[Federal Register Volume 80, Number 7 (Monday, January 12, 2015)]
[Notices]
[Pages 1567-1570]
[FR Doc No: 2015-00222]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 74006; File No. SR-NYSE-2014-73]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Rule 123C To Specify That Exchange Systems May Close One or
More Securities Electronically

January 6, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that December 23, 2014, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 123C to specify that Exchange
systems may close one or more securities electronically if a Designated
Market Maker (``DMM'') registered in a security or securities cannot
facilitate the close of trading as required by Exchange rules. The text
of the proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, on the
Commission's Web site at www.sec.gov, and at the Commission's Public
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    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.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 123C to specify that Exchange
systems may close one or more securities electronically if a Designated
Market Maker registered in a security or securities cannot facilitate
the close of trading as required by Exchange rules.
    Rule 123C specifies the procedures to be followed at the close of
trading on the Exchange, including procedures for the execution of
closing interest,\4\ which interest is guaranteed to participate in the
closing transaction,\5\ and the determination of the closing print(s)
to be reported to the Consolidated Tape for each security.
Supplementary Material .10 to Rule 123C (``Rule 123C.10'') currently
provides that closings may be effectuated manually or electronically.
However, the current rule contemplates that closings would be
facilitated by the DMM, as provided for in Rule 104(a)(3).
---------------------------------------------------------------------------

    \4\ See Rule 123C(7) (Order of Execution at the Close). Rule
123C(7)(a) specifies the type of interest that must be executed in
whole or in part in the closing transaction, and the allocation
order of such interest.
    \5\ See Rule 123C(8).
---------------------------------------------------------------------------

    The Exchange proposes to amend Rule 123C.10 to provide that, if a
DMM cannot facilitate the close of trading for one or more securities
for which the DMM is registered, the Exchange would close those
securities electronically.\6\ Unlike DMMs, who have the obligation to
trade for their own account to supply liquidity as needed to facilitate
the close,\7\ the Exchange would not supply any liquidity when
effectuating an electronic close. Without the addition of liquidity to
offset an imbalance, the closing price may not be reasonably related to
the last sale. To avoid closing at a price too far away from the last
sale, the Exchange proposes to establish numerical guidelines to
provide parameters regarding the price a security may close when the
Exchange closes such security.
---------------------------------------------------------------------------

    \6\ The proposed amendment contemplates that a DMM's inability
to close securities either manually or electronically would be
related to business continuity disruptions such as the physical
closing of the Exchange Trading Floor or equipment and connectivity
breakdowns that prevent the DMM from closing a security either
manually or electronically. When a DMM is unable to close securities
manually or electronically, the DMM's affirmative obligations under
Rule 104 would not apply.
    \7\ See Rule 104(a)(3) and 104(f)(iii).
---------------------------------------------------------------------------

    As proposed, the closing price of a security closed by the Exchange
would not be greater than or less than the last sale price on the
Exchange (the ``Reference Price'') by an amount within the Closing
Numerical Guidelines set forth below:

------------------------------------------------------------------------
                                                              Closing
                                                             numerical
                                                             guideline
                                                          (closing price
                     Reference price                       % difference
                                                             from the
                                                             reference
                                                              price)
------------------------------------------------------------------------
Greater than $0.00 up to and including $25.00...........              10
Greater than $25.00 up to and including $50.00..........               5
Greater than $50.00.....................................               3
------------------------------------------------------------------------

    The proposed numerical guidelines are the same as those currently
utilized in determining whether an execution qualifies as clearly
erroneous under Rule 128.\8\ The Exchange believes that using the same
guidelines when the Exchange closes a security electronically is
appropriate because it would reduce the potential for the closing price
on the Exchange to be considered erroneous.
---------------------------------------------------------------------------

    \8\ Rule 128 defines a clearly erroneous execution as an
execution with an obvious error in any term, such as price, number
of shares or other unit of trading, or identification of the
security. Under the numerical guidelines set forth in Rule 128, an
execution may be found to be clearly erroneous only if the price of
the transaction to buy is greater, or less in the case of a sale,
than the reference price by an amount that equals or exceeds the
numerical guidelines for a particular transaction category. In
determining whether an execution is clearly erroneous, the Exchange
generally utilizes the consolidated last sale as the Reference
Price.
---------------------------------------------------------------------------

    Further, the Exchange proposes to amend Rule 123C.10 to specify the
eligible interest to be considered in an Exchange electronic close.
Specifically, as proposed, no manually-entered Floor interest would
participate in an Exchange electronic close, and if previously entered,
would be ignored.\9\ Further, in performing a close under the proposed
rule, the Exchange would consider all interest eligible to trade in the
close consistent with Rule 123C(7) \10\ and 123C(8)(a).\11\ Under no
circumstances, however, would the Exchange close a security if the
closing price would be greater than or less than the Reference Price by
an amount outside the Closing Numerical Guidelines. Accordingly,
interest specified in Rule 123C(7)(a) would not participate in a
closing trade if such interest would cause a closing price to be
outside the Closing Numerical Guidelines.
---------------------------------------------------------------------------

