[Federal Register Volume 76, Number 2 (Tuesday, January 4, 2011)]
[Notices]
[Pages 397-401]
[FR Doc No: 2010-33116]

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

SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 29543; File No. 812-13601]

iShares Trust, et al.; Notice of Application

December 27, 2010.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 6(c) of the
Investment Company Act of 1940 (``Act'') for an exemption from sections
2(a)(32), 5(a)(1), 22(d) and 22(e) of the Act and rule 22c-1 under the
Act, and under sections 6(c) and 17(b) of the Act for an exemption from
sections 17(a)(1) and (a)(2) of the Act.

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

    Applicants: iShares Trust (``Trust''), iShares, Inc.
(``Corporation'') (the Trust and Corporation, together, the
``Companies'' and each a ``Company''), BlackRock Fund Advisors (``BFA''
or ``Adviser'') and SEI Investments Distribution Co. (``Distributor'').
SUMMARY:  Summary of Application: Applicants request an order that
permits: (a) Series o
SUMMARY: f certain actively managed open-end management investment
companies to issue shares (``Shares'') redeemable in large aggregations
only (``Creation Units''); (b) secondary market transactions in Shares
to occur at negotiated market prices; (c) certain series to pay
redemption proceeds, under certain circumstances, more than seven days
from the tender of Shares for redemption; and (d) certain affiliated
persons of the series to deposit securities into, and receive
securities from, the series in connection with the purchase and
redemption of Creation Units.

DATES: Filing Dates: The application was filed on November 7, 2008 and
amended on May 4, 2009, June 17, 2010 and November 12, 2010. Applicants
have agreed to file an amendment during the notice period, the
substance of which is reflected in this notice.

HEARING OR NOTIFICATION OF HEARING:  An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on January 21, 2011, and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street, NE., Washington, DC 20549-1090. Applicants: Andrew Josef, Esq.,
BlackRock Fund Advisors, 400 Howard Street, San Francisco, CA 94105 for
the Companies and BFA, and SEI Investments Distribution Co., One
Freedom Valley Drive, Oaks, PA 19456.

FOR FURTHER INFORMATION CONTACT: Jaea F. Hahn, Senior Counsel, at (202)
551-6870 or Jennifer L. Sawin, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box, at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. The Trust is an open-end management investment company
registered under the Act and organized as a Delaware statutory trust.
The Corporation is an open-end management investment company registered
under the Act and organized as a Maryland corporation. The Adviser, an
investment adviser registered under the Investment Advisers Act of 1940
(``Advisers Act''), will serve as investment adviser to the initial
Funds (``Initial Funds'').\1\ The Distributor, a broker-dealer
registered under the Securities Exchange Act of 1934 (``Exchange
Act''), will serve as the

principal underwriter of the Funds' shares.
---------------------------------------------------------------------------

    \1\ Although BFA does not currently expect to enter into
subadvisory agreements with respect to the management of the Funds,
it may do so in the future. If BFA were to enter into a subadvisory
agreement with a BFA Affiliate (defined below) or other subadviser
(each a ``Subadviser''), such Subadviser would be registered as an
investment adviser under the Advisers Act.
---------------------------------------------------------------------------

    2. Applicants request that the order apply to the Initial Funds and
any future series of a Company or of other open-end management
investment companies advised by BFA or an entity controlling,
controlled by, or under common control with BFA (a ``BFA Affiliate'')
that may utilize active management strategies, subject to the terms and
conditions of the application (``Future Funds'', together with the
Initial Funds, the ``Funds'').\2\ Each Fund will have a distinct
investment objective and will attempt to achieve such objective by
utilizing an ``active'' management strategy.\3\ The Funds may invest in
equity or fixed income securities traded in the U.S or non-U.S.
markets, or a combination of equity and fixed income securities, as
well as shares of other exchange traded funds (``ETFs'') and shares of
money market mutual funds or other investment companies. Certain of the
Funds may invest in equity securities or fixed income securities traded
in international markets (the ``International Funds''). Applicants
anticipate that certain Funds, including the International Funds, will
invest a portion of their assets in depositary receipts representing
foreign securities in they seek to invest (``Depositary Receipts'').\4\
The Funds will not invest in options contracts, futures contracts or
swap agreements.
---------------------------------------------------------------------------

    \2\ All entities that currently intend to rely on the order are
named as applicants. Any other entity that relies on the order in
the future will comply with the terms and conditions of the
application.
    \3\ Each Fund will comply with the disclosure requirements
adopted by the Commission in Investment Company Act Release No.
28584 (Jan. 13, 2009), as well as any other applicable disclosure
requirements.
    \4\ A Fund will not invest in any Depositary Receipts that the
Adviser deems illiquid or for which pricing information is not
readily available. No affiliated persons of Applicant will serve as
the depositary bank for any Depositary Receipts held by a Fund.
---------------------------------------------------------------------------

    3. Shares of the Funds will be sold at a price between $25 and $100
per Share in Creation Units of 50,000 Shares. All orders to purchase
Creation Units must be placed with the Distributor by or through an
``Authorized Participant,'' which is either: (a) A broker-dealer or
other participant in the shares clearing process through the continuous
net settlement system of the National Securities Clearing Corporation,
or (b) a participant in the Depository Trust Company (``DTC,'' and such
participant, ``DTC Participant''), which in either case has executed an
agreement with a Company, the Distributor and the Transfer Agent, with
respect to creations and redemptions of Creation Units. Each Fund will
sell Shares in Creation Units, generally in exchange for an in-kind
deposit by the purchaser of a particular portfolio of securities
designated by the Adviser (the ``Deposit Securities''), together with
the deposit or refund of a specified cash payment as the case may be
(``Cash Component''). The Cash Component is an amount equal to the
difference between (a) the net asset value (``NAV'') per Creation Unit
and (b) the market value per Creation Unit of the Deposit
Securities.\5\ Applicants state that in some circumstances there may be
operational problems with a Fund operating exclusively on an ``in-
kind'' basis. Each Fund therefore may permit, under certain
circumstances, a purchaser of Creation Units to substitute cash in lieu
of depositing some or all of the requisite Deposit Securities.
---------------------------------------------------------------------------

    \5\ On each day that a Fund is open, including as required by
section 22(e) of the Act (``Business Day''), the list of names and
required number of each Deposit Security, the estimated Cash
Component for the current day and the Cash Component as of the
previous Business Day will be made available immediately prior to
the opening of trading on the listing Exchange (as defined below).
The Exchange will disseminate every 15 seconds throughout the
trading day, through the facilities of the Consolidated Tape
Association an amount representing, on a per Share basis, the sum of
current value of the Deposit Securities and the estimated Cash
Component.
---------------------------------------------------------------------------

    4. An investor purchasing a Creation Unit from a Fund will be
charged a fee (``Transaction Fee'') to prevent the dilution of the
interests of the remaining shareholders resulting from costs in
connection with the purchase of Creation Units.\6\ All orders to
purchase Creation Units will be placed with the Distributor by or
through an Authorized Participant and it will be the Distributor's
responsibility to transmit such orders to the Funds. The Distributor
also will be responsible for maintaining records of both the orders
placed with it and the confirmations of acceptance furnished by it.
---------------------------------------------------------------------------

    \6\ Where a Fund permits an in-kind purchaser to substitute cash
in lieu of depositing a portion of the Deposit Securities, the
purchaser may be assessed a higher Transaction Fee to cover the cost
of purchasing such Deposit Securities, including brokerage costs.
---------------------------------------------------------------------------

    5. Purchasers of Shares in Creation Units may hold such Shares or
may sell such Shares into the secondary market. Shares will be listed
and traded on a national securities exchange as defined in section
2(a)(26) of the Act (``Exchange''). One or more member firms of the
Exchange will act as a specialist and maintain a market for Shares on
the Exchange (the ``Specialist''), or one or more member firms will act
as a market maker (``Market Maker'') and maintain a market for
Shares.\7\ The prices of Shares trading on the Exchange will be based
on a current bid/offer market. Shares sold in the secondary market will
be subject to customary brokerage commissions and charges.
---------------------------------------------------------------------------

    \7\ If Shares are listed on the NASDAQ, no particular Specialist
will be contractually obligated to make a market in Shares, although
NASDAQ's listing requirements stipulate that at least two Market
Makers must be registered as Market Makers in Shares to maintain the
listing. Registered Market Makers are required to make a continuous,
two-sided market at all times or be subject to regulatory sanctions.
---------------------------------------------------------------------------

