  SEQ CHAPTER \h \r 1

Supporting Statement

for

Information Collection Request

Information Requirements for Importation of Nonconforming Vehicles
(Renewal)

EPA ICR 0010.12

April 2010

Compliance and Innovative Strategies Division

Office of Transportation and Air Quality

Office of Air and Radiation

U.S. Environmental Protection Agency

PART A OF THE SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

1. IDENTIFICATION OF THE INFORMATION COLLECTION

    (a)  TITLE OF THE INFORMATION COLLECTION

Information Requirements for Importation of Nonconforming Vehicles
(40CFR Part 85, Subparts P and R) (Renewal), EPA ICR Number 0010.12, OMB
Control Number 2060-0095

     (b)  SHORT CHARACTERIZATION (ABSTRACT)

     The Clean Air Act requires motor vehicles and engines imported into
the U.S. to conform to applicable emission requirements.  This
Information Collection Request (ICR) covers importation reporting
requirements for light-duty vehicle, light-duty truck, and on-road
motorcycle vehicles and engines. The information collection instruments
are Form 3520-1 ("Form 1") for initial entry, and Form 3520-8 ("Form 8")
for final entry (see below). All heavy-duty on-road and all non-road
vehicle and engine importation reporting requirements are now covered by
ICR 1723 (OMB 2060-0294). The two programs use separate forms, have
differing regulatory provisions, and are processed by differing staffs.
Most importers are also required to apply for and obtain a certificate
of conformity from EPA; that information burden for the light-duty and
motorcycle certification program is covered by ICR 0783 (OMB 2060-0104).
 There is some program overlap between the present ICR and 0783 because
testing for Independent Commercial Importers (ICIs) is reported both on
Form 8, covered by this ICR, and, initially and in more detail, for
certification purposes, via ICR 0783. (Similarly, all importing
light-duty vehicle and motorcycle manufacturers, and not just ICIs, use
Form 1.) Thus, the certification information burden is covered in ICR
0783 and the (different and less detailed) testing burden for imports
subsequent to certification for ICIs in this ICR.

     The burden of submitting the fee and associated forms is covered by
ICR 2080 (OMB 2060-0545).

     The post-certification, final-entry testing burden for light-duty
vehicle imports falls into two categories. For the category of certified
light-duty ICIs, a city test (the “FTP”) is required for every third
vehicle imported under a certificate for the first 300 vehicles
imported, and every fifth thereafter (40 CFR 85.1505). The second
light-duty imports category is “mod and test”, which applies to
vehicles whose original production year is six or more prior to the year
of importation. Each such vehicle must be modified to meet applicable
emissions requirements and tested with the FTP (40 CFR 85.1509). In the
first category, each FTP test will be accompanied by a two-hour
evaporative emissions test, and in both categories, by a highway test in
order to compute a combined fuel economy number to comply with fuel
economy requirements. Form 8 includes spaces for reporting the test
results and combined fuel economy for those vehicles that undergo them.
A very limited number of nonconforming motorcycles have been imported in
the last three years.  Most are imported under a provision (40 CFR
85.1505(a)(2)(i)) that allows for no additional testing beyond the
original certification testing. Otherwise, testing requirements are the
same as those for light duty vehicles except that a highway test is not
required.

     Most ICIs contract with a broker to do some of the imports process
and a testing laboratory to perform the necessary tests. The testing lab
also performs whatever modifications are necessary to bring the vehicle
up to certification standards.

     The Compliance and Innovative Strategies Division  (CISD) in
EPA’s Office of Transportation and Air Quality collects information
and requires some recordkeeping to help insure that imported vehicles
and engines are brought into compliance with federal emission
requirements or that they qualify for exemption or exclusion from them.
“Nonconforming” refers to the vehicles and engines that are not
constructed to EPA certification standards and therefore must meet
various additional requirements, such as testing, prior to being
certified and available for sale in the U.S.  The information is also
used by the U.S. Customs Service (Customs), state regulatory agencies,
businesses, and individuals to verify whether or not vehicles are in
compliance.

    Information collected includes vehicle identification data, U.S.
Customs entry statements that such information is correct, and summary
emission test results.  The information is either stored in a computer
database, or retained in document form.  The information is used to
monitor compliance of imports and respond to inquiries from the public
concerning the compliance status of specific imported vehicles. This
information is collected on two forms (attached in ICRAS):

	EPA Form 3520-1.  This form is used by importers who are applying for
entry into the U.S. of light-duty vehicle, light-duty truck, and
motorcycle vehicles or engines, whether conforming, nonconforming,
exempt, or excluded.  The form identifies to all parties involved the
category of import and the requirements that are appropriate to that
category. The form goes from the importer or its agent (broker) to
Customs, which stamps the form and forwards it in batch to EPA. EPA
gathers the forms in Ann Arbor where they are logged and filed for
future reference.  The form is posted on EPA’s imports website,
HYPERLINK "http://www.epa.gov/otaq/imports/index.htm"
http://www.epa.gov/otaq/imports/index.htm  .

	EPA Form 3520-8. This form is used by ICIs to request “final
admission” of a nonconforming vehicle or engine upon their
certification that it has been brought into compliance with Federal
emission requirements. The form is held for fifteen days, during which
the ICI can not release the vehicle for sale or to its owner. This gives
EPA a chance to conduct any review or oversight, including confirmatory
testing, deemed necessary before the vehicle or engine is released.

The EPA requests a waiver from posting the expiration date of the OMB
clearance on these forms. Because Form 1 is used by both Customs, EPA,
and importers, repeated uploadings to the imports website and revisions
to reflect expiration of the clearance deadline, continuation of
clearance pending review, and the new expiration date may be burdensome,
with the existence of revisions inadequately communicated to users. Form
8 has a limited number of users who in the past have had to be
individually contracted to inform them of substantive updates. Posting
of Form 8 on the imports website is currently under consideration. Both
forms have been in use for many years and importers are familiar with
their features.

     The information collection will involve an estimated yearly 12,352
responses from 12,005 respondents at an Operations & Maintenance (O&M)
cost of $90,894, a capital cost of  $73,353, and a labor cost of
$370,803 (see Table 1 below).

2.   NEED FOR AND USE OF THE COLLECTION

(a)  NEED/AUTHORITY FOR THE COLLECTION

     Joint EPA and Customs regulations at 40 CFR 85.1501 et seq., 19 CFR
12.73,  and 19 CFR 12.74, promulgated under the authority under the
Clean Air Act (Sections 203 and 208), give authority for the collection
of the information.  The collection helps insure compliance of imported
vehicles and engines with federal emissions requirements, which helps
meet the Agency goal of reducing air pollution.  Without this
information, EPA and Customs officials could not confirm that imported
vehicles and engines conform to U.S. emission requirements, and
consequently would not be able to allow importation or sale of these
vehicles and engines.

