbus Service Bulletin A300-55-6050, or A310-55-2051, both dated September 11, 2012; as applicable; which are not incorporated by reference in this AD.
As of the effective date of this AD, no person may install any affected rudder on any airplane, unless the actions required by paragraphs (g) and (h) of this AD have been accomplished.
The following provisions also apply to this AD:
(1)
(2)
(1) Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA Airworthiness Directive 2014-0026, dated January 28, 2014, 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 (o)(3) and (o)(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 the AD specifies otherwise.
(i) Airbus Service Bulletin A300-55-6050, Revision 01, dated August 20, 2014.
(ii) Airbus Service Bulletin A310-55-2051, Revision 01, dated August 20, 2014.
(3) For service information identified in this AD, contact Airbus SAS, Airworthiness Office—EAW, 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.
We are adopting a new airworthiness directive (AD) for certain Bombardier, Inc. Model BD-700-1A10 and BD-700-1A11 airplanes. This AD was prompted by reports of fluid entry and accumulation in the aft equipment bay. This AD requires modifying the aft equipment bay. We are issuing this AD to prevent excessive quantities of flammable fluid accumulation in the aft equipment bay. Flammable fluid entry and accumulation in the aft equipment bay, in excessive quantities, could exceed safe levels maintained by the drainage and ventilation system.
This AD becomes effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of February 25, 2016.
You may examine the AD docket on the Internet at
For service information identified in this final rule, contact Bombardier, Inc., 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone 514-855-5000; fax 514-855-7401; email
Cesar Gomez, Aerospace Engineer, Airframe and Mechanical Systems Branch, ANE-171, FAA, New York Aircraft Certification Office (ACO), 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7318; fax 516-794-5531.
We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to certain Bombardier, Inc. Model BD-700-1A10 and BD-700-1A11 airplanes. The NPRM published in the
Transport Canada Civil Aviation, which is the aviation authority for Canada, has issued Canadian Airworthiness Directive CF-2014-25, dated August 7, 2014 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for certain Bombardier, Inc. Model BD-700-1A10 and BD-700-1A11 airplanes. The MCAI states:
There have been two reports of fluid entry and accumulation in the aft equipment bay. The leaked fluid in the first incident was fuel and the fluid in the second incident was test dye. Further investigation revealed that leaked fluid from the aft fuel tank drain entered the bay through the slot in the door latch mechanism.
Flammable fluid entry and accumulation in the aft equipment bay, in excessive quantities, could exceed safe levels maintained by the drainage and ventilation system.
Bombardier Inc. has issued several Service Bulletins (SB) to modify the Aft Equipment Bay by installing a cover to the door latch mechanism in order to reduce the risk of fuel entry into it. This [Canadian] AD mandates the incorporation of the applicable Bombardier Inc. SBs to rectify this problem.
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. We received no comments on the NPRM (80 FR 3924, January 26, 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 this 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 3924, January 26, 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 3924, January 26, 2015).
Bombardier has issued the following service information:
• Bombardier Service Bulletin 700-1A11-52-019, dated March 29, 2012.
• Bombardier Service Bulletin 700-52-042, dated March 29, 2012.
• Bombardier Service Bulletin 700-52-5007, dated March 29, 2012.
• Bombardier Service Bulletin 700-52-6007, dated March 29, 2012.
The service information describes procedures for the modification of the aft equipment compartment door. 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 60 airplanes of U.S. registry.
We also estimate that it will take about 8 work-hours per product to comply with the basic requirements of this AD. The average labor rate is $85 per work-hour. Required parts will cost about $720 per product. Based on these figures, we estimate the cost of this AD on U.S. operators to be $84,000, or $1,400 per product.
According to the manufacturer, some of the costs of this AD may be covered under warranty, thereby reducing the cost impact on affected individuals. We do not control warranty coverage for affected individuals. As a result, we have included all costs in our cost estimate.
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 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 February 25, 2016.
None.
This AD applies to Bombardier, Inc. Model BD-700-1A10 and BD-700-1A11 airplanes, certificated in any category, serial numbers 9001 through 9476 inclusive and 9998.
Air Transport Association (ATA) of America Code 52, Doors.
This AD was prompted by reports of fluid entry and accumulation in the aft equipment bay. We are issuing this AD to prevent excessive quantities of flammable fluid accumulation in the aft equipment bay. Flammable fluid entry and accumulation in the aft equipment bay, in excessive quantities, could exceed safe levels maintained by the drainage and ventilation system.
Comply with this AD within the compliance times specified, unless already done.
Within 24 months after the effective date of this AD, modify the aft equipment bay, in accordance with the Accomplishment Instructions of the applicable service information specified in paragraphs (g)(1) through (g)(4) of this AD.
(1) For Model BD-700-1A10 airplanes, serial numbers 9002 through 9312 inclusive, 9314 through 9380 inclusive, and 9384 through 9429 inclusive: Bombardier Service Bulletin 700-52-042, dated March 29, 2012.
(2) For Model BD-700-1A10 airplanes, serial numbers 9381 and 9432 through 9476 inclusive: Bombardier Service Bulletin 700-52-6007, dated March 29, 2012.
(3) For Model BD-700-1A11 airplanes, serial numbers 9127 through 9383 inclusive, 9389 through 9400 inclusive, 9404 through 9431 inclusive, and 9998: Bombardier Service Bulletin 700-1A11-52-019, dated March 29, 2012.
(4) For Model BD-700-1A11 airplanes, serial numbers 9386, 9401, and 9445 through 9474 inclusive: Bombardier Service Bulletin 700-52-5007, dated March 29, 2012.
The following provisions also apply to this AD:
(1)
(2)
Refer to Mandatory Continuing Airworthiness Information (MCAI) Canadian Airworthiness Directive CF-2014-25, dated August 21, 2014, for related information. This MCAI may be found in the AD docket 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 this AD specifies otherwise.
(i) Bombardier Service Bulletin 700-1A11-52-019, dated March 29, 2012.
(ii) Bombardier Service Bulletin 700-52-042, dated March 29, 2012.
(iii) Bombardier Service Bulletin 700-52-5007, dated March 29, 2012.
(iv) Bombardier Service Bulletin 700-52-6007, dated March 29, 2012.
(3) For service information identified in this AD, contact Bombardier, Inc., 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone 514-855-5000; fax 514-855-7401; 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), DOT.
Final rule.
We are adopting a new airworthiness directive (AD) for Airbus Helicopters Deutschland GmbH (AHD) (previously Eurocopter Deutschland GmbH) Model MBB-BK 117 A-1, A-3, A-4, B-1, B-2, C-1, and C-2 helicopters. This AD requires an initial and recurring inspection of the N2 control arm and, depending on the outcome of the inspection, repairing or replacing the N2 control arm. This AD was prompted by a report of a heavily corroded and broken N2 control arm. The actions of this AD are intended to detect corrosion, a crack, or a scratch in the N2 control arm, which could lead to failure of the N2 control arm, a drop in rotor speed, and subsequent loss of control of the helicopter.
This AD is effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of certain documents listed in this AD as of February 25, 2016.
For service information identified in this final rule, contact Airbus Helicopters, Inc., 2701 N. Forum Drive, Grand Prairie, Texas 75052; telephone (972) 641-0000 or (800) 232-0323; fax (972) 641-3775; or at
You may examine the AD docket on the Internet at
James Blyn, Aviation Safety Engineer, Regulations and Policy Group, Rotorcraft Directorate, FAA, 10101 Hillwood Pkwy., Fort Worth, TX 76177; telephone (817) 222-5110; email
On March 24, 2015, at 80 FR 15530, the
The NPRM was prompted by AD No. 2013-0154, dated July 22, 2013, issued by EASA, which is the Technical Agent for the Member States of the European Union, to correct an unsafe condition for the Eurocopter Deutschland GmbH (now AHD) Model MBB-BK117 A-1, A-3, A-4, B-1, B-2, C-1, and C-2 helicopters. EASA advises of an incident with a Model MBB-BK117 C-2 helicopter that dropped rotor speed (RPM) within the green range and could not be recovered to nominal value because of a heavily corroded and broken N2 control arm. EASA advises that under certain flight conditions and power demands, a broken N2 control arm can cause a significant and non-recoverable drop in RPM. As a result, EASA AD No. 2013-0154 requires an initial and repetitive inspection of the N2 control arm for corrosion, damage, and scratches, and depending on the outcome of the inspection, repairing or replacing the N2 control arm.
Since the NPRM was issued, the FAA Southwest Regional Office has relocated and a group email address has been established for requesting an FAA alternative method of compliance for a helicopter of foreign design. We have revised the contact information throughout this final rule to reflect the new address and new email 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 15530, March 24, 2015).
These helicopters have been approved by the aviation authority of Germany and are approved for operation in the United States. Pursuant to our bilateral agreement with Germany, EASA, its technical representative, has notified us of the unsafe condition described in the EASA AD. We are issuing this AD because we evaluated all information provided by EASA and determined the unsafe condition exists and is likely to exist or develop on other helicopters of these same type designs and that air safety and the public interest require adopting the AD requirements as proposed except for the minor editorial changes described above. These changes are consistent with the intent of the proposals in the NPRM (80 FR 15530, March 24, 2015) and will not increase the economic burden on any operator nor increase the scope of this AD.
The EASA AD allows a noncumulative tolerance of 3 months in the compliance time for the initial inspection on helicopters with less than 2 years from the date of first flight and for the repetitive inspections, and this AD does not.
Eurocopter issued ASB MBB-BK117-60A-126 for Model MBB-BK 117 A-1, A-3, A-4, B-1, B-2, and C-1 helicopters, and ASB MBB-BK117 C-2-76A-005 for Model MBB-BK 117 C-2 helicopters, both Revision 0, and both dated June 24, 2013. The Eurocopter ASBs specify inspecting the N2 control arm for corrosion, damage, and scratches and, depending on the outcome of the inspection, either repairing or replacing the affected parts. The Eurocopter ASBs also specify performing the inspection with each 12 month inspection until the N2 inspection requirements are incorporated into the aircraft maintenance manual.
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 441 helicopters of U.S. Registry. We estimate that operators may incur the following costs in order to comply with this AD. Labor costs are estimated at $85 per work-hour. Inspecting the N2 control arm requires about one work-hour for an estimated cost of $85 per helicopter and $37,485 for the U.S. fleet per inspection cycle. Repairing the N2 control arm requires about four work-hours for an estimated labor cost of $340. Replacing the N2 control arm requires about three work-hours for an estimated labor cost of $255. Parts to replace the N2 control arm for Model MBB-BK 117 A-1, A-3, A-4, B-1, B-2, and C-1 helicopters cost about $2,743 for a total estimated cost of $2,998. Parts to replace the N2 control arm for a Model MBB-BK 117 C-2 helicopter cost about $4,500 for a total estimated cost of $4,755.
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 helicopters 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 AHD Model MBB-BK 117 A-1, A-3, A-4, B-1, B-2, C-1, and C-2 helicopters, certificated in any category.
This AD defines the unsafe condition as corrosion, a crack, or a scratch on an N2 control arm. This condition could lead to failure of the N2 control arm, resulting in a reduction in rotor speed and subsequent loss of control of the helicopter.
This AD becomes effective February 25, 2016.
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.
For helicopters that have not reached 2 years from the date of first flight, within 1 year or before reaching 2 years from the date of first flight, whichever occurs first; and for helicopters that have reached or exceeded 2 years from the date of first flight, within 50 hours TIS:
(1) Visually inspect each N2 control arm for corrosion, a crack, and a scratch as depicted in Figure 1 of Eurocopter Alert Service Bulletin (ASB) MBB-BK117-60A-126 or ASB MBB-BK117 C-2-76A-005, both Revision 0, and both dated June 24, 2013, as applicable to your model helicopter.
(i) If an N2 control arm has corrosion or a scratch less than 0.5 millimeter (mm) (0.020 inch) in depth, before further flight, remove the corrosion and repair the scratch.
(ii) If an N2 control arm has any exfoliation corrosion, a crack, or has corrosion or a scratch 0.5 mm (0.020 inch) or greater in depth, before further flight, replace the N2 control arm.
(2) Thereafter, perform the requirements in paragraph (e)(1) of this AD at intervals not to exceed 12 months.
(1) The Manager, Safety Management Group, FAA, may approve AMOCs for this AD. Send your proposal to: James Blyn, Aviation Safety Engineer, Regulations and Policy Group, Rotorcraft Directorate, FAA, 10101 Hillwood Pkwy., Fort Worth, TX 76177; telephone (817) 222-5110; 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.
The subject of this AD is addressed in European Aviation Safety Agency (EASA) AD No. 2013-0154, dated July 22, 2013. You may view the EASA AD on the Internet at
Joint Aircraft Service Component (JASC) Code: Engine Controls, 7600.
(1) The Director of the Federal Register approved the incorporation by reference 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) Eurocopter Alert Service Bulletin (ASB) MBB-BK117-60A-126, Revision 0, dated June 24, 2013.
(ii) Eurocopter ASB MBB-BK117 C-2-76A-005, Revision 0, dated June 24, 2013.
(3) For Eurocopter service information identified in this final rule, contact Airbus Helicopters, Inc., 2701 N. Forum Drive, Grand Prairie, Texas 75052; telephone (972) 641-0000 or (800) 232-0323; fax (972) 641-3775; or at
(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), DOT.
Final rule.
We are adopting a new airworthiness directive (AD) for Agusta S.p.A. (Agusta) Model AB139 and AW139 helicopters. This AD requires visually inspecting certain subfloor frames for a crack. This AD was prompted by reports of cracks on in-service helicopters. The actions of this AD are intended to detect or prevent a crack in the subfloor frame, which could result in failure of the pilot and co-pilot pedal support frame and subsequent loss of control of the helicopter.
This AD is effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of a certain document listed in this AD as of February 25, 2016.
For service information identified in this rule, contact AgustaWestland, Product Support Engineering, Via del Gregge, 100, 21015 Lonate Pozzolo (VA) Italy, ATTN: Maurizio D'Angelo; telephone 39-0331-664757; fax 39-0331-664680; or at
You may examine the AD docket on the Internet at
Robert Grant, Aviation Safety Engineer, Safety Management Group, Rotorcraft Directorate, FAA, 10101 Hillwood Pkwy., Fort Worth, TX 76177; telephone (817) 222-5110; email
On June 5, 2015, at 80 FR 32072, the
The NPRM was prompted by AD No. 2014-0048, dated March 4, 2014, issued by EASA, which is the Technical Agent for the Member States of the European Union, to correct an unsafe condition for Agusta Model AB139 and AW139 helicopters with a S/N 31005 through 31517 (except S/N 31007, 31415, 31431, 31491, 31500, 31508, and 31516) and S/N 41001 through 41356 (except S/N 41355). EASA advises that cracks have been reported in the subfloor frame at station (STA) 2105 on in-service helicopters. This condition, if not detected and corrected, could lead to failure of the pedals supporting the frame, which in turn could lead to the pedals being inoperative and subsequent loss of control of the helicopter, EASA advises.
The EASA AD requires repetitive inspections of the subfloor frame at STA 2105 for a crack. The EASA AD also requires installation of frame reinforcements before further flight if there is a crack or within 1,200 flight hours if there is no crack. The EASA AD provides that installation of the frame reinforcements constitutes terminating action for the repetitive inspections required by the AD.
Since the NPRM was issued, the FAA Southwest Regional Office has relocated and a group email address has been established for requesting an FAA Alternative Method of Compliance (AMOC) for a helicopter of foreign design. This AD contains the current physical address of the FAA Southwest Regional Office and the new email address for requesting an AMOC.
We gave the public the opportunity to participate in developing this AD, but we received no comments on the NPRM (80 FR 32072, June 5, 2015).
These helicopters have been approved by the aviation authority of Italy and are approved for operation in the United States. Pursuant to our bilateral agreement with Italy, EASA, its technical representative, has notified us of the unsafe condition described in the EASA AD. We are issuing this AD because we evaluated all information provided by EASA and determined the unsafe condition exists and is likely to exist or develop on other helicopters of these same type designs and that air safety and the public interest require adopting the AD requirements as proposed.
The EASA AD requires conducting the initial inspection within 30 flight hours or 2 months, whichever occurs first, and thereafter, at intervals not to exceed 300 flight hours or 6 months, whichever occurs first. This AD requires conducting the initial inspection within 30 hours time-in-service (TIS), and thereafter, at intervals not to exceed 300 hours TIS.
We reviewed AgustaWestland Bolletino Tecnico No. 139-311, Revision B, dated June 4, 2014 (BT), for certain serial-numbered Agusta Model AB139 and AW139 helicopters. The BT calls for visual inspections of the subfloor frames within 30 flight hours or two months, whichever occurs first, and thereafter at intervals of 300 flight hours or 6 months, whichever comes first, until frame reinforcements are installed to prevent future failures. The BT also specifies installing the frame reinforcements immediately if a crack is found and within 1,200 flight hours if a crack is not found. 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 102 U.S.-registered helicopters and that labor costs average $85 a work hour. Based on these estimates, we expect the following costs:
• The visual inspection requires 2 work-hours for a labor cost of $170 per helicopter. No parts are needed, so the cost totals $170 per helicopter, $17,340 for the U.S. fleet.
• If there are no cracks, installing the frame reinforcements requires 240 work-hours for a labor cost of $20,400 and $2,274 for parts. The total cost is $22,674 per helicopter.
• If there is a crack, installing the frame reinforcements requires 240 work-hours for a labor cost of $20,400 and $3,401 for parts. The total cost is $23,801 per helicopter.
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 helicopters 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 Agusta S.p.A. Model AB139 and AW139 helicopters, serial number (S/N) 31005 through 31517 (except S/N 31007, 31415, 31431, 31491, 31500, 31508, and 31516) and S/N 41001 through 41356 (except S/N 41355), certificated in any category.
This AD defines the unsafe condition as a crack in a subfloor frame. This condition could result in failure of the pilot and co-pilot pedal support frame and subsequent loss of control of the helicopter.
This AD becomes effective February 25, 2016.
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 30 hours time-in-service (TIS) and thereafter at intervals not to exceed 300 hours TIS, using a light, inspect all visible surfaces of the left hand subfloor frame, right hand subfloor frame, and middle subfloor frame at station (STA) 2105 for a crack as shown in Figures 10 through 13 of AgustaWestland Bollettino Tecnico No. 139-311, Revision B, dated June 4, 2014 (BT 139-311).
(2) If there is a crack, before further flight, install frame STA 2105 retromod part number (P/N) 3G5306P47211 by following the Compliance Instructions, Part II, paragraphs 7 through 7.10. of BT 139-311.
(3) If there are no cracks, within 1200 hours TIS, install frame STA 2105 retromod P/N 3G5306P47211 by following the Compliance Instructions, Part II, paragraphs 7 through 7.10. of BT 139-311.
(4) Installing frame STA 2105 retromod P/N 3G5306P47211 terminates the repetitive inspection requirements in paragraph (e)(1) of this AD.
Special flight permits are prohibited.
(1) The Manager, Safety Management Group, FAA, may approve AMOCs for this AD. Send your proposal to: Robert Grant, Aviation Safety Engineer, Safety Management Group, Rotorcraft Directorate, FAA, 10101 Hillwood Pkwy., Fort Worth, TX 76177; telephone (817) 222-5110; 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.
The subject of this AD is addressed in European Aviation Safety Agency (EASA) AD No. 2014-0048, dated March 4, 2014. You may view the EASA AD on the Internet at
Joint Aircraft Service Component (JASC) Code: 5300, Fuselage Structure (General).
(1) The Director of the Federal Register approved the incorporation by reference 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) AgustaWestland Bollettino Tecnico No. 139-311, Revision B, dated June 4, 2014.
(ii) Reserved.
(3) For Agusta S.p.A. service information identified in this AD, contact AgustaWestland, Product Support Engineering, Via del Gregge, 100, 21015 Lonate Pozzolo (VA) Italy, ATTN: Maurizio D'Angelo; telephone 39-0331-664757; fax 39-0331-664680; or at
(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), DOT.
Final rule.
We are revising airworthiness directive (AD) 2015-12-09 for Airbus Helicopters Model EC135P1, EC135T1, EC135P2, EC135T2, EC135P2+, EC135T2+, and MBB-BK 117 C-2 helicopters. AD 2015-12-09 required inspecting certain washers for movement and making the appropriate repairs if the washers move. As published, AD 2015-12-09 referenced an incorrect date for the service information in the Credit for Previous Actions section. This AD corrects the error while retaining the requirements of AD 2015-12-09. These actions are intended to prevent loss of concerned control axis and subsequent loss of control of the helicopter.
This AD is effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of certain documents listed in this AD as of July 23, 2015 (80 FR 34831, June 18, 2015).
For service information identified in this final rule, contact Airbus Helicopters, Inc., 2701 N. Forum Drive, Grand Prairie, TX 75052; telephone (972) 641-0000 or (800) 232-0323; fax (972) 641-3775; or at
You may examine the AD docket on the Internet at
Matt Wilbanks, Aviation Safety Engineer, Regulations and Policy Group, Rotorcraft Directorate, Rotorcraft Directorate, FAA, 10101 Hillwood Pkwy, Fort Worth, TX 76177; telephone (817) 222-5110; email
On July 24, 2015, we issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to revise AD 2015-12-09, Amendment 39-18184 (80 FR 34831, June 18, 2015), which applied to Airbus Helicopters Model EC135P1, EC135T1, EC135P2, EC135T2, EC135P2+, EC135T2+, and MBB-BK 117 C-2 helicopters. The NPRM published in the
AD 2015-12-09 was prompted by AD No. 2013-0176, dated August 7, 2013, issued by EASA, which is the Technical Agent for the Member States of the European Union, to correct an unsafe condition for Eurocopter Deutschland GmbH Model EC 135 P1 (CDS), EC 135 P1 (CPDS), EC 135 P2+, EC 135 P2 (CPDS), EC 135 T1 (CDS), EC 135 T1 (CPDS), EC 135 T2+, EC 135 T2 (CPDS), EC 635 P2+, EC 635 T1 (CPDS), EC 635 T2+, and MBB-BK 117 C-2 helicopters. EASA advises that during installation work on a helicopter, it was discovered that it was not possible to install attachment hardware on a threaded blind borehole between the Smart Electro Mechanical Actuator (SEMA) and the control rod without play. EASA advises that this condition, if not detected and corrected, could lead to loss of the concerned control axis, possibly resulting in loss of helicopter control. For these reasons, EASA AD No. 2013-0176 requires a one-time inspection of the affected SEMA attachment hardware to detect improper connection and play and, depending on the findings, replacement of the affected hardware. After the issuance of EASA AD No. 2013-0176, Eurocopter Deutschland GmbH changed its name to Airbus Helicopters Deutschland GmbH.
When AD 2015-12-09 was published, an incorrect reference to the date of Eurocopter ASB EC135-22A-015, Revision 0, dated May 13, 2008, appeared in the text of the rule. Specifically, AD 2015-12-09 includes the following under paragraph (f), Credit for Previous Actions: “If you performed the actions in Eurocopter Alert Service Bulletin EC135-22A-015, Revision 0, dated May 13, 2018, or Eurocopter Alert Service Bulletin MBB BK117 C-2-22A-009, Revision 0, May 13, 2008, before the effective date of this AD, you met the requirements of this AD.” As published, the reference to May 13, 2018, is incorrect. The correct date for Eurocopter ASB EC135-22A-015, Revision 0, is May 13, 2008.
Accordingly, we are revising AD 2015-12-09 to correct the date for Eurocopter ASB EC135-22A-015, Revision 0. Further, we updated the physical address of the FAA Southwest Regional Office throughout this AD and the email address for requesting an Alternative Method of Compliance (AMOC). We did not change any other part of the preamble or regulatory information. The final rule is reprinted in its entirety for the convenience of affected operators.
We gave the public the opportunity to participate in developing this AD, but we received no comments on the NPRM (80 FR 45900, August 3, 2015).
These helicopters have been approved by the aviation authority of Germany and are approved for operation in the United States. Pursuant to our bilateral agreement with Germany, EASA, its technical representative, has notified us of the unsafe condition described in the EASA AD. We are issuing this AD because we evaluated all information provided by EASA and determined the unsafe condition exists and is likely to exist or develop on other helicopters of these same type designs.
Eurocopter reported in ASBs EC135-22A-015, Revision 1, dated January 28, 2013, and MBB BK117 C-2-22A-009, Revision 1, dated August 3, 2009, that it was discovered during the installation work on a helicopter that it was not possible to establish attachment hardware on a threaded blind borehole between the SEMA and the control rod without play. The ASBs state that “unfavourable adding of the tolerances” of the individual attachment hardware elements caused the screw to push against the bottom of the threaded blind borehole on the SEMA, preventing any clamping force on the screw head. The ASBs call for inspecting the SEMA attachment hardware connected to their respective control rods for play and making the proper adjustments to eliminate any play. 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 385 helicopters of U.S. Registry and that labor costs average $85 per work-hour. Based on these estimates, we expect the following costs:
• Inspecting for movement of the washers requires 1.5 work-hours for a labor cost of $128 per helicopter and $49,280 for the U.S. fleet.
• Replacing the screws and related work requires an additional 0.5 work-hours for a labor cost of $43. Screws cost $4 each while washers cost $10 each. We estimate the cost at $79 per repair.
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 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 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.
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 Airbus Helicopters Model EC135P1, EC135T1, EC135P2, EC135T2, EC135P2+, EC135T2+, and MBB-BK 117 C-2 helicopters, certificated in any category.
This AD defines the unsafe condition as loose attachment hardware between the Smart Electro Mechanical Actuator (SEMA) and a control rod. This condition could result in loss of the control axis and subsequent loss of control of the helicopter.
This AD becomes effective February 25, 2016.
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 50 hours time-in-service (TIS), for Model EC135P1, EC135T1, EC135P2, EC135T2, EC135P2+, and EC135T2+ helicopters, do the following:
(i) Using Figure 1 and Figure 2 of Eurocopter Alert Service Bulletin EC135-22A-015, Revision 1, dated January 28, 2013 (ASB EC135-22A-015) as reference, inspect the attachment hardware between the SEMA and the longitudinal actuator control rod to determine whether any of the washers can be moved.
(A) If no washer can be moved, no further action is needed.
(B) If a washer can be moved, replace the four screws and install two additional washers, part number (P/N) EN2139-05016, to connect the SEMA with the control rod. Torque-tighten each screw to 5-6 Nm.
(ii) Using Figure 1 and Figure 2 of ASB EC135-22A-015 as reference, inspect the attachment hardware between the SEMA and the lateral actuator control rod to determine whether any of the washers can be moved.
(A) If no washer can be moved, no further action is needed.
(B) If a washer can be moved, replace the four screws and install two additional washers, P/N EN2139-05016, to connect the SEMA with the control rod. Torque-tighten each screw to 5-6 Nm.
(iii) Using Figure 1, Figure 3, and Figure 4 of ASB EC135-22A-015 as reference, inspect the attachment hardware between the SEMA and the yaw actuator control rod to determine whether any of the washers can be moved.
(A) If no washer can be moved, no further action is needed.
(B) If a washer can be moved, replace the four screws and install two additional washers, P/N EN2139-05016, to connect the SEMA with the control rod. Torque-tighten each screw to 5-6 Nm.
(2) Within 50 hours TIS, for Model MBB BK117 C-2 helicopters, using Figure 1 of Eurocopter Alert Service Bulletin MBB BK117 C-2-22A-009, Revision 1, dated August 3, 2009, as reference, inspect the attachment hardware between the Yaw-SEMA and the Yaw-SEMA control rod to determine whether any of the washers can be moved.
(i) If no washer can be moved, no further action is needed.
(ii) If a washer can be moved, replace the four screws and install two additional washers, P/N EN2139-05016, to connect the SEMA with the control rod. Torque-tighten each screw to 5-6 Nm and apply polyurethane lacquer onto the attachment hardware.
This AD revises AD 2015-12-09, Amendment 39-18184 (80 FR 34831, June 18, 2015).
If you performed the actions in Eurocopter Alert Service Bulletin EC135-22A-015, Revision 0, dated May 13, 2008, or Eurocopter Alert Service Bulletin MBB BK117 C-2-22A-009, Revision 0, May 13, 2008, before the effective date of this AD, you met the requirements of this AD.
(1) The Manager, Safety Management Group, FAA, may approve AMOCs for this AD. Send your proposal to: Matt Wilbanks, Aviation Safety Engineer, Regulations and Policy Group, Rotorcraft Directorate, FAA, 10101 Hillwood Pkwy, Fort Worth, TX 76177; telephone (817) 222-5110; 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.
The subject of this AD is addressed in the European Aviation Safety Agency (EASA) AD No. 2013-0176, dated August 7, 2013. You may view the EASA AD on the Internet at
Joint Aircraft Service Component (JASC) Code: 2213, Flight Controller.
(1) The Director of the Federal Register approved the incorporation by reference 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.
(3) The following service information was approved for IBR on July 23, 2015, (80 FR 34831, June 18, 2015).
(i) Eurocopter Alert Service Bulletin EC135-22A-015, Revision 1, dated January 28, 2013.
(ii) Eurocopter Alert Service Bulletin MBB BK117 C-2-22A-009, Revision 1, dated August 3, 2009.
(4) For Airbus Helicopters service information identified in this final rule, contact Airbus Helicopters, Inc., 2701 N. Forum Drive, Grand Prairie, TX 75052; telephone (972) 641-0000 or (800) 232-0323; fax (972) 641-3775; or at
(5) You may view this service information at FAA, Office of the Regional Counsel, Southwest Region, Room 6N-321, 10101 Hillwood Pkwy, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call (817) 222-5110.
(6) 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 certain Bombardier Model DHC-8-400 series airplanes. This AD was prompted by a report of several cracks found on the forward passenger airstair door step assembly. This AD requires an inspection to determine the serial number of the airstair door step assembly, and if necessary, an electronic tap test, reidentification of the airstair door step assembly, and replacement of the airstair door step assembly. We are issuing this AD to detect and correct cracks in the forward passenger airstair door step assembly; such cracking could propagate and result in the structural failure of the steps and impede the evacuation of passengers in the event of an emergency egress situation.
This AD becomes effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of February 25, 2016.
You may examine the AD docket on the Internet at
For service information identified in this final rule, contact Bombardier, Inc., Q-Series Technical Help Desk, 123 Garratt Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone 416-375-4000; fax 416-375-4539; email
Jeffrey Zimmer, Aerospace Engineer, Airframe and Mechanical Systems Branch, ANE-171, FAA, New York Aircraft Certification Office, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-7306; fax 516-794-5531.
We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to certain Bombardier Model DHC-8-400 series airplanes. The NPRM published in the
Transport Canada Civil Aviation (TCCA), which is the aviation authority for Canada, has issued Canadian Airworthiness Directive CF-2013-20R1, dated December 30, 2013 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states:
There has been one in-service report of several cracks being found on the forward passenger airstair door step assembly between the steps and the sidewall panels. The investigation revealed that the application of potting compound may have been omitted during the bonding at the joint of the airstair door steps and the sidewalls. The omission of potting compound could cause the bonding sealant to crack. The cracks, if not detected, could propagate to result in the structural failure of the steps.
In the event of an emergency egress situation, the failure of the airstair step assembly could impede the evacuation of passengers.
This [Canadian] AD mandates the replacement of the affected forward passenger airstair step assembly with a new or reworked step assembly.
Revision 1 of this [Canadian] AD provides additional instructions for performing an electronic tap test of the airstair step assembly if the Serial Number (S/N) of the airstair step assembly cannot be found.
Required actions include an inspection to determine the serial number of the airstair door step assembly, and if necessary, an electronic tap test and reidentification and replacement of the assembly. 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 41661, July 17, 2014) and the FAA's response to each comment.
Republic Airlines and Horizon Air requested that we revise the NPRM (79 FR 41661, July 17, 2014) to refer to the latest service information.
We agree with the request. The revised service information, Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, provides minor wording changes but does not change the procedures or add any airplanes. We have revised paragraphs (g) and (h) in this AD to refer to the new service information, and added Bombardier Service Bulletin 84-52-77, Revision B, dated October 31, 2013, to paragraph (i) of this AD, to provide credit for previous actions done before the effective date of this AD.
Horizon Air requested that we revise paragraph (g) of the proposed AD (79 FR 41661, July 17, 2014) to allow a review of aircraft records, in addition to a physical inspection, as a way to determine the serial number of the airstair door step assembly.
We disagree with the request. A review of aircraft records may provide an appropriate means to determine serial numbers. For the airstair door step assembly, however, we understand that operators may remove and exchange the
Horizon Air requested that we revise paragraph (g)(1)(ii) of the proposed AD (79 FR 41661, July 17, 2014), which would conditionally require replacing the airstair door step assembly in accordance with Bombardier Service Bulletin 84-52-77, Revision B, dated October 31, 2013. For this action, Horizon Air requested that we also allow the replacement to be done using maintenance manual tasks 52-11-01-000-801 and 52-11-01-400-801. Horizon Air stated that the service information specified in the NPRM does not include any actions beyond those specified in the maintenance manual tasks.
We disagree with the request. Part 3, “Procedure,” of the Accomplishment Instructions of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, does, in fact, specify additional tasks not included in the maintenance manual tasks referenced by the commenter. The additional tasks include verification of the serial number of the new airstair door step assembly before installation, and adjustment and a functional check of the new door. We have not changed this AD regarding this issue.
Horizon Air requested that we revise the NPRM (79 FR 41661, July 17, 2014) to require only the section of the Accomplishment Instructions of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, that directly corrects the unsafe condition: paragraph 3.B., “Procedure.” Horizon Air stated that the unsafe condition is not directly corrected by accomplishment of the actions specified in paragraph 3.A., “Job Set-up,” and paragraph 3.C., “Close Out,” of the Accomplishment Instructions of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014. Horizon Air added that incorporating the Job Set-up and Close Out as a requirement of the AD would restrict an operator's ability to perform other maintenance in conjunction with the incorporation of the service information.
We agree with the request and the commenter's rationale. We have revised paragraph (g) of this AD accordingly.
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 41661, July 17, 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 41661, July 17, 2014).
We also determined that these changes will not increase the economic burden on any operator or increase the scope of this AD.
Bombardier has issued Service Bulletin 84-52-77, Revision C, dated June 5, 2014, including Appendix A, and with the attached Short Brothers Service Bulletin D8400-52-0011, Revision C, dated February 26, 2014. The service information describes procedures for determining the airstair door step assembly serial number, doing an electronic tap test, and reidentifying and replacing the assembly. This service information is reasonably available because the interested parties have access to it through their normal course of business or by means identified in the
We estimate that this AD affects 76 airplanes of U.S. registry. We also estimate that it will take about 1 work-hour per product to comply with the basic requirements of this AD. The average labor rate is $85 per work-hour. Required parts would cost about $0 per product. Based on these figures, we estimate the cost of this AD on U.S. operators to be $6,460, or $85 per product.
In addition, we estimate that any necessary follow-on actions would take up to 9 work-hours and require parts costing $206,175, for a cost of $206,940 per product. We have no way of determining the number of aircraft that might need these actions.
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 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 February 25, 2016.
None.
This AD applies to Bombardier, Inc. Model DHC-8-400, -401, and -402 airplanes, certificated in any category, serial numbers 4001 and subsequent.
Air Transport Association (ATA) of America Code 52, Doors.
This AD was prompted by a report of several cracks found on the forward passenger airstair door step assembly. We are issuing this AD to detect and correct cracks in the forward passenger airstair door step assembly, which could propagate and result in the structural failure of the steps and impede the evacuation of passengers in the event of an emergency egress situation.
Comply with this AD within the compliance times specified, unless already done.
For airplanes having serial numbers 4001 through 4393: Within 320 days after the effective date of this AD, do an inspection to determine the serial number of the airstair door step assembly, in accordance with paragraph 3.B., “Procedure,” of the Accomplishment Instructions of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, including Appendix A, and with the attached Short Brothers Service Bulletin D8400-52-0011, Revision C, dated February 26, 2014.
(1) If the serial number of the airstair door step assembly cannot be found, or if the serial number is illegible: Before further flight, do an electronic tap test to determine the existence of epoxy compound, in accordance with paragraph 3.B., “Procedure,” of the Accomplishment Instructions of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, including Appendix A, and with the attached Short Brothers Service Bulletin D8400-52-0011, Revision C, dated February 26, 2014.
(i) If the existence of epoxy compound is confirmed, before further flight, reidentify the airstair door step assembly, in accordance with paragraph 3.B., “Procedure,” of the Accomplishment Instructions of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, including Appendix A, and with the attached Short Brothers Service Bulletin D8400-52-0011, Revision C, dated February 26, 2014.
(ii) If the existence of epoxy compound is not confirmed: Within 6,000 flight hours after the effective date of this AD, replace the airstair door step assembly, in accordance with paragraph 3.B., “Procedure,” of the Accomplishment Instructions of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, including Appendix A, and with the attached Short Brothers Service Bulletin D8400-52-0011, Revision C, dated February 26, 2014.
(2) If the serial number of the airstair door step assembly is in the affected range specified in paragraph 1.A., “Effectivity,” of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014: Within 6,000 flight hours after the effective date of this AD, replace the airstair door step assembly, in accordance with paragraph 3.B., “Procedure,” of the Accomplishment Instructions of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, including Appendix A, and with the attached Short Brothers Service Bulletin D8400-52-0011, Revision C, dated February 26, 2014.
As of the effective date of this AD, no person may install on any airplane an airstair door step assembly with part number 85217008-001 containing a serial number in the affected range specified in paragraph 1.A., “Effectivity,” of Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, including Appendix A, and with the attached Short Brothers Service Bulletin D8400-52-0011, Revision C, dated February 26, 2014.
This paragraph provides credit for actions required by paragraph (g) of this AD if the serial number is known, and if those actions were performed before the effective date of this AD using Bombardier Service Bulletin 84-52-77, Revision A, dated April 24, 2013; or Bombardier Service Bulletin 84-52-77, Revision B, dated October 31, 2013. This service information is not incorporated by reference in this AD.
The following provisions also apply to this AD:
(1)
(2)
(1) Refer to Mandatory Continuing Airworthiness Information (MCAI) Canadian Airworthiness Directive CF-2013-20R1, dated December 30, 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 (l)(3) and (l)(5) 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) Bombardier Service Bulletin 84-52-77, Revision C, dated June 5, 2014, including Appendix A, which is undated, and attached Short Brothers Service Bulletin D8400-52-0011, Revision C, dated February 26, 2014.
(ii) Reserved.
(3) For Bombardier service information identified in this AD, contact Bombardier, Inc., Q-Series Technical Help Desk, 123 Garratt Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone 416-375-4000; fax 416-375-4539; email
(4) For Short Brothers service information identified in this AD, contact Short Brothers PLC, Airworthiness, P.O. Box 241, Airport Road, Belfast, BT3 9DZ Northern Ireland;
(5) 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.
(6) 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 superseding Airworthiness Directive (AD) 98-18-26, for certain Airbus Model A320 series airplanes. AD 98-18-26 required repetitive inspections to detect fatigue cracking of the front spar vertical stringers on the wings; and repair, if necessary. This new AD requires repetitive high frequency eddy current (HFEC) inspections for cracking of the radius of the front spar vertical stringers and the horizontal floor beam on frame 36, a rototest inspection for cracking of the fastener holes of the front spar vertical stringers on frame 36, and repair if necessary. This AD was prompted by reports that indicate new repetitive inspections having new thresholds and intervals are needed and that additional work is needed to accomplish the inspections on airplanes on which a previous modification has been accomplished. We are issuing this AD to detect and correct fatigue cracking of the front spar vertical stringers on the wings, which could result in the reduced structural integrity of the airframe.
This AD becomes effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of February 25, 2016.
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 to supersede AD 98-18-26, Amendment 39-10742 (63 FR 47423, September 8, 1998). AD 98-18-26 applied to certain Airbus Model A320 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 2014-0069, dated March 19, 2014 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition on certain Airbus Model A320-211, -212, and -231 airplanes. The MCAI states:
During center fuselage certification full scale fatigue test, cracks were found on the front vertical stringer at frame 36. Analysis of these findings indicated that a number of in-service aeroplanes could be similarly affected.
This condition, if not detected and corrected, could lead to crack propagation and consequent deterioration of the structural integrity of the aeroplane.
To address this potential unsafe condition, [Directorate General for Civil Aviation] DGAC France AD 97-311-105 [which corresponds to FAA AD 98-18-26, Amendment 39-10742 (63 FR 47423, September 8, 1998)] was issued to require repetitive [HFEC] inspections [for cracking] in accordance with the instruction of Airbus Service Bulletin (SB) A320-57-1016. At the same time, the modification provided by Airbus SB A320-57-1017 was considered to be terminating action for the repetitive inspections required by DGAC France AD 97-311-105.
Since that [DGAC] AD was issued, and following new analysis, modification per Airbus SB A320-57-1017 is no longer considered to be terminating action for the repetitive inspections as required by DGAC France AD 97-311-105.
Aeroplanes with [manufacturer serial number] MSN 0080 up to 0155 inclusive have been delivered with the addition of a 5 [millimeter] mm thick light alloy shim under the heads of 2 fasteners at the top end of the front spar vertical stringers (Airbus modification 21290P1546, which is the production line equivalent to in-service modification through Airbus SB A320-57-1017). From MSN 0156 and higher, all aeroplanes are delivered with vertical stiffeners of the forward wing spar upper end with stiffener cap thickness increased from 4 to 6 mm (Airbus modification 21290P1547).
Prompted by these findings, Airbus issued SB A320-57-1178 to introduce new repetitive inspections with new thresholds and intervals.
For the reasons described above, DGAC France AD 97-311-105 is superseded and this [EASA] AD requires the repetitive inspections at new thresholds and intervals.
After EASA issued [proposed airworthiness directive] PAD 14-021, it was discovered that additional work [HFEC inspections for cracking of the radius of spar vertical stringers and horizontal beam in the center fuselage of frame 36, and a rototest inspection for cracking of the fastener holes of the spar vertical stringers radius on Frame 36 and repair if necessary], to be included in Revision 01 of Airbus SB A320-57-1178, is required to accomplish the inspections. This Final [EASA] AD has been amended accordingly.
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 (80 FR 32063, June 5, 2015) and the FAA's response to the comments.
Delta Airlines (DAL) asked that we move the repetitive inspection intervals from paragraph (g) of the proposed AD (80 FR 32063, June 5, 2015), and create a new paragraph (i) with the repetitive inspection intervals. DAL stated that having the inspection method and the repetitive inspection intervals in one paragraph, as well as a separate paragraph for the initial inspection is cumbersome.
We do not agree with the requested changes. We re-examined the structure of the regulatory text of this AD, and have determined that the specified language as proposed is clear and aligns with the MCAI. Therefore, we have not changed this AD in this regard.
DAL also asked that we add sub-steps to requirements in the proposed AD (80 FR 32063, June 5, 2015), to clarify the inspection requirements specified in Airbus Service Bulletin A320-57-1178, Revision 01, dated May 28, 2014.
We do not agree. Our goal in referring to the Accomplishment Instructions of the service information is to ensure that operators follow the details in the inspection steps shown therein. DAL has the option of creating task cards if it makes accomplishing the sub-steps easier, provided the cards meet the intent of the AD. We have not changed this AD in this regard.
Additionally, DAL asked that Appendix 01 of Airbus Service Bulletin A320-57-1178, Revision 01, dated May 28, 2014, be removed from the service bulletin identification in the NPRM (80 FR 32063, June 5, 2015), because Appendix 01 has Gantt Chart information that should not be highlighted as a regulatory requirement for compliance.
We do not agree. The information in Appendix 01 of Airbus Service Bulletin A320-57-1178, Revision 01, dated May 28, 2014, may be helpful to operators that want to determine the number of work hours necessary to accomplish specific actions. Moreover, Appendix 01 does not contain a requirement for compliance. We have not changed this AD in this regard.
We reviewed the relevant data and determined that air safety and the public interest require adopting this AD as proposed, with minor editorial changes. We have determined that these minor changes:
• Are consistent with the intent that was proposed in the NPRM (80 FR 32063, June 5, 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 32063, June 5, 2015).
We have 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 A320-57-1178, Revision 01, dated May 28, 2014, including Appendix 01, dated May 28, 2014. The service information describes procedures for inspecting the radius of the front spar vertical stringers and the horizontal floor beam on frame 36 for cracking. 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 17 airplanes of U.S. registry.
We also estimate that it will take about 24 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 $34,680, or $2,040 per product.
In addition, we estimate that any necessary follow-on actions will take about 49 work-hours and require parts costing $1,210, for a cost of $5,375 per product. We have no way of determining the number of aircraft that might need this action.
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 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 February 25, 2016.
This AD replaces AD 98-18-26, Amendment 39-10742 (63 FR 47423, September 8, 1998).
This AD applies to Airbus Model A320-211, -212, and -231 airplanes, certificated in any category, manufacturer serial numbers (MSN) 0001 through 0155 inclusive.
Air Transport Association (ATA) of America Code 57, Wings.
This AD was prompted by cracks found on the front vertical stringer at frame 36. This AD was also prompted by reports that indicate new repetitive inspections having new thresholds and intervals are needed and that additional work is needed to accomplish the inspections on airplanes on which a previous modification has been accomplished. We are issuing this AD to detect and correct fatigue cracking of the front spar vertical stringers on the wings, which could result in the reduced structural integrity of the airframe.
Comply with this AD within the compliance times specified, unless already done.
Within the applicable compliance times specified in paragraphs (h)(1) through (h)(4) of this AD, do a high frequency eddy current (HFEC) inspection for cracking of the radius of the front spar vertical stringers and the horizontal floor beam on frame 36, and do a rototest inspection for cracking of the fastener holes of the front spar vertical stringers on frame 36, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A320-57-1178, Revision 01, dated May 28, 2014, including Appendix 01, dated May 28, 2014. Repeat the inspections thereafter at the compliance times specified in paragraphs (g)(1) and (g)(2) of this AD.
(1) For Configuration 1 airplanes identified in paragraph (h)(1) of this AD: At intervals not to exceed 8,800 flight cycles or 17,700 flight hours, whichever occurs first.
(2) For Configuration 2, 3, and 4 airplanes identified in paragraphs (h)(2) through (h)(4) of this AD: At intervals not to exceed 24,900 flight cycles or 49,800 flight hours, whichever occurs first.
Do the initial inspections required by paragraph (g) of this AD within the applicable compliance times specified in paragraphs (h)(1) through (h)(4) of this AD.
(1) For Configuration 1 airplanes, having MSNs 0001 through MSN 0079 inclusive, on which the modification specified by Airbus Service Bulletin A320-57-1017, dated September 3, 1991; or Airbus Service Bulletin A320-57-1017, Revision 01, dated March 17, 1997, has not been accomplished: Inspect at the later of the times specified by paragraphs (h)(1)(i) through (h)(1)(iii) of this AD.
(i) Inspect at the later of the times specified by paragraphs (h)(1)(i)(A) and (h)(1)(i)(B) of this AD.
(A) Prior to the accumulation of 24,000 flight cycles or 48,000 flight hours, whichever occurs first since airplane first flight.
(B) Within 60 days after the effective date of this AD.
(ii) Inspect within 8,800 flight cycles or 17,700 flight hours, whichever occurs first, since the last inspection specified in Airbus Service Bulletin A320-57-1016 was accomplished.
(iii) Inspect within 850 flight cycles or 1,700 flight hours, whichever occurs first, after the effective date of this AD, without exceeding 14,000 flight cycles after the last inspection specified in Airbus Service Bulletin A320-57-1016 was accomplished.
(2) For Configuration 2 airplanes, having MSNs 0001 through 0079 inclusive, on which the actions specified by Airbus Service Bulletin A320-57-1016, have not been done prior to accomplishing the actions specified by Airbus Service Bulletin A320-57-1017, dated September 3, 1991; or Airbus Service Bulletin A320-57-1017, Revision 01, dated March 17, 1997: Inspect at the later of the times specified by paragraphs (h)(2)(i) and (h)(2)(ii) of this AD.
(i) Within 8,800 flight cycles or 17,700 flight hours, whichever occurs first, since the modification specified in Airbus Service Bulletin A320-57-1017, dated September 3, 1991; or Airbus Service Bulletin A320-57-1017, Revision 01, dated December 6, 1995, was accomplished.
(ii) Within 850 flight cycles or 1,700 flight hours, whichever occurs first, after the effective date of this AD.
(3) For Configuration 3 airplanes, having MSNs 0001 through 0079 inclusive, on which the actions specified by Airbus Service Bulletin A320-57-1016, have been done prior to accomplishing the actions specified by Airbus Service Bulletin A320-57-1017, dated September 3, 1991; or Airbus Service Bulletin A320-57-1017, Revision 01, dated March 17, 1997: Inspect at the later of the times specified by paragraphs (h)(3)(i) and (h)(3)(ii) of this AD.
(i) Within 24,900 flight cycles or 49,800 flight hours, whichever occurs first, since the modification specified in Airbus Service Bulletin A320-57-1017, dated September 3, 1991; or Airbus Service Bulletin A320-57-1017, Revision 01, dated March 17, 1997, was accomplished.
(ii) Within 850 flight cycles or 1,700 flight hours, whichever occurs first, after the effective date of this AD.
(4) For Configuration 4 airplanes, having MSNs 0080 through 0155 inclusive: Inspect at the later of the times specified in paragraphs (h)(4)(i) or (h)(4)(ii) of this AD.
(i) Prior to the accumulation of 54,300 flight cycles or 108,600 flight hours, whichever occurs first since airplane first flight.
(ii) Within 60 days after the effective date of this AD.
If any crack is detected during any inspection required by paragraph (g) of this AD: 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).
The following provisions also apply to this AD:
(1)
(2)
Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA Airworthiness Directive 2014-0069, dated March 19, 2014, for related information. This MCAI may be found in the AD docket 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 this AD specifies otherwise.
(3) The following service information was approved for IBR on February 25, 2016.
(i) Airbus Service Bulletin A320-57-1178, Revision 01, dated May 28, 2014, including Appendix 01, dated May 28, 2014.
(ii) Reserved.
(4) For service information identified in this AD, contact Airbus, Airworthiness Office—EIAS, 1 Rond Point Maurice
(5) 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.
(6) 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 MD Helicopters Inc. (MDHI) Model 500N and 600N helicopters with certain rotating cone assemblies installed. This AD requires establishing a life limit of 10,000 hours time-in-service (TIS) on these rotating cone assemblies. This AD was prompted by the determination that MDHI created rotating cone assemblies with new dash numbers but incorrectly failed to identify them as life-limited parts. The actions are intended to prevent operation of rotating cone assemblies past their life limits, failure of the rotating cone assemblies, loss of directional control, and subsequent loss of control of the helicopter.
This AD is effective February 25, 2016.
For service information identified in this final rule, contact MD Helicopters, Inc., Attn: Customer Support Division, 4555 E. McDowell Rd., Mail Stop M615, Mesa, AZ 85215-9734; telephone 1-800-388-3378; fax 480-346-6813; or at
You may examine the AD docket on the Internet at
Galib Abumeri, Aerospace Engineer, Los Angeles Aircraft Certification Office, Transport Airplane Directorate, FAA, 3960 Paramount Blvd., Lakewood, California 90712, telephone 562-627-5324; email
On June 9, 2015, at 80 FR 32508, the
Since the NPRM was issued, the FAA Southwest Regional Office has relocated. This AD includes the current physical address of the FAA Southwest Regional Office.
We gave the public the opportunity to participate in developing this AD, but we received no comments on the NPRM (80 FR 32508, June 9, 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.
MDHI issued Service Bulletin SB500N-046 and SB600N-054 (SB) as a single bulletin on July 9, 2012. The SB calls for a one-time inspection within 100 flight hours to determine the rotating cone assembly's part number on MDHI Model 500N and 600N helicopters. The SB then states the need to correct the component record for certain rotating cone assemblies.
The SB also specifies determining the rotating cone assembly's total service time since new and recording this on the component record. MDHI reports that failure to comply with the SB may result in an aircraft exceeding the life limit of the rotating cone assembly and that this could lead to component failure and loss of directional control of the helicopter.
The SB calls for inspecting the rotating cone assembly to determine its P/N. We make no requirement about how to determine the P/N. The compliance time for the SB is within 100 flight hours, while this AD requires compliance within 1 year or by the next annual inspection, whichever comes later.
We estimate that this AD affects 8 helicopters of U.S. Registry and that labor costs average $85 a work hour. We estimate that creating a component history card and revising the appropriate records takes 1 work-hour. No parts are needed for a total cost of $85 per helicopter and $680 for the U.S. fleet.
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
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 MD Helicopters Inc. (MDHI) Model 500N with a rotating cone assembly part number (P/N) 500N3740-81 installed, and Model 600N helicopters with a rotating cone assembly P/N 500N3740-71 installed, certificated in any category.
This AD defines the unsafe condition as a rotating cone assembly remaining in service beyond its fatigue life. This condition could result in failure of the rotating cone assembly and loss of control of the helicopter.
This AD becomes effective February 25, 2016.
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 1 year or at the next annual inspection, whichever comes later:
(i) Create a component history card or equivalent record for each rotating cone assembly, P/N 500N3740-81 and P/N 500N3740-71, and record a life limit of 10,000 hours time-in-service (TIS).
(ii) Revise the Airworthiness Limitations Section of the applicable maintenance manual or Instructions for Continued Airworthiness by establishing a new retirement life of 10,000 hours TIS for each rotating cone assembly, P/N 500N3740-81 and P/N 500N3740-71, by making pen-and-ink changes or by inserting a copy of this AD into the Airworthiness Limitations Section of the maintenance manual or the Instructions for Continued Airworthiness.
(iii) Remove from service any rotating cone assembly, P/N 500N3740-81 and P/N 500N3740-71, that has 10,000 or more hours TIS.
(2) Do not install a rotating cone assembly, P/N 500N3740-81 or P/N 500N3740-71, on any helicopter unless you have complied with the requirements of this AD.
(1) The Manager, Los Angeles Aircraft Certification Office, FAA, may approve AMOCs for this AD. Send your proposal to: Galib Abumeri, Aerospace Engineer, Los Angeles Aircraft Certification Office, Transport Airplane Directorate, FAA, 3960 Paramount Blvd., Lakewood, California 90712, telephone 562-627-5324; 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.
MD Helicopters Inc. Service Bulletin SB500N-046/SB600N-054, dated July 9, 2012, which is not incorporated by reference, contains additional information about the subject of this AD. For service information identified in this AD, contact MD Helicopters, Inc., Attn: Customer Support Division, 4555 E. McDowell Rd., Mail Stop M615, Mesa, AZ 85215-9734; telephone 1-800-388-3378; fax 480-346-6813; or at
Joint Aircraft Service Component (JASC) Code: 5302, Rotorcraft Tail Boom.
Federal Aviation Administration (FAA), Department of Transportation (DOT).
Final rule.
We are superseding Airworthiness Directive (AD) 2002-23-20, for certain Dassault Aviation Model FALCON 900EX and MYSTERE-FALCON 900 airplanes. AD 2002-23-20 required repetitive operational tests of the flap asymmetry detection system to verify proper functioning, and repair if necessary; repetitive replacement of the inboard flap jackscrews with new or reconditioned jackscrews; and repetitive measurement of the screw/nut play of the jackscrews on the inboard and outboard flaps to detect discrepancies, and corrective action if necessary. AD 2002-23-20 also required a revision of the airplane flight manual. Since we issued AD 2002-23-20, the maintenance manual has been revised. This AD requires revising the maintenance or inspection program, as applicable, to include the maintenance tasks and airworthiness limitations
This AD becomes effective February 25, 2016.
The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of February 25, 2016.
You may examine the AD docket on the Internet at
For service information identified in this AD, contact Dassault Falcon Jet Corporation, Teterboro Airport, P.O. Box 2000, South Hackensack, NJ 07606; telephone 201-440-6700; Internet
Tom Rodriguez, Aerospace Engineer, International Branch, ANM-116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057-3356; telephone 425-227-1137; fax 425-227-1149.
We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to supersede AD 2002-23-20, Amendment 39-12964 (67 FR 71098, November 29, 2002); corrected May 4, 2010 (75 FR 23579). AD 2002-23-20 applied to certain Dassault Aviation Model FALCON 900EX and MYSTERE-FALCON 900 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 2013-0053, dated March 4, 2013 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for all MYSTERE-FALCON 900 airplanes. The MCAI states:
The airworthiness limitations and maintenance requirements for the Mystère -Falcon 900 type design are included in Aircraft Maintenance Manual (AMM) chapter 5-40 and are approved by the European Aviation Safety Agency (EASA). EASA issued AD 2008-0221 [
Since that [EASA] AD was issued, Dassault Aviation issued revision 20 of F900 AMM chapter 5-40 which contains new or more restrictive maintenance requirements and/or airworthiness limitations and introduces, among others, the following changes:
The maintenance tasks and airworthiness limitations, as specified in the F900 AMM chapter 5-40, have been identified as mandatory actions for continued airworthiness of the F900 type design. Failure to comply with AMM chapter 5-40 at revision 20 may result in an unsafe condition [reduced structural integrity of the airplane].
For the reasons described above, this [EASA] AD requires the implementation of the maintenance tasks and airworthiness limitations, as specified in the Dassault Aviation F900 AMM chapter 5-40 DGT 113873 at revision 20.
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. We received no comments on the NPRM (80 FR 45902, August 3, 2015) or on the determination of the cost to the public.
We reviewed the available data and determined that air safety and the public interest require adopting this 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 45902, August 3, 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 45902, August 3, 2015).
Dassault Aviation issued Chapter 5-40, Airworthiness Limitations, Revision 20, dated October 2012, of the Dassault Aviation Falcon 900 Maintenance Manual. This service information describes procedures, maintenance tasks, and airworthiness limitations specified in the Airworthiness Limitations section of the AMM. 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 112 airplanes of U.S. registry. We estimate that it will take about 1 work-hour 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 $9,520, or $85 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 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 February 25, 2016.
This AD replaces AD 2002-23-20, Amendment 39-12964 (67 FR 71098, November 29, 2002); corrected May 4, 2010 (75 FR 23579). This AD also affects AD 2010-26-05, Amendment 39-16544 (75 FR 79952, December 21, 2010).
This AD applies to all DASSAULT AVIATION Model MYSTERE-FALCON 900 airplanes, certificated in any category.
Air Transport Association (ATA) of America Code 05, Time Limits/Maintenance Checks.
This AD was prompted by our determination of the need for a revision to the airplane airworthiness limitations to introduce a corrosion prevention control program, among other changes, to the maintenance requirements and airworthiness limitations. We are issuing this AD to prevent reduced structural integrity of the airplane.
Comply with this AD within the compliance times specified, unless already done.
Within 30 days after the effective date of this AD, revise the maintenance or inspection program, as applicable, to incorporate the information specified in Chapter 5-40, Airworthiness Limitations, Revision 20, dated October 2012, of the Dassault Aviation Falcon 900 Maintenance Manual. The initial compliance time for accomplishing the actions specified in Chapter 5-40, Airworthiness Limitations, Revision 20, dated October 2012, of the Dassault Aviation Falcon 900 Maintenance Manual, is within the applicable times specified in the maintenance manual or within 30 days after the effective date of this AD, whichever occurs later, except as provided by paragraphs (g)(1) through (g)(4) of this AD.
(1) The term “LDG” in the “First Inspection” column of any table in the service information means total airplane landings.
(2) The term “FH” in the “First Inspection” column of any table in the service information means total flight hours.
(3) The term “FC” in the “First Inspection” column of any table in the service information means total flight cycles.
(4) The term “M” in the “First Inspection” column of any table in the service information means months.
Accomplishing paragraph (g) of this AD terminates the requirements of paragraph (g)(1) of AD 2010-26-05, Amendment 39-16544 (75 FR 79952, December 21, 2010), for DASSAULT AVIATION Model MYSTERE-FALCON 900 airplanes.
After accomplishing the revision required by paragraph (g) of this AD, no alternative actions (
The following provisions also apply to this AD:
(1)
(2)
Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA Airworthiness Directive 2013-0053, dated March 4, 2013, for related information. This MCAI may be found in the AD docket 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 this AD specifies otherwise.
(i) Chapter 5-40, Airworthiness Limitations, Revision 20, dated October 2012, of the Dassault Aviation Falcon 900 Maintenance Manual.
(ii) Reserved.
(3) For service information identified in this AD, contact Dassault Falcon Jet Corporation, Teterboro Airport, P.O. Box 2000, South Hackensack, NJ 07606; telephone 201-440-6700; Internet
(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), DOT.
Final rule.
This action amends Class E airspace at El Paso, TX. Closure of West Texas Airport has made this action necessary for continued safety and management within the National Airspace System. Additionally, the geographic coordinates for El Paso International Airport and Biggs Army Airfield (AAF), are adjusted correctly noted in the Rule section of this document. This does not affect the boundaries or operating requirements of the airspace.
Effective 0901 UTC, March 31, 2016. The Director of the Federal Register approves this incorporation by reference action under Title 1, Code of Federal Regulations, part 51, subject to the annual revision of FAA Order 7400.9 and publication of conforming amendments.
FAA Order 7400.9Z, Airspace Designations and Reporting Points, and subsequent amendments can be viewed on line at
FAA Order 7400.9, Airspace Designations and Reporting Points is published yearly and effective on September 15.
Rebecca Shelby, Central Service Center, Operations Support Group, Federal Aviation Administration, Southwest Region, 10101 Hillwood Parkway, Fort Worth, TX 76177; telephone: 817-222-5857.
The FAA's authority to issue rules regarding 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. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it removes Class E airspace at West Texas Airport, El Paso, TX.
On June 18, 2015, the FAA published in the
Class E airspace designations are published in paragraph 6005 of FAA Order 7400.9Z, dated August 6, 2015, and effective September 15, 2015, which is incorporated by reference in 14 CFR part 71.1. The Class E airspace designations listed in this document will be published subsequently in the Order.
This document amends FAA Order 7400.9Z, Airspace Designations and Reporting Points, dated August 6, 2015, and effective September 15, 2015. FAA Order 7400.9Z is publicly available as listed in the
This action amends Title 14, Code of Federal Regulations (14 CFR), Part 71 by removing Class E airspace extending upward from 700 feet above the surface at West Texas Airport, El Paso, TX. This action is necessary due to the closure of the airport; therefore controlled airspace is no longer needed. Also, the geographic coordinates for El Paso International Airport, are changed to (lat. 31°48′26″ N., long. 106°22′35″ W.), and the coordinates for Biggs AAF are changed to (lat. 31°50′58″ N., long. 106°22′48″ W.), to coincide with the FAAs aeronautical data base.
The FAA has determined that this regulation only involves an established
The FAA has determined that this action qualifies for categorical exclusion under the National Environmental Policy Act in accordance with FAA Order 1050.1F, “Environmental Impacts: Policies and Procedures” paragraph 5-6.5a. This airspace action is not expected to cause any potentially significant environmental impacts, and no extraordinary circumstances exist that warrant preparation of an environmental assessment.
Airspace, Incorporation by reference, Navigation (Air)
In consideration of the foregoing, the Federal Aviation Administration amends 14 CFR part 71 as follows:
49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.
Class E airspace extending upward from 700 feet above the surface within a 9.1-mile radius of Biggs AAF, and within a 8.4-mile radius of El Paso International Airport, and within 2 miles each side of the 050° bearing from El Paso International Airport extending from the 8.4-mile radius to 13 miles northeast of the airport, and within 1.6 miles each side of the 093° radial of the El Paso VORTAC extending from the 8.4-mile radius to 7.3 miles east of the VORTAC.
Food and Drug Administration, HHS.
Final rule.
The Food and Drug Administration (FDA) is amending the animal drug regulations to reflect that the conditional approval of an application for masitinib mesylate tablets, a new animal drug for a minor use, is no longer in effect.
This rule is effective January 21, 2016.
George K. Haibel, Center for Veterinary Medicine (HFV-6), Food and Drug Administration, 7519 Standish Pl., Rockville, MD 20855, 240-402-5689,
FDA is amending the animal drug regulations to reflect that application 141-308 for conditional approval of KINAVET-CA1 (masitinib mesylate) Tablets, a new animal drug for a minor use sponsored by AB Science, 3 Avenue George V, 75008 Paris, France, is no longer in effect.
Elsewhere in this issue of the
This rule does not meet the definition of “rule” in 5 U.S.C. 804(3)(A) because it is a rule of “particular applicability.” Therefore, it is not subject to the congressional review requirements in 5 U.S.C. 801-808.
Administrative practice and procedure, Animal drugs, Labeling, Reporting and recordkeeping requirements.
Administrative practice and procedure, Animal drugs, Confidential business information, Reporting and recordkeeping requirements.
Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs and redelegated to the Center for Veterinary Medicine, 21 CFR parts 510 and 516 are amended as follows:
21 U.S.C. 321, 331, 351, 352, 353, 360b, 371, 379e.
21 U.S.C. 360ccc-1, 360ccc-2, 371.
Food and Drug Administration, HHS.
Final order.
The Food and Drug Administration (FDA) is classifying the tympanic membrane contact hearing aid into class II (special controls). The special controls that will apply to the device are identified in this order and will be part of the codified language for the tympanic membrane contact hearing aid's classification. The Agency is classifying the device into class II (special controls) in order to provide a reasonable assurance of safety and effectiveness of the device.
This order is effective January 21, 2016. The classification was applicable on September 29, 2015.
Cherish Giusto, Center for Devices and Radiological Health, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 66, Rm. 2432, Silver Spring, MD 20993-0002, 301-796-9679,
In accordance with section 513(f)(1) of the Federal Food, Drug, and Cosmetic Act (the FD&C Act) (21 U.S.C. 360c(f)(1)), devices that were not in commercial distribution before May 28, 1976 (the date of enactment of the Medical Device Amendments of 1976), generally referred to as postamendments devices, are classified automatically by statute into class III without any FDA rulemaking process. These devices remain in class III and require premarket approval unless and until the device is classified or reclassified into class I or II, or FDA issues an order finding the device to be substantially equivalent, in accordance with section 513(i), to a predicate device that does not require premarket approval. The Agency determines whether new devices are substantially equivalent to predicate devices by means of premarket notification procedures in section 510(k) of the FD&C Act (21 U.S.C. 360(k)) and part 807 (21 CFR part 807) of the regulations.
Section 513(f)(2) of the FD&C Act, as amended by section 607 of the Food and Drug Administration Safety and Innovation Act (Pub. L. 112-144), provides two procedures by which a person may request FDA to classify a device under the criteria set forth in section 513(a)(1). Under the first procedure, the person submits a premarket notification under section 510(k) of the FD&C Act for a device that has not previously been classified and, within 30 days of receiving an order classifying the device into class III under section 513(f)(1) of the FD&C Act, the person requests a classification under section 513(f)(2). Under the second procedure, rather than first submitting a premarket notification under section 510(k) of the FD&C Act and then a request for classification under the first procedure, the person determines that there is no legally marketed device upon which to base a determination of substantial equivalence and requests a classification under section 513(f)(2) of the FD&C Act. If the person submits a request to classify the device under this second procedure, FDA may decline to undertake the classification request if FDA identifies a legally marketed device that could provide a reasonable basis for review of substantial equivalence with the device or if FDA determines that the device submitted is not of “low-moderate risk” or that general controls would be inadequate to control the risks and special controls to mitigate the risks cannot be developed.
In response to a request to classify a device under either procedure provided by section 513(f)(2) of the FD&C Act, FDA will classify the device by written order within 120 days. This classification will be the initial classification of the device.
On January 5, 2015, EarLens Corporation submitted a request for classification of the EarLens
In accordance with section 513(f)(2) of the FD&C Act, FDA reviewed the request in order to classify the device under the criteria for classification set forth in section 513(a)(1) of the FD&C Act. FDA classifies devices into class II if general controls by themselves are insufficient to provide reasonable assurance of safety and effectiveness, but there is sufficient information to establish special controls to provide reasonable assurance of the safety and effectiveness of the device for its intended use. After review of the information submitted in the request, FDA determined that the device can be classified into class II with the establishment of special controls. FDA believes these special controls, in addition to general controls, will provide reasonable assurance of the safety and effectiveness of the device.
Therefore, on September 29, 2015, FDA issued an order to the requestor classifying the device into class II. FDA is codifying the classification of the device by adding 21 CFR 874.3315.
Following the effective date of this final classification order, any firm submitting a premarket notification (510(k)) for a tympanic membrane contact hearing aid will need to comply with the special controls named in this final administrative order.
The device is assigned the generic name tympanic membrane contact hearing aid, and it is identified as a prescription device that compensates for impaired hearing. Amplified sound is transmitted by vibrating the tympanic membrane through a transducer that is in direct contact with the tympanic membrane.
FDA has identified the following risks to health associated specifically with this type of device and the measures required to mitigate these risks:
FDA believes that special controls, in combination with the general controls, address these risks to health and provide reasonable assurance of the safety and effectiveness.
Tympanic membrane contact hearing aids are prescription devices restricted to patient use only upon the authorization of a practitioner licensed by law to administer or use the device; see 21 CFR 801.109 (
Section 510(m) of the FD&C Act provides that FDA may exempt a class II device from the premarket notification requirements under section 510(k), if FDA determines that premarket notification is not necessary to provide reasonable assurance of the safety and effectiveness of the device. For this type of device, FDA has determined that premarket notification is necessary to provide reasonable assurance of the safety and effectiveness of the device. Therefore, this device type is not exempt from premarket notification requirements. Persons who intend to market this type of device must submit to FDA a premarket notification, prior to marketing the device, which contains information about the tympanic membrane contact hearing aid they intend to market.
We have determined under 21 CFR 25.34(b) that this action is of a type that does not individually or cumulatively have a significant effect on the human environment. Therefore, neither an environmental assessment nor an environmental impact statement is required.
This final administrative order establishes special controls that refer to previously approved collections of information found in other FDA regulations. These collections of information are subject to review by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The collections of information in part 807, subpart E, regarding premarket notification submissions have been approved under OMB control number 0910-0120, and the collections of information in 21 CFR part 801, regarding labeling have been approved under OMB control number 0910-0485.
The following reference is on display in the Division of Dockets Management (see
Medical devices.
Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs, 21 CFR part 874 is amended as follows:
21 U.S.C. 351, 360, 360c, 360e, 360j, 371.
(a)
(b)
(1) The patient contacting components must be demonstrated to be biocompatible.
(2) Non-clinical performance testing must demonstrate that the device performs as intended under anticipated conditions of use, and must include:
(i) Mechanical integrity testing;
(ii) Electrical and thermal safety testing;
(iii) Software verification, validation, and hazard analysis;
(iv) Reliability testing consistent with expected device life;
(v) Electromagnetic compatibility testing; and
(vi) Validation testing of device output and mechanical force applied to the tympanic membrane in a clinically appropriate model.
(3) Clinical performance testing must characterize any adverse events observed during clinical use, and
(4) Professional training must include the ear impression procedure, correct placement, fitting, monitoring, care, and maintenance of the device.
(5) Labeling must include the following:
(i) A detailed summary of the adverse events and effectiveness outcomes from the clinical performance testing;
(ii) Detailed instructions on how to fit the device to the patient;
(iii) Instructions for periodic cleaning of any reusable components;
(iv) Information related to electromagnetic compatibility; and
(v) Patient labeling that includes:
(A) A patient card that identifies if a patient has been fitted with any non-self- removable components of the device and provides relevant information in cases of emergency;
(B) Information on how to correctly use and maintain the device;
(C) The potential risks and benefits associated with the use of the device; and
(D) Alternative treatments.
Alcohol and Tobacco Tax and Trade Bureau, Treasury.
Final rule; Treasury decision.
The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the approximately 22,820-acre “Los Olivos District” viticultural area in Santa Barbara County, California. The viticultural area is located within the Santa Ynez Valley viticultural area and the larger, multicounty Central Coast viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.
This final rule is effective February 22, 2016.
Karen A. Thornton, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; phone 202-453-1039, ext. 175.
Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe regulations for the labeling of wine, distilled spirits, and malt beverages. The FAA Act provides that these regulations should, among other things, prohibit consumer deception and the use of misleading statements on labels and ensure that labels provide the consumer with adequate information as to the identity and quality of the product. The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act pursuant to section 1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has delegated various authorities through Treasury Department Order 120-01, dated December 10, 2013 (superseding Treasury Department Order 120-01, dated January 24, 2003), to the TTB Administrator to perform the functions and duties in the administration and enforcement of these provisions.
Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to establish definitive viticultural areas and regulate the use of their names as appellations of origin on wine labels and in wine advertisements. Part 9 of the TTB regulations (27 CFR part 9) sets forth standards for the preparation and submission of petitions for the establishment or modification of American viticultural areas (AVAs) and lists the approved AVAs.
Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) defines a viticultural area for American wine as a delimited grape-growing region having distinguishing features, as described in part 9 of the regulations, and a name and a delineated boundary, as established in part 9 of the regulations. These designations allow vintners and consumers to attribute a given quality, reputation, or other characteristic of a wine made from grapes grown in an area to the wine's geographic origin. The establishment of AVAs allows vintners to describe more accurately the origin of their wines to consumers and helps consumers to identify wines they may purchase. Establishment of an AVA is neither an approval nor an endorsement by TTB of the wine produced in that area.
Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) outlines the procedure for proposing an AVA and provides that any interested party may petition TTB to establish a grape-growing region as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes standards for petitions for the establishment or modification of AVAs. Petitions to establish an AVA must include the following:
• Evidence that the area within the proposed AVA boundary is nationally or locally known by the AVA name specified in the petition;
• An explanation of the basis for defining the boundary of the proposed AVA;
• A narrative description of the features of the proposed AVA affecting viticulture, such as climate, geology, soils, physical features, and elevation, that make the proposed AVA distinctive and distinguish it from adjacent areas outside the proposed AVA boundary;
• The appropriate United States Geological Survey (USGS) map(s) showing the location of the proposed AVA, with the boundary of the proposed AVA clearly drawn thereon; and
• A detailed narrative description of the proposed AVA boundary based on USGS map markings.
TTB received a petition from C. Frederic Brander, owner and winemaker of the Brander Vineyard, proposing the establishment of the “Los Olivos District” AVA in Santa Barbara County, California. There are 12 bonded wineries and approximately 47 commercially producing vineyards covering a total of 1,120 acres within the proposed AVA. The proposed Los Olivos District AVA shares its western boundary with the eastern boundary of the Ballard Canyon AVA (27 CFR 9.230) and its eastern boundary with the western boundary of the Happy Canyon of Santa Barbara AVA (27 CR 9.217), but it does not overlap either of these AVAs. It is located within the Santa Ynez Valley viticultural area and the larger, multicounty Central Coast viticultural area.
According to the petition, the distinguishing features of the proposed Los Olivos District AVA include its topography, soils, and climate. The proposed AVA is located on a broad alluvial terrace plain of the Santa Ynez
Over 95 percent of the soils within the proposed Los Olivos District AVA are from the Positas-Ballard-Santa Ynez soil association and are derived from alluvium, including Orcutt sand and terrace deposits. The soils are moderately to well drained gravelly fine sandy loams and clay loams with low to moderate fertility. The soils within the proposed AVA drain quickly enough to reduce the risk of root disease but do not drain so excessively as to require frequent irrigation. Soil nutrient levels within the proposed AVA are adequate to produce healthy vines and fruit without promoting excessive growth. By contrast, the majority of soils in the surrounding regions are not from the Positas-Ballard-Santa Ynez soil association and are generally less fertile and drain faster.
Within the Central Coast AVA, where the proposed Los Olivos District AVA is located, temperatures are affected by cooling marine fog. However, the proposed Los Olivos District AVA is located about 30 miles inland from the Pacific Ocean, so much of the marine fog has diminished by the time it reaches the proposed AVA in the late afternoon. The thin fog within the proposed AVA allows the daytime temperatures to rise higher and the nighttime temperatures to drop lower than in the regions farther to the west, where heavy fog is present throughout the day. The region to the east receives even less fog than the proposed AVA, so daytime temperatures rise higher and nighttime temperatures drop lower. The warm daytime temperatures within the proposed AVA encourage fruit maturation and sugar production, and the cool nighttime temperatures minimize acid loss.
TTB published Notice No. 148 in the
In response to Notice No. 148, TTB received 76 comments, all of which supported the establishment of the Los Olivos District AVA, with many citing to its distinct topography, climate, and soils. The comments did not raise any new issues concerning the proposed AVA. TTB received no comments opposing the establishment of the Los Olivos District AVA. TTB also did not receive any comments in response to its question of whether the proposed Los Olivos District AVA is so distinguishable from the established Santa Ynez Valley AVA or the established Central Coast AVA that the proposed AVA should not be part of either established AVA.
After careful review of the petition and the comment received in response to Notice No. 148, TTB finds that the evidence provided by the petitioner supports the establishment of the Los Olivos District AVA. Accordingly, under the authority of the FAA Act, section 1111(d) of the Homeland Security Act of 2002, and part 4 of the TTB regulations, TTB establishes the “Los Olivos District” AVA in Santa Barbara County, California, effective 30 days from the publication date of this document.
TTB has also determined that the Los Olivos District AVA will remain part of both the established Santa Ynez Valley AVA and the established Central Coast AVA. As discussed in Notice No. 148, the Los Olivos District AVA receives some of the marine breezes and fog that are the primary characteristics of both the Santa Ynez Valley AVA and the Central Coast AVA. However, due to its central location within the Santa Ynez Valley AVA, the Los Olivos District AVA receives less marine air and heavy fog than the western portion of the Santa Ynez Valley AVA, which is closer to the Pacific Ocean, and it receives more cooling breezes and fog than the eastern portion. The topography of the Los Olivos District AVA is also more uniform than that of the Santa Ynez Valley AVA, which has mountains and canyons as well as flatter terrain. Additionally, due to its smaller size, the Los Olivos District AVA is more uniform in its geographical and climatic characteristics than the much larger, multicounty Central Coast AVA.
See the narrative description of the boundary of the AVA in the regulatory text published at the end of this final rule.
The petitioner provided the required maps, and they are listed below in the regulatory text.
Part 4 of the TTB regulations prohibits any label reference on a wine that indicates or implies an origin other than the wine's true place of origin. For a wine to be labeled with an AVA name or with a brand name that includes an AVA name, at least 85 percent of the wine must be derived from grapes grown within the area represented by that name, and the wine must meet the other conditions listed in 27 CFR 4.25(e)(3). If the wine is not eligible for labeling with an AVA name and that name appears in the brand name, then the label is not in compliance and the bottler must change the brand name and obtain approval of a new label. Similarly, if the AVA name appears in another reference on the label in a misleading manner, the bottler would have to obtain approval of a new label. Different rules apply if a wine has a brand name containing an AVA name that was used as a brand name on a label approved before July 7, 1986. See 27 CFR 4.39(i)(2) for details.
With the establishment of this AVA, its name, “Los Olivos District,” is recognized as a name of viticultural significance under § 4.39(i)(3) of the TTB regulations (27 CFR 4.39(i)(3)). The text of the regulation clarifies this point. Consequently, wine bottlers using the name “Los Olivos District” in a brand name, including a trademark, or in another label reference as to the origin of the wine, will have to ensure that the product is eligible to use the AVA name as an appellation of origin. In Notice No. 148, TTB proposed to recognize “Los Olivos,” standing alone, as a term of viticultural significance. However TTB is not designating “Los Olivos,”
The approval of the Los Olivos District AVA does not affect any existing AVA, and this approval does not affect any bottlers using “Central Coast” or “Santa Ynez Valley” as an appellation of origin or in a brand name for wines made from grapes grown within the Central Coast or Santa Ynez Valley AVAs. The establishment of the Los Olivos District AVA allows vintners to use “Los Olivos District,” “Santa Ynez Valley,” and “Central Coast” as appellations of origin for wines made from grapes grown within the Los Olivos District AVA, if the wines meet the eligibility requirements for the appellation.
TTB certifies that this regulation will not have a significant economic impact on a substantial number of small entities. The regulation imposes no new reporting, recordkeeping, or other administrative requirement. Any benefit derived from the use of an AVA name would be the result of a proprietor's efforts and consumer acceptance of wines from that area. Therefore, no regulatory flexibility analysis is required.
It has been determined that this final rule is not a significant regulatory action as defined by Executive Order 12866 of September 30, 1993. Therefore, no regulatory assessment is required.
Karen A. Thornton of the Regulations and Rulings Division drafted this final rule.
Wine.
For the reasons discussed in the preamble, TTB amends title 27, chapter I, part 9, Code of Federal Regulations, as follows:
27 U.S.C. 205.
(a)
(b)
(1) Los Olivos, CA, 1995;
(2) Zaca Creek, Calif., 1959;
(3) Solvang, CA, 1995; and
(4) Santa Ynez, CA, 1995.
(c)
(1) The beginning point is on the Los Olivos map at the intersection of Foxen Canyon Road with California State Road 154 (known locally as San Marcos Pass Road/Chumash Highway), section 23, T7N/R31W.
(2) From the beginning point, proceed southwesterly in a straight line approximately 0.3 mile, crossing onto the Zaca Creek map, to the intersection of Ballard Canyon Road and an unnamed, unimproved road known locally as Los Olivos Meadows Drive, T7N/R31W; then
(3) Proceed south-southeasterly in a straight line approximately 1 mile, crossing onto the Los Olivos map, to a marked, unnamed structure within a circular-shaped 920-foot contour line in the southwest corner of section 26, T7N/R31W; then
(4) Proceed south-southwesterly in a straight line approximately 1.25 miles, crossing onto the Zaca Creek map, to the point marked by the “Ball” 801-foot elevation control point, T6N/R31W; then
(5) Proceed south-southwesterly in a straight line approximately 1.45 miles, crossing onto the Solvang map, to a marked, unnamed 775-foot peak, T6N/R31W; then
(6) Proceed south-southwesterly in a straight line approximately 0.55 mile to a marked communication tower located within the 760-foot contour line, T6N/R31W; then
(7) Proceed south-southeasterly in a straight line approximately 0.6 mile to the intersection of Chalk Hill Road with an unnamed creek descending from Adobe Canyon, northwest of the unnamed road known locally as Fredensborg Canyon Road, T6N/R31W; then
(8) Proceed southwesterly (downstream) along the creek approximately 1 mile to the creek's intersection with the Santa Ynez River, T6N/R31W; then
(9) Proceed easterly (upstream) along the Santa Ynez River approximately 8 miles, crossing onto the Santa Ynez map, to the river's intersection with State Highway 154, T6N/R30W; then
(10) Proceed north-northwest in a straight line approximately 1.2 miles to the marked 924-foot elevation point, T6R/R30W; then
(11) Proceed north-northwest in a straight line 1.2 miles to the “Y” in an unimproved road 0.1 mile south of the 800-foot contour line, west of Happy Canyon Road, T6R/R30W; then
(12) Proceed north-northwest in a straight line for 0.5 mile, crossing onto the Los Olivos map, and continuing approximately 2.3 miles to the third intersection of the line with the 1,000-foot contour line northwest of BM 812, T7N/R30W; then
(13) Proceed westerly along the meandering 1,000-foot contour line to the contour line's intersection with an unnamed, unimproved road, an unnamed light-duty road, and the northern boundary line of section 23, T7N/R31W; then
(14) Proceed northerly, then westerly, along the unnamed, unimproved road to Figueroa Mountain Road, near the marked 895-foot elevation, T7N/R31W; then
(15) Proceed north on Figueroa Mountain Road approximately 400 feet to the 920-foot contour line, T7N/R31W; then
(16) Proceed initially south, then northwesterly along the meandering 920-foot contour line, crossing onto the Zaca Creek map, to Foxen Canyon Road, T7N/R31W; then
(17) Proceed southeasterly on Foxen Canyon Road approximately 1.7 miles, crossing onto the Los Olivos map, returning to the beginning point.
Office of Foreign Assets Control, Treasury.
Final rule.
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is amending the Iranian Transactions and Sanctions Regulations (ITSR) to implement certain United States Government (USG) commitments under the Joint Comprehensive Plan of Action (JCPOA) reached on July 14, 2015 between the P5+1 (China, France, Germany, Russia, the United Kingdom, and the United States), the European Union (EU), and Iran. In particular, OFAC is adding to the ITSR general licenses authorizing the importation into the United States of, and dealings in, certain Iranian-origin foodstuffs and carpets and related transactions to implement the USG commitment set out in section 5.1.3 of Annex II and section 17.5 of Annex V of the JCPOA. In addition, to reflect the USG's implementation of its commitment set out in section 4 of Annex II and section 17.4 of Annex V of the JCPOA to terminate Executive Order 13622 of July 30, 2012, OFAC is removing regulatory provisions that implemented the blocking sanctions in sections 5 and 6 of Executive Order 13622. OFAC is also making certain technical and conforming changes to its regulations to reflect the implementation of the USG commitment set out in section 4.8.1 of Annex II and section 17.3 of Annex V of the JCPOA to remove the individuals and entities set forth in Attachment 3 to Annex II of the JCPOA from OFAC's Specially Designated Nationals and Blocked Persons List, the Foreign Sanctions Evaders List, and/or the Non-SDN Iran Sanctions Act List, as appropriate, on Implementation Day of the JCPOA.
The Department of the Treasury's Office of Foreign Assets Control: Assistant Director for Licensing, tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.: 202-622-4855, Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury's Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410.
This document and additional information concerning OFAC are available from OFAC's Web site (
On July 14, 2015, the P5+1 (China, France, Germany, Russia, the United Kingdom, and the United States), the European Union (EU), and Iran reached a Joint Comprehensive Plan of Action (JCPOA) to ensure that Iran's nuclear program is exclusively peaceful. The JCPOA provides that the United States Government (USG) will undertake the sanctions-related commitments described in sections 17.1 to 17.4 of Annex V of the JCPOA once the International Atomic Energy Agency (IAEA) has verified that Iran has implemented key nuclear-related commitments described in the JCPOA. The date for this sanctions lifting is referred to as “Implementation Day” in the JCPOA. In addition, the JCPOA provides that, on Implementation Day, the USG will license certain activities involving Iran as described in section 5 of Annex II and section 17.5 of Annex V of the JCPOA. OFAC is now amending the Iranian Transactions and Sanctions Regulations, 31 CFR part 560 (ITSR), to implement the USG's commitment pursuant to the JCPOA to license the importation into the United States of Iranian-origin carpets and foodstuffs, including pistachios and caviar, and to make certain technical and conforming changes to reflect the implementation of other USG JCPOA commitments on Implementation Day, as set forth below.
To implement the USG commitment set out in section 5.1.3 of Annex II and section 17.5 of Annex V of the JCPOA to license the importation into the United States of Iranian-origin carpets and foodstuffs, including pistachios and caviar, OFAC is adding § 560.534 to the ITSR to authorize by general license the importation into the United States of, and dealings in, certain Iranian-origin foodstuffs and carpets from Iran or a third country. OFAC's publication of this general license as an amendment to the ITSR fulfills the requirements of section 103(d)(2)(A) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, as amended, (Pub. L. 111-195) (22 U.S.C. 8501-8551) (CISADA). In addition, to fulfill the requirements of section 103(d)(2)(B) of CISADA, the Secretary of State is submitting to the appropriate congressional committees a certification in writing that it is in the national interest of the United States to provide an exception to the prohibition on the importation of Iranian-origin goods to the extent required to implement the sanctions commitment described in section 5.1.3 of Annex II of the JCPOA and a report describing the reasons for this exception.
Section 560.534(a) authorizes the importation into the United States of Iranian-origin foodstuffs intended for human consumption that are classified under chapters 2-23 of the Harmonized Tariff Schedule of the United States (HTS). Items that are classified in chapters 2-23 of the HTS that are not foodstuffs intended for human consumption are not authorized for importation into the United States by this section. This section also authorizes the importation into the United States of Iranian-origin carpets and other textile floor coverings and carpets used as wall hangings that are classified under chapter 57 or heading 9706.00.0060 of the HTS. Items that are classified under heading 9706.00.0060 (“Antiques of an age exceeding one hundred years/Other”) that are not carpets and other textile wall coverings or carpets used as wall hangings are not authorized for importation into the United States by this section.
Section 560.534(b) authorizes U.S. persons, wherever located, to engage in transactions or dealings in or related to such Iranian-origin foodstuffs and carpets, provided that such transactions or dealings do not involve or relate to goods, technology, or services for exportation, reexportation, sale, or supply, directly or indirectly, to Iran, the Government of Iran, an Iranian financial institution, or any other person whose property and interests in property are blocked pursuant to § 560.211 of the ITSR, other than services described in § 560.405 (“Transactions ordinarily incident to a licensed transaction authorized”) and transfers of funds described in § 560.516 (“Transfers of funds involving Iran”). Section 560.534(c) clarifies that § 560.534(a)-(b) does not authorize the importation into the United States of goods that are under seizure or detention by the Department of Homeland Security, or of goods for which forfeiture proceedings have commenced or of goods that have been forfeited to the U.S. Government.
Transactions ordinarily incident to the transactions authorized in § 560.534 and necessary to give effect thereto also are authorized as set forth in § 560.405. OFAC is amending § 560.405 by inserting new paragraph (f), which clarifies that the scope of authorized incidental transactions does not include letter of credit services relating to transactions authorized in § 560.534. Those letter of credit services that are authorized are set forth separately in paragraphs (a) and (b) of § 560.535, which OFAC is also adding to the ITSR. Please see §§ 560.405(b) and 560.516 regarding transfers of funds in connection with licensed activities. Brokering services relating to transactions authorized by this final rule also are authorized. See § 560.535(c).
On July 30, 2012, the President, invoking the authority of,
Pursuant to its Implementation Day commitment set out in section 4 of Annex II and section 17.4 of Annex V of the JCPOA, the United States Government has revoked E.O. 13622. Accordingly, OFAC is amending § 560.211 of the ITSR by removing paragraph (c)(2) and the Note to paragraph (c)(2), which implemented sections 5 and 6 of E.O. 13622, respectively.
OFAC is also making certain technical and conforming changes to 31 CFR chapter V to reflect the implementation of the USG commitment set out in section 4.8.1 of Annex II and section 17.3 of Annex V of the JCPOA. Pursuant to that commitment, on Implementation Day, OFAC is removing individuals and entities identified in Attachment 3 to Annex II of the JCPOA from the Specially Designated Nationals and Blocked Persons List (SDN List), the Foreign Sanctions Evaders List, and/or the Non-SDN Iran Sanctions Act List, as appropriate. The individuals and entities being removed from the SDN List include persons that OFAC has previously identified as blocked pursuant to E.O. 13599 of February 5, 2012 (“Blocking Property of the Government Iran and Iranian Financial Institutions”) because they meet the definition of the terms “Government of Iran” or “Iranian financial institution.” These individuals and entities are marked with an asterisk in Attachment 3 to Annex II of the JCPOA. Non-U.S. persons will no longer be subject to secondary sanctions, including under relevant provisions of the Iran Freedom and Counter-Proliferation Act of 2012 and other applicable authorities, for engaging in transactions or activities with these individuals and entities, provided that the transactions do not include conduct that remains sanctionable or individuals or entities that remain on the SDN List. However, these individuals and entities being removed from the SDN List remain persons whose property and interests in property that are in the U.S., or that are or come within the possession or control of any U.S. person, are blocked pursuant to E.O. 13599. While OFAC is removing these persons from the SDN List on Implementation Day, they will now be included on a “List of Persons Identified as Blocked Solely Pursuant to Executive Order 13599” (E.O. 13599 List), which OFAC is making available on its Web site:
Because the amendment of the ITSR involves a foreign affairs function, the provisions of Executive Order 12866 and the Administrative Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity for public participation, and delay in effective date are inapplicable. Because no notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.
The collections of information related to the ITSR are contained in 31 CFR part 501 (the “Reporting, Procedures and Penalties Regulations”). Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of information have been approved by the Office of Management and Budget under control number 1505-0164. 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 control number.
Administrative practice and procedure, Banks, Banking, Carpet, Foodstuffs, Iran, Letters of credit.
For the reasons set forth in the preamble, the Department of the Treasury's Office of Foreign Assets Control amends 31 CFR chapter V as follows:
3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Public Law 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 CFR, 2012 Comp., p. 215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp., p. 314.
The names of persons identified by the Office of Foreign Assets Control (OFAC) as blocked solely pursuant to Executive Order 13599 of February 5, 2012 (“Blocking Property of the Government Iran and Iranian Financial Institutions”) (E.O. 13599) because they meet the definition of the terms “Government of Iran” or “Iranian financial institution,” whose property and interests in property therefore are blocked pursuant to this section, are published in the
The International Emergency Economic Powers Act (50 U.S.C. 1701-1706), in section 203 (50 U.S.C. 1702), authorizes the blocking of property and interests in property of a person during the pendency of an investigation. The names of persons whose property and interests in property are blocked pending investigation pursuant to this section also are published in the
The names of persons that the Office of Foreign Assets Control (OFAC) has determined fall within this definition are published in the
The names of persons that the Office of Foreign Assets Control (OFAC) has determined fall within this definition are published in the
Section 501.807 of this chapter describes the procedures to be followed by persons seeking administrative reconsideration of OFAC's determination that they fall within the definition of the term
(f) Letter of credit services relating to transactions authorized in § 560.534. See § 560.535(a).
(a) The importation into the United States, from Iran or a third country, of the following goods of Iranian origin is authorized:
(1) Foodstuffs intended for human consumption that are classified under chapters 2-23 of the Harmonized Tariff Schedule of the United States;
(2) Carpets and other textile floor coverings and carpets used as wall hangings that are classified under chapter 57 or heading 9706.00.0060 of the Harmonized Tariff Schedule of the United States.
(b) United States persons, wherever located, are authorized to engage in transactions or dealings in or related to the categories of Iranian-origin goods described in paragraph (a) of this section, provided that the transaction or dealing does not involve or relate to goods, technology, or services for exportation, reexportation, sale, or supply, directly or indirectly, to Iran, the Government of Iran, an Iranian financial institution, or any other person whose property and interests in property are blocked pursuant to § 560.211, other than services described in § 560.405 (“Transactions ordinarily incident to a licensed transaction authorized”) and transfers of funds described in § 560.516 (“Transfers of funds involving Iran”).
(c) This general license does not authorize the importation into the United States of goods that are under seizure or detention by the Department of Homeland Security, as of January 21, 2016, pursuant to Customs regulations or other applicable provisions of law, until any applicable penalties, charges, duties, or other conditions are satisfied. This general license does not authorize the importation into the United States of goods for which forfeiture proceedings have commenced or of goods that have been forfeited to the U.S. Government, other than through U.S. Customs and Border Protection disposition, including by selling at auction.
(d)
(a)
(b)
(c)
(d)
See §§ 560.304 and 560.313 for information relating to individuals and entities that are included within the definition of the term
3 U.S.C. 301; 8 U.S.C. 1182, 1189; 18 U.S.C. 2339 B; 21 U.S.C. 1901-1908; 22 U.S.C. 287 c; 31 U.S.C. 321(b); 50 U.S.C. App. 1-44; Public Law 110-286, 122 Stat. 2632 (50 U.S.C. 1701 note); Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); Public Law 112-208, 126 Stat. 1502; Public Law 113-278, 128 Stat. 3011 (50 U.S.C. 1701 note).
8. The SDN List includes the names of persons determined to be the Government of Iran, an Iranian financial institution, or any other person whose property and interests in property are blocked pursuant to § 560.211 of the Iranian Transactions and Sanctions Regulations, 31 CFR part 560 (ITSR), only when the property and interests in property of such persons are also blocked pursuant to one or more other parts of this chapter. The SDN List entries for such persons include the identifier “[IRAN]” as well as the relevant identifier(s) for the other sanctions program(s) pursuant to which the persons' property and interests in property are blocked. The names of persons identified as blocked solely pursuant to Executive Order 13599 of February 5, 2012 (“Blocking Property of the Government Iran and Iranian Financial Institutions”) (E.O. 13599) and § 560.211 of the ITSR because they meet the definition of the terms
Coast Guard, DHS.
Notice of enforcement of regulation.
The Coast Guard will enforce a security zone associated with the North American International Auto
The security zone regulation described in 33 CFR 165.915(a)(3) is effective without actual notice from January 21, 2016 through 11:59 p.m. on January 24, 2016. For purposes of enforcement, actual notice will be used from 8 a.m. on January 11, 2016 through January 21, 2016.
If you have questions on this document, call or email LCDR Nicholas Seniuk, Prevention, U.S. Coast Guard Sector Detroit, 110 Mount Elliot Ave., Detroit, MI 48207; telephone (313) 568-9508; email
The Coast Guard will enforce the
All persons and vessels shall comply with the instructions of the Captain of the Port Detroit or his designated on-scene representative, who may be contacted via VHF Channel 16.
Under the provisions of 33 CFR 165.33, no person or vessel may enter or remain in this security zone without the permission of the Captain of the Port Detroit. Each person and vessel in this security zone shall obey any direction or order of the Captain of the Port Detroit. The Captain of the Port Detroit may take possession and control of any vessel in this security zone. The Captain of the Port Detroit may remove any person, vessel, article, or thing from this security zone. No person may board, or take or place any article or thing on board any vessel in this security zone without the permission of the Captain of Port Detroit. No person may take or place any article or thing upon any waterfront facility in this security zone without the permission of the Captain of the Port Detroit.
Vessels that wish to transit through this security zone shall request permission from the Captain of the Port Detroit or his designated representative. Requests must be made in advance and approved by the Captain of Port before transits will be authorized. Approvals may be granted on a case by case basis. The Captain of the Port may be contacted via U.S. Coast Guard Sector Detroit on channel 16, VHF-FM. The Coast Guard will give notice to the public via Local Notice to Mariners and VHF radio broadcasts that the regulation is in effect.
This document is issued under authority of 33 CFR 165.915 and 5 U.S.C. 552(a). If the Captain of the Port determines that this security zone need not be enforced for the full duration stated in this document; he may suspend such enforcement and notify the public of the suspension via a Broadcast Notice to Mariners.
Environmental Protection Agency (EPA).
Final rule.
The Environmental Protection Agency (EPA) is finalizing approval of state implementation plan (SIP) submissions from Wisconsin regarding the state board requirements under section 128 of the Clean Air Act (CAA). EPA is also approving elements of SIP submissions from Wisconsin regarding the infrastructure requirements of section 110, relating to state boards for the 1997 ozone, 1997 fine particulate (PM
This final rule is effective on February 22, 2016.
EPA has established a docket for this action under Docket ID No. EPA-R05-OAR-2015-0464. All documents in the docket are listed on the
Eric Svingen, Environmental Engineer, Attainment Planning and Maintenance Section, Air Programs Branch (AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 353-4489,
Throughout this document whenever “we,” “us,” or “our” is used, we mean EPA. This supplementary information section is arranged as follows:
This rulemaking addresses submissions from the Wisconsin Department of Natural Resources (WDNR) dated July 2, 2015. These
The requirement for states to make infrastructure SIP submissions arises out of CAA section 110(a)(1). Pursuant to section 110(a)(1), states must make SIP submissions “within 3 years (or such shorter period as the Administrator may prescribe) after the promulgation of a national primary ambient air quality standard (or any revision thereof),” and these SIP submissions are to provide for the “implementation, maintenance, and enforcement” of such NAAQS. The statute directly imposes on states the duty to make these SIP submissions, and the requirement to make the submissions is not conditioned upon EPA's taking any action other than promulgating a new or revised NAAQS. Section 110(a)(2) includes a list of specific elements that “[e]ach such plan” submission must address.
EPA has historically referred to these SIP submissions made for the purpose of satisfying the requirements of CAA section 110(a)(1) and (2) as “infrastructure SIP” submissions. Although the term “infrastructure SIP” does not appear in the CAA, EPA uses the term to distinguish this particular type of SIP submission from submissions that are intended to satisfy other SIP requirements under the CAA. This specific rulemaking is only taking action on the CAA 110(a)(2)(E)(ii) element of these infrastructure SIP requirements, which is the only infrastructure SIP element addressed in WDNR's submittal dated July 2, 2015.
EPA's guidance for these submissions is highlighted in an October 2, 2007, guidance document entitled “Guidance on SIP Elements Required Under Sections 110(a)(1) and (2) for the 1997 8-hour Ozone and PM
Pursuant to section 110(a), states must provide reasonable notice and opportunity for public hearing for all infrastructure SIP submissions. WDNR provided notice of a public comment period on May 9, 2015, held a public hearing at WDNR State Headquarters on June 9, 2015, and closed the public comment period on June 11, 2015. No comments were received.
Wisconsin provided a detailed synopsis of how various components of its SIP meet each of the applicable requirements in section 128 and 110(a)(2)(E)(ii) for the 1997 ozone, 1997 PM
On September 11, 2015 (80 FR 54744), EPA published a proposed rule that would approve these submissions into Wisconsin's SIP. This proposed rule contained a detailed evaluation of how Wisconsin's submissions satisfy certain requirements under CAA sections 110 and 128. No comments were received. Therefore, EPA is finalizing this rule as proposed.
EPA is taking final action to incorporate
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 Wisconsin 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 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 approves state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this action:
• Is not a significant regulatory action subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) 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).
In addition, 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
Under section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by March 21, 2016. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this action for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. (See section 307(b)(2).)
Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides.
40 CFR part 52 is amended as follows:
42 U.S.C. 7401
(c) * * *
(134) On July 2, 2015, the Wisconsin Department of Natural Resources submitted a request to revise the State Implementation Plan to satisfy the state board requirements under section 128 of the Clean Air Act.
(i) Incorporation by reference.
(A) Wisconsin Statutes, section 15.05 Secretaries, as revised by 2013 Wisconsin Act 20, enacted on June 30, 2013. (A copy of 2013 Wisconsin Act 20 is attached to section 15.05 to verify the enactment date.)
(B) Wisconsin Statutes, section 19.45(2), as revised by 1989 Wisconsin Act 338, enacted on April 27, 1990. (A copy of 1989 Wisconsin Act 338 is attached to section 19.45(2) to verify the enactment date.)
(C) Wisconsin Statutes, section 19.46 Conflict of interest prohibited; exception, as revised by 2007 Wisconsin Act 1, enacted on February 2, 2007. (A copy of 2007 Wisconsin Act 1 is attached to section 19.46 to verify the enactment date.)
(j) Approval—In a July 2, 2015, submission, Wisconsin certified that the state has satisfied the infrastructure SIP requirements of section 110(a)(2)(E)(ii) for the 1997 ozone, 1997 PM
Coast Guard, DHS.
Direct final rule; confirmation of effective date.
On October 26, 2015, the Coast Guard published a direct final rule, which notified the public of our intent to amend merchant mariner manning regulations to align them with statutory changes made by the Howard Coble Coast Guard and Maritime Transportation Act of 2014. The Act allows oilers serving on certain offshore support vessels, towing vessels, and barges to be divided into at least two watches. The change would increase the sea service credit affected mariners are permitted to earn for each 12-hour period of work from one day to one and a half days. The rule will go into effect as scheduled.
The effective date of the direct final rule published at 80 FR 65165 on October 26, 2015 is confirmed as January 25, 2016.
Mr. Davis Breyer, Marine Personnel Qualifications Division (CG-OES-1), Coast Guard; email
We received two comments in response to the direct final rule (DFR). The two comments we received were either not adverse or separable from and not within the scope of the rulemaking.
One commenter supported the rule and thanked the Coast Guard for its prompt action. Another commenter titled its comment as “adverse” and requested that the Coast Guard withdraw the DFR. The commenter agreed that “the Coast Guard is obliged to align Coast Guard regulations with the statutes” and did not oppose the changes to the regulation. The commenter argued, rather, that the Coast Guard should delay the rulemaking indefinitely and seek new legislation from Congress that limits every merchant mariner to serving a uniform maximum of 12 hours in a 24 hour period, except in an emergency.
The DFR conforms Coast Guard regulations to existing law, under which affected mariners may earn one and a half days sea service credit for each 12-hour period of work. The commenter did not oppose granting such mariners such credit for time worked. Instead, the commenter took issue with the absence of
The DFR stated that “we may adopt, as final, those parts of this rule on which no adverse comment was received.” 80 FR 65166. The commenter's requests are separable from the rule and raises issues well outside the scope of the rule. The rule will therefore go into effect as scheduled.
National Telecommunications and Information Administration.
Final rule.
The National Telecommunications and Information Administration (NTIA) amends its regulations with respect to the duties of the Technical Panel to include the new responsibility for review and approval of plans submitted by federal entities that request funding from the Spectrum Relocation Fund for the purposes set forth in Section 1005(a)(2) of the Spectrum Pipeline Act of 2015.
The final rule becomes effective on January 21, 2016.
Milton Brown, NTIA, (202) 482-1816 or
National Telecommunications and Information Administration Organization Act, 47 U.S.C. 901
The Commercial Spectrum Enhancement Act of 2004 (CSEA) established the Spectrum Relocation Fund from which agencies could recover relocation costs in order to facilitate clearing of the eligible frequency bands auctioned by the Federal Communications Commission.
The Spectrum Pipeline Act of 2015 modified the CSEA by, among other things, appropriating $500,000,000 from the Spectrum Relocation Fund on the date of enactment and not more than 10 percent of future deposits for the Office of Management and Budget (OMB) to make payments to federal entities for research and development, engineering studies, economic analyses, or other planning activities intended to improve the efficiency and effectiveness of the spectrum use.
NTIA is amending its regulations to conform to provisions of the recently enacted Spectrum Pipeline Act. Accordingly, 47 CFR part 301 is amended as discussed below.
The Spectrum Pipeline Act provides that a federal entity that seeks payments pursuant to its provisions must submit a plan (hereafter referred to as a “Spectrum Pipeline Plan”) to the Technical Panel. Such a plan must describe the activities the federal entity will conduct with the funds to improve the efficiency and effectiveness of the spectrum use of federal entities.
The Spectrum Pipeline Act requires the Technical Panel to approve or disapprove a Spectrum Pipeline Plan not later than 120 days after the federal entity submits the plan.
The amendments to 47 CFR part 301 in this Final Rule relate solely to the internal management of the agency and, as such, are not subject to the requirements of the Administrative Procedure Act, 5 U.S.C. 553(a)(2). These amendments do not affect the rights or obligations of the public, but relate solely to the obligations of federal entities seeking payments from OMB from the Spectrum Relocation Fund.
This regulation has been determined not to be significant for purposes of Executive Order 12866.
It has been determined that this final rule is not major under 5 U.S.C. 801
The Regulatory Flexibility Act (5 U.S.C. 601
This rule does not contain policies having federalism implications requiring preparation of a Federalism Summary Impact.
This document does not contain new collection-of-information requirements subject to the Paperwork Reduction Act.
Administrative practice and procedure, Communications Common Carriers, Communications equipment, Defense communications, Government employees, Satellites, Radio, Telecommunications.
• For the reasons set forth in the preamble, NTIA amends 47 CFR part 301 as follows:
National Telecommunications and Information Administration Organization Act, 47 U.S.C. 901
The purpose of this part is to set forth procedures for the Technical Panel and Dispute Resolution Board as required pursuant to the National Telecommunications and Information Administration Organization Act (hereinafter “NTIA Organization Act”), as amended (47 U.S.C. 923(g)-(l) and 928).
The revisions and addition read as follows:
(1) Operates a U.S. Government station; and
(2) That incurs relocation costs or sharing costs because of planning for an auction of eligible spectrum frequencies or the reallocation of eligible spectrum frequencies from Federal use to exclusive non-Federal use or to shared use.
Submissions to the Technical Panel and the Dispute Resolution Board under this section shall be made to the Office of the Assistant Secretary, National Telecommunications and Information Administration, Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230.
(a)
(b)
(1) Systems that have increased functionality or that increase the ability of a Federal Entity to accommodate spectrum sharing with non-Federal entities;
(2) Systems that consolidate functions or services that have been provided using separate systems; or
(3) Non-spectrum technology or systems.
(c)
(2)
(i) The activities that the Federal Entity will conduct with the payment will:
(A) Increase the probability of relocation from or sharing of Federal spectrum;
(B) Facilitate an auction intended to occur not later than 8 years after the payment; and
(C) Increase the net expected auction proceeds in an amount not less than the time value of the amount of the payment.
(ii) The transfer will leave sufficient amounts in the Spectrum Relocation Fund for the other purposes of such fund.
National Aeronautics and Space Administration.
Technical amendments.
NASA is making technical amendments to the NASA FAR Supplement (NFS) to provide needed editorial changes.
Manuel Quinones, NASA, Office of Procurement, Contract and Grant Policy Division, via email at
As part NASA's retrospective review of existing regulations pursuant to section 6 of Executive Order 13563, Improving Regulation and Regulatory Review, NASA conducted a review of its regulations and published a final rule in the
• Section 1852.214-72 is revised to correct the clause prescription from 1814.201-670(b) to 1814.201-670(c).
• Section 1852.232-70 is revised to correct the clause date from “AUG 2003” to “APR 2015.”
• Section 1852.246-72 is revised to correct the clause date from “AUG 2003” to “APR 2015.”
Government procurement.
Accordingly, 48 CFR part 1852 is amended as follows:
51 U.S.C. 20113(a) and 48 CFR chapter 1.
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Temporary rule; inseason adjustment.
This action decreases the possession and trip limit for Southern New England/Mid-Atlantic yellowtail flounder for Northeast multispecies common pool vessels for the remainder of the 2015 fishing year. The most recent catch data indicates that the common pool is expected to reach its annual quota for this stock before the end of January. Decreasing the trip limit is intended to prevent the common pool fishery from exceeding its allocation for the stock in the 2015 fishing year, and from triggering an area closure for portions of Southern New England/Mid-Atlantic.
The possession and trip limit decrease is effective January 15, 2016, through April 30, 2016.
Liz Sullivan, Fishery Management Specialist, 978-282-8493.
The regulations at § 648.86(o) authorize the Regional Administrator to adjust the possession and trip limits for common pool vessels in order to help prevent the overharvest or underharvest of the common pool quotas.
Based on information and data reported through January 5, 2016, the common pool fishery has caught approximately 76 percent of its annual quota for Southern New England/Mid-Atlantic (SNE/MA) yellowtail flounder. At the current rate of fishing, the common pool fishery is projected to reach its annual quota by January 26, 2016. Any overage of the annual quota will be deducted from the next fishing year's annual quota. Additionally, we project that 90 percent of the common pool's Trimester 3 Total Allowable Catch (TAC) for SNE/MA yellowtail flounder will be reached by January 24, 2016. If the common pool reaches 90 percent of the Trimester TAC, we are required by regulations at § 648.82(n)(2)(ii) to close the SNE/MA Yellowtail Flounder Trimester TAC Area (defined at § 648.82(n)(2)(ii)(F)) to all common pool vessels fishing on groundfish trips with trawl and sink gillnet gear.
The current possession and trip limit of SNE/MA yellowtail flounder is 2,000 lb (907 kg) per day-at-sea (DAS), and up to 6,000 lb (2,722 kg) per trip for common pool vessels. To help prevent the common pool fishery from exceeding its SNE/MA yellowtail flounder allocation for the 2015 fishing year, and to help prevent the common pool from triggering a closure of the SNE/MA Yellowtail Flounder Trimester TAC Area for the remainder of the fishing year by reaching 90 percent of the Trimester 3 TAC, effective January 15, 2016, the possession and trip limit of SNE/MA yellowtail flounder for all common pool vessels is decreased to 50 lb (22.7 kg) per trip.
Common pool groundfish vessels that have declared their trip through the vessel monitoring system (VMS) or interactive voice response (IVR) system, and crossed the VMS demarcation line prior to January 15, 2016, are not subject to the new possession and trip limit for that trip.
Weekly quota monitoring reports for the common pool fishery can be found on our Web site at:
This action is required by 50 CFR part 648 and is exempt from review under Executive Order 12866.
The Assistant Administrator for Fisheries, NOAA, finds good cause pursuant to 5 U.S.C. 553(b)(B) and 5 U.S.C. 553(d)(3) to waive prior notice and the opportunity for public comment
The regulations at § 648.86(o) authorize the Regional Administrator to adjust the Northeast multispecies possession and trip limits for common pool vessels in order to help prevent the overharvest or underharvest of the pertinent common pool quotas. The catch data used as the basis for this action only recently became available. The available analysis indicates that if the SNE/MA yellowtail flounder possession and trip limit are not reduced immediately, the common pool fishery will likely exceed its 2015 fishing year allocation for this stock by January 26, 2016. Analysis also indicates that if the possession and trip limit are not reduced immediately, the common pool fishery will likely reach 90 percent of its Trimester 3 TAC by January 24, 2016, triggering a closure of the SNE/MA Yellowtail Flounder Trimester TAC Area. This action reduces the probability of the common pool fishery exceeding its allocation for SNE/MA yellowtail flounder. Any overages of the common pool quota for this stock would undermine conservation objectives and trigger the implementation of accountability measures that would have negative economic impacts on the common pool vessels. The time necessary to provide for prior notice and comment, and a 30-day delay in effectiveness, would prevent NMFS from implementing the necessary possession and trip limit adjustment in a timely manner, which could undermine conservation objectives of the Northeast Multispecies Fishery Management Plan, and cause negative economic impacts to the common pool fishery.
16 U.S.C. 1801
Grain Inspection, Packers and Stockyards Administration, USDA.
Request for information.
The United States Department of Agriculture's (USDA) Grain Inspection, Packers and Stockyards Administration (GIPSA) is seeking comments from the public regarding the United States (U.S.) Standards for Flaxseed under the United States Grain Standards Act (USGSA). To ensure that standards and official grading practices remain relevant, GIPSA invites interested parties to comment on whether the current flaxseed standards and grading practices need to be changed.
We will consider comments we receive by March 21, 2016.
You may submit written or electronic comments on this request for information to:
•
•
•
All comments will become a matter of public record and should be identified as “U.S. Flaxseed Standards request for information comments,” making reference to the date and page number of this issue of the
Electronic submissions should avoid the use of special characters, avoid any form of encryption, and be free of any defects or viruses, since these may prevent GIPSA from being able to read and understand, and thus consider your comment.
GIPSA will post a transcript or report summarizing each substantive oral comment that we receive. This would include comments made at any public meetings hosted by GIPSA during the comment period, unless GIPSA publically announces otherwise.
All comments will also be available for public inspection at the above address during regular business hours (7 CFR 1.27(b)). Please call the GIPSA Management and Budget Services support staff (202) 720-8479 for an appointment to view the comments.
Robert Dorman at GIPSA, USDA, 10383 N. Ambassador Drive, Kansas City, MO 64153; Telephone (816) 659-8411; Fax Number (816) 872-1258; email
Under the authority of the USGSA (7 U.S.C. 76), GIPSA establishes standards for flaxseed and other grains regarding kind, class, quality and condition. The flaxseed standards, established by USDA on August 1, 1934, were last revised in 1987 and appear in the USGSA regulations at 7 CFR 810.601 through 810.604. The standards facilitate flaxseed marketing and define U.S. flaxseed quality in the domestic and global marketplace. The standards define commonly used industry terms; contain basic principles governing the application of standards, such as the type of sample used for a particular quality analysis; the basis of determination; and specify grades and grade requirements. Official procedures for determining grading factors are provided in GIPSA's Grain Inspection Handbook, Book II, Chapter 5, “Flaxseed” which also includes standardized procedures for additional quality attributes not used to determine grade, such as dockage and moisture content. Together, the grading standards and testing procedures allow buyers and sellers to communicate quality requirements, compare flaxseed quality using equivalent forms of measurement and assist in price discovery.
GIPSA's grading and inspection services are provided through a network of federal, state, and private laboratories that conduct tests to determine the quality and condition of flaxseed. These tests are conducted in accordance with applicable standards using approved methodologies and can be applied at any point in the marketing chain. Furthermore, the tests yield rapid, reliable and consistent results. In addition, GIPSA-issued certificates describing the quality and condition of graded flaxseed are accepted as
In order for U.S. standards and grading procedures for flaxseed to remain relevant, GIPSA is issuing this request for information to invite interested parties to submit comments, ideas, and suggestions on all aspects of the U.S. flaxseed standards and inspection procedures.
7 U.S.C. 71-87K.
Grain Inspection, Packers and Stockyards Administration, USDA.
Request for information.
The United States Department of Agriculture's (USDA) Grain Inspection, Packers, and Stockyards
We will consider comments we receive by April 20, 2016.
You may submit written or electronic comments on this proposed rule to:
•
•
•
All comments will become a matter of public record and should be identified as “U.S. Triticale Standards request for information comments,” making reference to the date and page number of this issue of the
Electronic submissions should avoid the use of special characters, avoid any form of encryption, and be free of any defects or viruses, since these may prevent GIPSA from being able to read and understand, and thus consider your comment.
GIPSA will post a transcript or report summarizing each substantive oral comment that we receive. This would include comments made at any public meetings hosted by GIPSA during the comment period, unless GIPSA publically announces otherwise.
All comments will also be available for public inspection at the above address during regular business hours (7 CFR 1.27(b)). Please call the GIPSA Management and Budget Services support staff (202) 720-8479 for an appointment to view the comments.
Robert Dorman at GIPSA, USDA, 10383 N. Ambassador Drive, Kansas City, MO 64153; Telephone (816) 659-8411; Fax Number (816) 872-1258; email
Under the authority of the USGSA (7 U.S.C. 76), GIPSA establishes standards for triticale and other grains regarding kind, class, quality and condition. The triticale standards, established by USDA on May 1, 1977, were last revised in 1987 and appear in the USGSA regulations at 7 CFR 810.2001 through 810.2005. The standards facilitate triticale marketing and define U.S. triticale quality in the domestic and global marketplace. The standards define commonly used industry terms; contain basic principles governing the application of standards, such as the type of sample used for a particular quality analysis; the basis of determination; and specify grades and grade requirements. Official procedures for determining grading factors are provided in GIPSA's Grain Inspection Handbook, Book II, Chapter 13, “Triticale” which also includes standardized procedures for additional quality attributes not used to determine grade, such as dockage and moisture content. Together, the grading standards and testing procedures allow buyers and sellers to communicate quality requirements, compare triticale quality using equivalent forms of measurement and assist in price discovery.
GIPSA's grading and inspection services are provided through a network of federal, state, and private laboratories that conduct tests to determine the quality and condition of triticale. These tests are conducted in accordance with applicable standards using approved methodologies and can be applied at any point in the marketing chain. Furthermore, the tests yield rapid, reliable and consistent results. In addition, GIPSA-issued certificates describing the quality and condition of graded triticale are accepted as
In order for U.S. standards and grading procedures for triticale to remain relevant, GIPSA is issuing this request for information to invite interested parties to submit comments, ideas, and suggestions on all aspects of the U.S. triticale standards and inspection procedures.
7 U.S.C. 71-87K.
Grain Inspection, Packers and Stockyards Administration, USDA.
Request for information.
The United States Department of Agriculture's (USDA) Grain Inspection, Packers, and Stockyards Administration (GIPSA) is seeking comment from the public regarding the United States (U.S.) Standards for Rye under the United States Grain Standards Act (USGSA). To ensure that standards and official grading practices remain relevant, GIPSA invites interested parties to comment on whether the current rye standards and grading practices need to be changed.
We will consider comments we receive by April 20, 2016.
You may submit written or electronic comments on this proposed rule to:
•
•
•
All comments will become a matter of public record and should be identified as “U.S. Standards for Rye request for information comments,” making reference to the date and page number of this issue of the
Electronic submissions should avoid the use of special characters, avoid any form of encryption, and be free of any defects or viruses, since these may prevent GIPSA from being able to read and understand, and thus consider your comment.
GIPSA will post a transcript or report summarizing each substantive oral comment that we receive. This would include comments made at any public meetings hosted by GIPSA during the comment period, unless GIPSA publically announces otherwise.
All comments will also be available for public inspection at the above address during regular business hours (7 CFR 1.27(b)). Please call the GIPSA Management and Budget Services support staff (202) 720-8479 for an appointment to view the comments.
Greg Giese at GIPSA, USDA, 10383 N. Ambassador Drive, Kansas City, MO 64153; Telephone (816) 891-0460; Fax Number (816) 872-1258; email
Under the authority of the USGSA (7 U.S.C. 76), GIPSA establishes standards for rye and other grains regarding kind, class, quality and condition. The rye standards, established by USDA on July 1, 1923, were last revised in 1999 and appear in the USGSA regulations at 7 CFR 810.1201 through 810.1205. The standards facilitate rye marketing and define U.S. rye quality in the domestic and global marketplace. The standards define commonly used industry terms; contain basic principles governing the application of standards, such as the type of sample used for a particular quality analysis; the basis of determination; and specify grades and grade requirements. Official procedures for determining grading factors are provided in GIPSA's Grain Inspection Handbook, Book II, Chapter 8, “Rye” which also includes standardized procedures for additional quality attributes not used to determine grade, such as moisture content and official criteria. Together, the grading standards and testing procedures allow buyers and sellers to communicate quality requirements, compare rye quality using equivalent forms of measurement and assist in price discovery.
GIPSA's grading and inspection services are provided through a network of federal, state, and private laboratories that conduct tests to determine the quality and condition of rye. These tests are conducted in accordance with applicable standards using approved methodologies and can be applied at any point in the marketing chain. Furthermore, the tests yield rapid, reliable and consistent results. In addition, GIPSA-issued certificates describing the quality and condition of graded rye are accepted as
In order for U.S. standards and grading procedures for rye to remain relevant, GIPSA is issuing this request for information to invite interested parties to submit comments, ideas, and suggestions on all aspects of the U.S. Standards for Rye and inspection procedures.
7 U.S.C. 71-87K.
Grain Inspection, Packers and Stockyards Administration, USDA.
Request for information.
The United States Department of Agriculture's (USDA) Grain Inspection, Packers, and Stockyards Administration (GIPSA) is seeking comment from the public regarding the United States (U.S.) Standards for Mixed Grain under the United States Grain Standards Act (USGSA). To ensure that standards and official grading practices remain relevant, GIPSA invites interested parties to comment on whether the current mixed grain standards and grading practices need to be changed.
We will consider comments we receive by April 20, 2016.
You may submit written or electronic comments on this proposed rule to:
•
•
•
All comments will become a matter of public record and should be identified as “U.S. Mixed Grain Standards request for information comments,” making reference to the date and page number of this issue of the
Electronic submissions should avoid the use of special characters, avoid any form of encryption, and be free of any defects or viruses, since these may prevent GIPSA from being able to read and understand, and thus consider your comment.
GIPSA will post a transcript or report summarizing each substantive oral comment that we receive. This would include comments made at any public meetings hosted by GIPSA during the comment period, unless GIPSA publically announces otherwise.
All comments will also be available for public inspection at the above address during regular business hours (7 CFR 1.27(b)). Please call the GIPSA Management and Budget Services support staff (202) 720-8479 for an appointment to view the comments.
Robert Dorman at GIPSA, USDA, 10383 N. Ambassador Drive, Kansas City, MO 64153; Telephone (816) 659-8411; Fax Number (816) 872-1258; email
Under the authority of the USGSA (7 U.S.C. 76), GIPSA establishes standards for mixed
GIPSA's grading and inspection services are provided through a network of federal, state, and private laboratories that conduct tests to determine the quality and condition of mixed grain. These tests are conducted in accordance with applicable standards using approved methodologies and can be applied at any point in the marketing chain. Furthermore, the tests yield rapid, reliable and consistent results. In addition, GIPSA-issued certificates describing the quality and condition of graded mixed grain are accepted as
In order for U.S. standards and grading procedures for mixed grain to remain relevant, GIPSA is issuing this request for information to invite interested parties to submit comments, ideas, and suggestions on all aspects of the U.S. mixed grain standards and inspection procedures.
7 U.S.C. 71-87K.
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to adopt a new airworthiness directive (AD) for Kaman Aerospace Corporation (Kaman) Model K-1200 helicopters. This proposed AD would require revising the “Flight Limitations—NO LOAD” and “Flight Limitations—LOAD” sections of the rotorcraft flight manual (RFM). This proposed AD is prompted by a report of certain flight maneuvers that may lead to main rotor (M/R) blade to opposing hub contact. The proposed actions are intended to prevent damage to the M/R flight controls and subsequent loss of control of the helicopter.
We must receive comments on this proposed AD by March 21, 2016.
You may send comments by any of the following methods:
•
•
•
•
You may examine the AD docket on the Internet at
For service information identified in this proposed rule, contact Kaman Aerospace Corporation, Old Windsor Rd., P.O. Box 2, Bloomfield, Connecticut 06002-0002; telephone (860) 242-4461; fax (860) 243-7047; or at
Kirk Gustafson, Aviation Safety Engineer, Boston Aircraft Certification Office, Engine & Propeller Directorate, FAA, 12 New England Executive Park, Burlington, Massachusetts 01803; telephone (781) 238-7190; email
We invite you to participate in this rulemaking by submitting written comments, data, or views. We also invite comments relating to the economic, environmental, energy, or federalism impacts that might result from adopting the proposals in this document. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should send only one copy of written comments, or if comments are filed electronically, commenters should submit only one time.
We will file in the docket all comments that we receive, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, we will consider all comments we receive on or before the closing date for comments. We will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. We may change this proposal in light of the comments we receive.
We propose to adopt a new AD for Kaman Model K-1200 helicopters. This proposed AD would require revising the “Flight Limitations—NO LOAD” and “Flight Limitations—LOAD” sections of the RFM by inserting a warning and limitations about rearward to forward flight, establishing maximum rearward and sideward flight speeds, and prohibiting weather-vanning takeoffs and departures to turn the helicopter. This proposed AD is prompted by a
We are proposing this AD because we evaluated all known relevant information and determined that an unsafe condition exists and is likely to exist or develop on other products of the same type design.