    7. Applicants expect that purchasers of Creation Units will include
institutional investors and arbitrageurs (which could include
institutional investors). The Specialist, or Market Maker, in providing
a fair and orderly secondary market for the Shares, also may purchase
Creation Units for use in its market-making activities. Applicants
expect that secondary market purchasers of Shares will include both
institutional investors and retail investors.\8\ Applicants expect that
the price at which the Shares trade will be disciplined by so-called
``arbitrage opportunities'' created by the ability to continually
purchase or redeem Creation Units at their NAV, which should ensure
that the Shares will not trade at a material discount or premium in
relation to their NAV.
---------------------------------------------------------------------------

    \8\ Shares will be registered in book-entry form only. DTC or
its nominee will be the registered owner of all outstanding Shares.
DTC or DTC Participants will maintain records reflecting beneficial
owners of Shares.
---------------------------------------------------------------------------

    8. Shares will not be individually redeemable, and owners of Shares
may acquire those Shares from a Fund, or tender such Shares for
redemption to the Fund, in Creation Units only. To redeem, an investor
will have to accumulate enough Shares to constitute a Creation Unit.
Redemption orders must be placed by or through an Authorized
Participant. Shares generally will be redeemed in Creation Units in
exchange for a particular portfolio of securities (``Redemption
Securities'') plus or minus a ``Cash Redemption Amount,'' equal to the
difference between the NAV per Creation Unit of the Shares being
redeemed and the market value of the Redemption Securities. An investor
may receive the cash equivalent of a Redemption Security in certain
circumstances, such as if the investor is constrained from effecting
transactions in the security by regulation or policy.\9\ A redeeming

investor may pay a Transaction Fee, calculated in the same manner as a
Transaction Fee payable in connection with the purchases of a Creation
Unit.
---------------------------------------------------------------------------

    \9\ Applicants state that a cash-in-lieu amount will replace any
``to-be-announced'' (``TBA'') transaction that is listed as a
Deposit Security or Redemption Security of any Fund. A TBA
transaction is a method of trading mortgage-backed securities where
the buyer and seller agree upon general trade parameters such as
agency, settlement date, par amount and price. The actual pools
delivered generally are determined two days prior to the settlement
date. The amount of substituted cash in the case of TBA transactions
will be equivalent to the value of the TBA transaction listed as a
Deposit Security or Redemption Security.
---------------------------------------------------------------------------

    9. Applicants state that a Fund will comply with Federal securities
laws in accepting Deposit Securities and satisfying redemptions with
Redemption Securities, including that the Deposit Securities and
Redemption Securities are sold in transactions that would be exempt
from registration under the Securities Act.\10\ For each Fund utilizing
an in-kind process, the Deposit Securities and Redemption Securities
will consist of a pro rata basket of the Fund's portfolio.\11\
---------------------------------------------------------------------------

    \10\ In accepting Deposit Securities and satisfying redemptions
with Redemption Securities that are restricted securities eligible
for resale pursuant to rule 144A under the Securities Act, the
relevant Funds will comply with the conditions of rule 144A,
including in satisfying redemptions with such rule 144A eligible
restricted Redemption Securities.
    \11\ There may be minor differences between a basket of Deposit
Securities or Redemption Securities and a true pro rata slice of a
Fund's portfolio solely when (A) it is impossible to break up bonds
beyond certain minimum sizes needed for transfer and settlement or,
(B) in the case of equity securities, rounding is necessary to
eliminate fractional shares or lots that are not tradeable round
lots. A tradeable round lot for an equity security will be the
standard unit of trading in that particular type of security in its
primary market.
---------------------------------------------------------------------------

    10. No Company nor any individual Fund will be advertised or
marketed as an ``open-end investment company'' or a ``mutual fund.''
Instead, each Fund will be marketed as an ``actively-managed exchange-
traded fund.'' In all marketing materials where the features or method
of obtaining, buying or selling Shares traded on the Exchange are
described, applicants state that there will be a statement or
statements to the effect that Shares are not individually redeemable.
Any advertising materials where features of obtaining, buying or
selling Creation Units are described or where there is a reference to
redeemability will prominently disclose that Shares are not
individually redeemable and that owners of Shares may acquire Shares
from a Fund and tender those Shares for redemption to a Fund in
Creation Units only.
    11. The Funds' Web site, which will be publicly available prior to
the public offering of Shares, will include, or will include links to,
the current summary prospectus, the prospectus, statement of
information (``SAI''), and most recent annual and semi-annual reports
to shareholders if required. The Web site will also include additional
quantitative information updated on a daily basis, including, on a per
Share basis, for each Fund, daily trading volume, the prior Business
Day's NAV and the market closing price or mid-point of the bid/ask
spread at the time of calculation of such NAV (``Bid/Ask Price''). On
each Business Day, before commencement of trading in Shares on the
Exchange, each Fund will disclose the identities and quantities of the
securities and other assets held by the Fund that will form the basis
for the Fund's calculation of NAV at the end of the Business Day.\12\
---------------------------------------------------------------------------

    \12\ Applicants note that under accounting procedures followed
by the Funds, trades made on the prior Business Day (``T'') will be
booked and reflected in NAV on the current Business Day (``T + 1'').
Accordingly, the Funds will be able to disclose at the beginning of
the Business Day the portfolio that will form the basis for the NAV
calculation at the end of the Business Day.
---------------------------------------------------------------------------

Applicants' Legal Analysis

    1. Applicants request an order under section 6(c) of the Act
granting an exemption from sections 2(a)(32), 5(a)(1), 22(d) and 22(e)
of the Act and rule 22c-1 under the Act; and under sections 6(c) and
17(b) of the Act granting an exemption from sections 17(a)(1) and
(a)(2) of the Act.
    2. Section 6(c) of the Act provides that the Commission may exempt
any person, security or transaction, or any class of persons,
securities or transactions, from any provision of the Act, if and to
the extent that such exemption is necessary or appropriate in the
public interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Act.
Section 17(b) of the Act provides that the Commission may approve the
sale of securities to an investment company and the purchase of
securities from an investment company, in both cases by an affiliated
person of such company, if the Commission finds that the terms of the
transaction, including the consideration to be paid or received, are
reasonable and fair and do not involve overreaching on the part of any
person concerned, and the proposed transaction is consistent with the
policies of the registered investment company and the general
provisions of the Act.

Sections 5(a)(1) and 2(a)(32) of the Act

    3. Section 5(a)(1) of the Act defines an ``open-end company'' as a
management investment company that is offering for sale or has
outstanding any redeemable security of which it is the issuer. Section
2(a)(32) of the Act defines a redeemable security as any security,
other than short-term paper, under the terms of which the holder, upon
its presentation to the issuer, is entitled to receive approximately a
proportionate share of the issuer's current net assets, or the cash
equivalent. Because Shares will not be individually redeemable,
applicants request an order that would permit each Fund, as an open-end
company, to issue Shares that are redeemable in Creation Units only.
Applicants state that investors may purchase Shares in Creation Units
from each Fund and that Creation Units are always redeemable in
accordance with the provisions of the Act. Applicants further state
that because the market price of Shares will be disciplined by
arbitrage opportunities, investors should be able to sell Shares in the
secondary market at prices that do not vary substantially from their
NAV.

Section 22(d) of the Act and Rule 22c-1 Under the Act

    4. Section 22(d) of the Act, among other things, prohibits a dealer
from selling a redeemable security, which is currently being offered to
the public by or through a principal underwriter, except at a current
public offering price described in the prospectus. Rule 22c-1 under the
Act generally requires that a dealer selling, redeeming, or
repurchasing a redeemable security do so only at a price based on its
NAV. Applicants state that secondary market trading in Shares will take
place at negotiated prices, not at a current offering price described
in the prospectus, and not at a price based on NAV. Thus, purchases and
sales of Shares in the secondary market will not comply with section
22(d) of the Act and rule 22c-1 under the Act. Applicants request an
exemption under section 6(c) from these provisions.
    5. Applicants assert that the concerns sought to be addressed by
section 22(d) of the Act and rule 22c-1 under the Act with respect to
pricing are equally satisfied by the proposed method of pricing Shares.
Applicants maintain that while there is little legislative history
regarding section 22(d), its provisions, as well as those of rule 22c-
1, appear to have been designed to (a) Prevent dilution caused by
certain riskless-trading schemes by principal underwriters and contract
dealers, (b) prevent unjust discrimination or preferential treatment
among buyers resulting from sales at different prices, and (c) assure
an orderly distribution of investment company shares by eliminating
price competition from dealers offering shares at less than the
published sales price and repurchasing

shares at more than the published redemption price.
    6. Applicants believe that none of these purposes will be thwarted
by permitting Shares to trade in the secondary market at negotiated
prices. Applicants state that (a) secondary market trading in Shares
does not involve the Funds as parties and cannot result in dilution of
an investment in Shares, and (b) to the extent different prices exist
during a given trading day, or from day to day, such variances occur as
a result of third-party market forces, such as supply and demand.
Therefore, applicants assert that secondary market transactions in
Shares will not lead to discrimination or preferential treatment among
purchasers. Finally, applicants contend that the proposed distribution
system will be orderly because arbitrage activity should ensure that
the difference between the market price of Shares and their NAV remains
narrow.

