[Federal Register Volume 87, Number 92 (Thursday, May 12, 2022)]
[Notices]
[Pages 29201-29205]
[FR Doc No: 2022-10146]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94862; File No. SR-CboeBYX-2022-016]

Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule

May 6, 2022.
    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 May 2, 2022, Cboe BYX Exchange, Inc. (``Exchange'' or ``BYX'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe BYX Exchange, Inc. (the ``Exchange'' or ``BYX'' or ``BYX
Equities'') is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend its Fee Schedule. The
text of

the proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/byx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    On March 26, 2021, the Commission approved the Exchange's proposed
introduction of periodic auctions in U.S. equity securities (``Periodic
Auctions'').\3\ Periodic Auctions, which will launch on the Exchange on
April 14, 2022, will be conducted throughout the course of the trading
day when there are matching buy and sell Periodic Auction orders that
are available to trade in such an auction. They are price forming
auctions that are executed at the price level that maximizes the total
number of shares in both the auction book and the continuous book and
are designed to enhance the ability for investors to source liquidity
in all equity securities traded on the Exchange. The Exchange now
proposes to introduce fees associated with orders executed in Periodic
Auctions.\4\
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    \3\ See Securities Exchange Act Release No. 91423 (March 26,
2021) 86 FR 17230 (April 1, 2021) (SR-CboeBYX-2020-021).
    \4\ The Exchange initially filed the proposed fee changes on
April 14, 2022 (SR-CboeBYX-2022-012). On April 27, 2022, the
Exchange withdrew that filing and re-submitted the proposed fee
changes (SR-CboeBYX-2022-014). On April 29, 2022, the Exchange
withdrew that filing and re-submitted the proposed fee changes (SR-
CboeBYX-2022-015). On May 2, 2022, the Exchange withdrew that filing
and submitted this filing.
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    The Exchange operates a ``Taker-Maker'' model whereby it pays
credits to members that remove liquidity and assesses fees to those
that add liquidity. The Exchange's Fees Schedule sets forth the
standard rebates and rates applied per share for orders that remove and
provide liquidity, respectively. Particularly, for securities at or
above $1.00, the Exchange provides a standard rebate of $0.00200 per
share for orders that remove liquidity and assesses a fee of $0.00200
per share for orders that add liquidity. For orders priced below $1.00,
the Exchange does not assess a fee or provide a rebate for orders that
add liquidity and assesses a fee of 0.10% of total dollar value for
orders that remove liquidity. Additionally, in response to the
competitive environment, the Exchange also offers tiered pricing which
provides Members opportunities to qualify for higher rebates or reduced
fees where certain volume criteria and thresholds are met. Tiered
pricing provides an incremental incentive for Members to strive for
higher tier levels, which provides increasingly higher benefits or
discounts for satisfying increasingly more stringent criteria.
Proposed Fee Codes
    The Exchange proposes to introduce three new fee codes applicable
to orders executed in a Periodic Auction. First, the Exchange proposes
to adopt fee code AD,\5\ which would be appended to displayed orders
executed in a Periodic Auction.\6\ Periodic Auction Only Orders \7\ or
Periodic Auction Eligible Orders \8\ are non-displayed orders and
therefore fee code AD would not be appended to such orders. However,
Continuous Book Orders \9\ may be displayed or non-displayed orders and
therefore such displayed Continuous Book Orders would be appended with
fee code AD. Orders appended with fee code AD would be assessed a fee
of $0.00200 in securities priced equal to or greater than $1.00, and
would be provided no charge or rebate in securities priced less than
$1.00.\10\ The proposed fee is the same as other displayed fee codes
that add liquidity to the Exchange, such as fee codes B,\11\ V,\12\ and
Y.\13\
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    \5\ As discussed more fully below, the Exchange is also
proposing to add footnotes 1 and 2 to fee code, AD.
    \6\ ``Continuous Book Orders'', as defined in Rule 11.25(a)(2),
may be displayed or non-displayed orders. Continuous Book Orders
will not initiate a Periodic Auction but are eligible to participate
in such an auction when it is executed.
    \7\ A ``Periodic Auction Only Order'' is a non-displayed limit
order entered with an instruction to participate solely in Periodic
Auctions pursuant to this Rule 11.25. Periodic Auction Only Orders
are not eligible for execution on the Continuous Book. See Exchange
Rule 11.25(b)(1).
    \8\ A ``Periodic Auction Eligible Order'' is a non-displayed
limit order eligible to trade on the Continuous Book that is entered
with an instruction to also initiate a Periodic Auction, if
possible, pursuant to this Rule 11.25. See Exchange Rule 11.25(b)(2)
    \9\ A ``Continuous Book Order'' is an order on the BYX Book that
is not a Periodic Auction Order. See Exchange Rule 11.25(a)(2).
    \10\ Footnote 15 of the BYX Fee Schedule provides that ``[f]or
securities priced below $1.00: no charge or rebate'' is applied.
Therefore, the Exchange proposes to apply footnote 15 to proposed
fee code AD.
    \11\ Fee code ``B'' is appended to displayed orders adding
liquidity to BYX (Tape B).
    \12\ Fee code ``V'' is appended to displayed orders adding
liquidity to BYX (Tape A).
    \13\ Fee code ``Y'' is appended to displayed orders adding
liquidity to BYX (Tape C).
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    Second, the Exchange proposes to adopt fee code AU, which would be
appended to Periodic Auction Only or Periodic Auction Eligible orders
executed in a Periodic Auction. Orders appended with fee code AU would
not be provided a rebate or assessed a fee, regardless of the price of
the security.\14\
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    \14\ The Exchange proposes to apply footnote 15 to proposed fee
code AU.
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    Third, the Exchange proposes to adopt fee AH, which would be
appended to non-displayed orders executed in a Periodic Auction. As
noted above, Continuous Book Orders may be displayed or non-displayed
orders. Therefore, non-displayed orders that are not Periodic Auction
Only or Periodic Auction Eligible Orders would be appended with fee
code AH. Orders appended with fee code AH would be assessed a fee of
$0.00100 in securities priced equal to or greater than $1.00 and would
be provided no charge or rebate in securities priced less than
$1.00.\15\ The proposed fee is the same as the fee assessed to non-
displayed midpoint peg orders (i.e., fee code MM).\16\
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    \15\ The Exchange proposes to apply footnote 15 to proposed fee
code AH.
    \16\ Fee code ``MM'' is appended to non-displayed orders that
add liquidity using a midpoint peg.
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Proposed Definitions
    The Exchange proposes to adopt two new definitions pertaining to
auction volume executed on the Exchange. First, the Exchange proposes
to adopt the term ``Auction ADV'' which would mean the average daily
auction volume calculated as the number of shares executed in an
auction per day. The Exchange also proposes to adopt the term ``Step-Up
Auction ADV'' which would mean the Auction ADV in the relevant baseline
month subtracted from current Auction ADV.
Proposed Tier Changes
    The Exchange proposes to modify the tiers in order to account for
volume executed in a Periodic Auction. As noted above, the Exchange
offers tiered pricing which provides Members opportunities to qualify
for higher

