[Federal Register Volume 85, Number 241 (Tuesday, December 15, 2020)]
[Proposed Rules]
[Pages 81160-81162]
[FR Doc No: 2020-27452]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2018-0309; Product Identifier 2018-SW-014-AD]
RIN 2120-AA64

Airworthiness Directives; Leonardo S.p.a. Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for Leonardo S.p.a. (Leonardo) Model AW189 helicopters. This proposed
AD would require inspecting the tail plane installation forward bolts
(bolts) and depending on the results of those inspections, removing
certain parts from service or installing a tail plane retromod. This
proposed AD would also require torqueing certain part-numbered nuts,
inspecting bolts and nuts for wear, and depending on the results of
those inspections, removing parts from service. This proposed AD was
prompted by two reported failures of the bolts. The actions of this
proposed AD are intended to address an unsafe condition on these
products.

DATES: The FAA must receive comments on this proposed AD by January 29,
2021.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Docket: Go to https://www.regulations.gov. Follow the online instructions for sending your
comments electronically.
     Fax:<PHONE_NUMBER>.
     Mail: Send comments to the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590-0001.
     Hand Delivery: Deliver to the ``Mail'' address between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2018-
0309; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this AD, the European Aviation Safety Agency (now European Union
Aviation Safety Agency) (EASA) AD, any comments received, and other
information. The street address for Docket Operations is listed above.
Comments will be available in the AD docket shortly after receipt.
    For service information identified in this proposed rule, contact
Leonardo S.p.a. Helicopters, Emanuele Bufano, Head of Airworthiness,
Viale G.Agusta 520, 21017 C.Costa di Samarate (Va) Italy; telephone
+39-0331-225074; fax +39-0331-229046; or at https://www.leonardocompany.com/en/home. You may view the referenced service
information at the FAA, Office of the Regional Counsel, Southwest
Region, 10101 Hillwood Pkwy., Room 6N-321, Fort Worth, TX 76177.

FOR FURTHER INFORMATION CONTACT: Scott Franke, Aviation Safety
Engineer, General Aviation & Rotorcraft Section, International
Validation Branch, FAA, 10101 Hillwood Pkwy., Fort Worth, TX 76177;
telephone<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2018-0309; Product Identifier
2018-SW-014-AD'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
this proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The agency will also post a report summarizing each
substantive verbal contact received about this proposal.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner.

Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is
exempt from public disclosure. If your comments responsive to this NPRM
contain commercial or financial information that is customarily treated
as private, that you actually treat as private, and that is relevant or
responsive to this NPRM, it is important that you clearly designate the
submitted comments as CBI. Please mark each page of your submission
containing CBI as ``PROPIN.'' The FAA will treat such marked
submissions as confidential under the FOIA, and they will not be placed
in the public docket of this NPRM. Submissions containing CBI should be
sent to Scott Franke, Aviation Safety Engineer, General Aviation &
Rotorcraft Section, International Validation Branch, FAA, 10101
Hillwood Pkwy., Fort Worth, TX 76177; telephone<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Any commentary that the FAA receives which is not
specifically designated as CBI will be placed in the public docket for
this rulemaking.

Discussion

    EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA Emergency AD No. 2018-0047-E, dated
February 28, 2018, to correct an unsafe condition for Leonardo S.p.A.
(formerly Finmeccanica S.p.A., AgustaWestland S.p.A.) Model AW189
helicopters. EASA advises of two reported incidents of failed bolts and
that fretting and wear were identified as the root cause of the
failures. EASA states that this condition, if not detected and
corrected, could lead to reduced control of the helicopter.
    According to EASA, Leonardo Helicopters issued Emergency Alert
Service Bulletin No. 189-177, Revision A, dated February 28, 2018 (EASB
189-177), to address this unsafe condition and provide instructions for
inspecting each bolt part number (P/N) 8G5510A06251 and 8G5510A05951
and installing an improved tail plane installation retromod P/N
8G5510P00511 (tail plane retromod). However, EASA advises that because
the tail plane retromod was previously available in production or
through optional Leonardo Service Bulletin No. 189-130, dated January
30, 2017 (SB 189-130), adjustment of the bolt torque is necessary for
some helicopters because an incorrect torque value for installation of
the bolts was specified. Accordingly, the EASA AD requires repetitive
inspections of each bolt, installing a tail plane retromod, adjustment
of the bolt torque for some helicopters that had the tail plane
retromod installed either in production or by following SB 189-130, and
repetitive torque checks of the bolts.

FAA's Determination

    These helicopters have been approved by EASA and are approved for
operation in the United States. Pursuant to the FAA's bilateral
agreement with the European Union, EASA has notified the FAA of the
unsafe condition described in its AD. The FAA is proposing this AD
after evaluating all known relevant information and determining that an
unsafe condition is likely to exist or develop on other products of the
same type designs.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed EASB 189-177, which contains procedures for
inspecting each bolt and installing the tail plane retromod. This
service information also contains procedures for repetitively verifying
the torque of the associated nut P/N MS17825-7 (nut).
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Proposed AD Requirements

    For Model AW189 helicopters without a tail plane retromod
installed, this proposed AD would require, before further flight and
thereafter before each flight, inspecting each bolt for a missing bolt
head, breakage, and correct installation. If there is a missing bolt
head, a broken bolt, or an incorrectly installed bolt, this proposed AD
would require, before further flight, removing the bolt from service
and installing the tail plane retromod.
    For Model AW189 helicopters with a tail plane retromod installed
with an incorrect torque value (installed either in service in
accordance with SB 189-130 or in production, which this proposed AD
specifies by serial number), this proposed AD would require, within 10
hours time-in-service (TIS), correcting the torque, installing a cotter
pin, and lockwiring each nut on the adjustable rod assembly P/N
4F5510A00232.
    Lastly, within 10 hours TIS after installing a tail plane
installation retromod, within 10 hours TIS after correcting an
incorrect torque value, or within 10 hours TIS after the effective date
of this AD, whichever occurs later, and thereafter at intervals not to
exceed 50 hours TIS, this proposed AD would require determining the
torque of each nut. If the torque is less than 15 Nm (11 ft-lbs) or
more than 20 Nm (14.75 ft-lbs), this proposed AD would require
inspecting the bolt and nut for wear, and removing the bolt and nut
from service if there is any wear.