Section 22(e)

    7. Section 22(e) of the Act generally prohibits a registered
investment company from suspending the right of redemption or
postponing the date of payment of redemption proceeds for more than
seven days after the tender of a security for redemption. Applicants
state that settlement of redemptions for the International Funds is
contingent not only on the securities settlement cycle of the U.S.
market, but also on currently practicable delivery cycles in local
markets for underlying foreign securities held by the International
Funds. Applicants state that local market delivery cycles for
transferring Redemption Securities to redeeming investors, coupled with
local market holiday schedules, will, under certain circumstances,
require a delivery process longer than seven calendar days for
International Funds. Applicants request relief under section 6(c) of
the Act from section 22(e) to allow International Funds that deliver
Redemption Securities in-kind to pay redemption proceeds up to a
maximum of 14 calendar days following the tender of a Creation Unit of
such Funds. Except as disclosed in the relevant International Fund's
SAI, applicants expect that each International Fund will be able to
deliver redemption proceeds within seven days.\13\ With respect to
future International Funds, applicants seek the same relief from
section 22(e) only to the extent that circumstances similar to those
described in the application exist.
---------------------------------------------------------------------------

    \13\ Rule 15c6-1 under the Exchange Act requires that most
securities be settled within three business days of the trade.
Applicants acknowledge that no relief obtained from the requirements
of section 22(e) will affect any obligations applicants may have
under rule 15c6-1.
---------------------------------------------------------------------------

    8. Applicants state that section 22(e) was designed to prevent
unreasonable and unforeseen delays in the payment of redemption
proceeds. Applicants assert that the requested relief will not lead to
the problems that section 22(e) was designed to prevent. Applicants
state that the SAI will disclose those local holidays (over the period
of at least one year following the date of the SAI), if any, that are
expected to prevent the delivery of redemption proceeds in seven
calendar days, and the maximum number of days, up to 14 calendar days,
needed to deliver the proceeds for the relevant International Fund.
Applicants are not seeking relief from section 22(e) with respect to
International Funds that do not effect creations and redemptions of
Creation Units in-kind.

Sections 17(a)(1) and (2) of the Act

    9. Section 17(a)(1) and (2) of the Act generally prohibit an
affiliated person of a registered investment company, or an affiliated
person of such a person (``second tier affiliate''), from selling any
security to or purchasing any security from the company. Section
2(a)(3) of the Act defines ``affiliated person'' to include any person
directly or indirectly owning, controlling, or holding with power to
vote 5% or more of the outstanding voting securities of the other
person and any person directly or indirectly controlling, controlled
by, or under common control with, the other person. Section 2(a)(9) of
the Act provides that a control relationship will be presumed where one
person owns more than 25% of another person's voting securities. The
Funds may be deemed to be controlled by BFA or any BFA Affiliate and
hence are affiliated persons of each other. In addition, the Funds may
be deemed to be under common control with any other registered
investment company (or series thereof) advised by BFA or a BFA
Affiliate (an ``Affiliated Fund'').
    10. Applicants request an exemption from section 17(a) under
sections 6(c) and 17(b), to permit in-kind purchases and redemptions of
Creation Units by persons that are affiliated persons or second tier
affiliates of the Funds solely by virtue of one or more of the
following: (1) Holding 5% or more, or more than 25%, of the outstanding
Shares of a Company or one or more Funds; (2) an affiliation with a
person with an ownership interest described in (1); or (3) holding 5%
or more, or more than 25%, of the shares of one or more Affiliated
Funds.
    11. Applicants contend that no useful purpose would be served by
prohibiting such affiliated persons or second tier affiliates of a Fund
from purchasing or redeeming Creation Units through ``in-kind''
transactions. The deposit procedure for in-kind purchases and the
redemption procedure for in-kind redemptions will be the same for all
purchases and redemptions. Deposit Securities and Redemption Securities
will be valued under the same objective standards applied to valuing
portfolio securities. Absent the unusual circumstances described in the
application, the Fund Deposit and Redemption Securities will be the
same. Therefore, applicants state that in-kind purchases and
redemptions will create no opportunity for the affiliated persons and
second tier affiliates described above to effect a transaction
detrimental to the other holders of Shares. Applicants also believe
that in-kind purchases and redemptions will not result in abusive self-
dealing or overreaching of the Fund.

Applicants' Conditions

    The applicants agree that any order of the Commission granting the
requested relief will be subject to the following conditions:
    1. As long as a Fund operates in reliance on the requested order,
the Shares of the Fund will be listed on an Exchange.
    2. Neither a Company nor any Fund will be advertised or marketed as
an open-end investment company or a mutual fund. Any advertising
material that describes the purchase or sale of Creation Units or
refers to redeemability will prominently disclose that the Shares are
not individually redeemable and that owners of the Shares may acquire
those Shares from the Fund and tender those Shares for redemption to
the Fund in Creation Units only.
    3. The Web site for the Funds, which is and will be publicly
accessible at no charge, will contain, on a per Share basis, for each
Fund the prior Business Day's NAV and the market closing price or Bid/
Ask Price of the Shares, and a calculation of the premium or discount
of the market closing price or Bid/Ask Price against such NAV.
    4. On each Business Day, before commencement of trading in Shares
on the Exchange, the Fund will disclose on its Web site the identities
and quantities of the portfolio securities and other assets held by the
Fund that will form the basis for the Fund's calculation of NAV at the
end of the Business Day.
    5. No Adviser or Subadviser, directly or indirectly, will cause any
Authorized Participant (or any investor on whose behalf an Authorized
Participant may transact with the Fund) to acquire any

Deposit Security for the Fund through a transaction in which the Fund
could not engage directly.
    6. The requested order will expire on the effective date of any
Commission rule under the Act that provides relief permitting the
operation of actively managed exchange-traded funds.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-33116 Filed 1-3-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 92 (Thursday, May 12, 2016)]
[Notices]
[Pages 29553-29554]
[FR Doc No: 2016-11222]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP16-618-000]

Algonquin Gas Transmission, LLC; Supplemental Notice of Technical
Conference

    As announced in the Notice of Technical Conference issued on April
15, 2016 in the above-captioned proceeding, a technical conference will
be held in this proceeding on Monday, May 9, 2016, beginning at 10:00
a.m. and ending at approximately 3:30 p.m., at the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426. The
purpose of the technical conference is to examine the issues raised in
the protests and comments regarding the February 19, 2016 filing made
by Algonquin Gas Transmission, LLC (Algonquin). In that filing,
Algonquin proposed to exempt from the capacity release bidding
requirements certain types of capacity releases of firm transportation
by electric distribution companies that are participating in state-
regulated electric reliability programs.\1\ Issues to be examined at
the technical conference include concerns raised regarding the basis
and need for the waiver.
---------------------------------------------------------------------------

    \1\ Algonquin Gas Transmission, LLC, 154 FERC ] 61,269 (2016).
---------------------------------------------------------------------------

    The agenda for this technical conference is attached. Due to the
number of parties requesting to make presentations, each presentation
will be limited to fifteen minutes to provide sufficient time for
discussion. We have allotted time between each presentation for
questions and comments from staff, panelists, and the audience. Parties
may file in this docket longer presentations or other materials prior
to the technical conference. A schedule for post-

technical comments will be established at the technical conference.
    For more information about this technical conference, please
contact Anna Fernandez at<EMAIL_ADDRESS>or<PHONE_NUMBER>.
For information related to logistics, please contact Sarah McKinley at
<EMAIL_ADDRESS>or<PHONE_NUMBER>.

    Dated: May 5, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016-11222 Filed 5-11-16; 8:45 am]
 BILLING CODE 6717-01-P


SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

NESHAP for Reinforced Plastic Composites Production (40 CFR part 63, subpart WWWW) (Renewal)

1.  Identification of the Information Collection

1(a)  Title of the Information Collection

NESHAP for Reinforced Plastic Composites Production (40 CFR part 63, subpart WWWW) (Renewal), EPA ICR Number 1976.04, OMB Control Number 2060-0509

1(b)  Short Characterization/Abstract

The National Emission Standards for Hazardous Air Pollutants (NESHAP) for Reinforced Plastic Composites (RPC) Production Operations and Processes were proposed on August 2, 2001 (66 FR 40323), and promulgated on April 21, 2003 (68 FR 19375).  These standards regulate fugitive emissions from reinforced plastic composites (RPC) production operations and processes resulting from hazardous air pollutants (HAPs) evaporating from the resins, gel coats, and cleaning solvents.  The owner or operator of a RPC manufacturing facility must control HAPs emissions by either limiting the HAP content of materials used and using non-atomized spray application in the manufacturing processes or by using an enclosure and add-on control device.  This information is being collected to assure compliance with 40 CFR part 63, subpart WWWW.

