[Federal Register Volume 78, Number 89 (Wednesday, May 8, 2013)]
[Notices]
[Pages 26832-26836]
[FR Doc No: 2013-10847]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69495; File No. SR-FICC-2013-04]

Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing of Proposed Rule Change to the Government Securities
Division Rules and the Mortgage-Backed Securities Division Clearing
Rules in Connection With the Implementation of the Foreign Account Tax
Compliance Act (FATCA)

May 2, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby
given that on April 22, 2013, the Fixed Income Clearing Corporation
(``FICC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been substantially prepared by FICC.
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\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule changes consist of modifications to the Rulebook
of the Government Securities Division (``GSD'') and the Clearing Rules
of the Mortgage-Backed Securities Division (``MBSD'') (collectively,
the ``Rules'') of FICC in connection with implementation of sections
1471 through 1474 of the Internal Revenue Code of 1986, as amended,
that were enacted as part of the Foreign Account Tax Compliance Act,
and the Treasury Regulations or other official interpretations
thereunder (collectively ``FATCA'').

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, FICC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FICC has prepared summaries, set forth in sections A, B
and C below, of the most significant aspects of such statements.\3\
---------------------------------------------------------------------------

    \3\ The Commission has modified the text of the summaries
prepared by the clearing agency.

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

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

Background
    FATCA was enacted on March 18, 2010, as part of the Hiring
Incentives to Restore Employment Act, and became effective, subject to
transition rules, on January 1, 2013. The U.S. Treasury Department
finalized and issued various implementing regulations (``FATCA
Regulations'') on January 17, 2013. FATCA's intent is to curb tax
evasion by U.S. citizens and residents through their use of offshore
bank accounts. FATCA generally requires foreign financial institutions
(``FFIs'') \4\ to become ``participating FFIs'' by entering into
agreements with the Internal Revenue Service (``IRS''). Under these
agreements, FFIs are required to report to the IRS information on U.S.
persons and entities that have (directly or indirectly) accounts with
these FFIs. If an FFI does not enter into such an agreement with the
IRS, FATCA will impose a 30% withholding tax on U.S.-source interest,
dividends and other periodic amounts paid to such ``nonparticipating
FFI'' (``Income Withholding''), as well as on the payment of gross
proceeds arising from the sale, maturity or redemption of securities or
any instrument yielding U.S.-source interest and dividends (``Gross
Proceeds Withholding,'' and, together with Income Withholding, ``FATCA
Withholding''). The 30% FATCA Withholding taxes will apply to payments
made to a nonparticipating FFI acting in any capacity, including
payments made to a nonparticipating FFI that is not the beneficial
owner of the amount paid and acting only as a custodian or other
intermediary with respect to such payment. To the extent that U.S.-
source interest, dividend, and other periodic amount or gross proceeds
payments are due to a nonparticipating FFI in any capacity, a U.S.
payor, such as FICC, transmitting such payments to the nonparticipating
FFI will be liable to the IRS for any amounts of FATCA Withholding that
the U.S. payor should, but does not, withhold and remit to the IRS. For
the reasons described below, FICC is not in a position to accept this
liability and, by making the proposed rule changes set forth herein, is
implementing preventive measures to protect itself against such
liability.
---------------------------------------------------------------------------

    \4\ Non-U.S. financial institutions are referred to as ``foreign
financial institutions'' or ``FFIs'' in the FATCA Regulations.
---------------------------------------------------------------------------

    In addition, under FATCA, a U.S. payor, such as FICC, could be
required to deduct Income Withholding with regard to a participating
FFI if either: (x) the participating FFI makes a statutory election to
shift its withholding responsibility under FATCA to the U.S. payor; or
(y) the U.S. payor is required to ignore the actual recipient and treat
the payment as if made instead to certain owners, principals,
customers, account holders or financial counterparties of the
participating FFI. FICC is not in a position to accept this burden
shift and, by making the proposed rule changes set forth herein, is
implementing preventive measures to protect itself against such a
burden.
    As an alternative to FFIs entering into individual agreements with
the IRS, the U.S. Treasury Department provided another means of
complying with FATCA for FFIs which are resident in Non-U.S.
jurisdictions that enter into intergovernmental agreements (``IGA'')
with the United States.\5\ Generally, such a jurisdiction (``FATCA
Partner'') would pass laws to eliminate the conflicts of law issues
that would otherwise make it difficult for FFIs in its jurisdiction to
collect the information required under FATCA and transfer this
information, directly or indirectly, to the United States. An FFI
resident in a FATCA Partner jurisdiction would either transmit FATCA
reporting to its local competent tax authority, which in turn would
transmit the information to the IRS, or the FFI would be authorized/
required by FATCA Partner law to enter into an FFI agreement and
transmit FATCA reporting directly to the IRS. Under both IGA models,
payments to such FFIs would not be subject to FATCA Withholding so long
as the FFI complies with the FATCA Partner's laws mandated in the IGA.
---------------------------------------------------------------------------

    \5\ As of the date of this proposed rule change filing, the
United Kingdom, Mexico, Ireland, Switzerland, Spain, Norway Denmark,
Italy and Germany have signed or initialed an IGA with the United
States. The U.S. Treasury Department has announced that it is
engaged in negotiations with more than 50 countries and
jurisdictions regarding entering into an IGA.
---------------------------------------------------------------------------

    Under the FATCA Regulations, (A) beginning January 1, 2014, FICC
will be required to do Income Withholding on any payments made to any
nonparticipating FFI approved for membership by FICC as of such date or
thereafter, (B) beginning July 1, 2014, FICC will be required to do
Income Withholding on any payments made to any nonparticipating FFI
approved for membership by FICC prior to January 1, 2014 and (C)
beginning January 1, 2017, FICC will be required to do Gross Proceeds
Withholding on all nonparticipating FFIs, regardless when any such
FFI's membership was approved.
Preparing for Implementation of FATCA
    In preparation for FATCA's implementation, FFIs are being asked to
identify their expected FATCA status as a condition of continuing to do
business. Customary legal agreements in the financial services industry
already contain provisions allocating the risk of any FATCA Withholding
tax that will need to be collected, and requiring that, upon FATCA's
effectiveness, foreign counterparties must certify (and periodically
recertify) their FATCA status using the relevant tax forms that the IRS
has announced it will provide.\6\ Advance disclosure by an FFI client
or counterparty would permit a withholding agent to readily determine
whether it must, under FATCA, withhold on payments it makes to the FFI.
If an FFI fails to provide appropriate compliance documentation to a
withholding agent, such FFI would be presumed to be a nonparticipating
FFI and the withholding agent will be obligated to withhold on certain
payments.
---------------------------------------------------------------------------

    \6\ For example, credit agreements now routinely require foreign
lenders to agree to provide certifications of their FATCA status
under approved IRS forms to U.S. borrowers, and subscription
agreements for alternative investment funds that are anticipated to
earn U.S.-source income are routinely requiring similar covenants.
---------------------------------------------------------------------------

    As it applies to FICC specifically, FATCA will require FICC to
deduct FATCA Withholding on payments to certain members arising from
certain transactions processed by FICC on behalf of such members.\7\
Because FATCA treats any entity holding financial assets for the
account of others as a ``financial institution,'' FICC believes that
almost all of its members which are treated as non-U.S. entities for
federal income tax purposes, including those members that are U.S.
branches of non-U.S. entities, will likely be FFIs under FATCA
(collectively, ``FFI Members'').\8\ As such, FICC will be liable to the
IRS for any failures to withhold correctly under FATCA on payments made
to its FFI Members.
---------------------------------------------------------------------------

    \7\ FFI Members resident in IGA countries, that are compliant
with the terms of applicable IGAs, should not be subject to FATCA
Withholding.
    \8\ Currently, only a small percentage of the Corporation's
members are treated as non-U.S. entities for federal income tax
purposes.
---------------------------------------------------------------------------

