[Federal Register Volume 80, Number 191 (Friday, October 2, 2015)]
[Rules and Regulations]
[Pages 59620-59624]
[FR Doc No: 2015-24857]

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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R08-OAR-2014-0916; FRL-9934-83-Region 8]

Approval and Promulgation of Air Quality Implementation Plans;
South Dakota; Revisions to South Dakota Administrative Code

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is approving State
Implementation Plan (SIP) revisions submitted by the State of South
Dakota on July 29, 2013. This SIP submission revises the Administrative
Rules of South Dakota (ARSD) Article 74:36--Air Pollution Control
Program. These revisions include renumbering, revisions to the date of
incorporation by reference of the federal regulations referenced
throughout ARSD Article 74:36, and removal of obsolete language
regarding variance provisions and clean units. EPA is also clarifying a
final rule issued on January 29, 2015 pertaining to South Dakota's
infrastructure SIP. This action is being taken in accordance with
section 110 of the Clean Air Act (CAA).

DATES: This final rule is effective on November 2, 2015.

ADDRESSES: EPA has established a docket for this action under Docket
Identification Number EPA-R08-OAR-2014-0916. All documents in the
docket are listed on the http://www.regulations.gov index. Although
listed in the index, some information may not be publicly available,
e.g., Confidential Business Information or other information whose
disclosure is restricted by statute. Certain other material, such as
copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
through http://www.regulations.gov or in hard copy at the Air Program,
Environmental Protection Agency (EPA), Region 8, 1595 Wynkoop Street,
Denver, Colorado 80202-1129. EPA requests that you contact the
individual listed in the FOR FURTHER INFORMATION CONTACT section to
view the hard copy of the docket. You may view the hard copy of the
docket Monday through Friday, 8:00 a.m. to 4:00 p.m., excluding federal
holidays.

FOR FURTHER INFORMATION CONTACT: Adam Clark, Air Program, U.S.
Environmental Protection Agency, Region 8, Mailcode 8P-AR, 1595
Wynkoop, Denver, Colorado 80202-1129,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    South Dakota's July 29, 2013 submittal covers the following rule
changes: (1) Removal of obsolete language regarding variance provisions
and clean units, and renumbering to reflect the deletions; and (2)
Revisions to the date of federal regulations referenced throughout ARSD
Article 74:36 to July 1, 2012. A cross-walk table that identifies EPA's
action on South Dakota's revisions is included in the docket for this
rulemaking.
    South Dakota's July 29, 2013 submittal also requests EPA approval
of rule revisions for provisions that are not required to be included
in SIPs under section 110 of the CAA, most notably additions to the
State's New Source Performance Standards, National Emissions Standards
for Hazardous Air Pollutants and Title V permitting. These revisions,
on which EPA is not taking action, are outlined in the cross-walk table
located in the docket for this rulemaking.

II. What action is EPA taking?

    EPA is finalizing action on South Dakota's July 29, 2013 submittal
as outlined in Section III. of the proposal published on July 14, 2015,
with one exception; EPA's proposed approval of South Dakota's updates
to 74:36:05, ``Operating Permits for Part 70 Sources,'' as part of its
July 14, 2015 action (80 FR 40953). EPA published a notice of
correction of the proposal on August 24, 2015 (80 FR 51152), because
CAA Title V requirements are not subject to Section 110 of the Clean
Air Act and are thus not required to be incorporated into a SIP.
Therefore, EPA is not taking any action on South Dakota's updates to
74:36:05.