We reviewed Kaman K-1200 RFM, Revision 5, dated April 14, 2015. This revision of the limitations section of the RFM inserts, for both load operations and no load operations, a warning and limitations about departing from rearward to forward flight, a maximum rearward flight speed of 25 knots, a maximum sideward flight speed of 17 knots, and a prohibition on weather-vanning takeoffs and departures as a method to turn aircraft.
This proposed AD would require, within 10 hours time-in-service, revising the Limitations section of the RFM by inserting a copy of this AD or by making pen-and-ink changes. This proposed AD, under “Flight Limitations—NO LOAD” and “Flight Limitations—LOAD,” would insert a warning and limitations about departing from rearward to forward flight to avoid high rates of turn and minimize yaw and cyclic control inputs, establish a maximum rearward flight speed of 25 knots, establish a maximum sideward flight speed of 17 knots, and prohibit weather-vanning takeoffs and departures as a method to turn the helicopter.
We estimate that this proposed AD would affect 16 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, we expect revising the RFM would require 0.5 work-hour, for cost of about $43 per helicopter, or $688 for the U.S. fleet.
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, 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.
We prepared an economic evaluation of the estimated costs to comply with this proposed 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 proposes to amend 14 CFR part 39 as follows:
49 U.S.C. 106(g), 40113, 44701.
This AD applies to Model K-1200 helicopters, certificated in any category.
This AD defines the unsafe condition as a main rotor (M/R) blade striking the opposing rotor's flight controls. This condition could result in damage to the M/R flight controls and subsequent loss of control of the helicopter.
We must receive comments by March 21, 2016.
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.
Within 10 hours time-in-service, revise Section 2 Limitations of the Kaman K-1200 Rotorcraft Flight Manual (RFM) by inserting a copy of this AD into the RFM or by making pen-and-ink changes, as follows:
(1) In the “Flight Limitations—NO LOAD” and “Flight Limitations—WITH LOAD,” sections, add the information in Figure 1 to paragraph (e)(1) of this AD.
(2) In the “Flight Limitations—NO LOAD” and “Flight Limitations—WITH LOAD” sections, add the following: Maximum rearward flight speed: 25 knots. Maximum sideward flight speed: 17 knots. Weather—
Incorporating the changes contained in Kaman K-1200 RFM, Revision 5, dated April 14, 2015, before the effective date of this AD is considered acceptable for compliance with the corresponding actions specified in paragraph (e) of this AD.
(1) The Manager, Boston Aircraft Certification Office, FAA, may approve AMOCs for this AD. Send your proposal to: Kirk Gustafson, Aviation Safety Engineer, Boston Aircraft Certification Office, Engine & Propeller Directorate, FAA, 12 New England Executive Park, Burlington, Massachusetts 01803; telephone (781) 238-7190; 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: 6710, Main Rotor Control.
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to supersede Airworthiness Directive (AD) 2015-10-03, for certain Airbus Model A330-200 and -300 series airplanes, and Model A340-200 and -300 series airplanes. AD 2015-10-03 currently requires a detailed inspection for visible chrome of each affected main landing gear (MLG) sidestay upper cardan pin, associated nuts, and retainer assembly; pin replacement if needed; measurement of cardan pin clearance dimensions (gap check); corrective actions if necessary; and a report of all findings. Since we issued AD 2015-10-03, further investigation concluded that the reported MLG sidestay upper cardan pin migration event had been caused by corrosion due to lack of jointing compound and inadequate sealant application during the MLG installation. This proposed AD would require a detailed inspection of the upper cardan pin and nut threads for any corrosion, pitting, or thread damage, and if necessary, replacement of the cardan pin and nut threads. This proposed AD would also revise the applicability to include additional airplane models. We are proposing this AD to detect and correct migration of the sidestay upper cardan pin, which could result in disconnection of the sidestay upper arm from the airplane structure, and could result in a landing gear collapse and consequent damage to the airplane and injury to occupants.
We must receive comments on this proposed AD by March 7, 2016.
You may send comments by any of the following methods:
•
•
•
•
For service information identified in this proposed AD, contact Airbus SAS—Airworthiness Office—EAL, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 45 80; email
You may examine the AD docket on the Internet at
Vladimir Ulyanov, Aerospace Engineer, International Branch, ANM-116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057-3356; telephone 425-227-1138; fax 425-227-1149.
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 April 30, 2015, we issued AD 2015-10-03, Amendment 39-18158 (80 FR 30608, May 29, 2015). AD 2015-10-03 requires actions intended to address an unsafe condition on certain Airbus Model A330-200 and -300 series airplanes, and Model A340-200 and -300 series airplanes.
Since we issued AD 2015-10-03, Amendment 39-18158 (80 FR 30608, May 29, 2015), further investigation concluded that the reported MLG sidestay upper cardan pin migration event had been caused by corrosion due to lack of jointing compound and inadequate sealant application during the MLG installation. Therefore, this issue affects any MLG that had an upper cardan pin replacement or reinstallation, regardless of MLG overhaul. Any corrosion on the upper cardan pin and nut threads would not have been detected during the currently required detailed inspection.
The European Aviation Safety Agency (EASA), which is the Technical Agent
An A330 aeroplane equipped with Basic MLG was rolling out after landing when it experienced a nose wheel steering fault (unrelated to the safety subject addressed by this AD), which resulted in the crew stopping the aeroplane on the taxiway after vacating the runway. The subsequent investigation revealed that the right-hand MLG sidestay upper cardan pin had migrated out of position. The sidestay upper cardan nut and retainer had detached from the upper cardan pin and were found, still bolted together, in the landing gear bay.
Prompted by these findings, Airbus published Alert Operators Transmission (AOT) A32L003-14, providing inspection instructions and, as an interim solution, EASA issued AD 2014-0066 [which corresponds to FAA AD 2015-10-03, Amendment 39-18158 (80 FR 30608, May 29, 2015)] to require repetitive detailed inspections (DET) of the MLG upper cardan pin, nut and retainer. That AD also required accomplishment of a one-time gap check between wing rear spar fitting lugs and the bush flanges and, depending on findings, corrective action(s). The gap check (including corrections, as necessary) terminated the repetitive DET.
Since that [EASA] AD was issued, further investigation concluded that the reported MLG sidestay upper cardan pin migration event had been caused by corrosion, due to lack of jointing compound and inadequate sealant application during MLG installation. Therefore, this issue affects any MLG that had an upper cardan pin replacement or re-installation, irrespective of MLG overhaul. Any corrosion on the upper cardan pin and nut threads would not have been detected during the previously required DET.
This condition, if not detected and corrected, could lead to a complete migration of the sidestay upper cardan pin and a disconnection of the sidestay upper arm from the aeroplane structure, possibly resulting in MLG collapse with consequent damage to the aeroplane and injury to occupants.
To address this potential unsafe condition, Airbus published Service Bulletin (SB) A330-32-3269, SB A340-32-4301 and SB A340-32-5115 providing inspection instructions. In addition, to prevent any improper re-installation of an upper cardan pin on a MLG, Airbus amended the applicable Aircraft Maintenance Manual (AMM) on 01 October 2014.
For the reasons described above, this [EASA] AD supersedes EASA [AD] 2014-0066 and requires a one-time DET of the MLG upper cardan pin and nut threads to check for corrosion or damage on the upper cardan pin and nut threads, and, depending on findings, replacement of the damaged part(s).
As this unsafe condition could also develop on A330 freighters and A340-500/-600 aeroplanes, this [EASA] AD also applies to those aeroplanes.
You may examine the MCAI in the AD docket on the Internet at
Airbus has issued the following service information:
• Airbus Service Bulletin A330-32-3269, dated February 17, 2015.
• Airbus Service Bulletin A340-32-4301, dated February 17, 2015.
• Airbus Service Bulletin A340-32-5115, dated February 17, 2015.
The service information describes procedures for a detailed inspection of the upper cardan pin and nut threads for any corrosion, pitting, or thread damage, and replacement of the cardan pin and nut threads. 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 another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with the State of Design Authority, we have been notified of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all pertinent information and determined an unsafe condition exists and is likely to exist or develop on other products of these same type designs.
We estimate that this proposed AD affects 95 airplanes of U.S. registry.
We also estimate that it would take about 11 work-hours per product to comply with the basic requirements of this proposed AD. The average labor rate is $85 per work-hour. Based on these figures, we estimate the cost of this proposed AD on U.S. operators to be $88,825, or $935 per product.
In addition, we estimate that any necessary follow-on actions would take about 12 work-hours and require parts costing $78,136, for a cost of $79,156 per product. We have no way of determining the number of aircraft that might need this action.
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; 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 March 7, 2016.
This AD replaces 2015-10-03, Amendment 39-18158 (80 FR 30608, May 29, 2015).
This AD applies to the airplanes, certificated in any category, identified in paragraphs (c)(1), (c)(2), and (c)(3) of this AD, except airplanes on which an upper cardan pin on a main landing gear (MLG) has never been replaced or reinstalled since first entry into service of the airplane.
(1) Airbus Model A330-201, -202, -203, -223, -223F, -243, -243F, -301, -302, -303, -321, -322, -323, -341, -342, and -343 airplanes, all manufacturer serial numbers .
(2) Airbus Model A340-211, -212, -213, -311, -312, and -313 airplanes, all manufacturer serial numbers.
(3) Airbus Model A340-541 and -642 airplanes, all manufacturer serial numbers.
Air Transport Association (ATA) of America Code 32, Landing Gear.
This AD was prompted by a report that an MLG sidestay upper cardan pin migration event had been caused by corrosion due to lack of jointing compound and inadequate sealant application during the MLG installation. We are issuing this AD to detect and correct migration of the sidestay upper cardan pin, which could result in disconnection of the sidestay upper arm from the airplane structure, and could result in a landing gear collapse and consequent damage to the airplane and injury to occupants.
Comply with this AD within the compliance times specified, unless already done.
For the purpose of this AD, an upper cardan pin on a MLG is affected if it has been installed as a replacement part, or reinstalled since first entry of the airplane into service, and if the installation was accomplished using the applicable airplane maintenance manual at a revision level prior to October 1, 2014.
(1) For an affected upper cardan pin on an MLG: Before exceeding 96 months since its latest installation on an airplane, or within 12 months after the effective date of this AD, whichever occurs later, do a detailed inspection of the upper cardan pin and nut threads for any corrosion, pitting, or thread damage, in accordance with the Accomplishment Instructions of the applicable service information specified in paragraph (i) of this AD.
(2) If, during the detailed inspection specified in paragraph (h)(1) of this AD, any corrosion, pitting, or thread damage is found, before further flight, replace the upper cardan pin and/or nut, as applicable, in accordance with the Accomplishment Instructions of the applicable service information specified in paragraph (i) of this AD.
Do the actions required by paragraph (h) of this AD in accordance with the Accomplishment Instructions of the applicable service information identified in paragraphs (i)(1), (i)(2), and (i)(3) of this AD.
(1) Airbus Service Bulletin A330-32-3269, dated February 17, 2015 (for Airbus Model A330-201, -202, -203, -223, -223F, -243, -243F, -301, -302, -303, -321, -322, -323, -341, -342, and -343 airplanes).
(2) Airbus Service Bulletin A340-32-4301, dated February 17, 2015 (for Airbus Model A340-211, -212, -213, -311, -312, and -313 airplanes).
(3) Airbus Service Bulletin A340-32-5115, dated February 17, 2015 (for Airbus Model A340-541 and -642 airplanes).
The following provisions also apply to this AD:
(1)
(2)
(1) Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA Airworthiness Directive 2015-0079, dated May 7, 2015, for related information. This MCAI may be found in the AD docket on the Internet at
(2) For service information identified in this AD, contact Airbus SAS—Airworthiness Office—EAL, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 45 80; email
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to adopt a new airworthiness directive (AD) for certain Beechcraft Corporation Model BAe.125 series 1000A and 1000B airplanes and Model Hawker 1000 airplanes. This proposed AD was prompted by reports of inadvertent stowage of the thrust reversers, which can result in high forward engine thrust even though the throttle is commanding reverse thrust. This proposed AD would require installing kits that include relays, associated wiring, and a thrust reverser fail annunciator. We are proposing this AD to prevent inadvertent stowage of the thrust reversers, which could cause a runway overrun during a rejected takeoff or landing, and consequent structural failure and possible injury to occupants.
We must receive comments on this proposed AD by March 7, 2016.
You may send comments, using the procedures found in 14 CFR
•
•
•
•
For service information identified in this proposed AD, Beechcraft Corporation, TMDC, P.O. Box 85, Wichita, KS 67201-0085; telephone 316-676-8238; fax 316-671-2540; email
You may examine the AD docket on the Internet at
Jeffrey Englert, Aerospace Engineer, Mechanical Systems and Propulsion Branch, ACE-116W, FAA, Wichita Aircraft Certification Office, 1801 Airport Road, Room 100, Dwight D. Eisenhower National Airport, Wichita, KS 67209; phone: 316-946-4167; fax: 316-946-4107; email:
We invite you to send any written relevant data, views, or arguments about this proposal. Send your comments to an address listed under the
We will post all comments we receive, without change, to
We have received reports of inadvertent stowage of the thrust reversers, which can result in high forward engine thrust even though the throttle is commanding reverse thrust. These reports were on another type of airplane that utilizes a similar engine and thrust reverser system. The root cause is incorrect software logic within the engine's electronic control unit. This condition, if not corrected, could result in inadvertent stowage of the thrust reversers, which could cause a runway overrun during a rejected takeoff or during landing, and consequent structural failure and possible injury to occupants.
We reviewed Beechcraft Mandatory Service Bulletin 78-4133, dated May 2015. The service information describes procedures for installing kits having part numbers 140-9005 and 140-9006, which include relays, associated wiring, and a thrust reverser fail annunciator. 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 accomplishing the actions specified in the service information described previously, except as discussed under “Differences Between this Proposed AD and the Service Information.”
Although Beechcraft Mandatory Service Bulletin 78-4133, dated May 2015, specifies that “Should any difficulty be encountered in accomplishing this Service Bulletin, contact Beechcraft Corporation,” this proposed AD would require operators to resolve difficulties in accordance with a method approved by the FAA.
We estimate that this proposed AD affects 38 airplanes of U.S. registry.
We estimate the following costs to comply with this proposed AD:
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
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, 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 March 7, 2016.
None.
This AD applies to Beechcraft Corporation (type certificate previously held by Hawker Beechcraft Corporation; Raytheon Aircraft Company) airplanes, certificated in any category, as identified in paragraphs (c)(1) and (c)(2) of this AD.
(1) Model BAe.125 series 1000A and 1000B airplanes, serial numbers 258151, 258159, and 259004 through 259042 inclusive.
(2) Model Hawker 1000 airplanes, serial numbers 259003 and 259043 through 259052 inclusive.
Air Transport Association (ATA) of America Code 78, Exhaust.
This AD was prompted by reports of inadvertent stowage of the thrust reversers, which can result in high forward engine thrust even though the throttle is commanding reverse thrust. We are issuing this AD to prevent inadvertent stowage of the thrust reversers, which could cause a runway overrun during a rejected takeoff or landing, and consequent structural failure and possible injury to occupants.
Comply with this AD within the compliance times specified, unless already done.
Within 600 flight hours or 12 months after the effective date of this AD, whichever occurs first: Install kits having part numbers 140-9005 and 140-9006, in accordance with the Accomplishment Instructions of Beechcraft Mandatory Service Bulletin 78-4133, dated May 2015, except as specified in paragraph (h) of this AD.
A note in the Accomplishment Instructions of Beechcraft Mandatory Service Bulletin 78-4133, dated May 2015, instructs operators to contact Beechcraft Corporation if any difficulty is encountered in accomplishing the service bulletin. However, any deviation from the actions required by paragraph (g) of this AD must be approved as an alternative method of compliance (AMOC) under paragraph (i)(1) of this AD.
(1) The Manager, Wichita Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the ACO, send it to the attention of the person identified in paragraph (j)(1) of this AD.
(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.
(1) For more information about this AD, contact Jeffrey Englert, Aerospace Engineer, Mechanical Systems and Propulsion Branch, ACE-116W, FAA, Wichita Aircraft Certification Office, 1801 Airport Road, Room 100, Dwight D. Eisenhower National Airport, Wichita, KS 67209; phone: 316-946-4167; fax: 316-946-4107; email:
(2) For service information identified in this AD, contact Beechcraft Corporation, TMDC, P.O. Box 85, Wichita, KS 67201-0085; telephone 316-676-8238; fax 316-671-2540; email
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to supersede Airworthiness Directive (AD) 2012-11-15, for all BAE Systems (Operations) Limited Model 4101 airplanes. AD 2012-11-15 currently requires a one-time detailed inspection for cracks, corrosion, and other defects of the rear face of the wing rear spar, and repair if necessary. Since we issued AD 2012-11-15, we received new reports of cracking found in the wing rear spar and technical analysis results confirmed that the crack initiation and propagation are due to fatigue, with no indication of any other crack initiation mechanism (
We must receive comments on this proposed AD by March 7, 2016.
You may send comments by any of the following methods:
•
•
•
•
For service information identified in this proposed AD, contact BAE Systems (Operations) Limited, Customer Information Department, Prestwick International Airport, Ayrshire, KA9 2RW, Scotland, United Kingdom; telephone +44 1292 675207; fax +44 1292 675704; email
You may examine the AD docket on the Internet at
Todd Thompson, Aerospace Engineer, International Branch, ANM-116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057-3356; telephone 425-227-1175; fax 425-227-1149.
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 March 31, 2012, we issued AD 2012-11-15, Amendment 39-17079 (77 FR 36127, June 18, 2012). AD 2012-11-15 requires actions intended to address an unsafe condition on BAE Systems (Operations) Limited Model 4101 airplanes.
Since we issued AD 2012-11-15, Amendment 39-17079 (77 FR 36127, June 18, 2012), we received new reports of cracking found in the wing rear spar and technical analysis results confirmed that the crack initiation and propagation are due to fatigue, with no indication of any other crack initiation mechanism (
The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Union, has issued EASA Airworthiness Directive 2015-0100, dated June 3, 2015 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for all BAE Systems (Operations) Limited Model 4101 airplanes. The MCAI states:
During an investigation of a fuel leak on the rear spar of a Jetstream 4100 aeroplane, 4 cracks were found between Ribs 6 and 7 (immediately inboard of the inboard engine rib). The cracks initiated at adjacent fastener bores in the rear spar upper boom, and progressed downwards, diagonally, into the rear spar web.
These cracks, if not detected and corrected, could propagate to a critical length, affecting the structural integrity of the area, possibly resulting in a fuel tank rupture with consequent damage to the aeroplane and injury to its occupants.
Prompted by these findings, EASA issued [EASA] AD 2011-0096 [which corresponds to FAA AD 2012-11-15, Amendment 39-17079 (77 FR 36127, June 18, 2012)] to require a one-time [detailed] inspection [for cracks, corrosion, and other defects] of the rear face of the wing rear spar and the accomplishment of applicable corrective actions [
Since that [EASA] AD [2011-0096] was issued, the results of the technical analysis confirmed that the cracks were due to fatigue, with no indication of any other crack initiation mechanism (
To address this unsafe condition, a review of the inspection interval was undertaken based on the cracks from both aeroplanes and BAE Systems (Operations) Ltd issued Service Bulletin (SB) J41-A57-029 Revision 3 in order to reduce the inspection interval of the wing rear spar from 2,000 flight cycles (FC) to 1,600 FC.
For the reasons described above, this [EASA] AD supersedes AD 2011-0096, without retaining its requirements, introduces repetitive inspections and, depending on findings, requires the accomplishments of applicable corrective action(s) [
You may examine the MCAI in the AD docket on the Internet at
BAE Systems (Operations) Limited has issued Alert Service Bulletin J41-A57-029, Revision 3, dated April 8, 2014. The service information describes detailed inspections for cracks, corrosion, and other defects of the rear face of the wing rear spars.
BAE Systems (Operations) Limited also has issued Subject 57-00-00, Wings General, of Chapter 57, Wings, of the Jetstream Series 4100 Structural Repair Manual, Volume 1, Revision 32, dated October 15, 2014. The service information describes procedures for doing certain wing repairs.
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 another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with the State of Design Authority, we have been notified of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all pertinent information and determined an unsafe condition exists and is likely to exist or develop on other products of the same type design.
We estimate that this proposed AD affects 15 airplanes of U.S. registry.
We also estimate that it would take up to 25 work-hours per product to comply with the basic requirements of this proposed AD. The average labor rate is
We have received no definitive data that would enable us to provide a cost estimates for the on-condition actions (repairing cracks, corrosion, and defects) specified in this AD.
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; 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 March 7, 2016.
This AD replaces AD 2012-11-15, Amendment 39-17079 (77 FR 36127, June 18, 2012).
This AD applies to BAE (Operations) Limited Model 4101 airplanes, certificated in any category, all models, and all serial numbers.
Air Transport Association (ATA) of America Code 57, Wings.
This AD was prompted by new reports of cracking found in the wing rear spar and technical analysis results confirmed that the crack initiation and propagation are due to fatigue, with no indication of any other crack initiation mechanism (
Comply with this AD within the compliance times specified, unless already done.
Within 30 days after the effective date of this AD, or within 1,600 flight cycles since the most recent detailed inspection was done as specified in BAE Systems Alert Service Bulletin J41-A57-029, whichever occurs later: Do a detailed inspection for cracks, corrosion, and other defects (defects include scratches, dents, holes, damage to fastener holes, or damage to surface protection and finish) of the rear face of the wing rear spars, in accordance with the Accomplishment Instructions of BAE Systems Alert Service Bulletin J41-A57-029, Revision 3, dated April 8, 2014. Repeat the inspection thereafter at intervals not to exceed 1,600 flight cycles.
(1) If any cracking, corrosion, or other defect is found within the criteria defined in Subject 57-00-00, Wings General, of Chapter 57, Wings, of the Jetstream Series 4100 Structural Repair Manual, Volume 1, Revision 32, dated October 15, 2014: Before further flight, repair the affected area, in accordance with the repair instructions of Subject 57-00-00, Wings General, of Chapter 57, Wings, of the Jetstream Series 4100 Structural Repair Manual, Volume 1, Revision 32, dated October 15, 2014.
(2) If any cracking, corrosion, or other defect is found exceeding the criteria defined in Subject 57-00-00, Wings General, of Chapter 57, Wings, of the Jetstream Series 4100 Structural Repair Manual, Volume 1, Revision 32, dated October 15, 2014: 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 BAE Systems (Operations) Limited's EASA Design Organization Approval (DOA).
Accomplishment of a repair as required by paragraphs (g)(1) and (g)(2) of this AD, does not constitute terminating action for the repetitive inspections required by paragraph (g) of this AD, unless the approved repair required by paragraph (g)(2) of this AD states otherwise (
The following provisions also apply to this AD:
(1) Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA Airworthiness Directive 2015-0100, dated June 3, 2015, for related information. This MCAI may be found in the AD docket on the Internet at
(2) For service information identified in this AD, contact BAE Systems (Operations) Limited, Customer Information Department, Prestwick International Airport, Ayrshire, KA9 2RW, Scotland, United Kingdom; telephone +44 1292 675207; fax +44 1292 675704; email
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM); reopening of comment period.
This action reopens the comment period for the NPRM published September 10, 2015, proposing to expand the restricted airspace at Chincoteague Inlet, VA. This reopening of the comment period is necessary because a chart depicting the proposed airspace was not available prior to the original comment period closing date. This action will ensure that interested persons have the opportunity to view the chart and submit comments regarding the proposal.
The comment period for the NPRM published September 10, 2015 (80 FR 54444) closed on October 26, 2015, and reopened until February 22, 2016.
Send comments on this proposal to the U.S. Department of Transportation, Docket Operations, M-30, 1200 New Jersey Avenue SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-0001; telephone: (202) 366-9826. You must identify FAA Docket No. FAA-2015-2776 and Airspace Docket No. 15-AEA-5, at the beginning of your comments. You may also submit comments through the Internet at
Paul Gallant, Airspace Policy Group, Office of Airspace Services, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone: (202) 267-8783.
Interested parties are invited to participate in this proposed rulemaking by submitting such written data, views, or arguments as they may desire. Comments that provide the factual basis supporting the views and suggestions presented are particularly helpful in developing reasoned regulatory decisions on the proposal. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers (FAA Docket No. FAA-2015-2776 and Airspace Docket No. 15-AEA-5) and be submitted in triplicate to the Docket Management System (see
Persons wishing the FAA to acknowledge receipt of their comments on this action must submit with those comments a self-addressed, stamped postcard on which the following statement is made: “Comments to FAA Docket No. FAA-2015-2776 and Airspace Docket No. 15-AEA-5.” The postcard will be date/time stamped and returned to the commenter.
All communications received on or before the specified closing date for comments will be considered before taking action on the proposed rule. The proposal contained in this action may be changed in light of comments received. All comments submitted will be available for examination in the public docket both before and after the closing date for comments. A report summarizing each substantive public contact with FAA personnel concerned with this rulemaking will be filed in the docket.
An electronic copy of this document may be downloaded through the internet at
You may review the public docket containing the proposal, any comments received and any final disposition in person at the Dockets Office (see
Persons interested in being placed on a mailing list for future NPRM's should contact the FAA's Office of Rulemaking, (202) 267-9677, for a copy of Advisory Circular No. 11-2A.
On September 10, 2015, the FAA published a notice of proposed rulemaking (NPRM) proposing the amendment and establishment of restricted areas at Chincoteague Inlet, VA (80 FR 54444), Docket No. FAA-2015-2776, Airspace Docket No. 15-AEA-5. The NPRM included a statement that a color chart of the proposed airspace would be available for viewing on the
A color chart showing the location of the proposed restricted areas is now posted on the internet at
To give the public an opportunity to view the chart prior to submitting comments, the FAA is reopening the comment period for 30 days. All comments submitted during the new comment period, as well as all comments previously received, will be considered before any final action is taken on the proposal. No other proposal information as published in the NPRM has been changed.
Consumer Product Safety Commission.
Notice of proposed rulemaking; correction.
The United States Consumer Product Safety Commission (“Commission” or “CPSC”) is correcting a Notice of Proposed Rulemaking (“NPR”) that appeared in the
As established in the November 9, 2015 NPR, comments on the proposed rule are due by January 25, 2016.
Stefanie C. Marques, Project Manager, Directorate for Health Sciences, U.S. Consumer Product Safety Commission, 5 Research Place, Rockville, MD 20850; telephone: 301-987-2581; email:
In the
The correction pertains to proposed 16 CFR 1231.2, paragraph (b)(2), regarding the rearward stability index (“SI”) the Commission proposed to require for high chairs. The preamble to the NPR (page 69151, section VIII.A., titled
The Commission hereby makes the following correction to the NPR appearing on page 69144 in the
Securities and Exchange Commission.
Reopening of comment period.
The Securities and Exchange Commission (“Commission”) is reopening the comment period for proposed amendments to rule 13n-4 under the Securities Exchange Act of 1934 (“Exchange Act”) related to regulatory access to security-based swap data held by security-based swap data repositories. The proposed rule amendments would implement Exchange Act provisions that conditionally require that security-based swap data repositories make data available to certain regulators and other authorities. Recent legislation has modified certain underlying statutory provisions.
The comment period for the proposed rule published September 14, 2015, at 80 FR 55182, is reopened. Submit comments on or before February 22, 2016.
Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Use the Federal eRulemaking Portal (
• Send paper comments to 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
Carol McGee, Assistant Director, Joshua Kans, Senior Special Counsel, or Kateryna P. Imus, Special Counsel, at (202) 551-5870; Division of Trading and Markets, Securities and Exchange
Exchange Act sections 13(n)(5)(G) and (H), which were added by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, conditionally require security-based swap data repositories to make data available to certain regulators and other entities. The statute identifies certain entities as being eligible to access data, and states that the Commission may determine that other persons are appropriate to access such data. The statute further provides that the Commission must be notified of requests for access, and also conditions data access on the security-based swap data repository receiving certain confidentiality-related agreements. Moreover, under the statute as it was originally enacted in 2010, data access was conditional on the recipient entity agreeing to indemnify the repository and the Commission for expenses arising from litigation relating to the information provided.
On September 14, 2015, the Commission proposed rules to implement those data access provisions.
(i)
(ii)
(iii)
(iv)
On December 4, 2015, President Obama signed into law Public Law 114-94, the Surface Transportation Reauthorization and Reform Act of 2015. This law, among other things, amended the statutory data access provisions by eliminating the indemnification requirement discussed above.
The statutory revision also added the term “other foreign authorities” to the nonexclusive statutory list of entities that the Commission may determine appropriate to access data under these provisions.
The elimination of the indemnification requirement makes unnecessary paragraph (d) of proposed rule 13n-4, which would have implemented the conditional exemption from the indemnification requirement.
Commenters are invited to discuss the proposal in light of the recent statutory amendments. Commenters particularly are invited to address the impact, on the remaining aspects of the proposal, arising from the elimination of the proposed indemnification exemption, including the exemption's proposed condition limiting access to security-based swap data to persons or authorities within a relevant authority's regulatory mandate or legal responsibility or authority. For example, to what extent should those criteria related to an entity's regulatory mandate or legal responsibility and authority be used by the Commission as it implements the confidentiality condition and/or the Commission's determination authority?
Commenters further are invited to address whether the use of that limitation should vary depending on the type of recipient entity. For example, should those criteria be considered exclusively in conjunction with recipient authorities not specifically named in the statute, including the Federal Reserve Banks and the OFR, or should those criteria instead be considered in conjunction with access to data by all entities under these provisions?
In addition, commenters are requested to address whether the proposal should be revised to address the other statutory changes to the data access provisions—such as addition of the term “other
Commenters are also invited to address the impact of the statutory amendments on the Commission's economic analysis.
By the Commission.
Alcohol and Tobacco Tax and Trade Bureau, Treasury.
Notice of proposed rulemaking.
The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to establish the approximately 526,000-acre “Willcox” viticultural area in portions of Cochise and Graham Counties in southeastern Arizona. The proposed viticultural area does not lie within, nor does it contain, any other established viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. TTB invites comments on this proposed addition to its regulations.
Comments must be received by March 21, 2016.
Please send your comments on this proposed rule to one of the following addresses (please note that TTB has a new address for comments submitted by U.S. mail):
•
•
•
See the Public Participation section of this notice for specific instructions and requirements for submitting comments, and for information on how to request a public hearing or view or obtain copies of the petition and supporting materials.
Karen A. Thornton, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; phone 202-453-1039, ext. 175.
Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe regulations for the labeling of wine, distilled spirits, and malt beverages. The FAA Act provides that these regulations should, among other things, prohibit consumer deception and the use of misleading statements on labels and ensure that labels provide the consumer with adequate information as to the identity and quality of the product. The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act pursuant to section 1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has delegated various authorities through Treasury Department Order 120-01 (dated December 10, 2013, superseding Treasury Order 120-01 (Revised), “Alcohol and Tobacco Tax and Trade Bureau,” dated January 24, 2003), to the TTB Administrator to perform the functions and duties in the administration and enforcement of this law.
Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to establish definitive viticultural areas and regulate the use of their names as appellations of origin on wine labels and in wine advertisements. Part 9 of the TTB regulations (27 CFR part 9) sets forth standards for the preparation and submission of petitions for the establishment or modification of American viticultural areas (AVAs) and lists the approved AVAs.
Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) defines a viticultural area for American wine as a delimited grape-growing region having distinguishing features, as described in part 9 of the regulations, and a name and a delineated boundary, as established in part 9 of the regulations. These designations allow vintners and consumers to attribute a given quality, reputation, or other characteristic of a wine made from grapes grown in an area to the wine's geographic origin. The establishment of AVAs allows vintners to describe more accurately the origin of their wines to consumers and helps consumers to identify wines they may purchase. Establishment of an AVA is neither an approval nor an endorsement by TTB of the wine produced in that area.
Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) outlines the procedure for proposing an AVA and provides that any interested party may petition TTB to establish a grape-growing region as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes the standards for petitions for the establishment or modification of AVAs. Petitions to establish an AVA must include the following:
• Evidence that the area within the proposed AVA boundary is nationally or locally known by the AVA name specified in the petition;
• An explanation of the basis for defining the boundary of the proposed AVA;
• A narrative description of the features of the proposed AVA affecting viticulture, such as climate, geology, soils, physical features, and elevation, that make the proposed AVA distinctive and distinguish it from adjacent areas outside the proposed AVA boundary;
• The appropriate United States Geological Survey (USGS) map(s) showing the location of the proposed AVA, with the boundary of the proposed AVA clearly drawn thereon; and
• A detailed narrative description of the proposed AVA boundary based on USGS map markings.
TTB received a petition from Paul S. Hagar, the special projects manager of Dragoon Mountain Vineyard, on behalf of Dragoon Mountain Vineyard and other vineyard and winery owners in Willcox, Arizona, proposing the establishment of the “Willcox” AVA in southeastern Arizona. The proposed AVA contains approximately 526,000 acres and has 21 commercial vineyards, covering approximately 454 acres, distributed across the proposed AVA.
The proposed Willcox AVA derives its name from the city of Willcox, which is located within the proposed AVA. Within the proposed AVA is also a large natural feature known as the Willcox Playa, the dry bed of an ancient lake. The phone directory for Cochise County, where the majority of the proposed AVA is located, lists 26 businesses and organizations within the proposed AVA that use the name “Willcox,” including Willcox Rock and Sand Inc., Willcox Travel Center, Willcox Car Wash, Willcox Meat Packing House, and Willcox Real Estate Company. Additionally, the region is served by the Willcox Chamber of Commerce, the Willcox Rural Fire Department, and the Willcox Unified School District. Finally, a business consortium created by wine industry members in the region to promote local wines is known by the name “Willcox Wine Country.”
The proposed Willcox AVA is described in the petition as a large, high-altitude valley resembling a shallow basin. The valley of the proposed AVA is separated from several neighboring valleys by a series of high mountain ranges to the north, east, and west. The northern and northeastern portions of the proposed AVA boundary follow the base of the Pinalenos Mountains, which separate the proposed AVA from the Gila Valley. The eastern portion of the boundary follows the foothills of the Chiricahua and Dos Cabezas Mountains, which separate the proposed AVA from the San Simon Valley. The southern portion of the boundary approximates the slight ridge that forms the southern edge of the Willcox basin and separates the proposed AVA from the Sulphur Springs Valley and its drainage system. The western and northwestern portions of the boundary follow the base of the Dragoon, Little Dragoon, and Winchester Mountains, which separate the proposed AVA from the Aravaipa and San Pedro Valleys.
The distinguishing features of the proposed Willcox AVA include its geology, topography, soils, and climate.
The proposed Willcox AVA is in the Arizona geological province known as the “basin-and-range” province, which is characterized by high mountain ranges that are separated by valleys. The features of the basin-and-range province were formed over millions of years by periods of massive volcanic explosions and the pushing, folding, and stretching of the Earth's crust. The underlying geology of the basin in which the proposed AVA is located is primarily composed of alluvial (water-borne) and eolian (wind-borne) deposits. By contrast, the underlying geology of the surrounding mountain ranges is composed mostly of igneous rocks derived from volcanic materials, such as rhyolite, granite, and tuff.
The most recent period of geologic activity in the region of the proposed AVA occurred between 15 and 8 million years ago, during a period of modest volcanic activity and intense stretching of the crust. The stretching of the crust caused large blocks of the mountains to drop thousands of feet in a nearly vertical manner. This vertical block faulting resulted in the formation of the Chiricahua, Dos Cabezas, Pinalenos, Dragoon, Little Dragoon, and Winchester Mountains that surround the proposed Willcox AVA and contrast with the flat, shallow basin of the proposed AVA.
Early in this last period of major geologic activity, existing drainage systems such as creeks and rivers were disrupted throughout southeastern Arizona, and many valleys became closed basins. A closed basin is a valley in which no water flows in or out, and any lakes or underground aquifers within the closed basin are replenished only through rainfall. Over time, many of the closed basins near the proposed AVA became filled with enough erosional deposits from the surrounding mountains to allow streams to flow once more into and through the basins. These basins, where streams now flow, include the Gila Valley to the north, the San Simon Valley to the east, the San Pedro Valley to the west, the Aravaipa Valley to the northwest, and the Sulphur Springs Valley to the south. The Willcox basin, however, was permanently closed.
The closed nature of the Willcox basin allowed it to retain large quantities of rainwater during a cool, wet period between 2 million and 15,000 years ago. Thus, an ancient lake formed, known as Lake Cochise. Later, as the climate became warmer and drier, the lake began to evaporate, and the clay sediments and alkali salts in the water settled in the shallower southern end of the lake. Today, the remains of the southern end of Lake Cochise form the Willcox Playa, a large, dry, alkali flat in the west-central portion of the proposed Willcox AVA.
The geologic forces that shaped the proposed Willcox AVA have an effect on viticulture. Because the basin system is closed, irrigation water comes solely from wells and the small amounts of annual rainfall that the region receives. The petition also notes that water is not brought into the proposed AVA via canals, aqueducts, or other manmade methods. As a result, vineyard owners within the proposed AVA must carefully manage their water usage through water-conserving methods such as drip irrigation.
As previously noted, the proposed Willcox AVA sits within a large, shallow basin. Elevations within the proposed AVA range from 4,135 feet in the Willcox Playa to 4,700 feet at the edge of the foothills of the Chiricahua Mountains along the eastern edge of the proposed AVA. Because the proposed AVA is within a closed basin system, the basin's floor has not been cut or eroded by flowing bodies of water such as creeks, streams, or rivers. As a result, the terrain within the proposed AVA is relatively uniform and very flat, with slope angles ranging from 0 to 1.5 percent.
The topography of the proposed Willcox AVA affects viticulture. The small range of elevations and the flat terrain allow for relative uniformity of vineyard sites and growing conditions throughout the proposed AVA. The shallow slopes and the lack of creeks or streams within the proposed AVA reduce the risk of erosion. The flat basin floor allows for abundant sunlight to reach the vines, which stimulates vine growth and fruit maturation. Due to the intense sunlight, vineyard owners within the proposed AVA must manage the leaf canopies carefully so that the fruit does not become sunburnt, while preventing the canopies from becoming so dense and shady that the fruit does not reach optimum ripeness. Finally, because the proposed AVA is lower and flatter than the neighboring mountain ranges, cool nighttime air flowing down from the mountains settles in the proposed AVA. During the early spring,
Several mountain ranges surround the proposed AVA, including the Pinaleno Mountains to the north and northeast, the Dos Cabezas and Chiricahua Mountains to the east, and the Dragoon, Little Dragoon, and Winchester Mountains to the west. The elevations within these ranges are higher than those found within the proposed Willcox AVA. Large valleys with elevations lower than those found in the proposed AVA extend beyond each of these mountain ranges. The Gila Valley lies to the north, the San Simon Valley lies to the east, the San Pedro Valley lies to the west, and the Aravaipa Valley lies to the northwest. All of these valleys, along with the Sulphur Springs Valley south of the proposed AVA boundary, also are open basin systems. Because these valleys are open basin systems, their valley floors have been eroded by running water. The continual erosion results in a steady descent in elevation along the long axis of each of the valleys, which contrasts with the generally level valley floor of the closed basin system that comprises the proposed AVA.
Although all of the valleys in southeastern Arizona contain soils derived from the erosion of the surrounding mountains, the petition notes that each mountain block has its own specific geologic details. As a result, each valley below will have its own unique soil profile. The soils within the proposed Willcox AVA are predominately loams comprised of sand, silt, and clay in relatively even proportions. The petition included a list of the 30 soil series that, together, comprise 80 percent of the soils of the proposed Willcox AVA. Of these 30 soil series, 20 are specifically loams. The Tubac, Sonoita, Forrest, and Frye soils are the most common soils on which viticulture occurs within the proposed AVA and are all classified as loamy soils. These soils are described as slightly acidic in the first 9 to 12 inches of the soil profile, with a gradually increasing alkalinity below that to a depth of 5 feet.
According to the petition, loams generally contain high levels of nutrients. For this reason, loams are not typically preferred for vineyards, because high levels of nutrients can cause overly vigorous vine and leaf growth. However, the petition notes that the stress placed on the vines by the hot, dry climate of the proposed AVA keeps vine and leaf growth in check, so there is little chance the vines will grow too vigorously.
Loamy soils also retain adequate amounts of water to hydrate vineyards while allowing excess water to percolate quickly through the loamy soils and into the aquifer. Because vineyard owners within the proposed AVA rely primarily on the aquifer for irrigation, soils that both retain water and allow for quick recharging of the aquifer are beneficial.
Only 11 of the 30 most common soils found in the proposed Willcox AVA comprise at least one tenth of one percent of the total soils found in at least one of the surrounding regions. Together, these 11 soils represent approximately 30 percent of all the soils within the proposed Willcox AVA. The following table shows the percentage of soil each of these 11 soils comprises in the proposed AVA and the surrounding areas. All 30 of the soils are included in Exhibits 30 and 31 to the petition, which are posted as part of Docket TTB-2016-0002.
The table shows that the regions to the north, south, east, and southwest of the proposed AVA all contain smaller percentages of these 11 soils. The exception is the region to the southeast of the proposed AVA, which contains only 4 of the 30 primary soils of the proposed AVA but has a larger percentage of those 4 soils. Frye soils, which are among the most prevalent soil series of the proposed AVA, are not included in this table because they comprise less than one tenth of one percent of the total soils in any of the surrounding regions.
Southeastern Arizona, including the region of the proposed Willcox AVA, is generally considered to have an arid climate. Annual precipitation amounts in the region are very low. According to the petition, slight amounts of rain may fall at the end of winter, when the vines
Annual growing season precipitation amounts within the proposed Willcox AVA are higher than those of all the stations in the surrounding areas except the Chiricahua Mountains and Benson. The petition states that rainfall amounts are higher in areas close to the mountains and foothills, such as the locations to the southeast and southwest of the proposed AVA, because the moisture-laden air cools as it rises over the hills and eventually reaches the point where it releases its moisture in the form of rain. As the storms move beyond the mountains and foothills, they begin to weaken and dissipate.
Throughout the region of the proposed AVA, temperatures are affected by elevation. The warmest temperatures are typically in areas with low elevations. The warmest daytime high temperatures typically occur in June and are accompanied by strong afternoon winds. The following table shows the average annual growing season highs for a weather station located within the proposed AVA and the closest weather stations in the surrounding areas. Because elevation plays a role in the climate in the region, the average elevation of each location is also included.
The data shows that annual growing season high temperatures within the proposed Willcox AVA are lower than those in four of the six surrounding regions. The four regions are all at significantly lower elevations than the proposed AVA. Temperatures in Douglas, AZ, which is at a similar elevation to the proposed AVA, are nearly identical to those of the proposed AVA. Of the six surrounding weather stations, the station within the Chiricahua Mountains, adjacent to the southeastern boundary of the proposed AVA, is at the highest elevation and, as a result, has the lowest average high temperature.
The data in the table shows that during the months of May and June, temperatures within the proposed Willcox AVA are noticeably lower than in all of the surrounding regions, with the exception of the higher elevations of
The climate of the proposed Willcox AVA affects viticulture. The hot temperatures, combined with extremely dry air for much of the growing season, put heavy stress on the vines. In order to preserve water, the vines close the stoma on their leaves during the hottest parts of the day, especially when temperatures rise above 90 degrees Fahrenheit. When the stoma are closed, however, photosynthesis slows considerably, preventing the plant from producing food efficiently. As a result, fruit development and maturation is delayed. The lack of cloud cover for most of the growing season puts the grapes at risk for sunburn. So vineyard owners within the proposed AVA manage canopy levels to provide shelter for the fruit. Although the rainfall amounts during the monsoonal season are not heavy enough to eliminate the need for irrigation, the rains do provide some relief for the vines and also replenish the aquifer, which is the only source of water within the closed basin system that forms the proposed AVA. Additionally, the monsoon season brings relief to the vines in the form of higher humidity levels, which allow the stoma to remain open longer and produce food for the vine during the peak period of fruit development. Finally, the increased cloud cover during the monsoon season lowers temperatures slightly and provides the maturing grapes some protection from sunburn.
In summary, the evidence provided in the petition indicates that the viticulturally significant geographic features of the proposed Willcox AVA distinguish it from the surrounding regions in each direction. With respect to topography, the proposed AVA is located within a flat valley that is part of a closed basin system. By contrast, the regions adjacent to the northern, eastern, and western boundaries of the proposed AVA are all marked by mountainous terrain with higher, steeper elevations. Beyond each of these mountain ranges are large valleys with lower elevations than the proposed AVA. These valleys are also all open basin systems, and the valley floors have all been eroded to varying degrees by flowing water. South of the proposed AVA is the lower-elevation Sulphur Springs Valley, which is also an open basin system.
The soils of the surrounding regions are primarily loams, as are the soils of the proposed Willcox AVA. However, the soil series that comprise the majority of the soils within the proposed AVA are generally present only in very small amounts outside the proposed AVA or, in some cases, are not present at all. The exception is the region to the southeast of the proposed AVA, where 4 of the 11 primary soil series of the proposed AVA are found in higher amounts.
The climate of the proposed Willcox AVA is hot and arid like much of the surrounding regions. However, growing season high temperatures within the proposed AVA are lower than those of most of the surrounding region, notably during the months of May and June. The exception is within the higher elevations of the Chiricahua Mountains, where growing season temperatures are generally lower than within the proposed AVA. Annual rainfall amounts within the proposed AVA are higher than those of the surrounding regions, with the exception of the foothill regions to the southeast and southwest of the proposed AVA.
TTB concludes that the petition to establish the approximately 526,000-acre Willcox AVA merits consideration and public comment, as invited in this proposed rule.
See the narrative description of the boundary of the petitioned-for AVA in the proposed regulatory text published at the end of this proposed rule.
The petitioner provided the required maps, and they are listed below in the proposed regulatory text.
Part 4 of the TTB regulations prohibits any label reference on a wine that indicates or implies an origin other than the wine's true place of origin. For a wine to be labeled with an AVA name, at least 85 percent of the wine must be derived from grapes grown within the area represented by that name, and the wine must meet the other conditions listed in § 4.25(e)(3) of the TTB regulations (27 CFR 4.25(e)(3)). If the wine is not eligible for labeling with an AVA name and that name appears in the brand name, then the label is not in compliance and the bottler must change the brand name and obtain approval of a new label. Similarly, if the AVA name appears in another reference on the label in a misleading manner, the bottler would have to obtain approval of a new label. Different rules apply if a wine has a brand name containing an AVA name that was used as a brand name on a label approved before July 7, 1986. See § 4.39(i)(2) of the TTB regulations (27 CFR 4.39(i)(2)) for details.
If TTB establishes this proposed AVA, its name, “Willcox,” will be recognized as a name of viticultural significance under § 4.39(i)(3) of the TTB regulations (27 CFR 4.39(i)(3)). The text of the proposed regulation clarifies this point. Consequently, if this proposed rule is adopted as a final rule, wine bottlers using the name “Willcox” in a brand name, including a trademark, or in another label reference as to the origin of the wine, would have to ensure that the product is eligible to use the AVA name as an appellation of origin.
TTB invites comments from interested members of the public on whether it should establish the proposed AVA. TTB is also interested in receiving comments on the sufficiency and accuracy of the name, boundary, soils, climate, and other required information submitted in support of the petition. Please provide any available specific information in support of your comments.
Because of the potential impact of the establishment of the proposed Willcox AVA on wine labels that include the term “Willcox,” as discussed above under Impact on Current Wine Labels, TTB is particularly interested in comments regarding whether there will be a conflict between the proposed area name and currently used brand names. If a commenter believes that a conflict will arise, the comment should describe the nature of that conflict, including any anticipated negative economic impact that approval of the proposed AVA will have on an existing viticultural enterprise. TTB is also interested in receiving suggestions for ways to avoid conflicts, for example, by adopting a modified or different name for the AVA.
You may submit comments on this proposed rule by using one of the
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Please submit your comments by the closing date shown above in this proposed rule. Your comments must reference Notice No. 157 and include your name and mailing address. Your comments also must be made in English, be legible, and be written in language acceptable for public disclosure. TTB does not acknowledge receipt of comments, and TTB considers all comments as originals.
In your comment, please clearly indicate if you are commenting on your own behalf or on behalf of an association, business, or other entity. If you are commenting on behalf of an entity, your comment must include the entity's name, as well as your name and position title. If you comment via Regulations.gov, please enter the entity's name in the “Organization” blank of the online comment form. If you comment via postal mail or hand delivery/courier, please submit your entity's comment on letterhead.
You may also write to the Administrator before the comment closing date to ask for a public hearing. The Administrator reserves the right to determine whether to hold a public hearing.
All submitted comments and attachments are part of the public record and subject to disclosure. Do not enclose any material in your comments that you consider to be confidential or inappropriate for public disclosure.
TTB will post, and you may view, copies of this proposed rule, selected supporting materials, and any online or mailed comments received about this proposal within Docket No. TTB-2016-0002 on the Federal e-rulemaking portal, Regulations.gov, at
All posted comments will display the commenter's name, organization (if any), city, and State, and, in the case of mailed comments, all address information, including email addresses. TTB may omit voluminous attachments or material that the Bureau considers unsuitable for posting.
You may also view copies of this proposed rule, all related petitions, maps and other supporting materials, and any electronic or mailed comments that TTB receives about this proposal by appointment at the TTB Information Resource Center, 1310 G Street NW., Washington, DC 20005. You may also obtain copies at 20 cents per 8.5- x 11-inch page. Please note that TTB is unable to provide copies of USGS maps or other similarly-sized documents that may be included as part of the AVA petition. Contact TTB's information specialist at the above address or by telephone at 202-453-2270 to schedule an appointment or to request copies of comments or other materials.
TTB certifies that this proposed regulation, if adopted, would not have a significant economic impact on a substantial number of small entities. The proposed regulation imposes no new reporting, recordkeeping, or other administrative requirement. Any benefit derived from the use of an AVA name would be the result of a proprietor's efforts and consumer acceptance of wines from that area. Therefore, no regulatory flexibility analysis is required.
It has been determined that this proposed rule is not a significant regulatory action as defined by Executive Order 12866 of September 30, 1993. Therefore, no regulatory assessment is required.
Karen A. Thornton of the Regulations and Rulings Division drafted this proposed rule.
Wine.
For the reasons discussed in the preamble, TTB proposes to amend title 27, chapter I, part 9, Code of Federal Regulations, as follows:
27 U.S.C. 205.
(a)
(b)
(1) Fort Grant, AZ, 1996;
(2) West of Greasewood Mountain, AZ, 1996;
(3) Greasewood Mountain, AZ, 1996;
(4) Willcox North, AZ, 1996;
(5) Railroad Pass, Ariz., 1979;
(6) Simmons Peak, AZ, 1996;
(7) Dos Cabezas, AZ, 1996;
(8) Pat Hills North, Ariz., 1974;
(9) Pat Hills South, Ariona, 1986 provisional edition;
(10) Sulphur Hills, AZ, 1996;
(11) Pearce, AZ., 1996;
(12) Turquoise Mountain, AZ, 1996;
(13) Black Diamond Peak, AZ, 1996;
(14) Cochise Stronghold, AZ, 1996;
(15) Cochise, AZ, 1996;
(16) Red Bird Hills, AZ, 1996;
(17) Steele Hills, AZ, 1996;
(18) Square Mountain, AZ, 1996;
(19) Muskhog Mountain, AZ, 1996;
(20) Reiley Peak, AZ, 1996; and
(21) Sierra Bonita Ranch, Ariz., 1972.
(c)
(1) The beginning point is on the Fort Grant map at the intersection of State
(2) Proceed east in a straight line approximately 5 miles to Interstate Highway 10 near the community of Raso, section 1, T13S/R25E; then
(3) Proceed south in a straight line approximately 0.8 mile to the 4,400-foot elevation contour, section 1, T13S/R25E; then
(4) Proceed southwesterly along the 4,400-foot elevation contour around the west end of the Dos Cabezas Mountains and continue southeasterly along the 4,400-foot elevation contour for a total of approximately 13.3 miles, crossing over the Railroad Pass map and onto the Simmons Peak map, to State Highway 186 on the Simmons Peak map, section 28, T14S/R26E; then
(5) Proceed south-southeast in a straight line approximately 15.8 miles, crossing over the Dos Cabezas map and onto the Pat Hills North map, to the intersection of the 4,700-foot elevation contour and an unnamed light-duty road known locally as East Creasey Ranch Road on the Pat Hills North map near BM 4,695, section 21, T16S/R28E; then
(6) Proceed southerly along the 4,700-foot elevation contour approximately 10.6 miles, crossing onto the Pat Hills South map, to an unnamed light-duty road known locally as East Uncle Curtis Lane, section 7, T18S/R28E; then
(7) Proceed west along East Uncle Curtis Lane approximately 0.5 mile to an unnamed light-duty road known locally as South Single Tree Lane near the marked 4,664-foot elevation point, section 7, T18S/R28E; then
(8) Proceed south along South Single Tree Lane approximately 0.5 mile to State Highway 181, section 7, T18S/R28E; then
(9) Proceed west along State Highway 181 approximately 9.9 miles, crossing onto the Sulphur Hills map, to State Highway 191, section 10, T18S/R26E; then
(10) Proceed north-northeasterly, then west, along State Highway 191 approximately 4.8 miles, crossing onto the Pearce map, to an unnamed light-duty road known locally as Kansas Settlement Road, near BM 4,327, section 36, T17S/R25E; then
(11) Proceed southwest in a straight line approximately 8.9 miles, crossing over the Turquoise Mountain map and onto the Black Diamond Peak map, to the southeastern-most corner of the boundary of the Coronado National Forest on the Black Diamond Peak map, section 35, T18S/R24E; then
(12) Proceed north along the boundary of the Coronado National Forest approximately 2 miles to the marked 4,821-foot elevation point, section 26, T18S/R24E; then
(13) Proceed north-northwest in a straight line approximately 13 miles, crossing over the Cochise Stronghold map and onto the Cochise map, to the northeastern corner of the boundary of the Coronado National Forest at the marked 4,642 elevation point on the Cochise map, section 26, T16S/R23E; then
(14) Proceed north-northwest in a straight line approximately 1.2 miles to the intersection of the 4,450-foot elevation contour and an unnamed secondary highway known locally as West Dragoon Road, section 23, T16S/R23E; then
(15) Proceed north in a straight line approximately 1.3 miles to the 4,400-foot elevation contour, section 11, T16S/R23E; then
(16) Proceed generally northerly along the 4,400-foot elevation contour approximately 10 miles, crossing onto the Red Bird Hills map, to Interstate Highway 10, section 3, T15S/R23E; then
(17) Proceed north-northwest in a straight line approximately 5.8 miles, crossing onto the Steele Hills map, to the intersection of the 4,600-foot elevation contour and an unnamed light-duty road known locally as West Airport Road, section 7, T14S/R23E; then
(18) Proceed east-northeasterly, then easterly, then northerly, then easterly along West Airport Road approximately 7.2 miles, crossing back onto the Red Bird Hills map and then onto the Square Mountain map, to the 4,240-foot elevation contour east of BM 4,264, section 6, T14S/R24E; then
(19) Proceed north-northwest in a straight line approximately 20.5 miles, crossing over the Muskhog Mountain and Reiley Peak maps and onto the Sierra Bonita Ranch map, to the intersection of two unnamed light-duty roads known locally as West Ash Creek Road and South Wells Road, near BM 4,487 on the Sierra Bonita Ranch map, section 3, T11S/R22E; then
(20) Proceed generally northerly along South Wells Road to BM 4,502, then continuing northerly along the western fork of the road for a total of approximately 7.7 miles to an unnamed light-duty road known locally as Bonita Aravaipa Road, section 27, T9S/R22E; then
(21) Proceed east in a straight line approximately 8.2 miles, crossing onto the Fort Grant map, to the beginning point.
Coast Guard, DHS.
Notice of proposed rulemaking.
The Coast Guard proposes to update the final regulation that governs recurring special local regulations in the Seventh Coast Guard District. These regulations will apply to all recurring events held on navigable waters of the Seventh District, such as regattas, parades, and fireworks displays. This update is being proposed to ensure that all known recurring marine events are included in the final regulation and to allow respective Captains of the Port greater ease in enacting or modifying those portions of the regulation which apply to their respective areas.
Comments and related material must be received by the Coast Guard on or before February 22, 2016.
You may submit comments identified by docket number USCG-2013-0272 using the Federal eRulemaking Portal at
If you have questions about this proposed rulemaking, call or email Eugene Stratton, Coast Guard District Seven Waterways Management, (305) 415-6750, email
On January 25, 2008, 33 CFR 100.701 was published in the
33 U.S.C. 1233 provides the legal basis for the Coast Guard's authority to establish special local regulations. The purpose of the rule is to provide for the safety of life on the navigable waters of the Seventh Coast Guard District during recurring marine events.
The Coast Guard proposes to revise the list of permanent special regulations contained in 33 CFR 100.701 for recurring marine events within the geographic boundary of the Seventh Coast Guard District. In general, the Seventh Coast Guard District is comprised of the land areas and U.S. navigable waters adjacent to South Carolina, Georgia, Florida, and Puerto Rico. For a detailed description of the geographical area of the District and each Coast Guard Sector, please refer to 33 CFR 3.35.
At present, there are a great number of annually recurring marine events within the Seventh Coast Guard District. These events are currently listed in a single table, with no demarcation by which to easily identify specific events. This proposed change to the regulation includes breaking the table into seven distinct sections, one for each Captain of the Port (COTP) zone. Each event within each COTP section will be assigned a line number, which will result in each event being easily identifiable based on its location within a table and line and will make future editing or enforcement of any event a more streamlined process.
Additionally, the Coast Guard seeks to update the regulation to ensure that it accurately reflects all recurring events within the Seventh District, to include marine events which started on a recurring basis since the last revision of this regulation and any marine events which may have been left off of the last revision.
The proposed changes to this rule will reduce the administrative burden on the Coast Guard by ensuring all recurring events are represented in the table and by minimizing the need to duplicate the rulemaking process for repeat events. Additionally, when notices of enforcement are published for recurring events, these amendments will clarify the regulation and implications referenced. Generally, the public will be advised of these events and specific information, including exact dates, specific areas, and description of the regulated area, through Local Notice to Mariners and Broadcast Notice to Mariners. The notices will contain the following information:
(i) Name and sponsoring organization of event;
(ii) Expected number of participants;
(iii) Course of event;
(iv) Regulated area;
(v) Spectator Area, if applicable; and
(vi) Dates and times of event and enforcement of regulations.
The Coast Guard realizes that some large scale events, such as those with many participants or spectators, or those that could severely restrict navigation or pose a significant hazard, may still require separate special local regulations or safety zones that address the specific peculiarities of the event. In those situations, the Coast Guard will create special local regulations or safety zones specifically for the event, and those regulations will supersede the proposed regulations in this rulemaking. However, the Coast Guard believes that a majority of the events held on the waters of the Seventh Coast Guard District may be adequately regulated by the requirements of this proposed rule.
Due to the activities involved, the large number of participants and spectators present, and event locations, the Coast Guard has determined that the events listed in this rule could pose a risk to participants or waterway users if normal vessel traffic were to interfere with the event. Possible hazards include risks of participant injury or death resulting from near or actual contact with non-participant vessels transiting through the regulated areas. In order to protect the safety of all waterway users including event participants and spectators, this proposed rule would establish special local regulations for the time and location of each marine event.
This proposed rule will prevent vessels from entering, transiting, mooring or anchoring within areas specifically designated as regulated areas during the periods of enforcement unless authorized by the Captain of the Port, or designated Coast Guard Patrol Commander. A designated “Patrol Commander” includes Coast Guard commissioned, warrant, or petty officers who have been designated by the Captain of the Port to act on their behalf. Patrol Commanders may be augmented by local, State, or Federal officials authorized to act in support of the Coast Guard.
Only event sponsors, designated participants, and official patrol vessels will be allowed to enter regulated areas unless otherwise given permission by the Patrol Commander or the Captain of the Port. Spectators may be confined to a designated spectator area to view events. Spectators may contact the Coast Guard Patrol Commander to request permission to pass through the regulated area. If permission is granted, spectators must pass directly through the regulated area at safe speed and without loitering.
The Coast Guard proposes to revise 33 CFR 100.701 by adding 18 new recurring marine events as special local regulations listed in this section. Furthermore, the Coast Guard proposes to modify 14 existing regulated areas and remove 111 regulated areas that are no longer active.
We developed this proposed rule after considering numerous statutes and executive orders (E.O.s) related to rulemaking. Below we summarize our analyses based on a number of these statutes and E.O.s, and we discuss First Amendment rights of protestors.
E.O.s 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This NPRM has not been
This regulatory action determination is based on the following factors: (1) The regulations will be enforced for short, predefined periods of time; (2) persons and vessels may enter, transit through, anchor in or otherwise access the restricted areas with authorization from the respective Captains of the Port; (3) the Coast guard will provide advance notification of the regulations to the local community by issuing Notice of Enforcements, Broadcast Notice to Mariners, and Patrol Commanders. Moreover, in the majority of cases, vessels will be able to safely transit around restricted areas.
The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small entities.
While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section IV.A above this proposed rule would not have a significant economic impact on any vessel owner or operator.
If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this rule would have a significant economic impact on it, please submit a comment (see
Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this proposed rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the person listed in the
This proposed rule would not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).
A rule has implications for federalism under E.O. 13132, Federalism, if it has 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. We have analyzed this proposed rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in E.O. 13132.
Also, this proposed rule does not have tribal implications under E.O. 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. If you believe this proposed rule has implications for federalism or Indian tribes, please contact the person listed in the
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this proposed rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.
We have analyzed this proposed rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made a preliminary determination that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This proposed rule involves amending and republication of a table of recurring marine events for special regulations issued in conjunction with a regatta or marine parade. The events themselves are permitted by the Coast Guard before this regulation would be utilized and the permitting process involves a thorough environmental review. Normally such actions are categorically excluded from further review under paragraph 34(h) of Figure 2-1 of Commandant Instruction M16475.lD. A preliminary environmental analysis checklist and Categorical Exclusion Determination are available in the docket where indicated under
The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the
We view public participation as essential to effective rulemaking, and will consider all comments and material received during the comment period. Your comment can help shape the outcome of this rulemaking. If you submit a comment, please include the docket number for this rulemaking, indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation.
We encourage you to submit comments through the Federal eRulemaking Portal at
We accept anonymous comments. All comments received will be posted without change to
Documents mentioned in this NPRM as being available in the docket, and all public comments, will be in our online
Marine safety, Navigation (water), Reporting and recordkeeping requirements, Waterways.
For the reasons discussed in the preamble, the Coast Guard proposes to amend 33 CFR part 100 as follows:
33 U.S.C. 1233.
Fish and Wildlife Service, Interior.
Proposed rule; reopening of comment period.
We, the U.S. Fish and Wildlife Service (Service), announce the reopening of the public comment period on our September 2, 2003, proposed rule to remove the scarlet-chested parakeet (
We will consider comments received or postmarked on or before February 22, 2016. Comments submitted electronically using the Federal eRulemaking Portal (see
You may submit comments by one of the following methods:
(1)
(2)
We request that you send comments only by the methods described above. We will post all comments on
Janine Van Norman, Chief, Branch of Foreign Species, Ecological Services, U.S. Fish and Wildlife Service, MS: ES, 5275 Leesburg Pike, Falls Church, VA 22041-3803; telephone, 703-358-2171; facsimile, 703-358-1735. If you use a telecommunications device for the deaf (TDD), call the Federal Information Relay Service (FIRS) at 800-877-8339.
In our September 2, 2003 proposed rule (68 FR 52169), we proposed to remove the scarlet-chested parakeet (
For more information on previous Federal actions concerning the scarlet-chested and turquoise parakeet, or information regarding the species' biology, status, distribution, and habitat, refer to the proposed rule published in the
We will accept written comments and information during this reopened comment period on our proposal to remove the scarlet-chested parakeet (
If you submit a comment via
Comments and materials we receive, as well as supporting documentation we used in preparing the proposed listing, will be available for public inspection on
The primary authors of this notice are staff members in the Ecological Services Program, U.S. Fish and Wildlife Service, Falls Church, VA.
The authority for this action is the Endangered Species Act of 1973, as amended (16 U.S.C. 1531
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Notice of availability of fishery management plan amendment; request for comments.
The North Pacific Fishery Management Council (Council) has submitted Amendment 109 to the Fishery Management Plan for Groundfish of the Bering Sea and Aleutian Islands Management Area (FMP) to the Secretary of Commerce (Secretary) for review. If approved, Amendment 109 would amend the FMP to support increased participation in local small-scale groundfish fisheries managed under the Western Alaska Community Development Quota (CDQ) Program. Specifically, Amendment 109 would amend the description of observer coverage requirements in the FMP to allow catcher vessels less than or equal to 46 feet (ft) (14.0 meters (m)) length overall (LOA) using hook-and-line gear to be placed in the partial observer coverage category when groundfish CDQ fishing. In addition, Amendment 109 would exempt operators of registered catcher vessels greater than 32 ft (9.8 m) LOA and less than or equal to 46 ft LOA using hook-and-line gear from the requirement to obtain and carry a License Limitation Program (LLP) license when conducting groundfish CDQ fishing. Amendment 109 also would update descriptive information about the CDQ Program in the FMP and make several editorial revisions. The objective of Amendment 109 is to facilitate increased participation by residents of CDQ communities in the groundfish CDQ fisheries in the Bering Sea and Aleutian Islands Management Area (BSAI), and to support economic development in western Alaska. This action would benefit the six CDQ groups and the operators of local small hook-and-line catcher vessels that the CDQ groups authorize to participate in the groundfish CDQ fisheries by reducing the costs of participating in those fisheries.
Submit comments on or before March 21, 2016.
You may submit comments on this document, identified by NOAA-NMFS-2015-0060, by any of the following methods:
• Electronic Submission: Submit all electronic public comments via the Federal eRulemaking Portal. Go to
• Mail: Submit written comments to Glenn Merrill, Assistant Regional Administrator, Sustainable Fisheries Division, Alaska Region NMFS, Attn: Ellen Sebastian. Mail comments to P. O. Box 21668, Juneau, AK 99802-1668.
Instructions: Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered by NMFS. All comments received are a part of the public record and will generally be posted for public viewing on
Electronic copies of the Regulatory Impact Review/Initial Regulatory Flexibility Analysis/Environmental Assessment prepared for this action (collectively the “Analysis”) are available from
Sally Bibb, 907-586-7389.
The Magnuson-Stevens Fishery and Conservation Act (Magnuson-Stevens Act) in section 304(a) requires that each regional fishery management council submit an amendment to a fishery management plan for review and approval, disapproval, or partial approval by the Secretary. The Magnuson-Stevens Act in section 304(a) also requires that the Secretary, upon receiving an amendment to a fishery management plan, immediately publish a notice in the
Amendment 109 to the FMP was adopted by the Council in February 2015. The objective of Amendment 109 is to facilitate increased participation by residents of CDQ communities in the groundfish CDQ fisheries in the BSAI, thereby supporting economic development in western Alaska. This action would benefit the six CDQ groups and the operators of local small hook-and-line catcher vessels that the CDQ groups authorize to participate in the groundfish CDQ fisheries by reducing the costs of participating in those fisheries.
If approved by the Secretary, Amendment 109 would amend Section 3.2.4.1 of the FMP to revise the description of observer coverage requirements to allow catcher vessels less than or equal to 46 ft LOA using hook-and-line gear to be placed in the partial observer coverage category when groundfish CDQ fishing, and make several editorial revisions. The editorial revisions to Section 3.2.4.1 would replace the terms “<100% observer coverage” and “≥100% observer coverage” with the more accurate terms “partial observer coverage category” and “full observer coverage category,” and correct capitalization and grammatical errors. In addition, Amendment 109 would amend Section 3.3.1 of the FMP to add registered catcher vessels greater than 32 ft LOA and less than or equal to 46 ft LOA using hook-and-line gear when groundfish CDQ fishing to the list of exemptions from the LLP license requirements. Amendment 109 also would update descriptive information about the CDQ Program in Section 4.5.4 of the FMP, and make other miscellaneous revisions to the FMP consistent with these amendments.
The CDQ Program is an economic development program associated with federally managed fisheries in the BSAI. The purpose of the CDQ Program is to provide western Alaska communities with the opportunity to participate and invest in BSAI fisheries, to support economic development in western Alaska, to alleviate poverty and provide economic and social benefits for residents of western Alaska, and to achieve sustainable and diversified local economies in western Alaska. Regulations establishing the CDQ Program were first implemented in 1992. Congress amended the Magnuson-Stevens Act in 1996 through the Sustainable Fisheries Act (Public Law 104-297) to include specific provisions governing the CDQ Program.
The CDQ Program also is a catch share program that allocates a portion of the BSAI total allowable catch limits for specific target crab and groundfish species, a portion of the commercial catch limits for halibut assigned by the International Pacific Halibut Commission, and portions of certain prohibited species catch (PSC) limits to the CDQ Program, referred to as prohibited species quota (PSQ). These amounts are then further allocated among the six CDQ groups as allocations that may be transferred among the CDQ groups (with the exception of Chinook salmon PSQ, which may be transferred to other authorized American Fisheries Act entities). The primary focus of Amendment 109 is on the halibut CDQ allocations, the Pacific cod CDQ allocations, and allocations of the halibut PSQ needed to support the Pacific cod CDQ fisheries.
There are 65 communities eligible to participate in the CDQ Program. Each community is represented by one of the six CDQ groups. The 65 eligible communities and the CDQ groups are identified in the Magnuson-Stevens Act at section 305(i)(1)(D) and in Table 7 to 50 CFR part 679. CDQ groups use the revenue derived from the harvest of their fisheries allocations as a basis for funding economic development activities and for providing employment opportunities. The successful harvest of CDQ Program allocations is integral to achieving the goals of the CDQ Program and the community development plans of each CDQ group. One of the most effective ways the CDQ groups provide benefits to residents of their CDQ communities is to use the CDQ allocations to create local small-scale commercial fisheries. For purposes of this notice, “local small-scale” means CDQ fisheries prosecuted by catcher vessels that are less than or equal to 46 ft LOA, using hook-and-line gear, and homeported or operated from CDQ communities. These local small-scale CDQ fisheries provide opportunities for residents of the CDQ communities to earn income from the sale of the commercially harvested fish.
In October 2013, the Council received a proposal from the representatives of all six of the CDQ groups to revise certain Federal regulations that restrict the ability of fishermen in CDQ communities to harvest allocations of Pacific cod CDQ with small hook-and-line catcher vessels. In particular, representatives for the CDQ groups identified full observer coverage and LLP license requirements as limitations on the ability of CDQ community fishermen to retain Pacific cod CDQ when participating in the halibut CDQ fisheries or to develop separate local small-scale directed fisheries for Pacific cod CDQ. In addition, the representatives reported that recent declines in halibut CDQ allocations could prevent the CDQ Program from meeting its economic development objectives, and the ability to develop a local small-scale Pacific cod CDQ fishery would help to offset the lost halibut harvesting and processing opportunities in the CDQ communities.
The Council considered the CDQ groups' proposal and examined several alternative ways to implement it, ultimately adopting its preferred alternative in February 2015. The Council's preferred alternative would 1) place catcher vessels less than or equal to 46 ft LOA using hook-and-line gear in the partial observer coverage category when they are groundfish CDQ fishing; 2) exempt operators of registered catcher vessels greater than 32 ft LOA and less than or equal to 46 ft LOA using hook-and-line gear from the requirement to obtain and carry an LLP license when groundfish CDQ fishing (catcher vessels less than or equal to 32 ft LOA already are exempt from the LLP requirements in the BSAI); 3) allow halibut caught by operators of catcher vessels less than or equal to 46 ft LOA using hook-and-line gear when groundfish CDQ fishing to accrue as either halibut CDQ, halibut individual fishing quota, or halibut PSC, on a trip-by-trip basis; and 4) implement new in-season management and catch accounting procedures to properly account for the harvest of groundfish and halibut and the accrual of halibut PSC by operators of catcher vessels less than or equal to 46 ft LOA using hook-and-line gear when halibut or groundfish CDQ fishing.
The Council's proposed revisions to the observer coverage and LLP license requirements require both an FMP amendment (Amendment 109) and regulatory amendments to regulations implementing the FMP at 50 CFR part 679. The remaining elements of the Council's preferred alternative require only regulatory amendments for implementation. The forthcoming proposed rule to implement Amendment 109 and the regulatory amendments recommended by the Council also would revise regulations at 50 CFR part 679 to make miscellaneous editorial revisions to 50 CFR part 679. All of the proposed changes to the regulations will be described in detail in the proposed rule.
The Council's preferred alternative is intended to provide a regulatory structure for the harvest of groundfish CDQ that provides opportunities for the
Amendment 109 would place hook-and-line catcher vessels less than or equal to 46 ft LOA that are groundfish CDQ fishing in the partial observer coverage category. This proposed change would remove a significant financial and operational barrier to further development of the small vessel groundfish CDQ fisheries. In making this recommendation, the Council recognized that it is likely that few CDQ small vessels would be required to carry an observer under the existing partial observer coverage deployment strategy and deployment rates for vessels within the partial observer coverage category. To establish effective catch accounting for hook-and-line catcher vessels less than or equal to 46 ft LOA that are groundfish CDQ fishing, the Council recommended that NMFS modify its catch accounting procedures and use estimates of halibut PSC and other at-sea discards for these small vessels based on the best available observer data collected from observed vessels. These recommended revisions are described in more detail in the Analysis and the forthcoming proposed rule for Amendment 109.
The Council determined that a new LLP exemption for registered hook-and-line catcher vessels greater than 32 ft LOA and less than or equal to 46 ft LOA when groundfish CDQ fishing was necessary to encourage the retention and sale of groundfish CDQ in the halibut fisheries and to encourage the development of directed fisheries for groundfish CDQ by vessel operators delivering catch to processors located in CDQ communities. Exemption from the LLP would remove a barrier created by the limited number of LLP licenses available for small hook-and-line catcher vessels fishing on behalf of a CDQ group. The Council determined that this limited exemption to the LLP license requirements would not undermine the objectives of the LLP because it would apply only to registered small catcher vessels when groundfish CDQ fishing. Because the CDQ groups receive specific harvest allocations, the Council determined that providing a limited exemption to registered catcher vessels greater than 32 ft LOA and less than or equal to 46 ft LOA when groundfish CDQ fishing would not result in increased harvests overall in the BSAI groundfish fisheries, or contribute to a “race for fish” among fishery participants.
NMFS is soliciting public comments on proposed Amendment 109 through the end of the comment period (see
16 U.S.C. 1801
United States African Development Foundation.
Notice of meeting.
The US African Development Foundation (USADF) will hold its quarterly meeting of the Board of Directors to discuss the agency's programs and administration.
The meeting date is Tuesday, February 2, 2016, 10:00 a.m. to 12:00 p.m.
The meeting location is OPIC, 1100 New York Ave. NW., Washington, DC 20527.
Julia Lingham, 202-233-8811.
Public Law 96-533 (22 U.S.C. 290h).
Rural Housing Service, USDA.
Proposed collection; comments requested.
In accordance with the Paperwork Reduction Act of 1995, this notice announces the Rural Housing Agency's (RHS) intention to request an extension of a currently approved information collection in support of the program for 7 CFR part 1951, subpart F, “Analyzing Credit Needs and Graduation of Borrowers.”
Comments on this notice must be received by March 21, 2016, to be assured of consideration.
Anita Outen, Community Programs, Rural Housing Service, U.S. Department of Agriculture, Stop 0787, 1400 Independence Ave. SW., Washington, DC 20250-0787, Telephone (202) 720-1507, Email: Anita.
Copies of this information collection can be obtained from Jeanne Jacobs, Regulations and Paperwork Management Branch, at (202) 692-0040.
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.
On November 3, 2015, the Executive Secretary of the Foreign-Trade Zones (FTZ) Board docketed an application submitted by the Bridgeport Port Authority, grantee of FTZ 76, requesting subzone status subject to the existing activation limit of FTZ 76, on behalf of MannKind Corporation in Danbury, Connecticut.
The application was processed in accordance with the FTZ Act and Regulations, including notice in the
Pursuant to the authority delegated to the FTZ Board's Executive Secretary (15 CFR 400.36(f)), the application to establish Subzone 76B is approved, subject to the FTZ Act and the Board's regulations, including Section 400.13, and further subject to FTZ 76's 476-acre activation limit.
Bureau of Industry and Security, Department of Commerce.
Notice.
The Department of Commerce, 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.
Written comments must be submitted on or before March 21, 2016.
Direct all written comments to Jennifer Jessup, Departmental Paperwork Clearance Officer, Department of Commerce, Room 6616, 14th and Constitution Avenue NW., Washington, DC 20230 (or via the Internet at
Requests for additional information or copies of the information collection instrument and instructions should be directed to Mark Crace, BIS ICB Liaison, (202) 482-8093,
The Chemical Weapons Convention Implementation Act of 1998 and Commerce Chemical Weapons Convention Regulations (CWCR) specify the rights, responsibilities and obligations for submission of declarations and reports and inspections of certain chemical facilities. This information is required for the United States to comply with the Chemical Weapons Convention (CWC), an international arms control treaty.
Submitted electronically or on paper.
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 (including hours and cost) 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.
Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval of this information collection; they also will become a matter of public record.
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Notice; proposed incidental harassment authorization; request for comments and information.
NMFS has received a request from the Washington State Department of Transportation (WSDOT) for an authorization to take small numbers of 10 species of marine mammals, by Level B harassment, incidental to proposed construction activities for the Coupeville Timber Tower Preservation Project in Washington State. Pursuant to the Marine Mammal Protection Act (MMPA), NMFS is requesting comments on its proposal to issue an authorization to WDOT to incidentally take, by harassment, small numbers of marine mammals for a period of 1 year.
Comments and information must be received no later than February 22, 2016.
Comments on the application should be addressed to Jolie Harrison, Chief, Permits and Conservation Division, Office of Protected Resources, National Marine Fisheries Service, 1315 East-West Highway, Silver Spring, MD 20910. The mailbox address for providing email comments is
A copy of the application may be obtained by writing to the address specified above or visiting the internet at:
Shane Guan, Office of Protected Resources, NMFS, (301) 427-8401.
Sections 101(a)(5)(A) and (D) of the MMPA (16 U.S.C. 1361
An authorization for incidental takings shall be granted if NMFS finds that the taking will have a negligible impact on the species or stock(s), will not have an unmitigable adverse impact on the availability of the species or stock(s) for subsistence uses (where relevant), and if the permissible methods of taking and requirements pertaining to the mitigation, monitoring and reporting of such takings are set forth. NMFS has defined “negligible impact” in 50 CFR 216.103 as “...an impact resulting from the specified activity that cannot be reasonably expected to, and is not reasonably likely to, adversely affect the species or stock through effects on annual rates of recruitment or survival.”
Section 101(a)(5)(D) of the MMPA established an expedited process by which citizens of the U.S. can apply for a one-year authorization to incidentally take small numbers of marine mammals by harassment, provided that there is no potential for serious injury or mortality to result from the activity. Section 101(a)(5)(D) establishes a 45-day time limit for NMFS review of an application followed by a 30-day public notice and comment period on any proposed authorizations for the incidental harassment of marine mammals. Within 45 days of the close of the comment period, NMFS must either issue or deny the authorization.
On June 9, 2015, WSDOT submitted a request to NOAA requesting an IHA for the possible harassment of small numbers of marine mammal species incidental to construction associated with the Coupeville Timber Towers Preservation Project at the Coupeville Ferry Terminal in Washington State, between July 15, 2016, and July 14, 2017. On September 22, WSDOT submitted a revised IHA application which incorporated rigorous monitoring and mitigation measures that would prevent the take of humpback whales and the Southern Resident killer whales, which are listed under the Endangered Species Act (ESA). The revised IHA application requests the take of small numbers of 10 marine mammal species incidental to the Coupeville Timber Towers Preservation Project. NMFS determined that the IHA application was complete on October 1, 2015. NMFS is proposing to authorize the Level B harassment of the following marine mammal species/stocks: harbor seal, California sea lion, Steller sea lion (eastern Distinct Population Segment, or DPS), northern elephant seal, killer whale (West Coast transient stock), gray whale, minke whale, harbor porpoise, Dall's porpoise, and Pacific white-sided dolphin.
WSDOT proposes to conduct Coupeville Timber Towers Preservation Project at the Washington Coupeville Ferry Terminal on Whidbey Island, Washington (Figure 1-2 of the IHA application), to upgrade the existing transfer span towers at the Coupeville Ferry Terminal.
Eight 24-inch diameter hollow steel piles would be installed to support the towers, and concrete caps will be installed on top of the towers in order to support the headframe that houses the pulleys for the transfer span cables. Five to seven 12-inch timber piles would be removed to allow room for the new steel piles to be installed. The remaining tower timber piles would remain in place to help support the structure. Up to 6 temporary 24-inch diameter hollow steel piles would be installed to support the transfer span and towers cable systems during construction. All pile installation would be using impact pile driving.
Temporary steel piles would be removed with a vibratory hammer. Timber piles would be removed with a vibratory hammer or by direct pull using a chain wrapped around the pile. Although timber piles may be removed by means unlikely to result in harassment of marine mammals, we assume for purposes of this analysis that all timber piles would be removed with a vibratory hammer. The crane operator would take measures to reduce turbidity, such as vibrating the pile slightly to break the bond between the pile and surrounding soil, and removing the pile slowly; or if using direct pull, keep the rate at which piles are removed low enough to meet regulatory turbidity limit requirements. If piles are so deteriorated they cannot be removed using either the vibratory or direct pull method, the operator would use a clamshell to pull the piles from below the mudline. All work would occur in water depths between -10 and -20 feet mean lower-low water.
The number of days it would take to complete the project depends on the difficulty in removing and installing piles. Only one hammer (either vibratory or impact) will be in operation at a time. Durations are conservative, and the actual amount of time to remove and install will likely be less. Duration estimates are:
Vibratory removal of timber piles would take approximately 30 minutes per pile, with 5-7 piles removed over two days.
Impact driving of each temporary 24-inch steel pile would take approximately 15 minutes, (approximately 700 strikes per pile), with up to 6 piles installed over 2 days. Temporary piles do not need to be impacted as deep as permanent piles, therefore the duration is shorter.
Impact driving of each permanent 24-inch steel pile would take approximately 30 minutes, (approximately 1,400 strikes per pile), with 8 piles installed over 2 days.
Vibratory removal of each temporary 24-inch steel pile would take approximately 30 minutes, with up to 6 piles removed over 2 days.
A summary of the pile to be removed and installed is provided in Table 1.
The proposed Coupeville Timber Towers Preservation Project would be conducted at the Coupeville Ferry Terminal, located on Whidbey Island, Island County, Washington (Figure 1-2 of the IHA application). See WSDOT's application for further information regarding the specified geographic region.
The following construction sequence is anticipated:
Detailed descriptions of these activities are provided below.
Vibratory hammer extraction is a common method for removing timber and steel piling. A vibratory hammer is suspended by cable from a crane and derrick, and positioned on the top of a pile. The pile is then unseated from the sediments by engaging the hammer, creating a vibration that loosens the sediments binding the pile, and then slowly lifting up on the hammer with the aid of the crane.
Once unseated, the crane continues to raise the hammer and pulls the pile from the sediment. When the pile is released from the sediment, the vibratory hammer is disengaged and the pile is pulled from the water and placed on a barge for transfer upland. Figure 1-4 shows a timber pile being removed with a vibratory hammer.
Older timber pilings are prone to breaking at the mudline because of damage from marine borers and vessel impacts. In some cases, removal with a vibratory hammer is not possible if the pile is too fragile to withstand the hammer force. Broken or damaged piles may be removed by wrapping the piles with a cable and pulling them directly from the sediment with a crane.
If the piles break below the waterline, the pile stubs will be removed with a clamshell bucket, a hinged steel apparatus that operates like a set of steel jaws. The bucket will be lowered from a crane and the jaws will grasp the pile stub as the crane pulled up. The broken piling and stubs will be loaded onto the barge for off-site disposal. Clamshell removal will be used only if necessary, as it will produce temporary, localized turbidity impacts. Turbidity will be kept within required regulatory limits. Direct pull and clamshell removal do not produce noise that could impact marine mammals. Direct pull and clamshell removal of piles are not expected to affect marine mammals.
Impact hammers can be used to install plastic/steel core, wood, concrete, or steel piles. An impact hammer is a steel device that works like a piston. Impact hammers are usually large, though small impact hammers are used to install small diameter plastic/steel core piles. Impact hammers have guides (called a lead) that hold the hammer in alignment with the pile while a heavy piston moves up and down, striking the top of the pile, and drives it into the substrate from the downward force of the hammer on the top of the pile.
To drive the pile, the pile is first moved into position and set in the proper location using a choker cable or vibratory hammer. Once the pile is set in place, pile installation with an impact hammer can take less than 15 minutes under good conditions, to over an hour under poor conditions (such as glacial till and bedrock, or exceptionally loose material in which the pile repeatedly moves out of position).
The marine mammal species under NMFS jurisdiction most likely to occur in the proposed construction area include Pacific harbor seal (
General information on the marine mammal species found in Washington coastal waters can be found in Caretta
This section includes a summary and discussion of the ways that the types of stressors associated with the specified activity (
When considering the influence of various kinds of sound on the marine environment, it is necessary to understand that different kinds of marine life are sensitive to different frequencies of sound. Based on available behavioral data, audiograms have been derived using auditory evoked potentials, anatomical modeling, and other data, Southall
As mentioned previously in this document, 11 marine mammal species (7 cetacean and 4 pinniped species) are likely to occur in the proposed seismic survey area. Of the 7 cetacean species likely to occur in the proposed project area, 3 are classified as low-frequency cetaceans (
Marine mammals exposed to high-intensity sound repeatedly or for prolonged periods can experience hearing threshold shift (TS), which is the loss of hearing sensitivity at certain frequency ranges (Kastak
Experiments on a bottlenose dolphin (
Chronic exposure to excessive, though not high-intensity, noise could cause masking at particular frequencies for marine mammals that utilize sound for vital biological functions (Clark
Masking occurs at the frequency band which the animals utilize. Since noise generated from in-water vibratory pile removal and driving is mostly concentrated at low frequency ranges, it may have little effect on high-frequency echolocation sounds by odontocetes (toothed whales), which may hunt California sea lion and harbor seal. However, the lower frequency man-made noises are more likely to affect the detection of communication calls and other potentially important natural sounds, such as surf and prey noise. The noises may also affect communication signals when those signals occur near the noise band, and thus reduce the communication space of animals (
Unlike TS, masking can potentially impact the species at community, population, or even ecosystem levels, as well as individual levels. Masking affects both senders and receivers of the signals and could have long-term chronic effects on marine mammal species and populations. Recent science suggests that low frequency ambient sound levels in the world's oceans have increased by as much as 20 dB (more than 3 times, in terms of SPL) from pre-industrial periods, and most of these increases are from distant shipping (Hildebrand 2009). All anthropogenic noise sources, such as those from vessel traffic and pile removal and driving, contribute to the elevated ambient noise levels, thus intensifying masking.
Finally, in addition to TS and masking, exposure of marine mammals to certain sounds could lead to behavioral disturbance (Richardson
The activities of workers in the project area may also cause behavioral reactions by marine mammals, such as pinnipeds flushing from the jetty or pier or moving farther from the disturbance to forage. However, observations of the area show that it is unlikely that more than 10 to 20 individuals of pinnipeds would be present in the project vicinity at any one time. Therefore, even if pinnipeds were flushed from the haul-out, a stampede is very unlikely, due to the relatively low number of animals onsite. In addition, proposed mitigation and monitoring measures would minimize the startle behavior of pinnipeds and prevent the animals from flushing into the water.
The biological significance of many of these behavioral disturbances is difficult to predict, especially if the detected disturbances appear minor. However, the consequences of behavioral modification could be expected to be biologically significant if the change affects growth, survival, or reproduction. Some of these types of significant behavioral modifications include: Drastic change in diving/surfacing patterns (such as those thought to be causing beaked whale strandings due to exposure to military mid-frequency tactical sonar); habitat abandonment due to loss of desirable acoustic environment; and cessation of feeding or social interaction.
The primary potential impacts to marine mammal habitat are associated with elevated sound levels produced by vibratory pile removal and pile driving in the area. However, other potential impacts to the surrounding habitat from physical disturbance are also possible.
With regard to fish as a prey source for cetaceans and pinnipeds, fish are known to hear and react to sounds and to use sound to communicate (Tavolga
The level of sound at which a fish will react or alter its behavior is usually well above the detection level. Fish have been found to react to sounds when the sound level increased to about 20 dB above the detection level of 120 dB (Ona 1988); however, the response threshold can depend on the time of year and the fish's physiological condition (Engas
During the coastal construction only a small fraction of the available habitat would be ensonified at any given time. Disturbance to fish species would be short-term and fish would return to their pre-disturbance behavior once the pile driving activity ceases. Thus, the proposed construction would have little, if any, impact on the abilities of marine mammals to feed in the area where construction work is planned.
Finally, the time of the proposed construction activity would avoid the spawning season of the ESA-listed salmonid species.
Short-term turbidity is a water quality effect of most in-water work, including pile driving. WSDOT must comply with state water quality standards during these operations by limiting the extent of turbidity to the immediate project area.
Roni and Weitkamp (1996) monitored water quality parameters during a pier replacement project in Manchester, Washington. The study measured water quality before, during and after pile driving. The study found that construction activity at the site had “little or no effect on dissolved oxygen, water temperature and salinity”, and turbidity (measured in nephelometric turbidity units [NTU]) at all depths nearest the construction activity was typically less than 1 NTU higher than stations farther from the project area throughout construction.
Similar results were recorded during pile removal operations at two WSDOT ferry facilities. At the Friday Harbor terminal, localized turbidity levels (from three timber pile removal events) were generally less than 0.5 NTU higher than background levels and never exceeded 1 NTU. At the Eagle Harbor maintenance facility, local turbidity levels (from removal of timber and steel piles) did not exceed 0.2 NTU above background levels. In general, turbidity associated with pile installation is localized to about a 25-foot radius around the pile (Everitt
Cetaceans are not expected to be close enough to the Coupeville Ferry Terminal to experience turbidity, and any pinnipeds will be transiting the terminal area and could avoid localized areas of turbidity. Therefore, the impact from increased turbidity levels is
Pile removal and driving at the project site will not obstruct movements of marine mammals. Construction at Coupeville will occur within 35 m of the shoreline, leaving 5.5 km of Admiralty Inlet for marine mammals to pass unaffected by construction noise.
In order to issue an incidental take authorization under section 101(a)(5)(D) of the MMPA, NMFS must set forth the permissible methods of taking pursuant to such activity, and other means of effecting the least practicable adverse impact on such species or stock and its habitat, paying particular attention to rookeries, mating grounds, and areas of similar significance, and on the availability of such species or stock for taking for certain subsistence uses.
For WSDOT's proposed Coupeville Timber Towers Preservation Project, WSDOT worked with NMFS and proposed the following mitigation measures to minimize the potential impacts to marine mammals in the project vicinity. The primary purposes of these mitigation measures are to minimize sound levels from the activities, to monitor marine mammals within designated zones of influence (ZOI) corresponding to NMFS' current Level B harassment thresholds and, if marine mammals with the ZOI appear disturbed by the work activity, to initiate immediate shutdown or power down of the piling hammer, making it very unlikely potential injury or TTS to marine mammals would occur and ensuring that Level B behavioral harassment of marine mammals would be reduced to the lowest level practicable.
Work would occur only during daylight hours, when visual monitoring of marine mammals can be conducted. In addition, all in-water construction will be limited to the period between July 15, 2016, and February 15, 2017.
An air bubble curtain system or other noise attenuation device would be employed during impact installation or proofing of steel piles unless the piles are driven on dry areas.
Before the commencement of in-water pile driving activities, WSDOT would establish Level A exclusion zones and Level B zones of influence (ZOIs). The received underwater sound pressure levels (SPLs) within the exclusion zone would be 190 dB (rms) re 1 µPa and above for pinnipeds and 180 dB (rms) re 1 µPa and above for cetaceans. The Level B ZOIs would encompass areas where received underwater SPLs are higher than 160 dB (rms) and 120 dB (rms) re 1 µPa for impulse noise sources (impact pile driving) and non-impulse noise sources (vibratory pile removal), respectively.
Based on in-water measurements at the WSDOT Port Townsend Ferry Terminal (WSDOT 2011a), removal of 12-in timber piles generated 149 to 152 dB (rms) re 1 µPa with an overall average value of 150 dB (rms) re 1 µPa measured at 16 m. A worst-case noise level for vibratory removal of 12-in timber piles would be 152 dB (rms) re 1 µPa at 16 m.
Based on in-water measurements at the WSDOT Port Townsend Ferry terminal, impact pile driving of 24-in steel piles ranged from 172 to185 dB (rms) re 1 µPa measured at 10 m during the use of an air bubble curtain (WSDOT 2014a). An air bubble curtain would be used to attenuate steel pile impact driving noise during this project. A worst-case noise level for impact driving of 24-in steel piles would be 185 dB (rms) re 1 µPa at 10 m.
Data for vibratory removal of 24-inch temporary steel piles is not available, so it is conservatively assumed to be the same as vibratory driving. Based on in-water measurements at the same location as the activity considered here (previously known as the WSDOT Keystone Ferry Terminal), vibratory driving of 24-in steel piles ranged from 164 to 176 dB (rms) re 1 µPa with an overall average value of 171 dB (rms) re 1 µPa. Distances from hydrophone to pile ranged between 6 and 11 m (WSDOT 2010a). A worst-case noise level for vibratory removal of 24-in steel piles will be 176 dB (rms) re 1 µPa at 6 m.
Using a simple practical spreading model (sound transmission loss of 4.5dB per doubling distance) to determine the distance where underwater sound will attenuate to the 120 dB (rms) re 1 µPa threshold, the ZOIs are calculated below:
• 152 dB (rms) re 1 µPa at 16 m (12-in timber vibratory pile removal): ~2.3 km/1.4 mi
• 176 dB (rms) re 1 µPa at 6 m (24-in steel vibratory pile removal): ~32 km/20 mi (land is reached at ~31 km/19 mi)
The vibratory pile removal source levels do not exceed the Level A harassment criteria.
Using 185 dB (rms) re 1 µPa at 10 m for 24-in impact pile driving and the practical spreading loss model, the distances to the thresholds are calculated:
• the 190 dB (rms) re 1 µPa pinniped Level A harassment exclusion zone is reached within 5 m/15 ft.
• the 180 dB (rms) re 1 µPa cetacean Level A harassment exclusion zone is reached within 22 m/72 ft.
• the 160 dB (rms) re 1 µPa Level B ZOI is reached within 464 m/1,523 ft.
The more conservative cetacean injury zone (22 m/72 ft.) will be used to set the 24-inch steel Zone of Exclusion (ZOE).
A summary distances and areas of the exclusion zones for Level A harassment and ZOI for Level B harassment is provide in Table 3 below.
A “soft-start” technique is intended to allow marine mammals to vacate the area before the pile driver reaches full power. Whenever there has been downtime of 30 minutes or more without pile driving, the contractor will initiate the driving with ramp-up procedures.
For vibratory hammers, the contractor shall initiate the driving for 15 seconds
For impact driving, an initial set of three strikes would be made by the hammer at 40-percent energy, followed by a 1-minute waiting period, then two subsequent three-strike sets at 40-percent energy, with 1-minute waiting periods, before initiating continuous driving.
WSDOT shall implement shutdown if a marine mammal is sighted within or approaching the Level A exclusion zone. In-water construction activities shall be suspended until the marine mammal is sighted moving away from the exclusion zone, or if a large cetacean is not sighted for 30 minutes or if a small cetacean or pinniped is not sighted for 15 minutes after the shutdown.
In addition, WSDOT would implement shutdown measure when Southern Resident killer whales (as identified by Orca Network, NMFS, or other qualified source) or when humpback whales are detected or are notified by local marine mammal researchers to approach the ZOIs during pile removal and pile driving, therefore preventing Level B takes of Southern Resident killer whales and humpback whales.
If a killer whale approaches the ZOI during pile driving or removal, and it is unknown whether it is a Southern Resident killer whale or a transient killer whale, it shall be assumed to be a Southern Resident killer whale and WSDOT shall implement the shutdown measure.
Finally, WSDOT would implement shutdown or measure to prevent Level B takes when the take of any other species or stock of marine mammal is approaching the take limited authorized under the IHA (if issued).
Prior to the start of daily pile driving, the Orca Network and/or Center for Whale Research would be contacted to find out the location of the nearest marine mammal sightings. Daily sightings information can be found on the Orca Network Twitter site (
The Orca Sightings Network consists of a list of over 600 (and growing) residents, scientists, and government agency personnel in the U.S. and Canada. Sightings are called or emailed into the Orca Network and immediately distributed to other sighting networks including: The Northwest Fisheries Science Center of NMFS, the Center for Whale Research, Cascadia Research, the Whale Museum Hotline and the British Columbia Sightings Network.
“Sightings” information collected by the Orca Network includes detection by hydrophone. The SeaSound Remote Sensing Network is a system of interconnected hydrophones installed in the marine environment of Haro Strait (west side of San Juan Island) to study orca communication, in-water noise, bottom-fish ecology and local climatic conditions. A hydrophone at the Port Townsend Marine Science Center measures average in-water sound levels and automatically detects unusual sounds. These passive acoustic devices allow researchers to hear when different marine mammals come into the region. This acoustic network, combined with the volunteer (incidental) visual sighting network allows researchers to document presence and location of various marine mammal species.
With this level of coordination in the region of activity, WSDOT will be able to get real-time information on the presence or absence of whales before starting any pile driving.
NMFS has carefully evaluated the applicant's proposed mitigation measures and considered a range of other measures in the context of ensuring that NMFS prescribes the means of effecting the least practicable impact on the affected marine mammal species and stocks and their habitat. Our evaluation of potential measures included consideration of the following factors in relation to one another:
Any mitigation measure(s) prescribed by NMFS should be able to accomplish, have a reasonable likelihood of accomplishing (based on current science), or contribute to the accomplishment of one or more of the general goals listed below:
(1) Avoidance or minimization of injury or death of marine mammals wherever possible (goals 2, 3, and 4 may contribute to this goal).
(2) A reduction in the numbers of marine mammals (total number or number at biologically important time or location) exposed to received levels of pile driving and pile removal or other activities expected to result in the take of marine mammals (this goal may contribute to 1, above, or to reducing harassment takes only).
(3) A reduction in the number of times (total number or number at biologically important time or location) individuals would be exposed to received levels of pile driving and pile removal, or other activities expected to result in the take of marine mammals (this goal may contribute to 1, above, or to reducing harassment takes only).
(4) A reduction in the intensity of exposures (either total number or number at biologically important time or location) to received levels of pile driving, or other activities expected to result in the take of marine mammals (this goal may contribute to a, above, or to reducing the severity of harassment takes only).
(5) Avoidance or minimization of adverse effects to marine mammal habitat, paying special attention to the food base, activities that block or limit passage to or from biologically important areas, permanent destruction of habitat, or temporary destruction/disturbance of habitat during a biologically important time.
(6) For monitoring directly related to mitigation—an increase in the probability of detecting marine mammals, thus allowing for more effective implementation of the mitigation.
Based on our evaluation of the applicant's proposed measures, as well as other measures considered by NMFS, NMFS has preliminarily determined that the proposed mitigation measures provide the means of effecting the least practicable impact on marine mammals species or stocks and their habitat, paying particular attention to rookeries, mating grounds, and areas of similar significance.
In order to issue an incidental take authorization (ITA) for an activity, section 101(a)(5)(D) of the MMPA states that NMFS must set forth, “requirements pertaining to the monitoring and reporting of such taking.” The MMPA implementing regulations at 50 CFR 216.104(a)(13) indicate that requests for ITAs must include the suggested means of accomplishing the necessary monitoring and reporting that will result in
Monitoring measures prescribed by NMFS should accomplish one or more of the following general goals:
(1) An increase in the probability of detecting marine mammals, both within the mitigation zone (thus allowing for more effective implementation of the mitigation) and in general to generate more data to contribute to the analyses mentioned below;
(2) An increase in our understanding of how many marine mammals are likely to be exposed to levels of pile driving that we associate with specific adverse effects, such as behavioral harassment, TTS, or PTS;
(3) An increase in our understanding of how marine mammals respond to stimuli expected to result in take and how anticipated adverse effects on individuals (in different ways and to varying degrees) may impact the population, species, or stock (specifically through effects on annual rates of recruitment or survival) through any of the following methods:
• Behavioral observations in the presence of stimuli compared to observations in the absence of stimuli (need to be able to accurately predict received level, distance from source, and other pertinent information);
• Physiological measurements in the presence of stimuli compared to observations in the absence of stimuli (need to be able to accurately predict received level, distance from source, and other pertinent information);
• Distribution and/or abundance comparisons in times or areas with concentrated stimuli versus times or areas without stimuli;
(4) An increased knowledge of the affected species; and
(5) An increase in our understanding of the effectiveness of certain mitigation and monitoring measures.
WSDOT shall employ NMFS-approved protected species observers (PSOs) to conduct marine mammal monitoring for its Coupeville timber towers preservation project. During pile removal and installation, land-based and vessel-based PSOs would monitor the area from the best observation points available. The number of PSOs will be based on the sizes of ensonified zones and to ensure that the entire zones are monitored.
• During 24-inch steel impact pile driving, two land-based PSOs monitors will monitor the ZOE and ZOI. Pile driving will be paused if any marine mammal approaches the exclusion zone(s), which equate to the 22-m Level A harassment zone for those species for which take is authorized and to the larger Level B harassment zone for all other species.
• During vibratory timber pile removal, two land-based PSOs will monitor the ZOI, as shown in Figure 2 of WSDOT's Marine Mammal Monitoring Plan.
• During 24-inch vibratory pile removal, 7 land-based PSOs and one monitoring boat with a PSO and boat operator will monitor the ZOI, as shown in Figure 3 of WSDOT's Marine Mammal Monitoring Plan.
• If weather prevents safe use of the boat in the main channel of the ZOI, the boat will be used in other areas of the ZOI that are safe, such as the southwest corner of the ZOI, where lack of public access prevents stationing a land-based PSO.
The PSOs would observe and collect data on marine mammals in and around the project area for 30 minutes before, during, and for 30 minutes after all pile removal and pile installation work. If a PSO observes a marine mammal within or approaching the exclusion zone, the PSO would notify the work crew to initiate shutdown measures.
Monitoring of marine mammals around the construction site shall be conducted using high-quality binoculars (
During the project, in-water measurements of vibratory pile removal and driving and impact pile driving noises may be taken to determine if the vibratory ZOIs need to be modified.
WSDOT would be required to submit a final monitoring report within 90 days after completion of the construction work or the expiration of the IHA (if issued), whichever comes earlier. This report would detail the monitoring protocol, summarize the data recorded during monitoring, and estimate the number of marine mammals that may have been harassed. NMFS would have an opportunity to provide comments on the report, and if NMFS has comments, WSDOT would address the comments and submit a final report to NMFS within 30 days.
In addition, NMFS would require WSDOT to notify NMFS' Office of Protected Resources and NMFS' Stranding Network within 48 hours of sighting an injured or dead marine mammal in the vicinity of the construction site. WSDOT shall provide NMFS with the species or description of the animal(s), the condition of the animal(s) (including carcass condition, if the animal is dead), location, time of first discovery, observed behaviors (if alive), and photo or video (if available).
In the event that WSDOT finds an injured or dead marine mammal that is not in the vicinity of the construction area, WSDOT would report the same information as listed above to NMFS as soon as operationally feasible.
Except with respect to certain activities not pertinent here, the MMPA defines “harassment” as: Any act of pursuit, torment, or annoyance which (i) has the potential to injure a marine mammal or marine mammal stock in the wild [Level A harassment]; or (ii) has the potential to disturb a marine mammal or marine mammal stock in the wild by causing disruption of behavioral patterns, including, but not limited to, migration, breathing, nursing, breeding, feeding, or sheltering [Level B harassment].
As discussed above, in-water pile removal and pile driving (vibratory and impact) generate loud noises that could potentially harass marine mammals in the vicinity of WSDOT's proposed Coupeville timber tower preservation project.
As mentioned earlier in this document, currently NMFS uses 120 dB re 1 µPa and 160 dB re 1 µPa at the received levels for the onset of Level B harassment from non-impulse (vibratory pile driving and removal) and impulse sources (impact pile driving) underwater, respectively. Table 4 summarizes the current NMFS marine mammal take criteria.
As explained above, exclusion zones and ZOIs will be established that encompass the areas where received underwater sound pressure levels (SPLs) exceed the applicable thresholds for Level A and Level B harassments, respectively.
With the exception of harbor seals, Steller sea lion and harbor porpoise, it is anticipated that all of the marine mammals that enter the Level B acoustical harassment ZOIs will be exposed to pile driving and removal noise only as they are transiting the area. Only harbor seals, Steller sea lion and harbor porpoise are expected to forage and haulout in the Coupeville ZOIs with any frequency and could be exposed multiple times during a project.
As mentioned earlier, the distances to NMFS threshold for Level B (harassment) take for impact pile driving and vibratory pile removal were estimated as follows:
•
•
•
Airborne noises can affect pinnipeds, especially resting seals hauled out on rocks or sand spits. The 90 dB (rms) re 20 μPa harbor seal threshold was estimated at 126 ft/38 m, and the 100 dB (rms) re 20 μPa sea lion threshold at 40 ft/12 m.
The closest documented harbor seal haulout is the Rat Island/Kilisut Harbor Spit haulout in Port Townsend Bay, 5.5 miles southwest. The closest documented California sea lion haulout is a channel marker buoy located off Whidbey Island's Bush Point, 9 miles south. The closest documented Steller sea lion haulout is Craven Rock haulout, east of Marrowstone Island 5.5 miles south of the ferry terminal.
In-air disturbance could therefore occur only to those pinnipeds moving on the surface through the immediate pier area, within approximately 126 ft/38 m and 40 ft/12 m of pile removal and driving. However, these individuals would also likely be exposed to underwater sound produced by the project. We do not consider potential effects from airborne noise further in this analysis.
No Level A take is expected due to implementing monitoring and mitigation measures such as installing air bubble curtain device for all impact pile driving and implementing shut-down measures for marine mammals about to enter the exclusion zones.
Incidental take for each species is estimated by determining the likelihood of a marine mammal being present within a ZOI during active pile driving or removal. Expected marine mammal presence is determined by past observations and general abundance near the project site during the construction window. Typically, potential take is estimated by multiplying the area of the ZOI by the local animal density. This provides an estimate of the number of animals that might occupy the ZOI at any given moment. The take requests were estimated using local marine mammal data sets (
The calculation for marine mammal exposures is estimated by:
Exposure estimate = N × days of pile driving/removal, where:
N = # of animals based on long-term observations by local researchers.
Specifically, daily marine mammal occurrence (N) for harbor seal, Steller sea lion, and harbor porpoise are based on the observation data from the Orca Network (WSDOT 2015). Daily marine mammal occurrence for Dall's porpoise, transient killer whale, gray whale, and minke whale are based on the observation data from the Whale Museum (WSDOT). The occurrence of the rest of the marine mammal species which do not frequently occur in the proposed project area are based on limited sighting occurrence over the years (WSDOT 2015).
Using this approach, a summary of estimated takes of marine mammals incidental to WSDOT's Coupeville Timber Towers Preservation Project are provided in Table 5.
Negligible impact is “an impact resulting from the specified activity that cannot be reasonably expected to, and is not reasonably likely to, adversely affect the species or stock through effects on annual rates of recruitment or survival” (50 CFR 216.103). A negligible impact finding is based on the lack of likely adverse effects on annual rates of recruitment or survival (
WSDOT's proposed Coupeville timber tower preservation project would involve vibratory pile removal and impact and vibratory pile driving activities. Elevated underwater noises are expected to be generated as a result of these activities; however, these noises are expected to result in no mortality or Level A harassment and limited Level B harassment of marine mammals. WSDOT would employ attenuation device (
Additionally, the sum of noise from WSDOT's proposed Coupeville timber tower preservation construction activities is confined to a limited area by surrounding landmasses; therefore, the noise generated is not expected to contribute to increased ocean ambient noise. In addition, due to shallow water depths in the project area, underwater sound propagation of low-frequency sound (which is the major noise source from pile driving) is expected to be poor. Therefore, the actual ZOIs are expected to be smaller than what were modeled.
In addition, WSDOT's proposed activities are localized and of short duration. The entire project area is limited to WSDOT's Coupeville timber towers preservation construction work. The entire project duration for the construction would involve 12 hours in 8 days. These low-intensity, localized, and short-term noise exposures may cause brief startle reactions or short-term behavioral modification by the animals. These reactions and behavioral changes are expected to subside quickly when the exposures cease. Moreover, the proposed mitigation and monitoring measures are expected to reduce potential exposures and behavioral modifications even further. WSDOT would implement rigorous monitoring and mitigation measures to prevent takes of ESA-listed species such as Southern Resident killer whales and humpback whales. Additionally, no important feeding and/or reproductive areas for marine mammals are known to be near the proposed action area (Calambokidis
The proposed project area is not a prime habitat for marine mammals, nor is it considered an area frequented by marine mammals. Therefore, behavioral disturbances that could result from anthropogenic noise associated with WSDOT's construction activities are expected to affect marine mammals on an infrequent and limited basis.
The project also is not expected to have significant adverse effects on affected marine mammals' habitat, as analyzed in detail in the “Anticipated Effects on Marine Mammal Habitat” section. The project activities would not modify existing marine mammal habitat. The activities may cause some fish to leave the area of disturbance, thus temporarily impacting marine mammals' foraging opportunities in a limited portion of the foraging range; but, because of the short duration of the activities and the relatively small area of the habitat that may be affected, the impacts to marine mammal habitat are not expected to cause significant or long-term negative consequences.
Based on the analysis contained herein of the likely effects of the specified activity on marine mammals and their habitat, and taking into consideration the implementation of the proposed monitoring and mitigation measures, NMFS preliminarily finds that the total marine mammal take from WSDOT's Coupeville timber tower preservation project will have a negligible impact on the affected marine mammal species or stocks.
Based on analyses provided above, it is estimated that approximately 1,600 harbor seals, 22 California sea lions, 328 Steller sea lions, 22 northern elephant seals, 220 harbor porpoises, 36 Dall's porpoises, 40 transient killer whales, 22 Pacific white-sided dolphins, 12 gray whales, and 24 minke whales could be exposed to received noise levels that could cause Level B behavioral harassment from the proposed construction work at the Coupeville Ferry Terminal in Washington State. These numbers represent approximately 0.01% to 11.9% of the populations of these species that could be affected by Level B behavioral harassment, respectively (see Table 5 above), which are small percentages relative to the total populations of the affected species or stocks.
Based on the analysis contained herein of the likely effects of the specified activity on marine mammals and their habitat, and taking into consideration the implementation of the mitigation and monitoring measures, which are expected to reduce the number of marine mammals potentially affected by the proposed action, NMFS preliminarily finds that small numbers of marine mammals will be taken relative to the populations of the affected species or stocks.
There are no subsistence uses of marine mammals in the proposed project area; and, thus, no subsistence uses impacted by this action. Therefore, NMFS has determined that the total taking of affected species or stocks would not have an unmitigable adverse impact on the availability of such species or stocks for taking for subsistence purposes.
The humpback whale and the Southern Resident stock of killer whale are the only marine mammal species currently listed under the ESA that could occur in the vicinity of WSDOT's proposed construction projects. WSDOT would implement rigorous monitoring and mitigation measures to prevent takes of these ESA-listed species. NMFS' Permits and Conservation Division coordinated with NMFS West
NMFS prepared a draft Environmental Assessment (EA) for the proposed issuance of an IHA, pursuant to NEPA, to determine whether or not this proposed activity may have a significant effect on the human environment. This analysis will be completed prior to the issuance or denial of this proposed IHA.
As a result of these preliminary determinations, NMFS proposes to issue an IHA to WSDOT for conducting the Coupeville timber tower preservation project, provided the previously mentioned mitigation, monitoring, and reporting requirements are incorporated. The proposed IHA language is provided next.
1. This Authorization is valid from July 15, 2016, through July 14, 2017.
2. This Authorization is valid only for activities associated in-water construction work at the Coupeville timber tower preservation project in the State of Washington.
3. (a) The species authorized for incidental harassment takings, Level B harassment only, are: Pacific harbor seal (
(b) The authorization for taking by harassment is limited to the following acoustic sources and from the following activities:
(c) The taking of any marine mammal in a manner prohibited under this Authorization must be reported within 24 hours of the taking to the West Coast Administrator (206-526-6150), National Marine Fisheries Service (NMFS) and the Chief of the Permits and Conservation Division, Office of Protected Resources, NMFS, at (301) 427-8401, or her designee (301-427-8418).
4. The holder of this Authorization must notify the Chief of the Permits and Conservation Division, Office of Protected Resources, at least 48 hours prior to the start of activities identified in 3(b) (unless constrained by the date of issuance of this Authorization in which case notification shall be made as soon as possible).
(a) The taking, by incidental harassment only, is limited to the species listed under condition 3(a) above and by the numbers listed in Table 5. The taking by Level A harassment, injury or death of these species or the taking by harassment, injury or death of any other species of marine mammal is prohibited and may result in the modification, suspension, or revocation of this Authorization.
(b) The taking of any marine mammal is prohibited whenever the required protected species observers (PSOs), required by condition 7(a), are not present in conformance with condition 7(a) of this Authorization.
In-water construction work shall occur only during daylight hours, when visual monitoring of marine mammals can be conducted.
An air bubble curtain system or other noise attenuation device shall be employed during impact installation or proofing of steel piles unless the piles are driven on dry areas.
Before the commencement of in-water pile driving activities, WSDOT would establish Level A exclusion zones and Level B zones of influence (ZOIs).
(i) The Level A exclusion zones shall encompass areas where received underwater sound pressure levels (SPLs) are higher than 190 dB (rms) re 1 µPa for pinnipeds and 180 dB (rms) re 1 µPa for cetaceans.
(ii) The Level B ZOIs shall encompass areas where received underwater SPLs are higher than 160 dB (rms) and 120 dB (rms) re 1 μPa for impulse noise sources (impact pile driving) and non-impulses noise sources (vibratory pile removal), respectively.
(iii) The exclusion zones and ZOIs shall be established based on modeled calculation listed in Table 4, and maybe adjusted based on sound source verification (SSV) measurements during test pile driving.
(d) Monitoring of marine mammals shall take place starting 30 minutes before pile driving begins until 30 minutes after pile driving ends.
(i) When there has been downtime of 30 minutes or more without pile driving, the contractor will initiate the driving with ramp-up procedures described below.
(ii) For vibratory hammers, the contractor shall initiate the driving for 15 seconds at reduced energy, followed by a 1 minute waiting period. This procedure shall be repeated two additional times before continuous driving is started. This procedure shall also apply to vibratory pile removal.
(iii) For impact driving, an initial set of three strikes would be made by the hammer at 40-percent energy, followed by a 1-minute waiting period, then two subsequent three-strike sets at 40-percent energy, with 1-minute waiting periods, before initiating continuous driving.
(i) WSDOT shall implement shutdown measures if a marine mammal is sighted within or approaching the Level A exclusion zone. In-water construction activities shall be suspended until the marine mammal is sighted moving away from the exclusion zone, or if a large cetacean is not sighted for 30 minutes or if a small cetacean or pinniped is not sighted for 15 minutes after the shutdown.
(ii) In addition, WSDOT would implement shutdown measures when Southern Resident killer whales (as identified by Orca Network, NMFS, or other qualified source) or when humpback whales are detected to approach the ZOIs during pile removal and pile driving, therefore preventing Level B takes of Southern Resident killer whales and humpback whales.
(iii) If a killer whale approaches the ZOI during pile driving or removal, and it is unknown whether it is a Southern Resident killer whale or a transient killer whale, it shall be assumed to be a Southern Resident killer whale and WSDOT shall implement the shutdown measure.
(iv) WSDOT shall implement shutdown or power-down measures to prevent Level B takes when the take of any other species or stock of marine mammal is approaching the take limited authorized under this authorization.
(v) WSDOT shall implement shutdown measures if marine mammals with the ZOI appear disturbed by the work activity.
Prior to the start of daily pile driving, WSDOT will contact the Orca Network and/or Center for Whale Research to get real-time information on the presence or absence of whales before starting any pile driving.
WSDOT shall employ NMFS-approved PSOs to conduct marine mammal monitoring for its construction project.
(i) Visual acuity in both eyes (correction is permissible) sufficient for discernment of moving targets at the water's surface with ability to estimate target size and distance. Use of binoculars will be required to correctly identify the target.
(ii) Experience or training in the field identification of marine mammals (cetaceans and pinnipeds).
(iii) Sufficient training, orientation or experience with the construction operation to provide for personal safety during observations.
(iv) Ability to communicate orally, by radio or in person, with project personnel to provide real time information on marine mammals observed in the area as necessary.
(v) Experience and ability to conduct field observations and collect data according to assigned protocols (this may include academic experience).
(vi) Writing skills sufficient to prepare a report of observations that would include such information as the number and type of marine mammals observed; the behavior of marine mammals in the project area during construction, dates and times when observations were conducted; dates and times when in-water construction activities were conducted; and dates and times when marine mammals were present at or within the defined ZOI.
(b) Monitoring Protocols: PSOs shall be present on site at all times during pile removal and driving.
(i) A range finder or hand-held global positioning system device will be used to ensure that the Level A exclusion zones and Level B behavioral harassment ZOIs are monitored.
(ii) A 30-minute pre-construction marine mammal monitoring will be required before the first pile driving or pile removal of the day. A 30-minute post-construction marine mammal monitoring will be required after the last pile driving or pile removal of the day. If the constructors take a break between subsequent pile driving or pile removal for more than 30 minutes, then additional pre-construction marine mammal monitoring will be required before the next start-up of pile driving or pile removal.
(iii) Marine mammal visual monitoring will be conducted for different ZOIs based on different sizes of piles being driven or removed.
(A) During 24-inch steel impact pile driving, two land-based PSOs monitors will monitor the ZOE and ZOI. Pile driving will be paused if any marine mammal approaches the exclusion zone.
(B) During vibratory timber pile removal, two land-based PSOs will monitor the ZOI.
(C) During 24-inch vibratory pile removal, 7 land-based PSOs and one monitoring boat with a PSO and boat operator will monitor the ZOI.
(D) If weather prevents safe use of the boat in the main channel of the ZOI, the boat will be used in other areas of the ZOI that are safe, such as the southwest corner of the ZOI, where lack of public access prevents stationing a land-based PSO.
(iv) If marine mammals are observed, the following information will be documented:
(A) Species of observed marine mammals;
(B) Number of observed marine mammal individuals;
(C) Behavior of observed marine mammals;
(D) Location within the ZOI; and
(E) Animals' reaction (if any) to pile-driving activities
(a) WSDOT shall provide NMFS with a draft monitoring report within 90 days of the conclusion of the construction work or within 90 days of the expiration of the IHA, whichever comes first. This report shall detail the monitoring protocol, summarize the data recorded during monitoring, and estimate the number of marine mammals that may have been harassed.
(b) If comments are received from the NMFS West Coast Regional Administrator or NMFS Office of Protected Resources on the draft report, a final report shall be submitted to NMFS within 30 days thereafter. If no comments are received from NMFS, the draft report will be considered to be the final report.
(c) In the unanticipated event that the construction activities clearly cause the take of a marine mammal in a manner prohibited by this Authorization (if issued), such as an injury, serious injury, or mortality, WSDOT shall immediately cease all operations and immediately report the incident to the Chief, Permits and Conservation Division, Office of Protected Resources, NMFS, and the West Coast Regional Stranding Coordinators. The report must include the following information:
(i) Time, date, and location (latitude/longitude) of the incident;
(ii) Description of the incident;
(iii) Status of all sound source use in the 24 hours preceding the incident;
(iv) Environmental conditions (
(v) Description of marine mammal observations in the 24 hours preceding the incident;
(vi) Species identification or description of the animal(s) involved;
(vii) The fate of the animal(s); and
(viii) Photographs or video footage of the animal (if equipment is available).
Activities shall not resume until NMFS is able to review the circumstances of the prohibited take. NMFS shall work with WSDOT to determine what is necessary to minimize the likelihood of further prohibited take and ensure MMPA compliance. WSDOT may not resume their activities until notified by NMFS via letter, email, or telephone.
(E) In the event that WSDOT discovers an injured or dead marine mammal, and the lead PSO determines that the cause of the injury or death is unknown and the death is relatively recent (
(F) In the event that WSDOT discovers an injured or dead marine mammal, and the lead PSO determines that the injury or death is not associated with or related to the activities authorized in the IHA (
9. This Authorization may be modified, suspended or withdrawn if the holder fails to abide by the conditions prescribed herein or if NMFS determines that the authorized taking is having more than a negligible impact on the species or stock of affected marine mammals, or if there is an unmitigable adverse impact on the availability of such species or stocks for subsistence uses.
10. A copy of this Authorization must be in the possession of each contractor who performs the construction work at the Coupeville Ferry Terminal.
Commodity Futures Trading Commission.
Notice and order.
The Commodity Futures Trading Commission (“Commission”) is authorizing the National Futures Association (“NFA”) to receive, review, maintain, and serve as the official custodian of records for notices provided by swap dealers (“SDs”) and major swap participants (“MSPs”) of swap valuation disputes in excess of $20 million U.S. dollars (or its equivalent in any other currency), as provided in Commission regulation 23.502(c).
Effective Date: March 1, 2016.
Erik F. Remmler, Deputy Director, 202-418-7630,
Section 8a(10) of the Commodity Exchange Act
The purpose of the Act is explained in CEA Section 3(a)
CEA Section 4s(f)(1) authorizes the Commission to require SDs and MSPs to “make such reports as are required by the Commission by rule or regulation regarding the transactions and positions . . .” of SDs and MSPs.
NFA Compliance Rule 2-49 is capable of being used by NFA to collect notices of swap valuation disputes. That rule states:
A Swap Dealer or Major Swap Participant Member must promptly submit any reports, documents or notices, including those required under CFTC Regulation 3.3 or Part 23 of the CFTC's regulations, and any other supplemental information, to NFA and CFTC, as required by NFA, in the form and manner prescribed by NFA.
NFA has confirmed its willingness to perform the functions described herein and Commission staff has made NFA staff aware of the requirements that shall apply to NFA in maintaining these records. In particular, NFA, its officers, employees and agents shall ensure the confidentiality of those nonpublic portions of the Commission's records furnished to, compiled or maintained by NFA, including any reports generated by NFA based on the swap valuation dispute notices received by NFA except as allowed by existing or future Commission orders or regulations.
In light of NFA's experience in receiving and reviewing disclosure documents on behalf of the Commission, the Commission has determined to delegate to NFA the responsibility to receive and review notices of swap valuation disputes required to be filed pursuant to Regulation 23.502(c), to provide the Commission with such summaries and periodic reports as the Commission, through the Director of DSIO, may determine are necessary for the effective oversight of SDs and MSPs, and to maintain and serve as the official custodian of records for those documents. This determination is based upon NFA's representations regarding procedures for maintaining and safeguarding all such records. In maintaining the Commission's records pursuant to this Order, NFA shall be subject to all other requirements and obligations imposed on it by the Commission in existing or future orders or regulations. In this regard, NFA shall also implement such additional procedures (or modify existing procedures) as are acceptable to the Commission and as are necessary and acceptable to the Commission to accomplish the following: Ensure the security and integrity of the records in NFA's custody; facilitate prompt access to those records by the Commission and its staff, particularly as described in other Commission orders or rules; facilitate disclosure of public or nonpublic information in those records when permitted by Commission orders or rules and keep logs as required by the Commission concerning disclosure of nonpublic information; and otherwise safeguard the confidentiality of the records. NFA shall also make such reports regarding those notices as shall be specified by the Commission or the Director of DSIO.
The Commission has determined, in accordance with Sections 4s(f)(1), 8a(10) and 17(o)(1) of the CEA, to authorize NFA to perform the following functions:
(1) To receive in the form and manner prescribed by NFA, and conduct reviews of, the notices of swap valuation disputes specified in Regulation 23.502(c), as described above; and
(2) To maintain and serve as the official custodian of those Commission records.
NFA shall perform these functions in accordance with the standards established by the Act and the regulations and orders promulgated thereunder, and shall provide the Commission with such summaries and periodic reports regarding those records and their contents as the Commission or the Director of DSIO may determine are necessary for the effective oversight of this program.
These determinations are based, in part, on the Commission's authority to delegate to NFA portions of the Commission's responsibilities under the CEA, in furtherance of carrying out these responsibilities in the most efficient and cost-effective manner, and upon NFA's representations concerning the standards and procedures to be followed and the reports to be generated in administering these functions.
This Order does not, however, authorize NFA to render “no-action” positions, exemptions or interpretations with respect to applicable disclosure, reporting, recordkeeping and registration requirements.
Nothing in this Order or in CEA Sections 8a(10) or 17(o) shall affect the Commission's authority to review NFA's performance of Commission functions listed above.