     (b)  PRACTICAL UTILITY/USERS OF THE DATA

     The information on Form 1 and Form 8 is used by Customs and/or
Agency  personnel to verify that all Federal emission requirements (or
exemptions or exclusions thereto) concerning imported nonconforming
light-duty motor vehicles and motorcycles are met.  The information is
also used to identify and prosecute violators of the regulations and to
monitor the program in achieving the objectives of the regulations. It
is also used to answer public inquiries concerning the compliance or
exempted or excluded status of particular motor vehicles. Public access
to this information is not direct but rather through  the EPA’s
imports section and the Automotive Imports Helpline in order to maintain
security of information protected under the Privacy Act.

3.  NON-DUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA

     (a)  NON-DUPLICATION

     A search of the Government Information Locator System (GILS) found
no other program or agency collecting this information. As explained
above, Form 1 is necessary to identify, at the point of importation, the
applicable category of the vehicle or engine for regulatory purposes;
Form 8 is necessary to report test results to EPA (where required) and
alert it of pending release to the owner. As stated on Form 1, vehicles
that are primarily manufactured for use on public roads are also
required to file an HS-7 Declaration Form to identify the basis for the
vehicle’s admission under the laws administered by the Department of
Transportation (DoT). EPA had discussions with the DoT in late 2005 that
considered whether a combined form would be feasible, and the conclusion
was that a single form was not practical at this time because of the
unique requirements of each program and the different agencies
administering them.

     (b)  PUBLIC NOTICE

     A Federal Register notice was published, soliciting public comment
for this ICR on January 22, 2010 (75 FR 3723). A copy of the draft
Supporting Statement was also placed in the docket. No comments were
received.

     (c)  CONSULTATIONS

     Consultations have been made with ICIs to discuss form revisions,
to update burden and cost estimates, and to receive suggestions about
the operation of the program.  The following ICIs were contacted:

Auto Enterprises, Inc.

850 N. Rochester Rd.

Clawson, MI  48017

Rep: Mr.  Philip Trupiano

Phone:<PHONE_NUMBER>

J.K. Technologies , L.L.C.

3500 Sweet Air Street

Baltimore, MD  21211

Rep: Mr. Jonathan Weisheit

Phone:<PHONE_NUMBER>

Compliance and Research Services, Inc.

1701 Front Street

Plainfield, NJ  07063-1066

Rep: Bob DePalma

Phone:<PHONE_NUMBER>

     (d)  EFFECTS OF LESS FREQUENT COLLECTION

                 Since reporting is done only at the time of initial and
“final” entry, the effects of less frequent collection would be to
seriously undermine the Agency's ability to determine whether vehicles
being imported meet applicable emission requirements. Consequently, the
Agency would not be able to allow entry of vehicles being imported.
Therefore, less frequent collection is not feasible.

     (e)  GENERAL GUIDELINES

     This ICR requires that ICIs notify EPA when requesting final
admission for vehicles (Form 8) and this may occasionally result in
reporting more often than quarterly if vehicles are tested and ready for
sale more frequently than quarterly.  This requirement is necessary for
EPA to have the opportunity to inspect vehicles prior to release from
the ICI.  If EPA only required quarterly reports, either the ICI would
have to hold vehicles and release them on a quarterly basis or EPA would
not likely have the opportunity to inspect or require confirmatory
testing of vehicles imported by the ICI.

     EPA's regulations require that ICIs retain records for a period of
six years from the date of entry (40 CFR 85.1507(a)).  ICIs are
responsible for the same emissions warranties that apply to original
manufacturers, generally extending to 8 years or 80,000 miles for major
emission control components.  The Clean Air Act requires that light-duty
vehicles meet federal emission standards throughout their useful lives,
which is defined by the Clean Air Act to be either 10 years or 100,000
miles (Sec. 202(d)); these requirements are implemented through the
certification process for ICIs just as they are for original
manufacturers. The imports regulations specify that the useful life
period starts from the date that the vehicle is released to the owner by
the ICI.  The six-year record retention requirement is the minimum
considered consistent with these obligations.

       (f)  CONFIDENTIALITY

      Any information submitted to the Agency for which a claim of
confidentiality is made will be safeguarded according to policies set
forth in Title 40, Chapter 1, Part 2, Subpart B - Confidentiality of
Business Information (CBI) (see CFR 2).  The public is not permitted
access to information containing personal or organizational identifiers.
 This collection complies with the Privacy Act of 1974 and OMB Circular
A-130.

      (g) SENSITIVE QUESTIONS

      There are no sensitive questions.

4.  THE RESPONDENTS AND THE INFORMATION REQUESTED

       (a)  RESPONDENTS/NAICS CODES

      The Light-duty Vehicle Group and Imports Team of CISD collect
information from individual importers and both small and large companies
that import light-duty vehicle, light-duty truck, and on-road motorcycle
vehicles or engines.  The NAICS code for respondents is: 1) 423110,
Automobile and Other Motor Vehicle Merchant Wholesalers; and 2) 441200,
Other Motor Vehicle Dealers.

      (b)  INFORMATION REQUESTED

                           (i)  Data Items

     The data requested in reports include:

     - vehicle identification number

     - vehicle make

     - vehicle model

     - model year of the vehicle

     - port of entry

     - date of entry

     - entry number

     - importer name, address and telephone number

     - owner name, address, telephone number and SSN or EIN

     - emission test results

     - applicable EPA certificate of conformity

     - fuel economy

     - test date

     - modification date

     - name of emissions test laboratory

     - vehicle storage location

     - justification for an exclusion or exemption, if applicable and
records are maintained on:

     - documents related to certification, modification, importation,
storage, registration or                     emission testing

     - bills of sale, invoices, or purchase agreements

     - documents providing parts identification data associated with the
emission control system

     - documents providing evidence of the initiation of the "hold
period"

                           (ii) Respondent Activities

     To complete the collection, the respondent would:

      -read form instructions

      -collect data and complete forms

      -conduct required emission testing (ICIs only)

INFORMATION REQUIREMENTS FOR

IMPORTATION OF NONCONFORMING MOTOR VEHICLES

AND MOTOR VEHICLE ENGINES

(40 CFR PART 85, SUBPARTS P and R) (Renewal)

INFORMATION REQUIREMENTS      				CITATION

I. ICI requirements

- Reporting

- Application for final admission   					85.1505(a)

   (certified)

- Reasonable assistance during inspection, 					85.1506(c),(g)(4)

   including copies of records or documents 				85.1506(b)(2)

- Application for final admission   					85.1509(b)

   (modification/test)

- Repair and retest							85.1509(g)

- Maintenance instructions, attestation,  				85.1510(a)

   parts list

- Altitude compensator instructions, attestation 			85.1510(b)

- Emission warranties, attestation   					85.1510(c)

- Emission labeling, attestation   					85.1510(d)

- Fuel economy labeling, attestation  					85.1510(e)

- Gas guzzler tax forms, attestation  					85.1510(f)

- Reply to notice of suspension or  					85.1513(f)(3)(ii),

   revocation      							85.1513(f)(3)(iv)