III. Clarification of January 29, 2015 Final Action

    Under CAA sections 110(a)(1) and (2), states are required to submit
infrastructure SIPs to ensure their SIPs provide for implementation,
maintenance, and enforcement of the National Ambient Air Quality
Standards (NAAQS). On January 29, 2015, EPA took final action on the
infrastructure submittals which addressed several different NAAQS from
the State of South Dakota (80 FR 4799). As part of the January 29, 2015
action, EPA approved South Dakota's 1997 PM2.5 NAAQS
interstate transport infrastructure sub-element (CAA section
110(a)(2)(D)(i)(II)). However, EPA had already approved this sub-
element in a final rulemaking on May 8, 2008 (73 FR 26019, effective
July 7, 2008). Therefore, in this action EPA is clarifying that no
action was required on this sub-element for this NAAQS in the January
29, 2015 approval of CAA section 110(a)(2)(D)(i)(II) for the 1997
PM2.5

NAAQS and the effective date of approval remains July 7, 2008.

IV. Response to Comments

    EPA received one comment on the July 14, 2015 proposal with respect
to air quality measurements. EPA acknowledges this comment but does not
consider the comment to be relevant to the proposed action.

V. Summary of Action

    In this rulemaking, EPA is approving most remaining portions of
South Dakota's July 29, 2013 submittal as outlined in the crosswalk
table located in the docket for this action. EPA is not taking action
on certain portions of this submittal as described in the proposed
rulemaking and the notice of correction to the proposal. Finally, EPA
is also clarifying no action was required in the January 29, 2015 final
action (80 FR 4799) regarding the effective date of approval for South
Dakota's SIP regarding CAA section 110(a)(2)(D)(i)(II) for the 1997
PM2.5 NAAQS as EPA had already approved this sub-element in
a prior rulemaking.

VI. Incorporation by Reference

    In this rulemaking, EPA is including final EPA rule regulatory text
that includes incorporation by reference. In accordance with the
requirements of 1 CFR 51.5, EPA is incorporating by reference the rules
in ARSD Article 74:36 submitted by South Dakota for action which are
identified within this notice of rulemaking. EPA has made, and will
continue to make, these documents generally available electronically
through www.regulations.gov and/or in hard copy at the appropriate EPA
office (see the ADDRESSES section of this rule's preamble for more
information).

VII. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable federal regulations 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act.
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 Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
in a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     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 Clean Air Act; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land or
in any other area where EPA or an Indian tribe has demonstrated that a
tribe has jurisdiction. In those areas of Indian country, the rule does
not have tribal implications and will not impose substantial direct
costs on tribal governments or preempt tribal law as specified by
Executive Order 13175 (65 FR 67249, November 9, 2000).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by December 1, 2015. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed, and shall not postpone the effectiveness
of such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. (See CAA section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: September 9, 2015.
 Debra H. Thomas,
Acting Regional Administrator, Region 8.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart QQ--South Dakota

0
2. In Sec.  52.2170, the table in paragraph (c)(1) is amended by:
0
a. Revising entries for ``74:36:01:01''; ``74:36:02:02'',
``74:36:02:03'', ``74:36:02:04'', ``74:36:02:05''; and ``74:36:04:04'';
0
b. Adding an entry for ``74:36:04:05'' in numerical order;
0
c. Revising entries for ``74:36:04:12'' and ``74:36:04:13'';
0
d. Adding an entry for ``74:36:04:14'' in numerical order;
0
e. Revising entries for ``74:36:04:15''; ``74:36:11:01''; and
``74:36:12:01'';
0
f. Adding an entry for ``74:36:12:02'' in numerical order; and
0
g. Revising entries for ``74:36:12:03''; ``74:36:13:02'',
``74:36:13:03'', ``74:36:13:04'', ``74:36:13:06'', ``74:36:13:07'',
``74:36:13:08''; ``74:36:18:04'', ``74:36:18:05'', ``74:36:18:06'',
``74:36:18:10'',

``74:36:18:11'', ``74:36:18:12''; ``74:36:20:05'', ``74:36:20:11'',
``74:36:20:13'', ``74:36:20:14'', ``74:36:20:15''; ``74:36:21:02'',
``74:36:21:04'', ``74:36:21:05'', and ``74:36:21:09''.
    The revisions and additions read as follows:

Sec.  52.2170  Identification of plan.

