Page Range | 10701-10854 | |
FR Document |
Page and Subject | |
---|---|
82 FR 10771 - Sunshine Act Meeting | |
82 FR 10703 - Exemptions for Security-Based Swaps | |
82 FR 10851 - Sunshine Act Meeting Notice | |
82 FR 10782 - Government in the Sunshine Act Meeting Notice | |
82 FR 10727 - Air Plan Approval; Ohio; Removal of Gasoline Volatility Requirements in the Cincinnati and Dayton Areas | |
82 FR 10850 - 60-Day Notice of Proposed Information Collection: Affidavit of Relationship (AOR) for Minors Who Are Nationals of El Salvador, Guatemala, or Honduras | |
82 FR 10712 - Thiamethoxam; Pesticide Tolerance | |
82 FR 10742 - Foreign-Trade Zone 280-Ada and Canyon Counties, Idaho; Application for Subzone; Orgill, Inc.; Post Falls, Idaho | |
82 FR 10742 - Approval of Subzone Status, Best Petroleum Corporation, Toa Baja, Puerto Rico | |
82 FR 10737 - BE-15: Annual Survey of Foreign Direct Investment in the United States | |
82 FR 10736 - BE-29: Annual Survey of Foreign Ocean Carriers' Expenses in the United States | |
82 FR 10767 - Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2015 | |
82 FR 10711 - Allocations of Cross-State Air Pollution Rule Allowances From New Unit Set-Asides for the 2016 Compliance Year | |
82 FR 10766 - Extension of Public Comment Period: Draft Human Health Recreational Ambient Water Quality Criteria and/or Swimming Advisories for Microcystins and Cylindrospermopsin | |
82 FR 10767 - Extension of Public Comment Period: Draft Field-Based Methods for Developing Aquatic Life Criteria for Specific Conductivity | |
82 FR 10735 - BE-30: Quarterly Survey of Ocean Freight Revenues and Foreign Expenses of U.S. Carriers | |
82 FR 10771 - Federal Home Loan Bank Community Support Program-Opportunity To Comment on Members Subject to Review | |
82 FR 10711 - Revisions to Procedure 2-Quality Assurance Requirements for Particulate Matter Continuous Emission Monitoring Systems at Stationary Sources | |
82 FR 10741 - BE-37: Quarterly Survey of U.S. Airline Operators' Foreign Revenues and Expenses | |
82 FR 10740 - BE-125: Quarterly Survey of Transactions in Selected Services and Intellectual Property With Foreign Persons | |
82 FR 10741 - BE-150: Quarterly Survey of Payment Card and Bank Card Transactions Related to International Travel | |
82 FR 10738 - BE-45: Quarterly Survey of Insurance Transactions by U.S. Insurance Companies With Foreign Persons | |
82 FR 10739 - BE-185: Quarterly Survey of Financial Services Transactions Between U.S. Financial Services Providers and Foreign Persons | |
82 FR 10739 - BE-605: Quarterly Survey of Foreign Direct Investment in the United States-Transactions of U.S. Affiliate With Foreign Parent | |
82 FR 10736 - BE-577: Quarterly Survey of U.S. Direct Investment Abroad-Transactions of U.S. Reporter With Foreign Affiliate | |
82 FR 10734 - BE-9: Quarterly Survey of Foreign Airline Operators' Revenues and Expenses in the United States | |
82 FR 10746 - Fishing Capacity Reduction Program for the Southeast Alaska Purse Seine Salmon Fishery | |
82 FR 10772 - Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company | |
82 FR 10737 - BE-11: Annual Survey of U.S. Direct Investment Abroad | |
82 FR 10809 - International Mail Contract | |
82 FR 10850 - Notice of Determinations; Culturally Significant Object Imported for Exhibition Determinations: “An American Icon Returns: “Whistler's Mother” in Chicago” Exhibition | |
82 FR 10745 - Glycine From the People's Republic of China: Continuation of Antidumping Duty Order | |
82 FR 10744 - Certain Magnesia Carbon Bricks From Mexico: Rescission of Antidumping Duty Administrative Review; 2015-2016 | |
82 FR 10743 - Wooden Bedroom Furniture From the People's Republic of China: Final Results Antidumping Duty Administrative Review and Final Determination of No Shipments in Part; 2015 | |
82 FR 10808 - Notice of Intent To Seek Approval To Renew an Information Collection | |
82 FR 10761 - Intent To Grant an Exclusive License for U.S. Army Owned Invention to Savit Corporation | |
82 FR 10718 - Control of Communicable Diseases; Delay of Effective Date | |
82 FR 10726 - Response to December 9, 2013, Clean Air Act Section 176A Petition From Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island and Vermont | |
82 FR 10763 - Notice of Public Scoping, Request for Comment, and Announcement of Public Scoping Meetings for the U.S. Department of Energy Environmental Assessment for New England Aqua Ventus I (DOE/EA-2049) | |
82 FR 10746 - Submission for OMB Review; Comment Request | |
82 FR 10770 - Information Collection Being Submitted for Review and Approval to the Office of Management and Budget | |
82 FR 10768 - Information Collections Being Reviewed by the Federal Communications Commission | |
82 FR 10809 - Operator Licensing Examination Standards for Power Reactors | |
82 FR 10761 - Consumer Advisory Board Meeting | |
82 FR 10762 - Publication of Housing Price Inflation Adjustment Under 50 U.S.C. App. 3951 | |
82 FR 10782 - United States v. Anheuser-Busch InBEV SA/NV, et al.; Public Comments and Response on Proposed Final Judgment | |
82 FR 10798 - Brookwood-Sago Mine Safety Grants | |
82 FR 10772 - Submission for OMB Review; Reporting Purchases From Sources Outside the United States | |
82 FR 10762 - Uniform Formulary Beneficiary Advisory Panel; Notice of Federal Advisory Committee Meeting | |
82 FR 10777 - National Institute of Neurological Disorders and Stroke, Muscular Dystrophy Coordinating Committee Call for Committee Membership Nominations | |
82 FR 10778 - Government-Owned Inventions; Availability for Licensing | |
82 FR 10779 - Government-Owned Inventions; Availability for Licensing | |
82 FR 10776 - Government-Owned Inventions; Availability for Licensing | |
82 FR 10778 - National Institute of Allergy and Infectious Diseases; Notice of Closed Meeting | |
82 FR 10778 - Center for Scientific Review; Amended Notice of Meeting | |
82 FR 10778 - National Institute of Biomedical Imaging and Bioengineering; Notice of Closed Meeting | |
82 FR 10746 - Atlantic Highly Migratory Species; Exempted Fishing Permits; Extension of Public Comment Period | |
82 FR 10780 - The President's National Security Telecommunications Advisory Committee | |
82 FR 10760 - Agency Information Collection Activities: Submission for OMB Review; Comment Request | |
82 FR 10763 - U.S. Court of Appeals for the Armed Forces Code Committee Meeting | |
82 FR 10765 - Combined Notice of Filings #2 | |
82 FR 10766 - Combined Notice of Filings #1 | |
82 FR 10734 - Meetings | |
82 FR 10763 - Vietnam War Commemoration Advisory Committee; Notice of Federal Advisory Committee Meeting | |
82 FR 10764 - Records Governing Off-the-Record Communications; Public Notice | |
82 FR 10765 - Combined Notice of Filings #1 | |
82 FR 10835 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Granting Approval of a Proposed Rule Change To Amend FINRA Rules To Conform to the Commission's Proposed Amendment to Commission Rule 15c6-1(a) and the Industry-Led Initiative To Shorten the Standard Settlement Cycle for Most Broker-Dealer Transactions From T+3 to T+2 | |
82 FR 10846 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule | |
82 FR 10827 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment Nos. 1-4, To Amend the Co-Location Services Offered by the Exchange To Add Certain Access and Connectivity Fees | |
82 FR 10848 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change To Revise the ICE Clear Europe Clearing Rules Relating to the Application of Default Provisions in the Event of a Resolution Proceeding | |
82 FR 10828 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change Amending Rules 7.29E and 1.1E To Provide for a Delay Mechanism | |
82 FR 10844 - Self-Regulatory Organizations; NASDAQ BX, Inc.; The Nasdaq Stock Market LLC; NASDAQ PHLX LLC; Order Granting Approval of Proposed Rule Changes, as Modified by Amendment No. 1s, To Accept Orders Routed Inbound From the International Stock Exchange, LLC, ISE Gemini, LLC, and ISE Mercury, LLC, by Nasdaq Execution Services, LLC | |
82 FR 10811 - Self-Regulatory Organizations; ISE Gemini, LLC; ISE Mercury, LLC; Order Granting Approval of Proposed Rule Changes, as Modified by Amendment Nos. 1 and 2 Thereto, To Permit Nasdaq Execution Services, LLC To Become an Affiliated Member of Each Exchange To Perform Certain Routing and Other Functions | |
82 FR 10837 - Self-Regulatory Organizations; International Securities Exchange, LLC; Order Granting Approval of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Amend the Exchange's Rules Regarding Routing of Orders, Cancellation of Orders, and Handling of Error Positions, and Permit Nasdaq Execution Services, LLC To Become an Affiliated Member of the Exchange To Perform Certain Routing and Other Functions | |
82 FR 10814 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change To Adopt New Equities Trading Rules To Transition Trading on the Exchange From a Floor Based Market With a Parity Allocation Model to Fully Automated Price-Time Priority Model on the Exchange's New Trading Technology Platform, Pillar | |
82 FR 10807 - Notice of Proposed Information Collection Request: Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery | |
82 FR 10781 - Certain Sleep-Disordered Breathing Treatment Systems and Components Thereof; Commission Determination Not To Review an Initial Determination Granting a Joint Motion To Terminate the Investigation in Its Entirety Based Upon Settlement | |
82 FR 10781 - Certain Passenger Vehicle Automotive Wheels; Commission Determination Not To Review Initial Determination Terminating the Investigation as to the Last Remaining Respondents; Termination of the Investigation | |
82 FR 10798 - Meeting of the Office of Justice Programs' Science Advisory Board | |
82 FR 10852 - Proposed Information Collection; Comment Request | |
82 FR 10852 - Proposed Collection; Comment Request for Forms 8857 and 8857(SP) | |
82 FR 10709 - Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Civil Penalties Inflation Adjustments | |
82 FR 10854 - Advisory Committee on the Readjustment of Veterans; Notice of Meeting | |
82 FR 10852 - Open Meeting of the Taxpayer Advocacy Panel Joint Committee | |
82 FR 10773 - Agency Forms Undergoing Paperwork Reduction Act Review | |
82 FR 10775 - Proposed Information Collection Activity; Comment Request | |
82 FR 10810 - New Postal Products | |
82 FR 10733 - Radio Broadcasting Services; Fort Walton Beach, Florida | |
82 FR 10832 - Submission for OMB Review; Comment Request | |
82 FR 10833 - Submission for OMB Review; Comment Request | |
82 FR 10842 - Submission for OMB Review; Comment Request | |
82 FR 10834 - USAA Asset Management Company, et al.; Notice of Application | |
82 FR 10775 - Bioequivalence Recommendations for Difluprednate; Revised Draft Guidance for Industry; Availability | |
82 FR 10747 - Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to the U.S. Air Force Conducting Maritime Weapon Systems Evaluation Program Operational Testing Within the Eglin Gulf Test and Training Range | |
82 FR 10807 - NASA Advisory Council; Institutional Committee; Meeting. | |
82 FR 10806 - NASA Advisory Council; Aeronautics Committee; Meeting | |
82 FR 10732 - Trichloroethylene (TCE); Regulation of Certain Uses Under Toxic Substances Control Act; Extension of Comment Periods | |
82 FR 10701 - Airworthiness Directives; Rolls-Royce plc Turbofan Engines | |
82 FR 10780 - United States Section; Notice of Availability of a Final Environmental Assessment and Finding of No Significant Impact for Alamito and Terneros Sediment and Vegetation Removal Below Presidio Flood Control Project, Presidio, Texas | |
82 FR 10707 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits | |
82 FR 10721 - Airworthiness Directives; Airbus Airplanes | |
82 FR 10719 - Inflation Adjustment of Civil Monetary Penalties |
Economic Analysis Bureau
Foreign-Trade Zones Board
International Trade Administration
National Institute of Standards and Technology
National Oceanic and Atmospheric Administration
Army Department
Energy Efficiency and Renewable Energy Office
Federal Energy Regulatory Commission
Centers for Disease Control and Prevention
Children and Families Administration
Food and Drug Administration
National Institutes of Health
Ocean Energy Management Bureau
Antitrust Division
Justice Programs Office
Mine Safety and Health Administration
Institute of Museum and Library Services
Federal Aviation Administration
Internal Revenue Service
Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.
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Federal Aviation Administration (FAA), DOT.
Final rule.
We are superseding airworthiness directive (AD) 2014-16-10 for all Rolls-Royce plc (RR) RB211 Trent 768-60, 772-60, and 772B-60 turbofan engines. AD 2014-16-10 required initial and repetitive ultrasonic inspections (UIs) of the affected low-pressure (LP) compressor blades. This AD requires the UIs in AD 2014-16-10 while reducing the inspection threshold. This AD was prompted by revised service information to reduce the inspection threshold for UI of the LP compressor blades. We are issuing this AD to correct the unsafe condition on these products.
This AD is effective March 22, 2017.
The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of March 22, 2017.
For service information identified in this final rule, contact Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, England, DE24 8BJ; phone: 011-44-1332-242424; fax: 011-44-1332-245418, or email:
You may examine the AD docket on the Internet at
Robert Green, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA 01803; phone: 781-238-7754; fax: 781-238-7199; email:
We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to supersede AD 2014-16-10, Amendment 39-17934 (79 FR 48961, August 19, 2014), (“AD 2014-16-10”). AD 2014-16-10 applied to RR RB211 Trent 768-60, 772-60, and 772B-60 turbofan engines. The NPRM published in the
We gave the public the opportunity to participate in developing this AD. We considered the comments received.
RR noted the 40 hours in the Costs of Compliance to undertake the inspection in RR Alert Non-Modification Service Bulletin (NMSB) RB.211-72-AH465, Revision 2, dated May 11, 2016, exceeds the RR guidance provided in the NMSB. The NMSB states that the on-wing inspection takes 16 hours to accomplish if the blades are installed, and total time of 28 hours if the blades are removed.
We disagree. The Costs of Compliance estimate assumed the blades would be removed for inspection, which includes the time required to remove the blades and reinstall them afterward to return the engine to service. We did not change this AD.
RR requested that previous inspection in accordance with RR Alert NMSB RB.211-72-AH465, Revision 1, dated July 10, 2015, or earlier revisions, be considered as credit for previous action, against the inspection requirements of this AD to align with European Aviation Safety Agency, (EASA) AD 2016-0141, dated July 18, 2016 (corrected July 20, 2016).
We agree. The inspections done using RR Alert NMSB RB.211-72-AH465, Revision 1, dated July 10, 2015, or the initial issue, dated July 15, 2013, are acceptable. We added RR Alert NMSB RB.211-72-AH465, Revision 1, dated July 10, 2015, and the initial issue, dated July 15, 2013, to paragraph (f) of this AD.
We reviewed the available data, including the comments received, and determined that air safety and the public interest require adopting this AD as proposed.
RR has issued Alert NMSB RB.211-72-AH465, Revision 2, dated May 11, 2016. The NMSB describes procedures for performing a UI of the LP compressor blades. 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 56 engines installed on airplanes of U.S. registry.
We estimate the following costs to comply with 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 to the extent that it justifies making a regulatory distinction, and
(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Accordingly, under the authority delegated to me by the Administrator, the FAA amends part 39 of the Federal Aviation Regulations (14 CFR part 39) as follows:
49 U.S.C. 106(g), 40113, 44701.
This AD is effective March 22, 2017.
This AD supersedes AD 2014-16-10, Amendment 39-17934 (79 FR 48961, August 19, 2014).
This AD applies to Rolls-Royce plc (RR) RB211 Trent 768-60, 772-60, and 772B-60 turbofan engines, with low-pressure (LP) compressor blade, part number (P/N) FK23411, FK25441, FK25968, FW11901, FW15393, FW23643, FW23741, FW23744, KH23403, or KH23404, installed.
This AD was prompted by LP compressor blade partial airfoil release events. We are issuing this AD to prevent LP compressor blade airfoil separations, damage to the engine, and damage to the airplane.
Comply with this AD within the compliance times specified, unless already done.
(i) After the effective date of this AD, for LP compressor blades that have accumulated less than 1,800 cycles since new (CSN) or cycles since last inspection (CSLI), perform a UI of each LP compressor blade before the blade exceeds 2,400 CSN or CSLI. Repeat the UI of the blade before exceeding 2,400 CSLI.
(ii) For any LP compressor blade that exceeds 1,800 CSN on the effective date of this AD, inspect the blade before exceeding 600 flight cycles after the effective date of this AD or before exceeding 3,600 CSN, whichever occurs first. Thereafter, perform the repetitive inspections before exceeding 2,400 CSLI.
(iii) For any LP compressor blade that exceeds 2,200 CSLI on September 23, 2014 (the effective date of AD 2014-16-10), inspect the blade before exceeding 3,000 CSLI or before further flight, whichever occurs later. Thereafter, perform the repetitive inspections before exceeding 2,400 CSLI.
(iv) Use paragraph 3, excluding subparagraphs 3.C.(2)(b), 3.D.(2), and 3.G, of RR Alert Non-Modification Service Bulletin (NMSB) RB.211-72-AH465, Revision 2, dated May 11, 2016, to perform the inspections required by this AD.
(i) After the effective date of this AD, LP compressor blade, P/N FK23411, FK25441, FK25968, FW11901, FW15393, FW23643, FW23741, FW23744, KH23403, or KH23404, that has accumulated at least 2,400 CSN or CSLI is eligible for installation if the blade has passed the UI required by this AD.
(ii) Reserved.
You may take credit for the UI required by paragraph (e) of this AD, if you performed the UI before the effective date of this AD using RR Alert NMSB RB.211-72-AH465, Revision 1, dated July 10, 2015, or the initial issue, dated July 15, 2013; or RR NMSB No. RB.211-72-G702, dated May 23, 2011; or RR NMSB No. RB.211-72-G872, Revision 2, dated March 8, 2013, or earlier revisions; or RR NMSB No. RB.211-72-H311, dated March 8, 2013; or the Engine Manual E-Trent-1RR, Task 72-31-11-200-806.
The Manager, Engine Certification Office, may approve AMOCs for this AD. Use the procedures found in 14 CFR 39.19 to make your request. You may email your request to:
(1) For more information about this AD, contact Robert Green, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA 01803; phone: 781-238-7754; fax: 781-238-7199; email:
(2) Refer to MCAI European Aviation Safety Agency, (EASA) AD 2016-0141, dated July 18, 2016 (corrected July 20, 2016), for more information. You may examine the MCAI 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
(2) You must use this service information as applicable to do the actions required by this AD, unless the AD specifies otherwise.
(i) Rolls-Royce plc Alert Non-Modification Service Bulletin RB.211-72-AH465, Revision 2, dated May 11, 2016.
(ii) Reserved.
(3) For Rolls-Royce plc service information identified in this AD, contact Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, England, DE24 8BJ; phone: 011-44-1332- 242424; fax: 011-44-1332-245418, or email:
(4) You may view this service information at FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA. For information on the availability of this material at the FAA, call 781-238-7125.
(5) You may view this service information 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:
Securities and Exchange Commission.
Interim final rule.
We are adopting amendments to the expiration dates in our interim final rules that provide exemptions under the Securities Act of 1933, the Securities Exchange Act of 1934, and the Trust Indenture Act of 1939 for those security-based swaps that prior to July 16, 2011 were security-based swap agreements and are defined as “securities” under the Securities Act and the Exchange Act as of July 16, 2011 due solely to the provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the amendments, the expiration dates in the interim final rules will be February 11, 2018.
The amendments are effective February 15, 2017. See Section I of the
Andrew Schoeffler, Special Counsel, Office of Capital Markets Trends, Division of Corporation Finance, at (202) 551-3860, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-3628.
We are adopting amendments to the following rules: Interim final Rule 240 under the Securities Act of 1933 (“Securities Act”),
In July 2011, we adopted interim final Rule 240 under the Securities Act, interim final Rules 12a-11 and 12h-1(i) under the Exchange Act, and interim final Rule 4d-12 under the Trust Indenture Act (collectively, the “interim final rules”).
Title VII amended the Securities Act and the Exchange Act to include “security-based swaps” in the definition of “security” for purposes of those statutes.
At the time of adoption of the interim final rules in July 2011, we requested comment on various aspects of the interim final rules.
As noted above, we twice have extended the expiration dates in the interim final rules.
Subsequent to the most recent extension of the expiration dates in the interim final rules, we proposed a rule under the Securities Act to provide that certain communications involving security-based swaps that may be purchased only by ECPs would not be deemed for purposes of Section 5 of the Securities Act to constitute offers of the security-based swaps that are the subject of such communications or any guarantees of such security-based swaps that are securities (“SBS Communications Proposal”).
In this release, we are extending the expiration dates in the interim final rules from February 11, 2017 to February 11, 2018. We believe that the interim final rules are needed to avoid disruption in the security-based swaps market while we continue to consider in a thorough and deliberative manner whether other regulatory action is appropriate. If the interim final rules expire on February 11, 2017, market participants entering into security-based swap transactions will have to consider whether they need to register the offer and sale of the security-based swaps under the Securities Act. Market participants also will have to consider whether they may be required to comply with the registration provisions of the Exchange Act applicable to classes of securities and the indenture provisions of the Trust Indenture Act. We believe that requiring compliance with these provisions while we continue to evaluate the implications for security-based swaps as securities and determine whether other regulatory action, including the SBS Communications Proposal, is appropriate could have an impact on the operation of the security-based swaps market. Thus, the interim
Based on the foregoing, we believe that it is necessary and appropriate in the public interest and consistent with the protection of investors to continue providing the exemptions from all provisions of the Securities Act (other than the Section 17(a) antifraud provisions), the registration requirements of the Exchange Act relating to classes of securities, and the indenture provisions of the Trust Indenture Act for those security-based swaps that prior to the Title VII effective date were security-based swap agreements, provided certain conditions are met. Accordingly, due to the interrelationship between the interim final rules and our continuing evaluation of further appropriate regulatory action, we have determined that it is necessary and appropriate to extend the expiration dates in the interim final rules from February 11, 2017 to February 11, 2018.
Section 553(b) of the Administrative Procedure Act
For the reasons we discuss throughout this release, we believe that we have good cause to act immediately to adopt the amendments to the interim final rules to extend the expiration dates in the interim final rules. The extension of the expiration dates in the interim final rules is intended to minimize disruptions and costs to the security-based swaps market that could occur if the interim final rules expire. The interim final rules are needed to allow market participants that meet the conditions of the interim final rules to continue to enter into security-based swap transactions without concern that such activities will be subject to the registration requirements of the Securities Act and the Exchange Act and the indenture qualification provisions of the Trust Indenture Act while we continue to evaluate the implications for security-based swaps as securities and determine whether other regulatory action, including the SBS Communications Proposal, is appropriate.
Absent an extension, the interim final rules will expire on February 11, 2017. The interim final rules have been in place since July 2011 and market participants have relied on them to enter into security-based swap transactions. Extending the expiration dates in the interim final rules will not affect the substantive provisions of the interim final rules and will allow market participants that meet the conditions of the interim final rules to continue to enter into security-based swap transactions without concern that such activities will be subject to the registration requirements of the Securities Act and the Exchange Act and the indenture qualification provisions of the Trust Indenture Act while we continue to evaluate the implications for security-based swaps as securities and determine whether other regulatory action, including the SBS Communications Proposal, is appropriate. Based on the foregoing and for the reasons we discuss throughout this release, we find that there is good cause to have the amendments to the interim final rules effective upon publication in the
We are mindful of the costs imposed by, and the benefits to be obtained from, our rules. Section 2(b) of the Securities Act and Section 3(f) of the Exchange Act require the Commission, whenever it engages in rulemaking and is required to consider or determine whether an action is necessary or appropriate in the public interest, to consider, in addition to the protection of investors, whether the action would promote efficiency, competition, and capital formation.
As discussed above, we are adopting amendments to the interim final rules to extend the expiration dates in the interim final rules to February 11, 2018. Extending the expiration dates in the interim final rules is intended to minimize disruptions and costs to the security-based swaps market that could
The interim final rules currently in effect serve as the economic baseline against which the costs and benefits, as well as the impact on efficiency, competition, and capital formation, of the amendments are measured. Because the extension of the expiration dates in the interim final rules maintains the status quo, we do not expect additional significant costs or benefits to result from the extension. We also do not expect the extension to have additional significant effects on efficiency, competition, or capital formation. The interim final rules will continue to exempt certain security-based swaps from all provisions of the Securities Act, other than the Section 17(a) antifraud provisions,
In the alternative, we could allow the interim final rules to expire by not extending their expiration date. In this scenario, market participants who continue to effect security-based swap transactions would have to determine whether another exemption from the registration requirements of the Securities Act is available so that they may be able to rely on that exemption. If no Securities Act exemptions are available for a security-based swap transaction following the expiration of the interim final rules, such a transaction would have to be registered under the Securities Act. The counterparties to such a transaction also would have to consider whether they need to comply with the registration requirements of the Exchange Act and the indenture provisions of the Trust Indenture Act. We believe that requiring compliance with these provisions at this time for security-based swap transactions between ECPs likely would disrupt and impose new costs on this segment of the security-based swaps market. For example, if market participants are required to register the offer and sale of these security-based swaps under the Securities Act, they would have to incur the additional costs of such registration, including legal and accounting costs, as well as the costs associated with preparing the disclosure documents describing these security-based swaps. Market participants also may incur costs associated with the registration of these security-based swaps under the Exchange Act and compliance with the Trust Indenture Act, including preparing indentures and arranging for the services of a trustee.
It is also possible that if we were to allow the interim final rules to expire, efficiency and capital formation may be impaired. Failing to extend the expiration dates in the interim final rules may result in disruptions and costs to the security-based swaps market that could impede efficiency. Additionally, some market participants may not continue to participate in certain security-based swap transactions if compliance with these provisions were infeasible (economically or otherwise). In that case, capital formation may be impaired to the extent that some market participants use these security-based swap transactions to hedge risks, including those related to the issuance of the referenced securities (as may occur with equity swaps and the issuance of convertible bonds). For example, if registration of these transactions is required under our existing Securities Act registration scheme, issuers of security-based swaps may be forced to provide disclosure about their security-based swap positions that might not otherwise be disclosed to the market. This position disclosure could lead to a decreased use of security-based swaps by these market participants, which could potentially impair capital formation to the extent counterparties might use security-based swaps for hedging their exposure to issuers of referenced securities. Such a decrease in the use of security-based swaps also could lead to reduced liquidity of the underlying securities, which could raise the costs of capital for issuers of those securities.
We also recognize that there may be certain benefits associated with letting the interim final rules expire. Without the exemptions provided for in the interim final rules, a market participant may have to file a registration statement covering the offer and sale of the security-based swaps, may have to register the class of security-based swaps that it has issued under the Exchange Act, and may have to satisfy the applicable provisions of the Trust Indenture Act, which would provide investors with additional information and in certain cases civil remedies. For example, a registration statement covering the offer and sale of the security-based swaps may provide certain information about the market participants, the security-based swap contract terms, and the identification of the particular reference securities, issuers, or loans underlying the security-based swap. Additionally, although investors currently may pursue antifraud actions in connection with the purchase and sale of security-based swaps under Section 10(b) of the Exchange Act,
The interim final rules do not impose any new “collections of information” within the meaning of the Paperwork Reduction Act of 1995 (“PRA”),
We hereby certify pursuant to 5 U.S.C. 605(b) that extending the expiration dates in the interim final rules will not have a significant economic impact on a substantial number of small entities.
The amendments described in this release are being adopted under the authority set forth in Sections 19 and 28 of the Securities Act, Sections 12(h), 23(a) and 36 of the Exchange Act, and Section 304(d) of the Trust Indenture Act.
Reporting and recordkeeping requirements, Securities.
For the reasons set out in the preamble, the Commission amends 17 CFR parts 230, 240, and 260 as follows:
15 U.S.C. 77b, 77b note, 77c, 77d, 77d note, 77f, 77g, 77h, 77j, 77r, 77s, 77z-3, 77sss, 78c, 78d, 78j, 78
(a) Except as expressly provided in paragraph (b) of this section, the Act does not apply to the offer or sale of any security-based swap that is:
(1) A
(2) Entered into between eligible contract participants (as defined in Section 1a(12) of the Commodity Exchange Act (7 U.S.C. 1a(12)) as in effect prior to July 16, 2011, other than a person who is an eligible contract participant under Section 1a(12)(C) of the Commodity Exchange Act as in effect prior to July 16, 2011).
(b) The exemption provided in paragraph (a) of this section does not apply to the provisions of Section 17(a) of the Act (15 U.S.C. 77q(a)).
(c) This section will expire on February 11, 2018.
15 U.S.C. 77c, 77d, 77g, 77j, 77s, 77z-2, 77z-3, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c, 78c-3, 78c-5, 78d, 78e, 78f, 78g, 78i, 78j, 78j-1, 78k, 78k-1, 78
(a) The provisions of Section 12(a) of the Act (15 U.S.C. 78l(a)) do not apply to any security-based swap offered and sold in reliance on § 230.240 of this chapter.
(b) This section will expire on February 11, 2018.
(i) Any security-based swap offered and sold in reliance on § 230.240 of this chapter. This section will expire on February 11, 2018.
15 U.S.C. 77c, 77ddd, 77eee, 77ggg, 77nnn, 77sss, 78
Any security-based swap offered and sold in reliance on § 230.240 of this chapter, whether or not issued under an indenture, is exempt from the Act. This section will expire on February 11, 2018.
By the Commission.
Pension Benefit Guaranty Corporation.
Final rule.
This final rule amends the Pension Benefit Guaranty Corporation's regulation on Benefits Payable in Terminated Single-Employer Plans to prescribe interest assumptions under the regulation for valuation dates in March 2017. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC.
Effective March 1, 2017.
Deborah C. Murphy (
PBGC's regulation on Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribes actuarial assumptions—including interest assumptions—for paying plan benefits under terminating single-employer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions in the regulation are also published on PBGC's Web site (
PBGC uses the interest assumptions in Appendix B to part 4022 to determine whether a benefit is payable as a lump sum and to determine the amount to pay. Appendix C to part 4022 contains interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC's historical methodology. Currently, the rates in Appendices B and C of the benefit payment regulation are the same.
The interest assumptions are intended to reflect current conditions in the financial and annuity markets. Assumptions under the benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for March 2017.
The March 2017 interest assumptions under the benefit payments regulation will be 1.25 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit's placement in pay status. In comparison with the interest assumptions in effect for January 2017, these interest assumptions are unchanged.
PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the public interest. This finding is based on the need to determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible.
Because of the need to provide immediate guidance for the payment of benefits under plans with valuation dates during February 2017, PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication.
PBGC has determined that this action is not a “significant regulatory action” under the criteria set forth in Executive Order 12866.
Because no general notice of proposed rulemaking is required for this amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2).
Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements.
In consideration of the foregoing, 29 CFR part 4022 is amended as follows:
29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344.
Issued in Washington, DC, by
Bureau of Ocean Energy Management, Interior.
Final rule.
This rule adopts and finalizes the interim final rule which adjusted the level of the maximum civil monetary penalties contained in the Bureau of Ocean Energy Management (BOEM) regulations pursuant to the Outer Continental Shelf Lands Act (OCSLA), the Oil Pollution Act of 1990 (OPA), the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (FCPIA of 2015), and Office of Management and Budget (OMB) guidance. This rule also implements the 2017 adjustment of the level of the maximum civil monetary penalties contained in the BOEM regulations pursuant to OCSLA, OPA, FCPIA of 2015 and OMB guidance. The 2017 adjustment of 1.01636 percent accounts for one year of inflation spanning from October 2015 to October 2016.
This rule is effective on February 15, 2017.
Robert Sebastian, Office of Policy, Regulation and Analysis, Bureau of Ocean Energy Management, at (202) 513-0507 or by email at
The Outer Continental Shelf Lands Act (OCSLA) directs the Secretary of the Interior to adjust the OCSLA maximum civil penalty amount at least once every three years to reflect any increase in the Consumer Price Index to account for inflation (43 U.S.C. 1350(b)(1)). The Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 104-410) (FCPIA of 1990) required that all civil monetary penalties, including the OCSLA maximum civil penalty amount, be adjusted at least once every four years.
Similarly, the Oil Pollution Act of 1990 (OPA) authorizes the Secretary of the Interior to impose civil penalties for failure to comply with financial responsibility regulations that implement OPA. The FCPIA of 1990 required that all civil monetary penalties, including the OPA maximum civil penalty amount, be adjusted at least once every four years.
The FCPIA of 2015 requires Federal agencies to promulgate annual inflation adjustments for civil monetary penalties. Specifically, agencies must adjust the level of civil monetary penalties with an initial “catch-up” adjustment through an interim final rulemaking (IFR) in 2016, and make subsequent annual adjustments for inflation, beginning in 2017. Agencies are required to publish the annual inflation adjustments in the
OMB Memorandum M-17-11 (Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015), which can be found at
BOEM is promulgating this 2017 inflation adjustment for civil penalties as a final rule pursuant to the provisions of the FCPIA of 2015 and OMB guidance. A proposed rule is not required because the FCPIA of 2015 states that agencies shall adjust civil monetary penalties “notwithstanding Section 553 of the Administrative Procedure Act.” (FCPIA of 2015 at sec. 4(b)(2)). Accordingly, Congress expressly exempted the annual inflation adjustments implemented pursuant to the FCPIA of 2015 from the pre-promulgation notice and comment requirements of the Administrative Procedure Act (APA), allowing them to be published as a final rule. This interpretation of the statute is confirmed by OMB Memorandum M-17-11. (OMB Memorandum M-17-11 at 3 (“This means that the public procedure the APA generally requires—notice, an opportunity for comment, and a delay in effective date—is not required for agencies to issue regulations implementing the annual adjustment.”)).
BOEM last adjusted the level of civil monetary penalties in BOEM regulations through an interim final rule (IFR), RIN 1010-AD95 [81 FR 43066], which was published on July 1, 2016, and became effective on August 1, 2016. The IFR included catch-up adjustments pursuant to the requirements of the FCPIA of 2015 and OMB guidance through October 2015. Although the IFR was effective as of August 1, 2016, the IFR included a request for public comments. The public comment period closed on August 30, 2016. BOEM received no comments on the IFR and is therefore finalizing that rulemaking as originally implemented by the IFR. OMB Memorandum M-17-11 authorizes agencies to finalize their 2016 inflation adjustment IFR in the same rulemaking as the 2017 adjustments.
Under the FCPIA of 2015 and the guidance provided in OMB Memorandum M-17-11, BOEM has identified applicable civil monetary penalties and calculated the necessary inflation adjustments. The 2016 adjustments were based upon the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for the month of October in the calendar year of the previous adjustment (or in the year of establishment, if subsequent adjustments were made pursuant to the FCPIA of 1990) and the October 2015 CPI-U. The 2017 adjustments are based on the percent change between the October CPI-U preceding the date of the adjustment, and the prior year's October CPI-U. Consistent with the OMB Memorandum M-17-11, BOEM divided the October 2016 CPI-U by the October 2015 CPI-U (241.729/237.838). This resulted in a multiplying factor of 1.01636.
For 2017, OCSLA and the FCPIA of 2015 require that BOEM adjust the OCSLA maximum civil penalty amount.
For 2017, the FCPIA of 2015 requires that BOEM adjust the OPA maximum civil penalty amount. The statutory OPA maximum civil penalty amount ($44,539) was multiplied by the multiplying factor (44,539 × 1.01636 = $45,267.66). The FCPIA of 2015 requires that the OPA maximum civil penalty amount be rounded to the nearest $1.00 at the end of the calculation process. Accordingly, the adjusted OPA maximum civil penalty is $45,268.
The adjusted penalty levels shall take effect immediately upon the effective date of the adjustment. Pursuant to the FCPIA of 2015, the increase in the OCSLA and OPA maximum civil penalty amounts apply to civil penalties assessed after the date the increase takes effect, even if the associated violation(s) predates such increase. Consistent with the provisions of the OCSLA, OPA and the FCPIA of 2015, this rule adjusts the following maximum civil monetary penalties per day per violation:
Executive Order (E.O.) 12866 provides that the Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget (OMB) will review all significant rules. OIRA has determined that this rule is not significant. (
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the nation's regulatory system to reduce uncertainty and to promote predictability and the use of the best, most innovative, and least burdensome tools for achieving regulatory ends. E.O. 13563 directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. We have developed this rule in a manner consistent with these requirements.
The Regulatory Flexibility Act (RFA) requires an agency to prepare a regulatory flexibility analysis for all rules unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency is required to first publish a proposed rule.
This rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. This rule:
(a) Will not have an annual effect on the economy of $100 million or more;
(b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; and
(c) Will not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises.
This rule does not impose an unfunded mandate on state, local, or tribal governments, or the private sector, of more than $100 million per year. The rule does not have a significant or unique effect on state, local, or tribal governments or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531
This rule does not effect a taking of private property or otherwise have takings implications under E.O. 12630. Therefore, a takings implication assessment is not required.
Under the criteria in section 1 of E.O. 13132, this rule does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement. Therefore, a federalism summary impact statement is not required.
This rule complies with the requirements of E.O. 12988. Specifically, this rule:
(a) Meets the criteria of section 3(a) requiring that all regulations be reviewed to eliminate errors and ambiguity and be written to minimize litigation; and
(b) Meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards.
The Department of the Interior strives to strengthen its government-to-government relationship with Indian tribes through a commitment to consultation with Indian tribes and recognition of their right to self-governance and tribal sovereignty. We have evaluated this rule under the Department of the Interior's consultation policy, under Departmental Manual Part 512, Chapters 4 and 5, and under the criteria in E.O. 13175. We have determined that it has no substantial direct effects on Federally-recognized Indian tribes or Alaska Native Claims Settlement Act (ANCSA) Corporations, and that consultation under the Department of the Interior's tribal and ANCSA consultation policies is not required.
This rule does not contain information collection requirements, and a submission to the OMB under the Paperwork Reduction Act (44 U.S.C. 3501
This rule does not constitute a major Federal action significantly affecting the quality of the human environment. A detailed statement under the National Environmental Policy Act of 1969 (NEPA) is not required because the rule is covered by a categorical exclusion (
This rule is not a significant energy action under the definition in E.O. 13211. Therefore, a Statement of Energy Effects is not required.
Administrative practice and procedure, Continental shelf, Environmental impact statements, Environmental protection, Federal lands, Government contracts, Investigations, Mineral resources, Oil and gas exploration, Outer continental shelf, Penalties, Pipelines, Reporting and recordkeeping requirements, Rights-of-way, Reporting and recordkeeping requirements, Sulphur.
Administrative practice and procedure, Continental shelf, Financial responsibility, Outer continental shelf, Oil and gas exploration, Oil pollution, Liability, Limit of liability, Penalties, Pipelines, Reporting and recordkeeping requirements, Rights-of-way, Surety bonds, Treasury securities.
For the reasons stated in the preamble, the BOEM adopts as final the interim final rule amending 30 CFR parts 550 and 553, which was published at 81 FR 43066 on July 1, 2016, as a final rule with the following changes:
30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334.
The maximum civil penalty is $42,704 per day per violation.
33 U.S.C. 2704, 2716; E.O. 12777, as amended.
(a) If you fail to comply with the financial responsibility requirements of OPA at 33 U.S.C. 2716 or with the requirements of this part, then you may be liable for a civil penalty of up to $45,268 per COF per day of violation (that is, each day a COF is operated without acceptable evidence of OSFR).
Environmental Protection Agency (EPA).
Withdrawal of direct final rule.
Because the Environmental Protection Agency (EPA) received an adverse comment, we are withdrawing the direct final rule titled, “Revisions to Procedure 2—Quality Assurance Requirements for Particulate Matter Continuous Emission Monitoring Systems at Stationary Sources.”
Effective February 15, 2017, the EPA withdraws the direct final rule published at 81 FR 83160, on November 21, 2016.
Questions concerning this action should be addressed to Ms. Kimberly Garnett, U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards, Air Quality Assessment Division, Measurement Technology Group (E143-02), Research Triangle Park, NC 27711; telephone number: (919) 541-1158; fax number: (919) 541-0516; email address:
The direct final rule, “Revisions to Procedure 2—Quality Assurance Requirements for Particulate Matter Continuous Emission Monitoring Systems at Stationary Sources,” published on November 21, 2016, at 81 FR 83160. We stated in that direct final rule that if we received adverse comment by December 21, 2016, the direct final rule would not take effect and we would publish a timely withdrawal in the
Environmental protection, Administrative practice and procedure, Air pollution control, Continuous emission monitoring systems, Particulate matter, Procedures.
Environmental Protection Agency (EPA).
Notice of data availability (NODA).
The Environmental Protection Agency (EPA) is providing notice of emission allowance allocations to certain units under the new unit set-aside (NUSA) provisions of the Cross-
February 15, 2017.
Questions concerning this action should be addressed to Robert Miller at (202) 343-9077 or
Under the CSAPR FIPs, a portion of each state budget for each of the CSAPR trading programs is reserved as a NUSA from which allowances are allocated to eligible units through an annual one- or two-round process. EPA has described the CSAPR NUSA allocation process in five NODAs previously published in the
EPA received no objections to the preliminary lists of new units eligible for second-round 2016 NUSA allocations of CSAPR NO
As described in the December 9 NODA, any allowances remaining in the CSAPR NO
Under 40 CFR 97.412(b)(10), 97.612(b)(10), and 97.712(b)(10), any allowances remaining in the CSAPR NO
The final unit-by-unit data and allowance allocation calculations are set forth in Excel spreadsheets titled “CSAPR_NUSA_2016_NOx_Annual_2nd_Round_Final_Data_New_Units”, “CSAPR_NUSA_2016_SO2_2nd_Round_Final_Data_New_Units”, “CSAPR_NUSA_2016_NOx_Annual_2nd_Round_Final_Data_Existing_Units”, and “CSAPR_NUSA_2016_SO2_2nd_Round_Final_Data_Existing_Units”, available on EPA's Web site at
Pursuant to CSAPR's allowance recordation timing requirements, the allocated NUSA allowances will be recorded in sources' AMS accounts by February 15, 2017. EPA notes that an allocation or lack of allocation of allowances to a given unit does not constitute a determination that CSAPR does or does not apply to the unit. EPA also notes that NUSA allocations of CSAPR NO
40 CFR 97.411(b), 97.611(b), and 97.711(b).
Environmental Protection Agency (EPA).
Final rule.
This regulation establishes a tolerance for residues of thiamethoxam in or on bananas. Syngenta Crop Protection, LLC requested this tolerance under the Federal Food, Drug, and Cosmetic Act (FFDCA).
This regulation is effective February 15, 2017. Objections and requests for hearings must be received on or before April 17, 2017, and must be filed in accordance with the instructions provided in 40 CFR part 178 (see also Unit I.C. of the
The docket for this action, identified by docket identification (ID) number EPA-HQ-OPP-2015-0705, is available at
Michael Goodis, Registration Division (7505P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001; main telephone number: (703) 305-7090; email address:
You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. The following list of North American Industrial Classification System (NAICS) codes is not intended to be exhaustive, but rather provides a guide to help readers determine whether this document applies to them. Potentially affected entities may include:
• Crop production (NAICS code 111).
• Animal production (NAICS code 112).
• Food manufacturing (NAICS code 311).
• Pesticide manufacturing (NAICS code 32532).
You may access a frequently updated electronic version of EPA's tolerance regulations at 40 CFR part 180 through the Government Printing Office's e-CFR site at
Under FFDCA section 408(g), 21 U.S.C. 346a, any person may file an objection to any aspect of this regulation and may also request a hearing on those objections. You must file your objection or request a hearing on this regulation in accordance with the instructions provided in 40 CFR part 178. To ensure proper receipt by EPA, you must identify docket ID number EPA-HQ-OPP-2015-0705 in the subject line on the first page of your submission. All objections and requests for a hearing must be in writing, and must be received by the Hearing Clerk on or before April 17, 2017. Addresses for mail and hand delivery of objections and hearing requests are provided in 40 CFR 178.25(b).
In addition to filing an objection or hearing request with the Hearing Clerk as described in 40 CFR part 178, please submit a copy of the filing (excluding any Confidential Business Information (CBI)) for inclusion in the public docket. Information not marked confidential pursuant to 40 CFR part 2 may be disclosed publicly by EPA without prior notice. Submit the non-CBI copy of your objection or hearing request, identified by docket ID number EPA-HQ-OPP-2015-0705, by one of the following methods:
•
•
•
In the
Based upon review of the data supporting the petition, EPA has modified the level at which the tolerance is being established. The reason for this change is explained in Unit IV.D.
Section 408(b)(2)(A)(i) of FFDCA allows EPA to establish a tolerance (the legal limit for a pesticide chemical residue in or on a food) only if EPA determines that the tolerance is “safe.” Section 408(b)(2)(A)(ii) of FFDCA defines “safe” to mean that “there is a reasonable certainty that no harm will result from aggregate exposure to the pesticide chemical residue, including all anticipated dietary exposures and all other exposures for which there is reliable information.” This includes exposure through drinking water and in residential settings, but does not include occupational exposure. Section 408(b)(2)(C) of FFDCA requires EPA to give special consideration to exposure of infants and children to the pesticide chemical residue in establishing a tolerance and to “ensure that there is a reasonable certainty that no harm will result to infants and children from aggregate exposure to the pesticide chemical residue. . . .”
Tolerances for residues of thiamethoxam are listed in 40 CFR 180.565 and are expressed in terms of the combined residues of the insecticide thiamethoxam and its metabolite CGA-322704. Metabolite CGA-322704 is also the registered active ingredient clothianidin (tolerance listings in 40 CFR 180.586). Clothianidin (hereinafter referred to as CGA-322704) has a complete toxicological database and appears to have effects in mammals that are different from those of thiamethoxam. A separate risk assessment that addresses risks from CGA-322704 residues resulting from the direct application of CGA-322704 (clothianidin), as well as risks from residues of CGA-322704 coming from thiamethoxam uses has been conducted, and there are no risk estimates of concern as a result of the proposed tolerance for thiamethoxam residues in imported bananas. This risk assessment can be found at
Consistent with FFDCA section 408(b)(2)(D), and the factors specified in FFDCA section 408(b)(2)(D), EPA has reviewed the available scientific data and other relevant information in support of this action. EPA has sufficient data to assess the hazards of and to make a determination on aggregate exposure for thiamethoxam including exposure resulting from the tolerances established by this action. EPA's assessment of exposures and risks associated with thiamethoxam follows.
EPA has evaluated the available toxicity data and considered its validity, completeness, and reliability as well as the relationship of the results of the studies to human risk. EPA has also considered available information concerning the variability of the sensitivities of major identifiable subgroups of consumers, including infants and children.