NFA is authorized to perform all functions specified herein until such time as the Commission orders otherwise. Nothing in this Order shall prevent the Commission from exercising the authority delegated herein. NFA may submit to the Commission for decision any specific matter regarding the functions delegated to it, and Commission staff will be available to discuss with NFA staff issues relating to the implementation of this Order. Nothing in this Order affects the applicability of any previous Orders issued by the Commission.
Commodity Futures Trading Commission.
Notice.
In compliance with the Paperwork Reduction Act of 1995 (“PRA”), this notice announces that the Information Collection Request (“ICR”) abstracted below has been forwarded to the Office of Management and Budget (“OMB”) for review and comment. The ICR describes the nature of the information collection and its expected costs and burden.
Comments must be submitted on or before February 22, 2016.
Comments regarding the burden estimated or any other aspect of the information collection, including suggestions for reducing the burden, may be submitted directly to the Office of Information and Regulatory Affairs (“OIRA”) in OMB, within 30 days of the notice's publication, by email at
A copy of the supporting statements for the collection of information discussed above may be obtained by visiting
Jacob Chachkin, Special Counsel, Division of Swap Dealer and Intermediary Oversight, Commodity Futures Trading Commission, (202) 418-5496, email:
The information collection obligations imposed by Commission regulation 3.3 are essential to ensuring that FCMs, SDs, and MSPs maintain comprehensive policies and procedures that promote compliance with the CEA and Commission regulations. In particular, the Commission believes that, among other things, these obligations (i) promote compliance behavior through periodic self-evaluation, (ii) inform the Commission of possible compliance weaknesses, (iii) assist the Commission in determining whether the registrant remains in compliance with the CEA and Commission regulations, and (iv) help the Commission to assess whether the registrant has mechanisms in place to adequately address compliance problems that could lead to a failure of the registrant.
44 U.S.C. 3501
Council on Environmental Quality.
Notice. GreenGov Symposium Call for Co-Sponsors.
This notice informs the public of the opportunity for eligible non-governmental entities to submit an application for co-sponsorship of a potential White House Council on Environmental Quality 2016 GreenGov Symposium. Those interested in becoming co-sponsors should submit an application for co-sponsorship by February 12, 2016.
To be considered, applications for co-sponsorship must be received via email no later than 5:00 p.m. Eastern Standard Time on February 12, 2016.
Submit applications and any supporting materials electronically to the White House Council on Environmental Quality, Office of Federal Sustainability, by sending them via email to:
Gordon Weynand, Office of Federal Sustainability, White House Council on Environmental Quality,
• Alignment of their organization's mission and goals with the mission and goals of CEQ and the Office of Federal Sustainability and with the general purpose of the Symposium;
• ability to contribute to selection of Symposium location(s), associated logistics, agenda planning, speaker proposal and selection, and event outreach;
• experience working successfully with private sector, state and local government and academic sector stakeholders that would attend a GreenGov event;
• ability to travel to various locations within the continental United States, if necessary to host GreenGov events;
• technical and programmatic ability to support internet and web based production of GreenGov educational events; and,
• ability to support both a major multiple day symposium event as well as limited topic specific seminars and workshops.
42 U.S.C. 4342, 4344.
U.S. Army Medical Command, Family Advocacy Program Office, DoD.
Notice.
In compliance with the
Consideration will be given to all comments received by March 21, 2016.
You may submit comments, identified by docket number and title, by any of the following methods:
•
•
Any associated form(s) for this collection may be located within this same electronic docket and downloaded for review/testing. Follow the instructions at
To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to the U.S. Army Medical Command, Health Policy & Services, Behavioral Health Service Line, Family Advocacy Program (ATTN: MCHO-CL-H/Ms. Kathleen Foreman), 2748 Worth Road, JBSA Fort Sam Houston, TX 78234; or call the Point of Contact for U.S. Army Medical Command, Family Advocacy Program Office at 210-295-7370 or email at
Respondents are U.S. citizens (military, civilian, and military-affiliated civilians; spouses, intimate partners; child care providers; teachers) or foreign nationals seeking emergency and non-emergency support from military health care facilities, child care facilities, and DoD school systems who are seeking domestic violence or child abuse support for themselves or their children. MEDCOM Form 811-Pilot records the information needed to conduct a thorough and responsible risk assessment, behavioral health assessment, treatment plan, and case monitoring or management plan. The completed form is included in the Family Advocacy Case file and in Family Advocacy System of Records (information system). The form is used by family advocacy workers to assess the clinical and non-clinical needs of individuals and families to ensure victim safety; reduce the risk of adverse behavioral health events like suicide, homicide, accidental death, and physical, emotional sexual abuse and neglect; refer victims and alleged offenders to appropriate treatment and case management resources; to gather case information for presentation and incident determination by a family advocacy review board; and to gather information for data analysis and reporting purposes for overall program improvement. If the form is not included in the Family Advocacy file, the records will reflect inconsistent risk assessment, behavioral health assessment, treatment and management planning. This form is essential to data collection to inform treatment and management planning. The form bolsters efforts to maintain and document family advocacy worker's compliance with standards in the assessment of victims and alleged offenders of abuse. In addition, the information gathered supports program improvement and risk mitigation.
Office of the Secretary of Defense, DoD.
Notice to add a new System of Records.
The Office of the Secretary of Defense proposes to add a new system of records, DMDC 22, entitled “Defense Competency Assessment Tool,” to conduct web-based competency assessments in order to identify current and future competency gaps and requirements of the DoD civilian workforce based on near and long-term organizational goals, as well as to support analytical reporting to Congress.
Comments will be accepted on or before February 22, 2016. This proposed action will be effective the day following the end of the comment period unless comments are received which result in a contrary determination.
You may submit comments, identified by docket number and title, by any of the following methods:
*
*
Ms. Cindy Allard, Chief, OSD/JS Privacy Office, Freedom of Information Directorate, Washington Headquarters Service, 1155 Defense Pentagon, Washington, DC 20301-1155, or by phone at (571) 372-0461.
The Office of the Secretary of Defense notices for systems of records subject to the Privacy Act of 1974 (5 U.S.C. 552a), as amended, have been published in the
The proposed system report, as required by 5 U.S.C. 552a(r) of the Privacy Act of 1974, as amended, was submitted on January 7, 2016, to the House Committee on Oversight and Government Reform, the Senate Committee on Governmental Affairs, and the Office of Management and Budget (OMB) pursuant to paragraph 4c of Appendix I to OMB Circular No. A-130, “Federal Agency Responsibilities for Maintaining Records About Individuals,” dated February 8, 1996 (February 20, 1996, 61 FR 6427).
Defense Competency Assessment Tool
Defense Civilian Personnel Advisory Service (DCPAS), Enterprise Human Resources Information Systems (EHRIS), 4800 Mark Center Drive, Alexandria, VA 22350-1100.
Current DoD civilian employees who have voluntarily completed a competency assessment using the Defense Competency Assessment Tool.
DoD ID number (EDIPI), region ID, position ID, email address, last name, first name, middle name, agency code, agency group, occupational series, organization, work city, work state, work country, educational level, current pay plan, pay grade, pay status, supervisor status and responses to employee's and supervisor's assessment.
10 U.S.C. 115b, Biennial strategic workforce plan; and DoD Instruction 1400.25, Volume 250, DoD Civilian Personnel Management System: Volume 250, Civilian Strategic Human Capital Planning (SHCP).
To conduct web-based competency assessments in order to identify current and future competency gaps and requirements of the DoD civilian workforce based on near and long-term organizational goals; to support analytical reporting to Congress.
In addition to those disclosures generally permitted in accordance with 5 U.S.C. 552a(b), the Privacy Act of 1974, as amended, the records contained herein may specifically be disclosed outside the DoD as a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
Law Enforcement Routine Use. If a system of records maintained by a DoD Component to carry out its functions indicates a violation or potential violation of law, whether civil, criminal, or regulatory in nature, and whether arising by general statute or by regulation, rule, or order issued pursuant thereto, the relevant records in the system of records may be referred, as a routine use, to the agency concerned, whether federal, state, local, or foreign, charged with the responsibility of investigating or prosecuting such violation or charged with enforcing or implementing the statute, rule, regulation, or order issued pursuant thereto.
Disclosure When Requesting Information Routine Use. A record from a system of records maintained by a DoD Component may be disclosed as a routine use to a federal, state, or local agency maintaining civil, criminal, or other relevant enforcement information or other pertinent information, such as current licenses, if necessary to obtain information relevant to a DoD Component decision concerning the hiring or retention of san employee, the issuance of a security clearance, the letting of a contract, or the issuance of a license, grant, or other benefit.
Disclosure of Requested Information Routine Use. A record from a system of records maintained by a DoD Component may be disclosed to a federal agency, in response to its request, in connection with the hiring or retention of an employee, the issuance of a security clearance, the reporting of an investigation of an employee, the letting of a contract, or the issuance of a license, grant, or other benefit by the requesting agency, to the extent that the information is relevant and necessary to the requesting agency's decision on the matter.
Congressional Inquiries Disclosure Routine Use. Disclosure from a system of records maintained by a DoD Component may be made to a congressional office from the record of an individual in response to an inquiry from the congressional office made at the request of that individual.
Disclosure to the Office of Personnel Management Routine Use. A record from a system of records subject to the Privacy Act and maintained by a DoD Component may be disclosed to the Office of Personnel Management (OPM) concerning information on pay and leave, benefits, retirement deduction, and any other information necessary for the OPM to carry out its legally authorized government-wide personnel management functions and studies.
Disclosure to the Department of Justice for Litigation Routine Use. A record from a system of records
Disclosure of Information to the National Archives and Records Administration Routine Use. A record from a system of records maintained by a DoD Component may be disclosed as a routine use to the National Archives and Records Administration for the purpose of records management inspections conducted under authority of 44 U.S.C. 2904 and 2906.
Disclosure to the Merit Systems Protection Board Routine Use. A record from a system of records maintained by a DoD Component may be disclosed as a routine use to the Merit Systems Protection Board, including the Office of the Special Counsel for the purpose of litigation, including administrative proceedings, appeals, special studies of the civil service and other merit systems, review of OPM or component rules and regulations, investigation of alleged or possible prohibited personnel practices; including administrative proceedings involving any individual subject of a DoD investigation, and such other functions, promulgated in 5 U.S.C. 1205 and 1206, or as may be authorized by law.
A record from a system of records maintained by a DoD Component may be disclosed as a routine use to the Merit Systems Protection Board, including the Office of the Special Counsel for the purpose of litigation, including administrative proceedings, appeals, special studies of the civil service and other merit systems, review of OPM or Component rules and regulations, investigation of alleged or possible prohibited personnel practices; including administrative proceedings involving any individual subject of a DoD investigation, and such other functions, promulgated in 5 U.S.C. 1205 and 1206, or as may be authorized by law.
Data Breach Remediation Purposes Routine Use. A record from a system of records maintained by a Component may be disclosed to appropriate agencies, entities, and persons when (1) The Component suspects or has confirmed that the security or confidentiality of the information in the system of records has been compromised; (2) the Component has determined that as a result of the suspected or confirmed compromise there is a risk of harm to economic or property interests, identity theft or fraud, or harm to the security or integrity of this system or other systems or programs (whether maintained by the Component or another agency or entity) that rely upon the compromised information; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with the Components efforts to respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm.
The DoD Blanket Routine Uses set forth at the beginning of the Office of the Secretary of Defense (OSD) compilation of systems of records notices may apply to this system. The complete list of DoD Blanket Routine Uses can be found Online at:
Electronic storage media.
Name and/or DoD ID Number.
Records are accessed and/or maintained in areas accessible only to authorized personnel. Physical controls include security guards, identification badges, key cards, cipher locks, closed circuit TV, door locks and access codes, and monitoring and escort requirements for all visitors. Technical controls include user identification, intrusion detection system, encryption, external certificate authority certificate, firewall, virtual privacy network, Common Access Cards, and Public Key Infrastructure certificates. Administrative controls include periodic security audits, regular monitoring of users' security practices, methods to ensure only authorized personnel have access to personal information, and encryption of backups containing sensitive data.
Disposition pending (until the National Archives and Records Administration have approved the retention and disposition of these records) treat records as permanent.
Technical Director, Development, Requirements, and Resources, DCPAS EHRIS, 4800 Mark Center Drive, Alexandria, VA 22350-1100.
Individuals seeking to determine whether information about themselves is contained in this system of records should address written inquiries to the Technical Director, Development, Requirements, and Resources, DCPAS EHRIS, 4800 Mark Center Drive, Alexandria, VA 22350-1100.
Signed, written requests should contain the individual's name and/or DoD ID number, organization, and contact information.
Individuals seeking access to information about themselves contained in this system should address written inquiries to the Office of the Secretary of Defense/Joint Staff Freedom of Information Act, Requester Service Center, Office of Freedom of Information, 1155 Defense Pentagon, Washington, DC 20301-1155.
Signed, written requests should contain the name and number of this system of records notice, and the individual's name and/or DoD ID number, organization, and contact information.
The OSD rules for accessing records, for contesting contents, and appealing initial agency determinations are contained in OSD Administrative Instruction 81; 32 CFR part 311; or may be obtained from the system manager.
Individual; Defense Civilian Personnel Data System.
None.
Office of the Secretary of Defense, DoD.
Notice to alter a System of Records.
The Office of the Secretary of Defense proposes to alter a system of records notice DWHS P28, entitled “Personnel Security Operations File” to maintain security clearance and authorized access information.
Comments will be accepted on or before February 22, 2016. This proposed
You may submit comments, identified by docket number and title, by any of the following methods:
*
*
Ms. Cindy Allard, Chief, OSD/JS Privacy Office, Freedom of Information Directorate, Washington Headquarters Service, 1155 Defense Pentagon, Washington, DC 20301-1155, or by phone at (571) 372-0461.
The Office of the Secretary of Defense notices for systems of records subject to the Privacy Act of 1974 (5 U.S.C. 552a), as amended, have been published in the
The proposed systems reports, as required by 5 U.S.C. 552a(r) of the Privacy Act, as amended, were submitted on January 7, 2016 to the House Committee on Oversight and Government Reform, the Senate Committee on Homeland Security and Governmental Affairs, and the Office of Management and Budget (OMB) pursuant to paragraph 4c of Appendix I to OMB Circular No. A-130, “Federal Agency Responsibilities for Maintaining Records About Individuals,” dated February 8, 1996, (February 20, 1996, 61 FR 6427).
Personnel Security Operations File (August 17, 2001, 66 FR 43236).
Delete entry and replace with “Personnel Security Operations Division (PSOD), Human Resources Directorate (HRD), Washington Headquarters Services (WHS), Department of Defense (DoD), 1155 Defense Pentagon, Washington DC 20301-1155.”
Delete entry and replace with “Applicants for, civilian employees of, and military members assigned to, WHS, the Office of the Secretary of Defense (OSD), and its components and supported organizations who require either vetting under Homeland Security Presidential Directive-12 for vetting purposes or require access to classified DoD information or materials.
Contractors supporting the above organizations covered by Homeland Security Presidential Directive-12 for vetting purposes.
Experts and consultants serving with or without compensation.
Certain employees of the Congressional Budget Office and the U.S. Capitol Police, who require access to classified DoD information or materials.
Staff of Congressional committees and Congressional member office staff of the U.S. Senate and U.S. House of Representatives who require access to classified DoD information or material.
Employees of other Federal agencies detailed to the OSD.
Members and staff of DoD and Presidential Boards, Commissions and Task Forces.
Members detailed to DoD from other Executive Branch Agencies.
Defense contractors requiring access to special programs.Sole entity contractors who require access to classified DoD information or materials.
Unsalaried students working as interns in supported organizations.”
Delete entry and replace with “Name, Social Security Number (SSN), type of DoD affiliation, employing activity, current employment status, position sensitivity, personnel security investigative basis, status of current adjudicative action, security clearance eligibility and access status, reports of security-related incidents, to include issue files, suspension of eligibility and/or access, clearance withdrawal or suspension, denial or revocation of eligibility and/or access, eligibility recommendations or decisions made by an appellate authority, non-disclosure execution dates, indoctrination date(s), level(s) of access granted, debriefing date(s), and reason for debriefing.”
Delete entry and replace with “E.O. 10450, Security Requirements for Government Employment; E.O. 10865, Safeguarding Classified Information Within Industry; Homeland Security Presidential Directive-12: Policy for a Common Identification Standard for Federal Employees and Contractors; DoD Directive 5200.2, DoD Personnel Security Program; DoD 5200.2-R, DoD Personnel Security Program; and E.O. 9397 (SSN), as amended.”
Delete entry and replace with “To maintain security clearance and authorized access information.”
Delete entry and replace with “In addition to those disclosures generally permitted under 5 U.S.C. 552a(b) of the Privacy Act of 1974, as amended, the records contained herein may specifically be disclosed outside the DoD as a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
Law Enforcement Routine Use: If a system of records maintained by a DoD Component to carry out its functions indicates a violation or potential violation of law, whether civil, criminal, or regulatory in nature, and whether arising by general statute or by regulation, rule, or order issued pursuant thereto, the relevant records in the system of records may be referred, as a routine use, to the agency concerned, whether federal, state, local, or foreign, charged with the responsibility of investigating or prosecuting such violation or charged with enforcing or implementing the statute, rule, regulation, or order issued pursuant thereto.
Disclosure When Requesting Information routine Use: A record from a system of records maintained by a DoD Component may be disclosed as a routine use to federal, state, or local
Disclosure of Requested Information Routine Use: A record from a system of records maintained by a DoD Component may be disclosed to a federal agency, in response to its request, in connection with the hiring or retention of an employee, the issuance of a security clearance, the reporting of an investigation of an employee, the letting of a contract, or the issuance of a license, grant, or other benefit by the requesting agency, to the extent that the information is relevant and necessary to the requesting agency's decision on the matter.
Congressional Inquiries Disclosure Routine Use: Disclosure from a system of records maintained by a DoD Component may be made to a congressional office from the record of an individual in response to an inquiry from the congressional office made at the request of that individual.
Disclosure to the Department of Justice for Litigation Routine Use: A record from a system of records maintained by a DoD Component may be disclosed as a routine use to any component of the Department of Justice for the purpose of representing the Department of Defense, or any officer, employee or member of the Department in pending litigation to which the record is pertinent.
Disclosure of Information to the National Archives and Records Administration Routine Use: A record from a system of records maintained by a DoD Component may be disclosed as a routine use to the National Archives and Records Administration for the purpose of records management inspections conducted under authority 44 U.S.C. 2904 and 2906.
Data Breach Remediation Purposes Routine Use: A record from a system of records maintained by a Component may be disclosed to appropriate agencies, entities, and persons when (1) The Component suspects or has confirmed that the security or confidentiality of the information in the system of records has been compromised; (2) the Component has determined that as a result of the suspected or confirmed compromise there is a risk of harm to the security or integrity of this system or other systems or programs (whether maintained by the Component or another agency or entity) that rely upon the compromised information; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with the Components efforts to respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm.
The DoD Blanket Routine Uses set forth at the beginning of the Office of the Secretary of Defense (OSD) compilation of systems of records notices may apply to this system. The complete list of DoD Blanket Routine Uses can be found online at:
Delete entry and replace with “Paper file folders and electronic storage media.”
Delete entry and replace with “Name and SSN.”
Delete entry and replace with “Records are maintained under the direct control of office personnel during duty hours. Building has security guards and office is locked and alarmed during non-duty hours. Computer media is stored in controlled areas. Computer terminal access is controlled by Common Access Cards and/or user passwords that are periodically changed. Classified files are maintained in paper form, versus the electronic storage media. Paper records are maintained in security containers with access to records limited to person(s) responsible for servicing the record in performance of their official duties and who are properly screen and cleared for need-to-know.”
Delete entry and replace with “Inactivate file when employee leaves the Agency; retain in files storage area and destroy after 2 years. Files for military personnel are destroyed upon separation. Files pertaining to contractor SCI eligibility are destroyed upon favorable SCI eligibility determination.”
Delete entry and replace with “Personnel Security Operations Division, Human Resources Directorate, Washington Headquarters Services, Department of Defense, 1155 Defense Pentagon, Washington, DC 20301-1155.”
Delete entry and replace with “Individuals seeking to determine whether information about themselves is contained in this system should address written inquiries to the Personnel Security Operations Division, Human Resources Directorate, Washington Headquarters Services, Department of Defense, 1155 Defense Pentagon, Washington DC 20301-1155.
Signed, written requests must include the full name of the individual, SSN, and name of the program.”
Delete entry and replace with “Individuals seeking to access information about themselves contained in this system should address written inquiries to the Office of the Secretary of Defense/Freedom of Information Act Requester Service Center, 4800 Mark Center Drive, Alexandria, VA 22350-3100.
Signed, written requests must include the full name of the individual, SSN, name of the program, and the name and number of this system of records notice.”
Delete entry and replace with “The individual, background investigations and summaries of information from background investigations from the investigating agency, employment suitability related information; and forms and correspondence relating to the security clearance and access of the individual.”
Catalog of Federal Domestic Assistance (CFDA) Number: 84.044A
Office of Postsecondary Education, Department of Education.
Notice; correction.
This notice corrects the “Estimated Available Funds” and “Maximum Award Amounts” in the notice inviting applications for new awards for fiscal year (FY) 2016 for the Talent Search program, published on December 22, 2015.
Effective January 21, 2016.
Craig Pooler, OPE, U.S. Department of
In the
Maximum Award:
• For an applicant that is not currently receiving a Talent Search Program grant, the maximum award amount is $240,000 for a project that will serve a minimum of 500 participants, based upon a per-participant cost of no more than $480.
• For an applicant that is currently receiving a Talent Search Program grant, the maximum award amount is the greater of (a) $240,000 or (b) the award amount obtained by multiplying the applicant's approved FY 2015 number of participants by $480, to serve at least the number of participants approved to serve in FY 2015. The minimum number of participants an applicant proposes to serve must be 500 and the project must propose a per-participant cost that does not exceed $480 per participant. For example, an applicant whose FY 2015 approved number of participants is 600 is eligible for a grant of up to $288,000 to serve 600 participants.
We will reject any application that proposes a budget exceeding the maximum amount listed above for a single budget period of 12 months. We will also reject any application that proposes a budget to serve fewer than 500 participants, and will reject any application that proposes a budget that exceeds the maximum per participant cost of $480.
All other information in the December 22, 2015, notice remains unchanged.
You may also access documents of the Department published in the
Federal Student Aid, Department of Education.
Notice.
The Secretary announces the 2016-2017 award year deadline dates for the submission of requests and documents from postsecondary institutions for the Federal Perkins Loan, Federal Work-Study (FWS), and Federal Supplemental Educational Opportunity Grant (FSEOG) programs (collectively, the “campus-based programs”).
The Federal Perkins Loan program encourages institutions to make low-interest, long-term loans to needy undergraduate and graduate students to help pay for their education.
The FWS program encourages the part-time employment of needy undergraduate and graduate students to help pay for their education and to involve the students in community service activities.
The FSEOG program encourages institutions to provide grants to exceptionally needy undergraduate students to help pay for their education.
The Federal Perkins Loan, FWS, and FSEOG programs are authorized by parts E and C, and part A, subpart 3, respectively, of title IV of the Higher Education Act of 1965, as amended.
Throughout the year, in its “Electronic Announcements,” the Department will continue to provide additional information for the individual deadline dates listed in the table under the
If you submit paper documents when permitted by mail or by hand delivery (or from a commercial courier), we accept as proof one of the following:
(1) A legible mail receipt with the date of mailing stamped by the U.S. Postal Service.
(2) A legibly dated U.S. Postal Service postmark.
(3) A dated shipping label, invoice, or receipt from a commercial courier.
(4) Any other proof of mailing or delivery acceptable to the Secretary.
If you mail your paper documents through the U.S. Postal Service, we do not accept either of the following as proof of mailing:
(1) A private metered postmark.
(2) A mail receipt that is not dated by the U.S. Postal Service.
The U.S. Postal Service does not uniformly provide a dated postmark. Before relying on this method, you should check with your local post office.
All institutions are encouraged to use certified or at least first-class mail.
The Department accepts hand deliveries from you or a commercial courier between 8:00:00 a.m. and 4:30:00 p.m., Washington, DC time, Monday through Friday except Federal holidays.
A more detailed discussion of each request for funds or waiver is provided in specific “Electronic Announcements,” which are posted on the Department's IFAP Web site (
(1) Student Assistance General Provisions, 34 CFR part 668.
(2) General Provisions for the Federal Perkins Loan Program, Federal Work-Study Program, and Federal Supplemental Educational Opportunity Grant Program, 34 CFR part 673.
(3) Federal Perkins Loan Program, 34 CFR part 674.
(4) Federal Work-Study Program, 34 CFR part 675.
(5) Federal Supplemental Educational Opportunity Grant Program, 34 CFR part 676.
(6) Institutional Eligibility under the Higher Education Act of 1965, as amended, 34 CFR part 600.
(7) New Restrictions on Lobbying, 34 CFR part 82.
(8) Governmentwide Requirements for Drug-Free Workplace (Financial Assistance), 34 CFR part 84.
(9) Governmentwide Debarment and Suspension (Nonprocurement), 2 CFR part 3485.
(10) Drug and Alcohol Abuse Prevention, 34 CFR part 86.
Pat Stephenson, Manager, Campus-Based Programs, U.S. Department of Education, Federal Student Aid, 830 First Street NE., Union Center Plaza, Room 64F2, Washington, DC 20202-5453. Telephone: (202) 377-3782 or via email:
If you use a telecommunications device for the deaf (TDD) or a text telephone (TTY), call the Federal Relay Service, toll free, at 1-800-877-8339.
You may also access documents of the Department published in the
20 U.S.C. 1070b
Office of Postsecondary Education (OPE), 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 March 21, 2016.
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 Ashley Higgins, 202-219-7061.
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.
The Federal Energy Regulatory Commission (Commission) hereby gives notice that members of the Commission and/or Commission staff may attend the following MISO-related meetings:
Unless otherwise noted all of the meetings above will be held at either:
Further information and dial in instructions may be found at
The above-referenced meetings are open to the public.
The discussions at each of the meetings described above may address matters at issue in the following proceedings:
For more information, contact Patrick Clarey, Office of Energy Markets Regulation, Federal Energy Regulatory Commission at (317) 249-5937 or
The staff of the Federal Energy Regulatory Commission (FERC or Commission) will prepare an environmental assessment (EA) that will discuss the environmental impacts of the Magnum Gas Storage Amendment Project (Project) involving construction and operation of facilities by Magnum Gas Storage, LLC (Magnum) in Millard, Juab, and Utah Counties, Utah. The Commission will use this EA in its decision-making process to determine whether the project is in the public convenience and necessity. The proposed Project is an Amendment to the Certificate of Public Convenience and Necessity (Certificate) issued on March 17, 2011 in Docket No. CP10-22-000 to Magnum. The Certificate authorized Magnum to construct, own, and operate a natural gas storage facility in Millard, Juab, and Utah Counties Utah, with related facilities including a 61.6 mile long, 36-inch diameter natural gas header pipeline (Header).
This notice announces the opening of the scoping process the Commission will use to gather input from the public and interested agencies on the project. You can make a difference by providing us with your specific comments or concerns about the project. Your comments should focus on the potential environmental effects, reasonable alternatives, and measures to avoid or lessen environmental impacts. Your input will help the Commission staff determine what issues they need to evaluate in the EA. To ensure that your comments are timely and properly recorded, please send your comments so that the Commission receives them in Washington, DC on or before February 16, 2016.
If you sent comments on this project to the Commission before the opening of this docket on November 16, 2015, you will need to file those comments in Docket No. CP16-18-000 to ensure they
This notice is being sent to the Commission's current environmental mailing list for this project. State and local government representatives should notify their constituents of this proposed project and encourage them to comment on their areas of concern.
If you are a landowner receiving this notice, a Magnum representative may contact you about the acquisition of an easement to construct, operate, and maintain the proposed facilities. The company would seek to negotiate a mutually acceptable agreement. However, if the Commission approves the project, that approval conveys with it the right of eminent domain. Therefore, if easement negotiations fail to produce an agreement, the pipeline company could initiate condemnation proceedings where compensation would be determined in accordance with state law.
Magnum provided landowners with a fact sheet prepared by the FERC entitled
For your convenience, there are three methods you can use to submit your comments to the Commission. The Commission encourages electronic filing of comments and has expert staff available to assist you at (202) 502-8258 or
(1) You can file your comments electronically using the
(2) You can file your comments electronically by using the
(3) You can file a paper copy of your comments by mailing them to the following address. Be sure to reference the project docket number (CP16-18-000) with your submission:Kimberly D. Bose, Secretary,Federal Energy Regulatory Commission,888 First Street NE Room 1A,Washington, DC 20426.
For this Amendment, Magnum is proposing the following changes to its facilities, all within the previously analyzed and approved project area:
• Brine evaporation pond 1;
• monitoring wells DA-1 and DA-2; and
• monitoring wells, GA-1, GA-2, GA-9, GA-10, and GA-11.
• A 6,252-foot-long segment of the header pipeline would be relocated 63 feet north, west of Jones road in Millard County, Utah.
• Four natural gas caverns;
• water wells 1 through 5;
• compression, dehydration, and pumping facilities;
• 4-inch gas supply line;
• maintenance and laydown area;
• office/warehouse building and substation; and
• site-wide utilities.
The general location of the project facilities is shown in appendix 1.
For the Magnum Project approved in the March 17, 2011 Order, construction and operation would require the use of approximately 1,800 acres of land. The gas storage facilities would be located on a 2,050 acre site. Approximately 28 miles of the 61.6-mile-long Header would be collocated with the existing Utah-Nevada and Kern River Gas Pipelines. Also, a portion of the Header would also be located within the West Wide Energy Corridor. For the proposed Amendment, a 6,252-foot-long segment of the header pipeline would be relocated 63 feet north, west of Jones road. Magnum is not proposing any changes to the temporary or permanent right-of-way width for this portion of the Header alignment. Therefore, the previously approved temporary and permanent disturbance acreage would not increase.
The National Environmental Policy Act (NEPA) requires the Commission to take into account the environmental impacts that could result from an action whenever it considers the issuance of a Certificate of Public Convenience and Necessity. NEPA also requires us
In the EA we will discuss impacts that could occur as a result of the construction and operation of the proposed project under these general headings:
• Geology and soils;
• land use;
• water resources, fisheries, and wetlands;
• cultural resources;
• vegetation and wildlife, including migratory birds;
• air quality and noise;
• endangered and threatened species;
• public safety; and
• cumulative impacts.
We will also evaluate reasonable alternatives to the proposed project or portions of the project, and make recommendations on how to lessen or avoid impacts on the various resource areas.
The EA will present our independent analysis of the issues. The EA will be available in the public record through eLibrary. Depending on the comments received during the scoping process, we may also publish and distribute the EA to the public for an allotted comment period. We will consider all comments on the EA before making our recommendations to the Commission. To ensure we have the opportunity to consider and address your comments, please carefully follow the instructions in the Public Participation section, beginning on page 2.
With this notice, we are asking agencies with jurisdiction by law and/or special expertise with respect to the
In accordance with the Advisory Council on Historic Preservation's implementing regulations for section 106 of the National Historic Preservation Act, we are using this notice to initiate consultation with the applicable State Historic Preservation Office (SHPO), and to solicit their views and those of other government agencies, interested Indian tribes, and the public on the project's potential effects on historic properties.
The environmental mailing list includes: Federal, state, and local government representatives and agencies; elected officials; environmental and public interest groups; Native American Tribes; other interested parties; and local libraries and newspapers. This list also includes all affected landowners (as defined in the Commission's regulations) who are potential right-of-way grantors, whose property may be used temporarily for project purposes, or who own homes within certain distances of aboveground facilities, and anyone who submits comments on the project. We will update the environmental mailing list as the analysis proceeds to ensure that we send the information related to this environmental review to all individuals, organizations, and government entities interested in and/or potentially affected by the proposed project.
Copies of the EA will be sent to the environmental mailing list for public review and comment. If you would prefer to receive a paper copy of the document instead of the CD version or would like to remove your name from the mailing list, please return the attached Information Request (appendix 2).
In addition to involvement in the EA scoping process, you may want to become an “intervenor” which is an official party to the Commission's proceeding. Intervenors play a more formal role in the process and are able to file briefs, appear at hearings, and be heard by the courts if they choose to appeal the Commission's final ruling. An intervenor formally participates in the proceeding by filing a request to intervene. Instructions for becoming an intervenor are in the “Document-less Intervention Guide” under the “e-filing” link on the Commission's Web site. Motions to intervene are more fully described at
Additional information about the project is available from the Commission's Office of External Affairs, at (866) 208-FERC, or on the FERC Web site at
In addition, the Commission offers a free service called eSubscription which allows you to keep track of all formal issuances and submittals in specific dockets. This can reduce the amount of time you spend researching proceedings by automatically providing you with notification of these filings, document summaries, and direct links to the documents. Go to
Finally, public meetings or site visits will be posted on the Commission's calendar located at
Take notice that on December 30, 2015, Columbia Gas Transmission, LLC (Columbia), 5151 San Felipe, Suite 2500, Houston, TX 77056, filed an application pursuant to section 7(c) of the Natural Gas Act (NGA) and Part 157 of the Commission's Regulations requesting authority to construct and operate its WB Xpress Project which would include: (i) The construction of approximately 29.2 miles of various diameter pipeline, (ii) modifications to seven existing compressor stations, (iii) construction of two new compressor stations, and (iv) uprating the maximum allowable operating pressure (MAOP) on various segments of Columbia's existing Line WB and Line VB natural gas transmission systems. The WB Xpress Project facilities are designed to expand the capacity of Columbia's existing system to transport up to approximately 1.3 million dekatherms per day (MMDth/d) of natural gas. Facilities to be constructed or uprated are located in Clay, Kanawha, Grant, Upshur, Randolph, Pendleton, Braxton, and Hardy Counties, West Virginia and in Clark, Fauquier, Fairfax, Loudoun, Shenandoah, and Warren Counties, Virginia. The cost to construct the project facilities is approximately 780 million dollars.
The filing may be viewed on the web at
Any questions concerning this application should be directed to Michael D. Walker, Manager, FERC Certificates, Columbia Gas Transmission, LLC, P.O. Box 1273 Charleston, West Virginia 25325, phone: (304) 357-2443, Fax: (304) 357-2770, or email
On April 16, 2015 the Commission granted Columbia's request to utilize the Pre-Filing Process and assigned Docket No. PF15-21-000 to staff activities involved in the WB Xpress Project. Now, as of the filing of the December 30 application, the Pre-Filing Process for this Project has ended. From this time forward, this proceeding will be conducted in Docket No. CP16-38-000 as noted in the caption of this Notice.
Pursuant to section 157.9 of the Commission's rules, 18 CFR 157.9, within 90 days of this Notice the Commission staff will either: Complete its environmental assessment (EA) and place it into the Commission's public record (eLibrary) for this proceeding, or issue a Notice of Schedule for Environmental Review. If a Notice of Schedule for Environmental Review is issued, it will indicate, among other milestones, the anticipated date for the Commission staff's issuance of the final environmental impact statement (FEIS) or EA for this proposal. The filing of the EA in the Commission's public record for this proceeding or the issuance of a Notice of Schedule will serve to notify federal and state agencies of the timing for the completion of all necessary reviews, and the subsequent need to complete all federal authorizations within 90 days of the date of issuance of the Commission staff's FEIS or EA.
There are two ways to become involved in the Commission's review of this project. First, any person wishing to obtain legal status by becoming a party to the proceedings for this project should, on or before the comment date stated below, file with the Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, a motion to intervene in accordance with the requirements of the Commission's Rules of Practice and Procedure (18 CFR 385.214 or 385.211) and the Regulations under the NGA (18 CFR 157.10). A person obtaining party status will be placed on the service list maintained by the Secretary of the Commission and will receive copies of all documents filed by the applicant and by all other parties. A party must submit 5 copies of filings made with the Commission and must mail a copy to the applicant and to every other party in the proceeding. Only parties to the proceeding can ask for court review of Commission orders in the proceeding.
However, a person does not have to intervene in order to have comments considered. The second way to participate is by filing with the Secretary of the Commission, as soon as possible, an original and two copies of comments in support of or in opposition to this project. The Commission will consider these comments in determining the appropriate action to be taken, but the filing of a comment alone will not serve to make the filer a party to the proceeding. The Commission's rules require that persons filing comments in opposition to the project provide copies of their protests only to the party or parties directly involved in the protest.
Persons who wish to comment only on the environmental review of this project should submit an original and two copies of their comments to the Secretary of the Commission. Environmental commenters will be placed on the Commission's environmental mailing list, will receive copies of the environmental documents, and will be notified of meetings associated with the Commission's environmental review process. Environmental commenters will not be required to serve copies of filed documents on all other parties. However, the non-party commenters will not receive copies of all documents filed by other parties or issued by the Commission (except for the mailing of environmental documents issued by the Commission) and will not have the right to seek court review of the Commission's final order.
The Commission strongly encourages electronic filings of comments, protests and interventions in lieu of paper using the “eFiling” link at
Take notice that the Commission received the following electric corporate filings:
Take notice that the Commission received the following exempt wholesale generator filings:
Take notice that the Commission received the following electric rate filings:
Take notice that the Commission received the following electric securities filings:
The filings are accessible in the Commission's eLibrary system by clicking on the links or querying the docket number.
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.
eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at:
On October 13, 2015, the City of Springfield, Massachusetts (Springfield) filed an application for a preliminary permit, pursuant to section 4(f) of the Federal Power Act (FPA), proposing to study the feasibility of the Watershops Pond Dam Hydroelectric Project (project) to be located on the Mill River, near Springfield, Hampden County, Massachusetts. The sole purpose of a preliminary permit, if issued, is to grant the permit holder priority to file a license application during the permit term. A preliminary permit does not authorize the permit holder to perform any land-disturbing activities or otherwise enter upon lands or waters owned by others without the owners' express permission.
The proposed project would consist of: (1) The existing 105-foot-long, 32-foot-high, concrete and masonry gravity Watershops Pond dam; (2) an existing 198-acre impoundment with a normal maximum water surface elevation of 155 feet above mean sea level; (3) a new 7-foot-long, 4-foot-wide steel penstock; (4) a new 100-foot-long, 30-foot-wide powerhouse containing a single turbine generator unit with an installed capacity of 145 kilowatts; (5) a new 800-foot-long, 0.48-kilovolt transmission line; and (6) appurtenant facilities. The project would have an estimated average annual energy generation of 707 megawatt-hours. There are no federal lands associated with the project.
Deadline for filing comments, motions to intervene, competing applications (without notices of intent), or notices of intent to file competing applications: 60 days from the issuance of this notice. Competing applications and notices of intent must meet the requirements of 18 CFR 4.36.
The Commission strongly encourages electronic filing. Please file comments, motions to intervene, notices of intent, and competing applications using the Commission's eFiling system at
More information about this project, including a copy of the application, can be viewed or printed on the “eLibrary” link of Commission's Web site at
Take notice that sellers with market-based rate authority need not submit reports for the fourth quarter of 2015 documenting the acquisition of control of sites for new generation capacity development (land acquisition reports). Order No. 816,
On December 4, 2015, ORPC Maine, LLC (ORPC Maine) filed an application
The proposed project would consist of: (1) 15 double TidGen® TGU hydrokinetic tidal devices, each consisting of a 500-kilowatt turbine-generator unit for a combined capacity of 5,000 kilowatts; (2) an anchoring support structure; (3) a mooring system; (4) a 3,900 to 4,200-foot-long submersible cable connecting the turbine-generator units to a shore station; (5) a 1,900 to 4,600-foot-long, 4.16- to 12.7-kilovolt transmission line connecting the shore station to an existing distribution line; and (6) appurtenant facilities. The estimated average annual generation of the Western Passage Project would be 2.6 to 3.53 gigawatt-hours. There are no federal lands associated with the project.
The Commission strongly encourages electronic filing. Please file comments, motions to intervene, notices of intent, and competing applications using the Commission's eFiling system at
More information about this project, including a copy of the application, can be viewed or printed on the “eLibrary” link of Commission's Web site at
Take notice that the Commission received the following electric rate filings:
Docket Numbers: ER10-2822-008; ER12-2076-005; ER11-2462-006; ER11-2463-006; ER11-2112-007; ER12-2077-005; ER12-2078-005; ER10-2828-003; ER11-2464-006; ER10-3158-006; ER10-2942-005; ER12-2081-005; ER12-2083-005; ER12-2084-005; ER10-2423-006; ER10-2404-006; ER12-2086-005; ER12-2649-003; ER10-1725-003; ER11-2465-007; ER14-2676-002; ER10-2994-013; ER11-2466-006; ER11-2467-006; ER11-2468-006; ER11-2469-006; ER11-2470-006; ER11-2471-006; ER11-2472-006; ER10-3001-004; ER10-3002-003; ER10-3004-004; ER12-308-006; ER12-2108-005; ER12-2097-005; ER12-2101-005; ER10-3162-006; ER12-422-005; ER12-2102-006; ER12-2109-005; ER11-2473-006; ER10-3010-003; ER12-2106-005; ER11-2196-007; ER10-3161-006; ER12-96-005; ER11-2474-008; ER10-3031-003; ER12-2107-005; ER11-2475-006; ER10-2285-005; ER10-2301-003; ER10-2306-003; ER10-3160-002; ER10-2812-013; ER10-1291-020; ER10-2843-012.
Applicants: Atlantic Renewables Projects II LLC, Barton Windpower LLC, Big Horn Wind Project LLC, Big Horn II Wind Project LLC, Blue Creek Wind Farm LLC, Buffalo Ridge I LLC, Buffalo Ridge II LLC, Casselman Windpower LLC, Colorado Green Holdings LLC, Dillon Wind LLC, Elk River Windfarm, LLC, Elm Creek Wind, LLC, Elm Creek Wind II LLC, Farmers City Wind, LLC, Flat Rock Windpower LLC, Flat Rock Windpower II LLC, Flying Cloud Power Partners, LLC, Groton Wind, LLC, Hardscrabble Wind Power LLC, Hay Canyon Wind LLC, Iberdrola Arizona Renewables, LLC, Iberdrola Renewables, LLC, Juniper Canyon Wind Power LLC, Klamath Energy LLC, Klamath Generation LLC, Klondike Wind Power LLC, Klondike Wind Power II LLC, Klondike Wind Power III LLC, Leaning Juniper Wind Power II LLC, Lempster Wind, LLC, Locust Ridge Wind Farm, LLC, Locust Ridge II, LLC, Manzana Wind LLC, MinnDakota Wind LLC, Moraine Wind LLC, Moraine Wind II LLC, Mountain View Power Partners III, LLC, New England Wind, LLC, New Harvest Wind Project LLC, Northern Iowa Windpower II LLC, Pebble Springs Wind LLC, Providence Heights Wind, LLC, Rugby Wind LLC, San Luis Solar LLC, Shiloh I Wind Project, LLC, South Chestnut LLC, Star Point Wind Project LLC, Streator-Cayuga Ridge Wind Power LLC, Trimont Wind I LLC, Twin Buttes Wind LLC, Central Maine Power Company, New York State Electric & Gas Corporation, Rochester Gas & Electric Corporation, The United Illuminating Company, GenConn Devon LLC, GenConn Energy LLC, GenConn Middletown LLC.
Description: Notice of Change in Status of the AVANGRID MBR Sellers.
Filed Date: 1/14/16.
Accession Number: 20160114-5314.
Comments Due: 5 p.m. ET 2/4/16.
Docket Numbers: ER12-1895-000; EL12-110-000; ER11-3657-000; EL11-64-000.
Applicants: Entergy Services, Inc.
Description: Entergy Services, Inc. submits tariff filing per 35.19a(b): Refund Report to be effective N/A.
Filed Date: 1/14/16.
Accession Number: 20160114-5336.
Comments Due: 5 p.m. ET 2/4/16.
Docket Numbers: ER15-762-006; ER15-760-005; ER15-1579-004; ER 15-1582-005; ER15-1914-006; ER15-1896-004.
Applicants: Sierra Solar Greenworks LLC, Western Antelope Blue Sky Ranch A LLC, 67RK 8me LLC, 65HK 8me LLC, 87RL 8me LLC, Eden Solar, LLC.
Description: Notice of Non-Material Change in Status of Sierra Solar Greenworks LLC, et. al.
Filed Date: 1/14/16.
Accession Number: 20160114-5315.
Comments Due: 5 p.m. ET 2/4/16.
Docket Numbers: ER16-731-000.
Applicants: Green Country Energy, LLC.
Description: Market-Based Triennial Review Filing: Green Country Energy
Filed Date: 1/14/16.
Accession Number: 20160114-5363.
Comments Due: 5 p.m. ET 3/14/16.
Docket Numbers: ER16-732-000.
Applicants: Consolidated Edison Company of New York, Inc.
Description: § 205(d) Rate Filing: Surcharge—Targeted Demand Management Program and Demo Projects to be effective 1/15/2016.
Filed Date: 1/14/16.
Accession Number: 20160114-5378.
Comments Due: 5 p.m. ET 2/4/16.
The filings are accessible in the Commission's eLibrary system by clicking on the links or querying the docket number.
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.
eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at:
Take notice that KC Lake Hydro LLC (KC Hydro) filed a letter on January 7, 2016, describing its decision to abandon the preliminary permit for the proposed North Hadley Lake Warner Dam Hydropower Project.
The preliminary permit for Project No. 14558 will remain in effect until the close of business, February 13, 2016. But, if the Commission is closed on this day, then the permit remains in effect until the close of business on the next day in which the Commission is open.
On August 25, 2015, Twain Resources, LLC, filed an application for a preliminary permit, pursuant to section 4(f) of the Federal Power Act (FPA), proposing to study the feasibility of the Scheelite Water Power Project (Scheelite Project or project) to be located along Pine Creek, near the City of Bishop, in Inyo County, California. The sole purpose of a preliminary permit, if issued, is to grant the permit holder priority to file a license application during the permit term. A preliminary permit does not authorize the permit holder to perform any land-disturbing activities or otherwise enter upon lands or waters owned by others without the owners' express permission.
The proposed project would consist of the following: (1) An intake receiving the water discharge from the Tungstar Redux Water Power Project; (2) an18-inch-diameter, approximately 6,500-foot-long steel penstock, conveying water to; (3) a powerhouse containing a single 810-kilowatt impulse turbine and an 840 kilovolt-ampere generator; (4) a new substation at the powerhouse; (5) an approximately 600-foot-long, 12-kilovolt (kV) transmission line connecting the substation to a 12-kV California Edison-owned transmission line; and (6) appurtenant facilities. The estimated annual generation of the Scheelite Project would be 4,860 megawatt-hours.
Applicant Contact: Mr. Doug Hicks, 280 Floreca Way, Reno, Nevada 89511, phone (775) 997-3429.
FERC Contact: Joseph Hassell; phone: (202) 502-8079.
Deadline for filing comments, motions to intervene, competing applications (without notices of intent), or notices of intent to file competing applications: 60 days from the issuance of this notice. Competing applications and notices of intent must meet the requirements of 18 CFR 4.36.
The Commission strongly encourages electronic filing. Please file comments, motions to intervene, notices of intent, and competing applications using the Commission's eFiling system at
More information about this project, including a copy of the application, can be viewed or printed on the “eLibrary” link of Commission's Web site at
Take notice that the following hydroelectric application has been filed with the Commission and is available for public inspection:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j. Deadline for filing comments, motions to intervene, protests, and recommendations is 30 days from the date of issuance of this notice. The Commission strongly encourages electronic filing. Please file motions to intervene, protests, comments, or recommendations using the Commission's eFiling system at
k.
l.
m. Individuals desiring to be included on the Commission's mailing list should so indicate by writing to the Secretary of the Commission.
n.
o.
Environmental Protection Agency (EPA).
Notice of availability.
This notice announces the availability of the final National Coastal Condition Assessment (NCCA) 2010. The NCCA describes the results of a nationwide coastal probabilistic survey that was conducted in the summer of 2010 by the Environmental Protection Agency (EPA) and its state, tribal, and federal partners. Results include estimates of coastal area with good, fair, and poor biological quality, water quality, sediment quality, and ecological fish tissue quality. Results are presented nationally and regionally for the Northeast, Southeast, Gulf of Mexico, West, and Great Lakes coasts. The NCCA 2010 also includes information on how the survey was implemented, and future actions and challenges.
Hugh Sullivan, Office of Wetlands, Oceans and Watersheds, Office of Water, Washington DC Phone: 202-564-1763; email:
To better answer questions about the condition of waters across the country, EPA and its state and tribal partners have embarked on a series of surveys under the National Aquatic Resource Surveys (NARS) program. The NCCA 2010 is the most recent in this series of surveys. The key goals of the NCCA 2010 are to describe the ecological condition of the nation's coastal and Great Lakes nearshore waters, how those conditions are changing, and the key stressors affecting those waters. An important component of the NCCA is collaboration with state, tribal, and
The report finds that more than half of the nation's coastal and Great Lakes nearshore waters are rated in good condition for biological and sediment quality, while about one third are rated in good condition for water quality and less than one percent are rated in good condition based on the potential harm that fish tissue contaminants pose to predator fish, birds, and wildlife. Excessive phosphorus is the greatest contributor to the poor water quality rating. Selenium is the greatest contributor to the poor rating for potential harm to predator fish, birds and wildlife from fish tissue contaminants. The draft report has undergone peer, state and EPA review.
You may access the NCCA 2010 from EPA's Web site at
Farm Credit System Insurance Corporation Board.
Notice is hereby given of the regular meeting of the Farm Credit System Insurance Corporation Board (Board).
The meeting of the Board will be held at the offices of the Farm Credit Administration in McLean, Virginia, on January 28, 2016, from 9:30 a.m. until such time as the Board concludes its business.
Dale L. Aultman, Secretary to the Farm Credit System Insurance Corporation Board, (703) 883-4009, TTY (703) 883-4056.
Farm Credit System Insurance Corporation, 1501 Farm Credit Drive, McLean, Virginia 22102. Submit attendance requests via email to
This meeting of the Board will be open to the public (limited space available). Please send an email to
Federal Communications Commission.
Notice.
The Commission announces the next meeting date, time, and agenda of its Consumer Advisory Committee (hereinafter the Committee). The mission of the Committee is to make recommendations to the Commission regarding consumer issues within the jurisdiction of the Commission and to facilitate the participation of consumers (including underserved populations, such as Native Americans, persons living in rural areas, older persons, people with disabilities, and persons for whom English is not their primary language) in proceedings before the Commission.
February 5, 2016, 9:00 a.m. to 4:00 p.m.
Federal Communications Commission, Commission Meeting Room TW-C305, 445 12th Street SW., Washington, DC 20554.
Scott Marshall, Consumer and Governmental Affairs Bureau, (202) 418-2809 (voice or Relay), or email
This is a summary of the Commission's document DA 16-40, released January 13, 2016, announcing the Agenda, Date, and Time of the Committee's Next Meeting.
At its February 5, 2016 meeting, the Committee is expected to consider a recommendation regarding the modernization of the Lifeline program to include broadband services and to improve administration presented by its Universal Services Working Group. The Committee will receive briefings from Commission staff and/or outside speakers on issues of interest to the Committee. A limited amount of time will be available for comments from the public. If time permits, the public may ask questions of presenters via the email address
The meeting is open to the public and the site is fully accessible to people using wheelchairs or other mobility aids. Sign language interpreters, open captioning, assistive listening devices, and Braille copies of the agenda and committee roster will be provided on site. Meetings of the Committee are also broadcast live with open captioning over the Internet from the FCC Live Web page at
Pursuant to the provisions of the “Government in the Sunshine Act” (5 U.S.C. 552b), notice is hereby given that the Federal Deposit Insurance Corporation's Board of Directors will meet in open session at 10:00 a.m. on Thursday, January 21, 2016, to consider the following matters:
Memorandum and resolution re: Notice of Proposed Rulemaking on Deposit Insurance Assessments for Small Banks.
The meeting will be held in the Board Room located on the sixth floor of the FDIC Building located at 550 17th Street NW., Washington, DC.
This Board meeting will be Webcast live via the Internet and subsequently made available on-demand approximately one week after the event. Visit
The FDIC will provide attendees with auxiliary aids (
Requests for further information concerning the meeting may be directed to Mr. Robert E. Feldman, Executive Secretary of the Corporation, at 202-898-7043.
Federal Election Commission.
Tuesday, January 26, 2016 at 10:00 a.m.
999 E Street NW., Washington, DC.
This meeting will be closed to the public.
Compliance matters pursuant to 52 U.S.C. 30109.
Matters concerning participation in civil actions or proceeding, or arbitration.
Judith Ingram, Press Officer, Telephone: (202) 694-1220.
The Commission hereby gives notice of the filing of the following agreements under the Shipping Act of 1984. Interested parties may submit comments on the agreements to the Secretary, Federal Maritime Commission, Washington, DC 20573, within twelve days of the date this notice appears in the
By Order of the Federal Maritime Commission.
Board of Governors of the Federal Reserve System.
On June 15, 1984, the Office of Management and Budget (OMB) delegated to the Board of Governors of the Federal Reserve System (Board) its approval authority under the Paperwork Reduction Act (PRA), to approve of and assign OMB numbers to collection of information requests and requirements conducted or sponsored by the Board. Board-approved collections of information are incorporated into the official OMB inventory of currently approved collections of information. Copies of the PRA Submission, supporting statements and approved collection of information instruments are placed into OMB's public docket files. The Federal Reserve may not conduct or sponsor, and the respondent is not required to respond to, an information collection that has been extended, revised, or implemented on or after October 1, 1995, unless it displays a currently valid OMB number.
Federal Reserve Board Clearance Officer—Nuha Elmaghrabi—Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, Washington, DC 20551 (202) 452-3829. Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors of the Federal Reserve System, Washington, DC 20551.
OMB Desk Officer—Shagufta Ahmed—Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW., Washington, DC 20503.
Final approval under OMB delegated authority of the extension for three years, with revision, of the following information collection:
As these data are collected as part of the supervisory process, they are subject to confidential treatment under exemption 8 of the Freedom of Information Act (FOIA) (5 U.S.C. 552(b)(8)). In addition, commercial and financial information contained in these information collections may be exempt from disclosure under exemption 4 of FOIA (5 U.S.C. 552(b)(4)), if disclosure would likely have the effect of (1) impairing the government's ability to obtain the necessary information in the future, or (2) causing substantial harm to the competitive position of the respondent. Such exemptions would be made on a case-by-case basis.
Though the Federal Reserve intends to share the information collected under the FR Y-14 with the Department of Treasury's Office of Financial Research, such sharing shall not be deemed a waiver of any privilege applicable to such information, including but not limited to any confidential status (12 U.S.C. 1821(t); 12 U.S.C. 1828(x)).
The Capital Assessments and Stress Testing information collection consists of the FR Y-14A, Q, and M reports. The semi-annual FR Y-14A collects information on the stress tests conducted by BHCs, including quantitative projections of balance sheet, income, losses, and capital across a range of macroeconomic scenarios, and qualitative information on methodologies used to develop internal projections of capital across scenarios.
The Board received two comment letters addressing the proposed changes: One from the Financial Services Roundtable, and one from The Clearing House, the Institute of International Bankers, the American Bankers Association, and the Securities Industry and Financial Markets Association. Comments focused on the scope and timing of the proposed attestation requirement, and the timing of proposed modifications to existing items or schedules, in particular the FR Y-14Q Wholesale schedules (Schedule H.1 and H.2). Commenters requested clarification of the instructions for proposed or existing items, or were technical in nature. Responses to these comments are addressed in the attached draft FR Y-14A/Q/M reporting forms and instructions.
The Federal Reserve also received several comments not directly related to the proposed revisions to the FR Y-14 information collection regarding (1) challenges with the frequency and timing of changes, (2) the Frequently Asked Questions (FAQ) process, (3) technical instructions and data submission processes, (4) edit checks and (5) estimate of reporting burden. Although not specifically addressed herein, these comment letters, well as feedback provided in meetings with both individual respondents and industry groups, have assisted the Federal Reserve's effort to continually improve its internal processes and practices. The following section includes a detailed discussion of aspects of the proposed FR Y-14 collection for which the Federal Reserve received substantive comments and an evaluation of, and responses to the comments received.
In general, commenters expressed concern with the timing of the proposed changes. Specifically commenters stated there was not sufficient time to undertake the changes necessary to implement the proposed revisions and develop appropriate processes and procedures surrounding the attestation requirement. One commenter recommended that the Federal Reserve provide a minimum of sixth months between the finalization of reporting and technical requirements and the effective date of proposed changes to the FR Y-14A/Q/M reports in order for respondents to adhere to standard software development life cycles.
In response to these comments, the final FR Y-14 regulatory report (final FR Y-14) delays the effective date for nearly all proposed changes to reports with a June 30, 2016, as-of date, as detailed in the schedule-specific sections below. This extension provides respondents with approximately six months to make needed system changes. In addition, the final FR Y-14 delays by two quarters, until September 30, 2016, the effective date of certain changes to the wholesale schedules (Schedules H.1 and H.2), as indicated in the schedule-specific section below.
Certain changes in the final FR Y-14 would take effect beginning with the regulatory reports that have a December 31, 2015, as-of date. These changes include the shift in the FR Y-14A as-of date, from September 30 to December 31, in accordance with modifications to the capital plan and stress test rules; formalization of the FR Y-14Q Business Plan Changes schedule as a regulatory report (rather than as a case-by-case supervisory collection of information); elimination of the FR Y-14Q Securities B.2 sub-schedule, and removal of certain items related to tier 1 common capital.
In response to the Federal Reserve's solicitation for feedback regarding burden associated with the FR Y-14A/Q/M, one commenter suggested that the estimates of reporting burden are substantially lower than a good-faith estimate provided by a sample of reporting firms. The commenter outlined the type of effort and resources, and associated burden required to file the FR Y-14A/Q/M reports and offered to engage in further discussion with the Federal Reserve regarding burden estimates. Burden estimates are based on a schedule by schedule calculation while the estimates provided by the commenter are aggregated. This difference makes it difficult to modify the proposed burden estimates without more detailed information from the commenter. For these reasons, the burden estimates remain the same as proposed.
Commenters also suggested several improvements to the current FAQ process, including providing status on a real time basis, establishing a searchable
In the proposal, the Federal Reserve notified respondents of the intent to share FR Y-14 data sets with the Office of Financial Research (OFR). One commenter recommended that the OFR publish aggregate summaries of the data so reporting companies, and the public, can gain insights into industry trends and developments.
Commenters generally expressed concerns about specific elements of the proposed attestation requirement for the FR Y-14 submission and, in particular, the timing necessary to meet the proposed requirements.
Both commenters argued that the proposed effective date of June 30, 2016, would not provide sufficient time to implement several of the proposed attestation requirements. However, one commenter agreed that it would be practical and appropriate for respondents to provide an attestation as to conformance with the FR Y-14 instructions by June 30, 2016, subject to the specific recommendations in the commenter's letter. Both commenters indicated that additional time was needed to adapt to The Committee of Sponsoring Organizations (COSO)-based framework, including materially supplementing and/or modifying existing systems and processes, and establishing policies, documentation, and certification frameworks. One commenter pointed out that, although some respondents may be able to leverage parts of their existing control infrastructure required under the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley), the scope and level of data granularity on the FR Y-14 forms is substantially larger than what is required under Sarbanes-Oxley and therefore beyond the capability of most firms. Finally, one commenter noted that the implementation of the various attestation requirements would require a significant investment in firm personnel, management, and compliance and information technology resources, and additional time for implementation would allow for more deliberate expansion and upgrade of existing processes and systems to support the attestation.
In light of the above, both commenters suggested alternative implementation timelines. One commenter noted that a major consulting firm estimated it would take a company 15 months to implement the controls necessary to assess risk information. The other commenter suggested a phased-in implementation approach, which would provide respondents additional time to make the more substantial alterations to existing systems and processes necessary to support certain components of the proposed attestation. The phased in approach would involve: (i) An attestation solely regarding compliance with the FR Y-14 instructions effective as of June 30, 2016, which is the same timeframe as in the proposal; (ii) an incremental requirement for respondents to demonstrate as part of the supervisory process, by April 2017, that a framework has been put in place to identify, test, and independently validate key control activities to support these attestations; and (iii) an attestation regarding the effectiveness of internal controls and to the material correctness of data as of April 2018.
In addition, one commenter indicated that the proposal appeared to require attestation to internal controls with each annual, quarterly and monthly FR Y-14 report submission, but that doing so would not be feasible at that frequency. The commenter suggested that the effectiveness of internal controls be limited to annual submissions on the FR Y-14A.
The Federal Reserve recognized in the initial
To clarify the timing of these staggered attestation requirements, the final Y-14 includes three separate attestation cover pages. First, as indicated, with respect to the monthly, quarterly, and annual FR Y-14 reports with a December 31, 2016, as-of date, respondents will attest to internal controls around the reports submitted as of that date. Second, effective for the monthly, quarterly, and semi-annual FR Y-14 reports submitted beginning January 31, 2017, and thereafter, respondents will attest on a separate cover page to the respondent's conformance with the FR Y-14 instructions and to the material correctness of data to the best of the respondent's knowledge, and agree to report material weaknesses and any material errors in the data as they are identified starting January 1, 2017. Third and finally, effective for reports with a December 31, 2017, as-of date and for all future FR Y-14 submissions as of December 31 of a calendar year, the initial December 31, 2016, cover page will be replaced by a new cover page that will be submitted annually and will include an attestation to the effectiveness of internal controls around the annual FR Y-14A submission and around the FR Y-14Q/M reports that are submitted throughout the year.
Commenters suggested various modifications to the attestation requirement and associated attestation language. One commenter noted that the proposal indicates that the Federal Reserve would not expect to penalize a firm for incorrect reporting where there has been a good faith effort to reasonably interpret the instructions or seek input on a question or interpretation from the Federal Reserve
Under the proposal, the firm's CFO would have been required to attest to the internal controls over the reporting of actual data as-of the reporting period. A commenter noted that internal controls over financial reporting and risk management data are the joint responsibility of senior management and that the CFO is not individually responsible for internal controls over the reporting of FR Y-14 data. The commenter suggested that the attestation form be modified to indicate that the CFO attests that senior management is responsible for the internal controls over the reporting of the FR Y-14 data. In response, the final FR Y-14 incorporates this modification to the attestation form.
Both commenters addressed the definition of materiality in the attestation language. One commenter expressed concern with the absence of a definition of “materiality” which inherently requires each respondent to make an individual determination on materiality. The other commenter requested that the Federal Reserve confirm that respondents would be expected to develop materiality policies based on their own capital plan submission. The Federal Reserve does not generally define materiality within the FR Y-14 reports.
Furthermore, outlining materiality for specific respondents would not be feasible. As stated in the
One commenter requested that the Federal Reserve make attestation requirements applicable to the intermediate holding company (IHC) subsidiaries of LISCC foreign banking organizations (FBOs) no earlier than April 2018. On February 18, 2014, the Board adopted a final rule implementing enhanced prudential standards for FBOs,
At such time as the Board proposes reporting requirements for IHCs, the Federal Reserve expects to invite comment through a notice and comment process, and would evaluate the particular circumstances and challenges surrounding IHC formation vis-à-vis the full spectrum of Board regulatory reporting requirements. The Federal Reserve does, however, reiterate that the attestation requirement applies to LISCC firms.
Related to the proposed modifications to the collection in accordance with revisions to the capital plan and stress test rules, specifically elimination of the use of the tier 1 common ratio, one commenter noted that as of the end of the comment period, the changes to the capital plan and stress test rules had not yet been finalized and asked that the Federal Reserve reflect any changes in the final release of the FR Y-14 forms. On November 25, 2015, the Board approved the final rule to modify the capital plan and stress test rules. Accordingly, and in response to the comment, the final FR Y-14 removes items relating to the reporting of “tier 1 common capital” as proposed from the following schedules in order to align with the final rule: FR Y-14A General RWA (Schedule A.1.c.1), Standardized RWA (Schedule A.1.c.2), Capital (Schedule A.1.d), Regulatory Capital Transitions (Schedule D.4), Regulatory Capital Instruments (RCI, Schedule C), and the FR Y-14Q Regulatory Capital Transitions (Schedule D.4) and Regulatory Capital Instruments (Schedule C).
Both commenters supported the removal of items related to tier 1 capital consistent with the rule, however recommended removing the items from the technical instructions in order to limit the number of edit checks respondents are required to respond to, rather than keeping these items in the technical instructions as proposed. The Federal Reserve recognizes the burden of responding to edits, as well as the technical effort by both the Federal Reserve and respondents to incorporate report changes. The Federal Reserve will keep the tier 1 common capital-related items in the FR Y-14A Summary schedule (Schedule A) technical instructions in order to mitigate the operational risk of making changes as proposed; however, to address the commenters concerns and reduce the burden on respondents, edit checks on these items will be eliminated and responses will not be requested.
Under the proposal, the Standardized RWA (FR Y-14A, Schedule A.1.c.2) and Regulatory Capital Transitions (FR Y-14A, Schedule D.4 and FR Y-14Q, Schedule D.4) schedules would have been revised by replacing the existing market-risk weight asset portion with the relevant items from the FFIEC 102 and aligning the remaining items with the FR Y-9C Schedule HC-R Part II. Both commenters noted that the aforementioned changes were effective for the Standardized RWA schedule (FR Y-14A, Schedule A.1.c.d) as-of December 31, 2015 and for the Regulatory Capital Instruments schedules (FR Y-14A Schedule D.4, FR Y-14Q Schedule D.4) as-of June 30, 2016. They recommended that the effective dates be consistent and delayed until June 30, 2016. In response, the changes for all three schedules (FR Y-14A, A.1.c.2 (Standardized RWA), D.4 (RCT) and 14Q D.4 (RCT) will be implemented as modified below, effective June 30, 2016.
One commenter expressed concern that these modifications would require an unnecessary level of forecasting granularity around Market Risk RWA and recommended that this level of detail not be included in the final version. The other commenter stated they had no objection to the changes as proposed. In response to the comment received, the Federal Reserve further reviewed the items proposed to be added to these schedule in alignment with the FFIEC 102. In light of these comments, the final FR Y-14 removes the requirement to report projections for certain more granular proposed items from the FR Y14A Standardized RWA (Schedule A.1.c.2) and Regulatory Capital Transitions (Schedule D.4) schedules, while retaining general alignment with the structure of the FFIEC 102 report and reporting of the actual information. These changes will
Commenters expressed concern with the proposal to break out the Retail Repurchase schedule from the Summary (Schedule A) and moving the submission date in line with the quarterly schedules given the schedule contains projected data as well as actual data. The commenters were also concerned that the proposed effective date of June 30, 2016 would not allow respondents enough time to implement the necessary controls and processes required to submit the new semi-annual schedule and recommended delaying implementation an additional six months to be effective December 31, 2016. The Federal Reserve agrees that the projected data should remain part of the Summary (Schedule A) and confirms that the new FR Y-14A semi-annual schedule breaks out only the actual data from the existing Retail Repurchase schedule (Schedule A.2.b). Given the information to be collected on both schedules is already reported on the FR Y-14A, the restructuring changes only the submission date for actual not projected data, and that the submission date is more than six months out, the final FR Y-14 proceeds with this change as indicated above, effective June 30, 2016 as proposed.
The Federal Reserve proposed eliminating this schedule effective as-of June 30, 2016. One commenter recommended that the Federal Reserve eliminate this schedule as-of December 31, 2015. The other commenter noted that although they have previously requested a six month window between the finalization of changes and effective date, it is less burdensome to remove a minor reporting item and therefore supported the change as proposed. In an effort to allow as much time as possible between finalization and the effective date for both the removal and addition of items and in support of limiting the changes effective for the December 31, 2015 as-of date, the final FR Y-14 implements this change as proposed.
In an effort to reduce burden, the Federal Reserve proposed aligning this schedule with the “normal environment” requirement. There were no questions or concerns on the proposed change, however one commenter requested that the Federal Reserve periodically review whether the items to be submitted are still necessary and propose removing those that are not. The Federal Reserve continues to review the FR Y-14 and propose to remove items as they are no longer necessary, as evidenced in this proposal with the removal of two schedules and other items. Upon further review, the final FR Y-14 eliminates three additional variables from the PPNR Metrics schedule (Schedule A.7.c): Merchant Banking/Private Equity—Assets Under Management (Line 27), Sales and Trading—Total Proprietary Trading Revenue (Line 29), and Investment Services—Corporate Trust Deals Administered (Line 43). In addition, a materiality threshold will be added to the investment banking metrics of the PPNR Metrics schedule to further limit the amount of detail required for many firms. The instructions will be updated to indicate that only firms who report greater than $100 million in item 15, Investment Banking, of Schedule A.7.a (PPNR Projections) should report the investment banking metrics (Lines 11 to 26) in Section A of Schedule A.7.c (PPNR Metrics). The Federal Reserve will continue to review the FR Y-14 reports for unnecessary items for potential elimination in future proposals. In addition, in response to the general request for additional time to implement changes, the effective date of all modifications to this schedule will be delayed until June 30, 2016.
One commenter supported the formalization of the Business Plan Changes (BPC) schedule (Schedule F), but was concerned that the BPC schedule instructions as proposed did not appear consistent with the FR Y-14A summary and did not incorporate previous FAQ guidance. The commenter also requested that clarification on the definition of “material”. The final FR Y-14 BPC instructions have been updated to identify a limited number of items on the BPC schedule which, for technical reasons, require different instructions. In addition, the final FR Y-14 instructions have been updated to include certain clarifications from the FAQ process. Finally, the requirement to report the BPC schedule is based on whether the BHC includes material business plan changes in their capital plan, as defined in the CCAR instructions. In response, the final FR Y-14 includes updates to the BPC instructions to refer BHCs to the CCAR instructions for a given year for requirements of materiality.
The majority of comments received regarding the FR Y-14Q requested clarification of item definitions and will be addressed in the final instructions. Several substantive comments, particularly on the Wholesale Corporate Loan (Schedule H.1) and Commercial Real Estate (Schedule H.2) schedules, are summarized below.
Commenters requested additional information on the proposed change to the loan population on the Retail schedule. They noted that the initial notice in the
One commenter expressed concern with the effective date of the proposal to exclude non-purpose loans for purchasing and carrying securities from this schedule as it requires changes to complex, product-specific loan tagging rules, including for loans already tagged for months in the quarter. The commenter requested that the Federal Reserve make this change effective as-of June 30, 2016. The effective date of this change, as well as the complementary changes to the FR Y-14Q Wholesale (Schedule H.1) and Balances (Schedule M) schedules until the report as-of June 30, 2016.
Both commenters requested clarification on the intended effective date of this change and the nature of the one-time submissions. The additions and modifications will be implemented as proposed, however in response to the general request to provide additional time to implement changes, the effective date of the changes proposed for December 31, 2015 will be delayed until the report as-of June 30, 2016. As a result, all proposed changes to the RCI schedule will be effective June 30, 2016, at which time there will be one separate
As with the corresponding changes to the FR Y-14A Standardized RWA (Schedule A.1.c.2) and RCT (D.4) schedules, commenters noted the inconsistent effective dates and recommended that the proposed changes to the FR Y-14Q RCT (Schedule D.4) also be effective June 30, 2016. The Federal Reserve agrees with this suggestion and the proposed changes will be made effective as-of June 30, 2016.
As noted in regards to the FR Y-14A, one commenter expressed concern that the proposed modifications would require an unnecessary level of forecasting granularity around Market Risk RWA. Since the FR Y-14Q RCT Schedule (Schedule D.4) does not require any projected data, the changes to the FR Y-14Q RCT schedule will be implemented as proposed effective June 30, 2016.
One commenter noted that the Federal Reserve should not eliminate the deposit funding threshold for submission of the Net Interest Income (NII) worksheet and require all respondents to submit such schedules. Specifically, the commenter stated that requiring firms to submit the NII templates would impose undue burden and offered an alternative of only completing the banking book assets and liabilities rather than both trading book and banking book. The Federal Reserve notes that the schedule separates out specific instructions related to trading and banking book expectations and the trading line items are already required to be completed for other regulatory reporting purposes (FR Y-9C). Furthermore, the underlying NII reporting systems are already required as part of separate supervisory expectations related to interest rate risk identification. Finally, collecting this information will enhance the comparability of assets and liabilities across BHCs and promote greater consistency in supervisory evaluations. Therefore, the changes do not appear to impose unnecessary burden and the final FR Y-14 implements the revisions as proposed.
One commenter stated that the
Both commenters expressed concerns with the effective date of the changes to the Corporate Loan and CRE schedules, especially regarding the disposed loan and syndicated pipeline reporting. In particular commenters explained that respondents may need to update systems to capture and report the information required as proposed. They also noted that the non-purpose loans were proposed to be included on the Corporate Loan schedule (H.1) as-of December 31, 2015, but that the new purpose codes associated with those loans were proposed to be effective March 31, 2016 and asked that the changes be implemented concurrently. In response to the aforementioned comments and in consideration of the additional time needed to implement changes, the changes related to disposed loans and the syndicated pipeline will be effective September 30, 2016, and all other changes to the Corporate Loan and Commercial Real Estate schedules effective as-of June 30, 2016.
Commenters requested clarification on the definition and purpose of disposed loans as it relates the expansion of the loan population and the proposed Disposition Flag field. Specifically, they questioned whether facility information should be reported as-of the disposition date and if that means capturing balances and data prior to the actual payoff or charge-off of the facility. The Federal Reserve confirms that the data should be reported as-of the date of disposition, not prior to the payoff or charge-off of the facility.
In addition, one commenter recommended adding Disposition Flag values for when loans fall under the $1M reporting threshold, or shift from one loan schedule to another. In response, the final FR Y-14 adds two options to the Disposition Flag field. In addition, to accommodate the new item for facilities shifting from one schedule to another, the final FR Y-14 adds an additional field to capture to which schedule the facility shifted.
The Federal Reserve proposed expanding the options of the Participation Flag item to include the Shared National Credit (SNC) program. One commenter stated that some respondents are classified as expanded reporters and, therefore, subject to a broader data collection referred to as “Large Corporate Syndicated Credit” (LCSC) and therefore recommended that all references to SNCs in the proposal be clarified to include all LCSC eligible credits as well for respondents that are classified as expanded reporters. The Federal Reserve confirms that intent of the new proposed options in the Participation Loan Flag are, in conjunction with the SNC Internal Credit Facility ID, to distinguish whether or not the credit facility is included in the SNC report. Accordingly, the final FR Y-14 implements the change as proposed, effective June 30, 2016.
Both commenters indicated that two items for the Credit Rating Agency Equivalent Rating field (Field 96, 97 of Schedule H.1 and Field 59, 60 of Schedule H.2) were included in the draft instructions but not proposed as changes and therefore had no specified effective date. Commenters had several questions regarding the reporting of these items. The Federal Reserve confirms that these items were erroneously included in the draft instructions, were not proposed to be added, and therefore will not be implemented. These items have been removed from the final FR Y-14 instructions.
Both commenters asked for guidance regarding the intended difference between two of the five categories to be added to the Credit Facility Purpose item, namely (1) non-purpose margin lending collateralized by securities and (2) other non-purpose lending collateralized by securities. One commenter stated that per the definition, a “non-purpose loan” cannot be a margin loan. After considering the definition and types of loans to be reported in both proposed categories mentioned in the comment, the final FR Y-14 adds only one consolidated category for “Non-purpose loans collateralized by securities” rather than the two categories proposed.
The Federal Reserve proposed expanding the loan population to include non-purpose loans that are not graded in conjunction with complementary changes to FR Y-14Q Schedules A.8, A.9, and M to reflect the intention of the schedule and be response to industry comments. One commenter recommend that the definition of non-purpose loans be revised to “loans collateralized by securities and that the proceeds of such
The corporate loan population was amended to include non-purpose loans collateralized by securities made for any purpose other than purchasing or carrying securities which are reportable in the relevant FR Y-9C categories outlined in the instructions. Loans reported in FR Y-9C, Schedule HC-C, line item 9.b.(1) (Loans for purchasing or carrying securities) should not be reported at the facility level in the Corporate schedule. Accordingly, the final FR Y-14 includes the definition as proposed.
One commenter stated that scored non-purpose loans are currently reported on FR Y-14M report and requested confirmation that scored non-purpose loans are not included within “non-purpose loans that are not graded.” The corporate loan population will be expanded as proposed to include both scored and graded non-purpose loans which are reportable in the relevant FR Y-9C line items indicated in the Corporate Loan Schedule (Schedule H.1) instructions. This change is intended to help ensure that non-purpose commercial loans and loans for purchasing or carrying securities are treated consistently across institutions and the Federal Reserve confirms that any non-purpose loans reportable in other FR Y-9C line items not specified in the Corporate Loan schedule instructions should continue to be reported on other FR Y-14 schedules per the instructions of those schedules. As previously indicated, the final FR Y-14 delays the effective date of this proposed change until June 30, 2016.
One commenter asked for further details surrounding the reporting of the new Credit Facility Purpose (Field 22) code “bridge financing”, including whether this code value only includes real estate financing loans and how it relates to the “mini-perm” loan purpose code recently added to the CRE schedule (Schedule H.2). The Federal Reserve clarifies that bridge financing is not limited to only real estate financing loans. Bridge financing is interim financing, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing. The “Bridge Financing” purpose code on the Corporate schedule (Schedule H.1) is not meant to be related to the mini-perm loan purpose code on the CRE schedule (Schedule H.2).
Both commenters requested clarification as to what was to be reported in the two new credit facility types proposed for Field 20 (Credit Facility Type), “Fronting Loan” and “Swingline”. In response to comments, the final FR Y-14 modifies Field 20 (Credit Facility Type) to include one additional option called “Fronting Exposure”, as opposed to the two additional options proposed. The Fronting Exposure option should be selected for credit facilities reported in the schedule that represent a BHC's exposure to fund certain obligations (
In regards to the proposed changes to the Credit Facility Type field, one commenter also requested guidance on reporting facilities that have both a Swingline and LC Issuance limit. In response to comments, the final FR Y-14 instructions have been revised to indicate that for credit facilities which include a fronting exposure, BHCs should report their pro-rata share of the stated commitment amount as one facility to the borrower and the fronting obligations as separate credit facilities to each of the lending group participants. Fronting exposures are those that represent a BHC's exposure to fund certain obligations (
Both commenters asked for clarification regarding the removal of the requirement to only report legally binding commitments. Specifically, one commenter asked for clarification regarding the definition of “legally binding” and asked whether all uncommitted and/or unadvised lines on the FR Y-14Q report should be included or if the change was to allow for the inclusion of exposures in the syndicated loan pipeline. The other commenter asked if by removing the legally binding restriction to the loan population, the Board intended to report all facilities in the syndicated loan pipeline or just those facilities considered commitments to commit based on a reporting company's legal definition. The Federal Reserve confirms that the loan population has been amended to capture commitments as defined in the FR Y-9C, Schedule HC-L. In addition, the FR Y-14Q Corporate Loan schedule (Schedule H.1) has been amended to capture facilities in the syndicated loan pipeline including single-signed exposures, regardless of whether the BHC considers those facilities to be commitments. As per the FR Y-14Q, Corporate Loan schedule instructions, BHCs should not report informal “advised lines.”
Also in regards to the removal of the requirement to report only legally binding commitments, one commenter noted that the language in the proposed instructions for the Corporate Loan Schedule (H.1) was not consistent with that of the Commercial Real Estate (CRE) Schedule (H.2) and asked if the intention was to eliminate the legally binding restriction from both schedules. The Federal Reserve agrees that there should be consistency between the wholesale schedules, and the CRE schedule (H.2) of the final FR Y-14 has been revised to also remove the legally binding language in alignment with the Corporate schedule (H.1).
Both commenters stated that it was unclear what type of lending is intended to be captured in the syndicated loan population and what is meant by “closed and settled”. In response, the Federal Reserve confirms that the loan population should include syndicated loan commitments in the various stages of the syndication process, including single-signed exposures where the BHC has signed a commitment letter and has extended the terms to the borrower, even if the borrower has not countersigned. In response to the comment, the final FR Y-14 clarifies the Syndicated Loan Flag field by including the following: “Closed and settled refers
One commenter asked for clarification as to whether only those syndicated loans for which the respondents serves as lead bank should be reported. The Federal Reserve confirms that any BHC which has signed a commitment letter and extended terms to the borrower should report the syndicated loans.
Finally, one commenter stated that information about these syndicated pipeline commitments is generally not captured in a reporting company's loan accounting systems, but is maintained “offline” and appears in analytical documents and other artifacts. Thus, reporting companies would face a significant, on-going manual burden to somehow systematically collect the required detail on syndicated pipeline commitments to support the requested reporting, particularly at the level of detail required. Additionally, absent proposed changes for how to populate correctly the Origination Date, Maturity Date, and Committed Exposure Global for pipeline loans, the Board has provided no guidance on which Corporate Loan (Schedule H.l) fields would be required at time of submission. The other commenter requested a delay in implementation of the disposed loans and syndicated pipeline items of two quarters to at least September 30, 2016. In consideration of this feedback, the implementation of changes related to disposed loans and syndicated pipeline in the final FR Y-14 will be delayed until September 30, 2016.
One commenter asked if it is acceptable for BHCs to use Global Industry Classification Standards (GICS) codes on this schedule as allowed in Schedule H.1 (Corporate Loan), field 8, in place of the North American Industry Classification System (NAICS) codes indicated in the new column instructions. The Federal Reserve notes that the instructions for Schedule H.1, field 8, also indicate that the NAICS code should be provided and only offer alternatives in the case the NAICS code is not available. In addition, prior submissions have shown that it is rare for firms to provide GICS instead of NAICS codes. To capture the greater level of granularity they make available, particularly for financial institutions, the final FR Y-14 retains the requirement that NAICS codes be used and the instructions remain as proposed.
In addition, one commenter pointed out that the current instructions do not reflect changes effective in the second quarter of 2015 that revised the level at which the BHC must report data on schedules L.1 and L.4. The Federal Reserve confirms that there has been no change to this requirement and that the final instructions for these schedules will reflect the requirement as outlined in the current instructions.
All proposed modifications to the Counterparty Schedule (Schedule L) were proposed to be effective December 31, 2015. Given the general request to provide additional time to implement changes, the effective date of all Counterparty schedule changes to the final FR Y-14 will be delayed until June 30, 2016
Generally, commenters supported the addition of the “Serviced by Others” flag on the First Lien (Schedule A) and Home Equity (Schedule B) schedules. Both commenters noted, however, that the title of the field, “SBO Flag”, implied that the “Y” code should be defined as serviced by others and the “N” code as serviced by the BHC rather than the definitions specified in the instructions. The Federal Reserve agrees that it would be more logical for the flag codes in the instructions to be defined as suggested by the commenter rather than as proposed, and the final FR Y-14 instructions have been adjusted to reflect this change. Given the general request to provide additional time to implement changes, final FR Y-14 delays the effective date of this change until June 30, 2016.
The Federal Reserve proposed adding a new modification type, proposed code 13 “HELOC Line Renewal” in Field 77 (Modification Type) on this schedule. Field 77 instructs that the modification type should be reported for any loan that is currently operating under modified terms and should identify the specific terms that were altered through loss mitigation efforts. Both commenters questioned if all HELOC line renewals should be reported on this line or only those completed through loss mitigation efforts.
The Federal Reserve appreciates this feedback and agrees there is a distinction between these two cases not captured in this item as proposed. The Federal Reserve believes that renewal of a creditworthy borrower is equivalent to prepayment of the existing line and origination of a new line. For a borrower who does not meet current credit standards, the line renewal is equivalent to a type of loan modification: the contractual terms of the line will be changed because the borrower has been identified as one who is likely to default if the bank takes no action. Therefore, those borrowers should be treated as though they did not prepay, but instead, entered the amortization period of the HELOC with modified terms. To capture the distinction between these two cases and in response to the comment, the final FR Y-14 has been modified to add an additional code to the Modification Type field, Code 13 to represent the “HELOC Line Renewal (Regular)”, and code 14 to represent “HELOC Line Renewal (loss mitigation strategy)”. The instructions for the final FR Y-14 also will be updated to reflect the additional item codes and their definitions. Given the general request to provide additional time to implement changes, this change will be effective in the final FR Y-14 beginning June 30, 2016
In the initial
Commenters asked for a number of technical clarifications regarding specific data items on the FR Y-14 forms. These questions will be addressed in the finalized version of the amended FR Y-14A/Q/M instructions.
Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).
Notice of request for an extension to an existing OMB clearance.
Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division will be submitting to the Office of Management and Budget (OMB) a request to review and approve an extension of a previously approved information collection requirement concerning economic price adjustment.
Submit comments on or before March 21, 2016.
Submit comments identified by Information Collection 9000-0068, Economic Price Adjustment by any of the following methods:
•
Submit comments via the Federal eRulemaking portal by searching the OMB control number. Select the link “Submit a Comment” that corresponds with “Information Collection 9000-0068, Economic Price Adjustment”. Follow the instructions provided at the “Submit a Comment” screen. Please include your name, company name (if any), and “Information Collection 9000-0068, Economic Price Adjustment” on your attached document.
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Mr. Michael O. Jackson, Procurement Analyst, Office of Governmentwide Acquisition Policy, GSA, 202-208-4949 or email
The FAR clause 16.203, Fixed-price contracts with economic price adjustment and associated clauses at 52.216-2, 52.216-3, and 52.216-4, provide for upward and downward revision of the stated contract price upon occurrence of specified contingencies. In order for the contracting officer to be aware of price changes, the firm must provide pertinent information to the Government. The information is used to determine the proper amount of price adjustments required under the contract.
Public comments are particularly invited on: Whether this collection of information is necessary; whether it will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; ways to enhance the quality, utility, and clarity of the information to be collected; and ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology.
Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).
Notice of request for public comments regarding an extension to an existing OMB clearance.
Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division will be submitting to the Office of Management and Budget (OMB) a request to review and approve an extension of a previously approved information collection requirement concerning change order accounting.
Submit comments on or before March 21, 2016.
Submit comments identified by Information Collection 9000-0026, Change Order Accounting, by any of the following methods:
•
•
Mr. Michael O. Jackson, Procurement Analyst, Office of Governmentwide Acquisition Policy, GSA, 202-208-4949, or email
FAR 43.205 allows a contracting officer, whenever the estimated cost of a change or series of related changes under a contract exceeds $100,000, to assert the right in the clause at FAR 52.243-6, Change Order Accounting, to require the contractor to maintain separate accounts for each change or series of related changes. Each account shall record all incurred segregable, direct costs (less allocable credits) of work, changed and unchanged, allocable to the change. These accounts are to be maintained until the parties agree to an equitable adjustment for the changes or until the matter is conclusively disposed of under the Disputes clause. This requirement is necessary in order to be able to account properly for costs associated with changes in supply and research and development contracts that are technically complex and incur numerous changes.
Please cite OMB Control No. 9000-0026, Change Order Accounting, in all correspondence.
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 newly proposed information collection project entitled “Monitoring and Coordinating Personal Protective Equipment (PPE) in Healthcare to Enhance Domestic Preparedness for Ebola Response”. The development of an ongoing Personal Protective Technology (PPT) sentinel surveillance system in the hospital setting will document data used to evaluate and monitor use and effectiveness for PPE usage in healthcare workers including Ebola protection.
Written comments must be received on or before March 21, 2016.
You may submit comments, identified by Docket No. CDC-2016-0011 by any of the following methods:
Federal eRulemaking Portal:
Mail: Leroy A. Richardson, Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS-D74, Atlanta, Georgia 30329.
Instructions: All submissions received must include the agency name and Docket Number. All relevant comments received will be posted without change to
All public comment should be submitted through the Federal eRulemaking portal (
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
Monitoring and Coordinating Personal Protective Equipment (PPE) in Healthcare to Enhance Domestic Preparedness for Ebola Response—New —National Center for Occupational Safety and Health (NIOSH), Centers for Disease Control and Prevention (CDC).
The National Institute for Occupational Safety and Health (NIOSH) has the authority under the Occupational Safety and Health Act [29 CFR 671] to “develop recommendations for health and safety standards”, to “develop information on safe levels of exposure to toxic materials and harmful physical agents and substances”, and to “conduct research on new safety and health problems”. There is growing national concern for better understanding of the particular personal protective equipment (PPE) needs of healthcare workers to ensure the health and safety of this workforce during times of pandemic disease or bioterrorist threat. The use and effectiveness of the proper PPE are paramount to the management and mitigation of the effects of a disaster. NIOSH is requesting a three approval from OMB to develop an ongoing PPT sentinel surveillance system in the hospital setting that will document data used to evaluate and monitor use and effectiveness for PPE usage in healthcare workers including Ebola protection.
NIOSH conducted a pilot study and partnered with four hospitals where respirator-related data were collected from a variety of stakeholders (less than 10 respondents) including Infection Control, Occupational Health, Emergency Preparedness, Environmental Health & Safety, and Purchasing. Surveillance metrics were established and shared with pilot participants on a regular basis throughout the pilot. Partners identified key performance indicators that this data might provide, such as the average number of respirators used per isolation order in the hospital, and identification of stakeholders and protocols impacting effective respirator use. Recommendations were made for monitoring schedules and survey improvement. The data collected during the pilot study provided experience and knowledge of respirator selection, availability, fit testing, usage patterns, outcomes, and confounders of respirator use and effectiveness at the four participating hospitals.
NIOSH now seeks approval to execute an approach for a minimum viable product (MVP) multi-hospital (15-20), real-time monitoring phase. The 15-20 facilities shall reflect the tiered approach recommended by CDC involving Frontline Healthcare Facilities, Ebola Assessment Hospitals and Ebola Treatment Centers. The effort shall be built upon the experience and knowledge obtained from the pilot projects, and shall be structured as the next step in the establishment of a national system to monitor usage and training for PPE used to protect against the Ebola virus based on current CDC recommendations. With this effort, the contractor shall develop and deploy the system to include a contingent of the domestic acute healthcare facilities in this three tier approach. The system content shall include status information for all PPE categories identified for protection against the hazards of Ebola exposure. The system will use a general interface engine designed to accept, validate, and process data from multiple, disparate sources.
The system will be developed to identify PPE replenishment needs to facilitate local, state, and eventually regional resource sharing and local purchasing as needed. It will also be compatible with PPE previously used at these facilities to allow seamless continuity of patient care and worker protection. This capacity will offer a much-improved process for monitoring and maintaining appropriate PPE supplies through the constant, real-time monitoring of user demand, thus avoiding the misdirection of tens of millions of dollars' worth of respirators and other PPE to facilities that may not use distributed supplies due to a mismatch between products typically used and the supplies provided.
Respondents targeted for this study include hospital managers (also referred to in some cases as executives, coordinators or supervisors). These individuals are responsible for the day-to-day administration and/or implementation of the MVP. It is estimated that a sample of up to 20 hospitals will agree to participate among a variety of Ebola and Frontline treatment facilities. Participation will require no more than 255 minutes of workers' time per quarter. The hospitals will complete a baseline form and will also send quarterly and annual response as explained in the table below.
The Emergency and Crisis surveys are administered to hospitals via text message. The emergency survey is designed for an event spanning multiple weeks (
The following is an explanation of the number of respondents for the annualized burden table. The baseline form is completed once by each hospital as they come onboard (20/3 = 7 rounded up). The annual form is completed by the hospitals in each year following their onboarding. Example: Year one, 5 hospitals onboarded; year two 6 new + 5 from previous year; year three 9 new + 11 from previous years. Thus, taking the sum of the previous year hospitals leads to 16 total (16/3 = 5 rounded down). The quarterly form is completed by all onboarded hospitals four times a year. The emergency and crisis forms are completed on all onboarded hospitals as needed but at least once for training and use the annualized number in the baseline form.
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 project entitled “Measuring Perceived Self-Escape Competencies among Underground Mineworkers”. The purpose of this two-year information collection is to gather survey data from up to 800 underground coal miners to measure their perceived competence in the critical knowledge, skills, and abilities that could be required for successful escape from an underground mine emergency.
Written comments must be received on or before March 21, 2016.
You may submit comments, identified by Docket No. CDC-2016-0010 by any of the following methods:
Federal eRulemaking Portal:
Mail: Leroy A. Richardson, Information Collection Review Office, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS-D74, Atlanta, Georgia 30329.
Instructions: All submissions received must include the agency name and Docket Number. All relevant comments received will be posted without change to Regulations.gov, including any personal information provided. For access to the docket to read background documents or comments received, go to
All public comment should be submitted through the Federal eRulemaking portal (
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.
Measuring Perceived Self-Escape Competencies among Underground Mineworkers—New—National Institute for Occupational Safety and Health (NIOSH), Centers for Disease Control and Prevention (CDC).
The mission of the National Institute for Occupational Safety and Health (NIOSH) is to promote safety & health at work for all people through research and prevention. The Federal Mine Safety & Health Act of 1997, Public Law 91-173 as amended by Public Law 95-164, enables NIOSH to carry out research that is relevant to health and safety of workers in the underground coal industry. After a thorough review of United States' underground coal mine emergency escape preparedness and
NIOSH proposes this exploratory two-year study to better characterize the current state of miner self-escape competence and to answer the following questions:
• What gaps exist between what miners are required to do for self-escape and their perceptions of their actual capabilities?
• How might miner demographics and mine-specific characteristics (
The information collected will have practical utility in efforts to enhance the ability of miners to successfully escape from underground coal mines in the event of an emergency by identifying gaps in perceived competence in specific knowledge and skills in moving through the mine, avoiding dangers, and using protective equipment. This information collections will contribute to our understanding of actual miner capabilities from the perspective of the mineworkers themselves.
Data collection will occur above ground at a variety of coal mines (and other above ground facilities) to gather information from a diverse sample of mines to better reflect the variability (
Descriptive and inferential statistics on data obtained from the survey will be used to quantify miner self-escape competence and to identify any statistically significant relationships among aggregated miner characteristics and perceived competence. Finally, the data will serve as a gross baseline measure of miner self-escape competence to be directly compared to future data collection utilizing the identical data collection instrument.
NIOSH researchers will visit up to 20 underground coal mine sites to obtain informed consent from volunteer participants and administer a short paper and pencil survey. The survey will include demographic questions and 25 questions related to participants' perceived confidence in their own ability to escape their mine in the event of an emergency.
Participants will be mining personnel drawn from multiple operating underground coal mines to represent the variety within the industry. The timing of the data collection schedule will be flexible and modified as needed to minimize disruption to mine operations. No more than 800 miner volunteers will participate in the study over two years. Minimal time (< 5 minutes each) will be spent in recruitment and obtaining informed consent. The survey is expected to take no longer than 10 minutes to complete
The total estimated annualized burden hours are 101.
National Institute for Occupational Safety and Health (NIOSH) of the Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).
Notice of public meeting and availability of draft document for public comment.
On December 19, 2012, the National Institute for Occupational Safety and Health, Centers for Disease Control and Prevention announced in the
Recommendations are provided for the safe handling of silver nanoparticles, and research needs are proposed to fill important data gaps in the current scientific literature on the potential adverse health effects of occupational exposure to silver nanoparticles. NIOSH is seeking comments on the draft document and plans to have a public meeting to discuss the document. To view the notice and related materials, visit
The public meeting will be held on March 23, 2016, 9:00 a.m.-3:00 p.m. Eastern Time, or after the last public commenter has spoken, whichever occurs first. Comments must be received on or before March 21, 2016.
The public meeting will be held at the NIOSH/CDC Robert A. Taft Laboratories, Auditorium, 1150 Tusculum Avenue, Cincinnati, Ohio 45226.
Charles Geraci, NIOSH, Education and Information Division, Nanotechnology Research Center, Robert A. Taft Laboratories, 1090 Tusculum Avenue, Cincinnati, OH 45226, (513) 533-8339 (not a toll free number).
• Whether the health hazard identification, risk estimation, and discussion of health effects of silver and silver nanomaterials are a reasonable reflection of the current understanding of the scientific literature;
• Workplaces and occupations where exposure to silver and silver nanomaterials may occur; and studies on health effects associated with occupational exposure to silver dust and fume;
• Current strategies for controlling or preventing exposure to silver and silver nanomaterials (
• Current exposure measurement methods and challenges in measuring workplace exposures to silver nanomaterials; and
• Areas for future collaborative efforts (
The forum will include scientists and representatives from various government agencies, industry, labor, and other stakeholders, and is open to the public. Attendance is limited only by the space available. The meeting room accommodates 100 people. The meeting will be open to limited number of participants through a conference call phone number and Webcast live on the Internet. Due to the limited spaces, notification of intent to attend the meeting must be made to the NIOSH Docket Office, at
Registration is required. Because this meeting is being held at a Federal site, pre-registration is required on or before March 9, 2016 and a government-issued photo ID (driver's license, military ID or passport) will be required to obtain entrance to the facility. There will be an airport type security check. Non‐US citizens need to register by February 12, 2016 to allow sufficient time for mandatory facility security clearance procedures to be completed. Additional personal information will be required. This information will be transmitted to the CDC Security Office for approval. An email confirming registration will be sent from NIOSH for both in-person participation and audio conferencing participation.
Oral presentations will be limited to 15 minutes per presenter. If additional time becomes available, presenters will be notified. All requests to present should contain the name, address, telephone number, and relevant business affiliations of the presenter, topic of the presentation, and the approximate time requested for the presentation. An email confirming registration will be sent from the NIOSH Docket Office and will include details needed to participate. Oral comments given at the meeting will be recorded and included in the NIOSH Docket 260-A.
After reviewing the requests for presentations, NIOSH will notify the presenter that his/her presentation is scheduled. If a participant is not in attendance when his/her presentation is scheduled to begin, the remaining participants will be heard in order. After the last scheduled speaker is heard, participants who missed their assigned times may be allowed to speak, limited by time available.
Attendees who wish to speak but did not submit a request for the opportunity to make a presentation may be given this opportunity after the scheduled speakers are heard, at the discretion of the presiding officer and limited by time available.
You may submit comments, identified by CDC-2016-0001 and NIOSH 260-A, by either of the following methods:
• Federal eRulemaking Portal:
• Mail: National Institute for Occupational Safety and Health, NIOSH Docket Office, 1090 Tusculum Avenue, MS C-34, Cincinnati, Ohio 45226-1998.
This information will be transmitted to the CDC Security Office for approval. Visitors will be notified as soon as approval has been obtained.
The external review of the draft document has been (1) developed in accordance with OMB guidelines, (2) is consistent with NIOSH peer review practice, and (3) is meant to ensure that credible and appropriate science is reflected within the draft document.
The Centers for Disease Control and Prevention (CDC) has submitted 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. The notice for the proposed information collection is published to obtain comments from the public and affected agencies.
Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address any of the following: (a) 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; (b) Evaluate the accuracy of the agencies estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (c) Enhance the quality, utility, and clarity of the information to be collected; (d) 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,
To request additional information on the proposed project or to obtain a copy of the information collection plan and instruments, call (404) 639-7570 or send an email to
Balance After Baby Intervention—New—National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP), Centers for Disease Control and Prevention (CDC).
The CDC Division of Reproductive Health (DRH) is focused on understanding and preventing complications due to pregnancy and the development of chronic diseases in reproductive age women. Similarly, the CDC established the National Diabetes Prevention Program (NDPP), administered through the Division of Diabetes Translation (DDT), to make strategies for preventing type 2 diabetes broadly available to individuals at high risk of developing diabetes. Gestational diabetes mellitus (GDM) is one of the most common pregnancy complications in the US, affecting approximately 3-13% of pregnancies, or approximately 200,000 cases annually. As defined by the American Diabetes Association (2003), GDM is glucose intolerance that first presents during pregnancy after the first trimester. Women with a history of GDM have a substantially increased risk of developing type 2 diabetes mellitus (T2DM) within 5 to 16 years after their index pregnancy. It has also been shown that many women with a history of GDM gain weight after pregnancy, increasing their risk for obesity, which itself is a strong risk factor for repeat GDM and T2DM. Because of this, as US obesity prevalence continues to increase, there is a concurrent rise in the incidence and prevalence of GDM and T2DM, resulting in a large disease burden on individuals, families, and society. To assist in reducing this national disease burden, it is critical to develop and implement successful interventions that reduce the annual number of newly diagnosed T2DM cases, especially in increased risk populations, such as women with a history of GDM. As part of this Healthy People 2020 objective, the Diabetes Prevention Program (DPP) demonstrated that an intensive lifestyle intervention (16 face-to-face sessions over a 24-week period) promoting physical activity, healthy eating, and weight reduction significantly decreased T2DM incidence by 58% in high risk patients. However, the DPP included predominantly older individuals whose ability to attend group meetings and adopt healthy lifestyle changes is different than younger postpartum women. For this reason, successful adaptations of the DPP that address barriers in postpartum women with recent GDM, such as limited time and resources, fatigue, and childcare demands, must be identified and tested.
This Balance After Baby Intervention (BABI) data collection request aims to collect information that can be used to evaluate an intervention that addresses
The project aims to screen 293 (98 annualized over 3 years) women with a recent GDM pregnancy for enrollment into the study, followed by assessments at the following five post-partum time points: 6-Weeks, 6-months, 12-months, 18-months, and 24-months. Of the estimated 190 (63 annualized) women who are anticipated to meet eligibility requirements and attend the first study visit, approximately half will be assigned to the control group and the other half will be assigned to the intervention group. Women in the control group will have access to a “control version” of the BABI Web site, containing post-partum information such as the “It's Never too Early to Prevent Diabetes” tip sheet and links to other related public Web sites. Those assigned to the intervention group will have access to the full, interactive version of the BABI Web site and will be instructed to log-on once a week to view educational modules regarding healthy lifestyle options and to enter and track their weight and physical activity against their self-appointed goals. They will also have access to a web-based Lifestyle Coach who will communicate with them throughout the first year of their participation.
All participants will be required to complete clinical assessment visits involving the completion of visit-specific questionnaires with integrated food frequency questionnaires, laboratory testing, and the collection of physical measurements such as height and weight. The results of the two study arms, intervention and control, will be compared to assess whether the intervention significantly increased postpartum weight loss and decreased glucose tolerance for women at increased T2DM risk.
For the calculation of the estimated burden hours per study visit detailed in the table below, a constant 5% rate of exclusion and attrition was applied between visits. The burden table provides a participant estimate, which will be evenly distributed across control and intervention groups for each information collection step (both groups complete the same questionnaires), annualized over a 3-year clearance period. Therefore, of the 190 women (63 annualized) who attend the 6-week visit, the estimated number of participants returning for the 6-month visit is reduced to 180 (60 annualized), followed by 172 (57 annualized), 162 (54 annualized), and 154 (51 annualized) for the 12-, 18-, and 24-month visits respectively. The average burden per questionnaire ranges from 8 minutes for the BABI Screener Questionnaire up to 18 minutes for the BABI 6-Month Questionnaire. The average burden hours per response for the 6-Week, 6-, 12-, 18-, 24-Month Questionnaires, and Block© Food Frequency Questionnaire (FFQ) are shown in the table below. Participation is voluntary and there are no costs to respondents other than their time.
The total estimated annualized burden hours are 183.
Office of Child Care, Administration for Children and Families, HHS.
Notice of the award of six single-source program expansion supplement grants to grantees of the Tribal Maternal, Infant, and Early Childhood Home Visiting (Tribal MIECHV) Program.
The Administration for Children and Families (ACF), Office of Child Care (OCC), Tribal Maternal, Infant, and Early Childhood Home Visiting (Tribal MIECHV) Program, announces the award of single-source program expansion supplement grants to the Confederated Salish and Kootenai Tribes in Pablo, MT; Confederated Tribes of Siletz Indians in Siletz, OR; Inter-Tribal Council of Michigan in Sault Ste. Marie, MI; Red Cliff Band of Lake Superior Chippewa in Bayfield, WI; the Choctaw Nation of Oklahoma in Durant, OK; and the Cherokee Nation of Oklahoma in Tahlequah, OK.
The Fiscal Year 2015 single-source program expansion supplement grants will support the expansion of the Tribal Early Learning Initiative (TELI) program.
The period of support is September 30, 2015—September 29, 2016.
Rachel Schumacher, Director, Office of Child Care, 901 D Street, SW., Washington, DC 20024. Telephone: (202) 401-6984; Email:
In response to the success of the TELI pilot, the Office of Child Care has awarded single-source program expansion supplement awards to six Tribal MIECHV grantees for expansion of the TELI
1. Identify and analyze systems issues, including obstacles that could block efforts to build and maintain partnerships, fully and effectively coordinate tribal early childhood development programs, and develop a menu of alternative interventions and strategies in line with tribal community values, traditions, and priorities.
2. Develop tribally driven goals and concrete objectives in each local tribal community for building effective and efficient early childhood systems, high-quality programs, and improved outcomes for young children and families.
3. Develop and carry out concrete community plans for supporting and strengthening cooperation, coordination, resource sharing and leveraging, and integration among programs that support young children and families in the tribal community.
4. Share plans of action, barriers and challenges, opportunities and solutions, and the results of action plans with other tribal communities in an effort to further develop peer-learning relationships.
Applications received from the grantees underwent objective review using criteria such as the applicants' ability to clearly describe the early learning and development programs that will participate in the TELI; their ability to describe existing challenges and strengths to collaboration across their participating early learning and development programs; and whether the submitted budget and budget justification narrative provided for reasonable project costs.
A single-source program expansion supplemental grant of $96,000 to the Confederated Salish and Kootenai Tribes in Pablo, MT, to support the development of a shared data system for its early childhood programs that include Head Start, Child Care, and Home Visiting that will allow programs to improve client services by increasing accessibility and reducing wait time and travel time between agencies; a more efficient client information system; promotion of long-term, cross-agency communication and collaboration; improved management systems; and expansion of deliverables such as service reports, outcome analysis, evaluation, assessment success, and other data-driven tools that in turn help to demonstrate the program's viability and value to community funding agencies.
A single-source program expansion supplemental grant of $96,000 to the Confederated Tribes of Siletz Indians in Siletz, OR, to support the identification and analysis of systems issues, including the identification of obstacles that could block efforts to build and maintain partnerships; coordination of Siletz tribal early childhood development programs, and the development of a menu of alternative interventions and strategies, that honor tribal community values, traditions, and priorities; and the development of tribally driven goals and concrete objectives in each local tribal community that support building effective early childhood systems and the development of specific community plans that support and strengthen cooperation, coordination, resource-sharing and leveraging, and the integration of programs in the Siletz Service Area.
A single-source program expansion supplemental grant of $120,000 to the Inter-Tribal Council of Michigan in Sault Ste. Marie, MI, to improve and increase the positive impact of services on families throughout the state through an early childhood system that will provide support and services across the full range of needs from the prenatal period through kindergarten entry; reflect and build on the strengths and wisdom of tribal community values and culture; maximize the use of resources to foster efficiency, yielding maximum impact for each investment; and ensure sustainability, consistency, and ease-of-access at the community level through referral and transition processes that will effectively engage parents as key stakeholders.
A single-source program expansion supplemental grant of $96,000 to the Red Cliff Band of Lake Superior Chippewa in Bayfield, WI, to support the identification and analysis of systems issues to develop a menu of alternative interventions and strategies that honor tribal community values, traditions, and priorities; development of tribally driven goals and concrete objectives in each local tribal community to build effective and efficient early childhood systems, high-quality programs, and improved outcomes for children and families; identification of service providers that support families with young children; provision of training that will deepen the understanding of Trauma-Informed Care and education on the identification and support for individuals experiencing a mental health crisis; and the development of a 5-year plan that identifies data needs for collection, storage, and data protection to improve the coordination and sharing of key child and family data.
A single-source program expansion supplemental grant of $96,000 to the Choctaw Nation of Oklahoma in Durant, OK, for its coordinated effort between the following Choctaw Nation programs: Chahta Inchukka, Chahta Vlla Apela, Child Care Assistance (Child Care Development Fund), Head Start, Early Head Start (Early Head Start-Child Care Partnership), and the Child Development Day Care Program. Through this initiative, program directors will coordinate their programs to create and support a seamless, high-quality, early-childhood system; raise the quality of services to children and families across the pregnancy-to-kindergarten-entry continuum; and identify and break down barriers to collaboration and systems improvement. The Choctaw Nation will commit a TELI coordinator to work across all of Choctaw's early childhood TELI programs; host a shared training for all early learning program staff that will provide professional development on a relevant early childhood topic and offer the opportunity for staff to learn about other programs and network; and complete research about potential data systems that will better coordinate the sharing of relevant child and family data across programs.
A single-source program expansion supplemental grant of $96,000 to the Cherokee Nation of Oklahoma in Tahlequah, OK, to support collaboration between Cherokee PARENTS, Head Start, Early Head Start, and Child Care, and develop a holist approach to child development. The Cherokee Nation plans to develop a strategic work team comprised of a diverse group of stakeholders; share professional development between each program, including conferences and trainings; hold monthly parent/cultural/community meetings; develop a unified assessment tool for assessing the needs of children and families; build a unified resource guide; give priority in referrals
Section 511 of the Title V of the Social Security Act, as added by Section 2951 of the Patient Protection and Affordable Care Act of 2010 (Pub. L. 111-148), and amended by the Protecting Access to Medicare Act of 2014 (Pub. L. 113-93) and the Medicare Access and CHIP Reauthorization Act of 2015 (Pub. L. 114-10).
Food and Drug Administration, HHS.
Notice of availability.
The Food and Drug Administration (FDA or Agency) is announcing the availability of a guidance for industry (GFI) #226 entitled “Target Animal Safety Data Presentation and Statistical Analysis.” The purpose of this document is to provide recommendations to industry regarding the presentation and statistical analyses of target animal safety (TAS) data submitted to the Center for Veterinary Medicine (CVM) as part of a study report to support approval of a new animal drug. These recommendations apply to TAS data generated from both TAS and field effectiveness studies conducted in companion animals (
Submit either electronic or written comments on Agency guidances at any time.
You may submit comments as follows:
Submit electronic comments in the following way:
• Federal eRulemaking Portal:
• If you want to submit a comment with confidential information that you do not wish to be made available to the public, submit the comment as a written/paper submission and in the manner detailed (see “Written/Paper Submissions” and “Instructions”).
Submit written/paper submissions as follows:
• Mail/Hand delivery/Courier (for written/paper submissions): Division of Dockets Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
• For written/paper comments submitted to the Division of Dockets Management, FDA will post your comment, as well as any attachments, except for information submitted, marked and identified, as confidential, if submitted as detailed in “Instructions.”
• Confidential Submissions—To submit a comment with confidential information that you do not wish to be made publicly available, submit your comments only as a written/paper submission. You should submit two copies total. One copy will include the information you claim to be confidential with a heading or cover note that states “THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION”. The Agency will review this copy, including the claimed confidential information, in its consideration of comments. The second copy, which will have the claimed confidential information redacted/blacked out, will be available for public viewing and posted on
Submit written requests for single copies of the guidance to the Policy and Regulations Staff (HFV-6), Center for Veterinary Medicine, Food and Drug Administration, 7519 Standish Pl., Rockville, MD 20855. Send one self-addressed adhesive label to assist that office in processing your requests. See the
Virginia Recta, Center for Veterinary Medicine (HFV-160), Food and Drug Administration, 7500 Standish Pl., Rockville, MD 20855, 240-402-0840,
In the
This GFI provides recommendations to industry regarding the presentation
This level 1 guidance is being issued consistent with FDA's good guidance practices regulation (21 CFR 10.115). The guidance represents the current thinking of FDA on Target Animal Safety Data Presentation and Statistical Analysis. It does not establish any rights for any person and is not binding on FDA or the public. You can use an alternative approach if it satisfies the requirements of the applicable statutes and regulations.
This guidance refers to previously approved collections of information found in FDA regulations. These collections of information are subject to review by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The collections of information in 21 CFR part 514 have been approved under OMB control number 0910-0032.
Persons with access to the Internet may obtain the draft guidance at either
Food and Drug Administration, HHS.
Notice.
The Food and Drug Administration (FDA or Agency) has determined that the drug products listed in this document were not withdrawn from sale for reasons of safety or effectiveness. This determination means that FDA will not begin procedures to withdraw approval of abbreviated new drug applications (ANDAs) that refer to these drug products, and it will allow FDA to continue to approve ANDAs that refer to the products as long as they meet relevant legal and regulatory requirements.
Stacy Kane, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 51, Rm. 6207, Silver Spring, MD 20993-0002, 301-796-8363,
In 1984, Congress enacted the Drug Price Competition and Patent Term Restoration Act of 1984 (Pub. L. 98-417) (the 1984 amendments), which authorized the approval of duplicate versions of drug products approved under an ANDA procedure. ANDA applicants must, with certain exceptions, show that the drug for which they are seeking approval contains the same active ingredient in the same strength and dosage form as the “listed drug,” which is a version of the drug that was previously approved. ANDA applicants do not have to repeat the extensive clinical testing otherwise necessary to gain approval of a new drug application (NDA).
The 1984 amendments include what is now section 505(j)(7) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(j)(7)), which requires FDA to publish a list of all approved drugs. FDA publishes this list as part of the “Approved Drug Products With Therapeutic Equivalence Evaluations,” which is generally known as the “Orange Book”. Under FDA regulations, a drug is removed from the list if the Agency withdraws or suspends approval of the drug's NDA or ANDA for reasons of safety or effectiveness, or if FDA determines that the listed drug was withdrawn from sale for reasons of safety or effectiveness (21 CFR 314.162).
Under § 314.161(a) (21 CFR 314.161(a)), the Agency must determine whether a listed drug was withdrawn from sale for reasons of safety or effectiveness: (1) Before an ANDA that refers to that listed drug may be approved, (2) whenever a listed drug is voluntarily withdrawn from sale and ANDAs that refer to the listed drug have been approved, and (3) when a person petitions for such a determination under 21 CFR 10.25(a) and 10.30. Section 314.161(d) provides that if FDA determines that a listed drug was withdrawn from sale for safety or effectiveness reasons, the Agency will initiate proceedings that could result in the withdrawal of approval of the ANDAs that refer to the listed drug.
FDA has become aware that the drug products listed in the table in this document are no longer being marketed.
FDA has reviewed its records and, under § 314.161, has determined that the drug products listed in this document were not withdrawn from sale for reasons of safety or effectiveness. Accordingly, the Agency will continue to list the drug products listed in this document in the “Discontinued Drug Product List” section of the Orange Book. The “Discontinued Drug Product List” identifies, among other items, drug products that have been discontinued from marketing for reasons other than safety or effectiveness.
Approved ANDAs that refer to the NDAs and ANDAs listed in this document are unaffected by the discontinued marketing of the products subject to those NDAs and ANDAs. Additional ANDAs that refer to these products may also be approved by the Agency if they comply with relevant legal and regulatory requirements. If FDA determines that labeling for these drug products should be revised to meet current standards, the Agency will advise ANDA applicants to submit such labeling.
Food and Drug Administration, HHS.
Notice.
This notice announces a forthcoming meeting of a public advisory committee of the Food and Drug Administration (FDA). At least one portion of the meeting will be closed to the public.
FDA intends to make background material available to the public no later than 2 business days before the meeting. If FDA is unable to post the background material on its Web site prior to the meeting, the background material will be made publicly available at the location of the advisory committee meeting, and the background material will be posted on FDA's Web site after the meeting. Background material is available at
Persons attending FDA's advisory committee meetings are advised that the Agency is not responsible for providing access to electrical outlets.
FDA welcomes the attendance of the public at its advisory committee meetings and will make every effort to accommodate persons with disabilities. If you require accommodations due to a disability, please contact Janie Kim at least 7 days in advance of the meeting.
FDA is committed to the orderly conduct of its advisory committee meetings. Please visit our Web site at
Notice of this meeting is given under the Federal Advisory Committee Act (5 U.S.C. app. 2).
Food and Drug Administration, HHS.
Notice of conditional approval no longer in effect.
The Food and Drug Administration (FDA) is providing notice that the conditional approval of an application for masitinib mesylate tablets, a new animal drug for a minor use, is no longer in effect.
Conditional approval is no longer in effect as of December 15, 2015.
Herman M. Schoenemann III, Center for Veterinary Medicine (HFV-108), Food and Drug Administration, 7500 Standish Pl., Rockville, MD 20855, 240-402-0652,
The Federal Food, Drug, and Cosmetic Act (FD&C Act), as amended by the Minor Use and Minor Species Animal Health Act of 2004 (Pub. L. 108-282), permits conditional approval of new animal drugs for minor uses. Conditional approval of a new animal drug is effective for a 1-year period, and may be renewed for up to four additional 1-year periods. The holder of a conditionally approved new animal drug is required to submit all information necessary to support a complete new animal drug application (NADA) under section 512(b)(1) of the FD&C Act (21 U.S.C. 360b(b)(1) by 180 days before the termination of the fifth 1-year period of conditional approval. If FDA does not approve an NADA for the new animal drug by the termination date of the conditional approval, then pursuant to section 571(h) of the FD&C Act (21 U.S.C. 360ccc(h)) the conditional approval is no longer in effect.
AB Science, 3 Avenue George V, 75008 Paris, France, filed an application for conditional approval (141-308) that provided for veterinary prescription use of KINAVET-CA1 (masitinib mesylate) Tablets for the treatment of recurrent (post-surgery) or nonresectable Grade II or III cutaneous mast cell tumors in dogs that have not previously received radiotherapy and/or chemotherapy except corticosteroids. That application was conditionally approved on December 15, 2010.
On December 15, 2014, application 141-308 received the fourth and final renewal of its conditional approval. That final renewal terminated on December 15, 2015. As of that date, FDA did not approve an NADA for KINAVET-CA1 under section 512 of the FD&C Act. Consequently, as of December 15, 2015, the conditional approval of application 141-308 is no longer in effect.
Because the conditional approval is no longer in effect, KINAVET-CA1 Tablets is now an unapproved new animal drug product with no legal marketing status. Further marketing, sales, and distribution of the product are illegal.
This notice is issued under section 571 of the FD&C Act and under authority delegated to the Commissioner of Food and Drugs and redelegated to the Center for Veterinary Medicine.
Elsewhere in this issue of the
Food and Drug Administration, HHS.
Notice of availability.
The Food and Drug Administration (FDA) is announcing the availability of the guidance entitled “Implanted Blood Access Devices for Hemodialysis.” This guidance was developed to support the reclassification of the implanted blood access devices for hemodialysis into class II (special controls) and to assist industry in preparing premarket notification (510(k)) submissions for implanted blood access devices for hemodialysis.
Submit either electronic or written comments on this guidance at any time. General comments on Agency guidance documents are welcome at any time.
You may submit comments as follows:
Submit electronic comments in the following way:
• Federal eRulemaking Portal:
• If you want to submit a comment with confidential information that you do not wish to be made available to the public, submit the comment as a written/paper submission and in the manner detailed (see “Written/Paper Submissions” and “Instructions”).
Submit written/paper submissions as follows:
• Mail/Hand delivery/Courier (for written/paper submissions): Division of Dockets Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
• For written/paper comments submitted to the Division of Dockets Management, FDA will post your comment, as well as any attachments, except for information submitted, marked and identified, as confidential, if submitted as detailed in “Instructions.”
• Confidential Submissions—To submit a comment with confidential information that you do not wish to be made publicly available, submit your comments only as a written/paper submission. You should submit two copies total. One copy will include the information you claim to be confidential with a heading or cover note that states “THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION”. The Agency will review this copy, including the claimed confidential information, in its consideration of comments. The second copy, which will have the claimed confidential information redacted/blacked out, will be available for public viewing and posted on
An electronic copy of the guidance document is available for download from the Internet. See the
Rebecca Nipper, Center for Devices and Radiological Health, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 66, Rm. 1540, Silver Spring, MD 20993-0002, 301-796-6527.
This guidance provides recommendations to assist manufacturers in developing their premarket submissions of implanted blood access devices for hemodialysis regulated under 21 CFR 876.5540(a)(1). The draft of this guidance document was issued concurrently with the proposed reclassification of implanted blood access devices under § 876.5540(a)(1). FDA published a proposed order to reclassify this device in the
In response to the draft guidance, FDA received comments from one commenter. The comments, in addition to the feedback from the Panel, were considered and discussed in the final order reclassifying this device type into class II (special controls) (79 FR 43241, July 25, 2014). This final guidance references the special controls for this device type, and the recommendations in the draft guidance were modified to be consistent with revisions to the special controls as codified in the final order.
This guidance is being issued consistent with FDA's good guidance practices regulation (21 CFR 10.115). The guidance represents the Agency's current thinking on implanted blood access devices for hemodialysis. It does not create or confer any rights for or on any person and does not operate to bind FDA or the public. An alternative approach may be used if such approach satisfies the requirements of the applicable statute and regulations.
Persons interested in obtaining a copy of the guidance may do so by downloading an electronic copy from the Internet. A search capability for all Center for Devices and Radiological Health guidance documents is available at
This guidance refers to previously approved collections of information found in FDA regulations. These collections of information are subject to review by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The collections of information in 21 CFR part 807, subpart E have been approved under OMB control number 0910-0120; the collections of information in 21 CFR part 820 have been approved under OMB control number 0910-0073; the collections of information in 21 CFR part 801 and 809 have been approved under OMB control number 0910-0485; the collections of information in 21 CFR part 812 have been approved under OMB control number 0910-0078; and the collections of information in 21 CFR part 50 and 56 have been approved under OMB control number 0910-0130.
Food and Drug Administration, HHS.
Notice.
The Food and Drug Administration (FDA) is announcing that a proposed collection of information has been submitted to the Office of Management and Budget (OMB) for review and clearance under the Paperwork Reduction Act of 1995.
Fax written comments on the collection of information by February 22, 2016.
To ensure that comments on the information collection are received, OMB recommends that written comments be faxed to the Office of Information and Regulatory Affairs, OMB, Attn: FDA Desk Officer, FAX: 202-395-7285, or emailed to
FDA PRA Staff, Office of Operations, Food and Drug Administration, 8455 Colesville Rd., COLE-14526, Silver Spring, MD 20993-0002,
In compliance with 44 U.S.C. 3507, FDA has submitted the following proposed collection of information to OMB for review and clearance.
Section 409(h) of the Federal Food, Drug, and Cosmetic Act (the FD&C Act) (21 U.S.C. 348(h)) establishes a premarket notification process for food contact substances. Section 409(h)(6) of the FD&C Act defines a “food contact substance” as “any substance intended for use as a component of materials used in manufacturing, packing, packaging, transporting, or holding food if such use is not intended to have any technical effect in such food.” Section 409(h)(3) of the FD&C Act requires that the notification process be used for authorizing the marketing of food contact substances except when: (1) We determine that the submission and premarket review of a food additive petition (FAP) under section 409(b) of the FD&C Act is necessary to provide adequate assurance of safety or (2) we and the manufacturer or supplier agree that an FAP should be submitted. Section 409(h)(1) of the FD&C Act requires that a notification include: (1) Information on the identity and the intended use of the food contact substance and (2) the basis for the manufacturer's or supplier's determination that the food contact substance is safe under the intended conditions of use.
Sections 170.101 and 170.106 of FDA's regulations (21 CFR 170.101 and 170.106) specify the information that a notification must contain and require that: (1) A food contact substance notification (FCN) includes Form FDA 3480 and (2) a notification for a food contact substance formulation includes Form FDA 3479. These forms serve to summarize pertinent information in the notification. The forms facilitate both preparation and review of notifications because the forms will serve to organize information necessary to support the safety of the use of the food contact substance. The burden of filling out the appropriate form has been included in the burden estimate for the notification.
Currently, interested persons transmit an FCN submission to the Office of Food Additive Safety in the Center for Food Safety and Applied Nutrition using Form FDA 3480 whether it is submitted in electronic or paper format. We estimate that the amount of time for respondents to complete Form FDA 3480 will continue to be the same.
In addition to its required use with FCNs, Form FDA 3480 is recommended to be used to organize information within a Pre-notification Consultation or Master File submitted in support of an FCN according to the items listed on the form. Master Files can be used as repositories for information that can be referenced in multiple submissions to FDA, thus minimizing paperwork burden for food contact substance authorizations. We estimate that the amount of time for respondents to complete the Form FDA 3480 for these types of submissions is 0.5 hours.
Section 171.1 of FDA's regulations (21 CFR 171.1) specifies the information that a petitioner must submit in order to: (1) Establish that the proposed use of an indirect food additive is safe and (2) secure the publication of an indirect food additive regulation in parts 175 through 178 (21 CFR parts 175 through 178). Parts 175 through 178 describe the conditions under which the additive may be safely used.
In addition, FDA's guidance document entitled, “Use of Recycled Plastics in Food Packaging: Chemistry Considerations,” provides assistance to manufacturers of food packaging in evaluating processes for producing packaging from post-consumer recycled plastic. The recommendations in the guidance address the process by which manufacturers certify to us that their plastic products are safe for food contact.
In the
We estimate the burden of this collection of information as follows:
The estimates in table 1 are based on our current experience with the food contact substance notification program and informal communication with industry.
Beginning in row 1 we estimate 10 respondents will submit two notifications annually for food contact substance formulations (Form FDA 3479), for a total of 20 responses. We calculate a reporting burden of 2 hours per response, for a total of 40 hours. In row 2 we estimate six respondents. We believe the hourly burden for preparing these notifications will primarily consist of the manufacturer or supplier completing Form FDA 3480, verifying that a previous notification is effective and preparing necessary documentation. We estimate one submission for each respondent, for a total of six responses. We calculate a reporting burden of 25 hours per response, for a total of 150 hours.