    In light of this, FICC has evaluated its existing systems and
services to determine whether and how it may comply with its FATCA
obligations. As a result of this evaluation, FICC has determined that
its existing systems currently cannot process the new FATCA Withholding
obligations with regard to the securities transactions processed by it,
as no similar withholding obligation of this

magnitude has ever been imposed upon it to date, and FICC has therefore
not built its systems to support such an obligation.
    Further, the vast majority of the transactions that are processed
at FICC are processed through its netting and settlement systems at its
GSD and MBSD divisions (the ``Systems''). At GSD, the netting and
settlement system service provides centralized, automated clearance and
guaranteed settlement of eligible U.S. Treasury bills, notes, bonds,
strips and book-entry non-mortgage-backed agency securities. Through
netting, the GSD establishes a single net long or short position for
each participant's daily trading activity in a given security. The
participant's net position is the difference between all long and all
short positions in a given security.
    At MBSD, the mortgage-backed securities trades entering the MBSD
clearing and settlement systems are settled using either the Settlement
Balance Order system (SBO) or the Trade-for-Trade system (TFTD). The
SBO settlement system is MBSD's trade netting system, which nets by
automatically pairing off settlement obligations with like terms, such
as MBS product, coupon rate, maturity and settlement date, on a
multilateral basis, i.e., regardless of contra party identity,
resulting in the fewest possible number of receive/deliver obligations.
Through the Trade-for-Trade settlement system, members are given the
opportunity to settle individual trades on a gross basis, as originally
executed, following matching and comparison of each trade. Further
netting is accomplished through MBSD's CCP Pool Netting service (``Pool
Netting''). Members submit pool details (``Pool Instructs'') into the
Pool Netting system for bilateral matching versus their counterparties'
submissions. As many of the matched Pool Instructs as possible are then
netted by the Pool Netting system. For pools that meet all the
criteria, FICC steps in as the central counter-party to settle the net
pool obligations with its members.
    FICC believes that each division's net settlement functionality
could make FATCA Withholding virtually impossible, or, at the very
least, would create onerous efficiency and liquidity issues for both
FICC and its membership. Undertaking FATCA Withholding, given FICC's
settlement functionality, could require FICC in certain circumstances
to resort to a draw on FICC's clearing fund for GSD or MBSD, as
applicable (``Clearing Fund'') in order to fund FATCA Withholding taxes
with regard to nonparticipating FFI Members in non-FATCA Partner
jurisdictions whenever the net credit owed to such FFI Member is less
than the 30% FATCA tax. For example, if a nonparticipating FFI (in a
non-FATCA Partner jurisdiction) is owed a $100M payment from the sale
of U.S. securities, but such nonparticipating FFI is in a net debit
position at the end of that day because of FICC's net settlement
functionality, there would be no payment to this FFI Member from which
FICC can withhold. In this example, FICC would likely need to fund the
$30M FATCA Withholding tax until such time as the FFI Member can
reimburse FICC and, as FICC has no funds for this purpose, it would
likely require a draw on the Clearing Fund.\9\ FICC would need to
consider an increase in the amount of cash required to be deposited
into the Clearing Fund, either by FFI Members or perhaps all of its
members, which would reduce such member's liquidity and could have
significant systemic effects. The amount of the FATCA Withholding taxes
would be removed from market liquidity, which could lead to increased
risk of member failure and increased financial instability.
---------------------------------------------------------------------------

    \9\ We note that the FATCA Regulations provide that ``clearing
organizations'', which settle money on a net basis, may withhold on
a similar net basis for FATCA purposes. However, it is unclear
whether certain amounts being netted at the Corporation would
qualify for the special FATCA netting rule. Even if the end of day
net settlement amount would qualify as the correct amount to do
FATCA Withholding on, the liquidity risks described herein are still
present. This is because the sheer volume of the Corporation's net
daily payments among the Corporation and members means that
withholding FATCA tax from such net settlement payments, in any
material proportion, would likely reduce liquidity and thus increase
financial instability.
---------------------------------------------------------------------------

    For the reasons explained above and the following additional
reasons, FICC is proposing amendments to its Rules (detailed below) to
implement preventive measures that would generally require all of
FICC's (i) existing members that are treated as Non-U.S. entities for
federal income tax purposes and (ii) any applicants applying to become
members that are treated as Non-U.S. entities for federal income tax
purposes to be participating FFIs:
     Undertaking FATCA Withholding by FICC (even if possible)
would make it economically unfeasible for affected FFI Members to
engage in transactions involving U.S. securities. It would likely also
quickly cause a significant negative impact on such FFI Members'
liquidity because such withholding taxes would be imposed on the very
large sums that FICC pays to such FFI Members. Furthermore, members
would be burdened with extra costs and the negative impact on liquidity
caused by the likely need to substantially increase the amount of cash
required to be deposited into the Clearing Fund.
     The cost of implementing a FATCA Withholding system for a
small number of nonparticipating FFI Members would be substantial and
disproportionate to the related benefit. Under the Model I IGA form and
its executed versions with various FATCA Partners, FICC would not be
required to withhold with regard to FFI residents in such FATCA Partner
jurisdictions. Accordingly, FICC's withholding obligations under FATCA
would effectively be limited to nonparticipating FFI Members in non-
FATCA Partner jurisdictions. Since the cost of developing and
maintaining a complex FATCA Withholding system would be passed on to
FICC's members at large, it may burden members that otherwise comply
with, or are not subject to, FATCA Withholding.
     As briefly noted above, if the proposed rule changes were
not to take effect, in order to avoid counterparty credit risk, FICC
would likely require each of the nonparticipating FFI Members in non-
FATCA Partner jurisdictions to make initial or additional cash deposits
to the Clearing Fund as collateral for the approximate potential FATCA
tax liability of such nonparticipating FFI Member or otherwise adjust
required deposits to the Clearing Fund. The amount of such deposits,
which could amount to billions of dollars, would be removed from market
liquidity.
     From the nonparticipating FFI Member's perspective, having
30% of its payments withheld and sent to the IRS would have a severe
negative impact on such nonparticipating FFI Member's financial status.
In many cases, the gross receipts would be for client accounts, and the
nonparticipating FFI Member would need to make such accounts whole.
Without receipt of full payment for its dispositions, the
nonparticipating FFI Member would not have sufficient assets to fund
its client accounts.
     The proposed rule changes set forth herein should not
create business issues or be onerous to FICC's membership because
requiring FFIs to certify (and to periodically recertify) their FATCA
status, and imposing the costs of non-compliance on them, are becoming
standard market practice in the United States, separate and apart from
membership in FICC.
Proposed Rule Changes
    Managing the risks inherent in executing securities transactions is
a key component of FICC's business. The globalization of financial
markets, the

trading of more complex instruments and the application of new
technology all make risk management more critical and challenging.
FICC's ``risk tolerances'' (i.e., the levels of risk FICC is prepared
to confront, under a range of possible scenarios, in carrying out its
business functions) are determined by the Board of Directors, in
consultation with the Group Chief Risk Officer. FICC uses a combination
of risk management tools, including strict criteria for membership, to
mitigate the risks inherent in its business.
    In line with its risk management focus, FICC has determined that
compliance with FATCA, such that FICC shall not be responsible for
FATCA Withholding, should be a general membership requirement (A) for
all applicants seeking membership at GSD or MBSD, as applicable, that
are treated as non-U.S. entities for federal income tax purposes, and
(B) for all existing FFI Members.\10\ In connection therewith, FICC
proposes to amend its Rules as follows:
---------------------------------------------------------------------------

    \10\ FICC may grant a waiver under certain circumstances,
provided, however, that FICC will not grant a waiver if it causes
FICC to be obligated to withhold under FATCA on gross proceeds from
the sale or other disposition of any property.
---------------------------------------------------------------------------

     Amend GSD Rule 1 and MBSD Rule 1 to add ``FATCA'', ``FATCA
Certification'', ``FATCA Compliance Date''\11\, ``FATCA Compliant'' and
``FFI Member'', as defined terms;
---------------------------------------------------------------------------