Differences Between This Proposed AD and the EASA AD

    The EASA AD requires repetitive torque checks at progressively
increasing intervals, while this proposed AD would require the
repetitive torque check at intervals not to exceed 50 hours TIS. Since
there is not enough field data at this time to substantiate
progressively increasing the time between inspections up to 400 hours
TIS, the FAA has determined an interval of 50 hours TIS is necessary.
The FAA may take further rulemaking action to increase this interval
should more data become available.

Interim Action

    The FAA considers this proposed AD to be an interim action. If
final action is later identified, the FAA might consider further
rulemaking then.

Costs of Compliance

    The FAA estimates that this proposed AD would affect 4 helicopters
of U.S. Registry. The FAA estimates that operators may incur the
following costs in order to comply with this proposed AD. Labor costs
are estimated at $85 per work-hour.
    Inspecting the bolts before each flight would take about 0.25 work-
hour, for an estimated cost of $21 per helicopter and $84 for the U.S.
fleet per inspection cycle.
    If required, installing a tail plane retromod would take about 12
work-hours and parts would cost about $5,500, for an estimated cost of
$6,520 per helicopter.
    Inspecting and verifying the torque of the bolts and nuts would
take about 1 work-hour, for an estimated cost of $85 per helicopter and
$340 for the U.S. fleet per inspection cycle.
    If required, replacing a bolt and nut would take about 1 work-hour
and parts would cost about $250, for an estimated cost of $335 per
replacement.
    According to Leonardo's service information, some of the costs of
this AD may be covered under warranty, thereby reducing the cost impact
on affected individuals. The FAA does not control warranty coverage by
Leonardo. Accordingly, the FAA has included all costs in its cost
estimate.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of

the FAA Administrator. Subtitle VII: Aviation Programs, describes in
more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: General requirements.
Under that section, Congress charges the FAA with promoting safe flight
of civil aircraft in air commerce by prescribing regulations for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. This regulation is within the scope of that
authority because it addresses an unsafe condition that is likely to
exist or develop on products identified in this rulemaking action.

Regulatory Findings

    The FAA determined that this AD will not have federalism
implications under Executive Order 13132. This AD will not have a
substantial direct effect on the States, on the relationship between
the national Government and the States, or on the distribution of power
and responsibilities among the various levels of government.
    For the reasons discussed, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive:

Leonardo S.p.a.: Docket No. FAA-2018-0309; Product Identifier 2018-
SW-014-AD.

(a) Applicability

    This airworthiness directive (AD) applies to Leonardo S.p.a.
Model AW189 helicopters, certificated in any category.

(b) Unsafe Condition

    This AD defines the unsafe condition as failure of a tail plane
installation bolt. This condition could result in reduced control of
the helicopter.

(c) Comments Due Date

    The FAA must receive comments by January 29, 2021.

(d) Compliance

    You are responsible for performing each action required by this
AD within the specified compliance time unless it has already been
accomplished prior to that time.

(e) Required Actions

    (1) For helicopters without a tail plane installation retromod
part number (P/N) 8G5510P00511 (tail plane retromod) installed,
before further flight and thereafter before each flight, inspect
each forward attachment bolt (bolt) P/N 8G5510A06251 and
8G5510A05951 for a missing bolt head, breakage, and correct
installation as depicted in Figure 12 of Leonardo Helicopters
Emergency Alert Service Bulletin No. 189-177, Revision A, dated
February 28, 2018 (EASB 189-177). If there is a missing bolt head, a
broken bolt, or an incorrectly installed bolt, before further
flight, remove the bolt from service and install the tail plane
retromod by following the Accomplishment Instructions, Part II,
paragraphs 3.1 through 3.33 of EASB 189-177, except you are not
required to discard parts and where EASB 189-177 specifies
contacting Leonardo PSE for corrective action, the action must be
accomplished using a method approved by the Manager, International
Validations Branch, FAA. The Manager's approval letter must
specifically refer to this AD.
    (2) For helicopters with a tail plane retromod installed in
accordance with Leonardo Helicopters Service Bulletin No. 189-130,
dated January 30, 2017, and for helicopters with serial number
49046, 49053, 89008, 89009, 92007, or 92008, within 10 hours time-
in-service (TIS) after the effective date of this AD, loosen and
then torque each nut P/N MS17825-7 (nut) to 15 to 20 Nm (11 to 14.75
ft-lbs), and install a cotter pin and lockwire each nut on the
adjustable rod assembly P/N 4F5510A00232, as depicted in Figure 7,
Detail N Step 6.5 and Figure 9, Detail P Step 7.9 of EASB 189-177.
    (3) Within 10 hours TIS after installing a tail plane retromod,
within 10 hours TIS after complying with paragraph (e)(2) of this
AD, or within 10 hours TIS after the effective date of this AD,
whichever occurs later, and thereafter at intervals not to exceed 50
hours TIS, do the following:
    (i) Determine the torque of each nut.
    (ii) If the torque is less than 15 Nm (11 ft-lbs) or more than
20 Nm (14.75 ft-lbs), before further flight, remove the bolt and nut
and inspect for wear. If there is any wear on the bolt or nut,
before further flight, remove the bolt and nut from service.

(f) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, International Validation Branch, FAA, may
approve AMOCs for this AD. Send your proposal to: Scott Franke,
Aviation Safety Engineer, General Aviation & Rotorcraft Section,
International Validation Branch, FAA, 10101 Hillwood Pkwy., Fort
Worth, TX 76177; telephone<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (2) For operations conducted under a 14 CFR part 119 operating
certificate or under 14 CFR part 91, subpart K, the FAA suggests
that you notify your principal inspector, or lacking a principal
inspector, the manager of the local flight standards district office
or certificate holding district office, before operating any
aircraft complying with this AD through an AMOC.

(g) Additional Information

    (1) Leonardo Helicopters Service Bulletin No. 189-130, dated
January 30, 2017, which is not incorporated by reference, contains
additional information about the subject of this AD. For service
information identified in this AD, contact Leonardo S.p.a.
Helicopters, Emanuele Bufano, Head of Airworthiness, Viale G.Agusta
520, 21017 C.Costa di Samarate (Va) Italy; telephone +39-0331-
225074; fax +39-0331-229046; or at https://www.leonardocompany.com/en/home. You may view the referenced service information at the FAA,
Office of the Regional Counsel, Southwest Region, 10101 Hillwood
Pkwy., Room 6N-321, Fort Worth, TX 76177.
    (2) The subject of this AD is addressed in European Aviation
Safety Agency (now European Union Aviation Safety Agency) (EASA) AD
No. 2018-0047-E, dated February 28, 2018. You may view the EASA AD
on the internet at https://www.regulations.gov in the AD Docket.