   									85.1513(f)(6)

- Request for hearing    						85.1513(f)(3)(iii)

Recordkeeping

- Certification, modification, test, purchase, 				85.1507

   sale, storage, registration, importation

- Owners or ultimate purchasers  					85.1508(b)

- Maintenance instructions, parts list,  				85.1510

   altitude compensator instructions,

   emission warranties, emission labeling,

   fuel economy labeling

II. Requirements applying to all importers

- Notification of conditional admission  				85.1504(a)

- Request for prior approval (exemption), 				85.1511(b),(g)

   request for extension of exemption

- Request for prior approval (exclusion)				85.1511(c)-(g)

- Attestations, copy of paid invoice  					85.1512(f)

- Claim of confidentiality    						85.1514

5.  THE INFORMATION COLLECTED: AGENCY ACTIVITIES, COLLECTION
METHODOLOGY, AND INFORMATION MANAGEMENT

     (a)  AGENCY ACTIVITIES

     Form 1s  are collected as they are received from Customs and, in
some cases, from importers or their agents and collected by the Imports
Team; Form 8s are collected by the Imports Team and copies distributed
to certification staff; since late 2005 the data from Form 8 has been
entered into the Automated Imports Tracking System (AITS).  After
receiving the information, EPA uses it to determine whether vehicles
meet EPA requirements and whether to conduct investigations or require
confirmatory testing, and retains it in order to respond to public,
State government, and Federal government inquires.  In addition, ICI
applications for certification are now included in the “Verify”
information system, effective with the 2010 year imports.

     (b)  COLLECTION METHODOLOGY AND MANAGEMENT

     Form 1 is available in fillable .pdf form downloadable from EPA's
imports website. Form 8 has recently been converted to fillable and
posting at the same site is under consideration. Forms are submitted to
EPA by the importer or its agent or Customs after being filled out at
the port of entry in the case of Form 1 and by the importer or its agent
in the case of Form 8. Both Customs and CISD use the information to
determine if vehicles meet EPA requirements.  CISD retains information
in the AITS and document form in order to respond to public, State
government, and Federal government inquires, which are handled by CISD
staff.

      (c)  SMALL ENTITY FLEXIBILITY

     Small entities that are required to submit information to EPA have
been doing so by completing and submitting EPA paper forms.  EPA
regulations provide, as an alternative, for submission of imports data
electronically (e.g. 40 CFR 85.1505(a), 85.1509(b) & (c)). Under EPA
guidance (CCD-02-04; (  HYPERLINK "http://www.epa.gov/otaq/cert/dearmfr/
dearmfr.htm"  http://www.epa.gov/otaq/cert/dearmfr/ dearmfr.htm ), ICIs
qualify per se as small volume manufacturers entitled to the special
provisions available to all certifying small manufacturers under EPA’s
certification regulations. As stated above, ICI certification activities
are now conducted electronically via “Verify”. Form 8s are currently
submitted electronically as email attachments or in paper form.

      (d) COLLECTION SCHEDULE

      The information is not subject to a collection schedule, but is
collected at the time of vehicle entry and when the vehicle is ready for
final admission by EPA.

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION

      (a) ESTIMATING RESPONDENT BURDEN (HOURS)

     See the table below.  Each form is estimated to take 0.5 hours to
complete. Completing required post-certification testing is estimated at
28 hours per test. There is no requirement for importers to keep copies
of Form 1. Extra recordkeeping for Form 8s were formerly estimated at an
additional 0.5 hour per form; however, these recordkeeping burdens are
more appropriately attributed to the certification ICR, which will be
adjusted accordingly during the next renewal. There is no recordkeeping
burden associated with Form 8 other than adding it to the existing
records for the certified family.

     (b) ESTIMATING RESPONDENT COSTS

(i) Labor Costs

     Labor costs are considered to be more closely approximated by the
motor vehicle manufacturing industry, NAICS 336100, than retail and
wholesale trades in vehicles that do not involve testing and
modification.   Rates for engineering managers, mechanical engineers,
and secretaries (except legal, medical, and executive) are from the May
2008 National Industry-Specific Occupational Employment and Wage
Estimates (http://www.bls.gov/oes/2008/may/naics4_336100.htm, accessed
December 10, 2009). With a 160% overhead multiplier, these are $87.30,
$60.40, and $30.50, respectively. Test labor costs are $55.82 per hour
based on ICR 0783.54.

 (ii) Operations and Maintenance (O&M) Costs

     Operations and maintenance costs apply only to Form 8 and  were
calculated based on responses received from the ICIs contacted.  The
Operations and Maintenance cost for reporting ordinarily involves a
purchase of services from a broker who complete a package of importation
forms (including those of other agencies) and files them with both
Customs and EPA.  This cost is estimated as a component of overall
broker activities to import a vehicle or engine, and incorporates a $2
per form paperwork cost for broker form handling within overall broker
activities, and a $3 per form mailing cost for Form 8s.  O&M costs
associated with testing are much less than those for certification
vehicles; post-certification vehicles do not have mileage accumulation
or durability demonstration requirements or consequent vehicle
depreciation; vehicle preparation is minimal.  O&M testing costs are
estimated at $651 per vehicle. Costs associated with modification of
vehicles necessary to bring them up to certification standards are
excluded: they are not reported on the imports forms, they vary widely
depending on the vehicle being imported, and they therefore can not be
predicted or accounted from one year to another; finally, they are
analogous to, for example, the costs of catalytic converters and other
emissions control technologies that original manufacturers are required
to install in vehicles in order to comply with the Clean Air Act, and
which are not included in the certification paperwork burden.

            (iii) Capital/Startup vs. Operations and Maintenance (O&M)
Costs

Capital/Startup vs. Operation and Maintenance (O&M) Costs

 	O&M	Capital/Startup (unamortized)	Capital/Startup (amortized)	Total
Dep. Cap + O&M

Capital/Startup (unamortized)	Capital/Startup (amortized)	Total Dep. Cap
+ O&M

Filing

	Form 3520-1	$0 	0	$0 	$0 	$0 	0	$0 	$0

Form 3520-8	$1,056 	0	$0 	$0 	$1,056 	0	$0 	$0

Testing

Form 3520-8

     Regular ICI	$62,496 	$358,400 	$51,028 	$113,524 	$62,496 	$358,400
	$51,028 	$113,524

     Mod and Test	$27,342 	$156,800 	$22,325 	$49,667 	$27,342 	$156,800
	$22,325 	$49,667

Total 	$90,894 	$515,200 	$73,353 	$164,247 	$90,894 	$515,200 	$73,353
$164,247

            (iv) Capital/Start-up Costs

     Consistent with ICR 0783, a capital cost of $4,000,000 for a test
facility capable of conducting 750 combined FTP and highway tests per
year has been allocated on a per-test basis. Following ICR 2387.01,
which is the Light Duty Greenhouse Gases rule ICR, this is allocated 0.7
to the FTP portion. For ICIs, these test facility costs will in most
cases be covered by contractual costs between the importer and a testing
laboratory.      As mentioned above, these costs listed here are not
initial certification costs but the post-certification test costs for
additional imported vehicles. As with other ICRs, these capital costs
are annualized and subject to 7% interest depreciation but are
considered to be on-going rather than startup capital costs in the sense
that as facilities are depreciated they are continually being replaced.