    \9\ Manually-entered Floor interest includes interest entered by
the DMM on behalf of a Floor broker and the DMM interest entered
manually. The Exchange notes that, under regular trading conditions,
if manually-entered Floor interest has been entered into Exchange
systems, Exchange systems will not permit a DMM to close a stock
electronically and the DMM would instead be required to close the
security manually. The Exchange proposes to make this explicit in
the text of Supplementary Material .10.
    \10\ Rule 123C(7)(a) sets forth the interest that must be
executed or cancelled as part of the closing transaction as well as
the order of execution. Rule 123C(7)(b) sets forth the interest that
may be used to offset a closing imbalance and the order of execution
(i.e., interest that is not guaranteed to participate in the closing
transaction).
    \11\ Rule 123C(8) governs printing of the closing transaction
where there is an order imbalance (Rule 123C(8)(a)) and where there
is no order imbalance (Rule 123C(8)(b)).
---------------------------------------------------------------------------

    The proposed rule would also specify that the provisions of Rule
123C(9)(a)(1) and 123C(9)(b) would be suspended if the Exchange closes
a security electronically. Rule 123C(9)(a)(1) permits the Exchange, on
a security-by-security basis, to temporarily suspend the hours of
operation under Rule 52 so that offsetting interest may be solicited
from both on-Floor and off-Floor participants and entered after 4:00
p.m. ET to reduce the size of the imbalance. Rule 123C(9)(b) specifies
that only the DMM may request the temporary suspensions available under
Rule 123C(9)(a). As proposed, if the Exchange closes a security
electronically, the assigned DMM would not have the authority to invoke
Rule 123C(9)(a)(1).
    Similarly, the proposed rule would specify that only the Exchange
would be able to invoke Rule 123C(9)(a)(2) if the Exchange closes a
security electronically. Rule 123C(9)(a)(2) permits temporary
suspensions of the prohibition on the cancellation or reduction of a
Market on Close (``MOC'')/Limit on Close (``LOC'') order after 3:58
p.m. where there is a legitimate error in such an order and execution
of the order would cause significant price dislocation at the close.
Only the assigned DMM can request relief under Rule 123C(9)(a)(2).
Under the proposed rule, in an electronic close by the Exchange, Rule
123C(9)(a)(2) would be in effect but the assigned DMM would not have
authority to temporarily suspend cancellation; only

the Exchange would be able to invoke a temporary suspension under the
rule.
    Because of the technology changes associated with the proposed rule
change, the Exchange proposes to announce the implementation date via
Trader Update.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\12\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\13\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, 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. The
Exchange believes that permitting the Exchange to automatically close
trading would remove impediments to and perfect the mechanism of a free
and open market and a national market system by ensuring an orderly
close if the registered DMM cannot manually or electronically
facilitate the close of trading as required by Exchange rules.
Similarly, the proposal promotes just and equitable principles of trade
and removes impediments to and perfects the mechanism of a free and
open market by providing customers and the investing public with the
certainty of a close in circumstances where business continuity
disruptions or other emergencies would prevent the assigned DMMs from
closing a security. For the same reasons, the proposal is also designed
to protect investors as well as the public interest.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed amendment to Rule 123C.10
to provide that closings effectuated by the Exchange would be within a
proposed numerical guideline would remove impediments to and perfect
the mechanism of a free and open market because having such guidelines
provides transparency regarding the range of potential prices that a
security may close in such scenario. The Exchange further believes that
the proposed numerical guidelines, which are based on existing
guidelines for clearly erroneous executions, would remove impediments
to and perfect the mechanism of a fair and orderly market because in
the absence of a DMM supplying liquidity, the proposed guidelines would
reduce the possibility for closing prices to not [sic] be executed at
potentially erroneous prices, thereby protecting investors and the
public. Similarly, the Exchange believes that excluding interest
eligible for the close that would cause an execution to occur outside
the proposed numerical guidelines, even if such interest would
otherwise be required to be included in a close effectuated by a DMM,
and permitting the Exchange to cancel or reduce an MOC/LOC order after
3:58 p.m. where there is a legitimate error and execution of the order
would cause significant price dislocation at the close, would remove
impediments to and perfect the mechanism of a fair and orderly market
because it would assure that the Exchange could effectuate the close
within the proposed specified price ranges. The proposed rule therefore
promotes just and equitable principles of trade because it provides
transparency to entering firms of whether interest would be eligible to
participate in a closing transaction effectuated by the Exchange.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not intended to address competitive issues but rather enable the
Exchange to close trading where circumstances would prevent a DMM from
facilitating a close.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------

    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \18\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    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:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSE-2014-73 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2014-73. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the

proposed rule change between the Commission and any person, other than
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. 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-NYSE-2014-73 and should be
submitted on or before February 2, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-00222 Filed 1-9-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: October 22, 2008 (Volume 73, Number 205)]
[Rules and Regulations]
[Page 62876-62878]
[DOCID:fr22oc08-7]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2008-1084; Airspace Docket No. 08-ASO-17]

Establishment of Class E Airspace; Dallas, GA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Direct final rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: This action establishes Class E Airspace at Dallas, GA.
Airspace is needed to support new Area Navigation (RNAV) Global
Positioning System (GPS) Standard Instrument Approach Procedures
(SIAPs) that have been developed for Paulding County Airport. As a
result, controlled airspace extending upward from 700 feet Above Ground
Level (AGL) is needed to contain the SIAP and for Instrument Flight
Rule (IFR) operations at Paulding County Airport. The operating status
of the airport will change from Visual flight Rules (VFR) to include
IFR operations concurrent with the publication of the SIAP. This action
enhances the safety and airspace management of Paulding County Airport,
Dallas, GA.