In mammals, toxicological effects are seen primarily in the liver, kidney, testes, and blood cellular system. In addition, developmental neurological effects were observed in rats. These developmental effects are being used to assess risks associated with acute exposures to thiamethoxam, and the liver and testicular effects are the basis for assessing longer-term exposures.
There is no indication of quantitative or qualitative susceptibility in the developmental toxicity studies. There is evidence of quantitative susceptibility in the developmental neurotoxicity study and both two-generation reproductive studies. However, clear no observed adverse effects levels (NOAELs) were identified for the susceptibility in the 2-generation reproduction and developmental neurotoxicity (DNT) studies and the endpoints and doses chosen for risk assessment are protective of the susceptibility observed in these studies.
Thiamethoxam is classified as “not likely to be carcinogenic to humans” at levels below which certain amounts of metabolites are produced. The liver tumors that were observed in the mouse have been demonstrated to be a result of a non-genotoxic mode of action dependent on sufficient amounts of a hepatotoxic metabolite being produced. Although humans are qualitatively capable of producing the active metabolite, thiamethoxam is unlikely to pose a cancer risk to humans unless sufficient amounts of metabolites are persistently formed to drive a carcinogenic response. The chronic endpoint selected for regulating exposure to thiamethoxam is sufficiently protective of the key events (perturbation of liver metabolism, hepatotoxicity/regenerative proliferation) in the animal mode of action. At those levels, the Agency does not expect sufficient generation of the necessary metabolites to elicit a carcinogenic response; therefore, separate quantification of carcinogenic potential is not required.
Specific information on the studies received and the nature of the adverse effects caused by thiamethoxam as well as the NOAEL and the lowest-observed-adverse-effect-level (LOAEL) from the toxicity studies can be found at
Once a pesticide's toxicological profile is determined, EPA identifies toxicological points of departure (POD) and levels of concern to use in evaluating the risk posed by human exposure to the pesticide. For hazards that have a threshold below which there is no appreciable risk, the toxicological POD is used as the basis for derivation of reference values for risk assessment. PODs are developed based on a careful analysis of the doses in each toxicological study to determine the dose at which no adverse effects are observed (the NOAEL) and the lowest dose at which adverse effects of concern are identified (the LOAEL). Uncertainty/safety factors are used in conjunction with the POD to calculate a safe exposure level—generally referred to as a population-adjusted dose (PAD) or a reference dose (RfD)—and a safe margin of exposure (MOE). For non-threshold risks, the Agency assumes that any amount of exposure will lead to some degree of risk. Thus, the Agency estimates risk in terms of the probability of an occurrence of the adverse effect expected in a lifetime. For more information on the general principles EPA uses in risk characterization and a complete description of the risk assessment process, see
A summary of the toxicological endpoints for thiamethoxam used for human risk assessment is shown in Table 1 of this unit.
1.
i.
Such effects were identified for thiamethoxam. In estimating acute dietary exposure, EPA used food consumption information from the United States Department of Agriculture's (USDA) National Health and Nutrition Examination Survey, What We Eat in America (NHANES/WWEIA). As to residue levels in food, EPA assumed tolerance level residues and 100 percent crop treated (PCT).
ii.
iii.
iv.
2.
Based on the Tier 1 Rice Model and Screening Concentration in Ground Water (SCI-GROW) models, the estimated drinking water concentrations (EDWCs) of thiamethoxam for acute exposures are estimated to be 131.77 parts per billion (ppb) for surface water and 4.66 ppb for ground water and for chronic exposures are estimated to be 11.31 ppb for surface water and 4.66 ppb for ground water.
Modeled estimates of drinking water concentrations were directly entered into the dietary exposure model. For the acute dietary risk assessment, the water concentration value of 131.77 ppb was used to assess the contribution to drinking water. For the chronic dietary risk assessment, the water concentration of value 11.31 ppb was used to assess the contribution to drinking water.
3.
Thiamethoxam is currently registered for the following uses that could result in residential exposures: Turf and indoor environments (crack-and-crevice uses). EPA assessed residential exposure using the following assumptions: For residential handlers, short-term dermal and inhalation exposure is anticipated from both the lawn/turf and indoor crack-and-crevice uses. In terms of post application exposure, short-term dermal and incidental oral exposures are anticipated from both the lawn/turf and the crack-and-crevice uses. These exposures are expected from activities on turf such as playing, mowing, golfing, hand-to-mouth, object-to-mouth, incidental soil ingestion, and from contacting treated carpets. Post application inhalation exposure is also anticipated from indoor crack-and-crevice applications. The Agency selected only the most conservative, or worst case, residential adult and child scenarios to be included in the aggregate estimates, based on the lowest overall MOE (
4.
Thiamethoxam is a member of the neonicotinoid class of pesticides and produces, as a metabolite, another neonicotinoid, CGA-322704. Structural similarities or common effects do not constitute a common mechanism of toxicity. Evidence is needed to establish that the chemicals operate by the same, or essentially the same, sequence of major biochemical events (EPA, 2002). Although CGA-322704 and thiamethoxam bind selectively to insect nicotinic acetylcholine receptors (nAChR), the specific binding site(s)/receptor(s) for CGA-322704, thiamethoxam and the other neonicotinoids are unknown at this time. Additionally, the commonality of the binding activity itself is uncertain, as preliminary evidence suggests that CGA-322704 operates by direct competitive inhibition, while thiamethoxam is a non-competitive inhibitor. Furthermore, even if future research shows that neonicotinoids share a common binding activity to a specific site on insect nAChRs, there is not necessarily a relationship between this pesticidal action and a mechanism of toxicity in mammals. Structural variations between the insect and mammalian nAChRs produce quantitative differences in the binding affinity of the neonicotinoids towards these receptors which, in turn, confers the notably greater selective toxicity of this class towards insects, including aphids and leafhoppers, compared to mammals. While the insecticidal action of the neonicotinoids is neurotoxic, the most sensitive regulatory endpoint for CGA-322704 is based on unrelated effects in mammals, including changes in body and thymus weights, delays in sexual maturation, and still births. Additionally, the most sensitive toxicological effect in mammals differs across the neonicotinoids (such as testicular tubular atrophy with thiamethoxam, and mineralized particles in thyroid colloid with imidacloprid). Therefore, unlike other pesticides for which EPA has followed a cumulative risk approach based on a common mechanism of toxicity, EPA has not made a common mechanism of toxicity finding as to thiamethoxam and any other substances and thiamethoxam does not appear to produce a toxic metabolite produced by other substances. For the purposes of this tolerance action, therefore, EPA has not assumed that thiamethoxam has a common mechanism of toxicity with other substances. For information regarding EPA's efforts to determine which chemicals have a common mechanism of toxicity, and to evaluate the cumulative effects of such chemicals, see the policy statements concerning common mechanism determinations, and procedures for cumulating effects from substances found to have a common mechanism, released by OPP on EPA's Web site at
1.
2.
3.
i. The toxicity database for thiamethoxam is complete.
ii. Evidence of neurotoxicity was seen in the acute and developmental neurotoxicity studies. However, there is a low degree of concern for the potential neurotoxic effects of thiamethoxam since clear NOAELs were identified for the neurotoxic effects, the neurotoxic effects were not the most sensitive endpoint in the toxicity database and the endpoints chosen for risk assessment are protective of any potential neurotoxicity.
iii. There is no evidence that thiamethoxam results in increased susceptibility in
iv. There are no residual uncertainties identified in the exposure databases. The dietary exposure assessments are based on high-end residue levels and processing factors, both of which account for parent and metabolites of concern, and the assumption of 100 PCT for all registered crops. EPA made conservative (protective) assumptions in the ground and surface water modeling used to assess exposure to thiamethoxam in drinking water. EPA used similarly conservative assumptions to assess post-application exposure of children as well as incidental oral exposure of toddlers. These assessments will not underestimate the exposure and risks posed by thiamethoxam.
EPA determines whether acute and chronic dietary pesticide exposures are safe by comparing aggregate exposure estimates to the acute PAD (aPAD) and chronic PAD (cPAD). For linear cancer risks, EPA calculates the lifetime probability of acquiring cancer given the estimated aggregate exposure. Short-, intermediate-, and chronic-term risks are evaluated by comparing the estimated aggregate food, water, and residential exposure to the appropriate PODs to ensure that an adequate MOE exists.
1.
2.
3.
Thiamethoxam is currently registered for uses that could result in short-term residential exposure, and the Agency has determined that it is appropriate to aggregate chronic exposure through food and water with short-term residential exposures to thiamethoxam.
Using the exposure assumptions described in this unit for short-term exposures, EPA has concluded the combined short-term food, water, and residential exposures result in aggregate MOEs of 500 for adults and 580 for children 1<2 years old. Because EPA's level of concern for thiamethoxam is a MOE of 100 or below, these MOEs are not of concern.
4.
An intermediate-term adverse effect was identified; however, thiamethoxam is not registered for any use patterns that would result in intermediate-term residential exposure. Intermediate-term risk is assessed based on intermediate-term residential exposure plus chronic dietary exposure. Because there is no intermediate-term residential exposure and chronic dietary exposure has already been assessed under the appropriately protective cPAD (which is at least as protective as the POD used to assess intermediate-term risk), no further assessment of intermediate-term risk is necessary, and EPA relies on the chronic dietary risk assessment for evaluating intermediate-term risk for thiamethoxam.
5.
6.
Adequate enforcement methodology (high-performance liquid chromatography (HPLC)) is available to enforce the tolerance expression.
The method may be requested from: Chief, Analytical Chemistry Branch, Environmental Science Center, 701 Mapes Rd., Ft. Meade, MD 20755-5350; telephone number: (410) 305-2905; email address:
In making its tolerance decisions, EPA seeks to harmonize U.S. tolerances with international standards whenever possible, consistent with U.S. food safety standards and agricultural practices. EPA considers the international maximum residue limits (MRLs) established by the Codex Alimentarius Commission (Codex), as required by FFDCA section 408(b)(4). The Codex Alimentarius is a joint United Nations Food and Agriculture Organization/World Health Organization food standards program, and it is recognized as an international food safety standards-setting organization in trade agreements to which the United States is a party. EPA may establish a tolerance that is different from a Codex MRL; however, FFDCA section 408(b)(4) requires that EPA explain the reasons for departing from the Codex level.
Codex has established an MRL for thiamethoxam in bananas at 0.02 mg/kg which is different than the U.S. tolerance of 0.3 ppm. At this time, the Codex and EPA residue definitions are different (Codex's MRL is for the parent compound, thiamethoxam only, while EPA's is thiamethoxam plus metabolite CGA-322704); therefore, it is not possible to harmonize with the Codex MRL.
Three comments were received in response to the Notice of Filing. One
The submitted banana field trial data support a tolerance of 0.03 ppm, instead of the petitioned-for tolerance of 0.04 ppm, in whole bananas. The petitioner used a combined limit of quantitation (LOQ) different from that used by the Agency for the input dataset of the Organization for Economic Cooperation and Development (OECD) tolerance calculation procedure. The combined LOQ used by EPA resulted in a recommended tolerance of 0.03 ppm.
Therefore, a tolerance is established for residues of thiamethoxam, including its metabolites and degradates, in or on banana at 0.03 ppm.
This action establishes a tolerance under FFDCA section 408(d) in response to a petition submitted to the Agency. The Office of Management and Budget (OMB) has exempted these types of actions from review under Executive Order 12866, entitled “Regulatory Planning and Review” (58 FR 51735, October 4, 1993). Because this action has been exempted from review under Executive Order 12866, this action is not subject to Executive Order 13211, entitled “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001) or Executive Order 13045, entitled “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997). This action does not contain any information collections subject to OMB approval under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501
Since tolerances and exemptions that are established on the basis of a petition under FFDCA section 408(d), such as the tolerance in this final rule, do not require the issuance of a proposed rule, the requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601
This action directly regulates growers, food processors, food handlers, and food retailers, not States or tribes, nor does this action alter the relationships or distribution of power and responsibilities established by Congress in the preemption provisions of FFDCA section 408(n)(4). As such, the Agency has determined that this action will not have a substantial direct effect on States or tribal governments, on the relationship between the national government and the States or tribal governments, or on the distribution of power and responsibilities among the various levels of government or between the Federal Government and Indian tribes. Thus, the Agency has determined that Executive Order 13132, entitled “Federalism” (64 FR 43255, August 10, 1999) and Executive Order 13175, entitled “Consultation and Coordination with Indian Tribal Governments” (65 FR 67249, November 9, 2000) do not apply to this action. In addition, this action does not impose any enforceable duty or contain any unfunded mandate as described under Title II of the Unfunded Mandates Reform Act (UMRA) (2 U.S.C. 1501
This action does not involve any technical standards that would require Agency consideration of voluntary consensus standards pursuant to section 12(d) of the National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note).
Pursuant to the Congressional Review Act (5 U.S.C. 801
Environmental protection, Administrative practice and procedure, Agricultural commodities, Pesticides and pests, Reporting and recordkeeping requirements.
Therefore, 40 CFR chapter I is amended as follows:
21 U.S.C. 321(q), 346a and 371.
(a) * * *
Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS).
Final rule; delay of effective date.
The Centers for Disease Control and Prevention (CDC) in the Department of Health and Human Services (HHS) announces a change in the effective date of the final rule titled “Control of Communicable Diseases” that was published on January 19, 2017. This action is undertaken in accordance with the memorandum of January 20,
The effective date of the final rule amending 42 CFR parts 70 and 71 published January 19, 2017 (82 FR 6890) is delayed to March 21, 2017.
Martin S. Cetron, M.D., Director, Division of Global Migration and Quarantine, Centers for Disease Control and Prevention, 1600 Clifton Road NE., MS E-03, Atlanta, Georgia, 30329. Phone: (404) 498-1600. Email:
On January 19, 2017, HHS/CDC published a final rule titled “Control of Communicable Diseases” (82 FR 6890) with an effective date of February 21, 2017. With this document, HHS/CDC announces a new effective date for this final rule of March 21, 2017.
HHS/CDC bases this action on the Presidential directive expressed in the memorandum of January 20, 2017 from the Assistant to the President and Chief of Staff entitled “Regulatory Freeze Pending Review.” This memorandum directed the heads of Executive Departments and Agencies to temporarily postpone for sixty days from the date of the memorandum the effective dates of all regulations that had been published in the
Federal Maritime Commission.
Final rule.
The Commission is publishing its adjustments to inflation annually, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act). The 2015 Act requires that agencies adjust and publish their civil penalties by January 15th each year.
This rule is effective on February 15, 2017, and is applicable beginning January 15, 2017.
Tyler Wood, General Counsel, Federal Maritime Commission, 800 North Capitol Street NW., Room 1018, Washington, DC 20573, (202) 523-5740.
This rule adjusts the civil monetary penalties assessable by the Commission in accordance with the 2015 Act, which became effective on November 2, 2015. The 2015 Act further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), Public Law 101-410, 104 Stat. 890 (codified as amended at 28 U.S.C. 2461 note), in order to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect.
The 2015 Act requires agencies to adjust CMPs under their jurisdiction by January 15, 2017, based on changes in the consumer price index (CPI-U) using data from October in the previous calendar year. On December 16, 2016, Office of Management and Budget published guidance stating that the CPI-U multiplier for October 2016 is 1.01636.
Adjustments under the FCPIAA, as amended by the 2015 Act, are not subject to the procedural rulemaking requirements of the Administrative Procedure Act (APA) (5 U.S.C. 553), including the requirements for prior notice, an opportunity for comment, and a delay between the issuance of a final rule and its effective date.
The rule is not a “major rule” as defined by the Congressional Review Act, codified at 5 U.S.C. 801
The Regulatory Flexibility Act (codified as amended at 5 U.S.C. 601-612) provides that whenever an agency promulgates a final rule after being required to publish a notice of proposed rulemaking under the APA (5 U.S.C. 553), the agency must prepare and make available a final regulatory flexibility analysis (FRFA) describing the impact of the rule on small entities. 5 U.S.C. 604. As indicated above, this final rule is not subject to the APA's notice and comment requirements, and the Commission is not required to prepare an FRFA in conjunction with this final rule.
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) requires an agency to seek and receive approval from the Office of Management and Budget (OMB) before collecting information from the public. 44 U.S.C. 3507. The agency must submit collections of information in rules to OMB in conjunction with the publication of the notice of proposed rulemaking. 5 CFR 1320.11. This final rule does not contain any collections of information, as defined by 44 U.S.C. 3502(3) and 5 CFR 1320.3(c).
The Commission assigns a regulation identifier number (RIN) to each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions (Unified Agenda). The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. You may use the RIN contained in the heading at the beginning of this document to find this action in the Unified Agenda, available at
Administrative practice and procedure, Penalties.
For the reasons stated in the preamble, Part 506 of title 46 of the Code of Federal Regulations is amended as follows:
28 U.S.C. 2461.
(d)
By the Commission.
Federal Aviation Administration (FAA), DOT.
Notice of proposed rulemaking (NPRM).
We propose to supersede Airworthiness Directive (AD) 2015-23-13, for all Airbus Model A318, A319, A320, and A321 series airplanes. AD 2015-23-13 currently requires modification of the pin programming of the flight warning computer (FWC) to activate the stop rudder input warning (SRIW) logic; and an inspection to determine the part numbers of the FWC and the flight augmentation computer (FAC), and replacement of the FWC and FAC if necessary. Since we issued AD 2015-23-13, we have determined that, for certain airplanes, additional modification instructions must be accomplished to allow installation of the minimum FWC and FAC configuration compatible with SRIW activation. This proposed AD would, for certain airplanes, also require accomplishment of additional modification instructions to install the minimum FWC and FAC configuration compatible with SRIW activation. We are proposing this AD to address the unsafe condition on these products.
We must receive comments on this proposed AD by April 3, 2017.
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 NPRM, 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
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.
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 November 9, 2015, we issued AD 2015-23-13, Amendment 39-18330 (80 FR 73099, November 24, 2015) (“AD 2015-23-13”), for all Airbus Model A318, A319, A320, and A321 series airplanes. AD 2015-23-13 was prompted by a determination that, in specific flight conditions, the allowable load limits on the vertical tail plane could be reached and possibly exceeded. Exceeding allowable load limits could result in detachment of the vertical tail plane. AD 2015-23-13 requires modification of the pin programming of the FWC to activate the SRIW logic; an inspection to determine the part numbers of the FWC and the FAC, and replacement of the FWC and FAC if necessary. We issued AD 2015-23-13 to prevent detachment of the vertical tail plane and consequent loss of control of the airplane.
Since we issued AD 2015-23-13, we have determined that, for certain airplanes, additional modification instructions must be accomplished to allow installation of the minimum FWC and FAC configuration compatible with SRIW activation.
The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Union, has issued EASA Airworthiness Directive 2016-0132, dated July 5, 2016; corrected July 20, 2016 (referred to after this as the Mandatory Continuing Airworthiness Information, or “the MCAI”), to correct an unsafe condition for all Airbus Model A318, A319, A320, and A321 series airplanes. The MCAI states:
During design reviews that were conducted following safety recommendations related to in-service incidents and one accident on another aircraft type, it has been determined that, in specific flight conditions, the allowable load limits on the vertical tail
This condition, if not corrected, could lead to in-flight detachment of the vertical tail plane, possibly resulting in loss of control of the aeroplane.
To address this unsafe condition, Airbus developed modifications within the flight augmentation computer (FAC) to reduce the vertical tail plane stress and to activate a conditional aural warning within the flight warning computer (FWC) to further protect against pilot induced rudder doublets.
Consequently, EASA issued AD 2014-0217 (later revised) [which corresponds to FAA AD 2015-23-13] to require installation and activation of the stop rudder input warning (SRIW) logic. In addition, that [EASA] AD required upgrades of the FAC and FWC, to introduce the SRIW logic and SRIW aural capability, respectively. After modification, the [EASA] AD prohibited (re)installation of certain Part Number (P/N) FWC and FAC.
Since EASA AD 2014-0217R1 was issued, Airbus made available additional modification instructions that, for certain aeroplanes, must be accomplished to allow installation of the minimum FWC and FAC configuration compatible with SRIW activation.
For the reasons described above, this [EASA] AD retains the requirements of EASA AD 2014-0217R1, which is superseded, and includes reference to modification instructions, which must be accomplished on certain aeroplanes.
This [EASA] AD is republished to remove a typographical error in Appendix 1 [of the EASA AD].
You may examine the MCAI in the AD docket on the Internet at
Airbus has issued Service Bulletin A320-22-1480, Revision 03, dated October 13, 2015. This service information describes procedures for modifying the pin programming to activate the SRIW logic.
Airbus has also issued the following service information. The service information describes procedures for replacing FWCs and FACs. These documents are distinct since they apply to different airplane configurations and software packages.
• Airbus Service Bulletin A320-22-1375, dated January 15, 2014.
• Airbus Service Bulletin A320-22-1427, Revision 05, including Appendix 01, dated November 24, 2014.
• Airbus Service Bulletin A320-22-1447, Revision 03, dated April 21, 2015.
• Airbus Service Bulletin A320-22-1454, dated February 12, 2014.
• Airbus Service Bulletin A320-22-1461, Revision 07, including Appendix 01, dated March 23, 2015.
• Airbus Service Bulletin A320-22-1502, dated November 14, 2014.
• Airbus Service Bulletin A320-22-1539, Revision 01, dated February 24, 2016.
• Airbus Service Bulletin A320-22-1553, dated March 21, 2016.
• Airbus Service Bulletin A320-22-1554, dated April 19, 2016.
• Airbus Service Bulletin A320-31-1414, Revision 03, dated September 15, 2014.
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 1,032 airplanes of U.S. registry.
The actions required by AD 2015-23-13, and retained in this proposed AD take about 3 work-hours per product, at an average labor rate of $85 per work-hour. Based on these figures, the estimated cost of the actions that are required by AD 2015-23-13 is $255 per product.
We also estimate that it would take about 3 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 $263,160, or $255 per product.
In addition, we estimate that any necessary follow-on actions will take about 6 work-hours (3 work-hours for an FWC and 3 work-hours for an FAC), and require parts costing $88,000 (FAC), for a cost of $88,510 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 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 April 3, 2017.
This AD replaces AD 2015-23-13, Amendment 39-18330 (80 FR 73099, November 24, 2015) (“AD 2015-23-13”).
This AD applies to the airplanes identified in paragraphs (c)(1) through (c)(4) of this AD, certificated in any category, all manufacturer serial numbers.
(1) Airbus Model A318-111, -112, -121, and -122 airplanes.
(2) Airbus Model A319-111, -112, -113, -114, -115, -131, -132, and -133 airplanes.
(3) Airbus Model A320-211, -212, -214, -231, -232, and -233 airplanes.
(4) Airbus Model A321-111, -112, -131, -211, -212, -213, -231, and -232 airplanes.
Air Transport Association (ATA) of America Code 22, Auto Flight; 31, Instruments.
This AD was prompted by a determination that, in specific flight conditions, the allowable load limits on the vertical tail plane could be reached and possibly exceeded. Exceeding allowable load limits could result in detachment of the vertical tail plane. We are issuing this AD to prevent detachment of the vertical tail plane and consequent loss of control of the airplane.
Comply with this AD within the compliance times specified, unless already done.
This paragraph restates the requirements of paragraph (g) of AD 2015-23-13, with new service information. Within 48 months after December 29, 2015 (the effective date of AD 2015-23-13), modify the pin programming to activate the stop rudder input warning (SRIW) logic, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A320-22-1480, Revision 02, dated March 30, 2015; or Airbus Service Bulletin A320-22-1480, Revision 03, dated October 13, 2015. As of the effective date of this AD, use only Airbus Service Bulletin A320-22-1480, Revision 03, dated October 13, 2015.
This paragraph restates the requirements of paragraph (h) of AD 2015-23-13, with new replacement part numbers. Prior to or concurrently with the actions required by paragraph (g) of this AD: Inspect the part numbers of the FWC and the FAC installed on the airplane. If any FWC or FAC having a part number identified in paragraph (h)(1) or (h)(2) of this AD, as applicable, is installed on an airplane, prior to or concurrently with the actions required by paragraph (g) of this AD, replace all affected FWCs and FACs with a unit having a part number identified in figure 1 to paragraph (h)(3) of this AD, in accordance with the Accomplishment Instructions of the applicable Airbus service information specified in paragraph (i) of this AD. As of the effective date of this AD, use only figure 1 to paragraph (h)(3) of this AD to identify the replacement part numbers.
(1) Paragraphs (h)(1)(i) through (h)(1)(xvii) of this AD identify FWCs having part numbers that are non-compatible with the SRIW activation required by paragraph (g) of this AD.
(i) 350E017238484 (H1-D1).
(ii) 350E053020303 (H2-E3).
(iii) 350E016187171 (C5).
(iv) 350E053020404 (H2-E4).
(v) 350E017248685 (H1-D2).
(vi) 350E053020606 (H2-F2).
(vii) 350E017251414 (H1-E1).
(viii) 350E053020707 (H2-F3).
(ix) 350E017271616 (H1-E2).
(x) 350E053021010 (H2-F3P).
(xi) 350E018291818 (H1-E3CJ).
(xii) 350E053020808 (H2-F4).
(xiii) 350E018301919 (H1-E3P).
(xiv) 350E053020909 (H2-F5).
(xv) 350E018312020 (H1-E3Q).
(xvi) 350E053021111 (H2-F6).
(xvii) 350E053020202 (H2-E2).
(2) Paragraphs (h)(2)(i) through (h)(2)(xxxiv) of this AD identify FACs having part numbers that are non-compatible with the SRIW activation required by paragraph (g) of this AD.
(i) B397AAM0202.
(ii) B397BAM0101.
(iii) B397BAM0512.
(iv) B397AAM0301.
(v) B397BAM0202.
(vi) B397BAM0513.
(vii) B397AAM0302.
(viii) B397BAM0203.
(ix) B397BAM0514.
(x) B397AAM0303.
(xi) B397BAM0305.
(xii) B397BAM0515.
(xiii) B397AAM0404.
(xiv) B397BAM0406.
(xv) B397BAM0616.
(xvi) B397AAM0405.
(xvii) B397BAM0407.
(xviii) B397BAM0617.
(xix) B397AAM0506.
(xx) B397BAM0507.
(xxi) B397BAM0618.
(xxii) B397AAM0507.
(xxiii) B397BAM0508.
(xxiv) B397BAM0619.
(xxv) B397AAM0508.
(xxvi) B397BAM0509.
(xxvii) B397BAM0620.
(xxviii) B397AAM0509.
(xxix) B397BAM0510.
(xxx) B397CAM0101.
(xxxi) B397AAM0510.
(xxxii) B397BAM0511.
(xxxiii) B397CAM0102.
(xxxiv) Soft P/N G2856AAA01 installed on hard P/N C13206AA00.
(3) As of the effective date of this AD, figure 1 to paragraph (h)(3) of this AD identifies the FACs and FWCs having the part numbers that are compatible with SRIW activation required by paragraph (g) of this AD.
This paragraph restates the requirements of paragraph (i) of AD 2015-23-13, with new service information. Do the actions required by paragraph (h) of this AD in accordance with the Accomplishment Instructions of the applicable Airbus service information specified in paragraphs (i)(1) through (i)(10) of this AD.
(1) Airbus Service Bulletin A320-22-1375, dated January 15, 2014 (FAC 621 hard B).
(2) Airbus Service Bulletin A320-22-1427, Revision 05, including Appendix 01, dated November 24, 2014 (FAC 622 hard B).
(3) Airbus Service Bulletin A320-22-1447, Revision 03, dated April 21, 2015 (FAC CAA02 hard C).
(4) Airbus Service Bulletin A320-22-1454, dated February 12, 2014 (FAC CAA02).
(5) Airbus Service Bulletin A320-22-1461, Revision 07, including Appendix 01, dated March 23, 2015 (FAC 623 hard B).
(6) Airbus Service Bulletin A320-22-1502, dated November 14, 2014 (FAC CAA02).
(7) Airbus Service Bulletin A320-22-1539, Revision 01, dated February 24, 2016 (FAC CAA03).
(8) Airbus Service Bulletin A320-22-1553, dated March 21, 2016 (FAC B624).
(9) Airbus Service Bulletin A320-22-1554, dated April 19, 2016 (FAC CAA03).
(10) Airbus Service Bulletin A320-31-1414, Revision 03, dated September 15, 2014 (FWC H-F7).
This paragraph restates the requirements of paragraph (j) of AD 2015-23-13, with no changes. An airplane on which Airbus Modification 154473 has been embodied in production is excluded from the requirements of paragraphs (g) and (h) of this AD, provided that within 30 days after December 29, 2015 (the effective date of AD 2015-23-13), an inspection of the part numbers of the FWC and the FAC installed on the airplane is done to determine that no FWC having a part number listed in paragraph (h)(1) of this AD, and no FAC having a part number listed in paragraph (h)(2) of this AD, has been installed on that airplane since date of manufacture. A review of airplane maintenance records is acceptable
This paragraph restates the parts installation prohibitions specified in paragraph (k) of AD 2015-23-13, with new requirements.
(1) After modification of an airplane as required by paragraphs (g), (h), or (j) of this AD: Do not install on that airplane any FWC having a part number listed in paragraph (h)(1) of this AD or any FAC having a part number listed in paragraph (h)(2) of this AD.
(2) For an airplane that does not have a FWC having a part number listed in paragraph (h)(1) of this AD and does not have a FAC having a part number listed in paragraph (h)(2) of this AD: As of the effective date of this AD, do not install a FWC having a part number listed in paragraph (h)(1) of this AD or a FAC having a part number listed in paragraph (h)(2) of this AD.
This paragraph restates the requirements of paragraph (l) of AD 2015-23-13, with a different effective date. Installation of a version (part number) of the FWC or FAC approved after March 5, 2015 (the effective date of European Aviation Safety Agency (EASA) AD 2014-0217R1), is an approved method of compliance with the requirements of paragraph (h) or (j) of this AD, provided the requirements specified in paragraphs (l)(1) and (l)(2) of this AD are met.
(1) The version (part number) must be approved by the Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA; or EASA; or Airbus's EASA Design Organization Approval (DOA).
(2) The installation must be accomplished using a method approved by the Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA; or EASA; or Airbus's EASA DOA.
(1) This paragraph restates the credit provided by paragraph (m)(1) of AD 2015-23-13. This paragraph provides credit for actions required by paragraph (g) of this AD, if those actions were performed before December 29, 2015 (the effective date of AD 2015-23-13) using the service information specified in paragraphs (m)(1)(i) or (m)(1)(ii) of this AD.
(i) Airbus Service Bulletin A320-22-1480, dated July 9, 2014.
(ii) Airbus Service Bulletin A320-22-1480, Revision 01, dated February 6, 2015.
(2) This paragraph provides credit for actions required by paragraph (g) of this AD, if those actions were performed before the effective date of this AD using Airbus Service Bulletin A320-22-1480, Revision 02, dated March 30, 2015.
(3) This paragraph restates the credit provided by paragraph (m)(2) of AD 2015-23-13. This paragraph provides credit for actions required by paragraph (i) of this AD, if those actions were performed before December 29, 2015 (the effective date of AD 2015-23-13) using the applicable Airbus service information identified in paragraphs (m)(3)(i) through (m)(3)(xviii) of this AD.
(i) Airbus Service Bulletin A320-22-1427, dated January 25, 2013.
(ii) Airbus Service Bulletin A320-22-1427, Revision 01, dated July 30, 2013.
(iii) Airbus Service Bulletin A320-22-1427, Revision 02, dated October 14, 2013.
(iv) Airbus Service Bulletin A320-22-1427, Revision 03, dated November 8, 2013.
(v) Airbus Service Bulletin A320-22-1427, Revision 04, dated February 11, 2014.
(vi) Airbus Service Bulletin A320-22-1447, dated October 18, 2013.
(vii) Airbus Service Bulletin A320-22-1447, Revision 01, dated September 18, 2014.
(viii) Airbus Service Bulletin A320-22-1447, Revision 02, dated December 2, 2014.
(ix) Airbus Service Bulletin A320-22-1461, dated October 31, 2013.
(x) Airbus Service Bulletin A320-22-1461, Revision 01, dated February 25, 2014.
(xi) Airbus Service Bulletin A320-22-1461, Revision 02, dated April 30, 2014.
(xii) Airbus Service Bulletin A320-22-1461, Revision 03, dated July 17, 2014.
(xiii) Airbus Service Bulletin A320-22-1461, Revision 04, dated September 15, 2014.
(xiv) Airbus Service Bulletin A320-22-1461, Revision 05, dated November 13, 2014.
(xv) Airbus Service Bulletin A320-22-1461, Revision 06, dated January 21, 2015.
(xvi) Airbus Service Bulletin A320-31-1414, dated December 19, 2012.
(xvii) Airbus Service Bulletin A320-31-1414, Revision 01, dated March 21, 2013.
(xviii) Airbus Service Bulletin A320-31-1414, Revision 02, dated July 30, 2013.
(4) This paragraph provides credit for actions required by paragraph (i) of this AD, if those actions were performed before the effective date of this AD using Airbus Service Bulletin A320-22-1539, dated December 28, 2015.
The following provisions also apply to this AD:
(1)
(i) 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.
(ii) AMOCs approved previously for 2015-23-13, are approved as AMOCs for the corresponding provisions of this AD.
(2)
(3)
(1) Refer to Mandatory Continuing Airworthiness Information (MCAI) EASA Airworthiness Directive 2016-0132, dated July 5, 2016; corrected July 20, 2016; 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, 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
Environmental Protection Agency (EPA).
Notice of public hearing and extension of comment period.
The Environmental Protection Agency (EPA) is announcing that a public hearing will be held for the proposed action titled, “Response to December 9, 2013, Clean Air Act Section 176A Petition from Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island and Vermont,” which published in the
If you would like to speak at the public hearing, please contact Ms. Pamela Long, U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards (OAQPS), Air Quality Planning Division (C504-01), Research Triangle Park, NC 27711, telephone (919) 541-0641, fax number (919) 541-5509, email address
If you have questions concerning the January 19, 2017, proposed action, please contact Ms. Gobeail McKinley, U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards (OAQPS), Air Quality Planning Division (C539-01), Research Triangle Park, NC 27711, telephone (919) 541-5246, email address
The proposal for which the EPA is holding the public hearing was published in the
The public hearing will convene at 9:00 a.m. and end at 6:00 p.m. Eastern Time (ET) or at least two hours after the last registered speaker has spoken. The EPA will make every effort to accommodate all individuals interested in providing oral testimony. A lunch break is scheduled from 12:00 p.m. until 1:00 p.m. Please note that this hearing will be held at a U.S. government facility. Individuals planning to attend the hearing should be prepared to show valid picture identification to the security staff in order to gain access to the meeting room. The REAL ID Act, passed by Congress in 2005, established new requirements for entering federal facilities. These requirements took effect on July 21, 2014. If your driver's license is issued by Kentucky, Maine, Minnesota, Missouri, Montana, Oklahoma, Pennsylvania, South Carolina or the state of Washington, you must present an additional form of identification to enter the federal building where the public hearing will be held. Acceptable alternative forms of identification include: Federal employee badges, passports, enhanced driver's licenses and military identification cards. For additional information for the status of your state regarding REAL ID, go to
If you would like to present oral testimony at the hearing, please notify Ms. Pamela Long, U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards (OAQPS), Air Quality Planning Division (C504-01), Research Triangle Park, NC 27711, telephone (919) 541-0641, fax number (919) 541-5509, email address
Oral testimony will be limited to 5 minutes for each commenter. The EPA encourages commenters to provide the EPA with a copy of their oral testimony electronically (via email) or in hard copy form. The EPA will not provide audiovisual equipment for presentations unless we receive special requests in advance. Commenters should notify Ms. Long if they will need specific equipment. Commenters should also notify Ms. Long if they need specific translation services for non-English speaking commenters.
Prior to the hearing, the hearing schedule, including the list of speakers, will be posted on the EPA's Web site at:
The EPA has established a docket for the proposed action “Response to December 9, 2013, Clean Air Act Section 176A Petition from Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island and Vermont” under Docket ID No. EPA-HQ-OAR-2016-0596 (available at:
Environmental Protection Agency (EPA).
Proposed rule.
The Environmental Protection Agency (EPA) is proposing to approve a State Implementation Plan (SIP) revision submitted by the Ohio Environmental Protection Agency (Ohio EPA) on December 19, 2016, concerning the state's gasoline volatility standards in the Cincinnati and Dayton areas. The revision removes the 7.8 pounds per square inch (psi) low Reid Vapor Pressure (RVP) fuel requirements for the two areas as a component of the Ohio ozone SIP. The submittal also includes a section 110(l) demonstration as required by the Clean Air Act (CAA) that addresses emission impacts associated with the removal of the program.
Comments must be received on or before March 17, 2017.
Submit your comments, identified by Docket ID No. EPA-R05-OAR-2016-0781 at
Francisco J. Acevedo, Mobile Source Program Manager, Control Strategies Section, Air Programs Branch (AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6061,
Throughout this document whenever “we,” “us,” or “our” is used, we mean EPA. This supplementary information section is arranged as follows:
Under section 211(c) of the CAA, EPA promulgated regulations on March 22, 1989 (54 FR 11868) that set maximum limits for the RVP of gasoline sold during the regulatory control periods that were established on a state-by-state basis in the final rule. The regulatory control periods addressed the portion of the year when peak ozone concentrations were expected; which is during the summertime. These regulations constituted Phase I of a two phase nationwide program, which was designed to reduce the volatility of commercial gasoline during the high ozone season. Depending on the state and month, gasoline RVP was not to exceed 10.5 psi, 9.5 psi, or 9.0 psi. Phase I was applicable to calendar years 1989 through 1991. On June 11, 1990 (55 FR 23658), EPA promulgated more stringent volatility controls as Phase II of the volatility control program. These requirements established maximum RVP standards of 9.0 psi or 7.8 psi (depending on the state, the month, and the area's initial ozone attainment designation with respect to the 1-hour ozone national ambient air quality standards (NAAQS)). Phase II is applicable to 1992 and subsequent years.
The 1990 CAA Amendments established a new section, 211(h), to address fuel volatility. Section 211(h)(1) requires EPA to promulgate regulations making it unlawful to sell, offer for sale, dispense, supply, offer for supply, transport, or introduce into commerce gasoline with an RVP level in excess of 9.0 psi during the high ozone season. Section 211(h)(2) prohibits EPA from establishing a volatility standard more
On December 12, 1991 (56 FR 64704), EPA modified the Phase II volatility regulations to make them consistent with section 211(h). The modified regulations prohibited the sale of gasoline, beginning in 1992, with an RVP above 9.0 psi in all areas designated attainment for ozone. For areas designated as nonattainment, the regulations retained the original Phase II standards published on June 11, 1990 (55 FR 23658), which included the 7.8 psi ozone season limitation for certain areas. Under such requirements, the state of Ohio was required to meet a 9.0 psi RVP standard during the summer control period.
On April 15, 2004, the EPA designated 5 counties in the Cincinnati, Ohio area (Hamilton, Butler, Clinton, Warren and Clermont) and 4 counties in the Dayton, Ohio area (Clark, Greene, Miami, and Montgomery) as nonattainment for the 8-hour ozone standard. As part of Ohio's efforts to bring these areas into attainment of the ozone standard, the state adopted and implemented a broad range of ozone control measures for the areas including the implementation of a 7.8 psi RVP fuel program that was more stringent than the federal 9.0 psi RVP requirement. The Ohio EPA originally submitted a SIP revision to EPA on February 14, 2006 and October 6, 2006, for the purpose of establishing a gasoline RVP limit of 7.8 psi for gasoline sold in the Cincinnati and Dayton areas. The revision specifically applied to Butler, Clermont, Hamilton and Warren counties (Cincinnati area), and Clark, Greene, Miami and Montgomery counties (Dayton area) in Ohio. EPA approved Ohio's 7.8 psi RVP program on May 25, 2007 (72 FR 29269), including the program's legal authority and administrative requirements found in the Ohio Administrative Code (OAC) rules 3745-72-1 to 8.
On December 19, 2016, the Ohio EPA submitted a SIP revision requesting that EPA approve the removal of the 7.8 psi RVP fuel requirements under OAC 3745-72-1 to 8 from the Ohio ozone SIP before the beginning of the 2017 ozone control period.
To support the removal of the 7.8 psi RVP fuel program requirements from the SIP, the revision included amendments of OAC 3745-72-01 (Applicability), as effective on August 1, 2016; a summary of the Ohio-specific analyses using EPA's Motor Vehicle Emissions Simulator (MOVES) model to quantify the emissions impact associated with removing the 7.8 psi RVP fuel program in Cincinnati and Dayton; and a section 110(l) demonstration that includes offset emissions documentation.
EPA's primary consideration for determining the approvability of Ohio's request is whether this requested action complies with section 110(l) of the CAA.
Section 110(l) requires that a revision to the SIP not interfere with any applicable requirement concerning attainment and reasonable further progress (as defined in section 171), or any other applicable requirement of the CAA. EPA evaluates each section 110(l) noninterference demonstration on a case-by-case basis considering the circumstances of each SIP revision. EPA interprets 110(l) as applying to all NAAQS that are in effect, including those that have been promulgated but for which EPA has not yet made designations. The degree of the analysis focused on any particular NAAQS in a noninterference demonstration varies depending on the nature of the emissions associated with the proposed SIP revision.
In the absence of an attainment demonstration, to demonstrate no interference with any applicable NAAQS or requirement of the CAA under section 110(l), EPA believes it is appropriate to allow states to substitute equivalent emissions reductions to compensate for any change to a SIP-approved program, as long as actual emissions in the air are not increased. “Equivalent” emission reductions mean reductions which are equal to or greater than those reductions achieved by the control measure approved in the SIP. To show that compensating emission reductions are equivalent, modeling or adequate justification must be provided. The compensating, equivalent reductions must represent actual, new emissions reductions achieved in a contemporaneous time frame to the change of the existing SIP control measure, in order to preserve the status quo level of emissions in the air. In addition to being contemporaneous, the equivalent emissions reductions must also be permanent, enforceable, quantifiable, and surplus to be approved into the SIP.
In its December 19, 2016 SIP revision, the Ohio EPA includes a 110(l) demonstration that uses equivalent emission reductions to compensate for emission reduction losses resulting from the removal of the SIP approved 7.8 psi RVP fuel requirements in the Cincinnati and Dayton areas in Ohio. More specifically, the emission benefits associated with the 7.8 psi RVP fuel requirements will be substituted with equivalent or greater emissions reductions from facilities in the Cincinnati and Dayton areas which have permanently shut down or which have or will cease coal operations or convert from coal to natural gas due to U.S. EPA's Boiler Maximum Achievable Control Technology (MACT) regulations. These substitute emissions are quantifiable, permanent, surplus (
To determine the emissions impact of removing the 7.8 psi RVP program requirements in both areas, Ohio EPA used the latest version of EPA's MOVES model to conduct a series of emissions analysis. Ohio EPA's analysis focused on VOC and NO
Based on our review of the information provided, EPA finds that Ohio EPA used reasonable methods and the appropriate model in estimating the emissions effect of removing the 7.8 psi RVP fuel requirements. Ohio EPA determined that in 2017 the emissions increase resulting from removing the 7.8 psi RVP requirements would be 15.83 tons per year (tpy) of VOC and 16.33 tpy of NO
In the Dayton area, a portion of the emission reductions from the low RVP fuel requirements will be substituted with VOC emission reductions from two facilities which permanently shut down in 2016: Miami Valley Publishing Company (Facility ID 0829060354), which permanently shut down on March 29, 2016; and National Oilwell Varco (Facility ID 0812100350), which permanently shut down all sources
For the remaining reductions needed to substitute for the low RVP requirements, Ohio EPA will be substituting NO
Applying these factors, 40.50 tpy of NO
In the Cincinnati area, the 7.8 psi low RVP fuel requirements will be substituted with emission reductions at the MillerCoors LLC facility (Facility ID 1409000353) resulting from the shutdown of coal/gas fired boilers and installation of new natural gas fired boilers due to the Boiler MACT regulations. The relevant emissions units are B001, B002, B010 and B011. B001 and B002 coal/gas boilers were permanently shut down on April 1, 2016. Federally-enforceable permits prior to the shutdown include NO
As indicated above, 40.50 tpy of NO
In the Dayton area, the remaining emission reductions to be replaced will be substituted with emission reductions at the Wright-Patterson Air Force Base (Facility ID 0829700441) facility resulting from shutdowns and conversions from coal to natural gas due to compliance with Boiler MACT regulations. The relevant emission units are B606, B607, and B608. Coal boiler B606 was permanently shut down on June 7, 2016. Coal boilers B607 and B608 will be converted to natural gas by January 31, 2017 due to Boiler MACT. No changes are anticipated for an existing natural gas boiler, B609, which is included in Ohio EPA's analysis only because it is part of the emissions unit group and has combined emission limitations with the converted units (B607 and B608). Federally-enforceable permits prior to the shutdown/conversions include NO
The amount of reductions due to shutdown/conversion to natural gas was calculated as the difference between historical actual emissions and projected emissions from the converted coal boilers. NO
As indicated above, 21.72 tpy of NO
These substitute emissions from both MillerCoors and Wright-Patterson Air Force Base facilities are from permanent and enforceable shutdowns and conversions to natural gas. It should be noted that a facility which has notified Ohio EPA of a permanent shut down cannot resume operations without being considered a new facility and being subject to the new source review (NSR) requirements. Further, these conversions to natural gas were undertaken as the facility's chosen option to comply with Boiler MACT regulations. Conversion back to coal would be impractical, if not impossible, as the facility would still be required to comply with Boiler MACT regulations. In addition, the units are no longer permitted to burn coal and should the facility desire to burn coal again, the units would have to undergo NSR and these retired credits would not be available to the facility (or any other facility) for netting or offset purposes in the future.
The Boiler MACT regulations established emission standards for control of mercury, hydrogen chloride, particulate matter (as a surrogate for non-mercury metals), and carbon monoxide (as a surrogate for organic hazardous emissions) from coal-fired, biomass-fired, and liquid-fired major source boilers based on the maximum achievable control technology. The boiler MACT standards will also result in NO
These reductions are also surplus in that they were not previously relied on for credit toward attainment or maintenance purposes. Ohio EPA will ensure these reductions are permanently retired and cannot be relied on for future CAA requirements. Ohio EPA maintains a database of all reductions used for the purpose of CAA 110(l) demonstrations to ensure they cannot be used again. These reductions will be entered into and tracked within this database.
As demonstrated above, Ohio EPA has calculated that more than adequate surplus emission reductions are available to offset the cessation of the low RVP fuel requirements in the Cincinnati and Dayton areas. Based on Ohio EPA's calculations, the emissions increase in the Cincinnati area due to cessation of the low RVP program is 16.33 tpy NO
Ohio EPA is not permanently retiring all of the available emission reductions but only those to offset removal of the 7.8 psi RVP fuel requirements as outlined in this action. Upon approval of this SIP revision, 3.51 tpy of VOC from the Miami Valley Publishing Company facility, 4.86 tpy of VOC from the National Oilwell Varco facility, 40.50 tpy of NO
Based on an evaluation of Ohio EPA's 110(l) demonstration, EPA believes that the removal of the 7.8 psi low RVP fuel program requirements in the Cincinnati and Dayton areas do not interfere with Ohio's ability to demonstrate compliance with the 8-hour ozone NAAQS in both areas. This is based on the use of permanent, enforceable, contemporaneous, surplus emissions reductions achieved from facilities in the Cincinnati and Dayton areas that have permanently shut down or which have or will convert from coal to natural gas as previously discussed.