    \11\ Although Income Withholding with regard to FFI Members
approved for membership by the Corporation prior to January 1, 2014
is first required under FATCA beginning July1, 2014, the proposed
amendments to the GSD Rules and MBSD Rules would require such
existing FFI Members to be FATCA compliant approximately 60 days
prior to July 1, 2014 in order for the Corporation to comply with
its disciplinary and notice processes as set forth in its Rules.
---------------------------------------------------------------------------

     Amend GSD Rule 2A, Section 2(a)(v) and MBSD Rule 2A,
Section 1 to (1) require foreign members to certify to FICC that they
are FATCA Compliant and (2) add FATCA Compliance as a qualification
requirement for any applicant that will be an FFI Member;
     Amend GSD Rule 2A Section 5 and MBSD Rule 2A Section 3 to
add that each applicant must complete and deliver a FATCA Certification
to FICC as part of its membership application unless FICC has waived
this requirement with regard to membership type;
     Amend GSD Rule 2A Section 6 and MBSD Rule 2A Section 4 to
add FATCA Compliance as a qualification requirement for any applicant
that will be an FFI Member;
     Amend GSD Rule 3, Section 7 and MBSD Rule 3, Section 6 to
specify that failure to be FATCA Compliant creates a duty upon an FFI
Member (both new and existing) to inform FICC;
     Amend GSD Rule 3, Section 9 and MBSD Rule 3, Section 8 to
require that all FFI Members (both new and existing), in general: (i)
Agree not to conduct any transaction or activity through FICC if such
FFI Member is not FATCA Compliant, (ii) certify and, as required under
the timelines set forth under FATCA, periodically recertify, to FICC
that they are FATCA Compliant; and (iii) indemnify FICC for any losses
sustained by FICC resulting from such FFI Member's failure to be FATCA
Compliant.
     FICC believes the proposed rule changes are consistent
with the requirements of the Exchange Act. In particular, the proposed
rule changes are consistent with Section 17A(b)(3)(F) of the Exchange
Act\12\ because they promote the prompt and accurate clearing and
settlement of securities transactions by eliminating an uncertainty in
payment settlement that would arise if FICC were subject to FATCA
Withholding obligations under FATCA. The proposed rule changes are also
consistent with Section 17A(b)(3)(D) of the Exchange Act\13\ because
they provide for the equitable allocation of reasonable dues, fees, and
other charges among FICC's members. Specifically, the proposed rule
changes allow FICC to comply with FATCA Regulations without developing
and maintaining a complex FATCA Withholding system, the cost of which,
as discussed above, would be would be passed on to FICC's members at
large for the benefit of a small number of nonparticipating FFI
Members.
---------------------------------------------------------------------------

    \12\ 12 U.S.C. 78q-1(b)(3)(F).
    \13\ 12 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    FICC does not believe that the proposed rule change will have any
negative impact, or impose any burden, on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received from Members, Participants, or Others

    Written comments relating to the proposed rule changes have not yet
been solicited or received. FICC will notify the Commission of any
written comments received by FICC.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

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 Exchange 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-FICC-2013-04 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-FICC-2013-04. 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 the filing also will be available
for inspection and copying at the principal office of FICC and on
FICC's Web site (http://www.dtcc.com/legal/rule--filings/

ficc/2013.php). 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-
FICC-2013-04 and should be submitted on or before May 29, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-10847 Filed 5-7-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: March 13, 2006 (Volume 71, Number 48)]
[Notices]
[Page 12692-12693]
[DOCID:fr13mr06-48]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER06-441-000]

Decatur Energy Center, LLC; Notice of Issuance of Order

March 6, 2006.
    Decatur Energy Center, LLC (Decatur Energy) filed an application
for market-based rate authority, with an accompanying tariff. The
proposed market-based rate tariff provides for the sales of energy,
capacity and ancillary services at market-based rates. Decatur Energy
also requested waiver of various Commission regulations. In particular,
Decatur Energy requested that the Commission grant blanket approval
under 18 CFR part 34 of all future issuances of securities and
assumptions of liability by Decatur Energy.
    On February 6, 2006, pursuant to delegated authority, the Director,
Division of Tariffs and Market Development--West, granted the request
for blanket approval under part 34. The Director's order also stated
that the Commission would publish a separate notice in the Federal
Register establishing a period of time for the filing of protests.
Accordingly, any person desiring to be heard or to protest the blanket
approval of issuances of securities or assumptions of liability by
Decatur Energy should file a motion to intervene or protest with the
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure. 18 CFR 385.211, 385.214
(2004).
    Notice is hereby given that the deadline for filing motions to
intervene or protest is March 17, 2006.
    Absent a request to be heard in opposition by the deadline above,
Decatur Energy is authorized to issue

securities and assume obligations or liabilities as a guarantor,
indorser, surety, or otherwise in respect of any security of another
person; provided that such issuance or assumption is for some lawful
object within the corporate purposes of Decatur Energy, compatible with
the public interest, and is reasonably necessary or appropriate for
such purposes.
    The Commission reserves the right to require a further showing that
neither public nor private interests will be adversely affected by
continued approval of Decatur Energy's issuances of securities or
assumptions of liability.
    Copies of the full text of the Director's Order are available from
the Commission's Public Reference Room, 888 First Street, NE.,
Washington, DC 20426. The Order may also be viewed on the Commission's
Web site at http://www.ferc.gov, using the eLibrary link. Enter the

docket number excluding the last three digits in the docket number
filed to access the document. Comments, protests, and interventions may
be filed electronically via the Internet in lieu of paper. See, 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings.

Magalie R. Salas,
Secretary.
[FR Doc. E6-3488 Filed 3-10-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 173 (Monday, September 8, 2014)]
[Notices]
[Pages 53176-53178]
[FR Doc No: 2014-21207]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RD14-7-000]

Commission Information Collection Activities (Ferc-725y); Comment
Request

AGENCY: Federal Energy Regulatory Commission.

ACTION: Comment request.

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

SUMMARY: In compliance with the requirements of the Paperwork Reduction
Act of 1995, 44 U.S.C. 3507(a)(1)(D), the Federal Energy Regulatory
Commission (Commission or FERC) is submitting the information
collection FERC-725Y, Mandatory Reliability Standard PER-005-2
(Operations Personnel Training), to the Office of Management and Budget
(OMB) for review of the information collection requirements. Any
interested person may file comments directly with OMB and should
address a copy of those comments to the Commission as explained below.
The Commission solicited comments on the information collection
associated with PER-005-2 in an order published in the Federal Register
(79 FR 36305, 6/26/2014). FERC received no comments on the information
collection and is making this notation in its submission to OMB.

DATES: Comments on the collection of information are due by October 8,
2014.

ADDRESSES: Comments filed with OMB, identified by collection FERC-725Y,
should be sent via email to the Office of Information and Regulatory
Affairs<EMAIL_ADDRESS>Attention: Federal Energy
Regulatory Commission Desk Officer. The Desk Officer may also be
reached via telephone at<PHONE_NUMBER>.
    A copy of the comments should also be sent to the Federal Energy
Regulatory Commission, identified by the Docket No. RD14-7-000, by
either of the following methods:
     eFiling at Commission's Web site: http://www.ferc.gov/docs-filing/efiling.asp.
     Mail/Hand Delivery/Courier: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
    Instructions: All submissions must be formatted and filed in
accordance with submission guidelines at: http://www.ferc.gov/help/submission-guide.asp. For user assistance contact FERC Online Support
by email at<EMAIL_ADDRESS>or by phone at:<PHONE_NUMBER>
(toll-free), or<PHONE_NUMBER> for TTY.

    Docket: Users interested in receiving automatic notification of
activity in this docket or in viewing/downloading comments and
issuances in this docket may do so at http://www.ferc.gov/docs-filing/docs-filing.asp.

FOR FURTHER INFORMATION: Ellen Brown may be reached by email at
<EMAIL_ADDRESS>by telephone at<PHONE_NUMBER>, and by fax at
(202) 273-0873.