rebates or reduced fees where certain volume criteria and thresholds
are met. The Exchange offers three sets of tiers as set forth in
footnotes 1 through 3 of the Fee Schedule. Specifically, under footnote
1 \17\ of the Fee Schedule, the Exchange offers Add/Remove Volume
Tiers, which offer various enhanced rebates and reduced fees for
reaching certain, incrementally more challenging volume-based
thresholds. Under footnote 2 \18\ of the Fee Schedule, the Step-Up
Tiers offers a reduced fee to Members that increase their relative add
volume order flow each month over a predetermined baseline as well as
add liquidity over and established threshold. Last, under footnote 3
\19\ of the Fee Schedule, the Exchange offers the Routing Tier which
offers an enhanced rebate for orders routed to Nasdaq BX through the
Destination Specific or TRIM routing strategies. Under each of
footnotes 1 through 3, the required criteria of certain tiers reference
a Member's ADV,\20\ ADAV,\21\ or Step-Up ADAV \22\ as follows:
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    \17\ Footnote 1, Add/Remove Volume Tiers, applies to fee codes
B, V, and Y. The Exchange now proposes to add Footnote 1 to fee
code, AD.
    \18\ Footnote 2, Step-Up Tiers, applies to fee codes B, V, and
Y. The Exchange now proposes to add Footnote 2 to fee code, AD.
    \19\ Footnote 3, Routing Tier, applies to fee code, C (Routed to
NASDAQ BX using Destination Specific, TRIM or SLIM routing
strategies). AU/AH/AD are included in the calculations to qualify
for the Routing Tier rebates.
    \20\ ``ADV'' means average daily volume calculated as the number
of shares added or removed, combined, per day.
    \21\ ``ADAV'' means average daily volume calculated as the
number of shares added per day.
    \22\ ``Step-Up ADAV'' means ADAV in the relevant baseline month
subtracted from current ADAV.
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     The Add Volume Tiers 1 through 4 provide a reduced fee for
each Member's qualifying orders that have an ADAV equal to or greater
than a certain percentage of TCV;
     The Add Volume Tier 5 provides a reduced fee to each
MPID's qualifying orders that have an ADAV equal to or greater than a
certain percentage of the TCV; \23\
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    \23\ ``TCV'' means total consolidated volume calculated as the
volume reported by all exchanges and trade reporting facilities to a
consolidated transaction reporting plan for the month for which the
fees apply.
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     The Remove Volume Tier 6 provides the applicable rebate to
each Member's qualifying orders that have (1) an ADV equal to or
greater than 0.08% of the TCV; and (2) an ADAV equal to or greater than
500,00 shares meet the required criteria; \24\
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    \24\ The Exchange notes that Remove Volume Tiers 7 and 8 do not
reference ADV or ADAV, but instead reference certain liquidity
removing volume executed on the Exchange.
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     The Step-Up Tier provides a reduced fee to each Member's
qualifying orders where a Member (1) adds a Step-Up ADAV from June 2021
equal to or greater than 0.05% of TCV or adds a Step-Up ADAV from June
2021 equal to or greater than 2,000,000; and (2) has a total add ADAV
equal to or greater than 0.25% of TCV.
     The Routing Tier provides the applicable rebate to each
Member's qualifying orders with an ADV equal to or greater than 0.10%
of the TCV.
    Now, the Exchange proposes to modify each of the above referenced
Tiers to include auction volume where ADV, ADAV, and Step-Up ADAV are
referenced.\25\ Therefore, the Exchange proposes the required criteria
of the above Tiers as follows:
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    \25\ The Exchange is not modifying the applicable fees and
rebates associated with Tiers 1 through 4. Rather, the Exchange
seeks only to add new types of volume that count toward the Tiers.
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     The Add Volume Tiers 1 through 4 provide a reduced fee to
each Member's qualifying orders that have a combined Auction ADV and
ADAV equal to or greater than a certain percentage of the TCV;
     The Add Volume Tier 5 provides a reduced fee to each
MPID's qualifying orders that have a combined Auction ADV and ADAV
equal to or greater than a certain percentage of the TCV;
     The Remove Volume Tier 6 would provide the applicable
rebate to Members' qualifying orders that have (1) a combined Auction
ADV and ADV equal to or greater than 0.08% of the TCV; and (2) a
combined Auction ADV and ADAV equal to or greater than 500,000 shares
would meet the required criteria; and
     The Step-Up Tier would provide a reduced fee to each
Member's qualifying orders with (1) a combined Step-Up Auction ADV and
Step-Up ADAV from June 2021 equal to or greater than 0.05% of TCV or a
combined Step-Up Auction ADV and Step-Up ADAV from June 2021 equal to
or greater than 2,000,000; and (2) a combined Auction ADV and ADAV
equal to or greater than 0.25% of TCV; and
     The Routing Tier would provide the applicable rebate to
Members' qualifying orders with a combined Auction ADV and ADV of equal
to or greater than 0.10% of the TCV.
    As discussed above, orders yielding fee code AD will represent
displayed Continuous Book Orders that add liquidity to the Exchange.
Therefore, if such orders did not execute in a Periodic Auction, they
would be appended with fee code B, V, or Y, as applicable, and those
executions would qualify towards the Add Volume Tiers 1 through 5 and
the Step-Up Tier. Continuous Book Orders that add liquidity to the
Exchange will participate in a Periodic Auction, if eligible.
Therefore, to ensure such orders are not disincentivized to participate
in such a Periodic Auction, the Exchange proposes to allow orders
yielding fee code AD to qualify towards the Add Volume Tiers 1 through
5 and Step-Up Tier, as well qualify for the reduced fees or rebates
provided by such Tiers.\26\
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    \26\ Based on the proposal to allow orders yielding fee code AD
to qualify towards the Add Volume Tiers 1 through 5 and Step-Up
Tier, the Exchange also proposes to append footnotes 1 and 2 to Fee
Code AD.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\27\ in general, and
furthers the objectives of Section 6(b)(4),\28\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other persons using its
facilities. Specifically, the Exchange believes that the proposed rule
change is consistent with the requirements of the Act as it is designed
to compensate the Exchange for the development of new and innovative
market features, i.e., Periodic Auctions, while continuing to provide a
pricing model that the Exchange believes is competitive with pricing
models offered by other national securities exchanges that offer
auctions to their customers. The Exchange operates in a highly-
competitive market in which market participants can readily direct
order flow to competing venues if they deem fee levels at a particular
venue to be excessive. The proposed rule change reflects a competitive
pricing structure designed both to compensate the Exchange for the
introduction of innovative features and allow it to continue to compete
aggressively with other market centers.
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    \27\ 15 U.S.C. 78f.
    \28\ 15 U.S.C. 78f(b)(4).
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    As discussed, the proposed rule change would introduce pricing that
is specific to orders executed in a Periodic Auction. Generally, orders
executed in an auction on other market centers are subject to a
fee.\29\ However, the Exchange proposes to charge no fee for orders
that may initiate a Periodic Auction (i.e., orders yielding fee code
AU) in order to incentivize Members to enter such orders on the
Exchange. As proposed, orders yielding fee code AD will represent
displayed Continuous