* * * * *
    (c) * * *
    (1) * * *

----------------------------------------------------------------------------------------------------------------
                                                             State       EPA approval date
          State citation              Title/subject     effective date    and citation \1\       Explanations
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                              74:36:01 Definitions
----------------------------------------------------------------------------------------------------------------
74:36:01:01......................  Definitions........       6/25/2013  10/2/2015, [insert
                                                                         Federal Register
                                                                         citation].

----------------------------------------------------------------------------------------------------------------
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                          74:36:02 Ambient Air Quality
----------------------------------------------------------------------------------------------------------------
74:36:02:02......................  Ambient air quality       6/25/2013  10/2/2015, [insert
                                    standards.                           Federal Register
                                                                         citation].
74:36:02:03......................  Methods of sampling       6/25/2013  10/2/2015, [insert
                                    and analysis.                        Federal Register
                                                                         citation].
74:36:02:04......................  Air quality               6/25/2013  10/2/2015, [insert
                                    monitoring network.                  Federal Register
                                                                         citation].
74:36:02:05......................  Air quality               6/25/2013  10/2/2015, [insert
                                    monitoring                           Federal Register
                                    requirements.                        citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  74:36:04 Operating Permits for Minor Sources
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
74:36:04:04......................  Standard for              6/25/2013  10/2/2015, [insert
                                    issuance of a                        Federal Register
                                    minor source                         citation].
                                    operating permit.
74:36:04:05......................  Time period for           6/25/2013  10/2/2015, [insert
                                    operating permits                    Federal Register
                                    and renewals.                        citation].

                                                  * * * * * * *
74:36:04:12......................  Public                    6/25/2013  10/2/2015, [insert
                                    participation in                     Federal Register
                                    permitting process.                  citation].

                                                  * * * * * * *
74:36:04:13......................  Final permit              6/25/2013  10/2/2015, [insert
                                    decision--Notice                     Federal Register
                                    to interested                        citation].
                                    persons.
74:36:04:14......................  Right to petition         6/25/2013  10/2/2015, [insert
                                    for contested case                   Federal Register
                                    hearing.                             citation].
74:36:04:15......................  Contents of               6/25/2013  10/2/2015, [insert
                                    operating permit.                    Federal Register
                                                                         citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                          74:36:11 Performance Testing
----------------------------------------------------------------------------------------------------------------
74:36:11:01......................  Stack performance         6/25/2013  10/2/2015, [insert
                                    testing or other                     Federal Register
                                    testing methods.                     citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                      74:36:12 Control of Visible Emissions
----------------------------------------------------------------------------------------------------------------
74:36:12:01......................  Restrictions on           6/25/2013  10/2/2015, [insert
                                    visible emissions.                   Federal Register
                                                                         citation].
74:36:12:02......................  Exceptions to             6/25/2013  10/2/2015, [insert   Except for
                                    restrictions.                        Federal Register     74:36:12:02(3)
                                                                         citation].
74:36:12:03......................  Exceptions granted        6/25/2013  10/2/2015, [insert
                                    to alfalfa                           Federal Register
                                    pelletizers or                       citation].
                                    dehydrators.
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                 74:36:13 Continuous Emission Monitoring Systems
----------------------------------------------------------------------------------------------------------------
74:36:13:02......................  Minimum performance       6/25/2013  10/2/2015, [insert
                                    specifications for                   Federal Register
                                    all continuous                       citation].
                                    emission
                                    monitoring systems.
74:36:13:03......................  Reporting                 6/25/2013  10/2/2015, [insert
                                    requirements.                        Federal Register
                                                                         citation].
74:36:13:04......................  Notice to                 6/25/2013  10/2/2015, [insert
                                    department of                        Federal Register
                                    exceedance.                          citation].
74:36:13:06......................  Compliance                6/25/2013  10/2/2015, [insert
                                    certification.                       Federal Register
                                                                         citation].
74:36:13:07......................  Credible evidence..       6/25/2013  10/2/2015, [insert
                                                                         Federal Register
                                                                         citation].
74:36:13:08......................  Compliance                6/25/2013  10/2/2015, [insert
                                    assurance                            Federal Register
                                    monitoring.                          citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                        74:36:18 Regulations for State Facilities in the Rapid City Area
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
74:36:18:04......................  Time period for           6/25/2013  10/2/2015, [insert
                                    permits and                          Federal Register
                                    renewals.                            citation].
74:36:18:05......................  Required contents         6/25/2013  10/2/2015, [insert
                                    of a complete                        Federal Register
                                    application for a                    citation].
                                    permit.
74:36:18:06......................  Contents of permit.       6/25/2013  10/2/2015, [insert
                                                                         Federal Register
                                                                         citation].

