[Federal Register Volume 84, Number 119 (Thursday, June 20, 2019)]
[Notices]
[Pages 28871-28874]
[FR Doc No: 2019-13073]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86112; File No. SR-NYSEArca-2019-28]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of a Proposed Rule Change, as Modified by Amendment No. 3, To
List and Trade Shares of the Virtus WMC Risk-Managed Alternative Equity
ETF Under NYSE Arca Rule 8.600-E

June 14, 2019.

I. Introduction

    On April 15, 2019, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
list and trade shares (``Shares'') of the Virtus WMC Risk-Managed
Alternative Equity ETF (``Fund'') under NYSE Arca Rule 8.600-E. The
proposed rule change was published for comment in the Federal Register
on May 3, 2019.\3\ On May 14, 2019, the Exchange filed Amendment No. 1
to the proposed rule change. On May 16, 2019, the Exchange filed
Amendment No. 2 to the proposed rule change, which amended and replaced
the proposed rule change as modified by Amendment No. 1. On June 10,
2019, the Exchange filed Amendment No. 3 to the proposed rule change,
which amended and replaced the proposed rule change as modified by
Amendment No. 2.\4\ The Commission has received no comments on the
proposed rule change. This order approves the proposed rule change, as
modified by Amendment No. 3.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 85751 (April 30,
2019), 84 FR 19141.
    \4\ In Amendment No. 3, the Exchange: (a) Clarified the
permitted investments of the Fund; (b) clarified that the only OTC
derivatives that the Fund may invest in are forward foreign currency
contracts and OTC options on U.S. and foreign exchange-listed equity
securities, U.S. and foreign exchange-listed equity securities
indices, and interest rates; (c) stated that price information
relating to currency forwards will be available from major market
data vendors; and (d) made other clarifying, technical, and
conforming changes. Amendment No. 3 is not subject to notice and
comment because it does not materially alter the substance of the
proposed rule change or raise unique or novel regulatory issues.
Amendment No. 3 is available at: https://www.sec.gov/comments/sr-nysearca-2019-28/srnysearca201928-5656834-185771.pdf.
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II. Description of the Proposal, as Modified by Amendment No. 3
5
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    \5\ For a complete description of the Exchange's proposal, see
Amendment No. 3, supra note 4.
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    The Exchange proposes to list and trade Shares of the Fund under
NYSE Arca Rule 8.600-E, which governs the listing and trading of
Managed Fund Shares on the Exchange. The Fund is a series of ETFis
Series I (``Trust'').\6\ Virtus ETF Advisors LLC (``Adviser'') is the
investment adviser for the Fund. Wellington Management Company LLP is
the sub-adviser to the Fund (``Sub-Adviser'').\7\ ETF Distributors LLC,
a registered broker-dealer, will act as the distributor for the Fund's
Shares and the Bank of New York Mellon will serve as the custodian,
administrator, and transfer agent for the Fund.
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    \6\ According to the Exchange, on February 28, 2019, the Trust
filed with the Commission a Post-Effective Amendment to the Trust's
registration statement on Form N-1A under the Securities Act of 1933
and the 1940 Act relating to the Fund (File Nos. 333-187668 and 811-
22819) (``Registration Statement''). The Exchange represents that
the Trust will file an amendment to the Registration Statement as
necessary to conform to the representations in this filing. In
addition, the Exchange states that the Commission has issued an
order granting certain exemptive relief to the Trust under the 1940
Act. See Investment Company Act Release No. 30607 (July 23, 2013)
(File No. 812-14080).
    \7\ The Exchange states that the Adviser and the Sub-Adviser are
not registered as broker-dealers but that each is affiliated with
one or more broker-dealers and has implemented and will maintain a
``fire wall'' with respect to each such broker-dealer affiliate
regarding access to information concerning the composition of and/or
changes to the Fund's portfolio. In addition, in the event (a) the
Adviser or the Sub-Adviser becomes registered as a broker-dealer or
newly affiliated with a broker-dealer, or (b) any new adviser or
sub-adviser is a registered broker-dealer or becomes affiliated with
a broker-dealer, such entity will implement and maintain a ``fire
wall'' with respect to its relevant personnel or broker-dealer
affiliate regarding access to information concerning the composition
of and/or changes to the portfolio, and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding such portfolio.
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A. Principal Investments of the Fund

    According to the Exchange, the investment objective of the Fund is
to seek to provide superior risk-adjusted total returns over the long
term. The Fund will seek to achieve its investment objective, under
normal market conditions,\8\ by (i) investing in a broadly diversified
portfolio of global equity securities in both developed and emerging
markets, and (ii) implementing a beta management strategy by shorting
futures contracts and purchasing and selling options, as further
described below. Under normal market conditions, the Fund will invest
at least 80% of its net assets (plus any

borrowings for investment purposes) in equity securities, listed
derivatives and over-the-counter (``OTC'') derivatives, cash and cash
equivalents, each as further described below.
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    \8\ The term ``normal market conditions'' is defined in NYSE
Arca Rule 8.600-E(c)(5).
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    The Fund will invest in the following U.S. and foreign exchange-
listed equity securities of U.S. and foreign issuers: Common stock,
preferred stock, convertible preferred stock, rights, warrants,
American Depositary Receipts, Global Depositary Receipts, and real
estate investment trusts.
    The Fund may hold cash and cash equivalents.\9\
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    \9\ The term ``cash equivalents'' is defined in NYSE Arca Rule
8.600-E, Commentary .01(c).
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    The Fund may hold U.S. and foreign exchange-traded futures and U.S.
and foreign exchange-traded or OTC options on U.S. and foreign
exchange-listed equity securities, U.S. and foreign exchange-listed
equity securities indices, and interest rates.
    The Fund may invest in forward foreign currency contracts and U.S.
and foreign exchange-traded foreign currency futures contracts.
    The Fund may enter into short sales of any securities and financial
instruments in which the Fund may invest.
    The Fund may use derivative instruments described above as a
substitute for investing directly in an underlying security or other
financial instrument, to seek to enhance returns, to seek to manage or
reduce exposure/risk, or to seek to manage foreign currency risk.