EPA also examined whether the removal of 7.8 psi low RVP fuel program requirements in both areas will interfere with attainment of other air quality standards. All the counties in the Dayton area are designated attainment for all standards, including sulfur dioxide and nitrogen dioxide. Cincinnati is designated attainment for all standards other than ozone, sulfur dioxide and fine particulate matter (PM
Based on the above discussion and the state's section 110(l) demonstration, EPA believes that removal of the 7.8 psi low RVP fuel requirements would not interfere with attainment or maintenance of any of the NAAQS in the Cincinnati and Dayton areas and would not interfere with any other applicable requirement of the CAA, and thus, are approvable under CAA section 110(l).
EPA is proposing to approve the revision to the Ohio ozone SIP submitted by the Ohio EPA on December 19, 2016, removing the 7.8 psi RVP fuel requirements for gasoline distributed in the Cincinnati and Dayton areas which include Montgomery, Miami, Greene, Clark, Hamilton, Butler, Warren, and Clermont counties. We find that the revision meets all applicable requirements and it would not interfere with reasonable further progress or attainment of any of the NAAQS.
Section 1541(b) of the Energy Policy Act of 2005 required EPA in consultation with the U.S. Department of Energy to determine the number of fuels programs approved into all SIPs as of September 1, 2004 and to publish a list of such fuels. On December 28, 2008 EPA published the list of boutique fuels. (See 71 FR 78192.) EPA maintains the current list of boutique fuels on its Web site at:
The 7.8 psi RVP fuel program, which is approved into Ohio's SIP, is a fuel type that is included in EPA's boutique fuel list, 71 FR 78198-99; (
On October 6, 2014 EPA published a direct final rule to remove Illinois' 7.2 psi low RVP regulation from the state's SIP for its portion of the St. Louis, MO-IL ozone area. (See 79 FR 60065.) The removal became effective on December 5, 2014.
The 7.2 psi RVP fuel type was included in the published list of fuels. (See 71 FR 78199). Illinois was the only state with such a fuel type in its approved SIP. When EPA removed the approved 7.2 psi RVP fuel regulation from the Illinois SIP EPA was also obligated to remove this fuel type from the list of boutique fuels because this fuel type is no longer in any approved SIP.
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
Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Nitrogen oxides, Ozone, Volatile organic compounds.
Environmental Protection Agency (EPA).
Proposed rule; extension of comment periods.
EPA issued two proposed rules under section 6 of the Toxic Substances Control Act (TSCA) to prohibit the manufacture (including importers), processing, and distribution in commerce of trichloroethylene (TCE) for use in aerosol degreasing, for use in spot cleaning in dry cleaning facilities, and for use in vapor degreasing; to prohibit commercial use of TCE for aerosol degreasing, for spot cleaning in dry cleaning facilities, and for use in vapor degreasing; to require manufacturers (including importers), processors, and distributors, except for retailers of TCE for any use, to provide downstream notification of these prohibitions throughout the supply chain; and to require limited recordkeeping. This document extends the comment periods for both proposed rules by an additional 30 calendar days each. A commenter requested additional time to submit written comments for the proposed rules. EPA is therefore extending the comment period in order to give all interested persons the opportunity to comment fully.
The comment period of the proposed rule published in the
Submit your comments, using the applicable docket ID number identified for that proposed rule, go at
This document extends the public comment period established in the proposed rules issued in the
To submit comments, or access the docket, please follow the detailed instructions provided under
Environmental protection, Chemicals, Export notification, Hazardous substances, Import certification, Trichloroethylene, Recordkeeping.
Federal Communications Commission.
Proposed rule.
This document requests comments on a Petition for Rulemaking filed by Northwest Florida Media, LLC, proposing to amend the FM Table of Allotments, of the Commission's rules, by allotting Channel 295A at Fort Walton Beach, Florida, as a sixth local service. A staff engineering analysis indicates that Channel 295A can be allotted to Fort Walton Beach, consistent with the minimum distance separation requirements of the Commission's rules without a site restriction. The reference coordinates are 30-24-40 NL and 86-37-28 WL.
Comments must be filed on or before March 27, 2017, and reply comments on or before April 11, 2017.
Secretary, Federal Communications Commission, 445 Twelfth Street SW., Washington, DC 20554. In addition to filing comments with the FCC, interested parties should serve the petitioner as follows: David D. Burns, Esq., Pillsbury Winthrop Shaw Pittman LLP, 1200 Seventeenth Street NW., Washington, DC 20036.
Rolanda F. Smith, Media Bureau, (202) 418-2700.
This is a synopsis of the Commission's
Provisions of the Regulatory Flexibility Act of 1980 do not apply to this proceeding.
Members of the public should note that from the time a Notice of Proposed Rule Making is issued until the matter is no longer subject to Commission consideration or court review, all
For information regarding proper filing procedures for comments, see 47 CFR 1.415 and 1.420.
Radio, Radio broadcasting.
For the reasons discussed in the preamble, the Federal Communications Commission proposes to amend 47 CFR part 73 as follows:
47 U.S.C. 154, 303, 334, 336 and 339.
(b)
Architectural and Transportation Barriers Compliance Board.
Notice of meetings.
The Architectural and Transportation Barriers Compliance Board (Access Board) plans to hold its regular committee and Board meetings in Washington, DC, Monday through Wednesday, March 13-15, 2017 at the times and location listed below.
The schedule of events is as follows:
Meetings will be held at the Access Board Conference Room, 1331 F Street NW., Suite 800, Washington, DC 20004.
For further information regarding the meetings, please contact David Capozzi, Executive Director, (202) 272-0010 (voice); (202) 272-0054 (TTY).
At the Board meeting scheduled on the afternoon of Wednesday, March 15, 2017, the Access Board will consider the following agenda items:
Members of the public can provide comments either in-person or over the telephone during the final 15 minutes of the Board meeting on Wednesday, March 15, 2017. Any individual interested in providing comment is asked to pre-register by sending an email to
All meetings are accessible to persons with disabilities. An assistive listening system, Communication Access Realtime Translation (CART), and sign language interpreters will be available at the Board meeting and committee meetings.
Persons attending Board meetings are requested to refrain from using perfume, cologne, and other fragrances for the comfort of other participants (see
You may view the Wednesday, March 15, 2017 meeting through a live webcast from 1:30 p.m. to 3:00 p.m. at:
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of Foreign Airline Operators' Revenues and Expenses in the United States (BE-9). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-9. Reports are due 45 days after the end of each calendar quarter. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0068. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 6 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of Ocean Freight Revenues and Foreign Expenses of U.S. Carriers (BE-30). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-30. Reports are due 45 days after the end of each calendar quarter. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0011. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 4 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of U.S. Direct Investment Abroad—Transactions of U.S. Reporter with Foreign Affiliate (BE-577). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-577. Reports are due 30 days after the close of each calendar or fiscal quarter; 45 days if the report is for the final quarter of the financial reporting year. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0004. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 1 hour per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Annual Survey of Foreign Ocean Carriers' Expenses in the United States (BE-29). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-29. Reports are due 90 days after the end of each calendar year. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0012. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 3 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Annual Survey of U.S. Direct Investment Abroad (BE-11). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-11. A completed report covering a reporting company's fiscal year ending during the previous calendar year is due by May 31. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Additionally, notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0053. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 138 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-15. A completed report covering a reporting company's fiscal year ending during the previous calendar year is due by May 31 (or by June 30 for reporting companies that use BEA's eFile system). This notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0034. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 18.2 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of Insurance Transactions by U.S. Insurance Companies with Foreign Persons (BE-45). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-45. Reports are due 60 days after the end of each calendar quarter, or 90 days after the close of the calendar year. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0066. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 8 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of Foreign Direct Investment in the United States—Transactions of U.S. Affiliate with Foreign Parent (BE-605). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-605. Reports are due 30 days after the close of each calendar or fiscal quarter; 45 days if the report is for the final quarter of the financial reporting year. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0009. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 1 hour per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of Financial Services Transactions between U.S. Financial Services Providers and Foreign Persons (BE-185). This survey is authorized by the International Investment and Trade in Services Survey Act and by Section
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-185. Reports are due 45 days after the end of each fiscal quarter, except for the final quarter of the U.S. person's fiscal year when reports must be filed within 90 days. This notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0065. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 10 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108 and 15 U.S.C. 4908(b).
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of Transactions in Selected Services and Intellectual Property with Foreign Persons (BE-125). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-125. Reports are due 45 days after the end of each fiscal quarter except for the final quarter. After the end of fiscal year of the U.S. person, reports must be filed within 90 days. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0067. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 16 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of U.S. Airline Operators' Foreign Revenues and Expenses (BE-37). This survey is authorized by the International Investment and Trade in Services Survey Act.
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-37. Reports are due 45 days after the end of each calendar quarter. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0011. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 4 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
Bureau of Economic Analysis, Commerce.
Notice of reporting requirements.
By this Notice, the Bureau of Economic Analysis (BEA), Department of Commerce, is informing the public that it is conducting the mandatory survey titled Quarterly Survey of Payment Card and Bank Card Transactions Related to International Travel (BE-150). This survey is authorized by the International
The purpose of this Notice is to notify all U.S. persons who meet the reporting requirements set forth in this Notice that they must respond to, and comply with, the BE-150. Reports are due 45 days after the end of each calendar quarter. This Notice is being issued in conformance with the rule BEA issued in 2012 (77 FR 24373) establishing guidelines for collecting data on international trade in services and direct investment through notices, rather than through rulemaking. Additional information about BEA's collection of data on international trade in services and direct investment can be found in the 2012 rule, the International Investment and Trade in Services Survey Act (22 U.S.C. 3101
Notice of specific reporting requirements, including who is to report, the information to be reported, the manner of reporting, and the time and place of filing reports, will be mailed to those required to complete this survey.
(b) Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.
This data collection has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act and assigned control number 0608-0072. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Public reporting burden for this collection of information is estimated to average 16 hours per response. Additional information regarding this burden estimate may be viewed at
22 U.S.C. 3101-3108.
On November 15, 2016, the Executive Secretary of the Foreign-Trade Zones (FTZ) Board docketed an application submitted by CODEZOL, C.D., grantee of FTZ 163, requesting subzone status subject to the existing activation limit of FTZ 163, on behalf of Best Petroleum Corporation in Toa Baja, Puerto Rico.
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 Sec. 400.36(f)), the application to establish Subzone 163F is approved, subject to the FTZ Act and the Board's regulations, including Section 400.13, and further subject to FTZ 163's 923.36-acre activation limit.
An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Southwest Idaho Manufacturers' Alliance, grantee of FTZ 280, requesting subzone status for the facility of Orgill, Inc. (Orgill), located in Post Falls, Idaho. The application was submitted pursuant to the provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR part 400). It was formally docketed on February 9, 2017.
The proposed subzone (31.13 acres) is located at 1881 West Seltice Way, Post Falls, Idaho. No authorization for production activity has been requested at this time. The proposed subzone would be subject to the existing activation limit of FTZ 280.
In accordance with the Board's regulations, Christopher Kemp of the FTZ Staff is designated examiner to review the application and make recommendations to the Executive Secretary.
Public comment is invited from interested parties. Submissions shall be addressed to the Board's Executive Secretary at the address below. The closing period for their receipt is March 27, 2017. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to April 11, 2017.
A copy of the application will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230-0002, and in the “Reading Room” section of the Board's Web site, which is accessible via
For further information, contact Christopher Kemp at
Enforcement and Compliance, International Trade Administration, Department of Commerce.
On October 11, 2016, the Department of Commerce (the “Department”) published the preliminary results of the eleventh administrative review (“AR”) of the antidumping duty order on wooden bedroom furniture (“WBF”) from the People's Republic of China (“PRC”). The period of review (“POR”) is January 1, 2015, through December 31, 2015. The AR covers 18 PRC exporters of subject merchandise, of which the Department selected one company for individual examination, Nantong Wangzhuang Furniture Co., Ltd. (“Nantong Wangzhuang”). For these final results, we continue to find that WBF has been sold in the United States at less than normal value and that certain companies subject to this administrative review had no shipments during the POR.
Effective February 15, 2017.
Aleksandras Nakutis, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-3147.
On October 11, 2016, the Department published, and invited interested parties to comment on, the
The product covered by the order is wooden bedroom furniture, subject to certain exceptions.
As noted above, only Petitioners submitted comments on the
In the
In the
Pursuant to section 751(a)(2)(C) Tariff Act of 1930, as amended (“the Act”), and 19 CFR 351.212(b), the Department has determined, and U.S. Customs and Border Protection (“CBP”) shall assess, antidumping duties on all appropriate entries of subject merchandise in accordance with the final results of this review. The Department intends to issue assessment instructions to CBP 15 days after the publication date of these final results of review. We intend to instruct CBP to liquidate POR entries of subject merchandise from the seven companies, including Nantong Wangzhuang, which failed to establish their eligibility for separate rate status at the rate applicable to the PRC-wide entity. For the 11 companies which the Department determined had no shipments during the POR, if there are any suspended entries under any of those companies' antidumping case numbers, they will be liquidated at the assessment rate for the PRC-wide entity.
The following cash deposit requirements will be effective for shipments of the subject merchandise from the PRC entered, or withdrawn from warehouse, for consumption on or after the publication date in the
This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Department's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties.
This notice also serves as a reminder to parties subject to administrative protective order (“APO”) of their responsibility concerning the return or destruction of proprietary information disclosed under the APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. Timely written notification of the return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation, which is subject to sanction.
These final results of review are issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213(h).
Enforcement and Compliance, International Trade Administration, Department of Commerce.
The Department of Commerce (the Department) is rescinding its administrative review of the antidumping duty order on certain magnesia carbon bricks from Mexico for the period of review (POR) September 1, 2015, through August 31, 2016.
Effective February 15, 2017.
Terre Keaton Stefanova, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-1280.
On September 8, 2016, the Department published in the
On November 9, 2016, the Department published in the
Pursuant to 19 CFR 351.213(d)(1), the Department will rescind an administrative review, in whole or in part, if the parties that requested a review withdraw the request within 90 days of the date of publication of the notice of initiation of the requested review. The petitioner withdrew its request for review by the 90-day deadline, and no other party requested an administrative review of this order. Therefore, we are rescinding the administrative review of the antidumping duty order on magnesia carbon bricks from Mexico covering the period September 1, 2015, through August 31, 2016.
The Department will instruct U.S. Customs and Border Protection (CBP) to assess antidumping duties on all appropriate entries. Antidumping duties shall be assessed at rates equal to the cash deposit of estimated antidumping duties required at the time of entry, or withdrawal from warehouse, for consumption, in accordance with 19 CFR 351.212(c)(1)(i). The Department intends to issue appropriate assessment instructions directly to CBP 41 days after the date of publication of this notice in the
This notice serves as the only reminder to importers of their responsibility, under 19 CFR 351.402(f)(2), to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement may result in the presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties.
This notice serves as the only reminder to parties subject to administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation.
This notice is published in accordance with section 777(i)(1) of the Act, and 19 CFR 351.213(d)(4).
Enforcement and Compliance, International Trade Administration, Department of Commerce.
As a result of the determinations by the Department of Commerce (the Department) and the U.S. International Trade Commission (USITC) that revocation of the antidumping duty order on glycine from the People's Republic of China (the PRC) would likely lead to continuation or recurrence of dumping and material injury to an industry in the United States, the Department is publishing a notice of continuation of this antidumping duty order.
Effective February 15, 2017.
Dena Crossland or Brian Davis, AD/CVD Operations, Office VI, Enforcement and Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-3362 or (202) 482-7924, respectively.
On March 29, 1995, the Department published the antidumping duty order on glycine from the PRC.
As a result of this sunset review, the Department determined that revocation of the
The product covered by the order is glycine, which is a free-flowing crystalline material, like salt or sugar. Glycine is produced at varying levels of purity and is used as a sweetener/taste enhancer, a buffering agent, reabsorbable amino acid, chemical intermediate, and a metal complexing agent. This order covers glycine of all purity levels. Glycine is currently classified under subheading 2922.49.4020 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheading is provided for convenience and Customs purposes, the written description of the merchandise under the order is dispositive.
As a result of the determinations by the Department and the USITC that revocation of the
U.S. Customs and Border Protection will continue to collect cash deposits of estimated antidumping duties at the rates in effect at the time of entry for all imports of subject merchandise. The effective date of the continuation of this order will be the effective date listed above. Pursuant to section 751(c)(2) of the Act, the Department intends to initiate the next sunset review of this order not later than 30 days prior to the fifth anniversary of the effective date of continuation.
This five-year (sunset) review and this notice are in accordance with sections 751(c) and 777(i)(1) of the Act and 19 CFR 351.218(f)(4).
The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35).
This information collection request may be viewed at
Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Notice of receipt of an application for an exempted fishing permit; extension of comment period; and announcement of a public webinar.
NMFS published a notice in the
The public comment period for the notice published at 82 FR 4856, January 17, 2017, is extended from February 16, 2017, until March 29, 2017.
Comments may be submitted by any of the following methods:
•
•
Craig Cockrell at (301) 427-8503 or Rick Pearson at (727) 824-5399.
The application and Draft EA, as well as public comments received thus far, are available for review on the HMS Management Division's Web site at
The original comment period was scheduled to end on February 16, 2017. Given interest from the public and to allow additional time for Regional Fishery Management Councils to discuss the EFP application and Draft EA at upcoming meetings, NMFS is extending the public comment period for this action to March 29, 2017. Additionally, because of requests to hold a public meeting in South Florida regarding this issue, NMFS has decided to hold a public webinar to facilitate public comments from across the geographic range of the U.S. Atlantic PLL fishery.
The public webinar will be held on March 27, 2017, from 1 p.m.-4 p.m. EST. Information on how to attend the webinar can be found on the HMS Management Division's Web page at:
16 U.S.C. 971
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Notice of unsuccessful referendum.
NMFS issues this notice to inform persons of the unsuccessful referendum for a second fishing capacity reduction loan in the Southeast Alaska Purse Seine Salmon Fishery, effective January 17, 2017.
Michael Sturtevant at (301) 427-8799, fax (301) 713-1306, or
The Southeast Alaska Purse Seine Salmon Fishery is a commercial fishery in Alaska state waters and adjacent Federal waters. It encompasses the commercial taking of salmon with purse seine gear, and participation is limited to fishermen designated by the Alaska Commercial Fisheries Entry Commission (CFEC). Congress authorized a $23.5 million loan to finance a fishing capacity reduction program in the Southeast Alaska Purse Seine Salmon Fishery. NMFS published proposed program regulations on May 23, 2011 (76 FR 29707), and final program regulations on October 6, 2011 (76 FR 61986), to implement the reduction program.
In 2012, NMFS conducted a referendum to determine the remaining fishermen's willingness to repay a $13.1 million fishing capacity reduction loan to remove 64 permits. After a majority of permit holders approved the loan, NMFS disbursed payments to the successful bidders and began collecting fees to repay the loan.
In August 2016, the Southeast Revitalization Association (SRA) submitted a second capacity reduction plan to NMFS and NMFS approved the second plan in October 2016. Since only $13.1 million was expended from the total loan amount, $10.4 remains available. Approval of this second referendum would have resulted in a second loan of $5.8 million and permanently retired an additional 22 permits from the fishery. The final regulations required NMFS to provide public notice before conducting a referendum to determine the industry's willingness to repay a second fishing capacity reduction loan to purchase the permits identified in the second reduction plan.
Comments on the proposed referendum were accepted until 5 p.m. EST December 7, 2016. Between November 14 and November 17, 2016, NMFS held a series of public meetings with Southeast Alaska purse seine salmon permit holders and interested individuals. The meetings were held in Sitka, AK, Ketchikan, AK, Petersburg, AK, and Seattle, WA.
As of October 21, 2016, there were 315 permits in the fishery designated as S01A by CFEC. These permanent permit holders were eligible to vote in this second referendum. NMFS mailed referendum information, voting instructions, and a referendum ballot to each of the permit owners. The referendum voting period commenced December 13, 2016 and ended on January 13, 2017. Any votes received by NMFS after 5 p.m. on January 13, 2017, were not counted. NMFS issued 315 ballots. 50 CFR 600.1107 (e)(3)(ii), states that “a successful referendum by a majority of the Permit Holders in the Reduction Fishery shall bind all parties and complete the reduction process,” Therefore, a minimum of 158 ballots in favor of the buyback program was necessary to approve the new fees. NMFS received 180 (57%) timely and valid ballots. 132 were for approving the proposed buyback. As a result, the proposed buyback referendum was not successful and the second buyback loan was not approved.
National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.
Notice; issuance of an incidental harassment authorization.
In accordance with the Marine Mammal Protection Act (MMPA) implementing regulations we (NMFS) hereby give notice that we have issued an Incidental Harassment Authorization (IHA) to the U.S. Air Force, Eglin Air Force Base (Eglin AFB), to take two species of marine mammals, the Atlantic bottlenose dolphin (
Effective February 4, 2017 through February 3, 2018.
An electronic copy of the final Authorization, Eglin AFB's application and their final Environmental Assessment (EA) titled, “Maritime Weapons System Evaluation Program” are available by writing to Ms. Jolie Harrison, Chief, Permits and Conservation Division, Office of Protected Resources, National Marine Fisheries Service, 1315 East-West Highway, Silver Spring, MD 20910; by telephoning the contacts listed here at 301-427-8401, or by visiting the internet at:
Mr. Dale Youngkin, Office of Protected Resources, NMFS, (301) 427-8401.
Sections 101(a)(5)(A) and (D) of the Marine Mammal Protection Act of 1972, as amended (MMPA; 16 U.S.C. 1361
An Authorization for incidental takings for marine mammals 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 taking 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.”
Where there is the potential for serious injury or death, the allowance of incidental taking requires promulgation of regulations under section 101(a)(5)(A). Subsequently, a Letter (or Letters) of Authorization may be issued as governed by the prescriptions established in such regulations, provided that the level of taking will be consistent with the findings made for the total taking allowable under the specific regulations. Under section 101(a)(5)(D), NMFS may authorize incidental taking by harassment only (
The NDAA (Pub. L. 108-136) removed the “small numbers” and “specified geographical region” limitations indicated earlier and amended the definition of harassment as it applies to a “military readiness activity” to read as follows (section 3(18)(B) of the MMPA): (i) Any act that injures or has the significant potential to injure a marine mammal or marine mammal stock in the wild (Level A Harassment); or (ii) any act that disturbs or is likely to disturb a marine mammal or marine mammal stock in the wild by causing disruption of natural behavioral patterns, including, but not limited to, migration, surfacing, nursing, breeding, feeding, or sheltering, to a point where such behavioral patterns are abandoned or significantly altered (Level B Harassment).
On February 4, 2016, we issued an Authorization to Eglin AFB to take marine mammals, by harassment, incidental to a Maritime WSEP within the EGTTR in the Gulf of Mexico from February 4, 2016 through February 3, 2017 (see 81 FR 7307; February 11, 2016). These missions were very similar to previous Maritime WSEP mission activities for which incidental harassment authorizations were issued the previous year (80 FR 17394; April 1, 2015). On September 19, 2016, we received a renewal request for an Authorization from Eglin AFB to continue the missions authorized in 2016. We considered the revised renewal request as adequate and complete on September 27, 2016.
Due to the ongoing nature of these activities, as well as the fact that other mission activities are conducted within the EGTTR, we have discussed developing a rulemaking to encompass all mission activities in the EGTTR, and anticipate that the Maritime WSEP activities will be part of that future rulemaking. However, this Authorization is being granted due to timing constraints to ensure that these activities are in compliance with the MMPA while the future rulemaking is in process.
Eglin AFB will conduct Maritime WESP missions within the EGTTR airspace over the Gulf of Mexico within Warning Area 151 (W-151), specifically within sub-area W-151A (see Figure2-1 of Eglin AFB's application and Figure 1 below). The Maritime WSEP training activities are planned to occur during daylight hours in February and March 2017, however, the activities could occur between February 4, 2017, and February 3, 2018.
Eglin AFB will use multiple types of live munitions (
The following aspects of the Maritime WSEP training activities have the potential to take marine mammals: Exposure to impulsive noise and pressure waves generated by live ordnance detonation at or near the surface of the water. Take, by Level B harassment, of individuals of common bottlenose dolphin or Atlantic spotted dolphin could potentially result from the specified activity. Additionally, although NMFS does not expect it to occur, Eglin AFB has also requested authorization for Level A harassment of up to four individuals of either common bottlenose dolphins (2) or Atlantic spotted dolphins (1). Therefore, Eglin AFB requested authorization to take individuals of two cetacean species by Level A and Level B harassment.
Eglin AFB's Maritime WSEP training activities may potentially impact marine mammals at or near the water surface in the absence of mitigation. Marine mammals could potentially be harassed, injured, or killed by exploding and non-exploding projectiles, and falling debris. However, based on analyses provided in Eglin AFB's 2016 application, Eglin AFB's previous applications and Authorizations, Eglin AFB's EA, and past monitoring reports for the authorized activities conducted in February and March 2016 and 2015, and for reasons discussed later in this document, we do not anticipate that Eglin AFB's Maritime WSEP activities will result in any serious injury or mortality to marine mammals.
For Eglin AFB, this will be the third such Maritime WSEP Authorization following the Authorization issued effective from February 4, 2016, through February 3, 2017 (see 81 FR 7307; February 11, 2016). This Authorization will be effective from February 4, 2017, through February 3, 2018. The monitoring report associated with the 2016 Authorization is available at
Eglin AFB will conduct live ordnance testing and training in the EGTTR within the Gulf of Mexico as part of the Maritime WSEP operational testing missions. The Maritime WSEP test objectives are to evaluate maritime deployment data, evaluate tactics, techniques and procedures, and to determine the impact of techniques and procedures on combat Air Force training. The need to conduct this type of testing has developed in response to increasing threats at sea posed by operations conducted from small boats, which can carry a variety of weapons, can form in large or small numbers, and may be difficult to locate, track, and engage in the marine environment. Because of limited Air Force aircraft and munitions testing on engaging and defeating small boat threats, Eglin AFB will employ live munitions against boat targets in the EGTTR in order to continue development of techniques and procedures to train Air Force strike aircraft to counter small maneuvering surface vessels.
Eglin AFB will schedule up to eight Maritime WSEP training missions occurring during a one-week period in February 2017 and a one-week period in March 2017. The missions will occur for up to four hours each day during the morning hours, with multiple live munitions being released per day. However, the Authorization is effective to cover those activities anytime during the period from February 4, 2017 through February 3, 2018.
The specific planned mission location is approximately 17 miles (mi) (27.3 kilometers (km)) offshore from Santa Rosa Island, Florida, in nearshore waters of the continental shelf in the Gulf of Mexico. All activities will place within the EGTTR, defined as the
The Maritime WSEP training missions include the release of multiple types of inert and live munitions from fighter and bomber aircraft, unmanned aerial vehicles, and gunships against small, static, towed, and remotely-controlled boat targets. Munition types include bombs, missiles, rockets, and gunnery rounds (Table 1).
The Maritime WSEP training activities involve detonations above the water, near the water surface, and under water within the EGTTR. However, because the tests will focus on weapons/target interaction, Eglin AFB will not specify a particular aircraft for a given test as long as it meets the delivery parameters.
Eglin AFB will deploy the munitions against static, towed, and remotely-controlled boat targets within the W-151A. Eglin AFB will operate the remote-controlled boats from an instrumentation barge (
Table 2 lists the number, height, or depth of detonation, explosive material, and net explosive weight (NEW) in pounds (lbs) of each munition that will be used during the Maritime WSEP activities.
At least two ordnance delivery aircraft will participate in each live weapons release training mission, which lasts approximately four hours. Before delivering the ordnance, mission aircraft will make a dry run over the target area to ensure that it is clear of commercial and recreational boats. Jets will fly at a minimum air speed of 300 knots (approximately 345 miles per hour, depending on atmospheric conditions) and at a minimum altitude of 305 m (1,000 ft). Due to the limited flyover duration and potentially high speed and altitude, the pilots will not participate in visual surveys for protected species.
Eglin AFB's 2016 and 2015 Authorization renewal request, 2014 application for the same activities, and 2015 EA and Finding of No Significant Impact (FONSI) contain additional detailed information on the Maritime WSEP training activities and are all available online (
A notice of receipt of Eglin AFB's application and NMFS' proposal to issue an Authorization to the U.S. Air Force, Eglin AFB, published in the
Monitoring also includes vessel-based observers for marine species up to 30 minutes prior to deploying live munitions in the area. Eglin AFB has submitted annual reports to NMFS every year that describes all activities that occur in the EGTTR. In addition, Eglin AFB submitted annual reports to NMFS at the conclusion of the Maritime Strike Operations These missions are similar in nature to the maritime WSEP operations and the Eglin AFB provided information on sighting information and results from post-mission survey observations. Based on those results, NMFS determined that the mitigation measures ensured the least practicable adverse impact to marine mammals. There were no observations of injured marine mammals and no reports of marine mammal mortality during the Maritime Strike Operation activities. The measures for the Maritime WSEP are similar, except they will include larger survey areas based on updated acoustic analysis and previous discussions with the MMC and NMFS.
Eglin AFB will continue to research the feasibility of supplementing existing monitoring efforts with passive acoustic monitoring devices for future missions, and has recently requested funding to do so. However, even if this funding request is approved, the funds will not be available to implement the additional measures for this Authorization. If funding is approved, passive acoustic monitoring will be included in future missions that may be part of the proposed rule to cover multiple activities in the EGTTR.
Table 3 lists marine mammal species with potential or confirmed occurrence in the activity area during the project timeframe and summarizes key information regarding stock status and abundance. Please see NMFS' 2015 and 2014 Stock Assessment Reports (SAR), available at
An additional 19 cetacean species could occur within the northeastern Gulf of Mexico, mainly occurring at or beyond the shelf break (
Of these species, only the sperm whale is listed as endangered under the Endangered Species Act (ESA) and as depleted throughout its range under the MMPA. Sperm whale occurrence within W-151A is unlikely because almost all reported sightings have occurred in water depths greater than 200 m (656.2 ft).
Because these species are unlikely to occur within the W-151A area, Eglin AFB has not requested and we are not proposing to authorize take for them. Thus, we do not consider these species further in this notice.
We have reviewed Eglin AFB's species descriptions, including life history information, distribution, regional distribution, diving behavior, and acoustics and hearing, for accuracy and completeness. That information is contained in sections 3 and 4 of Eglin AFB's 2016 Authorization application and in Chapter 3 of Eglin AFB's Environmental Assessment (EA) and we incorporate those sections by reference rather than reprinting the information here.
The endangered West Indian manatee (
This section of the notice of the proposed Authorization (81 FR 83209, November 21, 2016) included a summary and discussion of the ways that components (
In summary, the Maritime WSEP training exercises under this Authorization have the potential to take marine mammals by exposing them to impulsive noise and pressure waves generated by live ordnance detonation at or near the surface of the water. Exposure to energy or pressure resulting from these detonations could result in Level A harassment (PTS and slight lung injury) and by Level B harassment (temporary threshold shift (TTS) and behavioral harassment). In addition, NMFS also considered the potential for harassment from vessel operations.
The potential effects of impulsive sound sources (underwater detonations) from the training activities may include one or more of the following: Tolerance, masking, disturbance, hearing threshold shift, stress response, and mortality. NMFS provided detailed information on these potential effects in the notice of the proposed Authorization (81 FR 83209; November 21, 2016). The information presented in that notice has not changed.
Detonations of live ordnance will result in temporary changes to the water environment. Munitions could hit the targets and not explode in the water. However, because the targets are located over the water, in water explosions could occur. An underwater explosion from these weapons could send a shock wave and blast noise through the water, release gaseous by-products, create an oscillating bubble, and cause a plume of water to shoot up from the water surface. However, these effects will be temporary and not expected to last more than a few seconds.
Similarly, Eglin AFB does not expect any long-term impacts with regard to hazardous constituents to occur. Eglin AFB considered the introduction of fuel, debris, ordnance, and chemical materials into the water column within its EA and determined the potential effects of each to be insignificant. NMFS provided a summary of the analyses in the notice for the proposed Authorization (81 FR 83209; November 21, 2016). The information presented in that notice has not changed.
In order to issue an 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
The NDAA of 2004 amended the MMPA as it relates to military-readiness activities and the incidental take authorization process such that “least practicable adverse impact” shall include consideration of personnel safety, practicality of implementation, and impact on the effectiveness of the military readiness activity.
NMFS and Eglin AFB worked to identify potential practicable and effective mitigation measures, which include a careful balancing of the likely benefit of any particular measure to the marine mammals with the likely effect of that measure on personnel safety, practicality of implementation, and impact on the “military-readiness activity.” We refer the reader to section 11 of Eglin AFB's application for more detailed information on mitigation measures which include the following:
Eglin AFB will station a large number of range clearing boats (approximately 30 to 35) around the test site to prevent non-participating vessels from entering the human safety zone. Based on the composite footprint, range clearing boats will be located approximately 15.28 km (9.5 mi) from the detonation point (see Figure 11-1 in Eglin AFB's application). However, the actual distance will vary based on the size of the munition being deployed.
Trained protected species observers (PSO) will be aboard five of these boats and will conduct protected species surveys before and after each test. The protected species survey vessels will be dedicated solely to observing for marine species during the pre-mission surveys while the remaining safety boats clear the area of non-authorized vessels. The protected species survey vessels will begin surveying the area at sunrise. The area to be surveyed will encompass the zone of influence (ZOI), which is discussed in more detail below.
Because of human safety issues, PSOs will be required to leave the test area at least 30 minutes in advance of live weapon deployment and move to a position on the safety zone periphery, approximately 15.28 km (9.5 mi) from the detonation point. PSOs will continue to scan for marine mammals from the periphery. Animals that may enter the area after Eglin AFB has completed the pre-mission surveys and prior to detonation will not reach the predicted smaller slight lung injury and/or mortality zones due to their swim speed and the size of the clearance zone.
Historically, Eglin AFB has conservatively used the number of live weapons deployed to estimate take of marine mammals. This method assumed a fresh population of marine mammals for each detonation to calculate the number taken. However, NMFS requested mission-day scenarios in order to be able to model accumulated energy. Therefore, each mission-day scenario is considered a separate event to model takes as opposed to modeling for each live detonation. Eglin AFB developed three mission-day categories (Category A, which represents levels of activities considered a worst-case scenario consisting of ordnances with large explosive weights as well as surface and subsurface detonations; Category B, which represents a `typical' mission day based on levels of weapons releases during past Maritime WSEP activities; and Category C, which represents munitions with smaller explosive weights and surface detonations only), and estimated the number of days each category will be executed during the 2017 Maritime WSEP missions (See Table 1-3 in Eglin AFB's application for the Mission Day Scenarios). Table 4 below provides the categorization of mission days (Table 1-3 in Eglin AFB's application), and Table 5 provides the maximum range of effects for all criteria and thresholds for mission-day Categories A, B, and C. These ranges were calculated based on explosive acoustic characteristics, sound propagation, and sound transmission loss in the study area (which incorporates water depth, sediment type, wind speed, bathymetry, and temperature/salinity profiles). Refer to Appendix A of Eglin AFB's application for a complete description of the acoustic modeling methodology used in the analysis.
Mortality and slight lung injury threshold ranges would extend from 47 to 216 m and 84 to 595 m, respectively, depending on the mission-day category. These ranges would fall within the Level A harassment ranges. Based on the planned activities on a given mission day, and the ranges presented in Table 5, Eglin AFB will ensure that the area equating to the Level A harassment threshold range is free of protected species. By clearing the Level A harassment threshold range of protected species, animals that may enter the area after the completed pre-mission surveys but prior to detonation would not reach the smaller slight lung injury or mortality zones as explained above. Because of human safety issues, Eglin AFB will require PSOs to leave the test area at least 30 minutes in advance of live weapon deployment and move to a position on the safety zone periphery, approximately 15 km (9.5 mi) from the detonation point. PSOs will continue to scan for marine mammals from the periphery, but effectiveness will be limited as the boat will remain at a designated station.
The GRATV will be located about 183 m (600 ft) from the target. The mortality threshold ranges correspond to the modified Goertner model adjusted for the weight of an Atlantic spotted dolphin calf, and extend from 0 to 216 m (0 to 709 ft) from the target, depending on the ordnance, and the Level A ranges for both common bottlenose and Atlantic spotted dolphins extend up to 945 m (3,100 ft) from the target, depending on the ordnance and harassment criterion. Given these distances, observers can reasonably be expected to view a substantial portion of the mortality zone in front of the camera, although a small portion would be behind or to the side of the camera view. Based on previous monitoring reports for this activity, the pre-training surveys for delphinids and other protected species within the mission area are effective. PSOs can view some portion of the Level A harassment zone, although the view window will be less than that of the mortality zone (a large percentage will be behind or to the side of the camera view).
In addition to the two types of visual monitoring discussed earlier in this section, Eglin AFB personnel will be present within the mission area (on boats and on the GRATV) on each day of testing well in advance of weapon deployment, typically near sunrise. They will perform a variety of tasks including target preparation, equipment checks, etc., and will opportunistically observe for marine mammals and indicators as feasible throughout test preparation. However, we consider these observations as supplemental to the mitigation and monitoring and will only occur as time and schedule permits. Eglin AFB personnel will relay information on these types of sightings to the Lead Biologist, as described in the following mitigation sections.
The purposes of pre-mission monitoring are to: (1) Evaluate the mission site for environmental suitability, and (2) verify that the ZOI is free of visually detectable marine mammals, as well as potential indicators of these species. On the morning of the mission, the Test Director and Safety Officer will confirm that there are no issues that will preclude mission execution and that weather is adequate to support mitigation measures.
Eglin AFB range clearing vessels and protected species survey vessels will be on site at least two hours prior to the mission. The Lead Biologist on board one survey vessel will assess the overall suitability of the mission site based on environmental conditions (sea state) and presence/absence of marine mammal indicators. Eglin AFB personnel will communicate this information to Tower Control and personnel will relay the information to the Safety Officer in Central Control Facility.
Vessel-based surveys will begin approximately one and one-half hours prior to live weapons deployment. Surface vessel PSOs will survey the ZOI and relay all marine species and indicator sightings, including the time of sighting, GPS location, and direction of travel, if known, to the Lead Biologist. The Lead Biologist will document all sighting information on report forms that he/she will submit to Eglin Natural Resources after each mission. Surveys will continue for approximately one hour. During this time, Eglin AFB personnel in the mission area will also observe for marine species as feasible. If marine mammals or indicators are observed within the ZOI for that day's mission activities, the range will be declared “fouled,” a term that signifies to mission personnel that conditions are such that a live ordnance drop cannot occur (
At approximately 30 minutes prior to live weapon deployment, marine species PSOs will be instructed to leave the mission site and remain outside the safety zone, which on average will be 15.28 km (9.5 mi) from the detonation point. The actual size is determined by weapon net explosive weight and method of delivery. The survey team will continue to monitor for protected
Immediately prior to live weapons drop, the Test Director and Safety Officer will communicate to confirm the results of marine mammal surveys and the appropriateness of proceeding with the mission. The Safety Officer will have final authority to proceed with, postpone, or cancel the mission. Eglin AFB will postpone the mission if:
• Any of the high-definition video cameras are not operational for any reason;
• Any marine mammal is visually detected within the ZOI. Postponement will continue until the animal(s) that caused the postponement is: (1) Confirmed to be outside of the ZOI and heading away from the targets; or (2) not seen again for 30 minutes and presumed to be outside the ZOI due to the animal swimming out of the range;
• Any large schools of fish or large flocks of birds feeding at the surface are within the ZOI. Postponement will continue until Eglin AFB personnel confirm that these potential indicators are outside the ZOI:
• Any technical or mechanical issues related to the aircraft or target boats; or
• Any non-participating vessel enters the human safety zone prior to weapon release.
In the event of a postponement, protected species monitoring will continue from the Central Control Facility through the live video feed. Observers will also continue to monitor from the vessels at the safety perimeter, with limited effectiveness due to the distance from the detonation site.
Post-mission monitoring determines the effectiveness of pre-mission mitigation by reporting sightings of any marine mammals. Post-detonation monitoring surveys will commence once the mission has ended or, if required, as soon as personnel declare the mission area safe. Vessels will move into the survey area from outside the safety zone and monitor for at least 30 minutes, concentrating on the area down-current of the test site. This area is easily identifiable because of the floating debris in the water from impacted targets. Up to 10 Eglin AFB support vessels will be cleaning debris and collecting damaged targets from this area thus spending several hours in the area once Eglin AFB completes the mission. PSOs will document and report any marine mammal species, number, location, and behavior of any animals observed to Eglin Natural Resources.
Eglin AFB will delay or reschedule Maritime WSEP missions if the Beaufort sea state is greater than number 4 at the time of the testing activities. The Lead Biologist aboard one of the survey vessels will make the final determination of whether conditions are conducive for sighting protected species or not.
We have carefully evaluated Eglin AFB's mitigation measures in the context of ensuring that we prescribe 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:
• The manner in which, and the degree to which, the successful implementation of the measure is expected to minimize adverse impacts;
• The proven or likely efficacy of the specific measure to minimize adverse impacts as planned; and
• The practicability of the measure for applicant implementation.
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 here:
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 times or locations) exposed to stimuli expected to result in incidental take (this goal may contribute to 1, above, or to reducing takes by behavioral harassment only);
3. A reduction in the number of times (total number or number at biologically important times or locations) individuals will be exposed to stimuli that we expect 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 times or locations) to training exercises that we expect to result in the take of marine mammals (this goal may contribute to 1, 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; and
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 Eglin AFB's mitigation measures, as well as other measures that may be relevant to the specified activity, we have determined that the mitigation measures provide the means of effecting the least practicable impact on marine mammal species or stocks and their habitat, paying particular attention to rookeries, mating grounds, and areas of similar significance (while also considering personnel safety, practicality of implementation, and the impact of effectiveness of the military readiness activity).
In order to issue an Authorization for an activity, section 101(a)(5)(D) of the MMPA states that we 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 an authorization must include the suggested means of accomplishing the necessary monitoring and reporting that will result in increased knowledge of the species and our expectations of the level of taking or impacts on populations of marine mammals present in the action area.
Eglin AFB submitted a marine mammal monitoring plan in their Authorization application. NMFS has not modified or supplemented the plan based on comments or new information received from the public during the public comment period. Any monitoring requirement we prescribe should improve our understanding of one or more of the following:
• Occurrence of marine mammal species or stocks in action area (
• Nature, scope, or context of likely marine mammal exposure to potential stressors/impacts (individual or cumulative, acute or chronic), through better understanding of: (1) Action or environment (
• Individual responses to acute stressors, or impacts of chronic exposures (behavioral or physiological);
• How anticipated responses to stressors impact either: (1) Long-term fitness and survival of an individual; or (2) Population, species, or stock;
• Effects on marine mammal habitat and resultant impacts to marine mammals; and
• Mitigation and monitoring effectiveness.
The Authorization for Maritime WSEP operations will require the following measures:
(1) Eglin AFB will track the use of the EGTTR for test firing missions and protected species observations through the use of mission reporting forms;
(2) Eglin AFB will submit a summary report of marine mammal observations and Maritime WSEP activities to the NMFS Southeast Regional Office (SERO) and the Office of Protected Resources 90 days after expiration of the current Authorization. This report must include the following information: (i) Date and time of each Maritime WSEP exercise; (ii) a complete description of the pre-exercise and post-exercise activities related to mitigating and monitoring the effects of Maritime WSEP exercises on marine mammal populations; and (iii) results of the Maritime WSEP exercise monitoring, including number of marine mammals (by species) that may have been harassed due to presence within the activity zone;
(3) Eglin AFB will monitor for marine mammals in the action area. If Eglin AFB personnel observe or detect any dead or injured marine mammals prior to testing, or detects any injured or dead marine mammals during live fire exercises, Eglin AFB must cease operations and submit a report to NMFS within 24 hours; and
(4) Eglin AFB must immediately report any unauthorized takes of marine mammals (
Eglin AFB complied with the mitigation and monitoring required under the previous Authorization for 2016 Maritime WSEP activities. Marine mammal monitoring occurred before, during, and after each Maritime WSEP mission. During the course of these activities, Eglin AFB's monitoring reports showed that they did not exceed the take levels authorized. In accordance with the 2015 Authorization, Eglin AFB submitted a monitoring report (available at:
Under the 2016 Authorization, Eglin AFB anticipated conducting Maritime WSEP training missions over approximately two to three weeks, but actually conducted a total of five mission days (February 11 and March 14-17) associated with live ordnance delivery. Due to weather conditions and high sea states, no live missions were conducted February 8-10. Munitions that were actually dropped accounted for only approximately 41 percent of what was authorized in the 2016 Authorization.
During the February 2016 mission, Eglin AFB released one AGM-65 Maverick. The AGM-65 Maverick is a penetrating blast-fragment warhead that detonates at the surface and has 86 lb NEW. Eglin AFB conducted the required monitoring for marine mammals or indicators of marine mammals (
During the March 2016 live fire missions, Eglin AFB expended two AGM-65 Mavericks and twelve AGM-114 Hellfire missiles. The NEW of the munitions that detonated at the water surface or up to 3 m (10 ft) below the surface are 86 lb for the AGM-65 Maverick missiles and 13 lb for the AGM-114 Hellfire missiles. Eglin AFB conducted the required monitoring for marine mammals or indicators of marine mammals (
After each mission, Eglin AFB re-entered the ZOI to begin post-mission surveys for marine mammals and debris clean-up operations. Eglin AFB personnel did not observe reactions indicative of disturbance during the pre-mission surveys and did not observe any marine mammals during the post-mission surveys. In summary, Eglin AFB reports that no observable instances of take of marine mammals occurred incidental to the Maritime WSEP training activities under the 2016 Authorization.
This section includes an estimate of the number of incidental “takes” proposed for authorization pursuant to this Authorization, which will inform both NMFS negligible impact determination. Harassment is the means of take expected to result from these activities, and the definition of harassment as it applies to a “military readiness activity” is: (i) Any act that injures or has the significant potential to injure a marine mammal or marine mammal stock in the wild (Level A Harassment); or (ii) any act that disturbs or is likely to disturb a marine mammal or marine mammal stock in the wild by causing disruption of natural behavioral patterns, including, but not limited to, migration, surfacing, nursing, breeding, feeding, or sheltering, to a point where such behavioral patterns are abandoned or significantly altered (Level B Harassment).