                                                  * * * * * * *
74:36:18:10......................  Visible emission          6/25/2013  10/2/2015, [insert
                                    limit for                            Federal Register
                                    construction and                     citation].
                                    continuous
                                    operation
                                    activities.
74:36:18:11......................  Exception to              6/25/2013  10/2/2015, [insert
                                    visible emission                     Federal Register
                                    limit.                               citation].
74:36:18:12......................  Notice of operating       6/25/2013  10/2/2015, [insert
                                    noncompliance--Con                   Federal Register
                                    tents.                               citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                         74:36:20 Construction Permits for New Sources or Modifications
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
74:36:20:05......................  Standard for              6/25/2013  10/2/2015, [insert
                                    issuance of                          Federal Register
                                    construction                         citation].
                                    permit.

                                                  * * * * * * *
74:36:20:11......................  Public                    6/25/2013  10/2/2015, [insert
                                    participation in                     Federal Register
                                    permitting process.                  citation].

                                                  * * * * * * *
74:36:20:13......................  Final permit              6/25/2013  10/2/2015, [insert
                                    decision--Notice                     Federal Register
                                    to interested                        citation].
                                    persons.
74:36:20:14......................  Right to petition         6/25/2013  10/2/2015, [insert
                                    for contested case                   Federal Register
                                    hearing.                             citation].
74:36:20:15......................  Contents of               6/25/2013  10/2/2015, [insert
                                    construction                         Federal Register
                                    permit.                              citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                         74:36:21 Regional Haze Program
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
74:36:21:02......................  Definitions........       6/25/2013  10/2/2015, [insert
                                                                         Federal Register
                                                                         citation].

                                                  * * * * * * *
74:36:21:04......................  Visibility impact         6/25/2013  10/2/2015, [insert
                                    analysis.                            Federal Register
                                                                         citation].
74:36:21:05......................  BART determination.       6/25/2013  10/2/2015, [insert
                                                                         Federal Register
                                                                         citation].

                                                  * * * * * * *
74:36:21:09......................  Monitoring,               6/25/2013  10/2/2015, [insert
                                    recordkeeping, and                   Federal Register
                                    reporting.                           citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
\1\ In order to determine the EPA effective date for a specific provision listed in this table, consult the
  Federal Register notice cited in this column for the particular provision.

* * * * *

[FR Doc. 2015-24857 Filed 10-1-15; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 84, Number 151 (Tuesday, August 6, 2019)]
[Notices]
[Page 38278]
[FR Doc No: 2019-16780]

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

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4451-DR; Docket ID FEMA-2019-0001]

Missouri; Amendment No. 2 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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

SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Missouri (FEMA-4451-DR), dated July 9, 2019, and
related determinations.

DATES: This amendment was issued July 29, 2019.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the State of Missouri is hereby amended to include Public
Assistance for the following areas among those areas determined to have
been adversely affected by the event declared a major disaster by the
President in his declaration of July 9, 2019.