DATES: Effective 0901 UTC, January 15, 2009. The Director of the
Federal Register approves this incorporation by reference action under
Title 1, Code of Federal Regulations, part 51, subject to the annual
revision of FAA Order 7400.9 and publication of conforming amendments.
Comments for inclusion in the Rules Docket must be received on or
before December 8, 2008.

ADDRESSES: Send comments on this rule to: U.S. Department of
Transportation, Docket Operations, West Building Ground Floor, Room
W12-140, 1200 New Jersey Ave., SE., Washington, DC 20590-0001;
Telephone: 1-800-647-5527; Fax:<PHONE_NUMBER>. You must identify the
Docket Number FAA-2008-1084; Airspace Docket No. 08-ASO-17, at the
beginning of your comments. You

may also submit and review received comments through the Internet at
http://www.regulations.gov.
    You may review the public docket containing the rule, any comments
received, and any final disposition in person in the Dockets Office
(see ADDRESSES section for address and phone number) between 9 a.m. and
5 p.m., Monday through Friday, except Federal Holidays. An informal
docket may also be examined during normal business hours at the office
of the Eastern Service Center, Federal Aviation Administration, Room
210, 1701 Columbia Avenue, College Park, Georgia 30337.

FOR FURTHER INFORMATION CONTACT: Melinda Giddens, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, P.O.
Box 20636, Atlanta, Georgia 30320; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

The Direct Final Rule Procedure

    The FAA anticipates that this regulation will not result in adverse
or negative comments, and, therefore, issues it as a direct final rule.
The FAA has determined that this rule only involves an established body
of technical regulations for which frequent and routine amendments are
necessary to keep them operationally current. Unless a written adverse
or negative comment or a written notice of intent to submit an adverse
or negative comment is received within the comment period, the
regulation will become effective on the date specified above. After the
close of the comment period, the FAA will publish a document in the
Federal Register indicating that no adverse or negative comments were
received and confirming the effective date. If the FAA receives, within
the comment period, an adverse or negative comment, or written notice
of intent to submit such a comment, a document withdrawing the direct
final rule will be published in the Federal Register, and a notice of
proposed rulemaking may be published with a new comment period.

Comments Invited

    Although this action is in the form of a direct final rule, and was
not preceded by a notice of proposed rulemaking, interested persons are
invited to comment on this rule by submitting such written data, views,
or arguments as they may desire. An electronic copy of this document
may be downloaded from and comments may be submitted and reviewed at
http://www.regulations.gov. Recently published rulemaking documents can
also be accessed through the FAA's Web page at http://www.faa.gov., or
the Federal Register's Web page at http://www.gpoaccess.gov/fr/
index.html. Communications should identify both docket numbers and be
submitted in triplicate to the address specified under the caption
ADDRESSES above or through the Web site. All communications received on
or before the closing date for comments will be considered, and this
rule may be amended or withdrawn in light of the comments received.
    Comments are specifically invited on the overall regulatory,
economic, environmental, and energy aspects of the rule that might
suggest a need to modify the rule. Factual information that supports
the commenter's idea and suggestions is extremely helpful in evaluating
the effectiveness of this action and determining whether additional
rulemaking action would be needed. All comments submitted will be
available, both before and after the closing date for comments, in the
Rules Docket for examination by interested persons. Those wishing the
FAA to acknowledge receipt of their comments submitted in response to
this rule must submit a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2008-1084;
Airspace Docket No. 08-ASO-17.'' The postcard will be date stamped and
returned to the commenter.

History

    The FAA is amending Title 14 Code of Federal Regulations (14 CFR)
part 71 by establishing Class E airspace at Dallas, GA. This action
provides adequate Class E airspace for IFR operations at Paulding
County Airport. Designations for Class E airspace areas extending
upward from 700 feet or more above the surface of the earth are
published in FAA Order 7400.9R, dated August 15, 2007, and effective
September 15, 2007, which is incorporated by reference in 14 CFR part
71.1. The Class E designations listed in this document will be
published subsequently in the Order.

The Rule

    This amendment to Title 14, Code of Federal Regulations (14 CFR)
part 71 establishes Class E airspace at Dallas, GA, to provide
controlled airspace required to support the Area Navigation (RNAV)
Global Positioning System (GPS) Standard Instrument Approach Procedures
(SIAPs) that have been developed for Paulding County Airport.

Agency Findings

    The regulations adopted herein will not have substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among various levels of government. Therefore, it is
determined that this direct final rule does not have federalism
implications under Executive Order 13132.
    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore, (1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a Regulatory Evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, will not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part, A, Subpart I, section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it establishes Class E airspace at Dallas, GA.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (Air).

Adoption of the Amendment

0
In consideration of the foregoing, the Federal Aviation Administration
amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, CLASS B, CLASS C, CLASS D, AND
CLASS E AIRSPACE AREAS; AIRWAYS; ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.9R, Airspace Designations and Reporting
Points, signed August 15, 2007, effective September 15, 2007, is
amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

ASO GA E Dallas, GA [New]

Paulding County Airport, GA
    (Lat. 33[deg]54'43'' N., long. 84[deg]56'26'' W.)