NMFS' analysis identified the physiological responses and behavioral responses that could potentially result from exposure to underwater explosive detonations. In this section, we will relate the potential effects to marine mammals from underwater detonation of explosives to the MMPA regulatory definitions of Level A and Level B harassment. This section will also quantify the effects that might occur from the military readiness activities in W-151.
At NMFS' recommendation, Eglin AFB updated the thresholds used for onset of TTS (Level B Harassment) and onset of PTS (Level A Harassment) to be
Of the potential effects described earlier in this document, the following are the types of effects that fall into the Level B harassment category:
Behavioral disturbance that rises to the level described in the above definition, when resulting from exposures to non-impulsive or impulsive sound, is Level B harassment. Some of the lower level physiological stress responses discussed earlier will also likely co-occur with the predicted harassments, although these responses are more difficult to detect and fewer data exist relating these responses to specific received levels of sound. When predicting Level B harassment based on estimated behavioral responses, we are aware that those takes may have a stress-related physiological component.
As discussed previously, TTS can affect how an animal behaves in response to the environment, including conspecifics, predators, and prey. NMFS classifies TTS (when resulting from exposure to explosives and other impulsive sources) as Level B harassment, not Level A harassment (injury).
Of the potential effects that were described earlier, the following are the types of effects that fall into the Level A Harassment category:
PTS (resulting either from exposure to explosive detonations) is irreversible and NMFS considers this to be an injury.
Table 6 outlines the acoustic thresholds for mid-frequency cetaceans used by NMFS for this Authorization when addressing noise impacts from explosives. Both common bottlenose dolphins and Atlantic spotted dolphins are considered mid-frequency cetaceans.
Table 7 provides the estimated maximum range or radius, from the detonation point to the various thresholds described in Tables 4-6 (Note: For PTS and TTS dual metrics, the more conservative metric was used).
The ranges presented above were used to calculate the ZOI for each criterion/threshold. To eliminate double counting of takes, impact areas from higher impact categories (
Density estimates for bottlenose dolphin and spotted dolphin were obtained from Duke University Marine Geospatial Ecology Lab Reports (Roberts
Table 9 indicates the modeled potential for lethality, injury, and non-injurious harassment (including behavioral harassment) to marine mammals in the absence of mitigation measures. Eglin AFB and NMFS estimate that approximately three marine mammals could be exposed to injurious Level A harassment noise levels (187 dB SEL) and approximately 326 animals could be exposed to Level B harassment (TTS and behavioral harassment) noise levels in the absence of mitigation measures.
Based on the mortality exposure estimates calculated by the acoustic model and the anticipated effectiveness of mitigation measures, zero marine mammals are expected to be affected by pressure levels associated with mortality or serious injury. Zero marine mammals are expected to be exposed to pressure levels associated with gastrointestinal tract injury.
NMFS generally considers PTS to fall under the injury category (Level A Harassment). An animal would need to stay very close to the sound source for an extended amount of time to incur a serious degree of PTS, which could increase the probability of mortality. In this case, it would be highly unlikely for this scenario to unfold given the nature of any anticipated acoustic exposures that could potentially result from a mobile marine mammal that NMFS generally expects to exhibit avoidance behavior to loud sounds within the EGTTR. NMFS concludes that possibility of minor PTS in the form of slight upward shift of hearing threshold at certain frequency bands by a few individuals of marine mammals is low, but not unlikely. The majority of the incidental `takes' resulting from Eglin AFB's WSEP activities will consist of Level B harassment, such as TTS and behavioral responses.
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” (
To avoid repetition, the discussion below applies to each of the species for which we authorize incidental take for Eglin AFB's activities, given that expected impacts are expected to be the same for both species.
In making a negligible impact determination, we consider:
• The number of anticipated injuries, serious injuries, or mortalities;
• The number, nature, and intensity, and duration of Level B harassment;
• The context in which the takes occur (
• The status of stock or species of marine mammals (
• Impacts on habitat affecting rates of recruitment/survival; and
• The effectiveness of monitoring and mitigation measures to reduce the number or severity of incidental take.
For reasons stated previously in this document and based on the following factors, Eglin AFB's specified activities are not likely to cause long-term behavioral disturbance, serious injury, or death.
The takes from Level B harassment will be due to potential behavioral disturbance and TTS. The takes from Level A harassment will be due to some, likely lesser, degree of PTS and slight lung injury. Activities will only occur over a timeframe of two to three weeks beginning in February 2017, with one or two missions occurring per day. It is possible that some individuals may be taken more than once if those individuals are located in the exercise area on two different days when exercises are occurring.
Noise-induced threshold shifts (TS, which includes PTS) are defined as increases in the threshold of audibility (
In addition, there are different degrees of PTS ranging from slight/mild to moderate and from severe to profound (Clark 1981). Profound PTS or the complete loss of the ability to hear in one or both ears is commonly referred to as deafness (CDC 2004; WHO 2006). High-frequency PTS, presumably as a normal process of aging that occurs in humans and other terrestrial mammals, has also been demonstrated in captive cetaceans (Ridgway and Carder 1997; Yuen
In terms of what is analyzed for the potential PTS (Level A harassment) in marine mammals as a result of Eglin AFB's Maritime WSEP operations, if it occurs, NMFS has determined that the levels will be slight/mild because most cetaceans would be expected to show relatively high levels of avoidance. Further, it is uncommon to sight marine mammals within the target area, especially for prolonged durations. Results from monitoring programs associated other Eglin AFB activities and for Eglin AFB's 2016 Maritime WSEP activities have shown the absence of marine mammals within the EGTTR during and after maritime operations. Avoidance varies among individuals and depends on their activities or reasons for being in the area.
NMFS' predicted estimates for Level A harassment take are likely overestimates of the likely injury that will occur. NMFS expects that successful implementation of the required vessel-based and video-based mitigation measures will avoid Level A take in some instances. Also, NMFS expects that some individuals will avoid the source at levels expected to result in injury. Nonetheless, although NMFS expects that Level A harassment is unlikely to occur at the numbers authorized, because it is difficult to quantify the degree to which the mitigation and avoidance will reduce the number of animals that might incur PTS, we are authorizing the modeled number of Level A takes (three), which does not take mitigation or avoidance into consideration. However, we anticipate that any PTS incurred because of mitigation and the likely short duration of exposures, will be in the form of only a small degree of PTS and not total deafness.
While animals may be impacted in the immediate vicinity of the activity, because of the short duration of the actual individual explosions themselves (versus continual sound source operation) combined with the short duration of the Maritime WSEP operations, NMFS has determined that there will not be a substantial impact on marine mammals or on the normal functioning of the nearshore or offshore Gulf of Mexico ecosystems. We do not expect that the activity will impact rates of recruitment or survival of marine mammals since, among other factors listed below, we do not expect mortality (which would remove individuals from the population) or serious injury to occur. In addition, the activity will not occur in areas (and/or times) of significance for the marine mammal populations potentially affected by the exercises (
Moreover, the mitigation and monitoring measures for the Authorization (described earlier in this document) are expected to further minimize the potential for harassment. The protected species surveys will require Eglin AFB to search the area for marine mammals, and if any are found in the live fire area, then the exercise will be suspended until the animal(s) has left the area. Moreover, marine species observers located in the Eglin control tower will monitor the high-definition video feed from cameras located on the instrument barge anchored on-site for the presence of protected species. Furthermore, Maritime WSEP missions will be delayed or rescheduled if the sea state is greater than a 4 on the Beaufort Scale at the time of the test. In addition, Maritime WSEP missions will occur no earlier than two hours after sunrise and no later than two hours prior to sunset to ensure adequate daylight for pre- and post-mission monitoring.
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, NMFS finds that Eglin AFB's Maritime WSEP operations will result in the incidental take of marine mammals, by Level A and Level B harassment, but that the taking from the Maritime WSEP exercises will not have an adverse effect on annual rates of recruitment or survival, and therefore will have a negligible impact on the affected species or stocks.
There are no relevant subsistence uses of marine mammals implicated by this action. Therefore, NMFS has determined that the total taking of
Due to the location of the activity and past experience with similar authorizations for these activities, no ESA-listed marine mammal species are likely to be affected. Therefore, NMFS has determined that this Authorization will have no effect on ESA-listed species and has determined that a section 7 consultation under the ESA is not required for the issuance of an MMPA Authorization to Eglin AFB.
In 2015, Eglin AFB provided NMFS with an EA titled Maritime Weapon Systems Evaluation Program (WSEP) Operational Testing in the Eglin Gulf Testing and Training Range (EGTTR), Florida. The EA analyzed the direct, indirect, and cumulative environmental impacts of the specified activities on marine mammals. NMFS, after review and evaluation of the Eglin AFB EA for consistency with the regulations published by the Council of Environmental Quality (CEQ) and NOAA Administrative Order 216-6, Environmental Review Procedures for Implementing the National Environmental Policy Act, adopted the EA. After considering the EA, the information in the 2014 Authorization application, and the
In accordance with NOAA Administrative Order 216-6 (Environmental Review Procedures for Implementing the National Environmental Policy Act, May 20, 1999), NMFS will again review the information contained in Eglin AFB's EA and determine whether the EA accurately and completely describes the preferred action alternative and the potential impacts on marine mammals. Based on this review and analysis, NMFS has reaffirmed 2015 FONSI statement on issuance of an annual authorization under section 101(a)(5) of the MMPA.
As a result of these determinations, NMFS has issued an Incidental Harassment Authorization to Eglin AFB for conducting Maritime WSEP activities, for a period of one year from the date of issuance, provided the previously mentioned mitigation, monitoring, and reporting requirements are incorporated.
Bureau of Consumer Financial Protection.
Notice and request for comment.
In accordance with the Paperwork Reduction Act of 1995 (PRA), the Bureau of Consumer Financial Protection (Bureau) is proposing to renew the Office of Management and Budget (OMB) approval for an existing information collection titled, “Truth In Lending Act (Regulation Z)—Appraisals for Higher-Priced Mortgage Loans.”
Written comments are encouraged and must be received on or before March 17, 2017 to be assured of consideration.
You may submit comments, identified by the title of the information collection, OMB Control Number (see below), and docket number (see above), by any of the following methods:
•
•
Documentation prepared in support of this information collection request is available at
This is a routine request for OMB to renew its approval of the collections of information currently approved under this OMB control number. The Bureau is not proposing any new or revised collections of information pursuant to this request.
Bureau of Consumer Financial Protection.
Notice of public meeting.
This notice sets forth the announcement of a public meeting of the Consumer Advisory Board (CAB or Board) of the Bureau of Consumer Financial Protection (CFPB or Bureau). The notice also describes the functions of the Board. Notice of the meeting is permitted by section 9 of the CAB Charter and is intended to notify the public of this meeting.
The meeting date is Thursday, March 2, 2017, 10:30 a.m. to 4:30 p.m. eastern standard time.
The meeting location is the Consumer Financial Protection Bureau, 1275 First Street NE., Washington, DC 20002.
Crystal Dully, Outreach and Engagement Associate, 202-435-9588,
Section 9(d) of the CAB Charter states:
(1) Each meeting of the Board shall be open to public observation, to the extent that a facility is available to accommodate the public, unless the Bureau, in accordance with paragraph (4) of this section, determines that the meeting shall be closed. The Bureau also will make reasonable efforts to make the meetings available to the public through live web streaming. (2) Notice of the time, place and purpose of each meeting, as well as a summary of the proposed agenda, shall be published in the
Section 1014(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (
The Director shall establish a Consumer Advisory Board to advise and consult with the Bureau in the exercise of its functions under the Federal consumer financial laws, and to provide information on emerging practices in the consumer financial products or services industry, including regional trends, concerns, and other relevant information.
(a) The purpose of the Board is outlined in section 1014(a) of the Dodd-Frank Act (
The Consumer Advisory Board will discuss the consumer credit information marketplace, a review of Bureau enforcement actions, trends and themes in consumer financial markets, and enhancements to the CFPB Consumer Complaint Database.
Persons who need a reasonable accommodation to participate should contact
Individuals who wish to attend the Consumer Advisory Board meeting must RSVP to
The Board's agenda will be made available to the public on February 15, 2017, via
A recording and transcript of this meeting will be available after the meeting on the CFPB's Web site
Department of the Army, DoD.
Notice.
The Department of the Army announces that, unless there is an objection, after 15 days it contemplates granting an exclusive license to Savit Corporation, Rockaway, New Jersey for U.S. patents 8,161,883 “Flash-Bang Grenade with Greater Flash Intensity”, and D642,235 “Housing for Flash-Bang Grenade.” Any license granted shall comply with 35 U.S.C. 209 and 37 CFR part 404.
Objections must be received within 15 days of this Notice.
Send written objections to Timothy Ryan, U.S. Army ARDEC,
Mr. Timothy Ryan, email:
None.
Assistant Secretary of Defense (Health Affairs), DoD.
Notice of meeting.
The Department of Defense is publishing this notice to announce a Federal Advisory Committee meeting of the Uniform Formulary Beneficiary Advisory Panel (hereafter referred to as the Panel).
Wednesday, March 22, 2017, from 9:00 a.m. to 12:00 p.m.
Naval Heritage Center Theater, 701 Pennsylvania Avenue NW., Washington, DC 20004.
CAPT Edward Norton, DFO, Uniform Formulary Beneficiary Advisory Panel, 7700 Arlington Boulevard, Suite 5101, Falls Church, VA 22042-5101. Telephone: (703) 681-2890. Fax: (703) 681-1940. Email Address:
This meeting is being held under the provisions of the Federal Advisory Committee Act of 1972 (Title 5, United States Code (U.S.C.), Appendix, as amended) and the Government in the Sunshine Act of 1976 (5 U.S.C. 552b, as amended).
Purpose of Meeting: The Panel will review and comment on recommendations made to the Director of Defense Health Agency, by the Pharmacy and Therapeutics Committee, regarding the Uniform Formulary.
To ensure timeliness of comments for the official record, the Panel encourages that individuals and interested groups consider submitting written statements instead of addressing the Panel.
Office of the Under Secretary (Personnel and Readiness), DoD.
Notice.
The Servicemembers Civil Relief Act, as codified at 50 U.S.C. App. 3951, prohibits a landlord from evicting a Service member (or the Service member's family) from a residence during a period of military service except by court order. The law as originally passed by Congress applied to dwellings with monthly rents of $2,400 or less. The law requires the Department of Defense to adjust this amount annually to reflect inflation and to publish the new amount in the
Lt Col Reggie D. Yager, Office of the Under Secretary of Defense for Personnel and Readiness, (703) 571-9301.
Notice of public meeting.
This notice announces the forthcoming public meeting of the Code Committee.
Tuesday, March 7, 2017 at 10:00 a.m.
William A. DeCicco, Clerk of Court, United States Court of Appeals for the Armed Forces, 450 E Street NW., Washington, DC 20442-0001, telephone (202) 761-1448.
The Code Committee was established by Article 146(a), Uniform Code of Military Justice, 10 U.S.C. 946(a), to be held at the Courthouse of the United States Court of Appeals for the Armed Forces, 450 E Street NW., Washington, DC 20442-0001, at 10:00 a.m. on Tuesday, March 7, 2017. The agenda for this meeting will include consideration of proposed changes to the Uniform Code of Military Justice and the Manual for Courts-Martial, United States, and other matters relating to the operation of the Uniform Code of Military Justice throughout the Armed Forces.
Department of Defense (DoD).
Meeting notice.
The Department of Defense is publishing this notice to announce the following Federal advisory committee meeting of the Vietnam War Commemoration Advisory Committee. This meeting is open to the public.
The public meeting of the Vietnam War Commemoration Advisory Committee (hereafter referred to as “the Committee”) will be held on Tuesday, March 7, 2017. The meeting will begin at 1:30 p.m. and end at 3:30 p.m.
241 18th Street South, Room 101, Arlington, VA 22202.
Committee's Designated Federal Officer: The committee's Designated Federal Officer is Mrs. Marcia Moore, Vietnam War Commemoration Advisory Committee, 241 18th Street South, Arlington, VA 22202,
This meeting is being held under the provisions of the Federal Advisory Committee Act of 1972 (5 U.S.C., Appendix, as amended), the Government in the Sunshine Act of 1976 (5 U.S.C. 552b, as amended), and 41 CFR 102-3.150.
Pursuant to 41 CFR 102-3.105(j) and 102-3.140, and section 10(a)(3) of the Federal Advisory Committee Act of 1972, the public or interested organizations may submit written comments to the Committee about its mission and topics pertaining to this public meeting.
Written comments should be received by the DFO by February 28, 2017. Written comments should be submitted via email to the address for the DFO given in the
Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy.
Notice of public scoping, request for comment, and announcement of public scoping meetings.
The U.S. Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EERE) is proposing to authorize the expenditure of federal funding for the development of New England Aqua Ventus I, an offshore wind advanced technology demonstration project consisting of two turbines on floating foundations in the Gulf of Maine, approximately 2.5 miles south of Monhegan Island, Lincoln County, Maine and 12 miles off the mainland. Development actions include design, construction, and commissioning of the proposed project; environmental monitoring; and up to five years of post-construction structural and performance monitoring data collection by the University of Maine. This project is also known as the Maine Aqua Ventus I project. The proposed project would consist of up to two wind turbine
Pursuant to the requirements of the National Environmental Policy Act (NEPA), DOE is preparing an EA to identify and analyze potential impacts to the human environment that may occur if DOE authorizes the expenditure of federal funding in support of New England Aqua Ventus I. DOE is requesting public input on the scope of the EA for New England Aqua Ventus I.
The notice of public scoping for the EA, a description of the proposed project, and additional meeting information, including inclement weather delays or postponements, are posted at:
(2) Monhegan Island School, 1 Monhegan Avenue, Maine 04852 on March 1.
Requests for additional information should be directed to Diana Heyder at
This constitutes notice, in accordance with 18 CFR 385.2201(b), of the receipt of prohibited and exempt off-the-record communications.
Order No. 607 (64 FR 51222, September 22, 1999) requires Commission decisional employees, who make or receive a prohibited or exempt off-the-record communication relevant to the merits of a contested proceeding, to deliver to the Secretary of the Commission, a copy of the communication, if written, or a summary of the substance of any oral communication.
Prohibited communications are included in a public, non-decisional file associated with, but not a part of, the decisional record of the proceeding. Unless the Commission determines that the prohibited communication and any responses thereto should become a part of the decisional record, the prohibited off-the-record communication will not be considered by the Commission in reaching its decision. Parties to a proceeding may seek the opportunity to respond to any facts or contentions made in a prohibited off-the-record communication, and may request that the Commission place the prohibited communication and responses thereto in the decisional record. The Commission will grant such a request only when it determines that fairness so requires. Any person identified below as having made a prohibited off-the-record communication shall serve the document on all parties listed on the official service list for the applicable proceeding in accordance with Rule 2010, 18 CFR 385.2010.
Exempt off-the-record communications are included in the decisional record of the proceeding, unless the communication was with a cooperating agency as described by 40 CFR 1501.6, made under 18 CFR 385.2201(e)(1)(v).
The following is a list of off-the-record communications recently received by the Secretary of the Commission. The communications listed are grouped by docket numbers in ascending order. These filings are available for electronic review at the Commission in the Public Reference Room or may be viewed on the Commission's Web site at
Take notice that the Commission received the following exempt wholesale generator filings:
Take notice that the Commission received the following electric rate 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:
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:
Take notice that the Commission received the following electric rate 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:
Environmental Protection Agency (EPA).
Notice; extension of comment period.
The Environmental Protection Agency (EPA) is extending the comment period for the
Comments must be received on or before March 20, 2017.
Submit your comments, identified by Docket ID No. EPA-HQ-OW-2016-0751, to the
John Ravenscroft, Health and Ecological Criteria Division, Office of Water (Mail Code 4304T), Environmental Protection Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460; telephone number: (202) 566-1101; email address:
On December 19, 2016 (81 FR 91929), EPA announced the availability of the
The original deadline to submit comments was February 17, 2017. This action extends the comment period for 31 days, for a total of 91 days of public comment. Written comments must now be received by March 20, 2017. The draft report and other supporting materials may also be viewed and downloaded from EPA's Web site at
Environmental Protection Agency (EPA).
Notice of document availability and request for comments.
The Draft Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2015 is available for public review. Annual U.S. emissions for the period of time from 1990 through 2015 are summarized and presented by source category and sector. The inventory contains estimates of carbon dioxide (CO
To ensure your comments are considered for the final version of the document, please submit your comments by March 17, 2017. However, comments received after that date will still be welcomed and considered for the next edition of this report.
Comments should be submitted to GHG Inventory at: Environmental Protection Agency, Climate Change Division (6207A), 1200 Pennsylvania Ave. NW., Washington, DC 20460, Fax: (202) 343-2338. You are welcome and encouraged to send an email with your comments to
Ms. Mausami Desai, Environmental Protection Agency, Office of Air and Radiation, Office of Atmospheric Programs, Climate Change Division, (202) 343-2338,
The draft report is available at:
Environmental Protection Agency (EPA).
Notice; extension of comment period.
The Environmental Protection Agency (EPA) is extending the comment period for the Draft Field-Based Methods for Developing Aquatic Life Criteria for Specific Conductivity. In response to stakeholder requests, the comment period will be extended for an additional 62 days, from February 21, 2017 to April 24, 2017.
Comments must be received on or before April 24, 2017.
Submit your comments, identified by Docket ID No. EPA-HQ-OW-2016-0353, to the
Colleen Flaherty, Health and Ecological Criteria Division (Mail Code 4304T), Environmental Protection Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460; telephone: (202) 564-5939; or email:
On December 23, 2016 (81 FR 94370), EPA announced the availability of the Draft Field-Based Methods for Developing Aquatic Life Criteria for Specific Conductivity, and opened a 60-day public review and comment period to solicit scientific views, data, and information regarding the science and technical approach used in the derivation of the draft field-based methods. EPA is also soliciting suggestions from the public for additional ecoregional case studies for future consideration.
The original deadline to submit comments was February 21, 2017. This action extends the comment period for 62 days. Written comments must now be received by April 24, 2017. The draft methods and other supporting materials may also be viewed and downloaded from EPA's Web site at
Federal Communications Commission.
Notice and request for comments.
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995, the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees. The FCC may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid Office of Management and Budget (OMB) control number.
Written PRA comments should be submitted on or before April 17, 2017. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible.
Direct all PRA comments to Cathy Williams, FCC, via email:
For additional information about the information collection, contact Cathy Williams at (202) 418-2918.
The purpose of this form is to obtain information sufficient to identify the parties to the proposed assignment or transfer, establish the parties basic eligibility and qualifications, classify the filing, and determine the nature of the proposed service. Various technical schedules are required along with the main form applicable to Auctioned Services, Partitioning and Disaggregation, Undefined Geographical Area Partitioning, Notification of Consummation or Request for Extension of Time for Consummation.
The data collected on FCC Form 603 includes the FCC Registration Number (FRN), which serves as a “common link” for all filings an entity has with the FCC. The Debt Collection Improvement Act of 1996 requires entities filing with the Commission use an FRN.
On July 20, 2015, the Commission released the
Additionally, on June 2, 2014 the Commission released the
The Commission seeks approval for revisions to its previously approved collection of information under OMB Control Number 3060-0800 to permit the collection of the additional information for Commission licenses and permits, pursuant to the rules and information collection requirements adopted by the Commission in the
In addition, the Commission seeks approval for various other, non-substantive editorial/consistency edits and updates to FCC Form 603 that correct inconsistent capitalization of words and other typographical errors, and better align the text on the form with the text in the Commission rules both generally and in connection with recent non-substantive, organizational amendments to the Commission's rules. Also, in certain circumstances, the Commission requires the applicant to provide copies of their agreements. We do not anticipate that these revisions will impact the collection filing burden.
The Commission therefore seeks approval for a revision to its currently approved information collection on FCC Form 603 to revise FCC Form 603 accordingly.
On July 20, 2015, the Commission released the
Additionally, on June 2, 2014 the Commission released the
The Commission seeks approval for revisions to its previously approved collection of information under OMB Control Number 3060-1058 to permit the collection of the additional information for Commission licenses, leases and permits, pursuant to the rules and information collection requirements adopted by the Commission in the
In addition, the Commission seeks approval for various other, non-substantive editorial/consistency edits and updates to FCC Form 608 that correct inconsistent capitalization of words and other typographical errors, and better align the text on the form with the text in the Commission rules both generally and in connection with
The Commission therefore seeks approval for a revision to its currently approved information collection on FCC Form 608 to revise FCC Form 608 accordingly.
Federal Communications Commission.
Notice and request for comments.
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995, the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The Commission may not conduct or sponsor a collection of information unless it displays a currently valid Office of Management and Budget (OMB) control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid OMB control number.
Written comments should be submitted on or before March 17, 2017. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contacts listed below as soon as possible.
Direct all PRA comments to Nicholas A. Fraser, OMB, via email
For additional information or copies of the information collection, contact Cathy Williams at (202) 418-2918. To view a copy of this information collection request (ICR) submitted to OMB: (1) Go to the Web page
As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3520), the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.
The information collection requirements contained in 47 CFR 74.784(b) require that a licensee of a low power television or TV translator station shall not rebroadcast the programs of any other TV broadcast station without obtaining prior consent of the station whose signals or programs are proposed to be retransmitted. Section 74.784(b) requires licensees of low power television and TV translator stations to notify the Commission when rebroadcasting programs or signals of another station. This notification shall include the call letters of each station rebroadcast. The licensee of the low power television or TV translator station shall certify that written consent has been obtained from the licensee of the station whose programs are retransmitted.
Lastly, the information collection requirements contained in 47 CFR 74.1284 require that the licensee of a FM translator station obtain prior consent to rebroadcast programs of any broadcast station or other FM translator. The licensee of the FM translator station must notify the Commission of the call letters of each station rebroadcast and must certify that written consent has been received from the licensee of that station. Also, AM stations are allowed to use FM translator stations to rebroadcast the AM signal.
Federal Election Commission.
999 E Street NW., Washington, DC.
This meeting was closed to the public.
This item was also discussed: Matters concerning participation in civil actions or proceedings or arbitration.
Judith Ingram, Press Officer, Telephone: (202) 694-1220.
Federal Housing Finance Agency.
Notice.
The Federal Housing Finance Agency (FHFA) reviews all applicable Federal Home Loan Bank (Bank) members every two years under FHFA's community support requirements regulation. FHFA is undertaking its review for the 2017 review cycle. This Notice invites the public to comment on the community support performance of individual members.
Public comments on individual Bank members' community support performance must be submitted to FHFA on or before March 31, 2017.
Comments on members' community support performance should be submitted to FHFA by electronic mail at
Deattra Perkins, Senior Policy Analyst, at
Section 10(g)(1) of the Federal Home Loan Bank Act (Bank Act) requires FHFA to promulgate regulations establishing standards of community investment or service that Bank members must meet in order to maintain access to long-term Bank advances.
Under the regulation, FHFA reviews each applicable member once every two years. Starting April 1, 2017, each member that is subject to community support review will be required to use an online form to submit to FHFA a completed Community Support Statement, executed by an appropriate senior officer of the member. All Community Support Statements for this review cycle must be submitted using the online form by December 31, 2017. FHFA will review the community support performance of each member after receiving the member's completed Community Support Statement.
FHFA encourages the public to submit comments by March 31, 2017, on the community support performance of Bank members. Each Bank is required to post a notice on its public Web site and to notify its Advisory Council, nonprofit housing developers, community groups, and other interested parties in its district of the opportunity to submit comments on the community support programs and activities of Bank members, with the name and address of each member subject to community support review. 12 CFR 1290.2(c)(1). In reviewing a member for community support compliance, FHFA will consider any public comments it has received concerning the member. 12 CFR 1290.2(c)(3). To ensure consideration by FHFA, comments concerning the community support performance of members being reviewed in 2017 must be submitted to FHFA, either by electronic mail to
The names of applicable members currently subject to Community Support review can be found on the public Web sites for the individual Banks at:
The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).
The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than March 2, 2017.
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The notificant listed below has applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).
The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than March 1, 2017.
Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).
Notice.
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 currently approved information collection requirement concerning reporting purchases from sources outside the United States. A notice was published in the
Submit comments on or before March 17, 2017.
Submit comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to: Office of Information and Regulatory Affairs of OMB, Attention: Desk Officer for GSA, Room 10236, NEOB, Washington, DC 20503. Additionally submit a copy to GSA by any of the following methods:
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Ms. Cecelia L. Davis, Procurement Analyst, at 202-219-0202 or via email at
The information on place of manufacture was formerly used by each Federal agency to prepare a report to Congress required by 41 U.S.C. 8302(b)(1) for FY 2009 through 2011 on acquisitions of articles, materials, or supplies that are manufactured outside the United States. However, the data is still necessary for analysis of the application of the Buy American statute and the trade agreements and for other reports to Congress. Additionally, contracting officers require this data as the basis for entry into the Federal Procurement Data System for further data on the rationale for purchasing foreign manufactured items.
Public comments are particularly invited on: Whether this collection of information is necessary for the proper performance of functions of the FAR, and 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.
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 proposal 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 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 to 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
Early Hearing Detection and Intervention-Pediatric Audiology Links to Service (EHDI-PALS) Survey (OMB No. 0920-0955, Expiration Date 03/31/2017)—Revision—National Center on Birth Defects and Developmental
The Division of Human Development and Disability, located within NCBDDD, promotes the health of babies, children, and adults, with a focus on preventing birth defects and developmental disabilities and optimizing the health outcomes of those with disabilities. In 2014, 2015, and 2016, NCBDDD sponsored the Early Hearing Detection and Intervention-Pediatric Audiology Links to Service (EHDI-PALS) Survey. NCBDDD requests OMB approval to continue conducting the EHDI-PALS Survey in 2017, 2018, and 2019. The survey is designed to facilitate timely referrals for hearing screening, diagnostic, and follow-up care services for infants and children ages 0-5 years.
Early interventions for infants and children with hearing loss can prevent or mitigate delays in speech, language, and cognitive development. Since passage of the Early Hearing Detection and Intervention (EHDI) Act in 2010, 98% of newborn infants are now screened for hearing loss prior to hospital discharge. Many states have additional legislation that requires health care providers to report cases of childhood hearing loss to state-based EHDI programs. Key recommendations are based on the “1-3-6” framework: Screening of all infants for hearing loss by 1 month of age, ensuring diagnostic audiologic evaluation by 3 months of age for those who do not pass the screening, and enrollment in early intervention services by 6 months of age for those identified with hearing loss. However, many infants and children do not receive the recommended hearing tests and follow-up services. In 2013, the national average loss to follow-up/loss to documentation rate was 32%, but varied widely from state to state and within states.
High rates of loss to follow-up or loss to documentation remain areas of critical concern for state EHDI programs. Reasons for loss to follow-up or documentation include lack of convenient audiology clinics (geographic distribution of clinics), lack of providers with the specialized training needed to diagnose or treat infants and children ages 0-5 (capacity), consumers' difficulty finding the right provider (information), providers' lack of awareness of or compliance with state reporting requirements (compliance), and other factors.
The annual EHDI-PALS Survey was developed to help states verify the distribution of their pediatric audiology resources, quantify their true follow-up capacity, and support efforts to meet diagnostic and follow-up goals defined by the 1-3-6 framework. Survey respondents are audiologists and audiology facility managers who submit information online through a secure, password protected site managed by the University of Maine. Survey findings have been made available to state EHDI program staff through specialized reports useful for program planning and evaluation. In addition, information has been made available to state EHDI staff and the public through the EHDI-PALS Web site, which provides a searchable directory of facilities and practices that offer pediatric audiology services. Since 2014, state EHDI program personnel accessed the collected data over 3,000 times and consumers visited the EHDI-PALS site for facility information over 140,000 times. This high usage rate lends strong support for survey continuation.
Participation will be requested in two ways. Both the American Speech-Language-Hearing Association and the American Academy of Audiology are members of the EHDI-PALS workgroup and will continue to disseminate announcements through association e-newsletters and e-announcements requesting the participation of their members. CDC estimates that this will result in 200 new responses per year. The estimated burden for a new respondent is 9 minutes. Respondents who have participated in the EHDI-PALS survey in previous years will receive a brief email from the University of Maine asking them to review the information on file for them. It is estimated that approximately 800 audiologists will do so. It takes approximately 2 minutes per person to review and update previously submitted data. Finally, it is estimated that an additional 400 audiologists will read through the purpose statement located on page one of the survey and discontinue their participation. The estimated burden per response for a dropout is 1 minute. The revised method of calculating burden results in a reduction in total estimated annualized burden hours.
Participation is voluntary and there are no costs to respondents other than their time. The total estimated annualized burden hours are 64.
CDC requests approval from OMB to continue the EHDI-PALS survey for three years. There are no changes to the online survey instrument. Survey findings will continue to be used for state-based program improvement and to assist consumers in locating facilities that offer the services they need. In addition, CDC's EHDI program will use findings to provide targeted technical assistance to state-based EHDI programs.
States use Form OCSE-396 to report quarterly expenditures made in the previous quarter and to estimate program expenditures to be made and the incentive payments to be earned in the upcoming quarter. The Administration for Children and Families provides Federal funding to States for the Child Support Enforcement Program at the rate of 66 percent for all allowable and legitimate administrative costs of this program.
Tribes use OMB Form SF-425 to report quarterly expenditures made in the previous quarter. Form SF-425 is not included as part of this comment request.
States and Tribes use Form OCSE-34 to report child support collection activity during the previous quarter, including collections received, the distribution and disbursement of collections and any collections remaining undistributed.
The information collected in these reports is used by this agency to calculate quarterly Federal grant awards and incentive payments to States, to enable oversight of the financial management of the program for both States and Tribes and may be included in statistical and financial reports available to the public.
In compliance with the requirements of the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44 U.S.C. Chap 35), the Administration for Children and Families is soliciting public comment on the specific aspects of the information collection described above. Copies of the proposed collection of information can be obtained and comments may be forwarded by writing to the Administration for Children and Families, Office of Planning, Research and Evaluation, 330 C Street SW., Washington, DC 20201. Attn: ACF Reports Clearance Officer. Email address:
The Department specifically requests comments 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) 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. Consideration will be given to comments and suggestions submitted within 60 days of this publication.
Food and Drug Administration, HHS.
Notice of availability.
The Food and Drug Administration (FDA, the Agency, or we) is announcing the availability of a revised draft guidance for industry on generic difluprednate emulsion, entitled “Draft Guidance on Difluprednate.” The recommendations provide specific guidance on the design of bioequivalence (BE) studies to support abbreviated new drug applications (ANDAs) for difluprednate emulsion.
Although you can comment on any guidance at any time (see 21 CFR 10.115(g)(5)), to ensure that the Agency considers your comments on this draft guidance before it begins work on the final version of the guidance, submit either electronic or written comments on the draft guidance by April 17, 2017.
You may submit comments as follows:
Submit electronic comments in the following way:
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• 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:
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• 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 draft guidance to the Division of Drug Information, Center for Drug Evaluation and Research, Food and Drug Administration, 10001 New Hampshire Ave., Hillandale Building, 4th Floor, Silver Spring, MD 20993-0002. Send one self-addressed adhesive label to assist that office in processing your requests. See the
Xiaoqiu Tang, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 75, Rm. 4730, Silver Spring, MD 20993-0002, 301-796-5850.
In the
As described in that guidance, FDA adopted this process to develop and disseminate product-specific BE guidances and to provide a meaningful opportunity for the public to consider and comment on the guidance. This notice announces the availability of revised draft BE recommendations for generic difluprednate emulsion.
FDA initially approved new drug application 022212 for DUREZOL (difluprednate emulsion) in June 2008. In January 2016, FDA issued a draft guidance for industry on BE recommendations for generic difluprednate emulsion. We are now issuing a revised draft guidance for industry on BE recommendations for difluprednate emulsion (“Draft Guidance on Difluprednate”).
In September 2016, Alcon Pharmaceuticals, Ltd. and its affiliated company, Novartis Pharmaceuticals Corporation, submitted a citizen petition requesting that FDA take several actions with respect to ANDAs for difluprednate emulsion, including regarding the demonstration of BE for any ANDA referencing DUREZOL. FDA has reviewed the issues raised in this citizen petition and is responding to the citizen petition separately in the docket for that citizen petition (Docket No. FDA-2016-P-2781, available at
This draft guidance is being issued consistent with FDA's good guidance practices regulation (21 CFR 10.115). The draft guidance, when finalized, will represent the current thinking of FDA on the design of BE studies to support ANDAs for difluprednate emulsion. 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 with access to the Internet may obtain the draft guidance at either
National Institutes of Health, HHS.
Notice.
The invention listed below is owned by an agency of the U.S. Government and is available for licensing to achieve expeditious commercialization of results of federally-funded research and development. Foreign patent applications are filed on selected inventions to extend market coverage for companies and may also be available for licensing.
Licensing information and copies of the patent applications listed below may be obtained by communicating with the indicated licensing contact at the Technology Transfer and Intellectual Property Office, National Institute of Allergy and Infectious Diseases, 5601 Fishers Lane, Rockville, MD 20852; tel. 301-496-2644. A signed Confidential Disclosure Agreement will be required to receive copies of unpublished patent applications.
Technology description follows.
This technology is available for licensing for commercial development in accordance with 35 U.S.C. 209 and 37 CFR part 404, as well as for further development and evaluation under a research collaboration.
The Office of the Secretary of the Department of Health and Human Services (HHS) is seeking nominations for an individual to serve as a nonfederal public member on the Muscular Dystrophy Coordinating Committee.
Nominations are due by 5 p.m. EST on March 17, 2017.
Nominations must be sent to Glen Nuckolls, Ph.D., by email to
Glen Nuckolls, Ph.D., by email to
The Muscular Dystrophy Coordinating Committee (MDCC) is a federal advisory committee established in accordance with the Muscular Dystrophy Community Assistance, Research, and Education Amendments of 2001 (MD-CARE Act; Pub. L. 107-84). The MD-CARE Act was reauthorized in 2008 by Pub. L. 110-361, and again in 2014 by Pub. L. 113-166. The MD-CARE Act specifies that the committee membership be composed of 2/3 governmental agency representatives and 1/3 public members. We are seeking nominations for four non-federal, public members at this time, due to turnover of committee membership. Nominations will be accepted between February 17 and March 17, 2017.
Nominations must include contact information for the nominee, a current curriculum vitae or resume of the nominee and a paragraph describing the qualifications of the person to represent some portion(s) of the muscular dystrophy research, advocacy and/or patient care communities.
More information about the MDCC is available at
Notice is hereby given of a change in the meeting of the Genetic Variation and Evolution Study Section, February 16, 2017, 08:00 a.m. to February 17, 2017, 07:00 p.m., Renaissance M Street Hotel, 1143 New Hampshire Avenue NW., Washington, DC 20037 which was published in the
The meeting will be held on 02/17/2017 instead of 02/16/2017-02/17/2017. The meeting time and location remains the same. 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 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 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.
National Institutes of Health, HHS.
Notice.
The invention listed below is owned by an agency of the U.S. Government and is available for
Licensing information and copies of the patent applications listed below may be obtained by communicating with the indicated licensing contact at the Technology Transfer and Intellectual Property Office, National Institute of Allergy and Infectious Diseases, 5601 Fishers Lane, Rockville, MD 20852; tel. 301-496-2644. A signed Confidential Disclosure Agreement will be required to receive copies of unpublished patent applications.
Technology description follows.
This technology is available for licensing for commercial development in accordance with 35 U.S.C. 209 and 37 CFR part 404, as well as for further development and evaluation under a research collaboration.
National Institutes of Health, HHS.
Notice.
The invention listed below is owned by an agency of the U.S. Government and is available for licensing to achieve expeditious commercialization of results of federally-funded research and development. Foreign patent applications are filed on selected inventions to extend market coverage for companies and may also be available for licensing.
Licensing information and copies of the patent applications listed below may be obtained by communicating with the indicated licensing contact at the Technology Transfer and Intellectual Property Office, National Institute of Allergy and Infectious Diseases, 5601 Fishers Lane, Rockville, MD 20852; tel. 301-496-2644. A signed Confidential Disclosure Agreement will be required to receive copies of unpublished patent applications.
Technology description follows.
This technology is available for licensing for commercial development in accordance with 35 U.S.C. 209 and 37 CFR part 404, as well as for further development and evaluation under a research collaboration.
• Development of this technology into a vaccine may protect vulnerable populations from both Malaria transmission and Typhoid fever.
• This technology has significant advantages over current treatments, since there is currently only one commercial Malaria vaccine licensed for use in Europe only, which was not developed to address Malaria transmission, and the currently licensed Salmonella typhi vaccines show incomplete efficacy and do not provide long-term immunity. A formulation of the present technology has shown the ability to induce an immune response to Pfs25 in excess of 100 times higher and Salmonella typhi antigen 20-40 times higher than what is seen by immunization with either antigen alone.
• In vivo data available (animal).
Department of Homeland Security.
Committee Management; Notice of Federal Advisory Committee Meeting.
The President's National Security Telecommunications Advisory Committee (NSTAC) will meet via teleconference on Friday, March 3, 2017. The meeting will be open to the public.
The NSTAC will meet on Friday, March 3, 2017, from 12:00 p.m. to 1:00 p.m. Eastern Standard Time (EST). Please note that the meeting may close early if the committee has completed its business.
The meeting will be held via conference call. For access to the conference call bridge, information on services for individuals with disabilities, or to request special assistance to attend, please email
Members of the public are invited to provide comment on the issues that will be considered by the committee as listed in the
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A public comment period will be held during the conference call on Friday, March 3, 2017, from 12:40 p.m. to 12:55 p.m. EST. Speakers who wish to participate in the public comment period must register in advance and can do so by emailing
Helen Jackson, NSTAC Designated Federal Officer, Department of Homeland Security, (703) 235-5321 (telephone) or
Notice of this meeting is given under the
United States Section, International Boundary and Water Commission, United States and Mexico.
Notice of Availability of the Final Environmental Assessment (EA) and Finding of No Significant Impact (FONSI).
Pursuant to Section 102(2)(c) of the National Environmental Policy Act of 1969; the Council on Environmental Quality Final Regulations (40 CFR parts 1500 through 1508); and the United States Section, Operational Procedures for Implementing Section 102 of NEPA, published in the
Gilbert Anaya, Division Chief, Environmental Management Division; United States Section, International Boundary and Water Commission; 4171 N. Mesa, C-100, El Paso, Texas 79902. Telephone: (915) 832-4702, email:
U.S. International Trade Commission.
Notice.
Notice is hereby given that the U.S. International Trade Commission has determined not to review the presiding administrative law judge's (“ALJ”) initial determination (“ID”) (Order No. 44) granting a joint motion to terminate the investigation in its entirety based upon settlement.
Panyin A Hughes, Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone (202) 205-3042. 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 Inv. No. 337-TA-997 on May 18, 2016, based on a complaint filed by ResMed Corporation of San Diego, California; ResMed Incorporated of San Diego, California; and ResMed Limited of New South Wales, Australia (collectively, “ResMed”). 81 FR 31255-56 (May 18, 2016). The complaint alleges violations of section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain sleep-disordered breathing treatment systems and components thereof that infringe one or more claims of U.S. Patent No. RE44,453; U.S. Patent No. 8,006,691; U.S. Patent No. 8,020,551; and U.S. Patent No. 9,072,860. The notice of investigation named the following respondents: BMC Medical Co., Ltd. of Beijing, China; 3B Medical, Inc. of Lake Wales, Florida; and 3B Products, L.L.C., of Lake Wales, Florida (collectively “BMC”). The Office of Unfair Import Investigations (“OUII”) is not participating in the investigation.
On January 23, 2017, ResMed and BMC filed a joint motion to terminate the investigation in its entirety based upon settlement.
On January 24, 2017, the ALJ issued the subject ID, granting the joint motion to terminate the investigation in its entirety based upon settlement. The ALJ found that confidential and public copies of the settlement agreement were provided in compliance with the requirements of Commission Rule 210.21(b)(1) (19 CFR 210.21(b)(1)), and that terminating the investigation would not be contrary to the public interest.
The Commission has determined not to review the ID.
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 the U.S. International Trade Commission has determined not to review an initial determination (“ID”) (Order No. 24) of the presiding administrative law judge (“ALJ”), terminating the above-captioned investigation as to respondents A-Z Wheels, LLC, Galaxy Wheels & Tires, LLC, and Infobahn International, Inc., all of San Diego, California (collectively, “the last remaining respondents”), based on withdrawal of the allegations in the complaint. The Commission has also determined to terminate the investigation.
Clint Gerdine, Esq., Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone (202) 708-2310. 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 June 17, 2016, based on a complaint filed on behalf of Daimler AG of Stuttgart, Germany. 81 FR 39711-12. The complaint alleges violations of section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, by reason of infringement of the following U.S. design patents and U.S. registered trademarks: D542,211 (“the 'D211 patent”); D582,330 (“the 'D330 patent”);
On August 18, 2016, the Commission issued notice of its determination not to review the ALJ's ID (Order No. 11) terminating the investigation as to ASPEC based on a consent order stipulation and proposed consent order. On September 30, 2016, the Commission issued notice of its determination not to review the ALJ's ID (Order No. 14) terminating the investigation as to Powerwheels Pro based on a consent order stipulation and proposed consent order. On November 2, 2016, the Commission issued notice of its determination not to review the ALJ's ID (Order No. 15) terminating the investigation as to the 'D726 patent and the CLS 500 mark based on withdrawal of the complaint as to these allegations. On December 2, 2016, the Commission issued notice of its determination not to review the ALJ's ID (Order No. 16) terminating the investigation as to American Tire based on a consent order stipulation, proposed consent order, and settlement agreements. On December 16, 2016, the Commission issued notice of its determination not to review the ALJ's IDs (Order Nos. 17, 18) terminating the investigation as to Onyx and Trade Union, each based on a consent order stipulation, proposed consent order, and settlement agreement. On the same date, the Commission issued notice of its determination not to review the ALJ's ID (Order No. 19) terminating the investigation as to Amazon based on withdrawal of the allegations in the complaint as to Amazon. On January 6, 2017, the Commission issued notice of its determination not to review the ALJ's ID (Order No. 21) terminating the investigation as to the 'D211, 'D330, 'D776, 'D726, 'D760, 'D823, 'D150, 'D733, and 'D772 patents; and the CLS 500, CLS 550, CLS 63, S 550, CLS-CLASS, S-CLASS, ML, and CLS marks based on withdrawal of the complaint as to these allegations. On February 2, 2017, the Commission issued notice of its determination not to review the ALJ's ID (Order No. 23) terminating the investigation as to OEW based on a consent order stipulation, proposed consent order, and settlement agreement.
On January 17, 2017, the complainant filed an unopposed motion to terminate the investigation as to the last remaining respondents based on withdrawal of the allegations in the complaint as to these respondents. In the motion, the complainant states that there are no other agreements, written or oral, express or implied between the parties concerning the subject matter of the investigation.
The ALJ issued the subject ID on January 23, 2017, granting the motion for termination. He found that the motion satisfied Commission Rule 210.21(a)(1) (19 CFR 210.21(a)(1)) and that there are no extraordinary circumstances that warrant denying the motion. No party petitioned for review of the subject ID.