     (c) ESTIMATING AGENCY BURDEN AND COST

     The imports program is administered by EPA's Compliance and
Innovative Strategies Division (CISD). Forty percent of one Full Time
Equivalent employees (FTE), GS 12/3;  twenty percent of one Senior
Environmental Employment (SEE) Program employee (the SEE Program is an
employment program for older workers authorized by the Environmental
Programs assistance Act, passed by Congress in l984, and provides
employment opportunities to senior citizens age 55 and over); and a
portion of the work assignment under a government contract  are
allocated to imports activities.  Government cost is based on a GS-12,
step 3 salary for professional engineers ($63,341 per year) obtained
from the Office of Personal Management 2009 Salary Table; and $15.53 per
hour for SEE employees, with a 1.6 multiplier for overhead applied to
both, yielding $40,538 and  Based on the 2006 GS pay schedule, EPA
estimates an hourly $34.35 for the FTE, then multiplies the hourly rates
by the standard government benefits multiplication factor of 1.6, at a
cost of  $45,728, and a cost of  $9,939 for the SEE;  $106,000 is
estimated for the contractor.  The contractor estimate is based upon the
work assignment rather than an estimate of hours. An estimated total
agency cost of $161,667 per year is therefore allocated to imports
activities.  These activities include both on-road imports (this ICR)
and nonroad imports (ICR 1723; OMB 2060-0320). An estimated 90% of these
activities currently involve on-road imports; consequently, $145,500 is
the estimate for the agency cost for purposes of this ICR.

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

	In the previous renewal we estimated that 12,000 Form 1s are submitted
annually, averaging one respondent per form, and 352 Form 8s from five
ICIs, based on a hand count of Form 8s received in 2005 and 2006, plus
an estimate based on actual and projected imports from one high-volume
importer covering four original production years. The total number of
responses was therefore estimated as 12,352. The estimated number of
respondents was 12,005.

	Both estimates are approximate and variable. For Form 1, our
information is that Customs does not require every importer subject to
the regulations at 19 CFR 12.73 to fill out the form; furthermore, the
forms that are forwarded to us by Customs or by importers may not
represent every form that is filled out. For Form 8, the number of ICIs
is small, the number of engine families certified is small, and the
number of vehicle imports within an engine family can vary widely. All
these factors add up to produce significant "small number fluctuations".
In 2005 there were 21 ICI families, including one high-volume importer
that greatly multiplied the number of FTP tests employed. In 2008 there
were 10 families, and without the high-volume importer. Consequently, to
insure that EPA has the authority to accommodate the possible level of
forms and tests needed under the collection authorization, we have
retained the numbers of forms and tests from the previous renewal.

	For each engine family, one imported vehicle is used for certification
testing; therefore, while the forms count does not decrease, the testing
responses is decreased by the number of import engine families. For
model year 2005, 21 ICI engine families were certified; the count of 300
regular ICIs was reduced by 11 to total 289 vehicles subject to
post-certification testing; every third vehicle results in an estimate
of  96 tests; the total of 52 mod & test vehicles was reduced by 10
certification vehicles; the remaining 42 are subject to tests.

           (e) Bottom Line Burden Hours and Cost

                (i) Respondent Tally

Respondents					                12,005

Responses						    12,352

Burden Hours						      9,350

Labor Cost						$370,803

Operating Cost					  $90,894

Capital Cost						$515,200

Capital Cost (Annualized, discounted)		  $73,353

Total (Annualized)					$535,050

                 (ii) Agency Tally

Employees						             2

Employee Labor Cost					  $50,100

Contract Labor Cost					  $95,400

Total Cost						$145,500

     (f) Reasons For Change In Burden

     This ICR follows the burden hours assumptions of the previous
renewal for filling out the forms themselves, as well as the testing
cost elements. The previous Supporting Statement and Federal Register
notices reported depreciated capital costs consistent with the treatment
in all other ICRs dealing with similar testing costs, but the authorized
burden requested was mistakenly based on un-depreciated capital costs;
correcting this results in a large reduction in the request without a
change in the underlying program. Other changes in burden reflect minor
improvements to the hour and cost estimates for these elements to
reflect information obtained for similar elements in intervening ICRs.
This has resulted in an increase in O&M costs, a decrease in capital
costs, and a decrease in hours associated with FTP tests.  The agency
and importer labor costs have been updated with more recent cost figures
for government and industry. The agency contract cost for the imports
program is down over $50,000 from the previous report.

     (g) BURDEN STATEMENT

     Public reporting burden for this collection is estimated to average
45.4 minutes per response.  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 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 Number
EPA-HQ-OAR-2009-0982.    Submit any comments related to the ICR for this
rule to EPA and OMB. Submit your comments, identified by Docket ID No.
EPA-HQ-OAR-2009-0982, by one of the following methods:

   HYPERLINK "http://www.regulations.gov"  www.regulations.gov :  Follow
the on-line instructions for submitting comments.

	 Fax:<PHONE_NUMBER>.

            Mail:  Environmental Protection Agency, EPA Docket Center
(EPA/DC), Air and Radiation Docket, Mail Code 6102T, 1200 Pennsylvania
Avenue, N.W., Washington, DC 20460, Attention Docket ID No.
EPA-HQ-OAR-2009-0982. In addition, please mail a copy of your comments
on the information collection provisions to the Office of Information
and Regulatory Affairs, Office of Management and Budget (OMB), Attn:
Desk Officer for EPA, 725 7th St. NW., Washington, DC 20503.

Hand Delivery: Docket Center, (EPA/DC) EPA West, Room 3334, 1301
Constitution Ave., NW, Washington, DC., Attention Docket ID No.
EPA-HQ-OAR-2009-0982.  Such deliveries are only accepted during the
Docket’s normal hours of operation, and special arrangements should be
made for deliveries of boxed information

Docket ID Number EPA-HQ-OAR-2009-0982, is available for public viewing
at the Air and Radiation Docket in the EPA Docket center (EPA/DC), EPA
West, Room B102, 1301 Constitution Avenue, NW, Washington, D.C.  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<PHONE_NUMBER>, and the telephone number for the
Air and Radiation Docket and Information Center is also<PHONE_NUMBER>.
An electronic version of the public docket is available at
www.regulations.gov.

	.