    That airspace extending upward from 700 feet above the surface
of the Earth within a 6.5 mile radius of the Paulding County
Airport.
* * * * *

    Issued in College Park, Georgia, on October 8, 2008.
Barry A. Knight,
Acting Manager, Operations Support, Eastern Service Center, Air Traffic
Organization.
[FR Doc. E8-25054 Filed 10-21-08; 8:45 am]

BILLING CODE 4910-13-P


h. Adding ``(1997)e1'' after the identifier ``D3176-89'', by
replacing the identifier ``D5291-92'' with the identifier ``D5291-01'',
by replacing the identifier ``D1945-91'' with the identifier ``D1945-96
(2001)'', and by adding the number ``(2000)'' after the identifier
``D1946-90'', in section <IP_ADDRESS>;
    i. Revising section <IP_ADDRESS>;
    j. Revising the definition of ``Xi'' under Equation F-8
in section <IP_ADDRESS>;
    k. Adding the words ``either measured directly with a
CO2 monitor or calculated from wet-basis O2 data
using Equation F-14b,'' after the words ``wet basis,'' in the first
sentence of the Ch variable definition, and by removing the
second and third sentences from the Ch variable definition,
in section 4.1;
    l. Revising section 4.4.1;
    m. Removing the second and third sentences from the
%CO2w variable definition in 5.2.1;
    n. Removing the second and third sentences from the
%CO2d variable definition in 5.2.2;
    o. Removing the second and third sentences from the %O2w
variable definition, and by adding a new sentence at the end of the
paragraph, in section 5.2.3;
    p. Removing the second and third sentences from the %O2d
variable definition, in section 5.2.4;
    q. Replacing the identifier ``D240-87'' with the identifier ``D240-
00'', by replacing the identifier ``D2015-91'' with the identifier
``D5865-01ae1'', and by replacing the identifier ``D2382-88'' with the
identifier ``D4809-00'' in the GCVO variable definition, in
section 5.5.1;
    r. Replacing the identifier ``D1826-88'' with the identifier
``D1826-94 (1998)'', by replacing the identifier ``D3588-91'' with the
identifier ``D3588-98'', by adding the number ``(2001)'' after the
identifier ``D4891-89'', by replacing the numbers ``2172-86'' with the
numbers ``2172-1996'', and by replacing the numbers ``2261-90'' with
the numbers ``2261-1999'' in the GCVg variable definition,
in section 5.5.2;
    s. Replacing each identifier ``D2234-89'' with the identifier
``D2234-00e1'', in section <IP_ADDRESS>;
    t. Revising section <IP_ADDRESS>;
    u. Revising the words ``as measured by ASTM D3176-89, D1989-92,
D3286-91a, or D2015-91, Btu/lb'' to read ``as measured by ASTM D3176-89
(1997)e1, or D5865ae1, Btu/lb.'' in the definition of the
GCVc variable in Equation F-21;
    v. Revising the word ``lb/hr'' to read ``lb/hr, or mmBtu/hr'' in
the definition of the SF variable in Equation F-21b;
    w. Revising the title and text of section 7;
    x. Adding the words ``of this appendix'' after the words ``section
8.1, 8.2, or 8.3'' and after the words ``section 8.4'' in the
introductory text for section 8;
    y. Revising sections 8.1 and 8.1.1;
    z. Revising section 8.2;
    aa. Adding sections 8.2.1 and 8.2.2;
    bb. Revising section 8.3;
    cc. Revising section 8.4; and
    dd. Adding section 10.
    The revisions and additions read as follows:

Appendix F to Part 75--Conversion Procedures

* * * * *
    3.3.4 * * *
    <IP_ADDRESS> For boilers, a minimum concentration of 5.0 percent
CO2 or a maximum concentration of 14.0 percent
O2 may be substituted for the measured diluent gas
concentration value for any operating hour in which the hourly
average CO2 concentration is <5.0 percent CO2
or the hourly average O2 concentration is >14.0 percent
O2. For stationary gas turbines, a minimum concentration
of 1.0 percent CO2 or a maximum concentration of 19.0
percent O2 may be substituted for measured diluent gas
concentration values for any operating hour in which the hourly
average CO2 concentration is <1.0 percent CO2
or the hourly average O2 concentration is >19.0 percent
O2.
    <IP_ADDRESS> If NOX emission rate is calculated using
either Equation 19-3 or 19-5 in Method 19 in appendix A-7 to part 60
of this chapter, a variant of the equation shall be used whenever
the diluent cap is applied. The modified equations shall be
designated as Equations 19-3D and 19-5D, respectively. Equation 19-
3D is structurally the same as Equation 19-3, except that the term
``%O2w'' in the denominator is replaced with the term
``%O2dc x [(100-% H2O)/100]'', where
%O2dc is the diluent cap value. The numerator of Equation
19-5D is the same as Equation 19-5; however, the denominator of
Equation 19-5D is simply ``20.9-%O2dc'', where
%O2dc is the diluent cap value.
* * * * *