(h) Subject

    Joint Aircraft Service Component (JASC) Code: 5510, Tail
Stabilizer.

    Issued on December 8, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-27452 Filed 12-14-20; 8:45 am]
BILLING CODE 4910-13-P


83 I OMB SUPPORTING STATEMENT 1. Identification of the Information Collection Title: Brownfields Program   Revitalization Grantee Reporting ( OMB Control Number 2050 0192; EPA ICR No. 2104.01).

This is a request to renew and expand an existing Information Collection Request ( ICR). This ICR covers the collection of information from those organizations that receive grants from EPA under the authority of subtitle A and expand the collection to those eligible entities that receive grants from EPA under the authority of subtitle C of the " Small Business Liability Relief and Brownfields Revitalization Act" ( Public Law 107 118, January 2002). Subtitle A of the Act amends the Comprehensive Environmental Response, Compensation, and Liability Act ( CERCLA), as amended, and authorizes EPA to award grants to states, tribes, local governments, and other eligible entities to support the assessment and cleanup of brownfields properties and subtitle C authorizes a noncompetitive $ 50 million grant program to establish and enhance state and tribal response programs. With this ICR, EPA's Office of Brownfields Cleanup and Redevelopment ( OBCR) seeks authorization to collect information from grant recipients using several standard forms that will streamline the data collection effort and improve the quality of information collected. The information collected under this ICR supplements the minimum reporting and record keeping requirements that grant recipients are subject to under 40 CFR Part 30, " Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations" and 40 CFR Part 31, " Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments." EPA estimates that all respondents who voluntarily respond to this information collection by electing to participate in the Brownfields grants program have determined that the expected benefits of participation outweigh any burden associated with preparing the response.

2. Need for/ Use of the Collection On January 11, 2002, the President signed into law the Small Business Liability Relief and Brownfields Revitalization Act ( the " Brownfields Amendments"), which authorizes EPA to award several types of grants to eligible entities. Under subtitle A of the Brownfields Amendments, states, tribes, local governments, and other eligible entities can receive grants to:

( 1) inventory, characterize, assess, and conduct planning and community involvement related to brownfields sites;

( 2) carry out cleanup activities at brownfields sites;

( 3) capitalize revolving loan funds and provide sub grants for cleanup activities; and ( 4) support the creation and implementation of environmental job training and placement programs. 2 Under subtitle C of the Brownfields Amendments, states and tribes can receive grants to: ( 1) establish or enhance a state response program that meets the four elements;

( 2) establish or enhance a public record;

( 3) develop legislation, regulations, procedures, or guidance that would establish or enhance the legal structure of the state program;

( 4) capitalize a revolving loan fund;

( 5) purchase environmental insurance; and ( 6) carry out site specific environmental assessment and cleanup activities.

Under the Brownfields Amendments, a brownfields site means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. For grant funding purposes, EPA uses the term " brownfields property( ies)" synonymously with the term " brownfields site( s)."

While the Agency collects basic grant information as part of its Federal stewardship responsibilities to manage and oversee recipient activities and expenditures ( see 40 CFR Parts 30 and 31), OBCR needs additional information from grant recipients to be reported in a consistent manner in order to evaluate the effectiveness of the program and to report on program activities and accomplishments to Congress and other program stakeholders. Specifically, OBCR has used and will continue to use the information collected from grant recipients to oversee the activities carried out using grant funds, to evaluate program implementation and effectiveness, and to meet the Agency's responsibilities under the Government Performance and Results Act to report on OBCR's accomplishments. The information collection activities covered by this renewed ICR are intended to: ( 1) continue to improve the alignment of reporting requirements with programmatic performance measures; and ( 2) simplify and standardize reporting requirements to reduce uncertainty and burden imposed on grant recipients. Without the information collection, OBCR would have limited access to information needed to effectively assess the relationship between those activities funded by EPA's Brownfields grants and the intent of Congress with the passage of the Brownfields Amendments.

3. Non duplication, Consultations, and Other Collection Criteria 3( a). Non duplication   There is no other known sources for the information that EPA seeks under this ICR. Moreover, this ICR supplements, and does not duplicate, the information that EPA collects as part of its reporting and record keeping provisions under the Agency's general assistance regulations at 40 CFR Part 30, " Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non profit Organizations," and 40 CFR Part 31, " Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments." EPA's regulations at 40 CFR Part 31, which implements the requirements 3 of OMB Circular A 102, became effective for awards made on or after October 1, 1988. The Part 31 rule ( common rule) established uniformity among Federal agencies that award Federal grants and cooperative agreements to states, political subdivisions thereof, and Federallyrecognized Indian Tribal Governments. Exhibit 1 identifies the tasks and burdens of grant recipients that are covered under other OMB approved ICRs. This ICR addresses the burden imposed on grant recipients and EPA associated with the reporting requirements that are unique to grants awarded by EPA under authority of subtitles A and C of the Brownfields Amendments.

3( b). Public Notice Required Prior to ICR Submission to OMB. The first notification of the Agency's request for the renewal of this ICR was published in the Federal Register on August XX, 2005. Concurrent with the submission of this ICR to OMB, EPA is publishing a second Federal Register notice seeking public comments on this ICR.

3( c). Consultations   EPA has more than ten years of experience managing a Brownfields grant programs that awarded more than 1,100 cooperative agreements to state, local, and tribal governments to address brownfields properties. For these Brownfields grants, EPA staff have worked closely with the grant recipients to help them participate in the program and address their brownfields properties. As such, EPA has a detailed understanding of the activities that grant recipients undertake and the burden they incur for voluntarily participating in EPA's grant programs. In addition, during the preparation of the initial ICR and the reporting forms that are included, EPA contacted eight Brownfields pilot recipients to ask them specific questions about the burden associated with completing the draft forms included in this ICR. Grant recipient responses form the basis of EPA's calculations of the burden hours and costs.

Exhibit 1: Grant Burdens Covered Under Other Agency ICRs Task/ Burden Authority Agency Approved ICR Preliminary Grant Proposal 40 CFR Parts 30 and 31 OMB 2030 0020 Final Grant Proposal 40 CFR Parts 30 and 31 OMB 2030 0020 Budget Sheets 40 CFR Parts 30 and 31 OMB 2030 0020 Quarterly Progress Reports 40 CFR Parts 30 and 31 OMB 2030 0020 Notification of Significant Developments 40 CFR Parts 30 and 31 OMB 2030 0020 Procurement Reports 40 CFR Parts 30 and 31 OMB 2030 0020 Financial Reports 40 CFR Parts 30 and 31 OMB 2030 0020 Project Records 40 CFR Parts 30 and 31 OMB 2030 0020 3( d). Effects of Less Frequent Collection   The information collection schedule is consistent with the Agency's reporting schedule for general assistance grants. Less frequent collection may not enable EPA to oversee and manage Brownfields grants effectively and would lessen OBCR's ability to report up to date and accurate information on program activities and 2For the purposes of the Brownfields grant program, EPA uses the definition of nonprofit organization contained in Section 4( 6) of the Federal Financial Assistance Management Improvement Act of 1999, Public Law 106 107.