In rows 3, 4, and 5 we identify three tiers of FCNs that reflect different levels of burden applicable to the respective information collection items (denoted as Categories C, D, and E). We estimate 6 respondents will submit 2 Category C submissions annually, for a total of 12 responses. We calculate a reporting burden of 120 hours per response, for a total burden of 1,440 hours. We estimate 42 respondents will submit 2 Category D submissions annually, for a total of 84 responses. We calculate a reporting burden of 150 hours per response, for a total burden of 12,600 hours. We estimate 38 respondents will submit 1Category E submission annually, for a total of 38 responses. We calculate a reporting burden of 150 hours per response, for a total burden of 5,700 hours.
In row 6 we estimate 190 respondents will submit information to a pre-notification consultation or a master file in support of FCN submission using Form FDA 3480. We calculate a reporting burden of 0.5 hours per response, for a total burden of 95 hours. In row 7 we estimate 100 respondents will submit an amendment (Form FDA 3480A) to a substantive or non-substantive request of additional information to an incomplete FCN submission, an amendment to a pre-notification consultation, or an amendment to a master file in support of an FCN. We calculate a reporting burden of 0.5 hours per response, for a total burden of 50 hours.
In row 8 we estimate one respondent will submit one indirect food additive petition under § 171.1, for a total of one response. We calculate a reporting burden of 10,995 hours per response, for a total burden of 10,995 hours.
Finally, in row 9 we estimate ten respondents will utilize the recommendations in the guidance document entitled, “Use of Recycled Plastics in Food Packaging: Chemistry Considerations,” to develop the additional information for one such submission annually, for a total of 10 responses. We calculate a reporting burden of 25 hours per response, for a total burden of 250 hours.
Food and Drug Administration, HHS.
Notice.
The Food and Drug Administration (FDA or Agency) has determined that MEVACOR (lovastatin) tablets, 20 milligrams (mg) and 40 mg, were not withdrawn from sale for reasons of safety or effectiveness. This determination means that FDA will not begin procedures to withdraw approval of abbreviated new drug applications (ANDAs) that refer to these drug products, and it will allow FDA to continue to approve ANDAs that refer to the products as long as they meet relevant legal and regulatory requirements.
Kate Greenwood, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire
In 1984, Congress enacted the Drug Price Competition and Patent Term Restoration Act of 1984 (Pub. L. 98-417) (the 1984 amendments), which authorized the approval of duplicate versions of drug products under an ANDA procedure. ANDA applicants must, with certain exceptions, show that the drug for which they are seeking approval contains the same active ingredient in the same strength and dosage form as the “listed drug,” which is a version of the drug that was previously approved. ANDA applicants do not have to repeat the extensive clinical testing otherwise necessary to gain approval of a new drug application (NDA).
The 1984 amendments include what is now section 505(j)(7) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(j)(7)), which requires FDA to publish a list of all approved drugs. FDA publishes this list as part of the “Approved Drug Products With Therapeutic Equivalence Evaluations,” which is known generally as the “Orange Book.” Under FDA regulations, drugs are removed from the list if the Agency withdraws or suspends approval of the drug's NDA or ANDA for reasons of safety or effectiveness or if FDA determines that the listed drug was withdrawn from sale for reasons of safety or effectiveness (21 CFR 314.162).
A person may petition the Agency to determine, or the Agency may determine on its own initiative, whether a listed drug was withdrawn from sale for reasons of safety or effectiveness. This determination may be made at any time after the drug has been withdrawn from sale, but must be made prior to approving an ANDA that refers to the listed drug (§ 314.161 (21 CFR 314.161)). FDA may not approve an ANDA that does not refer to a listed drug.
MEVACOR (lovastatin) tablets, 20 mg and 40 mg, are the subject of NDA 19-643, held by Merck & Co. Inc., and initially approved on August 31, 1987. MEVACOR is indicated: (1) To reduce the risk of myocardial infarction, unstable angina, and coronary revascularization procedures in individuals without symptomatic cardiovascular disease, average to moderately elevated total cholesterol (total-C) and low-density lipoprotein cholesterol (LDL-C), and below average high-density lipoprotein cholesterol; (2) to slow the progression of coronary atherosclerosis in patients with coronary heart disease as part of a treatment strategy to lower total-C and LDL-C to target levels; and (3) as an adjunct to diet for the reduction of elevated total-C and LDL-C levels in patients with primary hypercholesterolemia (Types IIa and IIb), when the response to diet restricted in saturated fat and cholesterol and to other nonpharmacological measures alone has been inadequate. MEVACOR is also indicated as an adjunct to diet to reduce total-C, LDL-C, and apolipoprotein B levels in adolescent boys and girls who are at least 1 year post-menarche, 10-17 years of age, with heterozygous familial hypercholesterolemia if, after an adequate trial of diet therapy, the following findings are present: (1) LDL-C remains >189 mg/deciliter (dL) or (2) LDL-C remains >160 mg/dL and there is a positive family history of premature cardiovascular disease (CVD) or two or more other CVD risk factors are present in the adolescent patient.
MEVACOR (lovastatin) tablets, 20 mg and 40 mg, are currently listed in the “Discontinued Drug Product List” section of the Orange Book.
Winifred M. Begley submitted a citizen petition dated September 10, 2015 (Docket No. FDA-2015-P-3319), under 21 CFR 10.30, requesting that the Agency determine whether MEVACOR (lovastatin) tablets, 20 mg and 40 mg, were withdrawn from sale for reasons of safety or effectiveness.
After considering the citizen petition and reviewing Agency records and based on the information we have at this time, FDA has determined under § 314.161 that MEVACOR (lovastatin) tablets, 20 mg and 40 mg, were not withdrawn for reasons of safety or effectiveness. The petitioner has identified no data or other information suggesting that MEVACOR (lovastatin) tablets, 20 mg and 40 mg, were withdrawn for reasons of safety or effectiveness. We have carefully reviewed our files for records concerning the withdrawal of MEVACOR (lovastatin) tablets, 20 mg and 40 mg, from sale. We have also independently evaluated relevant literature and data for possible postmarketing adverse events. We have found no information that would indicate that this product was withdrawn from sale for reasons of safety or effectiveness.
Accordingly, the Agency will continue to list MEVACOR (lovastatin) tablets, 20 mg and 40 mg, in the “Discontinued Drug Product List” section of the Orange Book. The “Discontinued Drug Product List” delineates, among other items, drug products that have been discontinued from marketing for reasons other than safety or effectiveness. FDA will not begin procedures to withdraw approval of approved ANDAs that refer to MEVACOR (lovastatin) tablets, 20 mg and 40 mg. Additional ANDAs that refer to these products may also be approved by the Agency as long as they meet all other legal and regulatory requirements for the approval of ANDAs. If FDA determines that labeling for these drug products should be revised to meet current standards, the Agency will advise ANDA applicants to submit such labeling.
Food and Drug Administration, HHS.
Notice of availability.
The Food and Drug Administration (FDA or Agency) is announcing the availability of the guidance entitled “Submission and Review of Sterility Information in Premarket Notification (510(k)) Submissions for Devices Labeled as Sterile.” This guidance updates and clarifies the information regarding sterilization processes that FDA recommends sponsors include in 510(k)s for devices labeled as sterile. This guidance document also provides details about the pyrogenicity information that FDA recommends sponsors include in a 510(k) submission.
Submit either electronic or written comments on this guidance at any time. General comments on Agency guidance documents are welcome at any time. The recommendations in this guidance will be implemented on March 21, 2016.
You may submit comments as follows:
Submit electronic comments in the following way:
• Federal eRulemaking Portal:
• If you want to submit a comment with confidential information that you do not wish to be made available to the public, submit the comment as a written/paper submission and in the manner detailed (see “Written/Paper Submissions” and “Instructions”).
Submit written/paper submissions as follows:
• Mail/Hand delivery/Courier (for written/paper submissions): Division of Dockets Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
• For written/paper comments submitted to the Division of Dockets Management, FDA will post your comment, as well as any attachments, except for information submitted, marked and identified, as confidential, if submitted as detailed in “Instructions.”
• Confidential Submissions—To submit a comment with confidential information that you do not wish to be made publicly available, submit your comments only as a written/paper submission. You should submit two copies total. One copy will include the information you claim to be confidential with a heading or cover note that states “THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION”. The Agency will review this copy, including the claimed confidential information, in its consideration of comments. The second copy, which will have the claimed confidential information redacted/blacked out, will be available for public viewing and posted on
An electronic copy of the guidance document is available for download from the Internet. See the
Alternatively, you may submit written requests for single copies of the guidance document to the Office of Communication, Outreach and Development, Center for Biologics Evaluation and Research (CBER), Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 71, Rm. 3128, Silver Spring, MD 20993-0002. Send one self-addressed adhesive label to assist that office in processing your request. The guidance may also be obtained by mail by calling CBER at 1-800-835-4709 or 240-402-8010.
Rebecca Nipper, Center for Devices and Radiological Health, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 66, Rm. 1540, Silver Spring, MD 20993-0002, 301-796-6527; or Stephen Ripley, Center for Biologics Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 71, Rm. 7301, Silver Spring, MD 20993-0002, 240-402-7911.
In recent years, FDA has received an increasing number of 510(k)s for devices labeled as sterile that are sterilized during the manufacturing process by methods other than the traditionally used methods (
This guidance document updates and clarifies the information regarding sterilization processes that we recommend sponsors include in 510(k)s for devices labeled as sterile. This guidance document also provides details about the pyrogenicity information that we recommend sponsors include in a 510(k) submission. In the
This guidance is being issued consistent with FDA's good guidance practices regulation (21 CFR 10.115). The guidance represents the current thinking of FDA on submission and review of sterility information in 510(k)s for devices labeled as sterile. It does not establish any rights for any person and is not binding on FDA or the public. You can use an alternative approach if it satisfies the requirements of the applicable statutes and regulations.
Persons interested in obtaining a copy of the guidance may do so by downloading an electronic copy from the Internet. A search capability for all Center for Devices and Radiological Health guidance documents is available at
This guidance refers to previously approved collections of information found in FDA regulations. These collections of information are subject to review by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The collections of information in 21 CFR part 807, subpart E, have been approved under OMB control number 0910-0120; and the collections of information in 21 CFR part 820 have been approved under OMB control number 0910-0073.
Food and Drug Administration, HHS.
Notice.
The Food and Drug Administration (FDA) is announcing that a proposed collection of information has been submitted to the Office of Management and Budget (OMB) for review and clearance under the Paperwork Reduction Act of 1995.
Fax written comments on the collection of information by February 22, 2016.
To ensure that comments on the information collection are received, OMB recommends that written comments be faxed to the Office of Information and Regulatory Affairs, OMB, Attn: FDA Desk Officer, FAX: 202-395-7285, or emailed to
FDA PRA Staff, Office of Operations, Food and Drug Administration, 8455 Colesville Rd., COLE-14526, Silver Spring, MD 20993-0002,
In compliance with 44 U.S.C. 3507, FDA has submitted the following proposed collection of information to OMB for review and clearance.
The Dietary Supplement and Nonprescription Drug Consumer Protection Act (the DSNDCPA) (Pub. L. 109-462, 120 Stat. 3469) amends the Federal Food, Drug, and Cosmetic Act (the FD&C Act) with respect to serious adverse event reporting and recordkeeping for dietary supplements and non-prescription drugs marketed without an approved application. Section 761(b)(1) of the FD&C Act (21 U.S.C. 379aa-1(b)(1)) requires the manufacturer, packer, or distributor whose name under section 403(e)(1) of the FD&C Act (21 U.S.C. 343(e)(1))) appears on the label of a dietary supplement marketed in the United States to submit to us all serious adverse event reports associated with the use of a dietary supplement, accompanied by a copy of the product label. The manufacturer, packer, or distributor of a dietary supplement is required by the DSNDCPA to use the MedWatch Form FDA 3500A when submitting a serious adverse event report to FDA. In addition, under section 761(c)(2) of the FD&C Act, the submitter of the serious adverse event report (referred to in the statute as the “responsible person”) is required to submit to FDA a follow-up report of any related new medical information the responsible person receives within 1 year of the initial report.
Section 761(e)(1) of the FD&C Act (21 U.S.C. 379aa-1(e)(1)) requires that responsible persons maintain records related to the dietary supplement adverse event reports they receive, whether or not the adverse event is serious. Under the statute, the records must be retained for a period of 6 years.
As required by section 3(d)(3) of the DSNDCPA, we issued guidance to describe the minimum data elements for serious adverse event reports for dietary supplements. In the
The guidance recommends that the responsible person document their attempts to obtain the minimum data elements for a serious adverse event report. Along with these records, the guidance recommends that the responsible person keep the following other records: (1) Communications between the responsible person and the initial reporter of the adverse event and
In the
We estimate the burden of this collection of information as follows:
This estimate is based on our experience with similar adverse event reporting programs and the number of serious adverse event reports and follow-up reports received in the past 3 years. All dietary supplement manufacturers, packers, or distributors are subject to serious adverse event mandatory reporting.
We received 2,435 initial serious adverse event reports in Fiscal Year (FY) 2012, 3,414 in FY2013, and 2,745 in FY2014. We averaged these figures (2,860 rounded to the nearest ten) as a basis for our estimated number of annual reports. We also used an average of the number of firms filing reports (170 rounded to the nearest ten). Finally, we estimate that it will take respondents an average of 2 hours per report to collect information about a serious adverse event associated with a dietary supplement and report the information to us on Form FDA 3500A. Thus, the estimated burden associated with submitting initial dietary supplement serious adverse event reports is 5,720 hours (2,860 responses × 2 hours) as shown in row 1 of table 1.
If a respondent that has submitted a serious adverse event report receives new information related to the serious adverse event within 1 year of submitting the initial report, the respondent must provide the new information to us in a follow-up report. We estimate that 25 percent of serious adverse event reports related to dietary supplements will have a follow-up report submitted, resulting in approximately 715 follow-up reports submitted annually (2,860 × 0.25 = 715). Dividing the annual number of reports among the 170 firms reporting results in approximately 17 reports for 42 respondents. We estimate that each follow-up report will require an hour to assemble and submit, including the time needed to copy and attach the initial serious adverse event report as recommended in the guidance. Thus the estimated burden for follow-up reports of new information is 715 hours (715 responses × 1 hour) as shown in row 2 of table 1.
All dietary supplement manufacturers, packers, or distributors are subject to serious adverse event recordkeeping. We estimate that there are 1,700 such respondents, based on the figure 1,460 as provided in our final rule of June 25, 2007 (72 FR 34751), on the Current Good Manufacturing Practice in Manufacturing, Packaging, Labeling, or Holding Operations for Dietary Supplements, and factoring a two percent annual growth rate. Estimating that each recordkeeper will keep approximately 74 records per year results in an annual burden of 125,800 records. Estimating that assembling and filing these records, including any necessary photocopying, will take approximately 30 minutes, or 0.5 hours, per record, results in an annual burden of 62,900 hours (125,800 records × 0.50 hours = 62,900 total hours.
Once the documents pertaining to an adverse event report have been assembled and filed pursuant to the Safety Reporting Portal, we expect the records retention burden to be minimal, as we believe most establishments would normally keep this kind of record for at least several years after receiving the report, as a matter of usual and customary business practice.
Health Resources and Services Administration (HRSA), HHS.
Notice.
The Health Resources and Services Administration (HRSA) is requesting nominations of qualified candidates to fill expected vacancies on the Advisory Council on Blood Stem Cell Transplantation (ACBSCT).
The ACBSCT was established pursuant to Public Law 109-129 as amended by Public Law 111-264; 42 U.S.C. 274k; Section 379 of the Public Health Service Act. In accordance with Public Law 92-463, the ACBSCT was chartered on December 19, 2006.
The agency will receive nominations on a continuous basis.
Nominations should be submitted to the Executive Secretary, ACBSCT, Healthcare Systems Bureau, HRSA, 5600 Fishers Lane, Room 08N182, Rockville, MD 20857. Federal Express, Airborne, or UPS, mail delivery should be addressed to Executive Secretary, ACBSCT, Healthcare Systems Bureau, HRSA, at the above address. Nominations submitted electronically should be emailed to
Patricia A. Stroup, M.B.A., M.P.A., Executive Secretary, ACBSCT, at (301) 443-1127 or email
The Council was established to implement a statutory requirement of the Stem Cell Therapeutic and Research Act of 2005 (Pub. L. 109-129). The Council is governed by the Federal Advisory Committee Act, as amended (5 U.S.C. Appendix 2), which sets forth standards for the formation and use of advisory committees.
The ACBSCT advises the Secretary and the Administrator, HRSA on matters related to the activities of the C.W. Bill Young Cell Transplantation Program (Program) and the National Cord Blood Inventory Program.
The ACBSCT shall, as requested by the Secretary, discuss and make recommendations regarding the Program. It shall provide a consolidated, comprehensive source of expert, unbiased analysis and recommendations to the Secretary on the latest advances in the science of blood stem cell transplantation. The ACBSCT shall advise, assist, consult and make recommendations, at the request of the Secretary, on broad Program policy in areas such as the necessary size and composition of the adult donor pool available through the Program and the composition of the National Cord Blood Inventory; requirements regarding informed consent for cord blood donation; accreditation requirements for cord blood banks; the scientific factors that define a cord blood unit as high quality; public and professional education to encourage the ethical recruitment of genetically diverse donors and ethical donation practices; criteria for selecting the appropriate blood stem source for transplantation; Program priorities; research priorities; and the scope and design of the Stem Cell Therapeutic Outcomes Database. It also shall, at the request of the Secretary, review and advise on issues relating more broadly to the field of blood stem cell transplantation, such as regulatory policy pertaining to the compatibility of international regulations, and actions that may be taken by the state and federal governments and public and private insurers to increase donation and access to transplantation. The ACBSCT also shall make recommendations regarding research on emerging therapies using cells from bone marrow and cord blood.
The ACBSCT consists of up to 25 members, including the Chair. Members of the ACBSCT shall be chosen to ensure objectivity and balance, and reduce the potential for conflicts of interest. The Secretary shall establish bylaws and procedures to prohibit any member of the ACBSCT who has an employment, governance, or financial affiliation with a donor center, recruitment organization, transplant center, or cord blood bank from participating in any decision that materially affects the center, recruitment organization, transplant center, or cord blood bank; and to limit the number of members of the ACBSCT with any such affiliation.
The members and chair shall be selected by the Secretary from outstanding authorities and representatives of marrow donor centers and marrow transplant centers; representatives of cord blood banks and participating birthing hospitals; recipients of a bone marrow transplant; recipients of a cord blood transplant; persons who require such transplants; family members of such a recipient or family members of a patient who has requested the assistance of the Program in searching for an unrelated donor of bone marrow or cord blood; persons with expertise in bone marrow and cord blood transplantation; persons with expertise in typing, matching, and transplant outcome data analysis; persons with expertise in the social sciences; basic scientists with expertise in the biology of adult stem cells; ethicists; hematology and transfusion medicine researchers with expertise in adult blood stem cells; persons with expertise in cord blood processing; and members of the general public.
In addition, representatives from HRSA's Division of Transplantation, the Department of Defense Marrow Recruitment and Research Program operated by the Department of the Navy, the Food and Drug Administration, the National Institutes of Health, the Centers for Medicare & Medicaid Services, and the Centers for Disease Control and Prevention serve as non-voting ex officio members.
Specifically, HRSA is requesting nominations for voting members of the ACBSCT in these categories: Marrow donor centers and transplant center representatives; cord blood banks and participating hospitals' representatives; recipients of cord blood transplant; family members of bone marrow transplant and cord blood transplant recipients or family members of a patient who has requested assistance by the Program in searching for an unrelated donor; persons with expertise in bone marrow or cord blood transplantation; persons with expertise in typing, matching, and transplant outcome data analysis; persons with expertise in social sciences; basic scientists with expertise in the biology of adult stem cells; researchers in hematology and transfusion medicine with expertise in adult blood stem cells; persons with expertise in cord blood processing; and members of the general public. Nominees will be invited to serve a 2-year term, beginning the date of appointment, with the possibility of additional 2-year terms, not to exceed 6 years consecutively.
HHS will consider nominations of all qualified individuals to ensure that the ACBSCT includes the areas of subject matter expertise noted above. Individuals may nominate themselves or other individuals, and professional associations and organizations may nominate one or more qualified persons for membership on the ACBSCT. Nominations shall state that the nominee is willing to serve as a member of the ACBSCT. Potential candidates will be asked to provide detailed information concerning financial interests, consultancies, research grants, and/or contracts that might be affected by recommendations of the ACBSCT to
A nomination package should be sent in as hard copy, email communication, or on compact disc. A nomination package should include the following information for each nominee: (1) A letter of nomination stating the name, affiliation, and contact information for the nominee, the basis for the nomination (
HHS strives to ensure that the membership of HHS federal advisory committees is balanced in terms of points of view represented, consistent with the committee's authorizing statute and charter. Appointment to the ACBSCT shall be made without discrimination on the basis of age, race, ethnicity, gender, sexual orientation, disability, and cultural, religious, or socioeconomic status. The Department encourages nominations of qualified candidates from all groups and locations.
Health Resources and Services Administration, HHS.
Notice of request for nominations.
The Health Resources and Services Administration (HRSA) is requesting nominations to fill vacancies on the Advisory Committee on Organ Transplantation (ACOT). The ACOT was established by the Amended Final Rule of the Organ Procurement and Transplantation Network (OPTN) (42 CFR part 121) and, in accordance with Public Law 92-463, was chartered on September 1, 2000.
The agency must receive nominations on a continuous basis.
All nominations should be submitted to the Executive Secretary, ACOT, Healthcare Systems Bureau, HRSA, 5600 Fishers Lane, Room 08N182, Rockville, Maryland 20857. Federal Express, Airborne, UPS, etc., mail delivery should be addressed to Executive Secretary, Advisory Committee on Organ Transplantation, Healthcare Systems Bureau, HRSA, at the above address, or via email to:
Patricia A. Stroup, M.B.A., M.P.A., Executive Secretary, ACOT, at (301) 443-1127 or email
As provided by 42 CFR 121.12, the Secretary established the ACOT. The ACOT is governed by the Federal Advisory Committee Act (5 U.S.C. Appendix 2), which sets forth standards for the formation and use of advisory committees.
The ACOT advises the Secretary on all aspects of organ procurement, allocation, and transplantation, and on other such matters that the Secretary determines. One of its principal functions is to advise the Secretary on federal efforts to maximize the number of deceased donor organs made available for transplantation and to support the safety of living organ donation.
The ACOT consists of up to 25 members, who are Special Government Employees, and 6 ex-officio, non-voting members. Members and the Chair shall be appointed by the Secretary from individuals knowledgeable in such fields as deceased and living organ donation, health care public policy, transplantation medicine and surgery, critical care medicine and other medical specialties involved in the identification and referral of donors, non-physician transplant professions, nursing, epidemiology, immunology, law and bioethics, behavioral sciences, economics and statistics, as well as representatives of transplant candidates, transplant recipients, living organ donors, and family members of deceased and living organ donors. Members shall not serve while they are also serving on the OPTN Board of Directors. To the extent practicable, Committee members should represent minority, gender and geographic diversity of transplant candidates, transplant recipients, organ donors and family members served by the OPTN. The ex-officio, non-voting members shall include the Directors of the National Institutes of Health, the Centers for Disease Control and Prevention, and the Agency for Healthcare Research and Quality; the Administrator of the Centers for Medicare & Medicaid Services; the Commissioner of the Food and Drug Administration; and the Chair, Advisory Committee on Blood and Tissue and Safety Availability—or their designees.
Specifically, HRSA is requesting nominations for voting members of the ACOT representing: Health care public policy; transplantation medicine and surgery, including pediatric and heart/lung transplantation; critical care medicine; nursing; epidemiology and applied statistics; immunology; law and bioethics; behavioral sciences; economics and econometrics; organ procurement organizations; transplant candidates/recipients; transplant/donor family members; and living donors. Nominees will be invited to serve up to a 4-year term.
The Department of Health and Human Services (HHS) will consider nominations of all qualified individuals with a view to ensuring that the ACOT includes the areas of subject matter expertise noted above. Individuals may nominate themselves or other individuals, and professional associations and organizations may nominate one or more qualified persons for membership on the ACOT. Nominations shall state that the nominee is willing to serve as a member of the ACOT and appears to have no conflict of interest that would preclude the ACOT membership. Potential candidates will be asked to provide detailed information concerning financial interests, consultancies, research grants, and/or contracts that might be affected by recommendations of the ACOT to permit evaluation of possible sources of conflicts of interest.
A nomination package should include the following information for each nominee:
(1) A letter of nomination stating the name, affiliation, and contact information for the nominee, the basis for the nomination (
HHS strives to ensure that the membership of HHS federal advisory committees is balanced in terms of
Office for Human Research Protections, Office of the Secretary, Office of the Assistant Secretary for Health, Department of Health and Human Services.
Notice.
42 U.S.C. 217a, Section 222 of the Public Health Service Act, as amended. The Committee is governed by the provisions of Public Law 92-463, as amended (5 U.S.C. Appendix 2), which sets forth standards for the formation and use of advisory committees.
The Office for Human Research Protections (OHRP), a program office in the Office of the Assistant Secretary for Health, Department of Health and Human Services (HHS), is seeking four (4) nominations of qualified candidates to be considered for appointment as members of the Secretary's Advisory Committee on Human Research Protections (SACHRP). SACHRP provides advice and recommendations to the Secretary, HHS, through the Assistant Secretary for Health on issues pertaining to the continuance and improvement of functions within the authority of HHS directed toward protections for human subjects in research. SACHRP was established by the Secretary, HHS, on October 1, 2002. OHRP is seeking nominations of four qualified candidates to fill positions on the Committee membership that will be vacated during the 2016 calendar year, including the position of Chair.
Nominations for membership on the Committee must be received no later than March 21, 2016.
Nominations should be mailed or delivered to Julia Gorey, Executive Director, SACHRP, Office for Human Research Protections, Department of Health and Human Services, 1101 Wootton Parkway, Suite 200; Rockville, MD 20852. Nominations will not be accepted by email or by facsimile.
Julia Gorey, Executive Director, SACHRP, Office for Human Research Protections, 1101 Wootton Parkway, Suite 200, Rockville, MD 20852, telephone: 240-453-8141. A copy of the Committee charter and list of the current members can be obtained by accessing the SACHRP Web site at
The Committee provides advice on matters pertaining to the continuance and improvement of functions within the authority of HHS directed toward protections for human subjects in research. Specifically, the Committee provides advice relating to the responsible conduct of research involving human subjects with particular emphasis on special populations such as neonates and children, prisoners, the decisionally impaired, pregnant women, embryos and fetuses, individuals and populations in international studies, investigator conflicts of interest and populations in which there are individually identifiable samples, data or information.
In addition, the Committee is responsible for reviewing selected ongoing work and planned activities of the OHRP and other offices/agencies within HHS responsible for human subjects protection. These evaluations may include, but are not limited to, issues relating to the Notice of Proposed Rulemaking (NPRM) titled “Federal Policy for the Protection of Human Subjects” that appeared in the
The individuals selected for appointment to the Committee may be invited to serve a term of up to four years. Committee members receive a stipend and reimbursement for per diem and any travel expenses incurred for attending Committee meetings and/or conducting other business in the interest of the Committee. Interested applicants may self-nominate. Nominations may be retained and considered for future vacancies.
Nominations should be typewritten. The following information should be included in the package of material submitted for each individual being nominated for consideration: (1) A letter of nomination that clearly states the name and affiliation of the nominee, the basis for the nomination (
The Department makes every effort to ensure that the membership of HHS federal advisory committees is fairly balanced in terms of points of view represented and the committee's function. Every effort is made to ensure that individuals from a broad representation of geographic areas, women and men, ethnic and minority groups, and the disabled are given consideration for membership on HHS federal advisory committees. Appointment to this Committee shall be made without discrimination on the basis of age, race, ethnicity, gender, sexual orientation, disability, and cultural, religious, or socioeconomic status.
Individuals who are selected to be considered for appointment will be required to provide detailed information regarding their financial holdings, consultancies, and research grants or contracts. Disclosure of this information is necessary in order to determine if the
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.
Information is also available on the Institute's/Center's home page:
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 meeting.
The meeting 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 meetings of the National Advisory Council for Human Genome Research.
The meetings will be open to the public as indicated below, with attendance limited to space available. Individuals who plan to attend and need special assistance, such as sign language interpretation or other reasonable accommodations, should notify the Contact Person listed below in advance of the meeting.
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.
Any interested person may file written comments with the committee by forwarding the statement to the Contact Person listed on this notice. The statement should include the name, address, telephone number and when applicable, the business or professional affiliation of the interested person.
In the interest of security, NIH has instituted stringent procedures for entrance onto the NIH campus. All visitor vehicles, including taxicabs, hotel, and airport shuttles will be inspected before being allowed on campus. Visitors will be asked to show one form of identification (for example, a government-issued photo ID, driver's license, or passport) and to state the purpose of their visit.
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 Cancer Institute Special Emphasis Panel, February 16, 2016, 10:00 a.m. to February 16, 2016, 1:00 p.m., National Cancer Institute Shady Grove, 9609 Medical Center Drive, 7W122, Rockville, MD 20850 which was published in the
The meeting is amended to change the date of the meeting to February 17, 2016 from 10:00 a.m. to 3:00 p.m. 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 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.
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 National Institute on Minority Health and Health Disparities (NIMHD), 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 to address 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) 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, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.
OMB approval is requested for 3 years. There are no costs to respondents other than their time. The total estimated annualized burden hours are 548.
Transportation Security Administration, DHS.
60-day Notice.
The Transportation Security Administration (TSA) invites public comment on one currently approved Information Collection Request (ICR), Office of Management and Budget (OMB) control number 1652-0055, abstracted below that we will submit to OMB for a revision in compliance with the Paperwork Reduction Act (PRA). The ICR describes the nature of the information collection and its expected burden. Specifically, the collection involves the submission of data concerning pipeline security incidents.
Send your comments by March 21, 2016.
Comments may be emailed to
Christina A. Walsh at the above address, or by telephone (571) 227-2062.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501
(1) Evaluate whether the proposed information requirement 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 the agency's estimate of the burden;
(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, including using appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.
As the lead Federal agency for pipeline security, TSA desires to be notified of all incidents which are indicative of a deliberate attempt to disrupt pipeline operations or activities that could be precursors to such an attempt. The Pipeline Security Guidelines encourage pipeline operators to notify the Transportation Security Operations Center (TSOC) via phone at 866-615-5150 or email at
• Explosions or fires of a suspicious nature affecting pipeline systems, facilities, or assets.
• Actual or suspected attacks on pipeline systems, facilities, or assets.
• Bomb threats or weapons of mass destruction (WMD) threats to pipeline systems, facilities, or assets.
• Theft of pipeline company vehicles, uniforms, or employee credentials.
• Suspicious persons or vehicles around pipeline systems, facilities, assets, or right-of-way.
• Suspicious photography or possible surveillance of pipeline systems, facilities, or assets.
• Suspicious phone calls from people asking about the vulnerabilities or security practices of a pipeline system, facility, or asset operation.
• Suspicious individuals applying for security-sensitive positions in the pipeline company.
• Theft or loss of Sensitive Security Information (SSI) (detailed pipeline maps, security plans, etc.).
• Actual or suspected cyber-attacks that could impact pipeline Supervisory Control and Data Acquisition (SCADA) or enterprise associated IT systems.
When contacting the TSOC, the Guidelines request pipeline operators to provide as much of the following information as possible:
• Name and contact information (email address, telephone number).
• The time and location of the incident, as specifically as possible.
• A description of the incident or activity involved.
• Who has been notified and what actions have been taken.
• The names and/or descriptions of persons involved or suspicious parties and license plates as appropriate.
In addition to the reporting of security incident data to the TSOC, the Pipeline Security Guidelines previously included collecting information on recommendations for the voluntary submission of pipeline operator security manager contact information to TSA. TSA is revising the collection of information and will no longer collect the security manager contact information as that information is now available through data maintained by TSA; however, the agency will continue to collect information on the reporting of security incident data to TSOC.
TSA expects reporting of pipeline security incidents will occur on an irregular basis. TSA estimates that approximately 40 incidents will be reported annually, requiring a maximum of 30 minutes to collect, review, and submit event information. The potential burden to the public is estimated to be 20 hours. (40 incidents × 30 minutes = 20 hours)
Office of the Chief Information Officer, HUD.
Notice.
HUD has submitted the proposed information collection requirement described below to the Office of Management and Budget (OMB) for review, in accordance with the Paperwork Reduction Act. The purpose of this notice is to allow for an additional 30 days of public comment.
Interested persons are invited to submit comments regarding this proposal. Comments should refer to the proposal by name and/or OMB Control Number and should be sent to: HUD Desk Officer, Office of Management and Budget, New Executive Office Building, Washington, DC 20503; fax: 202-395-5806. Email:
Colette Pollard, Reports Management Officer, QMAC, Department of Housing and Urban Development, 451 7th Street, SW., Washington, DC 20410; email Colette Pollard at
Copies of available documents submitted to OMB may be obtained from Ms. Pollard.
This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A.
The
This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following:
(1) 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;
(2) The accuracy of the agency'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 those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology,
Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35.
Fish and Wildlife Service, Interior.
Notice of availability, receipt of application.
We, the U.S. Fish and Wildlife Service (Service or USFWS), have received an application from the Massachusetts Division of Fisheries and Wildlife (MADFW) for an incidental take permit (ITP) under the Endangered Species Act of 1973, as amended (ESA). We are considering issuing a 25-year permit to the applicant that would authorize take of the federally threatened piping plover incidental to otherwise lawful activities, specifically recreational activities and beach operations on piping plover breeding beaches in Massachusetts. Pursuant to the ESA and the National Environmental Policy Act (NEPA), we announce the availability of the MADFW's ITP application and draft habitat conservation plan (HCP), as well as the Service's draft environmental assessment (EA), for public review and comment. We provide this notice to seek comments from the public and Federal, Tribal, State, and local governments.
We will accept comments received or postmarked on or before February 22, 2016. Comments submitted electronically using the Federal eRulemaking Portal (see
You may submit written comments by one of the following methods:
We request that you send comments by only one of the methods described above. We will post all information received on the Web site at:
Thomas Chapman, by mail at U.S. Fish and Wildlife Service, New England Field Office, 70 Commercial Street, Suite 300, Concord, NH 03301; or by phone at (603) 223-2541.
We received an application from the MADFW for an ITP to take the federally threatened piping plover (
To comply with the National Environmental Policy Act (42 U.S.C. 4321
You may obtain copies of the proposed HCP and draft EA on the internet at the New England Field Office's Web site at
Section 9 of the ESA (16 U.S.C. 1531
The MADFW is seeking a permit for the incidental take of the piping plover for a term of 25 years. Incidental take of this species may occur as a result of recreational activities and beach operations that deviate from State and Federal guidelines for managing piping plovers. The proposed covered activities include: (1) The use of roads and parking lots in the vicinity of unfledged piping plover chicks; (2) recreational activities and beach operations associated with reduced symbolic fencing around nests (temporary stake and twine or rope with signage erected around piping plover nests and habitat to delineate no entry areas for over-sand vehicles (OSVs) and pedestrians); (3) recreational activities and beach operations associated with reduced proactive symbolic fencing of piping plover habitat; (4) the moving of piping plover nests for recreational access and beach operations; and (5) OSV use in the vicinity of unfledged piping plover chicks. The proposed conservation strategy in the applicant's proposed HCP is designed to avoid, minimize, and mitigate the impacts of covered activities on the piping plover. The HCP's stated purpose is to advance piping plover conservation and recovery in Massachusetts while maintaining and improving recreational beach access and beach operations.
To achieve plover conservation and limited flexibility for recreational activities and beach operations, the HCP identified broad program goals, including: (1) A framework to maintain a “viable and robust” piping plover population in Massachusetts; (2) community support for piping plover conservation; and (3) streamlining the State and Federal permitting processes for site-level management flexibility. The MADFW intends to extend its take authorization to issue Certificates of Inclusion (COIs) to approved landowners and beach managers (referred to as Plan participants) who: (1) Engage in the covered activities described in the HCP; (2) meet the COI eligibility and application requirements described in the HCP; and (3) agree to implement the HCP, required ITP conditions, and the MADFW conservation and management permit (required for State-listed species, including the piping plover). Plan participants are required to develop implementation avoidance and minimization plans (IAMPs) that are based on conservation measures outlined in the HCP and to implement mitigation to offset the take of piping plover adults, chicks, and nests. The HCP conservation strategy's primary avenue for mitigation is selective predator management that would be implemented on site or off site. Additional education, outreach, and law enforcement efforts could be implemented by Plan participants, but because the impacts of these measures are not quantifiable, these measures are not considered to offset the anticipated take.
The HCP outlines a sliding scale for estimating the annual allowable take of broods, nests, or territories based on the 3-year running statewide population average. The scale ranges from 0 take if the statewide population is below 500 breeding pairs to a maximum take exposure of 7 percent of the statewide population if the statewide population is at or exceeds 655 breeding pairs. Therefore, the annual amount of take over the 25-year permit duration could range from a low of no nests, broods, or territories exposed to take to a high of 7 percent of the statewide population's nests, broods, or territories exposed to take. The Service has estimated the potential take to be the highest level of annual take, 70 broods per year, based on a statewide population estimate of 1,000 breeding pairs. This estimate is based on the estimated Massachusetts carrying capacity of 1,100 breeding pairs and the assumption that carrying capacity is unlikely to be reached during the permit term.
The proposed action is the issuance of an ITP and implementation of the proposed HCP. The MADFW considered two alternatives to the proposed action in its HCP: A reduced take alternative under which expanded OSV use in the presence of unfledged plover chicks would not be included, thereby reducing the amount of take allocated under the HCP, and an activity-by-activity alternative whereby the MADFW and beach landowners or managers of recreational beaches would apply to the Service for individual ITPs for take associated with recreational activities and beach operations.
In compliance with NEPA, we analyzed the impacts of the proposed project, issuance of an ITP and implementation of the HCP, and a reasonable range of alternatives. Based on this analysis and any new information resulting from public comment, we will determine if there are any significant impacts caused by the proposed action. We have prepared a draft EA on the proposed action and have made it available for public inspection online or in person at the New England Field Office (see Availability of Documents).
NEPA requires that a range of reasonable alternatives to the proposed action be described. The draft EA analyzes three alternatives: A no action alternative, the proposed action, and a shorter permit term alternative.
We will evaluate the plan and comments we receive to determine whether the permit application meets the requirements of section 10(a) of the ESA (16 U.S.C. 1531
The Service invites the public to comment on the proposed HCP and draft EA during a 30-day public comment period (see
We will post all public comments and information received electronically or via hard copy on our Web site at:
This notice is provided pursuant to section 10(c) of the ESA (16 U.S.C. 1531
Fish and Wildlife Service, Interior.
Notice of receipt of application for permit; reopening of comment period.
We, the U.S. Fish and Wildlife Service, invite the public to comment on the following application to conduct certain activities with endangered species. With some exceptions, the Endangered Species Act (ESA) prohibits activities with listed species unless Federal authorization is acquired that allows such activities.
We must receive comments or requests for documents on or before February 22, 2016.
•
•
When submitting comments, please indicate the name of the applicant and the PRT# you are commenting on. We will post all comments on
Brenda Tapia, (703) 358-2104 (telephone); (703) 358-2281 (fax);
Send your request for copies of applications or comments and materials concerning any of the applications to the contact listed under
Please make your requests or comments as specific as possible. Please confine your comments to issues for which we seek comments in this notice, and explain the basis for your comments. Include sufficient information with your comments to allow us to authenticate any scientific or commercial data you include.
The comments and recommendations that will be most useful and likely to influence agency decisions are: (1) Those supported by quantitative information or studies; and (2) Those that include citations to, and analyses of, the applicable laws and regulations. We will not consider or include in our administrative record comments we receive after the close of the comment period (see
Comments, including names and street addresses of respondents, will be available for public review at the street address listed under
To help us carry out our conservation responsibilities for affected species, and in consideration of section 10(a)(1)(A) of the Endangered Species Act of 1973, as amended (16 U.S.C. 1531
On October 15, 2015, we published a
U.S. Geological Survey, Interior.
Notice.
On October 19, 2015, the U.S. Department of the Interior published a notice inviting nominations for non-Federal members of the Advisory Committee on Climate Change and
Written nominations must be received by February 22, 2016.
Send nominations to: Robin O'Malley, Policy and Partnership Coordinator, National Climate Change and Wildlife Science Center, U.S. Geological Survey, 12201 Sunrise Valley Drive, Mail Stop 516, Reston, VA 20192,
Robin O'Malley, Policy and Partnership Coordinator, National Climate Change and Wildlife Science Center, U.S. Geological Survey, 12201 Sunrise Valley Drive, Mail Stop 516, Reston, VA 20192,
On October 19, 2015, the U.S. Department of the Interior (DOI) published a notice inviting nominations for the Advisory Committee on Climate Change and Natural Resource Science (Committee), for members whose initial terms expired in May 2016. The Committee provides advice on matters and actions relating to the establishment and operations of the U.S. Geological Survey National Climate Change and Wildlife Science Center and the DOI Climate Science Centers. See:
Contacts with potential nominees from state government have indicated that additional time to secure management approval of their nomination is required. Because state governments are a key partner, the Department is reopening the nomination period, for state government nominees only.
Nominations should include a resume that describes the nominee's qualifications in enough detail to enable us to make an informed decision regarding meeting the membership requirements of the Committee and to contact a potential member.
The Committee is composed of approximately 25 members from the Federal Government, and the following interests: (1) State and local governments, including state membership entities; (2) Non-governmental organizations, including those whose primary mission is professional and scientific and those whose primary mission is conservation and related scientific and advocacy activities; (3) American Indian tribes and other Native American entities; (4) Academia; (5) Landowners, businesses, and organizations representing landowners or businesses.
In addition, the Committee may include scientific experts, and will include rotating representation from one or more of the institutions that host the DOI Climate Science Centers.
The Committee will meet approximately 2-4 times annually, and at such times as designated by the DFO. The Secretary of the Interior will appoint members to the Committee. Members appointed as special Government employees are required to file on an annual basis a confidential financial disclosure report.
No individual who is currently registered as a Federal lobbyist is eligible to serve as a member of the Committee.
Bureau of Indian Affairs, Interior.
Notice.
This notice publishes the Salt River Pima-Maricopa Indian Community of the Salt River Reservation Liquor Ordinance (Ordinance). The Ordinance certifies the Salt River Pima-Maricopa Indian Community's Liquor licensing laws to regulate and control the possession, sale and consumption of liquor within the jurisdiction of the Salt River Pima-Maricopa Indian Community. The Ordinance repeals and replaces the previous liquor control ordinance published in the
This ordinance becomes effective February 22, 2016.
Ms. Sharlot Johnson, Tribal Government Services Officer, Western Regional Office, Bureau of Indian Affairs, 2600 North Central Avenue, Phoenix, AZ 85004, Phone: (602) 379-6786; Fax: (602) 379-379-4100, or Ms. Laurel Iron Cloud, Bureau of Indian Affairs, Office of Indian Services, 1849 C Street NW., MS-4513-MIB, Washington, DC 20240; Telephone: (202) 513-7641.
Pursuant to the Act of August 15, 1953, Public Law 83-277, 67 Stat. 586, 18 U.S.C. 1161, as interpreted by the Supreme Court in
Nothing in this chapter is intended to be or shall be construed as a waiver of the sovereign immunity of the Community.
(a) Title. This article shall be known as the Salt River Pima-Maricopa Indian Community Alcoholic Beverage Control Ordinance.
(b) Authority. This article is enacted pursuant to the Act of August 15, 1953, (Public Law 83-277, 67 stat. 588, 18 U.S.C. 1161) and article VII of the Community Constitution.
(c) Purpose. The purpose of this article and article III of this chapter is to regulate and control the possession, consumption, and sale of liquor or alcoholic beverages within the boundary of the Community. The enactment of an ordinance governing liquor or alcoholic
(d) Application of 18 U.S.C. 1161. All acts and transactions under this article shall be in conformity with this article and in conformity with the laws of the State of Arizona, to the extent required by 18 U.S.C. 1161.
(e) Effective date. This article shall be effective as a matter of Community law upon approval by the Community Council and effective as a matter of federal law when the Assistant Secretary of Indian Affairs certifies and publishes this article in the
This chapter constitutes the entire statutory law of the Community in regard to the sale, possession and/or distribution of alcoholic beverages within the Community.
The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Aggrieved party means a person, an applicant, a Community member or the Community. Alcoholic beverage means beer, wine or other spirituous liquor (including but not limited to brandy, whiskey, rum, tequila, mescal, gin, porter, ale any malt liquor beverage, absinthe, a compound mixture of these or a compound mixture of these with any other substance which produces intoxication, fruits preserved in ardent spirits and beverages containing more than one-half of one percent of alcohol by volume).
Applicant means any partnership, corporation, limited liability company or Community enterprise as well as any natural person that is or are requesting approval of a Community liquor license.
Broken package means any container of spirituous liquor on which the United States tax seal has been broken or removed, or from which the cap, cork or seal placed thereupon by the manufacturer has been removed, except that “broken package” does not include when a person removes a bottle of wine that has been partially consumed in conjunction with a purchased meal from a licensed premises if a cork is inserted flush with the top of the bottle or the bottle is otherwise securely closed.
Community means the Salt River Pima-Maricopa Indian Community, a federally recognized Indian tribe.
Controlling person means a person directly or indirectly possessing control of an applicant or licensee. Control is presumed to exist if a person has the direct or indirect ownership of or power to vote ten percent or more of the outstanding voting securities of the applicant, licensee or controlling person or to control in any manner the election of one or more of the directors of the applicant, licensee or controlling person. In the case of a partnership, control is presumed to mean the general partner or a limited partner who holds ten percent or more of the voting rights of the partnership. For the purposes of determining the percentage of voting securities owned, controlled or held by a person, there shall be aggregated with the voting securities attributed to the person the voting securities of any other person directly or indirectly controlling, controlled by or under common control with the other person, or by an officer, partner, employee or agent of the person or by a spouse, parent or child of the person. Control is also presumed to exist if a creditor of the applicant, licensee or controlling person holds a beneficial interest in ten percent or more of the liabilities of the licensee or controlling person.
Director means director of the Community regulatory agency who is also the director. Gross revenue means the revenue derived from all the sales of food and alcoholic beverages on the licensed premises, regardless of whether the sales of alcoholic beverages are made under a restaurant license issued pursuant to this article.
Hearing officer means a person designated by the Community manager to hear an appeal of a decision made by the director.
License means a license issued pursuant to the provisions of this article by the Community.
Licensed premises or premises means a place from which a licensee is authorized to sell alcoholic beverages under the provisions of this article.
Licensee means any partnership, corporation, limited liability company or Community enterprise, as well as any natural person who has been authorized to sell alcoholic beverages for consumption at a particular premises by the Community.
Minibar means a closed container, either refrigerated in whole or in part or nonrefrigerated, where access to the interior is restricted by means of a locking device which requires the use of a key, magnetic card or similar device.
Office means the alcohol beverage control office or persons within the Community regulatory agency that regulate alcoholic beverage and/or liquor sales and distribution transactions within the Community as created in section 14-24.
Off-sale retailer means any person operating a bona fide regularly established retail liquor store selling alcoholic beverages and any established retail store selling commodities other than alcoholic beverages that is engaged in the sale of alcoholic beverages only in the original unbroken package, to be taken away from the premises of the retailer and to be consumed off the premises.
On-sale retailer means any person operating an establishment where spirituous liquors are sold in the original container for consumption on or off the premises or in individual portions for consumption on the premises.
Person means any partnership, corporation, limited liability company, or Community enterprise, as well as any natural person.
Possess means to have any item or substance within the control of a person or to have any alcoholic beverage within a person's body, regardless of where the consumption may have taken place.
Private residence means a place where an individual or a family maintains a habitation.
Public patio enclosure means a contiguous patio or a patio that is not contiguous to the remainder of the licensed premises if the noncontiguous patio is separated from the remainder of the premises or licensed premises by a public or private walkway or driveway not to exceed 30 feet, subject to the rules that the office may adopt to establish criteria for a noncontiguous premises.
Public place means any place that is not a private residence, including within operational motor vehicles or nonresidential structures, and not licensed, pursuant to this article, for the possession of alcoholic beverages.
Restaurant (excluding the provisions in this article that govern casino or golf course licenses) means an establishment that derives at least 40 percent of its gross revenue from the sale of food, including sales of food for consumption off the licensed premises if the amount
(a) Office. The office of alcohol beverage control (office) is hereby established within the Community's regulatory agency. The director of the Community regulatory agency is hereby designated as the alcohol beverage control officer (director) who will be responsible to the Community manager and whose duties may be delegated from time to time to other employees of the office. All of the positions of the office will be filled and conducted in accordance with the Community's established policies and procedures.
(b) Authority of the office. The office shall have the following authority:
(1) Grant and deny applications in accordance with this article;
(2) Adopt rules and regulations to implement this article;
(3) Hold hearings and make determinations on whether to grant or deny licenses;
(4) Employ necessary personnel;
(5) Maintain a public record open to the public containing the names and addresses of each licensee and any person who is a controlling person;
(6) Liaison between the office and the Community police department to ensure enforcement of this article and article III of this chapter and any relevant regulations issued pursuant to this chapter;
(7) Investigate and enforce compliance of this article and article III of this chapter and any relevant regulations that also pertain to the selling of alcoholic beverages within the Community; and
(8) Inspect, during the hours in which a premises is occupied, the premises of a licensee.
(9) To conduct a state and federal criminal history check pursuant to Arizona Revised Statute 41-1750 and Public Law 92-544 on all applicants for a license under this chapter; and that all applicants must submit a full set of fingerprints to the office who shall submit the fingerprints to the Arizona Department of Public Safety, who may then exchange the fingerprint data with the Federal Bureau of Investigation.
(c) Inspection of premises, enforcement and investigations. The office shall receive complaints of alleged violations of this article and article III of this chapter and is also responsible for the investigation of allegations of violations of, or noncompliance with, the selling of alcoholic beverages pursuant to this article and article III of this chapter or any relevant regulations issued pursuant to this chapter.
(1) The office shall establish a separate investigation unit which has as its responsibility the investigation of compliance within this article.
(2) A complete record of all applications, actions taken thereon, and any licenses issued shall be maintained by the office and shall be open for public inspection at the office.
(3) Office staff that are authorized to investigate pursuant to this article shall have the authority to investigate and issue a notice of a violation of noncompliance with this chapter.
(4) The office or the Community police department may cite a licensee to appear before the office or the hearing officer for a hearing upon allegations of violations of this article and article III of this chapter or any relevant law or regulation issued pursuant to this chapter.
(5) The office or the director may take evidence, administer oaths or affirmations, issue subpoenas requiring attendance and testimony of witnesses, cause depositions to be taken and require by subpoena duces tecum for the production of books, papers and other documents which are necessary for the enforcement of this article and article III of this chapter.
(6) The office, including the director, may, in enforcing the provisions of this article, inspect the premises.
(a) Alcoholic beverages may be possessed and consumed only at private residences, and licensed premises pursuant to this chapter, and may be transported in unbroken containers to such places. For purposes of this provision, “unbroken container” includes when a person removes a bottle of wine that has been partially consumed in conjunction with a purchased meal from a licensed premises if a cork is inserted flush with the top of the bottle or the bottle is otherwise securely closed.
(b) Wine may be purchased, stored, distributed and consumed in connection with the bona fide practice of a religious belief or as an integral part of a religious exercise of an organized church and in a manner not dangerous to public health or safety.
(c) The purchase, storage and use of alcoholic beverages solely for the purpose of cooking or preparing food and in a manner not dangerous to public health and safety are authorized.
(d) Alcoholic beverages may also be served and consumed at a premises licensed pursuant to a business ancillary license if the following conditions have been met; a business serves alcoholic beverages as part of a cooking demonstration or cooking class; or is an accredited school offering degree programs in the culinary arts.
(e) Alcoholic beverages may be sold at licensed premises only under the conditions under which the license is issued.
The director may issue a license for premises located within the designated area identified in the December 9, 2009, approved Community liquor licensing area corridor (attached to the ordinance from which this article is derived, and incorporated herein by reference).
(1) The December 9, 2009, approved Community liquor licensing area corridor shall be kept with the official records of the Community in the office of the council secretary.
(2) Upon majority vote by the Community Council and publication in the Community's newspaper, the Community Council may amend the December 9, 2009, approved Community liquor licensing area corridor and any future amendments thereof.
Licenses may only be issued for premises listed and defined as follows:
a. The director may issue a hotel-motel license to any hotel or motel that operates either a restaurant or a bar in the hotel or motel, provided that the
b. The holder of a hotel-motel license is authorized to sell and serve alcoholic beverages solely for consumption on the licensed premises. For the purpose of this section, the term “licensed premises” includes all minibars located within guestrooms, accommodations, public bar rooms, outdoor patio enclosures, outdoor pool areas, public restaurant rooms, facilities, areas, and private banquet or meeting rooms located within the hotel-motel premises or connected to the hotel-motel premises.
a. The director may issue a casino license to any casino authorized to operate as a casino by the Community.
b. The holder of a casino license is authorized to sell and serve alcoholic beverages solely for consumption on the licensed premises. For the purpose of this section, the term “licensed premises” includes all public bar rooms, gaming areas, private banquet or meeting rooms, restaurants, other food service facilities, outdoor patio enclosures, and land contiguous to the casino facility.
a. The director may issue a golf course clubhouse license to any golf course clubhouse.
b. The holder of a golf course clubhouse license is authorized to sell and serve alcoholic beverages solely for consumption on the licensed premises and only to patrons of the golf course facility. For the purpose of this section, the term “licensed premises” includes all restaurants and other food service facilities, private banquet or meeting rooms, bar rooms, outdoor patio enclosures, lounge facilities within the golf course clubhouse, and golf course enclosure. For purposes of this section, the term “golf course clubhouse” means a clubhouse located on a golf course. For purposes of this section, the term “golf course enclosure” means substantially undeveloped land, including amenities such as landscaping, irrigation systems, paths and golf greens and tees, that may be used for golfing or golfing practice by the public or by members and guests of a private club.
a. The director may issue a restaurant license to any restaurant that is regularly open for the serving of food to guests for compensation and that has suitable kitchen facilities connected with the restaurant for keeping, cooking and preparing foods required for ordinary meals.
b. The restaurant shall be regularly open for the serving of food to guests for compensation and is an establishment which derives at least 40 percent of its gross revenue from the sale of food (which includes nonalcoholic beverages), including sales of food for consumption off the licensed premises if the amount of these sales included in the calculation of gross revenue from the sale of food does not exceed 15 percent of all gross revenue for the restaurant. For purposes of meeting the gross revenue requirements, a restaurant license applicant may request that the licensed premises include less than the entire establishment in which the applicant operates its business; provided that alcoholic beverages are restricted to the licensed premises.
c. The holder of a restaurant license may sell and serve alcoholic beverages solely for consumption on the licensed premises. For the purpose of this subsection, the term “licensed premises” may include rooms, areas or locations in which the restaurant normally sells or serves alcoholic beverages or spirituous liquors pursuant to regular operating procedures and practices and that are contiguous to the restaurant or a public patio enclosure. For the purposes of this subsection, a restaurant licensee must submit proof of tenancy or permission from the landlord for all property to be included in the licensed premises.
d. The holder of a restaurant license shall be required upon request of the office to submit an audit of the records for the premises to demonstrate compliance with subsection (4)b of this section. An establishment that averages at least 40 percent of its gross revenue from the sale of food during a 12-month audit period shall be deemed to comply with the gross revenue requirements of subsection (4)b of this section. The 12-month audit period shall fall within the 16 months immediately preceding the beginning of the audit. The office shall not require an establishment to submit to such an audit more than once a year after the initial 12 months of operation. When conducting an audit, the office shall use generally accepted auditing standards.
1. If the audit reveals that the licensee did not meet the definition of a restaurant as prescribed in subsection (4)b of this section and the percentage of food sales was less than 37 percent, then the office shall deem the license to have been revoked or the office may recommend that the licensee be granted an additional 12-month period to attempt to increase their food percentage to at least 37 percent.
2. If the audit reveals that the licensee did not meet the definition of a restaurant as prescribed in subsection (4)b of this section and the percentage of food sales was more than 37 percent and less than 40 percent, then the office shall allow the licensee to continue to operate under the restaurant license for a period of one year, during which the licensee shall attempt to increase the food percentage to at least 40 percent. If the licensee does not increase the percentage of food sales to at least 40 percent, then the license issued pursuant to this article shall be revoked or the office may recommend that the licensee be granted an additional 12-month period to attempt to increase their food percentage to at least 40 percent.
a. The director may issue a government license to any Community governmental entity or commercial enterprise upon application by the governing board of that Community governmental or commercial enterprise entity for the sales of alcoholic beverages for consumption.
b. The holder of a government license may sell and serve alcoholic beverages solely for consumption on the licensed premises. The holder of the government license may sell and serve alcoholic beverages for consumption on the premises for which the license is issued, including a stadium.
c. Any agreement entered into by a Community governmental entity to a concessionaire to sell or serve alcoholic beverages pursuant to this subsection shall contain the following provisions:
1. A provision that fully indemnifies and holds harmless the Community and any of its agencies, boards, commissions, officers, and employees against any liability for loss or damage incurred either on or off Community property and resulting from the negligent serving of alcoholic beverages by the concessionaire or the concessionaire's agents or employees.
2. A provision that either posts a surety bond in favor of the Community in an amount determined by the Community to be sufficient to indemnify the Community against the potential liability or that names the Community as an additional insured in a liability policy that provides sufficient coverage to indemnify the Community as determined by the Community.
a. The director may issue a business ancillary license to a business that serves alcoholic beverages as part of a cooking demonstration or cooking class; or a school offering degree programs in the culinary arts.
1. A business ancillary license shall be issued pursuant to the process prescribed in sections 14-56 through 14-68; provided that certain provisions, as determined by the director (in a written form), may not be applicable as a business ancillary licensee is generally considered a social host and not engaged in the selling of alcoholic beverages.
2. A business ancillary license shall only be available to a business that is not in the primary business of selling food or alcohol.
3. The holder of a business ancillary license is authorized to serve alcoholic beverages solely for consumption on the licensed premises and only to guests of the business or in the case of a school, to students enrolled at the school.
4. The holder of a business ancillary license shall not be authorized to sell alcoholic beverages separately or by the drink.
b. The director may issue a special event license for a business for the purpose of holding a bona fide business-related networking function for its customers, clients, employees or business partners; or for the purpose of a bona fide charitable, civic, or religious organization to hold a special fundraising event; provided that any license issued as a special event license meets the following conditions:
1. A special event license is only issued for one day for a duration that shall not exceed eight hours;
2. A special event license may only be issued no more than once a year and shall only be issued to an applicant that has obtained a special event license pursuant to the requirements of the State of Arizona; and
3. A special event license shall only be available to a business that is not in the primary business of selling food or alcohol.
c. A person applying for a special event license must make application to the office at least 45 days prior to the special event. The director in his or her administrative discretion, without a public hearing, shall consider the following factors in determining whether to approve or disapprove the special event license:
1. Whether the event will be open to the public;
2. The criminal history of the applicant;
3. The nature of the event;
4. The security measures taken by the applicant;
5. The type of alcoholic beverages to be sold at the event;
6. How the alcoholic beverages will be served at the event;
7. Whether the applicant, within the past three years, has held an event that created a Community disturbance or whether the event site has generated Community disturbance complaints;
8. The potential for noise, traffic, lack of parking, and other related concerns;
9. The length of the event;
10. The sanitary facilities available to the participants;
11. The anticipated number of participants at the event;
12. The availability of the Community's police and fire departments to provide coverage at the event (if deemed reasonably necessary by the Community);
13. Proof of adequate insurance (as deemed reasonably necessary by the director) by the applicant for this event; and
14. The nature of the sound amplification of the event.
d. In addition to the special event license issued pursuant to this article, the applicant must obtain a special use permit from the Community, and pay for any associated costs, including any overtime costs, for police, fire, or other Community departments whose presence is determined necessary, by the Community, for the special event.
(a) Every alcoholic beverage licensee shall be a citizen of the United States.
(b) The office shall require an applicant and may require any controlling person to furnish background information and to submit a full set of fingerprints to the office.
(c) Each applicant or licensee shall designate a person who shall be responsible for managing the premises. The manager shall be a natural person and shall meet all the requirements for licensure pursuant to this article.
(d) No license shall be issued to any person who, within one year before application, has had a license revoked in any jurisdiction.
(e) No license shall be issued to or renewed for any person who, within five years before the application, has been convicted of a felony in any jurisdiction; provided that for a conviction of a corporation, LLC or partnership to serve as a reason for denial, conduct which constitutes the offense and was the basis for a felony conviction must have been engaged in, authorized, solicited, commanded or recklessly tolerated by the directors of the corporation, LLC or partnership or by a high managerial agent acting within the scope of employment. For purposes of this subsection, the term “high managerial agent” means an officer, partner or member of a corporation, LLC or partnership in a position of comparable authority with respect to the formulation of company policy.
(f) No corporation shall be issued a license or a renewal of that license unless on file with the office is a list of all of the corporation's officers and directors and any stockholders who own ten percent or more of the corporation. The office shall not issue or renew a license for any person who at the request of the director fails to provide the office with complete financial disclosure statements indicating all financial holdings of any controlling person. Provided that, publicly traded companies are exempt from the requirements set forth in this subsection.
(g) An alcoholic beverage license shall be issued only after a satisfactory showing of the capability, qualifications and reliability of the applicant; and that the public convenience requires and that the best interest of the Community will be substantially served by the issuance of the license.
(h) The license shall be to sell or deal in alcoholic beverages only at the place and in the manner provided in the license. A separate license shall be issued for each specific premises.
(i) All applications for an original license, the renewal of a license or the transfer of a license pursuant to this article shall be filed with and determined by the director, unless an appeal is filed and then the hearing officer will approve or disapprove of such license.
(j) A person who assigns, surrenders, transfers or sells control of a business which has an alcoholic beverage license shall notify the office within 15 business days after the assignment, surrender, transfer or sale. An alcoholic beverage license shall not be leased or subleased. A concessional agreement is not considered a lease or a sublease in violation of this article.
(k) If a person other than those persons originally licensed acquires control of a license or licensee, the person shall file notice of the acquisition with the office within 15 business days after such acquisition of
A person desiring a license to sell or deal alcoholic beverages shall make application to the office on a form prescribed by the office.
Within 30 days of receipt of the license application, the office shall hold a hearing on such application. Upon receipt of such application, the office shall post a copy of the completed application in a conspicuous place on the front of the premises where the business is proposed to be conducted and in this posting, the notice shall contain the following provisions: “A hearing on a liquor license application shall be held at the following date, time and location __________ [insert date, time and address]. Any person owning or leasing property within a one-mile radius may contact the office in writing to register as a protestor. To request information regarding procedures before the office and notice of any office hearings regarding this application, contact the office at __________ [insert office contact information].”
Licenses will be issued by the director after a hearing and upon a determination by the director that the following criteria have been met by a satisfactory showing by the applicant that:
(1) The public convenience requires the issuance of the license; and
(2) The best interests of the Community will be substantially served by the issuance of the license.
Evidence that may be considered when determining whether the public convenience requires and the best interest of the Community is substantially served by the issuance of a license are the following:
(1) Petitions and testimony from persons in favor of or opposed to the issuance of a license who reside in the Community, or own or lease property located within the Community that is in close proximity to the proposed premises.
(2) The number and series of licenses in close proximity.
(3) Evidence that all necessary licenses and permits have been obtained from the state and all other governing bodies.
(4) The residential and commercial population of the Community and its likelihood of increasing, decreasing or remaining static.
(5) The Community's residential and commercial population density in close proximity.
(6) Evidence concerning the nature of the proposed business, its potential market, and its likely customers.
(7) Effect on vehicular traffic in close proximity.
(8) The compatibility of the proposed business with other activity in close proximity.
(9) The effect or impact of the proposed premises on businesses or the residential neighborhood whose activities might be affected by granting the license.
(10) The history for the past five years of liquor violations and reported criminal activity at the proposed premises provided that the applicant has received a detailed report(s) of such activity at least 20 days before the hearing.
(11) Comparison of the hours of operation of the proposed premises to the existing businesses in close proximity.
(12) Proximity to licensed child care facilities and K through 12 schools.
In order to prevent the proliferation of licenses, the office may deny a license to an applicant after determining that the applicant's business is inappropriate for the sale of spirituous liquor. An inappropriate applicant or business is one that cannot clearly demonstrate that the sale of spirituous liquor is directly connected to its primary purpose and that the sale of liquor is not merely incidental to its primary purpose.
The director shall determine after a hearing has been held whether and under what conditions a license shall be issued.
(1) The hearing shall be announced by notice in the Community newspaper.
(2) Notice shall be given no less than ten business days prior to such hearing.
(3) The hearing shall be conducted by the director in an informal manner with rules adopted pursuant to this article calculated to ensure full disclosure of all relevant information.
(4) Professional attorneys may be permitted to represent parties at any administrative hearing before the office, the director or the hearing officer pursuant to this article.
(5) The director shall hear all relevant issues and, within 30 days after the hearing is concluded, shall issue a written decision.
(6) The decision will contain the findings of fact relied on by the director for the decision as well as the decision.
(7) The applicant shall be provided notice of the hearing via standard and certified mail.
(8) The director shall enter an order recommending approval or disapproval of the license within 60 days after the filing of the application.
A decision of the director may be appealed by any aggrieved party to the Community manager. The Community manager shall appoint a hearing officer to hear the appeal. The hearing officer shall be a member in good standing of the Arizona state bar and shall have previous experience serving in a judicial capacity.
(1) Appeal process. Appeals of any decision of the director shall follow this process:
a. A notice of appeal shall be filed with the Community manager within 15 business days after notice of the decision by the director.
b. The notice of appeal shall state all the grounds for appeal relied on by the appellant.
c. The appellee may file a short written response to the grounds for appeal within 15 business days after the notice of appeal is filed.
d. The notice of appeal and response shall be mailed to the opposing party within two business days after it was filed.
e. If the appellant is the applicant for the license, the appellee shall in all cases be the director. If the appellant is a person who filed a notice of appearance or the Community, the appellee shall in all cases be the applicant.
f. In the event there is more than one notice of appeal filed, the appeals shall be consolidated and only one response shall be filed to the consolidated appeals.
(2) Status of initial determination. The decision of the director shall be suspended until a final determination of the appeal is issued by the hearing officer.
(3) Grounds for appeal.
a. An aggrieved party may appeal any final decision of the director regarding applications or licenses based on a contention that the decision was any of the following:
1. Founded on or contained errors of law;
2. Unsupported by any competent evidence as disclosed by the record;
3. Materially affected by unlawful procedures;
4. Based on a violation of any Community constitutional provision; or
5. Arbitrary or capricious.
b. The hearing officer shall conduct a hearing and may accept any relevant and material evidence and testimony.
c. An official record of the hearing shall be prepared. Persons, at their own costs, may request that the hearing record be transcribed and may be provided a copy of the transcribed record.
d. The hearing officer shall determine whether the decision is supported by the findings of fact and the law.
e. The hearing officer may affirm, reverse or modify any decision issued by the director.
f. The hearing officer's decision shall be final and not subject to rehearing, review or appeal.
Licenses shall be issued for a period of one year and are renewable on application to the office which will renew upon payment of the appropriate fee.
(1) A licensee who fails to renew the license on or before the due date shall pay a penalty of $500.00.
(2) If the due date falls on a Saturday, Sunday or a legal holiday, the renewal shall be considered timely if it is received by the office on the next business day.
(3) A licensee who fails to renew the license on or before the due date may not sell, purchase, or otherwise deal in alcoholic beverages until the license is renewed.
(4) A license that is not renewed within 60 days after its due date is deemed terminated. The director may renew the terminated license if good cause is shown by the licensee as to why the license was not renewed on its due date or the 60 days following the due date.
(5) Issuance fees for an original license and the renewal thereof shall be the following (excluding applicable surcharges):
(6) The office may assess a surcharge on the annual renewals of licenses to be used to help defray the costs of an auditor and support staff to review compliance of the requirements of the licensees.
(7) The office may assess a surcharge to assist in the costs of enforcement programs that respond to complaints filed under this article.
(8) For purposes of this article only, licensee shall keep records of licensee's business activity and all persons employed at the licensed premises in a manner and location and for such duration as prescribed by the director for a period of at least two years. Business activity shall include invoices, records, bills or other papers and/or documents relating to the purchase, sale and delivery of alcoholic beverages, and in the case of a restaurant or hotel-motel licensee, such documentation shall also be kept for the purchase, sale and delivery of food.
(9) Licenses issued under this article are nontransferable without the prior written approval of the director after the application process has been completed.
a. The transfer fee of a license from one person to another person is $300.00 (excluding an application fee).
b. The transfer fee of license from one location to another location shall be $100.00 (excluding an application fee).
c. The office may issue an interim permit to the transferee of a transferable license pursuant to regulations established by the office.
(a) Licenses may only be issued for premises operated under the following classifications as defined herein; and such licenses may be restricted to the sale of:
(1) All alcoholic beverages;
(2) Only beer;
(3) Only wine; or
(4) Only beer and wine.
(b) Licenses may be restricted based on the type of license sought by the applicant.
After notice and a hearing, the director may revoke, suspend or refuse to renew any license issued pursuant to this article for the following reasons:
(1) There occurs on the licensed premises repeated acts of violence or disorderly conduct.
(2) The licensee fails to satisfactorily maintain the capability, qualifications and reliability requirements of an applicant for a license prescribed pursuant to this article.
(3) The licensee or controlling person knowingly files with the office an application or other document which contains material information which is false or misleading or while under oath knowingly gives testimony in an investigation or other proceeding under this article which is false or misleading.
(4) The licensee or the controlling person is habitually intoxicated while on the premises.
(5) The licensed business is delinquent for more than 90 days in the payment of taxes, penalties or interest to the Community.
(6) The licensee or the controlling person obtains, assigns, transfers or sells an alcoholic beverage license in a manner that is not compliant with this article and article III of this chapter.
(7) The licensee fails to keep for two years and make available to the office upon reasonable request all invoices, records, bills or other papers and/or documents relating the purchase, sale and delivery of alcoholic beverages, and in the case of a restaurant or hotel-motel license, all invoices, records, bills or other papers and/or documents relating to the purchase, sale and delivery of food.
(8) The licensee or controlling person violates or fails to comply with this article and article III of this chapter, any rule or regulation adopted pursuant to this chapter or any alcoholic beverage law of the Community.
(9) The licensee or an employee of a licensee fails to take reasonable steps to protect the safety of a customer of the licensee entering, leaving or remaining on the licensed premises when the licensee knew or reasonably should have known of the danger to such person, or the licensee fails to take reasonable steps to intervene by notifying law enforcement officials or otherwise prevent or break up an act of violence or an altercation occurring on the licensed premises or immediately adjacent to the premises when the licensee knew or reasonably should have known of such acts of violence or altercations.
(10) The licensee or controlling person lacks good moral character.
(11) The licensee or controlling person knowingly associates with a person who has engaged in racketeering or has been convicted of a felony, and the association is of such a nature as to create a reasonable risk that the licensee will fail to conform to the requirements of this article or of any Community law.
(12) The licensee or controlling person is convicted of a felony provided that for a conviction of a corporation, LLC or partnership to serve as a reason for any action by the office, conduct which constitutes the offense and was the basis for the felony conviction must have been engaged in, authorized, solicited, commanded or recklessly tolerated by the directors of the corporation, LLC or partnership or by a high managerial agent acting within the scope of employment. For purposes of this subsection, the term “high managerial agent” means an officer, partner or member of a corporation, LLC or partnership or any other agent of the corporation, LLC or partnership in a position of comparable authority with respect to the formulation of company policy.
(a) The director may suspend, revoke or refuse to issue, transfer or renew a license based solely on the unrelated conduct or fitness of any officer, director, managing agent or other controlling person if that officer, director, managing agent or controlling person retains any interest in or control of the license after 60 days following a written notice to the licensee.
(b) The director may refuse to transfer any license or issue a new license at the same location if the director has filed a complaint against a licensee or the location which has not been resolved that alleges a violation of any of the grounds identified in this article and article III of this chapter until such time as the complaint has been finally adjudicated.
(c) The director may cause a complaint and notice of hearing to be directed to the licensee setting forth the violations alleged against the licensee.
(a) Upon receipt of a complaint, the licensee shall have ten business days to respond to the allegations by filing a written response to the director.
(b) Failure by the licensee to respond to the compliant within ten business days shall be considered an admission by the licensee of the allegations. The director may then vacate a hearing and impose appropriate sanctions on the licensee.
(c) In lieu of or in addition to any suspension, revocation or refusal to renew a license, the director may impose a civil penalty of not less than $200.00 and no more than $3,000.00 for each violation and/or require the licensee and its employees to attend certain training.
(d) The licensee may appeal the decision by the director to fine, revoke or not renew their license to the Community manager who will appoint a hearing officer pursuant to the requirements of this article. The hearing officer may affirm, modify or reverse the decision of the director to impose the civil penalty.
If the office or the director has reasonable grounds to believe that a person owns, operates, leases, manages or is controlling a business establishment or business premises that is not properly licensed pursuant to this article, then the office or the director may apply to the Community court for a temporary restraining order or other injunctive relief prohibiting the specific acts complained of by the office or the director.
This chapter may be amended by a majority vote of the Community Council or by the Community initiative or referendum process.
In order to effectively enforce the regulatory and law enforcement provisions of this chapter, any report of violence or disorderly conduct occurring at an licensed premises that is received by either the office or the Community police department shall be immediately reported by the receiving department to the other department. In addition to the reporting of the incident, the department receiving the report of violence or disorderly conduct shall also share any relevant information with the other department unless the sharing of such information is prohibited by Community law or policy.
(a) Civil sanctions and penalties. A person who violates any provision of this chapter may have their license revoked, suspended or may be assessed other civil sanctions.
(b) Criminal penalties. Persons who come within the criminal jurisdiction of the Community, and are guilty of violations of this chapter, are subject to criminal penalties and upon conviction shall be sentenced to imprisonment for a period not to exceed six months or to
(a) It shall be unlawful for any person to buy, sell or distribute alcoholic beverages in any manner not allowed by this chapter.
(b) It shall be unlawful to employ a person under the age of 19 years in any capacity connected with the handling of alcoholic beverages.
(c) It shall be unlawful for a licensee or other person to give, sell or cause to be sold or otherwise distribute alcoholic beverages to a person under the age of 21 years.
(1) If a licensee, an employee of a licensee or any other person questions or has reason to question that a person ordering, purchasing, attempting to purchase or otherwise procuring or attempting to procure the serving or delivery of spirituous liquor is under the legal drinking age, the licensee, employee of the licensee or other person shall do the following:
a. Demand identification from the person.
b. Examine the identification to determine that the identification reasonably appears to be a valid, unaltered identification that has not been defaced.
c. Examine the photograph in the identification and determine that the person reasonably appears to be the same person in the identification.
d. Determine that the date of birth in the identification indicates the person is not under the legal drinking age.
(2) If a licensee or an employee of a licensee who follows the procedures prescribed above in subsections (c)(1)a through d of this section, records and retains a record of the person's identification on this particular visit, the licensee or employee of the licensee shall not be in violation of subsections (c) through (e) of this section.
(3) Proof that a licensee or employee followed the entire procedure proscribed above in subsections (c)(1)a through d of this section, but did not record and retain a record of the identification is an affirmative defense to a violation of this subsections (c) through (e) of this section.
(4) A licensee or employee of a licensee who has not recorded and retained a record of the identification prescribed by subsections (c)(1)a through d of this section, is presumed not to have followed any of the elements of subsections (c)(1)a through d of this section.
(d) It shall be unlawful for a person under the age of 21 years to buy, possess, or consume alcoholic beverages.
(e) It shall be unlawful for a licensee or an employee of the licensee to knowingly permit any person on or about the licensed premises to give or furnish alcoholic beverages to any person under the age of 21 or knowingly permit any person under the age of 21 to have in the person's possession alcoholic beverages on the licensed premises.
(f) It shall be unlawful for a licensee or an employee of the licensee to consume alcoholic beverages on or about the licensed premises during such periods as when such person is working at the licensed premises, except that:
(1) An employee of an on-sale retailer, during the employee's working hours in connection with the employment, while the employee is not engaged in waiting on or serving customers, may taste samples of beer or wine not to exceed four ounces per day or distilled spirits not to exceed two ounces per day provided by an employee of a wholesaler or distributor who is present at the time of sampling.
(2) An employee of an on-sale retailer, under the supervision of a manager as part of the employee's training and education, while not engaged in waiting on or serving customers may taste samples of distilled spirits not to exceed two ounces per educational session or beer/wine not to exceed four ounces per educational session, and provided that a licensee shall not have more than two educational sessions in any 30-day period.
(3) An unpaid volunteer of a special event may purchase and consume alcoholic beverages while not engaged in waiting on or serving alcoholic beverages to customers at the special event. This subsection does not apply to unpaid volunteers whose responsibilities include verification of a person's legal drinking age, security or the operation of any vehicle or heavy machinery.
(4) A licensee or employee of a licensee of a business ancillary licensee may consume alcoholic beverages as part of a meal prepared in connection with a cooking demonstration.
(g) It shall be unlawful for a licensee or an employee of the licensee to sell alcoholic beverages to a disorderly or obviously intoxicated person, or for a licensee or employee of a licensee to allow or permit a disorderly or obviously intoxicated person to remain on the premises except that a licensee or an employee of the licensee may allow an obviously intoxicated person to remain on the premises for period of time of not to exceed 30 minutes after the state of obvious intoxication is known or should have been known to the licensee in order that a nonintoxicated person may transport the obviously intoxicated person from the premises. For purposes of this article, the term “obviously intoxicated” means inebriated to the extent that a person's physical faculties are substantially impaired and the impairment is shown by significant uncoordinated physical action or physical dysfunction that would have been obvious to a reasonable person.
(h) It shall be unlawful for a licensee or an employee of the licensee to sell alcoholic beverages that are in a broken package (all wine and alcoholic beverages shall have their seal broken by the licensee or their employee before serving such alcoholic beverage to the customer).
(i) It shall be unlawful for a licensee or an employee of the licensee to sell alcoholic beverages as an off-sale retailer.
(j) It shall be unlawful for a licensee or an employee of the licensee to sell alcoholic beverages within the Community without being also licensed by the State of Arizona to sell alcoholic beverages.
(k) It shall be unlawful for a licensee or an employee of the licensee to sell, dispose of, deliver or give alcoholic beverages to a person between the hours of 2:00 a.m. and 6:00 a.m.
(l) It shall be unlawful for a licensee or an employee of the licensee to allow a person to consume or possess alcoholic beverages on the premises between the hours of 2:30 a.m. and 6:00 a.m.
(m) It shall be unlawful for a person to consume alcoholic beverages in a public place, thoroughfare or gathering. Any licensee or employee of the licensee permitting violations of this section shall be subject to license revocation. This subsection does not apply to the sale of alcoholic beverages on the premises of and by an on-sale retailer.
(n) It shall be unlawful for an on-sale retailer or an employee of the licensee to allow a person under the age of 21 years to remain in an area on the licensed premises during those hours in which the primary use is the sale, dispensing or consumption of alcoholic beverages after the licensee, or the licensee's employees know or should have known that the person is under the age of 21 years. This subsection does not apply if the person under the legal
(o) It shall be unlawful for an on-sale retailer or employee of the licensee to conduct drinking contests, to sell or deliver to a person an unlimited number of alcoholic beverages during any set period of time for a fixed price, to deliver more than 40 ounces of beer, one liter of wine or four ounces of distilled spirits in any alcoholic beverage drink to one person at one time for that person's consumption or to advertise any practice prohibited by this subsection.
(p) It shall be unlawful for a licensee or an employee of the licensee to knowingly permit the unlawful possession, use, sale or offer for sale of narcotics, dangerous drugs or marijuana on the premises.
(q) It shall be unlawful for a licensee or an employee of the licensee to knowingly permit prostitution or the solicitation of prostitution on the premises.
(r) It shall be unlawful for a licensee or an employee of the licensee to knowingly permit unlawful gambling on the premises.
(s) It shall be unlawful for a licensee or an employee of the licensee to knowingly permit trafficking or attempted trafficking in stolen property on the premises.
(t) It shall be unlawful for a licensee or an employee of the licensee to fail or refuse to make the licensed premises or records available for inspection and examination or so to comply with a lawful subpoena issued under this chapter.
(u) It shall be unlawful for any person other than a law enforcement officer, the licensee or an employee of the licensee acting with the permission of the licensee to be in the possession of a firearm while on the licensed premises of an on-sale retailer.
(v) It shall be unlawful for a licensee or an employee of the licensee to knowingly permit a person in possession of a firearm, other than a law enforcement officer, the licensee or the employee of the licensee (acting with the permission of the licensee) to remain on the licensed premises or to serve, sell or furnish spirituous liquor to a person in possession of a firearm while on the licensed premises of an on-sale retailer.
(w) It shall be unlawful for a person under the age of 21 to drive or be in physical control of a motor vehicle while there is any alcoholic beverage in the person's body.
(x) It shall be unlawful for a licensee or employee of the licensee to purposely induce a voter, by means of alcohol, to vote or abstain from voting for or against a particular candidate or issue on Election Day.
(y) It shall be unlawful for a licensee to fail to report an occurrence of an act of violence, within three business days, to either the office or the Community police department.
(z) It shall be unlawful for any person to consume or be in the possession of any open container of alcoholic beverages while operating or while within the passenger compartment of a motor vehicle that is located on any roadways or public parking lots within the Community. This subsection does not apply to a passenger on any bus, limousine or a passenger in the living quarters of a mobile home.
(1) Motor vehicle means any vehicle that is driven or drawn by mechanical power and that is designated for primary use on public roadways.
(2) Open container means any bottle, can, jar or other receptacle that contains alcoholic beverages and that has been opened, has had its seal broken or that the contents of which have been partially removed, except that it does not mean when a person removes a bottle of wine that has been partially consumed in conjunction with a purchased meal from a licensed premises if a cork is inserted flush with the top of the bottle or the bottle is otherwise securely closed.
(3) Passenger compartment means the area of a motor vehicle designed for seating of the driver and other passengers of the vehicle. Passenger compartments include any unlocked glove compartment and any unlocked portable devices within the immediate reach of the driver or any passengers.
(aa) It shall be unlawful for any person over the age of 18 who lawfully exercises dominion and control within any private residence or the surrounding premises to knowingly permit any person under the age of 21 to possess or consume alcoholic beverages within the private residence or within the immediate surrounding premises.
(bb) It shall be unlawful for a licensee to sell alcoholic beverages in any manner not provided for by this chapter or any regulations issued pursuant to this chapter.
Bureau of Land Management, Interior.
Notice.
As authorized under the provisions of the Federal Land Policy and Management Act of 1976, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), and pursuant to regulation, certain public land near Truth or Consequences, New Mexico, in Sierra County will be temporarily closed to all public use to provide for public health and safety during remediation work of a formerly used defense site (FUDS) by the U.S. Army Corps of Engineers (COE).
The temporary closure period is effective from February 1, 2016 to June 30, 2016.
Anthony Hom, Lead Realty Specialist, Multi-Resources Division, BLM Las Cruces District Office, 1800 Marquess Street, Las Cruces, New Mexico 88005; by telephone at 575-525-4331; or by email at
As authorized under the provisions of the Federal Land Policy and Management Act of 1976, 43 U.S.C. 1701
This closure applies to all public use. The public land affected by this closure is described as follows:
The area described contains 1,365.40 acres.
The subject FUDS is known as the Deming Precision Bombing Range No. 24. Detonation of on-site military munitions may occur, which requires that no personnel other than COE personnel or contractors are in the area during the remedial investigation/feasibility study (RI/FS) activities. Accordingly, public safety is the key issue during the RI/FS, necessitating closure of the affected public land. Without this closure, the public could inadvertently enter the subject area and endanger themselves.The closure notice and map of the closure area will be posted at the BLM Las Cruces District Office, 1800 Marquess Street, Las Cruces, New Mexico, and on the District Web site at
Bureau of Land Management, Interior.
Notice of intent.
In compliance with the National Environmental Policy Act (NEPA) of 1969, as amended, and the Federal Land Policy and Management Act (FLPMA) of 1976, as amended, the Bureau of Land Management (BLM) Lower Sonoran Field Office, Phoenix, Arizona, intends to prepare a Resource Management Plan (RMP) amendment with an associated Environmental Impact Statement (EIS) for the Sonoran Desert National Monument (SDNM). This notice announces the beginning of the scoping process to solicit public comments and identify issues.
This notice initiates the public scoping process for the RMP amendment with an associated EIS. Comments on issues may be submitted in writing until March 21, 2016. The date(s) and location(s) of scoping meetings will be announced at least 15 days in advance through local news media, newspapers and the BLM Web site at
You may submit comments on issues and planning criteria related to the SDNM Amendment and EIS addressing Recreational Target Shooting in the SDNM by any of the methods outlined below:
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•
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Dave Scarbrough, Monument Manager, telephone 623-580-5651; address 21605 North 7th Avenue, Phoenix, AZ 85027; email
This document provides notice that the BLM Lower Sonoran Field Office, Phoenix, Arizona, intends to prepare an RMP amendment addressing recreational target shooting in the SDNM with an associated EIS, announces the beginning of the scoping process, and seeks public input on issues and planning criteria. The planning area is located in Maricopa and Pinal counties, Arizona and encompasses approximately 486,400 acres of public land. The purpose of the public scoping process is to determine relevant issues that will influence the scope of the environmental analysis, including alternatives, and guide the planning process. Preliminary issues for the plan amendment area have been identified by BLM personnel and include: (1) Direct, indirect, and cumulative impacts from target shooting on monument objects and other resources; (2) impacts to surrounding areas resulting from displacement of recreational target shooters if areas are closed; (3) impacts to natural and cultural resources related to noise and litter associated with recreational target shooting; and (4) identification of opportunities to apply hierarchical mitigation strategies for avoiding, minimizing, and, where compensatory mitigation is appropriate, considering on-site, nearby, and regional locations as it relates to recreational target shooting. Preliminary planning criteria requires the BLM to ensure that there are no unnecessary data collection and analyses; that the process is based on applicable law; that the actions will be available for public comment; and that the BLM will be flexible in making adjustments as situations and assessments warrant.
You may submit comments on issues in writing to the BLM at any public scoping meeting, or you may submit
The BLM will utilize and coordinate the NEPA scoping process to help fulfill the public involvement process under the National Historic Preservation Act (54 U.S.C. 306108), as provided in 36 CFR 800.2(d)(3). The information about historic and cultural resources within the area of potential effect of the proposed action will assist the BLM in identifying and evaluating impacts to such resources.
The BLM will consult with Indian tribes on a government-to-government basis in accordance with Executive Order 13175 and other policies. Tribal concerns, including impacts on Indian trust assets and potential impacts to cultural resources, will be given due consideration. Federal, State, and local agencies, along with tribes and other stakeholders that may be interested in or affected by the proposed action that the BLM is evaluating, are invited to participate in the scoping process and, if eligible, may request or be requested by the BLM to participate in the development of the EIS as a cooperating agency.
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. The minutes and list of attendees for each scoping meeting will be available to the public and open for 30 days after the meeting to any participant who wishes to clarify the views he or she expressed. The BLM will evaluate identified issues to be addressed in the plan, and will place them into one of three categories:
1. Issues to be resolved in the plan amendment;
2. Issues to be resolved through policy or administrative action; or
3. Issues beyond the scope of this plan amendment.
The BLM will provide an explanation in the Draft RMP/Draft EIS as to why an issue was placed in categories 2 or 3. The public is also encouraged to help identify any management questions and concerns that should be addressed in the plan. The BLM will work collaboratively with interested parties to identify management decisions that are best suited to local, regional, and national needs and concerns.
The BLM will use an interdisciplinary approach to develop the plan amendment in order to consider the variety of resource issues and concerns identified. Specialists with expertise in the following disciplines will be involved in the planning process: National Conservation Lands designations, outdoor recreation, archaeology, wildlife and fisheries, rangeland management, minerals and geology, lands and realty, hydrology, soils, sociology, and economics.
40 CFR 1501.7 and 43 CFR 1610.2.
Bureau of Land Management, Interior.
Public Land Order.
This order withdraws 1,359.25 acres of public land from location and entry under the United States mining laws for a period of 20 years to protect important paleontological resources within the Red Gulch Dinosaur Tracksite located in Bighorn County, Wyoming. The land has been and will remain open to the public land laws and mineral and geothermal leasing.
Janelle Wrigley, Realty Officer, Bureau of Land Management, Wyoming State Office, 5353 Yellowstone Road, Cheyenne, Wyoming 82009, 307-775-6257 or via email at
Persons who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 to contact the above individual at normal business hours. The FIRS is available 24 hours per day, 7 days per week, to leave a message or question with the above individual. You will receive a reply during normal business hours.
The Bureau of Land Management will manage the land to protect the important paleontological resources and investments associated with development and maintenance of the Red Gulch Dinosaur Tracksite.
By virtue of the authority vested in the Secretary of the Interior by Section 204 of the Federal Land Policy and Management Act of 1976, 43 U.S.C. 1714, it is ordered as follows:
1. Subject to valid existing rights, the following described public land is hereby withdrawn from location and entry under the United States mining laws (30 U.S.C. Ch. 2), but not from leasing under the mineral or geothermal leasing laws, for the Bureau of Land Management to protect and preserve significant paleontological resources associated with the Red Gulch Dinosaur Tracksite.
The area described contains 1,359.25 acres in Big Horn County.
2. The withdrawal made by this order does not alter the applicability of those public land laws governing the use of land under lease, license or permit, or governing the disposal of the mineral or vegetative resources other than under the mining laws.
3. This withdrawal will expire 20 years from the effective date of this order, unless, as a result of a review conducted before the expiration date pursuant to Section 204(f) of the Federal Land Policy and Management Act of 1976, 43 U.S.C. 1714(f), the Secretary determines that the withdrawal shall be extended.
Bureau of Land Management, Interior.
Notice.
The Bureau of Land Management (BLM) proposes to offer a parcel of public land totaling 120.84 acres in Owyhee County, Idaho, by competitive sealed-bid and oral auction sale for a price not less than the fair market value (FMV) of $ 77,000. The sale will be subject to applicable provisions of Section 203 of the Federal Land Policy and Management Act (FLPMA) of 1976, as amended, and applicable BLM regulations.
Submit written comments via email, hand delivery, or mail. Comments must be received by the BLM Boise District Office on or before March 7, 2016. The period to submit sealed-bids and the sale date will be no earlier than March 21, 2016, which will be a minimum of 30 days prior to the sale date, through publication in a local newspaper, online media, and by mail to interested parties who submit a written request for information regarding the sale. The BLM must be in receipt of your request for information by the deadline for submission of written comments. The sale date will be no earlier than April 20, 2016.
Submit written comments concerning this notice to BLM Boise District, 3948 Development Avenue, Boise, ID 83705. Email comments to
Jeremy Bluma, Realty Specialist, 208-384-3348, or email
The BLM proposes to offer the following parcel of public land for a competitive sale:
The area described contains 120.84 acres.
The map delineating the sale parcel is available for public review at the Boise District Office. The lands are not suitable for management by other Federal agencies. A mineral potential report concludes that the sale parcel has known mineral values; therefore, the mineral estate will be reserved to the United States pursuant to 43 CFR 2720.0-6. The competitive sale is consistent with the 1999 Owyhee Resource Management Plan (RMP), Record of Decision, dated, December 30, 1999. The sale parcel conforms to the RMP decision “Land 2,” and the land is suitable for sale under the authority of Section 203 of FLPMA in the approved RMP.
Upon publication of this Notice in the
This segregative effect will terminate upon issuance of a patent, publication in the
Until completion of the sale, the BLM will no longer accept land use applications affecting the sale parcel, except applications for the amendment of previously filed right-of-way (ROW) applications or existing authorizations to increase the term of the grants in accordance with 43 CFR 2807.15 and 2886.15.
Prior to patent issuance, the BLM will notify valid existing right-of-way holder of record of their ability to convert their existing ROW to a new term, including perpetuity, if applicable, or conversion to an easement. In accordance with Federal regulations at 43 CFR 2807.15, once notified, each valid holder may apply for the conversion of their current authorization. The conveyance document would be subject to the following terms, covenants, conditions, and reservations:
1. A reservation to the United States of a ROW for ditches and canals constructed by authority of the United States under the Act of August 30, 1890 (43 U.S.C. 945);
2. A reservation to the United States of all minerals, together with the right to prospect for, mine, and remove such deposits from the same under applicable law and such regulations as the Secretary of the Interior may prescribe;
3. The parcel will be subject to all valid existing rights;
4. By accepting patent, the patentee agrees to indemnify, defend and hold the United States harmless from any costs, damages, claims, causes of action, penalties, fines, liabilities, and judgments of any kind or nature arising from the past, present, and future acts or omissions of the patentee, its employees, agents, contractors, or lessees, or any third-party, arising out of, or in connection with, the patentee's use, occupancy, or operations on the patented real property. This indemnification and hold harmless agreement includes, but is not limited to, acts and omissions of the patentee, its employees, agents, contractors, or lessees, or third party arising out of or in connection with the use and/or occupancy of the patented real property resulting in: (1) Violations of Federal, State, and local laws and regulations applicable to the real property; (2) Judgments, claims or demands of any kind assessed against the United States; (3) Costs, expenses, damages of any kind incurred by the United States; (4) Releases or threatened releases of solid or hazardous waste(s) and/or hazardous substances(s), as defined by Federal or State environmental laws, off, on, into or under land, property and other interests of the United States; (5) Activities by which solid or hazardous substances or wastes, as defined by Federal and State environmental laws were generated, released, stored, used or otherwise disposed of on the patented real property, and any cleanup response, remedial action, or other actions related in any manner to said solid or hazardous substances or wastes; or (6) Natural resource damages as defined by Federal and State law. This covenant shall be construed as running with the patented real property, and may be enforced by the United States in a court of competent jurisdiction;
5. Pursuant to the requirements in Section 120(h) of the Comprehensive Environmental Response, Compensation and Liability Act U.S.C. 9620 (h), notice is hereby given that the sale parcel has been examined and no evidence was found to indicate that any hazardous substances have been stored for 1 year or more, nor have any hazardous substances been disposed of or released on the subject property; and
6. No warranty of any kind, express or implied, is given by the United States or its officers or employees, as to title, access to or from the above sale parcel of land, whether or to what extent the land may be developed, its physical condition, or past, present, or future use, or any other circumstances or condition. The conveyance of any such
In order to determine the FMV through appraisal, certain extraordinary assumptions and hypothetical conditions may be made concerning the attributes and limitations of the lands and potential effects of local regulations and policies on potential future land uses. Through publication of this Notice, the BLM advises that the units of local government may not endorse or approve these assumptions.
Sealed-bids will be opened and recorded on the sale date to determine the high bid among the qualified bids received. The highest qualified sealed-bid will become the starting point for subsequent oral bidding. Any bids in an amount less than the federally approved FMV will not be considered. The BLM will send the successful high bidder(s) a letter with information regarding full payment.
All funds submitted with an unsuccessful bid will be returned to the bidders or their authorized representative upon presentation of acceptable photo identification at the BLM Boise District Office or by certified mail. If a bidder defaults on the sale parcel, the BLM may retain the bid deposit and cancel the sale of that parcel. If a high bidder is unable to consummate the transaction for any other reason, the second highest bid at or above the FMV may be considered. If there are no acceptable bids, the parcel may remain available for over-the counter sale on a continuing basis in accordance with competitive sale procedures without further legal notice.
Federal law requires that bidders must be: (1) United States citizens 18 years of age or older; (2) A corporation subject to the laws of any State or of the United States; (3) An entity legally capable of conveying and holding lands or interests therein under the laws of the State of Idaho within which the lands to be conveyed are located; or (4) A State, State instrumentality, or political subdivision authorized to hold real property. United States citizenship is evidenced by presenting a birth certificate, passport, or naturalization papers. Failure to submit the above requested documents to the BLM within 30 days from receipt of the high-bidder letter shall result in cancellation of the sale and forfeiture of the bid deposit.
No contractual or other rights against the United States may accrue until the BLM officially accepts the offer to purchase and the full bid price is paid.
Unless other satisfactory arrangements are approved in advance by a BLM authorized officer, conveyance of title shall be through the use of escrow. Designation of the escrow agent shall be through mutual agreement between the BLM and the prospective patentee, and costs of escrow shall be borne by the prospective patentee. Requests for all escrow instructions must be received by the BLM Boise District Office prior to 30 days before the prospective patentee's scheduled closing date. There will be no exceptions.
All name changes and supporting documentation must be received at the BLM Boise District Office by 3 p.m., Mountain Time (MT) no later than 30 days from the date noted on the high-bidder letter. Name changes will not be accepted after that date. To submit a name change, the apparent high bidder must submit the name change in writing on the Certificate of Eligibility form to the BLM Boise District Office.
The remainder of the full bid price for the parcel must be paid no later than 3 p.m. MT on the 180th day following the sale date. Payment must be submitted in the form of a certified check, U.S. postal money order, bank draft, cashier's check, or made available by electronic fund transfer made payable in U.S. dollars to the “Bureau of Land Management” to the BLM Boise District Office. Personal or company checks will not be accepted. Arrangements for electronic fund transfer to BLM for payment of the balance due must be made a minimum of 2 weeks prior to the payment date. The BLM will not accept the remainder of the bid price after the 180th day following the sale date. Failure to pay the full bid price prior to the expiration of the 180th day will disqualify the apparent high bidder and cause the entire bid deposit to be forfeited to the BLM. Forfeiture of the bid deposit is in accordance with 43 CFR 2711.3-1(d). No exceptions will be made. The BLM cannot accept the remainder of the bid price after the 180th day following the sale date.
The BLM will not sign any documents related to 1031 Exchange transactions. The timing for completion of an exchange is the bidder's responsibility. The BLM cannot be a party to any 1031 Exchange.
In accordance with 43 CFR 2711.3-1(f), within 30 days following the date of the sale, the BLM may accept or reject any or all offers to purchase, or withdraw any parcel of land or interest therein from sale if, in the opinion of the BLM authorized officer, consummation of the sale would be inconsistent with any law, or for other reasons as may be provided by applicable laws or regulations. No contractual or other rights against the United States may accrue until the BLM officially accepts the offer to purchase and the full bid price is paid.
It is the buyer's responsibility to be aware of all applicable Federal, State, and local government laws, regulations and policies that may affect the subject lands, including any required dedication of lands for public uses. It is the buyer's responsibility to be aware of existing or prospective uses of nearby properties. When conveyed out of Federal ownership, the lands would be subject to any applicable laws, regulations, and policies of the applicable local government for future uses. It is the responsibility of the purchaser to be aware through due diligence of those laws, regulations, and policies, and to seek any local approvals for future uses. Buyers should make themselves aware of any Federal or State laws or regulations that may affect the future use of the property. Any public land lacking access from a public road or highway would be conveyed as such, and future access acquisition would be the responsibility of the buyer.
Information concerning the sale, encumbrances of record, appraisals, reservations, sale procedures and conditions, the CERCLA, and other environmental documents that may appear in the BLM public files for the sale parcel are available for review at the BLM Boise District Office during business hours, 8:30 a.m. to 3:30 p.m. MT, Monday through Friday, except during Federal holidays.
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 any personal identifying information—may be made publicly available at any time.
43 CFR part 2710.
Bureau of Land Management, Interior.
Notice of intent.
In compliance with the National Environmental Policy Act of 1969, as amended (NEPA), and the Federal Land Policy and Management Act of 1976 (FLPMA), as amended, the Bureau of Land Management (BLM) Lakeview Resource Area, Lakeview, Oregon intends to prepare an Environmental Impact Statement (EIS) and by this notice is announcing the beginning of the scoping process to solicit public comments and identify issues.
This notice initiates the public scoping process for the EIS. Comments on issues may be submitted in writing until February 22, 2016. The date(s) and location(s) of any scoping meetings will be announced at least 15 days in advance through local media, newspapers and the BLM Web site at:
You may submit comments related to the EIS for Expanding an Existing Perlite Mining Operation; Lake County, Oregon by any of the following methods:
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Phil D'Amo, Geologist, telephone: 541-947-6114; address: Lakeview Resource Area, Bureau of Land Management, 1301 South G Street, Lakeview, OR 97630; email:
The applicant, Cornerstone, Inc., has requested to modify its existing Plan of Operation by expanding its existing 70-acre quarry by up to an additional 340 acres on Tucker Hill, located approximately 35 miles northwest of the town of Lakeview, Oregon. The BLM will consider issues and concerns identified during the scoping process during the preparation of the EIS. The purpose of the public scoping process is to determine relevant issues that will influence the scope of the environmental analysis, including alternatives, and guide the process for developing the EIS. The preliminary issues identified include potential impacts to soils, vegetation, noxious weeds, traditional Native American uses, archaeological sites, wildlife habitat, visual quality, and socio-economics. The BLM will identify, analyze, and require mitigation, as appropriate, to address the reasonably foreseeable impacts to resources from the expansion of this mine. Mitigation may include avoidance, minimization, rectification, reduction or elimination over time, and compensatory mitigation, and may be considered at multiple scales, including the landscape-scale. Those individuals, organizations, tribal governments, and agencies with a known interest in the proposal have been sent a scoping letter requesting comments. At this time there is no formal scoping meeting planned, though one could be scheduled if there is sufficient interest.
The comment period on the draft EIS will last 45 days from the date the U.S. EPA Notice of Availability appears in the
The BLM will utilize and coordinate the NEPA scoping process to help fulfill the public involvement process under the National Historic Preservation Act (54 U.S.C. 306108) as provided in 36 CFR 800.2(d)(3). The information about historic and cultural resources within the area potentially affected by the proposed action will assist the BLM in identifying and evaluating impacts to such resources.
The BLM will consult with Indian tribes on a government-to-government basis in accordance with Executive Order 13175 and other policies. Tribal concerns, including impacts on Indian trust assets and potential impacts to cultural resources, will be given due consideration. Federal, State, and local agencies, along with tribes and other stakeholders that may be interested in or affected by the proposed EIS for Expanding an Existing Perlite Mining Operation; Lake County, Oregon that the BLM is evaluating, are invited to participate in the scoping process and, if eligible, may request or be requested by the BLM to participate in the development of the environmental analysis as a cooperating agency.
Before including your address, phone number, email address, or other personal identifying information in your comment letter, 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 to have your personal identifying information withheld from public review, we cannot guarantee that we will be able to do so.
Bureau of Land Management, Interior.
Notice of Temporary Court-Ordered Closure.
Notice is hereby given that enforcement of a temporary court-ordered closure to target shooting is in effect on public lands within the Sonoran Desert National Monument (SDNM), administered by the Lower Sonoran Field Office, Bureau of Land Management (BLM).
Implementation of the temporary court-ordered closure within the described area commenced on September 15, 2015, and will remain in effect and enforced until a land use planning decision(s) regarding recreational target shooting for the SDNM is completed.
David Scarbrough, Manager; SDNM; Bureau of Land Management, Phoenix District Office, 21605 North 7th Avenue, Phoenix, Arizona 85027; 623-580-5500.
This temporary closure affects public lands within the SDNM, Maricopa County, Arizona. A map of this closure can be viewed online at
The temporary closure is the result of a Federal Court Order. On March 27, 2015, the Court issued a ruling in the case of National Trust for Historic Preservation et al v. Raymond Suazo, BLM, and Department of the Interior (docket #CV-13-01973-PHX-DGC). The Court found that the BLM violated the Federal Land Policy and Management Act (FLPMA) and National Environmental Policy Act (NEPA) when making its decision to designate the SDNM as open to recreational target shooting.
The Court vacated portions of the Record of Decision, Resource Management Plan, and Final Environmental Impact Statement (EIS) that permit recreational target shooting throughout the SDNM and remanded the decision to BLM for reconsideration. The Court also required the BLM to ensure the Final EIS's analysis of mitigation measures and cumulative impacts are consistent with the order.
On July 17, 2015, the Court granted the plaintiffs' request for injunctive relief and ordered the BLM to close approximately 10,599 acres (2.1%) of the SDNM to recreational target shooting pending compliance with the Court's March 27, 2015, Order. Closure of this area is expected to disperse shooters to other areas and eliminate potential impacts to SDNM resources and monument objects until the land use plan amendment to address recreational target shooting on the SDNM is completed. The July 17, 2015, Order also provided a deadline of September 15, 2015, to implement the closure, and a deadline of September 30, 2017, to address the planning shortfalls discussed in the Court's March 27, 2015, Order.
This temporary closure affects the following public lands within the SDNM, Maricopa County, Arizona:
The BLM has now posted closure signs at main entry points to the affected area and at approximately 1/10-mile intervals along the closure boundary and road access points. In addition to the signs, a map showing the extent of the closure and a notice from the BLM advising the public of the Court's Order has also been posted at these locations and in the Phoenix District Office. Maps of the affected area and other documents associated with this closure are available at the BLM Phoenix District Office located at 21605 North 7th Avenue, Phoenix, Arizona 85027.
Under the authority of Section 303(a) of the FLPMA of 1976 (43 U.S.C. 1733(a)), 43 CFR 8360-7, and 43 CFR 8364.1, the BLM will enforce the following rule within the SDNM: You must not target shoot in the closed area. Any person who violates the above rule and/or restriction may be tried before a United States Magistrate and fined no more than $1,000, imprisoned for no more than 12 months, or both. Such violations may also be subject to the enhanced fines provided for by 18 U.S.C. 3571.
43 CFR 8364.1.
National Park Service, Interior.
Notice.
The National Park Service is soliciting comments on the significance of properties nominated before December 26, 2015, for listing or related actions in the National Register of Historic Places.
Comments should be submitted by February 5, 2016.
Comments may be sent via U.S. Postal Service to the National Register of Historic Places, National Park Service, 1849 C St. NW., MS 2280, Washington, DC 20240; by all other carriers, National Register of Historic Places, National Park Service, 1201 Eye St. NW., 8th floor, Washington, DC 20005; or by fax, 202-371-6447.
The properties listed in this notice are being considered for listing or related actions in the National Register of Historic Places. Nominations for their consideration were received by the National Park Service before December 26, 2015. Pursuant to section 60.13 of 36 CFR part 60, written comments are being accepted concerning the significance of the nominated properties under the National Register criteria for evaluation.
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.
60.13 of 36 CFR part 60.
National Park Service, Interior.
Notice.
The National Park Service is soliciting comments on the significance of properties nominated before January 2, 2016, for listing or related actions in the National Register of Historic Places.
Comments should be submitted by February 5, 2016.
Comments may be sent via U.S. Postal Service to the National Register of Historic Places, National Park Service, 1849 C St. NW., MS 2280, Washington, DC 20240; by all other carriers, National Register of Historic Places, National Park Service, 1201 Eye St. NW., 8th floor, Washington, DC 20005; or by fax, 202-371-6447.
The properties listed in this notice are being considered for listing or related actions in the National Register of Historic Places. Nominations for their consideration were received by the National Park Service before January 2, 2016. Pursuant to section 60.13 of 36 CFR part 60, written comments are being accepted concerning the significance of the nominated properties under the National Register criteria for evaluation.
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.
60.13 of 36 CFR part 60.
Office of Natural Resources Revenue (ONRR), Interior.
Notice.
Final regulations that ONRR published September 13, 2004 (69 FR 55076), provide two types of accounting and auditing relief for Federal onshore or Outer Continental Shelf lease production from marginal properties. As the regulations require, ONRR provided a list of qualifying marginal Federal oil and gas properties to States that received a portion of Federal royalties. Each State then decided whether to participate in one or both relief options. For calendar year 2016, we provide in this notice the affected States' decisions to allow one or both types of relief.
Effective January 1, 2016.
Maroya Faied, Economic and Market Analysis office, at (303) 231-3744; or email at
The regulations, codified at 30 CFR part 1204, subpart C, implement certain provisions of section 7 of the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 (RSFA) (30 U.S.C. 1726), which allows States to relieve the lessees of marginal properties from certain reporting, accounting, and auditing requirements. States make an annual determination of whether or not to allow relief. Two options for relief are provided: (1) Notification-based relief for annual reporting; and (2) other requested relief, as industry proposed and ONRR and the affected State approved. The regulations require ONRR to publish by December 1 of each year a list of the States and their decisions regarding marginal property relief.
To qualify for the first relief option (notification-based relief) for calendar year 2016, properties must produce less than 1,000 barrels-of-oil-equivalent (BOE) per year for the base period (July 1, 2014, through June 30, 2015). Annual reporting relief will begin January 1, 2016, with the annual report and payment due February 28, 2017, or March 31, 2017, if you have an estimated payment on file. To qualify for the second relief option (other requested relief), the combined equivalent production of the marginal properties during the base period must equal an average daily well production of less than 15 BOE per well, per day calculated under 30 CFR 1204.4(c).
The following table shows the States that have qualifying marginal properties and the States' decisions to allow one or both forms of relief.
Federal oil and gas properties located in all other States where ONRR does not share a portion of Federal royalties with the State are eligible for relief if they qualify as marginal under the regulations (See section 117(c) of RSFA; 30 U.S.C. 1726(c)). For information on how to obtain relief, please refer to 30 CFR 1204.205 or to the published rule, which you may view at
Unless the information that ONRR received is proprietary data, all correspondence, records, or information that we receive in response to this notice may be subject to disclosure under the Freedom of Information Act (FOIA) (5 U.S.C. 552
U.S. International Trade Commission.
Notice.
Notice is hereby given that the U.S. International Trade Commission has determined to review in part the presiding administrative law judge's (“ALJ”) final initial determination (“final ID”) issued on October 27, 2015 finding a violation of section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337 (“section 337”) in the above-captioned investigation.
Megan M. Valentine, Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone (202) 708-2301. Copies of non-confidential documents filed in connection with this investigation are or will be available for inspection during official business hours (8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone (202) 205-2000. General information concerning the Commission may also be obtained by accessing its Internet server at
The Commission instituted this investigation on October 27, 2014, based on a Complaint filed by Nobel Biocare Services AG of Switzerland and Nobel Biocare USA, LLC of Yorba Linda, California (collectively, “Nobel”), as supplemented. 79 FR 63940-41 (Oct. 27, 2014). The Complaint alleges violations of section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337 (“section 337”), in the sale for importation, importation, and sale within the United States after importation of certain dental implants by reason of infringement of certain claims of U.S. Patent Nos. 8,714,977 (“the '977 patent”) and 8,764,443 (“the '443 patent”). The Complaint further alleges the existence of a domestic industry. The Commission's Notice of Investigation named as respondents Neodent USA, Inc., of Andover, Massachusetts and JJGC Indústria e Comércio de Materiais Dentários S/A of Curitiba, Brazil (collectively, “Respondents”). The Commission previously terminated the investigation in part as to certain claims of the '443 patent. Notice (Apr. 29, 2015); Order No. 22 (Apr. 8, 2015). The Commission also amended the Notice of Investigation to reflect the corporate name change of Neodent USA, Inc. to lnstradent USA, Inc. Notice (May 6, 2015); Order No. 24 (Apr. 9, 2015). The use of the term “Respondents” herein refers to the current named respondents.
On October 27, 2015, the ALJ issued his final ID, finding a violation of section 337 with respect to asserted claims 15, 18, 19, 30, and 32 of the '443 patent, and finding no violation with respect to asserted claim 17 of the '443 patent and all of the asserted claims of the '977 patent. In particular, the final ID finds that the accused products infringe claims 1-5 and 19 of the '977 patent and claims 15, 18, 19, 30, and 32 of the '443 patent, but do not infringe claim 17 of the '443 patent. The final ID also found that Respondents have shown that the asserted claims of the '977 patent are invalid for anticipation under 35 U.S.C. 102, but have not shown that the asserted claims of the '443 are invalid. In addition, the final ID found that Respondents failed to show that the asserted claims of the '977 and '443 patents are unenforceable due to inequitable conduct. The final ID further found that Nobel has satisfied the domestic industry requirement with respect to both the '977 and '443 patents.
On November 10, 2015, the ALJ issued his recommended determination (“RD”) on remedy and bonding. The RD recommended that the appropriate remedy is a limited exclusion order barring entry of Respondents' infringing dental implants. The RD did not recommend issuance of a cease and desist order against any respondent. The RD recommended the imposition of a bond of $120 per imported unit during the period of Presidential review.
On November 9, 2015, Nobel filed a petition for review of the final ID's finding of no violation with respect to claims 1-5 of the '977 patent. In particular, Nobel requested review of the final ID's finding that the March 2003 Product Catalog of Alpha Bio Tec, Ltd. (“the 2003 Alpha Bio Tec Catalog”) constitutes prior art under 35 U.S.C. 102(b), arguing that the catalog was not sufficiently publicly accessible prior to the critical date. Nobel also requested, if the Commission determines not to review the ID's prior art finding, that the Commission review the final ID's construction of the limitation “the coronal region having a frustoconical shape” recited in claim 1 of the '977 patent and, accordingly, review the final ID's finding that the accused products do not infringe claims 1-5 of the '977 patent under Nobel's proposed construction of that limitation. Nobel further argued that, should the Commission agree partially with Nobel concerning the proper construction of the limitation “the coronal region having a frustoconical shape,” the 2003 Alpha-Bio Tec Catalog does not anticipate the asserted claims of the '977 patent.
No party petitioned for review of the final ID's finding that there is a violation of section 337 with respect to the '443 patent.
On November 17, 2015, Respondents and the Commission investigative attorney (“IA”) each filed responses opposing Nobel's petition for review.
On December 10, 2015, Respondents submited a post-RD statement on the public interest pursuant to Commission
Having examined the record of this investigation, including the final ID, the petitions for review, and the responses thereto, the Commission has determined to review the final ID in part.
Specifically, the Commission has determined to review the final ID's construction of the limitation “coronal region having a frustoconical shape” recited in claim 1 of the '977 patent with regard to whether or not the term “frustoconical shape” is an adjective that modifies the claimed “coronal region” or whether the term is an independent structure that may comprise only a portion of the claimed “coronal region.” In accordance with its claim construction review, the Commission has further determined to review the final ID's infringement findings with respect to claims 1-5 of the '977 patent, as well as the final ID's finding that the technical prong of the domestic industry requirement is satisfied with respect to claims 1-5 of the '977 patent.
The Commission has also determined to review the final ID's finding that the 2003 Alpha Bio Tec Catalog is a printed publication under 35 U.S.C. 102. The Commission has further determined to review the final ID's finding that the 2003 Alpha Bio Tec Catalog anticipates claims 1-5 of the '977 patent.
The Commission has determined not to review the remaining issues decided in the final ID.
The parties are requested to brief their positions on the issues under review with reference to the applicable law and the evidentiary record. In connection with its review, the Commission is particularly interested in responses to the following questions:
1. With respect to the proper construction of the limitation “coronal region having a frustoconical shape” recited in claim 1 of the '977 patent, please address the meaning of the term “frustoconical shape” in the context of claim 1, and, in particular, whether the term is an adjective that merely modifies the claimed “coronal region” or whether the term may refer to an independent structure comprised within the claimed “coronal region.” In addition, please address the significance of the clause “wherein a diameter of an apical end of the coronal region is larger than a diameter of a coronal end of the coronal region” recited in claim 1 to the appropriate construction of the limitation “coronal region having a frustoconical shape.” Please discuss all governing precedent with respect to this issue.
2. With respect to whether the 2003 Alpha Bio Tec Catalog is prior art to the '977 patent, please address the significance of the evidence presented in exhibit JX-0278C, and the significance of the inclusion of the catalog in an information disclosure statement to the U.S. Patent and Trademark Office (
3. Please address whether the 2003 Alpha Bio Tec Catalog anticipates the asserted claims of the '977 patent under a construction of the limitation “coronal region having a frustoconical shape” recited in claim 1 that requires the entire coronal region to be frustoconical but does not require any additional functional limitation.
4. With respect to whether the 2003 Alpha Bio Tec Catalog anticipates claim 2 of the '977 patent, please address the significance of the testimony of Nobel's expert, Mr. Hurson, that one of ordinary skill in the art would understand that any portion of an implant intended to mate with another component,
5. Please address whether, under a construction of the limitation “coronal region having a frustoconical shape” recited in claim 1 of the '977 patent that requires the entire coronal region to be frustoconical but does not require any additional functional limitation, the technical prong of the domestic industry requirement is satisfied with respect to claim 1 of the '977 patent.
The parties have been invited to brief only these discrete issues, as enumerated above, with reference to the applicable law and evidentiary record. The parties are not to brief other issues on review, which are adequately presented in the parties' existing filings.
In connection with the final disposition of this investigation, the Commission may (1) issue an order that could result in the exclusion of the subject articles from entry into the United States, and/or (2) issue one or more cease and desist orders that could result in the respondent(s) being required to cease and desist from engaging in unfair acts in the importation and sale of such articles. Accordingly, the Commission is interested in receiving written submissions that address the form of remedy, if any, that should be ordered. If a party seeks exclusion of an article from entry into the United States for purposes other than entry for consumption, the party should so indicate and provide information establishing that activities involving other types of entry either are adversely affecting it or likely to do so. For background, see
If the Commission contemplates some form of remedy, it must consider the effects of that remedy upon the public interest. The factors the Commission will consider include the effect that an exclusion order and/or cease and desist orders would have on (1) the public health and welfare, (2) competitive conditions in the U.S. economy, (3) U.S. production of articles that are like or directly competitive with those that are subject to investigation, and (4) U.S. consumers. The Commission is therefore interested in receiving written submissions that address the aforementioned public interest factors in the context of this investigation.
If the Commission orders some form of remedy, the U.S. Trade Representative, as delegated by the President, has 60 days to approve or disapprove the Commission's action.
Persons filing written submissions must file the original document electronically on or before the deadlines stated above and submit 8 true paper copies to the Office of the Secretary by noon the next day pursuant to § 210.4(f) of the Commission's Rules of Practice and Procedure (19 CFR 210.4(f)). Submissions should refer to the investigation number (“Inv. No. 337-TA-934”) in a prominent place on the cover page and/or the first page. (
Any person desiring to submit a document to the Commission in confidence must request confidential treatment. All such requests should be directed to the Secretary to the Commission and must include a full statement of the reasons why the Commission should grant such treatment.
On October 21, 2015, Nobel filed a motion to amend the Administrative Protective Order (“APO”) issued in this investigation to add specific provisions permitting the use of discovery from this investigation in two co-pending proceedings in the U.S. Patent and Trademark Office captioned as
The Commission has determined to deny both Nobel's motion to amend the APO and motion for leave to file a reply in support of its motion.
The authority for the Commission's determination is contained in section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and in Part 210 of the Commission's Rules of Practice and Procedure (19 CFR part 210).
By order of the Commission.
U.S. International Trade Commission.
Notice.
Notice is hereby given that a complaint was filed with the U.S. International Trade Commission on December 15, 2015, under section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, on behalf of Energetiq Technology, Inc. of Woburn, Massachusetts. A supplement to the complaint was filed on December 23, 2015. The complaint, as supplemented, alleges violations of section 337 based upon the importation into the United States, the sale for importation, and the sale within the United States after importation of certain laser-driven light sources, subsystems containing laser-driven light sources, and products containing same by reason of infringement of certain claims of U.S. Patent No. 8,969,841 (“the '841 patent”); U.S. Patent No. 9,048,000 (“the '000 patent”); and U.S. Patent No. 9,185,786 (“the '786 patent”). The complaint further alleges that an industry in the United States exists as required by subsection (a)(2) of section 337.
The complainant requests that the Commission institute an investigation and, after the investigation, issue a limited exclusion order and cease and desist orders.
The complaint, except for any confidential information contained therein, is available for inspection during official business hours (8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW., Room 112, Washington, DC 20436, telephone (202) 205-2000. Hearing impaired individuals are advised that information on this matter can be obtained by contacting the Commission's TDD terminal on (202) 205-1810. Persons with mobility impairments who will need special assistance in gaining access to the Commission should contact the Office of the Secretary at (202) 205-2000. General information concerning the Commission may also be obtained by accessing its Internet server at
The Office of Docket Services, U.S. International Trade Commission, telephone (202) 205-1802.
The authority for institution of this investigation is contained in section 337 of the Tariff Act of 1930, as amended, and in section 210.10 of the Commission's Rules of Practice and Procedure, 19 CFR 210.10 (2015).
(1) Pursuant to subsection (b) of section 337 of the Tariff Act of 1930, as amended, an investigation be instituted to determine whether there is a violation of subsection (a)(1)(B) of section 337 in the importation into the United States, the sale for importation, or the sale within the United States after importation of certain laser-driven light sources, subsystems containing laser-driven light sources, and products containing same by reason of infringement of one or more of claims 1-3, 6, 7, 10, 11, 13, 26, and 29 of the '841 patent; claims 1-6 and 15-18 of the '000 patent; and claims 1, 6, 8, 13, 15, 20, 21, and 25 of the '786 patent, and whether an industry in the United States exists as required by subsection (a)(2) of section 337;
(2) For the purpose of the investigation so instituted, the following are hereby named as parties upon which this notice of investigation shall be served:
(a) The complainant is: Energetiq Technology, Inc., 7 Constitution Way, Woburn, MA 01801.
(b) The respondents are the following entities alleged to be in violation of section 337, and are the parties upon which the complaint is to be served:
ASML Netherlands B.V., De Run 6501, 5504 DR, Veldhoven, The Netherlands.
ASML US, Inc., 2650 West Geronimo Place, Chandler, AZ 85224.
Qioptiq Photonics GmbH & Co. KG, Königsallee 23, 37801 Göttingen, Germany.
(3) For the investigation so instituted, the Chief Administrative Law Judge, U.S. International Trade Commission, shall designate the presiding Administrative Law Judge.
The Office of Unfair Import Investigations will not participate as a party in this investigation.
Responses to the complaint and the notice of investigation must be submitted by the named respondents in accordance with section 210.13 of the Commission's Rules of Practice and Procedure, 19 CFR 210.13. Pursuant to 19 CFR 201.16(e) and 210.13(a), such responses will be considered by the Commission if received not later than 20 days after the date of service by the Commission of the complaint and the notice of investigation. Extensions of time for submitting responses to the complaint and the notice of investigation will not be granted unless good cause therefor is shown.
Failure of a respondent to file a timely response to each allegation in the complaint and in this notice may be deemed to constitute a waiver of the right to appear and contest the allegations of the complaint and this notice, and to authorize the administrative law judge and the Commission, without further notice to the respondent, to find the facts to be as alleged in the complaint and this notice and to enter an initial determination and a final determination containing such findings, and may result in the issuance of an exclusion order or a cease and desist order or both directed against the respondent.
By order of the Commission.
U.S. International Trade Commission.
Notice.
Notice is hereby given that a complaint was filed with the U.S. International Trade Commission on December 15, 2015, under section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, on behalf of ParkerVision, Inc. of Jacksonville, Florida. Supplements to the complaint were filed on December 23, 2015 and January 4, 2016. The complaint, as supplemented, alleges violations of section 337 based upon the importation into the United States, the sale for importation, and the sale within the United States after importation of certain RF capable integrated circuits and products containing the same by reason of infringement of certain claims of U.S. Patent No. 6,879,817 (“the '817 patent”); U.S. Patent No. 7,929,638 (“the '638 patent”); U.S. Patent No. 8,571,135 (“the '135 patent”); and U.S. Patent No. 9,118,528 (“the '528 patent”). The complaint further alleges that an industry in the United States exists or is in the process of being established as required by subsection (a)(2) of section 337.
The complainant requests that the Commission institute an investigation and, after the investigation, issue a limited exclusion order and cease and desist orders.
The complaint, except for any confidential information contained therein, is available for inspection during official business hours (8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW., Room 112, Washington, DC 20436, telephone (202) 205-2000. Hearing impaired individuals are advised that information on this matter can be obtained by contacting the Commission's TDD terminal on (202) 205-1810. Persons with mobility impairments who will need special assistance in gaining access to the Commission should contact the Office of the Secretary at (202) 205-2000. General information concerning the Commission may also be obtained by accessing its Internet server at
The Office of Unfair Import Investigations, U.S. International Trade Commission, telephone (202) 205-2560.
The authority for institution of this investigation is contained in section 337 of the Tariff Act of 1930, as amended, and in section 210.10 of the Commission's Rules of Practice and Procedure, 19 CFR 210.10 (2015).
(1) Pursuant to subsection (b) of section 337 of the Tariff Act of 1930, as amended, an investigation be instituted to determine whether there is a violation of subsection (a)(1)(B) of section 337 in the importation into the United States, the sale for importation, or the sale within the United States after importation of certain RF capable integrated circuits and products containing the same by reason of infringement of one or more of claims 1, 5-7, 11, and 14 of the '817 patent; claims 1 and 4-8 of the '638 patent; claims 22 and 24 of the '135 patent; and claims 1, 5, 6, 8-10, 17-19, 23, 24, 26-28, and 33-36 of the '528 patent, and whether an industry in the United States exists or is in the process of being established as required by subsection (a)(2) of section 337;
(2) For the purpose of the investigation so instituted, the following are hereby named as parties upon which this notice of investigation shall be served:
(a) The complainant is: ParkerVision, Inc., 7915 Baymeadows Way, Suite 400, Jacksonville, FL 32256.