                     Table 1.--F and FC-Factors \1\
------------------------------------------------------------------------
                                          F-factor (dscf/ FC-factor (scf
                  Fuel                        mmBtu)        CO2/mmBtu)
------------------------------------------------------------------------
Coal (as defined by ASTM D388-99e1):
    Anthracite..........................          10,100           1,970
    Bituminous..........................           9,780           1,800
    Sub-bituminous......................           9,819           1,840
    Lignite.............................           9,860           1,910
Petroleum Coke..........................           9,832           1,853
Tire Derived Fuel 1.....................          10,261           1,803
Oil.....................................           9,190           1,420
Gas:
    Natural gas.........................           8,710           1,040
    Propane.............................           8,710           1,190
    Butane..............................           8,710           1,250
Wood:
    Bark................................           9,600           1,920
    Wood residue........................           9,240           1,830
------------------------------------------------------------------------
\1\ Determined at standard conditions: 20 [deg]C (68 [deg]F) and 29.92
  inches of mercury.

* * * * *
    3.3.6 Equations F-7a and F-7b may be used in lieu of the F or
Fc factors specified in Section 3.3.5 of this appendix to
calculate a site-specific dry-basis F factor (dscf/mmBtu) or a site-
specific Fc factor (scf CO2/mmBtu), on either
a dry or wet basis. At a minimum, the site-specific F or
Fc factor must be based on 9 samples of the fuel. Fuel
samples taken during each run of a RATA are acceptable for this
purpose. The site-specific F or Fc factor must be re-
determined at least annually, and the value from the most recent
determination must be used in the emission calculations.
Alternatively, the previous F or Fc value may continue to
be used if it is higher than the value obtained in the most recent
determination. The owner or operator shall keep records of all site-
specific F or Fc determinations, active for at least 3
years. (Calculate all F- and Fc factors at standard
conditions of 20 [deg]C (68 [deg]F) and 29.92 inches of mercury).
* * * * *
    <IP_ADDRESS> GCV is the gross calorific value (Btu/lb) of the fuel
combusted determined by ASTM D5865-01ae1 ``Standard Test Method for
Gross Calorific Value of Coal and Coke'', and ASTM D240-00
``Standard Test Method for Heat of Combustion of Liquid Hydrocarbon
Fuels by Bomb Calorimeter'', or ASTM D4809-00, ``Standard Test
Method for Heat of Combustion of Liquid Hydrocarbon Fuels by Bomb
Calorimeter (Precision Method) for oil; and ASTM D3588-98 ``Standard
Practice for Calculating Heat Value, Compressibility Factor, and
Relative Density (Specific Gravity) of Gaseous Fuels,'' ASTM D4891-
89 (2001) ``Standard Test Method for Heating Value of Gases in
Natural Gas Range by Stoichiometric Combustion,'' GPA Standard 2172-
1996 ``Calculation of Gross Heating Value, Relative Density and
Compressibility Factor for Natural Gas Mixtures from Compositional
Analysis,'' GPA Standard 2261-1999 ``Analysis for Natural Gas and
Similar Gaseous Mixtures by Gas Chromatography,'' or ASTM D1826-94
(1998), ``Standard Test Method for Calorific (Heating) Value of
Gases in Natural Gas Range by Continuous Recording Calorimeter'' for
gaseous fuels, as applicable. (These methods are incorporated by
reference under Sec.  75.6).
* * * * *
    <IP_ADDRESS> * * *

Xi = Fraction of total heat input derived from each type
of fuel (e.g., natural gas, bituminous coal, wood). Each
Xi value shall be determined from the best available
information on the quantity of fuel combusted and the GCV value,
over a specified time period. The owner or operator shall explain
the method used to calculate Xi in the hardcopy portion
of the monitoring plan for the unit. The Xi values may be
determined and updated either hourly, daily, weekly, or monthly. In
all cases, the prorated F-factor used in the emission calculations
shall be determined using the Xi values from the most
recent update.
* * * * *

4. Procedure for CO2 Mass Emissions

* * * * *
    4.4.1 If the owner or operator elects to use data from an
O2 monitor to calculate CO2 concentration, the
appropriate F and FC factors from section 3.3.5 of this
appendix shall be used in one of the following equations (as
applicable) to determine hourly average CO2 concentration
of flue gases (in percent by volume) from the measured hourly
average O2 concentration:
[GRAPHIC] [TIFF OMITTED] TP22AU06.051

Where:

CO2d = Hourly average CO2 concentration during
unit operation, percent by volume, dry basis.
F, FC = F-factor or carbon-based Fc-factor
from section 3.3.5 of this appendix.
20.9 = Percentage of O2 in ambient air.
O2d = Hourly average O2 concentration during
unit operation, percent by volume, dry basis.
[GRAPHIC] [TIFF OMITTED] TP22AU06.052

Where:

CO2w = Hourly average CO2 concentration during
unit operation, percent by volume, wet basis.
O2w = Hourly average O2 concentration during
unit operation, percent by volume, wet basis.