B. Other Investments

    While the Fund, under normal market conditions, will invest at
least 80% in the securities and financial instruments described above,
the Fund may invest its remaining assets in the following securities
and financial instruments: Exchange-traded funds (``ETFs''); \10\
convertible bonds; and U.S. government securities (that are not cash
equivalents as defined in NYSE Arca Rule 8.600-E, Commentary
.01(c)).\11\
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    \10\ For purposes of this filing, the term ``ETFs'' includes
Investment Company Units (as described in NYSE Arca Rule 5.2-
E(j)(3)); Portfolio Depositary Receipts (as described in NYSE Arca
Rule 8.100-E); and Managed Fund Shares (as described in NYSE Arca
Rule 8.600-E). All ETFs will be listed and traded in the U.S. on a
national securities exchange. While the Fund may invest in inverse
ETFs, the Fund will not invest in leveraged (e.g., 2X, -2X, 3X or -
3X) ETFs.
    \11\ These are obligations guaranteed by the U.S. government and
include U.S. Treasury notes, U.S. Treasury bonds, and U.S. Treasury
bills.
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C. Investment Restrictions

    The Fund will not invest in securities or other financial
instruments that have not been described in the proposed rule change.
    The Fund's investments, including derivatives, will be consistent
with the Fund's investment objective and will not be used to enhance
leverage (although certain derivatives and other investments may result
in leverage). That is, the Fund's investments will not be used to seek
performance that is the multiple or inverse multiple (e.g., 2X or -3X)
of the Fund's primary broad-based securities benchmark index (as
defined in Form N-1A).\12\
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    \12\ The Fund's broad-based securities benchmark index will be
identified in a future amendment to the Registration Statement
following the Fund's first full calendar year of performance.
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D. Use of Derivatives by the Fund

    The Exchange represents that the Fund' investments in derivative
instruments will be made in accordance with the 1940 Act and consistent
with the Fund's investment objective and policies. To limit the
potential risk associated with such transactions, the Fund will enter
into offsetting transactions or segregate or ``earmark'' assets
determined to be liquid by the Adviser in accordance with procedures
established by the Trust's Board of Trustees and in accordance with the
1940 Act or as permitted by applicable Commission guidance. According
to the Exchange, these procedures have been adopted consistent with
Section 18 of the 1940 Act and related Commission guidance. In
addition, the Exchange states that the Fund has included appropriate
risk disclosure in its offering documents, including leveraging risk.
    The Exchange states that the Adviser and Sub-Adviser will monitor
counterparty credit risk exposure (including for OTC derivatives) and
evaluate counterparty credit quality on a continuous basis.
    The Exchange states that the Adviser and the Sub-Adviser believe
that there will be minimal, if any, impact to the arbitrage mechanism
as a result of the Fund's use of derivatives. According to the
Exchange, the Adviser and the Sub-Adviser understand that market makers
and participants should be able to value derivatives as long as the
positions are disclosed with relevant information. The Adviser and the
Sub-Adviser believe that the price at which Shares of the Fund trade
will continue to be disciplined by arbitrage opportunities created by
the ability to purchase or redeem Shares of the Fund at their net asset
value (``NAV''), which should ensure that Shares of the Fund will not
trade at a material discount or premium in relation to their NAV.