(b) The respondents are the following entities alleged to be in violation of section 337, and are the parties upon which the complaint is to be served:
(c) The Office of Unfair Import Investigations, U.S. International Trade Commission, 500 E Street SW., Suite 401, Washington, DC 20436; and
(3) Pursuant to Commission Rule 210.50(b)(1), 19 CFR 210.50(b)(1), the presiding administrative law judge shall take evidence or other information and hear arguments from the parties and other interested persons with respect to the public interest in this investigation, as appropriate, and provide the Commission with findings of fact and a recommended determination on this issue, which shall be limited to the statutory public interest factors set forth in 19 U.S.C. 1337(d)(1), (f)(1), (g)(1);
(4) For the investigation so instituted, the Chief Administrative Law Judge, U.S. International Trade Commission, shall designate the presiding Administrative Law Judge.
Responses to the complaint and the notice of investigation must be submitted by the named respondents in accordance with section 210.13 of the Commission's Rules of Practice and Procedure, 19 CFR 210.13. Pursuant to 19 CFR 201.16(e) and 210.13(a), such responses will be considered by the Commission if received not later than 20 days after the date of service by the Commission of the complaint and the notice of investigation. Extensions of time for submitting responses to the complaint and the notice of investigation will not be granted unless good cause therefor is shown.
Failure of a respondent to file a timely response to each allegation in the complaint and in this notice may be deemed to constitute a waiver of the right to appear and contest the allegations of the complaint and this notice, and to authorize the administrative law judge and the Commission, without further notice to the respondent, to find the facts to be as alleged in the complaint and this notice and to enter an initial determination and a final determination containing such findings, and may result in the issuance of an exclusion order or a cease and desist order or both directed against the respondent.
By order of the Commission.
AGENCY HOLDING THE MEETING:
United States International Trade Commission.
February 9, 2016 at 11:00 a.m.
Room 101, 500 E Street SW., Washington, DC 20436, Telephone: (202) 205-2000.
Open to the public.
1. Agendas for future meetings: none.
2. Minutes.
3. Ratification List.
4. Vote in Inv. Nos. 701-TA-528-529 and 731-TA-1264-1268 (Final) (Certain Uncoated Paper from Australia, Brazil, China, Indonesia, and Portugal). The Commission is currently scheduled to complete and file its determinations and views of the Commission on February 22, 2016.
5. Outstanding action jackets: none.
In accordance with Commission policy, subject matter listed above, not disposed of at the scheduled meeting, may be carried over to the agenda of the following meeting.
By order of the Commission.
United States International Trade Commission.
January 29, 2016 at 11:00 a.m.
Room 101, 500 E Street SW., Washington, DC 20436, Telephone: (202) 205-2000.
Open to the public.
1. Agendas for future meetings: none.
2. Minutes.
3. Ratification List.
4. Vote in Inv. No. 731-TA-1306 (Preliminary) (Large Residential Washers from China). The Commission is currently scheduled to complete and file its determination on February 1, 2016; views of the Commission are currently scheduled to be completed and filed on February 8, 2016.
5. Outstanding action jackets: none.
In accordance with Commission policy, subject matter listed above, not disposed of at the scheduled meeting, may be carried over to the agenda of the following meeting.
By order of the Commission.
Notice of application.
Registered bulk manufacturers of the affected basic classes, and applicants therefore, may file written comments on or objections to the issuance of the proposed registration in accordance with 21 CFR 1301.33(a) on or before March 21, 2016.
Written comments should be sent to: Drug Enforcement Administration, Attention: DEA
The Attorney General has delegated her authority under the Controlled Substances Act to the Administrator of the Drug Enforcement Administration (DEA), 28 CFR 0.100(b). Authority to exercise all necessary functions with respect to the promulgation and implementation of 21 CFR part 1301, incident to the registration of manufacturers, distributors, dispensers, importers, and exporters of controlled substances (other than final orders in connection with suspension, denial, or revocation of registration) has been redelegated to the Deputy Assistant Administrator of the DEA Office of Diversion Control (“Deputy Assistant Administrator”) pursuant to section 7 of 28 CFR part 0, appendix to subpart R.
In accordance with 21 CFR 1301.33(a), this is notice that on September 3, 2015, Johnson Matthey, Inc., Pharmaceuticals Materials, 900 River Road, Conshohocken, Pennsylvania 19428 applied to be
The company plans to manufacture the listed controlled substances in bulk for distribution and sale to its customers. The thebaine (9333) will be used to manufacture other controlled substances for sale in bulk to its customers.
In accordance with Departmental Policy, 28 CFR 50.7, notice is hereby given that a proposed Consent Decree in
This proposed Consent Decree concerns a complaint filed by the United States against Satcher Properties, LLC, pursuant to 33 U.S.C. 1311(a) and 1344, to obtain injunctive relief from and impose civil penalties against the Defendant for violating the Clean Water Act by discharging pollutants without a permit into waters of the United States. The proposed Consent Decree resolves these allegations by requiring the Defendant to restore the impacted areas or to submit an after-the-fact permit application and to perform mitigation and to pay a civil penalty. The proposed Consent Decree also provides for the defendant to perform an Environmental Compliance Promotion Project.
The Department of Justice will accept written comments relating to this proposed Consent Decree for thirty (30) days from the date of publication of this Notice. Please address comments to Beth Drake, First Assistant United States Attorney, United States Attorney's Office, 1441 Main Street, Suite 500, Columbia, South Carolina and refer to
The proposed Consent Decree may be examined at the Clerk's Office, United States District Court for the District of South Carolina (Columbia Division), Matthew J. Perry, Jr. Courthouse, 901 Richland Street, Columbia, South Carolina 29201. In addition, the proposed Consent Decree may be examined electronically at
10:00 a.m., January 26, 2016.
U.S. Parole Commission, 90 K Street NE., 3rd Floor, Washington, DC.
Open..
Approval of October 6, 2015 minutes.
Jacqueline Graham, Staff Assistant to the Chairman, U.S. Parole Commission, 90 K Street NE., 3rd Floor, Washington, DC 20530, (202) 346-7010.
12:00 p.m., Tuesday, January 26, 2016.
U.S. Parole Commission, 90 K Street NE., 3rd Floor, Washington, DC.
Closed.
Determination on six original jurisdiction cases.
Jacqueline Graham, Staff Assistant to the Chairman, U.S. Parole Commission, 90 K Street NE., 3rd Floor, Washington, DC 20530, (202) 346-7010.
Employment and Training Administration, Labor.
Funding Opportunity Announcement (FOA).
The Employment and Training Administration (ETA), U.S. Department of Labor, announces the availability of $5,000,000 in grant funds for a second round of Linking to Employment Activities Pre-release through Specialized American Job Centers (AJCs), or “LEAP-2,” grants. ETA plans to award approximately 10 grants of up to $500,000 each to Local Workforce Development Boards. This grant program is designed to provide incarcerated individuals with workforce services prior to release and link them to a continuum of services offered through their community-based AJCs post-release. These grants are job-driven and build connections to local employers that will enable transitioning offenders to secure employment. The jail-based specialized AJCs will enable transitioning offenders to prepare for employment prior to release and continue with Individual Employment Plans (as described in Section IV of the FOA) in the community once released. The aim of these centers is to improve the workforce outcomes for transitioning offenders.
The complete FOA and any subsequent FOA amendments in connection with this solicitation are described in further detail on ETA's Web site at
The closing date for receipt of applications under this announcement is February 26, 2016. Applications must be received no later than 4:00:00 p.m. Eastern Time.
Pia Miller, Grants Management Specialist, Office of Grants Management, at (202) 693-3153. Applicants should email all technical questions to
The Grant Officer for this FOA is Eric Luetkenhaus.
Notice.
The Department of Labor, as part of its continuing effort to reduce paperwork and respondent burden, conducts a pre-clearance consultation program to provide the general public and Federal agencies with an opportunity to comment on proposed and/or continuing collections of information in accordance with the Paperwork Reduction Act of 1995 (PRA95). This program helps to ensure that requested data can be provided in the desired format, reporting burden (time and financial resources) is minimized, collection instruments are clearly understood, and the impact of collection requirements on respondents can be properly assessed. Currently, the Office of Workers' Compensation Programs is soliciting comments concerning the proposal to extend OMB approval of the information collection: Notice of Issuance of Insurance Policy (CM-921). A copy of the proposed information collection request can be obtained by contacting the office listed below in the addresses section of this Notice.
Written comments must be submitted to the office listed in the addresses section below on or before March 21, 2016.
Ms. Yoon Ferguson, U.S. Department of Labor, 200 Constitution Ave. NW., Room S-3323, Washington, DC 20210, telephone/FAX (202) 354-9647, Email
I.
II.
* 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;
* enhance the quality, utility and clarity of the information to be collected; 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,
III.
Type of Review: Extension.
Agency: Office of Workers' Compensation Programs.
Title: Notice of Issuance of Insurance Policy.
OMB Number: 1240-0048.
Agency Number: CM-921.
Affected Public: Business or other for profit; Federal Government and State, Local or Tribal Government.
Total Respondents: 51.
Total Annual Responses: 3,500.
Estimated Time per Response: 10 minutes.
Frequency: Annually.
Estimated Total Burden Hours: 8
Total Burden Cost (capital/startup): $0.
Total Burden Cost (operating/maintenance): $29.
Comments submitted in response to this notice will be summarized and/or included in the request for Office of Management and Budget approval of the information collection request; they will also become a matter of public record.
Notice
The Department of Labor, as part of its continuing effort to reduce paperwork and respondent burden, conducts a pre-clearance consultation program to provide the general public and Federal agencies with an opportunity to comment on proposed and/or continuing collections of information in accordance with the Paperwork Reduction Act of 1995 (PRA95) [44 U.S.C. 3506(c)(2)(A)]. This program helps to ensure that requested data can be provided in the desired format, reporting burden (time and financial resources) is minimized, collection instruments are clearly understood, and the impact of collection requirements on respondents can be properly assessed. Currently, the Office of Workers' Compensation Programs is soliciting comments concerning the proposal to extend OMB approval of the information collection: Certification by School Official (CM-981). A copy of the proposed information collection request
Written comments must be submitted to the office listed in the
Ms Yoon Ferguson, U.S. Department of Labor, 200 Constitution Ave. NW., Room S-3323, Washington, DC 20210, telephone/fax (202) 354-9647, Email
In order to qualify as a dependent that is eligible for black lung benefits, a child aged 18 to 23 must be a full-time student as described in the Black Lung Benefits Act, 30 U.S.C. 901 et seq. and attending regulations 20 CFR 725.209. The CM-981 is partially completed by the appropriate district office so that the school official or registrar's office will know for which student and time period the information is being requested and is also used to verify the full-time student status. This information collection is currently approved for use through July 31, 2016.
The Department of Labor is particularly interested in comments which:
• 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;
• enhance the quality, utility and clarity of the information to be collected; 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,
The Department of Labor seeks the approval for the extension of this currently-approved information collection in order to determine the continued eligibility of students.
Comments submitted in response to this notice will be summarized and/or included in the request for Office of Management and Budget approval of the information collection request; they will also become a matter of public record.
Legal Services Corporation.
Notice.
The Legal Services Corporation (LSC) issues this Notice describing the conditions under which Letters of Intent to Apply for 2016 funding will be received for the Pro Bono Innovation Fund. On December 18, 2015, Congress provided $4 million for the Pro Bono Innovation Fund through the Consolidated Appropriations Act for 2016.
Letters of Intent must be submitted by 5:00 p.m. EST on March 28, 2016.
Letters of Intent must be submitted electronically at
Mytrang Nguyen, Program Counsel, Office of Program Performance, Legal Services Corporation, 3333 K Street NW., Washington, DC, 20007; (202) 295-1564 or
The Pro Bono Innovation Fund was created after the LSC Board of Directors formed a Pro Bono Task Force in 2011 to identify ways to better engage pro bono lawyers and other volunteers to serve low-income people. One recommendation of the Pro Bono Task Force was to create a competitive Innovation Fund grant program. On January 17, 2014, the President signed Public Law 113-76, the Consolidated Appropriations Act of 2014, which included $2.5 million in LSC's appropriation for the Pro Bono Innovation Fund. In its first year of grant making, LSC funded eleven projects seeking to address the critical legal needs of underserved populations with more pro bono volunteers, significant collaboration, and technology enhancements. The Consolidated and Further Continuing Appropriations Act, 2015, Public Law 113-235 (December 16, 2014) increased LSC's appropriation for the Pro Bono Innovation Fund to $4 million and LSC funded an additional fifteen projects in FY15. On December 18, 2015, the Consolidated Appropriations Act, 2016, Public Law 114-113 provided $4 million for the Pro Bono Innovation Fund.
In 2016, the Pro Bono Innovation Fund will continue to advance LSC's goal of increasing the quantity and quality of legal services provided to eligible people. Applicants to the Pro Bono Innovation Fund should identify the most pressing unmet client needs and how pro bono volunteers will be used to address those needs. Projects funded by the Pro Bono Innovation Fund will serve as demonstration efforts to strengthen pro bono service delivery and improve low income persons' access to high quality legal assistance through coordinated legal delivery systems.
The purpose of the Pro Bono Innovation Fund is to develop and enhance pro bono programs that serve larger numbers of low-income clients and that improve the quality and effectiveness of the services clients receive by using pro bono volunteers. Projects should be innovative (new, replicable models and approaches to pro bono delivery) or replicate prior successful models.
The Pro Bono Innovation Fund is designed to address issues identified in the 2012 report of LSC's Pro Bono Task Force. The report provides a summary
LSC welcomes applications in a wide variety of areas; there are no specific areas of interest. Consistent with the key goals of the Pro Bono Innovation Fund, however, applicants are encouraged to consider developing projects that propose to replicate effective models of pro bono delivery or propose novel (and replicable) solutions to persistent challenges in their current pro bono system. Such challenges and solutions may include, but are not limited to:
• Advancing the organization's strategic imperatives by integrating volunteers into significant delivery or advocacy efforts (
• Addressing duplicative or fractured pro bono efforts by forming partnerships with pro bono and community stakeholders or adding new partners to existing collaborations (
• Developing strategies to bring pro bono services to the locations and communities where clients reside or are accessing services, particularly for hard to reach populations (
• Developing quality controls and setting goals for timely, effective pro bono work. This can include technology solutions and/or innovative ways to provide more mentoring, training, and support for volunteers (
LSC has received an appropriation of $4 million, of which $3.8 million is available for grants in fiscal year 2016 to support Pro Bono Innovation Fund projects. In 2015, fifteen Pro Bono Innovation Fund Projects received funding with a median funding amount of $257,000. LSC recommends a minimum $50,000 request, and there is no maximum amount for Pro Bono Innovation Fund requests that are within the total funding available. LSC encourages proposals for projects that include other in-kind and cash support, although LSC has no matching requirement.
Pro Bono Innovation Fund grant awards will cover either an 18- or 24- month project period. Applicants' proposals should cover the full period for which a grant award is requested. The project period is expected to commence in October 2016.
LSC is committed to reviewing all Pro Bono Innovation Fund grant applications in a quick and thorough manner. Applicants must first submit a Letter of Intent to Apply for Funding (LOI). LSC staff will review the LOIs and notify applicants by April 25, 2016 if their LOI is selected. Applicants whose LOIs are selected will be asked to submit a detailed, full application in LSC Grants. Once LSC has received a full application from a selected applicant, the application undergoes a rigorous review process by LSC staff and external subject matter experts. LSC's President makes the final decision on funding for the Pro Bono Innovation Fund.
The LOI should succinctly summarize in approximately three pages a proposed project's context, goals, objectives, activities, estimated budget, timeline, and evaluation plan. Applicants must submit the LOI electronically using the LSC Grants online system found at
The LOI form in LSC Grants will ask each applicant the following information about the proposed project:
1. Project Description. In this section, please provide a brief description of the proposed project that includes:
• The specific client need and challenge or opportunity in the pro bono delivery system that the project will address.
• The goals and objectives of the project, the activities that make up the project, and how those activities will link to and achieve the stated goals and objectives.
• Strong indication of volunteer demand or interest in supporting the project.
• The expected impact of the project. This should include a brief explanation of the changes and outcomes that will be created as a result of the project.
2. Project Staff, Organizational Capacity, and Project Partners. Please briefly identify and describe the project team and project partners including:
• The qualifications and relevant experience of the proposed project team, any proposed partner organizations, and your organization.
• The role of your organization's executive management in the design and implementation of the project.
3. Budget and Timeline. Please provide the following information about the estimated project costs and the proposed implementation timeframe:
• Whether the proposed project will be implemented in an 18- or 24- month timeframe.
• Estimated total project cost. This includes the estimate for the Pro Bono Innovation Fund requested amount and other in-kind or cash contributions to support the project.
• List, if any, of anticipated contributions, both in-kind and monetary, of all partners involved in the project.
• List of key partners who will receive Pro Bono Innovation Fund funding, including their roles, and the estimated dollar amount or percent of budget assigned to each partner.
Please provide an estimated budget using the following form.
Applicants are encouraged to provide as complete an estimate as possible despite the preliminary nature of the LOI. LSC recognizes that the budget information provided is an initial estimate only and subject to change if applicants are invited to submit a full application.
Applicants are encouraged to propose more than project. To do so, applicants must submit a separate LOI for each project.
Applicants must complete and submit LOIs through
LSC will provide a confirmation email for each completed electronic LOI submission. Please keep this email as verification that your LOI was received. If you do not receive an email confirmation for your LOI submission, please inquire about the status of your LOI at
LSC will not accept applications submitted after the deadline unless LSC has approved a request to waive the deadline. See Section IV (D) Waiver Authority below.
Applicants must be current LSC grantees. LSC will review all LOIs to determine whether they are from eligible entities, submitted as complete in LSC Grants, and are responsive to the questions described above. Failure to meet these submission requirements may result in rejection of the LOI before substantive review.
Each LOI will then be carefully reviewed to identify those projects that address the key goals of the Pro Bono Innovation Fund. The LOIs will also be reviewed to determine the extent to which the proposed project:
• Provides a clear description of client need and the challenge in the pro bono delivery system that the project will address.
• Demonstrates is has the support of, or is viable with, the pro bono volunteers targeted for recruitment and participation in the project.
• Articulates thoughtful, appropriate, and concrete goals and activities that address the articulated need and challenges.
• Is either innovative or an appropriate replication of prior successful models.
• Has potential for client impact, strong outcomes, further replication, or scaling.
• Leverages partnerships and involves all of the appropriate parties needed to make it successful and sustainable.
• Has organizational support and capacity, and is cost-effective.
Projects that address the above criteria will be invited to submit full applications.
LSC will notify successful LOI applicants by April 25, 2016. Successful applicants will have until 5:00 p.m. ET, Monday, July 18, 2016 to complete full applications in the LSC Grants online application system.
Pro Bono Innovation Fund grants are subject to all the requirements of the Legal Services Corporation Act of 1974 as amended (LSC Act), any applicable appropriations acts and any other applicable law, rules, regulations, policies, guidelines, instructions, and other directives of including, but not limited to: The LSC Audit Guide for Recipients and Auditors, the Accounting Guide for LSC Recipients, the CSR Handbook, the 1981 LSC Property Manual (as amended) and the Property Acquisition and Management Manual, with any amendments to the foregoing adopted before or during the period of the grant. Before submitting a Letter of Intent to Apply, applicants should be familiar with LSC's subgrant and transfer requirements at 45 CFR parts 1610 and 1627, particularly as they pertain to payments of LSC funds to other entities for programmatic activities. Termination Policies and Procedures will be same as those described in the 2015 Pro Bono Innovation Fund Grant Assurances.
To be eligible for Pro Bono Innovation Fund grants, applicants must be current grantees of LSC grants for Basic Field-General, Basic Field-Migrant, or Basic Field-Native American funding. Organizations and entities that are not current LSC grantees are not eligible to apply directly to LSC for Pro Bono Innovation Fund grants. Collaborations between LSC grantees and partner organizations are strongly encouraged to enhance projects, strengthen pro bono
LSC, upon its own initiative or when requested, may waive provisions in this Notice at its sole discretion under extraordinary circumstances and when it is in the best interest of the eligible client community. Waivers may be granted only for requirements that are discretionary and not mandated by statute or regulation. Any request for a waiver must set forth in writing the extraordinary circumstances for the request. LSC will not consider a request to waive the deadline for an LOI unless it is received by LSC prior to the deadline.
For more information about current Pro Bono Innovation Fund projects, please contact Mytrang Nguyen, Program Counsel, (202) 295-1564 or
If you have a general question or questions about the Pro Bono Innovation Fund application process, please email
For technical questions or issues with the LSC Grants online application system, please send an email to
National Capital Planning Commission.
Notice of intent to prepare an Environmental Impact Statement.
Pursuant to the National Environmental Policy Act (NEPA) of 1970, as amended and implemented by the Council on Environmental, and in accordance with the Environmental Policies and Procedures adopted by the National Capital Planning Commission (NCPC), the NCPC announces its intent along with the Smithsonian Institution (SI), and in cooperation with the National Park Service (NPS), to prepare an Environmental Impact Statement (EIS). The EIS will provide a full and fair discussion of the potential environmental impacts resulting from implementation of SI's South Mall Campus Master Plan. NCPC will act as lead federal agency for NEPA compliance and SI is the project owner, sponsoring the preparation of the EIS. Although SI is not a “federal agency” within the meaning of NEPA and CEQ Regulations, SI works with federal agencies on NEPA compliance when, as here, an SI project requires federal agency approval.
The South Mall Campus Master Plan (Master Plan) will evaluate opportunities to: Better align Smithsonian facilities on the South Mall Campus with SI's mission; increase public access to the museums and gardens; replace and upgrade aging building systems; upgrade security systems campus wide; rehabilitate and restore historic buildings; provide seismic retrofitting; consolidate and upgrade loading functions; enhance public space; and increase the visitor services provided in the area. The Master Plan will revitalize the South Mall Campus by interconnecting programs and services both above- and below-grade; and, by improving physical access for all through enhanced circulation, way finding, and program visibility. These improvements will provide visitors and staff with facilities, amenities, and educational experiences expected of a world class institution.
The Scoping Period shall run February 22, 2016.
Electronic Comments may be submitted at
Matthew Flis, Senior Urban Designer, National Capital Planning Commission, Urban Design and Plan Review, 401 9th Street NW., Washington, DC 20004, Phone 202-482-7236; or Michelle Spofford, Senior Planning Manager, Smithsonian Institution, Office of Planning Design and Construction, Facilities Master Planning, 600 Maryland Avenue SW., Suite 501, PO Box 37012, MRC 511, Washington, DC 20013-7012, Phone: 202-633-6558.
NCPC and SI previously conducted scoping For an Environmental Assessment (EA) of the Master Plan from December 16, 2014 through January 30, 2015. As part of this process, NCPC and SI held a public scoping meeting on December 16, 2014 and received written comments from local and federal agencies, interested organizations, and the public. Based on the information obtained and additional coordination with local and federal agencies, NCPC and SI have determined that preparation of an EIS is warranted.
Topics for environmental analysis identified through the scoping process include: Historic resources; visual resources; transportation; public utilities; land use; social and economic issues; visitor use; and physical and biological resources, such as air quality, water quality, and climate change.
All private parties, Federal and local agencies, and interested organizations having an interest in the project are invited to comment. All previously submitted comments from the EA scoping period are documented in the administrative record and will be used to inform the Draft EIS; only new issues and concerns need to be submitted at this time. During this scoping period, no public scoping meeting will be held.
All new and relevant environmental information, or additional comments on any issues that may be associated with the proposed project, should be sent to the address or email address below. 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 publically 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.
Information related to the project and public involvement opportunities for the draft EIS will be provided at the project's Web site:
40 CFR 1501.7.
National Endowment for the Arts, National Foundation on the Arts and the Humanities.
Proposed collection; comments request.
The National Endowment for the Arts (NEA), as part of its continuing effort to reduce paperwork and respondent burden, conducts a
Comments should be sent to the Office of Information and Regulatory Affairs, Attn: OMB Desk Officer for the National Endowment for the Arts, Office of Management and Budget, Room 10235, Washington, DC 20503 202/395-7316, within 30 days from the date of this publication in the
The Office of Management and Budget (OMB) is particularly interested in comments which:
• 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;
• Enhance the quality, utility, and clarity of the information to be collected; 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,
Postal Regulatory Commission.
Notice.
On December 29, 2015, the Postal Service filed the FY 2015 Performance Report and FY 2016 Performance Plan with its FY 2014 Annual Compliance Report. This notice informs the public of the filing, invites public comment, and takes other administrative steps.
Submit comments electronically via the Commission's Filing Online system at
David A. Trissell, General Counsel, at 202-789-6820.
Each fiscal year, the Postal Service prepares an annual performance plan and a report on program performance as required under 39 U.S.C. 2803 and 2804. Pursuant to 39 U.S.C. 3652(g), the Postal Service filed its FY 2015 Annual Report in Docket No. ACR2015.
The Commission must evaluate whether the Postal Service met its performance goals in FY 2015.
Prior to Docket No. ACR2013, the Commission analyzed performance reports and performance plans as part of the Annual Compliance Determination (ACD). The Commission later determined that its obligations under 39 U.S.C. 3653(d) are distinguishable from its ACD obligations under 39 U.S.C. 3653(b). In Docket Nos. ACR2013 and ACR2014, the Commission issued separate reports analyzing the Postal Service's performance reports and performance plans.
As it did in Docket Nos. ACR2013 and ACR2014, the Commission will issue its
• Did the Postal Service meet its performance goals in FY 2015?
• Do the FY 2015 Annual Performance Report and the FY 2016 Annual Performance Plan meet applicable statutory requirements, including 39 U.S.C. 2803 and 2804?
• What recommendations should the Commission provide to the Postal Service that relate to protecting or promoting public policy objectives in title 39?
• What recommendations or observations should the Commission make concerning the Postal Service's strategic initiatives?
• What other matters are relevant to the Commission's analysis of the FY 2015 Annual Performance Report and the FY 2016 Annual Performance Plan under 39 U.S.C. 3653(d)?
Comments by interested persons are due no later than February 26, 2016. Reply comments are due no later than March 7, 2016. Pursuant to 39 U.S.C. 505, Lyudmila Y. Bzhilyanskaya is appointed to serve as Public Representative to represent the interests of the general public in this docket with respect to issues related to the Commission's analysis of the FY 2015 Annual Performance Report and the FY 2016 Annual Performance Plan.
1. The Commission invites public comment on the Postal Service's FY 2015 Annual Performance Report and FY 2016 Annual Performance Plan.
2. Pursuant to 39 U.S.C. 505, the Commission appoints Lyudmila Y. Bzhilyanskaya to serve as Public Representative to represent the interests of the general public in this proceeding with respect to issues related to the Commission's analysis of the FY 2015 Annual Performance Report and the FY 2016 Annual Performance Plan.
3. Comments are due no later than February 26, 2016.
4. Reply comments are due no later than March 7, 2016.
5. The Secretary shall arrange for publication of this order in the
By the Commission.
Postal Regulatory Commission.
Notice.
The Commission is noticing a recent Postal Service filing concerning a modification to a Global Reseller Expedited Package Services 4 negotiated service agreement. This notice informs the public of the filing, invites public comment, and takes other administrative steps.
Submit comments electronically via the Commission's Filing Online system at
David A. Trissell, General Counsel, at 202-789-6820.
On January 13, 2016, the Postal Service filed notice that it has agreed to a second Modification to the existing Global Reseller Expedited Package Services 4 negotiated service agreement approved in this docket.
The Postal Service also filed the unredacted Modification under seal and seeks to incorporate by reference the Application for Non-Public Treatment originally filed in this docket for the protection of information that it has filed under seal.
The Modification revises Article 11 (term of the agreement), as well as the articles concerning postage payment, in order to allow postage payment through the Electronic Verification System. Notice at 1.
The Postal Service intends for the Modification to become effective on February 1, 2016.
The Commission invites comments on whether the changes presented in the Postal Service's Notice are consistent with the policies of 39 U.S.C. 3632, 3633, or 3642, 39 CFR 3015.5, and 39 CFR part 3020, subpart B. Comments are due no later than January 21, 2016. The public portions of these filings can be accessed via the Commission's Web site (
The Commission appoints Lyudmila Y. Bzhilyanskaya to represent the interests of the general public (Public Representative) in this docket.
1. The Commission reopens Docket No. CP2014-67 for consideration of matters raised by the Postal Service's Notice.
2. Pursuant to 39 U.S.C. 505, the Commission appoints Lyudmila Y. Bzhilyanskaya to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding.
3. Comments are due no later than January 21, 2016.
4. The Secretary shall arrange for publication of this order in the
By the Commission.
Pursuant to Section 19(b)(1)
The Exchange proposes to amend the fees [sic] NYSE Arca Integrated Feed to: (1) Establish a multiple data feed fee; and (2) discontinue fees relating to managed non-display. 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 the fees for NYSE Arca Integrated Feed market data product,
• Establish a multiple data feed fee; and
• Discontinue fees relating to managed non-display.
The Exchange proposes to establish a new monthly fee, the “Multiple Data Feed Fee,” that would apply to data recipients that take a data feed for a market data product in more than two locations. Data recipients taking NYSE Arca Integrated Feed in more than two locations would be charged $200 per additional location per product per month. No new reporting would be required.
Non-Display Use of NYSE Arca market data means accessing, processing, or consuming NYSE Arca market data delivered via direct and/or Redistributor
The Exchange proposes to discontinue the fees related to Managed Non-Display Services because of the limited number of Redistributors that have qualified for Managed Non-Display Services and the administrative burdens associated with the program in light of the limited number of Redistributors that have qualified for Managed Non-Display Services. As proposed, all data recipients currently using NYSE Arca Integrated Feed on a managed non-display basis would be subject to the same access fee of $3,000 per month, and the same non-display services fees,
Non-Display Use fees for NYSE Arca Integrated Feed include the Non-Display Use of NYSE ArcaBook, NYSE Arca BBO and NYSE Arca Trades for customers paying NYSE Arca Integrated Feed non-display fees that also pay access fees for NYSE ArcaBook, NYSE Arca BBO and NYSE Arca Trades.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The fees are also equitable and not unfairly discriminatory because they will apply to all data recipients that choose to subscribe to NYSE Arca Integrated Feed.
The Exchange believes that it is reasonable to require data recipients to pay a modest additional fee for taking a data feed for a market data product in more than two locations, because such data recipients can derive substantial value from being able to consume the product in as many locations as they want. In addition, there are administrative burdens associated with tracking each location at which a data recipient receives the product. The Multiple Data Feed Fee is designed to encourage data recipients to better manage their requests for additional data feeds and to monitor their usage of data feeds. The proposed fee is designed to apply to data feeds received in more than two locations so that each data recipient can have one primary and one backup data location before having to pay a multiple data feed fee. The Exchange notes that this pricing is consistent with similar pricing adopted in 2013 by the Consolidated Tape Association (“CTA”).
The Exchange believes that it is reasonable to discontinue Managed Non-Display Fees. As the Exchange noted in the 2013 Non-Display Filing, the Exchange determined at that time that its fee structure, which was then based primarily on counting both display and non-display devices, was no longer appropriate in light of market and technology developments. Since then, the Exchange also modified its approach to display and non-display fees with changes to the fees as reflected in the 2014 Non-Display Filing.
The Exchange believes that adding a note to the Fee Schedule to reflect that Non-Display Use fees for NYSE Arca Integrated Feed include the Non-Display Use of NYSE ArcaBook, NYSE Arca BBO and NYSE Arca Trades for customers paying NYSE Arca Integrated Feed non-display fees that are also paying access fees for NYSE ArcaBook, NYSE Arca BBO and NYSE Arca Trades will remove impediments to and help perfect a free and open market by providing greater transparency for the Exchange's customers regarding the application of non-display use fees that have been previously filed with the Commission and are applicable to the existing Fee Schedule.
The Exchange notes that NYSE Arca Integrated Feed is entirely optional. The Exchange is not required to make NYSE Arca Integrated Feed available or to offer any specific pricing alternatives to any customers, nor is any firm required to purchase NYSE Arca Integrated Feed. Firms that do purchase NYSE Arca Integrated Feed do so for the primary goals of using them to increase revenues, reduce expenses, and in some instances compete directly with the Exchange (including for order flow); those firms are able to determine for themselves whether NYSE Arca Integrated Feed or any other similar products are attractively priced or not.
Firms that do not wish to purchase NYSE Arca Integrated Feed have a variety of alternative market data products from which to choose,
The decision of the United States Court of Appeals for the District of Columbia Circuit in
In fact, the legislative history indicates that the Congress intended that the market system `evolve through the interplay of competitive forces as unnecessary regulatory restrictions are removed' and that the SEC wield its regulatory power `in those situations where competition may not be sufficient,' such as in the creation of a `consolidated transactional reporting system.'
As explained below in the Exchange's Statement on Burden on Competition, the Exchange believes that there is substantial evidence of competition in the marketplace for proprietary market data and that the Commission can rely upon such evidence in concluding that the fees established in this filing are the product of competition and therefore satisfy the relevant statutory standards. In addition, the existence of alternatives to these data products, such as consolidated data and proprietary data from other sources, as described below, further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can select such alternatives.
As the
For these reasons, the Exchange believes that the proposed fees are reasonable, equitable, and not unfairly discriminatory.
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. An exchange's ability to price its proprietary market data feed products is constrained by actual competition for the sale of proprietary market data products, the joint product nature of exchange platforms, and the existence of alternatives to the Exchange's proprietary data.
The market for proprietary data products is currently competitive and inherently contestable because there is fierce competition for the inputs necessary for the creation of proprietary data and strict pricing discipline for the proprietary products themselves. Numerous exchanges compete with one another for listings and order flow and sales of market data itself, providing ample opportunities for entrepreneurs who wish to compete in any or all of those areas, including producing and distributing their own market data. Proprietary data products are produced and distributed by each individual exchange, as well as other entities, in a vigorously competitive market. Indeed, the U.S. Department of Justice (“DOJ”) (the primary antitrust regulator) has expressly acknowledged the aggressive actual competition among exchanges, including for the sale of proprietary market data. In 2011, the DOJ stated that exchanges “compete head to head to offer real-time equity data products. These data products include the best bid and offer of every exchange and information on each equity trade, including the last sale.”
Moreover, competitive markets for listings, order flow, executions, and transaction reports provide pricing discipline for the inputs of proprietary data products and therefore constrain markets from overpricing proprietary market data. Broker-dealers send their order flow and transaction reports to multiple venues, rather than providing them all to a single venue, which in turn reinforces this competitive constraint. As a 2010 Commission Concept Release noted, the “current market structure can be described as dispersed and complex” with “trading volume . . . dispersed among many highly automated trading centers that compete for order flow in the same stocks” and “trading centers offer[ing] a wide range of services that are designed to attract different types of market participants with varying trading needs.”
If an exchange succeeds in competing for quotations, order flow, and trade executions, then it earns trading revenues and increases the value of its proprietary market data products because they will contain greater quote and trade information. Conversely, if an exchange is less successful in attracting quotes, order flow, and trade
In addition, in the case of products that are also redistributed through market data vendors, such as Bloomberg and Thompson Reuters, the vendors themselves provide additional price discipline for proprietary data products because they control the primary means of access to certain end users. These vendors impose price discipline based upon their business models. For example, vendors that assess a surcharge on data they sell are able to refuse to offer proprietary products that their end users do not or will not purchase in sufficient numbers. Vendors will not elect to make available NYSE Arca Integrated Feed unless their customers request it, and customers will not elect to pay the proposed fees unless NYSE Arca Integrated Feed can provide value by sufficiently increasing revenues or reducing costs in the customer's business in a manner that will offset the fees. All of these factors operate as constraints on pricing proprietary data products.
Transaction execution and proprietary data products are complementary in that market data is both an input and a byproduct of the execution service. In fact, proprietary market data and trade executions are a paradigmatic example of joint products with joint costs. The decision of whether and on which platform to post an order will depend on the attributes of the platforms where the order can be posted, including the execution fees, data availability and quality, and price and distribution of data products. Without a platform to post quotations, receive orders, and execute trades, exchange data products would not exist.
The costs of producing market data include not only the costs of the data distribution infrastructure, but also the costs of designing, maintaining, and operating the exchange's platform for posting quotes, accepting orders, and executing transactions and the cost of regulating the exchange to ensure its fair operation and maintain investor confidence. The total return that a trading platform earns reflects the revenues it receives from both products and the joint costs it incurs.
Moreover, an exchange's broker-dealer customers generally view the costs of transaction executions and market data as a unified cost of doing business with the exchange. A broker-dealer will only choose to direct orders to an exchange if the revenue from the transaction exceeds its cost, including the cost of any market data that the broker-dealer chooses to buy in support of its order routing and trading decisions. If the costs of the transaction are not offset by its value, then the broker-dealer may choose instead not to purchase the product and trade away from that exchange. There is substantial evidence of the strong correlation between order flow and market data purchases. For example, in September 2015, more than 80% of the transaction volume on each of NYSE Arca and NYSE Arca's affiliates New York Stock Exchange LLC (“NYSE”) and NYSE MKT LLC (“NYSE MKT”) was executed by market participants that purchased one or more proprietary market data products (the 20 firms were not the same for each market). A supra-competitive increase in the fees for either executions or market data would create a risk of reducing an exchange's revenues from both products.
Other market participants have noted that proprietary market data and trade executions are joint products of a joint platform and have common costs.
Analyzing the cost of market data product production and distribution in isolation from the cost of all of the inputs supporting the creation of market data and market data products will inevitably underestimate the cost of the data and data products because it is impossible to obtain the data inputs to create market data products without a fast, technologically robust, and well-regulated execution system, and system and regulatory costs affect the price of both obtaining the market data itself and creating and distributing market data products. It would be equally misleading, however, to attribute all of an exchange's costs to the market data portion of an exchange's joint products. Rather, all of an exchange's costs are incurred for the unified purposes of attracting order flow, executing and/or routing orders, and generating and selling data about market activity. The total return that an exchange earns reflects the revenues it receives from the joint products and the total costs of the joint products.
As noted above, the level of competition and contestability in the market is evident in the numerous alternative venues that compete for order flow, including 11 equities self-regulatory organization (“SRO”) markets, as well as various forms of alternative trading systems (“ATSs”), including dark pools and electronic communication networks (“ECNs”), and internalizing broker-dealers. SRO markets compete to attract order flow and produce transaction reports via trade executions, and two FINRA-regulated Trade Reporting Facilities compete to attract transaction reports from the non-SRO venues.
Competition among trading platforms can be expected to constrain the aggregate return that each platform earns from the sale of its joint products, but different trading platforms may choose from a range of possible, and equally reasonable, pricing strategies as the means of recovering total costs. For example, some platforms may choose to pay rebates to attract orders, charge relatively low prices for market data products (or provide market data products free of charge), and charge relatively high prices for accessing posted liquidity. Other platforms may choose a strategy of paying lower
The large number of SROs, ATSs, and internalizing broker-dealers that currently produce proprietary data or are currently capable of producing it provides further pricing discipline for proprietary data products. Each SRO, ATS, and broker-dealer is currently permitted to produce and sell proprietary data products, and many currently do, including but not limited to the Exchange, NYSE MKT, NYSE, NASDAQ OMX, BATS, and Direct Edge.
The fact that proprietary data from ATSs, internalizing broker-dealers, and vendors can bypass SROs is significant in two respects. First, non-SROs can compete directly with SROs for the production and sale of proprietary data products. By way of example, BATS and NYSE Arca both published proprietary data on the Internet before registering as exchanges. Second, because a single order or transaction report can appear in an SRO proprietary product, a non-SRO proprietary product, or both, the amount of data available via proprietary products is greater in size than the actual number of orders and transaction reports that exist in the marketplace. With respect to NYSE Arca Integrated Feed, competitors offer close substitute products.
Those competitive pressures imposed by available alternatives are evident in the Exchange's proposed pricing.
In addition to the competition and price discipline described above, the market for proprietary data products is also highly contestable because market entry is rapid and inexpensive. The history of electronic trading is replete with examples of entrants that swiftly grew into some of the largest electronic trading platforms and proprietary data producers: Archipelago, Bloomberg Tradebook, Island, RediBook, Attain, TrackECN, BATS Trading and Direct Edge. As noted above, BATS launched as an ATS in 2006 and became an exchange in 2008, while Direct Edge began operations in 2007 and obtained exchange status in 2010.
In determining the proposed change [sic] changes to the fees for the NYSE Arca Integrated Feed, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all users. The existence of numerous alternatives to the Exchange's products, including proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if the attendant fees are not justified by the returns that any particular vendor or data recipient would achieve through the purchase.
No written comments were solicited or received with respect to the proposed rule change.
The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A)
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 delete obsolete Rules 1000B—1012B, collectively captioned Rules Applicable to Trading of Cash Index Participations, and to amend Rule 722, Miscellaneous Securities Margin Accounts.
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.
Cash Index Participations (“CIPs”) were listed on the Exchange in the late 1980s.
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. The proposed change is not designed to address any competitive issue but would merely remove references to CIPs that are no longer relevant to the Exchange's business in any respect.
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
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,
• 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 amend the fees for NYSE BBO and NYSE Trades to: (1) Establish a multiple data feed fee; (2) discontinue fees relating to managed non-display; (3) modify the application of the access fee; and (4) reduce the Enterprise Fee. 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 the fees for NYSE BBO and NYSE Trades market data products,
• Establish a multiple data feed fee;
• Discontinue fees relating to managed non-display;
• Modify the application of the access fee; and
• Reduce the Enterprise Fee.
The
Non-Display Use of NYSE market data means accessing, processing, or consuming NYSE market data delivered via direct and/or Redistributor
The Exchange proposes to discontinue the fees related to Managed Non-Display Services because of the limited number of Redistributors that have qualified for Managed Non-Display Services and the administrative burdens associated with the program in light of the limited number of Redistributors that have qualified for Managed Non-Display Services. As proposed, all data recipients currently using NYSE BBO and NYSE Trades on a managed non-display basis would be subject to the same access fee of $1,500 per month, and the same non-display services fees,
The Exchange proposes to modify the application of the access fees for NYSE BBO and NYSE Trades.
Each NYSE BBO data feed recipient currently pays a monthly $1,500 access fee for NYSE BBO, and each NYSE Trades data feed recipient currently pays a monthly $1,500 access fee for NYSE Trades. A single access fee applies for data recipients receiving both NYSE BBO and NYSE Trades.
In addition, the Exchange notes that recipients of NYSE OpenBook that also receive NYSE BBO and NYSE Order Imbalances do not currently pay an access fee for NYSE BBO and NYSE Order Imbalances.
The Exchange currently charges an enterprise fee of $190,000 per month for an unlimited number of professional and non-professional users for each of NYSE BBO and NYSE Trades. A single Enterprise Fee applies for clients receiving both NYSE BBO and NYSE Trades.
As an example, under the current fee structure for per user fees, if a firm had 40,000 professional users who each received NYSE Trades at $4 per month and NYSE BBO at $4 per month, then the firm would pay $320,000 per month in professional user fees. Under the current pricing structure, the charge would be capped at $190,000 and effective January it would be capped at $185,000.
Under the proposed enterprise fee, the firm would pay a flat fee of $185,000 for an unlimited number of professional and non-professional users for both products. As is the case currently, a data recipient that pays the enterprise fee would not have to report the number of such users on a monthly basis.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The fees are also equitable and not unfairly discriminatory because they will apply to all data recipients that choose to subscribe to NYSE BBO and NYSE Trades.
The Exchange believes that it is reasonable to require data recipients to pay a modest additional fee taking a data feed for a market data product in
The Exchange believes that it is reasonable to discontinue Managed Non-Display Fees. In 2013, the Exchange determined that its fee structure, which was then based primarily on counting both display and non-display devices, was no longer appropriate in light of market and technology developments.
The Exchange believes that it is reasonable to make the changes proposed to the application of access fees for NYSE BBO and NYSE Trades. The Exchange believes the proposed changes will make the application of the access fees to each of products so that an access fee entitles a customer to receive, for the applicable product, a data feed or feeds. Specifically, data recipients that take the NYSE BBO and/or NYSE Trades products receive value from each product they choose to take. A data recipient that chooses to take multiple products (no recipient is required to take any of these products, or any specific combination of them) uses each product in a different way and therefore obtains different value from each. The Exchange believes that each product has a separate and distinct value that is appropriate to reflect in a separate access fee. Finally, the requirement to pay separate access fees for each market data product is equitable and not unfairly discriminatory because it would apply to all data recipients and appropriately reflects the value of each product to those who choose to use them.
The proposed enterprise fees for NYSE BBO and NYSE Trades are reasonable because they could result in a fee reduction for data recipients with a large number of professional and nonprofessional users, as described in the example above. If a data recipient has a smaller number of professional users of NYSE BBO and/or NYSE Trades, then it may continue to use the per user fee structure. By reducing prices for data recipient [sic] with a large number of professional and non-professional users, the Exchange believes that more data recipient [sic] may choose to offer NYSE BBO and NYSE Trades, thereby expanding the distribution of this market data for the benefit of investors. The Exchange also believes that offering an enterprise fee expands the range of options for offering NYSE BBO and NYSE Trades and allows data recipients greater choice in selecting the most appropriate level of data and fees for the professional and non-professional users they are servicing.
The Exchange notes that NYSE BBO and NYSE Trades are entirely optional. The Exchange is not required to make NYSE BBO and NYSE Trades available or to offer any specific pricing alternatives to any customers, nor is any firm required to purchase NYSE BBO and NYSE Trades. Firms that do purchase NYSE BBO and NYSE Trades do so for the primary goals of using them to increase revenues, reduce expenses, and in some instances compete directly with the Exchange (including for order flow); those firms are able to determine for themselves whether NYSE BBO and NYSE Trades or any other similar products are attractively priced or not.
Firms that do not wish to purchase NYSE BBO and NYSE Trades at the new prices have a variety of alternative market data products from which to choose,
The decision of the United States Court of Appeals for the District of Columbia Circuit in
In fact, the legislative history indicates that the Congress intended that the market system
As explained below in the Exchange's Statement on Burden on Competition, the Exchange believes that there is substantial evidence of competition in the marketplace for proprietary market data and that the Commission can rely upon such evidence in concluding that the fees established in this filing are the product of competition and therefore satisfy the relevant statutory standards. In addition, the existence of alternatives to these data products, such as consolidated data and proprietary data from other sources, as described below, further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can select such alternatives.
As the
For these reasons, the Exchange believes that the proposed fees are reasonable, equitable, and not unfairly discriminatory.
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. An exchange's ability to price its proprietary market data feed products is constrained by actual competition for the sale of proprietary market data products, the joint product nature of exchange platforms, and the existence of alternatives to the Exchange's proprietary data.
The market for proprietary data products is currently competitive and inherently contestable because there is fierce competition for the inputs necessary for the creation of proprietary data and strict pricing discipline for the proprietary products themselves. Numerous exchanges compete with one another for listings and order flow and sales of market data itself, providing ample opportunities for entrepreneurs who wish to compete in any or all of those areas, including producing and distributing their own market data. Proprietary data products are produced and distributed by each individual exchange, as well as other entities, in a vigorously competitive market. Indeed, the U.S. Department of Justice (“DOJ”) (the primary antitrust regulator) has expressly acknowledged the aggressive actual competition among exchanges, including for the sale of proprietary market data. In 2011, the DOJ stated that exchanges “compete head to head to offer real-time equity data products. These data products include the best bid and offer of every exchange and information on each equity trade, including the last sale.”
Moreover, competitive markets for listings, order flow, executions, and transaction reports provide pricing discipline for the inputs of proprietary data products and therefore constrain markets from overpricing proprietary market data. Broker-dealers send their order flow and transaction reports to multiple venues, rather than providing them all to a single venue, which in turn reinforces this competitive constraint. As a 2010 Commission Concept Release noted, the “current market structure can be described as dispersed and complex” with “trading volume . . . dispersed among many highly automated trading centers that compete for order flow in the same stocks” and “trading centers offer[ing] a wide range of services that are designed to attract different types of market participants with varying trading needs.”
If an exchange succeeds in competing for quotations, order flow, and trade executions, then it earns trading revenues and increases the value of its proprietary market data products because they will contain greater quote and trade information. Conversely, if an exchange is less successful in attracting quotes, order flow, and trade executions, then its market data products may be less desirable to customers in light of the diminished content and data products offered by competing venues may become more attractive. Thus, competition for quotations, order flow, and trade executions puts significant pressure on an exchange to maintain both execution and data fees at reasonable levels.
In addition, in the case of products that are also redistributed through market data vendors, such as Bloomberg and Thompson Reuters, the vendors
Transaction execution and proprietary data products are complementary in that market data is both an input and a byproduct of the execution service. In fact, proprietary market data and trade executions are a paradigmatic example of joint products with joint costs. The decision of whether and on which platform to post an order will depend on the attributes of the platforms where the order can be posted, including the execution fees, data availability and quality, and price and distribution of data products. Without a platform to post quotations, receive orders, and execute trades, exchange data products would not exist.
The costs of producing market data include not only the costs of the data distribution infrastructure, but also the costs of designing, maintaining, and operating the exchange's platform for posting quotes, accepting orders, and executing transactions and the cost of regulating the exchange to ensure its fair operation and maintain investor confidence. The total return that a trading platform earns reflects the revenues it receives from both products and the joint costs it incurs.
Moreover, an exchange's broker-dealer customers generally view the costs of transaction executions and market data as a unified cost of doing business with the exchange. A broker-dealer will only choose to direct orders to an exchange if the revenue from the transaction exceeds its cost, including the cost of any market data that the broker-dealer chooses to buy in support of its order routing and trading decisions. If the costs of the transaction are not offset by its value, then the broker-dealer may choose instead not to purchase the product and trade away from that exchange. There is substantial evidence of the strong correlation between order flow and market data purchases. For example, in September 2015, more than 80% of the transaction volume on each of NYSE and NYSE's affiliates NYSE Arca, Inc. (“NYSE Arca”) and NYSE MKT LLC (“MKT”) was executed by market participants that purchased one or more proprietary market data products (the 20 firms were not the same for each market). A supra-competitive increase in the fees for either executions or market data would create a risk of reducing an exchange's revenues from both products.
Other market participants have noted that proprietary market data and trade executions are joint products of a joint platform and have common costs.
Analyzing the cost of market data product production and distribution in isolation from the cost of all of the inputs supporting the creation of market data and market data products will inevitably underestimate the cost of the data and data products because it is impossible to obtain the data inputs to create market data products without a fast, technologically robust, and well-regulated execution system, and system and regulatory costs affect the price of both obtaining the market data itself and creating and distributing market data products. It would be equally misleading, however, to attribute all of an exchange's costs to the market data portion of an exchange's joint products. Rather, all of an exchange's costs are incurred for the unified purposes of attracting order flow, executing and/or routing orders, and generating and selling data about market activity. The total return that an exchange earns reflects the revenues it receives from the joint products and the total costs of the joint products.
As noted above, the level of competition and contestability in the market is evident in the numerous alternative venues that compete for order flow, including 11 equities self-regulatory organization (“SRO”) markets, as well as various forms of alternative trading systems (“ATSs”), including dark pools and electronic communication networks (“ECNs”), and internalizing broker-dealers. SRO markets compete to attract order flow and produce transaction reports via trade executions, and two FINRA-regulated Trade Reporting Facilities compete to attract transaction reports from the non-SRO venues.
Competition among trading platforms can be expected to constrain the aggregate return that each platform earns from the sale of its joint products, but different trading platforms may choose from a range of possible, and equally reasonable, pricing strategies as the means of recovering total costs. For example, some platforms may choose to pay rebates to attract orders, charge relatively low prices for market data products (or provide market data products free of charge), and charge relatively high prices for accessing posted liquidity. Other platforms may choose a strategy of paying lower rebates (or no rebates) to attract orders, setting relatively high prices for market data products, and setting relatively low prices for accessing posted liquidity. For example, BATS Global Markets (“BATS”) and Direct Edge, which previously operated as ATSs and obtained exchange status in 2008 and 2010, respectively, provided certain market data at no charge on their Web sites in order to attract more order flow, and used revenue rebates from resulting additional executions to maintain low execution charges for their users.
The large number of SROs, ATSs, and internalizing broker-dealers that currently produce proprietary data or are currently capable of producing it provides further pricing discipline for proprietary data products. Each SRO, ATS, and broker-dealer is currently permitted to produce and sell proprietary data products, and many currently do, including but not limited to the Exchange, NYSE MKT, NYSE Arca, NASDAQ OMX, BATS, and Direct Edge.
The fact that proprietary data from ATSs, internalizing broker-dealers, and vendors can bypass SROs is significant in two respects. First, non-SROs can compete directly with SROs for the production and sale of proprietary data products. By way of example, BATS and NYSE Arca both published proprietary data on the Internet before registering as exchanges. Second, because a single order or transaction report can appear in an SRO proprietary product, a non-SRO proprietary product, or both, the amount of data available via proprietary products is greater in size than the actual number of orders and transaction reports that exist in the marketplace. With respect to NYSE BBO and NYSE Trades, competitors offer close substitute products.
Those competitive pressures imposed by available alternatives are evident in the Exchange's proposed pricing.
In addition to the competition and price discipline described above, the market for proprietary data products is also highly contestable because market entry is rapid and inexpensive. The history of electronic trading is replete with examples of entrants that swiftly grew into some of the largest electronic trading platforms and proprietary data producers: Archipelago, Bloomberg Tradebook, Island, RediBook, Attain, TrackECN, BATS Trading and Direct Edge. As noted above, BATS launched as an ATS in 2006 and became an exchange in 2008, while Direct Edge began operations in 2007 and obtained exchange status in 2010.
In determining the proposed changes to the fees for the NYSE BBO and NYSE Trades, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all users. The existence of numerous alternatives to the Exchange's products, including proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if the attendant fees are not justified by the returns that any particular vendor or data recipient would achieve through the purchase.
No written comments were solicited or received with respect to the proposed rule change.
The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A)
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.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1)
The Exchange proposes to amend the fees for NYSE MKT Order Imbalances to: (1) Establish a multiple data feed fee; and (2) discontinue fees relating to managed non-display. 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 the fees for NYSE MKT Order Imbalances
• Establish a multiple data feed fee for NYSE MKT Order Imbalances; and
• Discontinue fees relating to managed non-display for NYSE MKT Order Imbalances.
The Exchange proposes to establish a new monthly fee, the “Multiple Data Feed Fee,” that would apply to data recipients that take a data feed for a market data product in more than two locations. Data recipients taking NYSE MKT Order Imbalances in more than two locations would be charged $200 per product per additional location per month. No new reporting would be required.
Non-Display Use of NYSE MKT market data means accessing, processing, or consuming NYSE MKT market data delivered via direct and/or Redistributor
The Exchange proposes to discontinue the fees related to Managed Non-Display Services because of the limited number of Redistributors that have qualified for Managed Non-Display Services and the administrative burdens associated with the program in light of the limited number of Redistributors that have qualified for Managed Non-Display Services. As proposed, all data recipients currently using NYSE MKT Order Imbalances on a managed non-display basis would continue to be subject to an access fee of $500 per month, and the same non-display services fees,
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The fees are also equitable and not unfairly discriminatory because they will apply to all data recipients that choose to subscribe to NYSE MKT Order Imbalances.
The Exchange believes that it is reasonable to require data recipients to pay a modest additional fee [sic] taking a data feed for a market data product in more than two locations, because such data recipients can derive substantial value from being able to consume the product in as many locations as they want. In addition, there are administrative burdens associated with tracking each location at which a data recipient receives the product. The Multiple Data Feed Fee is designed to encourage data recipients to better manage their requests for additional data feeds and to monitor their usage of data feeds. The proposed fee is designed to apply to data feeds received in more than two locations so that each data recipient can have one primary and one backup data location before having to pay a multiple data feed fee. The Exchange notes that this pricing is consistent with similar pricing adopted in 2013 by the Consolidated Tape Association (“CTA”).
The Exchange believes that it is reasonable to discontinue Managed Non-Display Fees. The Exchange determined in 2013 that its fee structure, which was then based primarily on counting both display and non-display devices, was no longer appropriate in light of market and technology developments.
The Exchange notes that NYSE MKT Order Imbalances is entirely optional. The Exchange is not required to make NYSE MKT Order Imbalances available or to offer any specific pricing alternatives to any customers, nor is any firm required to purchase NYSE MKT Order Imbalances. Firms that do purchase NYSE MKT Order Imbalances do so for the primary goals of using it to increase revenues, reduce expenses, and in some instances compete directly with the Exchange (including for order flow); those firms are able to determine for themselves whether NYSE MKT Order Imbalances or any other similar products are attractively priced or not.
The decision of the United States Court of Appeals for the District of Columbia Circuit in
In fact, the legislative history indicates that the Congress intended that the market system `evolve through the interplay of competitive forces as unnecessary regulatory restrictions are removed' and that the SEC wield its regulatory power `in those situations where competition may not be sufficient,' such as in the creation of a `consolidated transactional reporting system.'
As explained below in the Exchange's Statement on Burden on Competition, the Exchange believes that there is substantial evidence of competition in the marketplace for proprietary market data and that the Commission can rely upon such evidence in concluding that the fees established in this filing are the product of competition and therefore satisfy the relevant statutory standards. In addition, the existence of alternatives to these data products, such as consolidated data and proprietary data from other sources, as described below, further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can select such alternatives.
As the
For these reasons, the Exchange believes that the proposed fees are reasonable, equitable, and not unfairly discriminatory.
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. An exchange's ability to price its proprietary market data feed products is constrained by actual competition for the sale of proprietary market data products, the joint product nature of exchange platforms, and the existence of alternatives to the Exchange's proprietary data.
The market for proprietary data products is currently competitive and inherently contestable because there is fierce competition for the inputs necessary for the creation of proprietary data and strict pricing discipline for the proprietary products themselves. Numerous exchanges compete with one another for listings and order flow and sales of market data itself, providing ample opportunities for entrepreneurs who wish to compete in any or all of those areas, including producing and distributing their own market data. Proprietary data products are produced and distributed by each individual exchange, as well as other entities, in a vigorously competitive market. Indeed, the U.S. Department of Justice (“DOJ”) (the primary antitrust regulator) has expressly acknowledged the aggressive actual competition among exchanges, including for the sale of proprietary market data. In 2011, the DOJ stated that exchanges “compete head to head to offer real-time equity data products. These data products include the best bid and offer of every exchange and information on each equity trade, including the last sale.”
Moreover, competitive markets for listings, order flow, executions, and transaction reports provide pricing discipline for the inputs of proprietary data products and therefore constrain markets from overpricing proprietary market data. Broker-dealers send their order flow and transaction reports to multiple venues, rather than providing them all to a single venue, which in turn reinforces this competitive constraint. As a 2010 Commission Concept Release noted, the “current market structure can be described as dispersed and complex” with “trading volume . . . dispersed among many highly automated trading centers that compete for order flow in the same stocks” and “trading centers offer[ing] a wide range of services that are designed to attract different types of market participants with varying trading needs.”
If an exchange succeeds in competing for quotations, order flow, and trade executions, then it earns trading revenues and increases the value of its proprietary market data products because they will contain greater quote and trade information. Conversely, if an exchange is less successful in attracting quotes, order flow, and trade executions, then its market data products may be less desirable to customers in light of the diminished content and data products offered by competing venues may become more attractive. Thus, competition for quotations, order flow, and trade executions puts significant pressure on an exchange to maintain both execution and data fees at reasonable levels.
In addition, in the case of products that are also redistributed through market data vendors, such as Bloomberg and Thompson Reuters, the vendors themselves provide additional price discipline for proprietary data products because they control the primary means of access to certain end users. These vendors impose price discipline based upon their business models. For example, vendors that assess a surcharge on data they sell are able to refuse to offer proprietary products that their end users do not or will not purchase in sufficient numbers. Vendors will not elect to make available NYSE MKT Order Imbalances unless their customers request it, and customers will not elect to pay the proposed fees unless NYSE MKT Order Imbalances can provide value by sufficiently increasing revenues or reducing costs in the customer's business in a manner that will offset the fees. All of these factors operate as constraints on pricing proprietary data products.
Transaction execution and proprietary data products are complementary in that market data is both an input and a byproduct of the execution service. In fact, proprietary market data and trade executions are a paradigmatic example of joint products with joint costs. The decision of whether and on which platform to post an order will depend on the attributes of the platforms where the order can be posted, including the execution fees, data availability and quality, and price and distribution of data products. Without a platform to post quotations, receive orders, and execute trades, exchange data products would not exist.
The costs of producing market data include not only the costs of the data distribution infrastructure, but also the costs of designing, maintaining, and operating the exchange's platform for posting quotes, accepting orders, and executing transactions and the cost of regulating the exchange to ensure its fair operation and maintain investor confidence. The total return that a trading platform earns reflects the revenues it receives from both products and the joint costs it incurs.
Moreover, an exchange's broker-dealer customers generally view the costs of transaction executions and market data as a unified cost of doing business with the exchange. A broker-dealer will only choose to direct orders to an exchange if the revenue from the transaction exceeds its cost, including the cost of any market data that the broker-dealer chooses to buy in support of its order routing and trading decisions. If the costs of the transaction are not offset by its value, then the broker-dealer may choose instead not to purchase the product and trade away from that exchange. There is substantial evidence of the strong correlation between order flow and market data purchases. For example, in September 2015, more than 80% of the transaction volume on each of NYSE MKT and NYSE MKT's affiliates New York Stock Exchange LLC (“NYSE”) and NYSE Arca, Inc. (“NYSE Arca”) was executed by market participants that purchased one or more proprietary market data products (the 20 firms were not the same for each market). A supra-competitive increase in the fees for either executions or market data would create a risk of reducing an exchange's revenues from both products.
Other market participants have noted that proprietary market data and trade executions are joint products of a joint platform and have common costs.
Analyzing the cost of market data product production and distribution in isolation from the cost of all of the inputs supporting the creation of market data and market data products will inevitably underestimate the cost of the data and data products because it is impossible to obtain the data inputs to create market data products without a fast, technologically robust, and well-regulated execution system, and system and regulatory costs affect the price of both obtaining the market data itself and creating and distributing market data products. It would be equally misleading, however, to attribute all of an exchange's costs to the market data portion of an exchange's joint products. Rather, all of an exchange's costs are incurred for the unified purposes of attracting order flow, executing and/or routing orders, and generating and selling data about market activity. The total return that an exchange earns reflects the revenues it receives from the joint products and the total costs of the joint products.
As noted above, the level of competition and contestability in the market is evident in the numerous alternative venues that compete for order flow, including 11 equities self-regulatory organization (“SRO”) markets, as well as various forms of alternative trading systems (“ATSs”), including dark pools and electronic communication networks (“ECNs”), and internalizing broker-dealers. SRO markets compete to attract order flow and produce transaction reports via trade executions, and two FINRA-regulated Trade Reporting Facilities compete to attract transaction reports from the non-SRO venues.
Competition among trading platforms can be expected to constrain the aggregate return that each platform earns from the sale of its joint products, but different trading platforms may choose from a range of possible, and equally reasonable, pricing strategies as the means of recovering total costs. For example, some platforms may choose to pay rebates to attract orders, charge relatively low prices for market data products (or provide market data products free of charge), and charge relatively high prices for accessing posted liquidity. Other platforms may choose a strategy of paying lower rebates (or no rebates) to attract orders, setting relatively high prices for market data products, and setting relatively low prices for accessing posted liquidity. For example, BATS Global Markets (“BATS”) and Direct Edge, which previously operated as ATSs and obtained exchange status in 2008 and 2010, respectively, provided certain market data at no charge on their Web sites in order to attract more order flow, and used revenue rebates from resulting additional executions to maintain low execution charges for their users.
The large number of SROs, ATSs, and internalizing broker-dealers that currently produce proprietary data or are currently capable of producing it provides further pricing discipline for proprietary data products. Each SRO, ATS, and broker-dealer is currently permitted to produce and sell proprietary data products, and many currently do, including but not limited to the Exchange, NYSE, NYSE Arca, NASDAQ OMX, BATS, and Direct Edge.
The fact that proprietary data from ATSs, internalizing broker-dealers, and vendors can bypass SROs is significant in two respects. First, non-SROs can compete directly with SROs for the production and sale of proprietary data products. By way of example, BATS and NYSE Arca both published proprietary data on the Internet before registering as exchanges. Second, because a single order or transaction report can appear in an SRO proprietary product, a non-SRO proprietary product, or both, the amount of data available via proprietary products is greater in size than the
Those competitive pressures imposed by available alternatives are evident in the Exchange's proposed pricing.
In addition to the competition and price discipline described above, the market for proprietary data products is also highly contestable because market entry is rapid and inexpensive. The history of electronic trading is replete with examples of entrants that swiftly grew into some of the largest electronic trading platforms and proprietary data producers: Archipelago, Bloomberg Tradebook, Island, RediBook, Attain, TrackECN, BATS Trading and Direct Edge. As noted above, BATS launched as an ATS in 2006 and became an exchange in 2008, while Direct Edge began operations in 2007 and obtained exchange status in 2010.
In determining the proposed change [sic] changes to the fees for the NYSE MKT Order Imbalances, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all users. The existence of numerous alternatives to the Exchange's products, including proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if the attendant fees are not justified by the returns that any particular vendor or data recipient would achieve through the purchase.
No written comments were solicited or received with respect to the proposed rule change.
The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A)
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 amend the fees for NYSE MKT BBO and NYSE MKT Trades to: (1) Establish a multiple data feed fee; (2) discontinue fees relating to managed non-display; (3)
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 the fees for NYSE MKT BBO and NYSE MKT Trades market data products,
• Establish a multiple data feed fee;
• Discontinue fees relating to managed non-display;
• Modify the application of the access fee; and
• Reduce the Enterprise Fee.
The
Non-Display Use of NYSE MKT market data means accessing, processing, or consuming NYSE MKT market data delivered via direct and/or Redistributor
The Exchange proposes to discontinue the fees related to Managed Non-Display Services because of the limited number of Redistributors that have qualified for Managed Non-Display Services and the administrative burdens associated with the program in light of the limited number of Redistributors that have qualified for Managed Non-Display Services. As proposed, all data recipients currently using NYSE MKT BBO and NYSE MKT Trades on a managed non-display basis would be subject to the same access fee of $750 per month, and the same non-display services fees,
The Exchange proposes to modify the application of the access fees for NYSE MKT BBO and NYSE MKT Trades.
Each NYSE MKT BBO data feed recipient currently pays a monthly $750 access fee for NYSE MKT BBO, and each NYSE MKT Trades data feed recipient currently pays a monthly $750 access fee for NYSE MKT Trades. A single access fee applies for data recipients receiving both NYSE MKT BBO and NYSE MKT Trades.
The Exchange currently charges an enterprise fee of $20,000 per month for an unlimited number of professional and non-professional users for each of NYSE MKT BBO and NYSE MKT Trades. A single Enterprise Fee applies for clients receiving both NYSE MKT BBO and NYSE MKT Trades.
As an example, under the current fee structure for per user fees, if a firm had 40,000 professional users who each received NYSE MKT Trades at $1 per month and NYSE MKT BBO at $1 per month, then the firm would pay $80,000 per month in professional user fees. Under the current pricing structure, the charge would be capped at $20,000 and effective January it would be capped at $15,000.
Under the proposed enterprise fee, the firm would pay a flat fee of $15,000 for an unlimited number of professional and non-professional users for both products. As is the case currently, a data recipient that pays the enterprise fee would not have to report the number of such users on a monthly basis.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The fees are also equitable and not unfairly discriminatory because they will apply to all data recipients that choose to subscribe to NYSE MKT BBO and NYSE MKT Trades.
The Exchange believes that it is reasonable to require data recipients to pay a modest additional fee taking a data feed for a market data product in more than two locations, because such data recipients can derive substantial value from being able to consume the product in as many locations as they want. In addition, there are administrative burdens associated with tracking each location at which a data recipient receives the product. The Multiple Data Feed Fee is designed to encourage data recipients to better manage their requests for additional data feeds and to monitor their usage of data feeds. The proposed fee is designed to apply to data feeds received in more than two locations so that each data recipient can have one primary and one backup data location before having to pay a multiple data feed fee. The Exchange notes that this pricing is consistent with similar pricing adopted in 2013 by the Consolidated Tape Association (“CTA”).
The Exchange believes that it is reasonable to discontinue Managed Non-Display Fees. As the Exchange noted in the 2013 Non-Display Filing, the Exchange determined at that time that its fee structure, which was then based primarily on counting both display and non-display devices, was no longer appropriate in light of market and technology developments. Since then, the Exchange also modified its approach to display and non-display fees with changes to the fees as reflected in the 2014 Non-Display Filing.
The Exchange believes that it is reasonable to make the changes proposed to the application of access fees for NYSE MKT BBO and NYSE MKT Trades. The Exchange believes the proposed changes will make the application of the access fees to each of products so that an access fee entitles a customer to receive, for the applicable product, a data feed or feeds. Specifically, data recipients that take the NYSE MKT BBO and/or NYSE MKT Trades products receive value from each product they choose to take. A data recipient that chooses to take multiple products (no recipient is required to take any of these products, or any specific combination of them) uses each product in a different way and therefore obtains different value from each. The Exchange believes that each product has a separate and distinct value that is appropriate to reflect in a separate access fee. Finally, the requirement to pay separate access fees for each market data product is equitable and not unfairly discriminatory because it would apply to all data recipients and appropriately reflects the value of each product to those who choose to use them.
The proposed enterprise fees for NYSE MKT BBO and NYSE MKT Trades are reasonable because they could result in a fee reduction for data recipients with a large number of professional and nonprofessional users, as described in the example above. If a data recipient has a smaller number of professional users of NYSE MKT BBO and/or NYSE MKT Trades, then it may continue to use the per user fee
The Exchange notes that NYSE MKT BBO and NYSE MKT Trades are entirely optional. The Exchange is not required to make NYSE MKT BBO and NYSE MKT Trades available or to offer any specific pricing alternatives to any customers, nor is any firm required to purchase NYSE MKT BBO and NYSE MKT Trades. Firms that do purchase NYSE MKT BBO and NYSE MKT Trades do so for the primary goals of using them to increase revenues, reduce expenses, and in some instances compete directly with the Exchange (including for order flow); those firms are able to determine for themselves whether NYSE MKT BBO and NYSE MKT Trades or any other similar products are attractively priced or not.
Firms that do not wish to purchase NYSE MKT BBO and NYSE MKT Trades at the new prices have a variety of alternative market data products from which to choose,
The decision of the United States Court of Appeals for the District of Columbia Circuit in
In fact, the legislative history indicates that the Congress intended that the market system `evolve through the interplay of competitive forces as unnecessary regulatory restrictions are removed' and that the SEC wield its regulatory power `in those situations where competition may not be sufficient,' such as in the creation of a `consolidated transactional reporting system.'
As explained below in the Exchange's Statement on Burden on Competition, the Exchange believes that there is substantial evidence of competition in the marketplace for proprietary market data and that the Commission can rely upon such evidence in concluding that the fees established in this filing are the product of competition and therefore satisfy the relevant statutory standards. In addition, the existence of alternatives to these data products, such as consolidated data and proprietary data from other sources, as described below, further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can select such alternatives.
As the
For these reasons, the Exchange believes that the proposed fees are reasonable, equitable, and not unfairly discriminatory.
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. An exchange's ability to price its proprietary market data feed products is constrained by actual competition for the sale of proprietary market data products, the joint product nature of exchange platforms, and the existence of alternatives to the Exchange's proprietary data.
The market for proprietary data products is currently competitive and inherently contestable because there is fierce competition for the inputs necessary for the creation of proprietary data and strict pricing discipline for the proprietary products themselves. Numerous exchanges compete with one another for listings and order flow and sales of market data itself, providing ample opportunities for entrepreneurs who wish to compete in any or all of those areas, including producing and distributing their own market data. Proprietary data products are produced and distributed by each individual exchange, as well as other entities, in a vigorously competitive market. Indeed, the U.S. Department of Justice (“DOJ”) (the primary antitrust regulator) has expressly acknowledged the aggressive actual competition among exchanges, including for the sale of proprietary market data. In 2011, the DOJ stated that exchanges “compete head to head to offer real-time equity data products. These data products include the best bid and offer of every exchange and information on each equity trade, including the last sale.”
Moreover, competitive markets for listings, order flow, executions, and transaction reports provide pricing discipline for the inputs of proprietary data products and therefore constrain markets from overpricing proprietary market data. Broker-dealers send their order flow and transaction reports to multiple venues, rather than providing them all to a single venue, which in turn reinforces this competitive constraint. As a 2010 Commission Concept Release noted, the “current market structure can be described as dispersed and complex” with “trading volume . . . dispersed among many highly automated trading centers that compete for order flow in the same stocks” and “trading centers offer[ing] a wide range of services that are designed to attract different types of market participants with varying trading needs.”
If an exchange succeeds in competing for quotations, order flow, and trade executions, then it earns trading revenues and increases the value of its proprietary market data products because they will contain greater quote and trade information. Conversely, if an exchange is less successful in attracting quotes, order flow, and trade executions, then its market data products may be less desirable to customers in light of the diminished content and data products offered by competing venues may become more attractive. Thus, competition for quotations, order flow, and trade executions puts significant pressure on an exchange to maintain both execution and data fees at reasonable levels.
In addition, in the case of products that are also redistributed through market data vendors, such as Bloomberg and Thompson Reuters, the vendors themselves provide additional price discipline for proprietary data products because they control the primary means of access to certain end users. These vendors impose price discipline based upon their business models. For example, vendors that assess a surcharge on data they sell are able to refuse to offer proprietary products that their end users do not or will not purchase in sufficient numbers. Vendors will not elect to make available NYSE MKT BBO or NYSE MKT Trades unless their customers request it, and customers will not elect to pay the proposed fees unless NYSE MKT BBO and NYSE MKT Trades can provide value by sufficiently increasing revenues or reducing costs in the customer's business in a manner that will offset the fees. All of these factors operate as constraints on pricing proprietary data products.
Transaction execution and proprietary data products are complementary in that market data is both an input and a byproduct of the execution service. In fact, proprietary market data and trade executions are a paradigmatic example of joint products with joint costs. The decision of whether and on which platform to post an order will depend on the attributes of the platforms where the order can be posted, including the execution fees, data availability and quality, and price and distribution of data products. Without a platform to post quotations, receive orders, and execute trades, exchange data products would not exist.
The costs of producing market data include not only the costs of the data distribution infrastructure, but also the costs of designing, maintaining, and operating the exchange's platform for posting quotes, accepting orders, and executing transactions and the cost of regulating the exchange to ensure its fair operation and maintain investor confidence. The total return that a trading platform earns reflects the revenues it receives from both products and the joint costs it incurs.
Moreover, an exchange's broker-dealer customers generally view the costs of transaction executions and market data as a unified cost of doing business with the exchange. A broker-dealer will only choose to direct orders to an exchange if the revenue from the transaction exceeds its cost, including the cost of any market data that the broker-dealer chooses to buy in support of its order routing and trading decisions. If the costs of the transaction are not offset by its value, then the broker-dealer may choose instead not to purchase the product and trade away from that exchange. There is substantial evidence of the strong correlation between order flow and market data purchases. For example, in September 2015, more than 80% of the transaction volume on each of NYSE MKT and NYSE MKT's affiliates New York Stock Exchange LLC (“NYSE”) and NYSE Arca, Inc. (“NYSE Arca”) was executed by market participants that purchased one or more proprietary market data products (the 20 firms were not the same for each market). A supra-competitive increase in the fees for either executions or market data would create a risk of reducing an exchange's revenues from both products.
Other market participants have noted that proprietary market data and trade executions are joint products of a joint platform and have common costs.
Analyzing the cost of market data product production and distribution in isolation from the cost of all of the inputs supporting the creation of market data and market data products will inevitably underestimate the cost of the data and data products because it is impossible to obtain the data inputs to create market data products without a fast, technologically robust, and well-regulated execution system, and system and regulatory costs affect the price of both obtaining the market data itself and creating and distributing market data products. It would be equally misleading, however, to attribute all of an exchange's costs to the market data portion of an exchange's joint products. Rather, all of an exchange's costs are incurred for the unified purposes of attracting order flow, executing and/or routing orders, and generating and selling data about market activity. The total return that an exchange earns reflects the revenues it receives from the joint products and the total costs of the joint products.
As noted above, the level of competition and contestability in the market is evident in the numerous alternative venues that compete for order flow, including 11 equities self-regulatory organization (“SRO”) markets, as well as various forms of alternative trading systems (“ATSs”), including dark pools and electronic communication networks (“ECNs”), and internalizing broker-dealers. SRO markets compete to attract order flow and produce transaction reports via trade executions, and two FINRA-regulated Trade Reporting Facilities compete to attract transaction reports from the non-SRO venues.
Competition among trading platforms can be expected to constrain the aggregate return that each platform earns from the sale of its joint products, but different trading platforms may choose from a range of possible, and equally reasonable, pricing strategies as the means of recovering total costs. For example, some platforms may choose to pay rebates to attract orders, charge relatively low prices for market data products (or provide market data products free of charge), and charge relatively high prices for accessing posted liquidity. Other platforms may choose a strategy of paying lower rebates (or no rebates) to attract orders, setting relatively high prices for market data products, and setting relatively low prices for accessing posted liquidity. For example, BATS Global Markets (“BATS”) and Direct Edge, which previously operated as ATSs and obtained exchange status in 2008 and 2010, respectively, provided certain market data at no charge on their Web sites in order to attract more order flow, and used revenue rebates from resulting additional executions to maintain low execution charges for their users.
The large number of SROs, ATSs, and internalizing broker-dealers that currently produce proprietary data or are currently capable of producing it provides further pricing discipline for proprietary data products. Each SRO, ATS, and broker-dealer is currently permitted to produce and sell proprietary data products, and many currently do, including but not limited to the Exchange, NYSE, NYSE Arca, NASDAQ OMX, BATS, and Direct Edge.
The fact that proprietary data from ATSs, internalizing broker-dealers, and vendors can bypass SROs is significant in two respects. First, non-SROs can compete directly with SROs for the production and sale of proprietary data products. By way of example, BATS and NYSE Arca both published proprietary data on the Internet before registering as exchanges. Second, because a single order or transaction report can appear in an SRO proprietary product, a non-SRO proprietary product, or both, the amount of data available via proprietary products is greater in size than the actual number of orders and transaction reports that exist in the marketplace. With respect to NYSE MKT BBO and NYSE MKT Trades, competitors offer close substitute products.
Those competitive pressures imposed by available alternatives are evident in the Exchange's proposed pricing.
In addition to the competition and price discipline described above, the market for proprietary data products is also highly contestable because market entry is rapid and inexpensive. The history of electronic trading is replete with examples of entrants that swiftly grew into some of the largest electronic trading platforms and proprietary data producers: Archipelago, Bloomberg Tradebook, Island, RediBook, Attain, TrackECN, BATS Trading and Direct Edge. As noted above, BATS launched as an ATS in 2006 and became an exchange in 2008, while Direct Edge began operations in 2007 and obtained exchange status in 2010.
In determining the proposed changes to the fees for the NYSE MKT BBO and NYSE MKT Trades, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all users. The existence of numerous alternatives to the Exchange's products, including proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if the attendant fees are not justified by the returns that any particular vendor or data recipient would achieve through the purchase.
No written comments were solicited or received with respect to the proposed rule change.
The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A)
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
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.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1)
The Exchange proposes to amend the fees for NYSE OpenBook to: (1) Establish a multiple data feed fee; (2) discontinue fees relating to managed non-display; (3) modify the application of the access fee; and (4) modify the application of the non-professional user fee cap. 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 the fees for NYSE OpenBook,
• Establish a multiple data feed fee;
• Discontinue fees relating to managed non-display; and
• Modify the application of the access fee.
The Exchange also proposes to modify the application of the non-professional fee cap, effective April 1, 2016.
The Exchange proposes to establish a new monthly fee, the “Multiple Data Feed Fee,” that would apply to data recipients that take a data feed for a market data product in more than two locations. Data recipients taking NYSE OpenBook in more than two locations would be charged $200 per additional location per month. No new reporting would be required.
Non-Display Use of NYSE market data means accessing, processing, or consuming NYSE market data delivered via direct and/or Redistributor
The Exchange proposes to discontinue the fees related to Managed Non-Display Services because of the limited number of Redistributors that have qualified for Managed Non-Display Services and the administrative burdens associated with the program in light of the limited number of Redistributors that have qualified for Managed Non-Display Services. As proposed, all data recipients currently using NYSE OpenBook on a managed non-display basis would be subject to the same access fee of $5,000 per month, and the same non-display services fees,
The Exchange proposes to make two changes to the application of the access fee for NYSE OpenBook.
First, each NYSE OpenBook data feed recipient currently pays a monthly $5,000 access fee for NYSE OpenBook. Recipients of NYSE OpenBook that also receive NYSE BBO and NYSE Order Imbalances do not currently pay an access fee for NYSE BBO and NYSE Order Imbalances.
Second, NYSE OpenBook is currently available in two forms: NYSE OpenBook Aggregated (formerly known as NYSE OpenBook Realtime) and NYSE OpenBook Ultra. NYSE OpenBook Aggregated distributes the Exchange's limit order data in real-time at intervals of one second. NYSE OpenBook Ultra makes available limit order data in real-time upon receipt of each displayed limit order.
When the Exchange introduced NYSE OpenBook Ultra, the Exchange represented that it would continue to support and make available NYSE OpenBook Aggregated as an optional alternative without additional or different fees or terms.
For display use of the NYSE OpenBook data feed, the Fee Schedule sets forth a Professional User Fee of $60 per user per month and a Non-Professional User Fee of $15 per user per month. These user fees generally apply to each display device that has access to NYSE OpenBook.
For customers that are broker-dealers, these fees are subject to a $25,000 per month cap on non-professional user fees (the “Non-Professional User Fee Cap”).
The Exchange proposes to eliminate the Professional User Exception for NYSE OpenBook effective April 1, 2016. The Exchange notes the Professional User Exception was an accommodation, the benefits of which were, when implemented, outweighed by the complexity of the terms of the exception and the burdens on customers and on the Exchange that have to track compliance with the exception. In addition, the Exchange notes that the Professional User Exception has been used by a small number of customers since it was adopted.
Accordingly, as proposed, the Non-Professional User Fee Cap would no longer include any professional users that receive NYSE OpenBook data feed and the Professional User fee of $60 per user per month would apply with respect to all Professional Users.
Non-Display Use fees for NYSE OpenBook include the Non-Display Use of NYSE BBO and NYSE Order Imbalances for customers paying NYSE OpenBook non-display fees that also pay access fees for NYSE BBO and NYSE Order Imbalances.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The fees are also equitable and not unfairly discriminatory because they will apply to all data recipients that choose to subscribe to NYSE OpenBook.
The Exchange believes that it is reasonable to require data recipients to pay a modest additional fee [sic] taking a data feed for a market data product in more than two locations, because such data recipients can derive substantial value from being able to consume the product in as many locations as they want. In addition, there are administrative burdens associated with tracking each location at which a data recipient receives the product. The Multiple Data Feed Fee is designed to encourage data recipients to better manage their requests for additional data feeds and to monitor their usage of data feeds. The proposed fee is designed to apply to data feeds received in more than two locations so that each data recipient can have one primary and one backup data location before having to pay a multiple data feed fee. The Exchange notes that this pricing is consistent with similar pricing adopted in 2013 by the Consolidated Tape Association (“CTA”).
The Exchange believes that it is reasonable to discontinue Managed Non-Display Fees. As the Exchange noted in the 2013 Non-Display Filing, the Exchange determined at that time that its fee structure, which was then based primarily on counting both display and non-display devices, was no longer appropriate in light of market and technology developments. Since then, the Exchange also modified its approach to display and non-display fees with changes to the fees as reflected in the 2014 Non-Display Filing.
The Exchange believes that it is reasonable to make the changes proposed to the application of access fees for NYSE OpenBook. In both cases, the Exchange believes the proposed changes will make the application of the access fees to each of products so that an access fee entitles a customer to receive, for the applicable product, a data feed or feeds. Specifically, data recipients that take the NYSE OpenBook, NYSE BBO and/or NYSE Order Imbalances products receive value from each separate product they choose to take. A data recipient that chooses to take multiple products that contain overlapping data (no recipient is required to take any of these products, or any specific combination of them) uses each product in a different way and therefore obtains different value from each. Similarly, the Exchange believes that it is reasonable to apply separate access fees for each of NYSE OpenBook Ultra and NYSE OpenBook Aggregated. First, applying an access fee to each product would bring consistency to the Exchange's application of access. Second, because NYSE OpenBook Ultra and NYSE OpenBook Aggregated provide the Exchange's depth of book data in different forms, data recipients that choose to receive and utilize both forms get separate value from each. The Exchange believes that each product has a separate and distinct value that is appropriate to reflect in a separate access fee. Finally, the requirement to pay separate access fees for each market data product is equitable and not unfairly discriminatory because it would apply to all data recipients and appropriately reflects the value of each product to those who choose to use them.
The Exchange believes that it is reasonable to modify the application of the non-professional user fee cap by eliminating the Professional User Exception. The Exchange notes that the Professional User Exception was an accommodation, the benefits of which were, when implemented, outweighed by the complexity of the terms of, and tracking compliance with, the exception. Eliminating the Professional User Exception would make the application of the Non-Professional User Fee Cap simpler by removing an administrative exception that has had very limited use and application.
The Exchange believes that adding a note to the Fee Schedule to reflect that Non-Display Use fees for NYSE OpenBook include the Non-Display Use of NYSE BBO and NYSE Order Imbalances for customers paying NYSE OpenBook non-display fees that are also paying access fees for NYSE BBO and NYSE Order Imbalances will remove impediments to and help perfect a free and open market by providing greater transparency for the Exchange's customers regarding the application of non-display use fees that have been previously filed with the Commission and are applicable to the existing Fee Schedule.
The Exchange notes that NYSE OpenBook is entirely optional. The Exchange is not required to make NYSE OpenBook available or to offer any specific pricing alternatives to any customers, nor is any firm required to purchase NYSE OpenBook. Firms that do purchase NYSE OpenBook do so for the primary goals of using it to increase revenues, reduce expenses, and in some instances compete directly with the Exchange (including for order flow); those firms are able to determine for themselves whether NYSE OpenBook or any other similar products are attractively priced or not.
Firms that do not wish to purchase NYSE OpenBook at the new prices have a variety of alternative market data products from which to choose,
The decision of the United States Court of Appeals for the District of Columbia Circuit in
In fact, the legislative history indicates that the Congress intended that the market system `evolve through the interplay of competitive forces as unnecessary regulatory restrictions are removed' and that the SEC wield its regulatory power `in those situations where competition may not be sufficient,' such as in the creation of a `consolidated transactional reporting system.'
As explained below in the Exchange's Statement on Burden on Competition, the Exchange believes that there is substantial evidence of competition in the marketplace for proprietary market data and that the Commission can rely upon such evidence in concluding that the fees established in this filing are the product of competition and therefore satisfy the relevant statutory standards. In addition, the existence of alternatives to these data products, such as consolidated data and proprietary data from other sources, as described below, further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can select such alternatives.
As the
For these reasons, the Exchange believes that the proposed fees are reasonable, equitable, and not unfairly discriminatory.
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. An exchange's ability to price its proprietary market data feed products is constrained by actual competition for the sale of proprietary market data products, the joint product nature of exchange platforms, and the existence of alternatives to the Exchange's proprietary data.
The market for proprietary data products is currently competitive and inherently contestable because there is fierce competition for the inputs necessary for the creation of proprietary data and strict pricing discipline for the proprietary products themselves. Numerous exchanges compete with one another for listings and order flow and sales of market data itself, providing ample opportunities for entrepreneurs who wish to compete in any or all of those areas, including producing and distributing their own market data. Proprietary data products are produced and distributed by each individual exchange, as well as other entities, in a vigorously competitive market. Indeed, the U.S. Department of Justice (“DOJ”) (the primary antitrust regulator) has expressly acknowledged the aggressive actual competition among exchanges, including for the sale of proprietary market data. In 2011, the DOJ stated that exchanges “compete head to head to offer real-time equity data products. These data products include the best bid and offer of every exchange and information on each equity trade, including the last sale.”
Moreover, competitive markets for listings, order flow, executions, and transaction reports provide pricing discipline for the inputs of proprietary data products and therefore constrain markets from overpricing proprietary market data. Broker-dealers send their order flow and transaction reports to multiple venues, rather than providing them all to a single venue, which in turn reinforces this competitive constraint. As a 2010 Commission Concept Release noted, the “current market structure can be described as dispersed and complex” with “trading volume . . . dispersed among many highly automated trading centers that compete for order flow in the same stocks” and “trading centers offer[ing] a wide range of services that are designed to attract different types of market participants with varying trading needs.”
If an exchange succeeds in competing for quotations, order flow, and trade executions, then it earns trading revenues and increases the value of its proprietary market data products because they will contain greater quote and trade information. Conversely, if an exchange is less successful in attracting quotes, order flow, and trade executions, then its market data products may be less desirable to customers in light of the diminished content and data products offered by competing venues may become more attractive. Thus, competition for quotations, order flow, and trade executions puts significant pressure on an exchange to maintain both execution and data fees at reasonable levels.
In addition, in the case of products that are also redistributed through market data vendors, such as Bloomberg and Thompson Reuters, the vendors themselves provide additional price discipline for proprietary data products because they control the primary means of access to certain end users. These vendors impose price discipline based upon their business models. For example, vendors that assess a surcharge on data they sell are able to refuse to offer proprietary products that their end users do not or will not purchase in sufficient numbers. Vendors will not elect to make available NYSE OpenBook unless their customers request it, and customers will not elect to pay the proposed fees unless NYSE OpenBook can provide value by sufficiently increasing revenues or reducing costs in the customer's business in a manner that will offset the fees. All of these factors operate as constraints on pricing proprietary data products.
Transaction execution and proprietary data products are complementary in that market data is both an input and a byproduct of the execution service. In fact, proprietary market data and trade executions are a paradigmatic example of joint products with joint costs. The decision of whether and on which platform to post an order will depend on the attributes of the platforms where the order can be posted, including the execution fees, data availability and quality, and price and distribution of data products. Without a platform to post quotations, receive orders, and execute trades, exchange data products would not exist.
The costs of producing market data include not only the costs of the data distribution infrastructure, but also the costs of designing, maintaining, and operating the exchange's platform for posting quotes, accepting orders, and executing transactions and the cost of regulating the exchange to ensure its fair operation and maintain investor confidence. The total return that a trading platform earns reflects the revenues it receives from both products and the joint costs it incurs.
Moreover, an exchange's broker-dealer customers generally view the costs of transaction executions and market data as a unified cost of doing business with the exchange. A broker-dealer will only choose to direct orders to an exchange if the revenue from the transaction exceeds its cost, including the cost of any market data that the broker-dealer chooses to buy in support of its order routing and trading decisions. If the costs of the transaction are not offset by its value, then the broker-dealer may choose instead not to purchase the product and trade away from that exchange. There is substantial evidence of the strong correlation between order flow and market data purchases. For example, in September 2015, more than 80% of the transaction volume on each of NYSE and NYSE's affiliates NYSE Arca, Inc. (“NYSE Arca”) and NYSE MKT LLC (“NYSE MKT”) was executed by market participants that purchased one or more proprietary market data products (the 20 firms were not the same for each market). A supra-competitive increase in the fees for either executions or market data would create a risk of reducing an exchange's revenues from both products.
Other market participants have noted that proprietary market data and trade executions are joint products of a joint platform and have common costs.
Analyzing the cost of market data product production and distribution in isolation from the cost of all of the inputs supporting the creation of market data and market data products will inevitably underestimate the cost of the data and data products because it is impossible to obtain the data inputs to create market data products without a fast, technologically robust, and well-regulated execution system, and system and regulatory costs affect the price of both obtaining the market data itself and creating and distributing market data products. It would be equally misleading, however, to attribute all of an exchange's costs to the market data portion of an exchange's joint products. Rather, all of an exchange's costs are incurred for the unified purposes of attracting order flow, executing and/or routing orders, and generating and selling data about market activity. The total return that an exchange earns reflects the revenues it receives from the joint products and the total costs of the joint products.
As noted above, the level of competition and contestability in the market is evident in the numerous alternative venues that compete for order flow, including 11 equities self-regulatory organization (“SRO”) markets, as well as various forms of alternative trading systems (“ATSs”), including dark pools and electronic communication networks (“ECNs”), and internalizing broker-dealers. SRO markets compete to attract order flow and produce transaction reports via trade executions, and two FINRA-regulated Trade Reporting Facilities compete to attract transaction reports from the non-SRO venues.
Competition among trading platforms can be expected to constrain the aggregate return that each platform earns from the sale of its joint products, but different trading platforms may choose from a range of possible, and equally reasonable, pricing strategies as the means of recovering total costs. For example, some platforms may choose to pay rebates to attract orders, charge relatively low prices for market data products (or provide market data products free of charge), and charge relatively high prices for accessing posted liquidity. Other platforms may choose a strategy of paying lower rebates (or no rebates) to attract orders, setting relatively high prices for market data products, and setting relatively low prices for accessing posted liquidity. For example, BATS Global Markets (“BATS”) and Direct Edge, which previously operated as ATSs and obtained exchange status in 2008 and 2010, respectively, provided certain market data at no charge on their Web sites in order to attract more order flow, and used revenue rebates from resulting additional executions to maintain low execution charges for their users.
The large number of SROs, ATSs, and internalizing broker-dealers that currently produce proprietary data or are currently capable of producing it provides further pricing discipline for proprietary data products. Each SRO, ATS, and broker-dealer is currently permitted to produce and sell proprietary data products, and many currently do, including but not limited to the Exchange, NYSE MKT, NYSE Arca, NASDAQ OMX, BATS, and Direct Edge.
The fact that proprietary data from ATSs, internalizing broker-dealers, and vendors can bypass SROs is significant in two respects. First, non-SROs can compete directly with SROs for the production and sale of proprietary data products. By way of example, BATS and NYSE Arca both published proprietary data on the Internet before registering as exchanges. Second, because a single order or transaction report can appear in an SRO proprietary product, a non-SRO proprietary product, or both, the amount of data available via proprietary products is greater in size than the actual number of orders and transaction reports that exist in the marketplace. With respect to NYSE OpenBook, competitors offer close substitute products.
Those competitive pressures imposed by available alternatives are evident in the Exchange's proposed pricing.
In addition to the competition and price discipline described above, the market for proprietary data products is also highly contestable because market entry is rapid and inexpensive. The history of electronic trading is replete with examples of entrants that swiftly grew into some of the largest electronic trading platforms and proprietary data producers: Archipelago, Bloomberg Tradebook, Island, RediBook, Attain, TrackECN, BATS Trading and Direct Edge. As noted above, BATS launched as an ATS in 2006 and became an exchange in 2008, while Direct Edge began operations in 2007 and obtained exchange status in 2010.
In determining the proposed changes to the fees for the NYSE OpenBook, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all users. The existence of numerous alternatives to the Exchange's products, including proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if the attendant fees are not justified by the returns that any particular vendor or data recipient would achieve through the purchase.
No written comments were solicited or received with respect to the proposed rule change.
The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A)
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.
On November 17, 2015, Chicago Board Options Exchange, Incorporated (“CBOE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
CBOE proposes to expand and extend the duration of its existing End of Week/End of Month Pilot Program (the
The Exchange's proposed rule change will allow it to open for trading WEDs on any broad-based index eligible for standard options trading to expire on any Wednesday of the month, other than a Wednesday that is EOM.
The maximum number of expirations that may be listed for WEDs is the same as the maximum number of expirations permitted in CBOE Rule 24.9(a)(2) for standard options on the same broad-based index, and CBOE proposes that other expirations in the same class will not be counted as part of the maximum number of WED expirations for a particular broad-based index class.
With respect to listing, if the last trading day of a month is a Wednesday, the Exchange will list an EOM and not a WED. This hierarchy will only apply if the Exchange lists an EOM in a particular class; if the Exchange does not list an EOM in that class on a last trading day of a month that is a Wednesday, it may list a WED.
The Exchange currently submits a Pilot report to the Commission at least two months prior to the expiration date of the Pilot (the “Annual Report”). The Exchange represents that it will expand the Annual Report to provide the same data and analysis related to WED expirations as is currently provided for EOW and EOM expirations.
After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange and, in particular, with Section 6(b) of the Act.
The Commission has had concerns about the adverse effects and impact of P.M. settlement upon market volatility and the operation of fair and orderly markets on the underlying cash market at or near the close of trading. Only in limited instances has the Commission previously approved P.M. settlement for cash-settled options. In addition to approving the original Pilot,
The Commission believes that it is appropriate to approve the WEDs proposal on a pilot basis and extend the existing Pilot in order to allow the Exchange to gain experience with the new WEDs and collect data concerning WEDs. The addition of WEDs would offer additional investment options to investors and may be useful for their investment or hedging objectives. The Commission believes that the proposal strikes a reasonable balance between the Exchange's desire to offer a wider array of investment opportunities and the need to avoid unnecessary proliferation of options series that may burden some liquidity providers and further stress options quotation and transaction infrastructure. Further, CBOE's proposed extended Pilot period should allow for both the Exchange and the Commission to continue to monitor the potential for adverse market effects of P.M. settlement on the market, including the underlying cash equities markets at the expiration of these options.
The Commission notes that CBOE will provide the Commission with the Annual Report analyzing volume and open interest of EOWs, EOMs, and WEDs, which will also contain information and analysis of EOWs, EOMs, and WED trading patterns and index price volatility and share trading activity for series that exceed minimum parameters. This information should be useful to the Commission as it evaluates whether allowing P.M. settlement for EOWs, EOMs, and WEDs has resulted in increased market and price volatility in the underlying component stocks, particularly at expiration. The Pilot information should help the Commission and CBOE assess the impact on the markets and determine whether changes to these programs are necessary or appropriate. Furthermore, the Exchange's ongoing analysis of the Pilot should help it monitor any potential risks from large P.M.-settled positions and take appropriate action if warranted.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1)
The Exchange proposes to amend the fees for NYSE MKT OpenBook to: (1) Establish a multiple data feed fee; (2) discontinue fees relating to managed non-display; (3) modify the application of the non-professional user fee cap; and (4) modify fees relating to non-display use. 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 the fees for NYSE MKT OpenBook,
• Establish a multiple data feed fee;
• Discontinue fees relating to managed non-display;
• Modify the application of the non-professional user fee cap; and
• Modify fees relating to non-display use.
The Exchange also proposes to modify the application of the non-professional fee cap, effective April 1, 2016.
The Exchange proposes to establish a new monthly fee, the “Multiple Data Feed Fee,” that would apply to data recipients that take a data feed for a market data product in more than two locations. Data recipients taking NYSE MKT OpenBook in more than two locations would be charged $200 per additional location per month. No new reporting would be required.
Non-Display Use of NYSE MKT market data means accessing, processing, or consuming NYSE MKT market data delivered via direct and/or
The Exchange proposes to discontinue the fees related to Managed Non-Display Services because of the limited number of Redistributors that have qualified for Managed Non-Display Services and the administrative burdens associated with the program in light of the limited number of Redistributors that have qualified for Managed Non-Display Services. As proposed, all data recipients currently using NYSE MKT OpenBook on a managed non-display basis would be subject to the same access fee of $1,000 per month, and the same non-display services fees,
For display use of the NYSE MKT OpenBook data feed, the Fee Schedule sets forth a Professional User Fee of $5 per user per month and a Non-Professional User Fee of $1 per user per month. These user fees generally apply to each display device that has access to NYSE MKT OpenBook.
For customers that are broker-dealers, these fees are subject to a $20,000 per month cap on non-professional user fees (the “Non-Professional User Fee Cap”).
The Exchange proposes to eliminate the Professional User Exception for NYSE MKT OpenBook effective April 1, 2016. The Exchange notes the Professional User Exception was an accommodation, the benefits of which were, when implemented, outweighed by the complexity of the terms of the exception and the burdens on customers and on the Exchange that have to track compliance with the exception. In addition, the Exchange notes that the Professional User Exception has been used by a small number of customers since it was adopted.
Accordingly, as proposed, the Non-Professional User Fee Cap would no longer include any professional users that receive NYSE MKT OpenBook data feed and the Professional User fee of $5 per user per month would apply with respect to all Professional Users.
The Exchange proposes to modify the Non-Display Use fees for NYSE MKT OpenBook to provide that such fees include the Non-Display Use of NYSE MKT BBO and NYSE MKT Order Imbalances for customers paying NYSE MKT OpenBook non-display fees that also pay access fees for NYSE MKT BBO and NYSE MKT Order Imbalances. This proposed rule change is based on how the Exchange's affiliate, New York Stock Exchange LLC (“NYSE”) charges Non-Display Fees for NYSE OpenBook, NYSE BBO and NYSE Order Imbalances.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The fees are also equitable and not unfairly discriminatory because they will apply to all data recipients that choose to subscribe to NYSE MKT OpenBook.
The Exchange believes that it is reasonable to require data recipients to pay a modest additional fee [sic] taking a data feed for a market data product in more than two locations, because such data recipients can derive substantial value from being able to consume the product in as many locations as they want. In addition, there are administrative burdens associated with tracking each location at which a data recipient receives the product. The Multiple Data Feed Fee is designed to encourage data recipients to better manage their requests for additional data feeds and to monitor their usage of data feeds. The proposed fee is designed to apply to data feeds received in more than two locations so that each data recipient can have one primary and one backup data location before having to pay a multiple data feed fee. The Exchange notes that this pricing is consistent with similar pricing adopted in 2013 by the Consolidated Tape Association (“CTA”).
The Exchange believes that it is reasonable to discontinue Managed Non-Display Fees. As the Exchange noted in the 2013 Non-Display Filing, the Exchange determined at that time that its fee structure, which was then based primarily on counting both display and non-display devices, was no longer appropriate in light of market and technology developments. Since then, the Exchange also modified its approach to display and non-display fees with changes to the fees as reflected in the 2014 Non-Display Filing.
The Exchange believes that it is reasonable to modify the application of the non-professional user fee cap by eliminating the Professional User Exception. The Exchange notes that the Professional User Exception was an accommodation, the benefits of which were, when implemented, outweighed by the complexity of the terms of the exception and the burdens on customers and on the Exchange entailed with tracking compliance with the exception. Eliminating the Professional User Exception would make the application of the Non-Professional User Fee Cap simpler and ease administrative burdens for customers and the Exchange by removing an administrative exception that has had limited use and application.
The Exchange believes that the proposed modification to the Non-Display Use fees for NYSE MKT OpenBook to provide that such fees include the Non-Display Use of NYSE MKT BBO and NYSE MKT Order Imbalances for customers paying NYSE MKT OpenBook non-display fees that also pay access fees for NYSE MKT BBO and NYSE MKT Order Imbalances is reasonable and would not permit unfair discrimination among customers, issuers, and brokers because it would be applied equally to all data recipients that choose to subscribe to non-display use of NYSE MKT OpenBook, NYSE MKT BBO, and NYSE MKT Order Imbalances. The Exchange further believes that adding a note to the Fee Schedule to reflect that Non-Display Use fees for NYSE MKT OpenBook include the Non-Display Use of NYSE MKT BBO and NYSE MKT Order Imbalances for customers paying NYSE MKT OpenBook non-display fees that are also paying access fees for NYSE MKT BBO and NYSE MKT Order Imbalances will remove impediments to and help perfect a free and open market by providing greater transparency for the Exchange's customers regarding the application of non-display use fees by providing transparency regarding the Exchange's fees associated with non-display use of these data feeds.
The Exchange notes that NYSE MKT OpenBook is entirely optional. The Exchange is not required to make NYSE MKT OpenBook available or to offer any specific pricing alternatives to any customers, nor is any firm required to purchase NYSE MKT OpenBook. Firms that do purchase NYSE MKT OpenBook do so for the primary goals of using it to increase revenues, reduce expenses, and in some instances compete directly with the Exchange (including for order flow); those firms are able to determine for themselves whether NYSE MKT OpenBook or any other similar products are attractively priced or not.
Firms that do not wish to purchase NYSE MKT OpenBook at the new prices have a variety of alternative market data products from which to choose,
The decision of the United States Court of Appeals for the District of Columbia Circuit in
In fact, the legislative history indicates that the Congress intended that the market system `evolve through the interplay of competitive forces as unnecessary regulatory restrictions are removed' and that the SEC wield its regulatory power `in those situations where competition may not be sufficient,' such as in the creation of a `consolidated transactional reporting system.'
As explained below in the Exchange's Statement on Burden on Competition, the Exchange believes that there is substantial evidence of competition in the marketplace for proprietary market data and that the Commission can rely upon such evidence in concluding that the fees established in this filing are the product of competition and therefore satisfy the relevant statutory standards. In addition, the existence of alternatives to these data products, such as consolidated data and proprietary data from other sources, as described below, further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can select such alternatives.
As the
For these reasons, the Exchange believes that the proposed fees are reasonable, equitable, and not unfairly discriminatory.
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. An exchange's ability to price its proprietary market data feed products is constrained by actual competition for the sale of proprietary market data products, the joint product nature of exchange platforms, and the existence of alternatives to the Exchange's proprietary data.
The market for proprietary data products is currently competitive and inherently contestable because there is fierce competition for the inputs necessary for the creation of proprietary data and strict pricing discipline for the proprietary products themselves. Numerous exchanges compete with one another for listings and order flow and sales of market data itself, providing ample opportunities for entrepreneurs who wish to compete in any or all of those areas, including producing and distributing their own market data. Proprietary data products are produced and distributed by each individual exchange, as well as other entities, in a vigorously competitive market. Indeed, the U.S. Department of Justice (“DOJ”) (the primary antitrust regulator) has expressly acknowledged the aggressive actual competition among exchanges, including for the sale of proprietary market data. In 2011, the DOJ stated that exchanges “compete head to head to offer real-time equity data products. These data products include the best bid and offer of every exchange and information on each equity trade, including the last sale.”
Moreover, competitive markets for listings, order flow, executions, and transaction reports provide pricing discipline for the inputs of proprietary data products and therefore constrain markets from overpricing proprietary market data. Broker-dealers send their order flow and transaction reports to multiple venues, rather than providing them all to a single venue, which in turn reinforces this competitive constraint. As a 2010 Commission Concept Release noted, the “current market structure can be described as dispersed and complex” with “trading volume . . . dispersed among many highly automated trading centers that compete for order flow in the same stocks” and “trading centers offer[ing] a wide range of services that are designed to attract different types of market participants with varying trading needs.”
If an exchange succeeds in competing for quotations, order flow, and trade executions, then it earns trading revenues and increases the value of its proprietary market data products because they will contain greater quote and trade information. Conversely, if an exchange is less successful in attracting quotes, order flow, and trade executions, then its market data products may be less desirable to customers in light of the diminished content and data products offered by competing venues may become more attractive. Thus, competition for
In addition, in the case of products that are also redistributed through market data vendors, such as Bloomberg and Thompson Reuters, the vendors themselves provide additional price discipline for proprietary data products because they control the primary means of access to certain end users. These vendors impose price discipline based upon their business models. For example, vendors that assess a surcharge on data they sell are able to refuse to offer proprietary products that their end users do not or will not purchase in sufficient numbers. Vendors will not elect to make available NYSE MKT OpenBook unless their customers request it, and customers will not elect to pay the proposed fees unless NYSE MKT OpenBook can provide value by sufficiently increasing revenues or reducing costs in the customer's business in a manner that will offset the fees. All of these factors operate as constraints on pricing proprietary data products.
Transaction execution and proprietary data products are complementary in that market data is both an input and a byproduct of the execution service. In fact, proprietary market data and trade executions are a paradigmatic example of joint products with joint costs. The decision of whether and on which platform to post an order will depend on the attributes of the platforms where the order can be posted, including the execution fees, data availability and quality, and price and distribution of data products. Without a platform to post quotations, receive orders, and execute trades, exchange data products would not exist.
The costs of producing market data include not only the costs of the data distribution infrastructure, but also the costs of designing, maintaining, and operating the exchange's platform for posting quotes, accepting orders, and executing transactions and the cost of regulating the exchange to ensure its fair operation and maintain investor confidence. The total return that a trading platform earns reflects the revenues it receives from both products and the joint costs it incurs.
Moreover, an exchange's broker-dealer customers generally view the costs of transaction executions and market data as a unified cost of doing business with the exchange. A broker-dealer will only choose to direct orders to an exchange if the revenue from the transaction exceeds its cost, including the cost of any market data that the broker-dealer chooses to buy in support of its order routing and trading decisions. If the costs of the transaction are not offset by its value, then the broker-dealer may choose instead not to purchase the product and trade away from that exchange. There is substantial evidence of the strong correlation between order flow and market data purchases. For example, in September 2015, more than 80% of the transaction volume on each of NYSE MKT and NYSE MKT's affiliates NYSE and NYSE Arca, Inc. (“NYSE Arca”) was executed by market participants that purchased one or more proprietary market data products (the 20 firms were not the same for each market). A supra-competitive increase in the fees for either executions or market data would create a risk of reducing an exchange's revenues from both products.
Other market participants have noted that proprietary market data and trade executions are joint products of a joint platform and have common costs.
Analyzing the cost of market data product production and distribution in isolation from the cost of all of the inputs supporting the creation of market data and market data products will inevitably underestimate the cost of the data and data products because it is impossible to obtain the data inputs to create market data products without a fast, technologically robust, and well-regulated execution system, and system and regulatory costs affect the price of both obtaining the market data itself and creating and distributing market data products. It would be equally misleading, however, to attribute all of an exchange's costs to the market data portion of an exchange's joint products. Rather, all of an exchange's costs are incurred for the unified purposes of attracting order flow, executing and/or routing orders, and generating and selling data about market activity. The total return that an exchange earns reflects the revenues it receives from the joint products and the total costs of the joint products.
As noted above, the level of competition and contestability in the market is evident in the numerous alternative venues that compete for order flow, including 11 equities self-regulatory organization (“SRO”) markets, as well as various forms of alternative trading systems (“ATSs”), including dark pools and electronic communication networks (“ECNs”), and internalizing broker-dealers. SRO markets compete to attract order flow and produce transaction reports via trade executions, and two FINRA-regulated Trade Reporting Facilities compete to attract transaction reports from the non-SRO venues.
Competition among trading platforms can be expected to constrain the aggregate return that each platform earns from the sale of its joint products, but different trading platforms may choose from a range of possible, and equally reasonable, pricing strategies as the means of recovering total costs. For example, some platforms may choose to pay rebates to attract orders, charge relatively low prices for market data products (or provide market data products free of charge), and charge relatively high prices for accessing posted liquidity. Other platforms may choose a strategy of paying lower rebates (or no rebates) to attract orders, setting relatively high prices for market data products, and setting relatively low prices for accessing posted liquidity. For example, BATS Global Markets (“BATS”) and Direct Edge, which previously operated as ATSs and obtained exchange status in 2008 and 2010, respectively, provided certain
The large number of SROs, ATSs, and internalizing broker-dealers that currently produce proprietary data or are currently capable of producing it provides further pricing discipline for proprietary data products. Each SRO, ATS, and broker-dealer is currently permitted to produce and sell proprietary data products, and many currently do, including but not limited to the Exchange, NYSE, NYSE Arca, NASDAQ OMX, BATS, and Direct Edge.
The fact that proprietary data from ATSs, internalizing broker-dealers, and vendors can bypass SROs is significant in two respects. First, non-SROs can compete directly with SROs for the production and sale of proprietary data products. By way of example, BATS and NYSE Arca both published proprietary data on the Internet before registering as exchanges. Second, because a single order or transaction report can appear in an SRO proprietary product, a non-SRO proprietary product, or both, the amount of data available via proprietary products is greater in size than the actual number of orders and transaction reports that exist in the marketplace. With respect to NYSE MKT OpenBook, competitors offer close substitute products.
Those competitive pressures imposed by available alternatives are evident in the Exchange's proposed pricing.
In addition to the competition and price discipline described above, the market for proprietary data products is also highly contestable because market entry is rapid and inexpensive. The history of electronic trading is replete with examples of entrants that swiftly grew into some of the largest electronic trading platforms and proprietary data producers: Archipelago, Bloomberg Tradebook, Island, RediBook, Attain, TrackECN, BATS Trading and Direct Edge. As noted above, BATS launched as an ATS in 2006 and became an exchange in 2008, while Direct Edge began operations in 2007 and obtained exchange status in 2010.
In determining the proposed changes to the fees for the NYSE MKT OpenBook, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all users. The existence of numerous alternatives to the Exchange's products, including proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if the attendant fees are not justified by the returns that any particular vendor or data recipient would achieve through the purchase.
No written comments were solicited or received with respect to the proposed rule change.
The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A)
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.
Securities and Exchange Commission (the “Commission”).
Notice of an application for an order under section 6(c) of the Investment Company Act of 1940 (the “Act”) for an exemption from sections 2(a)(32), 5(a)(1), 22(d) and 22(e) of the Act and rule 22c-1 under the Act, under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and (a)(2) of the Act, and under section 12(d)(1)(J) of the Act for an exemption from sections 12(d)(1)(A) and (B) of the Act.
Brent J. Fields, Secretary, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. Applicants: J.P. Morgan Investment Management, Inc., 270 Park Avenue, New York, New York 10017.
Laura J. Riegel, Senior Counsel, at (202) 551-6873 or Mary Kay Frech, Branch Chief, at (202) 551-6821 (Division of Investment Management, Chief Counsel's Office).
The following is a summary of the application. The complete application may be obtained via the Commission's Web site by searching for the file number, or for an applicant using the Company name box, at
1. The Trust is organized as a Delaware statutory trust and is registered as an open-end management investment company under the Act. The Trust is organized as a series fund with multiple series. The Trust will offer a new series (the “New Fund”), whose investment objective will be to seek total return by investing pursuant to a systematic rules-based investment process. The New Fund will invest its assets globally (including in emerging markets) to gain exposure to equity securities (across market capitalizations), debt securities (including below investment grade and unrated debt securities), commodities (through a Wholly-Owned Subsidiary (as defined below) of the New Fund) and currencies.
2. JPMIM, a Delaware corporation, is registered as an investment adviser under the Investment Advisers Act of 1940 (the “Advisers Act”). JPMIM will serve as the investment adviser to the New Fund. The Adviser (as defined below) may enter into sub-advisory agreements with one or more investment advisers, each of which will act as sub-adviser (“Sub-Adviser”) to a Fund (as defined below) or its respective Master Fund (as defined below). Each Sub-Adviser will be registered or not subject to registration under the Advisers Act. The Distributor, a Pennsylvania corporation, is registered as a broker-dealer (“Broker”) under the Securities Exchange Act of 1934 (the “Exchange Act”). The Distributor will serve as the principal underwriter and distributor for the New Fund.
3. Applicants request that the order apply to the New Fund, as well as to additional series of the Trust and any other open-end management investment companies or series thereof that may be created in the future (“Future Funds”). Any Future Fund will: (a) Be advised by JPMIM or an entity controlling, controlled by, or under common control with JPMIM (each such entity is referred to as an “Adviser”) and (b) comply with the terms and conditions of the application. The New Fund and Future Funds together are the “Funds.”
4. The Funds, or their respective Master Funds (as defined below), may invest in equity securities or fixed income securities traded in the U.S. or non-U.S. markets. Funds, or their respective Master Funds, that invest in equity securities or fixed income securities traded in the U.S. or non-U.S. markets are “Global Funds.” Funds, or their respective Master Funds, that invest solely in foreign equity securities or foreign fixed income securities are “Foreign Funds.” The Funds may also invest in a in a broad variety of other
5. With respect to section 12(d)(1), applicants are requesting relief (“Fund of Funds Relief”) to permit management investment companies and unit investment trusts (“UITs”) registered under the Act that are not part of the same “group of investment companies,” within the meaning of section 12(d)(1)(G)(ii) of the Act, as the Funds (such registered management investment companies are referred to as “Investing Management Companies,” such UITs are referred to as “Investing Trusts,” and Investing Management Companies and Investing Trusts are collectively referred to as “Funds of Funds”), to acquire Shares beyond the limitations in section 12(d)(1)(A) and to permit the Funds, and any principal underwriter for the Funds, and any Broker, to sell Shares beyond the limitations in section 12(d)(l)(B) to Funds of Funds. Applicants request that any exemption under section 12(d)(1)(J) from sections 12(d)(1)(A) and (B) apply to: (1) Each Fund that is currently or subsequently part of the same “group of investment companies” as the New Fund within the meaning of section 12(d)(1)(G)(ii) of the Act, as well as any principal underwriter for the Funds and any Brokers selling Shares of a Fund to Funds of Funds; and (2) each Fund of Funds that enters into a participation agreement (“FOF Participation Agreement”) with a Fund. “Funds of Funds” do not include the Funds.
6. Applicants further request that the order permit a Fund to operate as a Feeder Fund (“Master-Feeder Relief”). Under the order, a Feeder Fund would be permitted to acquire shares of another registered investment company in the same group of investment companies having substantially the same investment objectives as the Feeder Fund (“Master Fund”) beyond the limitations in section 12(d)(1)(A) of the Act,
7. A Creation Unit will consist of at least 25,000 Shares and applicants expect that the trading price of a Share will range from $10 to $100. All orders to purchase Creation Units must be placed with the Distributor by or through an “Authorized Participant,” which is either (a) a Broker or other participant in the Continuous Net Settlement System of the National Securities Clearing Corporation (“NSCC”, and such process the “NSCC Process”), or (b) a participant in the Depository Trust Company (“DTC,” such participant “DTC Participant” and such process the “DTC Process”), which, in either case, has executed an agreement with the Distributor with respect to the purchase and redemption of Creation Units.
8. In order to keep costs low and permit each Fund to be as fully invested as possible, Shares will be purchased and redeemed in Creation Units and generally on an in-kind basis. Except where the purchase or redemption will include cash under the limited circumstances specified below, purchasers will be required to purchase Creation Units by making an in-kind deposit of specified instruments (“Deposit Instruments”), and shareholders redeeming their Shares will receive an in-kind transfer of specified instruments (“Redemption Instruments”).
9. Purchases and redemptions of Creation Units may be made in whole or in part on a cash basis, rather than in kind, solely under the following circumstances: (a) To the extent there is a Balancing Amount, as described above; (b) if, on a given Business Day, a Fund announces before the open of trading that all purchases, all redemptions or all purchases and redemptions on that day will be made entirely in cash; (c) if, upon receiving a purchase or redemption order from an Authorized Participant, a Fund determines to require the purchase or redemption, as applicable, to be made entirely in cash; (d) if, on a given Business Day, a Fund requires all Authorized Participants purchasing or redeeming Shares on that day to deposit or receive (as applicable) cash in lieu of some or all of the Deposit Instruments or Redemption Instruments, respectively, solely because: (i) Such instruments are not eligible for transfer through either the NSCC Process or DTC Process; or (ii) in the case of Global Funds and Foreign Funds, such instruments are not eligible for trading due to local trading restrictions, local restrictions on securities transfers or other similar circumstances; or (e) if a Fund permits an Authorized Participant to deposit or receive (as applicable) cash in lieu of some or all of the Deposit Instruments or Redemption Instruments, respectively, solely because: (i) Such instruments are, in the case of the purchase of a Creation Unit, not available in sufficient quantity; (ii) such instruments are not eligible for trading by an Authorized Participant or the investor on whose behalf the Authorized Participant is acting; or (iii) a holder of Shares of a Global Fund or Foreign Fund would be subject to unfavorable income tax treatment if the holder receives redemption proceeds in kind.
10. Each Business Day, before the open of trading on a national securities exchange, as defined in section 2(a)(26) of the Act (a “Listing Market”), on which Shares are listed and traded, each Fund will cause to be published through the NSCC the names and quantities of the instruments comprising the Creation Basket, as well as the estimated Balancing Amount (if any), for that day. The published Creation Basket will apply until a new Creation Basket is announced on the following Business Day, and there will be no intra-day changes to the Creation Basket except to correct errors in the published Creation Basket. The Listing Market will disseminate, every 15 seconds throughout the regular trading hours, through the facilities of the Consolidated Tape Association, an estimated NAV, which is an amount per Share representing the current value of the Portfolio Instruments that were publicly disclosed prior to the commencement of trading in Shares on the Listing Market.
11. A Fund may recoup the settlement costs charged by NSCC and DTC by imposing a transaction fee on investors purchasing or redeeming Creation Units (the “Transaction Fee”).
12. Purchasers of Shares in Creation Units may hold such Shares or may sell such Shares into the secondary market. Shares will be listed and traded at negotiated prices on a Listing Market and it is expected that the relevant Listing Market will designate one or more member firms to maintain a market for the Shares.
13. Applicants expect that purchasers of Creation Units will include institutional investors and arbitrageurs. Applicants expect that secondary market purchasers of Shares will include both institutional and retail investors.
14. Shares will not be individually redeemable and owners of Shares may acquire those Shares from a Fund, or tender such shares for redemption to the Fund, in Creation Units only. To redeem, an investor must accumulate enough Shares to constitute a Creation Unit. Redemption requests must be placed by or through an Authorized Participant.
15. Neither the Trust nor any Fund will be advertised or marketed or otherwise held out as a traditional open-end investment company or mutual fund. Instead, each Fund will be marketed as an “actively-managed exchange-traded fund.” All marketing materials that describe the features or
16. The Trust's Web site (“Web site”), which will be publicly available prior to the offering of Shares, will include each Fund's prospectus (“Prospectus”), statement of additional information (“SAI”), and summary prospectus, if used. The Web site will contain, on a per Share basis for each Fund, the prior Business Day's NAV and the market closing price or mid-point of the bid/ask spread at the time of calculation of such NAV (“Bid/Ask Price”), and a calculation of the premium or discount of the market closing price or the Bid/Ask Price against such NAV. On each Business Day, prior to the commencement of trading in Shares on a Listing Market, each Fund shall post on the Web site the identities and quantities of the Portfolio Instruments held by the Fund, or its respective Master Fund, that will form the basis for the calculation of the NAV at the end of that Business Day.
1. Applicants request an order under section 6(c) of the Act for an exemption from sections 2(a)(32), 5(a)(1), 22(d) and 22(e) of the Act and rule 22c-1 under the Act; and under sections 6(c) and 17(b) of the Act for an exemption from sections 17(a)(1) and (2) of the Act, and under section 12(d)(1)(J) for an exemption from sections 12(d)(1)(A) and (B) of the Act.
2. Section 6(c) of the Act provides that the Commission may exempt any person, security or transaction, or any class of persons, securities or transactions, from any provision of the Act, if and to the extent that such exemption is necessary or appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the Act. Section 17(b) of the Act authorizes the Commission to exempt a proposed transaction from section 17(a) of the Act if evidence establishes that the terms of the transaction, including the consideration to be paid or received, are reasonable and fair and do not involve overreaching on the part of any person concerned, and the proposed transaction is consistent with the policies of the registered investment company and the general provisions of the Act. Section 12(d)(1)(J) of the Act provides that the Commission may exempt any person, security, or transaction, or any class or classes of persons, securities or transactions, from any provision of section 12(d)(1) if the exemption is consistent with the public interest and the protection of investors.
3. Section 5(a)(1) of the Act defines an “open-end company” as a management investment company that is offering for sale or has outstanding any redeemable security of which it is the issuer. Section 2(a)(32) of the Act defines a redeemable security as any security, other than short-term paper, under the terms of which the holder, upon its presentation to the issuer, is entitled to receive approximately a proportionate share of the issuer's current net assets, or the cash equivalent. Because Shares will not be individually redeemable, applicants request an order that would permit the Trust to issue Shares that are redeemable in Creation Units only.
4. Section 22(d) of the Act, among other things, prohibits a dealer from selling a redeemable security that is currently being offered to the public by or through a principal underwriter, except at a current public offering price described in the prospectus. Rule 22c-1 under the Act generally requires that a dealer selling, redeeming, or repurchasing a redeemable security do so only at a price based on its NAV. Applicants state that secondary market trading in Shares will take place at negotiated prices, not at a current offering price described in the Prospectus, and not at a price based on NAV. Thus, purchases and sales of Shares in the secondary market will not comply with section 22(d) of the Act and rule 22c-1 under the Act. Applicants request an exemption under section 6(c) from these provisions.
5. Applicants state that, while there is little legislative history regarding section 22(d), its provisions, as well as those of rule 22c-1, appear to have been designed (a) to prevent dilution caused by certain riskless-trading schemes by principal underwriters and contract dealers, (b) to prevent unjust discrimination or preferential treatment among buyers and (c) to ensure an orderly distribution system of shares by contract dealers by eliminating price competition from non-contract dealers who could offer investors shares at less than the published sales price and who could pay investors a little more than the published redemption price.
6. Applicants assert that the protections intended to be afforded by section 22(d) and rule 22c-1 are adequately addressed by the proposed methods for creating, redeeming and pricing Creation Units and pricing and trading Shares. Applicants state that (a) secondary market trading in Shares does not involve the Funds as parties and cannot result in dilution of an investment in Shares and (b) to the extent different prices exist during a given trading day, or from day to day, such variances occur as a result of third-party market forces but do not occur as a result of unjust or discriminatory manipulation. Finally, applicants assert that competitive forces in the marketplace should ensure that the margin between NAV and the price for the Shares in the secondary market remains narrow.