Owners and operators of affected sources are subject to the monitoring, recordkeeping and reporting requirements of 40 CFR part 63, subpart A, the General Provisions, unless specified otherwise in the regulation.  This rule requires sources to submit initial notifications, conduct performance tests if source is using an add-on control device, and submit periodic compliance reports.  In addition, sources are required to maintain records of the occurrence and duration of any startup, shutdown, or malfunction in the operation if using an add-on control device; any period during which the monitoring system is inoperative; parametric monitoring data; system maintenance and calibration; and work practices to demonstrate initial and ongoing compliance with the regulation.

We have determined that there is approximately an average of 504 respondents (i.e., 488 existing and 16 new RPC manufacturing facilities) subject to NESHAP, subpart WWWW.  In the previous ICR renewal, this information was confirmed with the rule lead addressing this source category at the Office of Air Quality Planning and Standards, information available in the active ICR, and existing background industry information gathered during the development of the rule and on EPA databases.

2.  Need for and Use of the Collection

2(a)  Need/Authority for the Collection

The Clean Air Act (ACT) provides authority to the Agency to establish standards to control air pollution and to ensure compliance with promulgated regulations through adequate recordkeeping and reporting by the affected industries (i.e., respondents).  The regulations include: the New Source Performance Standards (NSPS) under section 111 of the Act; the National Emission Standards for Hazardous Air Pollutants (NESHAP) which includes the original NESHAP standards and the more recent Maximum Achievable Control Technology (MACT) or NESHAP-MACT standards under section 112 of the Act; and the emission guidelines for the designated types of incinerators under section 129 of the Act.

2(b)  Practical Utility/Users of the Data

The recordkeeping and reporting requirements in the standard(s) are used by regulatory agencies, the public and the regulated community for a variety of reasons including the determination of the respondent’s compliance status, analytical studies to demonstrate compliance trends, and evaluations regarding the efficacy of the promulgated regulations.

The required recordkeeping and reporting are also used to: 1) certify compliance with the regulations; 2) determine the respondent’s compliance with the designated emission limitation(s); 3) notify regulatory agencies when a standard is violated; 4) evaluate continuous compliance through the use of emission or operational parameter monitors; and 5) ensure that plant personnel are following the required procedures and are periodically trained as indicated.

3.  Non-duplication, Consultations, and Other Collection Criteria

3(a)  Non-duplication

The standards do not require the duplication in the collection and reporting of information.  If the subject standards have not been delegated, the information is sent directly to the appropriate Environmental Protection Agency (EPA) regional office.  Otherwise, the information is sent directly to the delegated state or local agency.  If a state or local agency has adopted its own similar standards to implement the Federal standards, a copy of the report submitted to the state or local agency can be sent to the Administrator in lieu of the report required by the Federal standards.

3(b)  Public Notice Required Prior to ICR Submission to OMB

An announcement of a public comment period for the renewal of this ICR was published in the Federal Register (73 FR 31088) on May 30, 2008.  No comments were received on the burden published in the Federal Register.

3(c)  Consultations

The estimated number of sources and assumptions for each category were based on a review of the standard, information available in the active ICR, existing industry information gathered during the development of the rule and on EPA databases, and consultation with Keith Barnett, the rule lead addressing this source category at the Office of Air Quality Planning and Standards (OAQPS).

Any pertinent comments received since the last ICR renewal including those submitted in response to the first federal register notice announcing the renewal of this ICR, have been reviewed.  In this case, no comments were received.  It has been determined that no further consultations with industry are necessary to calculate the burden for this renewal.  It should be noted that the Agency involved RPC manufacturers, including 17 small firms, and their trade association in the development of this NESHAP and the associated recordkeeping and reporting requirements.

3(d)  Effects of Less Frequent Collection

The effect of less frequent collection would be a decrease in the margin of assurance that facilities are achieving the emission reductions mandated by the Clean Air Act through the promulgation of the applicable regulations.  In addition, the likelihood of detecting the poor operation and maintenance of control equipment decreases and the detection of noncompliance becomes problematic.

3(e)  General Guidelines

The reporting and the recordkeeping requirements do not violate the regulations established by Office of Management and Budget (OMB) at 5 CFR part 1320, section 1320.5.  However, most NESHAP standards and a few NSPS standards require records to be kept more than three years.  In general, these standards require the respondents to maintain all records, including reports and notifications, for five years.  The five-year record retention requirement is consistent with the Permit Program at 40 CFR part 70, and the five-year statute of limitations on which the permit program is based.

The retention of records for five years allows EPA to establish the compliance history of the respondent for purposes of determining the appropriate level of enforcement action.  Historically, EPA notes that the most flagrant violations have extended beyond a five-year period.  If records are retained for less than five years, EPA would be deterred from pursuing the most flagrant violations due to the destruction of records documenting non-compliance.

3(f)  Confidentiality

Any information submitted to the Agency for which a claim of confidentiality is made will be safeguarded according to the Agency policies set forth in Title 40, chapter 1, part 2, Subpart B - Confidentiality of Business Information (CBI) (see 40 CFR 2; 41 FR 36902, September 1, 1976; amended by 43 FR 40000, September 8, 1978; 43 FR 42251, September 20, 1978; 44 FR 17674, March 23, 1979).

3(g)  Sensitive Questions

The recordkeeping and reporting requirements do not contain sensitive questions.

4.  The Respondents and the Information Requested

4(a)  Respondents SIC and NAICS Codes

Respondents are owners or operators of RPC manufacturing facilities.  The following processes and operations constitute RPC manufacturing: closed mold and open mold fiberglass manufacturing; resin and gel coat mixing; resin and gel coat application equipment cleaning; and resin and gel coat storage.  The Standard Industrial Classification (SIC) code(s) and corresponding North American Industry Classification System (NAICS) for the respondents are listed below.

Category	SIC

code	NAICS code	Examples of regulated entities

Industry

	3087

3084

3089

3088

3089

3999

3281

3713

3716

3792	325991

326122

326191

326199

327991

336211

336213

336214	Reinforced plastic composites production facilities that manufacture and/or repair intermediate and/or final products using HAP containing thermoset resins and gel coats.

Federal Government

	Federally owned facilities that manufacture and/or repair intermediate and/or final products using HAP containing thermoset resins and gel

coats.

 	This table is not meant to be exhaustive, but rather provides a guide for readers regarding the entities likely to be regulated by this standard.  To determine whether the standard applies to a particular entity, review the applicability provisions in the standard.

4(b)  Information Requested

(i)  Data Items

All data in this ICR that are recorded and/or reported are required by NESHAP for Wet-Formed Fiberglass Mat Production (40 CFR part 63, subpart WWWW).

	A source must make the following reports:

Notification Reports

Initial notification requirements	63.9(b)(1)

Notification of compliance status when a source becomes subject to the standard	63.9(h), 63.5755(a)

Notification that source is subject to special compliance requirements, if applicable	63.9(d)

Notification of performance test   SEQ CHAPTER \h \r 1 	63.7(b), 63.5755(a)

Rescheduled of performance test	63.7(b)(2)

Demonstration of continuous monitoring system	63.9(g), 63.5755(a)

Change in information already provided	63.9(j)

Request for an extension of compliance with relevant standard	63.9(c)

Reports

Application for approval of the construction or reconstruction of a new major affected source, or reconstruction of a major affected source 63.5(6)(d)

Performance test results	63.10(d)(2),

63.5755

Startup, shutdown and malfunction plan	63.6(e)(3), 63.5758(d)

Periodic startup, shutdown and malfunction reports	63.10(d)(5)(i), 63.5758

Progress reports for compliance extension (if applicable)	63.6(i)  SEQ CHAPTER \h \r 1

Semiannual compliance reports 	63.5758(b-c)

	A source must keep the following records:

Recordkeeping

Startup, shutdown and malfunction plan	63.6(e)(3)

All reports and notifications	63.10(b)(1)

Records of startup, shutdown, and malfunction of process equipment 63.10(b)(2)(i), (iv), (v)

Records of malfunctions of air pollution control equipment 63.10(b)(2)(ii)

Any applicability determination that demonstrates why owner or operator believes source is unaffected	63.10(b)(3)

Records of maintenance of air pollution control equipment 63.10(b)(2)(iii)

Records of flow monitoring system performance evaluations, malfunctions, calibrations, and adjustments	63.10(b)(2)(vi), (vii), (viii), (ix), (x), (xi), 63.10(c)

Documentation required for waiver of recordkeeping or reporting requirements (if applicable)	63.10(b)(2)(xii)

Documentation of initial notifications	63.10(b)(2)(xiv)

Five-year retention of records	63.10(b)(1),   SEQ CHAPTER \h \r 1

63.5764(b)

	Electronic Reporting

At the present, many respondents to Clean Air Act standards use monitoring equipment that automatically records parameter data.  Although personnel at the affected facility must evaluate the data, this internal automation has significantly reduced the burden associated with monitoring and recordkeeping at the plant site.