Table 1:  Annual Respondent Burden and Cost --Information Requirements
for Importation of Nonconforming Vehicles (40CFR Part 85, Subparts P and
R) (Renewal)

 Burden Item	Number Activities	Hours per Activity	Total Hours	Labor

Filing

Form 3520-1	12,000	0.5	6,000	$183,000

Form 3520-8	352	0.5	176	$10,630

Testing

Form 3520-8

     Regular ICI	96	23	2,208	$123,251

     Mod and Test	42	23	966	$53,922

Total 	12,352	0.5	9350	$370,803

 PAGE

 PAGE   15


[Federal Register Volume 86, Number 127 (Wednesday, July 7, 2021)]
[Notices]
[Pages 35780-35781]
[FR Doc No: 2021-14478]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP20-50-000; Docket No. CP20-51-000]

Tennessee Gas Pipeline Company, LLC; Southern Natural Gas
Company, LLC; Notice of Intent To Prepare an Environmental Impact
Statement for the Proposed Evangeline Pass Expansion Project and
Schedule for Environmental Review

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) will prepare an environmental impact statement (EIS) for
the Evangeline Pass Expansion Project (Project), proposed by Tennessee
Gas Pipeline Company, LLC (Tennessee) and Southern Natural Gas Company,
LLC (SNG) in Clarke and Smith Counties, Mississippi and St. Bernard and
Plaquemines Parishes, Louisiana.\1\ The EIS will tier off Commission
staff's Environmental Assessment (EA) and its findings and conclusions
for the Project issued on August 24, 2020, and respond to comments
filed on the EA.\2\ The EIS will assist the Commission in its
consideration of the Project's contribution to climate change and its
decision-making process to determine whether Tennessee and SNG's
proposed Project is in the public convenience and necessity. The
schedule for preparation of the EIS is discussed in the ``Schedule for
Environmental Review'' section of this notice.
---------------------------------------------------------------------------

    \1\ SNG is proposing to construct or modify auxiliary facilities
pursuant to section 2.55(a) of the Commission's regulations in these
additional counties and parishes: Jasper, Simpson, Jefferson Davis,
Lawrence, and Walthall Counties, Mississippi and Washington, St.
Tammany, and Orleans Parishes, Louisiana.
    \2\ The EA for the Project is filed in Docket Nos. CP20-50-000
and CP20-51-000 under Accession No. 20200824-3066.
---------------------------------------------------------------------------

The National Environmental Policy Act Process

    The production of the EIS is part of the Commission's overall
National Environmental Policy Act review process. Commission staff will
independently analyze the proposed Project and prepare a draft EIS,
which will be issued for public comment. Commission staff will consider
all timely comments received during the comment period on the draft EIS
and revise the document, as necessary, before issuing a final EIS. Any
draft and final EIS will be available in electronic format in the
public record through eLibrary \3\ and the Commission's natural gas
environmental documents web page (https://www.ferc.gov/industries-data/natural-gas/environment/environmental-documents).
---------------------------------------------------------------------------

    \3\ For instructions on connecting to eLibrary, refer to the
``Additional Information'' section of this notice.
---------------------------------------------------------------------------

Schedule for Environmental Review

    This notice identifies the Commission staff's planned schedule for
completion of a final EIS for the Project, which is based on an
issuance of the draft EIS in July 2021.

Issuance of Notice of Availability of the final EIS--October 8, 2021
    90-day Federal Authorization Decision Deadline--January 6, 2022

    If a schedule change becomes necessary for the final EIS, an
additional notice will be provided so that the relevant agencies are
kept informed of the Project's progress.

Environmental Mailing List

    This notice is being sent to the Commission's current environmental
mailing list for the Project which includes federal, state, and local
government representatives and agencies; Native American Tribes;
elected officials; environmental and public interest groups; other
interested parties; and local libraries and newspapers. This list also
includes all affected landowners (as defined in the Commission's
regulations) who are potential right-of-way grantors, whose property
may be used temporarily for Project purposes, or who own homes within
certain distances of aboveground facilities, and anyone who submits
comments on the Project and includes a mailing address with their
comments. Commission staff will update the environmental mailing list
as the analysis proceeds to ensure that Commission notices related to
this environmental review are sent to all individuals, organizations,
and government entities interested in and/or potentially affected by
the proposed Project.
    If you need to make changes to your name/address, or if you would
like to remove your name from the mailing list, please complete one of
the following steps:
    (1) Send an email to<EMAIL_ADDRESS>stating your
request. You must include the docket number (CP20-50-000 or

CP20-51-000) in your request. If you are requesting a change to your
address, please be sure to include your name and the correct address.
If you are requesting to delete your address from the mailing list,
please include your name and address as it appeared on this notice.
This email address is unable to accept comments.
    OR
    (2) Return the attached ``Mailing List Update Form'' (appendix 1).

Additional Information

    In order to receive notification of the issuance of the EIS and to
keep track of all formal issuances and submittals in specific dockets,
the Commission offers a free service called eSubscription. This can
reduce the amount of time you spend researching proceedings by
automatically providing you with notification of these filings,
document summaries, and direct links to the documents. Go to https://www.ferc.gov/ferc-online/overview to register for eSubscription.
    Additional information about the Project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC website at www.ferc.gov using the eLibrary link. Click on the
eLibrary link, click on ``General Search'' and enter the docket number
in the ``Docket Number'' field. Be sure you have selected an
appropriate date range. For assistance, please contact FERC Online
Support at<EMAIL_ADDRESS>or<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of all formal documents issued by the Commission, such as orders,
notices, and rulemakings.

    Dated: June 30, 2021.
Kimberly D. Bose,
Secretary.

Appendix 1

MAILING LIST UPDATE FORM

Evangeline Pass Expansion Project

Name-------------------------------------------------------------------

Agency-----------------------------------------------------------------

Address----------------------------------------------------------------

City______ State___ Zip Code___

[ballot] Please update the mailing list

[ballot] Please remove my name from the mailing list

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

FROM-------------------------------------------------------------------

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

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

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

ATTN: OEP--Gas 2, PJ-11.2
    Federal Energy Regulatory Commission
    888 First Street NE
    Washington, DC 20426

CP20-50-000, CP20-51-000

Evangeline Pass Expansion Project

Staple or Tape Here

 [FR Doc. 2021-14478 Filed 7-6-21; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 84, Number 82 (Monday, April 29, 2019)]
[Notices]
[Pages 18015-18016]
[FR Doc No: 2019-08560]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC19-21-000]

Commission Information Collection Activities (FERC-729); Comment
Request; Extension

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of information collection and request for comments.

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

SUMMARY: In compliance with the requirements of the Paperwork Reduction
Act of 1995, the Federal Energy Regulatory Commission (Commission or
FERC) is soliciting public comment on the currently approved
information collection, FERC-729 (Electric Transmission Facilities).

DATES: Comments on the collection of information are due June 28, 2019.