4 accomplishments. In consideration of the burden imposed on grant recipients, EPA has adopted less frequent reporting for the Property Profile form in which grant recipients are required to update and submit the form as notable activities or changes occur at a particular property. EPA anticipates that recipients of subtitle A assessment, cleanup, and revolving loan fund grants will submit an updated Property Profile form to EPA, two times on average a year but not more than four times a year ( i. e. quarterly). For subtitle C state and tribal response program grants, EPA anticipates that recipients will submit a Property Profile form to EPA twice a year in line with the bi annual reporting guidelines.

3( e). General Guidelines   The information collection is consistent with the guidelines set forth in 5 CFR 1320.6 of the Paperwork Reduction Act Guidelines.

3( f). Confidentiality   No confidentiality is provided and no sensitive information is collected under this ICR.

3( g). Sensitive Questions   Sensitive questions are not associated with the information collection activities performed under Public Law 107 118.

4. Respondents and Information Requested 4( a). Respondents   Respondents under this ICR are those entities who voluntarily elect to participate in the Brownfields grant programs and receive grant funding from EPA under the authority of subtitle A and/ or C of the Brownfields Amendments. Specifically, respondents to this information collection include: general purpose units of local government; land clearance authorities or other quasi governmental entities that operate under the supervision and control of, or as an agent of, a general purpose unit of local government; government entities created by state legislature; regional councils or groups of general purpose units of local government; redevelopment agencies that are chartered or otherwise sanctioned by the State; States; Indian Tribes other than in Alaska; Alaska Native Regional Corporations, Alaska Native Village Corporations, and Metlakatla Indian Communities; and non profit organizations..

4( b). Information Requested   The information requested by EPA under this ICR includes information from grant recipients specific to the activities undertaken and the accomplishments that result using Brownfields grant funds. The information to be collected by EPA will vary by the type of grant awarded to the respondent. Brownfields job training grant recipients are required to complete on a quarterly basis the Brownfields Job Training Reporting Form ( see Attachment B). The Job Training Reporting Form seeks basic information on how grant funds were used to support job training programs and the accomplishments stemming from those programs. For example, job training grant recipients will report the number of participants who 5 have completed the training, whether participants obtained employment, and the average hourly wages of participants who obtained employment.

For Brownfields assessment, cleanup, revolving loan fund grants, and property specific activities of the State Response Program Grants, EPA requires subtitle A and C grant recipients to prepare an initial Brownfields Property Profile Form ( see Attachment C) for each property the grant intends to address. The Property Profile Form complements the information collected as part of the progress reports required by the general assistance regulations, and requests basic information about each brownfields property covered by the grant, such as property name, location, parcel number, and size. EPA requires grant recipients to update the Property Profile Form as notable activities or changes occur on the property, but no more frequently than quarterly for subtitle A grant recipients and no more than twice a year for subtitle C grant recipients. For example, as an assessment of the property is completed, grant recipients are required to complete the portion of the Property Profile Form that applies to assessments, and provide basic information to EPA on the type of assessment, date of completion, and results or findings of the assessment. Other sections of the Property Profile Form collect basic information on cleanups and any redevelopment activities that occur on the property, including estimates of the number of jobs that result.

5. The Information Collected   Agency Activities, Collection, Methodology and Information Management 5( a). Agency Activities   EPA is responsible to Congress and other stakeholders to ensure that its resources are being used efficiently and effectively, to evaluate the progress of the grant recipients in meeting the goals of EPA's Brownfields Cleanup and Redevelopment Program, and to share the successes, lessons learned, and best practices among Brownfields grant recipients. EPA will collect the information using standardized forms that minimize the burden on respondents while ensuring consistent information that can be easily aggregated and accurately reported. EPA program staff will review the information collected to keep current on grant activities, and will enter the information into the Agency's Brownfields Management System ( BMS). EPA uses BMS to maintain information on all of its Brownfields grants' property specific activities, develop reports to support management and program evaluation activities, and to report accomplishments achieved as part of the Agency's responsibilities under GPRA.

5( b). Collection Methodology and Management   EPA will collect data under this ICR using a standard set of forms, instructions, and guidance that are designed to simplify and facilitate the reporting requirements for grant recipients. In fulfilling the requirements under the Government Paperwork Elimination Act ( Public Law 105 277), EPA is currently developing an electronic reporting process that will allow grant recipients to report their data electronically. This electronic reporting process will be integrated with EPA's Enterprise Architecture to further streamline the Agency's data management and reporting responsibilities. EPA expects that this electronic reporting process will be available to grant recipients beginning in the first quarter of FY2007. EPA will modify its reporting guidance and provide training when the electronic reporting process is in place. EPA anticipates that the electronic reporting process may reduce the burden placed on grant recipients; preliminary estimates based on conversations with current 6 and former Brownfields grant recipients suggest that such a process will reduce the reporting burden by an estimated 20 to 50 percent.

5( c). Small Entity Flexibility   This information collection request is expected to affect small governmental jurisdictions, which are defined as governments of cities, counties, towns, townships, villages, school districts, or special districts with populations of less than 50,000. This definition may also include Indian Tribes, in keeping with the President's Federal Indian Policy. EPA has considered whether to establish different reporting requirements for small entities and has determined that: ( 1) different reporting requirements among grant recipients will result in inconsistent data that may lessen the Agency's ability to oversee and report on program activities and accomplishments; ( 2) the burden imposed by this information collection is relatively small and small entities should not be unduly burdened by the reporting requirement; and ( 3) the Brownfields grants program is voluntary and respondents who elect to participate in this program have determined that the expected benefits of participation outweigh any burden associated with preparing the response.