Also, regulatory agencies, in cooperation with the respondents, continue to create reporting systems to transmit data electronically.  However, electronic reporting systems are still not widely used.  At this time, it is estimated that approximately 10 percent of the respondents use electronic reporting.

(ii)  Respondent Activities

Respondent Activities

Read instructions.

Write the notifications and reports listed above.

Enter information required to be recorded above.

Submit the required reports developing, acquiring, installing, and utilizing technology and systems for the purpose of collecting, validating, and verifying information.

Develop, acquire, install, and utilize technology and systems for the purpose of processing and maintaining information.

Develop, acquire, install, and utilize technology and systems for the purpose of 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.

Transmit, or otherwise disclose the information.

Regulatory agencies, to the extent possible, are relying more on automated techniques such as electronic submissions of reports, and are improving their tracking systems and database systems to enhance the use of these techniques.  However, electronic reporting systems are still

not widely used.  At this time, it is estimated that approximately 10 percent of the respondents use electronic reporting.

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

5(a)  Agency Activities

EPA conducts one or more of the following activities in connection with the acquisition, analysis, storage, and distribution of the required information.

Agency Activities

Observe initial performance tests and repeat performance tests if necessary.

Review notifications and reports, including performance test reports, and excess emissions reports, required to be submitted by industry.

Audit facility records.

Input, analyze, and maintain data in the AIRS Facility Subsystem (AFS).

5(b)  Collection Methodology and Management

The required data and reports can be evaluated on-site by conducting a partial compliance evaluation, full compliance evaluation or inspection, or through an off-site review of compliance monitoring records and reports.  Evaluation reports and inspection results are maintained by the Agency or delegated authority.

The results of these evaluations are entered into the AIRS Facility Subsystem (AFS) which is operated and maintained by EPA's Office of Compliance.  AFS is EPA’s database for the collection, maintenance, and retrieval of compliance data for approximately 125,000 industrial and government-owned facilities.  EPA uses the AFS for tracking air pollution compliance and enforcement by local and state regulatory agencies, EPA regional offices and EPA headquarters.  The EPA and its delegated authorities can retrieve and analyze the data.

5(c)  Small Entity Flexibility

The majority of the existing facilities subject to this NESHAP are classified as small businesses under the Small Business Administration definition (750 or fewer company employees.)  However, the impact on small businesses was accounted for in the development of the regulation.  In the final rule, EPA has provided the maximum degree of flexibility to minimize impacts on small businesses by providing several different compliance options, several of which require a minimum amount of recordkeeping and reporting requirements.  Small entities that would be subject to the regulation would not be systematically impacted more than larger entities.  Although the recordkeeping requirements are the same for small and large businesses, EPA considers these requirements the minimum needed to ensure compliance and, therefore, cannot reduce them further for small businesses.  Thus, EPA does not expect that any affected source, including small businesses, will experience adverse impacts due to the reporting and recordkeeping requirements of this rule. In the Economic Impact Analysis of the Final Reinforced Plastics NESHAP, 78 percent of the parent companies affected by proposed action were estimated to be small entities as defined by the Small Business Administration. The Agency assumes that 78 percent of the 504 facilities affected by this ICR, or 393 facilities, are small entities.

5(d)  Collection Schedule

The specific frequency for each information collection activity within this request is shown in Table 1: Annual Respondent Burden and Cost:  NESHAP for Reinforced Plastic Composites Production (40 CFR Part 63, Subpart WWWW) (Renewal), attached.

6.  Estimating the Burden and Cost of the Collection

Table 1 documents the computation of individual burdens for the recordkeeping and reporting requirements applicable to the industry.  The individual burdens are expressed under standardized headings believed to be consistent with the concept of burden under the Paperwork Reduction Act.  Where appropriate, specific tasks and major assumptions have been identified.  Responses to this information collection are mandatory.

The 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.

6(a)  Estimating Respondent Burden

The respondent burden is shown in Table 1.  The labor hours in Table 1 are based on Agency studies and background documents from the development of the regulation, Agency knowledge and experience with the NESHAP program, the previously approved ICR, and any comments received.

6(b)  Estimating Respondent Costs

(i)  Estimating Labor Costs

This ICR uses the following labor rates:

Managerial	$97.46   ($46.41 + 110%)

Technical	$83.71   ($39.86 + 110%)

Clerical	$42.55   ($20.26 + 110%)

These rates are from the United States Department of Labor, Bureau of Labor Statistics, March 19, 2005, “Table 2: Civilian Workers, by Occupational and Industry group.”  The rates are from column 1, “Total Compensation.”  The rates have been increased by 110% to account for the benefit packages available to those employed by private industry.

(ii)  Estimating Capital/Startup and Operation and Maintenance Costs

The only costs to the regulated industry resulting from information collection activity required by the subject standard are operating and maintenance and labor costs.  There are no capital/startup costs.  The capital/startup costs are one-time costs when a facility becomes subject to the regulation.  This is based on the assumption that all existing sources are in compliance with initial rule requirements and the assumption that the monitoring devices are integral parts of the control devices necessary to determine whether these are operating properly.  The annual operation and maintenance (O&M) costs are the ongoing costs to maintain the continuous emission monitors and other costs such as file storage, photocopying and postage.

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

The total annualized operation and maintenance cost to industry over the three-year period of this ICR is $22,000 (rounded).  Based on the assumptions discussed above, the only costs to industry result from other types of operation and maintenance costs, not related to operation of the monitoring equipment, which include file storage, photocopying and postage.  We have estimated that file storage and photocopying costs per response are estimated at $12.50 per hour of clerical labor.  First class postage is estimated at $7.63 per response for mailing to regulatory agencies.  The estimated operation, maintenance, and purchase of services costs averaged over the first 3 years are expected to be $22,000 (rounded) based on 1,077 responses and an average of one hour of clerical work per response for storage and photocopying.

6(c)  Estimating Agency Burden and Costs

The only costs to the Agency are those associated with analysis of the reported information.  EPA's overall compliance and enforcement program includes activities such as the examination of records maintained by the respondents and the publication and distribution of collected information.

The average annual Agency cost during the three years of the ICR is estimated to be $125,414 (rounded).  This cost is based on the average hourly labor rate as follows:

Managerial	$56.02   (GS-13, Step 5, $35.01 x 1.6)

Technical	$41.57   (GS-12, Step 1, $25.98 x 1.6)

Clerical	$22.50   (GS-6, Step 3, $14.06 x 1.6)

These rates are from the Office of Personnel Management (OPM) “2005 General Schedule” which excludes locality rates of pay.  Details upon which this estimate is based appear in Table 2: Annual Burden and Cost to The Federal Government:  NESHAP for Reinforced Plastic Composites Production (40 CFR Part 63, Subpart WWWW) (Renewal), attached.

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

The number of respondents is calculated using the following table which addresses the three years covered by this ICR.

Number of Respondents

	Respondents That Submit Reports	Respondents That Do Not Submit Any Reports

	Year	(A)

Number of New Respondents 1	(B)

Number of Existing Respondents	(C)

Number of Existing Respondents That Keep Records but Do Not Submit Reports	(D)

Number of Existing Respondents That Are Also New Respondents	(E)

Number of Respondents

(E=A+B+C-D)

1	16	488	0	0	488

2	16	504	0	0	504

3	16	520	0	0	520

Average	16	504	0	0	504

1 New respondents include sources with constructed, reconstructed and modified affected facilities.

To avoid double-counting respondents column D is subtracted.  As shown above, the average Number of Respondents over the three-year period of this ICR is 504.

The total number of annual responses per year is calculated using the following table:

Total Annual Responses

(A)

Information Collection Activity	(B)

Number of Respondents	(C)

Number of Responses	(D)

Number of Existing Respondents That Keep Records But Do Not Submit Reports	(E)

Total Annual Responses

E=(BxC)+D

Notification of compliance status	16	1	0	16

Notification/application of construction	16	1	0	16

Notification of actual startup 	16	1	0	16

Notification of performance test and test plan	2	1.2	0	2.4

Report of performance test results 	2	1.2	0	2.4

Report of exceedances	100.8	2	0	201.6

Report of no exceedances	403.2	2	0	806.4

Report of startup, shutdown, malfunction 	16	1	0	16

Total

1,076.8

The number of Total Annual Responses, 1,077 (rounded), is shown in column E.