Book Orders that add liquidity to the Exchange. Therefore, if such
orders did not execute in a Periodic Auction, they would be appended
with fee code B, V, or Y, as applicable, and would be charged a fee of
$0.00200. Given this, the Exchange proposes that orders yielding fee
code AD also be charged a fee of $0.00200 so that the fee is congruent
with orders with the same order instruction that did not execute in a
Periodic Auction. As discussed above, non-displayed orders that are not
Periodic Auction Only or Periodic Auction Eligible Orders would be
appended with fee code AH. Such non-displayed orders would include
orders that would otherwise yield fee codes HA,\30\ HI,\31\ or MM \32\
had they not executed in a Periodic Auction. Orders yielding fee code
HA are assessed a fee of $0.00240 per share, orders yielding fee code
HI are assessed a fee of $0.00300 per share, and orders yielding fee
code MM are assessed a fee of $0.00100 per share. Given this, the
Exchange proposes to assess a fee of $0.00100 per share to orders
yielding fee code AH so that there is no disadvantage for a non-
displayed order to have executed in a Periodic Auction rather than on
the Continuous Book.
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    \29\ See e.g., the Cboe BZX U.S. Equities Fee Schedule, which
charges fees ranging from $0.00060 up to $0.00100 for orders
executed in an auction.
    \30\ Fee code ``HA'' is appended to non-displayed orders adding
liquidity to BYX.
    \31\ Fee code ``HI'' is appended to non-displayed orders adding
liquidity to BYX that receive price improvement.
    \32\ Fee code ``MM'' is appended to non-displayed orders adding
liquidity to BYX using a midpoint peg.
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    The Exchange believes that the proposed fees associated with orders
executed in a Periodic Auction are equitable and not unfairly
discriminatory because they would apply equally to all orders executed
in a Periodic Auction and meeting the applicable execution description.
As discussed, Periodic Auction Only and Periodic Auction Eligible order
instructions are optional, and a market participant can choose to
include such an instruction in order to benefit from a free execution
in the Periodic Auction. Furthermore, while orders entered on the
Continuous Book that are eligible to participate in a Periodic Auction
must participate in the Periodic Auction, the proposed fees are
designed to ensure that such executions occur at a fee that is equal or
favorable to the fee they would have otherwise been assessed had the
order not executed in a Periodic Auction.
    The Exchange believes the proposed modifications to the various
Tiers are equitable and reasonable. As discussed above, if orders
yielding fee code AD did not execute in a Periodic Auction, they would
be appended with fee code B, V, or Y, as applicable, and such
executions would have counted towards the Add Volume Tiers 1 through 5
and Step-Up Tier. The proposal to include fee code AD to the applicable
fee codes of the Add Volume Tiers 1 through 5 and Step-Up Tier is
designed to ensure that orders yielding such fee codes are not
disadvantaged for having executed in a Periodic Auction rather than the
Continuous Book. Additionally, the proposed modifications to the
various required criteria of the Tiers is designed to ensure that
shares executed in a Periodic Auction are considered in conjunction
with any volume added to the Exchange. As discussed above, certain
types of orders that may be executed in a Periodic Auction would be
included in the Member's or MPID's ADV, ADAV, and Step-Up ADAV if they
had otherwise not executed in a Periodic Auction (e.g., orders appended
with fee code B, V, or Y). Therefore, so as not to disadvantage Members
or MPIDs participating in a Periodic Auction, the Exchange proposes
that such orders executed in a Periodic Auction will count toward any
required criteria of a Tier involving ADV, ADAV, or Step-Up ADAV. The
Exchange believes it is reasonable and equitable not to include volume
executed in a Periodic Auction in a Member's remove volume because such
orders would not have removed volume on the Exchange had they not
executed in a Periodic Auction.

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

    The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Rather, the Exchange
believes that the proposed changes to its fees would promote continued
competition between the Exchange, other national securities exchanges,
and off-exchange venues that must continuously compete to offer both
competitive pricing and services to members and investors. As proposed,
the Exchange would charge fee ranging from free up to $0.0020 per share
for orders executed in a Periodic Auction. Charging fees for the use of
this instruction would both compensate for the development and
introduction of new and innovative features, and provide continued
incentives for the Exchange to compete on both cost and the quality of
its products and services.
    The Exchange believes the proposed new fee codes would not impose
any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed fee
codes would apply to all Members equally in that all Members would be
subject to the applicable fee for executing in the Periodic Auction
based on its order instruction. The Exchange's proposed pricing is
based on the characteristics of the order that is executed and has been
proposed to reflect that no order will be disadvantaged by
participating in a Periodic Auction as opposed to executing on the
Exchange's continuous book. In fact, certain orders may benefit from
executing in a Periodic Auction by receiving a reduced fee than it
would not have otherwise received had it executed on the Exchange's
Continuous Book.\33\
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    \33\ For example, orders that would have been appended with fee
code HA or HI had they not executed in a Periodic Auction would be
assessed a lesser fee if executed in a Periodic Auction (and thus
appended with fee code AH).
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    Similarly, the Exchange does not believe the proposed changes to
the Exchange's tiers will impose any burden on intramarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The revised tiers will continue to be available to all Members
equally in that all Members are eligible for these tiers, have a
reasonable opportunity to meet the tiers' criteria, and will receive
the reduced fee or enhanced rebate on their qualifying orders if such
criteria is met. The proposed changes to the Exchange's tiers are
simply designed to ensure that no orders executed in a Periodic Auction
are excluded from a tier for which they otherwise would have counted
towards had the order not executed in a Periodic Auction. The Exchange
does not believe the proposed change to modify the tiers burdens
competition, but rather, enhances competition as it is intended to
increase the competitiveness of BYX by ensuring Members are not
disincentivized to participate in Periodic Auctions and thus may
increase their participation on the Exchange, providing for additional
execution opportunities for market participants and improved price
transparency. Greater overall order flow, trading opportunities, and
pricing transparency benefits all market participants on the Exchange
by enhancing market quality and continuing to encourage Members to send
orders, thereby contributing towards a robust and well-balanced market
ecosystem.
    Next, the Exchange believes the proposed rule change does not
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act.

As previously discussed, the Exchange operates in a highly competitive
market. In such an environment, the Exchange must continually review,
and consider adjusting, its fees and rebates to remain competitive with
other exchanges. Members have numerous alternative venues that they may
participate on and direct their order flow, including other equities
exchanges, off-exchange venues, and alternative trading systems.
Additionally, the Exchange represents a small percentage of the overall
market. Based on publicly available information, no single equities
exchange has more than 17% of the market share.\34\ Therefore, no
exchange possesses significant pricing power in the execution of order
flow. Indeed, participants can readily choose to send their orders to
other exchange and off-exchange venues if they deem fee levels at those
other venues to be more favorable. Moreover, the Commission has
repeatedly expressed its preference for competition over regulatory
intervention in determining prices, products, and services in the
securities markets. Specifically, in Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \35\ The fact that this market is competitive
has also long been recognized by the courts. In NetCoalition v.
Securities and Exchange Commission, the D.C. Circuit stated as follows:
``[n]o one disputes that competition for order flow is `fierce.' . . .
As the SEC explained, `[i]n the U.S. national market system, buyers and
sellers of securities, and the broker-dealers that act as their order-
routing agents, have a wide range of choices of where to route orders
for execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .''.\36\ Accordingly, the Exchange does not believe its
proposed fee changes imposes any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
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    \34\ See Cboe Global Markets, U.S. Equities Market Volume
Summary, Month-to-Date (April 11, 2022), available at: https://markets.cboe.com/us/equities/market_statistics/.
    \35\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
    \36\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \37\ and paragraph (f) of Rule 19b-4 \38\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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    \37\ 15 U.S.C. 78s(b)(3)(A).
    \38\ 17 CFR 240.19b-4(f).
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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 protected]. Please include
File Number SR-CboeBYX-2022-016 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CboeBYX-2022-016. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeBYX-2022-016, and should be
submitted on or before June 2, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\39\
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    \39\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-10146 Filed 5-11-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: October 2, 2006 (Volume 71, Number 190)]
[Notices]
[Page 57940-57941]
[DOCID:fr02oc06-57]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice of Petition for Declaratory Order and Soliciting Comments,
Motions To Intervene, and Protests

September 26, 2006.
    Take notice that the following application has been filed with the
Commission and is available for public inspection:
    a. Application Type: Petition for Declaratory Order.
    b. Docket No.: DI06-4-000.
    c. Date Filed: September 11, 2006.
    d. Applicant: Haneline Power LLC.
    e. Name of Project: Henry River Project.
    f. Location: The Henry River Project is located on the Henry River,
Burke County, Henry River, North Carolina. The project does not occupy
any tribal or Federal lands.
    g. Filed Pursuant to: Section 23(b)(1) of the Federal Power Act, 16
U.S.C. 817(b).
    h. Applicant Contact: Douglas Allen Haneline, 3379 Amity Hill Road,
Statesville, NC 28677; Telephone:<PHONE_NUMBER>; Fax:<PHONE_NUMBER>.
    i. FERC Contact: Any questions on this notice should be addressed
to Henry Ecton<PHONE_NUMBER>, or E-mail<EMAIL_ADDRESS>    j. Deadline for filing comments and/or motions: October 27, 2006.
    All documents (original and eight copies) should be filed with:
Magalie R. Salas, Secretary, Federal Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426. Comments, protests, and
interventions may be filed electronically via the Internet in lieu of
paper. Any questions, please contact the Secretary's Office. See, 18
CFR 385.2001(a)(1)(iii) and the instructions on the Commission's Web
site at: http://www.ferc.gov.