SUPPLEMENTARY INFORMATION:
    Title: FERC-725Y,\1\ Mandatory Reliability Standard PER-005-2
(Operations Personnel Training).
---------------------------------------------------------------------------

    \1\ In the Order issued 6/19/2014, the proposed information
collection was included in FERC-725A (Mandatory Reliability
Standards for the Bulk-Power System) under OMB Control No. 1902-
0244. In this notice and the related Paperwork Reduction Act package
to be submitted to the Office of Management and Budget for review
and approval, the information collection will be included in a new
FERC-725Y (rather than FERC-725A).
---------------------------------------------------------------------------

    OMB Control No.: To Be Determined.
    Type of Request: Three-year approval of the FERC-725Y information
collection requirements.
    Abstract: Reliability Standard PER-005-2 (Operations Personnel
Training Standard) implements the Congressional mandate of the Energy
Policy Act of 2005 to develop mandatory and enforceable Reliability
Standards to better ensure the reliability of the nation's Bulk-Power
System. Specifically, the purpose of PER-005-2 \2\ is to ensure that
personnel performing or supporting real-time operations on the Bulk
Electric System (BES) are trained using a systematic approach. The
Reliability Standard requires entities to maintain records subject to
review by the Commission and NERC to ensure compliance with the
Reliability Standard.
---------------------------------------------------------------------------

    \2\ Reliability Standard PER-005-2 expands the scope of the
current Reliability Standard in order to address the Commission's
directives in Order Nos. 693 and 742.
---------------------------------------------------------------------------

    PER-005-2 contains six Requirements:
     R1 requiring reliability coordinators, balancing
authorities, and transmission operators to develop and implement a
training program for system operators
     R2 requiring transmission owners to develop and implement
a training program for system operators
     R3 requiring reliability coordinators, balancing
authorities, transmission operators and transmission owners to verify
the capabilities of their identified personnel
     R4 requiring reliability coordinators, balancing
authorities, transmission operators and transmission owners to provide
those personnel with emergency operations training using simulation
technology
     R5 requiring reliability coordinators, balancing
authorities, and transmission operators to develop and implement
training for their operations support personnel
     R6 requiring applicable generator operators to develop and
implement training for certain of their dispatch personnel at a
centrally located dispatch center.
    Type of Respondents: Reliability coordinators, balancing
authorities, transmission operators, transmission owners, and generator
owners.
    Estimate of Annual Burden \3\: Our estimate below regarding the
number of respondents is based on the NERC compliance registry as of
April 30, 2014. According to the NERC compliance registry, NERC has
registered 15 reliability coordinators, 107 balancing authorities, 182
transmission operators, 337 transmission owners and 848 generator
operators. However, under NERC's compliance registration program,
entities may be registered for multiple functions, so these numbers
incorporate some double counting. The number of unique entities
responding will be approximately 387 entities registered as a
reliability coordinator, balancing authority, transmission operator,
transmission owner, or generator operator.
---------------------------------------------------------------------------

    \3\ Burden is defined as the total time, effort, or financial
resources expended by persons to generate, maintain, retain, or
disclose or provide information to or for a Federal agency. For
further explanation of what is included in the information
collection burden, reference 5 Code of Federal Regulations 1320.3.
---------------------------------------------------------------------------

    The Commission estimates the additional annual reporting burden and
cost as follows:
---------------------------------------------------------------------------

    \4\ TO=Transmission Owner; RC=Reliability Coordinator;
BA=Balancing Authority; TOP=Transmission Operator; GOP=Generator
Operator.
    \5\ The estimated hourly costs (salary plus benefits) are based
on Bureau of Labor and Statistics (BLS) information (available at
http://bls.gov/oes/current/naics3221000.htm#17-0000) for an
electrical engineer ($59.62/hour for review and documentation), and
for a file clerk ($28.95/hour for record retention).
    \6\ Not all transmission owners are expected to have personnel
who will be subject to the revised personnel training requirements,
but this estimate conservatively includes all registered TOs. The
same approach is taken with respect to generator operators.
    \7\ Some transmission owners are also generator operators. To
eliminate double counting some entities, this figure reflects the
number of unique entities (1,050) within the group of TOs and GOPs.
That approach is used throughout the table.

                                                     FERC-725Y, as Implemented in Docket No. RD14-7
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Annual number                  Average burden and     Total annual
                                  Number and type of respondents   of responses    Total number    cost per response   burden hours and      Cost per
                                                \4\               per respondent   of responses           \5\          total annual cost    respondent
                                  (1)...........................             (2)                  (3)...............  (1) x (2) x (3)...
--------------------------------------------------------------------------------------------------------------------------------------------------------
(One-time) Development of a       TO (337) \6\..................               1             337  15 hrs. and $59.62/ 5,055 hours and            $894.30
 training program and materials,                                                                   hour.               $301,379.10.
 and task list [R2].
(One-time) Development of a       RC, BA, TOP (216).............               1             216  15 hrs. and $59.62/ 3,240 hours and             894.30
 training program [R5].                                                                            hour.               $193,168.80.
(One-time) Development of a       GOP (848).....................               1             848  15 hrs. and $59.62/ 12,720 hours and            894.30
 training program [R6].                                                                            hour.               $758,366.40.
(Ongoing) Annual Evaluation and   TO (337), GOP (848)...........               1       \7\ 1,050  6 hrs. and $59.62/  6,300 hours and             357.72
 update of training program and                                                                    hour.               $375,606.
 task list [R2 and R6].

(Ongoing) Retention of records    TO (337), GOP (848)...........               1           1,050  10 hrs. and $28.95/ 10,500 hrs. and             289.50
 [M2, M6, and C.1.3].                                                                              hour.               $303,975.
(Ongoing) Verification and        TO (337)......................               1             337  10 hrs. and $28.95/ 3,370 hrs. and              289.50
 retention of evidence of                                                                          hour.               $97,561.50.
 capabilities of personnel [R3,
 M3, C1.3], and creation and
 retention of records on
 simulation training [R4 and M4].
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Comments: Comments are invited on: (1) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden and
cost of the collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility and clarity of the information collection; and (4) ways to
minimize the burden of the collection of information on those who are
to respond, including the use of automated collection techniques or
other forms of information technology.

    Dated: August 29, 2014.
Kimberly D. Bose,
Secretary.
[FR Doc. 2014-21207 Filed 9-5-14; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 30 (Tuesday, February 13, 2018)]
[Proposed Rules]
[Pages 6136-6141]
[FR Doc No: 2018-02815]

=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 55

[EPA-R02-OAR-2017-0723; FRL-9974-27-Region 2]

Outer Continental Shelf Air Regulations Update To Include New
Jersey State Requirements

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is proposing to
update a portion of the Outer Continental Shelf (OCS) Air Regulations
applying to OCS sources located within 25 miles of states' seaward
boundaries which must

be promulgated into the regulations and updated periodically to remain
consistent with the requirements on the corresponding onshore area
(COA), which is typically the state geographically closest to the OCS
source. The portion of the OCS air regulations that is being updated
pertains to the requirements for OCS sources for which the State of New
Jersey is the COA. The intended effect of approving the OCS
requirements for the State of New Jersey is to regulate emissions from
OCS sources in accordance with the requirements onshore. The
requirements discussed below are proposed to be incorporated by
reference into the Code of Federal Regulations and are listed in the
appendix to the OCS air regulations.

DATES: Written comments must be received on or before March 15, 2018.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R02-OAR-2017-0723 at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. The EPA may publish any
comment received to its public docket. Do not submit electronically any
information you consider to be Confidential Business Information (CBI)
or other information whose disclosure is restricted by statute.
Multimedia submissions (audio, video, etc.) must be accompanied by a
written comment. The written comment is considered the official comment
and should include discussion of all points you wish to make. The EPA
will generally not consider comments or comment contents located
outside of the primary submission (i.e., on the web, cloud, or other
file sharing system). For additional submission methods, the full EPA
public comment policy, information about CBI or multimedia submissions,
and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Viorica Petriman, Air Programs Branch,
Permitting Section, U.S. Environmental Protection Agency, Region 2, 290
Broadway, New York, New York 10007,<PHONE_NUMBER>,
[email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, the terms ``we,''
``us,'' and ``our'' refer to the EPA.