5( d). Collection Schedule   The information to be collected under this ICR for subtitle A assessment, cleanup and revolving loan fund grant recipients shall not occur more frequently than quarterly and no more than twice a year for subtitle C property specific activities. Brownfields Job Training grant recipients must complete and/ or update their Brownfields Job Training Performance Form every quarter. For subtitle A assessment, cleanup, revolving loan fund grants, and subtitle C property specific activities, grant recipients will be required to prepare an initial Property Profile form for each property at which the grant intends to address, and to update the Property Profile forms for only those properties in which notable activities or changes have occurred during the last reporting period.

6. Estimating the Burden and Cost of the Collection 6( a). Estimating respondent burden  A " unit" burden is the burden incurred by a respondent for performing a specific activity that is not covered by another ICR ( such as 40 CFR Parts 30 and 31). The estimated burden is incurred by the following activities:

° Completion of the Brownfields Job Training Reporting Form;

° Initial completion of the Brownfields Property Profile Form;

° Periodic updating of the Brownfields Property Profile Form to report progress on specific properties undergoing assessment, cleanup, or redevelopment; and The estimated burden for respondents is presented in Exhibit 2.

If any burdens were found to be imposed in the ICR by a rule that supercedes the Brownfields Amendments, those burdens, or a percentage of those burdens, were removed from the overall burden calculation in this ICR ( see Exhibit 1). 7 6( b). Estimating respondent costs  To estimate the unit burden ( hours) and hourly rate for the original information collection activity, EPA relied on its extensive experience working closely with Brownfields pilot grant recipients, as well as in depth interviews with eight current or former pilot grant recipients specific to this ICR. Those interviewed were shown draft copies of all forms and accompanying instructions and guidance that would be used for reporting and asked to estimate: ( 1) the number of hours that would be required to perform each task; and ( 2) the labor mix required to perform each task ( e. g., percentage of management, technical, clerical). The data gathered from these interviews were then analyzed to estimate the unit burden and labor mix.

For the expansion and renewal of this information collection request, EPA carried forward the same assumptions that were made for the original request. EPA has expanded the information collection request to include subtitle C grant recipients and uses the original estimates of time and labor to estimate the increased unit burden.

Exhibit 2  Annual Respondent Burden and Cost Activity Unit Burden ( Hours) Unit Labor Cost ( Dollars) Total Unit Cost ( Dollars) Average Number of Responses/ Year* Total Burden/ Year ( Hours)* Total Cost/ Year ( Dollars)*

Job Training Performance Form 5 $ 30.02 $ 150.10 93 465 $ 13,959 Initial Completion of Property Profile Form ( Subtitle A) 1 $ 30.02 $ 30.02 1,225 1,225 $ 36,775 Initial Completion of Property Profile Form ( Subtitle C) 1 $ 30.02 $ 30.02 364 364 $ 10,927 Update of Property Profile Form ( Subtitle A) 1.5 $ 30.02 $ 45.03 3,752 5,628 $ 168,953 Update of Property Profile Form ( Subtitle C) 1.5 $ 30.02 $ 45.03 667 1,001 $ 30,035 TOTAL 6,101 8,683 $ 260,644 AVERAGE TOTAL COST PER BURDEN HOUR $ 30.02 * Figures may not sum due to rounding.

The unit labor cost ( dollars) for this burden estimate is a weighted hourly rate based upon the estimated labor mix and wage rates gathered from the U. S. Bureau of Labor Statistics ( BLS). Across all tasks, data from consultations indicate that the average grantee will incur 15 percent of its burden with executive/ managerial staff labor, 5 percent with professional specialty staff labor, 70 percent with technical labor, and 10 percent with administrative support or clerical labor. This 3See Bureau of Labor Statistics publication entitled " Employer costs per hour worked for employee compensation and costs as a percent of total compensation: state and local government, by occupational group, March 2005 http:// stats. bls. gov/ news. release/ ecec. t04. htm# content.

8 labor mix was applied to BLS, National Compensation Survey ( NCS) data issued in June 20052 for a weighted hourly rate of $ 30.02.

Job training grant recipients will be required to report progress on a quarterly basis using EPA's " Brownfields Job Training Reporting Form" ( see Attachment B). Grant recipients will be required to report progress on a quarterly basis, with each update requiring approximately 5 hours for a unit burden of $ 150.10. The majority of this burden stems from the collection of salary or wage information from job training program participants who are able to find employment.

Subtitle A cleanup, assessment, and revolving loan fund grant recipients will be required to report progress with the " Brownfields Property Profile Form" ( see Attachment C). EPA anticipates that the initial completion of this form will require approximately 1 hour. Grant recipients will be required to update this form as grant milestones are achieved, though not more frequently than quarterly. It is estimated that each update will require approximately 1.5 hours for a unit burden of $ 45.03. It is estimated that each form will be updated an average of twice per year.

Cleanup and assessment grants awarded under subtitle A of the Brownfields Amendments cover a period of performance of two years, and revolving loan fund grants cover a period of performance up to 5 years. Based on the Agency's experience under its pilot grants program, EPA estimates that at the end of two years, approximately 75 percent of grants will receive a nocost extension, approximately 20 percent of grant recipients will receive supplemental awards, and 5 percent of grants will close out. Grant recipients that receive either a no cost extension or a supplemental award will be required to continue to report on their grant activities using the forms authorized under this ICR. This burden is included in the estimated number of responses per year and, therefore, the overall burden calculation estimated for this ICR.

Subtitle C grant recipients that conduct property specific activities will be required to report progress with the " Brownfields Property Profile Form" ( see Attachment C). EPA anticipates that the initial completion of this form will require approximately 1 hour. Grant recipients will be required to update this form as grant milestones are achieved, though not more frequently than twice a year. It is estimated that each update will require approximately 1.5 hours for a unit burden of $ 45.03. It is estimated that each form will be updated an average of twice per year.

All grants awarded under subtitle C of the Brownfields Amendments have at least a one year period of performance or can be a multi year grant depending on the state's financial need for continued funding. Based on the Agency's understanding of state response programs, EPA estimates that one half of the state grant recipients have sophisticated response programs and can complete property specific activities with in one year, therefore submitting a total of two responses. EPA further estimates that the remaining state, tribal, and US territories that receive 9 grant funding take two years to complete property specific activities therefore submitting a total of four responses.

Start up costs to meet the Brownfields grants reporting requirements are minimal and are a part of the customary and usual expenses incurred by grant recipients. There are no capital costs related to Brownfields reporting requirements. Therefore, total start up and capital costs are zero. There are no operation and maintenance costs required.

6( c). Agency burden and costs  EPA incurs a burden in the process of requesting, reviewing and processing the information covered by this ICR. This burden includes:

° Reviewing and processing Brownfields Job Training Reporting Forms; ° Reviewing and processing initial Brownfields Property Profile Forms; and ° Reviewing and processing updates of Brownfields Property Profile Forms.