    Please include the docket number (DI06-4-000) on any protests,
comments and/or motions filed.
    k. Description of Project: The run-of-river project consists of:
(1) An existing 35-foot-high, 220-foot-long concrete and stone dam,
with 36-inch-high flashboards; (2) a reservoir with a surface area of
approximately 12 acres; (3) a powerhouse containing one 375 kW
generator and one 150 kW generator; (4) a 300-foot-long tailrace; and
(5) appurtenant facilities. The facility is connected to an interstate
grid.
    When a Petition for Declaratory Order is filed with the Federal
Energy Regulatory Commission, the Federal Power Act requires the
Commission to

investigate and determine if the interests of interstate or foreign
commerce would be affected by the project. The Commission also
determines whether or not the project: (1) Would be located on a
navigable waterway; (2) would occupy or affect public lands or
reservations of the United States; (3) would utilize surplus water or
water power from a government dam; or (4) if applicable, has involved
or would involve any construction subsequent to 1935 that may have
increased or would increase the project's head or generating capacity,
or have otherwise significantly modified the project's pre-1935 design
or operation.
    l. Locations of the application: Copies of this filing are on file
with the Commission and are available for public inspection. This
filing may be viewed on the Web at http://www.ferc.gov using the

``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. For
assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>or toll-free at<PHONE_NUMBER>, or TTY,

contact<PHONE_NUMBER>.
    m. Individuals desiring to be included on the Commission's mailing
list should so indicate by writing to the Secretary of the Commission.
    n. Comments, Protests, and/or Motions to Intervene: Anyone may
submit comments, a protest, or a motion to intervene in accordance with
the requirements of Rules of Practice and Procedure, 18 CFR 385.210,
.211, .214. In determining the appropriate action to take, the
Commission will consider all protests or other comments filed, but only
those who file a motion to intervene in accordance with the
Commission's Rules may become a party to the proceeding. Any comments,
protests, or motions to intervene must be received on or before the
specified comment date for the particular application.
    o. Filing and Service of Responsive Documents: Any filings must
bear in all capital letters the title ``COMMENTS'', ``PROTESTS'', and/
or ``MOTIONS TO INTERVENE'', as applicable, and the Docket Number of
the particular application to which the filing refers. A copy of any
motion to intervene must also be served upon each representative of the
applicant specified in the particular application.
    p. Agency Comments: Federal, State, and local agencies are invited
to file comments on the described application. A copy of the
application may be obtained by agencies directly from the applicant. If
an agency does not file comments within the time specified for filing
comments, it will be presumed to have no comments. One copy of an
agency's comments must also be sent to the applicant's representatives.

Magalie R. Salas,
Secretary.
[FR Doc. E6-16145 Filed 9-29-06; 8:45 am]

BILLING CODE 6717-01-P


                    Information Collection Request Renewal
                         Supporting Statement for the
Implementation of the Fine Particulate Matter National Ambient Air Quality Standards
                            EPA ICR Number 2258.06
                           OMB Control No. 2060-0611

                                 Prepared by:

                 Office of Air Quality Planning and Standards
                          Office of Air and Radiation
                     U.S. Environmental Protection Agency
                 Research Triangle Park, North Carolina 27711

                                August 7, 2023

              EPA Information Collection Request Renewal for the
                 PM2.5 National Ambient Air Quality Standards
                  State Implementation Plan Requirements Rule

                               Table of Contents

 Identification of the Information Collection Request........................page 3

 Need for and Use of the Collection..........................................page 4

 Non-Duplication, Consultation, and other Collection Criteria......... page 7

 Respondents and the Information Requested..............................page 9

 Information Collected -- Agency Activities, Collection
         Methodology and Information Management...............................page 12

 Estimating the Burden and Cost of the Collection........................page 13

          Identification of the Information Collection Request

1(a) Title of the Information Collection

   The title of the Information Collection Request is Implementation of the PM2.5 National Ambient Air Quality Standards (NAAQS) (Renewal), ICR number 2258.06, and OMB Control Number 2060-0611.

1(b) Abstract/Executive Summary

   The EPA has established a suite of PM2.5 standards based on numerous health studies and other evidence demonstrating that serious health effects are associated with exposure to elevated levels of PM2.5. Estimates show that attainment of the PM2.5 standards would result in tens of thousands fewer premature deaths each year, tens of thousands fewer hospital admissions each year, and hundreds of thousands fewer doctor visits, absences from work and school, and respiratory illnesses in children annually. EPA initially established annual and 24-hour PM2.5 standards in 1997. The 24-hour standard was subsequently revised in 2006, and the primary annual standard was revised in 2012. This ICR applies to existing nonattainment areas for existing standards.

   The EPA finalized the PM2.5 NAAQS State Implementation Plan (SIP) Requirements Rule (81 FR 58010) effective October 24, 2016, to describe the Clean Air Act (CAA) requirements that must be met by states with nonattainment areas to develop plans for attaining and maintaining the NAAQS. The intended effect of the PM2.5 NAAQS SIP Requirements Rule is to provide certainty to states regarding their planning obligations related to SIP development for current and future levels of the PM2.5 NAAQS (although this ICR applies only to current standards). Only states with nonattainment areas are required to submit SIPs that meet the requirements of this rule.

   On December 18, 2014, the EPA designated fourteen areas as nonattainment for the 2012 PM2.5 NAAQS (78 FR 3086). The EPA conducted an analysis for ICR Number 2258.04 using the initial fourteen nonattainment areas. The estimate also included the estimated burden associated with ongoing implementation obligations for the remaining areas designated nonattainment for the 1997 and/or 2006 PM2.5 NAAQS. The EPA requested comment on this analysis in the proposed PM2.5 NAAQS SIP Requirements Rule (80 FR 18177) and received no comments. After proposing the PM2.5 NAAQS SIP Requirements Rule, the EPA revised initial area designations for several 2012 PM2.5 NAAQS areas on March 31, 2015 (80 FR 18535). This designation action revised the count from 14 to nine nonattainment areas, while several counties in three states remained deferred. In light of the lack of comments on the initial estimate, and to ensure that the final estimate was not an underestimate in light of uncertainty, the EPA did not revise its estimate for ICR Number 2258.04.

   On February 1, 2021, the EPA issued ICR Number 2258.05 that estimated the burden associated with on-going implementation planning for 18 nonattainment areas for one or more of the 1997, 2006 and 2012 PM2.5 NAAQS for the 2021-2024 period. This proposed renewal for ICR Number 2058.06, for the 2024-2027 period, estimates the burden associated with implementing one or more of the 1997, 2006 and 2012 PM2.5 NAAQS for the remaining 12 nonattainment areas.

	The information collection activities in this proposed renewal have been submitted for approval to the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA). The PRA requires the EPA to assess the administrative burden (in hours and dollars) for state air agencies to develop plans to attain the PM2.5 NAAQS, and for EPA to review and take action on such plans. This proposed ICR renewal covers the period February 1, 2024-January 31, 2027.

   The EPA estimates the administrative burden for states with nonattainment area planning requirements for one or more of the 1997, 2006 and 2012 PM2.5 NAAQS to be 74,700 hours over three years. The present value of the total costs for state governments (the respondents) is estimated at $5.3 million for the 3-year period, or $1.76 million per year during the 3-year period of the ICR.

   The estimated administrative burden for EPA is estimated to be 8,217 hours. The present value of the Agency administrative cost burden is estimated at $0.58 million dollars for the 3-year period, or $0.19 million per year during the 3-year period.

          Need For and Use of the Collection
   2(a) Need/Authority for the Collection

   The CAA  requires the EPA to establish National Ambient Air Quality Standards (NAAQS) for air pollutants that may reasonably be anticipated to endanger public health or welfare, and which result from numerous or diverse sources. On July 18, 1997, the EPA revised the NAAQS for particulate matter to add new standards for fine particulate matter (particles of solid and liquid material less than 2.5 microns in aerodynamic diameter, or PM2.5). The EPA established health-based (primary) annual and 24-hour standards for PM2.5 (62 FR 38652). The annual standard was set at a level of 15 micrograms per cubic meter (μg/m[3]), based on the 3-year average of annual mean PM2.5 concentrations. The 24-hour standard was set at a level of 65 μg/m[3], based on the 3-year average of the 98[th] percentile of 24-hour concentrations. The welfare-based secondary standards were established identical to the primary standards.