    Andrew, Atchison, Buchanan, Carroll, Chariton, Cole, Holt,
Jackson, Jasper, Livingston, Miller, and Pike Counties for Public
Assistance (already designated for Individual Assistance).
    Adair, Barry, Barton, Bates, Bollinger, Caldwell, Camden, Cape
Girardeau, Cedar, Clark, Dade, Dallas, Daviess, Douglas, Gentry,
Grundy, Harrison, Henry, Hickory, Howell, Knox, Laclede, Lewis,
Linn, Macon, Maries, Marion, McDonald, Mercer, Mississippi, Monroe,
Montgomery, New Madrid, Newton, Nodaway, Ozark, Pemiscot, Perry,
Putnam, Ralls, Randolph, Ray, Saline, Schuyler, Scotland, Shannon,
Shelby, Ste. Genevieve, Stoddard, Sullivan, Taney, Texas, Vernon,
Wayne, Webster, and Wright Counties for Public Assistance.
    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050 Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

Pete Gaynor,
Acting Administrator, Federal Emergency Management Agency.
[FR Doc. 2019-16780 Filed 8-5-19; 8:45 am]
 BILLING CODE 9111-23-P


[Federal Register: August 23, 2006 (Volume 71, Number 163)]
[Notices]
[Page 49493-49495]
[DOCID:fr23au06-115]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54328; File No. SR-BSE-2006-10]

Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Order Granting Accelerated Approval of a Proposed
Rule Change, as Modified by Amendment No. 2 Thereto, To Establish a Fee
Per Contract Traded for Improvement Orders Submitted Into a Price
Improvement Period by a Public Customer That Are Not Submitted as
Customer PIP Orders

August 16, 2006.
    On March 6, 2006, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend the Fee Schedule of the Boston Options
Exchange (``BOX'') in the manner described below. The proposed rule
change was published for comment in the Federal Register on May 15,
2006.\3\ The Commission received one comment letter concerning the
proposal.\4\ On June 29, 2006, the Exchange filed Amendment No. 1 to
the proposed rule change.\5\ On August 14, 2006, the Exchange filed
Amendment No. 2 to the proposed rule change.\6\ This order publishes
notice of and grants accelerated approval of the proposed rule change,
as modified by Amendment No. 2, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 53774 (May 9, 2006),
71 FR 28058 (``Notice'').
    \4\ Letter to Nancy Morris, Secretary, Commission, from Adam C.
Cooper, Senior Managing Director & General Counsel, Citadel
Investment Group, LLC (``Citadel''), dated June 9, 2006 (``Citadel
Letter'').
    \5\ In Amendment No. 1, which superseded and replaced the
original filing, the Exchange modified its proposal by lowering the
proposed BOX fee from $.20 per contract traded to $.15 per contract
traded. The Exchange also clarified its reasons for imposing the new
fee.
    \6\ In Amendment No. 2, which supersedes and replaces Amendment
No. 1 (and the original filing), the Exchange proposes to modify the
proposed rule text and clarifies its reasons for imposing the new
fee.
---------------------------------------------------------------------------

 I. Description of the Proposal

    Currently, there are two ways Public Customer Orders \7\ can be
submitted into a Price Improvement Period (``PIP'') auction as an
Improvement Order.\8\ The first method is the Customer PIP Order
(``CPO''), which is an order provided by a Public Customer to her/his
BOX Order Flow Provider (``OFP'') that contains a standard limit order
price in the standard minimum trading increment--the Book Reference
Price \9\--and a limit order placed in a penny increment, the CPO PIP
Reference Price.\10\ Through a CPO, a Public Customer may participate
passively in a PIP auction (should one occur while her/his limit order
is at the top of the BOX book) by virtue of the previously submitted
instructions given to the OFP, i.e., the CPO PIP Reference Price.
---------------------------------------------------------------------------