E. Application of Generic Listing Requirements

    The Exchange states that the portfolio for the Fund will not meet
all of the generic listing requirements set forth in Commentary .01 to
NYSE Arca Rule 8.600-E applicable to the listing of Managed Fund
Shares. The Exchange represents that the Fund's portfolio will meet all
such requirements except for those set forth in Commentary .01(e) with
respect to the Fund's investments in OTC derivatives.\13\
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    \13\ Commentary .01(e) to Rule 8.600-E provides that a portfolio
may hold OTC derivatives, including forwards, options and swaps on
commodities, currencies and financial instruments (e.g., stocks,
fixed income, interest rates, and volatility) or a basket or index
of any of the foregoing; however, on both an initial and continuing
basis, no more than 20% of the assets in the portfolio may be
invested in OTC derivatives (calculated as the aggregate gross
notional value of the OTC derivatives).
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    Specifically, the Exchange states that the aggregate gross notional
value of the Fund's investments in OTC derivatives may exceed 20% of
Fund assets, calculated as the aggregate gross notional value of such
OTC derivatives. The Exchange proposes that up to 50% of the Fund's
assets (calculated as the aggregate gross notional value) may be
invested in OTC derivatives that are used to reduce currency, interest
rate, or credit risk arising from the Fund's investments (i.e., for
hedging purposes). The Exchange states that the Fund's investments in
OTC derivatives, other than OTC derivatives used to hedge the Fund's
portfolio against currency, interest rate, or credit risk, will be
limited to 20% of the assets in the Fund's portfolio, calculated as the
aggregate gross notional value of such OTC derivatives. As discussed
above, the only OTC derivatives that the Fund may invest in are forward
foreign currency contracts and OTC options on U.S. and foreign
exchange-listed equity securities, U.S. and foreign exchange-listed
equity securities indices, and interest rates.
    The Exchange states that the Adviser and Sub-Adviser represent that
the proposed exception from the generics described above is consistent
with the Fund's investment objective and will further assist the
Adviser and Sub-Adviser to achieve such investment objective. The
Exchange states that, other than Commentary .01(e), the Shares of the
Fund will conform to the initial and continued listing criteria under
NYSE Arca Rule 8.600-E and will meet all other requirements of NYSE
Arca Rule 8.600-E.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 3, is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\14\ In particular, the Commission finds that the
proposed rule change, as modified by Amendment No. 3, is consistent
with Section 6(b)(5) of the Act,\15\ which requires, among other
things, that the Exchange's rules be designed to prevent fraudulent and
manipulative acts and practices, 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.
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    \14\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \15\ 15 U.S.C. 78f(b)(5).
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    As noted above, the aggregate gross notional value of the Fund's
investments in OTC derivatives may exceed the 20% limit in Commentary
.01(e) to NYSE Arca Rule 8.600-E. Specifically, the Exchange proposes
that up to 50% of the Fund's assets may be invested in OTC derivatives
that are used to hedge the Fund's portfolio, and that up to 20% of the
Fund's assets may be invest in other OTC derivatives (in each case,
calculated as the aggregate gross notional value of such OTC
derivatives).
    According to the Exchange, if the Fund were limited to investing up
to 20% of its assets in OTC derivatives, the Fund would have to exclude
or underweight its strategies utilizing OTC derivatives and the Fund
would be less diversified, concentrating risk in the other strategies
it plans to utilize.\16\ In addition, the Exchange states that the
inability of the Fund to adequately hedge its holdings could expose the
Fund's shareholders to additional investment risk.\17\ Furthermore, the
Exchange states that OTC derivatives can provide the Fund with more
flexibility to manage risk and may frequently be a more efficient
hedging vehicle than listed derivatives.\18\ The Exchange states that
OTC derivatives can be customized to a greater degree than listed
derivatives and can provide the Fund with more flexibility to negotiate
the exact exposure the Fund requires, thereby providing a better hedge
on Fund assets than listed derivatives.\19\ In addition, the Exchange
states that the use of OTC derivatives can mitigate trading costs
because they allow for more control over the duration of a hedge and
are not subject to costs of rolling that are associated with listed
derivatives.\20\
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    \16\ See Amendment No. 3, supra note 4, at 11-12. The Exchange
states that the Adviser represents that it is not possible to
implement its strategies efficiently using listed derivatives
because the foreign exchange forward market is OTC. The Exchange
also states that use of OTC options on U.S. and foreign exchange-
listed equity securities and U.S. and foreign exchange-listed equity
securities indices may be an important means to reduce risk in the
Fund's equity investments or to enhance returns of such investments.
See id. at 11.
    \17\ See id. at 18.
    \18\ See id.
    \19\ See id. at 10.
    \20\ See id.
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    On a daily basis, the Fund will disclose on its website the
information regarding the Disclosed Portfolio required under NYSE Arca
Rule 8.600-E(c)(2) to the extent applicable.\21\ The website
information will be publicly available at no charge.\22\
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    \21\ NYSE Arca Rule 8.600-E(c)(2) requires that the website for
each series of Managed Fund Shares disclose the following
information regarding the Disclosed Portfolio, to the extent
applicable: (A) ticker symbol; (B) CUSIP or other identifier; (C)
description of the holding; (D) with respect to holdings in
derivatives, the identity of the security, commodity, index or other
asset upon which the derivative is based; (E) the strike price for
any options; (F) the quantity of each security or other asset held
as measured by (i) par value, (ii) notional value, (iii) number of
shares, (iv) number of contracts, and (v) number of units; (G)
maturity date; (H) coupon rate; (I) effective date; (J) market
value; and (K) percentage weighting of the holding in the portfolio.
    \22\ See Amendment No. 3, supra note 4, at 13.
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    The Commission notes that, other than Commentary .01(e), the Fund
will meet all the requirements of NYSE Arca Rule 8.600-E.
    The Commission also finds that the proposal is consistent with
Section 11A(a)(1)(C)(iii) of the Act,\23\ which sets forth Congress's
finding that it is in the public interest and appropriate for the
protection of investors and the maintenance of fair and orderly markets
to assure the availability to brokers, dealers, and investors of
information with respect to quotations for, and transactions in,
securities. Quotation and last sale information for the Shares will be
available via the Consolidated Tape Association (``CTA'') high-speed
line. The Portfolio Indicative Value (``PIV'') for the Fund, as defined
in NYSE Arca Rule 8.600-E(c)(3), will be widely disseminated by one or
more major market data vendors at least every 15 seconds during the
Exchange's Core Trading Session. Information regarding market price and
trading volume of the Shares will be continually available on a real-
time basis throughout the day on brokers' computer screens and other
electronic services. Information regarding the previous day's closing
price and trading volume information for the Shares will be published
daily in the financial section of newspapers.
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    \23\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    Quotation and last sale information for ETFs and other U.S.
exchange-traded equity securities will be available via the CTA high-
speed line. Quotation and last sale information for options cleared via
the Options Clearing Corporation are available via the Options Price
Reporting Authority. Intra-day and closing price information regarding
U.S and foreign exchange-traded options and futures will be available
from the exchange on which such instruments are traded. Price
information relating to OTC options and currency forwards will be
available from major market data vendors. Intra-day price information
for U.S. and foreign exchange-traded options on futures will be
available from the applicable exchange and from major market data
vendors. For U.S. and foreign exchange-listed equity securities,
intraday price quotations will generally be available from broker-
dealers and trading platforms (as applicable). Price information for
cash equivalents and convertible bonds will be available from major
market data vendors. Price information regarding U.S. government
securities generally may be obtained from brokers and dealers who make
markets in such securities or through nationally recognized pricing
services through subscription agreements. Additionally, the Trade
Reporting and Compliance Engine (``TRACE'') of the Financial Industry
Regulatory Authority (``FINRA'') will be a source of price information
for certain fixed income securities to the extent transactions in such
securities are reported to TRACE.\24\
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    \24\ Broker-dealers that are FINRA member firms have an
obligation to report transactions in specified debt securities to
TRACE to the extent required under applicable FINRA rules.
Generally, such debt securities will have at issuance a maturity
that exceeds one calendar year. For fixed income securities that are
not reported to TRACE, (i) intraday price quotations will generally
be available from broker-dealers and trading platforms (as
applicable) and (ii) price information will be available from feeds
from market data vendors, published or other public sources, or
online information services, as described above. See Amendment No.
3, supra note 4, at 13, n. 14.
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    The Commission also believes that the proposal is reasonably
designed to promote fair disclosure of information that may be
necessary to price the Shares appropriately and to prevent trading when
a reasonable degree of transparency cannot be assured. The Exchange has
obtained a representation from the issuer of the Shares that the