The total annual labor hours are 17,740 (rounded).  The total annual labor cost may be found in Table 1: Annual Respondent Burden and Cost: NESHAP for Reinforced Plastic Composites Production (40 CFR Part 63, Subpart WWWW) (Renewal), attached.

The average annual Agency burden and cost over next three years is shown in Table 2: Annual Burden and Cost to the Federal/State Government: NESHAP for Reinforced Plastic Composites Production (40 CFR Part 63, Subpart WWWW) (Renewal).

6(e)  Bottom Line Burden Hours Burden Hours and Cost Tables

The detailed bottom line burden hours and cost calculations for the respondents and the Agency are shown in Tables 1 and 2, respectively.

(i) Respondent Tally

The total annual labor costs are $1,432,143 (rounded).  Details regarding these estimates may be found in Table 1: Annual Respondent Burden and Cost: NESHAP for Reinforced Plastic Composites Production (40 CFR Part 63, Subpart WWWW) (Renewal).  Furthermore, the annual public reporting and recordkeeping burden for this collection of information is estimated to average 16 hours per response.

The cost calculations are detailed in Section 6(b)(iii), Capital/Startup vs. Operation and Maintenance (O&M) Cost.

(ii) The Agency Tally

The average annual Agency burden hours and cost over next three years is shown in Table 2: Annual Burden and Cost to the Federal/State Government: NESHAP for Reinforced Plastic Composites Production (40 CFR Part 63, Subpart WWWW) (Renewal).

6(f)  Reasons for Change in Burden

There is no change in burden from the most recently approved ICR.

6(g)  Burden Statement

The annual public reporting and recordkeeping burden for this collection of information is estimated to average 16 hours per response.  Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, disclose, or provide information to or for a Federal agency.  This includes the time needed to review instructions; to 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; to adjust the existing ways to comply with any previously applicable instructions and requirements; to train personnel to be able to respond to a collection of information; to search data sources; to complete and review the collection of information; and to 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 valid OMB Control Number.  The OMB Control Numbers for EPA’s regulations are listed at 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-OECA-2008-0432. An electronic version of the public docket is available at http://www.regulations.gov/ which may be used to obtain a copy of the draft collection of information, submit or view public comments, access the index listing of the contents of the 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 in this document.  The documents are also available for public viewing at the Enforcement and Compliance Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Ave., NW, Washington, DC.  The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays.  The telephone number for the Reading Room is<PHONE_NUMBER>, and the telephone number for the Enforcement and Compliance Docket and Information Center Docket is (202) 566-1514.  Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office for EPA. Please include the EPA Docket ID Number EPA-HQ-OECA-2008-0432 and OMB Control Number 2060-0509 in any correspondence.

Part B of the Supporting Statement

This part is not applicable because no statistical methods were used in collecting this information.

Table 1:  Annual Respondent Burden and Cost:  NESHAP for Reinforced Plastic Composites Production

(40 CFR Part 63, Subpart WWWW) (Renewal)

Burden item

(A)

Person-

hours per

occurrence

(B)

No.  of

occurrences

per respondent

per year

(C)

Person-

hours per

respondent

per year

(C=AxB)

(D)

Respondents

per year  a

(E)

Technical

person-

hours per

year

(E=CxD)

(F)

Management

person-hours

per year

(Ex0.05)

(G)

Clerical

person-

hours per 	year

(Ex0.1)

(H)

Cost, $  b

1.  Applications

N/A

2.  Survey and Studies

N/A

3.  Acquisition, Installation,         and Utilization of  Technology and  Systems

/A

4.  Reporting Requirements

  A.  Read instructions:

     i.  Facilities with 4 groups of           operations

12

1

12

14.9

178.8

8.94

17.9

$16,600.29

     ii.  Facilities with 5 groups of          operations

13

1

13

1.1

14.3

0.72

1.43

1,328.05

   B.  Required activities:

   Sources with add-on controls

     i.  Initial performance test  c

320

1

320

2

640.0

32.0

64.0

59,416.32

     ii.  Repeat of performance test

320

1

320

0.4

128.0

6.4

12.8

11,883.26

     iii.  Operation, maintenance,          monitoring plan

40

1

40

2

80.0

4.0

8.0

7,427.04

     iv.  Startup, shutdown,                   malfunction plan

20

1

20

2

40.0

2.0

4.0

$3,713.52

     v.  Monitoring of operating            parameters and equipment:  d

Included in 5E

  C.  Gather Existing Information

Included in 5D, 5E

  D.  Write report  a, c

     i.  Notification of compliance        status

4

1

4

16

64.0

3.2

6.4

$5,941.63

     ii.  Notification of                          construction/ reconstruction  a

2

1

2

16

32.0

1.6

3.2

$2,970.82

     iii.  Notification of actual               startup

2

1

2

16

32.0

1.6

3.2

$2,970.82

     iv.  Notification of                         performance test

2

1

2

2

4

0.2

0.4

$371.35

     v.  Reports of performance            test results

Included in 4B

     vii.  Report of exceedances  f

16

2

32

100.8

3,225.6

161.3

322.6

$299,461.90

     viii.  Report of no exceedances

8

2

16

403.2

6,451.2

322.6

645.1

$598,919.55

     ix.  Startup, shutdown,

     malfunction report  g

2

1

2

16

32.0

1.6

3.2

$2,970.82

5.  Recordkeeping Requirements

  A.  Read instructions

Included in 4A

  B.  Plan activities

Included in 4B

  C.  Implement activities

Included in 4B

  D.  Develop record system                (spreadsheets):  h

     i.  System for low HAP resin	4	1

4

14

56.0

2.8

5.6

$5,198.93

     ii.  System for work practices	1	1

1

16

16.0

0.8

1.6

$1,485.41

     iii.  System for add-on control       devices	2	1

2

2

4.0

0.2

0.4

$371.35

  E.  Time to enter and transmit all   information into record system  h

     i.  Enter information on low           HAP resin

10

1

10

396

3,960

198.0

396.0

$367,638.48

     ii.  Enter information on work        practices and operating                  parameters

N/A

  F.  Develop operator training         course and keep records of            operators taken it

10

1

10

16

160

8.0

16.0

$14,854.08

  G.  Time to train personnel:

     i.  Small facilities (less than           100 employees)

2

1

2

13.1

26.2

1.3

2.6

$2,430.53

0.4

1

0.4

413.3

165.3

8.3

16.6

$15,348.26

     ii.  Medium facilities (100-250      employees)

4

1

4

1.8

7.2

0.4

0.7

$671.48

0.8

1

0.8

55.4

44.32

2.2

4.4

$4,109.98

     iii.  Large facilities (more than       250 employees)

8

1

8

1.1

8.8

0.4

0.8

$813.93

1.6

1

1.6

35.3

56.5

2.8

5.7

$5,245.04

  H. Time for audits

N/A

TOTAL LABOR  BURDEN AND COST

15,426.2

771.3

1,542.6

$1,432,142.83

TOTAL LABOR HOURS (Rounded)

17,740

$1,432,143

Assumptions:

a  There is an average of 488 existing reinforced plastic composites facilities (or RPC) subject to NESHAP subpart WWWW.  We have assumed that there will be an average of 16 new RPC facilities each year over the three year period of this ICR of which 93 percent (ir 14.9) will consist of facilities with 4 groups of operations and 7 percent of facilities with 5 groups of operations.  There is an average of 504 existing respondents per year over the next three year period of this ICR.

b  This ICR uses the following labor rates: $97.46 per hour for Executive, Administrative, and Managerial labor; $83.71 per hour for Technical labor, and $42.55 per hour for Clerical labor.  These rates are from the United States Department of Labor, Bureau of Labor Statistics, March 19, 2005, ”Table 2: Civilian Workers, by Occupational and Industry group.”  The rates are from column 1: ”Total Compensation.”  The rates have been increased by 110% to account for the benefit packages available to those employed by private industry.

c    SEQ CHAPTER \h \r 1 New respondents have to comply with the initial rule requirements including notifications and performance tests.  We have assumed that two new respondents per year will install add-on controls equipment and therefore, will be require to conduct an initial performance test.  We have assumed that performance tests are repeated by 20 percent of the respondents.

d Monitoring and recordkeeping of operations for respondents with enclosures and add-on control devices include: 1) specific operating parameters for each control device established during the performance test, 2) start-up, shutdown, and malfunctions of equipment,  and 3) work practices.