    \7\ The term ``Public Customer Order'' is defined as ``an order
for the account of a Public Customer. See BOX Rules, Chapter I,
Section 1(a)(51). ``Public Customer'' is defined as ``a person that
is not a broker or dealer in securities.'' See BOX Rules Chapter I,
Section 1(a)(50).
    \8\ The term ``Improvement Orders'' is defined in the BOX Rules
Chapter V, Section 18(e)(i).
    \9\ The term ``Book Reference Price'' is defined in BOX Rules
Chapter V, Section 18(g)(i).
    \10\ The term ``CPO PIP Reference Price'' is defined in BOX
Rules Chapter V, Section 18(g)(i).
---------------------------------------------------------------------------

    Alternatively, a Public Customer may submit an Improvement Order
into a PIP auction through an OFP with any instructions that the OFP is
willing to accept.\11\ These non-CPO Improvement Orders do not have a
Book Reference Price and are not exposed on the BOX Book; OFPs submit
them on behalf of Public Customers in response to a PIP Broadcast \12\
and PIP auction updates.
---------------------------------------------------------------------------

    \11\ See BOX Rules Chapter V, Section 18(e)(i).
    \12\ The PIP broadcast is disseminated once a PIP is initiated
and is distributed solely to BOX Options Participants. The
broadcasting of this message advises the Options Participants: (1)
That a Primary Improvement Order, as that term is defined in the BOX
Rules Chapter V, Section 18(e), has been processed; (2) of
information concerning series, size, price and side of market; and
(3) when the PIP will conclude (``PIP Broadcast'').
---------------------------------------------------------------------------

    Originally, the Exchange proposed to amend the BOX Fee Schedule to
establish a fee of $.20 per contract traded for Improvement Orders
submitted into a PIP by a Public Customer that are not submitted as
CPOs.
    In its letter, which was submitted in response to the original
proposed rule change, Citadel urges the Commission to disapprove the
proposed rule change because the proposed $.20 per contract traded fee
is inconsistent with three provisions of the Act. Citadel argues that
the original proposed rule change was inconsistent with Section 6(b)(4)
of the Act \13\ because it would effect an inequitable allocation of
reasonable fees among members and persons using the BOX facilities.
Specifically, Citadel stated that the proposed $.20 per contract fee
was inequitable because Public Customers would not be afforded a volume
discount similar to the one offered to BOX Market Makers \14\ who,
according to Citadel, enjoy other benefits and privileges that are
unavailable to Public Customers.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78(b)(4).
    \14\ BOX Market Makers may receive a volume discount of up to
$.05 per cotract based upon total volume traded across all assigned
classes. See Section 3.c. of the Fee Schedule.
---------------------------------------------------------------------------

    Citadel also argues that the proposed rule change is inconsistent
with Section 6(b)(5) of the Act \15\ in that it would discriminate
unfairly between Public Customers with access to sophisticated
technology and trading techniques (``Options Professionals'') and all
other Public Customers (``Investors'') by imposing a fee upon Options
Professionals and not Investors.
---------------------------------------------------------------------------

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

    Further, Citadel argues that the fee, as originally proposed, would
be inconsistent with Section 6(b)(8) of the Act \16\ in that it would
harm competition. Specifically, Citadel asserts that the proposed rule
change would discourage Public Customers from sending non-CPO
Improvement Orders to the BOX, which would result in fewer Improvement
Orders competing to improve orders submitted to the PIP. Additionally,
Citadel predicts that this diminished competition would make it easier
for Market Makers to step ahead of Public Customer limit orders posted
on the book, which would encourage BOX Participants to internalize more
of their order flow, and thereby diminish price discovery and
transparency and increase the costs of options investors.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    In response to the Citadel Letter, the Exchange proposes to modify
its proposal in Amendment No. 2. In Amendment No. 2, the Exchange
proposes to reduce the trading fee applicable to each Improvement Order
for a Public Customer not submitted as CPOs from $.20 to $.15. Further,
the Exchange proposes to clarify that, under the proposed Fee Schedule
as amended, no trading fee would be charged for Public Customer
Improvement Orders submitted as CPOs or for Public Customer Orders
traded on BOX including marketable orders, which interact with a PIP
already underway.