   Part D of Title I of the Clean Air Act sets forth the implementation plan requirements for areas designated nonattainment for a NAAQS. The PM2.5 Implementation Rule for the 1997 PM2.5 NAAQS was proposed November 1, 2005 (70 FR 65983) and was promulgated on April 25, 2007 (72 FR 20586). The preamble to the proposed and final regulation addressed the administrative burden associated with attainment planning for the 1997 NAAQS in general terms. The preamble to the final rule stated that an ICR would be prepared.

   On October 17, 2006, the EPA revised the NAAQS for fine particles. The EPA established  new primary 24-hour standards for PM2.5 (71 FR 61144). The 24-hour standards (primary and secondary) were set at a level of 35 μg/m[3], based on the 3-year average of the 98[th] percentile of 24-hour concentrations. The primary and secondary annual standards remained unchanged at a level of 15 μg/m[3], based on the 3-year average of annual mean PM2.5 concentrations. The initial ICR 2258.01 covered the time period between April 5, 2008 through April 4, 2011. An extension without change of ICR 2258.02 was subsequently issued through April 30, 2012.

   On December 14, 2012, the EPA once again revised the NAAQS for fine particles. The EPA established a new primary annual standard for PM2.5 (78 FR 3086). The annual standard was set at a level of 12 μg/m[3], based on the 3-year average of annual mean PM2.5 concentrations. The 24-hour standard remained unchanged at a level of 35 μg/m[3], based on the 3-year average of the 98[th] percentile of 24-hour concentrations. The time period covered in the ICR 2258.03 was a 3-year period from May 1, 2012 through April 30, 2015. ICR 2258.03 was issued a 60-day extension from April 30, 2015 through June 30, 2015. The ICR 2258.03 lapsed on July 1, 2015.

   Following a January 2013 decision by the U.S. Circuit Court of Appeals for the D.C. Circuit that remanded the 2007 PM2.5 Implementation Rule, on March 23, 2015, the EPA proposed the PM2.5 NAAQS SIP Requirements Rule and finalized the rule on August 24, 2016. This rule provided the framework for states to follow in developing SIPs to attain the 1997 PM2.5 NAAQS, the 2006 PM2.5 NAAQS and the 2012 PM2.5 NAAQS.

   The framework in the rule reflects the applicable requirements described in the CAA part D nonattainment area provisions found in sections 172 (subpart 1) and sections 188-190 (subpart 4). A PM2.5 attainment plan must include rules requiring emission reductions and a demonstration showing whether the particular area can attain the standard by its attainment date. A state plan submittal for attaining the PM2.5 NAAQS is due to EPA within 18 months after the effective date the area is designated as nonattainment. After a state submits a plan, the CAA requires the EPA to review the plan, and take action on the plan which EPA does through a regulatory action. Once an area is attaining the NAAQS, the state (or area) may request a redesignation from "nonattainment" to "attainment." This requires the state to develop a maintenance plan to demonstrate that the area will continue to maintain the NAAQS during a 10-year maintenance period, and meet other CAA requirements associated with redesignation to attainment.

   ICR 2258.04 was included with the final 2016 PM2.5 NAAQS SIP Requirements Rule. ICR 2258.05 received several extensions and expires January 31, 2024. This supporting statement for ICR 2258.06 covers February 1, 2024- January 31, 2027.

    2(b) User/Users of the Data

   The data collected from the state and local air agency respondents will include the nonattainment SIP elements and maintenance plan requirements under the CAA that are described in more detail in the PM2.5 NAAQS SIP Requirements Rule. Attainment plans for the PM2.5 NAAQS nonattainment areas must contain state rules and other requirements designed to achieve the NAAQS by the deadlines established under the CAA. Maintenance plans, should a state choose to pursue redesignation for a nonattainment area once its air quality shows attainment, must contain requirements designed to maintain the NAAQS for a 10-year maintenance period.

   The PM2.5 attainment plan submitted by the state must meet the various requirements in subpart 1 and subpart 4 and guidance, including the following:

 Baseline emission inventory and projection year inventory for stationary, mobile, and area emissions sources in the nonattainment area consistent with 40 CFR 51.1008.
 For Moderate areas, an analysis of economic and technological feasibility of potential control measures (i.e., reasonably available control measures (RACM) and reasonably available control technology (RACT)) and the adoption of state rules requiring emission reductions to ensure attainment of the standard "as expeditiously as practicable," consistent with 40 CFR 51.1007 and 51.1009.
 For Serious areas, an analysis of economic and technological feasibility of potential control measures (i.e., best available control measures (BACM) and best available control technology (BACT)) and the adoption of state rules requiring emission reductions to ensure attainment of the standard "as expeditiously as practicable," consistent with 40 CFR 51.1010.
 For those Serious areas that fail to meet the Serious area attainment date, the state must submit a SIP revision consistent with CAA section 189(d) which provides an annual reduction in PM2.5 or its precursor emissions of not less than 5 percent, within 12 months after the applicable attainment date.
 An attainment date consistent with 40 CFR 51.1004.
 An attainment demonstration with air quality modeling showing that existing federal and state emission reduction programs, plus any new emission reduction programs adopted by the state, will result in expeditious attainment by the attainment date, consistent with 40 CFR 51.1011. The attainment demonstration must meet the requirements of 40 CFR 51.112 and Part 51, Appendix W, and must include emission inventory data, modeling results, and emission reduction analyses on which the state has based its projected attainment date.
 An optional precursor demonstration to demonstrate out of the requirements under subpart 4 to regulate PM2.5 precursors for attainment and nonattainment new source review purposes.
 A plan showing that future emission reductions will provide for reasonable further progress (RFP) toward attainment of the standard for the period prior to the area's attainment date, consistent with 40 CFR 51.1012; and reporting every 3 years on quantitative milestones showing progress in the implementation of the attainment plan and associated control measures, consistent with 40 CFR 51.1013.
 Contingency measures to promptly correct NAAQS violations.

   In addition, all areas designated attainment must have a preconstruction permit program (prevention of significant deterioration or PSD program) and all areas designated nonattainment must have a nonattainment new source review (NNSR) program. This ICR does not cover the PSD or NNSR programs.
    If a state chooses to seek redesignation for a nonattainment area that is no longer violating the NAAQS, the PM2.5 maintenance plan submitted by the state must include the various requirements in subpart 1 and subpart 4, and guidance including:
 Baseline emission inventory and projection year inventory for stationary, mobile, and area emissions sources in the nonattainment area consistent with 40 CFR 51.1008.
 A demonstration that the area will continue to attain for the 10-year period following the redesignation, including air quality modeling.
 Verification of continued attainment, including tracking progress through updating the inventory, re-evaluate modeling assumptions or inputs or other methods as needed.
 Contingency measures to promptly correct NAAQS violations that occur after the redesignation.

   The states use this information and analysis to fulfill federal obligations under Title I, part D of the CAA and the PM2.5 NAAQS SIP Requirements Rule.

   The EPA regional and headquarters offices will use the submitted information in determining the completeness and adequacy of the various elements of the PM2.5 attainment or maintenance plan. The EPA is required under the CAA to take action on a SIP submission within 12 months of the submission being found complete. Emission reduction regulations developed by the states and included in the SIP submission, become federally enforceable when approved by the EPA. EPA takes action on SIP submissions through a regulatory process.

 Non-Duplication, Consultations, and Other Collection Criteria

   3(a) Non-Duplication

   	As noted in section 2(b) above, the state respondent will need to include a number of separate and unique elements for each plan submittal. For example, each Serious area attainment plan must include a unique BACM/BACT analysis, attainment demonstration, RFP plan and quantitative milestone reports.

   However, there are other activities covered by existing ICRs which complement the elements required in the PM2.5 plans. For example, the existing PM2.5 monitoring network, covered under a separate ICR, provides essential data for use by states and EPA in identifying key categories of emissions and tracking progress toward attainment.