The Commission has determined not to review the ID and has terminated the investigation.
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.
United States International Trade Commission.
February 22, 2017 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-556 and 731-TA-1311 (Final) (Truck and Bus Tires from China). The Commission is currently scheduled to complete and file its determinations and views of the Commission by March 13, 2017.
5. Vote in Inv. No. 731-TA-1091 (Second Review) (Artists' Canvas from China). The Commission is currently scheduled to complete and file its determination and views of the Commission by March 2, 2017.
6. 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.
Pursuant to the Antitrust Procedures and Penalties Act, 15 U.S.C. 16(b)-(h),
Pursuant to the Court's January 19, 2017 minute order, comments were published electronically and are available to be viewed and downloaded at the Antitrust Division's Web site, at:
Copies of the comments and the response are available for inspection at the Department of Justice, Antitrust Division, Antitrust Documents Group, 450 Fifth Street NW., Suite 1010, Washington, DC 20530 (telephone: (202) 514-2481), and at the Office of the Clerk of the United States District Court for the District of Columbia. Copies of any of these materials may also be obtained upon request and payment of a copying fee.
Pursuant to the requirements of the Antitrust Procedures and Penalties Act (the “APPA” or “Tunney Act”), 15 U.S.C. §§ 16(b)-(h), the United States hereby responds to the twelve public comments received regarding the proposed Final Judgment in this case. After careful consideration of the submitted comments, the United States continues to believe that the proposed Final Judgment will provide an effective and appropriate remedy for the antitrust violation alleged in the Complaint. The United States will move the Court for entry of the proposed Final Judgment after the public comments and this response have been published pursuant to 15 U.S.C. § 16(d).
On November 11, 2015, Anheuser-Busch InBev SA/NV (“ABI”) entered into an agreement to acquire SABMiller plc (“SABMiller”) (collectively, “Defendants”) in a transaction valued at approximately $107 billion. On July 20, 2016, the United States filed a civil antitrust Complaint, seeking to enjoin ABI from acquiring SABMiller. The Complaint alleges that ABI's proposed acquisition of SABMiller likely would substantially lessen competition in the sale of beer to customers in the United States in violation of Section 7 of the Clayton Act, 15 U.S.C. § 18.
Simultaneously with the filing of the Complaint, the United States filed a proposed Final Judgment, a Stipulation signed by Plaintiff and Defendants consenting to entry of the proposed Final Judgment after compliance with the requirements of the Tunney Act, 15 U.S.C. § 16, and a Competitive Impact Statement (“CIS”) describing the transaction and the proposed Final Judgment. The United States published the proposed Final Judgment and CIS in the
The APPA requires that proposed consent judgments in antitrust cases
(A) the competitive impact of such judgment, including termination of alleged violations, provisions for enforcement and modification, duration of relief sought, anticipated effects of alternative remedies actually considered, whether its terms are ambiguous, and any other competitive considerations bearing upon the adequacy of such judgment that the court deems necessary to a determination of whether the consent judgment is in the public interest; and
(B) the impact of entry of such judgment upon competition in the relevant market or markets, upon the public generally and individuals alleging specific injury from the violations set forth in the complaint including consideration of the public benefit, if any, to be derived from a determination of the issues at trial.
The public interest inquiry is necessarily a limited one because, as courts have repeatedly held, the government is entitled to deference when determining whether a proposed settlement provides an effective and appropriate remedy for the alleged antitrust violation.
Under the APPA, a court considers, among other things, the relationship between the remedy secured and the specific allegations set forth in the government's complaint, whether the decree is sufficiently clear, whether the enforcement mechanisms are sufficient, and whether the decree may harm third parties.
In determining whether a proposed settlement is in the public interest, “the court `must accord deference to the government's predictions about the efficacy of its remedies.' ”
Courts “may not require that the remedies perfectly match the alleged violations.”
A “proposed decree must be approved even if it falls short of the remedy the court would impose on its own, as long as it falls within the range of acceptability or is within the reaches of the public interest.”
In its 2004 amendments to the Tunney Act,
The proposed Final Judgment is the culmination of a thorough nine month investigation conducted by the Antitrust Division of the United States Department of Justice (the “Department”). In investigating the proposed transaction's likely competitive effects, the Department collected more than 1.4 million documents from the Defendants and third parties, conducted over 70 interviews of beer industry participants, took numerous party depositions, and coordinated with both state and foreign competition agencies reviewing the transaction. The Department carefully analyzed the information it obtained from these sources, as well as publicly available information, and thoroughly considered all of the competitive issues presented.
Based on evidence gathered during its investigation, the Department concluded that ABI's proposed acquisition of SABMiller would likely substantially lessen competition in the sale of beer to U.S. customers both nationally and in every local market in the United States by eliminating head-to-head competition between ABI and MillerCoors LLC (“MillerCoors”). The proposed transaction would have eliminated competition between ABI and MillerCoors—the two largest beer brewers in the United States—because it would have given ABI a majority ownership interest in and 50% governance rights over MillerCoors, which was a joint venture between SABMiller and Molson Coors Brewing Company (“Molson Coors”) through which SABMiller conducted substantially all of its U.S. operations. Accordingly, the Department filed a civil antitrust lawsuit to block the acquisition as a violation of Section 7 of the Clayton Act, 15 U.S.C. § 18.
The proposed Final Judgment provides an effective and appropriate remedy for the transaction's likely competitive harm by requiring ABI to divest SABMiller's equity and ownership stake in MillerCoors, as well as certain other assets related to MillerCoors' business and the Miller-branded beer business outside of the United States. After the Department filed the proposed Final Judgment, ABI acquired SABMiller and divested these assets to Molson Coors. The divestiture preserves competition in the U.S. beer industry by ensuring that MillerCoors continues to be an independent and viable competitor because it provides MillerCoors with (i) perpetual, royalty-free licenses to products for which it previously had to pay royalties, and (ii) ownership of the rights to the Miller beer brands.
To further help preserve and promote competition in the U.S. beer industry, the proposed Final Judgment (i) imposes certain restrictions on ABI's distribution practices and ownership of distributors, and (ii) requires ABI to provide the United States with notice of future acquisitions, including acquisitions of beer distributors and craft brewers, prior to their consummation. Among other things, the proposed Final Judgment prohibits ABI from:
During the 60-day comment period, the Department received twelve comments regarding the proposed Final Judgment. These comments came from individuals representing four beer wholesaler associations (Beer Distributors of Oklahoma, Virginia Beer Wholesalers Association Inc., Wholesale Beer Association Executives, and National Beer Wholesalers Association), two brewers (D.G. Yuengling & Son, Inc. and Ninkasi Brewing Company), Consumer Watchdog (a consumer advocacy organization), American Beverage Licensees (a national trade association), the Brewers Association, the North Carolina Department of Justice, the International Brotherhood of Teamsters, and Stephen Calkins, Professor of Law, Wayne State University.
In connection with sharing recommendations on how the proposed Final Judgment could be improved, many commenters acknowledged the meaningful protections for consumers and competition that the Department achieved through the proposed Final Judgment. For example:
Many of the public comments fall into one of three broad categories: (1) comments related to the restrictions imposed by the proposed Final Judgment on ABI's distribution practices and ownership of distributors, (2) comments related to ABI's ownership of craft brewers and beers, and (3) comments related to the brewery owned by MillerCoors in Eden, North Carolina (the “Eden brewery”). There were other comments as well. Below are summaries of the issues raised by the commenters and the United States' responses to those issues.
The principal harm alleged in the Complaint is the reduction in competition that would have resulted from ABI's acquisition of SABMiller's interest in MillerCoors. In the absence of a remedy, ABI's proposed acquisition of SABMiller would have given ABI a majority ownership interest in and 50% governance rights over MillerCoors. That would have eliminated head-to-head competition between the two largest brewers in the United States. Thus, the likely effect of the acquisition would have been to substantially lessen competition in the sale of beer to U.S. consumers both nationally and in every local market in the United States.
In addition, the Complaint alleged that ABI's acquisition of SABMiller would have increased ABI's incentive and ability to disadvantage its high-end rivals—such as brewers of craft and import beers—by limiting the distribution of their beers. With the elimination of MillerCoors as a competitive constraint, ABI's high-end rivals would have become a more important constraint on ABI's ability to raise beer prices. ABI would thus have had a greater incentive to invest resources in distributor acquisitions and to use practices that restrict its high-end rivals' access to distribution. Further, with control over the MillerCoors beer brands, ABI could have encouraged the distributors of both ABI brands and MillerCoors brands to limit their sales of ABI's high-end rivals' beer, which would likely have resulted in increased beer prices and fewer choices for consumers.
The proposed Final Judgment secures a structural remedy to address the harm alleged in the Complaint. Specifically, the proposed Final Judgment requires ABI to divest SABMiller's equity and ownership stake in MillerCoors, as well as certain other assets related to MillerCoors' business and the Miller-branded beer business outside of the United States. The divestiture buyer, Molson Coors, acquired the assets necessary to maintain MillerCoors as an independent competitor. The proposed Final Judgment did not permit ABI to acquire any SABMiller asset that was used to compete in the markets for beer in the United States. Consequently, the divesture ensures that ABI's acquisition of SABMiller will not result in ABI's market share increasing or the U.S. beer industry becoming more concentrated.
As the United States explained in the CIS, however, the divestiture to Molson Coors alone, without additional relief, could lead to conditions that might increase ABI's incentive to disadvantage its high-end rivals by limiting the distribution of their beers. The United States noted that unlike MillerCoors, which competed directly against ABI only in the United States, Molson Coors competes against ABI in multiple countries throughout the world.
If the divestiture facilitates coordination between ABI and Molson Coors, it would also increase ABI's incentive to limit competition from its high-end rivals. This is because competition from high-end rivals would become an even more important constraint on the ability of ABI and Molson Coors to increase the prices of their beers across all segments. As a result, following a divestiture to Molson Coors, ABI may have a greater incentive to impede the growth and reduce the competitiveness of its high-end rivals by limiting their access to effective and efficient distribution. The extent to which craft and other brewers in the United States are able to compete with ABI and Molson Coors will thus affect the likelihood of the divestiture to Molson Coors leading to unilateral or coordinated anticompetitive effects.
For these reasons, the restrictions on ABI's distribution practices in Section V of the proposed Final Judgment were crafted in order to preserve and promote competition in the U.S. beer industry by limiting ABI's ability to disadvantage its rivals in their efforts to compete for consumer demand. As a result, Section V of the proposed Final Judgment prevents ABI from engaging in distribution practices that long pre-dated the announcement of its proposed acquisition of SABMiller.
For example, Section V of the proposed Final Judgment eliminates certain restrictions that ABI had placed on Independent Distributors
Accordingly, the proposed Final Judgment provides an effective and appropriate remedy for the likely competitive harm arising out of ABI's acquisition of SABMiller by:
So long as ABI does not “require or encourage an Independent Distributor to provide less than best efforts to the sale, marketing, advertising, retail placement, or promotion of any Third-Party Brewer's Beer or to discontinue the distribution of a Third-Party Brewer's Beer,” Section V.D of the proposed Final Judgment permits ABI to “condition incentives, programs, or contractual terms based on an Independent Distributor's volume of sales of Defendant ABI's Beer, the retail placement of Defendant ABI's Beer, or on Defendant ABI's percentage of Beer industry sales in a geographic area (such percentage not to be defined by reference to or derived from information obtained from Independent Distributors concerning their sales of any Third-Party Brewer's Beer).” Three commenters urged that Section V.D be revised to eliminate entirely ABI's ability to condition incentives, programs, or contractual terms on ABI's percentage of Beer industry sales in a geographic area.
At the time the Complaint was filed, ABI's Wholesaler Equity Agreement prohibited an Independent Distributor from requesting that a bar replace an ABI tap handle with a competitor's tap handle, requesting that a retailer replace ABI shelf space with a competitor's beer, and compensating its salespeople for their sales of competing beer brands (such as a dollar-per-case incentive), unless the Independent Distributor provided the same incentives for sales of certain ABI beer brands.
Section V of the proposed Final Judgment prohibits ABI from continuing these practices which encouraged Independent Distributors to favor ABI beer over competing beers in their portfolios. Consequently, the proposed remedy secures substantial benefits for millions of Americans and advances competition. At the same time, the proposed Final Judgment recognizes that ABI has a legitimate interest in Independent Distributors growing ABI's percentage of all Beer industry sales in the areas in which the Distributors sell ABI's Beer. As a result, the proposed Final Judgment appropriately acknowledges ABI's interest in competing while at the same time prohibiting ABI's prior practices of conditioning incentives, programs, and contractual terms on an Independent Distributor's sale of ABI beer relative to the sale of Third-Party Brewers' beer
Thus, giving deference to the Department's assessment, and considered in conjunction with the proposed Final Judgment's other distribution-related relief, allowing ABI to condition incentives, programs, and contractual terms on ABI's percentage of Beer industry sales in a geographic area is within the reaches of the public interest.
Section V.D of the proposed Final Judgment provides that “Defendant ABI may require an Independent Distributor to allocate to Defendant ABI's Beer a proportion of the Independent Distributor's annual spending on Beer promotions and incentives not to exceed the proportion of revenues that Defendant ABI's Beer constitutes in the Independent Distributor's overall revenue for Beer sales in the preceding year.” Three commenters urged that this language be revised, either to make the allocation based on the proportion of the Independent Distributor's revenues received in the current year
This provision protects competition while also recognizing that ABI has a legitimate competitive interest in encouraging Independent Distributors to allocate to ABI a proportion of their annual spending on Beer promotions and incentives. As the Department explained in the CIS, in any geographic area, an Independent Distributor “provides the exclusive path to market for ABI's beers, and therefore ABI may be reluctant to invest in its distributors without some assurance that those investments will not be used primarily to benefit its rivals.” CIS at 21. As a result, the proposed Final Judgment allows ABI to require a proportional allocation of an Independent Distributor's spending on Beer promotions and incentives based on the Independent Distributor's previous-year overall revenues. The primary reason that prior-year data were chosen as the measure was to promote accuracy and certainty for the calculations—something that would not be possible if, as proposed by some commenters, the allocation were based on projections for current-year revenues.
The Department acknowledges that, because the proposed Final Judgment does not provide a carve-out for products newly added to an Independent Distributor's portfolio, the possibility exists that if an Independent Distributor derived 100% of its prior-
First, at the time the Department filed the Complaint, the vast majority of Independent Distributors already derived some of their revenues from Third-Party Brewers' Beer. Second, there are alternative avenues for promotion of a newly added product to an Independent Distributor's portfolio. For example, the proposed Final Judgment does not restrict or prevent Third-Party Brewers from providing money to Independent Distributors to promote and incentivize Independent Distributors to sell the Third-Party Brewers' Beer—including products newly added to an Independent Distributor's portfolio. If a Third-Party Brewer provides to an Independent Distributor a dollar-per-case incentive to sell a new Beer product, that dollar-per-case amount would not be promotional spending
Finally, Section V.D of the proposed Final Judgment improves the status quo by placing a restriction—where none existed before—on ABI's ability to demand that Independent Distributors allocate more than a proportional amount of their spending on Beer promotions and incentives to the ABI Beer in their portfolios. Thus, giving deference to the Department's assessment, allowing ABI to require a proportional allocation of an Independent Distributor's annual spending on Beer promotions and incentives based on the Independent Distributor's previous-year overall revenues is within the reaches of the public interest.
Two comments questioned how ABI can both be prohibited from preventing Independent Distributors from using their best efforts to sell, market, advertise, or promote any Third-Party Brewer's Beer while at the same time being allowed to require Independent Distributors to use their best efforts to sell, market, advertise, or promote ABI's Beer.
The Department does not find the provisions (a) allowing ABI to require an Independent Distributor to provide best efforts to sell, market, advertise, or promote ABI's Beer and (b) prohibiting ABI from preventing an Independent Distributor from providing its best efforts regarding Third-Party Brewers' Beer, to be in conflict. Section V.D.5 of the proposed Final Judgment prohibits ABI from “[p]reventing an Independent Distributor from using best efforts to sell, market, advertise, or promote any Third-Party Brewer's Beer, which may be defined as efforts designed to achieve and maintain the highest practicable sales volume and retail placement of the Third Party Brewer's Beer in a geographic area.” Section V.D continues in relevant part: “Notwithstanding the foregoing, nothing in this Final Judgment shall prohibit Defendant ABI from entering into or enforcing an agreement with any Independent Distributor requiring the Independent Distributor to use best efforts to sell, market, advertise, or promote Defendant ABI's Beer, which may be defined as efforts designed to achieve and maintain the highest practicable sales volume and retail placement of Defendant ABI's Beer in a geographic area.” An Independent Distributor may provide its best efforts to competing brands of Beer in its portfolio.
Section V.E of the proposed Final Judgment prohibits ABI from disapproving “an Independent Distributor's selection of a general manager or successor general manager based on the Independent Distributor's sales, marketing, advertising, promotion, or retail placement of a Third-Party Brewer's Beer.” Three comments argued for broadening or clarifying these restrictions. Virginia Beer Wholesaler Association urged the Department to prohibit ABI from requiring that the general manager of an Independent Distributor purchase an equity stake in the Independent Distributor.
First, the fact that ABI may require a general manager of an Independent Distributor to purchase an equity stake in the Independent Distributor was not at issue in the ABI/SABMiller transaction. For that reason, the Complaint does not allege and the CIS does not identify any harm to competition resulting from requiring any such equity stake. Accordingly, a remedy directed to such a requirement is beyond the scope of this APPA proceeding, and the absence of such a remedy does not provide a basis for rejecting the proposed Final Judgment.
Second, while Section V.E of the proposed Final Judgment does not refer to specific measures of an Independent Distributor's success in selling ABI Beer such as ABI-imposed volume thresholds for Beer sales or tap handles, it does restrict ABI's general manager disapproval rights related to an Independent Distributor's success in selling Third-Party Brewers' Beer. Accordingly, Section V.E properly balances ABI's legitimate interest in ensuring that Independent Distributors have managers that can successfully market and sell ABI Beer in their respective distribution territories against the danger of allowing ABI to disapprove a general manager or successor general manager based on the Independent Distributor's sales, marketing, advertising, promotion, or retail placement of a Third-Party Brewer's Beer.
Finally, with respect to commenter NBWA's characterization of the restrictions on ABI in Section V.E as inconsistent with the restrictions on ABI in V.F,
Thus, giving deference to the Department's assessment, the restrictions in the proposed Final Judgment on ABI's ability to disapprove the general manager and successor general manager of Independent Distributors are within the reaches of the public interest.
Section V.F of the proposed Final Judgment places restrictions on ABI in connection with its exercise of rights related to the transfer of control, ownership, or equity of Distributors. Commenter D.G. Yuengling & Son, Inc. (“Yuengling”) asks that ABI's ability to exercise those rights be eliminated or, alternatively, that Section V.F be broadened to require ABI to explain any decision that it makes when exercising a right related to the transfer of control, ownership, or equity of a Distributor and to set forth a procedure by which the Department will review ABI's decision.
Section V.F restricts ABI's ability to exercise any rights related to the transfer, ownership, control, or equity of Distributors by prohibiting ABI from giving weight to or basing its decision to exercise such rights on a Distributor's business relationship with a Third-Party Brewer. These restrictions are intended to prevent ABI from using its rights over management or ownership changes to promote alignment by selecting new owners because they have demonstrated a willingness not to carry or promote rival brands. Thus, the restrictions help ensure that ABI cannot exercise its rights related to the ownership or control of Distributors in a manner that harms competition or disadvantages ABI's rivals. An absolute ban is unnecessary, especially because competitively permissible reasons could exist for ABI to seek to exercise such rights. In addition, pursuant to Section VIII.B, a Monitoring Trustee will monitor ABI's compliance with Section V.F and recommend appropriate remedial measures if the Monitoring Trustee determines that ABI has violated its provisions. Should the Monitoring Trustee or anyone else bring an alleged violation to the Department's attention, the Department already has well-established procedures for reviewing such allegations. No additional procedures need be specified in the proposed Final Judgment.
Giving deference to the Department's assessment, imposing the Section V.F restrictions on ABI's exercise of rights related to the transfer of control, ownership, or equity in any Distributor to any other Distributor is within the reaches of the public interest.
Section V.B of the proposed Final Judgment prohibits ABI from acquiring any equity interests in, or any ownership or control of the assets of, a Distributor if more than 10% of ABI's Beer in the United States would be sold by ABI-Owned Distributors after the acquisition. Five comments called for the proposed Final Judgment to be amended to place additional restrictions on ABI's ownership of Distributors, ranging from a total ban on ABI's acquisition of additional Distributors to a state-by-state rather than a nationwide volume cap to requiring ABI to divest all ABI-Owned Distributors.
Commenter Beer Distributors of Oklahoma urged that ABI be required to divest all ABI-Owned Distributors,
Moreover, nothing in the proposed Final Judgment provides ABI with any antitrust exemption for acquisitions of Distributors—even if ABI remains below the 10% limit set forth in Section V.B of the proposed Final Judgment. To the contrary, the notification provisions in Section XII of the proposed Final Judgment, which require ABI to notify the Department about certain Distributor acquisitions that are not otherwise reportable under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), ensure that the Department will have the opportunity to evaluate the likely competitive effects of such Distributor acquisitions before they are completed—even if the acquisition would keep ABI under the 10% cap.
Thus, giving deference to the Department's assessment, neglecting to place a total ban on future Distributor acquisitions does not place the proposed Final Judgment outside the reaches of the public interest.
Commenters Beer Distributors of Oklahoma, NBWA, and Consumer Watchdog questioned the proposed Final Judgment for imposing a 10% cap under Section V.B on a nationwide level, rather than imposing a 10% cap in each state in which ABI-Owned Distributors operate.
The Department was aware when it negotiated the proposed Final Judgment that ABI is prohibited in some states from owning Distributors and, accordingly, in states where it is allowed to own Distributors, ABI may sell more than 10% of its Beer volume through ABI-Owned Distributors. The imposition of a 10% nationwide cap—where no cap existed before—on the volume of Beer ABI can sell through ABI-Owned Distributors is a meaningful restriction on ABI's ability to restrict the sale of Third-Party Brewer's Beer through the acquisition of Distributors, especially considering, as the Department alleged in the Complaint, that ABI already sells approximately 9% of its beer in the United States through ABI-Owned Distributors.
In addition, as discussed above, the proposed Final Judgment does not convey antitrust immunity upon ABI for any future Distributor acquisitions. Should a future proposed Distributor acquisition implicate competitive concerns in a particular state or region due to high concentration levels or other reasons, the Department will have the opportunity to review such acquisition. And Section XII of the proposed Final Judgment ensures that the Department will have the necessary notice to do so.
Thus, giving deference to the Department's assessment, the 10% nationwide cap placed on the volume of Beer ABI-Owned Distributors may sell in the Territory is within the reaches of the public interest.
Commenters NBWA and Brewers Association additionally suggested that ABI could circumvent the 10% limit by selling existing ABI-Owned Distributors to “friendly” Independent Distributors and then buying more Distributors.
Commenter Professor Calkins asked the Department to clarify whether ABI can circumvent the 10% cap by acquiring a Distributor that specialized in non-ABI craft Beers and then, post-acquisition, having the Distributor sell ABI craft Beers instead.
Finally, commenter Wholesale Beer Association Executives urged the Department to include in the Section V.B 10% calculation the sales volume of any Distributor for which ABI exercises its “match-and-redirect” right—that is, assigning to the Independent Distributor of ABI's choice the ability to purchase another Distributor upon certain agreed-upon terms—because ABI “often [assigns] that right to a preferred distributor who often conforms to the policies regarding competing brand portfolios that are prohibited by the [proposed Final Judgment].”
As noted above with respect to NBWA and Brewers Association's concerns about ABI circumventing the Section V.B cap, the purpose of the cap is to limit the volume of Beer sold by ABI-Owned Distributors; other provisions in the proposed Final Judgment provide safeguards that reduce ABI's influence and control over Independent Distributors, including “friendly” Independent Distributors and those who may benefit from ABI's exercise of its “match-and-redirect” right. For example, Section V.D.1 of the proposed Final Judgment prohibits ABI from conditioning the availability of ABI's Beer on an Independent Distributor's sales, marketing, advertising, promotion, or retail placement of a Third-Party Brewer's Beer, and Section V.D.3 prohibits ABI from conditioning any agreement or program with an Independent Distributor on the fact that an Independent Distributor sells a Third-Party Brewer's Beer outside of the geographic area in which the Independent Distributor sells ABI's Beer.
Commenters NBWA and Wholesale Beer Association Executives urged the Department to broaden the definition of ABI-Owned Distributor to include additional, partially-owned Distributors, because they contend that ABI effectively controls Distributors in which it has a less-than-50% ownership stake.
Additionally, safeguards in other parts of Section V that reduce ABI's influence and control over Independent Distributors apply even where ABI has less than 50% ownership. For example, Section V.E of the proposed Final Judgment prohibits ABI from disapproving an Independent Distributor's selection of a general manager or successor general manager based on the Independent Distributor's sales, marketing, advertising, promotion, or retail placement of a Third-Party Brewer's Beer, and Section V.F provides that, when exercising any right related to the transfer of control, ownership, or equity in any Distributor to any other Distributor, ABI shall not give weight to or base any decision to exercise such right upon either
For these reasons, the ownership threshold for ABI-Owned Distributors does not undermine the effectiveness of the proposed Final Judgment.
Four commenters asked that the distribution restrictions in Section V of the proposed Final Judgment—which apply only to ABI—also be made to apply to Molson Coors.
Molson Coors is neither a defendant in this case nor a party to the proposed Final Judgment.
If in the future Molson Coors were to acquire distributors or change its distribution practices in a manner that the Department believes might be anticompetitive, or to otherwise implement anticompetitive tactics as commenter Wholesale Beer Association Executives complains, the Department would have the ability to investigate those practices and seek appropriate relief if it determines that the practices violated the antitrust laws. Limiting the applicability of the proposed Final Judgment to ABI does not place the proposed Final Judgment outside the reaches of the public interest.
NBWA urged that the proposed Final Judgment be amended to require ABI to (1) include the Final Judgment as an amendment to ABI's agreements with Independent Distributors, and (2) state in its agreements with Independent Distributors that the Final Judgment will govern any conflict between the agreements and the Final Judgment.
Section V.I of the proposed Final Judgment requires that, within ten days of the entry of the Final Judgment, ABI provide the United States, for the United States to approve in its sole discretion, with a proposed form of written notification to be provided to any Independent Distributor that distributes ABI's Beer in the Territory. Such notification must (1) explain the practices prohibited by Section V of the Final Judgment, (2) describe the changes ABI is making to any programs, agreements, or any interpretations of agreements required to comply with Section V of the Final Judgment, and (3) inform the Independent Distributor of its right, without fear of retaliation, to bring to the attention of the Monitoring Trustee any actions by ABI which the Independent Distributor believes may violate Section V of the Final Judgment.
Requiring that the Final Judgment be made an amendment to ABI's existing agreements with its Independent Distributors would not increase the protections afforded to the Independent Distributors under Section V of the proposed Final Judgment. Requiring agreements with Independent Distributors to state that the Final Judgment will control in the event of a conflict with the language of the agreements would not increase the protections afforded to Independent Distributors. Nor would either requirement provide additional levels of notice to affected Distributors.
ABI will be required to provide notice of the Final Judgment to all of its Independent Distributors
NBWA recommends that the proposed Final Judgment be modified to explicitly state that ABI may not terminate Independent Distributors based on their sales, promotion, advertising, marketing, or retail placement of Third-Party Brewers' Beer.
The proposed Final Judgment already explicitly prohibits ABI from terminating an Independent Distributor based on the latter's sales, promotion, advertising, marketing, or retail placement of a Third-Party Brewer's Beer. Section V.D prohibits ABI from penalizing or “in any other way condition[ing] its relationship with” an Independent Distributor based on “the amount of sales the Independent Distributor makes of a Third-Party Brewer's Beer or the marketing, advertising, promotion, or retail placement of such Beer.” Section V.H additionally prohibits ABI from discriminating against, penalizing, or otherwise retaliating against any Distributor because such Distributor raises, alleges, or otherwise brings to the attention of the Department or the Monitoring Trustee an actual, potential, or perceived violation of Section V of the Final Judgment.
In addition to the above, commenters requested that the relief in Section V of the proposed Final Judgment be broadened in a variety of ways. For example, commenters asked that:
As discussed in the preceding sections, the changes to ABI's practices regarding Independent Distributors imposed by the proposed Final Judgment appropriately address the competitive effects of the transaction that are alleged in the Complaint and will increase Third-Party Brewers' access to effective distribution to the substantial benefit of millions of consumers nationwide. The failure to include the additional restrictions suggested by these commenters does not move the proposed Final Judgment outside the scope of the public interest.
One commenter maintained that ABI should be prohibited from acquiring any brewers during the period of the Final Judgment.
Restricting ABI from acquiring craft breweries or requiring ABI to label its craft beer as brewed by ABI is not necessary for the proposed divestiture to be effective in remedying the harms alleged in the Complaint. Although ABI has acquired multiple craft breweries over the past several years, those acquisitions were not at issue with respect to ABI's proposed acquisition of SABMiller, and the Complaint does not contain any allegations related to those acquisitions. Beer labeling similarly was not an issue implicated by the transaction and was not made a part of the Complaint. Accordingly, a remedy directed to such requirements is beyond the scope of this APPA proceeding, and the absence of such a remedy does not provide a basis for rejecting the proposed Final Judgment.
In addition, Section XII of the proposed Final Judgment provides the Department with the ability to review ABI's acquisition of craft brewers in the United States, even if those acquisitions do not otherwise meet the filing thresholds of the HSR Act. As a result, the Department will be able to evaluate the likely competitive effects of any proposed acquisition of craft brewers by ABI and to challenge the transaction if the Department concludes that the proposed acquisition—whether by itself or in combination with other transactions or other conduct—is likely to substantially lessen competition in the U.S. beer industry.
Both the North Carolina Department of Justice (“NC DOJ”) and the International Brotherhood of Teamsters (“Teamsters”) submitted comments asserting that the Department should have required the divestiture of the MillerCoors brewery in Eden, North Carolina. MillerCoors closed the Eden brewery in September 2016. Both the NC DOJ and Teamsters assert that the Department should have required such relief because the fact that MillerCoors announced the closure of its Eden brewery two days before ABI and SABMiller announced their merger negotiations raises concerns that MillerCoors had anticompetitive motives when deciding to close this brewery and declining to sell it to another brewer.
The Department took the allegations about the closing of the Eden brewery seriously and considered the circumstances surrounding that closure during the Department's investigation of the transaction. Among other things, the Department obtained and reviewed documents related to the brewery closure, asked questions about its closure, and met with the relevant parties. In reviewing such information, the Department did not uncover evidence suggesting that MillerCoors' decision to close the Eden brewery was related to ABI's proposed acquisition of SABMiller. Accordingly, the Complaint did not allege that the Eden brewery closure was an anticompetitive effect of the transaction, nor did the Department seek relief related to the Eden brewery as part of the proposed Final Judgment.
The Department understands that the NC DOJ is conducting its own investigation into whether any competition-related laws have been violated in connection with the closure of the Eden brewery.
Additionally, the circumstances here are distinguishable from those in the ABI/Grupo Modelo matter. In ABI/Grupo Modelo, the Department required the divestiture buyer, Constellation, to purchase and expand the brewery in question because, in order for the divestiture to be effective, Constellation needed to be able to produce all Modelo-branded beer in Mexico but did not have its own Mexican brewery. As the Department noted in the Competitive Impact Statement in ABI/Grupo Modelo: “Requiring the buyer of divested assets to improve those assets for the purposes of competing against the seller is an exceptional remedy that the United States found appropriate under the specific set of facts presented here. . . . No other combination of Modelo's brewing assets would have properly addressed the competitive harm caused by the proposed merger and allowed the acquirer of the Divestiture Assets to compete as effectively and economically with ABI as Modelo does today.”
Accordingly, the NC DOJ's and the Teamsters' concerns about the closure of the Eden brewery do not provide a basis for questioning the Department's determination—which is entitled to deference—that the proposed Final Judgment provides an effective and appropriate remedy for the likely anticompetitive harm arising out of ABI's proposed acquisition of SABMiller.
Commenters raised a variety of other procedural and substantive concerns, recommending that the proposed Final Judgment be amended in numerous respects. As discussed below, these recommendations include: requiring ABI to adopt an updated antitrust compliance policy;
Consumer Watchdog and NBWA urged the Court to require ABI to update its antitrust compliance policy, with mandatory employee training.
The circumstances here do not warrant requiring ABI to have an antitrust compliance policy approved by the Department or the Monitoring Trustee. The Complaint does not allege that ABI has previously violated the antitrust laws. Rather, it asserts that ABI's acquisition of SABMiller would violate Section 7 of the Clayton Act. Moreover, the Complaint does not contain any allegations related to ABI's antitrust compliance policies.
Those circumstances distinguish this case from
Consumer Watchdog recommended that the Monitoring Trustee be given the ability to interpret the proposed Final Judgment broadly to prevent ABI from “getting around” its terms.
The Monitoring Trustee has been appointed by the Department and approved by the Court to help ensure that the proposed Final Judgment will be properly enforced. (
Under Section VIII.I of the proposed Final Judgment, the Monitoring Trustee must serve until the sale of all the Divestiture Assets is finalized, the Transition Services Agreements and the Interim Supply Agreements have expired, and all other relief has been completed as defined in Section V—unless the Department, in its sole discretion, authorizes the early termination of the Monitoring Trustee's service. Because ABI's obligations under Section V of the proposed Final Judgment will continue throughout the ten-year term of the decree, the Department may determine in its discretion that the Monitoring Trustee should serve the full ten-year term. NBWA has provided no basis for the Court to substitute NBWA's opinion that the Monitoring Trustee must be appointed for the full ten-year term of the proposed Final Judgment for the Department's discretion as to the appropriate length of the Monitoring Trustee's appointment, which, as noted above, could last throughout the duration of the decree.
Section VIII.H of the proposed Final Judgment requires the Monitoring Trustee to file reports every 90 days—or more frequently as needed—with the Department and, when appropriate, with the Court setting forth ABI's efforts to comply with its obligations under the proposed Final Judgment. Under Section VIII.B, if the Monitoring Trustee determines that ABI has violated the Final Judgment or breached a related agreement, the Monitoring Trustee must recommend an appropriate remedy to the Department, which, in its sole discretion, can accept, modify, or reject a recommendation to pursue a remedy. There is no sound basis for the Court to substitute for the Department's discretion a preference that the Monitoring Trustee's recommendations, and their resolutions, be made public.
Wayne State University Law Professor Stephen Calkins indicated that the proposed Final Judgment should make clear that, notwithstanding the proposed Final Judgment, ABI remains subject to all existing antitrust laws.
ABI remains subject to all applicable antitrust laws. The proposed Final Judgment does not restrict the application of those laws to ABI or provide an antitrust exemption to ABI for conduct addressed by the proposed Final Judgment. In fact, Section XII of the proposed Final Judgment, relating to future ABI acquisitions, places greater reporting requirements on ABI than required under the HSR Act to help ensure its compliance with applicable antitrust laws. Expressly stating in the proposed Final Judgment that the proposed Final Judgment does not supplant the antitrust laws is unnecessary.
Ninkasi asked that ABI-Owned Distributors be prohibited from managing shelf schematics at retailers that sell Beer.
As discussed above, the 10% cap in Section V.B appropriately restricts ABI's ability to use ABI-Owned Distributors to disadvantage Third-Party Brewers. Moreover, the Complaint does not include allegations related to ABI's influence over retailers, through ABI-Owned Distributors or otherwise. Nor do such concerns arise from the merger of ABI and SABMiller. Thus, Ninkasi's assertion that the Department should restrict ABI-Owned Distributors from managing retail shelf schematics concerns a matter outside the scope of this APPA proceeding.
American Beverage Licensees expressed concern that the ABI/SABMiller transaction, “along with recent actions by ABI and the market reactions they might trigger, could lead to increased vertical integration and tied-house opportunities in the beverage alcohol marketplace,” which American Beverage Licensees argues would “be to the detriment of a competitive retail beverage alcohol environment.”
The proposed Final Judgment requires ABI to divest SABMiller's entire U.S. business, which ABI did on October 12, 2016. Accordingly, the proposed Final Judgment prevents ABI from further vertically integrating through its acquisition of SABMiller. Moreover, Section XII of the proposed Final Judgment requires ABI to provide the Department with advance notice of, and an opportunity to evaluate, ABI's acquisition of Beer brewers—including brewers that own restaurants or tap rooms. This provision applies to acquisitions of brewers by ABI that would not otherwise be reportable under the HSR Act. Accordingly, the proposed Final Judgment provides the Department with an increased ability to evaluate ABI's acquisitions of brewers that own retail establishments and determine whether any such acquisitions could lead to anticompetitive effects.
Moreover, ABI's previous acquisitions of on-premise beer retailers were not at issue with respect to the ABI/SABMiller transaction, and the Complaint does not allege any harm to competition resulting from ABI's ownership of such retailers. Accordingly, a remedy directed to ABI's existing ownership of on-premise beer retailers would be outside of the scope of this APPA proceeding.
American Beverage Licensees and the Beer Distributors of Oklahoma noted that in the Complaint, the Department uses IRI data to define ABI's market share and claim that IRI data is not an appropriate measure of market share because it focuses on large stores in the off-premise channel.
The IRI data relied upon by the Department in calculating market shares provided the best available indicator of brewers' future competitive significance for the harms alleged in the Complaint. Using IRI data was therefore appropriate. Moreover, the Department did not use market share data to exclude any geographic areas from the required divestiture. Rather, the proposed Final Judgment required ABI to divest SABMiller's business throughout the United States. The Department's use of IRI data to measure market shares therefore does not affect whether the proposed Final Judgment was in the public interest.
The proposed Final Judgment does not require the use of BudNet data to measure the percentage of ABI Beer sold through ABI-Owned Distributors. Section V.B of the proposed Final Judgment prohibits ABI from acquiring “any equity interests in, or any ownership or control of the assets of, a Distributor if (i) such acquisition would transform said Distributor into an ABI-Owned Distributor, and (ii) as measured on the day of entering into an agreement for such acquisition more than ten percent (10%), by volume, of Defendant ABI's Beer sold in the Territory would be sold through ABI-Owned Distributors after such acquisition.” Attachment C to the proposed Final Judgment states that Beer volume shall be calculated based on “the most comprehensive data [used by ABI at the time of the calculation] (currently, ABI's BudNet system), during the Relevant Period.” As a result, the proposed Final Judgment contemplates the use of the most comprehensive data ABI has available. The Department believes that ABI, rather than a third party, will possess the most robust data to show the volume of its Beer sales. Moreover, both the Department and the Monitoring Trustee are well-positioned to investigate whether BudNet remains the most comprehensive data for ABI's Beer volume and ensure that ABI uses for this calculation the most comprehensive data then available.
The NBWA and Professor Calkins asserted that the proposed Final Judgment permits ABI to access sales information of its Independent Distributors, including Independent Distributors' sales of the Beers of Third-Party Brewers. They contended that ABI could use such information to take action against Independent Distributors due to the Independent Distributors' treatment of Third-Party Brewers or sales of Third-Party Brewers' Beer.
The proposed Final Judgment limits the information that ABI can request or require an Independent Distributor to report. Under Section V.G, ABI cannot request or require that Independent Distributors report, “whether in aggregated or disaggregated form, the Independent Distributor's revenues, profits, margins, costs, sales volumes, or other financial information associated with the purchase, sale, or distribution of a Third-Party Brewer's Beer.” ABI can, however, request that Independent Distributors report “general financial information . . . [for ABI] to assess the overall financial condition and financial viability of such Independent Distributor, or the percentage of total Beer revenues received by the Independent Distributor in the prior year associated with the purchase, sale, or distribution of Defendant ABI's Beer distributed by the Independent Distributor.” But, as Section V.G makes clear, ABI cannot request from Independent Distributors information that would “disclose or enable Defendant ABI to infer the disaggregated revenues, profits, margins, costs, or sales volumes associated with the Independent Distributor's purchase, sale, or distribution of Third-Party Brewers' Beer.”
The information that ABI is permitted to receive under the proposed Final Judgment is relevant to ABI's ordinary course business decisions that are unrelated to an Independent Distributor's sale of Third-Party Brewers' Beers. ABI has a legitimate interest in information about Independent Distributors' sales of ABI
Nevertheless, the NBWA argues that the information that ABI is permitted to receive “allows ABI to infer the aggregated revenue attributable to non-ABI beer” and is thus “sufficient to enable ABI to continue to target distributors that carry and promote rival brands.”
In fact, Section V.D of the proposed Final Judgment prohibits ABI from taking any adverse action against an Independent Distributor based upon that distributor's sales of a Third-Party Brewer's Beer. The proposed Final Judgment thus protects against the harm that the NBWA's comment seeks to prevent.
The Virginia Beer Wholesalers Association requested that the period for public comment be extended until after the Final Judgment has been entered and periodically reopened to allow interested parties the opportunity to review and comment on the changes that ABI proposes to make to its programs and agreements with Distributors to comply with the proposed Final Judgment.
The Tunney Act sets forth specific procedures for the Court to approve consent judgments such as the proposed Final Judgment in this case.
Finally, nothing in the proposed Final Judgment prevents state regulators from determining whether ABI's programs or agreements with Independent Distributors violate state franchise or other laws.
Commenter Brewers Association requested that the Department clarify that the proposed Final Judgment's prohibitions related to ABI's distributor incentive programs apply not only to programs that specifically reference a particular Third-Party Brewer's Beer but rather to incentive programs that apply to Third-Party Brewers' Beer in the aggregate.
The Department hereby clarifies that references to Third-Party Brewer's Beer apply individually and collectively to Third-Party Brewers.
Commenter NBWA requested that the proposed Final Judgment terminate not of its own accord at the end of a ten-year term but rather only after the Department, with the assistance of the Monitoring Trustee, has provided a report evaluating the competitive conditions in the U.S. beer industry and the Court has determined that the proposed Final Judgment has been effective.
The typical term of the Department's consent decrees resolving violations of Section 7 of the Clayton Act is ten years. In addition, Section XVIII contemplates that the ten-year term of the proposed Final Judgment may be extended by the Court.
The purpose of the proposed Final Judgment is not to broadly ensure that the U.S. beer market is competitive, but rather to cure the antitrust violations alleged in the Complaint. Thus, it is not appropriate to extend the term of the proposed Final Judgment based on a determination that the competitive conditions of the U.S. beer industry are unsatisfactory. Although the proposed
Commenter Professor Calkins requested that the Department state on its public website the last day of the 60-day period for public comments on proposed consent decrees.
The APPA sets forth specific procedures for the Court to approve consent judgments such as the proposed Final Judgment in this case.
After careful consideration of the public comments, the Department continues to believe that the proposed Final Judgment, as drafted, provides an effective and appropriate remedy for the antitrust violations alleged in the Complaint, and is therefore in the public interest. The Department will move this Court to enter the proposed Final Judgment after the comments and this response are published pursuant to 15 U.S.C. § 16(d).
Office of Justice Programs (OJP), Justice.
Notice of meeting.
This notice announces a forthcoming meeting of OJP's Science Advisory Board (“the Board”). This meeting is scheduled for March 27-28, 2017. General Function of the Board: The Board is chartered to provide OJP, a component of the Department of Justice, with valuable advice in the areas of science and statistics for the purpose of enhancing the overall impact and performance of its programs and activities in criminal and juvenile justice.
The meeting will take place on Monday, March 27 2017, from approximately 12 noon p.m. to 5:30 p.m., and on Tuesday, March 28 2017 from approximately 9 a.m. to 12 noon.
The meeting will take place in the Main Conference Room on the third floor of the Office of Justice Programs, 810 7th Street NW., Washington, DC 20531.
Katherine Darke Schmitt, Designated Federal Officer (DFO), Office of the Assistant Attorney General, Office of Justice Programs, 810 7th Street NW., Washington, DC 20531; Phone: (202) 616-7373 [Note: This is not a toll-free number]; Email:
This meeting is being convened to brief the OJP Acting Assistant Attorney General and the Board members on the progress of the subcommittees, discuss any recommendations they may have for consideration by the full Board, and brief the Board on various OJP-related projects and activities. The final agenda is subject to adjustment, but the meeting will likely include briefings of the subcommittees' activities and discussion of future Board actions and priorities. This meeting is open to the public. Members of the public who wish to attend this meeting must register with Katherine Darke Schmitt at the above address at least seven (7) calendar days in advance of the meeting. Registrations will be accepted on a space available basis. Access to the meeting will not be allowed without registration. Persons interested in communicating with the Board should submit their written comments to the DFO, as the time available will not allow the public to directly address the Board at the meeting. Anyone requiring special accommodations should notify Ms. Darke Schmitt at least seven (7) calendar days in advance of the meeting.
Mine Safety and Health Administration, Labor.
Funding Opportunity Announcement (FOA).
The U.S. Department of Labor (DOL), Mine Safety and Health Administration (MSHA), is making up to $1,000,000 available in grant funds for education and training programs to help identify, avoid, and prevent unsafe working conditions in and around mines. The focus of these grants for Fiscal Year (FY) 2017 will be on training and training materials to better identify, avoid and prevent unsafe working conditions in and around mines. Applicants for the grants may be States (to include the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Commonwealth of the Mariana Islands) and private or public nonprofit entities, to include Indian tribes, tribal organizations, Alaska Native entities, Indian-controlled organizations serving Indians, and Native Hawaiian organizations. MSHA could award as many as 20 grants. The amount of each individual grant will be at least $50,000.00 and the maximum individual award will be $250,000. MSHA may incrementally fund these grants based on milestones and availability of funds. This notice contains all of the information needed to apply for grant funding.
The closing date for applications will be March 24, 2017, (no later than 11:59 p.m. EST). MSHA will award grants on or before April 10, 2017.
Grant applications for this competition must be submitted
Any questions regarding this FOA 17-3BS should be directed to Janice Oates at
This solicitation provides background information and the requirements for projects funded under the solicitation. This solicitation consists of eight parts:
• Part I provides background information on the Brookwood-Sago grants.
• Part II describes the size and nature of the anticipated awards.
• Part III describes the qualifications of an eligible applicant.
• Part IV provides information on the application and submission process.
• Part V explains the review process and rating criteria that will be used to evaluate the applications.
• Part VI provides award administration information.
• Part VII contains MSHA contact information.
• Part VIII addresses Office of Management and Budget (OMB) information collection requirements.
Under Section 14 of the MINER Act, the Secretary of Labor (Secretary) is required to establish a competitive grant program called the “Brookwood-Sago Mine Safety Grants” (Brookwood-Sago grants). 30 U.S.C. 965. This program provides funding for education and training programs to better identify, avoid, and prevent unsafe working conditions in and around mines. This program will use grant funds to establish and implement education and training programs or to create training materials and programs. The MINER Act requires the Secretary to give priority to mine safety demonstrations and pilot projects with broad applicability. It also mandates that the Secretary emphasize programs and materials that target miners in smaller mines, including training mine operators and miners on new MSHA standards, high-risk activities, and other identified safety priorities.