 II. Discussion

    After careful consideration of the Citadel Letter and the proposed
rule change, as amended in response to the Citadel Letter, the
Commission finds that the proposal, as amended, is consistent with the
requirements of Section 6(b) of the Act \17\ in general and Section
6(b)(4) of the Act \18\ in particular, in that it is designed to
provide for the equitable allocation of

reasonable dues, fees, and other charges among its members and issuers
and other persons using its facilities.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    To justify this new trading fee on non-CPO Improvement Orders by
Public Customers, the Exchange states that these types of orders, like
the Improvement Orders of Market Makers and OFPs, are closely monitored
for manipulative activity because they are submitted by sophisticated
parties, with advanced technology, directly in response to PIP data
updates. In contrast, the Exchange characterizes CPOs as more
``passive'' orders, because they contain preset PIP auction
instructions, which pose less of a manipulation risk and therefore draw
less regulatory scrutiny. The Exchange states, therefore, that CPOs are
less costly to surveil than non-CPO Improvement Orders.
    In addition, the Exchange states that the high volume of non-CPO
Improvement Orders justifies the imposition of the proposed fee. The
Exchange states that CPOs, as a result of their passive nature,
generate fewer new Improvement Orders than non-CPO Improvement Orders,
which are generated by sophisticated trading systems capable of
generating many new Improvement Orders during a PIP. Increased
Improvement Order traffic requires additional capacity on the BOX
trading host, and investment in this additional capacity taxes the
Exchange's resources. In light of the increased costs associated with
non-CPO Improvement Orders,\19\ the proposed fee provides for an
equitable allocation of reasonable dues, fees, and other charges among
its members and issuers and other persons using its facilities.
---------------------------------------------------------------------------

    \19\ As discussed below, broker-dealers and Market Makers pay
comparable trading fees. See Sections 2 and 3 of the Fee Schedule.
---------------------------------------------------------------------------

    As mentioned above, in Amendment No. 2, the Exchange proposes to
decrease the amount of the proposed fee. Currently, Market Maker and
broker-dealer accounts are charged $0.20 per executed contract for
Improvement Orders traded in a PIP. As Citadel points out, however,
some Market Makers receive volume discounts of up to $0.05 per
contract. In response to the Citadel Letter, the Exchange modified its
proposal to reduce the proposed trading fee applicable to non-CPO
Improvement Orders for Public Customer accounts from $.20 to $.15 per
executed contract.\20\ As a result, under the amended proposal, the BOX
will impose upon Public Customers participating in the PIP through the
use of non-CPO Improvement Orders the same transaction fee as a Market
Maker receiving the highest volume discount.
---------------------------------------------------------------------------

    \20\ See Amendment No. 2.
---------------------------------------------------------------------------

    The Commission also finds that the proposed rule change is
consistent with Section 6(b)(5) of the Act.\21\ Section 6(b)(5) of the
Act prohibits only ``unfair discrimination,'' not discrimination
simpliciter.\22\ On its face, the proposed fee discriminates between
different means of participating in the PIP auction.\23\ However, a CPO
and non-CPO Improvement Order impact the BOX differently. A non-CPO
Improvement Order, which interacts in the PIP on a dynamic basis, taxes
the Exchange's systems capacity and regulatory personnel to a greater
degree than do passive CPO participants. In addition, the Book
Reference Price associated with a CPO adds liquidity to the displayed
BOX Book, which provides value to the BOX because it attracts
additional orders. A non-CPO Improvement Order does not provide such
liquidity. The Commission believes these differences are a reasonable
basis for the Exchange to charge different fees. Discrimination on the
basis of the disparate costs to the Exchange of administering the PIP
auction is not unfair, particularly given the benefit (i.e., liquidity)
provided to the Exchange by CPOs.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78s(b)(5).
    \22\ See Timpinaro v. SEC, 2 F.3d 453, 456 (DC Cir. 1993).
    \23\ The proposed fee would not apply to CPOs submitted by
sophisticated Public Customers.
---------------------------------------------------------------------------