Table of Contents

I. Background Information
    Why is the EPA taking this action?
II. The EPA's Evaluation
    What criteria were used to evaluate rules submitted to update 40
CFR part 55?
III. What action is the EPA proposing to take?
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

I. Background Information

Why is the EPA taking this action?

    On September 4, 1992, EPA promulgated 40 CFR part 55,\1\ which
established requirements to control air pollution from the Outer
Continental Shelf (OCS) sources in order to attain and maintain Federal
and State ambient air quality standards (AAQS) and to comply with the
provisions of part C of title I of the CAA. Part 55 applies to all OCS
sources offshore of the states except those located in the Gulf of
Mexico west of 87.5 degrees longitude.
---------------------------------------------------------------------------

    \1\ The reader may refer to the Proposed Rulemaking, December 5,
1991 (56 FR 63774), and the preamble to the final rule promulgated
September 4, 1992 (57 FR 40792) for further background and
information on the OCS regulations.
---------------------------------------------------------------------------

    Section 328(a) of the CAA requires that for such sources located
within 25 miles of a State's seaward boundary, the requirements shall
be the same as would be applicable if the sources were located in the
corresponding onshore area (COA). Because the OCS requirements are
based on onshore requirements, and onshore requirements may change,
section 328(a)(1) requires that the EPA update the OCS requirements as
necessary to maintain consistency with onshore requirements.
    To comply with this statutory mandate, the EPA must incorporate by
reference applicable rules in effect for onshore sources into part 55.
This limits EPA's flexibility in deciding which requirements will be
incorporated into 40 CFR part 55 and prevents EPA from making
substantive changes to the requirements it incorporates. As a result,
EPA may be incorporating rules into 40 CFR part 55 that do not conform
to all of EPA's state implementation plan (SIP) guidance or certain
requirements of the CAA. Inclusion in the OCS rule does not imply that
a rule meets the requirements of the CAA for SIP approval, nor does it
imply that the rule will be approved by EPA for inclusion in the SIP.

II. The EPA's Evaluation

What criteria were used to evaluate rules to update 40 CFR part 55?

    In updating 40 CFR part 55, the EPA reviewed the New Jersey
Department of Environmental Protection (``NJDEP'')'s air rules
currently in effect, to ensure that they are rationally related to the
attainment or maintenance of Federal and State AAQS or part C of title
I of the Act and that they are not designed expressly to prevent
exploration and development of the OCS and that they are applicable to
OCS sources. 40 CFR 55.1. The EPA has also evaluated the rules to
ensure they are not arbitrary and capricious. 40 CFR 55.12(e). The EPA
has excluded New Jersey's administrative or procedural rules,\2\ and
requirements that regulate toxics which are not related to the
attainment and maintenance of Federal and State AAQS.
---------------------------------------------------------------------------

    \2\ Each COA, which has been delegated the authority to
implement and enforce part 55, will use its administrative and
procedural rules as onshore. However, in those instances where EPA
has not delegated authority to implement and enforce part 55, as in
New Jersey, EPA will use its own administrative and procedural
requirements to implement the substantive requirements. See 40 CFR
55.14(c)(4).
---------------------------------------------------------------------------

III. What action is EPA proposing to take?

    To comply with the statutory mandate of Section 328(a)(1) of the
CAA, the EPA must incorporate by reference all relevant state rules
into part 55 so they can be applied to OCS sources located offshore. 40
CFR 55.12 specifies certain times at which part 55's incorporation by
reference of a state's rules must be updated. One such time a
consistency update must occur is when any OCS source applicant submits
a Notice of Intent (NOI) under 40 CFR 55.4 for a new or a modified OCS
source. 40 CFR 55.4(a) requires that any OCS source applicant must
submit to EPA a NOI before performing any physical change or change in
method of operation that results in an increase in emissions. EPA must
conduct any necessary consistency update when it receives an NOI, and
prior to receiving any application for a preconstruction permit from
the OCS source applicant. 40 CFR 55.6(b)(2) and 55.12(f).
    On December 21, 2017, the EPA received a NOI for a new OCS source
off the coast of New Jersey. In today's action, the EPA is proposing to
update the ``New Jersey'' section of Appendix A to 40 CFR part 55 to
incorporate by reference the following relevant New Jersey air
pollution control rules that are currently in effect:
    Chapter 27 Subchapter 2--Control and Prohibition of Open Burning
(Effective 6/20/1994),
    N.J.A.C. 7:27-2.1 through 2.4,7:27-2.6 through 2.8, and 7:27-2.12
through 2.13;
    Chapter 27 Subchapter 3--Control and Prohibition of Smoke from
Combustion of Fuel (Effective 2/4/2002);
    Chapter 27 Subchapter 4--Control and Prohibition of Particles from

Combustion of Fuel (Effective 4/20/2009);
    Chapter 27 Subchapter 5--Prohibition of Air Pollution (Effective
10/12/1977);
    Chapter 27 Subchapter 6--Control and Prohibition of Particles from
Manufacturing Processes (Effective 6/12/1998);
    Chapter 27 Subchapter 7--Sulfur (Effective 11/6/2017), N.J.A.C.
7:27-7.1 and 7.2;
    Chapter 27 Subchapter 8--Permits and Certificates for Minor
Facilities (and Major Facilities without an Operating Permit)
(Effective 1/16/2018), N.J.A.C. 7:27-8.1 through 8.9, 7:27-8.11 through
8.21, 7:27-8.23 through 8.25, 7:27-8.27, and Appendix 1;
    Chapter 27 Subchapter 9--Sulfur in Fuels (Effective 9/20/2010);
    Chapter 27 Subchapter 10--Sulfur in Solid Fuels (Effective 9/6/
2011);
    Chapter 27 Subchapter 11--Incinerators (Effective 5/4/1998);
    Chapter 27 Subchapter 12--Prevention and Control of Air Pollution
Emergencies (Effective 5/20/1974);
    Chapter 27 Subchapter 16--Control and Prohibition of Air Pollution
by Volatile Organic Compounds (Effective 1/16/2018), N.J.A.C. 7:27-16.1
through 16.10, 7:27-16.12 through 16.13, 7:27-16.16 through 16.23,
7:27-16.27, and Appendix I and II;
    Chapter 27 Subchapter 18--Control and Prohibition of Air Pollution
from New or Altered Sources Affecting Ambient Air Quality (Emission
Offset Rules) (Effective 11/6/2017);
    Chapter 27 Subchapter 19--Control and Prohibition of Air Pollution
from Oxides of Nitrogen (Effective 1/16/2018), N.J.A.C. 7:27-19.1
through 19.8, 7:27-19.11, 7:27-19.13 through 19.21, 7:27-19.23, and
7:27-19.25 through 19.26;
    Chapter 27 Subchapter 20--Used Oil Combustion (Effective 9/6/2011);
    Chapter 27 Subchapter 21--Emission Statements (Effective 1/16/
2018);
    Chapter 27 Subchapter 22--Operating Permits (Effective 1/16/2018);
    Chapter 27B Subchapter 1--Sampling and Analytical Procedures for
Determining Emissions of Particles from Manufacturing Processes and
from Combustion of Fuels (Effective 6/21/1976);
    Chapter 27B Subchapter 2--Procedures for Visual Determination of
the Opacity (Percent) and Shade or Appearance (Ringelmann Number) of
Emissions from Sources (Effective 6/21/1976); and
    Chapter 27B Subchapter 3--Air Test Method 3: Sampling and
Analytical Procedures for the Determination of Volatile Organic
Compounds from Source Operations (Effective 12/1/2008).