MSHA priorities for the FY 2017 funding of the annual Brookwood-Sago grants will focus on training or training materials to better identify, avoid and prevent unsafe working conditions in and around mines. MSHA expects Brookwood-Sago grantees to develop training materials or to develop and provide mine safety training or educational programs, recruit mine operators and miners for the training, and conduct and evaluate the training. MSHA will give special emphasis to programs and materials that target workers at smaller mines, including training miners and employers about new MSHA standards, high risk activities, or hazards identified by MSHA.
MSHA expects Brookwood-Sago grantees to conduct follow-up evaluations with the people who received training in their programs to measure how the training promotes the Secretary's goal to “improve workplace safety and health” and MSHA's goal to “prevent death, disease and injury from mining and promote safe and healthful workplaces for the Nation's miners.” Evaluations will focus on determining how effective their training was in either reducing hazards, improving skills for the selected training topics, or in improving the conditions in mines. Grantees must also cooperate fully with MSHA evaluators of their programs which may include data collection or provision of training curricula, materials or mechanisms.
MSHA is providing up to $1,000,000 for the 2017 Brookwood-Sago grant program which could be awarded in a maximum of 20 separate grants of no less than $50,000 each. Applicants requesting less than $50,000 or more than $250,000 for a 12-month performance period will not be considered for funding.
The performance period for these grants is April 10, 2017 through April 9, 2018. MSHA may fund these grants incrementally, subject to the availability of funds. During any continuing resolution, MSHA may award a grantee pro-rated funding. The current continuing resolution would cover the period between April 10 and April 28, 2017. If MSHA awards a grant during continuing resolutions, the amount of funds MSHA may award is based on the milestones that the grantee has provided in its application. The first milestone would cover activities from April 10 through April 28, 2017. MSHA may award additional amounts of funds to grantees through separate documents subject to availability of funds under additional continuing resolutions, a full-year continuing resolution, or a final appropriation.
MSHA may approve a request for a one time no-cost extension to grantees for an additional period from the expiration date of a milestone or other period of performance based on the success of the project and other relevant factors. See 2 CFR 200.308(d)(2).
Applicants for the grants may be States (to include the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Commonwealth of the Mariana Islands) and private or public nonprofit entities, to include Indian tribes, tribal organizations, Alaska Native entities, Indian-controlled organizations serving Indians, and Native Hawaiian organizations. Eligible entities may apply for funding independently or in partnership with other eligible organizations. For partnerships, a lead organization must be identified.
Applicants other than States (including the District of Columbia and U.S. territories), State-supported or local government-supported institutions of higher education, and tribal governments and tribal-supported institutions of higher education, will be required to submit evidence of nonprofit status, preferably from the Internal Revenue Service (IRS). A nonprofit entity as described in 26 U.S.C. 501(c)(4), which engages in lobbying activities, is not eligible for a grant award. See 2 U.S.C. 1611.
The government generally is prohibited from providing direct Federal financial assistance for inherently religious activities. See 29 CFR part 2, subpart D. Grants under this solicitation may not be used for religious instruction, worship, prayer, proselytizing, or other inherently religious activities. Neutral, non-religious criteria that neither favor nor disfavor religion will be employed in the selection of grant recipients and must be employed by grantees in the
Cost-sharing or matching of funds is not required for eligibility.
This announcement includes all information and links needed to apply for this funding opportunity. The full application is available through the
The full application package is also available online at
Each grant application must address identification, avoidance and prevention of unsafe working conditions in and around mines (
• Section 1—Project Forms and Financial Plan (No page limit).
• Section 2—Executive Summary (Not to exceed two pages).
• Section 3—Technical Proposal (Not to exceed 12 pages). Illustrative material can be submitted as an attachment.
The following are mandatory requirements for each section.
This section contains the forms and budget section of the application. The Project Financial Plan will not count against the application page limits. A person with authority to bind the applicant must sign the grant application and forms. Applications submitted electronically through
(a) Completed SF-424, “Application for Federal Assistance,” (OMB No. 4040-0004, expiration: 10/31/2019). This form is part of the application package on
Completed SF-424A, “Budget Information for Non-Construction Programs,” (OMB No. 4040-0006, expiration: 01/31/2019). The project budget should demonstrate clearly that the total amount and distribution of funds is sufficient to cover the cost of all major project activities identified by the applicant in its proposal, and must comply with the Federal cost principles and the administrative requirements set forth in this FOA. (Copies of all regulations that are referenced in this FOA are available online at
(b)
If applicable, the applicant must provide a statement about its program income. See 2 CFR 200.80 and 200.307 and this FOA, Part IV.F.1(a) and (b).
The amount of Federal funding requested for the entire period of performance must be shown on the SF-424 and SF-424A forms.
(d) Completed SF-424B, “Assurances for Non-Construction Programs,” (OMB No. 4040-0007, expiration: 01/31/2019). Each applicant for these grants must certify compliance with a list of assurances. This form is part of the application package on
(e) Supplemental Certification Regarding Lobbying Activities Form. If any funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the making of a grant or cooperative agreement, the applicant shall complete and submit SF-LLL, “Disclosure Form to Report Lobbying,” (OMB No. 4040-0013, expiration: 01/31/2019) in accordance with its instructions. This form is part of the application package on
(f) Non-profit status. Applicants must provide evidence of non-profit status, preferably from the IRS, if applicable.
(g) Accounting System Certification. Under the authority of 2 CFR 200.207, MSHA requires that a new applicant that receives less than $1 million annually in Federal grants attach a certification stating that the organization (directly or through a designated qualified entity) has a functioning accounting system that meets the criteria below. The certification should attest that the organization's accounting system provides for the following:
(1) Accurate, current, and complete disclosure of the financial results of each federally sponsored project.
(2) Records that adequately identify the source and application of funds for federally sponsored activities.
(3) Effective control over and accountability for all funds, property, and other assets.
(4) Comparison of outlays with budget amounts.
(5) Written procedures to minimize the time elapsing between transfers of funds.
(6) Written procedures for determining the reasonableness, allocability, and allowability of costs.
(7) Accounting records, including cost accounting records that are supported by source documentation.
(h) Attachments. The application may include attachments such as resumes of key personnel or position descriptions, exhibits, information on prior government grants, and signed letters of commitment to the project.
The executive summary is a short one-to-two page abstract that succinctly summarizes the proposed project.
(a) Applicant. Provide the organization's full legal name and address.
(b) Funding requested. List how much Federal funding is being requested.
(c) Grant Topic. List the grant topic and the location and number of mine operators and miners that the organization has selected to train or describe the training materials or equipment to be created with these funds.
(d) Program Structure. Identify the type of grant as “annual.”
(e) Summary of the Proposed Project. Write a brief summary of the proposed project. This summary must identify the key points of the proposal, including an introduction describing the project activities and each milestone with the expected results.
The technical proposal must demonstrate the applicant's capabilities to plan and implement a project or create educational materials to meet the objectives of this solicitation. MSHA's focus for these grants is on training mine operators and miners and developing training materials to better identify, avoid and prevent unsafe working conditions in and around mines. MSHA shall give special emphasis to programs and materials that target workers at smaller mines, including training miners and employers about new MSHA standards, high risk activities, or hazards identified by MSHA. A Department of Labor Strategic Goal is to “improve workplace safety and health”. MSHA has a performance goal to “prevent death, disease, and injury from mining and promote safe and healthful workplaces for the Nation's miners.” MSHA's award of the Brookwood-Sago grants supports these goals and strategies. To show how the grant projects promote these goals and strategies, grantees must report, at each milestone, the following information (as applicable):
The technical proposal narrative must not exceed 12 single-sided, double-spaced pages, using 12-point font, and must contain the following sections: Program Design, Overall Qualifications of the Applicant, and Output and Evaluation. Any pages over the 12-page limit will not be reviewed. Attachments to the technical proposal are not counted toward the 12-page limit. Major sections and sub-sections of the proposal should be divided and clearly identified. As required in Part VIII subpart B “Transparency,” a grantee's final technical proposal will be posted “as is” on MSHA's Web site unless MSHA receives a version redacting any proprietary, confidential business, or personally identifiable information no later than two weeks after receipt of the Notice of Award.
MSHA will review and rate the technical proposal in accordance with the selection criteria specified in Part V.
(1) Statement of the Problem/Need for Funds. Applicants must identify a clear and specific need for proposed activities. They must identify whether they are providing a training program, creating training materials, or both. Applicants also must identify the number of individuals expected to benefit from their training and education program; this should include identifying the type of mines, the geographic locations of the training, and the number of mine operators and miners.
MSHA requires that each applicant include a 12-month workplan that will begin no later than April 10, 2017, and end no later than April 9, 2018.
Describe the plan for grant activities and the anticipated results. The plan should describe such things as the development of training materials, the training content, recruiting of trainees, where or how training will take place, and the anticipated benefits to mine operators and miners receiving the training.
Because MSHA may be funding these grants incrementally, applicants must identify milestones for the project, which may be adjusted as funding becomes available. For example, the first milestone that correlates with the first grant performance period is from April 10, 2017 through June 10, 2017. For the remaining milestones, we suggest intervals of three months. If MSHA funds these grants incrementally, applicants should identify activities that either can be completed during the applicable milestone or anticipate that other funding may be needed to complete the activities. If funding permits, MSHA expects to award all the funding for the year and will provide a separate document identifying the period of performance with the amount of funding awarded.
Break the plan down into activities or tasks for each milestone. For each activity, explain what will be done, who will do it, when it will be done, and the anticipated results of the activity. For training, discuss the subjects to be taught, the length of the training sessions, type of training (
For training and other quantifiable activities, estimate the quantities involved for data required to meet the grant goals located in Part IV.B.3. For example, estimate how many classes will be conducted and how many mine operators and miners will be trained each milestone. Also, provide the training number totals for the full year. Projections are used to measure the actual performance against the plan. Applicants planning to conduct a train-the-trainer program should estimate the number of individuals to be trained during the grant by those who received the train-the-trainer training. These second-tier training numbers should be included only if the organization is planning to follow up with the trainers to obtain this data during the grant.
Describe each educational material to be produced under this grant. Provide a timetable, including milestones, for developing and producing the material. The timetable must include provisions for an MSHA review of draft and camera-ready products or evaluation of equipment. MSHA must review and approve training materials or equipment for technical accuracy and suitability of content before use in the grant program. Whether or not an applicant's project is
Describe the applicant, including its mission, and a description of its membership, if any. Provide an organizational chart (the chart may be included as a separate page which will not count toward the page limit). Identify the following:
The Project Director is the person who will be responsible for the day-to-day operation and administration of the program. Provide the name, title, street address and mailing address (if it is different from the organization's street address), telephone and fax numbers, and email address of the Project Director.
The Certifying Representative is the official in the organization who is authorized to enter into grant agreements. Provide the name, title, street address and mailing address (if it is different from the organization's street address), telephone and fax numbers, and email address of the Certifying Representative.
Briefly describe the organization's functions and activities,
Describe the organization's experience conducting the proposed mine training program or other relevant experience. Include program specifics such as program title, numbers trained, and duration of training. If creating training materials, include the title of other materials developed. Nonprofit organizations, including community-based and faith-based organizations that do not have prior experience in mine safety, may partner with an established mine safety organization to acquire safety expertise.
Describe the qualifications of the professional staff you will assign to the program. Attach resumes of staff already employed (resumes will not count towards the page limit). If some positions are vacant, include position descriptions and minimum hiring qualifications instead of resumes. Staff should have, at a minimum, mine safety experience, training experience, or experience working with the mining community.
There are two types of evaluations that must be conducted. First, describe the methods, approaches, or plans to evaluate the training sessions or training materials to meet the data requirements in Part IV.B.3. Second, describe plans to assess the long-term effectiveness of the training materials or training conducted. The type of training given will determine whether the evaluation should include a process-related outcome or a result-related outcome or both. This will involve following up with an evaluation, or on-site review, if feasible, of miners trained. The evaluation should focus on what changes the trained miners made to abate hazards and improve workplace conditions, or to incorporate this training in the workplace, or both.
For training materials, include an evaluation from individuals trained on the clarity of the presentation, organization, and the quality of the information provided on the subject matter and whether they would continue to use the training materials. Include timetables for follow-up and for submitting a summary of the assessment results to MSHA.
Under 2 CFR 25.200(b)(3), every applicant for a Federal grant is required to include a DUNS number with its application. The DUNS number is a nine-digit identification number that uniquely identifies business entities. An applicant's DUNS number is to be entered into Block 8 of Standard Form (SF) 424. There is no charge for obtaining a DUNS number. To obtain a DUNS number, call 1-866-705-5711 or access the following Web site:
After receiving a DUNS number, all grant applicants must register as a vendor with the System for Award Management (SAM) through the Web site
The closing date for applications will be March 24, 2017, (no later than 11:59 p.m. EST). MSHA will award grants on or before April 10, 2017.
Grant applications must be submitted electronically through the
(a) Applications that are lacking any of the required elements or do not follow the format prescribed in IV.B. will not be reviewed.
(b) Late Applications
You are cautioned that applications should be submitted before the deadline to ensure that the risk of late receipt of the application is minimized. Applications received after the deadline will not be reviewed unless it is determined to be in the best interest of the Government.
Applications received by
An application must be fully uploaded and validated by the
The Brookwood-Sago grants are not subject to Executive Order 12372, “Intergovernmental Review of Federal Programs.” MSHA; however, reminds applicants that if they are not operating MSHA-approved State training grants, they should contact the State grantees and coordinate any training or educational program. Information about each state grant and the entity operating the state grant is provided online at:
MSHA will determine whether costs are allowable under the applicable Federal cost principles and other conditions contained in the grant award.
Grant funds may be spent on conducting training and outreach, developing educational materials, recruiting activities (to increase the number of participants in the program), and on necessary expenses to support these activities. Allowable costs are determined by the applicable Federal cost principles identified in Part VI.B, which are attachments in the application package, or are located online at
(a) If an applicant anticipates earning program income during the grant, the application must include an estimate of the income that will be earned. Program income earned must be reported on a quarterly basis.
(b) Program income is gross income earned by the grantee which is directly generated by a supported activity, or earned as a result of the award. Program income earned during the award period shall be retained by the recipient, added to funds committed to the award, and used for the purposes and under the conditions applicable to the use of the grant funds. See 2 CFR 200.80 and 200.307.
Grant funds may not be used for the following activities under this grant program:
Unallowable costs also include any cost determined by MSHA as not allowed according to the applicable cost principles or other conditions in the grant.
MSHA will screen all applications to determine whether all required proposal elements are present and clearly identifiable. Those that do not comply with mandatory requirements will not be evaluated. The technical panels will review grant applications using the following criteria:
The proposed training and education program or training materials must address identification, avoidance and prevention of unsafe working conditions in and around mines (
(1) The proposal to train mine operators and miners clearly estimates the number to be trained and clearly identifies the types of mine operators and miners to be trained.
(2) If the proposal contains a train-the-trainer program, the following information must be provided:
• Name or type of support the grantee will provide to new trainers.
• The number of individuals to be trained as trainers.
• The estimated number of courses to be conducted by the new trainers.
• The estimated number of students to be trained by these new trainers and a description of how the grantee will obtain data from the new trainers documenting their classes and student numbers if conducted during the grant.
(3) The work plan activities and training are described.
• The planned activities and training are tailored to the needs and levels of the mine operators and miners to be trained. Any special constituency to be served through the grant program is described,
• If the proposal includes developing training materials, the work plan must include time during development for MSHA to review the educational materials for technical accuracy and suitability of content. If commercially developed training products will be used for a training program, applicants should also plan for MSHA to review the materials before using the products in their grant programs.
• The utility of the educational materials is described.
• The outreach or process to find mine operators, miners, or trainees to receive the training is described.
The potential for a project to serve a variety of mine operators, miners, or mine sites, or the extent others may replicate the project.
The originality and uniqueness of the approach used.
The extent the proposed project will contribute to MSHA's performance goals.
(a) The budget presentation is clear and detailed. (15 points)
The budgeted costs are reasonable.
• No more than 20% of the total budget is for direct administrative costs in the event of incremental funding. Otherwise, no more than 15% of the
• Indirect costs do not exceed 10% of the modified total direct costs (as defined in 2 CFR 200.68) or the grantee's federally negotiated indirect cost rate reimbursement.
• The budget complies with Federal cost principles (which can be found in the applicable Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and with MSHA budget requirements contained in the grant application instructions).
(b) The application demonstrates that the applicant has strong financial management and internal control systems. (5 points)
The applicant has administered, or will work with an organization that has administered, a number of different Federal or State grants. The applicant may demonstrate this experience by having project staff that has experience administering Federal or State grants.
• The applicant applying for the grant demonstrates experience with mine safety teaching or providing mine safety educational programs. Applicants that do not have prior experience in providing mine safety training to mine operators or miners may partner with an established mine safety organization to acquire mine safety expertise.
• Project staff has experience in mine safety, the specific topic chosen, or in training mine operators and miners.
• Project staff has experience in recruiting, training, and working with the population the organization proposes to serve.
• Applicant has experience in designing and developing mine safety training materials for a mining program.
• Applicant has experience in managing educational programs.
Applicant demonstrates internal control and management oversight of the project.
The proposal should include provisions for evaluating the organization's progress in accomplishing the grant work activities and accomplishments, evaluating training sessions, and evaluating the program's effectiveness and impact to determine if the safety training and services provided resulted in workplace change or improved workplace conditions. The proposal should include a plan to follow up with trainees to determine the impact the program has had in abating hazards and reducing miner illnesses and injuries.
A technical panel will rate each complete application against the criteria described in this FOA. One or more applicants may be selected as grantees on the basis of the initial application submission or a minimally acceptable number of points may be established. MSHA may request final revisions to the applications, and then evaluate the revised applications. MSHA may consider any information that comes to its attention in evaluating the applications.
The panel recommendations are advisory in nature. The Deputy Assistant Secretary for Operations for Mine Safety and Health will make a final selection determination based on what is most advantageous to the government, considering factors such as panel findings, geographic presence of the applicants or the areas to be served, Agency priorities, and the best value to the government, cost, and other factors. The Deputy Assistant Secretary's determination for award under this FOA is final.
Announcement of the awards is expected to occur before April 10, 2017. The grant agreement will be signed no later than April 10, 2017.
Before April 10, 2017, organizations selected as potential grant recipients will be notified by a representative of the Deputy Assistant Secretary. An applicant whose proposal is not selected will be notified in writing. The fact that an organization has been selected as a potential grant recipient does not necessarily constitute approval of the grant application as submitted (revisions may be required).
Before the actual grant award and the announcement of the award, MSHA may enter into negotiations with the potential grant recipient concerning such matters as program components, staffing and funding levels, and administrative systems. If the negotiations do not result in an acceptable submittal, the Deputy Assistant Secretary reserves the right to terminate the negotiations and decline to fund the proposal.
All grantees will be subject to applicable Federal laws and regulations (including provisions of appropriations law). These requirements are attachments in the application package or are located online at
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Unless specifically approved, MSHA's acceptance of a proposal or MSHA's award of Federal funds to sponsor any program does not constitute a waiver of any grant requirement or procedure. For example, if an application identifies a specific sub-contractor to provide certain services, the MSHA award does not provide a basis to sole-source the procurement (to avoid competition).
MSHA will review all grantee-produced educational and training materials for technical accuracy and suitability of content during development and before final publication. MSHA also will review training curricula and purchased training materials for technical accuracy and suitability of content before the materials are used. Grantees developing training materials must follow all copyright laws and provide written certification that their materials are free from copyright infringement.
When grantees produce training materials, they must provide copies of completed materials to MSHA before the end of the grant. Completed materials should be submitted to MSHA in hard copy and in digital format for publication on the MSHA Web site. Two copies of the materials must be provided to MSHA. Acceptable formats for training materials include Microsoft XP Word, PDF, PowerPoint, and any other format agreed upon by MSHA.
As stated in 2 CFR 200.315 and 2 CFR 2900.13, the Department of Labor has a royalty-free, nonexclusive, and irrevocable right to reproduce, publish, or otherwise use for Federal purposes any work produced, or for which ownership was acquired, under a grant, and to authorize others to do so. Such products include, but are not limited to, curricula, training models, and any related materials. Such uses include, but are not limited to, the right to modify and distribute such products worldwide by any means, electronic, or otherwise.
All approved grant-funded materials developed by a grantee shall contain the following disclaimer: “This material was produced under grant number XXXXX from the Mine Safety and Health Administration, U.S. Department of Labor. It does not necessarily reflect the views or policies of the U.S. Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsement by the U.S. Government.”
When issuing statements, press releases, request for proposals, bid solicitations, and other documents describing projects or programs funded in whole or in part with Federal money, all grantees receiving Federal funds must clearly state:
(a) The percentage of the total costs of the program or project that will be financed with Federal money;
(b) The dollar amount of Federal financial assistance for the project or program; and
(c) The percentage and dollar amount of the total costs of the project or program that will be financed by non-governmental sources.
With written permission from MSHA, the USDOL and MSHA logos may be applied to the grant-funded materials including posters, videos, pamphlets, research documents, national survey results, impact evaluations, best practice reports, and other publications. The grantees must consult with MSHA on whether the logos may be used on any such items prior to final draft or final preparation for distribution. In no event shall the DOL or MSHA logo be placed on any item until MSHA has given the grantee written permission to use the logos on the item.
Grantees are required by Departmental regulations to submit financial and project reports, as described below. Grantees are also required to submit final reports no later than 90 days after the end of the grant. MSHA will advise recipients regarding the applicable reporting periods and requirements in the event of incremental funding of these grants. Subject to availability of funding, MSHA intends to adjust and be consistent with quarterly reporting requirements.
The grantee shall submit financial reports at the end of the first milestone, or on a quarterly basis. Recipients are required to use the U.S. Department of Labor's Grantee Reporting Systems' electronic SF-425 (Federal Financial Report), (OMB No. 4040-0014, expiration: 1/31/2019), at
A grantee must submit a technical project report to MSHA no later than 30 days after each milestone. If so advised, the quarterly reporting dates may be July 10, 2017, October10, 2017, January 10, 2018, and April 10, 2018, respectively. Technical project reports provide both quantitative and qualitative information and a narrative assessment of performance for the preceding period. This should include the current grant progress against the overall grant goals as provided in Part IV.B.3.
Between reporting dates, the grantee shall immediately inform MSHA of significant developments or problems affecting the organization's ability to accomplish the work. See 2 CFR 200.328(d).
At the end of the grant, each grantee must provide a project summary of its technical project reports, an evaluation report, and a close-out financial report. These final reports are due no later than 90 days after the end of the grant.
Any questions regarding this FOA (FOA17-4BS) should be directed to Janice Oates at
Any information submitted in response to this FOA will be subject to the provisions of the Freedom of Information Act, as appropriate.
DOL is committed to conducting a transparent grant award process and publicizing information about program outcomes. Posting awardees' grant applications on public Web sites is a means of promoting and sharing
DOL recognizes that grant applications sometimes contain information that an applicant may consider proprietary or business confidential information, or may contain personally identifiable information. Information is considered proprietary or confidential commercial/business information when it is not usually disclosed outside your organization and when its disclosure is likely to cause you substantial competitive harm.
Personally identifiable information is information that can be used alone or in conjunction with other information to distinguish or trace an individual`s identity, such as name, social security number, date and place of birth, mother's maiden name, or biometric records; and any other information that is linked or linkable to an individual, such as medical, educational, financial, and employment information.
Executive Summaries will be published in the form originally submitted, without any redactions. However, in order to ensure that confidential information is properly protected from disclosure when DOL posts the winning Technical Proposals, applicants whose technical proposals will be posted will be asked to submit a second redacted version of their Technical Proposal, with proprietary, confidential commercial/business, and personally identifiable information redacted. All non-public information about the applicant's staff should be removed as well. The Department will contact the applicants whose technical proposals will be published by letter or email, and provide further directions about how and when to submit the redacted version of the Technical Proposal. Submission of a redacted version of the Technical Proposal will constitute permission by the applicant for DOL to post that redacted version. If an applicant fails to provide a redacted version of the Technical Proposal, DOL will publish the original Technical Proposal in full, after redacting personally identifiable information. (Note that the original, unredacted version of the Technical Proposal will remain part of the complete application package, including an applicant's proprietary and confidential information and any personally identifiable information.)
Applicants are encouraged to maximize the grant application information that will be publicly disclosed, and to exercise restraint and redact only information that truly is proprietary, confidential commercial/business information, or capable of identifying a person. The redaction of entire pages or sections of the Technical Proposal is not appropriate, and will not be allowed, unless the entire portion merits such protection. Should a dispute arise about whether redactions are appropriate, DOL will follow the procedures outlined in the Department's Freedom of Information Act (FOIA) regulations (29 CFR part 70).
Redacted information in grant applications will be protected by DOL from public disclosure in accordance with federal law, including the Trade Secrets Act (18 U.S.C. 1905), FOIA, and the Privacy Act (5 U.S.C. 552a). If DOL receives a FOIA request for your application, the procedures in DOL's FOIA regulations for responding to requests for commercial/business information submitted to the government will be followed, as well as all FOIA exemptions and procedures. 29 CFR 70.26. Consequently, it is possible that application of FOIA rules may result in release of information in response to a FOIA request that an applicant redacted in its “redacted copy.”
This FOA requests information from applicants and grantees. This collection of information is approved under OMB No. 1225-0086, expiration: 05/31/2019.
Except as otherwise noted, in accordance with the Paperwork Reduction Act of 1995, no person is required to respond to a collection of information unless such collection displays a valid OMB control number. Public reporting burden for the grant application is estimated to average 20 hours per response, for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Each recipient who receives a grant award notice will be required to submit five progress reports to MSHA. MSHA estimates that each report will take approximately two and one-half hours to prepare.
Send comments regarding the burden estimated or any other aspect of this collection of information, including suggestions for reducing this burden, to the OMB Desk Officer for MSHA, Office of Management and Budget Room 10235, Washington, DC 20503, the U.S. Department of Labor, OASAM-OCIO, Information Resources Program, Room N-1301, 200 Constitution Avenue NW., Washington, DC 20210, and MSHA, electronically to Janice Oates at
This information is being collected for the purpose of awarding a grant. Submission of this information is requested for the applicant to be considered for award of this grant.
30 U.S.C. 965.
National Aeronautics and Space Administration.
Notice of meeting.
In accordance with the Federal Advisory Committee Act, Public Law 92-463, as amended, the National Aeronautics and Space Administration announces a meeting of the Aeronautics Committee of the NASA Advisory Council (NAC). The meeting will be held for the purpose of soliciting, from the aeronautics community and other persons, research and technical information relevant to program planning.
Wednesday, March 22, 2017, 9:30 a.m.-4:30 p.m., Local Time.
NASA Headquarters, Room 6E40, 300 E Street SW., Washington, DC 20546.
Ms. Irma Rodriguez, Executive Secretary for the NAC Aeronautics Committee, NASA Headquarters, Washington, DC 20546, (202) 358-0984, or
The meeting will be open to the public up
Attendees will be requested to sign a register and to comply with NASA Headquarters security requirements, including the presentation of a valid picture ID to Security before access to NASA Headquarters. Due to the Real ID Act, any attendees with driver's licenses issued from non-compliant states must present a second form of ID. Non-compliant states are: Maine, Minnesota, Missouri, Montana, and Washington. Foreign nationals attending this meeting will be required to provide a copy of their passport and visa in addition to providing the following information no less than 10 days prior to the meeting: Full name; gender; date/place of birth; citizenship; passport information (number, country, telephone); visa information (number, type, expiration date); employer/affiliation information (name of institution, address, country, telephone); title/position of attendee. To expedite admittance, attendees with U.S. citizenship and Permanent Residents (green card holders) are requested to provide full name and citizenship status no less than 3 working days prior to the meeting by contacting Ms. Irma Rodriguez, via email at
National Aeronautics and Space Administration.
Notice of meeting.
In accordance with the Federal Advisory Committee Act (Pub. L. 92-463), the National Aeronautics and Space Administration announces a meeting of the Institutional Committee of the NASA Advisory Council (NAC). This committee reports to the NAC.
Monday, March 13, 2017, 9:00 a.m.-5:00 p.m.; and Tuesday, March 14, 2017, 9:00 a.m.-5:00 p.m.; Local Time.
NASA Headquarters, Glennan Conference Room, Room 1Q39, 300 E Street SW., Washington, DC 20546.
Mr. Todd Mullins, NAC Institutional Committee Executive Secretary, NASA Headquarters, Washington, DC 20546; (202) 358-3831; or
The meeting will be open to the public up to the seating capacity of the room. This meeting is also available telephonically and by WebEx. You must use a touch-tone phone to participate in this meeting. Any interested person may dial the toll free access number (844) 467-6272 or toll access number (720) 259-6462, and then the numeric participant passcode: 180093 followed by the # sign. To join via WebEx on March 13, the Web link is
Attendees will be requested to sign a register and to comply with NASA Headquarters security requirements, including the presentation of a valid picture ID before receiving access to NASA Headquarters. Due to the Real ID Act, any attendees with driver's licenses issued from non-compliant states must present a second form of ID. Non-compliant states/territories are: Maine, Minnesota, Missouri, Montana, and Washington. Foreign nationals attending this meeting will be required to provide a copy of their passport and visa in addition to providing the following information no less than 10 working days prior to the meeting: Full name; gender; date/place of birth; citizenship; passport information (number, country, telephone); visa information (number, type, expiration date); employer/affiliation information (name of institution, address, country, telephone); title/position of attendee. To expedite admittance, attendees with U.S. citizenship and Permanent Residents (green card holders) are requested to provide full name and citizenship status no less than 3 working days prior to the meeting by contacting Ms. Mary Dunn, via email at
Institute of Museum and Library Services, National Foundation for the Arts and the Humanities.
Notice, request for comments, collection of information.
The Institute of Museum and Library Services (“IMLS”) 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. This pre-clearance consultation 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. The purpose of this Notice is to solicit comments concerning the continuance of the Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery. A copy of the proposed information collection request can be
Written comments must be submitted to the office listed in the
For a copy of the documents contact: Matthew Birnbaum, Ph.D., Supervisory Social Science Researcher, Planning, Research and Evaluation, Institute of Museum and Library Services, 955 L'Enfant Plaza North SW., Suite 4000, Washington, DC 20024-2135. Dr. Birnbaum can be reached by Telephone: 202-653-4760, Fax: 202- 653-4601, or by email at
Stephanie Burwell, Chief Information Officer, Office of the Chief Information Officer, Institute of Museum and Library Services, 955 L'Enfant Plaza North SW., Suite 4000, Washington, DC 20024-2135. Mrs. Burwell can be reached by Telephone: 202-653-4684, Fax: 202-653-4625, or by email at
The Institute of Museum and Library Services (IMLS) is an independent Federal grant-making agency and is the primary source of federal support for the Nation's 123,000 libraries and 35,000 museums. IMLS provides a variety of grant programs to assist the Nation's museums and libraries in improving their operations and enhancing their services to the public. IMLS is responsible for identifying national needs for and trends in museum, library, and information services; measuring and reporting on the impact and effectiveness of museum, library, and information services throughout the United States, including programs conducted with funds made available by IMLS; identifying, and disseminating information on, the best practices of such programs; and developing plans to improve museum, library, and information services of the United States and strengthen national, State, local, regional, and international communications and cooperative networks (20 U.S.C. Chapter 72, 20 U.S.C. 9108).
This proposed request is to renew IMLS' generic clearance for collection of qualitative feedback on the Agency's service delivery. This data collection activity provides a means to garner qualitative customer and stakeholder feedback in an efficient and timely manner in accordance with the Administration's commitment to improving service delivery. By qualitative feedback, IMLS means information that provides useful insights on perceptions and opinions, but are not statistical surveys that yield quantitative results that can be generalized to the population of study. The Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery has been conducted by the Institute of Museum and Library Services under the clearance number 3137-0081, which expires July 31, 2017.
IMLS is particularly interested in comments that help the agency to:
• 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,
National Science Foundation.
Notice and request for comments.
The National Science Foundation (NSF) is announcing plans to request clearance of this collection. In accordance with the requirement of the Paperwork Reduction Act of 1995, we are providing opportunity for public comment on this action. After obtaining and considering public comment, NSF will prepare the submission requesting that OMB approve clearance of this collection for no longer than three years.
Written comments on this notice must be received by April 17, 2017 to be assured of consideration. Comments received after that date will be considered to the extent practicable.
Contact Suzanne H. Plimpton, Reports Clearance Officer, National Science Foundation, 4201 Wilson Boulevard, Suite 1265, Arlington, Virginia 22230; telephone (703) 292-7556; or send email to
Nuclear Regulatory Commission.
NUREG; issuance.
The U.S. Nuclear Regulatory Commission (NRC) is issuing NUREG-1021, Revision 11, “Operator Licensing Examination Standards for Power Reactors.”
Revision 11 of NUREG-1021 will be applicable to operator licensing examinations that are administered 6 months after the date of this notice. After this date, facility licensees that elect to prepare, proctor, and grade written examinations and/or prepare operating tests must do so based on the guidance in Revision 11 of NUREG-1021, unless the NRC has reviewed and approved the facility licensee's alternative examination procedures. This guidance may be used for examinations administered at an earlier date if a licensee requests, and the NRC grants, an exemption to allow use of this NUREG at an earlier date.
Please refer to Docket ID NRC-2016-0006 when contacting the NRC about the availability of information regarding this document. You may obtain publicly-available information related to this document using any of the following methods:
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Timothy Kolb, Office of Nuclear Reactor Regulation, telephone: 301-415-0783; email:
NUREG-1021, Revision 11 provides policy and guidance for the development, administration, and grading of examinations used for licensing operators at nuclear power plants. This NUREG also provides guidance for maintaining operators' licenses, and for the NRC to conduct requalification examinations when necessary.
This NUREG is a rule as defined in the Congressional Review Act (5 U.S.C. 801-808). However, the Office of Management and Budget has not found it to be a major rule as defined in the Congressional Review Act.
Revision 11 of NUREG-1021 replaces Revision 10 of NUREG 1021. Draft NUREG-1021, Revision 11 was published in the
For the Nuclear Regulatory Commission.
Postal Regulatory Commission.
Notice.
The Commission is noticing recent Postal Service filings for the Commission's consideration concerning negotiated service agreements. This notice informs the public of the filing, invites public comment, and takes other administrative steps.
Submit comments electronically via the Commission's
David A. Trissell, General Counsel, at 202-789-6820.
The Commission gives notice that the Postal Service filed request(s) for the Commission to consider matters related to negotiated service agreement(s). The request(s) may propose the addition or removal of a negotiated service agreement from the market dominant or the competitive product list, or the modification of an existing product currently appearing on the market dominant or the competitive product list.
Section II identifies the docket number(s) associated with each Postal Service request, the title of each Postal Service request, the request's acceptance date, and the authority cited by the Postal Service for each request. For each request, the Commission appoints an officer of the Commission to represent the interests of the general public in the proceeding, pursuant to 39 U.S.C. 505 (Public Representative). Section II also establishes comment deadline(s) pertaining to each request.
The public portions of the Postal Service's request(s) can be accessed via the Commission's Web site (
The Commission invites comments on whether the Postal Service's request(s) in the captioned docket(s) are consistent with the policies of title 39. For request(s) that the Postal Service states concern market dominant product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3622, 39 U.S.C. 3642, 39 CFR part 3010, and 39 CFR part 3020, subpart B. For request(s) that the Postal Service states concern competitive product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3632, 39 U.S.C. 3633, 39 U.S.C. 3642, 39 CFR part 3015, and 39 CFR part 3020, subpart B. Comment deadline(s) for each request appear in section II.
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This notice will be published in the
Postal Regulatory Commission.
Notice.
The Commission is noticing recent Postal Service filings for the Commission's consideration concerning negotiated service agreements. 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.
The Commission gives notice that the Postal Service filed request(s) for the Commission to consider matters related to negotiated service agreement(s). The request(s) may propose the addition or removal of a negotiated service agreement from the market dominant or the competitive product list, or the modification of an existing product currently appearing on the market dominant or the competitive product list.
Section II identifies the docket number(s) associated with each Postal Service request, the title of each Postal Service request, the request's acceptance date, and the authority cited by the Postal Service for each request. For each request, the Commission appoints an officer of the Commission to represent the interests of the general public in the proceeding, pursuant to 39 U.S.C. 505 (Public Representative). Section II also establishes comment deadline(s) pertaining to each request.
The public portions of the Postal Service's request(s) can be accessed via the Commission's Web site (
The Commission invites comments on whether the Postal Service's request(s) in the captioned docket(s) are consistent with the policies of title 39. For request(s) that the Postal Service states concern market dominant product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3622, 39 U.S.C. 3642, 39 CFR part 3010, and 39 CFR part 3020, subpart B. For request(s) that the Postal Service states concern competitive product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3632, 39 U.S.C. 3633, 39 U.S.C. 3642, 39 CFR part 3015, and 39 CFR part 3020, subpart B. Comment deadline(s) for each request appear in section II.
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On December 9, 2016, ISE Gemini, LLC (“ISE Gemini”) and ISE Mercury, LLC (“ISE Mercury,” and each of ISE Gemini and ISE Mercury an “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
On June 21, 2016, the Commission approved a proposed rule change relating to a corporate transaction in which Nasdaq, Inc. would become the ultimate parent of International Securities Exchange, LLC (“ISE”), ISE Gemini, and ISE Mercury (collectively, the “ISE Exchanges”).
As described in more detail below, ISE Gemini and ISE Mercury have now proposed rule changes (1) to permit each respective Exchange to receive inbound orders in options routed through NES from the Affiliated Exchanges, pursuant to certain limitations and conditions; and (2) to permit NES to become a Member of each Exchange to perform certain routing and other functions.
ISE Gemini and ISE Mercury's respective rulebooks incorporate by reference Chapter 19 of ISE's rulebook, which contains rules relating to the routing of orders, cancellation of orders, and handling of certain error positions.
After careful review, the Commission finds, as discussed in more detail below, that the proposed rule changes, as modified by Amendment Nos. 1 and 2, are consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.
As noted above, ISE Gemini and ISE Mercury proposed that NES be permitted to become a Member of each respective Exchange to perform certain routing and other functions, as described in more detail below.
In the past, the Commission has expressed concern that the affiliation of an exchange with one of its members raises potential conflicts of interest and the potential for unfair competitive advantage.
As discussed above, NES is currently a member of each Nasdaq Exchange. NES also operates as a facility of each of Nasdaq, Phlx, and BX that provides outbound options routing from each to other market centers, subject to certain conditions.
Recognizing that the Commission previously expressed concern that the affiliation of an exchange with one of its members raises the potential for unfair competitive advantage and potential conflicts of interest between an exchange's self-regulatory obligations and its commercial interest, ISE Gemini and ISE Mercury proposed the following limitations and conditions to permit each Exchange to accept inbound options orders that NES routes in its capacity as a facility of the Affiliated Exchanges:
• First, each Exchange and the Financial Industry Regulatory Authority (“FINRA”) will maintain a Regulatory Services Agreement (“RSA”), as well as an agreement pursuant to Rule 17d-2 under the Act (“17d-2 Agreement”).
• Second, FINRA will monitor NES for compliance with each of the Exchange's trading rules, and will collect and maintain certain related information.
• Third, FINRA will provide a report to each Exchange's chief regulatory officer (“CRO”), on a quarterly basis, that: (i) Quantifies all alerts (of which the Exchange or FINRA is aware) that identify NES as a participant that has potentially violated Commission, or the respective Exchange's, rules, and (ii) lists all investigations that identify NES as a participant that has potentially violated Commission, or the respective Exchange's, rules.
• Fourth, ISE Gemini and ISE Mercury proposed to amend ISE Gemini Rule 309 and ISE Mercury Rule 309, respectively, to add ISE Gemini Rule 309(b) and ISE Mercury Rule 309(b), which will provide that Nasdaq, Inc., as the holding company owning both the Exchange and NES, shall establish and maintain procedures and internal controls reasonably designed to ensure that NES does not develop or implement changes to its system, based on non-public information obtained regarding planned changes to the Exchange's systems as a result of its affiliation with the Exchange, until such information is available generally to similarly situated Exchange Members, in connection with the provision of inbound routing to the Exchange.
The Commission finds that ISE Gemini and ISE Mercury's proposed rule changes to permit each Exchange to accept inbound options orders routed by NES from its Affiliated Exchanges, including the related change to ISE Gemini Rule 309 and ISE Mercury Rule 309, are consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. Specifically, the Commission finds that the proposed rule changes are consistent with Section 6(b)(1) of the Act,
In the past, the Commission has expressed concern that the affiliation of an exchange with one of its members raises potential conflicts of interest and the potential for unfair competitive advantage.
The Commission believes that these limitations and conditions will mitigate its concerns about potential conflicts of interest and unfair competitive advantage. In particular, the Commission believes that a non-affiliated SRO's oversight of NES,
As discussed above, the Commission is today approving a proposed rule change by ISE that will amend certain provisions in Chapter 19 of ISE's rulebook, which is incorporated by reference to, and will therefore also become, the rules of ISE Gemini and ISE Mercury.
ISE Gemini and ISE Mercury each proposed that NES be permitted to perform the same functions pursuant to the same conditions with respect to the outbound routing of orders, cancellation of orders, and the handling of error positions as set forth in the ISE proposal.
In addition, the Exchanges propose to make a related, conforming rule change to ISE Gemini Rule 705 and ISE Mercury Rule 705, respectively, which do not incorporate by reference ISE's rules. Currently, pursuant to ISE rules incorporated by reference, ISE Gemini and ISE Mercury utilize Linkage Handlers
ISE Gemini and ISE Mercury stated that they intend to begin implementation of the proposed rule changes in the first quarter of 2017 and third quarter of 2017, respectively, and that the migration will be on a symbol-by-symbol basis.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1)
The Exchange proposes new rules to transition trading on the Exchange to Pillar, the Exchange's new trading technology platform, and to operate as a fully-automated cash equities market. 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.
On January 29, 2015, the Exchange announced the implementation of Pillar, which is an integrated trading technology platform designed to use a single specification for connecting to the equities and options markets operated by the Exchange and its affiliates, NYSE Arca, Inc. (“NYSE Arca”) and New York Stock Exchange LLC (“NYSE”).
With Pillar, the Exchange proposes to transition its cash equities trading platform from a Floor-based market with a parity allocation model to a fully automated price-time priority allocation model. As such, when the Exchange transitions to Pillar, the Exchange would no longer have a Floor-based point-of-sale trading model. As a consequence, the Exchange is proposing to replace its Floor-based Designated Market Makers (“DMM”) with electronic DMMs, and would no longer have Floor brokers or support Supplemental Liquidity Providers as a separate class of participant on the Exchange.
The Exchange also proposes to expand the securities it trades to all NMS securities, including securities listed on NYSE, NYSE Arca, the Nasdaq Stock Market LLC (“Nasdaq”), and the Bats BZX Exchange, Inc. (“Bats”). Trading of securities on an unlisted trading privileges basis would be subject to the same trading rules as trading of securities listed on the Exchange, except for specified rules directed to the Exchange's responsibility as a primary listing market,
The Exchange will be filing several proposed rule changes to support the NYSE MKT cash equities implementation of Pillar. The Exchange has already adopted the rule numbering framework of the NYSE Arca Equities rules for Exchange cash equities trading on the Pillar trading platform.
In this filing, the Exchange proposes trading rules that would govern Exchange cash equities trading on Pillar. All trading would be automated, including opening, re-opening, and closing auctions. As proposed, the Exchange's Pillar cash equities trading platform would be based on the rules and trading model of NYSE Arca Equities, which is a fully-automated price-time priority allocation model with registered market makers.
As discussed in the Framework Filing, Rules 1E-13E govern cash equities trading on the Pillar platform.
In addition, to support the proposed fully-automated market, the Exchange is proposing rules based on NYSE Arca Equities Rules 1 Definitions, 2 Equity Trading Permits, 3 Organization and Administration, 6 Business Conduct, Rule 12 Arbitration, and Rule 13 Liability of Directors and Exchange.
The Exchange proposes the following differences to how it will function on Pillar as compared to NYSE Arca Equities:
• To be addressed in a separate filing, for securities listed on NYSE MKT, the Exchange would maintain DMMs. These electronic-access DMMs would be subject to rules-based heightened quoting obligations vis-à-vis their assigned securities. For all securities that would trade on the Exchange, including UTP securities, the Exchange would have electronic registered market makers with obligations similar to the obligations of market makers on NYSE Arca Equities.
• The Exchange would not offer a Retail Liquidity Program and related order types (Retail Orders and Retail Price Improvement Orders).
• The Exchange would offer three trading sessions, but the Early Trading Session would begin at 7:00 a.m. Eastern Time instead of 4:00 a.m. Eastern Time.
• ETP Holders would communicate with the Pillar trading platform using Pillar phase II protocols only.
Subject to rule approvals, the Exchange will announce the transition of its cash equities trading to the Pillar trading system by Trader Update, which the Exchange anticipates will be in the second quarter of 2017.
Because the Exchange would not be trading on both its current Floor-based trading platform and the Pillar trading platform at the same time, once trading on the Pillar trading platform begins, specified current Exchange equities trading rules would no longer be applicable. Accordingly, as described in more detail below, for each current equities rule that would no longer be applicable when trading on the Pillar
As noted above, the Exchange proposes rules that would be applicable to cash equities trading on Pillar that are based on NYSE Arca Equities Rules. As a global matter, the Exchange proposes non-substantive differences as compared to the NYSE Arca Equities rules to use the term “Exchange” instead of the terms “NYSE Arca Marketplace,” “NYSE Arca,” or “Corporation,” and to use the terms “mean” or “have the meaning” instead of the terms “shall mean” or “shall have the meaning.”
As described in the Framework Filing, Rule 1E specifies definitions that are applicable to trading on the Pillar trading platform. The Exchange proposes the following additional definitions:
• Proposed Rule 1.1E(a) would define the term “Exchange Book” as the Exchange's electronic file of orders. This proposed rule is based on NYSE Arca Equities Rule 1.1(a), which defines the term “NYSE Arca Book,” with a non-substantive difference to not include the following phrase in the Exchange's proposed rule: “Which contains all orders entered on the NYSE Arca Marketplace.” The Exchange believes that this clause is redundant of the description of the Exchange Book.
• Proposed Rule 1.1E(g) would define the term “Authorized Trader” or “AT” to mean a person who may submit orders to the Exchange's cash equities Trading Facilities on behalf of his or her ETP Holder. This proposed rule is based on NYSE Arca Equities Rule 1.1(g) with non-substantive differences to reflect that the Exchange will not have sponsored participants.
• Proposed Rule 1.1E(j) would define the term “Core Trading Hours” to mean the hours of 9:30 a.m. Eastern Time through 4:00 p.m. Eastern Time or such other hours as may be determined by the Exchange from time to time. This proposed rule is based on NYSE Arca Equities rule 1.1(j).