7. Section 22(e) of the Act generally prohibits a registered investment company from suspending the right of redemption or postponing the date of payment of redemption proceeds for more than seven days after the tender of a security for redemption. Applicants observe that the settlement of redemptions of Creation Units of the Foreign and Global Funds is contingent not only on the settlement cycle of the U.S. securities markets but also on the delivery cycles present in foreign markets for underlying foreign Portfolio
8. Applicants state that section 22(e) was designed to prevent unreasonable, undisclosed or unforeseen delays in the actual payment of redemption proceeds. Applicants assert that the protections intended to be afforded by section 22(e) are adequately addressed by the proposed method and securities delivery cycles for redeeming Creation Units. Applicants state that allowing redemption payments for Creation Units of a Fund to be made within a maximum of fifteen (15) calendar days
9. Section 12(d)(1)(A) of the Act prohibits a registered investment company from acquiring shares of an investment company if the securities represent more than 3% of the total outstanding voting stock of the acquired company, more than 5% of the total assets of the acquiring company, or, together with the securities of any other investment companies, more than 10% of the total assets of the acquiring company. Section 12(d)(1)(B) of the Act prohibits a registered open-end investment company, its principal underwriter, or any other broker or dealer from selling its shares to another investment company if the sale will cause the acquiring company to own more than 3% of the acquired company's voting stock, or if the sale will cause more than 10% of the acquired company's voting stock to be owned by investment companies generally.
10. Applicants request relief to permit Funds of Funds to acquire Shares in excess of the limits in section 12(d)(1)(A) of the Act and to permit the Funds, their principal underwriters and any Broker to sell Shares to Funds of Funds in excess of the limits in section 12(d)(1)(B) of the Act. Applicants submit that the proposed conditions to the requested relief address the concerns underlying the limits in section 12(d)(1), which include concerns about undue influence, excessive layering of fees and overly complex structures.
11. Applicants submit that certain of their proposed conditions address concerns regarding the potential for undue influence. To limit the control that a Fund of Funds may have over a Fund, applicants propose a condition prohibiting the Fund of Funds Adviser, Sponsor, any person controlling, controlled by, or under common control with the Fund of Funds Adviser, sponsor of an Investing Trust (“Sponsor”), and any investment company or issuer that would be an investment company but for sections 3(c)(1) or 3(c)(7) of the Act that is advised or sponsored by the Fund of Funds Adviser, the Sponsor, or any person controlling, controlled by, or under common control with the Fund of Funds Adviser or Sponsor (“Fund of Funds Advisory Group”) from controlling (individually or in the aggregate) a Fund within the meaning of section 2(a)(9) of the Act. The same prohibition would apply to any sub-adviser to an Investing Management Company (“Fund of Funds Sub-Adviser”), any person controlling, controlled by or under common control with the Fund of Funds Sub-Adviser, and any investment company or issuer that would be an investment company but for sections 3(c)(1) or 3(c)(7) of the Act (or portion of such investment company or issuer) advised or sponsored by the Fund of Funds Sub-Adviser or any person controlling, controlled by or under common control with the Fund of Funds Sub-Adviser (“Fund of Funds Sub-Advisory Group”).
12. Applicants propose a condition to ensure that no Fund of Funds or Fund of Funds Affiliate
13. Applicants propose several conditions to address the potential for layering of fees. Applicants note that the board of directors or trustees of any Investing Management Company, including a majority of the directors or trustees who are not “interested persons” within the meaning of section 2(a)(19) of the Act (“independent Board members”), will be required to find that the advisory fees charged under the contract are based on services provided that will be in addition to, rather than duplicative of, services provided under the advisory contract of any Fund in which the Investing Management Company may invest. Applicants also state that any sales charges and/or service fees charged with respect to shares of a Fund of Funds will not exceed the limits applicable to a fund of funds as set forth in NASD Conduct Rule 2830.
14. In order to address concerns about complexity, applicants propose condition B.12, which will prohibit Funds from acquiring securities of any investment company or company relying on section 3(c)(1) or 3(c)(7) of the Act in excess of the limits contained in section 12(d)(1)(A) of the Act, other
15. Finally, each Fund of Funds must enter into an FOF Participation Agreement with the respective Funds, which will include an acknowledgement from the Fund of Funds that it may rely on the order only to invest in a Fund and not in any other investment company.
16. Applicants also are seeking relief from sections 12(d)(1)(A) and 12(d)(1)(B) to the extent necessary to permit the Feeder Funds to perform creations and redemptions of Shares in-kind in a master-feeder structure. Applicants assert that this structure is substantially identical to traditional master-feeder structures permitted pursuant to the exception provided in section 12(d)(1)(E) of the Act. Section 12(d)(1)(E) provides that the percentage limitations of sections 12(d)(1)(A) and (B) will not apply to a security issued by an investment company (in this case, the shares of the applicable Master Fund) if, among other things, that security is the only investment security held in the investing fund's portfolio (in this case, the Feeder Fund's portfolio). Applicants believe the proposed master-feeder structure complies with section 12(d)(1)(E) because each Feeder Fund will hold only investment securities issued by its corresponding Master Fund; however, the Feeder Funds may receive securities other than securities of its corresponding Master Fund if a Feeder Fund accepts an in-kind creation. To the extent that a Feeder Fund may be deemed to be holding both shares of the Master Fund and other securities, applicants request relief from sections 12(d)(1)(A) and (B). The Feeder Funds would operate in compliance with all other provisions of section 12(d)(1)(E).
17. Section 17(a) of the Act generally prohibits an affiliated person of a registered investment company, or an affiliated person of such a person (“second tier affiliate”), from selling any security to or purchasing any security from the company. Section 2(a)(3) of the Act defines “affiliated person” to include any person directly or indirectly owning, controlling, or holding with power to vote, 5% or more of the outstanding voting securities of the other person and any person directly or indirectly controlling, controlled by, or under common control with, the other person. Section 2(a)(9) of the Act defines “control” as the power to exercise a controlling influence over the management or policies of a company and provides that a control relationship will be presumed where one person owns more than 25% of another person's voting securities. Each Fund may be deemed to be controlled by the Adviser and hence affiliated persons of each other. In addition, the Funds may be deemed to be under common control with any other registered investment company (or series thereof) advised by the Adviser (an “Affiliated Fund”).
18. Applicants request an exemption under sections 6(c) and 17(b) of the Act from sections 17(a)(1) and 17(a)(2) of the Act to permit in-kind purchases and redemptions of Creation Units by persons that are affiliated persons or second tier affiliates of the Funds solely by virtue of one or more of the following: (a) Holding 5% or more, or in excess of 25% of the outstanding Shares of one or more Funds; (b) having an affiliation with a person with an ownership interest described in (a); or (c) holding 5% or more, or more than 25% of the Shares of one or more Affiliated Funds.
19. Applicants assert that no useful purpose would be served by prohibiting such affiliated persons from making in-kind purchases or in-kind redemptions of Shares of a Fund in Creation Units. The deposit procedures for in-kind purchases of Creation Units and the redemption procedures for in-kind redemptions will be the same for all purchases and redemptions. Deposit Instruments and Redemption Instruments will be valued in the same manner as those Portfolio Instruments currently held by the relevant Funds, and the valuation of the Deposit Instruments and Redemption Instruments will be made in the same manner and on the same terms for all, regardless of the identity of the purchaser or redeemer. Applicants do not believe that in-kind purchases and redemptions will result in abusive self-dealing or overreaching of the Fund.
20. Applicants also submit that the sale of Shares to and redemption of Shares from a Fund of Funds meets the standards for relief under sections 17(b) and 6(c) of the Act. Applicants note that any consideration paid for the purchase or redemption of Shares directly from a Fund will be based on the NAV of the Fund in accordance with policies and procedures set forth in the Fund's registration statement.
21. In addition, to the extent that a Fund operates in a master-feeder structure, applicants also request relief permitting the Feeder Funds to engage in in-kind creations and redemptions with the applicable Master Fund. Applicants state that the request for relief described above would not be sufficient to permit such transactions because the Feeder Funds and the applicable Master Fund could also be affiliated by virtue of having the same investment adviser. However, applicants believe that in-kind creations and redemptions between a Feeder
22. Applicants believe that: (a) With respect to the relief requested pursuant to section 17(b), the proposed transactions are fair and reasonable, and do not involve overreaching on the part of any person concerned, the proposed transactions are consistent with the policy of each Fund, and the proposed transactions are consistent with the general purposes of the Act; and (b) with respect to the relief requested pursuant to section 6(c), the requested exemption for the proposed transactions is appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the Act.
Applicants agree that any order of the Commission granting the requested relief will be subject to the following conditions:
1. The requested relief to permit ETF operations will expire on the effective date of any Commission rule under the Act that provides relief permitting the operation of actively-managed ETFs, other than the Master-Feeder Relief.
2. As long as a Fund operates in reliance on the requested order, the Shares of the Fund will be listed on a Listing Market.
3. Neither the Trust nor any Fund will be advertised or marketed as open-end investment company or a mutual fund. Any advertising material that describes the purchase or sale of Creation Units or refers to redeemability will prominently disclose that the Shares are not individually redeemable and that owners of the Shares may acquire Shares from the Fund and tender Shares for redemption to the Fund in Creation Units only.
4. The Web site, which is and will be publicly accessible at no charge, will contain, on a per Share basis for the Fund, the prior Business Day's NAV and the market closing price or Bid/Ask Price of the Shares, and a calculation of the premium or discount of the market closing price or Bid/Ask Price against such NAV.
5. No Adviser or Sub-Adviser, directly or indirectly, will cause any Authorized Participant (or any investor on whose behalf an Authorized Participant may transact with the Fund) to acquire any Deposit Instrument for the Fund, or its respective Master Fund, through a transaction in which the Fund could not engage directly.
6. On each Business Day, before the commencement of trading in Shares on the Fund's Listing Market, the Fund will disclose on the Web site the identities and quantities of the Portfolio Instruments held by the Fund (or its respective Master Fund) that will form the basis of the Fund's calculation of NAV at the end of the Business Day.
1. The members of the Fund of Funds Advisory Group will not control (individually or in the aggregate) a Fund (or its respective Master Fund) within the meaning of section 2(a)(9) of the Act. The members of the Fund of Funds Sub-Advisory Group will not control (individually or in the aggregate) a Fund (or its respective Master Fund) within the meaning of section 2(a)(9) of the Act. If, as a result of a decrease in the outstanding voting securities of a Fund, the Fund of Funds Advisory Group or the Fund of Funds Sub-Advisory Group, each in the aggregate, becomes a holder of more than 25 percent of the outstanding voting securities of a Fund, it will vote its voting securities of the Fund in the same proportion as the vote of all other holders of the Fund's voting securities. This condition does not apply to the Fund of Funds Sub-Advisory Group with respect to a Fund (or its respective Master Fund) for which the Fund of Funds Sub-Adviser or a person controlling, controlled by or under common control with the Fund of Funds Sub-Adviser acts as the investment adviser within the meaning of section 2(a)(20)(A) of the Act.
2. No Fund of Funds or Fund of Funds Affiliate will cause any existing or potential investment by the Fund of Funds in a Fund to influence the terms of any services or transactions between the Fund of Funds or a Fund of Funds Affiliate and the Fund (or its respective Master Fund) or a Fund Affiliate.
3. The board of directors or trustees of an Investing Management Company, including a majority of the independent directors or trustees, will adopt procedures reasonably designed to ensure that the Fund of Funds Adviser and any Fund of Funds Sub-Adviser are conducting the investment program of the Investing Management Company without taking into account any consideration received by the Investing Management Company or a Fund of Funds Affiliate from a Fund (or its respective Master Fund) or a Fund Affiliate in connection with any services or transactions.
4. Once an investment by a Fund of Funds in the Shares of a Fund exceeds the limit in section 12(d)(1)(A)(i) of the Act, the Board of the Fund (or its respective Master Fund), including a majority of the independent Board members, will determine that any consideration paid by the Fund (or its respective Master Fund) to the Fund of Funds or a Fund of Funds Affiliate in connection with any services or transactions: (i) Is fair and reasonable in relation to the nature and quality of the services and benefits received by the Fund (or its respective Master Fund); (ii) is within the range of consideration that the Fund (or its respective Master Fund) would be required to pay to another unaffiliated entity in connection with the same services or transactions; and (iii) does not involve overreaching on the part of any person concerned. This condition does not apply with respect to any services or transactions between a Fund (or its respective Master Fund) and its investment adviser(s), or any person controlling, controlled by or under common control with such investment adviser(s).
5. The Fund of Funds Adviser, or trustee or Sponsor, as applicable, will waive fees otherwise payable to it by the Fund of Funds in an amount at least equal to any compensation (including fees received pursuant to any plan adopted by a Fund (or its respective Master Fund) pursuant to rule 12b-1 under the Act) received from a Fund (or its respective Master Fund) by the Fund of Funds' Adviser, or trustee or Sponsor of the Investing Trust, or an affiliated person of the Fund of Funds' Adviser, or trustee or Sponsor of the Investing Trust, other than any advisory fees paid to the Fund of Funds' Adviser, or trustee, or Sponsor of an Investing Trust, or its affiliated person by the Fund (or its respective Master Fund), in connection with the investment by the Fund of Funds in the Fund. Any Fund of Funds Sub-Adviser will waive fees
6. No Fund of Funds or Fund of Funds Affiliate (except to the extent it is acting in its capacity as an investment adviser to a Fund (or its respective Master Fund)) will cause a Fund (or its respective Master Fund) to purchase a security in an Affiliated Underwriting.
7. The Board of the Fund (or its respective Master Fund), including a majority of the independent Board members, will adopt procedures reasonably designed to monitor any purchases of securities by the Fund (or its respective Master Fund) in an Affiliated Underwriting, once an investment by a Fund of Funds in the securities of the Fund exceeds the limit of section 12(d)(1)(A)(i) of the Act, including any purchases made directly from an Underwriting Affiliate. The Board will review these purchases periodically, but no less frequently than annually, to determine whether the purchases were influenced by the investment by the Fund of Funds in the Fund. The Board will consider, among other things: (i) Whether the purchases were consistent with the investment objectives and policies of the Fund (or its respective Master Fund); (ii) how the performance of securities purchased in an Affiliated Underwriting compares to the performance of comparable securities purchased during a comparable period of time in underwritings other than Affiliated Underwritings or to a benchmark such as a comparable market index; and (iii) whether the amount of securities purchased by the Fund (or its respective Master Fund) in Affiliated Underwritings and the amount purchased directly from an Underwriting Affiliate have changed significantly from prior years. The Board will take any appropriate actions based on its review, including, if appropriate, the institution of procedures designed to ensure that purchases of securities in Affiliated Underwritings are in the best interest of shareholders of the Fund.
8. Each Fund (or its respective Master Fund) will maintain and preserve permanently in an easily accessible place a written copy of the procedures described in the preceding condition, and any modifications to such procedures, and will maintain and preserve for a period of not less than six years from the end of the fiscal year in which any purchase in an Affiliated Underwriting occurred, the first two years in an easily accessible place, a written record of each purchase of securities in Affiliated Underwritings once an investment by a Fund of Funds in the securities of the Fund exceeds the limit of section 12(d)(1)(A)(i) of the Act, setting forth from whom the securities were acquired, the identity of the underwriting syndicate's members, the terms of the purchase, and the information or materials upon which the Board's determinations were made.
9. Before investing in a Fund in excess of the limits in section 12(d)(1)(A), a Fund of Funds will execute a FOF Participation Agreement with the Fund stating that their respective boards of directors or trustees and their investment advisers, or trustee and Sponsor, as applicable, understand the terms and conditions of the order, and agree to fulfill their responsibilities under the order. At the time of its investment in Shares of a Fund in excess of the limit in section 12(d)(1)(A)(i), a Fund of Funds will notify the Fund of the investment. At such time, the Fund of Funds will also transmit to the Fund a list of the names of each Fund of Funds Affiliate and Underwriting Affiliate. The Fund of Funds will notify the Fund of any changes to the list as soon as reasonably practicable after a change occurs. The Fund and the Fund of Funds will maintain and preserve a copy of the order, the FOF Participation Agreement, and the list with any updated information for the duration of the investment and for a period of not less than six years thereafter, the first two years in an easily accessible place.
10. Before approving any advisory contract under section 15 of the Act, the board of directors or trustees of each Investing Management Company, including a majority of the independent directors or trustees, will find that the advisory fees charged under such contract are based on services provided that will be in addition to, rather than duplicative of, the services provided under the advisory contract(s) of any Fund (or its respective Master Fund) in which the Investing Management Company may invest. These findings and their basis will be recorded fully in the minute books of the appropriate Investing Management Company.
11. Any sales charges and/or service fees charged with respect to shares of a Fund of Funds will not exceed the limits applicable to a fund of funds as set forth in NASD Conduct Rule 2830.
12. No Fund (or its respective Master Fund) will acquire securities of an investment company or company relying on section 3(c)(1) or 3(c)(7) of the Act in excess of the limits contained in section 12(d)(1)(A) of the Act, except to the extent that (i) the Fund (or its respective Master Fund) acquires securities of another investment company pursuant to exemptive relief from the Commission permitting the Fund (or its respective Master Fund) to acquire securities of one or more investment companies for short-term cash management purposes, (ii) the Fund acquires securities of the Master Fund pursuant to the Master-Feeder Relief, or (iii) the Fund invests in a Wholly-Owned Subsidiary that is a wholly-owned and controlled subsidiary of the Fund (or its respective Master Fund) as described in the application. Further, no Wholly-Owned Subsidiary will acquire securities of any other investment company or company relying on section 3(c)(1) or 3(c)(7) of the Act other than money market funds that comply with rule 2a-7 for short-term cash management purposes.
For the Commission, by the Division of Investment Management, under delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
The Exchange proposes to delete Rules 792, 794, 797, and 798 from the Phlx rules.
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 purpose of this proposed rule change is to delete Rules 792, 794, 797, and 798, which generally concern member organization governance and ownership. As discussed below, the Exchange has determined that these rules are anachronistic and no longer serve a purpose. Consequently, the Exchange is proposing to eliminate the rules from the rulebook to avoid any confusion that may be caused by retaining them.
Rule 792 concerns control of the voting stock of a member organization. The rule requires the officers and directors of a member organization that is a corporation to have working control of such member organization. To comply with the rule, such officers and directors must own at least fifty-five per cent (55%) of the voting stock, and shall have contributed at least thirty per cent (30%) of the total capital represented by all classes of stock. The rule allows the Exchange to waive these requirements in specific cases, when it appears that a majority of the officers and a majority of the directors are actively engaged in the conduct of the business of such member organization. As such, the rule is designed to ensure the management of a member organization has more than a simple majority vote and a significant investment in the firm.
The Exchange believes that the rule is no longer relevant. The rule was adopted at a time when the Exchange was owned by its members, and member organizations (then known as “member corporations”) were small and privately held. Many of the Exchange's current member organizations are large firms, which are publicly held and have a significant number of issued shares. As a consequence, it is unreasonable to require the management of the member organization to hold at least 55% of the voting stock and to contribute at least 30% of the member organization's total capital. Moreover, the Exchange notes that Phlx's affiliate exchanges NASDAQ OMX BX (“BX”) and The Nasdaq Stock Market (“Nasdaq”) do not have such restrictive ownership requirements. Accordingly, the Exchange does not believe the rule serves a regulatory purpose and it is accordingly proposing to delete the rule.
Rule 794 concerns notice of the assignment of the voting stock of a member organization. Specifically, the rule requires that no holder of ten per cent (10%) or more of the common or voting stock in a member organization that is a corporation may sell, assign, transfer, pledge, or hypothecate their holdings of common or voting stock in such member organization, except to such member organization or to officers or directors thereof, without written notice to the Exchange. The rule allows the Exchange to keep apprised of the significant holders of the member organization's voting stock. Such holders would exercise significant control of the member organizations.
Similar to Rule 792 discussed above, the Exchange believes that the rule is no longer relevant. The rule was adopted at a time when the Exchange was owned by its members, and member organizations were small and privately held. As noted, many of the Exchange's member organizations now are large firms, which are publicly held and have a significant number of issued shares. As a consequence, it is unreasonable to require notice of the sale, assignment, transfer, pledge, or hypothecation of 10% or more of the holdings of common or voting stock of the member organization. Moreover, to the extent a member organization is publicly held, the Exchange may readily access the largest holders of member organization's stock. To the extent the member organization is privately held, the Exchange may request a list of shareholders from the member organization. The ownership of a member organization is not a regulatory issue, but rather it was an issue to the Exchange when the requirement was adopted because it was member-owned. As such, influence of a member organization translated to influence of the Exchange. The Exchange is now a wholly-owned subsidiary of a publicly-traded company; therefore, member organization influence as owners of the Exchange is no longer an issue.
Rule 797 concerns loans to officers and directors of member organizations. Specifically, the rule prohibits a member organization from making any loan to any officer or director of the member organization. The Exchange believes that the rule is outdated and a remnant from when the Exchange was a member-owned organization. The Exchange notes that neither BX nor Nasdaq has a similar prohibition. Moreover, the Exchange notes that corporate law is generally a function of state law, which in most cases allows loans to officers and directors.
Rule 798 discusses what is required of a corporation to be issued a permit by the Exchange. A permit provides the right to a member to trade on the Exchange and the right to vote for a Member Representative Director. Permits are established by the Board of Directors. A corporation may be issued a permit by the Exchange if the corporation is incorporated under the laws of the Commonwealth of Pennsylvania, and all of its shares are owned by the Exchange. The rule further provides that such a corporate member whose shares are owned by the Exchange is not liable for dues. This
The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Rather it is designed to promote competition among exchanges by removing archaic and overly restrictive rules in comparison to the rules of other exchanges. Thus, the Exchange is able to compete without the needless restrictions currently imposed by the deleted rules. Last, the proposed changes promote clarity in the application of the Exchange's rules by eliminating unneeded rules.
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 from the date on which it was filed, or such shorter time as the Commission may designate, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) 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 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 to determine whether the proposed rule change 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 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 amend Rule 132.30(9)—Equities to conform the Exchange's rules to industry-wide standards for recording the capacity in which a member organization executes a transaction. 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 Supplementary Material .30 of Rule 132—Equities (“Rule 132”) to conform the Exchange's rules to industry-wide standards for recording the capacity in which a member organization executes a transaction. To effect this change, the Exchange proposes to eliminate the current requirement to identify the account for which an order was executed and require instead that clearing members and member organizations submit account type indicators (“ATI”) reflecting the capacity in which the member organization executed a transaction (
Rule 132 requires clearing member organizations submitting transactions to comparison to include the audit trail data elements set forth in Supplementary Material .30. Rule 132.30(9) requires that all orders submitted to the Exchange include specified trade data elements, including “[w]hether the account for which the order was executed was that of a member or member organization or of a non-member or non-member organization.” The Exchange's affiliate, New York Stock Exchange LLC (“NYSE”), which has the same rule,
The Exchange proposes to amend the current requirement in subsection (9) of Rule 132.30 that clearing member organizations identify whether the account for which an order was executed was that of a member or member organization or of a non-member or non-member organization. The current requirement can be satisfied by entering the appropriate ATI from a list of ATIs that have evolved over the past 30 years.
In place of this cumbersome process, the Exchange proposes to require member organizations to identify the capacity in which the member organization executed the transaction as follows: agency, principal or riskless principal.
By requiring member organizations to identify the capacity in which a broker-dealer enters an order, the Exchange would be harmonizing its order entry requirements with those of other national securities exchanges and the NYSE.
The Exchange will publish an Information Memo advising member organizations of the proposed change that will provide guidance of which ATIs should be submitted in connection with agency, principal, or riskless principal capacity.
The Exchange believes that the proposed rule change 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 that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not intended to address competitive issues, but rather it is designed to provide greater harmonization between Exchange and other markets in the marking of orders, resulting in less burdensome and more efficient order entry.
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)
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.
On October 6, 2015, Financial Industry Regulatory Authority, Inc. (“FINRA”) filed with the Securities and Exchange Commission (“SEC” or “Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Exchange Act”)
The proposed rule change was published for comment in the
Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to the proposed rule change, not does it mean that the Commission will ultimately disapprove the proposed rule change. Rather, as discussed below, the Commission seeks additional input on the proposed rule change, as modified by Partial Amendment No. 1, and on the issues presented by the proposal.
In its
FINRA stated that most trading of agency and GSE Mortgage-Backed Security (“MBS”) takes place in the TBA market, which is characterized by transactions with forward settlements as long as several months past the trade date.
FINRA stated that historically, the TBA market is one of the few markets where a significant portion of activity is unmargined, thereby creating a potential risk arising from counterparty exposure. With a view to this gap between the TBA market versus other markets, FINRA noted the TMPG recommended standards (the “TMPG best practices”) regarding the margining of forward-settling agency MBS transactions.
Accordingly, to establish margin requirements for Covered Agency Transactions, FINRA proposed to redesignate current paragraph (e)(2)(H) of Rule 4210 as new paragraph (e)(2)(I), to add new paragraph (e)(2)(H) to Rule 4210, to make conforming revisions to paragraphs (a)(13)(B)(i), (e)(2)(F), (e)(2)(G), (e)(2)(I), as redesignated by the rule change, and (f)(6), and to add to the rule new Supplementary Materials .02 through .05. The proposed rule change is informed by the TMPG best practices and is described in further detail below.
FINRA intends
Proposed
• TBA transactions, as defined in FINRA Rule 6710(u), inclusive of ARM transactions, for which the difference between the trade date and contractual settlement date is greater than one business day;
• Specified Pool Transactions, as defined in FINRA Rule 6710(x), for which the difference between the trade date and contractual settlement date is greater than one business day; and
• CMOs, as defined in FINRA Rule 6710(dd), issued in conformity with a program of an agency, as defined in FINRA Rule 6710(k), or a GSE, as defined in FINRA Rule 6710(n), for which the difference between the trade date and contractual settlement date is greater than three business days.
In
• The term “bilateral transaction” means a Covered Agency Transaction that is not cleared through a registered clearing agency as defined in paragraph (f)(2)(A)(xxviii) of Rule 4210;
• The term “counterparty” means any person that enters into a Covered Agency Transaction with a member and includes a “customer” as defined in paragraph (a)(3) of Rule 4210;
• The term “deficiency” means the amount of any required but uncollected maintenance margin and any required but uncollected mark to market loss;
• The term “gross open position” means, with respect to Covered Agency Transactions, the amount of the absolute dollar value of all contracts entered into by a counterparty, in all CUSIPs; provided, however, that such amount shall be computed net of any settled
• The term “maintenance margin” means margin equal to two percent of the contract value of the net long or net short position, by CUSIP, with the counterparty;
• The term “mark to market loss” means the counterparty's loss resulting from marking a Covered Agency Transaction to the market;
• The term “mortgage banker” means an entity, however organized, that engages in the business of providing real estate financing collateralized by liens on such real estate;
• The term “round robin” trade means any transaction or transactions resulting in equal and offsetting positions by one customer with two separate dealers for the purpose of eliminating a turnaround delivery obligation by the customer; and
• The term “standby” means contracts that are put options that trade over-the-counter (“OTC”), as defined in paragraph (f)(2)(A)(xxvii) of Rule 4210, with initial and final confirmation procedures similar to those on forward transactions.
The
Paragraph (e)(2)(H)(ii)a. of the proposed rule provides that all Covered Agency Transactions with any counterparty, regardless of the type of account to which booked, are subject to the provisions of paragraph (e)(2)(H) of the rule. However, paragraph (e)(2)(H)(ii)a.1. of the proposed rule provides that with respect to Covered Agency Transactions with any counterparty that is a Federal banking agency, as defined in 12 U.S.C. 1813(z) under the Federal Deposit Insurance Act, central bank, multinational central bank, foreign sovereign, multilateral development bank, or the Bank for International Settlements, a member may elect not to apply the margin requirements specified in paragraph (e)(2)(H) provided the member makes a written risk limit determination for each such counterparty that the member shall enforce pursuant to paragraph (e)(2)(H)(ii)b., as discussed below.
Paragraph (e)(2)(H)(ii)b. of the rule provides that members that engage in Covered Agency Transactions with any counterparty shall make a determination in writing of a risk limit for each such counterparty that the member shall enforce. The rule provides that the risk limit determination shall be made by a designated credit risk officer or credit risk committee in accordance with the member's written risk policies and procedures. Further, in connection with risk limit determinations, the proposed rule establishes new Supplementary Material .05. The new Supplementary Material provides that, for purposes of any risk limit determination pursuant to paragraphs (e)(2)(F), (e)(2)(G) or (e)(2)(H) of the rule:
○ If a member engages in transactions with advisory clients of a registered investment adviser, the member may elect to make the risk limit determination at the investment adviser level, except with respect to any account or group of commonly controlled accounts whose assets managed by that investment adviser constitute more than 10 percent of the investment adviser's regulatory assets under management as reported on the investment adviser's most recent Form ADV;
○ Members of limited size and resources that do not have a credit risk officer or credit risk committee may designate an appropriately registered principal to make the risk limit determinations;
○ The member may base the risk limit determination on consideration of all products involved in the member's business with the counterparty, provided the member makes a daily record of the counterparty's risk limit usage; and
○ A member shall consider whether the margin required pursuant to the rule is adequate with respect to a particular counterparty account or all its counterparty accounts and, where appropriate, increase such requirements.
•
Paragraph (e)(2)(H)(ii)c. provides that the margin requirements specified in paragraph (e)(2)(H) of the rule shall not apply to:
○ Covered Agency Transactions that are cleared through a registered clearing agency, as defined in FINRA Rule 4210(f)(2)(A)(xxviii), and are subject to the margin requirements of that clearing agency; and
○ any counterparty that has gross open positions in Covered Agency Transactions with the member amounting to $2.5 million or less in aggregate, if the original contractual settlement for all such transactions is in the month of the trade date for such transactions or in the month succeeding the trade date for such transactions and the counterparty regularly settles its Covered Agency Transactions on a Delivery Versus Payment (“DVP”) basis or for cash; provided, however, that such exception from the margin requirements shall not apply to a counterparty that, in its transactions with the member, engages in dollar rolls, as defined in FINRA Rule 6710(z),
•
Paragraph (e)(2)(H)(ii)d. of the proposed rule provides that, on any net long or net short position, by CUSIP, resulting from bilateral transactions with a counterparty that is an exempt account, no maintenance margin shall be required. However, the rule provides that such transactions must be marked to the market daily and the member must collect any net mark to market
•
Paragraph (e)(2)(H)(ii)e. of the rule provides that, on any net long or net short position, by CUSIP, resulting from bilateral transactions with a counterparty that is not an exempt account, maintenance margin, plus any net mark to market loss on such transactions, shall be required margin, and the member shall collect the deficiency, as defined in paragraph (e)(2)(H)(i)d. of the rule, unless otherwise provided under paragraph (e)(2)(H)(ii)f. of the rule. The rule provides that if the deficiency is not satisfied by the close of business on the next business day after the business day on which the deficiency arises, the member shall be required to deduct the amount of the deficiency from net capital as provided in Exchange Act Rule 15c3-1 until such time the deficiency is satisfied.
FINRA believes that the maintenance margin requirement is appropriate because it aligns with the potential risk as to non-exempt accounts engaging in Covered Agency Transactions and the specified two percent amount is consistent with other measures in this area. The rule provides that no maintenance margin is required if the original contractual settlement for the Covered Agency Transaction is in the month of the trade date for such transaction or in the month succeeding the trade date for such transaction and the customer regularly settles its Covered Agency Transactions on a DVP basis or for cash; provided, however, that such exception from the required maintenance margin shall not apply to a non-exempt account that, in its transactions with the member, engages in dollar rolls, as defined in FINRA Rule 6710(z), or round robin trades, as defined in proposed FINRA Rule 4210(e)(2)(H)(i)i., or that uses other financing techniques for its Covered Agency Transactions.
•
Paragraph (e)(2)(H)(ii)f. of the rule provides that any deficiency, as set forth in paragraph (e)(2)(H)(ii)e. of the rule, or mark to market losses, as set forth in paragraph (e)(2)(H)(ii)d. of the rule, with a single counterparty shall not give rise to any margin requirement, and as such need not be collected or charged to net capital, if the aggregate of such amounts with such counterparty does not exceed $250,000 (“the de minimis transfer amount”). The proposed rule provides that the full amount of the sum of the required maintenance margin and any mark to market loss must be collected when such sum exceeds the de minimis transfer amount.
•
Paragraph (e)(2)(H)(ii)g. of the rule provides that unrealized profits in one Covered Agency Transaction position may offset losses from other Covered Agency Transaction positions in the same counterparty's account and the amount of net unrealized profits may be used to reduce margin requirements. With respect to standbys, only profits (in-the-money amounts), if any, on long standbys shall be recognized.
The proposed rule change makes a number of revisions to paragraphs (e)(2)(F) and (e)(2)(G) of FINRA Rule 4210:
• The proposed rule change revises the opening sentence of paragraph (e)(2)(F) to clarify that the paragraph's scope does not apply to Covered Agency Transactions as defined pursuant to new paragraph (e)(2)(H). Accordingly, as amended, paragraph (e)(2)(F) states: “Other than for Covered Agency Transactions as defined in paragraph (e)(2)(H) of this Rule . . . ” FINRA believes that this clarification will help demarcate the treatment of products subject to paragraph (e)(2)(F) versus new paragraph (e)(2)(H). For similar reasons, the proposed rule change revises paragraph (e)(2)(G) to clarify that the paragraph's scope does not apply to a position subject to new paragraph (e)(2)(H) in addition to paragraph (e)(2)(F) as the paragraph currently states. As amended, the parenthetical in the opening sentence of the paragraph states: “([O]ther than a position subject to paragraph (e)(2)(F) or (e)(2)(H) of this Rule).”
• Current, pre-revision paragraph (e)(2)(H)(i) provides that members must maintain a written risk analysis methodology for assessing the amount of credit extended to exempt accounts pursuant to paragraphs (e)(2)(F) and (e)(2)(G) of the rule which shall be made available to FINRA upon request. The proposed rule change places this language in paragraphs (e)(2)(F) and (e)(2)(G) and deletes it from its current location. Accordingly, FINRA proposes to move to paragraphs (e)(2)(F) and (e)(2)(G): “Members shall maintain a written risk analysis methodology for assessing the amount of credit extended
• The proposed rule change revises the references in paragraphs (e)(2)(F) and (e)(2)(G) to the limits on net capital deductions as set forth in current paragraph (e)(2)(H) to read “paragraph (e)(2)(I)” in conformity with that paragraph's redesignation pursuant to the rule change.
Under current paragraph (e)(2)(H) of FINRA Rule 4210, in brief, a member must provide prompt written notice to FINRA and is prohibited from entering into any new transactions that could increase the member's specified credit exposure if net capital deductions taken by the member as a result of marked to the market losses incurred under paragraphs (e)(2)(F) and (e)(2)(G), over a five day business period, exceed: (1) For a single account or group of commonly controlled accounts, five percent of the member's tentative net capital (as defined in Exchange Act Rule 15c3-1); or (2) for all accounts combined, 25 percent of the member's tentative net capital (again, as defined in Exchange Act Rule 15c3-1). As discussed above, the proposed rule change redesignates current paragraph (e)(2)(H) of the rule as paragraph (e)(2)(I), deletes current paragraph (e)(2)(H)(i), and makes conforming revisions to paragraph (e)(2)(I), as redesignated, for the purpose of clarifying that the provisions of that paragraph are meant to include Covered Agency Transactions as set forth in new paragraph (e)(2)(H). In addition, the proposed rule change clarifies that de minimis transfer amounts must be included toward the five percent and 25 percent thresholds as specified in the rule, as well as amounts pursuant to the specified exception under paragraph (e)(2)(H) for gross open positions of $2.5 million or less in aggregate.
Redesignated paragraph (e)(2)(I) of the rule provides that, in the event that the net capital deductions taken by a member as a result of deficiencies or marked to the market losses incurred under paragraphs (e)(2)(F) and (e)(2)(G) of the rule (exclusive of the percentage requirements established thereunder), plus any mark to market loss as set forth under paragraph (e)(2)(H)(ii)d. of the rule and any deficiency as set forth under paragraph (e)(2)(H)(ii)e. of the rule, and inclusive of all amounts excepted from margin requirements as set forth under paragraph (e)(2)(H)(ii)c.2. of the rule or any de minimis transfer amount as set forth under paragraph (e)(2)(H)(ii)f. of the rule, exceed:
• for any one account or group of commonly controlled accounts, 5 percent of the member's tentative net capital (as such term is defined in Exchange Act Rule 15c3-1), or
• for all accounts combined, 25 percent of the member's tentative net capital (as such term is defined in Exchange Act Rule 15c3-1), and,
• such excess as calculated in paragraphs (e)(2)(I)(i)a. or b. of the rule continues to exist on the fifth business day after it was incurred,
If the Commission approves the proposed rule change, FINRA proposed to announce the effective date of the proposed rule change in a
In Partial Amendment No. 1, FINRA responds to comments received on the Notice
In its original filing, FINRA noted that the scope of Covered Agency Transactions
Commenters expressed concerns that FINRA should not include multifamily and project loan securities within the scope of the proposed margin requirements.
In response, FINRA has reconsidered and does not propose at this time to require that members apply the proposed margin requirements,
Based on FINRA's analysis of transactional data, multifamily and project loan securities constitute a small portion of the Covered Agency Transactions market overall,
FINRA is aware that the proposed exception for multifamily and project loan securities may potentially impact the estimates of expected mark to market margin requirements presented in the Statement on Burden on Competition section of the original filing. Specifically, the original analysis was based on the net exposure to any single counterparty in any TBA market transaction, and therefore may have included situations where the exposure on an open position in a single family TBA market transaction could be offset by an opposite exposure on an open position in a multifamily TBA market transaction with the same counterparty.
As such, the proposed exception for multifamily and project loan securities may alter the net margin calculation for members. Members that transact strictly in multifamily TBA market securities would find that their margin obligations would be lower under this formulation, and thus have lower burdens imposed, if the member elects not to apply the margin requirements specified in paragraph (e)(20(H) of the rule as permitted by proposed paragraph (e)(2)(H)(ii)a.2. But members who transact in both single and multifamily TBA market securities with a given counterparty might find that their margin obligations could be higher or lower in the presence of the exception. In addition, these members would likely incur additional costs to monitor single and multifamily TBA market transactions separately.
While the amendment proposed in Partial Amendment No. 1 may impact the margin requirements for some members, FINRA has reason to expect that these impacts would be small based on a review of TBA market transactions. First, the size of the multifamily and project loan securities market is estimated to be relatively small compared to the single family segment of the market. According to the Financial Accounts of the United States published by the Federal Reserve Board, as of the third quarter of 2015, there were approximately $189.9 billion of multifamily residential agency and GSE-backed mortgage pools outstanding, compared to approximately $1.5 trillion for single family mortgage pools.
To estimate the impact of the exception on broker-dealers and mortgage banks, FINRA staff also analyzed transactional data provided by a major clearing broker-dealer. This
Of the 261 accounts that had exposure to multifamily and project loan securities, only nine also had open transactions in single family securities. While the size of the open transactions for multifamily securities in these nine accounts is larger than that for single family securities in these same nine accounts that had exposure to both types of securities, the difference is not statistically significant due to the small sample size and high variance.
The average number of days until settlement is also larger, being approximately 79 days for the open transactions in multifamily securities versus 50 days for the transactions in single-family securities.
The evidence presented here suggests that some brokers may have sizable positions in multifamily securities. However, as evidenced by the data, these positions are likely to be maintained by a small number of brokers and the size of the multifamily TBA market is currently a small portion of the overall TBA market that does not potentially represent any systemic risk. Further, in the sample examined, only nine brokers with transactions in multifamily TBA market securities also had open transactions in single family TBA market securities, suggesting there is limited correlation in counterparty risk across the two segments of the market.
Commenters said that considerable operational and systems work will be needed to comply with the proposed rule change, including changes to or renegotiation of Master Securities Forward Transaction Agreement (“MSFTA”) documentation and other agreements.
In response, FINRA believes that a phased implementation should be appropriate. FINRA proposes that the risk limit determination requirements as set forth in paragraphs (e)(2)(F), (e)(2)(G) and (e)(2)(H) of Rule 4210 and proposed Supplementary Material .05 of the rule become effective six months from the date the proposed rule change is approved by the Commission. FINRA proposes that the remainder of the proposed rule change become effective 18 months from the date the proposed rule change is approved by the Commission.
The text of the proposed rule change, as amended by Partial Amendment No. 1, is available at the principal office of FINRA, on FINRA's Web site at
As noted above, the Commission received 109 comment letters on the proposed rule change, including 54 Type A and B letters.
Some commenters supported the proposed rule change's goal of addressing counterparty risk in the TBA market and reducing systemic risk.
In response, other than with respect to multifamily and project loan securities, as discussed above, FINRA does not propose to modify the proposed rule's application to Covered Agency
In the original filing, FINRA discussed how it had considered, among other things, various options for narrowing the scope of Covered Agency Transactions or extending the specified settlement cycles.
As set forth more fully in the original filing, non-exempt accounts
In response, FINRA does not propose to modify the maintenance margin requirement. Maintenance margin is a mainstay of margin regimes in the securities industry, and as such the need to appropriately track transactions should be well understood to market participants. FINRA is sensitive to commenters' concerns as to the potential impact of the requirement on members and their non-exempt customer accounts. For this reason, as set forth more fully in the original filing and as discussed further below, FINRA revised the proposal to include an exception tailored to customers engaging in non-margined, cash account business. FINRA noted that the requirement is designed to be aligned to the potential risk in this area and that the two percent amount approximates rates charged for corresponding products in other contexts.
As set forth more fully in the original filing,
Commenters expressed concern that the cash account exceptions are difficult to implement operationally and are in need of further guidance.
In response, FINRA does not propose to modify the cash account exceptions as proposed in the original filing.
Several commenters suggested that the proposed rule should require the posting of two-way or bilateral margin in Covered Agency Transactions, so that members and their counterparties in such transactions would both post and receive margin.
In response, FINRA noted in the original filing that it supported the use of two-way margining as a means of managing risk.
As discussed above, the proposed rule sets forth an exception from the proposed margin requirements for counterparties whose gross open positions in Covered Agency Transactions with the member amount to $2.5 million or less in aggregate, as specified by the rule. As set forth more fully in the original filing, the proposed rule also sets forth, for a single counterparty, a $250,000 de minimis transfer amount up to which margin need not be collected or charged to net capital, as specified by the rule.
In response, FINRA does not propose to alter the $2.5 million amount for gross open positions and does not propose to alter the $250,000 de minimis transfer amount. As discussed in the original filing, FINRA believes that these amounts are appropriately tailored to smaller accounts that are less likely to pose systemic risk.
As set forth more fully in the original filing, the proposed rule provides that, with respect to exempt accounts, if a mark to market loss, or, with respect to non-exempt accounts, a deficiency, is not satisfied by the close of business on the next business day after the business day on which the mark to market loss or deficiency arises, the member must deduct the amount of the mark to market loss or deficiency from net capital as provided in Exchange Act Rule 15c3-1.
In response, FINRA does not propose to modify the timing for margin collection and position liquidation as set forth in the proposed rule change. With respect to position liquidation, while it is true that longstanding language under FINRA Rule 4210(f)(6) sets forth a 15-day period, more recent requirements adopted under the portfolio margin rules, which have been in widespread use among members, set forth a three-day time frame.
As set forth more fully in the original filing, under current (pre-revision) paragraph (e)(2)(H) of the rule, a member must provide written notification to FINRA and is prohibited from entering into any new transactions that could increase credit exposure if net capital deductions, over a five day period, exceed: (1) For a single account or group of commonly controlled accounts, five percent of the member's tentative net capital; or (2) for all accounts combined, 25 percent of the member's tentative net capital.
As set forth more fully in the original filing, the proposed rule provides that members may treat mortgage bankers that use Covered Agency Transactions to hedge their pipeline of commitments as exempt accounts for purposes of paragraph (e)(2)(H) of the rule.
In response, as FINRA noted in the original filing, the type of monitoring set forth in the proposed rule is not a wholly new requirement.
In response to MBA's suggestion that FINRA did not do sufficient economic analysis as to the rule's impact on mortgage bankers, FINRA notes the following. First, MBA stated that FINRA's analysis consisted of a cursory examination of the TBA market over a short period of time using data from one broker-dealer across 35 days leading up to and including May 30, 2014.
Second, MBA suggested that FINRA's analysis did not control the results of its study against typical market volatility, against the expected withdrawal of the Federal Reserve as an active buyer of TBA-eligible MBS or even to follow its sample data through other periods throughout 2014.
Third, MBA suggested that FINRA's analysis did not appear to evaluate the financial and other costs the proposed rule change would impose on mortgage bankers and borrowers and that FINRA did not evaluate the impact to consumers and other borrowers resulting from an increase in mortgage rates and reduction in competition that would arise due to the proposed rule change.
Fourth, MBA suggested that FINRA neglected to analyze the impact of mortgage bankers being forced to switch from mandatory to best efforts delivery commitments in the process forsaking significant amounts of their gain on sale or limiting their competitiveness in various products.
One commenter sought clarification as to whether paragraphs (e)(2)(F), (e)(2)(H) and (e)(2)(G) of the rule require a member to write a separate risk limit determination for the types of products addressed by each of those paragraphs for each counterparty.
As set forth more fully in the original filing, proposed Supplementary Material .05 requires in part that, for purposes of any risk limit determination pursuant to paragraphs (e)(2)(F), (e)(2)(G), or (e)(2)(H) of Rule 4210, if a member engages in transactions with advisory clients of a registered investment adviser, the member may elect to make the risk limit determination at the investment adviser level, except with respect to any account or group of commonly controlled accounts whose assets managed by that investment adviser constitute more than 10 percent of the investment adviser's regulatory assets under management as reported on the investment adviser's most recent Form ADV.
In response, FINRA believes it is consistent with the rule's intent that the 10 percent threshold may be calculated as of the time of the member's credit review pursuant to its written risk policies and procedures.
As set forth more fully in the original filing, the proposed rule provides that, with respect to Covered Agency Transactions with any counterparty that is a federal banking agency, as defined in 12 U.S.C. 1813(z),
Some commenters requested that FINRA amend the rule so that members would have discretion to except Federal Home Loan Banks (“FHLB”) and Farm Credit Banks (“FCB”) from the proposed margin requirements.
Several commenters expressed concerns, as set forth below, that FINRA believes raise issues that are outside the scope of the proposed rule change. As such, in response, FINRA does not propose any revisions to the proposed rule change. However, FINRA welcomes further discussion of these issues.
• A few commenters said that the proposed rule change should address the responsibilities of introducing and clearing firms, including such issues as assignment of responsibility for capital charges to one party versus the other for purposes of FINRA Rule 4311 when engaging in Covered Agency Transactions. FINRA notes that the proposed rule change is not intended to address issues under Rule 4311.
• A commenter said FINRA should work with international regulators to harmonize the proposed requirements with other regulatory regimes.
• A couple of commenters said that smaller and medium firms may find it difficult to develop in-house systems to comply with the proposed rule change.
• A commenter said that FINRA should coordinate the rule change with the former Mortgage-Backed Securities Clearing Corporation, now part of the Fixed Income Clearing Corporation.
• Two commenters said that FINRA should provide guidance that would permit collective investment trusts, common trust funds or collective trust funds to be treated as exempt accounts.
The Commission is instituting proceedings pursuant to Exchange Act Section 19(b)(2)(B) to determine whether the proposed rule change should be approved or disapproved.
Pursuant to Exchange Act Section 19(b)(2)(B),
FINRA, in proposing margin requirements for Covered Agency Transactions, stated that it believes unsecured credit exposures that exist in the TBA market today can lead to financial losses by dealers.
The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues raised by the proposed rule change, as modified by Partial Amendment No. 1. In particular, the Commission invites the written views of interested persons on whether the proposed rule change, as modified by Partial Amendment No. 1, is inconsistent with Section 15A(b)(6), or any other provision, of the Exchange
Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
Interested persons are invited to submit written data, views, and arguments by February 11, 2016 concerning whether the proposed rule change should be approved or disapproved. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 7, 2016. In light of the concerns raised by the proposed rule change, as modified by Partial Amendment No. 1, as discussed above, the Commission invites additional comment on the proposed rule change, as modified by Partial Amendment No. 1, as the Commission continues its analysis of whether the proposed rule change, as modified by Partial Amendment No. 1, is consistent with Section 15A(b)(6), or any other provision of the Exchange Act, or the rules and regulations thereunder. The Commission is asking that commenters address the merits of FINRA's statements in support of its proposal, as modified by Partial Amendment No. 1, as well as the comments received on the proposal, in addition to any other comments they may wish to submit about the proposed rule change, as modified by Partial Amendment No. 1. Specifically, the Commission is considering and requesting comment, including empirical data in support of comments, in response to the following questions:
1. Will the proposed rule change, as modified by Partial Amendment No. 1, affect the operation and structure of the TBA markets as it exists today? If so, how?
2. What are commenters' views with respect to the benefits and costs of the proposed rule change, as modified by Partial Amendment No. 1? What implementation and ongoing costs will result, if any, from complying with the proposed rule change, as modified by Partial Amendment No. 1?
3. Will the proposed rule change, as modified by Partial Amendment No. 1, affect FINRA member firms differently based on their size (
4. What are commenters' views on the impact of the proposed rule change, as modified by Partial Amendment No. 1, on other affected parties, such as non-member firms and other market participants?
5. What are commenters' views on the exception for multifamily housing and project loan securities in the proposed rule change, as modified by Partial Amendment No. 1? Does the proposed exception for multifamily and project loan securities pose any risks to FINRA members, as well as other market participants? If so, please describe these risks?
6. What are commenters' views on the implementation time required to comply with the proposed rule change, as modified by Partial Amendment No. 1?
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 the fee schedule under Exchange Rule 7018(a) with respect to execution and routing of orders in securities priced at $1 or more per share.
The text of the proposed rule change is also 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 is proposing to amend the fee schedule under BX Rule 7018(a), relating to fees and credits provided for orders in securities priced and $1 or more per share that execute on BX.
Under BX Rule 7018(a), the Exchange provides credits to member firms that access liquidity on BX. The Exchange is proposing to add a new credit tier for orders that access liquidity (excluding orders with midpoint pegging and excluding orders that receive price improvement and execute against an order with midpoint pegging). The new credit tier will be for a member that adds and accesses liquidity equal to or exceeding 0.50% of total consolidated volume during a month. The proposed credit for the tier will be $0.0017 per share executed.
The Exchange also proposes to amend a fee for providing liquidity through the NASDAQ OMX BX Equities System (the “System”), by eliminating one of the criteria applicable to the fee and decreasing the fee. Specifically, the current fee for a displayed order entered by a member that (i) adds liquidity equal to or exceeding 0.25% of total Consolidated Volume during a month; and (ii) adds and accesses liquidity equal to or exceeding 0.50% of total Consolidated Volume during a month is $0.0016 per share executed. The Exchange proposes to eliminate criteria (i) and decrease the fee to $0.0014 per share executed.
The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
The Commission and the courts have repeatedly expressed their preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. In Regulation NMS, for example, the Commission indicated that market forces should generally determine the price of non-core market data because national market system regulation “has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.”
Further, “[n]o one disputes that competition for order flow is `fierce.' . . . As the SEC explained, `[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution'; [and] `no exchange can afford to take its market share percentages for granted' because `no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers'. . . .”
The Exchange believes that the proposed new credit tier for orders that access liquidity (excluding orders with midpoint pegging and excluding orders that receive price improvement and execute against an order with midpoint pegging), entered by a member that adds and accesses liquidity equal to or exceeding 0.50% of total consolidated volume during a month is reasonable because it provides an additional opportunity for market participants to receive credits for participation on BX and the Exchange desires to further incentivize member firms to participate in the Exchange by removing liquidity. The Exchange also believes that the proposed rule change is an equitable allocation and is not unfairly discriminatory because the Exchange will provide the same credit to all similarly situated members that achieve the level of total consolidated volume required by the tier.
BX believes that the proposed fee decrease from $0.0016 per share executed to $0.0014 per share executed, as well as the elimination of the first criteria below (criteria (i)), for a displayed order entered by a member that (i) adds liquidity equal to or exceeding 0.25% of total Consolidated Volume during a month; and (ii) adds and accesses liquidity equal to or exceeding 0.50% of total Consolidated Volume during a month are reasonable because decreasing the fee and eliminating the first criteria will provide firms more flexibility in attaining the tier and further incentivize participation in the market.
The Exchange also believes that this proposed rule change is an equitable allocation and is not unfairly discriminatory because it will further encourage market participant activity and will also support price discovery and liquidity provision. The Exchange also believes this proposed rule change is an equitable allocation and is not unfairly discriminatory because the Exchange will apply the same fee and credit to all similarly situated members.
Finally, BX notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive or credit opportunities available at other venues to be more favorable. In such an environment, BX must continually adjust its fees and credits to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. The changes reflect this environment because they reflect changes to both credits and fees designed to incentivize changes in market participant behavior to the benefit of the market overall.
The Exchange does not believe that the proposed rule change will result in
In sum, if the changes proposed herein are unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets.
No written comments were either solicited or received.
The foregoing 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)
The Exchange proposes to amend the fees for NYSE ArcaBook to: (1) Establish a multiple data feed fee; (2) discontinue fees relating to managed non-display; and (3) modify the application of the non-professional user fee cap. 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,
The Exchange proposes to amend the fees for NYSE ArcaBook,
• Establish a multiple data feed fee; and
• Discontinue fees relating to managed non-display
The Exchange also proposes to modify the application of the non-professional fee cap, effective April 1, 2016.
The Exchange proposes to establish a new monthly fee, the “Multiple Data Feed Fee,” that would apply to data recipients that take a data feed for a market data product in more than two locations. Data recipients taking NYSE ArcaBook in more than two locations would be charged $200 per additional location per month. No new reporting would be required.
Non-Display Use of NYSE Arca market data means accessing, processing, or consuming NYSE Arca market data delivered via direct and/or Redistributor
The Exchange proposes to discontinue the fees related to Managed Non-Display Services because of the limited number of Redistributors that have qualified for Managed Non-Display Services and the administrative burdens associated with the program in light of the limited number of Redistributors that have qualified for Managed Non-Display Services. As proposed, all data recipients currently using NYSE ArcaBook on a managed non-display basis would be subject to the same access fee of $2,000 per month, and the same non-display services fees,
For display use of the NYSE ArcaBook data feed, the Fee Schedule sets forth a Professional User Fee of $40 per user per month and a Non-Professional User Fee than [sic] ranges between $3 and $10 per user per month, depending on the number of users. These user fees generally apply to each display device that has access to NYSE ArcaBook.
For customers that are broker-dealers, these fees are subject to a $40,000 per month cap on non-professional user fees (the “Non-Professional User Fee Cap”).
The Exchange proposes to eliminate the Professional User Exception for NYSE ArcaBook effective April 1, 2016. The Exchange notes the Professional User Exception was an accommodation, the benefits of which were, when implemented, outweighed by the complexity of the terms of the exception and the burdens on customers and on the Exchange that have to track compliance with the exception. In addition, the Exchange notes that the
Accordingly, as proposed, the Non-Professional User Fee Cap would no longer include any professional users that receive NYSE ArcaBook data feed and the Professional User fee of $40 per user per month would apply with respect to all Professional Users.
The Non-Professional User Fee Cap applies, as noted above, to any broker-dealer for non-professional subscribers that maintain brokerage accounts with the broker-dealer. The Exchange proposes to specify in the Fee Schedule that the cap applies to broker-dealers only.
The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,
The fees are also equitable and not unfairly discriminatory because they will apply to all data recipients that choose to subscribe to NYSE ArcaBook.
The Exchange believes that it is reasonable to require data recipients to pay a modest additional fee [sic] taking a data feed for a market data product in more than two locations, because such data recipients can derive substantial value from being able to consume the product in as many locations as they want. In addition, there are administrative burdens associated with tracking each location at which a data recipient receives the product. The Multiple Data Feed Fee is designed to encourage data recipients to better manage their requests for additional data feeds and to monitor their usage of data feeds. The proposed fee is designed to apply to data feeds received in more than two locations so that each data recipient can have one primary and one backup data location before having to pay a multiple data feed fee. The Exchange notes that this pricing is consistent with similar pricing adopted in 2013 by the Consolidated Tape Association (“CTA”).
The Exchange believes that it is reasonable to discontinue Managed Non-Display Fees. As the Exchange noted in the 2013 Non-Display Filing, the Exchange determined at that time that its fee structure, which was then based primarily on counting both display and non-display devices, was no longer appropriate in light of market and technology developments. Since then, the Exchange also modified its approach to display and non-display fees with changes to the fees as reflected in the 2014 Non-Display Filing.
The Exchange believes that it is reasonable to modify the application of the non-professional user fee cap by eliminating the Professional User Exception. The Exchange notes that the Professional User Exception was an accommodation, the benefits of which were, when implemented, outweighed by the complexity of the terms of the exception and the burdens on customers and on the Exchange entailed with tracking compliance with the exception. Eliminating the Professional User Exception would make the application of the Non-Professional User Fee Cap simpler and ease administrative burdens for customers and the Exchange by removing an administrative exception that has had limited use and application.
The Exchange believes that specifying in the Fee Schedule that the Non-Professional User Fee Cap applies to broker-dealers only will remove impediments to and help perfect a free and open market by providing greater transparency for the Exchange's customers regarding the application of the Non-Professional User Fee Cap as previously filed with the Commission and applicable to the existing Fee Schedule.
The Exchange notes that NYSE ArcaBook is entirely optional. The Exchange is not required to make NYSE ArcaBook available or to offer any specific pricing alternatives to any customers, nor is any firm required to purchase NYSE ArcaBook. Firms that do purchase NYSE ArcaBook do so for the primary goals of using it to increase revenues, reduce expenses, and in some instances compete directly with the Exchange (including for order flow); those firms are able to determine for themselves whether NYSE ArcaBook or any other similar products are attractively priced or not.
Firms that do not wish to purchase NYSE ArcaBook at the new prices have a variety of alternative market data products from which to choose,
The decision of the United States Court of Appeals for the District of Columbia Circuit in
In fact, the legislative history indicates that the Congress intended that the market system `evolve through the interplay of competitive forces as unnecessary regulatory restrictions are removed' and that the SEC wield its regulatory power `in those situations where competition may not be sufficient,' such as in the creation of a `consolidated transactional reporting system.'
As explained below in the Exchange's Statement on Burden on Competition, the Exchange believes that there is substantial evidence of competition in the marketplace for proprietary market data and that the Commission can rely upon such evidence in concluding that the fees established in this filing are the product of competition and therefore satisfy the relevant statutory standards. In addition, the existence of alternatives to these data products, such as consolidated data and proprietary data from other sources, as described below, further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can select such alternatives.
As the
For these reasons, the Exchange believes that the proposed fees are reasonable, equitable, and not unfairly discriminatory.
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. An exchange's ability to price its proprietary market data feed products is constrained by actual competition for the sale of proprietary market data products, the joint product nature of exchange platforms, and the existence of alternatives to the Exchange's proprietary data.
The market for proprietary data products is currently competitive and inherently contestable because there is fierce competition for the inputs necessary for the creation of proprietary data and strict pricing discipline for the proprietary products themselves. Numerous exchanges compete with one another for listings and order flow and sales of market data itself, providing ample opportunities for entrepreneurs who wish to compete in any or all of those areas, including producing and distributing their own market data. Proprietary data products are produced and distributed by each individual exchange, as well as other entities, in a vigorously competitive market. Indeed, the U.S. Department of Justice (“DOJ”) (the primary antitrust regulator) has expressly acknowledged the aggressive actual competition among exchanges, including for the sale of proprietary market data. In 2011, the DOJ stated that exchanges “compete head to head to offer real-time equity data products. These data products include the best bid and offer of every exchange and information on each equity trade, including the last sale.”
Moreover, competitive markets for listings, order flow, executions, and transaction reports provide pricing discipline for the inputs of proprietary data products and therefore constrain markets from overpricing proprietary market data. Broker-dealers send their order flow and transaction reports to multiple venues, rather than providing them all to a single venue, which in turn reinforces this competitive constraint. As a 2010 Commission Concept Release noted, the “current market structure can be described as dispersed and complex” with “trading volume . . . dispersed among many highly automated trading centers that compete for order flow in the same stocks” and “trading centers offer[ing] a wide range of services that are designed to attract different types of market participants with varying trading needs.”
If an exchange succeeds in competing for quotations, order flow, and trade executions, then it earns trading revenues and increases the value of its proprietary market data products because they will contain greater quote and trade information. Conversely, if an exchange is less successful in attracting quotes, order flow, and trade executions, then its market data products may be less desirable to customers in light of the diminished content and data products offered by competing venues may become more attractive. Thus, competition for quotations, order flow, and trade executions puts significant pressure on an exchange to maintain both execution and data fees at reasonable levels.
In addition, in the case of products that are also redistributed through market data vendors, such as Bloomberg and Thompson Reuters, the vendors themselves provide additional price discipline for proprietary data products because they control the primary means of access to certain end users. These vendors impose price discipline based upon their business models. For example, vendors that assess a surcharge on data they sell are able to refuse to offer proprietary products that their end users do not or will not purchase in sufficient numbers. Vendors will not elect to make available NYSE ArcaBook unless their customers request it, and customers will not elect to pay the proposed fees unless NYSE ArcaBook can provide value by sufficiently increasing revenues or reducing costs in the customer's business in a manner that will offset the fees. All of these factors operate as constraints on pricing proprietary data products.
Transaction execution and proprietary data products are complementary in that market data is both an input and a byproduct of the execution service. In fact, proprietary market data and trade executions are a paradigmatic example of joint products with joint costs. The decision of whether and on which platform to post an order will depend on the attributes of the platforms where the order can be posted, including the execution fees, data availability and quality, and price and distribution of data products. Without a platform to post quotations, receive orders, and execute trades, exchange data products would not exist.
The costs of producing market data include not only the costs of the data distribution infrastructure, but also the costs of designing, maintaining, and operating the exchange's platform for posting quotes, accepting orders, and executing transactions and the cost of regulating the exchange to ensure its fair operation and maintain investor confidence. The total return that a trading platform earns reflects the revenues it receives from both products and the joint costs it incurs.
Moreover, an exchange's broker-dealer customers generally view the costs of transaction executions and market data as a unified cost of doing business with the exchange. A broker-dealer will only choose to direct orders to an exchange if the revenue from the transaction exceeds its cost, including the cost of any market data that the broker-dealer chooses to buy in support of its order routing and trading decisions. If the costs of the transaction are not offset by its value, then the broker-dealer may choose instead not to purchase the product and trade away from that exchange. There is substantial evidence of the strong correlation between order flow and market data purchases. For example, in September 2015, more than 80% of the transaction volume on each of the Exchange and the Exchange's affiliates New York Stock Exchange LLC (“NYSE”) and NYSE MKT LLC (“NYSE MKT”) was executed by market participants that purchased one or more proprietary market data products (the 20 firms were not the same for each market). A supra-competitive increase in the fees for either executions or market data would create a risk of reducing an exchange's revenues from both products.
Other market participants have noted that proprietary market data and trade executions are joint products of a joint platform and have common costs.
Analyzing the cost of market data product production and distribution in isolation from the cost of all of the inputs supporting the creation of market data and market data products will inevitably underestimate the cost of the data and data products because it is impossible to obtain the data inputs to create market data products without a fast, technologically robust, and well-regulated execution system, and system and regulatory costs affect the price of both obtaining the market data itself and creating and distributing market data products. It would be equally misleading, however, to attribute all of an exchange's costs to the market data portion of an exchange's joint products. Rather, all of an exchange's costs are incurred for the unified purposes of attracting order flow, executing and/or routing orders, and generating and selling data about market activity. The total return that an exchange earns reflects the revenues it receives from the joint products and the total costs of the joint products.
As noted above, the level of competition and contestability in the market is evident in the numerous alternative venues that compete for order flow, including 11 equities self-regulatory organization (“SRO”) markets, as well as various forms of alternative trading systems (“ATSs”), including dark pools and electronic communication networks (“ECNs”), and internalizing broker-dealers. SRO markets compete to attract order flow and produce transaction reports via trade executions, and two FINRA-regulated Trade Reporting Facilities compete to attract transaction reports from the non-SRO venues.
Competition among trading platforms can be expected to constrain the aggregate return that each platform
The large number of SROs, ATSs, and internalizing broker-dealers that currently produce proprietary data or are currently capable of producing it provides further pricing discipline for proprietary data products. Each SRO, ATS, and broker-dealer is currently permitted to produce and sell proprietary data products, and many currently do, including but not limited to the Exchange, NYSE, NYSE MKT, NASDAQ OMX, BATS, and Direct Edge.
The fact that proprietary data from ATSs, internalizing broker-dealers, and vendors can bypass SROs is significant in two respects. First, non-SROs can compete directly with SROs for the production and sale of proprietary data products. By way of example, BATS and NYSE Arca both published proprietary data on the Internet before registering as exchanges. Second, because a single order or transaction report can appear in an SRO proprietary product, a non-SRO proprietary product, or both, the amount of data available via proprietary products is greater in size than the actual number of orders and transaction reports that exist in the marketplace. With respect to NYSE ArcaBook, competitors offer close substitute products.
Those competitive pressures imposed by available alternatives are evident in the Exchange's proposed pricing.
In addition to the competition and price discipline described above, the market for proprietary data products is also highly contestable because market entry is rapid and inexpensive. The history of electronic trading is replete with examples of entrants that swiftly grew into some of the largest electronic trading platforms and proprietary data producers: Archipelago, Bloomberg Tradebook, Island, RediBook, Attain, TrackECN, BATS Trading and Direct Edge. As noted above, BATS launched as an ATS in 2006 and became an exchange in 2008, while Direct Edge began operations in 2007 and obtained exchange status in 2010.
In determining the proposed changes to the fees for NYSE ArcaBook, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all users. The existence of numerous alternatives to the Exchange's products, including proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if the attendant fees are not justified by the returns that any particular vendor or data recipient would achieve through the purchase.
No written comments were solicited or received with respect to the proposed rule change.
The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A)
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 of request for public comment and submission to OMB of proposed collection of information.
The Department of State has submitted the information collection described below to the Office of Management and Budget (OMB) for approval. In accordance with the Paperwork Reduction Act of 1995 we are requesting comments on this collection from all interested individuals and organizations. The purpose of this Notice is to allow 30 days for public comment.
Submit comments directly to the Office of Management and Budget (OMB) up to February 22, 2016.
Direct comments to the Department of State Desk Officer in the Office of Information and Regulatory Affairs at the Office of Management and Budget (OMB). You may submit comments by the following methods:
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Direct requests for additional information regarding the collection listed in this notice, including requests for copies of the proposed collection instrument and supporting documents, to Mr. Steven Derscheid, PM/DDTC, SA-1, 12th Floor, Directorate of Defense Trade Controls, Bureau of Political-Military Affairs, Department of State, Washington, DC 20522-0112, who may be reached via email at
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We are soliciting public comments to permit the Department to:
• Evaluate whether the proposed information collection is necessary for the proper functions of the Department.
• Evaluate the accuracy of our estimate of the time and cost burden for this proposed collection, including the validity of the methodology and assumptions used.
• Enhance the quality, utility, and clarity of the information to be collected.
• Minimize the reporting burden on those who are to respond, including the use of automated collection techniques or other forms of information technology.
The information submitted pursuant to the Commodity Jurisdiction Determination (OMB Control #1405-0163) will be used to evaluate whether a particular defense article or defense service is covered by the USML and therefore is subject to the export licensing jurisdiction of the Department of State. This collection may also be used to request a change in USML category designation, request the removal of the defense article from the USML, or request the reconsideration of a previous commodity jurisdiction determination.
Notice; correction.
On January 11, 2016, notice was published on page 1274 of the
For further information, including a list of the additional imported objects, contact the Office of Public Diplomacy and Public Affairs in the Office of the Legal Adviser, U.S. Department of State (telephone: 202-632-6471; email:
Federal Aviation Administration, DOT.
Notice of Request To Release Airport Land.
The Federal Aviation Administration (FAA) proposes to rule and invites public comment on the application for a release of approximately .96 acre of airport property near Oxnard Airport, Oxnard, Ventura County, California, from all conditions contained in the Quitclaim Deed and Grant Assurances since the parcel of land is not needed for airport purposes. The property will be sold for its fair market value and the proceeds used for airport purposes. The continued use of the land for agriculture represents a compatible land use that will not interfere with the airport or its operation, thereby protecting the interests of civil aviation.
Comments must be received on or before February 22, 2016.
Comments on the request may be mailed or delivered to the FAA at the following address: Tony Garcia, Airports Compliance Program Manager, Federal Aviation Administration, Airports Division, Federal Register Comment, 15000 Aviation Blvd., Lawndale, CA 90261. In addition, one copy of the comment submitted to the FAA must be mailed or delivered to Mr. Todd McNamee, Director, Ventura County Department of Airports, 555 Airport Way, Camarillo, CA 93010.
In accordance with the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR 21), Public Law 106-181 (Apr. 5, 2000; 114 Stat. 61), this notice must be published in the
The following is a brief overview of the request:
Ventura County, Department of Airports, Camarillo, California requested a release from the conditions contained in the Quitclaim Deed and Grant Assurance obligations for approximately .96 acres of airport land near Oxnard Airport. The property is located northwest of Oxnard Airport, adjacent to North Victoria Avenue and between Doris Avenue and Gonzales Road. The property is presently farm land in an agricultural area. The land will continue to be used for farming. Ventura County requested approval to sell the small parcel because the land is not needed for airport purposes and its current agricultural status prevents other uses. The property is approximately one mile from the airport boundary and is not suitable for current or future airport development. The sale price will be based on its appraised market value and the sale proceeds will be used for airport purposes. The continued use of the property for farming represents a compatible use that will not interfere with airport operations. The airport will be properly compensated, thereby serving the interests of civil aviation.
Federal Aviation Administration (FAA), DOT.
Notice.
This notice contains a summary of a petition seeking relief from specified requirements of Title 14 of the Code of Federal Regulations. The purpose of this notice is to improve the public's awareness of, and participation in, the FAA's exemption process. Neither publication of this notice nor the inclusion or omission of information in the summary is intended to affect the legal status of the petition or its final disposition.
Comments on this petition must identify the petition docket number and must be received on or before February 10, 2016.
Send comments identified by docket number FAA-2015-0173 using any of the following methods:
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Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to
Docket: Background documents or comments received may be read at
Dan Ngo, 202-267-4264, 800 Independence Avenue SW., Washington, DC 20591.
This notice is published pursuant to 14 CFR 11.85.
Federal Aviation Administration, DOT.
Notice of Request to Release Airport Land.
The Federal Aviation Administration (FAA) proposes to rule and invites public comment on the application for a release of approximately 21.09 acres of airport property at Santa Maria Public Airport/Captain G. Allan Hancock Field, Santa Maria, Santa Barbara County, California, from all conditions contained in the Quitclaim Deed and Grant Assurances since the parcel of land is not needed for airport purposes. The property will be sold for its fair market value and the proceeds used for airport purposes. The planned use of the land for commercial purposes represents a compatible land use that will not interfere with the airport or its operation, thereby protecting the interests of civil aviation.
Comments must be received on or before February 22, 2016.
Comments on the request may be mailed or delivered to the FAA at the following address: Tony Garcia, Airports Compliance Program Manager, Federal Aviation Administration, Airports Division,
In accordance with the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR 21), Public Law 106-181 (Apr. 5, 2000; 114 Stat. 61), this notice must be published in the
The following is a brief overview of the request:
The Santa Maria Public Airport District, Santa Maria, California requested a release from the conditions contained in the Quitclaim Deed and Grant Assurance obligations for approximately 21.09 acres of airport land at Santa Maria Public Airport. The property is located on the north side of the Airport and south of Fairway Drive. The property is mostly undeveloped and served as a 9-hole golf course. The Santa Maria Airport District requested approval to sell the parcel because the land is not presently needed for airport purposes or for future airport development. The sale price will be based on its appraised market value and the sale proceeds will be used for airport purposes. The future commercial use of the property represents a compatible use that will not interfere with airport operations. On this basis, the disposal will serve the interests of civil aviation.
Federal Aviation Administration (FAA), DOT.
Notice.
This notice contains a summary of a petition seeking relief from specified requirements of Title 14 of the Code of Federal Regulations. The purpose of this notice is to improve the public's awareness of, and participation in, the FAA's exemption process. Neither publication of this notice nor the inclusion or omission of information in the summary is intended to affect the legal status of the petition or its final disposition.
Comments on this petition must identify the petition docket number and must be received on or before February 10, 2016.
Send comments identified by docket number FAA-2014-0481 using any of the following methods:
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Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to
Docket: Background documents or comments received may be read at
Dan Ngo, 202-267-4264, 800 Independence Avenue SW., Washington, DC 20591.
This notice is published pursuant to 14 CFR 11.85.
Docket No.: FAA-2014-0481.
Petitioner: Douglas Trudeau.
Section(s) of 14 CFR Affected: 91.119(b), 91.119(c).
Description of Relief Sought: You requested an amendment to revise Condition No. 14 (pilot in command), Nos. 19, 30, 31, 32 (operating parameters), and an expansion of your area of operation within the State of Arizona and increased operational services.
Federal Aviation Administration (FAA), DOT.
Notice.
This notice contains a summary of a petition seeking relief from specified requirements of Title 14 of the Code of Federal Regulations. The purpose of this notice is to improve the public's awareness of, and participation in, the FAA's exemption process. Neither publication of this notice nor the inclusion or omission of information in the summary is intended to affect the legal status of the petition or its final disposition.
Comments on this petition must identify the petition docket number and must be received on or before February 10, 2016.
Send comments identified by docket number FAA-2015-0621 using any of the following methods:
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Dan Ngo, 202-267-4264, 800 Independence Avenue SW., Washington, DC 20591.
This notice is published pursuant to 14 CFR 11.85.
Federal Aviation Administration (FAA), DOT.
Notice of petition for exemption received.
This notice contains a summary of a petition seeking relief from specified requirements of 14 CFR. The purpose of this notice is to improve the public's awareness of, and participation in, this aspect of FAA's regulatory activities. Neither publication of this notice nor the inclusion or omission of information in the summary is intended to affect the legal status of the petition or its final disposition.
Comments on this petition must identify the petition docket number and must be received on or before February 10, 2016.
You may send comments identified by Docket Number FAA-2016-0072 using any of the following methods:
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Timoleon Mouzakis, Federal Aviation Administration, Engine and Propeller Directorate, Standards Staff, ANE-111, 12 New England Executive Park, Burlington, Massachusetts 01803-5229; (781) 238-7114; facsimile: (781) 238-7199; email:
This notice is published pursuant to 14 CFR 11.85.
Federal Aviation Administration (FAA), DOT.
Notice.
This notice contains a summary of a petition seeking relief from specified requirements of Title 14 of the Code of Federal Regulations. The purpose of this notice is to improve the public's awareness of, and participation in, the FAA's exemption process. Neither publication of this notice nor the inclusion or omission of information in the summary is intended to affect the legal status of the petition or its final disposition.
Comments on this petition must identify the petition docket number and must be received on or before February 10, 2016.
Send comments identified by docket number FAA-2015-0218 using any of the following methods:
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Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to
Docket: Background documents or comments received may be read at
Dan Ngo, 202-267-4264, 800 Independence Avenue SW., Washington, DC 20591.
This notice is published pursuant to 14 CFR 11.85.
Docket No.: FAA-2015-0218.
Petitioner: Hazon Solutions Inc.
Section(s) of 14 CFR Affected: 91.119(c).
Description of Relief Sought: The petitioner requests to conduct commercial UAS operations within 500 feet of any person, vessel, vehicle, or structure in a manner consistent with 14CFR 91.119(d). The petitioner states that they will not operate over persons non-participating in the operation unless they are under a covered structure.
Federal Aviation Administration (FAA), DOT.
Notice.
This notice contains a summary of a petition seeking relief from specified requirements of Title 14 of the Code of Federal Regulations. The purpose of this notice is to improve the public's awareness of, and participation in, the FAA's exemption process. Neither publication of this notice nor the inclusion or omission of information in the summary is intended to affect the legal status of the petition or its final disposition.
Comments on this petition must identify the petition docket number and must be received on or before February 10, 2016.
Send comments identified by docket number FAA-2014-1014 using any of the following methods:
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Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments,
Docket: Background documents or comments received may be read at
Dan Ngo, 202-267-4264, 800 Independence Avenue SW., Washington, DC 20591.
This notice is published pursuant to 14 CFR 11.85.
Docket No.: FAA-2014-1014.
Petitioner: Auburn University.
Section(s) of 14 CFR Affected: 21 subpart H, part 27, 45.23(b), 45.27(a), 61.113, 61.3, 91.103, 91.109, 91.119, 91.121, 91.151(a), 91.203, 91.405(a), 91.407(a)(1), 91.409(a)(1), 91.417(a)&(b), 91.7(a), and 91.9(b)(2) & (c).
Description of Relief Sought: The petitioner requests to conduct UAS commercial operations to conduct unmanned aircraft systems training as part of their Flight Instruction Program.
Federal Highway Administration (FHWA), DOT.
Notice of request for information collection.
The FHWA invites public comments about our intention to request the Office of Management and Budget's (OMB) approval for new information collection that is summarized below under
Please submit comments by March 21, 2016.
You may submit comments identified by DOT Docket ID Number 2016-0001 by any of the following methods:
James Garland, 202-366-6221, Office of Planning, Environment, and Realty, Federal Highway Administration, Department of Transportation, 1200 New Jersey Avenue SE., Washington, DC 20590. Office hours are from 7:45 a.m. to 4:15 p.m., Monday through Friday, except Federal holidays.
The on-line TPEA nomination form is the tool for submitters to nominate a process, group, or individual involved in a project or process that has used the FHWA and/or the FTA funding sources to make an outstanding contribution to the field of transportation planning. The information about the process, group or individual provided by the submitter may be shared and published if that submission is selected for an award.
The TPEA Program is a biennial awards program and individuals will be asked to submit nominations via the online form every two years. The participants will provide their information by means of the Internet.
The Paperwork Reduction Act of 1995; 44 U.S.C. Chapter 35, as amended; and 49 CFR 1.48.
The Department of the Treasury will submit the following information collection requests to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, Public Law 104-13, on or after the date of publication of this notice.
Comments should be received on or before February 22, 2016 to be assured of consideration.
Send comments regarding the burden estimate, or any other aspect of the information collection, including suggestions for reducing the burden, to (1) Office of Information and Regulatory Affairs, Office of Management and Budget, Attention: Desk Officer for Treasury, New Executive Office Building, Room 10235, Washington, DC 20503, or email at
Copies of the submissions may be obtained by emailing
Notice of meeting.
In accordance with the Federal Advisory Committee Act, 5 U.S.C., App. 2, the Commission on Care gives notice that it will meet on Monday, February 8, 2016 at the Washington Marriott at Metro Center, 775 12th St. NW., Washington, DC 20005. The meeting will convene at 8:00 a.m. and end no later than 6:00 p.m. The meeting is open to the public.
The purpose of the Commission, as described in section 202 of the Veterans Access, Choice, and Accountability Act of 2014, is to examine the access of veterans to health care from the Department of Veterans Affairs and strategically examine how best to organize the Veterans Health Administration, locate health care resources, and deliver health care to veterans during the next 20 years.
No time will be allocated at this meeting for receiving oral presentations from the public. The public may submit written statements for the Commission's review to
The Department of Veterans Affairs (VA) gives notice under the Federal Advisory Committee Act, 5 U.S.C. App. 2, that the subcommittees of the Rehabilitation Research and Development Service Scientific Merit Review Board will meet from 8:00 a.m. to 5:00 p.m. on the dates indicated below:
The purpose of the Board is to review rehabilitation research and development applications and advise the Director, Rehabilitation Research and Development Service, and the Chief Research and Development Officer on the scientific and technical merit, the mission relevance, and the protection of human and animal subjects.
The subcommittee meetings will be open to the public for approximately one-half hour at the start of each meeting to cover administrative matters and to discuss the general status of the program. Members of the public who wish to attend the open portion of the teleconference sessions may dial 1 (800) 767-1750, participant code 35847. The
No oral or written comments will be accepted from the public for either portion of the meetings. Those who plan to attend the open portion of a subcommittee meeting should contact Tiffany Asqueri, Designated Federal Officer, Rehabilitation Research and Development Service, at Department of Veterans Affairs (10P9R), 810 Vermont Avenue NW., Washington, DC 20420, or email
Federal Motor Carrier Safety Administration (FMCSA), DOT.
Notice of proposed rulemaking (NPRM); request for comments.
FMCSA proposes to amend the Federal Motor Carrier Safety Regulations (FMCSRs) to revise the current methodology for issuance of a safety fitness determination (SFD) for motor carriers. The proposed new methodologies would determine when a motor carrier is not fit to operate commercial motor vehicles (CMVs) in or affecting interstate commerce based on the carrier's on-road safety data in relation to five of the Agency's seven Behavior Analysis and Safety Improvement Categories (BASICs); an investigation; or a combination of on-road safety data and investigation information. The intended effect of this action is to more effectively use FMCSA data and resources to identify unfit motor carriers and to remove them from the Nation's roadways.
FMCSA will be accepting both initial comments and reply comments in response to this NPRM. Send your initial comments on or before March 21, 2016 and reply comments on or before April 20, 2016.
You may submit comments (initial and reply) identified by the docket number FMCSA-2015-0001 using any of the following methods:
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To avoid duplication, please use only one of these four methods. See the “Public Participation and Request for Comments” portion of the
Mr. David Yessen, (609) 275-2606,
This notice of proposed rulemaking is organized as follows:
As the Federal government agency responsible for commercial motor vehicle (CMV) safety, FMCSA must identify unfit motor carriers. Under the existing regulations, a compliance review must be conducted to issue a Safety Fitness Determination (SFD) and, if a motor carrier receives a final unsatisfactory safety rating, FMCSA declares that motor carrier to be unfit to operate on the Nation's highways. The current SFD process does not permit the Agency to use all of the on-road safety data in the Motor Carrier Management Information System (MCMIS) in making each SFD. Based on experience and empirical data from the Safety Measurement System (SMS) and interventions, the integration of on-road safety data into the SFD process would improve the assessment of motor carriers and the identification of unfit motor carriers. Such integration is a longstanding recommendation of the National Transportation Safety Board (NTSB). Under this proposal, unfit determinations could be based on a carrier's on-road safety data alone. In this NPRM, FMCSA proposes to eliminate the current three-tier rating system (
Using data from inspections or investigations or both, FMCSA proposes to evaluate carriers monthly to determine if they failed two or more Behavior Analysis and Safety Improvement Categories (BASICs) and thus should be proposed unfit. A motor carrier would be proposed unfit if it: (1) Failed two or more BASICs based exclusively on on-road safety data from 11 or more inspections with 1 or more violations in each, in a single BASIC, before a carrier could fail the BASICs; (2) had violations of the proposed set of critical and acute regulations, identified through an investigation, that cause the motor carrier to fail two or more BASICs; or (3) failed two or more BASICs based on a combination of data from inspections and investigation results. The Agency's analysis and reasoning for these proposals is explained in more detail later in this document.
FMCSA's MCMIS automatically takes each motor carrier's safety data from on-road safety inspections and converts the data into a BASIC measure and a rank/percentile using the methodology in “Carrier Safety Measurement System (CSMS) Methodology.”
In SMS, a carrier's performance is compared to other carriers in its safety event group every month. As a result, improved safety performance by other carriers could result in the carrier having higher (worse) percentiles without having committed any additional violations. In contrast, under the proposed SFD methodology, every month a carrier's performance would be compared to an absolute failure standard that would be set in regulation based on each safety event group. Because the absolute failure standard would not change from month to month, changes in another company's performance would not impact the motor carrier. The failure standard will only be changed after rulemaking by the Agency, with notice and comment. The carrier's SFD measure would reflect its own performance against the failure standard, and would not be impacted by other carriers' performance.
From the motor carrier's measures, percentile ranking, and intervention thresholds, FMCSA developed proposed SFD failure standards at higher levels of noncompliance with the FMCSRs and HMRs, which provide stronger correlations to previous crashes.
Thus, the failure standards for a proposed unfit SFD would require significantly more evidence of non-compliance than the thresholds in SMS that the Agency uses to prioritize a carrier for interventions. The Agency's proposed approach would ensure that only the worst performing motor carriers would be issued a proposed unfit determination based solely on on-road safety performance data.
In addition, the proposed standards for an unfit SFD would be set at absolute values that would be higher measures (
Failure standards would be established in each BASIC for several safety event groups. A carrier meeting or exceeding the failure standard in its safety event group would fail the BASIC.
The Crash Indicator BASIC and the Controlled Substances/Alcohol Compliance BASIC would be evaluated only during investigations, because the Crash Indicator BASIC currently does not include preventability determinations and controlled
Further, only preventable crashes would be used in calculating an SFD. This differs from the current SFD process which only determines the preventability of crashes to contest a motor carrier's recordable crash rate after the SFD. As described below, crash data could trigger a failure in a BASIC during the investigative process only if a certified safety investigator makes a “preventability determination” on the crashes and the preventable crashes exceed the failure standard.
It is important to note that while the relative percentiles in SMS are not used in making Safety Fitness Determinations under this NPRM, the same data are used. Some groups have expressed concerns about that data, and many of those concerns are proactively addressed concerns about the SMS in the development of this SFD proposal. In addition to the differences noted above, it is important to point out that other concerns about the system including disparities for long-haul and short-haul carriers; differences for urban and rural motor carriers, and enforcement differences by the States have all been considered. The long and short haul differences are minimized by the combination (long-haul) and straight truck (short haul) segmentation. The impacts of urban and rural transportation are factored into the calculation of the Crash Indicator BASIC failure rates. Lastly, while enforcement differences exist between the States, the nature of the high failure standard in this rule is that the patterns of non-compliance for the carriers that are proposed unfit are not the result of these disparities but are the result of recurring non-compliance.
After a proposed unfit SFD, a motor carrier would have three different administrative proceedings available: (1) A review for material errors in assigning a proposed unfit SFD; (2) a review claiming unconsidered on-road performance inspection data; (3) a review after a request to operate under a compliance agreement. Consistent with current procedures, requests for one or more administrative reviews would not automatically stay a proposed unfit determination. After a final unfit determination, the motor carrier could request a review to resume operations.
The revised SFD methodology and rule would be used to identify and take legal action against unfit motor carriers that have failed to implement and maintain adequate safety management controls for achieving compliance with the FMCSRs and HMRs.
The Agency would maintain the current administrative review processes provided under § 385.15, would propose a compliance agreement procedure similar to the existing § 385.17 upgrade process for carriers with a proposed unfit SFD, and would add an opportunity to submit missing inspection data under § 385.16. FMCSA proposes to reduce the time for filing a petition for administrative review from the current 90 days to 15 days after the issuance of the proposed unfit SFD. Further, a new process, under § 385.18, explains the requirements for demonstrated corrective action and compliance agreements for entities with revoked registration due to an unfit safety rating.
Under this proposal, the Agency estimates in its separate Regulatory Evaluation that it would have proposed as unfit 3,056 motor carriers in 2011, about 2.5 times the number of proposed unfit SFDs relative to 1,232 under the current process, known as proposed unsatisfactory safety ratings. FMCSA estimates that the 3,056 proposed unfit SFD motor carriers would consist of:
• 262 motor carriers based solely upon on use of inspection data,
• 2,674 motor carriers based upon the result of investigations, and
• 120 motor carriers based on a combination of inspection and investigation data.
Application of the proposed method to data from a supporting analysis
The costs of the rulemaking are those incurred by:
(1) Drivers who were employed by additional carriers ordered out of service (OOS) who are now forced to seek new employment. It is estimated that 1,855 drivers would have been adversely affected in this manner annually.
(2) The additional carriers identified as deficient under the proposed SFD that opt to improve performance, thereby incurring costs to achieve compliance.
(3) FMCSA, resulting from information technology system update and modification expenses (estimated as a one-time cost of $3.0 million incurred in year 2017 under both Option 1 and Option 2).
Given (1) an assumed 2.17 percent annual increase in the carrier population, and hence the number of drivers, and (2) no change in real wages for drivers over time,
Given (1) the estimated current monetized value of a statistical life component for a fatal crash of $10,885,000, for an injury crash of $393,000, and for a tow-away crash of $50,000, (2) annual increases in each of these values due to projected real growth of the value a statistical life of 1.18
With $240.9 million in annualized benefits and $9.9 million in annualized costs with no projected real wage growth among drivers, the annualized net benefits of the proposed rule would be $231.1 million. Table 1 summarizes the Agency's annualized benefit, cost, and net benefit projections of this rule utilizing a 7 percent discount rate under a range of annual real wage growth assumptions of 0 to 2 percent.
Cumulative benefits, costs, and net benefits of the proposed rule are presented in Table 2 for not discounted, 3% discounted, and 7% discounted bases. For brevity, corresponding tables associated with the 1% and 2% annual real wage growth scenarios are not included here as the projections are nearly identical under these alternate assumptions, and the minimal differences resulting from utilization of positive real wage growth assumptions are demonstrated in the annualized values in the preceding table.
The proposed rule would replace the current safety fitness rating methodology with new methodologies. The new methodologies incorporate on-road safety data and the results of safety investigations.
This rulemaking is based primarily on the authority of section 215 of the Motor Carrier Safety Act of 1984 (1984 Act),
As amended, the statute now requires the Secretary to: (1) Determine whether an owner or operator is fit to operate safely commercial motor vehicles, utilizing among other things the accident record of an owner or operator operating in interstate commerce and the accident record and safety inspection record of such owner or operator—(A) in operations that affect interstate commerce within the United States; and (B) in operations in Canada and Mexico if the owner or operator also conducts operations within the United States; (2) periodically update such safety fitness determinations; (3) make such final safety fitness determinations readily available to the public; and (4) prescribe by regulation penalties for violations of 49 U.S.C. 31144 consistent with 49 U.S.C. 521.
It also provides that the Secretary shall maintain by regulation a procedure for determining the safety fitness of an owner or operator. The procedure shall include, at a minimum, the following elements: (1) Specific initial and continuing requirements with which an owner or operator must comply to demonstrate safety fitness; (2) a methodology the Secretary will use to determine whether an owner or operator is fit; (3) specific time frames within which the Secretary will determine whether an owner or operator is fit.
This proposed rule also relies on 49 U.S.C. 31133, which gives the Secretary broad administrative powers to assist in the implementation of the provisions of the 1984 Act.
FMCSA has authority to revoke the operating authority registration of any motor carrier that has been prohibited from operating as the result of a final unfit SFD.
The Secretary has delegated the authority to carry out all of these functions to the FMCSA Administrator.
The Federal Highway Administration (FHWA), the predecessor of FMCSA, promulgated Safety Fitness Procedures
In March 1997, in
In response, FHWA issued a second interim final rule in May 1997 incorporating the safety fitness rating
In November 1997, FHWA published a final rule incorporating the Agency's revised safety fitness rating methodology in appendix B to 49 CFR part 385, Safety Fitness Procedures.
In 1998, TEA-21 added a prohibition applicable to all owners and operators of CMVs not previously subject to the 1990 Act's prohibition—that is, those CMV owners and operators not transporting more than 15 passengers or HM in quantities requiring placarding. Following that change, all owners and operators, including those not transporting more than 15 passengers or HM in quantities requiring placarding, were prohibited from operating CMVs in interstate commerce, starting on the 61st day after being found unfit.
FMCSA published several additional amendments in 2000.
In 2007, in response to a motorcoach crash with numerous fatalities, NTSB recommended that FMCSA use all motor carrier violations when assessing a carrier's safety fitness. (See NTSB recommendation H-07-003 in “Highway Accident Report: Motorcoach Fire on Interstate 45 During Hurricane Rita Evacuation Near Wilmer, Texas, September 23, 2005.”
FMCSA proposes to base SFDs on data from driver/vehicle inspections and investigations. Three reports regarding the Agency's existing SMS form the technical basis for the proposed methodology for this rulemaking. Two of the reports were prepared by FMCSA. The third report was developed and published by the American Transportation Research Institute (ATRI). Copies of all three reports are in the docket for this document.
The most recent report is titled “Carrier Safety Measurement System (CSMS) Methodology-Version 3.0.2” (June 2014).
The second report, “Carrier Safety Measurement System (CSMS) Violation Severity Weights” (December 2010),
The third report, a study titled, “Compliance, Safety, Accountability: Evaluating a New Safety Measurement System and Its Impacts” (December 2012), ATRI, involved an analysis of carriers assessed by BASICs. The results from this study confirmed that SMS is better at targeting carriers and identifying safety problems. In addition, the ATRI study indicated that the number of “alerts” a carrier has is the best indicator of future crashes.
Additionally, the Agency's CSA Operational Model Test
The CSA program, implemented in December 2010, is FMCSA's current initiative to improve large truck and bus safety. It is a set of enforcement and compliance tools that allow FMCSA and its State partners to address the safety and compliance problems of motor carriers before crashes occur. There are two elements of the Agency's existing CSA Program that are part of the Agency's safety monitoring programs: (1) The Safety Measurement System (SMS); and (2) the use of a varied set of interventions on motor carriers identified by SMS. FMCSA has provided significant information about the CSA program and its initiatives through public listening sessions,
The remaining element of the Agency's existing safety monitoring programs is the compliance review or investigation that results in a safety rating.
The SMS is an automated system that runs monthly and measures on-road safety performance of motor carriers to: (1) Identify candidates for intervention, (2) identify specific safety problems, and (3) monitor whether a carrier's performance is improving or getting worse. SMS groups the safety performance data of motor carriers and drivers into seven BASICs. The BASICs are:
The Unsafe Driving BASIC addresses the requirement to avoid driving a CMV in a dangerous or careless manner, and it includes driving and parking rules for drivers transporting HM. Some safety violations that may cause a motor carrier to rank poorly in this BASIC include speeding, reckless driving, improper lane change, distracted driving, failure to wear safety belt while operating a CMV, and texting or using a mobile telephone while operating a CMV.
The HOS Compliance BASIC addresses the requirements to obey the HOS rules and not to drive when fatigued. This BASIC includes violations of the regulations pertaining to maximum driving time during the work day, maximum on-duty time that may be accumulated before driving is prohibited during the work day and during the work week, and preparation in proper form and manner and retention of records of duty status (RODS) as they relate to HOS requirements. Safety violations that may cause a motor carrier to rank poorly in this BASIC include a driver operating more hours than allowed under HOS regulations, failure to prepare and maintain RODS and falsification of RODS.
The Driver Fitness BASIC addresses the requirements concerning commercial driver's licenses (CDLs) and disqualifying offenses for persons operating CMVs, as defined in 49 CFR 383.5. This BASIC also captures violations of the regulations for driver qualifications, including medical qualifications for interstate drivers of CMVs, as defined in 49 CFR 390.5. High scores in this BASIC are an indication that a carrier has allowed the operation of CMVs by drivers who are not qualified due to a lack of knowledge, skills, medical qualifications, or a valid license.
The Controlled Substances/Alcohol BASIC addresses the requirements for controlled substances and alcohol testing for CDL holders. Safety violations that may cause a motor carrier to rank poorly in this BASIC include a driver found to be in possession of alcoholic beverages or operating under the influence of a controlled substance.
The Vehicle Maintenance BASIC addresses the requirements for equipment inspection, proper maintenance, and repair of a CMV, and the prevention of shifting loads and spilled or dropped cargo. Proper maintenance includes ensuring that lamps or reflectors are working, brakes are in proper working condition, and tires are not dangerously worn. Some safety violations that may cause a motor carrier to rank poorly in this BASIC are operating a vehicle with inoperative brakes, lights, or other mechanical defects; failure to make required repairs; improper load securement to prevent shifting upon or within the CMV to such an extent that the CMV's stability or maneuverability is adversely affected; or operating a vehicle placed OOS for safety deficiencies.
The HM Compliance BASIC addresses the Federal safety regulations related to the packaging, transportation, and identification of HM. In the event of a crash or spill, the HM Compliance BASIC also covers the proper communication of the hazard of the cargo on board. The general public is subject to a greater safety risk if HM is involved in a motor carrier crash; and unmarked or poorly marked HM cargo can result in less effective emergency response, as well as injuries and fatalities for emergency responders and others. At present, the HM Compliance BASIC scores can be seen only by enforcement personnel and by a motor carrier that accesses its own safety profile; it is not publicly available. The public can, however, see information on the number and types of HM violations involving the motor carrier.
The Crash Indicator BASIC identifies histories or patterns of crash involvement, such as frequency and severity. It is based on information from State-reported crashes that meet recordable crash standards. Multiple State-reported crashes raise the percentile rank of the Crash Indicator BASIC, which signals potential safety problems. The SMS cannot currently factor in the role of the carrier in causing the crash—or crash preventability. (See discussion of crashes below.) At present, the Crash Indicator BASIC can be seen only by enforcement personnel and by a motor carrier that accesses its own safety profile; it is not publicly available. The public can, however, see information on the number and severity of crashes involving the motor carrier.
Interventions are a suite of enforcement tools ranging from warning letters to comprehensive investigations that provide carriers with the information necessary to understand
Currently, when a motor carrier's SMS scores meet or exceed established intervention thresholds the Agency prioritizes it for investigations or enforcement. The SMS intervention thresholds are as follows:
It is important to note that the thresholds FMCSA currently uses to select carriers for an intervention, using SMS, are not the same measures that are being proposed in this NPRM for the SFD failure standards. (See Section 2.4 of proposed appendix B to part 385 below.)
SFDs are currently determined based on data collected during a CR or other investigation. The existing SFD process uses six factors to rate carriers' safety performance. Portions of the regulations (the FMCSRs and the HMRs) with similar characteristics are grouped together into six factors:
FMCSA calculates a vehicle out-of-service rate, reviews crash involvement, and conducts an in-depth examination of the motor carrier's compliance with the acute and critical regulations of the FMCSRs and HMRs, currently listed in 49 CFR part 385, appendix B, part VI.
• “Acute regulations” are those where noncompliance is so severe as to require immediate corrective action, regardless of the overall safety management controls of the motor carrier.
• “Critical regulations” are related to management or operational systems controls.
Overall noncompliance is calculated and rated on a point system according to the six factors. During the investigation, for each instance of noncompliance with an acute regulation or each pattern of noncompliance with a critical regulation one point is assessed. Patterns of noncompliance with HOS are assessed two points. For a critical regulation, the number of violations required to meet the threshold for a pattern is equal to at least 10 percent of those sampled, and more than one violation must be found to establish a pattern. In addition, on-road safety data is used in calculating the vehicle and crash factors.
If any of the six factors is assessed one point, then that factor is rated as “conditional.” If any of the six factors is assessed two points, then that factor is rated as “unsatisfactory.” Two or more individual factors rated as “unsatisfactory” will result in an overall rating of “unsatisfactory.” One individual factor rated as “unsatisfactory” and more than two individual factors rated as “conditional” will also result in an “unsatisfactory” rating overall. See Table 4 below:
The Agency's current SFD process is resource-intensive and reaches only a small percentage of motor carriers. In FY 2012, FMCSA and its State partners conducted approximately 17,000 ratable reviews out of a population of more than approximately 525,000 active motor carriers. A ratable review is one that could potentially result in a conditional or unsatisfactory safety rating. Table 5 presents the distribution of ratable reviews conducted.
Of the 17,002 ratable reviews conducted in FY 2012, 1,013 resulted in a proposed unsatisfactory safety rating, while an additional 3,618 resulted in a proposed or final safety rating of conditional.
The Agency concludes that changes to the SFD process are needed for many reasons. First, the current SFD methodology evaluates a motor carrier's compliance using only a limited range of inspection data. Additionally, the current process does not integrate all of the data that is available in MCMIS. Over 3.5 million inspections are conducted each year, and this information is not effectively used to remove unsafe operators from our Nation's roadways.
Second, the safety rating is a snapshot of a company's safety performance on a specific date. The Agency's MCMIS database reflects safety ratings dating back to 1986, and many of the ratings are not likely to reflect the carriers' current safety compliance.
Third, the current SFD process is not designed to continually monitor motor carrier on-road safety data. In addition, the assignment of a “satisfactory” safety rating implies to the public, correctly or not, that the Agency has approved the current operations of a motor carrier, when actually FMCSA has merely rated the operations for the specific period covered by the CR. The assigned safety rating thus may not reflect the company's current compliance and could be misleading to those who might interpret it as a reflection of a motor carrier's current safety status.
Fourth, under the current SFD process, a motor carrier may continue to operate indefinitely with a conditional rating even if a ratable review reveals breakdowns in safety management controls in multiple areas. For example, a motor carrier with noncompliance documented by an investigation in areas such as vehicle maintenance (factor 4) and controlled substances and alcohol testing (factor 2) would receive only a proposed conditional rating, which, if it became final, still allows the motor carrier to continue operating.
Fifth, as noted above, the current regulations only allow the Agency and its State partners to assess or rate the safety fitness of a small population of motor carriers on an annual basis. This proposal expands the number of assessed and rated carriers.
Lastly, FMCSA has two open NTSB recommendations related to changing the safety fitness methodology on which the Agency has agreed to take action:
• H-99-006: Change the safety fitness rating methodology so that adverse vehicle and driver performance-based data alone are sufficient to result in an overall unsatisfactory rating for the carrier.
• H-12-017: Include safety measurement system rating scores in the methodology used to determine a carrier's fitness to operate in the safety fitness rating rulemaking for the new Compliance, Safety, Accountability initiative.
For these reasons, the Agency proposes to make the changes to the SFD process reflected in this NPRM.
Over the past several years, the Agency has significantly improved the quality of safety data on motor carriers and considers the State-reported driver and vehicle inspection and crash data to be reliable. All of the States receive MCSAP grant funds from FMCSA and are required to establish programs to “ensure that . . . accurate, complete, and timely motor carrier safety data is collected and reported” and to participate in a national motor carrier safety data correction system.
In addition, FMCSA developed the DataQs online system to facilitate data corrections and to track corrective actions.
FMCSA also evaluates State-reported crash and inspection data and releases evaluation data to the public on a quarterly basis on the FMCSA Web site. The evaluation uses the State Safety Data Quality map to rate the States on the completeness, timeliness, accuracy, and consistency of State-reported crash and inspection data reported to MCMIS (
FMCSA uses 11 inspections as the minimum number for several different analyses and considerations in Tables 6 through 16. Table 6 below is provided to clarify the various applications of the 11-inspection requirement. To receive a safety fitness determination based on inspections a motor carrier must have had at least 11 inspections in the previous 24 months.
In this NPRM, FMCSA proposes to eliminate the current three-tier rating system (
This change to the SFD process would address some of the shortcomings of the current safety rating system. Most importantly, it would help focus the Agency's resources on removing unsafe carriers from the Nation's highways. In addition, it would eliminate the misperception that a satisfactory rating means that FMCSA approves of the current operations of a motor carrier. FMCSA believes that the term “unfit” conveys a clearer and more accurate message to the public than the term “unsatisfactory.” These changes better align the safety fitness regulations with the Agency's mission to remove unsafe operators from the Nation's roadways. At the same time, the change makes clear that the Agency will not devote its limited enforcement resources toward reviews initiated for the sole purpose of assigning a more positive safety rating label to carriers that are not prohibited from operating in interstate or intrastate commerce.
Based on the Agency's experience with SMS and interventions, FMCSA believes that integration of on-road safety data into the SFD process would improve the safety evaluation of motor carriers and the identification of unsafe motor carriers as unfit. Under this proposal, unfit determinations could be based on one of three methodologies.
• Unfit Method 1: Carrier with Two or More Failed BASICs from On-Road Safety Performance
• Unfit Method 2: Carrier with Violations of the Revised Critical and Acute Regulations Identified Through an Investigation
• Unfit Method 3: Combination of Inspection Data and Investigation Results
Figures 1, 2, and 3 illustrate how, under this proposal, carriers could receive proposed unfit safety fitness determinations. This information is also provided in appendix B. Extensive detail for each method is provided below. These paths to a proposed unfit determination are not mutually exclusive. For example, even though an owner or operator regularly undergoes the monthly assessment under Unfit Method 1, at any time, if circumstances warrant, FMCSA can conduct an investigation under Unfit Method 2 to determine whether the owner or operator is fit.
Under Unfit Method 1, violations recorded on inspections would be sorted into the five BASICs for which on-road safety data is considered under the proposed SFD process: Unsafe Driving, HOS Compliance, Driver Fitness, Vehicle Maintenance, and HM Compliance. (Under the proposed SFD process, a motor carrier can fail the Crash Indicator BASIC or the Controlled Substances and Alcohol BASIC only based upon investigation findings under Unfit Method 2.)
The proposed rule would require 11 or more inspections with 1 or more violations in each, in a single BASIC, before a carrier could fail the BASIC for SFD purposes. The Agency proposes 11 or more inspections with violations, rather than the minimum of 3 to 5 inspections with violations required for SMS intervention, because this higher number provides a higher confidence level in assessing safety fitness, which is appropriate due to the seriousness of the regulatory consequences.
While more inspections with violations might be an even stronger indicator of non-compliance, as was recommended by the Government Accountability Office (GAO) for the Agency's SMS,
Table 7 illustrates the number of carriers that have 11 or more inspections with 1 or more violations in each in a 24-month period and, therefore, would have sufficient data to be evaluated for an SFD, compared to carriers with 5 or more inspections.
The weight of a safety event would decrease over time, with more recent events having a greater impact on a motor carrier's BASIC scores than events from the more distant past. Under this proposal the Agency would not use events older than 24 months in determining a motor carrier's safety performance measure.
FMCSA emphasizes that a carrier that receives a proposed unfit determination under Method 1 may have the opportunity to enter into a compliance agreement which could provide it an opportunity to improve its safety performance and avoid a final determination of unfit. Therefore, the increased scrutiny that comes with poor results from 11 inspections with violations within 24 months does not mean the carrier would automatically face an operations out-of-service order. It would be required, however, to correct deficiencies in its safety management controls sooner than it would if the Agency waited for a larger number of inspections. The Agency requests comments on the minimum number of inspections and minimum number of violations that should be considered in making a proposed unfit determination.
The proposed failure standard for an SFD would be set at an absolute value that would equate to higher levels (
The Agency's goal is to establish failure standards that would identify motor carriers with a high crash risk. However, the Agency must take into consideration existing enforcement resources and strike a balance between the population identified and the ability to handle the associated workload.
In considering what absolute failure standards to propose, the Agency considered four options, based on different SMS percentiles. The standards considered equate roughly to the 95th, 96th, 98th, and 99th percentiles for all motor carriers with 11 or more inspections with violations for the 24-month period that ended on March 22, 2013. The proposed failure standards for each BASIC, as calculated through inspections, are presented in Tables 8 through 13. But the standards in the final rule will be based on a more current data and calculation completed closer to the final rule's publication date.
For purpose of analysis in this rulemaking, the Agency proposes to use the absolute failure standards that equate to the 99th percentile for the Driver Fitness, Vehicle Maintenance, and HM Compliance BASICs. This failure standard is equivalent to the absolute value that defines the worst 1 percent of motor carriers with 11 or more inspections, each with 1 or more violations, in a BASIC as of the date of the calculation—March 22, 2013. (See also Table 16 below.)
The failure standard for Unsafe Driving and HOS Compliance would be more stringent than the other BASICs and require a higher level of compliance. A measure equivalent to the 96th percentile would be used for the Unsafe Driving and HOS Compliance BASICs. FMCSA based this standard on the stronger correlation of these BASICs to previous crashes.
The Crash Indicator BASIC and the Controlled Substances/Alcohol Compliance BASIC would be examined only during investigations, because the Crash Indicator BASIC currently does not include preventability determinations, and controlled substances and alcohol violations from on-road safety data would rarely meet the data sufficiency standards.
Failure standards for each of the five BASICs relevant to Unfit Method Number 1 would be established for up to four different safety event groups. (A full explanation of safety event groups is provided below.) A carrier meeting or exceeding the failure standard in its safety event group in the specific BASIC would fail that BASIC for SFD purposes. Tables 8 through 16 below show the options FMCSA considered for each BASIC.
In SMS, a carrier's performance is compared every month to other carriers in its safety event group. As a result, improved performance by other carriers could result in the carrier having higher (worse) percentiles, without the carrier having committed any additional violations. By contrast, in the proposed SFD process, each month a carrier's performance would be compared to an absolute failure standard that would be set in regulation based on each safety event group. Because the absolute failure standard would not change by the month but instead would only change after rulemaking by the Agency, with notice and an opportunity to comment, changes in another company's performance would not impact the motor carrier. The carrier's measure would reflect its own performance against the failure standard.
Tables 8 through 13 below show proposed failure standards that would apply for each of the five BASICs used in this methodology. For all of the BASICs except Unsafe Driving, the threshold would be determined by
The percentage of carriers and crash rates of carriers under FMCSA's jurisdiction are presented in Tables 14 and 15 below for the purpose of comparison. Table 14 displays the frequency with which motor carriers are identified as “unfit,” based on the number of power units (PU) the carrier operates. Table 15 show the crash rates for the same motor carriers.
Both considered options noted above result in inclusion of a smaller proportion of small (5 or fewer power units) carriers than small carriers represent nationally. Therefore, neither of these options is numerically biased against small carriers, as demonstrated in Tables 15 and 16.
The highest crash rates identified (between 6.5 and 6.7) are all in the small (5 or fewer power units) carrier population. This suggests that small carriers are not unfairly selected under either of the two proposed models.
Table 16 presents the overall crash rates of carriers identified by two or more failed BASICs from inspections. The nation-wide crash rate of the general carrier population is 2.13 per 100 power units. The general carrier population crash rate was calculated on a consistent time frame as that of the carriers identified under the proposed process.
Of the two options presented, the proposed option identifies the carriers (262) that have the highest overall crash rate (8.28 crashes per 100 power units).
Although Option 1 has a higher net benefit than Option 2, the Agency notes that selecting Option 1 may require additional resources while Option 2 is largely resource neutral. The Agency can accommodate under Option 2 the number of investigations resulting in proposed unfit determinations based on its current resources. The number of enforcement cases, compliance agreements, and oversight required from this population approaches the capacity of the Agency's existing staff. Option 2 represents the best balance for the Agency with its limited resources. It should be noted that the cost of reallocating Agency resources is not included in this analysis. FMCSA seeks comment on this policy choice.
FMCSA proactively addressed concerns about the SMS in the development of this SFD proposal. In addition to the differences noted above, it is important to point out that other concerns about the system including disparities for long-haul and short-haul carriers; differences for urban and rural motor carriers, and enforcement differences by the States have all been considered. The long and short haul differences are minimized by the combination (long-haul) and straight truck (short haul) segmentation. The impacts of urban and rural transportation are factored into the calculation of the Crash Indicator BASIC failure rates. Lastly, while enforcement differences exist between the States, since the failure standards proposed in this rule are significantly higher than the SMS intervention thresholds, the patterns of non-compliance for the carriers that are proposed unfit are not the result of these disparities but are the result of recurring non-compliance.
As noted above, the Agency is proposing different SFD failure standards within each BASIC. The applicable failure standard for each motor carrier would be based on its assigned safety event group. If FMCSA did not establish different SFD failure standards for each safety event group, a disproportionately high number of small carriers (
Diagram 1 below shows an example of the absolute failure standard that corresponds to the worst performing 4 percent of carriers for the HOS Compliance BASIC. This data comes from Table 10 above.
The above diagram shows that establishing a single failure standard, without reference to the number of safety events to which a motor carrier is exposed, would disproportionately affect those carriers with fewer safety events—typically smaller carriers. For example, if the HOS Compliance BASIC SFD failure standard were set at 4.15 for all carriers, 4 percent of carriers with 11-20 inspections would fail. However, very few carriers in the remaining safety event groups have measures as high as 4.15. A carrier with many inspections (21 or more relevant inspections with violations) would be essentially immune to BASIC failure from on-road safety performance. Therefore, the SFD failure standard needs to be proportionate to the number of safety events.
FMCSA uses the same percentile equivalent (
A baseball analogy may provide some insight into this impact. A major league baseball player's number of at-bats is important to evaluating whether his batting average warrants demotion to the minor leagues. Likewise, a motor carrier's number of inspections is important in evaluating whether its performance warrants adverse SFD consequences. For example, 2 hits in 20 at-bats at the beginning of the baseball season (
Similarly, motor carriers with few inspections exhibit a wider range of performance measures than carriers with many more inspections. A batter might bat 5 for 10 (0.500 average) in the first week of the season (corresponding to a high absolute measure), but no batter sustains that level through 400 at bats. Similarly, a carrier could have an HOS Compliance BASIC violation in each of 5 inspections, but it would be almost impossible that a carrier would have 500 HOS Compliance BASIC violations in 500 inspections. The greater the number of events, be they at-bats or inspections, the narrower the range of realistic outcomes. Failure standards that incorporate the number of safety events thus ensure that the worst performing motor carriers across all sizes and numbers of safety events are subject to an absolute standard.
When appropriate, the motor carrier's BASICs measures are normalized to reflect differences in inspection and
Motor carrier exposure for the Unsafe Driving BASIC is normalized by carrier size using power units and vehicle miles traveled (VMT). Carriers with above-average CMV utilization, in terms of VMT per power unit as reported from MCMIS, receive a positive adjustment to account for the increased exposure to violations that result from miles operated by incorporating an Unsafe Driving Utilization Factor. The Unsafe Driving BASIC accounts for further carrier differences by dividing the carrier population into two segments based on the current mix of vehicles operated. This differentiates the levels of exposure associated with carriers that have fundamentally different types of operations.
The Unsafe Driving Utilization Factor is a multiplier that adjusts the average power unit values based on utilization in terms of VMT per average power unit where VMT data from the past 24 months are available. In cases where the VMT data have been obtained multiple times over the past 24 months for the same carrier, FMCSA proposes to use the most current VMT figure reported by the motor carrier during an investigation, reported online biennially, or reported on Forms MCSA-1 or MCS-150. The Utilization Factor would be calculated as follows:
(1) Determine carrier segment based on the types of vehicles the carrier operates (The types of vehicles are “combination”
(2) Calculate the VMT per average power unit by taking the most recent positive VMT data
(3) Use the information in (1) and (2) to find the utilization factor in Tables 2-3 and 2-4 to appendix B to part 385: VMT per Power Unit.
Use of failure standards that consider the number of safety events has precedent. The province of Ontario, Canada uses a similar approach in its Commercial Vehicle Operators Registration (CVOR) motor carrier safety rating system. A technical document that illustrates Ontario's safety rating failure standards based on a motor carrier's number of inspections is included in the docket for this document.
FMCSA proposes that the failure standard for each safety event group be the absolute performance measure corresponding to a given BASIC percentile at the time the standard is set. For example, the absolute failure standards that correspond to the 96th percentile in the HOS Compliance BASIC are presented above in Table 10. FMCSA specifically seeks comments on the use of absolute failure standards based on a motor carrier's number of inspections. In addition, the Agency requests information on the impact to commenters if the Agency were to move to a different safety event grouping approach—similar to Ontario's CVOR process. Under such a different approach, there would be more safety event groups in each BASIC and more corresponding BASIC failure standards. The carrier groupings would be narrower and more closely aligned to the motor carrier's exact number of inspections. For example, rather than grouping all motor carriers with 11-20 inspections for the Vehicle BASIC, as is proposed in this NPRM, a different approach might establish safety event groups and corresponding BASIC failure standards for all motor carriers with, for example, 11-13 inspections, 14-16 inspections, and 17-20 inspections.
FMCSA seeks comment on setting the standard at the same percentile for each safety event group. Would it be appropriate to allow the threshold to vary across safety event groups? If so, please provide data to support your position.
Unfit Method 2 would use data only from investigations. For example, investigations may begin after receipt of a complaint alleging a substantial violation of a regulation is occurring or has occurred, a crash report suggesting a substantial violation of a regulation occurred, or when a motor carrier's SMS BASIC percentiles meet or exceed intervention thresholds. The Agency proposes to use any of the investigation types used by the Agency during interventions—either an offsite focused, onsite focused, or an onsite comprehensive investigation to issue proposed SFDs. This approach would modify the Agency's current requirement for an onsite investigation in order to issue an SFD. Documentation supporting an unfit determination would be collected using existing enforcement guidelines and standards— including sampling methodologies.
If a motor carrier is cited for a violation of an acute regulation associated with a BASIC, it would fail that BASIC. If a motor carrier is cited for a violation of a critical regulation with violations discovered in a minimum of 10 percent violation of the records examined, it would fail that BASIC. If a motor carrier failed two or more BASICs due to violations of the proposed critical and/or acute regulations, this would result in a proposed unfit determination. This proposed SFD methodology raises the safety standard above that used in the current process. Only one violation of a critical regulation, at a 10 percent or higher violation rate, would be required to fail a BASIC, whereas, in the current process, two violations of critical regulations are generally required to fail a Factor.
The costs and benefits associated with this proposal only use investigation results from a one month period prior to a proposed SFD. FMCSA specifically seeks comments on the length of time that failed BASICs from investigations should be reviewed together with failed BASICS from on-road safety data to potentially result in a proposed SFD.
As a result of its analysis and alternatives development, FMCSA proposes to alter the list of critical and acute regulations. Analysis by FMCSA
Table 17 shows the revised acute and critical violations and the BASIC with which they would align. The current critical and acute regulations may be found at 49 CFR part 385, appendix B, section VII. In contrast to on-road inspection violations, violations cited during an investigation are not time or severity weighted, see section 2.3.7, 2.3.8, and 2.3.9 in proposed appendix B to part 385 below.
In some forums for SMS purposes, the Agency has referred to violations of certain critical and acute regulations as essential safety management violations and fundamental violations, respectively.
The critical and acute violations noted in Table 17 above have been used for the analysis in the Regulatory Evaluation accompanying this proposal. But the Agency is also considering whether to include the following violations and seeks comment specifically on these violations.
• § 390.35—Making, or causing to make, fraudulent or intentionally false statements or records or reproducing fraudulent records.
• § 392.4(b)—Requiring or permitting a driver to drive while under the influence of, or in possession of, a narcotic drug, amphetamine, or any other substance capable of rendering the driver incapable of safely operating a motor vehicle.
• § 392.5(b)(1)—Requiring or permitting a driver to drive a motor vehicle while under the influence of, or in possession of, an intoxicating beverage.
• § 392.5(b)(2)—Requiring or permitting a driver who shows evidence of having consumed an intoxicating beverage within 4 hours to operate a motor vehicle.
• § 392.16—A commercial motor vehicle which has a seat belt assembly installed at the driver's seat shall not be driven unless the driver has properly restrained himself/herself with the seat belt assembly.
• § 392.80(a)—No driver shall engage in texting while driving.
• § 392.80(b)—No motor carrier shall allow or require its drivers to engage in texting while driving.
• § 392.82(a)(1)—No driver shall use a hand-held mobile telephone while driving a commercial motor vehicle.
• § 392.82(a)(2)—No motor carrier shall allow or require its drivers to use a hand-held mobile telephone while driving a CMV.
• § 396.7(a)—Requiring or permitting operation of a motor vehicle in a condition likely to cause an accident or breakdown of the vehicle.
• § 396.17(a)—Using a commercial motor vehicle not periodically inspected.
As a result, the Agency seeks comment and data on these regulations and others that should be considered critical or acute. Lastly, the Agency seeks comment and data on how critical and acute regulations should be determined; is associated crash risk the best measurement, or is there a better or additional reason?
The statute requires the Agency to consider crashes in determining safety fitness.
The Agency proposes to determine preventability by applying the standards and procedures currently utilized in assessing preventability of recordable crashes when determining a safety rating. Those procedures make use of previously issued guidance for making preventability determinations, set out in FMCSA's
The Agency calculates a motor carrier's crash rate by multiplying the motor carrier's number of recordable interstate and intrastate crashes in the previous 12 months by 1,000,000. That result is divided by the motor carrier's fleet mileage during the previous 12 months. The failure standard for crash rates is 1.5 for general operations and 1.7 for urban operations. If the motor carrier exceeds the failure standard, the crashes will be reviewed for preventability. The crash rate will then be recalculated using only preventable crashes. If the motor carrier's preventable crash rate remains above the failure standard, the motor carrier would then fail the Crash Indicator BASIC.
In 1997, FMCSA's predecessor, the Federal Highway Administration, published a Final Rule (62 FR 60035) indicating that it would use a carrier's
During an investigation, it may be determined that violations of acute or critical regulations result in only one failed BASIC. However, the motor carrier may also have one additional BASIC over the SFD failure standard based on the most recent 24 months of
It should be noted that the Agency's analysis, including the estimated number of proposed unfit motor carriers, does not include violations of 49 CFR 391.11(b)(2) for English Language Proficiency (ELP). These violations are also not included in the proposed violation tables in appendix B of part 385. The Agency chose to do the analysis without this violation based on the Commercial Vehicle Safety Alliance's (CVSA) 2014 decision to remove this violation from it's out of service criteria. The Agency specifically seeks comments on this issue.
Congress and FMCSA have both acknowledged the increased risk associated with transportation of passengers. Currently, FMCSA also holds passenger motor carriers to more stringent intervention thresholds in SMS.
The Agency is considering an alternative, more stringent, proposal for passenger carriers that would result in a proposed unfit SFD. The proposal would have two elements. First, a passenger carrier would receive a proposed unfit SFD when it meets or exceeds failure standards comparable to the 75th percentile for either the Unsafe Driving or HOS Compliance BASIC. Under this part of the alternative proposal, a passenger carrier could be proposed unfit for failing either Unsafe Driving or HOS Compliance, without failing a second BASIC. Secondly, and in addition, FMCSA is considering a structure where a proposed unfit SFD would also result if a passenger carrier meets or exceeds SFD failure standards comparable to the 90th percentile when the absolute thresholds in two of the three other BASICs—Vehicle Maintenance, Driver Fitness or HM Compliance.
The Agency estimates that 270 passenger carriers would be proposed as unfit using these alternate failure standards. This would result in 93 more passenger carriers being proposed unfit than would result from using two failed BASICs comparable to the 96th and 99th percentiles, as elsewhere proposed in this document. Using data from on-road safety data and investigation results, the estimated crash rate for these 270 passenger carriers is 2.08 applying the same approach used in the Regulatory Evaluation. The national average for all passenger carriers is 1.09 crashes per 100 power units. The proposed unfit passenger carriers using these alternate failure standards had experienced a crash rate (2.08 per 100 power units) that was almost twice the national passenger carrier rate (1.09 per 100 power units) or an increase of 90% ((2.08-1.09/1.09)).
As a result, the Agency seeks feedback and data on whether passenger carriers should be held to more stringent SFD failure standards, that is, at an absolute value equivalent to the 75th percentile (or some other percentile less than the 96th percentile) for the Unsafe Driving and HOS Compliance BASICs failure standards, and equivalent to the 90th percentile (or some other percentile less than the 99th percentile) for the Driver Fitness, Vehicle Maintenance, HM Compliance, and Crash Indicator BASICs. The Agency also requests comment on whether the proposed failure standards are appropriate.
The Agency is also interested in alternative methods for identifying high risk passenger carriers during an investigation. It is considering lowering the minimum rate of violations for a pattern, for purposes of a critical regulation violation, from 10 percent to 5 percent or a lower number. FMCSA seeks comments on this concept.
The SMS also has lower intervention thresholds for HM carriers. As a result, the Agency seeks feedback and data on whether these carriers should be held to a more stringent standard (
Under this proposal, HM safety permit applicants would continue to be required to have a comprehensive onsite investigation comparable to the existing CR, conducted at the motor carrier's principal place of business, and would be issued a HM safety permit as long as they were not unfit and met other applicable requirements. Either inspections or another investigation after issuance of the HM safety permit could result in an unfit determination, however, thus affecting the HM safety permit status.
Under this proposal, the Agency notes that Mexican, Canadian, and Non-North American carriers registered with FMCSA could be found to be unfit based on their inspection data and investigation results.
Mexican long-haul carriers permitted to operate in this country beyond border commercial zones are required to have a compliance review before being granted standard authority. In the future, if long-haul authority is granted, the carrier would be required to have a comprehensive investigation comparable to an existing CR within 18 months of FMCSA granting the carrier provisional operating authority registration before being granted standard authority. Additionally, on-road safety data or findings from another investigation could result in an unfit determination, thus affecting the carrier's provisional authority status.
A MAP-21 amendment requires the Secretary to conduct initial and periodic safety reviews of for-hire motor carriers of passengers.
MAP-21 requires the Secretary to determine the safety fitness of each motor carrier of passengers through a simple and understandable rating system that allows passengers to compare their safety performance. MAP-21 also requires the Secretary to assign a safety fitness rating to each
As discussed previously, the Agency is proposing to determine only one category of safety fitness—unfit. This determination would also be made for some motor carriers of passengers through the monthly assessment of the inspection data. If the passenger carrier did not have 11 inspections in the previous 24 months by which to be adequately assessed, an investigation of the carrier's safety performance would be conducted.