IV. Incorporation by Reference

    In this rule, the EPA is proposing to include in a final EPA rule
regulatory text that includes incorporation by reference. In accordance
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by
reference the NJDEP air rules that are applicable to OCS sources and
which are currently in effect. These regulations are described in
Section III (``What Action is EPA Proposing to Take?'') of this
preamble. The EPA has made, and will continue to make, these materials
generally available through www.regulations.gov and at the EPA Region 2
Office. Please contact the person identified in the FOR FURTHER
INFORMATION CONTACT section of this preamble for more information.

V. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to establish
requirements to control air pollution from OCS sources located within
25 miles of states' seaward boundaries that are the same as onshore air
control requirements. To comply with this statutory mandate, the EPA
must incorporate applicable onshore rules into part 55 as they exist
onshore. 42 U.S.C. 7627(a)(1); 40 CFR 55.12. Thus, in promulgating OCS
consistency updates, the EPA's role is to maintain consistency between
OCS regulations and the regulations of onshore areas, provided that
they meet the criteria of the Clean Air Act. Accordingly, this action
simply updates the existing OCS requirements to make them consistent
with requirements onshore, without the exercise of any policy
discretion by the EPA. For that reason, this proposed action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993); and 13563 (76 FR 3821, January
21, 2011);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded Mandate
Reform Act of 1995 (Pub. L. 04-4);
     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 the EPA with the discretionary authority
to address, as appropriate, disproportionate human health or
environmental effects, using practicable and legally permissible
methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this proposed rule does not have tribal implications
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes, nor does it impose
substantial direct costs on tribal governments, nor preempt tribal law.

List of Subjects in 40 CFR Part 55

    Environmental protection, Administrative practice and procedures,
Air pollution control, Hydrocarbons, Incorporation by reference,
Intergovernmental relations, Nitrogen dioxide, Nitrogen oxides, Outer
Continental Shelf, Ozone, Particulate matter, Permits, Reporting and
recordkeeping requirements, Sulfur oxides.

    Dated: January 31, 2018.
Peter D. Lopez,
Regional Administrator, Region 2.

    For the reasons set out in the preamble, title 40 of the Code of
Federal Regulations, part 55, is proposed to be amended as follows:

PART 55--OUTER CONTINENTAL SHELF AIR REGULATIONS

0
1. The authority citation for 40 CFR part 55 continues to read as
follows:

    Authority: Section 328 of the Clean Air Act (42 U.S.C. 7401, et
seq.) as amended by Public Law 101-549.

0
2. Section 55.14 is amended by revising the sixth sentence in paragraph
(e) introductory text and paragraph (e)(15)(i)(A) to read as follows:

Sec.  55.14   Requirements that apply to OCS sources located within 25
miles of States' seaward boundaries, by State.

* * * * *
    (e) State and local requirements. * * * Copies of rules pertaining
to particular states or local areas may be inspected or obtained from
the EPA Docket Center--Public Reading Room, EPA West Building, Room
3334 1301 Constitution Avenue NW, Washington, DC 20004 or the
appropriate EPA regional offices: U.S. EPA, Region 1 (Massachusetts)
One Congress Street, Boston, MA 02114-2023; U.S. EPA, Region 2 (New
Jersey and New York), 290 Broadway, New York, NY 10007-1866; U.S. EPA,
Region 3 (Delaware), 1650 Arch Street, Philadelphia, PA 19103, (215)
814-5000; U.S. EPA, Region 4 (Florida and North Carolina), 61 Forsyth
Street, Atlanta, GA 30303; U.S. EPA, Region 9 (California), 75
Hawthorne Street, San Francisco, CA 94105; and U.S. EPA, Region 10
(Alaska), 1200 Sixth Avenue, Seattle, WA 98101. * * *
* * * * *
    (15) * * *
    (i) * * *
    (A) State of New Jersey Requirements Applicable to OCS Sources,
January 16, 2018.
* * * * *
0
3. Appendix A to part 55 is amended by revising paragraph (a)(1) under
the heading ``New Jersey'' to read as follows:

Appendix A to Part 55--Listing of State and Local Requirements
Incorporated By Reference Into 40 CFR Part 55, By State

* * * * *
    NEW JERSEY
    (a) * * *
    (1) The following State of New Jersey requirements are
applicable to OCS Sources, as of January 16, 2018. New Jersey State
Department of Environmental Protection--New Jersey Administrative
Code. The following sections of Title 7:

Chapter 27 Subchapter 2--Control and Prohibition of Open Burning
(Effective 6/20/1994)

N.J.A.C. 7:27-2.1. Definitions
N.J.A.C. 7:27-2.2. Open burning for salvage operations
N.J.A.C. 7:27-2.3. Open burning of refuse
N.J.A.C. 7:27-2.4. General provisions
N.J.A.C. 7:27-2.6. Prescribed burning
N.J.A.C. 7:27-2.7. Emergencies
N.J.A.C. 7:27-2.8. Dangerous material
N.J.A.C. 7:27-2.12. Special permit
N.J.A.C. 7:27-2.13. Fees

Chapter 27 Subchapter 3--Control and Prohibition of Smoke From
Combustion of Fuel (Effective 2/4/2002)

N.J.A.C. 7:27-3.1. Definitions
N.J.A.C. 7:27-3.2. Smoke emissions from stationary indirect heat
exchangers
N.J.A.C. 7:27-3.3. Smoke emissions from marine installations
N.J.A.C. 7:27-3.4. Smoke emissions from the combustion of fuel in
mobile sources
N.J.A.C. 7:27-3.5. Smoke emissions from stationary internal
combustion engines and stationary turbine engines
N.J.A.C. 7:27-3.6. Stack test
N.J.A.C. 7:27-3.7. Exceptions

Chapter 27 Subchapter 4--Control and Prohibition of Particles From
Combustion of Fuel (Effective 4/20/2009)

N.J.A.C. 7:27-4.1. Definitions
N.J.A.C. 7:27-4.2. Standards for the emission of particles
N.J.A.C. 7:27-4.3. Performance test principle
N.J.A.C. 7:27-4.4. Emissions tests
N.J.A.C. 7:27-4.6. Exceptions

Chapter 27 Subchapter 5--Prohibition of Air Pollution (Effective 10/12/
1977)

N.J.A.C. 7:27-5.1. Definitions
N.J.A.C. 7:27-5.2. General provisions

Chapter 27 Subchapter 6--Control and Prohibition of Particles From
Manufacturing Processes (Effective 6/12/1998)

N.J.A.C. 7:27-6.1. Definitions
N.J.A.C. 7:27-6.2. Standards for the emission of particles
N.J.A.C. 7:27-6.3. Performance test principles
N.J.A.C. 7:27-6.4. Emissions tests
N.J.A.C. 7:27-6.5. Variances
N.J.A.C. 7:27-6.7. Exceptions

Chapter 27 Subchapter 7--Sulfur (Effective 11/6/2017)

N.J.A.C. 7:27-7.1. Definitions
N.J.A.C. 7:27-7.2. Control and prohibition of air pollution from
sulfur compounds

Chapter 27 Subchapter 8--Permits and Certificates for Minor Facilities
(and Major Facilities Without an Operating Permit) (Effective 1/16/
2018)

N.J.A.C. 7:27-8.1. Definitions
N.J.A.C. 7:27-8.2. Applicability
N.J.A.C. 7:27-8.3. General provisions
N.J.A.C. 7:27-8.4. How to apply, register, submit a notice, or renew
N.J.A.C. 7:27-8.5. Air quality impact analysis
N.J.A.C. 7:27-8.6. Service fees
N.J.A.C. 7:27-8.7. Operating certificates
N.J.A.C. 7:27-8.8. General permits
N.J.A.C. 7:27-8.9. Environmental improvement pilot tests
N.J.A.C. 7:27-8.11. Standards for issuing a permit
N.J.A.C. 7:27-8.12. State of the art
N.J.A.C. 7:27-8.13. Conditions of approval
N.J.A.C. 7:27-8.14. Denials
N.J.A.C. 7:27-8.15. Reporting requirements
N.J.A.C. 7:27-8.16. Revocation
N.J.A.C. 7:27-8.17. Changes to existing permits and certificates
N.J.A.C. 7:27-8.18. Permit revisions
N.J.A.C. 7:27-8.19. Compliance plan changes
N.J.A.C. 7:27-8.20. Seven-day notice changes
N.J.A.C. 7:27-8.21. Amendments
N.J.A.C. 7:27-8.23. Reconstruction
N.J.A.C. 7:27-8.24. Special provisions for construction but not
operation
N.J.A.C. 7:27-8.25. Special provisions for pollution control
equipment or pollution prevention process modifications
N.J.A.C. 7:27-8.27. Special facility-wide permit provisions