ADDRESSES: You may submit comments (identified by Docket No. IC19-21-
000) by either of the following methods:
     eFiling at Commission's Website: http://www.ferc.gov/docs-filing/efiling.asp
     Mail/Hand Delivery/Courier: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE,
Washington, DC 20426.
    Instructions: All submissions must be formatted and filed in
accordance with submission guidelines at: http://www.ferc.gov/help/submission-guide.asp. For user assistance, contact

FERC Online Support by email at [email protected], or by phone
at:<PHONE_NUMBER> (toll-free), or<PHONE_NUMBER> for TTY.
    Docket: Users interested in receiving automatic notification of
activity in this docket or in viewing/downloading comments and
issuances in this docket may do so at http://www.ferc.gov/docs-filing/docs-filing.asp.

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

SUPPLEMENTARY INFORMATION:
    Title: FERC-729, Electric Transmission Facilities.
    OMB Control No.: 1902-0238.
    Abstract: This information collection implements the Commission's
mandates under EPAct 2005 Section 1221 which authorizes the Commission
to issue permits under FPA Section 216(b) for electric transmission
facilities and the Commission's delegated responsibility to coordinate
all other federal authorizations under FPA Section 216(h). The related
FERC regulations seek to develop a timely review process for siting of
proposed electric transmission facilities. The regulations provide for
(among other things) an extensive pre-application process that will
facilitate maximum participation from all interested entities and
individuals to provide them with a reasonable opportunity to present
their views and recommendations, with respect to the need for and
impact of the facilities, early in the planning stages of the proposed
facilities as required under FPA Section 216(d).
    Additionally, FERC has the authority to issue a permit to construct
electric transmission facilities if a state has withheld approval for
more than a year or has conditioned its approval in such a manner that
it will not significantly reduce transmission congestion or is not
economically feasible.\1\ FERC envisions that, under certain
circumstances, the Commission's review of the proposed facilities may
take place after one year of the state's review. Under Section
50.6(e)(3) the Commission will not accept applications until one year
after the state's review and then from applicants who can demonstrate
that a state may withhold or condition approval of proposed facilities
to such an extent that the facilities will not be constructed.\2\ In
cases where FERC's jurisdiction rests on FPA section 216(b)(1)(C),\3\
the pre-filing process should not commence until one year after the
relevant State applications have been filed. This will give states one
full year to process an application without any intervening Federal
proceedings, including both the pre-filing and application processes.
Once that year is complete, an applicant may seek to commence FERC's
pre-filing process. Thereafter, once the pre-filing process is
complete, the applicant may submit its application for a construction
permit.
---------------------------------------------------------------------------

    \1\ FPA section 216(b)(1)(C).
    \2\ The Commission will not issue a permit authorizing
construction of the proposed facilities until, among other things,
it finds that the state has, in fact, withheld approval for more
than a year or had so conditioned its approval.
    \3\ In all other instances (i.e. where the state does not have
jurisdiction to act or otherwise to consider interstate benefits, or
the applicant does not qualify to apply for a permit with the State
because it does not serve end use customers in the State), the pre-
filing process may be commenced at any time.
---------------------------------------------------------------------------

    Type of Respondent: Electric transmission facilities.
    Estimate of Annual Burden: \4\ The Commission estimates the annual
public reporting burden for the information collection as:
---------------------------------------------------------------------------

    \4\ ``Burden'' is the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. For further
explanation of what is included in the information collection
burden, refer to Title 5 Code of Federal Regulations 1320.3.
    \5\ FERC staff estimates that industry costs for salary plus
benefits are similar to Commission costs. The cost figure is the
FY2018 FERC average annual salary plus benefits ($164,820/year or
$79/hour).

                                   FERC-729: Electric Transmission Facilities
----------------------------------------------------------------------------------------------------------------
                                                                                Total annual
                                     Number of     Annual number   Total number   Average burden  burden hours &
                                    respondents    of responses    of responses     & cost per     total annual
                                                  per respondent                   response \5\        cost
                                             (1)             (2)     (1) * (2) =             (4)     (3) * (4) =
                                                                             (3)                             (5)
----------------------------------------------------------------------------------------------------------------
Electric Transmission Facilities               1               1               1           9,600           9,600
                                                                                $758,400        $758,400
----------------------------------------------------------------------------------------------------------------

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

    Dated: April 23, 2019.
Kimberly D. Bose,
Secretary.
[FR Doc. 2019-08560 Filed 4-26-19; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 81, Number 52 (Thursday, March 17, 2016)]
[Notices]
[Pages 14523-14524]
[FR Doc No: 2016-06054]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

Hazardous Materials: Delayed Applications

AGENCY: Office of Hazardous Materials Safety, Pipeline and Hazardous
Materials Safety Administration (PHMSA), DOT.

ACTION: List of application delayed more than 180 days.

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

SUMMARY: In accordance with the requirements of 49 U.S.C. 5117(c),
PHMSA is publishing the following list of special permit applications
that have been in process for 180 days or more. The reason(s) for delay
and the expected completion date for action on each application is
provided in association with each identified application.

FOR FURTHER INFORMATION CONTACT: Ryan Paquet, Director, Office of
Hazardous Materials Special Permits and Approvals, Pipeline and
Hazardous Materials Safety Administration, U.S. Department of
Transportation, East Building, PHH-30, 1200 New Jersey Avenue
Southeast, Washington, DC 20590-0001,<PHONE_NUMBER>.

Key to ``Reason for Delay''

1. Awaiting additional information from applicant
2. Extensive public comment under review
3. Application is technically complex and is of significant impact or

precedent-setting and requires extensive analysis
4. Staff review delayed by other priority issues or volume of special
permit applications

Meaning of Application Number Suffixes

N--New application
M--Modification request
R--Renewal Request
P--Party To Exemption Request

    Issued in Washington, DC, on March 10, 2016.
Donald Burger,
Chief, General Approvals and Permits.

                     Modification to Special Permits
------------------------------------------------------------------------
                                                             Estimated
   Application No.         Applicant        Reason for        date of
                                               delay        completion
------------------------------------------------------------------------
16412-M.............  Nantong CMC Tank                 4      03-31-2016
                       Equipment Co.
                       Ltd. Jiangsu,
                       Province.
15628-M.............  Chemours Company                 4      03-31-2016
                       FC, LLC
                       Wilmington, DE.
15610-M.............  TechKnowServ Corp.               4      03-31-2016
                       State College, PA.
15537-M.............  Alaska Pacific                   4      04-15-2016
                       Powder Company
                       Watkins, CO.
7607-M..............  Thermo Fisher                    4      03-31-2016
                       Scientific
                       Franklin, MA.
16035-M.............  LCF Systems, Inc.                4      04-30-2016
                       Scottsdale, AZ.
14437-M.............  Columbiana Boiler                4      02-15-2016
                       Company (CBCo),
                       LLCColumbiana, OH.
------------------------------------------------------------------------