Section 32707(b) also requires the Agency to consider requiring the prominent display of safety fitness rating information in each motorcoach terminal of departure, on the inside of the motorcoach vehicle, and at all points of sale for motorcoach services. The public has access to critical information about the safety record and ratings of motor carriers of passengers, including providers of motorcoach services, on the FMCSA Web site and through the Agency's SaferBus application.
FMCSA has structured this SFD proposal to identify those motor carriers with the highest crash risk. Carriers identified through two failed BASICs based solely on on-road safety data (using the 96/99 percentile threshold standard) have a crash rate of 8.28 crashes per 100 power units. All carriers with two failed BASICs (including carriers failing a BASIC due to a finding during an investigation and on-road safety data) have a crash rate of 4.39 crashes per 100 power units. This is compared to the nation-wide average crash rate of 2.13 crashes per 100 power units for all carriers.
The proposed use of on-road safety data would allow the Agency to identify and take action against unsafe motor carriers. Table 18 below illustrates both the number of carriers proposed unfit and the associated crash rate for two different options for failure standards for SFDs. Option 2 is the option proposed in this rulemaking.
The Agency used lessons learned from SMS and feedback from stakeholders
After receiving a proposed unfit safety fitness determination, a motor carrier would have various administrative proceedings available to it before the proposed determination becomes final.
This proposal would continue the existing administrative review procedure to challenge alleged errors committed in assigning the proposed unfit SFD. These requests are decided by FMCSA's Assistant Administrator. The proposed administrative review procedures in revised 49 CFR 385.15 would provide sufficient opportunity
As indicated above, FMCSA proposes to reduce the time for filing a petition for administrative review from the current maximum of 90 days to 15 days after the issuance of the proposed unfit SFD. FMCSA specifically requests comment on this proposed change in the general time for filing of petitions for administrative review, which will ensure that decisions will be made before the statutory time periods expire.
The second proposed administrative review procedure would be new and would provide for review based on missing data. Requests for such review would be decided by FMCSA's Field Administrators
The third proposed administrative process would revise FMCSA's existing process by allowing carriers that have a proposed unfit SFD to defer the final unfit SFD and continue to operate under a compliance agreement. The carrier would submit a corrective action plan and would agree to monitoring and performance terms. If the corrective action plan is found to be acceptable to the Agency, the motor carrier could operate under a compliance agreement. This proposal would not remove the proposed unfit determination unless the terms of the compliance agreement were met throughout an agreed upon period of time. In addition, the Agency's Web site would reflect that a motor carrier would be operating under a compliance agreement during the agreement period.
To initiate this process, a carrier would have to submit an acceptable corrective action plan within the time frames specified in proposed § 385.17(d). To be accepted, a corrective action plan would have to demonstrate that the carrier is willing and able to comply with applicable safety statutes and regulations and demonstrate significant changes in its deficient safety management processes. For example the carrier may have to demonstrate clearly defined safety policies and procedures, documented organizational roles and responsibilities for safety compliance, written qualification and hiring standards, training and communication plans, and ongoing compliance monitoring and tracking procedures. Other potential requirements might include, but would not be limited to, installing safety technology, providing reports or other documents, and training. While decisions on the terms of each compliance agreement would be made by FMCSA, standard requirements would include: (1) Monitoring for a defined period of time; and (2) strict safety performance standards that would have to be met or the carrier would be immediately declared unfit. Motor carriers would be expected to maintain performance
The fourth unfit SFD administrative review available to a motor carrier would be added to establish the new procedures that a motor carrier would follow to resume interstate motor carrier operations following a final unfit SFD. FMCSA would require a motor carrier that has received a final unfit SFD, and wants to begin operating again, to have its safety fitness evaluated. The carrier would also need to have received new safety registration and, if necessary, new operating authority.
Therefore, an unfit motor carrier would be required to submit a corrective action plan with its applications for USDOT and operating authority registration. The corrective action plan must describe the actions the motor carrier completed or is taking to address its safety deficiencies. An unfit motor carrier must receive approval of its corrective action plan from the appropriate Field Administrator before FMCSA would issue a new registration for the motor carrier.
The unfit motor carrier would also be required to demonstrate to FMCSA that it meets the safety fitness standard and is willing and able to comply with all statutory and regulatory requirements before receiving an updated registration to operate. Finally, the unfit motor carrier would have to participate in the New Entrant Safety Assurance Program—subpart D of part 385, or, if applicable, either subpart B of part 385 for Mexico-Domiciled Carriers or subpart H of part 385 for New Entrant Non-North America-Domiciled Carriers, upon resuming motor carrier operations in the United States.
FMCSA estimates that 364 more motor carriers than the number that currently receive a final unsatisfactory safety rating will receive a final unfit SFD after one or more of the administrative review proceedings discussed above. However, these four proceedings provide greater opportunities for motor carriers to comply with the federal safety regulations. For carriers that would have been rated unsatisfactory under the old methodology and would be determined to be unfit under the new methodology, the proposed appeals proceedings give them an opportunity to continue operating while complying with the federal safety regulations under more intense scrutiny from FMCSA. Carriers that do not successfully appeal the proposed unfit SFD, or that choose not to appeal or submit a corrective action plan, would receive a final determination of unfit. In addition, in instances where a motor carrier is
Using MCMIS data from September 2010 to September 2012, the Agency analyzed the hypothetical effect of this proposed compliance agreement rule. The results of the Agency's analysis showed that 490 motor carriers would have received a proposed unfit SFD in the first month of the analysis period—September 2010. To determine how many carriers would receive a final unfit determination within the next 24 months after entering into a compliance agreement in September 2010, the Agency assumed that a carrier with a proposed unfit determination would be required to operate below the more stringent SMS intervention thresholds noted in Table 3 above.
Of the 490 carriers that would have received proposed unfit SFDs in the first analyzed month of September 2010, the Agency's analysis showed that 74 (15%) went inactive or ceased operations within 24 months. Of the remaining 416 carriers, 122 (29%) never had sufficient data in the next 24 months to recalculate their performance measure and, therefore, would be found unfit. Another 169 (41%) would have had sufficient data and would have continued to observe the terms of their compliance agreement and then the proposed unfit would have been retracted, and 125 (30%) would be out of compliance at some time before September 2012 and would be found unfit. This baseline analysis indicated that about half (48%) of the final unfit determinations would occur within the first 6 months of the compliance agreement. The Agency acknowledges that the real rate of carriers becoming unfit is expected to be lower because these carriers would be aware of the consequences of failing to comply with the regulations.
FMCSA proposes one revision to the conditions required for the Agency to provide funds under its MCSAP grant program. FMCSA proposes to amend existing 49 CFR 350.201(a) to add the phrase “by enforcing orders on commercial motor vehicle safety and HM transportation safety.” This change would make it clear that States receiving MCSAP grants would be expected to enforce various orders issued by FMCSA, for example, motor carrier out-of-service orders entered by FMCSA under 49 CFR 385.13, 386.72, 386.73, 386.83, or similar provisions. This provision would assist the stopping of vehicles at the roadside when they are operated by motor carriers that disregarded such out-of-service orders, thereby preventing them from continuing to operate CMVs on the Nation's highways. FMCSA notes that for-hire carriers determined to be unfit will have their operating authority revoked. Therefore, each of the company's vehicles are currently required to be placed out of service during a roadside inspection.
For this population of unfit carriers, the proposed change to the MCSAP rules would impose no additional burden on the States. However, for private motor carriers and exempt for-hire carriers, some States may need legislative or regulatory action to enable their roadside inspectors to place CMVs operated by these carriers out of service. The States would have 3 years from the effective date of the final rule to accomplish these legislative or regulatory actions. FMCSA specifically seeks comments on the impacts to the States from these changes and requests information on implementation impacts that should be considered in finalizing this rule.
FMCSA proposes to begin applying the proposed methodology to all motor carriers registered with the Agency on the effective date of the final rule. FMCSA proposes that the final rule be effective 90 days after publication. As a result, the proposed unfit SFDs would result from failed BASICs resulting from the monthly update of inspection data or from an investigation initiated on or after the 91st day after publication of the final rule.
FMCSA seeks comments on how the Agency might phase in the implementation of the final rule to lessen the initial burden on the motor carrier industry, the Agency, and its enforcement partners.
FMCSA also proposes procedures for carriers that receive a notification of safety rating and fitness determination under the current provisions of 49 CFR 385.11 in the period before this proposed rule is issued as a final rule and becomes effective. Proceedings regarding fitness determinations for such carriers, including administrative reviews under 49 CFR 385.15 and corrective action plans under 49 CFR 385.17, would continue to be handled under the provisions in existence when the proceeding was initiated until those proceedings are completed.
The explanation of the SFD methodologies are contained in proposed appendix B to part 385. Although most elements of appendix B are proposed as regulations, FMCSA proposes to issue certain other elements of appendix B as guidance for regulated entities and the public in the form of general statements of enforcement policy. Such statements would be included as part of the text of appendix B and published in the
The elements of the proposed SFD methodology that would be treated as statements of enforcement policy in appendix B to part 385 would include the following:
1. Violation Severity Weights in Tables 1 to 5 in section 5 of appendix B to part 385; and
2. Time Weights for violations in BASICs in section 2.3.2 of appendix B to part 385.
Safety-based violations documented through inspections and associated with each BASIC are assigned severity weights. The stronger the relationship between a violation and crash risk, the higher its assigned weight. The Agency based these weights on the “Carrier Safety Measurement System (CSMS) Violation Severity Weights”
Publication of the severity and time weights as guidance would advise affected persons and the public of the details of the methodology that the Agency expects to follow. At the same time, it would allow the Agency the flexibility to modify these minor technical elements of the proposed methodology, as needed, based on experience and additional data.
Future revisions or adjustments of these elements would be published in the
As explained earlier in this preamble,
To implement the proposed SFD methodology, FMCSA would amend parts 350, 365, 385, 386, 387, and 395. The primary changes would be in subpart A (§§ 385.1 through 385.21) and appendix B to part 385. Most regulatory changes are to the terms used in the proposed new methodology. FMCSA proposes to make conforming changes in all the places where the terms “satisfactory,” “conditional,” “unsatisfactory,” “less than satisfactory,” and “rating” occur. These include subparts B, D, E, F, H, and I in part 385, as well as part 350, part 365, appendix B to part 386, subparts A and C of part 387, and part 395.
FMCSA proposes to amend existing 49 CFR 350.201 to add the phrase “by enforcing FMCSA orders on commercial motor vehicle safety and hazardous materials transportation safety and by” in paragraph (a). This provision would make it clear that States receiving MCSAP grants would be expected to enforce various orders issued by FMCSA, for example, motor carrier out-of-service orders and Orders to Cease Operations entered by FMCSA under 49 CFR 385.13, 385.325, 386.72, 386.73, 386.83, or similar provisions for for-hire and private motor carriers. This provision would assist FMCSA in stopping vehicles at the roadside that are operated by motor carriers that disregard such out-of-service orders, and would prevent them from continuing to operate CMVs on the Nation's highways.
FMCSA proposes to revise §§ 365.109(a)(3) and 365.507(f) to make the language consistent with the proposed new methodology.
Conforming amendments would be made to paragraph (a) of this section, to delete references to “safety ratings” and “unsatisfactory.” Current text directing motor carriers to take remedial action when required, and prohibiting motor carriers determined to be unfit from operating a CMV, would remain.
Roughly half of the definitions in § 385.3 would remain substantially the same. However, definitions for the terms “Reviews” and “Safety rating or rating” (including all four subsidiary definitions) would be removed. Definitions of the terms “Acute regulation,” “Assistant Administrator,” “Behavior Analysis and Safety Improvement Category,” “Compliance review,” “Comprehensive investigation,” “Crash,” “Critical regulation,” “Failure standard,” “Field Administrator,” “Inspection,” “Intervention,” “Investigation,” “Measure,” “Operating authority registration,” “Performance standard,” “Registration,” “Roadability review,” “Safety audit,” “Safety event group,” “Safety management controls,” “Safety registration,” and “Unfit” would replace the deleted terms with language to reflect the new SFD terminology and procedures. The new definition of “Compliance review” is much shorter than the definition under “Reviews . . . (1) Compliance review” that is being removed. The current version has extraneous information, such as when such a review may be done and what a possible outcome could be, which is not directly relevant to defining what the term means. The substantive definition of “Preventable accident” would not change, but the term itself would be changed by replacing the word “accident” with the word “crash.” FMCSA uses the terms “crash” and “accident” interchangeably, but prefers the term “crash.”
The section would be revised to add a new paragraph (a) to reflect the inclusion of the alcohol and controlled substances testing requirements in 49 CFR parts 40 and 382. Current paragraphs (a) through (k) would be redesignated as (b) through (l). In addition, in the second sentence of the undesignated introductory paragraph of this section, the words “To meet the safety fitness standard” would be replaced by “To avoid a safety fitness determination of unfit.”
This section would be revised to add the main data elements of the proposed methodology. The proposed changes to this section would specifically include, in the factors to be considered in the SFD process, information obtained from driver/vehicle inspections, crashes, or investigations. The title of § 385.7 would be changed by replacing the words “determining a safety rating” with the words “making a safety fitness determination,” so that the title would read “Factors to be considered in making a safety fitness determination.”
In the first sentence of the undesignated introductory paragraph, all the words after “The factors to be considered . . .” would be removed and replaced with language stating that the factors to be considered during a safety fitness determination may include information from operations in the United States, Canada, and Mexico from driver/vehicle inspections, an examination of the carrier's records during investigations, or crash data. FMCSA would also remove the term “safety review” because it is obsolete.
Paragraph (a) would be changed by replacing the word “accidents” with the word “crashes.” As was stated in the analysis for § 385.3, FMCSA uses the terms “crash” and “accident” interchangeably, but prefers the use of the term “crash.” Paragraphs (b), (c), (d) and (e) would be revised to set out the different sources of data and the factors considered in the new methodology. In addition, the word “accident” would be replaced with “crash.” Existing paragraph (g) would be redesignated as new paragraph (f). In redesignated paragraph (f), the term “hazardous material,” would be added between the words “CMV” and “and motor carrier safety rules.” A new paragraph (g) would be added to provide for the admissibility as evidence in safety fitness proceedings inspection reports
A new section 385.8 is proposed to be added to provide specific and clear rules governing the filing and service of documents in safety fitness proceedings.
The title of § 385.9 would be changed to read “Determining a carrier's safety fitness.”
Paragraph (a) would be revised to describe the new methodology in proposed new appendix B to part 385. The proposed appendix describes in detail the methodology and the standards for determining a carrier's fitness.
Existing paragraph (b) would be redesignated as new paragraph (d) and everything after the phrase “Unless otherwise specifically provided in this part, a” would be changed to state that safety fitness determination based upon an investigation of a carrier's safety management controls in accordance with the standard set forth in § 385.5(a) will be issued as soon as practicable. A new paragraph (b) would be added to clarify that a motor carrier's SFD will be based on data received through the date of the proposed SFD under § 385.11(c).
A new paragraph (c) would be added to clarify that the motor carrier's status as unfit would not change during the administrative review process under either § 385.15 or § 385.16, or a review of a request under § 385.18. This new paragraph utilizes a provision moved from current § 385.17(j) with revisions for clarification.
Throughout this section, including the heading, changes are made to conform the language to the proposed methodology. In paragraph (a), the words “safety rating resulting from a compliance review” and “the review” would both be replaced by the words “unfit safety fitness determination.” Also, FMCSA is replacing the phrase “FMCSA's headquarters office” in the last sentence of paragraph (a) with the word “FMCSA”. This change would allow the Agency to issue the proposed unfit SFD notice from other FMCSA offices that may be closer to the subject motor carrier or may allow the Agency to realize savings for labor and production costs or contracted services in markets other than Washington, DC Provisions would be added governing service of the notice of proposed unfit SFD on representatives of the carrier in accordance with new § 385.8.
Existing paragraph (b) would be removed because it would no longer be applicable to this proposed rule.
Existing paragraphs (c) through (e) would be redesignated as new paragraphs (b) through (d) with appropriate terminology changes in each paragraph. A new paragraph (e) would be added to alert a motor carrier that it may request FMCSA to perform an administrative review of a proposed or final unfit SFD based upon a claim of unconsidered inspection data as described in proposed new § 385.16.
Existing paragraph (f) would be amended to include appropriate terminology changes to reflect the use of compliance agreements instead of corrective action plans to defer the entry of a final unfit SFD.
A new paragraph (g) would be added to alert a motor carrier of the process set out in new § 385.18 for applying to resume operations after an SFD has become final.
A new § 385.12 would provide that issuance of proposed safety fitness determination would also serve as notice to the carrier that its registration would be revoked if the fitness determination becomes final.
Most of the changes we are proposing in this section are conforming amendments to reflect the nomenclature of the proposed methodology. For example, the words “unsatisfactory safety rating” would be replaced throughout with “unfit safety fitness determination.” Paragraph (a)(2) would be amended by removing the last sentence that allows a motor carrier to operate for up to 60 additional days if FMCSA determines that the motor carrier is making a good-faith effort to improve its safety fitness. Although this provision is allowed by statute,
Paragraph (b) would consolidate the existing provisions of paragraphs (b) and (c) prohibiting a Federal agency from using any motor carrier receiving a final unfit determination.
The date the out-of-service order issued under paragraph (d) becomes effective would be the date that the SFD becomes final under paragraph (a). FMCSA seeks comment on this approach. Provisions would also be in revised paragraph (e) to allow for revocation of safety registration and any operating authority registration for any motor carrier receiving a final unfit determination.
This section is largely based on current administrative review provisions, with some revisions and additions. First, in several paragraphs, the terms “safety rating” or “rating” would be replaced by the term “safety fitness determination,” and the word “unsatisfactory” would be replaced with “unfit.” The title “Assistant Administrator” would be substituted for “Chief Safety Officer.” While Assistant Administrator and Chief Safety Officer are titles for the same position within FMCSA, the change in terminology is made for consistency with the administrative review provisions of 49 CFR part 386.
A new paragraph (b) would specify the minimum requirements for the contents of the petition. New provisions would be added to paragraph (c) to require that the original petition for administrative review be served on the appropriate Field Administrator (which would be the official filing). Copies of the petition for administrative review would also be required to be served both on: (1) Adjudications Counsel for the Assistant Administrator; and (2) with the Agency through the U.S. Department of Transportation, Docket Services. Paragraph (c) also provides the time limits within which a motor carrier must petition for administrative review.
A new paragraph (d) provides the Field Administrator with an opportunity to respond to the petition for administrative review.
Paragraph (e) would allow the Assistant Administrator to ask the motor carrier or the Field Administrator for more information or to attend a conference. If the motor carrier did not provide the information, the Assistant Administrator could dismiss the request for review.
Paragraph (f) would establish the time for a decision by FMCSA on the request for review and provide time frames within which FMCSA would complete its review as soon as practicable.
Paragraph (g) would provide for a standard of review that places the burden on the motor carrier to show material error. It also provides a definition of what constitutes material error for the purpose of such review.
Proposed paragraph (h) provides that the Assistant Administrator makes the final and conclusive decision as to the compliance and inspection data underlying the SFD. It also establishes that in subsequent administrative reviews the Assistant Administrator will not re-review factual matters decided in a prior administrative review.
Proposed paragraph (i) provides that a decision by the Assistant Administrator constitutes final Agency action unless reconsideration is requested.
Proposed paragraph (j) provides the procedures for either the motor carrier or the Field Administrator to petition the Assistant Administrator for reconsideration of a decision. However, the petition does not stay the imposition of a final SFD unless a stay is granted by the Assistant Administrator pursuant to new paragraph (k).
Proposed paragraph (a) would provide that a motor carrier may file a request for FMCSA to conduct an administrative review of a proposed unfit SFD because of unconsidered, valid data from an inspection that occurred before the proposed determination. The request would be based on a motor carrier's determination of an FMCSA failure to include inspection data which, if included, would have resulted in a different SFD.
Proposed paragraph (b) would provide that the motor carrier must file its request for administrative review in writing and serve it on the appropriate Field Administrator.
Proposed paragraph (c) would provide that the motor carrier's request for an administrative review of a proposed SFD with unconsidered inspection data must include specific information to be considered a valid request.
Proposed paragraph (d) would provide that such a request must be filed no later than the 10th day after the issuance of the proposed unfit.
Proposed Paragraph (e) would provide that FMCSA would issue a decision and notify the carrier within 10 days after receiving a request from an HM or passenger motor carrier that has received a proposed unfit SFD, and within 20 days after receiving a request from any other motor carrier.
Proposed Paragraph (f) would provide the standard of review of the submitted unconsidered inspection data. The burden of proof would be on the motor carrier to demonstrate that FMCSA did not include all inspection report data.
Proposed paragraph (g) would provide that the decision of the Field Administrator would constitute final Agency action, and no additional request for administrative review by FMCSA would be available. Paragraph (h) would provide that a stay of the final SFD could be requested from and granted by the Field Administrator.
This section is based on the current provisions of § 385.17, with significant revisions, primarily to include the use of compliance agreements between FMCSA and the motor carrier to defer a final unfit determination. Throughout the section, the language would be changed to conform to the proposed SFD methodology. In several places, the term “safety rating” or “rating” would be replaced by the term “safety fitness determination.” FMCSA would also replace the word “unsatisfactory” with “unfit,” wherever it occurs. In paragraph (a), the Agency would also remove the term “conditional.”
Existing paragraph (b) would be revised to require service of the request on the appropriate Field Administrator in accordance with proposed new § 385.8. Existing paragraph (c) would be expanded to address the documentation a motor carrier must submit to show that it has taken appropriate corrective action. Paragraph (d) would set the time for submission of a request for deferral and to operate under a compliance agreement. Failure to submit a timely request for deferral and to continue to operate under a compliance agreement would waive any opportunity to seek such administrative relief.
Existing paragraphs (e) through (j) would be removed and replaced with new paragraphs that would establish the procedures and standards for operating under a compliance agreement, as well as providing for the appropriate outcomes if the carrier either complies with or does not comply with the terms of the compliance agreement. Paragraph (f) provides that the Field Administrator's actions either deferring a final SFD or declining to enter into a compliance agreement would not be subject to administrative review, except in certain limited circumstances involving an abuse of discretion, as specified in paragraph (j).
A new § 385.18 would be added to describe the procedures a motor carrier would follow to resume interstate and intrastate motor carrier operations following an unfit SFD. In paragraph (a), FMCSA would require a motor carrier that has received a final unfit SFD and wants to begin operating again to demonstrate why it should no longer be considered unfit. The carrier would also need to have received reactivated safety registration and, if required, new operating authority registration. The procedures in this section may be revised in the final rule in order to coordinate with any changes proposed or adopted for the Agency's “MAP-21 Enhancements and Other Updates to the Unified Registration System,” Regulatory Identification Number 2126-AB56.
Paragraph (b) would inform the unfit motor carrier that it must submit a corrective action plan (CAP) consistent with § 385.17(c) along with its applications for safety and operating authority registration. The corrective action plan must describe the actions the motor carrier is taking to resolve its safety deficiencies.
Paragraph (c) would provide that the corrective action plan submitted by the unfit motor carrier must be acceptable to FMCSA, and the carrier and the Agency would have to enter into a compliance agreement that conforms to § 385.17(c) and (e) before new registration could be issued.
Paragraph (d) would inform the motor carrier that it may not resume operations until it is notified that it has been granted registration and its USDOT number is active.
The heading of § 385.19 would be revised to read, “Availability of safety fitness determinations.” In paragraph (a), the word “ratings” would be replaced by “fitness determinations.” FMCSA would also replace the outdated phrase “by remote” with the phrase “on the Internet available through” to inform the public that final SFDs will be available on the Agency's Web site.
Paragraph (b) would change the method the Agency would use to make final SFDs and would make information about carriers operating under a compliance agreement available to the public.
A new § 385.21 would be added containing transition provisions that would govern the status of motor carriers that have been issued a final determination of unfit on the basis of an unsatisfactory safety rating under the current procedures. In addition, paragraph (b) contains proposed procedures for carriers that receive a notification of safety rating and fitness determination under the current provisions of 49 CFR 385.11 in the
FMCSA proposes several conforming amendments to 49 CFR part 385, subpart B, Safety Monitoring System for Mexico-Domiciled Carriers, in light of the proposed changes to the general safety fitness procedures. FMCSA proposes to make conforming amendments to §§ 385.101, 385.105, 385.109, and 385.117.
Currently, Mexico-domiciled carriers seeking permanent operating authority to operate beyond the municipalities and commercial zones on the United States-Mexico border must fulfill certain statutory requirements, including obtaining a satisfactory safety rating after a compliance review under 49 CFR part 385. This proposal, however, would change the number of fitness categories from three to one—“unfit.” As proposed, a carrier that is not determined to be unfit would have an acceptable degree of safety fitness and would not be prohibited from operating in commerce.
For several reasons, FMCSA believes that the proposed SFD process for long-haul Mexican carriers would be sufficiently stringent to satisfy Congress's intent that carriers possess a satisfactory degree of safety. First, a Mexico-domiciled carrier must satisfactorily complete the FMCSA-administered Pre-Authorization Safety Audit (PASA) required under 49 CFR part 365, to ensure the existence of sound management programs, including compliance with controlled substances, alcohol, and hours-of service regulations, before it is granted provisional authority to operate in the United States. Second, the proposed methodology in Appendix B is more stringent than the current methodology for determining safety fitness, and this proposal for conforming changes ensures continued stringent and comparable oversight of long-haul Mexican carriers. As a result of this proposal, Mexican carriers could be proposed unfit based on on-road safety data, or an investigation, or a combination of these two sources of data. Under 49 CFR 385.119, Mexico-domiciled motor carriers are subject to the safety monitoring system in part 385, subpart B. They are also subject to the general safety fitness procedures established in subpart A of part 385 and to compliance and enforcement procedures applicable to all carriers regulated by the FMCSA.
FMCSA proposes conforming amendments to 49 CFR part 385, subpart C, Certification of Safety Auditors, Safety Investigators, and Safety Inspectors. In light of the proposed addition of the term “investigation” in relation to the types of interventions that may result in an unfit SFD, FMCSA would amend §§ 385.201 and 385.203.
Currently, an FMCSA employee, or a State or local government employee funded through the MCSAP, must be certified to perform a compliance review, safety audit, roadability review, or roadside inspection.
The proposed SFD relies to a much greater extent on on-road safety data and investigations, regardless of whether the investigations are done offsite, onsite, or are focused or comprehensive. Because this proposal would replace the term “compliance review” in many places throughout the FMCSRs, FMCSA needs to add “investigation” to the types of interventions for which FMCSA, State, and local government employees must obtain and maintain certification as required by statute.
FMCSA proposes to add the phrase “an investigation” before the phrase “a compliance review” wherever it appears in §§ 385.201 and 385.203. This proposal would require that any FMCSA, State, or local government employee who performs any review of a motor carrier's operations to determine compliance with the appropriate regulations (
FMCSA would modify the New Entrant Safety Assurance Program by adding a new paragraph (a) to § 385.307 and redesignating current paragraphs (a), (b), and (c) as paragraphs (b), (c), and (d). This proposed new paragraph (a) would adopt provisions similar to §§ 385.119 and 385.717 on the continuing applicability of safety fitness and enforcement procedures. FMCSA proposes to add this provision to ensure that each new entrant is aware that during the monitoring period under the New Entrant Safety Assurance Program, these new entrants are subject to:
(1) The general safety fitness procedures established in subpart A of part 385 and any final rule modifying subpart A; and
(2) Compliance and enforcement procedures applicable to all carriers regulated by FMCSA.
FMCSA proposes conforming amendments to 49 CFR part 385, subpart E, HM Safety Permits. Sections 385.407, 385.409, 385.413, 385.421, and 385.423 would all be changed to reflect changes in the language and procedures for the SFD methodology proposed in this rulemaking.
In § 385.503(a), FMCSA proposes to delete the term “safety rating” and replace it with the term “safety fitness determination,” to conform the language to the proposed SFD methodology.
FMCSA proposes conforming and nomenclature changes to the Non-North America-domiciled carrier provisions,
Because appendix B to part 385 would set out all of the proposed SFD methodology, it would be considerably changed. FMCSA would replace certain terms in the headings and body of appendix B consistent with the changes discussed above for other sections of part 385. Current terms would be replaced with new terms, including “safety fitness determination” and “unfit.” The codification system for the appendix would be changed to make it easier to reference and amend, and the introductory paragraphs would be considerably revised.
FMCSA is considering the use of low, medium, and high weightings rather than the numeric weightings currently used in SMS and specifically seeks comments on this issue.
In Table 5 of the violation severity tables, HM Compliance BASIC Violations, 43 violations of 49 CFR part 178 have been marked with a (
The applicable regulations for MC 330 compressed gas cargo tanks are referenced in Table 5 with a (
The applicable regulations for DOT 51, 56, and 57, and IM 101 and 102, portable tanks are also referenced in Table 5 with a (
The applicable regulations for MC 306, 307, and 312 concerning cargo tanks are referenced in Table 5 with a (
FMCSA will make the applicable former rules for these HM specification tanks, as well as the applicable ICC and DOT final rules concerning these HM specification tanks, available on the FMCSA Web site at
Appendix B to part 386 would be changed to conform the language to the new SFD methodology. Throughout paragraph (f), everywhere the phrase “final `unsatisfactory' safety rating” appears it would be replaced by the phrase “final unfit safety fitness determination.”
A new paragraph (j) would be added to describe the violations that the Agency proposes to take into account for purposes of section 222 of the Motor Carrier Safety Improvement Act of 1999, Public Law 106-159, 49 U.S.C. 521 note (“Minimum and Maximum Assessments”).
Sections 387.7 and 387.309 would be changed to reflect the proposed new SFD determination methodology, removing references to the former safety rating system.
Section 395.15 would be changed to reflect the proposed new SFD determination methodology, removing references to the former safety rating system.
FMCSA has determined that this action is a significant regulatory action within the meaning of Executive Order 12866, as supplemented by Executive Order 13563, 76 FR 3821 (January 21, 2011), and within the meaning of the Department of Transportation regulatory policies and procedures, because the annualized net benefits are $231.1 million and because of the level of public interest. Congress, industry, NTSB, and safety advocates alike have significant interest in how FMCSA determines the safety fitness of motor carriers. All of these groups have expressed concerns over how the Agency currently determines the safety fitness of motor carriers.
The revised SFD would be used to identify and take action against unfit motor carriers that have failed to implement and maintain adequate safety management controls for achieving compliance with the FMCSRs and HMRs. It would also evaluate the degree to which a motor carrier complies with applicable regulations. The additional carriers found unfit under the proposed rule may bear compliance costs to return to compliance, which as discussed further in the separate Regulatory Evaluation are not quantified at this stage of the rulemaking. FMCSA expects that the proposed rule would also impose costs on drivers of carriers ordered out-of-service, specifically, those drivers who would have to search for new driving work. Nevertheless, the new SFD methodology would involve more efficient and effective utilization of currently available data and resources. The Agency's proposed approach would ensure that only the worst performing motor carriers would be issued a proposed unfit determination based solely on on-road safety performance data, while striking a balance between the population identified and the ability of enforcement resources to handle the associated workload. The full Regulatory Evaluation is in the docket for this rulemaking, and a brief summary is set out below.
Under the proposed SFD methodology, every month a carrier's performance would be compared to an absolute failure standard that would be set in regulation based on each safety event group. Because the absolute failure standard would not change from month to month, changes in another company's performance would not impact the motor carrier. The carrier's SFD measure reflects its own performance against the failure standard, not other carriers' performance.
The Agency considered options for failure standards based on absolute measures. Using today's levels of safety performance across all carriers in SMS, these measures would equate roughly to the 95th, 96th, 98th, and 99th percentiles for all carriers in SMS. In addition, before failing the BASIC, the carrier would have to have 11 or more inspections, each with 1 or more violations, for the previous 24-month period. The proposed failure standards for each BASIC, as calculated by analyzing inspections with violations, are presented in tables in the NPRM. The Agency's preferred Option 2 proposes to use the absolute failure standards that equate to the 99th percentile for the Driver Fitness, Vehicle Maintenance, and HM Compliance BASICs. This failure standard, which would be set in the final rule, is equivalent to SMS percentile that defines the worst 1 percent of motor carriers with 11 or more inspections, each with 1 or more violations.
The Regulatory Evaluation in the docket examines two options for failure standards used to identify motor carriers for a proposed unfit SFD. For Option 1, identification of unfit carriers under the proposed process uses failure standards equivalent to the measures that would place a motor carrier at the 95th percentile for the Unsafe Driving and HOS Compliance BASICs and the 98th percentile for the Driver Fitness, Vehicle Maintenance, HM Compliance, and Crash Indicator BASICs. For Option 2 (the Agency's preferred option), these failure standards are equivalent to measures based on the 96th and 99th percentiles, respectively. For example, a carrier at the 96th percentile in the Unsafe Driving BASIC has worse safety performance in that BASIC than 96 percent of carriers. Carriers that are identified at or above these failure standards are proposed as unfit and then either placed OOS or remain in service under a compliance agreement subject to approval by FMCSA.
Carriers that are identified at or above these failure standards would be proposed as unfit and then would be either placed OOS or remain in service under a compliance agreement subject to approval by FMCSA. Motor carriers that remain in service but fail to significantly improve their safety performance within a set period of time under the compliance agreement—for example, those that fail to achieve an appropriate level of compliance with the applicable regulations—would be required to cease operations. That is, the initial proposed unfit determination would be made final.
Under this proposal's preferred Option 2—with the failure performance standards at or above the 96th and 99th percentiles—the proposed method identified 1,805 more poor-performing carriers than the current SFD process, while the current SFD process identified 106 carriers that the proposed unfit SFD method would not, and 1,017 carriers were identified by
Given that identification and the final unfit date remove a portion of the poorly-performing carriers from active service while the remainder improve their safety performance and remain in service, a portion of the crashes of these carriers that takes place in the next 12 months (from the time of the final unfit) are thus prevented, and comprise the annual benefits of the rule. The
In 2011, under the
The remaining 83.9 percent of carriers identified but not ultimately shut down improve their safety-performance. These improvements (specifically, those involving the net differential group of carriers identified by the proposed process relative to the current process) should be credited as benefits to the proposed process. The Compliance Review Effectiveness Model (CREM)
The CREM has several limitations that are common to transportation safety research. For one, there is no pure control group, because FMCSA does not have the option to not intervene with carriers it knows to be unsafe. Workarounds for the lack of pure statistical control are discussed in more detail in the CREM. The newer model, Carrier Intervention Effectiveness Model (CIEM), which has been peer reviewed, uses size group-specific comparison groups and measures the statistical significance of the net improvement in crash rates of reviewed carriers. While the two models' results are not directly comparable due to their differing methodologies, their estimates of crash rate reductions among reviewed carriers have similar orders of magnitude across the carrier size groups.
There is also the potential for “regression to the mean” to obscure the true benefits of interventions. This phenomenon is a possible statistical consequence of the rarity of crash events. It can occur when an individual carrier experiences a period of high crash rate; this is likely to be followed by a period of low crash rate, regardless of interventions or changes in safety practices, simply due to the infrequency of crash events.
However, the low probability of a spike in crashes at any given time makes it unlikely that “regression to the mean” is a substantial contributor to the reduction in crash rate attributed by the CREM to the compliance review process. Carriers that receive a compliance review may not be in the midst of a crash spike. Carriers that have a crash spike may not get a compliance review shortly after the spike. This is because carriers are not primarily selected for compliance reviews based on their current crash rate, but rather their overall safety performance as assessed through roadside inspection and/or investigation results. For “regression to the mean” to be a substantial issue for this analysis, it would need to be the case that carriers are being identified during a period of usually high crash rate for that carrier. As the intervention process is implemented now, if a carrier's crash rate drops after they receive a compliance review, there is no reason to assume that drop is a correction to the carrier's “actual” mean crash rate as opposed to a response to FMCSA's intervention.
Next, consider that most of the services provided by the 16.1 percent of carriers that are ordered out of service are likely to be shifted to new or existing carriers. This contrasts with a crash rate of 4.51 crashes per 100 power units for those carriers identified under the proposed process. This suggests the replacement of an identified carrier with one from the carrier population in general would result in a 52.8 percent improvement (0.528 = (4.51−2.13) ÷ 4.51).
In sum, the safety performance and thus the frequency of crashes attributed to the 83.9 percent of carriers that were not ordered OOS realize an improvement of 17.4 percent, and the safety performance and thus the frequency of crashes attributed to the 16.1 percent of carriers put OOS and replaced by an average carrier realize an improvement of 52.8 percent.
As stated above, the 41 fatal, 508 injury, and 872 tow-away crashes (under Option 2) attributable to the additional carriers identified by the proposed SFD process are where the benefits of the change are realized. Assuming the final rule goes into effect in 2017, the carrier population is assumed to increase at an annual rate of 2.17 percent, and applying that rate to these crashes results in 45 fatal (44.68 = 41 × (1.0217
Allocating 83.9 percent of these crashes to carriers that improved performance and were not ordered OOS results in 38 fatal, 465 injury, and 797 tow-away crashes apportioned. Allocating the remaining 16.1 percent of crashes to carriers that were permanently put OOS, results in 7 fatal, 89 injury, and 153 tow-away crashes apportioned. Given that the carriers permanently placed OOS are believed by the Agency to have worse safety performance than that of the carriers that improved, proportioning the crashes by percentage results in a conservatively low number of crashes assigned to those put out of service. Since the carriers permanently placed OOS are replaced with ones realizing an improvement of 52.8 percent, rather than 17.4 percent, assigning by proportion results in a conservatively-low estimate of the overall crash reduction of the rule.
The 83.9 percent of carriers opting to make the necessary changes to become compliant realize improvements of 17.4 percent. Given the 17.4 percent improvement, 7 fewer fatal crashes (6.6 = 17.4% of 38), 81 fewer injury crashes (80.9 = 17.4% of 465), and 139 fewer tow-away crashes (138.7 = 17.4% of 797) occur. The 16.1 percent of carriers placed permanently OOS are replaced with carriers realizing improvements of 52.8 percent. Given the 52.8 percent improvement, 4 fewer fatal crashes (3.70 = 52.8% of 7), 47 fewer injury crashes (46.99 = 52.8% of 89), and 81 fewer tow-away crashes (80.78 = 52.8% of 153) occur. So the total estimated crash reduction for 2017, the first year of the rule, is 11 fewer fatal crashes (11 = 7 + 4), 128 fewer injury crashes (128 = 81 + 47), and 220 fewer tow-away crashes (220 = 139 + 81). The same process applies for all subsequent years. The number of carriers—and thus crashes—is increased by 2.17 percent from the previous year; these crashes are allocated as described above to those carriers put permanently OOS and those that opted to make the necessary changes, and then the improvement rates of 52.8 percent and 17.4 percent are applied to the respective groups.
The average cost of a fatal crash is estimated at $11,019,000 (in 2013 dollars), $10,885,000 of which is the monetized value of a statistical life (VSL) component. The remaining $134,000 is comprised of medical costs, emergency services, property damages, lost productivity from roadway congestion, and environmental costs. It is assumed that the VSL increases at a rate of 1.18 percent annually.
The average cost of an injury crash is estimated at $453,000 (in 2013 dollars), $393,000 of which is the monetized VSL component. The remaining $60,000 is comprised of medical costs, emergency services, property damages, lost productivity from roadway congestion, and environmental costs. By 2017, the VSL component (in 2013 dollars) increases from $393,000 to $412,000 ($412,000 = $393,000 × (1.0118
The average cost of a tow-away crash is estimated at $72,000 (in 2013 dollars), $50,000 of which is the monetized VSL component. The remaining $22,000 is comprised of medical costs, property damages, lost productivity from roadway congestion, and environmental costs. By 2017, the monetized VSL component (in 2013 dollars) increases from $50,000 to $52,000 ($52,000 = $50,000 × (1.0118
The same process applies for all subsequent years. The monetized VSL component is increased by 1.18 percent from the previous year, and added to the $134,000 other costs of a fatal crash, resulting in that year's benefits in 2013 dollars.
Given the cost of a fatal crash of $11,542,000, an injury crash of $472,000, and a tow-away crash of $74,000 in 2017 (in 2013 dollars), and given the 11 fewer fatal, 128 fewer injury, and 220 fewer tow-away crashes estimated in 2017, the benefits of the rule for Option 2 that occur in 2017 total $203.7 million. The fatal crash component is $127 .0 million ($126,962,000 = $11,542,000 × 11), the injury crash component is $60.4 million ($60,416,000 = $472,000 × 128), and the tow-away crash component is $16.3 million ($16,280,000 = $74,000 × 220). The same process applies for all subsequent years. Table 20 below summarizes the benefits for the first year of the rule for preferred Option 2.
For preferred Option 2, ten-year projected benefits are $1.692 billion discounted at seven percent and $1.998 billion discounted at three percent. The rule is proposed to have its first full year of implementation in 2017 based on this proposed rule in 2015 and a final rule in 2016. The costs of the rulemaking are those incurred by:
(1) Drivers who were employed by additional carriers ordered OOS who are now forced to seek new employment. Under preferred Option 2, 1,855 drivers are estimated to be adversely affected in this manner annually.
(2) The additional carriers identified as deficient under the proposed SFD that opt to improve performance, thereby incurring costs to achieve compliance.
(3) FMCSA, resulting from information system update and modification expenses (estimated as a one-time cost of $3.0 million incurred in year 2017 under both Option 1 and Option 2).
The carrier population is assumed to increase at an annual rate of 2.17 percent,
Assuming that the real wages of drivers remain constant, then the total cost (in 2013 dollars) for each affected driver working for non-compliant carriers ordered OOS affected remains $4,003. So the total cost of the rule to drivers working for non-compliant carriers ordered OOS in 2017, the first year of the rule, is $8.1 million in 2013 dollars ($4,003 per driver × 2,020 drivers = $8,086,060, rounded to the nearest tenth of a million). Assuming the projected 2.17-percent carrier population increase continues through 2026 and real wages for drivers remain constant, then under Option 2, for the ten years from 2017 through 2026, the annualized costs of the rule to drivers working for non-compliant carriers ordered OOS at a seven percent discount rate are $9.4 million ($9.43 million, rounded to the nearest tenth of a million).
In addition to drivers, deficient carriers ordered OOS also adversely affect the shippers, brokers, and freight forwarders that use them regularly. These entities must spend time finding replacement carriers. However, turnover in the trucking and passenger carrying industries is significant enough that establishing new commercial relationships with motor carriers is a routine course of business for shippers, and many shippers have relationships with several carriers that compete for their business. The Agency does not perceive the marginal increase in carrier turnover that may result from this proposed rule as an impact that has quantifiable costs, nor as an impact for which the costs rise to a level of significance. Short-term decreases in the supply of shipping services resulting from deficient carriers being placed OOS may marginally increase the cost of shipping as other carriers adjust to meet the demand for services; however, this also incentivizes market entry by new carriers, thereby minimizing the potential for a shift in the real long-term equilibrium price for shipping services.
Deficient carriers identified by the current or proposed system are either ordered OOS or improve their safety performance to the point that they become compliant. Those carriers opting to improve to achieve compliance incur expenses in making these required improvements. This is true of carriers under both the current and proposed processes, so the additional expenditures related to the rule are those incurred by the additional carriers identified by the proposed process.
FMCSA recognizes that the social benefits of this proposed rule are associated with increased compliance with regulations that motor carriers are already expected to bear the compliance costs of. However, FMCSA notes that a carrier that may be newly identified as deficient under the proposed SFD may under the current SFD be given a conditional safety rating and allowed to continue operating. While the regulations that carriers are expected to be in compliance with are not changing under the proposed SFD, the differing identification methodology introduced with this proposed rule—such that a portion of borderline carriers under the current SFD would be identified as deficient under the proposed SFD—argues in favor of characterizing the costs borne by the newly-identified carriers in order to achieve compliance as new costs resulting from the proposed rule.
The Agency lacks data to evaluate the magnitude of the costs to those additional carriers that would be identified as deficient under the proposed SFD that seek to achieve compliance in order to remain in operation. There are many types of violations that can contribute to a carrier's identification as deficient and the range of compliance costs may differ—even across carriers with similar violations—due to factors such as: Size of carrier, experience and training levels of drivers, and experience of fleet maintenance personnel. For this reason, this cost element is noted as “not estimated” throughout summary-level tables in both this document and the supporting Regulatory Evaluation.
The Agency welcomes input on ways to estimate costs that would be borne by these newly-identified carriers to achieve compliance.
FMCSA has placed the complete Regulatory Evaluation for this proposal in the docket identified above. FMCSA seeks comment on any aspect of the Regulatory Evaluation for this proposal.
Under the Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, Title II, 110 Stat. 857), when an agency issues a rulemaking proposal, the agency must “prepare and make available for public comment an initial regulatory flexibility analysis” that will
(1) A description of the reasons why action by the Agency is being considered.
Utilizing a crash and data driven new process, SFD is an improvement on the efficiency of the current method of determining carrier safety fitness. This rulemaking would (primarily) revise 49 CFR part 385, Safety Fitness Procedures (the Agency's current procedure) through a Notice of Proposed Rulemaking (NPRM; RIN 2126-AB11). It would make conforming amendments to 49 CFR parts 365, 386, 387, and 395.
(2) A succinct statement of the objectives of, and legal basis for, the proposed rule.
The proposed SFD process would improve the effectiveness of the current safety fitness determination. Its goal is a more performance-based method of determining the safety-fitness of motor carriers conducting commercial operations in interstate commerce. The efficiency gains mean more carrier contacts for the same expenditure of resources.
This NPRM is based primarily on the authority of 49 U.S.C. 31144, as amended. It also relies on the provisions of 49 U.S.C. 31133. Delegation of authority is conferred from the Secretary of Transportation to FMCSA under 49 CFR 1.87(f). A full description of the legal basis for this proposal is contained in the Legal Basis section of the NPRM.
(3) A description—and, where feasible, an estimate of the number—of small entities to which the proposed rule will apply.
Because FMCSA does not have direct revenue figures for all carriers, power units serve as a proxy to determine the carrier size that would qualify as a small business given the SBA's revenue threshold. In order to produce this estimate, it is necessary to determine the average revenue generated by a power unit.
With regard to truck power units, the Agency has estimated that a power unit produces about $186,000 in revenue annually (in 2013$). According to the SBA, motor carriers with annual revenue of $27.5 million are considered small businesses. This equates to 148 power units (147.77 = $27,500,000 ÷ $186,100/power unit). Thus, FMCSA considers motor carriers of property with 148 power units or fewer to be small businesses for purposes of this analysis. The Agency then looked at the number and percentage of property carriers with recent activity that would fall under that definition (of having 148 power units or fewer). The results show that over 99 percent of all interstate property carriers with recent activity have 148 power units or fewer. This amounts to about 493,000 carriers. Therefore, the overwhelming majority of interstate carriers of property would be considered small entities.
With regard to passenger-carrying vehicles, the Agency conducted a preliminary analysis to estimate the average number of power units for a small entity earning $15 million annually, based on an assumption that passenger carriers generate annual revenues of $161,000 per power unit. This estimate compares reasonably to the estimated average annual revenue per power unit for the trucking industry ($186,000). A lower estimate was used because passenger-carrying CMVs generally do not accumulate as many vehicle miles traveled (VMT) per year as trucks, and it is therefore assumed that they would generate less revenue per power unit on average. The analysis concluded that passenger carriers with 93 power units or fewer ($15,000,000 ÷ $161,000/power unit = 93.2 power units) would be considered small entities. The Agency then looked at the number and percentage of passenger carriers registered with FMCSA that have no more than 93 power units. The results show that about 98% of active passenger carriers have 93 power units or less, which is about 10,000 carriers. Therefore, the overwhelming majority of passenger carriers would be considered small entities to which this NPRM would apply.
Every active motor carrier would be, in essence, subject to this regulation because each has the chance of being identified under the new system if their performance warrants it (that is, if it is poor enough). Hence the rulemaking would apply to all of the estimated 503,000 motor carriers (493,000 property + 10,000 passenger) that are considered as small entities.
Under Option 2 (FMCSA's preferred option), there are an expected 1,530 additional carriers (1,824—294) identified under the proposed process that would opt to improve to the point of achieving compliance, and all should be considered small entities. However, while all 503,000 small entities are subject to the rule, about 1,824 carriers (this carrier count includes those carriers that went OOS in the year following final unfit determination under the proposed SFD) are expected to be impacted and an estimated 1,530 of them are projected to opt to improve after being identified under the proposed process.
Under Option 1, there are an expected 1,728 additional carriers (2,059—331) identified under the proposed process that would opt to improve to the point of achieving compliance (again, these counts include those carriers that went OOS in the year following final unfit determination under the proposed SFD), and all should be considered small entities. However, while all 503,000 small entities are subject to the rule, about 2,059 carriers are expected to be impacted and an estimated 1,728 of them are projected to opt to improve after being identified under the proposed process; therefore, the proposed rule requires no added burden of any type on compliant small entities.
(4) Reporting, record keeping, and other compliance requirements (for small entities) of the proposed rule, including an estimate of the classes of small entities that will be subject to the requirement and the types of professional skills necessary for preparation of the report or record.
The proposed rule would require no additional reporting, record keeping, or other compliance requirement burden on small entities.
(5) Duplicative, overlapping, or conflicting Federal rules.
The FMCSA is not aware of any other rules which duplicate, overlap, or conflict with the proposed action. FMCSA is the sole Federal Agency responsible for determining the safety fitness of motor carriers and operators—and that safety fitness is in fact the subject of this rule.
(6) A description of any significant alternatives to the proposed rule which minimize any significant impacts on small entities.
FMCSA is considering whether to phase the implementation of the final rule over a period of time, such as one or two years. A recent memorandum from the President directed Executive departments and agencies to consider ways of lessening the burden of compliance on small entities, such as a phased or delayed implementation, when a rule may have a significant economic impact on a substantial number of small entities.
This rulemaking would not impose an unfunded Federal mandate, as defined by the Unfunded Mandates Reform Act of 1995,
As discussed earlier in this proposed rule, the Agency estimates proposing unfit SFDs for 262 motor carriers per year based on inspection data, 2,674 motor carriers based on investigations, and 120 motor carriers based on a combination of inspection and investigation data. The rule is set to have its first full year of implementation in 2017 based on proposed rule in 2015 and a final rule in 2016. The costs of the rulemaking are those incurred by drivers who were employed by additional carriers ordered OOS who are now forced to seek new employment. The carrier population is assumed to increase at an annual rate of 2.17 percent as noted earlier, so that by 2017 the 1,824 identified carriers under Option 2 would increase to 1,988 (1,988 = 1,824 × (1.0217
Assuming that the real wages of drivers remain constant, then the total cost (in 2013 dollars) for each driver affected remains $4,003. So the total cost of the rule in 2017 to drivers working for non-compliant carriers ordered OOS the first year of the rule, is $8.1 million in 2013 dollars ($4,003 per driver × 2,020 drivers = $8,086,060, rounded to the nearest tenth of a million). Assuming the projected 2.17-percent carrier population increase continues through 2026 and real wages for drivers remain constant, then under Option 2, for the ten years from 2017 through 2026, the annualized costs of the rule to drivers working for non-compliant carriers ordered OOS at a seven percent discount rate are $9.4 million ($9.43 million, rounded to the nearest tenth of a million). Thus, expenditures by State, local, and tribal governments, and the private sector, of $9.4 million annually do not rise to the threshold of $155 million or more in any 1 year for the Unfunded Mandates Reform Act of 1995. Comments are welcome on this analysis.
This proposed action meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden.
This proposed rulemaking would not effect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights.
Executive Order 13132 requires FMCSA to develop an accountable process to ensure “meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications.” “Policies that have federalism implications” are defined in the Executive Order to include regulations that have “substantial direct effects 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.” Under the Executive Order, FMCSA may construe a Federal statute to preempt State law only where, among other things, the exercise of State authority conflicts with the exercise of Federal authority under the Federal statute.
This proposed action has been analyzed in accordance with the principles and criteria contained in Executive Order 13132, and it has been determined that this NPRM does have Federalism implications or a substantial direct effect on the States. Under this rule, the States may choose to participate in MCSAP grants to conduct inspections and motor carrier investigations that will be the basis for FMCSA's SFDs. FMCSA has statutory authority to adopt a requirement that States receiving grants from MCSAP enforce orders issued by FMCSA related to CMV safety and HM transportation safety, to include placing an unfit motor carrier's driver and CMV OOS after FMCSA has determined a motor carrier is unfit.
FMCSA notes that it has communicated with the States on the proposed requirements for States. Most recently, FMCSA sent a letter to the States through the National Governors' Association advising them this proposed rule would be published this year proposing requirements for the States to make changes to enforce orders issued by FMCSA related to CMV safety and hazardous materials transportation safety. The letter briefly summarized section 49 U.S.C. 31102, and asked them to participate in this NPRM's comment period.
The Paperwork Reduction Act of 1995
FMCSA is not proposing to conduct general investigations on a category of individuals or entities. The collections of information in this SFD proposal would be against specific entities on which the Agency has opened a case file. Such a case file would be opened when a motor carrier is charged with one or more applicable violations of Federal, State, or local laws or regulations that occurred while
FMCSA has therefore determined that there are no new information collection requirements associated with this proposed rule requiring approval under the Paperwork Reduction Act of 1995.
The Agency analyzed this proposed rule for the purpose of the National Environmental Policy Act of 1969 (NEPA)
FMCSA has also analyzed this proposed rule under the Clean Air Act, as amended, section 176(c),
FMCSA has analyzed this proposed action under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution or Use. We have determined preliminarily that it would not be a “significant energy action” under that Executive Order, because it would not be economically significant and would not be likely to have a significant adverse effect on the supply, distribution, or use of energy.
FMCSA evaluated the environmental effects of this NPRM in accordance with Executive Order 12898 and determined that there are neither environmental justice issues associated with its provisions nor any collective environmental impact resulting from its promulgation. Environmental justice issues would be raised if there were “disproportionate” and “high and adverse impact” on minority or low-income populations. None of the alternatives analyzed in the Agency's deliberations would result in high and adverse environmental impacts on these groups.
FMCSA has analyzed this proposal under Executive Order 13045, titled “Protection of Children from Environmental Health Risks and Safety Risks.” The Agency does not believe this Executive Order is implicated, because the proposed rule would neither be economically significant, nor would it pose an environmental risk to health or safety that may disproportionately affect children.
FMCSA analyzed this rulemaking in accordance with the principles and criteria in Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. This rulemaking does not significantly or uniquely affect the communities of the Indian tribal governments or impose substantial direct compliance costs on tribal governments. Thus, the funding and consultation requirements of Executive Order 13175 do not apply and no tribal summary impact statement is required.
Rulemakings may affect how personally identifiable information (PII) about individuals is kept and shared. FMCSA ownership of the information is not relevant in determining the need to ensure that FMCSA regulations do not impose, or require or encourage others to impose, privacy intrusions that are not reasonably necessary to achieve the purpose of the regulations.
Section 522 of the Transportation, Treasury, Independent Agencies and General Government Appropriations Act, 2005,
In order to ensure the Agency's data handling conforms to applicable legal, regulatory, and policy requirements regarding privacy, FMCSA analyzed this proposed rulemaking to determine whether it would impact the way information is handled. It analyzed the risks and effects the rulemaking might have on collecting, maintaining, and sharing PII and examined and evaluated protections and alternative processes for handling information to mitigate potential privacy risks. PII is any information that permits the identity of an individual to whom the information applies to be reasonably inferred by either direct or indirect means, singly or in combination with other data. Examples of PII include but are not limited to physical and online contact information, Social Security number, and driver's license number.
The Agency does not believe this proposed rulemaking would change the Agency's data collection, handling, use, sharing, and security of PII data. The current PII data handling requirements conform to applicable legal, regulatory, and policy requirements regarding privacy. The proposal would not have any effects on collecting, maintaining, and sharing PII, but would continue the Agency's protections and processes for handling PII to mitigate potential privacy risks.
FMCSA is aware of the requirements in section 5202 of the recently enacted Fixing America's Surface Transportation Act, Public Law 114-94 (FAST Act) (Dec. 4, 2015) (adding 49 U.S.C. 31136(g)). FMCSA finds, however, that publication of an advance notice of proposed rulemaking is unnecessary and contrary to the public interest in this case. The rule proposed today has been under development at FMCSA for over 10 years, and it represents a public investment of thousands of Federal employee and contractor hours and
FMCSA encourages you to participate in this rulemaking by submitting comments, reply comments, and related materials. All comments received will be posted without change to
Initial comments may address any issue raised in the NPRM and the background documents in the docket (
If you submit a comment or a reply comment, please include the docket number for this rulemaking (FMCSA-2015-0001), indicate the specific section of this document to which each comment or reply comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments, reply comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so the Agency can contact you if it has questions regarding your submission.
To submit your comment or reply comment online, go to
FMCSA will consider all comments, reply comments and material received during the comment period and may change this proposed rule based on your comments.
To view comments, as well as documents mentioned in this preamble as being available in the docket, go to
In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to
Grant programs-transportation, Highway safety, Motor carriers, Motor vehicle safety, Reporting and recordkeeping requirements.
Administrative practice and procedure, Brokers, Buses, Freight forwarders, Mexico, Motor carriers, Moving of household goods.
Administrative practice and procedure, Highway safety, Mexico, Motor carriers, Motor vehicle safety, Reporting and recordkeeping requirements.
Administrative practice and procedure, Brokers, Freight forwarders, Hazardous materials transportation, Highway safety, Motor carriers, Motor vehicle safety, Penalties.
Buses, Freight, Freight forwarders, Hazardous materials transportation, Highway safety, Insurance, Intergovernmental relations, Motor carriers, Motor vehicle safety, Moving of household goods, Penalties, Reporting and recordkeeping requirements, Surety bonds.
Highway safety, Motor carriers, Reporting and recordkeeping requirements.
In consideration of the foregoing, FMCSA proposes to amend title 49, Code of Federal Regulations, chapter III, as follows:
49 U.S.C. 13902, 31101-31104, 31108, 31136, 31140-31141, 31161, 31310-31311, 31502; and 49 CFR 1.87.
(a) Assume responsibility for improving motor carrier safety by enforcing FMCSA orders on all commercial motor vehicle safety and hazardous materials transportation safety, and by adopting and enforcing State safety laws and regulations that are compatible with the FMCSRs (49 CFR parts 390 through 397) and the HMRs (49 CFR parts 107 (subparts F and G only), 171 through 173, 177, 178, and 180), except as may be determined by the Administrator to be inapplicable to a State enforcement program.
5 U.S.C. 553 and 559; 49 U.S.C. 13101, 13301, 13901-13906, 14708, 31138, and 31144; and 49 CFR 1.87.
(a) * * *
(3) All motor carrier applications will be reviewed for consistency with FMCSA's safety fitness determination criteria. Applicants with unfit safety fitness determinations from FMCSA will have their applications rejected.
(f) FMCSA may grant standard long-haul operating authority to a Mexico-domiciled carrier no earlier than 18 months after the date that provisional operating authority is granted and only after a comprehensive investigation or on-road safety data determines that the Mexico-domiciled carrier is not “unfit” as set out in subpart B of part 385 of this chapter and the Mexico-domiciled carrier is not proposed “unfit” based on the Agency's safety fitness determination criteria.
49 U.S.C. 113, 504, 521(b), 5105(e), 5109, 5113, 13901-13905, 31133, 31134, 31135, 31136, 31137(a), 31144, 31148, and 31502; Sec. 113(a), Pub. L. 103-311, 108 Stat. 1676; Sec. 408, Pub. L. 104-88, 109 Stat. 958 (49 U.S.C. 31136 note); Sec. 350, Pub. L. 107-87, 115 Stat. 864 (49 U.S.C. 13902 note); and 49 CFR 1.87.
(a) This part establishes FMCSA's procedures to determine the safety fitness of motor carriers, to direct motor carriers to take corrective action when required, and to prohibit motor carriers determined to be unfit from operating a CMV.
The additions read as follows:
The definitions in part 390 of this chapter apply to this part, except where otherwise specifically noted.
(1) Unsafe driving;
(2) Driver fitness;
(3) Vehicle maintenance;
(4) Hours of service (HOS) compliance;
(5) Hazardous materials (HM);
(6) Controlled substance/alcohol; and
(7) Crash indicator.
A motor carrier must meet the safety fitness standard set forth in this section. Intrastate motor carriers subject to the hazardous materials safety permit requirements of subpart E of this part must meet the equivalent State requirements. To avoid a safety fitness determination of unfit, the motor carrier must demonstrate it has adequate safety management controls in place, which function effectively to ensure acceptable compliance with applicable safety requirements to reduce the risk associated with:
(a) Controlled substances and alcohol use and testing requirement violations (parts 40 and 382 of this title);
(b) Commercial driver's license standard violations (part 383 of this chapter);
(c) Inadequate levels of financial responsibility (part 387 of this chapter);
(d) The use of unqualified drivers (part 391 of this chapter);
(e) Improper use and driving of motor vehicles (part 392 of this chapter);
(f) Unsafe vehicles operating on the highways (part 393 of this chapter);
(g) Failure to maintain crash registers and copies of crash reports (part 390 of this chapter);
(h) Non-compliance with the Agency's Hours of Service Regulations (part 395 of this chapter);
(i) Inadequate inspection, repair, and maintenance of vehicles (part 396 of this chapter);
(j) Transportation of hazardous materials, driving and parking rule violations (part 397 of this chapter);
(k) Violation of hazardous materials regulations (parts 170 through 180 of this title); and
(l) Motor vehicle crashes, as defined in § 390.5 of this chapter, and hazardous materials incidents, as defined in §§ 171.15 and 171.16 of this title.
The factors to be considered during a safety fitness determination may include information from operations in the United States, Canada, and Mexico from driver/vehicle inspections, an examination of the carrier's records during investigations, or crash data. The factors may include any or all of the following:
(a)
(b) Frequency and severity of regulatory violations identified during investigations and whether similar violations have increased or decreased over time.
(c) Frequency and severity of regulatory violations identified during roadside inspections of motor carrier operations in commerce and, if the motor carrier operates in the United States, of operations in Canada and Mexico.
(d) Number and frequency of out-of-service violations of motor carrier operations in commerce and, if the motor carrier operates in the United States, of operations in Canada and Mexico.
(e) For motor carrier operations in commerce and, if the motor carrier operates in the United States, in Canada and Mexico: Frequency of crashes; hazardous materials incidents; crash rate per million miles; indicators of preventable crashes; and whether such crashes, hazardous materials incidents, and preventable crash indicators have increased or declined over time.
(f) Number and severity of violations of CMV, hazardous material and motor carrier safety rules, regulations, standards, and orders that are both issued by a State, Canada, or Mexico and compatible with Federal rules, regulations, standards, and orders.
(g)
(a)
(b)
(1) Handing it to the person;
(2) Leaving it at the person's office with a clerk or other person in charge or, if not one is in charge, in a conspicuous place in the office; or
(3) If the person has no office or the office is closed, at the person's dwelling
(4) Mailing it using the United States Postal Service or a commercial delivery service, in which case service is complete upon mailing;
(5) Sending it by electronic means if the person consented in writing and the service is effected in the manner identified in the consent, in which case service is complete upon transmission but is not effective if the serving party learns that it did not reach the person to be served; or
(6) Delivering it by any other means that the person consented to in writing, in which case service is complete when the person making service delivers it to the agent designated to make delivery.
(c)
(d)
(e)
(f)
(a) FMCSA, using the factors prescribed in § 385.7 as computed under the safety fitness determination methodology set forth in Appendix B of this part and based upon data received by FMCSA through the date of the proposed determination, shall determine whether the motor carrier ensures compliance with the regulations set forth in § 385.5 and shall assign a safety fitness determination accordingly.
(b) Except as noted in §§ 385.16 and 385.17, a motor carrier's safety fitness determination will be based on data received by FMCSA through the date of the proposed determination under § 385.11(c).
(c) If the proposed determination becomes final under this part, it shall remain in effect during the period of administrative review under § 385.15 or § 385.16, or any review of a request under § 385.18.
(d) Unless otherwise specifically provided in this part, a safety fitness determination based upon an investigation of a carrier's safety management controls in accordance with the standard set forth in § 385.5(a) will be issued as soon as practicable.
(a) FMCSA will provide a motor carrier with written notice of a proposed unfit safety fitness determination as soon as practicable. The notice will take the form of a letter issued from FMCSA and will include a list of FMCSR and HMR safety and compliance deficiencies that resulted in the unfit safety fitness determination which the motor carrier must correct.
(1) The Agency may serve the written notice on the motor carrier by any of the means set forth in § 385.8 that are reasonably calculated to provide notice.
(2) The notice may be made upon:
(i) An individual officer, director, agent, or any representative identified by the motor carrier on filings submitted to the Agency;
(ii) A resident agent appointed in accordance with the laws of the State of formation; or
(iii) An agent designated for service of process as a condition of operating authority registration.
(b) When FMCSA issues a notice of proposed unfit safety fitness determination, that notice becomes the final safety fitness determination after the following time periods:
(1) For motor carriers transporting hazardous materials in quantities requiring placarding or transporting passengers by CMV—45 days after the date of the notice.
(2) For all other motor carriers operating CMVs—60 days after the date of the notice.
(c) A notice of a proposed unfit safety fitness determination advises the motor carrier that FMCSA has made a preliminary determination that the motor carrier is unfit to continue operating in commerce and that the prohibitions in § 385.13 will be imposed after 45 or 60 days, as provided in § 385.13(a), if necessary safety improvements are not made.
(d) A motor carrier may request FMCSA to perform an administrative review of a proposed unfit safety fitness determination. The process and the time limits are described in § 385.15.
(e) A motor carrier may request FMCSA to perform a data sufficiency review of a proposed unfit safety fitness determination based upon a claim of unconsidered inspection data. The process and the time limits are described in § 385.16.
(f) A motor carrier may request a change to a proposed unfit safety fitness determination when it can demonstrate it has taken action to correct its safety deficiencies that resulted in the unfit safety fitness determination and has executed a compliance agreement with FMCSA. The process and the time limits are described in § 385.17.
(g) When a proposed unfit safety fitness determination becomes final, a motor carrier that has been issued a final unfit safety fitness determination may apply for safety registration and operating authority registration when it can demonstrate it has taken action to correct its deficiencies that resulted in the unfit safety fitness determination based on its corrective action plan. The process and the time limits are described in § 385.18.
A proposed safety fitness determination of “unfit” under § 385.11 serves as notice to the motor carrier that its safety and, if applicable, operating authority registrations will be revoked within 45 or 60 days, as applicable, if it does not receive approval to operate under a compliance agreement under § 385.17 or the safety fitness determination is not changed as a result of an administrative review proceeding under § 385.15 or § 385.16. The revocation will be effective on or after the date the unfit determination becomes final, in accordance with a further order issued under the provisions of either § 385.13(e) or § 385.17(f).
(a) Generally, a motor carrier operating in interstate commerce that has been determined to be unfit is prohibited from operating a CMV in interstate or intrastate commerce. Information about motor carriers, including their most current safety fitness determination, is available from FMCSA on the Internet at http://[FMCSA will provide the Web site in the final rule].
(1) Motor carriers transporting hazardous materials in quantities requiring placarding and motor carriers
(2) All other motor carriers with an unfit safety fitness determination are prohibited from operating a CMV in motor carrier operations in interstate or intrastate commerce beginning on the 61st day after the date FMCSA serves the notice of proposed unfit safety fitness determination.
(b) A Federal agency must not use a motor carrier if that carrier holds an unfit safety fitness determination.
(c) [Reserved]
(d)
(2) If a motor carrier's intrastate operations are declared out-of-service by a State, FMCSA must issue an order placing out-of-service the carrier's operations in interstate commerce. The following conditions apply:
(i) The State that issued the intrastate out-of-service order participates in the Motor Carrier Safety Assistance Program and uses the FMCSA safety fitness determination methodology set forth in appendix B of this part or an equivalent methodology approved by FMCSA; and
(ii) The motor carrier has its principal place of business in the State that issued the out-of-service order.
(iii) The order prohibiting the motor carrier from operating a CMV in interstate commerce shall remain in effect until the State determines that the carrier is not unfit.
(3) Any motor carrier that operates CMVs in violation of this section is subject to the penalty provisions of 49 U.S.C. 521(b) and appendix B to part 386 of the FMCSRs.
(e) Revocation of registration. FMCSA will issue an order revoking the safety and, if applicable, operating authority registrations of a motor carrier effective on the date a proposed unfit safety fitness determination becomes final.
(a)
(b)
(1) A copy of the written notice of proposed safety fitness determination served on the motor carrier, and the investigation report or any other report that formed the basis of the safety fitness determination.
(2) An explanation of the material error(s) the motor carrier believes FMCSA committed in assigning the safety fitness determination;
(3) A list of all factual and procedural issues in dispute and any information or documents that support the motor carrier's argument;
(4) A copy of any pending request for unconsidered inspection data filed under § 385.16.
(c)
(ii) The motor carrier must also serve a copy of the petition on FMCSA's Adjudications Counsel, by mail, to 1200 New Jersey Ave. SE., Washington, DC 20590-0001; or by fax to 202-366-3602; or by electronic mail to
(iii) Upon service, the motor carrier must also promptly file a copy of its petition for administrative review and any attachments, with the U.S. Department of Transportation Dockets, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.
(2)
(3)
(d)
(e)
(f)
(1) Thirty (30) days after Adjudications Counsel receives a petition for review from a hazardous materials or passenger motor carrier that has received a proposed or final unfit safety fitness determination.
(2) Forty-five (45) days after Adjudications Counsel receives a petition for review from any other motor carrier that has received a proposed or final unfit safety fitness determination.
(g)
(h)
(i)
(j)
(2) A written petition for reconsideration, including any attachments, must be served and filed in the same manner as a petition for administrative review as specified in this section.
(3) Either the motor carrier or the FMCSA Field Administrator may serve an answer to a petition for reconsideration within 30 days after service of the petition for reconsideration on Adjudications Counsel.
(4) Following the close of the 30-day period, the Assistant Administrator will issue a written decision on the petition for reconsideration.
(5) The decision on the petition for reconsideration will constitute final Agency action.
(k)
(a) A motor carrier may ask an FMCSA Field Administrator to conduct an administrative review of a proposed unfit safety fitness determination because of unconsidered, valid data from inspections that occurred in the 24 month period before the proposed safety fitness determination. The motor carrier is required to prove that recalculating the safety fitness determination using the previously unconsidered data would remove the proposed unfit safety fitness determination. This section provides the exclusive remedy to request review of unconsidered inspection data.
(b)
(c)
(1) A copy of the written notice of proposed safety fitness determination served by FMCSA;
(2) Copies of all additional inspection reports that, if included, would have resulted in FMCSA's determination that the carrier met the safety fitness standard in § 385.5;
(3) An explanation of why consideration of the additional inspection would remove the proposed unfit safety fitness determination; and
(4) A copy of any pending request for administrative review made under § 385.15.
(d)
(e)
(1) Within 10 days after service of a request from a hazardous materials or passenger motor carrier that has received a proposed unfit safety fitness determination;
(2) Within 20 days after service of a request from any other motor carrier that has received a proposed unfit safety fitness determination.
(f)
(g)
(h)
(a) A motor carrier that has taken action to correct the deficiencies that resulted in a proposed unfit safety fitness determination may request a deferral of a final unfit safety fitness determination and that a Field Administrator permit it to continue to operate under a compliance agreement.
(b)
(c)
(d)
(1) Fifteen (15) days after service of the notice of a proposed unfit safety fitness determination for motor carriers transporting hazardous materials in quantities requiring placarding or transporting passengers by CMV.
(2) Thirty (30) days after service of the notice of a proposed unfit safety fitness determination for all other motor carriers operating CMVs.
(3) Failure to timely request deferral and a compliance agreement waives the right to seek deferral and to continue to operate under a compliance agreement.
(e)
(f)
(g)
(h)
(i)
(j)
(a)
(b)
(1) Apply for registration under the provisions of part 390, subpart E, of this chapter and if applicable, part 365 of this chapter; and
(2) File an original corrective action plan covering the items outlined in § 385.17(c), including actions planned or completed to resolve the safety deficiencies that resulted in the unfit safety fitness determination, with the Office of Registration and Safety Information, 1200 New Jersey Ave. SE., Washington, DC 20590.
(c)
(1) The motor carrier has satisfied the requirements of part 390, subpart E, of this chapter and if applicable part 365 of this chapter;
(2) The motor carrier's evidence of corrective action is acceptable; and
(3) The motor carrier agrees to operate under a compliance agreement that conforms to the requirements of § 385.17(c) and (e).
(d)
(a) Final unfit safety fitness determinations and information about carriers operating under a compliance agreement will be made available to other Federal and State agencies in writing, telephonically, or on the Internet available through computer access.
(b) The final unfit safety fitness determination assigned to a motor carrier and information about carriers operating under a compliance agreement will be made available to the public through the Agency's Web site and other information technology systems.
(a) If a motor carrier receives a proposed safety rating of unsatisfactory and a final determination that it is unsatisfactory under the provisions of § 385.11 in effect before [EFFECTIVE DATE OF FINAL RULE], the motor carrier remains subject to the provisions of § 385.13 in effect before [EFFECTIVE DATE OF FINAL RULE].
(b) If a motor carrier receives a notice of a proposed safety rating and safety fitness determination dated before [EFFECTIVE DATE OF FINAL RULE], and issued under the provisions of § 385.11 in effect before [EFFECTIVE DATE OF FINAL RULE] that has not become final, the motor carrier may:
(1) Request an administrative review under the provisions of § 385.15 in effect before [EFFECTIVE DATE OF FINAL RULE]; and/or
(2) Request a change in safety rating under the provisions of § 385.17 in effect before [EFFECTIVE DATE OF
The addition and revisions read as follows:
The following definitions apply to this subpart:
(e)
(a) A long-haul Mexico-domiciled motor carrier committing any of the following violations identified through inspections, or by any other means, may be subjected to an expedited safety audit or comprehensive investigation, or may be required to submit a written response demonstrating corrective action:
(c) A satisfactory response to a written demand for corrective action does not excuse a carrier from the requirement that it undergo a safety audit or comprehensive investigation, as appropriate, during the provisional operating authority period.
(a) The criteria used in an investigation or as a result of on road safety data will be used to determine whether a Mexico-domiciled carrier granted provisional operating authority under § 365.507 of this chapter exercises the necessary basic safety management controls are specified in this subpart and appendix B to this part.
(b) If FMCSA does not assign a Mexico-domiciled carrier a proposed unfit safety fitness determination following a comprehensive investigation conducted under this subpart and consideration of on-road safety data, FMCSA will provide the carrier written notice as soon as practicable, but not later than 45 days after the completion of the comprehensive investigation. The carrier's operating authority will remain in provisional status and its on-road safety performance will continue to be monitored for the remainder of the 18-month provisional registration period.
(c)
(b) If, at the end of this 18-month period, the carrier has passed its most recent safety audit, submitted evidence of acceptable corrective action if applicable, neither an investigation nor on road safety data have resulted in a deferred, proposed or final unfit safety fitness determination, the carrier is neither suspended nor revoked, and no additional enforcement or safety improvement actions are pending, the Mexico-domiciled carrier's provisional operating authority or provisional Certificate of Registration will become standard.
(c) If, at the end of this 18-month period, FMCSA has not been able to conduct a safety audit or comprehensive investigation, the carrier will remain in the safety monitoring system until a safety audit or comprehensive investigation is conducted. If the carrier passes the safety audit or the investigation does not result in a final unfit safety fitness determination, the carrier is neither suspended nor revoked, and the carrier has no additional enforcement or safety improvement actions pending, the carrier's provisional operating authority or provisional Certificate of Registration will become standard.
(a) The new entrant is subject to the safety monitoring system in this subpart, the general safety fitness procedures established in subpart A of this part, and the compliance and enforcement procedures applicable to all carriers regulated by FMCSA.
If the FMCSA completes an investigation on a new entrant that has not previously been subject to a safety audit and issues a safety fitness determination, the new entrant will not have to undergo a safety audit under this subpart. However, the new entrant will continue to be subject to the 18-month safety-monitoring period prior to removal of the new entrant designation.
(a)
(c) A temporary safety permit is valid for 180 days after the date of issuance or until the motor carrier receives a comprehensive investigation or the Agency has otherwise made a safety fitness determination, whichever comes first.
(1) A motor carrier that receives a comprehensive investigation and has not been issued an unfit safety fitness determination will be issued a safety permit (see § 385.421).
(2) A motor carrier that receives a comprehensive investigation and has been issued a proposed or final unfit safety fitness determination is ineligible for a safety permit and will be subject to revocation of its temporary safety permit.
(a) If a motor carrier does not already have a safety permit, it will not be issued a safety permit (including a temporary safety permit) unless and until the motor carrier has a comprehensive investigation. A proposed or final unfit safety fitness determination will prevent the issuance of a safety permit.
(a) * * *
(3) A motor carrier is issued a final unfit safety fitness determination or receives a proposed unfit and is subsequently approved to operate under a compliance agreement;
(c) * * *
(1) Immediately after FMCSA determines that an imminent hazard exists, after FMCSA issues a final unfit safety fitness determination, or after a motor carrier loses its operating rights or has its registration suspended for failure to pay a civil penalty or abide by a payment plan;
(a)
(i) An administrative review of a proposed unfit safety fitness determination, as set forth in § 385.15; or
(ii) A review based on unconsidered inspection data as set forth in § 385.16.
(2) After a motor carrier has had an opportunity for administrative review of a proposed unfit safety fitness determination or review based on unconsidered inspection data, FMCSA's issuance of a final safety fitness determination constitutes final Agency action. A motor carrier has no right to further administrative review of FMCSA's denial, suspension, or revocation of a safety permit when the motor carrier has been issued a final unfit safety fitness determination.
(a) FMCSA will not assign a safety fitness determination to an intermodal equipment provider based on the results of a roadability review. However, FMCSA may cite the intermodal equipment provider for violations of parts 390, 393, and 396 of this chapter and may impose civil penalties resulting from the roadability review.
(g) FMCSA may not re-designate a non-North America-domiciled carrier's registration from new entrant to standard prior to 18 months after the date its USDOT number is issued and subject to successful completion of the safety monitoring system for non-North America-domiciled carriers set out in subpart I of this part. Successful completion includes not receiving a final unfit safety fitness determination as the result of a comprehensive investigation.
(b)
(d)
(a) A non-North America-domiciled motor carrier committing any of the following actions identified through inspections, or by any other means, may be subjected to an expedited comprehensive investigation, or may be required to submit a written response demonstrating corrective action:
(c) A satisfactory response to a written demand for corrective action does not excuse a carrier from the requirement that it undergo a comprehensive investigation during the new entrant registration period.
(a) The criteria used in a comprehensive investigation to determine whether a non-North America-domiciled new entrant exercises the necessary basic safety management controls are specified in appendix B to this part.
(b)
(c)
(b) If, at the end of this 18-month period, the carrier's most recent safety fitness determination was not unfit, the carrier is not operating under a compliance agreement, and no additional enforcement or safety improvement actions are pending, the non-North America-domiciled carrier's new entrant registration will become standard.
(c) If, at the end of this 18-month period, FMCSA has not been able to conduct a comprehensive investigation, the carrier will remain in the safety monitoring system until a comprehensive investigation is conducted. If the results of the comprehensive investigation are not unfit the carrier's new entrant registration will become standard.
The Secretary of Transportation is required to establish a methodology to determine the safety fitness of owners and operators of commercial motor vehicles (CMVs) operating in commerce. The Secretary delegated this responsibility to the Administrator of the Federal Motor Carrier Safety Administration (FMCSA).
As directed, FMCSA promulgates regulations that determine the safety fitness of motor carriers. Motor carriers must meet the safety fitness standard through sustained safe performance and compliance with applicable regulations. If the carrier does not meet the standard, FMCSA will issue a proposed and/or final unfit SFD, as appropriate.
1.3.1 The methodology developed by FMCSA evaluates safety fitness and assigns an unfit SFD to motor carriers operating in interstate commerce or in commerce affecting interstate commerce that fail to meet the standard.
1.3.2 This process conforms to § 385.5, Safety fitness standard, and § 385.7, Factors to be considered in making a safety fitness determination, of this part. Under this methodology, a motor carrier's SFD is determined by either or both of the following:
1.3.2.1
1.3.2.2
Sections 2 and 3 of this appendix describe the complete methodology used by the two components of the SFD process: (1) On-road safety data and (2) investigation results. Section 4 of this appendix describes in detail the SFD calculation and provides examples. Section 5 of this appendix is a set of five violation severity tables, which provide cross-references to the description of violations in the Code of Federal Regulations (CFR).
FMCSA employs: (i) All on-road safety performance data from inspections; (ii) critical and acute regulation violations from investigations; and (iii) crash rates from investigations to evaluate motor carrier performance and compliance in seven BASICs. When a motor carrier exhibits consistent non-compliance during inspections, has violations of critical and/or acute regulations in the BASICs identified through an investigation, or has a preventable crash rate that meets or is greater than established standards, the carrier will fail the BASIC. Any two or more failed BASICs will result in a proposed unfit SFD as described in section 4 of this appendix.
The BASICs are:
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.1.7
The data used to assess on-road safety performance in the BASICs are recorded in FMCSA's Motor Carrier Management Information System (MCMIS). The specific data elements are described below.
2.2.1
2.2.2
2.2.3
Driver/vehicle inspection and violation data are used to assess SFD in five of the seven BASICs—Unsafe Driving, HOS Compliance, Driver Fitness, Vehicle Maintenance, and Hazardous Materials (HM) Compliance. All safety-based violations of the FMCSRs and HMRs, specified in Tables 1-5 Violation Severity Tables in section 5 of this appendix, are included in calculating the BASICs from Driver/Vehicle Inspections.
2.3.1
2.3.2
2.3.2.1 Proper licensing
2.3.2.2 Medical qualification
2.3.2.3 Controlled substances and alcohol
2.3.2.4 Hours of service, and
2.3.2.5 Operating authority
2.3.3
2.3.3.1 Brake systems
2.3.3.2 Coupling devices
2.3.3.3 Exhaust systems
2.3.3.4 Frames
2.3.3.5 Fuel systems
2.3.3.6 Lighting devices
2.3.3.7 Cargo securement
2.3.3.8 Steering mechanisms
2.3.3.9 Suspensions
2.3.3.10 Tires
2.3.3.11 Trailer bodies
2.3.3.12 Wheels, rims and hubs
2.3.3.13 Windshield wipers
2.3.3.14 Emergency exits (buses), and
2.3.3.15 Engine and battery electrical cables and systems (buses)
2.3.4
2.3.4.1 Shipping papers
2.3.4.2 Placarding
2.3.4.3 Bulk packages
2.3.4.4 Transport vehicle markings
2.3.4.5 Poison inhalation hazard markings
2.3.4.6 Non-bulk packaging
2.3.4.7 Loading and securement
2.3.4.8 Forbidden items
2.3.4.9 Radioactive materials and radiation levels, and
2.3.4.10 Emergency response assistance plans
2.3.5
2.3.5.1 Driver's license
2.3.5.2 Medical examiner's certificate
2.3.5.3 Skill Performance Evaluation (SPE) Certificate (if applicable)
2.3.5.4 Alcohol and drugs
2.3.5.5 Driver's record of duty status as required
2.3.5.6 Hours of service
2.3.5.7 Seat belt
2.3.5.8 Vehicle inspection report(s) (if applicable)
2.3.5.9 Brake systems
2.3.5.10 Coupling devices
2.3.5.11 Exhaust systems
2.3.5.12 Frames
2.3.5.13 Fuel systems
2.3.5.14 Lighting devices (headlamps, tail lamps, stop lamps, turn signals and lamps/flags on projecting loads)
2.3.5.15 Securement of cargo
2.3.5.16 Steering mechanisms
2.3.5.17 Suspensions
2.3.5.18 Tires
2.3.5.19 Van and open-top trailer bodies
2.3.5.20 Wheels, rims and hubs
2.3.5.21 Windshield wipers
2.3.5.22 Emergency exits
2.3.5.23 Electrical cables and systems in engine and battery compartments (buses), and
2.3.5.24 HM requirements as applicable. HM required inspection items will be inspected by certified HM inspectors.
It is contemplated that the walk-around driver/vehicle inspection will include only those items that can be inspected without physically getting under the vehicle.
2.3.6
Inspections and any violations recorded during the previous 24 months in any relevant level driver/vehicle inspection that matches the FMCSR and HMR violations
2.3.7
The violation severity weights of 1 to 10 can be found in Tables 1 to 5 in section 5 of this appendix. The Agency uses severity weights to differentiate crash risks relative to particular violations within a particular BASIC only. The level of crash risk is assigned to each applicable violation ranging from 1 (less severe) to 10 (most severe); see the HOS Compliance Table (Table 2 in section 5 of this appendix, Violation Severity Tables) for the violations' corresponding severity weights.
An out-of-service weight of 2 is then added to the severity weight of out-of-service violations, except for violations in the Unsafe Driving BASIC because unsafe driving violations rarely result in an out-of-service condition.
In cases of multiple counts of the same violation, the out-of-service weight of 2 applies only to the most severe count, if any of the counts of the violations are out-of-service.
2.3.8
2.3.9
2.3.10
HOS Compliance and Driver Fitness measures are normalized by adding the number of time-weighted driver inspections, while Vehicle Maintenance BASIC measures are normalized by adding the number of time-weighted vehicle inspections. The HM Compliance BASIC is normalized by adding the number of time-weighted vehicle inspections where placardable quantities of HM were present. The inspections used to normalize a BASIC measure are considered relevant inspections.
The Unsafe Driving BASIC is calculated by reference to carrier size (
2.3.11
2.3.12
The measures for each of a motor carrier's BASICs are calculated and compared to SFD BASIC failure standards. Higher measures indicate a lower level of safety performance; and, therefore, any carrier's measure that equals or is greater than the SFD BASIC failure standard constitutes a failure in that BASIC. These failed BASICs measures are then applied to the SFD calculation described in section 4 of this appendix.
Table 2-1 through Table 2-8 of this appendix show the SFD BASIC failure standards. The failure standards were established at levels equivalent to the measures that would have placed a motor carrier at the 96th percentile for the Unsafe Driving and HOS Compliance BASICs and the 99th percentile for the Driver Fitness, Vehicle Maintenance, and HM Compliance BASICs for each safety-event group as of March 22, 2013.
A carrier's absolute BASIC performance measure,
2.4.1
The Unsafe Driving BASIC accounts for further carrier differences by dividing the carrier population into two segments based on the current mix of the types of vehicles the carrier operates. This differentiates the levels of exposure associated with carriers that have fundamentally different types of operations.
The two segments are “combination” or “straight truck.” The combination segment includes those carriers that operate either truck tractors or motor coaches. Carriers are placed in the combination category if 70 percent or more of the carrier's total power units meet that definition. The straight truck segment includes all other carriers, including those that operate straight trucks, HM cargo tank trucks, or school buses/mini-buses/limousines/vans with a capacity of 9 or more passengers. These different types of power units are defined on the Application for USDOT Registration/Operating Authority (Form MCSA-1) instructions.
The BASIC failure standards are shown in Table 2-1 and 2-2 of this appendix. Any carrier with an Unsafe Driving BASIC measure equal to or greater than the safety-event group failure standard fails this BASIC.
2.4.1.1
2.4.1.2
(a) Determine carrier segment as “combination” or “straight truck” based on the types of vehicles the carrier operates, as previously defined in this section.
(b) Calculate the VMT per average power unit by taking the most recent positive VMT data and dividing it by the average power units, as previously defined in this section.
(c) Using the VMT per average power unit, based on paragraphs (a) and (b) of this section, find the Utilization Factor in the following tables:
2.4.2
The failure standards are shown in Table 2-5 of this appendix. Any carrier with an HOS Compliance BASIC measure equal to or greater than the failure standard shown for its safety-event group fails this BASIC.
2.4.3
The failure standards are shown in Table 2-6 of this appendix. Any carrier with a Driver Fitness BASIC measure equal to or greater than the failure standard shown for its safety-event group fails this BASIC.
2.4.4
2.4.5
The failure standards are shown in Table 2-7 of this appendix. Any carrier with a Vehicle Maintenance BASIC measure equal to or greater than the failure standard shown for its safety-event group fails this BASIC.
2.4.6
The failure standards are shown in Table 2-8 of this appendix. Any carrier with a HM Compliance BASIC measure equal to or greater than the failure standard shown for its safety-event group fails this BASIC.
2.4.7
Violations of critical regulations are identified through investigations. A critical regulation means an applicable safety regulation is related to management or operational systems controls. A pattern of noncompliance with a critical regulation must be found to affect a safety fitness determination. A BASIC is failed when these violations are discovered in at least 10 percent of the carrier's records examined, and more than one violation must be found. Table 3-1 of this appendix provides a list of cross-references of the critical regulations to the appropriate BASICs. These are existing regulations with actual legal prohibitions and requirements set forth in and controlled by the language of the substantive violations in each section of title 49 of the CFR cross-referenced.
Another component in the SFD process is the set of 16 Acute regulations. A BASIC can be failed based on documentation of violation of a single instance of one of the acute regulations discovered during any investigation. Table 3-2 of this appendix contains cross references to acute regulations that are existing legal prohibitions and requirements set forth in and controlled by the language of the substantive violations in each section of title 49 of the CFR cross-referenced herein.
A recordable crash, consistent with the definition for “crash” in 49 CFR 390.5, means an occurrence involving a CMV on a highway in motor carrier operations in commerce, including within Canada or Mexico, that results in (i) a fatality; (ii) in bodily injury to a person who, as a result of the injury, immediately receives medical treatment away from the scene of the crash; or (iii) in one or more motor vehicles incurring disabling damage that requires the motor vehicle to be transported away from the scene by a tow truck or other motor vehicle.
A motor carrier can only fail the Crash Indicator BASIC if the motor carrier incurs two or more recordable crashes within the 12 months before the investigation. FMCSA will then determine if the reportable crashes were preventable.
For motor carriers with two or more recordable crashes within the 12 months before the investigation, the investigator will:
(1) Determine the carrier's recordable crash rate. The recordable crash rate is the number of recordable crashes per million miles traveled by the carriers CMVs over the previous 12 months.
(2) If the recordable crash rate would cause the carrier to fail the Crash Indicator BASIC, calculate the preventable crash rate for the carrier by evaluating the preventability of the recordable crashes that have occurred in the 12 months before the investigation. Preventability will be determined according to the following standard: “If a driver, who exercises normal judgment and foresight could have foreseen the possibility of the crash that in fact occurred, and avoided it by taking steps within his/her control which would not have risked causing another kind of mishap, the crash was preventable.”
Preventability will be determined according to the standard set forth above. It is important to note that preventability is a different, higher standard than fault. The standard of preventability for a professional driver includes the expectation that he or she anticipated the possibility of the crash and adjusted his or her driving or behavior to avoid the crash.
In determining preventability, FMCSA may also follow the preventability guidance found on FMCSA's Web site at
If the motor carrier's preventable crash rate exceeds the failure standard for the Crash Indicator BASIC, the motor carrier will fail that BASIC. An urban carrier (a carrier operating entirely within a radius of 100 air miles) with a preventable crash rate greater than 1.7 will fail the Crash Indicator BASIC. All other carriers with a preventable crash rate greater than 1.5 will fail the Crash Indicator BASIC.
As shown in Figure 4-1 of this appendix, under this methodology there are two major sources that could impact a motor carrier's SFD: (1) Driver/vehicle inspections; and (2) violations of the critical and acute regulations or preventable crashes documented during an investigation. As shown in Figure 4-1, data obtained under sources (1) and (2) align with the seven BASICs and are used to determine whether a carrier has failed any of the BASICs.
4.1.1
4.1.2
To further demonstrate the methodology, three examples of how a proposed SFD of unfit is calculated are provided below.
4.2.1
4.2.2
4.2.3
These tables provide cross-references to the violations used in the BASICs. The descriptions of the violations here are for convenience only and have no legal effect. The actual legal prohibitions and requirements are set forth in and controlled by the language of the violations in each section of title 49 of the CFR cross-referenced herein.
The Commercial Vehicle Safety Alliance (CVSA) North American Standard Inspection Levels I, II, IV, V, and VI would be considered compatible with these requirements.
49 U.S.C. 113, chapters 5, 51, 59, 131-141, 145-149, 311, 313, and 315; 49 U.S.C. 5123; Sec. 204, Pub. L. 104-88, 109 Stat. 803, 941 (49 U.S.C. 701 note); Sec. 217, Pub. L. 105-159, 113 Stat. 1748, 1767; Sec. 206, Pub. L. 106-159, 113 Stat. 1763; subtitle B, title IV of Pub. L. 109-59; and 49 CFR 1.81 and 1.87.
(f)
(2) A motor carrier operating a commercial motor vehicle designed or used to transport hazardous materials for which placarding of a motor vehicle is required under regulations prescribed under 49 U.S.C. chapter 51 is subject, after being ordered out-of-service because of receiving a final unfit safety fitness determination, to a civil penalty of not more than $75,000 for each offense. If the violation results in death, serious illness, or severe injury to any person or in substantial destruction of property, the civil penalty may be increased to not more than $175,000 for each offense. Each day the transportation continues in violation of a final unfit safety fitness determination constitutes a separate offense.
(j)
49 U.S.C. 13101, 13301, 13906, 13908, 14701, 31138, 31139, and 31144; and 49 CFR 1.87.
(d) * * *
(3) A written decision, order, or authorization of the Federal Motor Carrier Safety Administration authorizing a motor carrier to self-insure under § 387.309, provided the motor carrier has not been issued an unfit safety fitness determination as determined by the Federal Motor Carrier Safety Administration under part 385 of this chapter.
(a) * * *
(3)
49 U.S.C. 504, 31133, 31136, 31137, and 31502; sec. 113, Pub. L. 103-311, 108 Stat. 1673, 1676; sec. 229, Pub. L. 106-159 (as transferred by sec. 4115 and amended by secs. 4130-4132, Pub. L. 109-59, 119 Stat. 1144, 1726, 1743, 1744); sec. 4133, Pub. L. 109-59, 119 Stat. 1144, 1744; sec. 108, Pub. L. 110-432, 122 Stat. 4860-4866; sec. 32934, Pub. L. 112-141, 126 Stat. 405, 830; and 49 CFR 1.87.
(j) * * *
(2) * * *
(i) The motor carrier has been issued an unfit safety fitness determination by the FMCSA;
Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT.
Final rule.
As required by the Moving Ahead for Progress in the 21st Century Act
(MAP-21), the Pipeline and Hazardous Materials Safety Administration is amending the Hazardous Materials Regulations to adopt provisions contained in certain widely-used or long-standing special permits that have an established safety record. The adopted amendments are intended to provide wider access to the regulatory flexibility offered in special permits and eliminate the need for numerous renewal requests. The adopted amendments will also reduce paperwork burdens and facilitate commerce while maintaining an appropriate level of safety. PHMSA conducted an extensive analysis of all active special permits and codified, as appropriate, those special permits deemed suitable in this rulemaking.
Donald Burger, Office of Hazardous Materials Safety, Approvals and Permits Division, (202) 366-4535, or T. Glenn Foster, Office of Hazardous Materials Safety, Standards and Rulemaking Division, (202) 366-8553, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 20590-0001.
The Pipeline and Hazardous Materials Safety Administration (PHMSA) is amending the Hazardous Materials Regulations (HMR; 49 CFR parts 171-180) by adopting requirements contained in 96 existing special permits (SP). These amendments are based on our review of all active SPs as of January 1, 2013, in which we originally identified 98 SPs containing requirements that appear suitable for adoption into the HMR as regulations of general applicability. Other SPs (1,070) were not proposed for adoption into the HMR because we concluded they contain requirements which (1) would not have, or are being applied in a manner which would not have, broad applicability; or (2) have already been adopted into the HMR, are covered by authorizations in the HMR, are being addressed in other rulemakings, or were removed from consideration after receiving public comments submitted in response to the January 30, 2015, notice of proposed rulemaking (NPRM) in this proceeding.
In the NPRM published in the
PHMSA is amending the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) by adopting certain requirements based on existing SPs issued by PHMSA under 49 CFR part 107, subpart B (§§ 107.101 to 107.127). SPs set forth alternative requirements—or a variance—to the requirements in the HMR in a way that achieves a safety level at least equal to the safety level required under the regulations, or, when the regulations do not establish a safety level, that is consistent with the public interest. Congress expressly authorized the Secretary of Transportation to issue these variances in the Hazardous Materials Transportation Act of 1975 (49 U.S.C. 5109) as amended.
On July 6, 2013, President Obama signed legislation entitled “Moving Ahead for Progress in the 21st Century Act (MAP-21).” Section 33012 of this legislation required PHMSA to review and analyze SPs that have been in continuous effect for a 10-year period to determine which ones may be codified into the HMR.
(1) The safety record of the hazardous materials (hazmat) transported under the SP;
(2) The application of a SP;
(3) The suitability of the provisions in the SP for incorporation into the hazmat regulations; and
(4) Rulemaking activity in related areas.
Prior to the passing of the MAP-21 legislation, PHMSA completed numerous rulemaking actions, through a comprehensive and refined approach, to convert long-standing SPs with an established safety record into the HMR.
The January 30, 2015 NPRM provided an overview of the SP Program to date, a detailed review of the requirements of MAP-21 with regard to this initiative, and a comprehensive explanation of the rationale used to evaluate these SPs both prior to and after the implementation of MAP-21. Furthermore, the NPRM described in detail the SPs that were deemed not suitable for adoption into the HMR along with the corresponding reasoning, and proposed the adoption into the HMR of SPs that were deemed suitable through this review. The amendments adopted from the SPs in this final rule have broad applicability, fit into the scope of the HMR, increase flexibility in transportation, and provide an equivalent level of safety to that of the current regulations.
Historically, PHMSA
Section 33012 of the MAP-21 legislation revised section 5117 (f) of the Federal Hazardous Materials Transportation Law. As a result of this legislation, PHMSA was required to review and analyze SPs that have been in effect for 10 years or more and determine which could be converted into regulations. Additionally, PHMSA was required to set parameters for the review and issue regulations to adopt any SPs identified as appropriate for adoption in a final rule by October 1, 2015. Following publication of this final rule, this process would be completed annually to ensure appropriate SPs are converted into the HMR on a consistent basis.
The legislation also required PHMSA to address other issues related to the SP and approvals regulations and program processes. Specifically, PHMSA is required to issue regulations on standard operating procedures to support administration of the SP and approval programs. This requirement is being addressed under Docket No. PHMSA 2012-0260 (HM-233E).
Table 2 summarizes the MAP-21 requirements related to the SP program, the corresponding rulemaking actions, and required completion dates:
As previously stated, PHMSA has routinely analyzed, evaluated, and adopted SPs into the HMR through established procedures for decades. However, the specific provisions contained in MAP-21 necessitated PHMSA to modify and formalize its approach.
The following table summarizes the different phases of the Special Permits Conversion Project (SPCP). Specifically, this table briefly discusses the efforts of each phase of the project and how the entire project was divided into the two primary stages of analysis and rulemaking. Each phase of the SPCP is described in Table 3.
PHMSA grouped each special permit into one of six topic areas, based on the utility of the special permit. These topic areas were established to reflect the main utility and purpose of the SP. These topic areas of the SPs, an overview of each topic area, and the affected number of SP holders are detailed in Table 4.
PHMSA
The Council on the Safe Transportation of Hazardous Articles (COSTHA) submitted a petition for rulemaking under P-1607 which PHMSA accepted and proposed in the January 30, 2015 NPRM. The purpose of this petition for rulemaking was to adopt the provisions of SP 11458 authorizing display packs of consumer commodities that exceed the 30 kg gross weight limitation prescribed for limited quantity packages. See the discussions in §§ 171.8 and 173.56 under the “Operational Highway/Rail/Shipper/Other” heading of this rulemaking.
The Truck Trailer Manufacturers Association (TTMA) submitted a petition for rulemaking under P-1608 to adopt the provisions of SP 11903 into the HMR. Under P-1608, TTMA petitioned that PHMSA adopt standards for the construction and use of fiber reinforced plastic (FRP) cargo tanks. Currently, these tanks are constructed under SP 11903 and used under party status to SP 9166. Other special permits also address these standards but PHMSA did not propose to adopt them in the NPRM because a uniform standard for FRP cargo tanks that is ready for adoption does not exist. However, PHMSA is working to develop a uniform standard for FRP cargo tanks, which we will address in a future rulemaking.
COSTHA submitted a petition for rulemaking under P-1610 to adopt the provisions of SP 11110 into the HMR. This SP authorizes cargo aircraft operators to stow Division 1.4S and Class 8, PG III materials in inaccessible cargo locations in excess of the limitations specified in § 175.75(c). This petition has been accepted by PHMSA for consideration in a future rulemaking as more time is needed to research the potential impact of changes to § 175.75 and to coordinate this review with the appropriate parties, including our modal partners.
COSTHA submitted a petition for rulemaking under P-1611 to adopt the provisions of SP 11470 into the HMR. This SP authorizes the transportation in commerce of shrink-wrapped pallets containing packages of waste ORM-D materials with the word “WASTE” marked on the outside of the pallet instead of each individual box. This petition was accepted by PHMSA and is being adopted as proposed in this final rule. See the discussion in § 173.12 under the “Operational Highway/Rail/Shipper/Other” heading of this preamble.
PHMSA is committed to the SP adoption process established by Congress in MAP-21. To ensure that changes made under this action are as efficient and effective as possible, PHMSA solicited input from its stakeholders. We used several tables throughout the NPRM to identify SPs suitable for adoption and those that were deemed not suitable. As required by MAP-21, the initial review and analysis of SPs considered the following factors:
• The safety record of hazardous materials transported under the SP;
• The application of a SP;
• The suitability of provisions in the SP for adoption into the HMR; and
• Rulemaking activity in related areas.
Based on these factors, PHMSA developed and assigned codes representing its reasoning for adopting or not adopting certain SPs into the regulations. Table 5 explains each code.
The SPCP evaluated 1,168 permits that represented 3,691 holders of SPs that were active on January 1, 2013. Once the evaluation segment of the SPCP was completed, PHMSA identified 98 active SPs that were suitable for adoption in this proceeding. Since that time, SP-14422 has become no longer active and its provisions are not adopted in this final rule. Additionally, SP 4850 is not adopted in this final rule based on concerns that certain elements in its codification no longer communicated the exceptions from the HMR provided by the SP. Thus, we believe any additional burden not proposed in the January 30, 2015 NPRM would require notice and comment
Adoption of the 96 SPs in this final rule will impact 832 SP holders as indicated in Table 6. The SPs adopted in this rulemaking represent an approximate 8% reduction in the number of active SPs and an approximate 23% reduction in the number of holders of those SPs as indicated in Table 6.
When combined with previous regulatory efforts to adopt SPs into the HMR, the impact is increased to 190 total SPs adopted since 2008, affecting 14,779 holders of SPs as indicated in Table 7.
It is PHMSA's intent to annually review all SPs that have been in effect for more than 10 years. Further, PHMSA's ongoing review and analysis of SPs will use the same methodology and tools as in this proceeding. PHMSA anticipates that future analysis and review will be more streamlined due to the reduction in the number of SPs to be evaluated and the experience gained through this evaluation.
The original analysis phase of the SPCP NPRM identified 98 SPs (728 holders) that were deemed suitable for adoption. Further, the analysis phase identified 1,070 SPs that were deemed not suitable for adoption. Please see the January 30, 2015 NPRM for more information on the SPs deemed not suitable, their assigned topic area, a summary of the permit, the number of SP holders, and each corresponding denial code. In this final rule, Table 8 summarizes the SPs deemed suitable, their assigned topic area, a summary of the permit, and the number of holders of SPs. The difference in the number of holders in the NPRM (728) and this final rule (832) are due to seven SPs proposed for adoption in the NPRM that are not being adopted in this final rule and four SPs that were not proposed for adoption in the NPRM that are being adopted in this final rule. All suitable SPs (96) ultimately adopted were deemed to be Code 1 and are adopted in this final rule.
In the NPRM, PHMSA welcomed comments concerning its proposed amendments. Specifically, PHMSA was interested in comments from SP holders (both those deemed suitable and those deemed not suitable for adoption) that are reviewed for this rulemaking.
For holders of SPs deemed suitable for adoption, PHMSA requested comment on our determination. We stated that we were particularly interested in comments that confirm or refute the suitability, safety, and general applicability of the SPs. PHMSA also solicited comments on the regulatory text proposed in this proceeding. Specifically, PHMSA was interested in comments that address whether the proposed regulatory text accurately encompasses the requirements of the SP.
For holders of SPs deemed not suitable for adoption, PHMSA also requested comment on our determination. We stated that we were particularly interested in comments that confirm or refute the suitability, safety, and general applicability of the SPs. We asked that if you are a holder of a SP that was not proposed to be adopted but believe it should be, you should submit material to support such an argument. Specifically, PHMSA requested:
• Information and arguments that support the proposed adoption including technical and scientific data;
• The impact of the proposed adoption including cost and benefits;
• The frequency of shipments made under the SP;
• The frequency of hazardous materials incidents (such as those described in
§§ 171.15 and 171.16) occurring during shipments made under the SP; and
• Proposed regulatory text.
Lastly, PHMSA requested comment as it considers a future proposed requirement for a SP applicant to provide potential regulatory text as part of each SP application.
In response to the January 30, 2015 NPRM, PHMSA received 22 sets of public comments. All were supportive of PHMSA's actions to reduce the number of active SPs. Specifically, commenters to the NPRM were as follows in Table 9:
DSC expresses its concern about the disposition of SPs adopted into the HMR. It asks what happens to SPs once they are adopted into the HMR, and if there will be a phase-in period. DSC also asks, if the adoption of a SP is unacceptable to a grantee or grantees, will the SP still be an available option? It also asks will this rulemaking affect the application of future SPs.
PHMSA notes that as the intention of this rulemaking is to adopt the provisions of certain SPs into the HMR, those affected SPs will be allowed to expire. However, PHMSA is providing a one-year effective date to allow current grantees sufficient time to transition from the provisions of their SPs to the new requirements being adopted into the HMR. In addition, if the adoption of a SP proves to be unacceptable to a grantee, a renewal or modification in accordance with 49 CFR 107.121 will still be allowed. This rulemaking will not affect the application for future SPs as the requirements to apply for a SP are not being revised, and the SP program will continue as permitted by law. Air Products asks if PHMSA will provide a timeline/updates for “other” rulemaking proceedings that may have SPs under consideration for adoption in the HMR. PHMSA will continue to provide updates pertaining to other rulemaking proceedings that may have SPs under consideration for adoption into the HMR through its existing channels which include the semi-annual agenda, rulemaking activities, and
In the NPRM, PHMSA solicited input regarding applicants being required to submit proposed regulatory text with SP applications. PHMSA acknowledges mixed support from affected entities on this issue. For example, Veolia and Dow support adoption of such policy while COSTHA and ACA do not. IME supports such policy as an option for an applicant.
IME is concerned that PHMSA will conduct SP reviews for potential adoption on a biennial basis rather than an annual basis as implied through MAP-21 legislation. As noted elsewhere in this preamble, PHMSA intends to perform SP evaluations on an annual basis; however, rulemaking actions as a result may take more time as necessary.
Lastly, PHMSA's final regulations issued in its final rule entitled “Hazardous Materials: Special Permit and Approvals Standard Operating Procedures and Evaluation Process,” under Docket No. PHMSA-2012-0260 (HM-233E; 9/10/15, 80 FR 54418, FR Doc. 2015-22617), contain minor
No comments were received regarding the SPs proposed for adoption under this category. PHMSA did, however, receive comments requesting reconsideration of certain SPs not proposed for adoption.
COSTHA requests that reconsideration be given to adopt portions of SPs 12726 and 15277 (aircraft fire extinguishers) to allow them to be described in transportation as UN1044, Fire extinguishers. PHMSA notes this issue is under consideration in another rulemaking action under docket PHMSA-2011-0140 (RIN 2137-AE80 (HM-234)). COSTHA also requests that reconsideration be given to adopt SP 10898 in § 173.306(f) related to accumulators. Because neither SP was proposed for adoption in the NPRM, neither SP is being adopted in this final rule.
CSPA is supportive of the adoption of SP 11296 and its expansion beyond flammable aerosols only (as proposed in the NPRM).
CSPA and DSC generally support adoption of SP 12573 (and the consolidation with SP 13581) as proposed. They are, however, concerned with the supposed arbitrary increase in reference temperature and pressure with the new DOT 2Q1 standard currently authorized for refrigerant gases in § 173.304. DSC suggests a single requirement of 210 psig at 55 °C (131 °F). It also suggests that such arbitrary actions if adopted could increase the number of SP applications submitted as a result. PHMSA recognizes the commenters' concerns; however, changing the reference temperature for the refrigerant gases to 54.4 °C (130 °F) would make section 173.304(d) inconsistent with the other sections for the filling of gases. As noted in the NPRM, PHMSA sought to have consistency where some sections referred to 54.4 °C (130 °F) and some to 55 °C (131 °F). PHMSA is therefore keeping the reference temperature used for maximum pressure in a container at 55 °C (131 °F) as proposed in the NPRM. In order to address the commenters' concerns, PHMSA is raising the proposed maximum pressure authorized in the new DOT 2Q1 container to 210 psig at 55 °C (131 °F) as authorized in §§ 173.304 and 173.306. The burst pressure of the DOT 2Q1 will have to be raised slightly accordingly to provide for the same safety factor. This will be discussed in a later section.
CSPA and DSC generally support adoption of the consolidated SPs 7951, 13601, and 14503 as proposed. They are again, however, concerned with the increase in reference temperature and pressure. CSPA is also concerned that the new relationship proposed between a pressure relief device (PRD) and an end expansion device, and the arbitrary upper boundaries adopted should instead be simply required to operate prior to burst. CSPA and DSC suggest as an alternative that “the requirement could be defined differently for an end expansion device specifically versus the PRD using the language in SP 13601 that requires that the end buckle before burst and that the container not burst below 270 psig.”
CSPA and DSC correctly point out that the methodology used in the “if/then” table for the use of a DOT 2P or DOT 2Q aerosol on page 5439 [of the NPRM] is actually reversed and would lead to not allowing (by choice) a higher integrity container as a result. PHMSA agrees with the commenters and is revising the tables in § 173.306 accordingly.
CSPA generally supports adoption of the new DOT 2Q1 container as proposed.
DSC suggests that the new DOT 2P1 specification should be limited to refrigerated foodstuffs only as prescribed in SPs 13601, 14503, and 7951. Further, DSC recommends that the new DOT 2P1 specification not be expanded to authorize Division 2.1 flammable gases. However, in its comments, DSC does not provide support as to why the new DOT 2P1 specification should be limited to refrigerated foodstuffs and Division 2.2 (nonflammable) gases only.
DSC recommends that foodstuffs in refrigerated DOT 2P1 cans be excepted, as they currently are under the SPs, from the hot water bath test. PHMSA notes that refrigerated foodstuffs in aerosol cans under § 173.306(b) will continue to be excepted from hot water bath testing when the three SPs are adopted in the HMR.
CSPA supports consolidation of SPs 14429, 14623, 14625, 14627, 14723, 14724, 14786, 14842, 14887, 14953, 15135, 15265, 15427, and 15972 (hot water bath test alternative), SP 14440 (weight test), and SP 14544 (weight and leakage test) as proposed.
DSC is concerned as to what will happen to SPs once adopted into the HMR and whether there will be a phase-in period. It asks because of substantial costs and other impacts due to relabeling of product, etc. Dow and CSPA support adoption of SP 12995, with Dow asking that sufficient time be allotted to deplete existing inventory.
In response, PHMSA notes there is a one-year transition period provided to affected entities in this final rule. Further, as prescribed in § 173.23(h), a packaging that is permanently marked with a SP number, “DOT-SP” or “DOT-E,” for which the provisions of the SP have been incorporated into the HMR may continue to be used for the life of the packaging without obliterating or otherwise removing the SP number.
CSPA strongly asserts that reconsideration should be given to adopting SP 11516, which authorizes transportation in commerce of aerosols that do not meet the HMR definition of an aerosol (
Although PHMSA appreciates the comments pertaining to SP 11516, until such a time that PHMSA participates in an open and transparent debate on this issue (redefining the term “aerosol”), SPs such as SP 11516 and the like will remain valid under current policy and definitions.
No comments were received regarding the SPs proposed for adoption under this category. PHMSA did, however, receive comments requesting reconsideration of certain SPs not proposed for adoption.
In its comments, The Chlorine Institute (CI) recommends that reconsideration be given to adopt SP 9694 and 10457. These SPs authorize the transportation in commerce of chlorine contained in MC 331 cargo tanks equipped with angle valves, excess flow valves and pressure relief valves not presently authorized in the HMR. Because neither SP was proposed for adoption in the NPRM, neither SP is being adopted in this final rule.
In its comments, The CI recommends that reconsideration should be given to
Lastly, the CI recommends that reconsideration should be given to adopt SP 9166 and SP 11903 under Petition for Rulemaking (P-1608) and related SPs 10878, 12516, 14275, 14277, 14779, and 15552. These SPs authorize the manufacture, marking, sale, and use of a non-DOT specification glass fiber reinforced plastic (GFRP) cargo tank conforming with all regulations applicable to a DOT specification 407/412 for transportation in commerce of certain hazardous materials. PHMSA notes it is working to develop a uniform standard for FRP cargo tanks and will address this issue in a future rulemaking.
COSTHA supports future consideration of SP 11110 under Petition for Rulemaking P-1610. As previously noted, COSTHA submitted a petition for rulemaking under P-1610 to adopt the provisions of SP 11110 into the HMR. This SP authorizes cargo aircraft operators to stow Division 1.4S and Class 8, PG III materials in inaccessible cargo locations in excess of the limitations specified in § 175.75(c). This petition has been accepted by PHMSA for consideration in a future rulemaking; however, more time is needed to research the potential impact of changes to § 175.75 and to coordinate this review with the appropriate parties, including our modal partners.
Based on comments from PCSD, proposed Special provision “W11” in § 172.102 is being replaced by revising § 176.800(a) to allow Class 8 (corrosive) materials that are also foodstuffs or foodstuff ingredients intended for human consumption to not be considered incompatible for segregation purposes in conformance with SP 11691.
Some commenters recommended that reconsideration be given to adopt SP 11502 (use of International Civil Aviation Organization Technical Instructions (ICAO TI) for highway shipments). In their comments, COSTHA and UPS firmly support adoption and provide justification as to why the SP should be adopted. However, PHMSA notes SP 11502 is under consideration for adoption into the HMR in a separate, broader, and yet unassigned air-specific rulemaking action.
Arkema recommends that reconsideration should be given to adopt SP 12879 into the HMR. This SP authorizes the transport of IBCs containing combustible liquids without placards or identification numbers in sealed freight containers consigned for export. Because SP 12879 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule; however, we may reconsider its codification in a future proceeding as appropriate.
PHMSA acknowledges COSTHA's support for the adoption of petitions for rulemaking P-1607 (SP 11458) and P-1611 (SP 11470) into the HMR in this proceeding.
IME supports the adoption of SP 4850 as proposed. This SP authorizes the transportation in commerce by motor vehicle, rail freight, cargo vessel, and cargo aircraft of limited quantities of certain approved explosive articles (UN0237, charges, shaped, flexible, linear; and UN0104, cord, detonating, mild effect or fuse, detonating, mild effect metal clad) re-classed as Division 1.4D in prescribed packagings, subject to certain special provisions.
Veolia supports the adoption of SP 11055. Further, Veolia supports adoption of SP 11470 with one major modification—the HMR should not be limited to “expired” products but rather should include all consumer commodities shipped for disposal/recycling under manufacturer recalls, off-spec/unwanted/unneeded product, etc. PHMSA agrees with Veolia and is revising § 173.306(k) accordingly.
COSTHA and DGAC support the adoption of SPs 11352, 12207, 12306, 13165, and 14945. However, according to COSTHA, the proposed regulatory text in § 177.820 appears to be more restrictive than the exceptions currently in § 171.1(d)(4). After further consideration, we agree with COSTHA and are not adopting the five SPs in this final rule as proposed in the NPRM.
Dow supports the adoption of SP 9874, SP 14822, and the eight related SPs. In its comments, Dow supports codification of the SPs but has specific concerns: (1) SP 9874 and 14822 authorize instrumentation and signaling systems such as sensors, alarms, and electronic surveillance equipment in addition to video monitoring; (2) SP 9874 and 14822 do not require a video camera with a “motorized zoom lens capable of panning and zooming from the remote control station”; (3) SP 9874 and 14822 do not require that the view capability must include the entire containment area; and (4) Dow wants assurance that the attendance requirements in § 177.834 (i) apply to motor carriers only. We agree that Dow's comments have merit and, in this final rule, except for number (4), the regulatory text in § 177.834(i) is revised accordingly. Regarding issue number (4), long-standing interpretations preclude the need to revise the attendance applicability provisions of the HMR. As a result of Dow's concerns, § 177.834 (i) is revised accordingly in this final rule.
In its comments, Eli expresses it support for the adoption of SP 14150 in § 177.834(i)(3)(ii) as proposed. SP 14150 authorizes use of video cameras and monitors to observe the loading and unloading operations of certain Class 3 and Class 8 hazardous materials from a remote control station in place of personnel remaining within 7.62 meters (25 feet) of cargo tank motor vehicles. Lastly, PCTI supports adoption of SP 11352 as proposed in § 177.820.
Veolia supports the adoption of SP 11043. However, it notes that the regulatory text proposed in § 177.840(a)(3)(i) should be revised to require a 4-foot separation rather than a 5-foot separation for consistency with the segregation spacing requirements found in § 173.12(e). We agree with Veolia's comment and are revising § 177.840(a)(3)(i)(C) accordingly.
Veolia supports adoption of SP 11984 with one major modification—the HMR should require flame-proof outer packaging for chemical oxygen generators shipped with only one positive means of preventing unintentional activation as expressed in concern for equivalent level of safety in proposed SP modification in August 2011. After additional review, in this final rule, we are adopting the provisions of SP 11984 as proposed into § 173.168.
In the NPRM, PHMSA proposed to add Special Provision 383 to adopt SP 11356. This SP authorizes certain materials meeting the conditions for high viscosity flammable liquids specified in § 173.121(b)(1)(i), (b)(1)(ii), and (b)(1)(iv), to be reassigned to Packing Group (PG) III for transportation by motor vehicle. The SP prescribes packaging, capacity limitations, and load securement requirements. We proposed to adopt the provisions of the SP in its entirety in this new special provision for the following entries: Coating solution (UN1139, PG II) and paint (UN1263, PG II). In its comments,
In the NPRM, we proposed to add a new paragraph (h) to § 173.12 to adopt the provisions of SP 11470 in its entirety. In its comments, ACA is concerned that “stretch-wrapped” pallets would not be able to take advantage of the exceptions provided for “shrink-wrapped” pallets. Further, ACA suggests that the proposed regulatory text limits the type of packages to “boxes.” We agree and are revising § 173.12(h) to explicitly allow “stretch-wrapped” pallets and any authorized type of packaging.
Section 174.67 establishes specific operational requirements for railroad tank car unloading. For combustible liquids or Class 3 liquid petroleum distillate fuels, SP 12002 authorizes clearing frozen liquid blockages from the outlet by attaching a fitting to the outlet line and applying nitrogen at a pressure of 50 to 100 psi. In the NPRM, we proposed to revise paragraph (g) to § 174.67 to adopt the provisions of SP 12002 in its entirety. In its comments, ACA recommends that the use of nitrogen should be permitted “at a pressure of up to 100 psi” for clarity. We agree with ACA and are revising § 174.67(g) accordingly.
In its comments, DGAC supports adoption of SP 11666 as § 172.102(c)(1), Special Provision 384. It does, however, comment on the use of the word “sifting” which should actually be “shifting” and, further, the SP permits stacking two or more levels high to achieve maximum allowable utilization of the designated vehicle, rail car weight, or intermodal freight container weight or vessel hold volume. We agree with DGAC's comments and the special provision is revised accordingly.
DGAC supports the adoption of SP 14525 and correctly points-out some discrepancies in preamble discussion of its adoption in new § 172.102(c)(3), Special Provision B130. We agree with DGAC's comments and revise the preamble discussion and regulatory text accordingly.
IME and COSTHA firmly support that reconsideration should be given to adopt SP 14282. This SP authorizes transportation in commerce of certain detonators, detonator assemblies, detonators for ammunition, detonating fuses and igniting fuses on the same motor vehicle with any other Class 1 explosives. Because SP 14282 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule.
Veolia comments that reconsideration should be given to adopt SP 12998. This SP authorizes the transportation in commerce of lab packs containing materials that are not waste materials by private or contract carrier from one laboratory to another within the same company. Because SP 12998 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule.
Veolia comments that reconsideration should be given to adopt SP 12102. This SP authorizes transportation in commerce of certain unapproved desensitized explosives. Because SP 12102 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule.
Veolia comments that reconsideration should be given to adopt SP 13179. This SP authorizes transportation in commerce of certain approved lighters which have been removed from their inner packaging and are being sent for disposal. Because the SP indicated Code 5 (already adopted or otherwise covered under current regulations as the reason it was considered not suitable for adoption), Veolia asserts PHMSA will terminate the SP and therefore, its provisions either need to be adopted into the HMR in this rulemaking or the SP should not be terminated. We sincerely apologize for any confusion this may have caused as we mistakenly miscoded SP 13179 in the NPRM. In hindsight, SP 13179 should have been a Code 2 or 3 as not suitable for adoption. Further, because SP 13179 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule nor do we intend to terminate it at this time.
For highway transportation by private carrier, SP 11197 provides relief from the requirement to display the limited quantity marking on packages containing materials assigned to PG II and III and prepared in accordance with the limited quantity requirements in Part 173. In its comments, ACA claims the regulatory text is not clear regarding its application but did not provide alternative language. Consequently, the language is adopted as proposed.
Gulf Coast, RIBCA-NA, and CI recommend that reconsideration should be given to adopt SP 12412 into the HMR as there are 322 companies as grantees. This SP authorizes discharge of liquid hazardous materials from certain UN intermediate bulk containers (IBCs) and DOT specification 57 portable tanks without removing them from the vehicle on which they are transported. Because SP 12412 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule.
Estes-Cox firmly supports the adoption of SP 7887 and comments that reconsideration should be given. This SP authorizes certain Class 1 articles in small amounts to be reclassed as Division 4.1 flammable solid, organic, n.o.s. It applies to small “single-use expendable” or “reloadable” rocket motors first classed as Division 1.4C or 1.4S (NA0323 or NA0276) shipped with or without their igniters classed as Division 1.4G or 1.4S under § 173.56. Because SP 7887 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule.
IME supports the adoption of SP 12335, which authorizes transportation in commerce of certain Division 1.1D and 1.4D detonating cords without the ends being sealed in alternative packaging.
SP 8230 authorizes the transportation in commerce of PG I and II nitric acids in certain combination packagings by motor vehicle, rail freight, cargo vessel and cargo-only aircraft. Specifically, “Nitric acid, other than red fuming, with more than 70% nitric acid” and “Nitric acid, other than red fuming, with not more than 70% nitric acid” is authorized to be transported in inner plastic bottles in rigid foam plastic receptacles or plastic bags lined with absorbent material in outer packagings. In its comments, UPS supports adoption of SP 8230 in § 173.158(j) as proposed.
Section 173.158 provides general requirements and exceptions for shipments and packagings of nitric acid. In the NPRM, we proposed to establish a new paragraph (i) to authorize “Nitric acid of up to 40% concentration” in a UN1H1 non-removable head plastic drums with certain conditions as prescribed in SP 14213. In its comments, Mauser questioned why SP 9722 was not also proposed for adoption as it is identical to Greif's SP 14213. After additional review, we agree and in this final rule are also adopting the provisions of SP 9722 into § 173.158 accordingly.
DGAC supports the adoption of SP 9610 with edits. However, the SP was revised in November 2014 after review of the SPs as part of this proceeding. We agree with the revisions made to the SP. Therefore, in this final rule, we are revising new paragraph § 173.29(f) to address the DGAC edits and the 2014
IME and COSTHA firmly support that reconsideration should be given to adopt SP 8451. This SP authorizes transportation in commerce of not more than 25 grams of solid explosive or pyrotechnic material, including waste-containing explosives that have an energy density not significantly greater than that of pentaerythritol tetranitrate (PETN), classed as Division 1.4E, when packed in a special shipping container. Because SP 8451 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule.
IME firmly supports that reconsideration should be given to adopt SP 10880. This SP authorizes the transportation in commerce of ammonium nitrate-fuel oil mixture (ANFO), Division 1.5, in reusable, flexible intermediate bulk containers (IBCs) type UN 13H3 or UN 13H4 conforming to Subpart N and O of Part 178. Because SP 10880 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule.
IME and COSTHA firmly support that reconsideration should be given to adopt SP 11156. This SP authorizes transportation in commerce of NA0331, UN1942 and UN0331 in non-DOT specification multi-wall plastic-lined paper bags. Because SP 11156 was not proposed for adoption in the NPRM, the SP is not being adopted in this final rule.