   EPA encourages the states to account for control measures and expected emission reductions from existing regulations and implementation planning processes, such as for the the PM2.5 NAAQS, the ozone NAAQS, or the regional haze program. Taking such steps, where appropriate, may enable states to reduce the incremental administrative burden associated with this rule and enable identification of control strategies that achieve multi-pollutant environmental progress at a lower cost.

   Relevant ICRs and their titles are identified below.

 Requirements for Preparation, Adoption, and Submittal of Implementation Plans
 51.121-51.122  NOx SIP Call...................................2060-0445
 51.160-51.166  New Source Review................................2060-0003
 51.321-51.323  Air Quality Data Reporting..................2060-0088
 51.353-51.354  Inspection/Maintenance......................2060-0252
 51.365-51.366  Inspection/Maintenance......................2060-0252
 Approval and Promulgation of Implementation Plans
 52.21 Prevention of Significant Deterioration.................2060-0003
 Ambient Air Monitoring Reference and Equivalent Methods
 53.4 .................................................................2080-0005
 53.9(f),(h),(i).......................................................2080-0005
 53.14................................................................2080-0005
 53.15 ...............................................................2080-0005
 53.16(a)-(d),(f).....................................................2080-0005
 Outer Continental Shelf Air Regulations
 55.4-55.8 ...........................................................2060-0249
 55.11-55.14 ........................................................2060-0249
 Ambient Air Quality Surveillance
 58.11-58.14 ........................................................2060-0084
 58.20-58.23 ........................................................2060-0084
 58.25-58.28 ........................................................2060-0084
 58.30-58.31 ........................................................2060-0084
 58.33 ................................................................2060-0084
 58.35 ................................................................2060-0084
 58.40-58.41 .........................................................2060-0084
 58.43 ................................................................2060-0084
 58.45 ................................................................2060-0084
 58.50 ................................................................2060-0084
 Determining Conformity of Federal Actions to State or Federal Implementation Plans
 91.150-93.160 .....................................................2060-0279
 8-hour Ozone National Ambient Air Quality Standard Implementation Rule
 2236.02.............................................................2060  -  0594

   3(b) Public Notice Required Prior to ICR Submission to the Office of Management and Budget (OMB)

   This is a renewal of the existing ICR for the PM2.5 SIP Requirements Rule, which is currently approved through January 31, 2024. For the most recent renewal, public comments were solicited via the Federal Register on October 1, 2019, during a 60-day comment period. No comments were received.

   3(c) Consultations

   In addition to soliciting comments on the proposed PM2.5 NAAQS SIP Requirements Rule on March 23, 2015 (80 FR 15339) and the ICR Renewal on October 1, 2019 (84 FR 52104), the EPA regularly consults with state and local air agencies through standing EPA-to-state meetings and monthly EPA, state and local air agency calls. NAAQS implementation updates are a routine agenda item on these calls. Call participants, which typically include well over 20 air agencies, are offered the opportunity to raise questions or offer comments on any agenda or non-agenda items.

   3(d) Effects of Less Frequent Collection

   	The collections under this rule (as reviewed in section 2(b)) are necessary to comply with Clean Air Act requirements and provide assurances that identified levels of emission reductions are adequate to ensure timely attainment and maintenance of the PM2.5 NAAQS.

   3(c) General Guidelines

   The reporting and recordkeeping requirements for the PM2.5 NAAQS SIP Requirements Rule do not violate any of the regulations promulgated by OMB under 5 CFR part 1320, section 1320.5. This submission meets the current Paperwork Reduction Act guidelines set forth by OMB. Those guidelines reflect the requirements of 5 CFR 1320.6. The PM2.5 SIP Requirements Rule does not require:
 reporting more than once a year;
 respondents to participate in a statistical survey;
 responses to Agency inquiries in less than 30 days;
 respondents to receive remuneration for preparation of reports;
 records to be kept more than 3 years;
 manual methods of reporting.

   3(f)	 Confidentiality

   	The information requested from the states to fulfill CAA requirements as described in section 2(b) will rely on emissions levels and control efficiency data provided by certain facilities in the private and public sectors. This information is available from a variety of sources and states should already have information from emission sources, as facilities should have provided this information to meet other NAAQS SIP requirements, operating permits, and/or emissions reporting requirements. It is the assimilation and analysis of that data (e.g., for BACM/BACT control measure determinations, the attainment demonstration, etc.) that is required by the PM2.5 NAAQS SIP Requirements Rule.

   3(g) Sensitive Information

   	The anticipated submissions are not expected to include sensitive information.

 The Respondents and the Information Requested

   4(a) Respondents and Nonattainment areas

   State and local air agencies are the primary respondents under this ICR. Table 1 lists all 12 area or parts of areas that are currently nonattainment for one or more of the PM2.5 NAAQS and the potential submissions that one might reasonably expect from their respective states during the 3-year period covered by this ICR.

   Table 1 also includes estimated burden hours for each nonattainment area and an estimated total weighted direct and indirect hourly equivalent salary cost of $80.35 per hour. For those areas that are expected not to attain by their applicable PM2.5 NAAQS attainment date, we estimate 18,000 hours to develop and submit SIP revisions in the form of a new attainment plan. For those areas that will have attained by their applicable attainment dates, we estimate 300 hours for states to develop and submit maintenance plans and requests to redesignate those nonattainment areas back to attainment.

Table 1. Areas Designated Nonattainment for 1997, 2006 and/or 2012 PM2.5 NAAQS: Estimated Burden for Meeting PM2.5 NAAQS Attainment Plan or Maintenance Plan Requirements During the Period February 1, 2024-January 31, 2027
(Not Present Day Value)

                      Nonattainment Area for PM2.5 NAAQS
                                     State
                                  EPA Region
           Potential Actions during ICR period 02/01/2024-01/31/2027
                        3-year Burden Estimate (Hours)
                       3-year Burden Estimate (Dollars)
                                   Fairbanks
                                      AK
                                      10
                           2006 189(d) SIP Revision
                                    18,000
                                  $1,446,300
                              West Central Pinal
                                      AZ
                                       9
                             2006 Maintenance Plan
                                      300
                                    $24,105
                                   Imperial
                                      CA
                                       9
                          2006/2012 Maintenance Plan
                                      300
                                    $24,105
                       Los Angeles-South Coast Air Basin
                                      CA
                                       9
                2006/2012 SIP Revisions; 1997 Maintenance Plan
                                    18,300
                                  $1,470,405
                                 Plumas County
                                      CA
                                       9
                           2012 Serious SIP Revision
                                    18,000
                                  $1,446,300
                                  Sacramento
                                      CA
                                       9
                             2006 Maintenance Plan
                                      300
                                    $24,105
                                 San Francisco
                                      CA
                                       9
                             2006 Maintenance Plan
                                      300
                                    $24,105
                              San Joaquin Valley
                                      CA
                                       9
                         1997/2006/2012 SIP Revisions
                                    18,000
                                  $1,446,300
                                 Klamath Falls
                                      OR
                                      10
                             2006 Maintenance Plan
                                      300
                                    $24,105
                                   Allegheny
                                      PA
                                       3
                        1997/2006/2012 Maintenance Plan
                                      300
                                    $24,105
                                     Provo
                                      UT
                                       8
                             2006 Maintenance Plan
                                      300
                                    $24,105
                                Salt Lake City
                                      UT
                                       8
                             2006 Maintenance Plan
                                      300
                                    $24,105
                                     TOTAL

                                    74,700
                                  $6,002,145

    4(b)	 	Information Requested

   The information requested, as described in section 2(b) of this ICR, is required to meet the requirements of the CAA. The implementation framework set forth in the PM2.5 SIP Requirements Rule does not adopt a "one-size-fits all" approach to meeting these requirements.  This additional flexibility enables the states to customize, to the extent allowed by the Clean Air Act, their approach to attaining and maintaining the PM2.5 NAAQS.