                     New Special Permit Applications
------------------------------------------------------------------------
                                                             Estimated
   Application No.         Applicant        Reason for        date of
                                               delay        completion
------------------------------------------------------------------------
15767-N.............  Union Pacific                    3      02-29-2016
                       Railroad Company
                       Omaha, NE.
16001-N.............  VELTEK ASSOCIATES,               3      03-31-2016
                       INC. Malvern, PA.
16477-N.............  Hydroid, Inc.                    4      03-15-2016
                       Pocasset, MA.
16495-N.............  TransRail                        4      03-31-2016
                       Innovation, Inc.
                       Calgary.
16524-N.............  Quantum Fuel                     4      03-15-2016
                       Systems
                       Technologies
                       Worldwide, Inc.
                       Lake Forest, CA.
16463-N.............  Salco Products                   3      03-31-2016
                       Lemont, IL.
16571-N.............  Chevron USA Inc.                 4      04-15-2016
                       San Ramon, CA.
16559-N.............  HTEC Hydrogen                    4      04-30-2016
                       Technology &
                       Energy
                       Corporation North
                       Vancouver, BC;
                       Canada.
16560-N.............  LightSail Energy,                4      04-30-2016
                       Inc. Berkeley, CA.
------------------------------------------------------------------------

                  Party to Special Permits Application
------------------------------------------------------------------------
                                                             Estimated
   Application No.         Applicant        Reason for        date of
                                               delay        completion
------------------------------------------------------------------------
16279-P.............  AEG Environmental                4      03-31-2016
                       Products &
                       Services, Inc.;
                       Westminster, MD.
------------------------------------------------------------------------

[FR Doc. 2016-06054 Filed 3-16-16; 8:45 am]
 BILLING CODE 4910-60-M


[Federal Register Volume 86, Number 119 (Thursday, June 24, 2021)]
[Notices]
[Pages 33264-33265]
[FR Doc No: 2021-13302]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD21-14-000]

Resource Adequacy Developments in the Western Interconnection;
Supplemental Notice of Technical Conference

    As announced in the Notice of Technical Conference issued in the
above-referenced proceeding on April 23, 2021, the Federal Energy
Regulatory Commission (Commission) will convene a Commissioner-led
technical conference on Wednesday, June 23, 2021 and Thursday, June 24,
2021, from approximately 12:30 p.m. to 5:00 p.m. (Eastern Time) each
day. The conference will be held remotely over WebEx and broadcast on
the Commission's website. Attached to this Supplemental Notice are the
agenda for the technical

conference and an updated list of panelists. All updates to the
panelists since the Commission's June 9, 2021 Supplemental Notice
appear in fully bold script.
    The purpose of this conference is to discuss resource adequacy
developments in the Western Interconnection. The Commission seeks to
engage varied regional perspectives to discuss challenges, trends,
possible ways to continue to ensure resource adequacy, and broader
regional coordination in the Western Interconnection.
    Discussions at the conference may involve issues raised in
proceedings that are currently pending before the Commission. These
proceedings include, but are not limited to:

------------------------------------------------------------------------
                                               Docket Nos.
------------------------------------------------------------------------
California Independent System    ER21-1551-000.
 Operator Corporation.
California Independent System    ER21-1790-000.
 Operator Corporation.
Nevada Power Company v.          EL21-74-000.
 California Independent System
 Operator Corporation.
New York Independent System      ER21-1018-000.
 Operator, Inc.
PJM Interconnection, L.L.C.....  ER21-2043-000.
PacifiCorp.....................  ER21-1772-000.
Sierra Pacific Power Company...  ER21-1774-000.
Nevada Power Company...........  ER21-1775-000.
ConocoPhillips Company.........  ER21-40-000.
Tenaska Power Services Company.  ER21-42-000.
Exelon Generation Company, LLC.  ER21-43-000.
Mercuria Energy America, LLC...  ER21-43-001.
Tucson Electric Power Company..  ER21-46-000.
UNS Electric, Inc..............  ER21-47-000.
BP Energy Company..............  ER21-48-000.
Public Service Company of New    ER21-51-000.
 Mexico.
Mesquite Power, LLC............  ER21-51-001.
Guzman Energy, LLC.............  ER21-52-000.
Shell Energy North America       ER21-55-000.
 (US), L.P.
TransAlta Energy Marketing       ER21-56-000.
 (U.S.) Inc.
Brookfield Renewable Trading     ER21-57-000.
 and Marketing LP.
PacifiCorp.....................  ER21-58-000.
El Paso Electric Company.......  ER21-59-000.
Uniper Global Commodities North  ER21-60-000.
 America LLC.
Macquarie Energy LLC...........  ER21-61-000.
Tri-State Generation and         ER21-61-001.
 Transmission Association, Inc.
EDF Trading North America, LLC.  ER21-62-000.
Direct Energy Business           ER21-64-000.
 Marketing, LLC.
Nevada Power Company...........  ER21-65-000.
                                 ER21-135-000.
                                 ER21-326-000.
                                 ER21-434-000.
------------------------------------------------------------------------

    The conference will be open for the public to attend remotely, and
there is no fee for attendance. Information on this conference,
including a link to the webcast, will be posted prior to the event on
this conference's event page on the Commission's website, https://www.ferc.gov/news-events/events/technical-conference-discuss-resource-adequacy-developments-western. The conference will be transcribed.
Transcripts will be available for a fee from Ace Reporting, (202) 347-
3700.
    Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations, please
send an email to<EMAIL_ADDRESS>call toll-free<PHONE_NUMBER>
(voice) or<PHONE_NUMBER> (TTY), or send a fax to<PHONE_NUMBER> with
the required accommodations.
    For more information about this technical conference, please
contact Navin Shekar at<EMAIL_ADDRESS>or<PHONE_NUMBER>. For
information related to logistics, please contact Colin Beckman at
<EMAIL_ADDRESS>or<PHONE_NUMBER>, or Sarah McKinley at
<EMAIL_ADDRESS>or<PHONE_NUMBER>.

    Dated: June 17, 2021.
Kimberly D. Bose,
Secretary.
[FR Doc. 2021-13302 Filed 6-23-21; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 46 (Monday, March 10, 2014)]
[Notices]
[Pages 13366-13368]
[FR Doc No: 2014-05055]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71646; File No. SR-OCC-2014-03]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change to Comply With Recently
Adopted Commodity Futures Trading Commission Requirements for
Derivatives Clearing Organizations That Accept Deposits of Futures
Customer Funds

March 4, 2014.
    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 February 19, 2014, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I and II below, which Items
have been prepared primarily by OCC. OCC filed the proposed rule change
pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(4)(ii)
\4\ thereunder, so that the proposal was effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the rule change from interested parties.
---------------------------------------------------------------------------

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

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

    This proposed rule change by OCC would amend OCC's By-Laws and
Rules to allow OCC to comply with recently adopted Commodity Futures
Trading Commission (``CFTC'') requirements for derivatives clearing
organizations (``DCOs''), such as OCC, that accept deposits of futures
customer funds from futures commission merchants (``FCMs'').

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

    In its filing with the Commission, OCC 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. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.