The estimated burden associated with EPA activities is presented in Exhibit 3.

Exhibit 3  Annual Agency Burden and Cost Activity Unit Burden ( Hours) Unit Labor Cost ( Dollars) Total Unit Cost ( Dollars) Average Number of Responses / Forms per Year ( Full) Total Burden ( Hours)* Total Cost ( Dollars)*

Review and Process Job Training Performance Form 1.5 $ 28.23 $ 42.35 93 140 $ 3,939 Review and Process Initial Property Profile Form ( Subtitle A) 2.5 $ 28.23 $ 70.56 1,225 3,063 $ 86,436 Review and Process Initial Property Profile Form ( Subtitle C) 2.5 $ 28.23 $ 70.56 364 910 $ 25,684 Review and Process Updates of Property Profile Form ( Subtitle A) 2 $ 28.23 $ 56.46 3,752 7,504 $ 211,838 Review and Process Updates of Property Profile Form ( Subtitle C) 2 $ 28.23 $ 56.46 667 1,334 $ 37,659 TOTAL* 12,951 $ 365,556 AVERAGE TOTAL COST PER BURDEN HOUR $ 28.23 * Figures may not sum due to rounding 10 The burden imposed upon EPA was initially estimated by: ( 1) interviewing EPA Regional and Headquarters staff to gather individual estimates of the time required to perform each activity and the GS level of the staff performing those tasks; ( 2) averaging the time data to estimate the number of hours required for each burden element; ( 3) averaging the data on the percentage of time performed by particular staff GS levels; ( 4) developing a weighted hourly rate based upon percentage of staff labor at different GS levels devoted to each task; and ( 5) determining the product of the weighted hourly rate and the number of hours required per activity.

For the renewal and expansion of this information collection request, EPA is using the same estimates that were initially calculate the federal burden.

The weighted hourly rate utilized in the Federal burden estimate is based upon the following composite:

GS Level Percent Hourly Wage Rate*

GS 4, Step 1 10% $ 10.57 GS 11, Step 1 10% $ 21.68 GS 13, Step 1 75% $ 30.90 GS 14, Step 1 5% $ 36.51 Weighted Rate $ 28.23 * Rates for 2005 General Schedule ( http:// www. opm. gov/ oca/ 05tables/ html/ gs_ h. asp)

6( d). Estimated Respondent Universe and Total Burden and Costs   The estimated annual average number of respondents per year for this information collection is 294 respondents, with the average total number of responses per year estimated at 6,101. As presented in Exhibit 2, the total average annual burden to respondents is 8,683 hours per year at a cost of $ 260,648.

6( e). Bottom line burden hours and costs   Exhibits 2 and 3 provide the bottom line burden hours and costs for respondents and EPA, respectively. The hours and costs presented in these exhibits represent the average annual burden resulting from this information collection; the total burden hours and costs for the three year period covered under this ICR is estimated to be three times the total hours and costs provided in each exhibit.

6( f). Reasons for Change in Burden   Since an existing information collection is being renewed and expanded, the overall burden has increased due to an increase in hourly wages of respondents and in the general schedule and an expanded number of respondents.

6( g). Burden Statement   The annual public reporting and recordkeeping burden for this collection of information is estimated to average 5 hours per response for job training grant recipients, and 1.25 hours per response for subtitle A assessment, cleanup, and revolving loan fund and subtitle C grant recipients. Burden means 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. This includes the time needed to review instructions; develop, acquire, install, and 11 utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR chapter 15.

To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID No. SFUND 2005 0003, which is available for public viewing at the OSWER Docket in the EPA Docket Center ( EPA/ DC), EPA West, Room B102, 1301 Constitution Ave., NW, Washington, DC. The EPA Docket Center Public Reading Room is open from 8: 30 a. m. to 4: 30 p. m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is ( 202) 566 1744, and the telephone number for the OSWER Docket is ( 202) 566 2426. An electronic version of the public docket is available through EPA Dockets ( EDOCKET) at http:// www. epa. gov/ edocket. Use EDOCKET to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically. Once in the system, select " search," then key in the docket ID number identified above. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office for EPA. Please include the EPA Docket ID No. SFUND 2005 0003 and OMB Control Number 2050 0192 in any correspondence. 12 Attachment A: Federal Register Notice Seeking Public Comment on the Agency's Information Collection Request for the Brownfields Program 13 ENVIRONMENTAL PROTECTION AGENCY [ SFUND   2005   0003, FRL ]

Agency Information Collection Activities: Proposed Collection; Comment Request; Brownfields Program Revitalization Grantee Reporting, EPA ICR Number 2104.01, OMB Control Number 2050 0192 AGENCY: Environmental Protection Agency ( EPA).

ACTION: Notice.

SUMMARY: In compliance with the Paperwork Reduction Act ( 44 U. S. C. 3501 et seq.), this document announces that EPA is planning to submit a continuing Information Collection Request ( ICR) to the Office of Management and Budget ( OMB). This is a request to renew an existing approved collection. This ICR is scheduled to expire on August 31, 2006. Before submitting the ICR to OMB for review and approval, EPA is soliciting comments on specific aspects of the proposed information collection as described below.

DATES: Comments must be submitted on or before [ INSERT DATE 60 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER].

ADDRESSES: Submit your comments, referencing docket ID number SFUND   2005   0003, to EPA online using EDOCKET ( our preferred method), by email to superfund. docket@ epa. gov, or by mail to: EPA Docket Center, Environmental Protection Agency, OSWER Docket, 5202T, 1200 Pennsylvania Ave., NW, Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Stacy Swartwood, Office of Solid Waste and Emergency Response ( OSWER), Office of Brownfields Cleanup and Redevelopment ( OBCR) 5105T, U. S. EPA Headquarters, Ariel Rios Building, 1200 Pennsylvania Avenue, NW, Washington, DC 20460; telephone number: ( 202) 566 1391; fax number: ( 202) 566 2757; email address: swartwood. stacy@ epa. gov.

SUPPLEMENTARY INFORMATION: EPA has established a public docket for this ICR under 14 Docket ID number SFUND   2005 0003, which is available for public viewing at the OSWER Docket in the EPA Docket Center ( EPA/ DC), EPA West, Room B102, 1301 Constitution Ave., NW, Washington, DC. The EPA Docket Center Public Reading Room is open from 8: 30 a. m. to 4: 30 p. m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is ( 202) 566 1744, and the telephone number for the OSWER Docket is ( 202) 566 0276. An electronic version of the public docket is available through EPA Dockets ( EDOCKET) at http:// www. epa. gov/ edocket. Use EDOCKET to obtain a copy of the draft collection of information, submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically. Once in the system, select " search," then key in the docket ID number identified above.