NAV per Share will be calculated daily and that the NAV and the
Disclosed Portfolio will be made available to all market participants
at the same time. Trading in the Shares will be halted if the circuit-
breaker parameters in NYSE Arca Rule 7.12-E have been reached. Trading
also may be halted because of market conditions or for reasons that, in
the view of the Exchange, make trading in the Shares inadvisable.
Moreover, trading in the Shares will be subject to NYSE Arca Rule
8.600-E(d)(2)(D), which sets forth circumstances under which Shares may
be halted.
    The Exchange states that it has a general policy prohibiting the
distribution of material, non-public information by its employees. The
Exchange states that neither the Adviser nor the Sub-Adviser are
registered as a broker-dealer but each is affiliated with one or more
broker-dealers and each has implemented and will maintain a ``fire
wall'' with respect to such broker-dealer affiliate regarding access to
information concerning the composition of and/or changes to the Fund's
portfolio. Further, the Commission notes that the Reporting Authority
that provides the Disclosed Portfolio must implement and maintain, or
be subject to, procedures designed to prevent the use and dissemination
of material, non-public information regarding the actual components of
the portfolio.\25\
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    \25\ See NYSE Arca Rule 8.600-E(d)(2)(B)(ii).
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    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. In support of this
proposal, the Exchange represents that:
    (1) Other than Commentary .01(e), as specifically described herein,
the Fund will meet all other requirements of NYSE Arca Rule 8.600-E.
    (2) A minimum of 100,000 Shares of the Fund will be outstanding at
the commencement of trading on the Exchange.
    (3) Trading in the Shares will be subject to the existing trading
surveillances administered by the Exchange, as well as cross-market
surveillances administered by FINRA on behalf of the Exchange, and
these procedures are adequate to properly monitor Exchange trading of
the Shares in all trading sessions and to deter and detect violations
of Exchange rules and applicable federal securities laws.
    (4) The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed, and may obtain information, regarding trading in
the Shares, certain exchange-traded equity securities (including ETFs),
certain exchange-traded options, and certain futures with other markets
and other entities that are members of the Intermarket Surveillance
Group (``ISG''). In addition, the Exchange may obtain information
regarding trading in the Shares, certain exchange-traded equity
securities (including ETFs), certain exchange-traded options and
certain futures from markets and other entities with which the Exchange
has in place a comprehensive surveillance sharing agreement. FINRA, on
behalf of the Exchange, is able to access, as needed, trade information
for certain fixed income securities held by the Fund reported to
FINRA's TRACE.
    (5) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders in an Information Bulletin of the
special characteristics and risks associated with trading the Shares.
Specifically, the Information Bulletin will discuss: (a) The procedures
for purchases and redemptions of Shares in creation units (and that
Shares are not individually redeemable); (b) NYSE Arca Rule 9.2-E(a),
which imposes a duty of due diligence on its Equity Trading Permit
Holders to learn the essential facts relating to every customer prior
to trading the Shares; (c) the risks involved in trading the Shares
during the Early and Late Trading Sessions when an updated PIV will not
be calculated or publicly disseminated; (d) how information regarding
the PIV and the Disclosed Portfolio is disseminated; (e) the
requirement that Equity Trading Permit Holders deliver a prospectus to
investors purchasing newly issued Shares prior to or concurrently with
the confirmation of a transaction; and (f) trading information.
    (6) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (7) For initial and continued listing, the Fund will be in
compliance with Rule 10A-3 under the Act.\26\
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    \26\ See 17 CFR 240.10A-3.
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    (8) The Fund's investments, including derivatives, will be
consistent with the Fund's investment objective and will not be used to
enhance leverage (although certain derivatives and other investments
may result in leverage). That is, the Fund's investments will not be
used to seek performance that is the multiple or inverse multiple
(e.g., 2X or -3X) of the Fund's primary broad-based securities
benchmark index (as defined in Form N-1A).
    (9) The only OTC derivatives that the Fund may invest in are
forward foreign currency contracts and OTC options on U.S. and foreign
exchange-listed equity securities, U.S. and foreign exchange-listed
equity securities indices, and interest rates.
    The Exchange represents that all statements and representations
made in this filing regarding (a) the description of the portfolio or
reference asset, (b) limitations on portfolio holdings or reference
assets, or (c) the applicability of Exchange listing rules specified in
the rule filing constitute continued listing requirements for listing
the Shares on the Exchange. In addition, the issuer has represented to
the Exchange that it will advise the Exchange of any failure by the
Fund to comply with the continued listing requirements, and, pursuant
to its obligations under Section 19(g)(1) of the Act, the Exchange will
monitor \27\ for compliance with the continued listing requirements. If
the Fund is not in compliance with the applicable listing requirements,
the Exchange will commence delisting procedures under NYSE Arca Rule
5.5-E(m).
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    \27\ The Commission notes that certain proposals for the listing
and trading of exchange-traded products include a representation
that the exchange will ``surveil'' for compliance with the continued
listing requirements. See, e.g., Securities Exchange Act Release No.
77499 (April 1, 2016), 81 FR 20428, 20432 (April 7, 2016) (SR-BATS-
2016-04). In the context of this representation, it is the
Commission's view that ``monitor'' and ``surveil'' both mean ongoing
oversight of compliance with the continued listing requirements.
Therefore, the Commission does not view ``monitor'' as a more or
less stringent obligation than ``surveil'' with respect to the
continued listing requirements.
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    This approval order is based on all of the Exchange's statements
and representations, including those set forth above and in Amendment
No. 3.
    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendment No. 3, is consistent with Section
6(b)(5) of the Act \28\ and Section 11A(a)(1)(C)(iii) of the Act \29\
and the rules and regulations thereunder applicable to a national
securities exchange.
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    \28\ 15 U.S.C. 78f(b)(5).
    \29\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\30\ that the proposed rule change (SR-NYSEArca-2019-28), as
modified by Amendment No. 3, be, and it hereby is, approved.
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    \30\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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    \31\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-13073 Filed 6-19-19; 8:45 am]
 BILLING CODE 8011-01-P


            Supporting Statement for Information Collection Request

          On-Highway Motorcycle Certification and Compliance Program                             EPA ICR Number 2535.01                                                                                May, 2016                                                                       Compliance Division                    Office of Transportation and Air Quality                           Office of Air and Radiation                      U.S. Environmental Protection Agency

                      Part A of the Supporting Statement

Section 1: Identification of the Information Collection 1(a) Title and Number of the Information Collection "Information Collection Request (ICR) for On-Highway Motorcycle (HMC) Certification and Compliance Program"; The Environmental Protection Agency (EPA) tracking number for this information collection request (ICR) is Number 2535.01. The Office of Management and budget (OMB) Control Number is 2060-NEW. This is a new collection.