   Data Items. The emissions and control efficiency data required for the attainment demonstration, RFP, BACT, BACM, and quantitative milestone reporting are assumed to have been collected as a result of reporting activities required by other OMB approved ICRs. For example, the collection of emissions information for many stationary sources is required under other programs, such as the Air Emissions Reporting Rule (AERR) (see https://www.epa.gov/air-emissions-inventories/air-emissions-reporting-requirements-aerr). In developing PM2.5 SIPs, air agencies are expected to use a range of other readily available data sources, such as Regulatory Impact Analyses developed for illustrative purposes to support federal rules that are expected to reduce future emissions of particulate matter precursors, and data sources that provide economic and population growth rates.

   Respondents' Activities. The states will compile and reference air quality and emissions data, establish their analytical methodology, analyze and assess control technology, conduct emissions reduction and air quality modeling analyses, develop initial plan drafts, hold public hearings, adopt rules, regulations, and programs, have discussions with EPA staff as appropriate, refine the draft demonstrations and other plan elements as appropriate, adopt their plans, and formally submit them to the EPA.

   Agency Activities. The EPA staff in the Regional offices will facilitate receipt of the draft and final submissions by reviewing materials and answering questions from the states regarding regulatory requirements, potential data sources, analytical tools, draft demonstrations, and other draft SIP or maintenance plan elements. The EPA Regional offices will evaluate the formal plan submissions and take rulemaking actions to act on the plan revisions. The EPA headquarters staff will facilitate policy coordination and national consistency in the timely review and evaluation of plans from states around the country. They will also facilitate information flow among the regions and states to promote the development of nationally consistent attainment plan and/or maintenance plan submissions.

   Reporting Protocols. The dates for plan submissions and milestone reports are as set forth in subpart 4 of Part D of the CAA (sections 188-190), in the PM2.5 NAAQS SIP Requirements Rule, and in other regional and national rulemakings that may reclassify areas or find that areas failed to attain a PM2.5 NAAQS by the applicable attainment date.

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

     5(a)	States, EPA Regional Offices, and EPA Headquarters Offices

	States. The state agencies' activities include:

 Develop baseline emissions inventory and projected year inventory.
 Conduct analyses of economic and technological feasibility of potential control measures and adopt state rules requiring emission reductions to ensure attainment of the standard "as expeditiously as practicable" or maintenance of the NAAQS during the applicable 10-year maintenance period.
 Develop and evaluate emissions reduction strategies, and conduct air quality modeling showing that existing federal and state emissions reduction programs, plus any new emissions reduction programs adopted by the state, will result in expeditious attainment by the attainment date or maintenance of the NAAQS.
 Develop plans to ensure that future emissions reductions will provide for reasonable further progress toward attainment of the standard for the period prior to the area's attainment date.
 Submit quantitative milestone report within 90 days of a quantitative milestone date that demonstrates the area met its implementation milestones.

   	EPA Regional Offices. The Regional office activities include:
 Respond to inquiries from air agencies and provide guidance on plan development.
 Review technical data, analyses, and draft plan elements developed by air agencies.
 Evaluate formal plan submissions and conduct rulemaking actions taking action on the submissions.

   	EPA Headquarters. The EPA headquarters office activities include:
 Answer questions regarding application and interpretation of rule provisions.
 Facilitate policy coordination and national consistency in the timely review and evaluation of plans from states around the country.
 Coordinate information flow between the regions and states to promote the development of approvable plan submissions.

   5(b) Collection Methodology and Management

   	The PM2.5 attainment and optional maintenance plans submitted by air agencies will set forth the data sources, analytical methods, and emission reduction and air quality improvement verification procedures used in their development and implementation.

     5(c)	Small Entity Flexibility

		The PM2.5 NAAQS SIP Requirement Rule does not provide a direct administrative burden on small entities.

      5(d) Collection Schedule

		The deadlines for implementing the PM2.5 NAAQS under subpart 4 are set consistent with CAA requirements. BACM/BACT requirements for Serious area SIPs are due within 18 months of the date an area is reclassified as Serious. For an area reclassified to Serious by operation of law under CAA section 188(b)(2), a state must submit a new attainment demonstration no later than 18 months after reclassification. For an area reclassified to Serious pursuant to the agency's discretionary authority provided under CAA section 188(b)(1)(B), a state must submit a new attainment demonstration within 18 months after the required date for the State's submission of a SIP for the Moderate area. CAA section 189(d) plan revisions are due within 12 months after the missed Serious area attainment date. Quantitative milestone reports, as required under the CAA, are due every 3 years until the area is redesignated to attainment, no later than 90 days after a milestone date. To receive a redesignation from "nonattainment" to "attainment," a state must submit a maintenance plan with its redesignation request. However, there is no requirement for a state to submit a redesignation request or maintenance plan; such requests are at the state's discretion.

 Estimating the Burden of the Collection

   	This section provides information on the hours and costs associated with the information collection for the respondents (the affected state and local air agencies) and the EPA (regional and headquarters offices). Hours and costs are presented for the activities associated with each collection item for a nonattainment area (or portion thereof) in a given state, as well as the equivalent annual and present value cost estimates.

   6(a) Estimating Respondent Burden

   	The estimated respondent burden represents the estimated staff time associated with the activities required to develop the relevant PM2.5 attainment plan or maintenance plan and redesignation request.

   	The estimated burden in this ICR is incremental to the estimated burden of other EPA environmental reporting obligations. The actual incremental burden is expected to vary across areas for a number of reasons, such as the severity of the nonattainment problem and whether existing federal and state emission reduction programs are projected to attain or maintain the NAAQS.

   6(b) Remaining Nonattainment Areas for 1997, 2006 and 2012 PM2.5 NAAQS

   Table 1 provides the list of areas and states that remain nonattainment for one or more of the 1997, 2006 and 2012 PM2.5 NAAQS that potentially may need to develop Serious area SIP revisions or CAA section 189(d) SIP revisions, or could qualify for and choose to develop redesignation requests with a maintenance plan during the ICR renewal period. The bulk of the anticipated work for the majority of the nonattainment areas consists of developing maintenance plans. The total estimated burden hours for states that choose to develop and submit maintenance plans and redesignation requests for qualifying areas is 300 hours over 3 years.

   However, the Fairbanks, AK; Los Angeles-South Coast, CA; Plumas, CA; and San Joaquin Valley, CA, nonattainment areas may be determined to have missed applicable attainment dates during the ICR period, and could have one or more Serious area CAA section 189(d) SIP revisions due within 12 months of the applicable attainment date (also within the period for this ICR renewal). For the purposes of this analysis, the estimated burden for development of SIP revisions required to address Serious area requirements is 18,000 hours over 3 years.

   Table 2 below summarizes the number of collection items (e.g. Serious area attainment plans and redesignation requests) that states may be anticipated to develop, and it provides a 3-year breakdown of expected burden hours by state.

   	For the purposes of this analysis, the assumed allocation of total incremental burden across the 3 years is divided evenly. Table 2 provides a 3-year breakdown of expected burden hours by state and by year.

Table 2. Nonattainment Areas for 1997, 2006 and 2012 PM2.5 NAAQS: Estimated Incremental Burden Hours by State and Year

State
                                  EPA Region
                        No. of Areas or Parts of Areas

                            Additional hours Year 1
                            Additional hours Year 2
                            Additional hours Year 3
                                      AK
                                      10
                                       1
                                                                          6,000
                                                                          6,000
                                                                          6,000
                                      AZ
                                       9
                                       1
                                                                            100
                                                                            100
                                                                            100
                                      CA
                                       9
                                       6
                                                                         18,400
                                                                         18,400
                                                                         18,400
                                      OR
                                      10
                                       1
                                                                            100
                                                                            100
                                                                            100
                                      PA
                                       3
                                       1
                                                                            100
                                                                            100
                                                                            100
                                      UT
                                       8
                                       2
                                                                            200
                                                                            200
                                                                            200
                                     Total

                                                                         24,900
                                                                         24,900
                                                                         24,900

6(c)	Estimating Respondent Cost

   	Labor costs are estimated for state and local governments using the total of projected burden hours for current nonattainment areas for the 1997, 2006, and 2012 PM2.5 NAAQS. These estimates do not reflect staff experience or economies of scale. The hourly rates are the result of estimated direct and indirect cost per employee. The main source of the information is http://www.opm.gov/oca/payrates/index.htm.