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

1. Purpose
    OCC is proposing to modify its rules to allow it to comply with new
CFTC requirements imposed on depositories that accept deposits of
futures customer funds from FCMs. Recent amendments to CFTC Regulation
Sec.  1.20 \5\ require that FCMs only deposit futures customer funds
with depositories that agree to grant the CFTC's Division of Swap
Dealer and Intermediary Oversight (``DSIO'') and the CFTC's Division of
Clearing and Risk, as well as representatives of the FCM's designated
self-regulatory organization, certain access and examination rights
(``CFTC Access and Examination Rights'').\6\ OCC, as a CFTC-registered
DCO, functions as a depository with respect to any futures customer
funds deposited by clearing members that are FCMs. Consequently, for
these FCM clearing members to continue to use OCC as their DCO, OCC
must agree to comply with the CFTC Access and Examination Rights.
Pursuant to CFTC Regulation Sec.  1.20(d)(1),\7\ OCC and the clearing
member may make this agreement either by providing a written
acknowledgment

letter to the clearing member with respect to each segregated futures
account and segregated futures professional account containing futures
customer funds or by adopting rules that provide for the segregation of
futures customer funds in accordance with the Commodity Exchange Act
and all relevant CFTC regulations and orders promulgated thereunder.
---------------------------------------------------------------------------

    \5\ 17 CFR 1.20.
    \6\ CFTC Regulation Sec.  1.20(d)(3) (17 CFR 1.20(d)(3)) also
provides that FCMs may only deposit futures customer funds with
depositories that agree to provide the director of the DSIO with
``direct, read-only electronic access to transaction and account
balance information'' for the futures customer accounts. Based on
discussions with staff from the CFTC's Division of Clearing and Risk
on December 16, 2013 and subsequently confirmed via email, it is
OCC's understanding that, as a DCO that serves as a depository with
respect to deposits of futures customer funds by its clearing
members that are FCMs, it will not be required to provide this
direct electronic access, because the CFTC did not intend for the
requirement set forth in Sec.  1.20(d)(3) to apply to a DCO that has
submitted to the CFTC rules that provide for the segregation of
customer funds in accordance with all relevant provisions of the
Commodity Exchange Act and the rules and orders promulgated
thereunder. Consequently, OCC is not including this direct
electronic access requirement among the other CFTC Access and
Examination Rights addressed in this Rule Change.
    \7\ 17 CFR 1.20(d)(1).
---------------------------------------------------------------------------

    In Sections 3(f) and 3(j) of Article VI of OCC's By-Laws, OCC
already states that it agrees to comply with applicable regulations of
the CFTC pertaining to the holding of segregated funds by clearing
organizations of contract markets with respect to its segregated
futures accounts and segregated futures professional accounts. OCC
proposes to amend the language in both provisions to incorporate OCC's
agreement to comply with the Commodity Exchange Act itself and all
applicable CFTC orders, and to more precisely conform to the exact
language requirements of CFTC Regulation Sec.  1.20(d)(1). In order to
provide certainty to its clearing members that are FCMs, OCC is
proposing to add Interpretation and Policy .10 to Section 3 of Article
VI of OCC's By-Laws,\8\ so that OCC also explicitly agrees to comply
with the CFTC Access and Examination Rights set forth in newly adopted
CFTC Regulation Sec.  1.20(d)(5) and (6) with respect to all segregated
futures accounts and segregated futures professional accounts.\9\
Additionally, Interpretation and Policy .10 will provide that all
clearing members that open segregated futures accounts or segregated
futures professional accounts have authorized and directed OCC's
compliance with the CFTC Access and Examination Rights without further
notice or consent. To this same end, OCC also proposes to amend
Interpretation and Policy .11 to OCC Rule 604 to clarify that any cash
deposited as margin in a segregated futures professional account will
be handled in the same manner as OCC currently handles cash deposited
as margin in a segregated futures account--i.e., if such funds are
invested, they will be invested in accordance with CFTC Regulations
Sec. Sec.  1.25, 1.26 and 1.27 and any other CFTC rules pertaining to a
DCO's investment of futures customer funds. Not previously mentioning
``segregated futures professional accounts'' alongside ``segregated
futures accounts'' in this Interpretation and Policy was an
unintentional oversight, and OCC proposes to make this change in the
interest of completeness--it does not reflect a change in policy
regarding its handling of futures customer funds deposited in
segregated futures professional accounts.
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    \8\ OCC intends to publish an Information Memo to inform its
clearing members of the filing of this rule change.
    \9\ 17 CFR 1.20(d)(5)-(6).
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2. Statutory Basis
    OCC believes the proposed rule change is consistent with Section
17A(b)(3)(F) of the Act,\10\ and the rules and regulations thereunder,
including Rule 17Ad-22(d)(3),\11\ because it is intended to protect
investors and the public interest by ensuring OCC holds futures
customer funds in a manner that minimizes the risk of loss and delay in
access to such funds. As described above, the proposed rule change is
designed to address OCC's handling of futures customer funds related to
its performance of clearing services for products that are subject to
the jurisdiction of the CFTC. The proposed change will ensure that OCC
holds futures customers funds in accordance with new requirements
promulgated by the CFTC designed to protect futures customers and
provide for safer futures markets. The proposed change will not
adversely affect OCC's obligations with respect to the prompt and
accurate clearance and settlement of securities transactions. The
proposed rule change is not inconsistent with any rules of OCC,
including any other rules proposed to be amended.
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    \10\ 15 U.S.C. 78q-1(b)(3)(F).
    \11\ 17 CFR 240.17Ad-22(d)(3).
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(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impose any
burden on competition that is not necessary or appropriate in
furtherance of the Act \12\ because it relates solely to OCC's
activities relating to the clearing of commodity futures products
subject to the exclusive jurisdiction of the CFTC and therefore would
not have any impact or impose any burden on competition in securities
markets or any other market governed by the Act.
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    \12\ 15 U.S.C. 78q-1(b)(3)(I).
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(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received from Members, Participants or Others

    Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been received.

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

    Because the proposed rule change primarily affects the clearing
operations of OCC with respect to products that are not securities and
does not significantly affect any securities clearing operations of OCC
or any rights or obligations of OCC with respect to securities clearing
or persons using such securities-clearing service, the foregoing rule
change has become effective pursuant to Section 19(b)(3)(A) \13\ of the
Act and Rule 19b-4(f)(4)(ii) thereunder.\14\ At any time within 60 days
of the filing of such rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.\15\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(4)(ii). OCC has indicated that it will
delay the implementation of the rule change until it is deemed
certified under CFTC Regulation Sec.  40.6.
    \15\ 15 U.S.C. 78s(b)(3)(C).
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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-OCC-2014-03 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2014-03. 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 of submission. 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 Section, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of OCC and on OCC's
Web site at http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_14_03.pdf. 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-OCC-2014-03 and should be submitted on or before March
31, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-05055 Filed 3-7-14; 8:45 am]
BILLING CODE 8011-01-P