F, Fc = F-factor or carbon-based FC-factor
from section 3.3.5 of this appendix.
20.9 = Percentage of O2 in ambient air.
%H2O = Moisture content of gas in the stack, percent.
    For any hour where Equation F-14b results in a negative hourly
average CO2 value, 0.0% CO2w shall be recorded
as the average CO2 value for that hour.
* * * * *

5. Procedures for Heat Input

* * * * *
    5.2.3 * * *
    For any hour where Equation F-17 results in a negative hourly
heat input rate, 1.0 mmBtu/hr shall be recorded and reported as the
heat input rate for that hour.
* * * * *
    <IP_ADDRESS> Use ASTM D2013-01, ``Standard Method of Preparing Coal
Samples for Analysis,'' for preparation of a daily coal sample and
analyze each daily coal sample for gross calorific value using ASTM
D5865-01ae1, ``Standard Test Method for Gross Calorific Value of
Coal and Coke'' (All ASTM methods are incorporated by reference
under Sec.  75.6 of this part.)
    On-line coal analysis may also be used if the on-line analytical
instrument has been demonstrated to be equivalent to the applicable
ASTM methods under Sec. Sec.  75.23 and 75.66.
* * * * *

7. Procedures for SO2 Mass Emissions, Using Default
SO2 Emission Rates and Heat Input Measured by CEMS

    The owner or operator shall use Equation F-23 to calculate
hourly SO2 mass emissions in accordance with Sec.
75.11(e)(1) during the combustion of gaseous fuel, for a unit that
uses a flow monitor and a diluent gas monitor to measure heat input,
and that qualifies to use a default SO2 emission rate
under section <IP_ADDRESS>, <IP_ADDRESS>.1, or 2.3.6(b) of appendix D to this
part. Equation F-23 may also be applied to the combustion of solid
or liquid fuel that meets the definition of very low sulfur fuel in
Sec.  72.2 of this chapter, combinations of such fuels, or mixtures
of such fuels with gaseous fuel, if the owner or operator has
received approval from the Administrator under Sec.  75.66 to use a
site-specific default SO2 emission rate for the fuel or
mixture of fuels.
[GRAPHIC] [TIFF OMITTED] TP22AU06.053

Where:

Eh = Hourly SO2 mass emission rate, lb/hr.
ER = Applicable SO2 default emission rate for gaseous
fuel combustion, from section <IP_ADDRESS>, <IP_ADDRESS>.1, or 2.3.6(b) of
appendix D to this part, or other default SO2 emission
rate for the combustion of very low sulfur liquid or solid fuel,
combinations of such fuels, or mixtures of such fuels with gaseous
fuel, as approved by the Administrator under Sec.  75.66, lb/mmBtu.
HI = Hourly heat input rate, determined using the procedures in
section 5.2 of this appendix, mmBtu/hr.
* * * * *

8. Procedures for NOX Mass Emissions

* * * * *
    8.1 The owner or operator may use the hourly NOX
emission rate and the hourly heat input rate to calculate the
NOX mass emissions in pounds or the NOX mass
emission rate in pounds per hour, (as required by the applicable
reporting format), for each unit or stack operating hour, as
follows:
    8.1.1 If both NOX emission rate and heat input rate
are monitored at the same unit or stack level (e.g., the
NOX emission rate value and the heat input rate value
both represent all of the units exhausting to the common stack),
then (as required by the applicable reporting format) either:
    (a) Use Equation F-24 to calculate the hourly NOX
mass emissions (lb)
[GRAPHIC] [TIFF OMITTED] TP22AU06.054

Where:

M(NOX)h = NOX mass emissions in lbs
for the hour.
ER(NOX)h = Hourly average NOX
emission rate for hour h, lb/mmBtu, from section 3 of this appendix,
from method 19 of appendix A to part 60 of this chapter, or from
section 3.3 of appendix E to this part. (Include bias-adjusted
NOX emission rate values, where the bias-test procedures
in appendix A to this part shows a bias-adjustment factor is
necessary.)
HIh = Hourly average heat input rate for hour h, mmBtu/
hr. (Include bias-adjusted flow rate values, where the bias-test
procedures in appendix A to this part shows a bias-adjustment factor
is necessary.)
th = Monitoring location operating time for hour h, in
hours or fraction of an hour (in equal increments that can range
from one hundredth to one quarter of an hour, at the option of the
owner or operator). If the combined NOX emission rate and
heat input are monitored for all of the units in a common stack, the
monitoring location operating time is equal to the total time when
any of those units was exhausting through the common stack; or

    (b) Use Equation F-24a to calculate the hourly NOX
mass emission rate (lb/hr).
[GRAPHIC] [TIFF OMITTED] TP22AU06.055

Where:

E(NOX)h = NOX mass emissions rate
in lbs/hr for the hour.
ER(NOX)h = Hourly average NOX
emission rate for hour h, lb/mmBtu, from section 3 of this appendix,
from method 19 of appendix A to part 60 of this chapter, or from
section 3.3 of appendix E to this part. (Include bias-adjusted
NOX emission rate values, where the bias-test procedures
in appendix A to this part shows a bias-adjustment factor is
necessary.)
HIh = Hourly average heat input rate for hour h, mmBtu/
hr. (Include bias-adjusted flow rate values, where the bias-test
procedures in appendix A to this part shows a bias-adjustment factor
is necessary.)
* * * * *
    8.2 Alternatively, the owner or operator may use the hourly
NOX concentration (as measured by a NOX
concentration monitoring system) and the hourly stack gas volumetric
flow rate to calculate the NOX mass emission rate (lb/hr)
for each unit or stack operating hour, in accordance with section
8.2.1 or 8.2.2 of this appendix (as applicable). If the hourly
NOX mass emissions are to be reported in lb, Equation F-
26c in section 8.3 of this appendix shall be used to convert the
hourly NOX mass emission rates to hourly NOX
mass emissions (lb).
    8.2.1 When the NOX concentration monitoring system
measures on a wet basis, first calculate the hourly NOX
mass emission rate (in lb/hr) during unit (or stack) operation,
using Equation F-26a. (Include bias-adjusted flow rate or
NOX concentration values, where the bias-test procedures
in appendix A to this part shows a bias-adjustment factor is
necessary.)
[GRAPHIC] [TIFF OMITTED] TP22AU06.056