e Monitoring and recordkeeping of operations for respondents that comply by limiting the HAP content of their raw materials include: 1) monitoring and recording in a spreadsheet the monthly consumption of material and the weighted-average HAP content over the past 12 months, and 2) work practices.  However, if all the materials in an operation meet the HAP content limit, then each respondent would need only to record HAP content and would not need to track monthly consumption or record the computations.    SEQ CHAPTER \h \r 1 For open molding and centrifugal casting operations, respondents would also have the option of averaging among thirteen different processes (open molding) and two different processes (centrifugal casting to calculate the monthly average of the actual and allowable emissions for the combined open molding and centrifugal casting operations.

f  We have assumed that approximately 80 percent of the 504 existing respondents (403.2) will report no excess emissions twice a year and approximately 20 percent (100.8) will report no excess emissions twice a year.

g  We have assumed that  all RPC facilities with add-on controls (12 existing and 2 new each year or an average of 16) will have at least one startup, shutdown or malfunction (SSM) that is not managed according to the SSM plan.

h    New respondents (16) have to develop a record system.  In addition, existing RPC facilities have to record operational data.  In general, the following monitoring is required:  1) facilities with open molding and/or centrifugal casting operations (354 existing and 14 new each year or an average of 396 per year) would have to record for low HAP resins; 2) facilities with add-on controls (12 existing and 2 new or an average of 16 RPCs per year) would have to record add-on control devices operating parameters; and 3) all facilities (504) need to keep records of its work practices.  Since operating parameters for control equipment and standard work practices are already monitored by industry for other purposes, we are not attributing these burdens to the rule.

i    We have assumed that he amount of time it takes a respondent to train its employees would vary with the number of employees at its facility.  We have also   SEQ CHAPTER \h \r 1 assumed that the distribution in size of the new respondents would be identical to that of the existing PRC universe.  Therefore, we have assumed that 82 percent of the respondents would be small business (i.e., 413.3 RPCs existing and 13.1 new RPC per year), 11 percent (i.e. 55.4 existing RPCs and 1.8 new RPCs per year), would be medium business, and 7 percent (i.e., 35.3 existing RPCs and 1.1 new RPCs) are large business.  Furthermore, we have assumed that respondents will be providing full training to new employees only.  Therefore, it will take existing respondents to train its new employees 20 percent of the time it takes new respondents to train all employees, assuming the same size business.

Table 2:  Annual Burden and Cost for the Federal Government:  NESHAP for Reinforced Plastic Composites Production (40 CFR Part 63, Subpart WWWW) (Renewal)

	Activity

(A)

EPA person-

hours per

occurrence

(B)

No. of

occurrences

per plant

per year

(C)

EPA person-

hours per

plant per

year

(C=AxB)

(D)

Plants

per

year  a

(E)

Technical

person-hours

per year

(E=CxD)

(F)

Management

person-hours

per year

(Ex0.05)

(G)

Clerical

person-

hours per

year

(Ex0.1)

(H)

Cost, $ b

Notification of  applicability  a

2

1

2

2

4.0

0.2

0.4

$186.48

Notification of intent to construct a major source and review application

12

1

12

16

32.0

10.2

3.2

$2,300.04

Notification of start of construction

2

1

2

16

32.0

1.6

3.2

$1,491.87

Notification of actual startup

2

1

2

16

32.0

1.6

3.2

$1,491.87

Notification of initial performance test and test plan

12

1.2

14.4

2

28.8

1.4

2.8

$1,343.14

Report of performance test results including operating parameters

12

1.2

14.4

2

28.8

1.4

2.8

$1,343.14

Notification of compliance status

2

1

2

16

32.0

1.6

3.2

$1,491.87

Review reports of excess emissions  c

4

2

8

100.8

806.4

40.3

80.6

                     $37,593.15

Review reports of no excess

emissions  c

2

2

4

403.2

1,612.8

80.6

161.3

$75,188.56

Review of startup, shutdown, malfunction report  d

4

1

4

16.0

64.0

3.2

6.4

$2,983.74

Subtotal Burden and Cost

2,672.8

133.64

267.3

$125,413.86

TOTAL ANNUAL BURDEN AND COST (rounded)

3,082

$125,414

Assumptions:

a   There is an average of 488 existing reinforced plastic composites facilities (or RPC) subject to NESHAP subpart WWWW.  We have assumed that there will be an average of 16 new RPC facilities each year over the three year period of this ICR.  Therefore, there is an average of 504  existing respondents per year over the next three year period of this ICR.  We have assumed that 82 percent (or 413.3) of the existing RPC facilities are small business, 11 percent (or 55.4) are medium size facilities and 7 percent (or 35.3) are large facilities.  Furthermore, we have assumed that 93 percent (or 14.9) of the new RPC facilities will consist of an average of four groups of operations and 7 percent (or 1.1) will consist of five groups of operations.

b   This cost is based on the following labor rates which incorporates a 1.6 benefits multiplication factor to account for government overhead expenses:  Managerial rate of $56.02 (GS-13, Step 5, $35.01 x 1.6), Technical rate of $41.57 (GS-12, Step 1, $25.98 x 1.6), and Clerical rate of $22.50 (GS-6, Step 3, $14.06 x 1.6).  These rates are from the Office of Personnel Management (OPM) ”2005 General Schedule“ which excludes locality rates of pay.

c   We have assumed that approximately 80 percent of the 505 respondents (or 404) will report no excess emissions twice a year and approximately 20 percent (or 101) will report no excess emissions twice a year.

d   We have assumed that all RPC facilities with add-on controls (12 existing and 2 new each year or an average of 16) will have at least one startup, shutdown, or malfunction occurrence that is not managed according to the plan.

  Economic Analysis of the Final Reinforced Plastics NESHAP, U.S. EPA, August 2002, EPA-452/R-02-007

 PAGE  19


[Federal Register Volume 88, Number 1 (Tuesday, January 3, 2023)]
[Notices]
[Pages 70-71]
[FR Doc No: 2022-28511]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG23-49-000.
    Applicants: Diablo Winds, LLC.
    Description: Diablo Winds, LLC submits Notice of Self-
Recertification of Exempt Wholesale Generator Status.
    Filed Date: 12/23/22.
    Accession Number: 20221223-5113.
    Comment Date: 5 p.m. ET 1/13/23.

    Take notice that the Commission received the following Complaints
and Compliance filings in EL Dockets:

    Docket Numbers: EL23-19-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: ISO/RTO Sec.  206 Filing: LDA Reliability Requirement
Complaint, Extended 28-day Comment Period to be effective 12/24/2022.
    Filed Date: 12/23/22.
    Accession Number: 20221223-5171.
    Comment Date: 5 p.m. ET 1/20/23.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER10-1728-015.
    Applicants: The Dayton Power and Light Company.
    Description: Triennial Market Power Analysis for Northeast Region
of The Dayton Power and Light Company.
    Filed Date: 12/23/22.
    Accession Number: 20221223-5114.
    Comment Date: 5 p.m. ET 2/21/23.

    Docket Numbers: ER16-2520-004; ER17-318-004; ER19-8-004; ER19-119-
004; ER19-2476-004; ER20-1799-003; ER20-1800-003; ER20-1801-004.
    Applicants: Techren Solar V LLC, Techren Solar IV LLC, Techren
Solar III LLC, Techren Solar II LLC, Techren Solar I LLC, Sweetwater
Solar, LLC, Three Peaks Power, LLC, Grand View PV Solar Two LLC.
    Description: Triennial Market Power Analysis for Northwest Region
of Techren Solar I LLC, et al.
    Filed Date: 12/22/22.
    Accession Number: 20221222-5329.
    Comment Date: 5 p.m. ET 2/20/23.

    Docket Numbers: ER18-1182-004.
    Applicants: System Energy Resources, Inc.
    Description: Compliance filing: SERI MPSC Settlement Compliance
(ER18-1182, et al.) to be effective 7/1/2022.
    Filed Date: 12/23/22.
    Accession Number: 20221223-5125.
    Comment Date: 5 p.m. ET 1/13/23.

    Docket Numbers: ER23-48-001.
    Applicants: West Line Solar, LLC.
    Description: Tariff Amendment: West Line Solar, LLC Response to
Request for Information and MBR Tariff to be effective 10/15/2022.
    Filed Date: 12/27/22.
    Accession Number: 20221227-5117.
    Comment Date: 5 p.m. ET 1/17/23.

    Docket Numbers: ER23-435-003.
    Applicants: System Energy Resources, Inc.
    Description: Compliance filing: SERI Part Settlement Compliance
(ER23-435 and EL2-72) to be effective 10/1/2022.
    Filed Date: 12/23/22.
    Accession Number: 20221223-5128.
    Comment Date: 5 p.m. ET 1/13/23.