   	The estimated weighted direct salary cost per employee is $50.85 per hour. This results from a summation of the professional, managerial, and support staff components.

 Hourly equivalent 2023 salary of permanent professional staff at GS 11, Step 3 is $41.94 This is the average of hourly equivalent rates for the San Francisco, CA and Washington, D.C. areas.
 To account for permanent managerial staff, 1/11 or 9.1% of the hourly rate for GS 13, Step 3 is added to the professional staff hourly rates. The average hourly equivalent rate for GS-13 using rates for San Francisco, CA and Washington, D.C. is $59.77, of which 9.1 percent is $5.43.
 To account for permanent support staff at GS-6, Step 6, 1/8 or 12.5% of the hourly rate is added to the professional staff hourly rates. The average hourly equivalent rate for GS-6, Step 6 using rates for San Francisco, CA and Washington, D.C. is $27.89, of which 12.5 percent is $3.49.

   	The estimated hourly indirect cost per employee is $29.50. This amount is the sum of the following:

 Benefits at 16% of the weighted direct hourly equivalent salary cost per employee, or $8.14.
 Sick and annual leave at 10% of the weighted direct hourly equivalent salary cost per employee, or $5.09.
 General overhead at 32% of the weighed direct hourly equivalent salary cost per employee, or $16.27.

   	The estimated total weighted direct and indirect hourly equivalent salary cost per employee is therefore $80.35 (= $50.85 + $29.50, with any differences due to rounding). The estimated annual incremental respondent burden for the state respondents to make the anticipated plan submissions in current year dollars is provided in Table 3.

Table 3. Estimated Annual Incremental Hour and Cost Burden for the States (Respondents) to Fulfill the PM2.5 SIP Submittal Requirements (including Optional Maintenance Plans)

                        No. of Areas or Parts of Areas

                       Burden for the 3-year ICR period
                    Annual Cost for Year 1 (Present Value)
                    Annual Cost for Year 2 (Present Value)
                    Annual Cost for Year 3 (Present Value)
                                      12
                                 74,700 hours
                                 $1.76 million
                                 $1.76 million
                                 $1.76 million

6(d)	Estimating Agency Burden and Cost

   The estimated agency burden is derived from the same estimates used for estimating respondent costs in section 6(c).

   The respondent burden was summed for each EPA Regional office and a percentage factor was applied to the yearly respondent burden estimate to reflect the burden associated with EPA Regional office activities for each SIP submission. Once yearly burdens were estimated for the Agency's Regional offices, a percentage of those amounts was used to derive estimates for the Agency's headquarters office burden.

      Agency Regional Office Burden. The Agency Regional office burden is presumed to be 10% of the estimated total incremental burden for respondents. The total incremental burden allocation for the Agency Regional offices is divided evenly over the 3-year period.

      Agency Headquarters Burden. The Regional office burden estimates for years 1, 2, and 3 are multiplied by 10% to arrive at an estimate for headquarters burden for the same 3 years.

      Total Incremental Burden for the Agency. The EPA regional and headquarters office burden estimate for each year is 2,739 hours.

      Total Annual Cost for the Agency. Using the weighted direct and indirect salary equivalent hour rate derived in section 6(c), the total incremental burden hours are multiplied by that rate for a total annual cost to the Agency of $193,796 (present value).

Table 4.  PM2.5 NAAQS Total Incremental Agency Universe Burden and Cost Estimates

Entity
                         Average Yearly Burden (hours)
                              3-Year Burden (hrs)
                   Present Value of Costs for 3-Year Burden
EPA
                                     2,739
                                     8,217
                                 $0.58 million

      Costs for years 2 and 3 are calculated using the equation Present Value = Future Value/ (1 + interest rate)t , where "t" is the number of years hence (i.e., 0 for year 1, 1 for year 2, 2 for year 3). The adjusted values for years 1, 2, and 3 are then summed.

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

Table 5.  PM2.5 NAAQS Total Incremental State Universe Burden and Cost Estimates

Entity
                         Average Yearly Burden (hours)
                              3-Year Burden (hrs)
                   Present Value of Costs for 3-Year Burden
States
                                    24,900
                                    74,700
                                 $5.3 million

      Costs for years 2 and 3 are calculated using the equation Present Value = Future Value/ (1 + interest rate)t , where "t" is the number of years hence (i.e., 0 for year 1, 1 for year 2, 2 for year 3). The adjusted values for years 1, 2, and 3 are then summed.

6(f)	Reason for Change in Burden

   The current ICR that is set to expire January 31, 2024 estimated a burden of 76,500 total labor hours at an annual labor cost of $1.6 million (present value) over three years for 18 area responses (8 states). For this revision, EPA is estimating 74,700 total labor hours at an annual labor cost of $1.76 million (present value) over three years for 12 area responses (6 states). The decrease in total state respondent labor hours is due to the reduction in nonattainment areas from 18 to 12. While the hours decreased due to the fewer number of respondents, there is an increase  in estimated costs due to the increase in labor rates and the need for several areas to continue to develop plans to help address complex air quality issues. The estimates in this renewal have been calculated using 2023 dollars and some assumptions regarding overhead, O&M costs, and capital costs have been adjusted to meet current guidelines and common procedures for preparing ICRs.

6(g)	Burden Statement

The annual public reporting and recordkeeping burden for this collection of information is estimated to average 6,225 hours per state/respondent. 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.

The EPA has established a public docket for this ICR under Docket ID Number: EPA-HQ-OAR-2013-0691, which is available for online viewing at www.regulations.gov, or in person viewing at the EPA Docket Center (EPA/DC), EPA West, Room 3334, 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>. An electronic version of the public docket is available at www.regulations.gov. This site can be used to 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. Also, you can send comments 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 Number: EPA-HQ-OAR-2013-0691and OMB Control Number 2060-0611in any correspondence.

   Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, disclose, or provide information or for a Federal agency other than the EPA to do so. This estimate includes the time and burden needed to conduct the tasks associated with each state submitting plans required for each PM2.5 nonattainment area. The plan submissions anticipated during this ICR reporting period may include several elements, including emissons inventories, attainment demonstration, RFP plan, BACT and BACM, and quantitative milestones, or may be optional redesignation requests and maintenance plans. In meeting these elements, such incremental efforts may include reviewing instructions as well as verifying, processing, maintaining, and disclosing information. Such efforts may require incremental development, acquisition, installation, and/or utilization of technological systems for several purposes. These purposes include collecting, verifying, validating, processing, maintaining and disclosing information associated with the each element. The incremental efforts may result from adjusting the ways to comply with the previously applicable instructions associated with other NAAQS such as for 8-hr ozone and PM10. Consequently, in submitting the required elements, there could be some incremental burden associated with learning/training, searching data sources, and transmitting the deliverables.

   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.  When this ICR is approved by OMB, the Agency will publish a technical amendment to 40 CFR part 9 in the Federal Register to display the OMB control number for the approved information collection requirements contained in the final implementation rule. However, as was stated in the April 2007 Federal Register Notice for the PM2.5 Implementation Rule, ".. the failure to have an approved ICR for this rule does not affect the statutory obligation for the states to submit SIPs as required under part D of the CAA."

   The Agency established a docket for the PM2.5 NAAQS SIP Requirements Rule under Docket ID No. EPA-HQ-OAR-2013-0691. All documents in the docket are listed at http://www.regulations.gov. Although listed in the docket index, some information may not be publicly available, e.g., Confidential Business Information (CBI) or other information which disclosure is restricted by statue. Certain other material, such as copyrighted materials, is not placed on the internet and will be publicly available in hard copy form. The docket can be viewed online at www.regulations.gov or in person at the EPA Docket Center, WJC West, Room 3334, 1301 Constitution Ave., NW, Washington, DC. The telephone number for the Public Reading Room is<PHONE_NUMBER>. For additional information about EPA's public docket, visit http://www.epa.gov/dockets.