• Proposed Rule 1.1E(k) would define the term “Exchange” to mean NYSE MKT. Because the term “Exchange” would be defined in proposed Rule 1.1E(k), the Exchange proposes that Rule 1—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 1.1E(m) would define the term “ETP” to mean an Equity Trading Permit issued by the Exchange for effecting approved securities transactions on the Exchange's cash equity Pillar trading platform pursuant to Rules 1E-13E. The proposed rule would further provide that an ETP may be issued to a sole proprietor, partnership, corporation, limited liability company or other organization that is a registered broker or dealer pursuant to Section 15 of the Securities Exchange Act of 1934, as amended, and which has been approved by the Exchange as a member organization. This proposed rule text is based on NYSE Arca Equities Rule 1.1(m) with non-substantive differences to specify that an ETP is the permit for effecting approved securities transaction on the Exchange's cash equity Pillar trading platform pursuant to Rules 1E-13E. As described in greater detail below, the Exchange proposes to use ETPs to permission its member organizations to trade on its Pillar cash equities trading platform.
• Proposed Rule 1.1E(n) would define the term “ETP Holder” to mean a member organization that has been issued an ETP. The proposed rule would further provide that an ETP Holder would agree to be bound by the Rules of the Exchange, and by all applicable rules and regulations of the Securities and Exchange Commission. This proposed rule is based on NYSE Arca Equities Rule 1.1(n), with a proposed difference to reference the term “member organization,” which is defined in Rule 2(b)—Equities.
• Proposed Rule 1.1E(p) would define the term “General Authorized Trader” or “GAT” to mean an AT who performs only non-market making activities on behalf of an ETP Holder. This proposed rule is based on NYSE Arca Equities Rule 1.1(p) without any substantive differences.
• Proposed Rule 1.1E(u) would define the term “Marketable” to mean, for a Limit Order, an order than can be immediately executed or routed. The proposed rule would further provide that Market Orders are always considered Marketable. This proposed rule text is based on NYSE Arca Equities Rule 1.1(u).
• Proposed Rule 1.1E(gg) would define the term “Official Closing Price” as the reference price to determine the closing price in a security for purposes of Rule 7E Equities Trading. Proposed Rules 1.1E(gg)(1)-(5) would specify how the Exchange would determine an Official Closing Price in all circumstances, including when the Exchange is unable to conduct a Closing Auction in one or more Exchange-listed securities due to a systems or technical issue, and is based on NYSE Arca Equities Rule 1.1(gg) without any substantive differences. Proposed Rule 1.1E(gg), together with proposed Rule 7.35E described in greater detail below, would obviate current Rule 123C—Equities (The Closing Procedures).
• Proposed Rule 1.1E(rr) would define the term “security” and “securities” to mean any security as defined in in Rule 3(a)(10) under the Securities Exchange Act of 1934; provided, however, that for purposes of Rule 7E such terms mean any NMS stock. This proposed rule is based on NYSE Arca Equities Rule 1.1(ss) [sic] without any substantive differences. Because the term “security” would be defined in proposed Rule 1.1E(rr), the Exchange proposes to specify that Rules 3—Equities and 4—Equities, which define the terms “Security” and “Stock” would not be applicable to trading on the Pillar trading platform. In addition, because the Exchange would not be trading bonds on its Pillar cash equities trading platform, the Exchange proposes to specify that Rule 5—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 1.1E(ss) would define the term “Self-Regulatory
• Proposed Rule 1.1E(xx) would define the term “Trading Facilities” or “Facilities” to mean any and all electronic or automated trading systems provided by the Exchange to ETP Holders. This proposed rule text is based on NYSE Arca Equities Rule 1.1(xx) without any substantive differences.
• The Exchange proposes to amend Rule 1.1E(hhh) to add the letter “E” to the reference to Rule 7 in this rule.
The Exchange proposes to amend Rule 2E to delete the term “Reserved” and re-name this rule as “Equity Trading Permits.” The Exchange proposes rules to support Equity Trading Permits (“ETP”) on the Exchange for trading on the Pillar trading platform that are based on NYSE Arca Equities Rule 2.
Currently, Rule 300—Equities governs trading licenses on the Exchange. Under that rule, a trading license issued by the Exchange is required to effect transactions on the floor of the Exchange or through any facility thereof and an organization may acquire and hold a trading license only if and for so long as such organization is qualified and approved to be a member organization of the Exchange. The Exchange's current trading license rule is identical to NYSE Rule 300 and a single trading license provides an Exchange member organization with the ability to trade on both the Exchange and NYSE.
To trade on Pillar, the Exchange proposes that a member organization would need an ETP.
In addition, because the Exchange would operate as a fully-automated market, the Exchange proposes rules that mirror those of NYSE Arca Equities with respect to requirements relating to employees of ETP Holders. Accordingly, ETP Holders accessing the Exchange on its Pillar cash equities trading platform would have the same employee registration requirements as NYSE Arca Equities.
• Proposed Rule 2.2E (Qualification of Applicants) would provide that an ETP may be held by an entity that is approved as a member organization. This proposed rule is based in part on the first sentence of NYSE Arca Equities Rule 2.2, which provides that an ETP on NYSE Arca Equities may be held by an entity that is a registered broker or dealer pursuant to Section 15 of the Act, as amended, including sole proprietors, partnerships, limited liability partnerships, corporations, and limited liability companies. The Exchange would not include in its Rule 2.2E the text in NYSE Arca Equities Rule 2.2 relating to registered broker dealers because it is duplicative of Rule 2(b)(i), which defines the term member organization on the Exchange.
• Proposed Rule 2.4E (Denial or Conditions to ETPs) would govern the denial or conditions to ETPs and is based on NYSE Arca Equities Rule 2.4 without any substantive differences. Paragraphs (a) and (b) of proposed Rule 2.4E would specify the circumstances when the Exchange could deny or condition trading privileges on the Exchange, and these circumstances are identical to those specified in NYSE Arca Equities Rule 2.4(a) and (b).
The proposed rule would separately specify the Series 7 Examination requirement for traders of ETP Holders for which the Exchange is the Designated Examining Authority. These proposed requirements are identical to the Series 7 Examination requirements for ETP Holders on NYSE Arca Equities. The Exchange proposes a non-substantive difference to paragraphs (c) and (f) of proposed Rule 2.4E to cross-reference Rule 9522 instead of NYSE Arca Equities Rule 10.
• Proposed Rule 2.6E (Revocable Privilege) would specify that the issuance of an ETP would constitute only a revocable privilege and confers on its holder no right or interest of any nature to continue as an ETP Holder. This proposed rule is based on NYSE Arca Equities Rule 2.6 without any differences. The Exchange also proposes to add a sub-header to Exchange rules immediately preceding Rule 2.6E that would provide “Requirements of Holding an ETP.” This proposed text is based on the sub-header before NYSE Arca Equities Rule 2.6 that provides “Requirements of Holding an ETP Requirements Applicable Generally.” The Exchange proposes an abbreviated form of the sub-header to eliminate unnecessary text. Because proposed Rule 2.6E, together with proposed Rule 2.4E, would establish the requirements for a member organization to obtain an ETP, the Exchange proposes that Rule 300—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 2.17E (Activity Assessment Fees) would specify the Activity Assessment Fees applicable for securities transactions effected on the Exchange as required by Section 31 of the Act. This proposed rule is based on current Rule 440H—Equities without any substantive differences. Specifically, the rule text is based on Supplementary Material .10, .20, and the last sentence of .30 to Rule 440H—Equities with non-substantive differences to use Pillar terminology. Proposed Rule 2.17E is therefore designed to retain the existing requirements relating to Activity Assessment Fees, but use new rule numbering for trading on the Pillar trading platform that is consistent with the Framework Filing. The Exchange does not propose to move rule text based on the first three sentences of Supplementary Material .30 to Rule 440H—Equities because that rule text is obsolete as it relates to a temporary program that automatically sunsetted in 2009.
Because proposed Rule 2.17E would set forth Activity Assessment Fees, the Exchange proposes that Rule 440H—Equities would not apply to trading on the Pillar trading platform.
• Proposed Rule 2.21E (Employees of ETP Holders Registration) would specify the registration requirements for employees of ETP Holders. This proposed rule is based on NYSE Arca Equities Rule 2.21 without any substantive differences. Accordingly, this rule would specify employee registration requirements for trading on the Exchange, including examination requirements, continuing education requirements, and procedures to register employees.
Because proposed Rule 2.21E, together with proposed Rule 2.4E, would specify employee registration
• Proposed Rule 2.22E would specify the Exchange Back-Up Systems and Mandatory Testing Requirements of the Exchange and is based on Rule 49(b)—Equities without any substantive changes. The Exchange proposes to move this rule text to Rule 2.22E so that it has the same rule number as the rules of NYSE Arca Equities. Because member organizations trading on the Exchange's cash equities Pillar trading platform would be designated as “ETP Holders” in Exchange rules, the Exchange proposes to use the term “ETP Holder” instead of “member organization” in proposed Rule 2.22E.
The Exchange proposes to designate the entirety of Rule 49—Equities (Exchange Business Continuity and Disaster Recovery Plans and Mandatory Testing) as not applicable to trading on the Pillar trading platform. Because the Exchange would trade in its secondary data center under the same rules as would be applicable to trading on its primary data center, the procedures specified in Rule 49(a)—Equities would no longer be applicable.
• Proposed Rule 2.24E (ETP Books and Records) would establish an ETP Holder's books and records requirements and is based on NYSE Arca Equities Rule 2.24 without any substantive differences. Because proposed Rule 2.24E would establish the same requirements as set forth in current Rule 440—Equities (Books and Records), the Exchange proposes that Rule 440—Equities would not be applicable to trading on the Pillar trading platform.
The Exchange proposes to amend Rule 3E to delete the term “Reserved” and re-name it “Organization and Administration.” Proposed Part I of Rule 3E would be designated as “Reserved.” Proposed Part II of Rule 3E would be designated “Regulation” and proposed Part III of Rule 3E would be designated “Dues, Fees, and Fines.” Except as described below, the rules under Rule 3E would be designated as “Reserved” because the subject matter of the NYSE Arca Equities Rules with corresponding numbers are the subject of existing Exchange rules that would continue to apply.
• Proposed Rule 3.6E (Surveillance Agreements) would specify that the Exchange may enter into agreements with domestic and foreign self-regulatory organizations providing for the exchange of information and other forms of mutual assistance for market surveillance, investigative, enforcement and other regulatory purposes. This proposed rule is based on NYSE Arca Equities 3.6 with no substantive differences. Because this rule covers the same subject matter as Rule 27—Equities, the Exchange proposes that that Rule 27—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 3.11E (Fingerprint-Based Background Checks of Exchange Employees and Others) would establish the Exchange's requirements for fingerprint-based background checks of Exchange employees and others. The proposed rule is based on NYSE Arca Equities Rule 3.11 and Rule 28—Equities, which are identical rules. The Exchange proposes to move the rule text from Rule 28—Equities to Rule 3.11E so that it has the same rule number as the same subject matter in the rules of NYSE Arca Equities. The Exchange further proposes that Rule 28—Equities would not be applicable to trading on the Pillar trading platform.
The Exchange proposes to amend Rule 6E to delete the term “Reserved” and re-name it “Business Conduct.” The Exchange proposes rules governing specified business conduct. Except as described below, the rules under Rule 6E would be designated as “Reserved.”
• Proposed Rule 6.3E (Prevention of the Misuse of Material, Nonpublic Information) would establish the Exchange's requirement that every ETP Holder establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material, non-public information by such ETP Holder or persons associated with such ETP Holder. This proposed rule is based on NYSE Arca Equities Rule 6.3 without any substantive differences. The Exchange proposes a non-substantive difference to refer to the Exchange's “regulatory staff” instead of “Surveillance Department.”
• Proposed Rule 6.10E (ETP Holders Holding Options) would specify an ETP Holder's obligations with respect to trading on the Exchange when holding any options that are not issued by the Options Clearing Corporation. This proposed rule is based on NYSE Arca Equities Rule 6.10 without any substantive differences. Current Rule 96—Equities (Limitations on Members' Trading Because of Options) sets forth a requirement similar to proposed Rule 6.10E, but that rule is only applicable to a member's trading while on the Floor for his own account or for any account in which he, his member organization, or any member, principal executive, or approved person of such organization is directly or indirectly interest. As proposed, Rule 6.10E would set forth these requirements and they would be applicable to all ETP Holders. In addition, the Exchange proposes that Rule 96—Equities (Limitation on Members' Trading Because of Options) would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 6.12E (Joint Accounts) would describe requirements relating to joint accounts. The proposed rule is based on NYSE Arca Equities Rule 6.12 without any substantive differences. The Exchange proposes a non-substantive difference in that the proposed rule would not include the phrase “Application of the System” because such terms are not defined on the Exchange. The Exchange proposes that Rules 93—Equities (Trading for Joint Account) and 94—Equities (Designated Market Marker's or Odd-Lot
• Proposed Rule 6.15E (Prearranged Trades) would prohibit prearranged trades and is based on NYSE Arca Equities Rule 6.15(b) without any substantive differences. The Exchange proposes that Rule 78—Equities, which similarly prohibits prearranged trades, would not be applicable to trading on the Pillar trading platform. The Exchange would not be adding rule text based on NYSE Arca Equities Rule 6.15(a), relating to prohibitions on engaging in manipulative practices or operations, because Rule 6140—Equities already establishes these requirements.
The Exchange proposes additional rules under Rule 7E Equities Trading.
As previously established in the Framework Filing, Section 1 of Rule 7E specifies the General Provisions relating to cash equities trading on the Pillar trading platform. The Exchange proposes the following additional rules:
• Proposed Rule 7.1E (Hours of Business) would specify that the Exchange would be open for the transaction of business on every business day. The proposed rule also sets forth when the CEO may take specified actions, such as halting or suspending trading in some or all securities on the Exchange. The proposed rule is based on NYSE Arca Equities Rule 7.1 and Rule 51—Equities. The Exchange proposes that Rule 51—Equities would not be applicable to trading on the Pillar trading platform. In addition, because the definition of the term “business day” in Rule 12—Equities would be redundant of proposed Rule 7.1E, the Exchange proposes that Rule 12—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 7.2E (Holidays) would establish the holidays when the Exchange would not be open for business. The proposed rule is based on NYSE Arca Equities Rule 7.2 and Supplementary Material .10 to Rule 51—Equities, including text that provides that when any holiday observed by the Exchange falls on a Sunday, the Exchange would not be open for business on the succeeding Monday, which is in Rule 51—Equities.
• Proposed Rule 7.3E (Commissions) would establish that ETP Holders may not charge fixed commissions and must indicate whether acting as a broker or as principal. The proposed rule is based on NYSE Arca Equities Rule 7.3 without any substantive differences. Because Rule 388—Equities (Prohibition Against Fixed Rates of Commission) also prohibits fixed commissions, the Exchange proposes that Rule 388—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 7.4E (Ex-Dividend or Ex-Right Dates) would establish the ex-dividend and ex-rights dates for stocks traded regular way. The proposed rule is based on NYSE Arca Equities Rule 7.4 without any substantive differences. The Exchange proposes that Rule 235—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 7.7E (Transmission of Bids or Offers) would establish that all bids and offers on the Exchange would be anonymous unless otherwise specified by the ETP Holder. The proposed rule is based on NYSE Arca Equities Rule 7.7 without any substantive differences.
• Proposed Rule 7.8E (Bid or Offer Deemed Regular Way) would establish that all bids and offers would be considered to be “regular way.” This proposed rule text is based on NYSE Arca Equities Rule 7.8E. As proposed, the Exchange would not accept orders that, if executed, would not settle regular way. Accordingly, the Exchange proposes that Rules 12—Equities, 14—Equities, 73—Equities, which each specify rules for orders that are not entered “regular way,” would not be applicable to trading on the Pillar trading platform. Currently, the Exchange accepts bids and offers that are not made regular way only from Floor brokers.
• Proposed Rule 7.9E (Execution Price Binding) would establish that, notwithstanding Exchange rules governing clearly erroneous executions, the price at which an order is executed is binding notwithstanding that an erroneous report is rendered. This proposed rule text is based on NYSE Arca Equities Rule 7.9 without any substantive differences. The Exchange proposes that Rules 71—Equities (Precedence of Highest Bid and Lowest Offer) and 411—Equities (Erroneous Reports) would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 7.10E (Clearly Erroneous Executions) would set forth the Exchange's rules governing clearly erroneous executions. The proposed rule is based on NYSE Arca Equities Rule 7.10 without any substantive differences. The Exchange proposes rule text based on NYSE Arca Equities rather than current Rule 128—Equities (Clearly Erroneous Executions) because the NYSE Arca Equities version of the rule uses the same terminology that the Exchange is proposing for the Pillar trading platform,
• Proposed Rule 7.11E (Limit Up—Limit Down Plan and Trading Pauses in Individual Securities Due to Extraordinary Market Volatility) would specify how the Exchange would comply with the Regulation NMS Plan to Address Extraordinary Market Volatility (“LULD Plan”).
• The Exchange proposes to amend paragraph (c)(i) of Rule 7.12E to change the rule cross reference from Rule 123D—Equities to Rule 7.35E(e). As described in greater detail below, the Exchange proposes Rule 7.35E to govern its auctions, including auctions following a trading halt. Accordingly, the procedures for reopening a security specified in Rule 123D—Equities would not be applicable on the Pillar trading platform.
• Proposed Rule 7.13E (Trading Suspensions) would establish authority for the Chair or the CEO of the Exchange to suspend trading in any and all securities that trade on the Exchange if such suspension would be in the public interest. This proposed rule is based on NYSE Arca Equities Rule 7.13 with non-substantive differences to use the term “CEO” instead of “President” and to omit a cross reference to a rule that is not applicable on the Exchange.
• Proposed Rule 7.14E (Clearance and Settlement) would establish the requirements regarding an ETP Holder's arrangements for clearing. Because all
• Proposed Rule 7.15E (Stock Option Transactions) would establish requirements for Market Makers relating to pool dealing and having an interest in an option that is not issued by the Options Clearing Corporation. The proposed rule is based on NYSE Arca Equities Rule 7.15 without any substantive differences. Because the proposed rule covers the same subject matter as Rule 105—Equities, the Exchange proposes that this rule would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 7.16E (Short Sales) would establish requirements relating to short sales. The proposed rule is based on NYSE Arca Equities Rule 7.16 without any substantive differences. Because the proposed rule covers the same subject matter as Rule 440B—Equities (Short Sales), the Exchange proposes that Rule 440B—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 7.17E (Firm Orders and Quotes) would establish requirements that all orders and quotes must be firm. This proposed rule is based on NYSE Arca Equities Rule 7.17 without any substantive differences. Because on the Pillar trading platform, the Exchange would only publish automated quotations consistent with proposed Rule 7.17E, the Exchange proposes that Rule 60—Equities (Dissemination of Quotations) would not be applicable to trading on the Pillar trading platform.
As noted above, the Exchange will file a separate proposed rule change to establish rules relating to Market Makers, which will be in Section 2 of Rule 7E. The Exchange has proposed Rule 7.18E in the ETP Listing Rules Filing.
Section 3 of Rule 7E sets forth Exchange trading rules for the Pillar trading platform. As noted above, the Exchange proposes certain substantive differences to how the Exchange would operate on the Pillar trading platform compared to how NYSE Arca Equities operates. These substantive differences would be reflected in the proposed rules governing Orders and Modifiers and Trading Sessions.
Proposed Rule 7.31E (Orders and Modifiers) would specify the orders and modifiers that would be available on the Exchange on the Pillar trading platform. The Exchange proposes to offer the same types of orders and modifiers that are available on NYSE Arca Equities, with specified substantive differences.
Proposed Rule 7.31E is based on NYSE Arca Equities Rule 7.31 with the following differences. With respect to Self-Trade Prevention (“STP”) Modifiers, because the Exchange would be operating on Pillar phase II protocols only, STPs would be based on the MPID of an ETP Holder and not on an ETP ID. Accordingly, proposed Rule 7.31E(i)(2) would not include references from NYSE Arca Equities Rule 7.31(i)(2) relating to ETPIDs. In addition, Arca Only Orders, which are described in NYSE Arca Equities Rule 7.31(e)(1), would be named “MKT Only Orders” on the Exchange, as described in proposed Rule 7.31E(e)(1). The Exchange does not propose any substantive differences to how MKT Only Orders would function as compared to Arca Only Orders on NYSE Arca Equities. Next, the Exchange proposes that for Primary Only Day/IOC Orders, an ETP Holder may specify that an order in NYSE Arca-listed securities may include an instruction to be routed to NYSE Arca as a routable order, as set forth in proposed Rule 7.31E(f)(1)(B). Finally, because when operating on the Pillar phase II protocols, the Exchange would not accept order types with conflicting order instructions, the Exchange proposes not to include in proposed Rule 7.31E text based on Commentary .02 to NYSE Arca Equities Rule 7.31.
Because proposed Rule 7.31E would govern orders and modifiers, the Exchange proposes that Rule 13—Equities (Orders and Modifiers) would not be applicable to trading on the Pillar trading platform. In addition, references to Trading Collars in Rule 1000(c)—Equities would not be applicable to trading on the Pillar Trading platform.
Proposed Rule 7.34E would specify trading session on the Exchange. Similar to NYSE Arca Equities, the Exchange proposes that on the Pillar trading platform, it would have Early, Core, and Late Trading Sessions. Accordingly, proposed Rule 7.34E is based on NYSE Arca Equities Rule 7.34, with non-substantive differences. The Exchange proposes one substantive difference from NYSE Arca Equities Rule 7.34 in that the Early Trading Session would begin at 7:00 a.m. Eastern Time rather than 4:00 a.m. Eastern Time. Similar to NYSE Arca Equities, the Exchange would begin accepting orders 30 minutes before the Early Trading Session begins, which means order entry acceptance would begin at 6:30 a.m. Eastern Time instead of at 3:30 a.m. Eastern Time. These differences would be reflected in proposed Rule 7.34E(a)(1).
In addition, because the Exchange would use Pillar phase II protocols, proposed Rule 7.34E(b)(1) would specify that an order entered without a trading session designation would be rejected. In addition, the Exchange proposes that it would not include rule text based on NYSE Arca Equities Rule 7.34(b)(2) or (3).
The following proposed rules in Section 3 of Rule 7E would be based on existing NYSE Arca Equities rules without any substantive differences:
• Proposed Rule 7.29E (Access) would provide that the Exchange would be available for entry and cancellation of orders by ETP Holders with authorized access. To obtain authorized access to the Exchange, each ETP Holder would be required to enter into a User Agreement. Proposed Rule 7.29E is based on NYSE Arca Equities Rule 7.29(a), without any substantive differences. The Exchange does not propose to include rule text based on NYSE Arca Equities Rule 7.29(b) because the Exchange would not offer sponsored access.
• Proposed Rule 7.30E (Authorized Traders) would establish requirements for ETP Holders relating to ATs. The proposed rule is based on NYSE Arca Equities Rule 7.30, without any substantive differences.
• Proposed Rule 7.32E (Order Entry) would establish requirements for order entry size. The proposed rule is based on NYSE Arca Equities Rule 7.32 without any substantive differences. The Exchange proposes that the current maximum order size references before subparagraph (a) in Rule 1000—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 7.33E (Capacity Codes) would establish requirements for
• Proposed Rule 7.35E (Auctions) would establish requirements for auctions on the Exchange. Because the Exchange proposes to automate all auctions and not have a DMM facilitate such auctions, the proposed rule is based on NYSE Arca Equities Rule 7.35 without any substantive differences. The Exchange proposes that paragraph (a)(10)(A), regarding Auction Collars for Trading Halt Auctions, which is based on a pilot rule of NYSE Arca Equities, would be in effect until SR-NYSEArca-2016-130 has been approved and a proposed rule change based on SR-NYSEArca-2016-130 for the Exchange is effective and operative.
• Proposed Rule 7.36E (Order Ranking and Display) would establish requirements for how orders would be ranked and displayed at the Exchange. The proposed rule is based on NYSE Arca Equities Rule 7.36 without any substantive differences.
• Proposed Rule 7.37E (Order Execution and Routing) would establish requirements for how orders would execute and route at the Exchange, the data feeds that the Exchange would use, and Exchange requirements under the Order Protection Rule and the prohibition on locking and crossing quotations in NMS Stocks. This proposed rule is based on NYSE Arca Equities Rule 7.37 with one substantive difference. Because the Exchange would not be taking in data feeds from broker dealers or routing to Away Markets that are not displaying protected quotations, the Exchange proposes that proposed Rule 7.37E would not include rule text from paragraph (b)(3) of NYSE Arca Equities Rule 7.37, which specifies that an ETP Holder can opt out of routing to Away Markets that are not displaying a protected quotation,
• Proposed Rule 7.38E (Odd and Mixed Lot) would establish requirements relating to odd lot and mixed lot trading on the Exchange. The proposed rule is based on NYSE Arca Equities Rule 7.38 without any substantive differences.
• Proposed Rule 7.40E (Trade Execution and Reporting) would establish the Exchange's obligation to report trades to an appropriate consolidated transaction reporting system. The proposed rule is based on NYSE Arca Equities Rule 7.40 without any substantive differences. Because all reporting of transactions would be automated, the Exchange proposes that Rule 128A—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 7.41E (Clearance and Settlement) would establish requirements that all trades be processed for clearance and settlement on a locked-in and anonymous basis. Specifically, proposed Rules 7.41E(a), (b), (d), and (e) are based on NYSE Arca Equities Rule 7.41(a), (b), (d), and (e) with non-substantive differences not to include references to sponsored access, because the Exchange will not offer sponsored access. Proposed Rule 7.41E(c) is based on NYSE Rule 130(b), which reflects the circumstances when the Exchange may reveal the contra-party identity.
As noted above, the Exchange would not offer a Retail Liquidity Program when it trades on the Pillar trading platform. Accordingly, the Exchange would not propose rules based on NYSE Arca Equities Rule 7.44 and proposed Rules 7.36E, 7.37E, and 7.38E would not include cross references to Rule 7.44. The Exchange proposes that Rule 107C—Equities would not be applicable to trading on the Pillar trading platform.
Section 4 of Rule 7E would establish the Operation of a Routing Broker. Specifically, proposed Rule 7.45E (Operation of a Routing Broker) would establish the outbound and inbound function of the Exchange's routing broker and the cancellation of orders and the Exchange's error account. The proposed rule is based on NYSE Arca
Section 5 of Rule 7E would establish requirements relating to the Plan to Implement a Tick Size Pilot Program. Proposed Rule 7.46E (Tick Size Pilot Plan) would specify such requirements. The proposed rule is based on NYSE Arca Equities Rule 7.46 with a proposed substantive difference not to include cross references to a Retail Liquidity Program in proposed Rules 7.46E(c), (d)(1), and (e)(1). The Exchange also proposes to designate proposed Rules 7.46E(f)(4) and (f)(5)(B) as “Reserved” because the Exchange would not support Retail Price Improvement Orders or routing to Away Markets that are not displaying protected quotations on Pillar. The remaining differences are all non-substantive, including using the term MKT Only Order rather than Arca Only Order. The Exchange proposes that Rule 67—Equities (Tick Size Pilot Plan) would not be applicable to trading on the Pillar trading platform.
The Exchange proposes to amend Rule 12E to delete the term “Reserved,” re-name it “Arbitration,” and establish the Exchange's arbitration procedures. The proposed rule text is based on current Rule 600—Equities, with a non-substantive change to use the term “ETP Holder” instead of “member organization.” The Exchange proposes to move this rule text to Rule 12E so that it has the same rule number as the arbitration rules of NYSE Arca Equities. The Exchange further proposes that Rule 600—Equities would not be applicable to trading on the Pillar trading platform.
The Exchange proposes to amend Rule 13E to delete the term “Reserved” and re-name it “Liability of Directors and Exchange.”
• Proposed Rule 13.2E (Liability of the Exchange) would establish requirements governing liability of the Exchange, including the limits on liability for specified circumstances. This proposed rule is based on Rule 905NY, which governs liability of the Exchange for its options market, and NYSE Arca Equities Rule 13.2 without any substantive differences. Because this rule would govern liability of the Exchange, the Exchange proposes that Rule 18—Equities would not be applicable to trading on the Pillar trading platform.
• Proposed Rule 13.3E (Legal Proceedings Against Directors, Officers, Employees, or Agents) would establish requirements relating to legal proceedings against directors, officers, employees, agents, or other officials of the Exchange. The proposed rule is based on NYSE Arca Equities Rule 13.3 without any substantive differences.
• Proposed Rule 13.4E (Exchange's Costs of Defending Legal Proceedings) would establish the circumstances regarding who is responsible for the Exchange's costs in defending a legal proceeding brought against the Exchange. The proposed rule is based on NYSE Arca Equities Rule 13.4 without any substantive differences and Rule 61, which governs the Exchange's costs of defending legal proceedings for its options market. The Exchange proposes that Rule 25—Equities (Exchange Liability for Legal Costs) would not be applicable to trading on the Pillar trading platform.
After the Exchange transitions to the Pillar trading platform, the Exchange proposes to maintain certain functionality in its Off-Hours Trading Facility, which is currently described in Rules 900—Equities through 907—Equities (the “Rule 900 Series”). Specifically, once trading begins on its Pillar trading platform, the Exchange proposes that the only function that would be available on its Off-Hours Trading Facility would be for ETP Holders to enter aggregate-price coupled orders.
The Exchange proposes that new Rule 7.39E would describe this Off-Hours Trading Facility functionality,
• Proposed Rule 7.39E(a) would provide that Rule 7.39E would apply to all Exchange contracts made on the Exchange through its “Off-Hours Trading Facility.” This proposed rule text is based on the first sentence of Rule 900(a)—Equities. The Exchange would not include rule text specified in the second sentence of Rule 900(a)—Equities and text from Rule 900(b)—Equities through Rule 900(d)—Equities because it would not apply to the Off-Hours Trading Facility once trading begins on the Pillar trading platform.
• Proposed Rule 7.39E(b) would establish the definitions for the Off-Hours Trading Facility. Proposed Rule 7.39E(b)(i) would define the term “Aggregate-Price Coupled Order” to mean an order to buy or sell a group of securities, which group includes no fewer than 15 Exchange-listed or traded securities having a total market value of $1 million or more. This proposed definition is based on the definition of “aggregate-price order” in Rule 900(e)(i)—Equities with a non-substantive difference to use the term “Aggregate-Price Coupled Order” rather than “aggregate-price order.” Proposed Rule 7.39E(e)(b)(ii) would define the term “Off-Hours Trading Facility,” to mean the Exchange facility that permits ETP Holders to effect securities transactions on the Exchange under proposed Rule 7.39E and is based on Rule 900(e)(v)—Equities with a non-substantive difference to use the term “ETP Holder” instead of “member or member organization.” Proposed Rule 7.39E(b)(ii) would also define the term “Off-Hours Trading” to mean trading through the Off-Hours Trading Facility. This text is based on the second sentence of Rule 900(e)(v)—Equities. Because the Exchange would only be trading Aggregate-Price Coupled Orders in the Off-Hours Trading Facility, the Exchange proposes that Rule 7.39E(b) would not include definitions for “closing price,” “closing-price order,” or “guaranteed price coupled order,” which are defined in Rule 900(e)(ii)-(iv)—Equities.
• Proposed Rule 7.39E(c) would establish that only such NMS Stocks, as the Exchange may specify, including Exchange-listed securities and UTP Securities, would be eligible to trade in the Off-Hours Trading Facility. This proposed rule text is based on Rule 901—Equities with non-substantive differences to use Pillar terminology to describe which securities would be eligible to trade in the Off-Hours Trading Facility. The Exchange would not include rule text from Supplementary Material .10 of Rule 902, which provides that only the orders described in Rule 902 are eligible for Off-Hours Trading because it is redundant of proposed Rule 7.39E(c).
• Proposed Rule 7.39E(d) would establish the procedures for entering
• Proposed Rule 7.39E(d)(i) would provide that transactions effected through the Off-Hours Trading Facility pursuant to Aggregate-Price Coupled Orders may be for delivery at such time as the parties entering the orders may agree. This proposed rule text is based on the first sentence of Rule 902(c)—Equities. The Exchange would not include the second sentence of Rule 902(c)—Equities in proposed Rule 7.39E(d)(i) because all orders in the Off-Hours Trading Facility would be Aggregate-Price Coupled Orders and thus subject to proposed Rule 7.39E(d)(i).
• Proposed Rule 7.39E(d)(ii) would provide that ETP Holders would mark all sell orders as “long” as appropriate. This proposed rule text is based on Rule 902(f)—Equities with a non-substantive difference to use the term “ETP Holder” instead of “members and member organizations.”
• Proposed Rule 7.39E(d)(iii) would provide that each side of an Aggregate-Price Coupled Order entered on a matched basis would be traded on entry against the other side without regard to the priority of other orders entered into the Off-Hours Trading Facility. This proposed rule text is based on Rule 903(b)—Equities and 903(d)(i) with non-substantive differences to combine those rules into a single sub-section, use Pillar terminology, and use the term “matched” instead of “coupled.”
• Proposed Rule 7.39E(d)(iv) would provide that a transaction described in this Rule would be an Exchange contract that is binding in all respects and without limit on the ETP Holder that enters any of the transaction's component orders and that the ETP Holder would be fully responsible for the Exchange contract. This proposed rule text is based on Rule 903(c)—Equities with non-substantive differences to use the term “ETP Holder” instead of “member or member organization.”
• Proposed Rule 7.39E(e) would provide that each ETP Holder would report to the Exchange such information, in such manner, and at such times, as the Exchange may from time to time prescribe in respect of Off-Hours Trading, including, but not limited to, reports relating to Off-Hours Trading orders, proprietary or agency activity and activity in related instruments. This proposed rule text is based on Rule 905(a)—Equities with a non-substantive difference to use the term “ETP Holder” instead of “member or member organization.”
• Proposed Rule 7.39E(f) would provide that each ETP Holder would maintain and preserve such records, in such manner, and for such period of time, as the Exchange may from time to time prescribe in respect of Off-Hours Trading, including, records relating to orders, cancellations, executions and trading volume, proprietary trading activity, activity in related instruments and securities and other records necessary to allow the ETP Holder to comply with the reporting provisions of proposed paragraph (e) of Rule 7.39E. This proposed rule text is based on rule 905(b)—Equities with non-substantive differences to use the term “ETP Holder” instead of “member or member organization,” and to eliminate the “but not limited to” text.
• Proposed Rule 7.39E(g) would provide that notwithstanding a trading halt in any security (other than a trading halt pursuant to Rule 7.12E (Trading Halts Due to Extraordinary Market Volatility)) or a corporate development, ETP Holders may enter Aggregate-Price Coupled Orders into the Off-Hours Trading Facility under this Rule. This proposed rule text is based on Supplementary Material .10 to Rule 906—Equities with non-substantive differences to cross-reference Rule 7.12E instead of Rule 80B and to use the term “ETP Holders” instead of “members and member organizations.”
In addition to the provisions of the Rule 900 Series noted above, the Exchange would not include rule text from Rule 903(d)(ii)—Equities and Rule 906(b)—Equities in proposed Rule 7.39E because these provisions relate to Floor-based use of the Off-Hours Trading Facility, which would not be available on the proposed Pillar trading platform. In addition, the Exchange proposes that Rule 7.39E would not include any provisions from Rule 907, which describes now-obsolete crossing session functionality.
As described in more detail above, in connection with the proposed rules to support cash equities trading on the Pillar trading platform, the Exchange has identified current Exchange rules that would not be applicable because they would be superseded by a proposed rule. The Exchange has identified additional current rules that would not be applicable to trading on Pillar. These rules do not have a counterpart in the proposed Pillar rules, described above, but would be obsolete on the new, fully-automated trading platform.
The main category of rules that would not be applicable to trading on the Pillar trading platform are those that are specific to Floor-based trading, including requirements relating to DMMs and Floor brokers. For this reason, the Exchange proposes that the following Floor-specific rules would not be applicable to trading on the Pillar trading platform:
• Paragraphs (a), (i), and (j) of Rule 2—Equities (“Member,” “Membership,” and “Member Firm,” etc.) (defining terms relating to Floor-based trading,
• Rule 6—Equities (Floor).
• Rule 6A—Equities (Trading Floor).
• Rule 35—Equities (Floor Employees to be Registered).
• Rule 36—Equities (Communications Between Exchange and Members' Offices).
• Rule 37—Equities (Visitors).
• Rule 46—Equities (Floor Officials—Appointments).
• Rule 46A—Equities (Executive Floor Governors).
• Rule 47—Equities (Floor Officials—Unusual Situations).
• Rule 52—Equities (Dealings on the Exchange—Hours).
• Rule 53—Equities (Dealings on Floor—Securities).
• Rule 54—Equities (Dealings on Floor—Persons).
• Rule 70—Equities (Execution of Floor broker interest).
• Rule 74—Equities (Publicity of Bids and Offers).
• Rule 75—Equities (Disputes as to Bids and Offers).
• Rule 76—Equities (`Crossing' Orders).
• Rule 77—Equities (Prohibited Dealings and Activities).
• Rule 79A—Equities (Miscellaneous Requirements on Stock Market Procedures).
• Rule 90—Equities (Dealings by Members on the Exchange).
• Rule 91—Equities (Taking or Supplying Securities Named in Order).
• Rule 95—Equities (Discretionary Transactions).
• Rule 103A—Equities (Member Education).
• Rule 106A—Equities (Taking Book or Order of Another Member).
• Rule 108—Equities (Limitation on Members' Bids and Offers).
• Rule 112—Equities (Orders Initiated `Off the Floor').
• Rule 116—Equities (`Stop' Constitutes Guarantee).
• Rule 117—Equities (Orders of Members To Be in Writing).
• Rule 121—Equities (Records of DMM Units).
• Rule 122—Equities (Orders with More than One Broker).
• Rule 123—Equities (Record of Orders).
• Rule 123A—Equities (Miscellaneous Requirements).
• Rule 123B—Equities (Exchange Automated Order Routing System).
• Rule 126—Equities (Odd-Lot Dealers General).
• Rule 127—Equities (Block Crossed Outside the Prevailing Exchange Quotation).
• Rule 128B—Equities (Publication of Changes, Corrections, Cancellations or Omissions and Verifications of Transactions).
• Rule 131—Equities (Comparison—Requirements for Reporting Trades and Providing Facilities).
• Rule 301—Equities (Qualifications for Membership).
• Rule 303—Equities (Limitation on Access to Floor).
• Rule 304A—Equities (Member Examination Requirements).
• Rule 440I—Equities (Records of Compensation Arrangements—Floor Brokerage).
• Rule 1000(d)-(g)—Equities (Capital Commitment Schedule).
In addition, the Exchange proposes that the following rules would not be applicable to trading on the Pillar platform.
• Rule 11—Equities (Effect of Definitions) because Rule 1.1E supersedes any description of definitions.
• Rule 23—Equities (New York local time) because all references to times in the proposed Pillar trading platform rules refer to “Eastern Time.”
• Rule 24—Equities (Change in Procedure to Conform to Changes Hours of Trading) because proposed Rule 7.1E would specify the hours of the Exchange.
• Rule 86—Equities (NYSE MKT Bonds) because the Exchange would not trade bonds on the Pillar trading platform.
• Rule 107B—Equities (Supplemental Liquidity Providers) because the Exchange would not support the Supplemental Liquidity Provider program on its proposed Pillar trading platform.
• Rule 119—Equities (Change in Basis from “And Interest” to “Flat”) because the Exchange would not trade bonds on its proposed Pillar trading platform.
• Rule 131A—Equities (A Member Organization Shall Use Its Own Mnemonic When Entering Orders) because the Exchange would use MPIDs rather than mnemonics on its proposed Pillar trading platform.
To simplify the Exchange's rules, the Exchange proposes to delete Equities rules that are currently designated “Reserved.”
Section 11(a)(l) of the Act
With the proposed transition of the Exchange to a fully automated electronic trading model that does not have a trading floor, the Exchange believes that the policy concerns Congress sought to address in Section 11(a)(1),
The four conditions imposed by the “effect versus execute” rule are designed to put members and non-members of an exchange on the same footing, to the extent practicable, in light of the purpose of Section 11(a). For the reasons set forth below, the Exchange believes the structure and characteristics of its proposed Pillar trading system do not result in disparate treatment of members and non-members and places them on the “same footing” as intended by Rule 11a2-2(T).
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In conclusion, The Exchange believes that its Pillar trading system would satisfy the four requirements of Rule 11a2-2(T) as well as the general policy objectives of Section 11(a). The Exchange's proposed Pillar trading system would place all users, members and non-members, on the “same footing” with respect to transactions on the Exchange for covered accounts as intended by Rule 11a2-2(T). As such, no Exchange ETP Holder would be able to engage in proprietary trading in a manner inconsistent with Section 11(a).
As discussed above, because of the technology changes associated with the migration to the Pillar trading platform, the Exchange will announce by Trader Update when rules with an “E” modifier will become operative.
The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the “Act”),
Generally, the Exchange believes that the proposed rules would support the Exchange's transition to a fully automated cash equities trading market with a price-time priority model because they are based on the rules of its affiliated market, NYSE Arca Equities. The proposed rule change would therefore remove impediments to and perfect the mechanism of a free and open market and a national market system because they are based on the approved rules of another exchange.
More specifically, the Exchange believes that the proposed definitions for Rule 1.1E would remove impediments to and perfect the mechanism of a free and open market and a national market system because the proposed definitions are terms that would be used in the additional rules proposed by the Exchange. The Exchange also believes that proposed Rule 2E would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would specify the requirements to obtain an ETP for trading on the Exchange's Pillar trading platform. In addition, the proposed rules governing employee registrations would remove impediments to and perfect the mechanism of a free and open market and a national market system because they would ensure that employees of broker-dealers that are members of both NYSE Arca Equities and the Exchange would be subject to the same registration requirements. The proposed rule change would therefore also promote just and equitable principles of trade by requiring the same registration requirements for the same type of trading on affiliated exchanges.
The Exchange believes that proposed Rule 3E would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would move existing rules to new rule numbering that aligns with the Framework Filing rule numbering. The proposed rule change would therefore promote consistency among the Exchange and its affiliates and make its rules easier to navigate for the public, the Commission, and members.
The Exchange believes that proposed Rule 6E is designed to prevent fraudulent and manipulative acts and practices and to promote just and equitable principles of trade because it would establish regulatory requirements for its ETP Holders. Proposed Rule 6.3E is designed to prevent fraudulent and manipulative acts and practices because it addresses the potential misuse of material non-public information and is based on NYSE Arca Equities Rule 6.3. The remaining rules proposed for Rule 6E are based on existing Exchange rules and the Exchange believes it would make its rules easier to navigate to move the text of these rules to rule numbers consistent with the Framework Filing.
The Exchange believes that proposed Rule 7E would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would establish rules that would govern trading on the Exchange, including post-trade requirements, that would establish the Exchange as a fully automated trading market with a price-time priority trading model. The proposed rules are based on the rules of NYSE Arca Equities, and include rules governing orders and modifiers, ranking and display, execution and routing, trading sessions, and auctions. The Exchange believes that the proposed substantive difference that its proposed Early Trading Session would begin at 7:00 a.m. Eastern Time, rather than 4:00 a.m. Eastern Time, would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would provide transparency of the trading hours of the Exchange when it begins trading on the Pillar trading platform.
The Exchange believes that proposed Rule 7.39E, which would govern the Off-Hours Trading Facility on the Exchange, would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would use Framework Filing rule numbering and Pillar terminology to describe the Off-Hours Trading Facility that would continue to be available once the Exchange transitions to Pillar. Proposed Rule 7.39E, which would offer ETP Holders the ability to enter Aggregate-Price Coupled Orders, is based on the Rule 900 Series.
The Exchange believes that proposed Rule 12E would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would move an existing rule to new rule numbering that aligns with the Framework Filing rule numbering. The proposed rule change would therefore promote consistency among the Exchange and its affiliates and make its rules easier to navigate for the public, the Commission, and members.
The Exchange believes that proposed Rule 13E would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would harmonize the Exchange's rules governing liability for its equity market with Exchange rules governing liability for its options markets, and the rules governing liability on NYSE Arca Equities. The proposed rule change would therefore promote consistency among the Exchange and its affiliates and make its rules easier to navigate for the public, the Commission, and members.
The Exchange further believes that it would remove impediments to and perfect the mechanism of a free and open market and a national market system to specify which current rules would not be applicable to trading on the Pillar trading platform. The Exchange believes that the following legend, which would be added to existing rules, “This rule is not applicable to trading on the Pillar trading platform,” would promote transparency regarding which rules would govern trading on the Exchange once it transitions to Pillar. The Exchange has proposed to add this legend to rules that would be superseded by proposed rules or rules that would not be applicable because they concern Floor-based trading. The Exchange also believes that it would remove impediments to and perfect the mechanism of a free and open market and a national market system to delete rule numbers that are currently “reserved” because it would reduce confusion and promote transparency to delete references to rules that do not have any substantive content. The Exchange further believes that because it is transitioning to a new rule numbering framework, maintaining these rules on a reserved basis is no longer necessary.
For reasons described above, the Exchange believes that the proposal for the Exchange to operate on a fully automated trading market without a Floor is consistent with Section 11(a) of the Act and Rule 11a2-2(T) thereunder.
Finally, the Exchange believes that proposed Rule 2.17E furthers the objectives of Section 6(b)(4) 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 change is designed to propose rules to support the Exchange's new Pillar trading platform, which would be a fully automated cash equities trading market that trades all NMS Stocks and is based on the rules of NYSE Arca Equities. The Exchange operates in a highly competitive environment in which its unaffiliated exchange competitors operate multiple affiliated exchanges that operate under common rules. By moving the Exchange to a fully automated trading model that trades all NMS Stocks, the Exchange believes that it will be able to compete on a more level playing field with its exchange competitors that similarly trade all NMS Stocks on fully automated trading models. In addition, by basing its rules on those of NYSE Arca Equities, the Exchange will provide its members with consistency across affiliated exchanges, thereby enabling the Exchange to compete with unaffiliated exchange competitors that similarly operate multiple exchanges on the same trading platforms.
No written comments were solicited or received with respect to the proposed rule change.
Within 45 days of the date of publication of this notice in the
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule change should be disapproved.
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
On July 29, 2016, the New York Stock Exchange LLC (“NYSE” or the “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
The Commission published the proposed rule change for comment in the
On September 23, 2016, the NYSE submitted a response to the IEX letter (“Response Letter I”) which is available at
On November 2, 2016, the Exchange filed Amendment No. 2 to the proposed rule change.
Section 19(b)(2) of the Act
The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment Nos. 1-4, the issues raised in the comment letters that have been submitted in connection therewith, and the Exchange's response to the comments.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,
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 Rules 7.29E and 1.1E to provide for a Delay Mechanism. 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 Rules 7.29E and 1.1E to provide for an intentional delay to specified order processing, which would be referred to as the “Delay Mechanism.”
To effect its transition to Pillar, the Exchange has adopted the rule numbering framework of the NYSE Arca Equities, Inc. (“NYSE Arca Equities”) rules for Exchange cash equities trading on the Pillar trading platform.