    Docket Numbers: ER23-702-001.
    Applicants: Tri-State Generation and Transmission Association, Inc.
    Description: Tariff Amendment: Errata to Replace Transmittal Letter
in Docket No. ER23-703-000 to be effective 2/21/2023.
    Filed Date: 12/23/22.
    Accession Number: 20221223-5000.
    Comment Date: 5 p.m. ET 1/13/23.

    Docket Numbers: ER23-729-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: LDA Reliability Requirement;
Extended 28-day Comment Period to be effective 12/24/2022.
    Filed Date: 12/23/22.
    Accession Number: 20221223-5161.
    Comment Date: 5 p.m. ET 1/20/23.

    Docket Numbers: ER23-730-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Correction to eTariff
Metadata for SA No. 6258 Filed in Docket No. ER22-510-000 to be
effective 11/1/2021.
    Filed Date: 12/27/22.
    Accession Number: 20221227-5089.
    Comment Date: 5 p.m. ET 1/17/23.

    Take notice that the Commission received the following qualifying
facility filings:

    Docket Numbers: QF23-168-000.
    Applicants: GL Dairy Biogas, LLC.
    Description: Refund Report of GL Dairy Biogas, LLC.
    Filed Date: 12/7/22.
    Accession Number: 20221207-5182.
    Comment Date: 5 p.m. ET 1/17/23.

    The filings are accessible in the Commission's eLibrary system
(https://elibrary.ferc.gov/idmws/search/fercgensearch.asp) by querying
the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: December 27, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-28511 Filed 12-30-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 87, Number 57 (Thursday, March 24, 2022)]
[Notices]
[Pages 16758-16759]
[FR Doc No: 2022-06235]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket Number USCG-2020-0093]

Port Access Route Study: Seacoast of North Carolina Including
Offshore Approaches to the Cape Fear River and Beaufort Inlet, North
Carolina

AGENCY: Coast Guard, DHS.

ACTION: Notice of availability of draft report; request for comments.

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

SUMMARY: On March 18, 2020, the Coast Guard published a notice of study
and request for comments announcing a Port Access Route Study (PARS)
for the Seacoast of North Carolina Including Offshore Approaches to the
Cape Fear River and Beaufort Inlet, North Carolina. This notice
announces the availability of a draft report for public review and
comment. We seek your comments on the content, proposed routing
measures, and development of the report. The recommendations of the
study may lead to future rulemakings or appropriate international
agreements.

DATES: Your comments and related material must reach the Coast Guard on
or before April 25, 2022.

ADDRESSES: You may submit comments identified by docket number USCG-
2020-0093 using the Federal portal at https://www.regulations.gov. See
the ``Public Participation and Request for Comments'' portion of the
SUPPLEMENTARY INFORMATION section for further instructions on
submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
notice or study, call or email Mr. Matthew Creelman, Fifth Coast Guard
District (dpw), U.S. Coast Guard; telephone<PHONE_NUMBER>, email
[email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

AIS Automated Information System
DHS Department of Homeland Security
FR Federal Register
PARS Port Access Route Study
ACPARS Atlantic Coast Ports Access Route Study
U.S.C. United States Code

II. Background and Purpose

    The Ports and Waterways Safety Act (46 U.S.C. 70003(c)) requires
the Coast Guard to conduct a PARS, i.e., a study of potential traffic
density and the need for safe access routes for vessels. Through the
study process, the Coast Guard coordinates with Federal, State, local,
tribal and foreign state agencies (as appropriate) to consider the
views of maritime community representatives, environmental groups, and
other interested stakeholders. The primary purpose of this coordination
is, to the extent practicable, to reconcile the need for safe access
routes with other reasonable waterway uses such as construction and
operation of renewable energy facilities and other uses of the Atlantic
Ocean in the study area.
    In 2019, the Coast Guard announced a supplemental study of routes
used by all vessels to access ports on the Atlantic Coast of the United
States (84 FR 9541, March 15, 2019). This posting announced PARS for
specific port approaches and international transit areas along the
Atlantic Coast. The purpose of the supplemental studies is to align the
Atlantic Coast Port Access Route Study (ACPARS) (81 FR 13307, March 14,
2016) with port approaches. The ACPARS analyzed the Atlantic Coast
waters seaward of existing port approaches within the U.S. Exclusive
Economic Zone and was finalized in 2017 (82 FR 16510, April 5, 2017).
    The purpose of this notice is to announce the availability of the
draft PARS examining the seacoast of North Carolina and the offshore
approaches to the Cape Fear River and Beaufort Inlet, North Carolina.
We encourage you to participate in the study process by submitting
comments in response to this notice. This PARS used Automated
Information System (AIS) data and information from stakeholders to
identify and verify customary navigation routes as well as potential
conflicts involving alternative activities, such as wind energy
generation and offshore mineral exploitation and exploration, off the
seacoast of North Carolina and in the offshore approaches to the Cape
Fear River and Beaufort Inlet, North Carolina.
    The study area extends approximately 200 nautical miles seaward of
Cape Fear including the offshore area of North and South Carolina used
by commercial and public vessels transiting to and from these ports. An
illustration showing the study area is available in the docket where
indicated under ADDRESSES. Additionally, the study area is available
for viewing on the Mid-Atlantic Ocean Data Portal at http://portal.midatlanticocean.org/visualize/. See the ``Maritime'' portion of
the Data Layers section.
    On March 18, 2020, the Coast Guard published a Notice of Study;
request for comments entitled ``Port Access Route Study: Seacoast of
North Carolina Including Offshore Approaches to the Cape Fear River and
Beaufort Inlet, North Carolina'' in the Federal Register (85 FR 15487).
The initial comment period closed on May 18, 2020.

III. Information Requested

    PARS are the means by which the Coast Guard determines the need to
establish traffic routing measures or shipping safety fairways to
reduce the risk of collision, allision, and grounding, and their impact
on the environment; increase the efficiency and predictability of
vessel traffic; and preserve the paramount right of navigation while
continuing to allow for other reasonable waterway uses. The study
analyzes current routing measures around the approaches to the Cape
Fear River and Beaufort Inlet, North Carolina, and proposes an adequate
way to manage forecasted maritime traffic growth and to promote
navigation safety. The study also reviewed coastal port access from the
seacoasts of North and South Carolina within the study area and the co-
dependent use of the waters in support of future development.
    The Coast Guard received two discrete comments in response to our
Federal Register notice and other outreach efforts. We received one
additional comment, which was a duplicate of a previously submitted
comment. All comments and supporting documents are available in a
public docket and can be viewed at http://www.regulations.gov. To do
so, go to https://www.regulations.gov, type USCG-2020-0093 in the
``SEARCH'' box and click ``SEARCH.'' Next, look for this document in
the Search Results column, and click on it.
    As a result of the data analysis within this study, and considering
the

comments received, the Coast Guard proposes four additional measures
for consideration by the public: One precautionary area and three
shipping safety fairways. We seek your input on these proposals and
welcome comment on any impact to vessel transit time, commercial
fishing activity, recreational activity, and/or navigation safety. All
comments received will be reviewed and considered before a final
version of the PARS is announced in the Federal Register. This notice
is published under the authority of 46 U.S.C. 70004 and 5 U.S.C.
552(a).

IV. Public Participation and Request for Comments

    We encourage you to submit comments to this notice of availability
through the Federal portal at https://www.regulations.gov. To do so, go
to https://www.regulations.gov, type USCG-2020-0093 in the ``SEARCH''
box and click ``SEARCH.'' Next, look for this document in the Search
Results column, and click on it. Then click on the Comment option. In
your submission, please include the docket number for this notice of
availability and provide a reason for each suggestion or
recommendation. If your material cannot be submitted using https://www.regulations.gov, contact the person in the FOR FURTHER INFORMATION
CONTACT section of this document for alternate instructions.
    To view documents mentioned in this notice of inquiry as being
available in the docket, find the docket as described in the previous
paragraph, and then select ``Supporting & Related Material'' in the
Document Type column. Public comments will also be placed in our online
docket and can be viewed by following instructions on the https://www.regulations.gov Frequently Asked Questions web page. We review all
comments received, but we may choose not to post off-topic,
inappropriate, or duplicate comments that we receive.
    We accept anonymous comments. Comments we post to https://www.regulations.gov will include any personal information you have
provided. For more about privacy and submissions in response to this
document, see DHS's eRulemaking System of Records notice (85 FR 14226,
March 11, 2020).
    This document is issued under authority of 5 U.S.C. 552(a).

    Dated: March 8, 2022.
Richard E. Batson,
Captain, U.S. Coast Guard, Acting Commander, Fifth Coast Guard
District.
[FR Doc. 2022-06235 Filed 3-23-22; 8:45 am]
BILLING CODE 9110-04-P