Where:

E(NOX)h = NOX mass emissions rate
in lb/hr.
K = 1.194 x 10-7 for NOX, (lb/scf)/ppm.
Chw = Hourly average NOX concentration during
unit operation, wet basis, ppm.
Qh = Hourly average volumetric flow rate during unit
operation, wet basis, scfh.

    8.2.2 When NOX mass emissions are determined using a
dry basis NOX concentration monitoring system and a wet
basis flow monitoring system, first calculate hourly NOX
mass emission rate (in lb/hr) during unit (or stack) operation,
using Equation F-26b. (Include bias-adjusted flow rate or
NOX concentration values, where the bias-test procedures
in appendix A to this part shows a bias-adjustment factor is
necessary.)
[GRAPHIC] [TIFF OMITTED] TP22AU06.057

Where:

E(NOX)h = NOX mass emissions rate,
lb/hr.
K = 1.194 x 10-7 for NOX, (lb/scf)/ppm.
Chd = Hourly average NOX concentration during
unit operation, dry basis, ppm.
Qh = Hourly average volumetric flow rate during unit
operation, wet basis, scfh

%H2O = Hourly average stack moisture content during unit
operation, percent by volume.
    8.3 When hourly NOX mass emissions are reported in
pounds and are determined using a NOX concentration
monitoring system and a flow monitoring system, calculate
NOX mass emissions (lb) for each unit or stack operating
hour by multiplying the hourly NOX mass emission rate
(lb/hr) by the unit operating time for the hour, as follows:
[GRAPHIC] [TIFF OMITTED] TP22AU06.058

Where:

M(NOx)h = NOX mass emissions for
the hour, lb.
Eh = Hourly NOX mass emission rate during unit
(or stack) operation from Equation F-26a in section 8.2.1 of this
appendix or Equation F-26b in section 8.2.2 of this appendix (as
applicable), lb/hr.
th = Unit operating time or stack operating time (as
defined in Sec.  72.2 of this chapter) for hour ``h'', in hours or
fraction of an hour (in equal increments that can range from one
hundredth to one quarter of an hour, at the option of the owner or
operator).
    8.4 Use the following procedures to calculate quarterly,
cumulative ozone season, and cumulative yearly NOX mass
emissions, in tons:
    (a) When hourly NOX mass emissions are reported in
lb, use Eq. F-27.
[GRAPHIC] [TIFF OMITTED] TP22AU06.059

Where:

M(NOX)time period = NOX mass
emissions in tons for the given time period (quarter, cumulative
ozone season, cumulative year-to-date).
M(NOX)h = NOX mass emissions in lb
for the hour.
p = The number of hours in the given time period (quarter,
cumulative ozone season, cumulative year-to-date).

    (b) When hourly NOX mass emission rate is reported in
lb/hr, use Eq. F-27a.
[GRAPHIC] [TIFF OMITTED] TP22AU06.060

Where:

M(NOX)time period = NOX mass
emissions in tons for the given time period (quarter, cumulative
ozone season, cumulative year-to-date).
E(NOX)h = NOX mass emission rate in
lb/hr for the hour.
p = The number of hours in the given time period (quarter,
cumulative ozone season, cumulative year-to-date).
th = Monitoring location operating time for hour h, in
hours or fraction of an hour (in equal increments that can range
from one hundredth to one quarter of an hour, at the option of the
owner or operator).
* * * * *

10. Moisture Determination from Wet and Dry O2 Readings

    If a correction for the stack gas moisture content is required
in any of the emissions or heat input calculations described in this
appendix, and if the hourly moisture content is determined from wet-
and dry-basis O2 readings, use Equation F-31 to calculate
the percent moisture, unless a ``K'' factor or other mathematical
algorithm is developed as described in section 6.5.7(a) of appendix
A to this part:
[GRAPHIC] [TIFF OMITTED] TP22AU06.061

Where:

% H2O = Hourly average stack gas moisture content,
percent H2O
O2d = Dry-basis hourly average oxygen concentration,
percent O2
O2w = Wet-basis hourly average oxygen concentration,
percent O2
* * * * *
    43. Appendix G to Part 75--is amended by:
    a. Revising section 2.1.2;
    b. Replacing the identifier ``D3174-89'' with the identifier
``D3174-00'' in section 2.2.1; and
    c. Adding the number ``(1997)'' after the identifier ``D3178-89''
in section 2.2.2.
    The revisions and additions read as follows:

Appendix G to Part 75--Determination of CO2 Emissions

* * * * *
    2.1.2 Determine the carbon content of each fuel sample using one
of the following methods: ASTM D3178-89 (1997) or ASTM 5373-93 for
coal; ASTM D5291-01 ``Standard Test Methods for Instrumental
Determination of Carbon, Hydrogen, and Nitrogen in Petroleum
Products and Lubricants,'' ultimate analysis of oil, or computations
based upon ASTM D3238-95 (2000)e1 and either ASTM D2502-92 (1996) or
ASTM D2503-92 (1997) for oil; and computations based on ASTM D1945-
96 (2001) or ASTM D1946-90 (2000) for gas.
* * * * *
    44. Appendix K to Part 75 is amended by:
    a. Adding a sentence to the end of section 7.2.3; and
    b. Revising Table K-1 of section 8.
    c. Adding the number ``2'' after the words ``sections 1 and'' in
the definition of the variable M* in Equation K-5.
    The revisions and additions read as follows:

Appendix K to Part 75--Quality Assurance and Operating Procedures for
Sorbent Trap Monitoring Systems

* * * * *
    7.2.3 * * * The sample flow rate through a sorbent trap
monitoring system during any hour (or portion of an hour) in which
the unit is not operating shall be zero.
* * * * *

           Table K-1.--Quality Assurance/Quality Control Criteria for Sorbent Trap Monitoring Systems
----------------------------------------------------------------------------------------------------------------
     QA/QC test or specification         Acceptance criteria           Frequency         Consequences if not met
----------------------------------------------------------------------------------------------------------------
Pre-test leak check..................  < =4% of target sampling  Prior to sampling......  Sampling shall not
                                        rate.                                             commence until the
                                                                                lead check is passed.
Post-test leak check.................  < =4% of average          After sampling.........  Sample invalidated.**
                                        sampling rate.
Ratio of stack gas flow rate to        Maintain within < plus-   Every hour throughout    Sample invalidated if
 sample flow rate.                      minus> 25% of initial    data collection period.  more than 5% of the
                                        ratio from first hour                             hourly ratios or 5
                                        of data collection                                hourly ratios
                                        period.                                           (whichever is less
                                                                                restrictive) are not
                                                                                maintained within the
                                                                                acceptance criteria.**
Sorbent trap section 2 break-through.  < =5% of Section 1 Hg     Every sample...........  Sample invalidated.**
                                        mass.
Paired sorbent trap agreement........  < =10% Relative           Every sample...........  Either invalidate the
                                        Deviation (RD) if the                             data from the paired
                                        average concentration                             traps or report the
                                        is >1.0 [mu]g/m3, and                             results from the trap
                                        < =20% RD if the                                   resulting in the
                                        average concentration                             higher Hg
                                        is < =1.0 [mu]g/m3.                                concentration.
Spike Recovery Study.................  Average recovery         Prior to analyzing       Field samples shall not
                                        between 85% and 115%     field samples and        be analyzed until the
                                        for each of the 3        prior to use of new      percent recovery
                                        spike concentration      sorbent media.           criteria has been met.
                                        levels.
Multipoint analyzer calibration......  Each analyzer reading    On the day of analysis,  Recalibrate until
                                        within 10%   before analyzing any     successful.
                                        of true value and        samples.
                                        r2>=0.99.
Analysis of independent calibration    Within 10%   Following daily          Recalibrate and repeat
 standard.                              of true value.           calibration, prior to    independent standard
                                                                 analyzing field          analysis until
                                                                 samples.                 successful.
Spike recovery from section 3 of       75-125% of spike amount  Every sample...........  Sample invalidated.**
 sorbent trap.
RATA.................................  RA < =20.0% or Mean       For initial              Data from the system
                                        difference < =1.0 [mu]g/  certification and        are invalidated until
                                        dscm for low emitters.   annually thereafter.     a RATA is passed.
Dry gas meter calibration (At 3        Calibration factor (Y)   Prior to initial use     Recalibrate the meter
 orifice initially, and 1 setting       within 5%    and at least quarterly   at three orifice
 thereafter).                           of average value from    thereafter.              settings to determine
                                        the initial (3-point)                             a new value of Y.
                                        calibration.
Temperature sensor calibration.......  Absolute temperature     Prior to initial use     Recalibrate. Sensor may
                                        measured by sensor       and at least quarterly   not be used until
                                        within < plus-            thereafter.              specification is met.
                                        minus>1.5% of a
                                        reference sensor.
Barometer calibration................  Absolute pressure        Prior to initial use     Recalibrate. Instrument
                                        measured by instrument   and at least quarterly   may not be used until
                                        within 10    thereafter.              specification is met.
                                        mm Hg of reading with
                                        a mercury barometer.
----------------------------------------------------------------------------------------------------------------
** However, if only one of the paired samples fails to meet this specification and the other sample meets all of
  the applicable QA criteria, the results of the valid sample may be used for reporting under this part,
  provided that the measured Hg concentration is multiplied by a factor of 1.222. If both samples are
  invalidated and quality-assured data from a certified backup monitoring system, reference method, or approved
  alternative monitoring system are unavailable, substitute data must be used.

[FR Doc. 06-6819 Filed 8-21-06; 8:45 am]

BILLING CODE 6560-50-P