The Exchange has also proposed trading rules for cash equity trading on Pillar, which are based on the trading rules of NYSE Arca Equities.
The Exchange proposes a delay mechanism on Pillar that would add the equivalent of 350 microseconds of latency to inbound and outbound order messages, as described in greater detail below. The requirements for the proposed Delay Mechanism would be set forth in Rule 7.29E, and a definition of “Delay Mechanism” would be in Rule 1.1E. The Exchange's proposed Delay Mechanism is based in part on the operation of the intentional delay mechanism of Investors Exchange LLC (“IEX”). In addition, when the Exchange implements the Delay Mechanism, it would no longer offer Add Liquidity Only (“ALO”) Order or Day Intermarket Sweep Order (“ISO”) functionality and all Pegged Orders would not be displayed.
As noted above, the proposed Delay Mechanism would function similarly to the intentional delay mechanism of IEX, which IEX refers to as the “IEX POP.” The IEX POP adds the equivalent of 350 microseconds of latency between the network access point of the POP and IEX's matching engines at its primary data center.
As described in greater detail below, except when routing orders, the Exchange's proposed Delay Mechanism would provide for the addition of latency under the same circumstances as the IEX POP.
The Exchange proposes to add paragraph (y) to Rule 1.1E, which is currently “Reserved,” to define “Delay Mechanism.” As proposed, the Delay Mechanism would mean a delay that is an equivalent of 350 microseconds of latency that is added to specified order processing. This delay would be in addition to any natural latency inherent in accessing the Exchange and Away Markets.
Proposed Rule 1.1E(y) would further provide that due to force majeure events and acts of third parties, the Exchange does not guarantee that the delay would always be 350 microseconds and that the Exchange would periodically monitor such latency, and would make adjustments to the latency as reasonably necessary to achieve consistency with the 350 microsecond target as soon as commercially practicable. The proposed rule would further provide that, if the Exchange determines to increase or decrease the delay period, it would submit a rule filing pursuant to Section 19 of the Act. This proposed rule text is based on Supplementary Material .20 [sic] (POP Latency) to IEX Rule 11.510 without any substantive differences.
The Exchange proposes to add paragraph (b) to Rule 7.29E to describe the Delay Mechanism.
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Any inbound communications to the Exchange from the Away Market about such routed order, whether a rejection or execution report, would also be subject to the Delay Mechanism. In addition, any such report forwarded to the ETP Holder that entered the order would then be subject to an additional Delay Mechanism under proposed Rule 7.29E(b)(1)(B). Accordingly, the Exchange would add a total of 1,400 microseconds of round-trip delay to an order that the Exchange routes to an Away Market. The Exchange's proposed Delay Mechanism for orders that route would function differently from the IEX POP with respect to routable orders. Under IEX Rule 11.510, a routable order on IEX must traverse the IEX POP to access IEX's routing logic, and any orders that the IEX routing logic determines to send to the IEX matching engine must traverse an additional IEX POP. However, IEX does not include an IEX POP between its routing logic and routing to markets other than IEX.
The Exchange believes its proposed application of the Delay Mechanism to routable orders is consistent with how the Exchange already functions, which is that orders are matched for execution before routing (unless the order has an instruction to route to the primary listing market). As such, if there is an execution opportunity on the Exchange, an order would be subject to the same additional latency regardless of whether the order is routable or not. Only if the Exchange were to route an order would it add the latency of the Delay Mechanism a second time. The Exchange believes that this additional application of the proposed Delay Mechanism would ensure that the Exchange would not have a speed advantage over ETP Holders in routing the unexecuted quantity of an order to an Away Market. Specifically, an ETP Holder would be subject to the same latency in learning of an execution on the Exchange (350 microseconds after the execution) as the Exchange would apply to routing such order (350 microseconds before routing such order). Accordingly, an ETP Holder that would rather route directly to Away Markets would be able to operate on a level playing field with the Exchange's routing broker.
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Under proposed Rule 7.29E(b)(2), the Exchange would not apply the Delay Mechanism to the following:
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The Exchange proposes an additional difference between its proposed Delay Mechanism and the IEX POP. As set forth in Supplementary Material .10 [sic] to IEX Rule 11.510, IEX would not apply the IEX POP when trading out of its back up system because it does not offer connectivity from the IEX POP to its back up systems. By contrast, the Exchange proposes that the Delay Mechanism would be functional regardless of whether the Exchange is operating out of its primary or secondary data center.
Subject to rule approvals, the Exchange will announce the implementation of the Delay Mechanism by Trader Update, which may be after the Exchange transitions to Pillar.
The proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange further believes that the proposed Delay Mechanism would remove impediments to and perfect the mechanism of a free and open market and a national market system and would protect investors and the public interest because it would provide a choice of exchanges for market participants that prefer to trade or list on an exchange that offers a delay mechanism.
The Exchange also believes that the proposed Delay Mechanism, as it would apply to orders that are routed to Away Markets, would remove impediments to and perfect the mechanism of a free and open market and a national market system and would protect investors and the public interest because it is designed in a manner that would enable ETP Holders that would prefer to route unexecuted quantities of orders to Away Markets, rather than having the Exchange route to Away Markets, to operate on a level playing field. As such, this aspect of the proposed Delay Mechanism is not unfairly discriminatory and would not impose a burden on competition because the Exchange's outbound router would not have unique access or preferences with respect to orders routed to Away Markets. As such, the Exchange's outbound router functionality would be on substantively comparable terms to a third party routing broker that is a member of the Exchange.
In addition, the Exchange believes that the proposed Delay Mechanism is consistent with the Commission's recent interpretation of Rule 611 of Regulation NMS.
The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is designed to provide a competitive trading model to IEX. For this reason, the Exchange has proposed a Delay Mechanism that would function similarly to the IEX POP, with the exception of how the Delay Mechanism would be applied to routable orders. The Exchange believes that its proposed application of the Delay Mechanism to routable orders would not impose a burden on competition because it is designed in a manner that would enable ETP Holders that would prefer to route unexecuted quantities of orders to Away Markets, rather than having the Exchange route to Away Markets, to operate on a level playing field. The Exchange's proposal is therefore designed to promote competition by offering a choice of exchanges to those ETP Holders and issuers that prefer to trade or list on an exchange that offers a delay mechanism. Accordingly, the proposed rule change is designed to introduce additional competition among exchanges so that broker dealers and issuers have more than one option if seeking a trading venue that offers an intentional delay mechanism.
No written comments were solicited or received with respect to the proposed rule change.
Within 45 days of the date of publication of this notice in the
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule change should be disapproved.
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501
Section 17(d) (15 U.S.C. 80a-17(d)) of the Investment Company Act of 1940 (15 U.S.C. 80a
Rule 17d-1 also contains a number of exceptions to the requirement that a fund must obtain Commission approval prior to entering into joint transactions or arrangements with affiliates. For example, funds do not have to obtain Commission approval for certain employee compensation plans, certain tax-deferred employee benefit plans, certain transactions involving small business investment companies, the receipt of securities or cash by certain affiliates pursuant to a plan of reorganization, certain arrangements regarding liability insurance policies and transactions with “portfolio affiliates” (companies that are affiliated with the fund solely as a result of the fund (or an affiliated fund) controlling them or owning more than five percent of their voting securities) so long as certain other affiliated persons of the fund (
Thus, the rule contains two filing and recordkeeping requirements that constitute collections of information. First, rule 17d-1 requires funds that wish to engage in a joint transaction or arrangement with affiliates to meet the procedural requirements for obtaining exemptive relief from the rule's prohibition on joint transactions or arrangements involving first- or second-tier affiliates. Second, rule 17d-1 permits a portfolio affiliate to enter into a joint transaction or arrangement with the fund if a prohibited participant has a financial interest that the fund's board determines is not material and records the basis for this finding in their meeting minutes. These requirements of rule 17d-1 are designed to prevent fund insiders from managing funds for their own benefit, rather than for the benefit of the funds' shareholders.
Based on an analysis of past filings, Commission staff estimates that 18 funds file applications under section 17(d) and rule 17d-1 per year. The staff understands that funds that file an application generally obtain assistance from outside counsel to prepare the application. The cost burden of using outside counsel is discussed below. The Commission staff estimates that each
As noted above, the Commission staff understands that funds that file an application under rule 17d-1 generally use outside counsel to assist in preparing the application. The staff estimates that, on average, funds spend an additional $93,131 for outside legal services in connection with seeking Commission approval of affiliated joint transactions. Thus, the staff estimates that the total annual cost burden imposed by the exemptive application requirements of rule 17d-1 is $1,676,35.
We estimate that funds currently do not rely on the exemption from the term “financial interest” with respect to any interest that the fund's board of directors (including a majority of the directors who are not interested persons of the fund) finds to be not material. Accordingly, we estimate that annually there will be no transactions under rule 17d-1 that will result in this aspect of the collection of information.
Based on these calculations, the total annual hour burden is estimated to be 2772 hours and the total annual cost burden is estimated to be $1,676,358.
The estimate of average burden hours is made solely for the purposes of the Paperwork Reduction Act. The estimate is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules. Complying with these collections of information requirement is necessary to obtain the benefit of relying on rule 17d-1. Responses will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number.
The public may view the background documentation for this information collection at the following Web site,
Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (“PRA”) (44 U.S.C. 3501
Rule 15b11-1 provides that a broker or dealer may register by notice pursuant to section 15(b)(11)(A) of the Exchange Act (15 U.S.C. 78
The Commission staff estimates that the total annual reporting burden associated with Rule 15b11-1 and Form BD-N is approximately three hours, based on an average of two initial notice registrations per year that each take approximately 30 minutes to complete, for one hour, plus an average of nine amendments per year that each take approximately fifteen minutes to complete, for 2.25 hours, rounded down to two hours, for a total of three hours.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number.
The public may view background documentation for this information collection at the following Web site:
Securities and Exchange Commission (“Commission”).
Notice of an application for an order under section 12(d)(1)(J) of the Investment Company Act of 1940 (the “Act”) for an exemption from sections 12(d)(1)(A), (B), and (C) of 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. The requested order would permit certain registered open-end investment companies to acquire shares of certain registered open-end investment companies, registered closed-end investment companies, business development companies, as defined in section 2(a)(48) of the Act, and unit investment trusts (collectively, “Underlying Funds”) that are within and outside the same group of investment companies as the acquiring investment companies, in excess of the limits in section 12(d)(1) of the Act.
USAA Mutual Funds Trust (the “Mutual Funds Trust”), a Delaware statutory trust that is registered under the Act as an open-end management investment company with multiple series; USAA ETF Trust (the “ETF Trust”), a Delaware statutory trust that will be registered under the Act as an open-end management investment company with multiple series (together, the Mutual Funds Trust and the ETF Trust, the “Trusts,” and individually each a “Trust”); USAA Asset Management Company (“USAA AMC”), a Delaware corporation registered as an investment adviser under the Investment Advisers Act of 1940; and USAA Investment Management Company, a Delaware corporation registered as a broker-dealer under the Securities Exchange Act of 1934 (“Exchange Act”).
The application was filed on August 18, 2016 and amended on January 27, 2017.
An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing by writing to the Commission's Secretary and serving applicants with a copy of the request, personally or by mail. Hearing requests should be received by the Commission by 5:30 p.m. on March 6, 2017 and should be accompanied by proof of service on the applicants, in the form of an affidavit, or, for lawyers, a certificate of service. Pursuant to Rule 0-5 under the Act, hearing requests should state the nature of the writer's interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by writing to the Commission's Secretary.
Secretary, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. Applicants: 9800 Fredericksburg Road, San Antonio, Texas 78288-0227.
Jill Ehrlich, Senior Counsel, at (202) 551-6819 or David J. Marcinkus, 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. Applicants request an order to permit (a) a Fund
2. Applicants agree that any order granting the requested relief will be subject to the terms and conditions stated in the application. Such terms and conditions are designed to, among other things, help prevent any potential (i) undue influence over an Underlying Fund that is not in the same “group of investment companies” as the Fund of Funds through control or voting power, or in connection with certain services, transactions, and underwritings, (ii) excessive layering of fees, and (iii) overly complex fund structures, which are the concerns underlying the limits in sections 12(d)(1)(A), (B), and (C) of the Act.
3. 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. Section 17(b) of the Act authorizes the Commission to grant an order permitting a transaction otherwise prohibited by section 17(a) if it finds that (a) the terms of the proposed transaction are fair and reasonable and do not involve overreaching on the part of any person concerned; (b) the proposed transaction is consistent with the policies of each registered
For the Commission, by the Division of Investment Management, pursuant to delegated authority.
On December 14, 2016, Financial Industry Regulatory Authority, Inc. (“FINRA”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
FINRA is proposing to amend FINRA Rules 2341 (Investment Company Securities), 11140 (Transactions in Securities “Ex-Dividend,” “Ex-Rights” or “Ex-Warrants”), 11150 (Transactions “Ex-Interest” in Bonds Which Are Dealt in “Flat”), 11210 (Sent by Each Party), 11320 (Dates of Delivery), 11620 (Computation of Interest), 11810 (Buy-In Procedures and Requirements), and 11860 (COD Orders), to conform to the Commission's proposed amendment to Rule 15c6-1(a) under the Act that would shorten the standard settlement cycle for most broker-dealer transactions from T+3 to T+2.
FINRA Rule 2341(m) requires members, including underwriters, that engage in direct retail transactions for investment company shares to transmit payments received from customers for the purchase of investment company shares to the payee by the end of the third business day after receipt of a customer's order to purchase the shares, or by the end of one business day after receipt of a customer's payment for the shares, whichever is later. FINRA is proposing to amend Rule 2341(m) to change the three-business day transmittal requirement to two business days, while retaining the one-business day alternative.
FINRA Rule 11140(b)(1) concerns the determination of normal ex-dividend and ex-warrants dates for certain types of dividends and distributions. Currently, with respect to cash dividends or distributions, or stock dividends, and the issuance or distribution of warrants, which are less than 25% of the value of the subject security, if the definitive information is received sufficiently in advance of the record date, the date designated as the “ex-dividend date” is the second business day preceding the record date if the record date falls on a business day, or the third business day preceding the record date if the record date falls on a day designated by FINRA's UPC Committee as a non-delivery day. Under the proposal, the “ex-dividend date” would be the first business day preceding the record date if the record date falls on a business day, or the second business day preceding the record date if the record date falls on a day designated by FINRA's UPC Committee as a non-delivery date.
FINRA Rule 11150(a) concerns the determination of normal ex-interest dates for certain types of transactions. Currently, all transactions, except “cash” transactions, in bonds or similar evidences of indebtedness which are traded “flat” are “ex-interest” on the second business day preceding the record date if the record date falls on a business day, on the third business day preceding the record date if the record date falls on a day other than a business day, and on the third business day preceding the date on which an interest payment is to be made if no record date has been fixed. Under the proposal, these transactions would be “ex-interest” on the first business day preceding the record date if the record date falls on a business day, on the second business day preceding the record date if the record date falls on a day other than a business day, and on the second business day preceding the date on which an interest payment is to be made if no record date has been fixed.
FINRA Rules 11210(c) and (d) set forth “DK” procedures using “Don't Know Notices” and other forms of notices, respectively.
FINRA proposes similar changes to FINRA Rule 11210(d). FINRA Rule 11210(d) currently provides that, when a party to a transaction sends a comparison or confirmation of a trade, but does not receive a comparison or confirmation or a signed DK from the contra-member by the close of four business days following the date of the transaction, the party may use the procedures set forth in the rule. FINRA proposes to shorten the “four business days” time period to one business day. FINRA Rule 11210(d)(5) currently provides that if the confirming member does not receive a response in the form of a notice from the contra-member by the close of four business days after receipt of the confirming member's notice, such shall constitute a DK and the confirming member shall have no further liability. FINRA proposes to shorten the “four business days” time period to two business days.
FINRA Rule 11320 prescribes delivery dates for various types of transactions. FINRA Rule 11320(b) currently provides that in connection with a transaction “regular way,” delivery is made at the office of the purchaser on, but not before, the third business day following the date of the transaction. Under the proposal, delivery would be required to be made on, but not before, the second business day following the date of the transaction. FINRA Rule 11320(c) currently provides in part that, in connection with a transaction “seller's option,” delivery may be made by the seller on any business day after the third business day following the date of transaction and prior to the expiration of the option, provided the seller delivers at the office of the purchaser, on a business day preceding the day of delivery, written notice of intention to deliver. Under the proposal, delivery may be made by the seller on any business day after the second business day following the date of the transaction and prior to expiration of the option.
FINRA Rule 11620 governs the computation of interest. FINRA Rule 11620(a) currently provides in part that, in the settlement of contracts in interest-paying securities other than for “cash,” there shall be added to the dollar price interest at the rate specified in the security, which shall be computed up to but not including the third business day following the date of the transaction. Under the proposal, the interest would be computed up to but not including the second business day following the date of the transaction.
FINRA 11810(j)(1)(A) sets forth the circumstances under which a receiving member may deliver a Liability Notice to the delivering member as an alternative to the close-out procedures set forth in FINRA 11810(b)-(h). Currently, when the parties to a contract are not both participants in a registered clearing agency that has an automated service for notifying a failing party of the liability that will be attendant to a failure to deliver, the notice must be issued using written or comparable electronic media having immediate receipt capabilities “no later than one business day prior to the latest time and the date of the offer or other event” in order to obtain the protection provided by the rule. Under the proposal, the notice must be “sent as soon as practicable but not later than two hours prior to the cutoff time set forth in the instructions on a specific offer or other event” in order to obtain the protection provided by the rule.
FINRA Rule 11860(a) concerns various procedures regarding collect on delivery (“COD”) or payment on delivery orders. FINRA is proposing to amend Rule 11860(a)(4)(A) to provide that the time period for a customer buying COD to furnish instructions to the agent will be no later than the close of business on the first business day after the date of execution of the trade, rather than the close of business on the second business day.
FINRA represents that it will announce the effective date of the proposed rule change in an Equity Regulatory Alert, which date would correspond with the industry-led transition to a T+2 standard settlement, and the effective date of the Commission's proposed amendment to Rule 15c6-1(a) under the Act.
After careful review of the proposed rule change and the comments, the Commission finds that the proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities association.
The Commission notes that the proposal would amend FINRA rules to conform to the amendment that the Commission has proposed to Rule 15c6-1(a) under the Act
For the reasons noted above, the Commission finds that the proposal is consistent with the requirements of the Act and would foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, remove impediments to and perfect the mechanism of a free and open market and a national market system, and protect investors and the public interest.
On December 9, 2016, the International Securities Exchange, LLC (“ISE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
On June 21, 2016, the Commission approved a proposed rule change relating to a corporate transaction in which Nasdaq, Inc. would become the ultimate parent of ISE, ISE Gemini, LLC (“ISE Gemini”), and ISE Mercury, LLC (“ISE Mercury” and, together with ISE and ISE Gemini, the “ISE Exchanges”).
The Exchange has now proposed a rule change to amend its rules relating to order routing, cancellation of orders, and handling of error positions, and to permit NES to become a Member of the Exchange to perform certain routing and other functions. ISE's proposed rules are similar to rules of Phlx,
After careful review, the Commission finds, as discussed in more detail below, that the proposed rule change, as modified by Amendment No. 1, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.
As noted above, ISE proposed that NES be permitted to become a Member of the Exchange to perform certain routing and other functions, as described in more detail below.
In the past, the Commission has expressed concern that the affiliation of an exchange with one of its members raises potential conflicts of interest and the potential for unfair competitive advantage.
ISE has proposed to establish NES as the Exchange's exclusive order router.
Pursuant to the proposal, NES will serve as the routing facility of the Exchange (“Routing Facility). The sole use of the Routing Facility by the system will be to route orders in options listed and open for trading on the system to away markets either directly or through one or more third-party unaffiliated routing broker-dealers pursuant to Exchange rules on behalf of the Exchange. The Routing Facility will be subject to regulation as a facility of the Exchange, including the requirement to file proposed rule changes under Section 19 of the Act, as amended.
NES will be a member of an SRO unaffiliated with ISE that is its designated examining authority.
The Exchange will establish and maintain procedures and internal controls reasonably designed to adequately restrict the flow of confidential and proprietary information between the Exchange and the Routing Facility, and any other entity, including any affiliate of the Routing Facility; or, where there is a routing broker, the Exchange, the Routing Facility and any routing broker, and any other entity, including any affiliate of the routing broker.
The Exchange will determine the logic that provides when, how, and where orders are routed to other exchanges. Except as provided, the routing broker(s) will not be able to change the terms of an order or the routing instructions, nor will the routing broker have any discretion about where to route an order.
In addition to the Exchange rules regarding routing away to trading centers, NES will, pursuant to Rule 15c3-5 under the Act, implement certain tests designed to mitigate risks associated with providing the Exchange's Members with access to such away trading centers. Pursuant to the policies and procedures developed by NES to comply with Rule 15c3-5, if an order or series of orders are deemed to be violative of applicable pre-trade requirements of Rule 15c3-5, the order will be rejected prior to routing and/or NES will seek to cancel any orders that had been routed.
ISE also has proposed to make conforming changes to remove the term Linkage Handler from its rules and replace it with references to NES or third-party unaffiliated routing broker-dealers used by NES, as appropriate.
As a facility of ISE (as defined in Section 3(a)(2)
As discussed above, NES is currently a member of each Nasdaq Exchange. NES also operates as a facility of each of Nasdaq, Phlx, and BX that provides outbound options routing to other market centers, subject to certain conditions.
Recognizing that the Commission previously expressed concern that the affiliation of an exchange with one of its members raises the potential for unfair competitive advantage and potential conflicts of interest between an exchange's self-regulatory obligations and its commercial interest, ISE proposed the following limitations and conditions to permit the Exchange to accept inbound options orders that NES routes in its capacity as a facility of the Affiliated Exchanges:
• First, ISE and the Financial Industry Regulatory Authority (“FINRA”) will maintain a Regulatory Services Agreement (“RSA”), as well as an agreement pursuant to Rule 17d-2 under the Act (“17d-2 Agreement”).
• Second, FINRA will monitor NES for compliance with the Exchange's trading rules, and will collect and maintain certain related information.
• Third, FINRA will provide a report to the Exchange's chief regulatory officer (“CRO”), on a quarterly basis, that: (i) Quantifies all alerts (of which the Exchange or FINRA is aware) that identify NES as a participant that has potentially violated Commission or Exchange rules, and (ii) lists all investigations that identify NES as a participant that has potentially violated Commission or Exchange rules.
• Fourth, ISE proposed to amend ISE Rule 312 to add ISE Rule 312(c), which will provide that Nasdaq, Inc., as the holding company owning both the Exchange and NES, shall establish and maintain procedures and internal controls reasonably designed to ensure that NES does not develop or implement changes to its system, based on non-public information obtained regarding planned changes to the Exchange's systems as a result of its affiliation with the Exchange, until such information is available generally to similarly situated Exchange Members, in connection with the provision of inbound routing to the Exchange.
The Commission finds that ISE's proposed rule change to permit the Exchange to accept inbound options orders routed by NES from its Affiliated Exchanges, including the related change to ISE Rule 312, are consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. Specifically, the Commission finds that the proposed rule change is consistent with Section 6(b)(1) of the Act
In the past, the Commission has expressed concern that the affiliation of an exchange with one of its members raises potential conflicts of interest and the potential for unfair competitive advantage.
The Commission believes that these limitations and conditions will mitigate its concerns about potential conflicts of interest and unfair competitive advantage. In particular, the Commission believes that a non-affiliated SRO's oversight of NES,
ISE has proposed to amend its rules concerning the cancellation of orders
As described above, ISE will no longer utilize Linkage Handlers and will instead utilize NES as its Routing Facility to route orders to away markets either directly or through one or more third-party unaffiliated routing broker-dealers on behalf of the Exchange.
ISE has proposed to provide the Exchange or NES with general authority to cancel orders to maintain fair and orderly markets when a technical or systems issue occurs at the Exchange, NES, or a routing destination.
Pursuant to the proposal, NES will be required to maintain an error account for the purpose of addressing error positions that result from a technical or systems issue at the Exchange, NES, a routing destination, or an unaffiliated third-party routing broker.
If error positions result in connection with the Exchange's use of a third-party routing broker for outbound routing and those positions are delivered to NES through the clearance and settlement process, NES would be permitted to resolve those positions. If, however, such positions were not delivered to NES through the clearance and settlement process, then the third-party routing broker would resolve the error positions itself, and NES would not be permitted to accept the positions.
In connection with a particular technical or systems issue, the Exchange or NES will be required to either (i) assign all resulting error positions to Members or (ii) have all resulting error positions liquidated. Any determination to assign or liquidate error positions, as well as any resulting assignments, will be made in a nondiscriminatory fashion.
(i) Determines that it has accurate and sufficient information (including valid clearing information) to assign the positions to all of the Members affected by that technical or systems issue;
(ii) Determines that it has sufficient time pursuant to normal clearance and settlement deadlines to evaluate the information necessary to assign the positions to all of the Members affected by that technical or systems issue; and
(iii) Has not determined to cancel all orders affected by that technical or systems issue in accordance with proposed ISE Rule 1904(a).
If the Exchange or NES is unable to assign all error positions resulting from a particular technical or systems issue to all of the affected Members, or if the Exchange or NES determines to cancel all orders affected by the technical or systems issue, then NES will be required to liquidate the error positions as soon as practicable.
The Commission recognizes that technical or systems issues may occur, and believes that proposed ISE Rule 1904, in allowing the Exchange or NES to cancel orders affected by technical or systems issues, should provide a reasonably efficient means for the Exchange to handle such orders, and appears reasonably designed to permit the Exchange to maintain fair and orderly markets.
In addition, the Commission notes that it has previously expressed concern about the potential for unfair competition and conflicts of interest between an exchange's self-regulatory obligations and its commercial interest when the exchange is affiliated with one of its members.
ISE stated that it intends to begin implementation of the proposed rule change in the second quarter of 2017, in tandem with a technology migration to Nasdaq INET architecture, and that the migration will be on a symbol-by-symbol basis. ISE has represented that it will issue an alert to Members to announce the relevant migration date for specific symbols.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501
Section 17(a) of the Investment Company Act of 1940 (the “Act”), generally prohibits affiliated persons of a registered investment company (“fund”) from borrowing money or other property from, or selling or buying securities or other property to or from, the fund or any company that the fund controls.
To qualify for the exemptions in rule 17a-10, the subadvisory relationship must be the sole reason why section 17(a) prohibits the transaction. In addition, the advisory contracts of the subadviser entering into the transaction, and any subadviser that is advising the purchasing portion of the fund, must prohibit the subadvisers from consulting with each other concerning securities transactions of the fund, and limit their responsibility to providing advice with respect to discrete portions of the fund's portfolio.
To qualify for the exemptions in rule 17a-10, the subadvisory relationship must be the sole reason why section 17(a) prohibits the transaction. In addition, the advisory contracts of the subadviser entering into the transaction, and any subadviser that is advising the purchasing portion of the fund, must prohibit the subadvisers from consulting with each other concerning securities transactions of the fund, and limit their responsibility to providing advice with respect to discrete portions of the fund's portfolio. This requirement regarding the prohibitions and limitations in advisory contracts of subadvisors relying on the rule constitutes a collection of information under the Paperwork Reduction Act of 1995 (“PRA”).
The staff assumes that all existing funds with subadvisory contracts amended those contracts to comply with the adoption of rule 17a-10 in 2003, which conditioned certain exemptions upon these contractual alterations, and therefore there is no continuing burden for those funds.
Based on an analysis of fund filings, the staff estimates that approximately 319 funds enter into new subadvisory agreements each year.
The estimate of average burden hours is made solely for the purposes of the Paperwork Reduction Act. The estimate is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules. Complying with this collection of information requirement is necessary to obtain the benefit of relying on rule 17a-10. Responses will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number.
The public may view the background documentation for this information collection at the following Web site,
On December 9, 2016, NASDAQ BX, Inc. (“BX”), The NASDAQ Stock Market LLC (“Nasdaq”), and NASDAQ PHLX LLC (“Phlx” and, each of BX, Nasdaq, and Phlx a “NASDAQ Exchange” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
Phlx Rule 985(b)(i)(A) prohibits Phlx or any entity with which it is affiliated from, directly or indirectly, acquiring or maintaining an ownership interest in, or engaging in a business venture with, an Exchange member or an affiliate of an Exchange member in the absence of an effective filing under Section 19(b) of the Act.
Pursuant to BX Rule 2140(a): “(1) [BX] or any entity with which it is affiliated shall not, directly or indirectly, acquire or maintain an ownership interest in, or engage in a business venture with, [a BX] member or an affiliate of [a BX] member in the absence of an effective filing under Section 19(b) of the Act; and (2) [a BX] member shall not be or become an affiliate of [BX], or an affiliate of an entity affiliated with [BX], in the absence of an effective filing under Section 19(b) of the Act.”
After careful review, the Commission finds that the proposed rule changes, each as modified by Amendment No. 1,
For each of the ISE Exchanges, NES will operate as a facility that provides outbound options routing from the respective ISE Exchange to other market centers, subject to certain conditions.
Recognizing that the Commission has expressed concern regarding the potential for conflicts of interest in instances where a member firm is affiliated with an exchange to which it is routing orders, each NASDAQ Exchange previously implemented limitations and conditions on its affiliation with NES to permit the Exchange to accept inbound options orders that NES routes in its capacity as a facility of the other NASDAQ Exchanges.
• First, each NASDAQ Exchange and the Financial Industry Regulatory Authority (“FINRA”) will maintain a Regulatory Services Agreement (“RSA”), as well as an agreement pursuant to Rule 17d-2 under the Act (“17d-2 Agreement”).
• Second, FINRA will monitor NES for compliance with each of the Exchange's trading rules, and will collect and maintain certain related information.
• Third, FINRA will provide a report to each Exchange's chief regulatory officer (“CRO”), on a quarterly basis, that: (i) Quantifies all alerts (of which the Exchange or FINRA is aware) that identify NES as a participant that has potentially violated Commission, or the respective Exchange's, rules, and (ii) lists all investigations that identify NES as a participant that has potentially violated Commission, or the respective Exchange's, rules.
• Fourth, Nasdaq, BX, and Phlx each have in place a rule that requires Nasdaq, Inc., as the holding company owning both the Exchange and NES, to establish and maintain procedures and internal controls reasonably designed to ensure that NES does not develop or implement changes to its system, based on non-public information obtained regarding planned changes to the Exchange's systems as a result of its affiliation with the Exchange, until such information is available generally to similarly situated Exchange members, in connection with the provision of inbound routing to the Exchange.
Each of the NASDAQ Exchanges has stated that it has met all of the above-listed conditions in connection with NES routing in its capacity as a facility of the other NASDAQ Exchanges, and will comply with these conditions in connection with NES routing in its capacity as a facility of the ISE Exchanges. By meeting such conditions, each NASDAQ Exchange believes that it has set up mechanisms that protect the independence of the Exchange's regulatory responsibility with respect to NES, and has demonstrated that NES cannot use any information advantage it may have because of its affiliation with each NASDAQ Exchange.
In the past, the Commission has expressed concern that the affiliation of an exchange with one of its members raises potential conflicts of interest and the potential for unfair competitive advantage.
The Commission believes that these limitations and conditions will mitigate its concerns about potential conflicts of interest and unfair competitive advantage. In particular, the Commission believes that a non-affiliated SRO's oversight of NES,
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
The Exchange proposes to amend its Fees Schedule. The text of the proposed rule change is also available on the Exchange's Web site (
In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
The Exchange proposes to amend its Marketing Fee program, effective February 1, 2017. By way of background the Marketing Fee is assessed on certain transactions of Market-Makers resulting from (i) customer orders from payment accepting firms, or (ii) customer orders that have designated a “Preferred Market-Maker” (“PMM”) under CBOE Rule 8.13. The funds collected via this Marketing Fee are then put into pools controlled by DPMs and PMMs. The DPM or PMM controlling a certain pool of funds can then determine the order flow provider(s) to which the funds should be directed in order to encourage such order flow provider(s) to send orders to the Exchange. On each order, an order flow provider can designate the Preferred Market-Maker to which the funds generated from the order sent by the order flow provider should be allocated (a “Preferred order”).
The Exchange proposes to expand the Marketing Fee program to Lead Market-Makers (“LMMs”). Under the proposed rule change, LMMs would be given access to the Marketing Fee funds generated from those orders on which the LMM was preferred (
The Exchange also proposes to make certain clarifications to Footnote 6 of the Fees Schedule, which governs the Marketing Fee program. The Exchange notes that it inadvertently only references Market-Makers and DPMs as being subject to the fee, even though LMMs, like DPMs, are also Market-Makers and the fee has therefore always applied (
The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
The Exchange believes expanding the Marketing Fee program to LMMs is reasonable, equitable and not unfairly discriminatory because it will allow LMMs to amass a pool of funds with which to use to incent order flow providers to send order flow to the Exchange. This increased order flow would benefit all market participants on the Exchange. Additionally, the Exchange believes it is equitable and not unfairly discriminatory to expand the Marketing Fee program to LMMs because, like PMMs under CBOE Rule 8.13, LMMs have increased obligations that other market participants do not such an heightened quoting standards.
The Exchange also believes that clarifying that the reference to “Market-Makers” in Footnote 6 actually includes both DPMs and LMMs maintains clarity in the Fees Schedule and avoids potential confusion. Similarly, the Exchange believes that clarifying that customer orders may also designate a DPM (who would then have access to the Marketing Fees generated from that Preferred order) alleviates potential confusion. Lastly, the Exchange believes introducing the term “Preferenced Market-Maker” to denote any DPM, PMM or LMM that is designated on a Preferred (or as proposed, “Preferenced”) order alleviates potential confusion and makes the Fees Schedule easier to read. The alleviation of confusion removes impediments to and perfects the mechanism of a free and open market and a national market system, and, in general, to protects investors and the public interest.
The Exchange does not believe that the proposed rule changes will impose any burden on competition that are not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because, while the proposed change allows LMMs to also amass a pool of funds with which to use to incent order flow providers to send order flow to the Exchange, LMMs, like PMMs, have heightened quoting standards. Moreover, the proposed change provides LMMs an opportunity to incent order flow providers to send order flow to the Exchange, which benefits all market participants.
The Exchange does not believe that the proposed rule change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed change only affects trading on CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants.
The Exchange neither solicited nor received comments on the proposed rule change.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)
The principal purpose of the proposed rule change is to modify the ICE Clear Europe Clearing Rules (“Clearing Rules”) to clarify the application of certain default provisions in the event of a resolution proceeding with respect to the Clearing House or a Clearing Member.
In its filing with the Commission, ICE Clear Europe 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. ICE Clear Europe has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements.
The purpose of the rule amendments is to modify the ICE Clear Europe Clearing Rules to clarify the application of certain default-related provisions in the context of resolution proceedings with respect to the Clearing House or a Clearing Member. Such proceedings can arise under so-called special resolution regimes that may apply under applicable law to the Clearing House or a Clearing Member in the event of either's failure or insolvency, as an alternative to traditional bankruptcy or insolvency proceedings in the relevant jurisdiction. Such regimes include the UK Banking Act 2009 and the EU Bank Recovery and Resolution Directive (the “BRRD”).
In Rule 101, ICE Clear Europe proposes amendments to the definition of “Insolvency” and addition of new defined terms “Resolution Step” and “Unprotected Resolution Step.” These amendments are designed to distinguish between insolvency and resolution proceedings, and reflect and incorporate certain limitations on the termination of Contracts and exercise of default remedies that apply under the terms of an applicable special resolution regime. (Under the current Rules, an Insolvency in turn constitutes an Event of Default that permits the exercise of the default rights and remedies specified in the Rules.)
The definition of Insolvency has been amended to exclude certain resolution proceedings. Specifically, the amendment removes the existing provision that a Governmental Authority exercising one or more of its stabilization powers under the UK Banking Act 2009 will constitute an Insolvency. In addition, the appointment of an Insolvency Practitioner, which normally is an Insolvency, will not constitute an Insolvency if it is made in connection with a Resolution Step that is not an Unprotected Resolution Step, as defined below. A Resolution Step involving a Governmental Authority making an order to transfer a person's securities, property, rights or liabilities (which may be a feature of a resolution proceeding) will also not constitute an Insolvency.
A new definition of “Resolution Step” has been added, which can apply to persons other than the Clearing House. A Resolution Step means a Government Authority exercising stabilization powers under the UK Banking Act 2009 or certain resolution authorities under national legislation implementing the BRRD. A resolution proceeding of this type involving the Clearing House itself will not constitute a Resolution Step. The amendments do not address other types of resolution proceedings (including resolution proceedings under laws other than the UK Banking Act 2009 or national laws implementing the BRRD).
A new definition of “Unprotected Resolution Step” has been added, which means a Resolution Step with respect to a person (other than the Clearing House) in which either (i) the substantive obligations of the person to the Clearing House under the Rules are not being performed or (ii) the Clearing House is not prohibited or otherwise prevented from declaring an event of default or exercising termination and close out rights under the Rules with respect to that person.
In Section 901(a)(vii), the definition of Event of Default has been modified to include an Unprotected Resolution Step with respect to a Clearing Member or any of its Group Companies.
As a result of these changes, a resolution proceeding under the UK Banking Act or national laws implementing the BRRD, with respect to either the Clearing House itself or a Clearing Member, will not constitute an Insolvency. Such a resolution proceeding that involves a Clearing Member will constitute a Resolution Step, but a Resolution Step will not itself constitute an Event of Default under the Rules, unless it is an Unprotected Resolution Step. In light of the definition of Unprotected Resolution Step, this approach thus takes into account limitations imposed by the relevant resolution regime on the declaration of a default and exercise of default remedies in the context of a resolution proceeding.
A variety of conforming and other clarifying changes have been made throughout the Rules. In the definition of “Insolvency Practitioner” in Rule 101, a reference to a temporary administrator has been added. The definition of “Applicable Law” has been revised to use the defined term “Insolvency.” Rule 201(a)(xxi) has been revised to provide that in order to become or remain a Clearing Member, a person must not be subject to an Unprotected Resolution Step (in addition to the existing provision that a person must not be subject to an Insolvency). In Rule 202(b), reference to various types of insolvency laws have been replaced using the term Insolvency and Applicable Laws. Rule 201(a)(xxxv) has been revised to refer to applicable laws involving Resolution Steps as well as Insolvency. Similarly, Rule 204(a)(viii) requires a Clearing Member to notify the Clearing House of any Resolution Step involving it or its Group Companies. In Rule 405(a)(ii) and (f), references to various types of insolvency proceedings have been replaced with the defined term Insolvency.
Rule 903(d)(i), which addresses certain automatic termination events, has been revised to include a reference to an Unprotected Resolution Step, in addition to the current reference to Insolvency. In Rule 904(m), which requires the Clearing House to commit to trigger the procedures for transfer of customer positions following a Clearing Member default, a requirement has been added that the relevant customer is not subject to an Unprotected Resolution Step (in parallel to the existing requirement that the customer not be subject to an Insolvency). Similar changes are made in Rule 904(p) with respect to Sponsored Principals and Rule 904(u) with respect to Customers using Individually Segregated Margin-flow Co-mingled Accounts.
In Rule 1901(b)(x), a requirement that Sponsored Principals not be subject to an Unprotected Resolution Step has been added (similar to the requirement discussed above for Clearing Members in revised Rule 201(a)). Rule 1901(b)(xiv) has also been revised to refer to the defined term Insolvency. In addition, in each of the forms of Standard Terms Annex, paragraph 10 has been revised to use the defined term Insolvency in place of certain references to various types of insolvency proceedings.
ICE Clear Europe believes that the changes described herein are consistent with the requirements of Section 17A of the Act
ICE Clear Europe does not believe the proposed changes to the rules would have any impact, or impose any burden, on competition not necessary or appropriate in furtherance of the purpose of the Act. ICE Clear Europe is adopting amendments to the Clearing Rules intended to conform the Rules to the requirements of certain special resolution regimes. ICE Clear Europe does not believe that these changes will impose any significant additional costs on Clearing Members or other market participants, and further believes that any incremental costs that result reflect the limitations imposed on the exercise of remedies as a matter of law under certain special resolution regimes. ICE Clear Europe does not believe the amendments will adversely affect access to clearing by Clearing Members or their customers or otherwise adversely affect Clearing Members or market participants. In this regard, the changes will apply to all Clearing Members that may be subject to the covered types of resolution proceedings, and accordingly are not expected to affect competition among Clearing Members or in the market for clearing services generally.
ICE Clear Europe published a prior version of the proposed amendments for consultation with its Clearing Members. In response to that consultation, two Clearing Members inquired about the regulatory process surrounding the proposed changes. In addition, one Clearing Member suggested that certain additional clarifications be made to limit the application of other aspects of the Insolvency definition. In the context of the current version of the proposed amendments, which has been revised from the original consultation, ICE Clear Europe does not believe that such additional clarifications are necessary or appropriate, and has determined not to make any such clarifications. ICE Clear Europe will notify the Commission of any written comments with respect to the proposed rule change received by ICE Clear Europe.
Within 45 days of the date of publication of this notice in the
(A) By order approve or disapprove the proposed rule change or
(B) institute proceedings to determine whether the proposed rule change should be disapproved.
Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-ICEEU-2017-002 and should be submitted
Notice is hereby given of the following determinations: Pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), E.O. 12047 of March 27, 1978, the Foreign Affairs Reform and Restructuring Act of 1998 (112 Stat. 2681,
For further information, including an object list, 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:
Notice of request for public comment.
The Department of State is seeking Office of Management and Budget (OMB) approval for the information collection described below. 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 60 days for public comment preceding submission of the collection to OMB.
The Department will accept comments from the public up to
You may submit comments by any of the following methods:
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You must include the DS form number (if applicable), information collection title, and the OMB control number in any correspondence.
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 Monica Greco, PRM/Office of Admissions, 2025 E Street NW., Washington DC, 20522, who may be reached on 202-453-9251 or 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.
Please note that comments submitted in response to this Notice are public record. Before including any detailed personal information, you should be aware that your comments as submitted, including your personal information, will be available for public review.
The TVA Board of Directors will hold a public meeting on February 16, 2017, at the Gatlinburg Convention Center, 234 Historic Nature Trail, Gatlinburg, Tennessee. The public may comment on any agenda item or subject at a
Open.
Please call TVA Media Relations at (865) 632-6000, Knoxville, Tennessee. People who plan to attend the meeting and have special needs should call (865) 632-6000. Anyone who wishes to comment on any of the agenda in writing may send their comments to: TVA Board of Directors, Board Agenda Comments, 400 West Summit Hill Drive, Knoxville, Tennessee 37902.
Internal Revenue Service (IRS), Treasury.
Notice of meeting.
An open meeting of the Taxpayer Advocacy Panel Joint Committee will be conducted. The Taxpayer Advocacy Panel is soliciting public comments, ideas, and suggestions on improving customer service at the Internal Revenue Service.
The meeting will be held Wednesday, March 29, 2017.
Kim Vinci at 1-888-912-1227 or 916-974-5086.
Notice is hereby given pursuant to Section 10(a)(2) of the Federal Advisory Committee Act, 5 U.S.C. App. (1988) that an open meeting of the Taxpayer Advocacy Panel Joint Committee will be held Wednesday, March 29, 2017, at 1:00 p.m. Eastern Time via teleconference. The public is invited to make oral comments or submit written statements for consideration. For more information please contact: Kim Vinci at 1-888-912-1227 or 916-974-5086, TAP Office, 4330 Watt Ave., Sacramento, CA 95821, or contact us at the Web site:
The agenda will include various committee issues for submission to the IRS and other TAP related topics. Public input is welcomed.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Forms 8857 and 8857(SP), Request for Innocent Spouse Relief.
Written comments should be received on or before April 17, 2017 to be assured of consideration.
Direct all written comments to Tuawana Pinkston, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224.
Requests for additional information or copies of the form and instructions should be directed to Martha R. Brinson, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224, or through the Internet at
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Internal Revenue Service (IRS), Treasury.
Notice and request for comments.
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995.
Written comments should be received on or before April 17, 2017 to be assured of consideration.
Direct all written comments to Tuawana Pinkston, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224, or at
Please send separate comments for each specific information collection listed below. You must reference the information collection's title, form number, reporting or record-keeping requirement number, and OMB number (if any) in your comment.
To obtain additional information, or copies of the information collection and instructions, or copies of any comments received, contact Elaine Christophe, at Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224, or through the Internet, at
The Department of the Treasury and the Internal Revenue Service, as part of their continuing effort to reduce paperwork and respondent burden, invite the general public and other Federal agencies to take this opportunity to comment on the proposed or continuing information collections listed below in this notice, as required by the Paperwork Reduction Act of 1995, (44 U.S.C. 3501
We invite comments on: (a) Whether the collection of information is necessary for the proper performance of the agency's functions, including whether the information has practical utility; (b) the accuracy of the agency's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including 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 the requested information.
Currently, the IRS is seeking comments concerning the following forms, and reporting and record-keeping requirements:
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The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
The Department of Veterans Affairs (VA) gives notice under Public Law 92-463 (Federal Advisory Committee Act) that a meeting of the Advisory Committee on the Readjustment of Veterans will be held Wednesday and Thursday, March 29 and 30, 2017. The meeting on both days will be conducted at the Readjustment Counseling Service (RCS) Headquarters Offices, located at 1717 H Street NW., Washington, DC 20006, in Conference Room 430C. The agenda for these two days will begin at 8:00 a.m. and end at 4:30 p.m. The meeting on both days is open to the public.
The purpose of the Committee is to review the post-war readjustment needs of combat-theater Veterans and to evaluate the availability, effectiveness and coordination of VA programs required to meet Veterans' readjustment service needs.
The agenda for March 29 will include briefings from the Chief Readjustment Counseling Officer on the current activities of the Readjustment Counseling Service (RCS) Vet Centers to include the full scope of outreach and readjustment counseling services provided to combat-theater Veterans, Service members and their families. The briefing will also focus on the status of the reorganization of RCS and its Vet Centers system-wide in conjunction with the parallel transformation of the Veterans Health Administration (VHA) Veterans Integrated Service Network (VISN) transformation.
On March 30, the Committee members will receive briefings from VHA's mental health leadership on the mental health service needs of combat-theater Veterans and on the coordination of Vet Center services with VHA mental health services to better service the combat-theater Veteran population.
The agenda for both days will also include time for Committee strategic planning primarily focused on its annual operations plans for 2017/18, its 2017 field meeting agenda, and the target perspectives for its 19th annual report.
No time will be allocated at this meeting for receiving oral presentations from the public. However, members of the public may direct written questions or submit prepared statements for review by the Committee before the meeting to Mr. Charles M. Flora, M.S.W., Designated Federal Officer, Readjustment Counseling Service, Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420. Because the meeting will be in a Government building, please provide valid photo identification for check-in. Please allow 15 minutes before the meeting for the check-in process. If you plan to attend or have questions concerning the meeting, please contact Mr. Flora at (202) 461-6525 or by email at
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 |