1(b) Short Characterization/Abstract

Under the Clean Air Act (42 U.S.C. 7521 et seq.) manufacturers and importers of on-highway motorcycles must have a certificate of conformity issued by the EPA covering any vehicle they intend to offer for sale in the United States. A certificate of conformity represents to the prospective purchaser that the respective vehicle conforms to all applicable emissions requirements. In issuing a certificate of conformity, the EPA reviews vehicle information and emissions test data to determine if the required testing has been performed by the certificate applicant and the required emissions levels have been demonstrated. After a certificate of conformity has been issued, the Agency may request additional information to verify that the product continues to meet its certified emissions standards throughout its useful life. 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 the EPA's regulations in Title 40 of Code of Federal Regulations (CFR) are listed in 40 CFR part 9.

The HMC program was previously included under the current ICR for light-duty vehicle emissions certification and in-use testing [EPA ICR No. 0783.62, OMB Control No. 2060-0104]. The new HMC ICR covers the application for a certificate of conformity (and supporting test results) submitted by HMC certification applicants prior to introduction into US commerce as well as various reports and information during and after production, including the defect information report (DR) and voluntary emissions recall report (VERR) that covers HMCs. The EPA's processing of this information is conducted by the Compliance Division, Office of Transportation and Air Quality, Office of Air and Radiation, US EPA. While this is a new ICR notice, there are no additional aspects of the on-highway motorcycle program that have been added to the program since the 2013 renewal of the previous ICR. However, the EPA has developed several templates that manufacturers may use to meet their reporting obligations and made improvements to our compliance information system for which we request feedback from the reporting community.

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 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.

Information collected for the purposes listed above consists of descriptions of on-highway motorcycles (with emphasis on emission control systems), test results, defect and recall reports, and sales information. These data are reviewed to verify that the necessary tests have been performed and the manufacturer's product line meets emission standards.

All reporting covered by this ICR can now done electronically via the EPA's web-based vehicle and engine compliance information system, Verify, with the exception of defect reports and voluntary emissions recall reports (DR/VERR) which must still be mailed to the Agency in hardcopy. Subject to confidentiality claims, this information is made available to interested parties upon request. Emission test information and some recall notifications is available on the internet.

Approximately 74 motorcycle manufacturers currently submit applications each year to certify their products. The on-highway motorcycle program will impose a cost of about $386,088 annually on the regulated industry respondents: $151,150 in operation and maintenance costs, $113,834 in capital and startup costs, and $168,614 in labor costs.

Additional details on the coverage of this ICR are given in Section 2(b), below.

Section 2: Need For and Use of the Collection

2(a) Need/Authority for the Collection

Under Title II of the Clean Air Act (42 U.S.C. 7521 et seq.), the EPA is charged with issuing certificates of conformity for motor vehicle designs that comply with applicable emission standards set under section 202(a)(1) of the Act, such as those for Carbon Monoxide (CO), Hydrocarbons (HC) and Oxides of Nitrogen (NOx). (This authority was clarified in the Supreme Court's decision State of Massachusetts v. EPA, 127 S. Ct. 1438 (2007)). Section 202(a)(1) states that "the Administrator shall by regulation prescribe (and from time to time revise) [...] standards applicable to the emission of any air pollutant from any class or classes of new motor vehicles [...], which in his judgment cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare." Under Section 206(a) of the Clean Air Act (42 U.S.C. 7525) "... The Administrator shall test ... any new motor vehicle ... submitted by a manufacturer ... If such vehicle ... conforms ... the Administrator shall issue a certificate of conformity."  While the EPA has delegated a substantial portion of the process of calculating and reporting emissions and fuel economy results to the manufacturers, the test results upon which labels are based are subject to EPA confirmatory testing. Such confirmation testing makes sure that results from different manufacturers can be accurately used for comparison.

Relevant portions of the above statutes can be found online at https://www.epa.gov/clean-air-act-overview/title-ii-emission-standards-moving-sources. The regulations dealing with on-highway motorcycle emission control can be found in 40 CFR Parts 85 and 86. These regulations are not attached to this statement due to their length and technical nature but may also be found on-line at www.ecfr.gov.

2(b) Practical Utility/Users of the Data

The discussion in this section outlines the major features of the program covered by this ICR as well as summarizing some of the recent historical and ongoing developments that have a bearing on the information burden.

Highway Motorcycles Certification and Compliance

Federal standards for HMCs have been in effect since the 1978 model year. On January 15, 2004, the EPA finalized the first revision to these standards, as well as included for the first time engines with displacements of less than 50cc and added new standards that require the use of low permeability fuel tanks and fuel hoses. These provisions were effective with the 2006 model year. Manufacturers group vehicles/engines into engine families, conduct emissions tests to demonstrate compliance with exhaust emissions standards, calculate durability factors for useful-life compliance, and submit an application for certification along with an application fee. The EPA issues a certificate, possibly after confirmatory testing. Manufacturers are potentially subject to production vehicle testing for EPA in-use compliance investigations (40 CFR 86.415-78).

Defect Reports and Voluntary Emissions Recall Reports

A reporting component of the on-highway motorcycle program may require filing of defect reports, voluntary emissions recall reports, and voluntary recall quarterly reports by manufacturers for in-use vehicles. This ICR 2535.01disaggregates the DR/VERR reporting requirements for on-highway motorcycles from the light-duty vehicle program (EPA ICR 0783.62, OMB 2060-0104). Manufacturers file these reports using templates recommended by the EPA to streamline the reporting process and either mailed or emailed to the EPA.  The reporting recording keeping burden estimates are included in this ICR.