    Finally, the Commission finds that the proposed rule change is
consistent with Section 6(b)(8) of the Act,\24\ which requires that the
rules of the Exchange not impose any burden on competition not
necessary or appropriate in furtherance of the purposes of the Act. A
$0.15 fee per executed contract, or $0.0015 for each share underlying
an option contract, will increase costs to Public Customers submitting
non-CPO Improvement Orders by only a de minimus amount. Market Makers
are charged comparable fees for participating in PIPs. Accordingly, the
Commission does not believe this fee will discourage the submission of
non-CPO Improvement Orders or impose a burden on competition.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78s(b)(8).
---------------------------------------------------------------------------

    The Commission finds good cause for approving Amendment No. 2 to
the proposed rule change prior to the 30th day after the amendment is
published for comment in the Federal Register pursuant to Section
19(b)(2) of the Act.\25\ The proposed rule change, in its original
form, was published for comment \26\ and, as mentioned above, the
Commission received only one comment letter. Amendment No. 2 modifies
the substance of the original proposal only by decreasing the amount of
the proposed transaction fee from $.20 per contract traded to $.15 per
executed contract.\27\ This reduction to the proposed fee, which the
Exchange offered in response to the Citadel Letter, does not raise any
additional regulatory issues.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78s(b)(2).
    \26\ See Notice, supra at note 3.
    \27\ In Amendment No. 2, the Exchange also revised the proposed
rule text to make explicit that ``[t]here are no trading fees for
any other Public Customer Orders which may be executed including
CPOs and Public Customer orders on the Book.'' This new language is
consistent with the Exchange's description of the proposed rule
change in the original filing: ``All other Public Customer Orders
traded on BOX, including marketable orders, which interact with a
PIP already underway, will continue to be free.''
---------------------------------------------------------------------------

 III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning whether Amendment No. 2 to 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 e-mail to<EMAIL_ADDRESS>Please include

File No. SR-BSE-2006-10 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-BSE-2006-10. This
file number should be included on the subject line if e-mail 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 Commissions 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 inspection and copying in the Commission's Public
Reference Room. 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-BSE-2006-10 and should be
submitted on or before September 13, 2006.

 IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\28\ that the proposed rule change (SR-BSE-2006-10), as amended, is
hereby approved on an accelerated basis.
---------------------------------------------------------------------------

    \28\ Id.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\29\
---------------------------------------------------------------------------

    \29\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-13931 Filed 8-22-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 82, Number 93 (Tuesday, May 16, 2017)]
[Notices]
[Pages 22573-22574]
[FR Doc No: 2017-09936]

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

SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold a closed meeting on Thursday, May 18,
2017 at 2 p.m.
    Commissioners, Counsel to the Commissioners, the Secretary to the

Commission, and recording secretaries will attend the closed meeting.
Certain staff members who have an interest in the matters also may be
present.
    The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(7), (a)(9)(ii) and (a)(10), permit
consideration of the scheduled matter at the closed meeting.
    Commissioner Piwowar, as duty officer, voted to consider the items
listed for the closed meeting in closed session.
    The subject matter of the closed meeting will be:
    Institution and settlement of injunctive actions;
    Institution and settlement of administrative proceedings; and
    Other matters relating to enforcement proceedings.
    At times, changes in Commission priorities require alterations in
the scheduling of meeting items.
    For further information and to ascertain what, if any, matters have
been added, deleted or postponed; please contact Brent J. Fields from
the Office of the Secretary at<PHONE_NUMBER>.

    Dated: May 11, 2017.
Brent J. Fields,
Secretary.
[FR Doc. 2017-09936 Filed 5-12-17; 11:15 am]
BILLING CODE 8011-01-P