Appendix 1

Chapter 27 Subchapter 9--Sulfur in Fuels (Effective 9/20/2010)

N.J.A.C. 7:27-9.1. Definitions
N.J.A.C. 7:27-9.2. Sulfur content standards
N.J.A.C. 7:27-9.3. Exemptions
N.J.A.C. 7:27-9.4. Waiver of air quality modeling

Chapter 27 Subchapter 10--Sulfur in Solid Fuels (Effective 9/6/2011)

N.J.A.C. 7:27-10.1. Definitions
N.J.A.C. 7:27-10.2. Sulfur contents standards
N.J.A.C. 7:27-10.3. Expansion, reconstruction or construction of
solid fuel burning units
N.J.A.C. 7:27-10.4. Exemptions
N.J.A.C. 7:27-10.5. SO2 emission rate determinations

Chapter 27 Subchapter 11--Incinerators (Effective 5/4/1998)

N.J.A.C. 7:27-11.1. Definitions
N.J.A.C. 7:27-11.2. Construction standards
N.J.A.C. 7:27-11.3. Emission standards
N.J.A.C. 7:27-11.4. Permit to construct; certificate to operate
N.J.A.C. 7:27-11.5. Operation
N.J.A.C. 7:27-11.6. Exceptions

Chapter 27 Subchapter 12--Prevention and Control of Air Pollution
Emergencies (Effective 5/20/1974)

N.J.A.C. 7:27-12.1. Definitions
N.J.A.C. 7:27-12.2. Emergency criteria
N.J.A.C. 7:27-12.3. Criteria for emergency termination
N.J.A.C. 7:27-12.4. Standby plans
N.J.A.C. 7:27-12.5. Standby orders
Table I Emission Reduction Objectives
Table II Emission Reduction Objectives
Table III Emission Reduction Objectives

Chapter 27 Subchapter 16--Control and Prohibition of Air Pollution by
Volatile Organic Compounds (Effective 1/16/2018)

N.J.A.C. 7:27-16.1. Definitions
N.J.A.C. 7:27-16.1A. Purpose, scope, applicability, and severability
N.J.A.C. 7:27-16.2. VOC stationary storage tanks
N.J.A.C. 7:27-16.3. Gasoline transfer operations
N.J.A.C. 7:27-16.4. VOC transfer operations, other than gasoline
N.J.A.C. 7:27-16.5. Marine tank vessel loading and ballasting
operations
N.J.A.C. 7:27-16.6. Open top tanks and solvent cleaning operations
N.J.A.C. 7:27-16.7. Surface coating and graphic arts operations
N.J.A.C. 7:27-16.8. Boilers
N.J.A.C. 7:27-16.9. Stationary combustion turbines
N.J.A.C. 7:27-16.10. Stationary reciprocating engines
N.J.A.C. 7:27-16.12. Surface coating operations at mobile equipment
repair and refinishing facilities
N.J.A.C. 7:27-16.13. Flares
N.J.A.C. 7:27-16.16. Other source operations

N.J.A.C. 7:27-16.17. Alternative and facility-specific VOC control
requirements
N.J.A.C. 7:27-16.18. Leak detection and repair
N.J.A.C. 7:27-16.19. Application of cutback and emulsified asphalts
N.J.A.C. 7:27-16.21. Natural gas pipelines
N.J.A.C. 7:27-16.22. Emission information, record keeping and
testing
N.J.A.C. 7:27-16.23. Procedures for demonstrating compliance
N.J.A.C. 7:27-16.27. Exceptions

Appendix I

Appendix II

Chapter 27 Subchapter 18--Control and Prohibition of Air Pollution From
New or Altered Sources Affecting Ambient Air Quality (Emission Offset
Rules) (Effective 11/6/2017)

N.J.A.C. 7:27-18.1. Definitions
N.J.A.C. 7:27-18.2. Facilities subject to this subchapter
N.J.A.C. 7:27-18.3. Standards for issuance of permits
N.J.A.C. 7:27-18.4. Air quality impact analysis
N.J.A.C. 7:27-18.5. Standards for use of emission reductions as
emission offsets
N.J.A.C. 7:27-18.6. Emission offset postponement
N.J.A.C. 7:27-18.7. Determination of a net emission increase or a
significant net emission increase
N.J.A.C. 7:27-18.8. Banking of emission reductions
N.J.A.C. 7:27-18.9. Secondary emissions
N.J.A.C. 7:27-18.10. Exemptions
N.J.A.C. 7:27-18.12. Civil or criminal penalties for failure to
comply

Chapter 27 Subchapter 19--Control and Prohibition of Air Pollution from
Oxides of Nitrogen (Effective 1/16/2018)

N.J.A.C. 7:27-19.1. Definitions
N.J.A.C. 7:27-19.2. Purpose, scope and applicability
N.J.A.C. 7:27-19.3. General provisions
N.J.A.C. 7:27-19.4. Boilers serving electric generating units
N.J.A.C. 7:27-19.5. Stationary combustion turbines
N.J.A.C. 7:27-19.6. Emissions averaging
N.J.A.C. 7:27-19.7. Industrial/commercial/institutional boilers and
other indirect heat exchangers
N.J.A.C. 7:27-19.8. Stationary reciprocating engines
N.J.A.C. 7:27-19.11. Emergency generators--recordkeeping
N.J.A.C. 7:27-19.13. Alternative and facility-specific
NOX emission limits
N.J.A.C. 7:27-19.14. Procedures for obtaining approvals under this
subchapter
N.J.A.C. 7:27-19.15. Procedures and deadlines for demonstrating
compliance
N.J.A.C. 7:27-19.16. Adjusting combustion processes
N.J.A.C. 7:27-19.17. Source emissions testing
N.J.A.C. 7:27-19.18. Continuous emissions monitoring
N.J.A.C. 7:27-19.19. Recordkeeping and recording
N.J.A.C. 7:27-19.20. Fuel switching
N.J.A.C. 7:27-19.21. Phased compliance--repowering
N.J.A.C. 7:27-19.23. Phased compliance--use of innovative control
technology
N.J.A.C. 7:27-19.25. Exemption for emergency use of fuel oil
N.J.A.C. 7:27-19.26. Penalties

Chapter 27 Subchapter 20--Used Oil Combustion (Effective 9/6/2011)

N.J.A.C. 7:27-20.1. Definitions
N.J.A.C. 7:27-20.2. General provisions
N.J.A.C. 7:27-20.3. Burning of on-specification used oil in space
heaters covered by a registration
N.J.A.C. 7:27-20.4. Burning of on-specification used oil in space
heaters covered by a permit
N.J.A.C. 7:27-20.5. Demonstration that used oil is on-specification
N.J.A.C. 7:27-20.6. Burning of on-specification oil in other
combustion units
N.J.A.C. 7:27-20.7. Burning of off-specification used oil
N.J.A.C. 7:27-20.8. Ash standard
N.J.A.C. 7:27-20.9. Exception

Chapter 27 Subchapter 21--Emission Statements (Effective 1/16/2018)