 Investigation into Possible Noncompliance of HMCs

The HMC emissions compliance program includes pre-production, production, and in-use components. HMCs are evaluated as prototypes prior to production, and those designs that meet applicable criteria are certified for introduction into commerce. The EPA also has discretion to conduct production vehicle testing. This has become an important compliance tool for the EPA. While the EPA retains the statutory and regulatory authority to conduct production tests for on-highway motorcycles no significant burden is assigned to this activity in this ICR due to the very limited nature in which this tool is used. Finally, in addition to the manufacturer voluntary recall program, the EPA will follow up on information shared with the agency by other administrative and state agencies, such as California's Air Resources Board and Environment Canada, to investigate vehicle compliance.

Verify

Electronic submission by manufactures to the EPA's engine and vehicle compliance information system known as Verify began to be implemented for on-highway motorcycles in 2005.  . The Verify system features a web interface for the submission of manufacturer certification information. The savings from this, along with other features, including improved coordination with California's certification process and improved manufacturer capacity to self-correct submissions, were not included in the prior baseline and are now reflected in this ICR. For this reason, the reporting burden estimates associated with submitting information to the EPA in this ICR are considered to be more accurate than our previous ICR estimates. Feedback from the highway motorcycle manufacturers questioned for this ICR continues to be largely positive.

Averaging Program for HC+NOx

To provide flexibility in meeting the on-highway motorcycle emissions standards, we adopted an emission credit program that provided an early incentive for HMC manufacturers to bank credits for use in future model years while retaining the ability to average emissions across engine families. Under the averaging program, manufacturers are able to balance the certified emissions of their motorcycles so that the sales-weighted emissions level meets the applicable standard. This means that some engine families may have emissions below the standards, while others have emissions higher than the standards. For enforcement purposes, manufacturers are required to specify a certification limit, or ``Family Emission Limit'' (FEL) for each engine family. The FEL is the emission level that a particular engine family is certified as meeting and, in effect, becomes the standard for the individual family. The FEL may be above or below the applicable standard as long as the manufacturer's sales-weighted emissions level meets the applicable standard. Manufacturers participating in the averaging program (promulgated under 40 CFR 86.449), must certify each participating family to an FEL in its application for certification. In its application, participants must also project an average emission level for all families participating in the program. At the end of the model year, each participant must submit an end-of-year report accounting for the actual production volume, calculated to final average to demonstrate compliance with the standard. This report must be received by the EPA within 120 days of the end of the model year. This reporting requirement is a necessary component of the averaging program.

Section 3: Non-duplication, Consultations, and Other Collection Criteria

3(a) Non-duplication

Efforts have been made to eliminate duplication in this information collection. As mentioned above, the EPA's implementation of the Verify system, under which the manufacturer submission process occurs should further help minimize duplication in submissions.

Because of the specialized nature of HMC manufacturing and the fact that product plans and emission performance information may be submitted to the EPA prior to the introduction of production vehicles into US commerce, this information is not available from any source other than the manufacturer. Therefore, this information is not likely to be collected by any other governmental agency for this or related purposes.   3(b) Public Notice

EPA issued a Federal Register Notice on February 12, 2016 9 (81 FR 7536).  No comments were received.

3(c) Consultations

In preparing this ICR submission, the EPA has consulted with the following individuals working in the regulated industries:

	 Name	 Firm Telephone Pat Proctor

Harley-Davidson Motor Company

Phone:<PHONE_NUMBER>

Eric Barnes

American Honda Motor Co., Inc.

(310) 783-3864 Larry Keller Polaris Industries Inc. (651) 408-7253

These individuals have experience with the reporting aspects of the EPA's current programs. Comments received have been reflected in the burden estimates discussed below.

3(d) Effects of Less Frequent Collection

As required by the Clean Air Act (42 USC 7525(a)), emission information is submitted on a yearly basis coinciding with the manufacturer's "model year." The EPA allows applicants to define their own "model year", within limits, thus granting some flexibility in this regard. Major product changes typically occur at the start of a model year. For these reasons, a collection frequency longer than a model year is not possible. However, when a vehicle design is "carried over" to a subsequent model year, the amount of new information required is substantially reduced.

3(e) General Guidelines

Manufacturers are required to keep some records for periods longer than three years. This requirement stems from the statutory requirement that manufacturers warrant some items for periods longer than three years. Manufacturers must also recall vehicle classes failing to meet emission standards during their useful life, typically five to eight years depending on vehicle type. In order to satisfy these obligations, manufacturers must retain product information, with particular emphasis on the emission control systems. This information is vital in assuring that repairs and replacement parts properly function during the life of the warranty and that emissions limitations are met during the full useful lives. The EPA believes that this recordkeeping requirement does not impose an unreasonable burden given the warranty and recall obligations. In fact, manufacturers would probably retain this information to support their normal business of supplying replacement parts.

This information collection activity complies with the remaining guidelines in 5 CFR 1320.5.

3(f) Confidentiality

Information submitted by manufacturers is held as confidential until the specific vehicle to which it pertains is available for purchase. After vehicles are available, most information associated with the manufacturer/importer's application is available to the public. Under section 208 of the Clean Air Act (42 USC 7542(c)) all information, other than trade secret processes or methods, must be publicly available. Proprietary information is granted confidentiality in accordance with the Freedom of Information Act, EPA regulations at 40 CFR Part 2, and class determinations issued by the EPA's Office of General Counsel.

3(g) Sensitive Questions

No sensitive questions are asked in this information collection. This collection complies with the Privacy Act and OMB Circular A-108.

Section 4: Respondents and Information Requested

4(a) Respondents/NAICS Codes

The respondents are involved in the industries shown in the following table:

Category NAICS Codes [A] Examples of Potentially Regulated Entities Industry 336991 Motorcycle and motorcycle parts manufacturers Industry 336310 Motor Vehicle Gasoline Engine and Engine Parts Manufacturing A North American Industry Classification System (NAICS)   4(b) Information Requested

(i) Data items

Manufacturers of on-highway motorcycles are required to submit descriptions of their planned product line, including detailed descriptions of the emission control system, test data, and demonstrations of compliance with other requirements, such as methods for determining deterioration factors for durability. Manufacturers supply test data to verify that their products will comply with the emission standards. They are also required to notify the EPA of in-use defects experienced by their vehicles and reports of voluntary recalls. Other major data items include submission of technical service bulletins; copies of warranties; and averaging and banking calculations. Given the diversity of vehicles produced and the complicated nature of the regulations, in certain instances manufacturers may also find it advantageous to request variances from standard EPA procedures.