Any comments related to this ICR should be submitted to EPA within 60 days of this notice. EPA's policy is that public comments, whether submitted electronically or in paper, will be made available for public viewing in EDOCKET as EPA receives them and without change, unless the comment contains copyrighted material, CBI, or other information whose public disclosure is restricted by statute. When EPA identifies a comment containing copyrighted material, EPA will provide a reference to that material in the version of the comment that is placed in EDOCKET. The entire printed comment, including the copyrighted material, will be available in the public docket. Although identified as an item in the official docket, information claimed as CBI, or whose disclosure is otherwise restricted by statute, is not included in the official public docket, and will not be available for public viewing in EDOCKET. For further information about the electronic docket, see EPA's Federal Register notice describing the electronic docket at 67 FR 38102 ( May 31, 2002), or go to www. epa. gov/ edocket.

Affected entities: Entities potentially affected by this action are states, tribes, local governments, and certain non governmental organizations that apply for and receive grants from EPA to support the assessment, cleanup and redevelopment of brownfields properties.

Title: Brownfields Program  Grant Reporting Information Collection Request Abstract: The Small Business Liability Relief and Brownfields Revitalization Act ( Public Law 107 118) (" the Brownfields Amendments") was signed into law on January 11, 2002. The Act amends the Comprehensive Environmental Response, Compensation, and Liability Act ( CERCLA), as amended, and authorizes EPA to award grants to States, tribes, local governments, and other eligible entities to assess and clean up brownfields sites. Under the Brownfields Amendments, a brownfields site means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. For grant funding purposes, EPA uses the term " brownfields property( ies)" synonymously with the term " brownfields sites." The Brownfields Amendments authorize EPA to award several types of grants to eligible entities on a competitive basis.

Under subtitle A of the Small Business Liability Relief and Brownfields Revitalization Act, States, tribes, local governments, and other eligible entities can receive assessment grants to inventory, characterize, assess, and conduct planning and community involvement related to brownfields properties; cleanup grants to carry out cleanup activities at brownfields properties; 15 grants to capitalize revolving loan funds and provide subgrants for cleanup activities; and job training grants to support the creation and implementation of environmental job training and placement programs. Under subtitle C of the Small Business Liability Relief and Brownfields Revitalization Act, State and tribes can receive grants to establish and enhance their response programs. The grants support activities necessary to establish or enhance four elements of state and tribal response programs and to meet the public record requirements under the statute. The four elements include: ( a) timely survey and inventory of brownfield sites in the State or in the tribal land; ( b) oversight and enforcement authorities or other mechanisms and resources; ( c) mechanisms and resources to provide meaningful opportunities for public participation; and ( d) mechanisms for approval of a cleanup plan and verification and certification that cleanup is complete. States and tribes that receive funding under subtitle C must establish a public record system during the grant funding period unless an adequate public record system is already established.

Grant recipients have general reporting and record keeping requirements as a condition of their grant that result in burden. A portion of this reporting and record keeping burden is authorized under 40 CFR Parts 30 and 31 and identified in the EPA's general grants ICR ( OMB Control Number 2030 0020). EPA requires Brownfields program grant recipients to maintain and report additional information to EPA on the uses and accomplishments associated with the funded brownfields activities. EPA uses several forms to assist grantees in reporting the information and to ensure consistency of the information collected. EPA uses this information to meet Federal stewardship responsibilities to manage and track how program funds are being spent, to evaluate the performance of the Brownfields Cleanup and Redevelopment Program, to meet the Agency's reporting requirements under the Government Performance Results Act, and to report to Congress and other program stakeholders on the status and accomplishments of the grants program.

This ICR addresses the burden imposed on grant recipients that are associated with those reporting and recordkeeping requirements that are specific to grants awarded under the Small Business Liability Relief and Brownfields Revitalization Act. This ICR renewal modifies the annual reporting and recordkeeping burden under the previous ICR. The modified burden reflects an increase in the number of respondents subject to the reporting and recordkeeping requirements, and improvements to the reporting forms based on EPA's experience implementing the grant program. Specifically, subtitle C grant recipients are now subject to the reporting and recordkeeping requirements previously established for subtitle A grant recipients. By using the same form to report information on grant activities, EPA is adopting a streamlined approach that avoids potential confusion among grant recipients and allows the Agency to collect and report program information consistently across all brownfields grants. EPA is also modifying the reporting form to simplify and clarify the reporting requirements, which will improve the accuracy of information reported and minimize the burden to grant recipients.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR chapter 15. The EPA would like to solicit comments to: ( I) evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have 16 practical utility; ( ii) evaluate the accuracy of the Agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; ( iii) enhance the quality, utility, and clarity of the information to be collected; and ( iv) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology, e. g., permitting electronic submission of responses.

Burden Statement: The annual reporting and record keeping burden for this collection of information is estimated to average 5 hours per response for job training grant recipients. The annual reporting and record keeping burden for this collection of information is estimated to average 1.25 hours per response for subtitle A assessment, cleanup, and revolving loan fund grant recipients and subtitle C grant recipients.

Estimated Number of Respondents: 294.

Frequency of Response: Bi annual for subtitle C grant recipients; quarterly for subtitle A grant recipients.

Estimated Total Annual Hour Burden: 8,683.

Estimated Total Annual Cost: $ 260,648.

Burden means 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. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information.