SP 11624 was not proposed for adoption in the NPRM. The SP is in its fifteenth revision and has 114 grantees. The SP authorizes transportation in commerce of certain waste Class 3 paint and paint related material (UN1263; PG II and PG III) contained in metal or plastic pails further packed in non-specification bulk packagings such as cubic yard boxes, plastic rigid-wall bulk containers, dump trailers, and roll-off containers. In their comments, Veolia, ACA, and DGAC provided substantial justification why reconsideration should be given to adopt SP 11624 into the HMR. Therefore, after revaluation, SP 11624 and three related packaging SPs (
Section 172.102(c) lists special provisions applicable to specific entries in the Hazardous Materials Table (HMT). Special provisions may contain packaging requirements, conditions or limitations, and exceptions applicable to particular quantities or forms of hazardous materials.
In general, non-bulk packagings must be marked with an identification number and proper shipping name and bear labels communicating the hazard of the material contained in the package. SP 13544 authorizes the transportation in commerce of DOT Specification 4BA240 cylinders containing liquefied petroleum gas (LPG) and propane and/or residue of LPG or propane without hazard warnings (
In this final rule, PHMSA is adopting SP 13544 as proposed by adding new Special Provision, “N95” to § 172.102(c)(5) that excepts cylinders containing UN1075, Liquefied petroleum gas and UN1978, Propane from marking the identification number and proper shipping name or bear hazard labels provided certain conditions are met. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
Section 172.400a provides exceptions or alternatives to the HMR labeling requirements under specific circumstances. One such alternative permits the use of a neckring marking, under certain conditions, in accordance with the Compressed Gas Association (CGA) Pamphlet C-7,
SP 14251 authorizes the transportation of overpacked cylinders, containing Class 2 materials, with CGA C-7 neckring markings provided the overpack is labeled in accordance with § 172.400. Additionally, the CGA petitioned PHMSA (under petition P-1521) to allow cylinders to display the neckring marking even when overpacked. The petition, if adopted, would still require the overpack to display the 100 mm x 100 mm square-on-point labels in accordance with 49 CFR Part 172, Subpart E. The marking prescribed in Appendix A to CGA Pamphlet C-7 provides useful information in a clear and consistent manner and its widespread use on cylinders over the course of several years has enhanced its recognition. The adoption of SP 14251 and CGA's petition would provide greater flexibility for shipments of cylinders while ensuring adequate hazard communication. Therefore, PHMSA is revising as proposed § 172.400a by authorizing the transportation of overpacked cylinders marked in accordance with CGA Pamphlet C-7 provided the overpacks are properly labeled.
Section 173.181 prescribes authorized packagings for the transportation of pyrophoric materials (liquids).
SP 14419 authorizes the use of DOT Specification 3AL cylinders constructed from aluminum alloy 6061-T6 for the transportation of pyrophoric liquids provided: (1) The cylinders are constructed of 6061-T6 aluminum; (2) have a minimum marked service pressure of 1800 psig; (3) have a maximum water capacity of 49 liters; and (4) any preheating or heating of the cylinders is limited to a maximum temperature of 175 °F. In this final rule, PHMSA is revising § 173.181(a) as proposed to permit the use of DOT Specification 3AL cylinders constructed from aluminum alloy 6061-T6, with the same specified conditions for the transport of pyrophoric materials.
Section 173.193(b) requires that “Bromoacetone, Methyl bromide, Chloropicrin and Methyl bromide mixtures, Chloropicrin and Methyl chloride mixtures, and Chloropicrin
SP 12301 authorizes the transportation in commerce of Chloropicrin and Methyl bromide mixtures in DOT 4BW cylinders with water capacity (nominal) not over 454 kg (1,000 pounds). In this final rule, PHMSA is adopting as proposed the revisions to § 173.193(b) that allow for Chloropicrin and Methyl bromide mixtures to be packaged in DOT specification 4BW cylinders with a water capacity of not over 454 kg (1,000 pounds).
Section 173.301 prescribes the general requirements for the use of cylinders including a list of authorized cylinders, general filling requirements, valve protection, and pressure relief device requirements. In the NPRM, we proposed revisions that would amend certain pressure relief device requirements and permit the use of valve caps made from a material other than metal as authorized under the terms of three SPs.
SP 13318 authorizes the transportation in commerce of DOT Specification 39 cylinders of 75 cubic inches or less volume, without the PRD in direct communication with the vapor space. PHMSA proposed to amend paragraph (f)(2) to state that this provision does not apply to cylinders of 75 cubic inches or less in volume filled with a Liquefied petroleum gas, Methyl acetylene and Propadiene mixtures, stabilized, Propylene, Propane or Butane. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
SP 8074 provides an exception from the PRD requirements for a DOT Specification 3E cylinder up to 12 inches long and 2 inches in diameter when filled with the following gases and associated quantity limits: Carbon dioxide, liquefied 0.24L (8 oz.), Ethane 0.12L (4 oz.), Ethylene (4 oz.), Hydrogen chloride, anhydrous 0.24L (8 oz.), Nitrous oxide 0.24L (8 oz.), Vinyl fluoride, stabilized 0.24L (8 oz.) and Monochlorotrifluoromethane 0.35L (12 oz.). In the NPRM, PHMSA proposed to create an additional exception to PRD requirements for DOT-3E cylinders under limited circumstances in new paragraph § 173.301(f)(7). Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
SP 12782 authorizes plastic valve protection caps for certain Division 2.1, 2.2, and 2.3 materials when the valve protection is sufficient to prevent leakage when the cylinder, with the valve installed, is dropped from 2.0 m (7 ft) or more onto a non-yielding floor, impacting the valve assembly or cap at the orientation most likely to cause damage. The HMR require that each cylinder with a valve must have a protective metal cap, other valve protection device, or an overpack which is sufficient to protect the valve from damage during transportation. In the NPRM, PHMSA proposed to amend §§ 173.40(d) and 173.301(h) to allow for the new valve protection standard, including the valve cap, to be made from plastic as authorized in SP 12782. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
Sections 173.302, 173.302a, 173.304 and 173.304a prescribe additional requirements for the transport of non-liquefied (permanent) and liquefied compressed gases in DOT specification cylinders. These requirements include authorized cylinders and filling limits. Section 173.302a(b) states that a DOT 3A, 3AA, 3AX, 3AAX, and 3T cylinder may be filled with a compressed gas, other than a liquefied, dissolved, Division 2.1, or Division 2.3 gas, to a pressure 10% in excess of its marked service pressure, subject to certain criteria.
SP 6530 authorizes the transport in commerce of hydrogen and mixtures of hydrogen with helium, argon, or nitrogen, in certain cylinders filled to 10% in excess of their marked service pressure. In the NPRM, PHMSA proposed to add a new paragraph (c) to include this exception and to redesignate the other paragraphs in this section to reflect this addition. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM with the exception of an editorial correction. In the NPRM, paragraph (c)(3)(ii) stated that cylinders manufactured with chrome moly steel must have been normalized. The paragraph has been corrected to state that the steel must have been quenched and tempered, not normalized. In addition the paragraph (c)(4) the term safety relief devices has been corrected to pressure relief devices for consistency with current regulations.
In § 173.304a(a)(2), a table provides the maximum filling densities and permissible cylinder types for certain named gases. Currently, § 173.304a(a)(2) permits a maximum filling density of 68% for carbon dioxide and nitrous oxide in DOT 3, DOT 3HT2000 and DOT 39 cylinders, and DOT 3A, 3AA, 3AX, 3AAX, 3E, 3T, and 3AL cylinders with a marked service pressure of 1800 psi.
SP 13599 authorizes additional maximum filling densities for carbon dioxide and nitrous oxide to include 70.3%, 73.2%, and 74.5% respectively in DOT 3A, 3AA, 3AX, 3AAX, 3AL, and 3T cylinders with marked service pressures of 2000, 2265, and 2400 psig, subject to operational controls. Air Products and Chemicals Inc. (Air Products) submitted a petition for rulemaking (P-1560) requesting PHMSA revise § 173.304a(a)(2) to adopt the provisions of SP 13599. In the NPRM, PHMSA proposed to modify the entries currently in the table in § 173.304a(a)(2) to add additional filling densities for carbon dioxide and nitrous oxide. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
The HMR prescribe requirements for the continuing qualification, maintenance, and periodic requalification of DOT specification cylinders, DOT SP cylinders, and UN pressure receptacles. These requirements ensure that cylinders conform to the appropriate specification and compromised cylinders are not filled with hazardous materials. The discussion of the proposed amendments includes a section-by-section review of the current requirements, and a brief discussion of SPs considered for adoption and proposed amendments.
Paragraph (e) of § 180.209 authorizes a proof pressure test in lieu of the volumetric expansion test for 4B, 4BA, 4BW, or 4E cylinders protected with a corrosion resistant coating and used exclusively for the gases specified in that paragraph.
SP 12084 expands the list of authorized gases in paragraph (e). These gases include refrigerated and liquefied gases similar to those already permitted by § 180.209(e). In the NPRM, PHMSA proposed to adopt the provisions in SP 12084 by removing the list of authorized
Cylinders requalified in accordance with the HMR must bear requalification markings in accordance with § 180.213. As provided in § 180.213(c), “The depth of requalification markings may not be greater than specified in the applicable specification. The markings must be made by stamping, engraving, scribing or other method that produces a legible, durable mark.”
SP 14937 allows the use of a label embedded in epoxy in lieu of other methods prescribed in § 180.213. In the NPRM, PHMSA proposed to amend paragraph (c) to allow the use of a label embedded in epoxy in lieu of stamping provided the marking is legible and durable. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
Section 173.304 prescribes requirements for the filling of cylinders with liquefied compressed gases. Paragraph (d) of this section provides for authorized containers for the filling of cylinders with refrigerant and dispersant gases. Current regulations authorize these gases in DOT 2Q non-refillable metal containers.
SP 12573 authorizes a refrigerant gas R 134a, (UN3159), in a non-DOT specification container similar to a DOT 2Q container with a maximum allowable pressure for the contents of 198 psig at 54.4 °C (130 °F). In the NPRM, we differed marginally from the SP and proposed to adopt a maximum pressure threshold of 200 psig at 55 °C (131 °F) for the container's contents. We indicated there was no safety basis for the 200 psig ceiling other than we believed it was a cleaner cutoff point than the 198 psig maximum found in the SP. In addition, as part of the variation on the design of a DOT 2Q container, we proposed the modified container would be marked as a “DOT 2Q1.”
Current regulations require that the pressure of the contents of the metal containers not exceed 87 psig at 21 °C (70 °F). In the NPRM, we invited comment on whether the requirement for a maximum pressure should be specified at 21 °C (70 °F) for the 2Q1 container in addition to the limit at 55 °C (131 °F). If so, we invited comment on what the upper limit should be for a typical refrigerant or dispersant gas such as 1,1,1,2 Tetrafluoroethane, R134a.
In its comments, DSC suggests a single requirement of 210 psig at 55 °C (131 °F). It also suggests that such arbitrary actions if adopted could increase the number of SP applications submitted as a result. PHMSA recognizes the commenters concerns, however, changing the reference temperature for the refrigerant gases to 54.4 °C (130 °F) would make section 173.304(d) inconsistent with the other sections for filling of gases. As noted in the NPRM, PHMSA sought to have consistency where some sections referred to 54.4 °C (130 °F) and some to 55 °C (131 °F). In order to address the commenters concerns, PHMSA is raising the proposed maximum pressure authorized in the new DOT 2Q1 container to 210 psig at 55°C (131 °F) as authorized in §§ 173.304 and 173.306. The burst pressure of the DOT 2Q1 will have to be slightly raised accordingly to provide for the same safety factor. This will be discussed in a later section. See the associated discussion in the comments received from Dow earlier in this preamble.
Section 173.306 prescribes the general requirements and exceptions for limited quantities of compressed gases. In the NPRM, we proposed numerous changes to this section. The proposed changes and resolutions are discussed in the following.
Throughout § 173.306 of the HMR and within related SPs that provide exemptions from these regulations for gases, pressure standards are indicated at either 130 °F or 131 °F. In the interest of consistency and conformity with the general requirements for compressed gases in § 173.301 and 173.301a, in the NPRM we proposed to change all references of 54.4 °C (130 °F) to 55 °C (131 °F). We invited comment on whether there would be any negative impacts in making this conforming change. We also proposed making revisions to the construction and formatting of how this section is presented (
Under § 173.306, limited quantities of foodstuffs or soaps with soluble or emulsified compressed gas are authorized in nonrefillable metal or plastic containers. The paragraph (b)(1) introductory text authorizes these containers subject to a pressure not to exceed 140 psig at 54.4 °C (130 °F). SP 13601 and SP 14503 authorize the transportation of “UN1950, Aerosols, non-flammable (each not exceeding 1 L capacity), 2.2,” and SP 7951 authorizes the transportation of “UN1956, Compressed gas, n.o.s., 2.2,” in containers that otherwise conform to DOT 2P or DOT 2Q specifications with some modifications. Under the terms of SP 13601, the containers must have a maximum pressure for the contents not to exceed 160 psig at 54.4 °C (130 °F) and, for SP 7951 and SP 14503, the containers must have a maximum pressure for the contents not to exceed 150 psig at 23.9 °C (75 °F) and must be transported in a refrigerated state.
In the NPRM, we requested comments on whether refrigeration should be a condition of transport of these foodstuffs under pressure. In their comments, DSC and CSPA both recommend that PHMSA continue to require refrigeration as a condition of transport of these foodstuffs under pressure. See the comment summary section for a more detailed discussion of this issue. Because at least one of the special permits to be incorporated (SP 13601) does not explicitly require refrigeration, this requirement will not be adopted. Note that the additional limit of 150 psig at 23.9 °C (75 °F) is required. The shipper may use refrigeration if needed to achieve this pressure. As part of the variation of the DOT 2P containers, the modified containers are to be marked as “DOT 2P1” under the provisions of new § 178.33c discussed separately in this rulemaking.
We also proposed in the NPRM to include the specification DOT 2P1 as an authorized metal aerosol container under § 173.306(a)(3)(ii). We saw no reason to limit the container to foodstuffs or soaps under paragraph (b)(1) because the pressure limit for the contents is the same as the current requirement for a standard DOT 2P container. Lastly, we proposed that the DOT 2P1 would be authorized for both Division 2.1 (flammable) and 2.2 (non-flammable) aerosols under
Under § 173.306, limited quantities of compressed gas are authorized in metal aerosol containers as defined in § 171.8 of the HMR. Paragraph (a)(3) introductory text of this section authorizes metal aerosol containers under certain conditions to include packaging types and pressure thresholds. Section 173.306(a)(3)(ii) currently requires the use of a DOT 2Q container for pressures exceeding 160 psig at 54.4 °C (130 °F) but not to exceed 180 psig. Except for some modifications, SP 12573 authorizes the packaging of UN1950, Aerosols, non-flammable, in non-DOT specification containers that otherwise conform to the DOT 2Q specification with a maximum pressure of 198 psig at 54.4 °C (130 °F).
In the NPRM, we proposed to adopt the modified DOT 2Q as an authorized metal aerosol container. We differed marginally from the SP in that we proposed to adopt a maximum pressure threshold of 200 psig at 55 °C (131 °F). We stated that there was no safety basis for the 200 psig ceiling other than we believed it was a cleaner cutoff point than the 198 psig maximum found in the SP. Additionally, we sought to provide consistency by using a reference temperature of 55 °C (131 °F). PHMSA received comments about the negative impact of raising the reference temperature from 54.4 °C (130 °F) to 55 °C (131 °F) particularly for shippers of R134a which has a pressure of 198 psig at 54.4 °C (130 °F). The commenters further stated that the pressure of R134a at 55 °C (131 °F) is 202 psig and that a pressure of 210 psig should be adopted. Consequently, in this final rule, PHMSA will adopt a pressure of 210 psig at 55 °C (131 °F) in order to allow for small variations; however, the reference temperature will remain at 54.4 °C (130 °F). As part of the variation of the specification of a DOT 2Q container, we stated the modified container will be marked as “DOT 2Q1.”
In the NPRM, the proposed design burst pressure of the DOT 2Q1 was 300 psig. Because the fill pressure of the DOT 2Q1 will be 210 psig at 55 °C (131 °F), PHMSA will raise the design burst pressure to 320 psig in this final rule. The pressure of 320 psig is consistent with the minimum design burst pressure in SP 12573.
The NPRM also proposed to expand authorized materials to include Division 2.1 aerosols for the DOT 2Q1 specification. At that time, we saw no reason to limit the use of this container to non-flammable aerosols based on its record of use and that DOT 2Q containers currently authorized in the HMR are authorized to be used for all aerosol types. We also invited comment on the suitability of the container for all aerosol types. See the associated comment summary discussions for §§ 173.304 and 178.33d. PHMSA received mixed comments on the use of the DOT 2Q1 container for flammable gases. Because there has been no experience with this type of container equipped with a pressure relief device in flammable gas service, we will not adopt the DOT 2Q1 for any materials other than those authorized in the special permits incorporated at this time.
SP 13581 is linked to the above proposed provision in that it authorizes the use of metal aerosol containers manufactured, tested, and marked according to SP 12573. We believe this SP will no longer be needed with the adoption of the modified DOT 2Q container (
As a condition of the use of a metal aerosol container used for certain commodities, each container, after being filled, must be subjected to a hot water bath to raise the internal pressure to such a degree that leakage or permanent deformation, if any, can be determined [see § 173.306(a)(3)(v)]. The provision also provides for a testing protocol for a container where the contents may be sensitive to heat. Currently, this is the only method authorized for determining leakage or permanent deformation. Thus, fillers that have developed other testing protocols or do not want to subject their products to a hot water bath test, must obtain a SP to do so. A number of SPs that authorize the use of alternative methods to determine leakage or permanent deformation are discussed as follows:
(1) Alternate hot water bath test. SP 12995 authorizes a methodology that is a combination of a hot water bath test, a weight test, and visual inspection. Rather than subjecting each filled container to a hot water bath test, only one container out of each lot is subjected to the hot water bath test, a second is subjected to a weight test, the results of which must be compared to weight specification for the container as outlined in quality control procedures, and finally, the remainder of the lot must be visually inspected by examining the valve, crimp, and seam areas for evidence of leakage.
In the NPRM, we proposed to adopt SP 12995. The permit authorizes only DOT 2Q containers but we are applying it to all authorized metal aerosol containers. While determining if SP 12995 was suitable for inclusion in this rulemaking, PHMSA's technical evaluators confirmed that the methodology that includes a combination of hot water bath test, weight test, and visual inspection may be performed on a DOT 2P as well as a DOT 2Q. Since these containers are similar designs except in terms of strength, this alternative to the hot water bath test is applicable to any metal container. Previously, most applicants of SP 12995 only requested 2Q because that is what they needed for their particular hazmat, but that does not mean that alternative testing is not acceptable for similar containers. Additionally, the permit applies to specific filling conditions but we will apply this testing method to containers complying with the current filling conditions in § 173.306(a)(3). Finally, we vary from the permit with our proposed language in that we require maintenance and access to operating procedures especially with regard to the weight test and specification in order to effect a broader application of this alternative. Rather than specify standards, we will allow persons to develop their own procedures that best fit their product on the condition that DOT has access to these procedures. Commenters were very supportive of our proposals to adopt such testing alternatives and, in this final rule, we are codifying them as proposed.
(2) Automated in-line pressure test. SPs 14429, 14623, 14625, 14627, 14723, 14724, 14786, 14842, 14887, 14953, 15135, 15265, 15427, and 15972 all authorize the use of an automated process to check the pressure of filled containers (
(3) Weight test. SP 14440 authorizes the use of a process to check the weight of filled containers (
(4) Leakage test. SP 14544 authorizes the use of a high pressure air test on empty containers combined with a leakage test for filled containers instead of subjecting the containers to a hot water bath. The testing protocol for filled containers found in this SP is currently applied to plastic containers under paragraph (a)(5) of this section in the HMR, however, the pressure and leakage test of the empty containers differs in its application. Under SP 14544, each empty container must be pressure tested at 120 psig instead of the HMR requirement that each empty container must be subjected to a pressure equal to or in excess of the maximum expected in the filled containers at 55 °C (131 °F), and that is at least two-thirds of the design pressure of the container. Under both tests, if there is evidence of leakage, the container must be rejected. In this final rule, we are adopting the provisions of the SP as proposed to authorize the use of a leakage test as a means to determine compliance with pressure requirements. Our implementation differs from the SP in that we are adopting the leakage testing requirements under § 173.306(a)(5)(v), but including the SP 14544 testing protocol for empty containers as an alternative.
The HMR provide special considerations for compressed gases in accumulators. SP 8786 authorizes the transport of accumulators under an alternative testing procedure than what is prescribed in paragraphs (f)(2) and (f)(3) of this section. Rather than testing each accumulator to three times (3x) the charge pressure, the SP provides for conditions to test one accumulator out of each lot of 1,000 to the burst design pressure, and two accumulators to two and a half times (2.5x) the charge pressure. In the NPRM, we proposed to adopt most of SP 8786 into § 173.306. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
The general packaging requirements of the HMR forbid the transport of leaking or improperly-filled packages. This includes aerosol containers that are found to be leaking or improperly filled as part of a combination packaging. SP 11296 provides an option to transport these containers to an offsite facility for disposal under certain conditions (
Under the HMR, certain DOT specification containers with restricted capacity and commonly referred to as “aerosol containers” are authorized for the transportation of compressed and liquefied compressed gases under certain scenarios. These containers include DOT 2P (inner non-refillable metal) containers. The specification standards are prescribed in § 178.33 of the HMR and do not provide for variations of those standards. Thus, technological advances or design modifications to satisfy customer needs are such that the resulting metal containers would not conform to the standards for a DOT 2P container, nor any other container authorized under §§ 173.304 or 173.306 of the HMR. SPs 13601 and 14503 (also 7951) provide for a variation of the DOT 2P container specifications by authorizing construction of the container according to modifications of the standards for manufacture and testing.
The special permits authorized variations of a DOT 2P container that are equipped with some manner of pressure relief system (
In the NPRM, we stated that we have no specific information in the SP(s) on the relationship between the functional range and the tested burst pressure. The current minimum burst pressure for a DOT 2P container is 240 psig (§ 178.33-8). Using the SP 13601 construction requirements, the minimum burst pressure is indicated as 270 psig (assumed at 130 °F) and pressure of the contents at 130 °F may not exceed 160 psig thus, equating to approximately 1.7x the contents at 130 °F without bursting (which is more stringent than for a DOT 2P under the HMR). Thus, the upper pressure range of the relief system is 77.8% of the design burst pressure of 270 psig.
This is further complicated under SP 14503 (and 7951) where the standard for the pressure of the contents is set at 23.9 °C (75 °F) for which we do not have an equivalent requirement under the HMR. Additionally, the ranges for functioning of the relief systems have a higher upper bound, 175 psig to 250 psig and 175 psig to 235 psig, respectively. Lastly, there is no minimum burst pressure specified in SP 14503 (and 7951); therefore, we must default to the DOT 2P minimum burst pressure of 240 psig. Again, the circumstances are unclear in that the upper bounds for the functional ranges approach or exceed the DOT 2P minimum burst pressure yet we do not have information on the actual tested burst pressure which could be much larger. Therefore, based on the requirements of SP 13601, we proposed to implement a requirement that for containers with pressure relief systems, the upper bound of the functional range for a pressure relief system must be no greater than 85% of the minimum burst pressure. In the NPRM, we proposed to incorporate the standards for the modified DOT 2P container described in SP 13601 (and likely 14503 (7951)) as a variation of the DOT 2P container design. As adopted in this final rule, the variation is required to be marked as a “DOT 2P1.” All standards for a DOT 2P1 remain the same as those for a DOT 2P except for the variations prescribed in new § 178.33c-2.
Commenters expressed concerns about imposing pressure limits on the range of the pressure relief systems although there are various pressure limits in each special permit that incorporates a rim vent release type of device in the container design. The commenters state that the actual activation range of the pressure relief system design is not as important to safety as that the system must function before the container bursts. We agree with the commenters. In the testing requirement of DOT 2P1, the performance standard is that the containers must fail at the location of the pressure relief system or the lot will be rejected. PHMSA believes that incorporating the DOT 2P1 without a
Under the HMR, certain DOT specification containers with restricted capacity and commonly referred to as “aerosol containers” are authorized for the transportation of compressed and liquefied compressed gases under certain scenarios. These containers include DOT 2Q (inner non-refillable metal) containers. Though the DOT 2Q specification is prescribed in § 178.33a of the HMR, it does not provide for variations of those standards. Thus, technological advances or design changes to satisfy customer needs are such that the resulting metal containers would not conform to the standards of a DOT 2Q container, nor any other container authorized under either §§ 173.304 or 173.306 of the HMR. SP 12573 provides for a variation of the DOT 2Q container specifications by authorizing construction of the container according to modifications to the standards for type and size, manufacture, wall thickness, and testing. SP 14503 also provides for a variation of the DOT 2Q container specification by authorizing construction of the container according to modifications to its manufacture and testing criteria.
Variations provided in the SPs for DOT 2Q containers require that they are equipped with some type of pressure relief system (
The requirements under SP 14503 operate differently in that the standard for the pressure of the contents is set at 23.9 °C (75 °F) to which we do not have an equivalent requirement under the HMR. Additionally, the SP provides for a range of pressure for functioning of the relief systems, specifically, 180 to 300 psig. Lastly, there is no minimum burst pressure specified in SP 14503 so we must default to the DOT 2Q minimum burst pressure of 270 psig. The upper bound for the functional range exceeds the 2Q minimum burst pressure yet we do not have information on the actual tested burst pressure which could be much larger. Therefore, based on a similar proposal to implement provisions of SP 13601 for 2P containers (see § 178.33c preamble discussion), the upper bound of the functional range for a pressure relief system must be no greater than 80% of the test pressure. In the NPRM, we invited comment on using this approach and whether it would be preferable to implement a requirement for the upper bound of the range based on the pressure of the contents.
Commenters did not respond specifically to the question of functional range for the DOT 2Q1 or 2Q2; however, they expressed concerns about imposing pressure limits on the range of the pressure relief systems of the DOT 2P1 which incorporates a similar pressure relief system design. The commenters state that the actual activation range of the pressure relief system design is not as important to safety as that the system must function before the container bursts. We agree with the commenter. We are imposing the same testing requirement as that for the DOT 2P1 in that the containers must fail at the location of the pressure relief system or the lot will be rejected. The containers with an end expansion device must buckle prior to burst.
In this final rule, we are adopting as proposed the standards for the modified DOT 2Q container described in SP 14503 as a variation on the DOT 2Q container design. This variation is required to be marked as a “DOT 2Q2.” Further, the pressure relief device requirements for the DOT 2Q2 will be the same as that for the DOT 2P1 and 2Q1.
Section 173.315 prescribes bulk packaging provisions for liquefied compressed gases in UN and DOT specification cargo tanks and portable tanks.
SP 12576 authorizes non-DOT specification cargo tanks for the transportation of “UN1080, Sulfur hexafluoride” that otherwise conform to the MC 331 specifications except for design pressure, capacity, and marking. In the NPRM, we proposed to revise the § 173.315(a)(2) table by referring to a new note 28 in the entry for “Division 2.2, materials not specifically provided for in this table” as Sulfur hexafluoride is not listed by name in the table. New note 28 codifies such tanks specified in SP 12576 for the transportation of sulfur hexafluoride. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
Section 173.319 prescribes the loading and packaging provisions for cryogenic liquids transported in rail tank cars.
SP 12039 authorizes the transportation in commerce of DOT 113C120W rail tank cars containing “UN1038, Ethylene, refrigerated liquid,” at an internal pressure of 20 psig instead of the maximum 10 psig. Currently, the HMR authorizes a maximum of 10 psig in a DOT 113C120W rail tank car containing cryogenic ethylene when offered for transportation by rail. Because we did not receive public comment on this amendment, supportive or otherwise, it is adopted as proposed in the NPRM.
Section 176.90 prescribes requirements for private automobiles
In the NPRM, PHMSA proposed to renumber the existing paragraph in § 176.90 as paragraph (a), and add a new paragraph (b) to adopt an exception for “UN3166, Engines, internal combustion, flammable gas powered
Section 176.800 of the HMR prescribes general vessel stowage requirements for corrosive materials.
SP 11691 authorizes transportation in commerce of certain flammable and corrosive liquids, which are the ingredients of soft drinks (beverages), not subject to the segregation requirements for vessel stowage when shipped in the same transport unit. In the NPRM, we proposed to add a new special provision, W11, to § 172.102, regarding vessel segregation of corrosive and combustible materials and foodstuffs. Based on comments from PCSD, proposed Special provision W11 is being replaced by revising paragraph (a) of § 176.800 to allow Class 8 (corrosive) materials that are also foodstuffs or foodstuff ingredients intended for human consumption to not be considered incompatible for segregation purposes.
Section 171.8 defines terms generally used throughout the HMR that have broad or multi-modal applicability.
In the NPRM, PHMSA proposed to add the following definition based on the adoption of SP 11458:
SP 11458 authorizes the transportation in commerce of display packs of consumer commodity packages or limited quantity packages that exceed the 30 kg gross weight limit. The provisions of SP 11458 were proposed for adoption into § 173.156. However, the term “display pack” is not currently defined in the HMR. In the NPRM we proposed to adopt the definition of “display pack” in § 171.8 based upon its definition in SP 11458. Commenters were very supportive of our proposal to adopt a definition of display packs in § 171.8 and, in this final rule, we are codifying it as proposed.
Section 172.101 provides instructions for using the Hazardous Materials Table (HMT) and the HMT itself. Column 7 of the HMT provides codes for special provisions applicable to specific hazardous materials descriptions. Special provisions may contain unique packaging requirements, prohibitions, and exceptions applicable to particular quantities or forms of hazardous materials. When Column 7 of the HMT refers to a special provision, the requirements of that special provision are as set forth in § 172.102. In the NPRM, PHMSA proposed the following revisions to § 172.102:
SP 10705 provides relief from the segregation requirements of § 177.848(d) for the transport of “UN1092, Acrolein, stabilized,” by private carrier in a motor vehicle. In the NPRM, PHMSA proposed to add Special Provision 380 to § 172.102(c)(1) to codify SP 10705. The SP prescribes the packaging that must be used and the materials in which it may be loaded. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
SP 7991 provides relief from the HMR for the transportation of railroad flagging kits by highway. See § 173.184 for a detailed discussion of the adoption of SP 7991. In the NPRM, PHMSA proposed to add Special Provision 381 to § 172.102(c)(1) to codify SP 7991. As adopted in this final rule, Special Provision 381 will be assigned to the following HMT entries: Fusee (rail or highway) (NA1325, Division 4.1, PG II); Articles, pyrotechnic (UN0431, Division 1.4G, PG II); Signal Devices, hand (UN0373, Division 1.4S, PG II); Signal Devices, hand (UN0191, Division 1.4G, PG II); and Signals, railway track, explosive (UN0193, Division 1.4S, PG II). Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
SP 8006 provides relief from the labeling requirements of § 172.400(a) for the transportation of toy plastic or paper caps for toy pistols by motor vehicle, railcar, cargo vessel, and cargo aircraft. See § 172.400a(a)(8) for a detailed discussion of the adoption of SP 8006. In the NPRM, PHMSA proposed to add Special Provision 382 to § 172.102(c)(1) to codify SP 8006. Special Provision 382 will be assigned to the following HMT entries: Articles, explosive, n.o.s. (UN0349) and Toy caps (NA0337). Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
SP 11356 authorizes material meeting the conditions for high viscosity flammable liquids specified in § 173.121(b)(1)(i), (b)(1)(ii), and (b)(1)(iv), to be re-classed to Packing Group III for transportation by motor vehicle. In the NPRM, PHMSA proposed to add Special Provision 383 to § 172.102(c)(1) to codify SP 11356. The SP prescribes packaging, capacity limitations, and load securement requirements. Special Provision 383 will be assigned to the following HMT entries: Coating solution (UN1139, PG II) and Paint (and Paint related material) (UN1263, PG II). Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
SP 11666 authorizes the transportation of green graphite electrodes and shapes that are large single component solid objects not subject to sifting, in open rail flat cars, open bed motor vehicles, and intermodal containers. In the NPRM, PHMSA proposed to add Special Provision 384 to § 172.102(c)(1) to codify SP 11666. The SP prescribes load securement requirements for the electrodes and shapes. Further, the SP permits stacking two or more levels high
SP 13343 authorizes the use of cargo heaters when weather conditions are such that the freezing of certain wetted explosive material is likely. In the NPRM, PHMSA proposed to add Special Provision 385 to § 172.102(c)(1) to codify SP 13343. Transportation must be performed by private, leased or contract carrier vehicles in exclusive use. Further, cargo heaters must be reverse refrigeration (heat pump) units. Shipments made in accordance with the SP are excepted from the anti-freeze requirements of § 173.60(b)(4). The provisions of SP 13343 are specific to “UN0394, Trinitroresorcinol, wetted
In the NPRM, we proposed to codify SP 6614 by establishing a new paragraph (b)(3) to authorize polyethylene bottles with rated capacities of one gallon (3.785 liters), packed inside an open-top, heavy wall, high density polyethylene box for shipping certain PG II and III corrosive liquids by private motor carrier. In this final rule, we are adopting SP 6614 as proposed; however, we are moving the amendment from paragraph (b) to new § 172.102(c)(1), Special provision 386, as it is a more appropriate location in the HMR for it.
SP 14525 provides relief from the HMR except for the shipping paper requirements of Subpart C of Part 172, emergency response information as required by § 172.602, and the marking requirements of § 172.302(a), (b), and (d) when transporting used diatomaceous earth filter material by highway. In the NPRM, PHMSA proposed to add Special Provision B130 to § 172.102(c)(3) to codify SP 14525. The SP prescribes packaging, quantity limitations, and the required method of storing the packages within the motor vehicle. The provisions of SP 14525 are specific to “UN3088, Self-heating solid, organic, n.o.s” (PG III); therefore, Special Provision B130 will be assigned exclusively to that HMT entry. Because we received minimal public comment on the proposal, in this final rule, we are adopting the amendment as proposed.
As previously discussed, SP 11624 was not proposed for adoption in the NPRM. The SP is in its fifteenth revision and has 114 grantees. The SP authorizes transportation in commerce of certain waste Class 3 paint and paint related material (UN1263; PG II and PG III) contained in metal or plastic pails further packed in non-specification bulk packagings such as cubic yard boxes, plastic rigid-wall bulk containers, dump trailers, and roll-off containers. After careful reevaluation, SP 11624 and three related packaging SPs (
SP 11602 authorizes the transportation in commerce of certain Division 4.3 materials contained in sift-proof closed bulk packagings that prevent water from reaching the hazmat and have sufficient venting to preclude a dangerous accumulation of gaseous emissions. In the NPRM, we proposed to adopt the provisions of SP 11602 in its entirety in § 173.151(g). Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed. However, in this final rule, we are moving the amendment to new § 172.102(c)(3), Special provision B132 as it is a more appropriate section for these provisions.
Section 172.202 prescribes requirements for describing hazardous materials on shipping papers. In many scenarios, a net or gross quantity of the hazardous materials must be included.
SP 11811 provides relief from this requirement for local collections operations transporting hazardous materials and hazardous substances by highway that are “household wastes” as defined in 40 CFR 261.4 and not subject to the Environmental Protection Agency's hazardous waste regulations in 40 CFR, Parts 262 and 263. In the NPRM, we proposed to revise paragraph (c) of § 172.202 to adopt the provisions of SP 11811 in its entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 172.315 prescribes marking requirements for packages of limited quantities of hazardous materials.
SP 11197 provides relief from the requirement to display the limited quantity marking on packages containing certain low-risk materials assigned to PG II and III prepared in accordance with the limited quantity provisions in Subpart B of part 173 of the HMR for highway transportation by private motor carrier. The SP prescribes inner packaging and package quantity limitations; the maximum gross weight of packages that may be transported in one vehicle; and special package marking requirements. In the NPRM, we proposed to add a new paragraph (a)(3) to § 172.315 to adopt the provisions of SP 11197 in its entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 172.400a provides exceptions from the § 172.400 general labeling requirements for packages or containment devices of hazardous materials.
SP 8006 provides relief from the § 172.400 general labeling requirements for toy plastic or paper caps for toy pistols described as “UN0349, Articles, explosive, n.o.s. (Toy caps), 1.4S” or “NA0337, Toy caps, 1.4S” when offered for transportation by motor vehicle, rail freight, cargo vessel, and cargo aircraft. The toy plastic or paper caps must have been examined in conformance with § 173.56 and approved by the Associate Administrator. In the NPRM, we proposed to add a new paragraph (a)(8) to § 172.400a to adopt the provisions of SP 8006 in its entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 173.12 provides certain exceptions and authorizations for the transportation of waste hazardous materials.
SP 11470 authorizes transportation by motor vehicle and cargo vessel of shrink-wrapped pallets containing boxes of waste ORM-D or limited quantity materials when marked with the word “WASTE” on the outside of
Section 173.29 prescribes certain requirements, exceptions, and authorizations for the transportation of empty packagings.
SP 9610 provides relief from shipping paper and placarding requirements of Subparts C and F of part 172, respectively, for smokeless powder residue when transported by motor vehicle or railcar in “Container-on-flat-car” (COFC) or “Trailer-on-flat-car” (TOFC) service. The smokeless powder must be approved in conformance with § 173.56 as a Class 1 explosive substance. The SP prescribes packaging requirements, quantity limitations, operational controls, and a specific shipping description for the material. In the NPRM, we proposed to revise paragraph (f) of § 173.29 to adopt the provisions of SP 9610 in its entirety. Because of the supportive public comments received as a result of our proposal, in this final rule, we are adopting the amendments as proposed with minor revisions to allow additional packaging types.
Section 173.63 provides packaging exceptions for certain Class 1 (explosive) materials.
SP 4850 authorizes Cord, detonating,
Section 173.156 provides exceptions for the transportation of certain limited quantities and other regulated materials (ORM).
SP 11458 authorizes
SP 11470 authorizes transportation by motor vehicle and cargo vessel of shrink-wrapped pallets containing boxes of waste ORM-D or limited quantity materials when marked with the word “WASTE” on the outside of the pallet instead of each individual box. The adoption of SP 11470 relating to exceptions for waste limited quantity and ORM-D materials is discussed in the preamble for § 173.12. In the NPRM, we proposed to add a new paragraph (d) to § 173.156 that directs the reader to the new paragraph (h) of § 173.12 which codifies the provisions of SP 11470. Because of the supportive public comments received as a result of our proposal, in this final rule, we are adopting the amendment as proposed with one modification. Veolia supports adoption of SP 11470 with one substantial modification—the HMR should not limit to “expired” consumer products but rather all consumer commodities shipped for disposal/recycling under manufacturer recalls, off-spec/unwanted/unneeded product, etc. We recognized the merit of Veolia's comment and revised § 173.12 accordingly.
Section 173.159 prescribes requirements for the transportation of wet electric storage batteries.
SP 11078 conditionally excepts the transportation of nickel cadmium batteries containing potassium hydroxide, a Class 8 material, from other requirements of the HMR when transported by motor vehicle, railcar, cargo vessel and passenger and cargo aircraft. In the NPRM, we proposed to add a new paragraph (j) to § 173.159 to codify the provisions of SP 11078 in its entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
SP 13548 authorizes transportation in commerce of lead acid batteries and packages of battery acid (with two different identification numbers) on the same vehicle. Commenters were supportive of its adoption in the HMR. In this final rule, the introductory text in paragraph (e) is revised accordingly.
Section 173.168 prescribes specific approval, testing, protection, packaging, and equipment marking requirements for chemical oxygen generators.
SP 11984 authorizes certain unapproved chemical oxygen generators with only one positive means of preventing unintentional actuation of the generator, and without the required approval number marked on the outside of the package, to be transported by motor vehicle, railcar, and cargo vessel. In the NPRM, we proposed to add a new paragraph (g) to § 173.168 to adopt the provisions of SP 11984 in its entirety. Veolia supports adoption of SP 11984 with one modification—the HMR should require flame-proof outer packaging for chemical oxygen generators shipped with only one positive means of preventing unintentional activation as expressed in concern for equivalent level of safety in proposed SP modification in August 2011. Veolia's comments notwithstanding, because of the mainly supportive public comment received and safety evaluation as a result of our proposal, in this final rule, we are adopting the amendment as proposed.
Section 173.184 prescribes packaging requirements for the transportation of highway or rail fusees.
When in conformance with SP 7991, flagging kits transported on railroad motor vehicles including privately-owned motor vehicles under the direct control of on-duty railroad employees, are excepted from the requirements of the HMR. Flagging kits may only contain fusees and railroad torpedoes described as: Fusee (rail or highway) (NA1325, Division 4.1, PG II); Articles, pyrotechnic (UN0431, Division 1.4G, PG II); Signal devices, hand (UN0373, Division 1.4S, PG II); Signal devices, hand (UN0191, Division 1.4G, PG II); and Signals, railway track, explosive (UN0193, Division 1.4S, PG II). This SP prescribes packaging requirements, quantity limitations, and operational controls. In the NPRM, we proposed to add a new paragraph (c) to § 173.184 to adopt the provisions of SP 7991 in its entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 173.226 prescribes specific packaging requirements for the transportation of materials poisonous by inhalation, Division 6.1, PG I, Hazard Zone A.
When transported as prescribed in SP 11055, liquid hazardous materials in Division 6.1, PG I, Hazard Zone A, are excepted from the segregation requirements of §§ 174.81, 176.83, and 177.848(d). The SP prescribes packaging and testing requirements, quantity limitations, and cushioning and absorbent material requirements. In the NPRM, we proposed to add a new paragraph (f) to § 173.226 to adopt the provisions of SP 11055 in its entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 173.306 provides exceptions for limited quantities of compressed gas. Section 173.306(e) currently permits only new (unused) refrigerating machines to be excepted from specification packaging, placarding, and certain rail and highway modal requirements.
SP 13199 permits reconditioned (used) refrigerating machines (UN2857, Div. 2.2) to be transported under the requirements prescribed in § 173.306(e) and excepted from the marking requirements of § 172.302(c) when transported by motor vehicle and meeting certain structure and Class A refrigerant gas weight requirements. In the NPRM, we proposed to add new paragraph (e)(2) to § 173.306 to adopt the provisions of SP 13199 in its entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 173.322 prescribes packaging requirements for ethyl chloride. In the January 30, 2015 NPRM, we proposed to add a new paragraph (f) to § 173.322 to adopt the provisions of SP 14422 in its entirety. Because SP 14422 is no longer an active special permit, in this final rule, we are not adopting the amendment as proposed.
Section 174.67 prescribes operational requirements for the railroad tank car unloading of hazardous materials.
SP 12002 authorizes the clearing of frozen liquid blockages from tank car outlets by attaching a fitting to the outlet line and applying nitrogen at a pressure of 50 to 100 psi for combustible liquid or Class 3 liquid petroleum distillate fuels. In the NPRM, we proposed to revise paragraph (g) to § 174.67 to adopt the provisions of SP 12002 in its entirety. In its comments, ACA recommends that the use of nitrogen should be permitted “at a pressure of up to 100 psi” for clarity. We agree and revise § 174.67(g) accordingly.
Currently there is no § 177.820 in the HMR. However, in the NPRM, we proposed to add a new § 177.820 that authorizes the movement of certain hazardous materials across public roads with limited exceptions.
SPs 11352, 12207, 12306, 13165, and 14945 authorize the movement of certain hazardous materials across public roads. Such movements are not subject to Subparts C (Shipping Papers), D (Marking), E (Labeling), and F (Placarding) of Part 172. The SPs prescribe specific operational controls. In the NPRM, we proposed to add a new § 177.820 to adopt the provisions of these SPs in their entirety. COSTHA and DGAC support the adoption of SPs 11352, 12207, 12306, 13165, and 14945; however, according to COSTHA, the proposed regulatory text in § 177.820 appears to be more restrictive than the HMR applicability exceptions currently in § 171.1(d)(4). We agree with COSTHA and are not adopting the five SPs and new Section 177.820 as proposed in the NPRM.
Section 177.834 establishes general operational requirements for hazardous materials transportation by highway.
SPs 9874, 13190, 13424, 13959, 14141, 14150, 14680, 14822, 14827, and 14840 authorize “attendance” of the loading or unloading of a cargo tank by a qualified person observing all loading or unloading operations by means of video cameras and monitors or instrumentation and signaling systems such as sensors, alarms, and electronic surveillance equipment located at a remote control station. In the NPRM, we proposed to revise paragraphs (i)(3) and (i)(4) of § 177.834 to adopt the provisions of these SPs in their entirety.
In its comments, Dow supports codification of the SPs but has specific concerns: (1) SP 9874 and 14822 authorize instrumentation and signaling systems such as sensors, alarms, and electronic surveillance equipment in addition to video monitoring; (2) SPs 9874 and 14822 do not require a video camera with a “motorized zoom lens capable of panning and zooming from the remote control station”; (3) SPs 9874 and 14822 do not require that the view capability must include the entire containment area; and (4) the need for assurance that the attendance requirements in § 177.834 (i) apply to motor carriers only. We agree that Dow's comments have merit and, in this final rule, except for number (4), the regulatory text in § 177.834(i) is revised accordingly. Regarding issue number (4), long-standing interpretations preclude the need to revise the attendance applicability provisions of the HMR.
SPs 13484 and 14447 authorize “attendance” of the loading or unloading of a cargo tank through the use of hoses equipped with cable connected wedges, plungers, or flapper valves located at each end of the hose, able to stop the flow of product from both the source and the receiving tank within one second without human intervention in the event of a hose rupture, disconnection, or separation. The SPs prescribe inspection requirements and operational controls for use of the hoses. In the NPRM, we proposed to revise paragraphs (i)(3) and (i)(4) of § 177.834 to adopt the provisions of SPs 13484 and 14447 in their entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendments as proposed.
SPs 10597, 10803, 10882, 14618, and 14726 authorize the use of diesel or propane fueled combustion cargo
Section 177.838 prescribes operational requirements for the transportation of Class 4 (flammable solid) materials, Class 5 (oxidizing) materials, and Division 4.2 (self-heating and pyrophoric liquid) materials.
Notwithstanding the segregation requirements of § 177.848(d), SP 11373 authorizes the transport on the same transport vehicle of “UN1384, Sodium hydrosulfite
Section 177.840 establishes specific operational requirements for the transportation of Class 2 (gases) materials.
Notwithstanding the segregation requirements of § 177.848(d), SP 11043 authorizes the transport on the same transport vehicle of Division 2.3, Hazard Zone A materials with materials classed as Division 2.1, Class 3, Class 4, Class 5, and Class 8. The SP prescribes packaging, marking, separation requirements.
Notwithstanding the segregation requirements of § 177.848(d), SP 14335 authorizes the transport on the same transport vehicle of Division 2.3, Hazard Zone A materials with specification non-bulk packagings and IBCs containing only the residue of Division 2.1, 4.3, 5.1, and Class 3 and 8 materials. The SP prescribes separation and securement requirements, operational controls, quantity limitations, and carrier safety rating requirements.
In the NPRM, we proposed to add a new paragraph (a)(3) to § 177.840 to adopt the provisions of SPs 11043 and 14335 in their entirety. Veolia supports the adoption of SP 11043; however, they recommend the regulatory text proposed in § 177.840(a)(3)(i) should be revised to require a 4-foot separation rather than a 5-foot separation for consistency with the segregation spacing requirements in § 173.12(e). We agree and are revising § 177.840(a)(3)(i) accordingly.
Section 177.841 establishes specific operational requirements for the transportation of Division 6.1 and Division 2.3 materials.
Notwithstanding the segregation requirements of § 177.848(d), SP 11151 authorizes transportation by private or contract motor carrier of Division 6.1 PG I, Hazard Zone A materials meeting the definition of a hazardous waste as defined in § 171.8 on the same transport vehicle with materials classed as Class 3, Class 4, Class 5, and Class 8. The Division 6.1 PG I, Hazard Zone A materials must be loaded on pallets and separated from the Class 3, Class 4, Class 5, and Class 8 materials by a minimum horizontal distance of 2.74 m (9 feet). In the NPRM, we proposed to add a new paragraph (f) to § 177.841 to adopt the provisions of SP 11151 in its entirety. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
The § 172.101 HMT designates the materials listed therein as hazardous materials for the purpose of transportation of those materials. For each listed material, the HMT identifies the hazard class or specifies that the material is forbidden in transportation, and provides the proper shipping name or directs the user to the preferred proper shipping name. In addition, the HMT specifies or references requirements in this subchapter pertaining to labeling, packaging, quantity limits aboard aircraft, and stowage of hazardous materials aboard vessels. In the NPRM, we proposed to revise several entries in the HMT to adopt SPs relating to non-bulk packagings and IBCs. Specifically, for “UN1415, Lithium,” “UN2257, Potassium,” “UN3190, Self-heating solid, inorganic, n.o.s.,” “UN1428, Sodium,” “UN1381, Phosphorus, yellow, under water” and “UN2813, Water-reactive solid, n.o.s.” (Packing Group II and III), we proposed to add a reference to § 173.151 to provide packaging exceptions for relevant Hazard Class 4 materials. In this final rule, the provisions adopted for “UN1381, Phosphorus, yellow, under water” and “UN2813, Water-reactive solid, n.o.s.” (Packing Group II and III) are moved to the more appropriate §§ 173.188 and the new § 172.102(c)(3), Special provision B132 respectively. The revisions are discussed in the following sections.
Section 173.62 prescribes packaging instructions for explosives.
SP 12335 authorizes the transportation by motor vehicle, cargo vessel, and cargo aircraft when authorized in the HMT, and passenger-carrying aircraft when authorized for carriage by the HMT and used exclusively to transport personnel to remote work sites certain Division 1.1D and 1.4D detonating cords without the ends being sealed in alternative packaging, provided that the inner packaging containing the detonating cord is made of a static-resistant plastic bag of at least 3 mil thickness and the bag is securely closed for transportation. In the NPRM, we proposed to adopt the provisions of SP 12335 in its entirety in § 173.62. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 173.150 provides exceptions from the HMR for certain Class 3 (flammable liquid) material.
To codify SP 13217, in the NPRM, PHMSA proposed to add a paragraph (h) to § 173.150 that included an exception to permit Diesel fuel (UN1202 or NA1993) and Gasoline (UN1203) to be transported one way, by motor vehicle, directly from the loading location to an equipment repair facility in non-specification non-bulk packaging, known as a gasoline dispenser. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 173.151 provides exceptions for certain Class 4 materials.
In the NPRM, we proposed to add new paragraph (e) that would except “UN1415, Lithium,” “UN2257, Potassium,” and “UN1428, Sodium,” with a net quantity of material per inner packaging not exceeding 25 grams, from the labeling requirements of Part 172, Subpart E and the placarding requirements of Part 172 Subpart F, if they are offered for transportation or are transported in the packagings with conditions set forth in that paragraph. We also proposed to codify SP 11736 by establishing a new paragraph (f) to authorize shipments of “UN3190, Self-heating solid, inorganic, n.o.s,” in unlined, non-DOT specification multi-wall paper bags containing a maximum of 55 pounds (net) weight. Because SP 11736 is no longer active, in this final rule, we are not amending § 173.151 to codify the SP. We further proposed adding new paragraph (g) to authorize “UN2813, Water reactive solid, n.o.s. (contains magnesium, magnesium nitrides)” in PG II or III to be packaged in sift-proof bulk packagings. These revisions codify SPs 11602, 11736, 13796, and 15373. Because we did not receive public comment on the proposals, adverse or otherwise, in this final rule, we are adopting the amendments as proposed.
SP 11602 authorizes the transportation in commerce of certain Division 4.3 materials contained in sift-proof closed bulk packagings that prevent water from reaching the hazmat and have sufficient venting to preclude a dangerous accumulation of gaseous emissions. In the NPRM, we proposed to adopt the provisions of SP 11602 in its entirety in § 173.151(g). Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed. However, in this final rule, we are moving the amendment to new § 172.102(c)(3), Special provision B132 as it is a more appropriate section for these provisions.
SP 13796 authorizes the transportation in commerce of “UN1381, Phosphorus, yellow, under water,” in a 30 gallon UN 1A2 steel drum certified at a minimum to the PG I performance level for solids and the PG II performance level for liquids and, as a minimum, dual marked as UN1A2/X400/S (for solids) and UN1A2 Y/1.4/150 (for liquids). In the NPRM, we proposed to adopt the provisions of SP 13796 in its entirety in § 173.151. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed. However, in this final rule, we are moving the amendment to the most appropriate section for yellow phosphorus, § 173.188; we are also removing the § 173.151 column (8A) exception reference to its HMT entry.
SP 15373 authorizes the manufacture, mark, sale and use of the specially designed combination packagings for “UN1415, Lithium,” “UN2257, Potassium,” and “UN1428, Sodium,” without hazard labels or placards, for quantity limits not exceeding 25 grams. In the NPRM, we proposed to adopt the provisions of SP 15373 in its entirety in new § 173.151(e). Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 173.154 provides exceptions for Class 8, (corrosive) materials.
In the NPRM, we proposed to codify SP 6614 by establishing a new paragraph (b)(3) to authorize polyethylene bottles with rated capacities of one gallon (3.785 liters), packed inside an open-top, heavy wall, high density polyethylene box for shipping certain Packing Group II and III corrosive liquids by private motor carrier. In this final rule, we are adopting SP 6614 as proposed; however, we are moving the amendment from paragraph (b) to new § 172.102(c)(1), Special provision 386, as it is a more appropriate location in the HMR.
In the NPRM, we also proposed to codify SP 14137 in new paragraph (e) to authorize hydrochloric acid concentration not exceeding 38%, in Packing Group II, to be packaged in UN31H1 or UN31HH1 intermediate bulk containers when loaded in accordance with the requirements of § 173.35(h). In this final rule, we are adopting SP 14137 as proposed; however, we are moving the amendment from § 173.154(e) to new § 172.102(c)(3), Special provision B133, as it is a more appropriate location in the HMR.
These amendments to § 173.154 codify SP 6614 and 14137. Because we did not receive public comment on the proposals, adverse or otherwise, in this final rule, we are adopting the amendments as proposed. However, the proposed provisions of SP 12030 are now codified in § 173.159(h)(2), as it is a more appropriate location in the HMR for battery fluid packaging provisions.
Section 173.158 prescribes the general requirements, authorized packagings, and exceptions for nitric acid.
To codify SPs 8230, 9722, and 14213, we proposed in the NPRM to establish a new paragraph (i) to authorize “Nitric acid of up to 40% concentration” in a UN1H1 non-removable head plastic drum with certain conditions set forth in that paragraph and add new paragraph (j) for the transportation of “Nitric acid, other than red fuming, with more than 70% nitric acid” and “Nitric acid, other than red fuming, with not more than 70% nitric acid” in a combination packaging when offered for transportation by rail, highway, or cargo vessel. Because of the supportive public comments received as a result of our proposal, in this final rule, we are adopting the amendments as proposed.
Section 173.159 prescribes packaging, shipping specifications, and exceptions for the transportation of wet electric storage batteries.
To codify SP 13548, in the NPRM, we proposed to revise paragraph (e) to include shipments of electric storage batteries containing electrolyte or corrosive battery fluid, and electric storage batteries and battery acid. SP 13548 authorizes the transportation in commerce of lead acid batteries and packages of battery acid with two different UN numbers on the same motor vehicle with the packages secured against shifting. Because of the supportive public comments received as a result of our proposal, in this final rule, we are adopting the amendments as proposed.
In the NPRM, we proposed to revise § 173.154 by codifying SP 12030 in new paragraph (f). After comment review and our own analysis, we believe this amendment is more appropriately codified in new § 173.159(h)(2) along with the existing provision in new § 173.159(h)(1). Special provision N6 of § 172.102 specifies that battery fluid, acid or alkali, when packaged with an electric storage battery, wet or dry, is to be packaged as prescribed in § 173.159(g) or (h). Thus, in this final rule, we are moving the amendment from § 173.154(f) to § 173.159(h)(2) and codifying it as proposed.
Section 173.181 sets forth packaging and other requirements for pyrophoric materials (liquids).
To codify SP 12920, in the NPRM, we proposed to add new paragraph (d) to § 173.181 that authorizes the transportation of certain pyrophoric materials in a combination package consisting of UN1A2 outer package and a UN1A1 inner package. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed.
Section 173.188 prescribes the packaging instructions for white and yellow phosphorus.
SP 13796 authorizes the transportation of “UN1381, Phosphorus, yellow, under water,” in a 30 gallon UN 1A2 steel drum certified as a minimum to the PG I performance level for solids and the PG II performance level for liquids and, as a minimum, dual marked as UN1A2/X400/S (for solids) and UN1A2 Y/1.4/150 (for liquids). In the NPRM, we proposed to adopt the provisions of SP 13796 in its entirety in § 173.151. Because we did not receive public comment on the proposal, adverse or otherwise, in this final rule, we are adopting the amendment as proposed. However, in this final rule, we are moving the amendment to the most appropriate section for yellow phosphorus, § 173.188; we are also removing the § 173.151 column (8A) exception reference to its HMT entry.
This rulemaking is issued under the authority of the Federal hazardous materials transportation law (49 U.S.C. 5101
This final rule is not considered a significant regulatory action under Executive Order 12866 (“Regulatory Planning and Review”), as supplemented and reaffirmed by Executive Order 13563 (“Improving Regulation and Regulatory Review”), stressing that, to the extent permitted by law, an agency rulemaking action must be based on benefits that justify its costs, impose the least burden, consider cumulative burdens, maximize benefits, use performance objectives, and assess available alternatives, and the Regulatory Policies and Procedures of the Department of Transportation (44 FR 11034). Executive Orders 12866 and 13563 require agencies to regulate in the “most cost-effective manner,” to make a “reasoned determination that the benefits of the intended regulation justify its costs,” and to develop regulations that “impose the least burden on society.”
Executive Order 13610, issued May 10, 2012, urges agencies to conduct retrospective analyses of existing rules to examine whether they remain justified and whether they should be modified or streamlined in light of changed circumstances, including the rise of new technologies. By building off of each other, these three Executive Orders require agencies to regulate in the “most cost-effective manner,” to make a “reasoned determination that the benefits of the intended regulation justify its costs,” and to develop regulations that “impose the least burden on society.”
In this final rule, PHMSA is amending the HMR to adopt provisions contained in certain widely-used or long-standing SPs that have an established safety record. The revisions are intended to provide wider access to the regulatory flexibility offered in SPs and eliminate the need for numerous renewal requests, thus reducing paperwork burdens and facilitating commerce while maintaining an appropriate level of safety. Although difficult to quantify, PHMSA assumes that for most regulated entities in these categories, the revisions in this final rule require little or no change to existing practice or behavior and incremental compliance costs will thus be close to zero. At the same time, the potential for additional safety benefits is also very limited in these cases, as existing practice and operations are already minimizing the number of incidents.
Estimated benefits associated with this rule result from the regulated community no longer being required to apply for an SP and amount to approximately $14,000 annually. Costs associated with the rule are estimated to be negligible annually. Since existing SP holders are already complying with the specifications of the current SPs, the amendments adopted in this final rule would not impose new obligations on current non-holders of SPs. The overall costs and benefits of the rule are dependent on the level of pre-existing compliance and the overall effectiveness of the new requirements specified in this rulemaking.
This final rule has been analyzed in accordance with the principles and criteria contained in Executive Order 13132 (“Federalism”), 64 FR 43255 (Aug. 10. 1999) and the President's May 20, 2009 memorandum (74 FR 24693 [May 22, 2009]). The requirements in this final rule would preempt state, local, and Indian tribe requirements but would not have substantial direct effects on the States, the relationship between the national government and the States, or the distribution of power and responsibilities among the various levels of government. Therefore, the consultation and funding requirements of Executive Order 13132 do not apply.
The Federal hazardous materials transportation law, 49 U.S.C. 5101
(1) The designation, description, and classification of hazardous materials;
(2) The packing, repacking, handling, labeling, marking, and placarding of hazardous materials;
(3) The preparation, execution, and use of shipping documents related to hazardous materials and requirements related to the number, contents, and placement of those documents;
(4) The written notification, recording, and reporting of the unintentional release in transportation of hazardous material; or
(5) The design, manufacture, fabrication, marking, maintenance, recondition, repair, or testing of a packaging or container represented, marked, certified, or sold as qualified for use in transporting hazardous material.
Federal hazardous materials transportation law provides at 49 U.S.C. 5125(b)(2) that, if DOT issues a regulation concerning any of these subjects, DOT must determine and publish in the
This rule would address subject areas (1), (2), (3), and (5) above and would preempt any state, local, or Indian tribe requirements concerning these subjects unless the non-Federal requirements are “substantively the same” as the Federal requirements. The effective date of Federal preemption is April 20, 2016.
This final rule has been analyzed in accordance with the principles and criteria contained in Executive Order 13175 (“Consultation and Coordination with Indian Tribal Governments”). Because this final rule does not have tribal implications and does not impose substantial direct compliance costs, the funding and consultation requirements of Executive Order 13175 do not apply.
The Regulatory Flexibility Act (5 U.S.C. 601
PHMSA expects the impacts of this rule will be limited for many small entities due to their compliance with other existing Federal regulations. In this rulemaking, PHMSA also explicitly acknowledges that many regulated entities are holders of SPs or are part of industry associations with voluntary codes of safe practice, and that these may be sufficient for compliance with the final rule as long as all of the relevant safety areas are addressed and documented. For regulated entities in these categories, the rulemaking requires little or no change to existing practices or behavior and incremental compliance costs will thus be close to zero. Therefore, the benefit and cost figures discussed below should be viewed as upper bounds, both of which will be reduced by the extent of current practice.
PHMSA estimates that there are 50 potentially affected small entities. The annualized documentation cost for developing and updating the risk assessment and the operating procedures is estimated to be $375 per small entity. The annualized cost of additional training for affected employees is estimated to be approximately $5.50 per employee. Further, PHMSA estimates that approximately 50% of small businesses are already implementing procedures that would be compliant with this rulemaking. Based upon the above estimates and assumptions, PHMSA certifies that this rulemaking does not have a significant economic impact on a substantial number of small entities. Further information on the estimates and assumptions used to evaluate the potential impacts to small entities is available in the Regulatory Impact Assessment that has been placed in the public docket for this rulemaking.
PHMSA currently has an approved information collection under OMB Control No. 2137-0051, entitled “Special Permits and Approvals,” expiring on May 31, 2018. Section 1320.8(d), Title 5, Code of Federal Regulations, requires PHMSA to provide interested members of the public and affected agencies an opportunity to comment on information collection and recordkeeping requests. This rulemaking adds new exceptions to the HMR while eliminating the need for persons to apply for a SP, resulting in a decrease in burden. PHMSA estimates the reduction in information collection burden as follows:
There are 832 grantees associated with the 96 SPs being adopted in this rulemaking. Over 10 years, a SP would on average be renewed twice, resulting in 1,664 renewals (832 × 2). The average number of applications per year would be approximately 166 (1,664/10). The annual estimated cost savings would total $14,027 (166 number of renewals per year × $39.50/hr. preparation cost + 166 renewals per year × $45.00/hr compliance cost).
Please direct your requests for a copy of this final information collection to Steven Andrews or T. Glenn Foster, Office of Hazardous Materials Standards (PHH-12), Pipeline and Hazardous Materials Safety Administration, 1200 New Jersey Avenue SE., 2nd Floor, Washington, DC, 20590-0001.
A regulatory identifier number (RIN) is assigned to each regulatory action listed in the Unified Agenda of Federal Regulations. The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. The RIN contained in the heading of this document can be used to cross-reference this action with the Unified Agenda.
This rulemaking does not impose unfunded mandates under the Unfunded Mandates Reform Act of 1995. PHMSA has concluded that the rule will not impose annual expenditures of $141.3 million on State, local, or tribal governments or the private sector, and thus does not require an Unfunded Mandates Act analysis.
Under E.O. 13609, agencies must consider whether the impacts associated with significant variations between domestic and international regulatory approaches are unnecessary or may impair the ability of American business to export and compete internationally. In meeting shared challenges involving health, safety, labor, security, environmental, and other issues, international regulatory cooperation can identify approaches that are at least as protective as those that are or would be adopted in the absence of such cooperation. International regulatory cooperation can also reduce, eliminate, or prevent unnecessary differences in regulatory requirements.
Similarly, the Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal agencies from establishing any standards or engaging in related activities that create unnecessary obstacles to the foreign commerce of the United States. For purposes of these requirements, Federal agencies may participate in the establishment of international standards, so long as the standards have a legitimate domestic objective, such as providing for safety, and do not operate to exclude imports that meet this objective. The statute also requires consideration of international standards and, where appropriate, that they be the basis for U.S. standards.
PHMSA participates in the establishment of international standards in order to protect the safety of the American public, and we have assessed the effects of the rule to ensure that it does not cause unnecessary obstacles to foreign trade. Accordingly, this rulemaking is consistent with E.O. 13609 and PHMSA's obligations under the Trade Agreement Act, as amended.
PHMSA is amending the HMR by adopting provisions contained in certain widely-used or long-standing SPs that have an established safety record. The revisions are intended to provide wider access to the regulatory flexibility offered in SPs and eliminate the need for numerous renewal requests, thus reducing paperwork burdens and facilitating commerce while maintaining an appropriate level of safety.
The National Environmental Policy Act (NEPA), 42 U.S.C. 4321-4375, requires that federal agencies analyze
Anyone is able to search the electronic form of any written communications and comments received into any of our dockets by the name of the individual submitting the document (or signing the document, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the
The National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) directs federal agencies to use voluntary consensus standards in their regulatory activities unless doing so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (
Administrative practice and procedure, Hazardous materials transportation, Penalties, Reporting and recordkeeping requirements.
Exports, Hazardous materials transportation, Hazardous waste, Imports, Reporting and recordkeeping requirements.
Education, Hazardous materials transportation, Hazardous waste, Labeling, Packaging and containers, Reporting and recordkeeping requirements.
Hazardous materials transportation, Packaging and containers, Radioactive materials, Reporting and recordkeeping requirements, Uranium.
Hazardous materials transportation, Incorporation, Radioactive materials, and Railroad safety.
Hazardous materials transportation, Maritime carriers, Radioactive materials, Reporting and recordkeeping requirements.
Hazardous materials transportation, Motor carriers, Radioactive materials, Reporting and recordkeeping requirements.
Hazardous materials transportation, Motor vehicle safety, Packaging and containers, Reporting and recordkeeping requirements.
Hazardous materials transportation, Motor carriers, Motor vehicle safety, Packaging and containers, Railroad safety, Reporting and recordkeeping requirements.
In consideration of the foregoing, 49 CFR Chapter I is amended as follows:
49 U.S.C. 5101-5128, 44701; Public Law 101-410 section 4 (28 U.S.C. 2461 note); Public Law 104-121 sections 212-213; Public Law 104-134 section 31001; Public Law 112-141 section 33006, 33010; 49 CFR 1.81 and 1.97.
49 U.S.C. 5101-5128, 44701; 101, section 4 (28 U.S.C. 2461 note); Public Law 104-121, sections 212-213; Public Law 104-134, section 31001; 49 CFR 1.81 and 1.97.
49 U.S.C. 5101-5128; 44701; 49 CFR 1.81, 1.96 and 1.97.
The additions are to read as follows:
(c) * * *
(1) * * *
380 For transportation by private carrier in a motor carrier only, this material is not subject to the segregation requirements of § 177.848(d) of this subchapter under the following conditions:
a. The material is packaged in a DOT Specification 4BW240 cylinder, or in a DOT-51 portable tank.
b. The material may only be loaded with Class 3, Class 8, and Division 4.1 materials in Packing Group II or III.
c. The motor carrier must maintain a satisfactory safety rating as prescribed in 49 CFR part 385.
381 For railroad flagging kits, see § 173.184 (c) of this subchapter.
382 Packages containing toy plastic or paper caps for toy pistols described as “UN0349, Articles, explosive, n.o.s. (Toy caps), 1.4S” or “NA0337, Toy caps, 1.4S” are not subject to the subpart E (labeling) requirements of this part when offered for transportation by motor vehicle, rail freight, cargo vessel, and cargo aircraft and, notwithstanding the packing method assigned in § 173.62 of this subchapter, in conformance with the following conditions:
a. The toy plastic or paper caps must be in the form of sheets, strips, rolls, or individual caps;
b. The caps must not contain more than an average of twenty-five hundredths of a grain of explosive composition per cap;
c. The caps must be packed inside packagings constructed of cardboard not less than 0.013-inch in thickness, metal not less than 0.008-inch in thickness, non-combustible plastic not less than 0.015-inch in thickness, or a composite blister package consisting of cardboard not less than 0.013-inch in thickness and non-combustible plastic not less than 0.005-inch in thickness that completely encloses the caps;
d. The minimum dimensions of each side and each end of the cardboard packaging must be 1/8th inch in height or more;
e. The number of caps inside each packaging must be limited so that not more than 10 grains of explosives composition may be packed into one cubic inch of space, and not more than 17.5 grains of the explosive composition of toy caps may be packed in any inner packaging;
f. Inner packagings must be packed in outer packagings meeting PG II performance criteria;
g. Toy caps may be packed with non-explosive or non-flammable articles provided the outer packagings are marked as prescribed in this paragraph;
h. Toy paper caps of any kind must not be packed in the same packaging with fireworks;
i. The outside of each package must be plainly marked “ARTICLES, EXPLOSIVES, N.O.S. (TOY CAPS)—HANDLE CAREFULLY” OR “TOY CAPS—HANDLE CAREFULLY”; and
j. Explosives shipped in conformance with this paragraph must have been examined in accordance with § 173.56 of this subchapter and approved by the Associate Administrator.
383 For transportation by motor vehicle, substances meeting the conditions for high viscosity flammable liquids as prescribed in § 173.121(b)(1)(i), (b)(1)(ii), and (b)(1)(iv) of this subchapter, may be reassigned to Packing Group III under the following conditions:
a. Packaging must be UN standard metal drums attached with heavy duty steel strapping to a pallet; and
b. The capacity of each drum must not exceed 220 L (58 gallons).
384 For green graphite electrodes and shapes that are large single component solid objects not subject to shifting, transport in open rail flat cars, open bed motor vehicles, and intermodal containers is also authorized. The objects must be secured to the flat car, motor vehicle, intermodal container, or unitized by steel banding to wooden runners or pallets and the units secured to the flat car, motor vehicle, or freight container to prevent shifting and movement, including relative motion between the objects, under conditions normally incident to transportation. Stacking is permitted two or more levels high to achieve maximum allowable utilization of the designated vehicle, rail car weight, or intermodal freight container weight or vessel hold volume.
385 Notwithstanding the provisions of § 177.834(l) of this subchapter, cargo heaters may be used when weather conditions are such that the freezing of a wetted explosive material is likely. Shipments must be made by private, leased or contract carrier vehicles under exclusive use of the offeror. Cargo heaters must be reverse refrigeration (heat pump) units. Shipments made in accordance with this Special provision are excepted from the requirements of § 173.60(b)(4) of this subchapter.
386 When transported by private motor carrier only, the following corrosive liquids may be packaged in polyethylene bottles with a capacity no greater than 3.785L (one gallon), further packed inside an open-top, heavy wall, high density polyethylene box (
a. No more than four bottles, securely closed with threaded caps, may be packed in each box.
b. Each empty bottle must have a minimum weight of not less than 140 grams and a minimum wall thickness of not less than 0.020 inch (0.508 mm).
c. The completed package must meet the Packing Group II performance level, as applicable for combination packagings with a plastic box outer packaging, in accordance with subpart M of part 178 of this subchapter.
(i) Tests must be performed on each type and size of bottle, for each manufacturing location. Samples taken at random must withstand the prescribed tests without breakage or leakage.
(ii) One bottle for every two hours of production, or for every 2500 bottles produced, must be tested by dropping a bottle filled to 98% capacity with water from a height of 1.2 meters (3.9 feet) onto solid concrete directly on the closure.
(iii) A copy of the test results must be kept on file at each facility where packagings are offered for transportation, and must be made available to a representative of the Department upon request.
(iv) The name or symbol of the bottle producer, and the month and year of manufacture, must be marked by
(v) The box must be constructed from high-density polyethylene in the density range 0.950-0.962, and be capable of holding liquid when in the upright position.
(3) * * *
B130 When transported by motor vehicle, used diatomaceous earth filter material is not subject to any other requirements of this subchapter except for the shipping paper requirements of subpart C of part 172 of this subchapter; emergency response information as required by § 172.602(a)(2) through (a)(7) of this subchapter; and the marking requirements of § 172.302 of this subchapter, if the following requirements are met:
a. Packagings are non-DOT specification sift-proof motor vehicles or sift-proof roll-on/roll-off bulk bins, which are covered by a tarpaulin or other equivalent means.
b. The temperature of the material at the time it is offered for transport and during transportation may not exceed 55 °C (130 °F).
c. The time between offering the material for transportation at the point of origin, and unloading the material at the destination does not exceed 48 hours.
d. In addition to the training requirements prescribed in §§ 172.700 through 172.704, each driver must be trained regarding the properties and hazards of diatomaceous earth filter material, precautions to ensure safe transport of the material, and actions to be taken in the event of an emergency during transportation, or a substantial delay in transit.
B131 When transported by highway, rail, or cargo vessel, waste Paint and Paint related material (UN1263; PG II and PG III), when in plastic or metal inner packagings of not more than 26.5 L (7 gallons), are excepted from the marking requirements in § 172.301(a) and (c) and the labeling requirements in § 172.400(a), when further packed in the following specification and non-specification bulk outer packagings and under the following conditions:
a. Primary receptacles must conform to the general packaging requirements of subpart B of part 173 of this subchapter and may not leak. If they do leak, they must be overpacked in packagings conforming to the specification requirements of part 178 of this subchapter or in salvage packagings conforming to the requirements in § 173.12 of this subchapter.
b. Primary receptacles must be further packed in non-specification bulk outer packagings such as cubic yard boxes, plastic rigid-wall bulk containers, dump trailers, and roll-off containers. Bulk outer packagings must be liquid tight through design or by the use of lining materials.
c. Primary receptacles may also be further packed in specification bulk outer packagings. Authorized specification bulk outer packagings are UN11G fiberboard intermediate bulk containers (IBC) and UN13H4 woven plastic, coated and with liner flexible intermediate bulk containers (FIBCs) meeting the Packing Group II performance level and lined with a plastic liner of at least 6 mil thickness.
d. All inner packagings placed inside bulk outer packagings must be blocked and braced to prevent movement during transportation that could cause the container to open or fall over. Specification IBCs and FIBCs are to be secured to a pallet.
B132 Except for transportation by aircraft, UN2813, Water reactive solid, n.o.s. (contains magnesium, magnesium nitrides) in PG II or III may be packaged in sift-proof bulk packagings that prevent liquid from reaching the hazardous material with sufficient venting to preclude dangerous accumulation of flammable, corrosive or toxic gaseous emissions such as methane, hydrogen and ammonia.
B133 Hydrochloric acid concentration not exceeding 38%, in Packing Group II, is authorized to be packaged in UN31H1 or UN31HH1 intermediate bulk containers when loaded in accordance with the requirements of § 173.35(h) of this subchapter.
(5) * * *
N95 UN1075, Liquefied petroleum gas and UN1978, Propane authorized for transport in DOT 4BA240 cylinders is not subject to the UN identification number and proper shipping name marking or the label requirements of this part subject to the following conditions:
a. The cylinder must be transported in a closed motor vehicle displaying FLAMMABLE GAS placards in accordance with subpart F of part 172 of this subchapter.
b. Shipping papers at all times must reflect a correct current accounting of all cylinders both full and expended.
c. The cylinders are collected and transported by a private or a contract carrier for reconditioning, reuse or disposal.
(c)(1) The total quantity of the material covered by one description must appear before or after, or both before and after, the description required and authorized by this subpart. The type of packaging and destination marks may be entered in any appropriate manner before or after the basic description. Abbreviations may be used to express units of measurement and types of packagings.
(2) Hazardous materials and hazardous substances transported by highway considered “household wastes” as defined in 40 CFR 261.4, and not subject to the Environmental Protection Agency's hazardous waste regulations in 40 CFR parts 262 and 263, are excepted from the requirements of this paragraph.
(a) * * *
(3) Except for Class 1 and 7, and Division 6.1 and 6.2 materials, for highway transportation by private motor carrier, the limited quantity marking is not required to be displayed on a package containing materials assigned to Packing Group II and III prepared in accordance with the limited quantity requirements in subpart B of part 173 of this subchapter provided:
(i) Inner packagings for liquid hazardous materials do not exceed 1.0 L (0.3 gallons) net capacity each;
(ii) Inner packagings for solid hazardous materials do not exceed 1.0 kg (2.2 pounds) net capacity each;
(iii) No more than 2 L (0.6 gallons) or 2 kg (4.4 pounds) aggregate net quantity of any one hazardous material is transported per vehicle;
(iv) The total gross weight of all the limited quantity packages per vehicle does not exceed 60 kg (132 pounds); and
(v) Each package is marked with the name and address of the offeror, a 24-hour emergency response telephone number and the statement “Contains Chemicals” in letters at least 25 mm (one-inch) high on a contrasting background.
(a) * * *
(1) A Dewar flask meeting the requirements in § 173.320 of this subchapter or a cylinder containing a Division 2.1, 2.2, or 2.3 material that is durably and legibly marked in accordance with CGA C-7, Appendix A (IBR; see § 171.7 of this subchapter). Notwithstanding this exception, overpacks must be labeled (see § 173.25 of this subchapter).
(8) Packages containing toy plastic or paper caps for toy pistols described as “UN0349, Articles, explosive, n.o.s. (Toy caps), 1.4S” or “NA0337, Toy caps, 1.4S” when offered in conformance with the conditions of § 172.102(c)(1), Special provision 382.
49 U.S.C. 5101-5128, 44701; 49 CFR 1.81, 1.96 and 1.97.
(h)
(1) The waste materials must be in their original undamaged packaging and marked with the “Consumer Commodity ORM-D” marking in conformance with § 172.316 or an authorized limited quantity marking in conformance with § 172.315 of this subchapter, as appropriate. The word “waste” in association with the proper shipping name is not required on individual packages;
(2) Packages must be securely affixed to a pallet and shrink-wrapped or stretch-wrapped;
(3) The outside of the shrink-wrap or stretch-wrap must be marked on opposite sides with either “Waste, Consumer Commodity, ORM-D” or “Waste, Limited Quantity.”
(f) Smokeless powder residue when transported by motor vehicle or container/trailer in container-on-flatcar (COFC) or trailer-on-flatcar (TOFC) service is excepted from subpart C (shipping papers) and the subpart F (placarding) requirements of part 172 of this subchapter when transported in conformance with the following:
(1) The outer packaging must be:
(i) A UN specification 1G fiber drum or 1A2 steel drum; or
(ii) A UN specification 4G fiberboard box or non-specification fiberboard box containing plastic receptacle inner packagings with not more than 2.5 grams of smokeless powders in each inner packaging;
(2) The amount of smokeless powder per outer packaging does not exceed 5 grams;
(3) The smokeless powder is approved in accordance with § 173.56 as a Class 1 explosive material;
(4) The empty packages must be transported in a closed transport vehicle;
(5) The empty packages must be loaded by the shipper and unloaded by the shipper or consignee; and
(6) The hazardous materials description to be used for the material is “RESIDUE: Last Contained Powder, smokeless, Hazard Class N/A, Identification Number N/A, Packing Group N/A”.
(d) * * *
(1) * * *
(ii) Each cylinder with a valve must be equipped with a protective metal or plastic cap, other valve protection device, or an overpack which is sufficient to protect the valve from breakage or leakage resulting from a drop of 2.0 m (7 ft) onto a non-yielding surface, such as concrete or steel. Impact must be at an orientation most likely to cause damage.
(c) * * *
(5) * * *
(h) Diesel fuel (NA1993) and Gasoline (UN1203) may be transported one way, by motor vehicle, directly from the loading location to an equipment repair facility, in a non-DOT specification, non-bulk packaging, known as a gasoline dispenser, that has been removed from service at a fueling station under the following conditions:
(1) Prior to loading, each dispenser must be prepared for transportation by capping or plugging all product inlet and outlet piping, so that no fluid may be released during transportation;
(2) No dispenser may contain more than 2 gallons of gasoline; and
(3) Each dispenser must be blocked, braced or strapped to the motor vehicle in accordance with the requirements of this subchapter to prevent shifting during transportation.
(e) For transportation by motor vehicle only, Lithium (UN1415), Potassium (UN2257), and Sodium (UN1428) with a net quantity of material per inner packaging not exceeding 25 grams, are excepted from the labeling requirements of part 172, subpart E and the placarding requirements of part 172, subpart F of this subchapter, when offered for transportation in the following packagings under the following conditions:
(1)
(ii) The plastic bottle is placed inside a plastic bag that is securely closed to prevent leaks or punctures;
(iii) The bagged bottle is then be placed inside a metal can with all void spaces filled with an oil-absorbing material and sealed tight; and
(iv) The can is then placed into a heat sealed barrier bag.
(2)
(3)
(ii) Records must be retained for a minimum of 5 years and be accessible at or through the shipper's principal place of business and be made available, upon request, to the Associate Administrator or designated official.
(c)
(1)
(i) Primary containers must conform to the quantity limits for inner packagings prescribed in §§ 173.150(b), 173.152(b), 173.154(b), 173.155(b) and 173.306(a) and (b), as appropriate;
(ii) Primary containers must be packed into trays that secure individual containers from shifting inside the completed combination package during transportation;
(iii) Tray(s) must be placed into a fiberboard box, and the fiberboard box must be banded and secured to a pallet by metal, fabric, or plastic straps to form a single palletized unit; and
(iv) The maximum net quantity of hazardous material permitted in one palletized unit is 550 kg (1,210 lbs.).
(2)
(i) As a consumer commodity as prescribed in § 172.316 of this subchapter; or
(ii) As a limited quantity as prescribed in § 172.315 of this subchapter.
(d)
(i) Nitric acid solutions of concentrations up to 40%, nitric acid by weight when offered for transportation or transported by rail, highway, or cargo vessel, may be packaged in a UN1H1 non-removable head plastic drum, tested and marked at the PG II performance level for liquids with a specific gravity of at least 1.8, and a hydrostatic test pressure appropriate for the hazardous material.
(1) Each drum may only be used one time and must be destroyed after emptying.
(2) Each drum must be permanently and legibly marked “Single Trip Only” and “Must be Destroyed When Empty.”
(j) Nitric acid solutions, other than red fuming, with more than 70% nitric acid and Nitric acid solutions, other than red fuming, with not more than 70% nitric acid, when offered for transportation or transported by rail, highway, cargo vessel, or cargo-only aircraft may be packaged in a UN 4G outer fiberboard box meeting the Packing Group I or II performance level, as appropriate, subject to the following conditions:
(1) Inner packaging: A plastic (“fluorinated ethylene-propylene” [FEP] polymers, “perfluoroalkoxy” [PFA] polymers or similar materials) bottle with lined screw closure meeting the compatibility requirements of § 173.24(e) of this section and having a net capacity not greater than 2.5 liters (0.66 gallon) each. For cargo-only aircraft, the inner packaging for PG I material may not exceed 1 L (0.3 gal) capacity. The wall thickness of the bottle must not be less than 0.020”.
(2) Intermediate packaging: (i) A tightly closed rigid-foam plastic receptacle each containing one inner packaging; or
(ii) A plastic bag containing one inner packaging and placed inside a heavy-wall polypropylene bag lined with polypropylene absorbent material of sufficient capacity to completely absorb the liquid contents of each inner package. Both bags must be tightly sealed with either plastic tape, a wire tie or a cable tie.
The revisions and additions read as follows:
(e) When transported by highway or rail, electric storage batteries containing electrolyte, acid, or alkaline corrosive battery fluid and electric storage batteries packed with electrolyte, acid,
(h)(1) Dry batteries or battery charger devices may be packaged in 4G fiberboard boxes with inner receptacles containing battery fluid. Completed packages must conform to the Packing Group III performance level. Not more than 12 inner receptacles may be packed in one outer box. The maximum authorized gross weight for the completed package is 34 kg (75 pounds).
(2) Battery fluid, acid (UN2796) may be packaged in a UN6HG2 composite packaging further packed in a UN4G fiberboard box with a dry storage battery. The UN6HG2 composite packaging may not exceed 8.0 liters in capacity. Completed packages must conform to the Packing Group III performance level. The maximum authorized gross weight for the completed package is 37.0 kg (82.0 lbs).
(j)
(1) Each battery must be sealed in a heat sealed bag, packaged to prevent short circuits, and placed in the center of an outer packaging surrounded with a foam-in-place packaging material;
(2) The completed package must meet the Packing Group II performance level;
(3) The gross weight of the package may not exceed 15.2 kg (33.4 pounds); and
(4) The cumulative amount of potassium hydroxide solution in all of the batteries in each package may not exceed 4 ounces (0.11 kg).
(g)
(1)
(ii)
(iii)
(2)
(3) Marking. (i) If the unapproved chemical oxygen generator is inside a piece of equipment which is sealed or difficult to determine if an oxygen generator is present, for example—a closed sealed passenger service unit, then a visible and durable warning sign must be attached to the piece of equipment stating: “THIS ITEM CONTAINS A CHEMICAL OXYGEN GENERATOR”; and
(ii) Each outer package, and overpack if used, must be visibly and durably marked with the following statement: “THIS PACKAGE IS NOT AUTHORIZED FOR TRANSPORTATION ABOARD AIRCRAFT”.
(a)
(2) DOT 3AL cylinders constructed of aluminum alloy 6061-T6 with a minimum marked service pressure of 1,800 psig and a maximum water capacity of 49 liters (13 gal) may be used for the transportation of inorganic pyrophoric liquids (UN3194). Any preheating or heating of the DOT 3AL cylinder must be limited to a maximum temperature of 79.4 °C (175 °F).
(3) Cylinders authorized under paragraphs (a)(1) and (a)(2) of this section equipped with valves must be:
(i) Equipped with steel valve protection caps or collars; or
(ii) Overpacked in a wooden box (4C1, 4C2, 4D or 4F); fiberboard box (4G), or plastic box (4H1 or 4H2). Cylinders must be secured to prevent shifting in the box and, when offered for transportation or transported, must be so loaded that pressure relief devices remain in the vapor space of the cylinder. (See § 177.838(h) of this subchapter.)
(d) Combination packagings consisting of the following:
(1)
(i) Have minimum wall thickness of 1.9 mm;
(ii) Have 4 NPT or VCR openings, each with a diameter of 6.3 mm;
(iii) Be fabricated from stainless steel; and
(iv) On the upper head, be fitted with a center opening with a maximum diameter of 68.3 mm and the opening sealed with a threaded closure fabricated from 316 stainless steel. No more than two (2) inner drums may be placed inside the outer drum.
(2)
(c) For transportation by highway, railroad flagging kits are not subject any other requirements of this subchapter when all of the following conditions are met:
(1) The flagging kits may only contain fusees and railroad torpedoes as follows:
(i) Fusee (rail or highway) (NA1325, Division 4.1, PG II).
(ii) Articles, pyrotechnic (UN0431, Division 1.4G, PG II).
(iii) Signal devices, hand (UN0373, Division 1.4S, PG II).
(iv) Signal devices, hand (UN0191, Division 1.4G, PG II).
(v) Signals, railway track, explosive (UN0193, Division 1.4S, PG II).
(2) Fusees and railroad torpedoes must be transported in compartmented metal containers. Each compartment must have a cover with a latching device. Compartments for railroad torpedoes must be equipped with a spring-loaded positive locking device. Each compartment may only contain one type of device.
(3) Each flagging kit may contain a maximum of 36 fusees and 36 railroad torpedoes. No more than six (6) flagging kits may be transported at one time on any motor vehicle.
(4) Flagging kits may only be transported on railroad motor vehicles including privately owned motor vehicles under the direct control of on-duty railroad employees.
(5) The fusees and railroad torpedoes must be kept in the closed flagging kits whenever they are not being used on the railroad right-of-way, while the motor vehicle is being driven, or whenever the motor vehicle is located on other than railroad property.
(6) When left in unattended motor vehicles on non-railroad property, a flagging kit must be locked inside the motor vehicle, or stored in a locked compartment on the motor vehicle.
(a) * * *
(3)(i) A 115 L (30 gallon) UN1A2 steel drum certified to the PG I performance level for solids and the PG I or PG II performance level for liquids and dual marked, at a minimum, as a UN1A2/X400/S (for solid) and UN1A2 X(or Y)/1.4/150 (for liquids) subject to the following conditions:
(ii) Enough water must be present in each drum to ensure that the phosphorous is covered by water at all times during transportation, in any orientation of the drum;
(iii) Drums must be held and observed for a minimum of 24-hours before transportation. Any leaking or otherwise unsuitable drums must be replaced prior to transportation;
(iv) Packages must be destroyed and may not be reused;
(v) The net mass of the material and water, in kilograms, must not exceed the mass that would be permitted by calculating the volume of the packaging in liters multiplied by the specific gravity indicated on the package certification;
(vi) Transportation is by private or contract motor carrier only; and
(vii) Transportation is authorized from the offeror's location to a facility where it must be unloaded by the consignee.
(b) Bromoacetone, methyl bromide, chloropicrin and methyl bromide mixtures, chloropicrin and methyl chloride mixtures, and chloropicrin mixtures charged with non-flammable, non-liquefied compressed gas must be packed in Specification 3A, 3AA, 3B, 3C, 3E, 4A, 4B, 4BA, 4BW, or 4C cylinders having not over 113 kg (250 pounds) water capacity (nominal) except:
(1) DOT Specification 4BW cylinders containing chloropicrin and methyl bromide mixtures may not exceed 453 kg (1000 pounds); and
(2) The capacity limit of this paragraph does not apply to shipments of methyl bromide.
(f) Liquid hazardous materials in Division 6.1, PG I, Hazard Zone A, are excepted from the segregation requirements of §§ 174.81, 176.83, and 177.848(d) of this subchapter when packaged as follows:
(1)
(i) A glass, plastic or metal receptacle, with a capacity of not more than 1 liter (1 quart), securely cushioned with a non-reactive, absorbent material. The receptacle must have a closure that is held in place by any means capable of preventing back-off or loosening of the closure by impact or vibration during transportation.
(ii) The receptacle must be packed within a leak-tight packaging of metal, with a capacity of not less than 4 liters (1 gallon); and
(iii) The metal packaging must be securely cushioned with a nonreactive absorbent material and packed in a leak-tight UN 1A2 steel drum or UN 1H2 plastic drum, with a capacity of not less than 19 liters (5 gallons).
(2)
(3) Both the inner packaging system and the outer packaging must conform to the performance test requirements of subpart M of part 178 of this subchapter at the PG I performance level. The inner packaging system must meet these tests without benefit of the outer packaging.
(f)
(2) A pressure relief device, when installed, must be in communication with the vapor space of a cylinder containing a Division 2.1 (flammable gas) material. This requirement does not apply to DOT Specification 39 cylinders of 1.2L (75 cubic inches) or less in volume filled with a Liquefied petroleum gas, Methyl acetylene and Propadiene mixtures, stabilized, Propylene, Propane or Butane.
(7) A pressure relief device is not required on a DOT Specification 3E cylinder measuring up to 50mm (2 inches) in diameter by 305mm (12
(i) Carbon Dioxide 0.24L (8 oz.)
(ii) Ethane 0.12L (4 oz.)
(iii) Ethylene 0.12L (4 oz.)
(iv) Hydrogen Chloride, anhydrous 0.24L (8 oz.)
(v) Monochlorotrifluoromethane 0.35L (12 oz.)
(vi) Nitrous oxide, 0.24L (8 oz.)
(vii) Vinyl fluoride, stabilized 0.24L (8 oz.)
(h) * * *
(2) * * *
(i) By equipping the cylinder with securely attached metal or plastic caps of sufficient strength to protect valves from damage during transportation;
(f) * * *
(1) Only DOT specification 3A, 3AA, 3AL, 3E, 3HT, 39 cylinders, 4E (filled to less than 200 psig at 21 °C (70 °F), and UN pressure receptacles ISO 9809-1, ISO 9809-2, ISO 9809-3 and ISO 7866 cylinders are authorized.
The revisions and additions are to read as follows:
(a) * * *
(1) DOT 3, 3A, 3AA, 3AL, 3B, 3E, 4B, 4BA, 4BW, and 4E cylinders.
(5) Aluminum cylinders manufactured in conformance with specifications DOT 39, 3AL and 4E are authorized for oxygen only under the conditions specified in § 173.302(b).
(6) DOT 4E cylinders- DOT 4E cylinders with a maximum capacity of 43L (11 gal) must have a minimum rating of 240 psig and be filled to no more than 200 psig at 21 °C (70 °F).
(c)
(1) The cylinder must conform to the requirements of paragraph (b)(2) and (b)(3) of this section;
(2) The cylinder was manufactured after December 31, 1945;
(3) DOT specification 3A and 3AX cylinders are limited to those having an intermediate manganese composition.
(i) Cylinders manufactured with intermediate manganese steel must have been normalized, not quench and tempered. Quench and temper treatment of intermediate steel is not authorized.
(ii) Cylinders manufactured with chrome moly steel must have been quenched and tempered, not normalized. Use of normalized chrome moly steel cylinders is not permitted.
(4) Cylinders must be equipped with pressure relief devices as follows:
(i) Cylinders less than 1.7 m (65 inches) in length must be equipped with fusible metal backed frangible disc devices;
(ii) Cylinders 1.7 m (65 inches) or greater in length and 24.5 cm (9.63 inches) in diameter or larger must be equipped with fusible metal backed frangible disc devices or frangible disc devices. Cylinders with a diameter of 0.56 m (22 inches) or larger must be equipped with frangible disc devices.
(d)
(a) * * *
(2) * * *
(a) Limited quantities of compressed gases for which exceptions are permitted as noted by reference to this section in § 172.101 of this subchapter are excepted from labeling, except when offered for transportation or transported by air, and, unless required as a condition of the exception, specification packaging requirements of this subchapter when packaged in accordance with the following paragraphs. For transportation by aircraft, the package must conform to the applicable requirements of § 173.27 and only packages of hazardous materials authorized aboard passenger-carrying aircraft may be transported as a limited quantity. In addition, shipments are not subject to subpart F (Placarding) of part 172 of this subchapter, to part 174 of this subchapter except § 174.24, and to part 177 of this subchapter except § 177.817. Except as otherwise provided in this section, each package may not exceed 30 kg (66 lbs.) gross weight.
(1) When in containers of not more than 4 fluid ounces capacity (7.22 cubic inches or less) except cigarette lighters. Additional exceptions for certain compressed gases in limited quantities and the ORM-D hazard class are provided in paragraph (i) of this section.
(2) When in refillable metal containers filled with a material that is not classed as a hazardous material to not more than 90% of capacity at 21.1 °C (70 °F) and then charged with nonflammable, nonliquefied gas. Each container must be tested to three times the pressure at 21.1 °C (70 °F) and, when refilled, be retested to three times the pressure of the gas at 21.1 °C (70 °F). Also, one of the following conditions must be met:
(i) The container is not over 0.95 L (1 quart) capacity and charged to not more than 170 psig (1172.1 kPa) at 21.1 °C (70 °F), and must be packed in a strong outer packaging; or
(ii) The container is not over 114 L (30 gallons) capacity and charged to not more than 75 psig (517.1 kPa) at 21.1 °C (70 °F).
(3) When in a metal aerosol container (see § 171.8 of this subchapter for the definition of
(i)
(ii)
(iii)
(iv)
(v)
(A)
(
(
(
(B)
(
(
(C)
(
(
(
(
(D)
(
(vi) Each outer packaging must be marked “INSIDE CONTAINERS COMPLY WITH PRESCRIBED REGULATIONS.”
(4) Gas samples must be transported under the following conditions:
(i) A gas sample may only be transported as non-pressurized gas when its pressure corresponding to ambient atmospheric pressure in the container is not more than 105 kPa absolute (15.22 psia).
(ii) Non-pressurized gases, toxic (or toxic and flammable) must be packed in hermetically sealed glass or metal inner packagings of not more than one L (0.3 gallons) overpacked in a strong outer packaging.
(iii) Non-pressurized gases, flammable must be packed in hermetically sealed glass or metal inner packagings of not more than 5 L (1.3 gallons) and overpacked in a strong outer packaging.
(5) For limited quantities of Division 2.2 gases with no subsidiary risk, when in a non-DOT specification or a specification DOT 2S (§ 178.33b of this subchapter) plastic aerosol container (see § 171.8 of this subchapter for the definition of aerosol) provided all of the following conditions are met. Additional exceptions for aerosols conforming to this paragraph (a)(5) are provided in paragraph (i) of this section.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(A) Pressure and leak testing before filling. Each empty container must be subjected to a pressure equal to or in excess of the maximum expected in the filled containers at 55 °C (131 °F) or 50 °C (122 °F) if the liquid phase does not exceed 95% of the capacity of the container at 50 °C (122 °F). This must be at least two-thirds of the design pressure of the container. If any container shows evidence of leakage at a rate equal to or greater than 3.3 × 10
(B) Testing after filling. Prior to filling, the filler must ensure that the crimping equipment is set appropriately and the specified propellant is used before filling the container. Once filled, each container must be weighed and leak tested. The leak detection equipment must be sufficiently sensitive to detect at least a leak rate of 2.0 × 10
(vii) Each outer packaging must be marked “INSIDE CONTAINERS COMPLY WITH PRESCRIBED REGULATIONS.”
(b) Exceptions for foodstuffs, soap, biologicals, electronic tubes, and audible fire alarm systems. Limited quantities of compressed gases (except Division 2.3 gases) for which exceptions are provided as indicated by reference to this section in § 172.101 of this subchapter, when in conformance with one of the following paragraphs, are excepted from labeling, except when offered for transportation or transported by aircraft, and the specification packaging requirements of this subchapter. For transportation by aircraft, the package must conform to the applicable requirements of § 173.27 and only packages of hazardous materials authorized aboard passenger-carrying aircraft may be transported as a limited quantity. In addition, shipments are not subject to subpart F (Placarding) of part 172 of this subchapter, to part 174 of this subchapter, except § 174.24, and to part 177 of this subchapter, except § 177.817. Additional exceptions for certain compressed gases in limited quantities and the ORM-D hazard class are provided in paragraph (i) of this section.
(1) Foodstuffs or soaps with soluble or emulsified compressed gas are authorized in non-refillable metal or plastic containers not to exceed 1 L (61.0 cubic inches) capacity provided the pressure in each container does not exceed 140 psig at 54.4 °C (130 °F) unless authorized by variation of a container type. For pressures ranging from greater than 140 psig to 160 psig, a variation DOT 2P1 or DOT 2Q2 (§§ 178.33(c) and (d) of this subchapter, respectively) container must be used. However, the pressure of the contents in the container may not be greater than 150 psig at 23.9 °C (75 °F). Plastic containers may only contain Division 2.2 non-flammable soluble or emulsified compressed gas. Metal or plastic containers must be capable of withstanding, without bursting, a pressure of at least one and one-half times the equilibrium pressure of the contents at 54.4 °C (130 °F).
(i) Containers must be packed in strong outer packagings.
(ii) Liquid content of the material and the gas must not completely fill the container at 55 °C (131 °F).
(iii) Each outer packaging must be marked “INSIDE CONTAINERS COMPLY WITH PRESCRIBED REGULATIONS.”
(2) Cream in refillable metal or plastic containers with soluble or emulsified compressed gas. Plastic containers must only contain Division 2.2 non-flammable soluble or emulsified compressed gas. Containers must be of such design that they will hold pressure without permanent deformation up to 375 psig and must be equipped with a device designed so as to release pressure without bursting of the container or dangerous projection of its parts at higher pressures. This exception applies to shipments offered for transportation by refrigerated motor vehicles only.
(3) Nonrefillable metal or plastic containers charged with a Division 6.1 PG III or nonflammable solution containing biological products or a medical preparation that could be deteriorated by heat, and compressed gas or gases. Plastic containers may only contain 2.2 non-flammable soluble or emulsified compressed gas. The
(4) Electronic tubes, each having a volume of not more than 30 cubic inches and charged with gas to a pressure of not more than 35 psig and packed in strong outer packagings are authorized.
(5) Audible fire alarm systems powered by a compressed gas contained in an inside metal container when shipped are authorized under the following conditions:
(i) Each inside container must have contents that are not flammable, poisonous, or corrosive as defined under this part,
(ii) Each inside container may not have a capacity exceeding 35 cubic inches (19.3 fluid ounces),
(iii) Each inside container may not have a pressure exceeding 70 psig at 21.1 °C (70 °F) and the liquid portion of the gas may not completely fill the inside container at 54.4 °C (130 °F), and
(iv) Each nonrefillable inside container must be designed and fabricated with a burst pressure of not less than four times its charged pressure at 54.4 °C (130 °F). Each refillable inside container must be designed and fabricated with a burst pressure of not less than five times its charged pressure at 54.4 °C (130 °F).
(e) * * *
(2)
(A) Permanently affixed to a steel base structure,
(B) Permanently affixed to a trailer, or
(C) Manufactured with a rigid internal structure designed for transportation and stacking conditions such that they do not leak and do not deteriorate, distort, or become damaged in a manner that could adversely affect their safety or reduce their strength in transportation, cause instability in stacks of refrigerating machines, or cause damage to these machines in a way that is likely to reduce safety in transportation.
(ii)
(f)
(1) Accumulators installed in motor vehicles, construction equipment, and assembled machinery and designed and fabricated with a burst pressure of not less than five times their charged pressure at 70 °F, when shipped, are not subject to the requirements of this subchapter.
(2) Accumulators charged with limited quantities of compressed gas to not more than 200 psig at 70 °F are excepted from labeling (except when offered for transportation by air) and the specification packaging requirements of this subchapter when shipped under the following conditions. In addition, shipments are not subject to subpart F (placarding) of part 172 of this subchapter, to part 174 of this subchapter except § 174.24 and to part 177 of this subchapter except § 177.817.
(i) Each accumulator must be shipped as an inside packaging;
(ii) Each accumulator may not have a gas space exceeding 2,500 cubic inches under stored pressure; and
(iii) Each accumulator must be tested, without evidence of failure or damage, to at least three times its charged pressure of 70 °F, but not less than 120 psi before initial shipment and before each refilling and reshipment.
(3) Accumulators with a charging pressure exceeding 200 psig at 70 °F and in compliance with the requirements stated in paragraph (f)(2) of this section, as applicable, are excepted from labeling (except when offered for transportation by air) and the specification packaging requirements of this subchapter when shipped under the following conditions:
(i) Each accumulator must be designed and fabricated with a burst pressure of not less than five (5) times its charged pressure at 70 °F when shipped;
(ii) For an accumulator with a gas space not to exceed 100 cubic inches, it must be designed and fabricated with a burst pressure of not less than five (5) times its charged pressure at 70 °F. Out of each lot not to exceed 1,000 successively produced accumulators per day of the same type, accumulators must be tested, in lieu of the testing of paragraph (f)(2)(iii) of this section, as follows:
(A) One (1) accumulator must be tested to the minimum design burst pressure;
(B) Two (2) accumulators, one at the beginning of production and one at the end must be tested to at least two and a half times the charge pressure without evidence of leakage or distortion;
(C) If accumulators fail either test, an additional four (4) sets of accumulators from the lot may be tested. If any additional accumulators fail, the lot must be rejected;
(iii) For an accumulator with a gas space not to exceed 30 cubic inches, it must be designed and fabricated with a burst pressure of not less than four (4) times its charged pressure at 70 °F. Out of each lot not to exceed 1,000 successively produced accumulators per day of the same type, accumulators must be tested, in lieu of the testing of paragraph (f)(2)(iii) of this section, as follows:
(A) One (1) accumulator must be tested to the minimum design burst pressure;
(B) Two (2) accumulators, one at the beginning of production and one at the end must be tested to at least two and a half times the charge pressure without evidence of leakage or distortion;
(C) If accumulators fail either test, an additional four (4) sets of accumulators from the lot may be tested. If any additional accumulators fail, the lot must be rejected;
(iv) Accumulators must be packaged in strong outer packaging.
(4) Accumulators intended to function as shock absorbers, struts, gas springs, pneumatic springs or other impact or energy-absorbing devices are not subject to the requirements of this subchapter provided each:
(i) Has a gas space capacity not exceeding 1.6 L and a charge pressure not exceeding 280 bar, where the product of the capacity expressed in
(ii) Has a minimum burst pressure of 4 times the charge pressure at 20 °C for products not exceeding 0.5 L gas space capacity and 5 times the charge pressure for products greater than 0.5 L gas space capacity;
(iii) Design type has been subjected to a fire test demonstrating that the article relieves its pressure by means of a fire degradable seal or other pressure relief device, such that the article will not fragment and that the article does not rocket; and
(iv) Accumulators must be manufactured under a written quality assurance program which monitors parameters controlling burst strength, burst mode and performance in a fire situation as specified in paragraphs (f)(4)(i) through (f)(4)(iii) of this section. A copy of the quality assurance program must be maintained at each facility at which the accumulators are manufactured.
(5) Accumulators not conforming to the provisions of paragraphs (f)(1) through (f)(4) of this section may only be transported subject to the approval of the Associate Administrator.
(k)
(1) Aerosols conforming to paragraph (a)(3), (a)(5), (b)(1), (b)(2), or (b)(3) of this section are not subject to the 30 kg (66 pounds) gross weight limitation when transported by motor vehicle for purposes of recycling or disposal under the following conditions:
(i) The aerosols must be packaged in a strong outer packaging. The strong outer packaging and its contents must not exceed a gross weight of 500 kg (1,100 pounds);
(ii) Each aerosol must be secured with a cap to protect the valve stem or the valve stem must be removed; and
(iii) The packaging must be offered for transportation or transported by—
(A) Private or contract motor carrier; or
(B) Common carrier in a motor vehicle under exclusive use for such service.
(2) Aerosols intended to conform to paragraphs (a)(3) or (a)(5) of this section at the time of filling but are leaking, have been improperly filled, or otherwise no longer conform to paragraphs (a)(3) or (a)(5) of this section may be offered for transportation and transported for disposal or recycling under the conditions provided in this paragraph (k)(2). Such aerosols are not eligible for the exceptions provided in paragraphs (a) and (i) of this section except for subpart F (Placarding) of part 172 of this subchapter.
(i)
(B) Each drum must be provided, when necessary, with sufficient cushioning and absorption material to prevent excessive shifting of the aerosols and to eliminate the presence of any free liquid at the time the drum is closed. All cushioning and absorbent material used in the drum must be compatible with the hazardous material; and
(C) The pressure inside each completed drum, at any time during transportation, may not exceed the design test pressure marked on the drum.
(ii)
(B) The overpack marking requirements of § 173.25 of this subchapter do not apply.
(3)
(a) * * *
(2) * * *
(d) * * *
(2) * * *
49 U.S.C. 5101-5128; 49 CFR 1.81 and 1.97.
(g) The valve cap, or the reducer when a large outlet is to be used, must be removed with a suitable wrench after the set screws are loosened and a pail must be placed in position to catch any liquid that may be in the outlet chamber. If the valve cap or reducer does not unscrew easily, it may be tapped lightly with a mallet or wooden block in an upward direction. If leakage shows upon starting the removal, the cap or reducer may not be entirely unscrewed. Sufficient threads must be left engaged and sufficient time allowed to permit the controlled escape of any accumulation of liquid in the outlet chamber. If the leakage stops or the rate of leakage diminishes materially, the cap or reducer may be entirely removed. If the initial rate of leakage continues, further efforts must be made to seat the outlet valve (see paragraph (f) of this section). If this fails, the cap or reducer must be screwed up tight and the tank must be unloaded through the dome. If upon removal of the outlet cap the outlet chamber is found to be blocked with frozen liquid or any other matter, the cap must be replaced immediately and a careful examination must be made to determine whether the outlet casting has been cracked. If the obstruction is not frozen liquid, the car must be unloaded through the dome. If the obstruction is frozen liquid and no crack has been found in the outlet casting, the car may, if circumstances require it, be unloaded from the bottom by removing the cap and attaching unloading connections immediately. Before opening the valve inside the tank car with a frozen liquid blockage:
(1) Steam must be applied to the outside of the outlet casting or the outlet casting must be wrapped with burlap or other rags and hot water applied to the wrapped casting to melt the frozen liquid; or
(2) For combustible liquid or Class 3 liquid petroleum distillate fuels, the blockage may be cleared by attaching a fitting to the outlet line and applying nitrogen at a pressure not to exceed 100 psig.
49 U.S.C. 5101-5128; 49 CFR 1.81 and 1.97.
(a)
(b)
(1) Any container showing deterioration which might affect its integrity must not be allowed on board the vessel. A visual inspection by a responsible member of the crew must be made of each cylinder of liquefied petroleum gas before it may be allowed aboard the vessel. A cylinder that has a crack or leak, is bulged, has a defective valve or a leaking or defective pressure relief device, or bears evidence of physical abuse, fire or heat damage, or detrimental rusting or corrosion, may not offered for transportation on board the vessel. Leaking or damaged containers of gasoline may not be offered for transportation on board the vessel.
(2) Motor vehicles may be stowed in the same hold or compartment or on the vehicle deck of passenger vessels with cylinders of liquefied petroleum gas when the cylinders are securely attached to recreational vehicles, such as campers or trailers.
(3) Extra containers of gasoline (including camp stove or lantern fuel) and portable cylinders of liquefied petroleum gas (including cylinders for camping equipment) not securely attached to recreational vehicles must be stowed in the vessel's paint locker. Containers must be securely closed.
(4) All liquefied petroleum gas cylinders must be secured by closing the shut-off valves prior to the recreational vehicles being loaded on the vessels. The owner or operator of each recreational vehicle must be directed to close all operating valves within the vehicles.
(5) “No smoking” signs must be posted on the vehicle decks and, if used for storage of hazardous materials; in close proximity to the vessel's paint locker.
(6) An hourly patrol of the vehicle decks must be made by a crewmember. Any unusual or dangerous situation must be reported to the vessel's master.
(7) Passengers may be allowed on the vehicle decks during the voyage and are subject to the control of the crew personnel conducting the continuous vehicle deck patrol.
(8) Each person responsible for performing a function authorized by this section must be trained in accordance with subpart H of part 172 of this subchapter and on the requirements of this section.
(9) Shipments made under this paragraph are subject to the Incident Reporting requirements prescribed in §§ 171.15 and 171.16 of this subchapter.
(a) Each package required to have a Class 8 (corrosive) label thereon being transported on a vessel must be stowed clear of living quarters, and away from foodstuffs and cargo of an organic nature. For the purposes of this section, food ingredients intended for human consumption (ingredients) that are Class 8 (corrosive) materials are not considered to be incompatible with other food ingredients if the intended use of those ingredients is for the manufacture of food, or food ingredients containing those food ingredients (or like ingredients), with or without other ingredients.
49 U.S.C. 5101-5128; sec. 112 of Pub. L. 103-311, 108 Stat. 1673, 1676 (1994); sec. 32509 of Pub. L. 112-141, 126 Stat. 405, 805 (2012); 49 CFR 1.81 and 1.97
(i) * * *
(3) A qualified person “attends” the loading or unloading of a cargo tank only if, throughout the process:
(i) Except for unloading operations subject to §§ 177.837(d), 177.840(p), and 177.840(q), the qualified person is within 7.62 m (25 feet) of the cargo tank. The qualified person attending the unloading of a cargo tank must be alert and have an unobstructed view of the cargo tank and delivery hose to the maximum extent practicable during the unloading operation;
(ii) The qualified person observes all loading or unloading operations by means of video cameras and monitors or instrumentation and signaling systems such as sensors, alarms, and electronic surveillance equipment located at a remote control station, and the loading or unloading system is equipped as follows:
(A) For a video monitoring system used to meet the attendance requirement, the camera must be mounted so as to provide an unobstructed view of all equipment involved in the loading or unloading operations, including all valves, hoses, domes, and pressure relief devices.
(B) For an instrumentation and signaling system used to meet the attendance requirement, the system must provide a surveillance capability at least equal to that of a human observer.
(C) Upon loss of video monitoring capability or instrumentation and signaling systems, loading or unloading operations must be immediately terminated.
(D) Shut-off valves operable from the remote control station must be provided.
(E) In the event of a remote system failure, a qualified person must immediately resume attending the loading or unloading of the cargo tank as provided in paragraph (i)(3)(i) of this section.
(F) A containment area must be provided capable of holding the contents of as many cargo tank motor vehicles as might be loaded at any single time.
(G) A qualified person must personally conduct a visual inspection of each cargo tank motor vehicle after it is loaded, prior to departure, for any damage that may have occurred during loading.
(iii) Hoses used in the loading or unloading operations are equipped with cable-connected wedges, plungers, or flapper valves located at each end of the hose, able to stop the flow of product from both the source and the receiving tank within one second without human intervention in the event of a hose rupture, disconnection, or separation.
(A) Prior to each use, each hose must be inspected to ensure that it is of sound quality, without defects detectable through visual observation; and
(B) The loading or unloading operations must be physically inspected by a qualified person at least once every sixty (60) minutes.
(4) A person is “qualified” if he has been made aware of the nature of the hazardous material which is to be loaded or unloaded, has been instructed on the procedures to be followed in emergencies, and except for persons observing loading or unloading operations by means of video cameras and monitors or instrumentation and signaling systems such as sensors, alarms, and electronic surveillance equipment located at a remote control station and persons inspecting hoses in accordance with paragraph (i)(3)(iii) of this section, is authorized to move the cargo tank, and has the means to do so.
(l) * * *
(2) * * *
(i)
(A) The combustion cargo heater is powered by diesel fuel or propane and each of the following requirements are met:
(
(
(
(
(
(
(
(
(
(B) The combustion cargo heater is a catalytic heater and each of the following requirements are met:
(
(
(
(
(
(
(ii) [Reserved]
(i) Division 4.2 (self-heating liquid) material. Notwithstanding the segregation requirements of § 177.848(d), the following Division 4.2 (self-heating) materials may be transported on the same transport vehicle with Class 8 (corrosive) materials. The hazardous materials must be palletized with a minimum height of 100 mm (4 inches) off the floor of the vehicle, and the self-heating material must be separated from the corrosive material by a minimum horizontal distance of 1.2 m (4 feet).
(1) Sodium hydrosulfite
(2) Thiourea dioxide, UN3341, in PG II or III packaged in UN 1G fiber drums meeting packing group II performance requirements of subpart M of part 178 of this subchapter.
(3) Self-heating, solid, organic, n.o.s., UN3088, in PG II or III packaged in UN 1G fiber drums meeting the Packing Group II performance level requirements of subpart M of part 178 of this subchapter.
(a) * * *
(3)
(A) The Division 2.3, Hazard Zone A material must be packaged as authorized by this subchapter. In addition, each package must be must be placed in a plastic bag which is taped closed and then overpacked in a UN 1A2 steel drum tested and marked for a PG II or higher performance level with insulation material inside to protect the cylinders from fire. The outside of the overpack must be marked with an indication that the inner packagings conform to the prescribed specifications.
(B) A Division 2.1 material requiring strong non-bulk outer packagings in accordance with § 173.301(a)(9) of this subchapter must be overpacked in a UN 1A2 steel or 1H2 plastic drum tested and marked for a PG II or higher performance level. The outside of the overpack must be marked with an indication that the inner packagings conform to the prescribed specifications.
(C) Packages containing Division 2.3 Hazard Zone A material must be separated within the transport vehicle from packages containing Division 2.1, Class 3, Class 4, Class 5, and Class 8 materials by a minimum horizontal distance of 1.2 m (4 feet). In addition, all steel or plastic overpacks containing packages of Division 2.3, Hazard Zone A or Division 2.1 material must be placed on pallets within the transport vehicle.
(ii) Notwithstanding the segregation requirements of § 177.848(d), Division 2.3, Hazard Zone A material may be transported on the same transport vehicle with non-bulk packagings and IBCs meeting a UN performance standard containing only the residue of Division 2.1, 4.3, 5.1, and Class 3 and 8 materials if all of the following requirements are met:
(A) The materials are transported in enclosed trailers equipped with inlet and outlet vent openings with a minimum total area of one square foot per 1,000 cubic feet of trailer volume. Electrical systems within the trailer's interior must be non-sparking or explosion proof.
(B) Cylinders must be transported in an upright position and securely restrained within the trailer, or loaded into racks, secured to pallets, or packed in wooden or fiberboard boxes or crates to prevent the cylinders from shifting or overturning within the motor vehicle under normal transportation conditions. If cylinders are secured to a pallet, the pallet must be designed to transport 1,590 kg (3,500 lbs.) per pallet and the cylinders must be secured within the pallet by a web strap rated at 4,545 kg (10,000 lbs.).
(C) A cylinder containing Division 2.3 Hazard Zone A materials must be separated from non-bulk packagings and IBCs meeting a UN performance standard containing the residue of materials in Division 2.1, 4.3, or 5.1, or Class 3 or 8 by a minimum horizontal distance of 3 m (10 feet). The maximum gross weight of Division 2.3 Hazard Zone A material carried on one vehicle must not exceed 3,636 kg (8,000 lbs.).
(D) Motor carriers must have a satisfactory safety rating as prescribed in 49 CFR part 385.
(f) Notwithstanding the segregation requirements of § 177.848(d), when transported by highway by private or contract motor carrier, Division 6.1 PG I, Hazard Zone A toxic-by-inhalation (TIH) materials meeting the definition of a hazardous waste as provided in § 171.8 of this subchapter, may be transported on the same transport vehicle with materials classed as Class 3, Class 4, Class 5, and Class 8. The Division 6.1 PG I, Hazard Zone A materials must be loaded on pallets and separated from the Class 3, Class 4, Class 5, and Class 8 materials by a minimum horizontal distance of 2.74 m (9 feet) when in conformance with the following:
(1) The TIH materials are packaged in combination packagings as prescribed in § 173.226(c) of this subchapter.
(2) The combination packages containing TIH materials must be:
(i) Filled and packed by the offeror's hazmat employees;
(ii) Be placed on pallets, when in a transport vehicle; and
(iii) Separated from hazardous materials classed as Class 3, Class 8 or Divisions 4.1, 4.2, 4.3, 5.1, or 5.2 by a nine-foot (minimum distance) buffer zone, when in a transport vehicle. The buffer zone maybe established by:
(A) A load lock;
(B) Empty drums;
(C) Drums containing hazardous materials (
(D) Drums containing non-hazardous materials that are compatible with materials in all other drums immediately around them.
49 U.S.C. 5101-5128; 49 CFR 1.81 and 1.97.
Required in all details.
Notwithstanding the variation provided in this section, each container must otherwise conform to a DOT 2P container in accordance with § 178.33. The following conditions also apply under Variation 1—
(a)
(b)
(2) Each such 25,000 containers or less, successively produced per day, shall constitute a lot and if the test container(s) shall fail, the lot shall be rejected. Otherwise, ten (10) additional containers of each container design produced may be selected at random and subjected to the test. These containers shall be complete with ends assembled. Should any of the containers thus tested fail, the entire lot must be rejected. All containers constituting a lot shall be of like material, size, design construction, finish, and quality.
(c)
(1) DOT-2P1.
(2) With the name or symbol of the person making the mark. A symbol, if used, must be registered with the Associate Administrator.
Required in all details.
Notwithstanding the variation provided in this paragraph, each container must otherwise conform to a DOT 2Q container in accordance with § 178.33a. The following conditions also apply under Variation 1—
(a)
(b)
(c)
(d)
(2) Each such 25,000 containers or less, successively produced per day, shall constitute a lot and if the test container(s) shall fail, the lot shall be rejected. Otherwise, ten (10) additional pairs of containers may be selected at random and subjected to the test under which failure occurred. Should any of the containers thus tested fail, the entire lot must be rejected. All containers constituting a lot shall be of like material, size, design construction, finish, and quality.
(e)
(1) DOT-2Q1.
(2) With the name or symbol of the person making the mark. A symbol, if used, must be registered with the Associate Administrator.
Notwithstanding the variation provided in this paragraph, each container must otherwise conform to a DOT 2Q container in accordance with § 178.33a. The following conditions also apply under Variation 2—
(a)
(b)
(2) Each such 25,000 containers or less, successively produced per day, shall constitute a lot and if the test container(s) shall fail, the lot shall be rejected. Otherwise, ten (10) additional containers of each container design produced may be selected at random and subjected to the test. These containers shall be complete with ends assembled. Should any of the containers thus tested fail, the entire lot must be rejected. All containers constituting a lot shall be of like material, size, design construction, finish, and quality.
(c)
(1) DOT-2Q2.
(2) With the name or symbol of the person making the mark. A symbol, if used, must be registered with the Associate Administrator.
49 U.S.C. 5101-5128; 49 CFR 1.81 and 1.97.
The revision and amendments read as follows.
(a) * * *
(e)
(g) * * *
(c)
(a) Executive Order 13574 of May 23, 2011 (Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Sanctions Act of 1996, as Amended);
(b) Executive Order 13590 of November 20, 2011 (Authorizing the Imposition of Certain Sanctions With Respect to the Provision of Goods, Services, Technology, or Support for Iran's Energy and Petrochemical Sectors);
(c) Executive Order 13622 of July 30, 2012 (Authorizing Additional Sanctions With Respect to Iran); and
(d) Executive Order 13645 of June 3, 2013 (Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Freedom and Counter-Proliferation Act of 2012 and Additional Sanctions With Respect To Iran).
(a) Revoking current sections 5 through 7 and 15;
(b) Revising current section 4 by removing “section 5 of Executive Order 13622 of July 30, 2012,” in subsection (a), replacing “section 12” with “section 9” in subsection (a), and replacing “section 12” with “section 9” in subsection (b);
(c) Revising current section 8 by inserting “and” between “2(a),” and “3(a)” and removing “, and 7(a)(iv)”;
(d) Revising current section 9 by inserting “and” between “2(a),” and “3(a)” and removing “, and 7(a)(iv)”;
(e) Revising current section 14 by inserting “and” between “2(a),” and “3(a)” and removing “, and 7(a)(iv)”;
(f) Renumbering current sections 8 through 14 as sections 5 through 11, respectively; and
(g) Renumbering current sections 16 through 19 as sections 12 through 15, respectively.
(A) prohibit any United States financial institution from making loans or providing credits to the sanctioned person totaling more than $10,000,000 in any 12-month period, unless such person is engaged in activities to relieve human suffering and the loans or credits are provided for such activities;
(B) prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the sanctioned person has any interest;
(C) prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the sanctioned person;
(D) block all property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person (including any foreign branch) of the sanctioned person, and provide that such property and interests in property may not be transferred, paid, exported, withdrawn, or otherwise dealt in;
(E) prohibit any United States person from investing in or purchasing significant amounts of equity or debt instruments of a sanctioned person;
(F) restrict or prohibit imports of goods, technology, or services, directly or indirectly, into the United States from the sanctioned person; or
(G) impose on the principal executive officer or officers, or persons performing similar functions and with similar authorities, of a sanctioned person the sanctions described in subsections (b)(i)(A)-(F) of this section, as selected by the Secretary of State or the Secretary of the Treasury, as appropriate.
(A) to have engaged, on or after January 2, 2013, in corruption or other activities relating to the diversion of goods, including agricultural commodities, food, medicine, and medical devices, intended for the people of Iran;
(B) to have engaged, on or after January 2, 2013, in corruption or other activities relating to the misappropriation of proceeds from the sale or resale of goods described in subsection (c)(i)(A) of this section;
(C) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the activities described in subsection (c)(i)(A) or (c)(i)(B) of this section
(D) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to subsection (c)(i) of this section.
(a) the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order; and
(b) the receipt of any contribution or provision of funds, goods, or services from any such person.
(b) Any conspiracy formed to violate any of the prohibitions set forth in this order is prohibited.
(a) the term “entity” means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;
(b) the term “financial institution,” as used in subsection 3(b) of this order, includes:
(c) the term “Government of Iran” includes the Government of Iran, any political subdivision, agency, or instrumentality thereof, including the Central Bank of Iran, and any person owned or controlled by, or acting for or on behalf of, the Government of Iran;
(d) the term “Iran” means the Government of Iran and the territory of Iran and any other territory or marine area, including the exclusive economic zone and continental shelf, over which the Government of Iran claims sovereignty, sovereign rights, or jurisdiction, provided that the Government of Iran exercises partial or total de facto control over the area or derives a benefit from economic activity in the area pursuant to international arrangements;
(e) the term “person” means an individual or entity;
(f) the term “sanctioned person” means a person that the Secretary of State or the Secretary of the Treasury, pursuant to authority delegated by the President and in accordance with the terms of such delegation, has determined is a person on whom sanctions shall be imposed pursuant to section 1244(d)(1)(A), 1245(a)(1), or 1246(a)(1) of IFCA (including in each case as informed by section 1253(c)(2) of IFCA) for engaging in transactions or activities outside the scope of the waiver determinations as to IFCA issued by the Secretary of State to give effect to sanctions commitments described in sections 17.1-17.3 and 17.5 of Annex V of the JCPOA, and any renewals thereof, and on whom the Secretary of State or the Secretary of the Treasury has imposed any of the sanctions in subsection 3(b) of this order;
(g) the term “United States financial institution” means a financial institution as defined in subsection (b) of this section (including its foreign branches) organized under the laws of the United States or any jurisdiction within the United States or located in the United States; and
(h) the term “United States person” means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States.
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 |