A list of detailed information requirements and their corresponding regulation citations appears in Appendix II.

(ii) Respondent Activities

While there is no "typical" respondent, all manufacturers must describe their product and supply test data and other information to verify compliance. The biggest burden in this ICR comes from the cost of test facilities and the costs and labor hours of running tests to generate the data that must be reported to the EPA. The EPA will conduct a limited number of "confirmatory tests" to monitor manufacturer results. This generally requires that emissions test vehicle(s) be shipped to the EPA's designated testing laboratory. Manufacturers must also retain records. These tasks are repeated for each model year, although typically previous data and information can be "carried over" when no significant changes have occurred. If, during the course of a model year a product change is made (an "amendment" to an application or certified configuration), the EPA must be notified. Under some circumstances additional test data may be required.

Manufacturers must also submit reports concerning defects that are discovered and voluntary recalls that are conducted; they may also be requested to submit to production vehicle testing that the EPA may elect to conduct.

Section 5: The Information Collected -- Agency Activities, Collection Methodology, and Information Management

 Agency Activities

A significant portion of the EPA's emission compliance activity is spent reviewing applications to verify that the correct vehicle tests have been conducted and necessary information submitted. Amendments to applications must also be selectively reviewed for possible emissions impacts and manufacturers' evaluations thereof. A part of this process involves determining if "carry over" of data from a previous model year or "carry-across" data from testing of similar vehicles and engines is appropriate or if new testing will be required. The EPA also selects a number of tests for confirmation at the EPA's own designated laboratory. The EPA maintains the relevant reporting systems and records and analyzes relevant data for regulatory and oversight purposes.

The EPA prepares annual reports of emission test results submitted by the manufacturers. These and other reports, data and information are now available on the EPA's website.at https://www3.epa.gov/otaq/crttst.htm.

5(b) Collection Methodology and Management

All routine information (test results, vehicle descriptions, and all aspects of certification applications) is electronically transmitted directly from the manufacturers through the Verify system. DR/VERR submissions are not yet part of the Verify system.

All information received by the EPA is subject to review. Data submitted electronically is in some cases automatically screened; for example, on-highway motorcycle test results that are close to emission standard(s) are flagged for a more detailed review. Descriptions of the proposed product line are checked to verify that the appropriate vehicles have been tested. (The emission program relies on a combination of "worst case" and representative data to accomplish its goals.)

5(c) Small Entity Flexibility

The EPA has special procedures for small-volume on-highway motorcycle manufacturer certifications; i.e., those whose total sales are less than 10,000 units per year. These special procedures allow the small-volume manufacturer to submit a simplified application for certification with respect to durability demonstrations. These manufacturers also have reduced testing and reporting requirements. Further, by the very nature of their size, small volume manufacturers typically have very limited product lines. This characteristic both reduces the amount of information which must be submitted and also simplifies the process of selecting the correct test vehicle(s). There are also several special provisions to reduce the regulatory burden on small highway motorcycle manufacturers: in addition to hardship exemptions and program delays, manufacturers with sales less than 3000 units per year and 500 employees may use broader definitions of engine categories.

5(d) Collection Schedule

Manufacturers must submit information for each "model year" that it intends to build (or import) vehicles. Submission is by "engine family." A "model year" approximates when a product is produced. Engines and vehicles can be designated the next model-year if manufactured by January 2 of the preceding calendar-year. For instance, a 2016 model year engine or vehicle can be produced from January 2, 2015 through December 31, 2016. If a product is unchanged between model years, much of the information can be "carried over." The collection frequency and burden are determined to a large extent by the manufacturer's marketing and production plans. However, as required by law, some submission is required for each model year's production. Other information collections listed in Appendix II are conducted according to schedules that were determined in rulemakings.

Section 6: Estimating the Burden and Cost of the Collection

6(a) Estimating Respondent Burden

The burden estimates below consider the HMC program, and the DR/VERR requirements, all described above in section 2(b).

In agreement with this ICR, each manufacturer's activities toward certification or a related reporting requirement is counted as a "response". As explained in support of that action, this is by far the most logical and tractable unit of activity for burden accounting.

Within the HMC program, the estimation of respondent burden hours and respondent costs essentially breaks down as testing costs, which constitute the majority of Operations and Maintenance; testing facilities costs, which constitute the majority of Startup and Capital; the labor hours to conduct the tests; and additional costs and hours associated with other reporting and recordkeeping burdens. In addition, some features are specific to particular programs (notably permeation testing). The DR/VERR burden is entirely reporting and recordkeeping for HMC manufacturers.

The changes in this ICR from ICR 0783.62 reflect changes in the estimated numbers of mandatory tests performed, due to estimates of the number of engine families certified and tested, rather than changes in regulation. The number of tests have been updated to reflect computer query results for model year 2014. Model Year 2015 data are not yet available.

The present burden estimate continues the process of updating based on a renewed examination of the burdens, consultations with industry, and consultations with program administrators within the EPA.

Whereas manufacturers develop their products within the context of compliance with all the requirements of the Clean Air Act, we understand the Paperwork Reduction Act to be centrally concerned with reporting and recordkeeping burdens. Thus, we start with the burden of submitting information to the EPA and keeping copies of that information. From there we go on to consider the costs of developing the information that has to be reported. Consequently, this ICR has traditionally included the burden of conducting tests that have to be reported to support the EPA's oversight of compliance with the Clean Air Act. We take the cost of conducting the tests to include the capital costs of building the facilities to run the tests and the associated operations and maintenance costs, such as mileage accumulation for durability determinations, and labor costs.