N.J.A.C. 7:27-21.1. Definitions
N.J.A.C. 7:27-21.2. Applicability
N.J.A.C. 7:27-21.3. General provisions
N.J.A.C. 7:27-21.4. Procedures for submitting an emission statement
N.J.A.C. 7:27-21.5. Required contents of an emission statement
N.J.A.C. 7:27-21.6. Methods to be used for quantifying actual
emissions
N.J.A.C. 7:27-21.7. Recordkeeping requirements
N.J.A.C. 7:27-21.8. Certification of information
N.J.A.C. 7:27-21.9. Request for extensions
N.J.A.C. 7:27-21.10. Determination of non-applicability
N.J.A.C. 7:27-21.11. Severability

Appendix 1

Chapter 27 Subchapter 22--Operating Permits (Effective 1/16/2018)

N.J.A.C. 7:27-22.1. Definitions
N.J.A.C. 7:27-22.2. Applicability
N.J.A.C. 7:27-22.3. General provisions
N.J.A.C. 7:27-22.4. General application procedures
N.J.A.C. 7:27-22.5. Application procedures for initial operating
permits
N.J.A.C. 7:27-22.6. Operating permit application contents
N.J.A.C. 7:27-22.7. Application shield
N.J.A.C. 7:27-22.8. Air quality simulation modeling and risk
assessment
N.J.A.C. 7:27-22.9. Compliance plans
N.J.A.C. 7:27-22.10. Completeness reviews
N.J.A.C. 7:27-22.11. Public comment
N.J.A.C. 7:27-22.12. EPA comment
N.J.A.C. 7:27-22.13. Final action on an application
N.J.A.C. 7:27-22.14. General operating permits
N.J.A.C. 7:27-22.15. Temporary facility operating permits
N.J.A.C. 7:27-22.16. Operating permit contents
N.J.A.C. 7:27-22.17. Permit shield
N.J.A.C. 7:27-22.18. Source emissions testing and monitoring
N.J.A.C. 7:27-22.19. Recordkeeping, reporting and compliance
certification
N.J.A.C. 7:27-22.20. Administrative amendments
N.J.A.C. 7:27-22.21. Changes to insignificant source operations
N.J.A.C. 7:27-22.22. Seven-day-notice changes
N.J.A.C. 7:27-22.23. Minor modifications
N.J.A.C. 7:27-22.24. Significant modifications
N.J.A.C. 7:27-22.24A. Reconstruction
N.J.A.C. 7:27-22.25. Department initiated operating permit
modifications
N.J.A.C. 7:27-22.26. MACT and GACT standards
N.J.A.C. 7:27-22.27. Operating scenarios
N.J.A.C. 7:27-22.28A. Emissions trading
N.J.A.C. 7:27-22.28B. Facility-specific emissions averaging programs
N.J.A.C. 7:27-22.29. Facilities subject to acid deposition control
N.J.A.C. 7:27-22.30. Renewals
N.J.A.C. 7:27-22.31. Fees
N.J.A.C. 7:27-22.32. Hearings and appeals
N.J.A.C. 7:27-22.33. Preconstruction review
N.J.A.C. 7:27-22.34. Early reduction of HAP emissions
N.J.A.C. 7:27-22.35. Advances in the art of air pollution

Appendix

Table A

Chapter 27B Subchapter 1--Sampling and Analytical Procedures for
Determining Emissions of Particles from Manufacturing Processes and
from Combustion of Fuels (Effective 6/21/1976)

N.J.A.C. 7:27B-1.1. Definitions
N.J.A.C. 7:27B-1.2. Acceptable test methods
N.J.A.C. 7:27B-1.3. Operating conditions during the test
N.J.A.C. 7:27B-1.4. Sampling facilities to be provided by the person
responsible for emissions
N.J.A.C. 7:27B-1.5. Sampling train
N.J.A.C. 7:27B-1.6. Performance test principle
N.J.A.C. 7:27B-1.7. General testing requirements
N.J.A.C. 7:27B-1.8. Required test data
N.J.A.C. 7:27B-1.9. Preparation for sampling
N.J.A.C. 7:27B-1.10. Sampling
N.J.A.C. 7:27B-1.11. Sample recovery
N.J.A.C. 7:27B-1.12. Analysis
N.J.A.C. 7:27B-1.13. Calculations
N.J.A.C. 7:27B-1.14. Validation of test

Chapter 27B Subchapter 2--Procedures for Visual Determination of the
Opacity (Percent) and Shade or Appearance (Ringelmann Number) of
Emissions from Sources (Effective 6/21/1976)

N.J.A.C. 7:27B-2.1. Definitions
N.J.A.C. 7:27B-2.2. Acceptable observation methods
N.J.A.C. 7:27B-2.3. Observation principle
N.J.A.C. 7:27B-2.4. General observation requirements
N.J.A.C. 7:27B-2.5. Required observation data
N.J.A.C. 7:27B-2.6. Certification

References

Appendix

Chapter 27B Subchapter 3--Air Test Method 3: Sampling and Analytical
Procedures for the Determination of Volatile Organic Compounds from
Source Operations (Effective 12/1/2008)

N.J.A.C. 7:27B-3.1. Definitions
N.J.A.C. 7:27B-3.2. Sampling and analytical protocol: acceptable
test methods
N.J.A.C. 7:27B-3.3. Operating conditions during the test
N.J.A.C. 7:27B-3.4. Sampling facilities
N.J.A.C. 7:27B-3.5. Source operations and applicable test methods
N.J.A.C. 7:27B-3.6. Procedures for the determinations of vapor
pressures of a single known VOC or mixtures of known and/or unknown
VOC
N.J.A.C. 7:27B-3.7. Procedures for the direct measurement of
volatile organic compounds using a flame ionization detector (FID),
a photoionization detector (PID) or a non-dispersive infrared
analyzer (NDIR)
N.J.A.C. 7:27B-3.8. Procedures for the direct measurement of
volatile organic compounds using a gas chromatograph (GC) with a
flame ionization detector (FID) or other suitable detector
N.J.A.C. 7:27B-3.9. Procedures for the sampling and remote analysis
of known volatile organic compounds using a gas chromatograph (GC)
with a flame ionization detector (FID) or other suitable detector
N.J.A.C. 7:27B-3.10. Procedures for the determination of volatile
organic compounds in surface coating formulations
N.J.A.C. 7:27B-3.11. Procedures for the determination of volatile
organic compounds emitted from transfer operations using a flame
ionization detector (FID) or non-dispersive infrared analyzer (NDIR)
N.J.A.C. 7:27B-3.12. Procedures for the determination of volatile
organic compounds in cutback and emulsified asphalts
N.J.A.C. 7:27B-3.13. Procedures for the determination of leak
tightness of gasoline delivery vessels
N.J.A.C. 7:27B-3.14. Procedures for the direct detection of fugitive
volatile organic compound leaks
N.J.A.C. 7:27B-3.15. Procedures for the direct detection of fugitive
volatile organic compound leaks from gasoline tank trucks and vapor
collection systems using a combustible gas detector
N.J.A.C. 7:27B-3.18. Test methods and sources incorporated by
reference.
* * * * *
[FR Doc. 2018-02815 Filed 2-12-18; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 62 (Thursday, March 31, 2022)]
[Notices]
[Page 18785]
[FR Doc No: 2022-06805]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP21-45-000]

Florida Gas Transmission Company, LLC; Notice of Effectiveness of
Withdrawal of Application

    On January 29, 2021, Florida Gas Transmission Company, LLC (Florida
Gas) filed an application pursuant to section 7(c) of the Natural Gas
Act (NGA) \1\ for authorization to construct, own, and operate its Big
Bend Project. On February 22, 2022, Florida Gas filed a notice of
withdrawal of its application. No motion in opposition to the notice of
withdrawal has been filed, and the Commission has taken no action to
disallow the withdrawal. Pursuant to Rule 216(b) of the Commission's
Rules of Practice and Procedure,\2\ the withdrawal of the application
became effective on March 10, 2022, and this proceeding is hereby
terminated.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 717f(c).
    \2\ 18 CFR 385.216(b) (2021).

    Dated: March 25, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-06805 Filed 3-30-22; 8:45 am]
BILLING CODE 6717-01-P