Dated: ________________ Linda Garczynski, Director, Office of Brownfields Cleanup and Redevelopment Office of Solid Waste and Emergency Response [ FR Doc.  Filed DATE; TIME] BILLING CODE [ ]


[Federal Register Volume 82, Number 87 (Monday, May 8, 2017)]
[Notices]
[Pages 21437-21439]
[FR Doc No: 2017-09192]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80573; File No. SR-GEMX-2017-04]

Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Regarding Quote
Mitigation

May 2, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 26, 2017, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend GEMX Rule 804(h) regarding quote
mitigation.
    The text of the proposed rule change is available on the Exchange's
Web site at www.ise.com, at the principal office of the Exchange, and
at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend GEMX Rule 804, entitled ``Market
Maker Quotations,'' to specifically amend Rule 804(h) which addresses
the Exchange's quote traffic mitigation plan to adopt a

similar quote mitigation plan to that of NASDAQ PHLX LLC (``Phlx'').
    Topaz implemented its quote mitigation plan in 2013, at the time it
filed its Form 1 application.\3\ At that time, Topaz adopted the same
quote mitigation plan that was in effect on ISE.\4\
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    \3\ See Securities Exchange Release Act. No. 70050 (July 26,
2013), 78 FR 46622 (August 1, 2013) (File No. 10-209) (Application
of Topaz Exchange, LLC for Registration as a National Securities
Exchange; Findings, Opinion, and Order of the Commission). This
pilot has since been extended several times.
    \4\ See Securities Exchange Release Act. No. 55161 (February 1,
2007), 72 FR 4754 (January 24, 2007) (SR-ISE-2006-62) (Order
Granting Approval To Proposed Rule Change as Modified by Amendment
Nos. 1 and 2 Thereto, To Implement a Penny Pilot Program To Quote
Certain Options in Pennies).
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    Currently, GEMX Rule 804(h) provides that GEMX shall utilize a
mechanism so that newly-received quotations and other changes to the
Exchange's best bid and offer are not disseminated for a period of up
to, but not more than one second. Commencing on February 27, 2017, GEMX
initiated a migration to Nasdaq's INET system over a six week symbol
rollout.\5\ GEMX completed its symbol migration to INET and began
mitigating quotes pursuant to a mitigation strategy utilized by Phlx
today.\6\ GEMX is no longer utilizing the same mitigation strategy that
it utilized while it operated on its legacy system. INET does not
currently support the quote mitigation strategy in the current GEMX
Rule 804(h). The Exchange is proposing to change its quote mitigation
strategy to one supported by INET. Phlx operates on INET today, the
same system that GEMX now operates on. The Exchange proposes to amend
its current rule to adopt a plan for quote mitigation similar to Phlx's
rule and properly reflect its mitigation process. Phlx's strategy has
been operating on the INET platform since 2007.
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    \5\ See Options Trader Alert #2017-13.
    \6\ See Options Technical Update #2017-17.
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    Phlx Rule 1082(a)(ii)(C) sets forth the conditions under which Phlx
disseminates updated quotations based on changes in the Exchange's
disseminated price and/or size. Phlx disseminates an updated bid and
offer price, together with the size associated with such bid and offer,
when: (1) Phlx's disseminated bid or offer price increases or
decreases; (2) the size associated with Phlx's disseminated bid or
offer decreases; or (3) the size associated with Phlx's bid (offer)
increases by an amount greater than or equal to a percentage (never to
exceed 20%) \7\ of the size associated with the previously disseminated
bid (offer). Such percentage, which would never exceed 20%, would be
determined on an issue-by-issue basis by the Exchange and announced to
membership via Exchange circular. The percentage size increase
necessary to give rise to a refreshed quote may vary from issue to
issue, depending, without limitation, on the liquidity, average volume,
and average number of quotations submitted in the issue. The mitigation
would apply to all options traded on GEMX.
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    \7\ Phlx has set its percentage to 10%. See http://www.nasdaqtrader.com/content/phlxmemos/2007/jan/0197-07.pdf.
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    The Exchange will not be adopting Phlx Rule 1082(a)(ii)(C)(4). This
functionality is not necessary on INET. Phlx adopted 1082(a)(ii)(C)(4)
when it was not operating on INET, with its subsequent replatform to
INET functionality, 1082(a)(ii)(C)(4) was no longer necessary because
of the real-time features which exist on INET. The INET functionality
rendered the rule text in 1082(a)(ii)(C)(4) as unnecessary.
    With the migration to INET, GEMX has set an initial percentage of
3% as announced in an Options Trader Alert.\8\ GEMX will continue to
monitor the quote activity on the market and would not notify
participants of any incremental increase in the size of the Exchange's
quote until such quote is disseminated to OPRA.
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    \8\ See Options Technical Update #2017-17.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\9\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\10\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by reducing the number of options quotations required to be
submitted on the Exchange and, therefore, mitigating the Exchange's
quote message traffic and capacity. By adopting a quote mitigation plan
similar to Phlx, the Exchange will continue to mitigate quotes and
monitor its quote capacity, as is the case today. While the Phlx method
differs from that of GEMX's rule, the Exchange believes that Phlx's
method today successfully mitigates quotes on that market. In addition,
GEMX desires to adopt a similar mitigation as currently utilized by its
affiliated market, as it now operates on the same architecture.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Phlx quote mitigation process has been in place since 2007.
Phlx is operating on the INET system today, the same system that GEMX
was recently migrated to for its operating system. The Exchange
believes that Phlx's quote mitigation process has successfully
controlled Phlx's quote capacity. The Exchange believes that it is
reasonable to utilize a similar process as Phlx to mitigate quotes for
GEMX given the system architecture is utilized on both of these
markets. Nasdaq, Inc., a common parent to Phlx and GEMX, has experience
with this quote mitigation strategy on INET. The Exchange has selected
to mitigate GEMX at 3% initially because, unlike Phlx, which is a
mature market with various auction offerings and higher volumes, GEMX
is a not as large in volume and has fewer functional offerings, e.g.
complex orders and floor trading. The Exchange notes that it will
continue to monitor quotes on GEMX and make adjustments as necessary.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange proposes to
mitigate all options trading on GEMX. All options exchanges have a
quote mitigation process in place in connection with their
participation in the Penny Pilot Program.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \11\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.

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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \13\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \14\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission notes that GEMX (formerly known as Topaz Exchange, LLC)
was approved as an Exchange on July 26, 2013, and its rules at that
time provided for a quote mitigation plan.\15\ According to the
Exchange, GEMX transitioned to a new operating platform (INET) on April
3, 2017; however, this platform does not support the quote mitigation
strategy in current GEMX Rule 804(h). The Exchange represents that
since GEMX transitioned to INET, it has been mitigating quotes pursuant
to the quote mitigation strategy used by Phlx today. The Exchange
represents that the proposal would allow the Exchange to operate a
quote mitigation plan on the INET platform and effectively mitigate the
amount of options quote traffic on the Exchange. Accordingly, the
Commission hereby waives the operative delay and designates the
proposal operative upon filing.\16\
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ See note 3, supra.
    \16\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-GEMX-2017-04 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-GEMX-2017-04. 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 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-GEMX-2017-04 and should be
submitted on or before May 30, 2017.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09192 Filed 5-5-17; 8:45 am]
 BILLING CODE 8011-01-P