Estimated Respondent Burden Hours: Program/Activity Engine Families/Year Burden/ Response (hours) Total (hours) Highway Motorcycles 288 18.1 3,594

6(b) Estimating Respondent Costs  Estimating labor costs

The labor costs in this ICR reflect the May 2015 BLS National Industry-Specific Occupational Employment and Wage Estimates (http://www.bls.gov/bls/blswage.htm). With a 130% overhead multiplier, also based on the BLS benefits adjustment factor of 30% for 2015, the categories are $83.80 manager, $38.50 technical, and $28.58 administrative. The resulting overall average for the highway motorcycle emissions IC becomes $38.64 per hour. Use of these rates represents a small reduction in the rates previously used for the on-highway motorcycle burden adjustment (ICR 0783.52).

Information technology specialists for analysis and coding and label redesign are priced at $100 per hour. These are considered one-time startup costs and are not included in the labor burden.  We have estimated labor costs for these three categories for each labor item. Applied to the total of 3,594 hours, the annual respondent labor burden is $168,614.

 Estimating Operations and Maintenance Costs        Program/Activity Number of Engine Families Burden/ Response ($) Total ($) Highway Motorcycles                                                                             288                                                                         $524.83                                                                        $151,150

Operations and Maintenance (O&M) costs are very largely those associated with running tests; there are also small cost elements associated with other reporting and recordkeeping activities. O&M costs in this ICR are therefore highly dependent on the fluctuations in the size of the industries and do not reflect new program changes.

O&M test costs here reflect a decrease in the number of HMC engine families being certified. A change in the O&M costs comes from inclusion of testing estimates for model years 2015.

 Estimating Capital Costs

Annualized Capital and Startup Costs:

Program/Activity Number Engine Families/Year Total ($) Highway Motorcycles 288 $113,834

To perform the required testing, a combination of "environmental" (exhaust and evaporative emissions) test cells are required. A significant change in this ICR is made for evaporative emissions testing, which was not fully anticipated in the previous ICR estimates. Our estimates now reflect two changes in information; 1) data of the evaporative program since the 2008 calendar year, and 2) estimates of evaporative testing from commercial test facilities.

These capital costs have long been treated as ongoing costs rather than start-up costs in the 0783 series. In effect, this allows a capital cost to be attributed on a per-test basis. Because of the wide variety of circumstances among manufacturers (land availability, capital assets, lending terms, labor shifts) and the continuing changes in the numbers of vehicles and engines being certified from year to year, this is the best method of counting facilities capital costs and one which allows continuity of treatment from one collection request to another. This also has the result, as with O&M costs, that collection requests can reflect changes in the information burden due to market forces in the industry that are much too complicated to model. The changes in this estimate from the last renewal reflect re-estimations and changes in the industry, not program changes by the EPA and we will not depart from past practice in this on-highway motorcycle ICR.

The annualized depreciated costs of these facilities using the standard assumptions of 7% interest yearly over ten years is $4,600.520. This is regarded as a permanent capital cost item; that is, we regard the capital stock as being continuously depreciated and replaced.

6(c) Estimating Agency Burden

The Agency burden consists of 1.00 of a GS-13 technical worker and 1.0 for administrative assistance ($175,000.00 combined wage including overhead).

6(d) Estimating the Respondent Universe and Total Burden and Costs

From the above discussion the following total burden and cost estimates can be calculated. Due to the diverse nature of the HMC industry, there is no typical or average respondent. Respondents can be large manufacturers with many products such as Honda Motors, or they can be small businesses with a single product line. In addition, HWC's can also be small importers of a few specialized motorcycles per year that are manufactured abroad. The total burden and cost figures below are estimates on the basis of report data from production and end-of-year reports as well as estimates from EPA personnel.

6(e) Bottom Line Burden Hours and Cost

(i)  Respondent Tally

RESPONDENTS 74 BURDEN HOURS 3594 LABOR COST $168,614 OPERATING COST $151,150  CAPITALIZED COST $113,834

(ii)  Agency Tally

EMPLOYEES (2):  $175,000.00 CONTRACT LABOR COST: $120,000.00 COST $295,000

6(f) Reasons for change in burden

The change in burden since the previous ICR renewal (ICR No. 0783.62) is due to the changes in cost methodology and coverage outlined above in 6(a) combined with new counts of the numbers of tests performed including evaporative testing. The EPA has not made any program changes (other than approved rulemakings) since the previous ICR renewal. The effect of these changes can be summarized as follows:

Labor hours:  The currently approved ICR has estimated 5,482 hours annually. This renewal estimates 3,594 hours. This change is the result of corrections to the hours used to file applications, conduct exhaust and evaporative testing, and file an application under the Verify system. This reduction 1888 hours reflects the improved efficiencies experienced through our comprehensive web-based approach to certification and a reduction in the number of certification applications we process.

Labor costs:  As stated above, this request uses BLS labor costs with a 130% multiplier, which captures the BLS estimate of overhead and medical care cost not reflected in the wage estimates. In addition, the labor cost estimate reflects changes in the number of vehicle certification applications to meet exhaust and evaporative emissions requirements.

6(g) Burden Statement

The table in Section 6(e) presents the total estimated burden for the HMC exhaust and evaporative emissions compliance programs; approximately 3,594 hours per year. Annual operating and capitalized costs are approximately $151,150 and $113,834 respectively. Because the universe of vehicle manufacturers is quite diverse, there is no "typical" respondent. However, the burden estimates for the various individual activities in section 6(a) can be used to estimate the burden for a particular respondent (about $524.83). These estimates include time to review applicable regulations and guidance documents, generate and gather the necessary information, and submit documents.

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. 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 the 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, the EPA has established a public docket for this ICR under Docket ID Number EPA-HQ-OAR - 2016 - 0027, which is available for online viewing at regulations.gov.

This site can be used 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. When in the system, select "search," then key in the Docket ID Number identified above. EPA Docket Center, Environmental Protection Agency, Mailcode 28221T, 1200 Pennsylvania Ave., NW., Washington, DC 20460.

The EPA's policy is that all comments received will be included in the public docket without change including any personal information provided, unless the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute.

Comments can also be sent to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID EPA-HQ-OAR-2016-0027 and OMB Control Number 2060-NEW in any correspondence.