[Federal Register Volume 81, Number 68 (Friday, April 8, 2016)]
[Rules and Regulations]
[Pages 20535-20540]
[FR Doc No: 2016-08152]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 9 and 721

[EPA-HQ-OPPT-2014-0697; FRL-9943-83]
RIN 2070-AK05

Trichloroethylene; Significant New Use Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: Under the Toxic Substance Control Act (TSCA), EPA is
finalizing a significant new use rule (SNUR) for trichloroethylene
(TCE). The significant new use is the manufacture or processing for use
in a consumer product, with an exception for use of TCE in cleaners and
solvent degreasers, film cleaners, hoof polishes, lubricants, mirror
edge sealants, and pepper spray. Persons subject to the SNUR will be
required to notify EPA at least 90 days before commencing any
manufacturing or processing of TCE for a significant new use. The
required notification will provide EPA with the opportunity to evaluate
the intended use and, if necessary based on the information available
at that time, an opportunity to protect against potential unreasonable
risks, if any, from that activity before it occurs.

DATES: This final rule is effective June 7, 2016.

ADDRESSES: The docket for this action, identified by docket
identification (ID) number EPA-HQ-OPPT-2014-0697, is available at
http://www.regulations.gov or at the Office of Pollution Prevention and
Toxics Docket (OPPT Docket), Environmental Protection Agency Docket
Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334, 1301
Constitution Ave. NW., Washington, DC. The 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 Public Reading Room is (202)
566-1744, and the telephone number for the OPPT Docket is (202) 566-
0280. Please review the visitor instructions and additional information
about the docket available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: For technical information contact:
Tyler Lloyd, Chemical Control Division (7405M), Office of Pollution
Prevention and Toxics, Environmental Protection Agency, 1200
Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number:
(202) 564-4016; email address<EMAIL_ADDRESS>    For general information contact: The TSCA-Hotline, ABVI-Goodwill,
422 South Clinton Ave., Rochester, NY 14620; telephone number: (202)
554-1404; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Executive Summary

A. Does this action apply to me?

    You may be potentially affected by this action if you manufacture,
process, or distribute in commerce chemical substances and mixtures.
The following list of North American Industrial Classification System
(NAICS) codes is not intended to be exhaustive, but rather provides a
guide to help readers determine whether this document applies to them.
Potentially affected entities may include:
     Textile Product Mills (NAICS code 314).
     Wood Product Manufacturing (NAICS code 321).
     Printing and Related Support Activities (NAICS code 323).
     Chemical Manufacturing (NAICS code 325).
     Plastics and Rubber Product Manufacturing (NAICS code
326).
     Primary Metal Manufacturing (NAICS code 331).
     Fabricated Metal Product Manufacturing (NAICS code 332).
     Machinery Manufacturing (NAICS code 333).
     Computer and Electronic Product Manufacturing (NAICS code
334).
     Electrical Equipment, Appliance, and Component
Manufacturing (NAICS code 335).
     Transportation Equipment Manufacturing (NAICS code 336).
     Furniture and Product Related Manufacturing (NAICS code
337).
     Miscellaneous Manufacturing (NAICS code 339).
     Clothing and Clothing Accessory Stores (NAICS code 488).
     Warehousing and Storage (NAICS code 493).
     Repair and Maintenance (NAICS code 811).
     National Security and International Affairs (NAICS code
928).
    Other types of entities not listed in this unit could also be
affected. The NAICS codes have been provided to assist you and others
in determining whether this action might apply to certain entities.
    This action may also affect certain entities through pre-existing
import certification and export notification rules under TSCA. Persons
who import any chemical substance governed by a final SNUR are subject
to the TSCA section 13 (15 U.S.C. 2612) import certification
requirements and the corresponding regulations at 19 CFR 12.118 through
12.127; see also 19 CFR 127.28. Those persons must certify that the
shipment of the chemical substance complies with all applicable rules
and orders under TSCA, including any SNUR requirements. The EPA policy
in support of import certification appears at 40 CFR part 707, subpart
B. In addition, any persons who export or intend to export a chemical
substance that is the subject of this final rule are subject to the
export notification provisions of TSCA section 12(b) (15 U.S.C.
2611(b)), (see 40 CFR 721.20), and must comply with the export
notification requirements in 40 CFR part 707, subpart D.
    To determine whether you or your business may be affected by this
action, you should carefully examine the applicability provisions in 40
CFR 721.5. If you have any questions regarding the applicability of
this action to a particular entity, consult the technical information
contact listed under FOR FURTHER INFORMATION CONTACT.

B. What is the agency's authority for taking this action?

    Section 5(a)(2) of TSCA (15 U.S.C. 2604(a)(2)) authorizes EPA to
determine that a use of a chemical substance is a ``significant new
use.'' EPA must make this determination by rule after considering all
relevant factors, including those listed in TSCA section 5(a)(2). Once
EPA determines that a use of a chemical substance is a significant new
use, TSCA section 5(a)(1)(B) requires persons to submit a significant
new use notice (SNUN) to EPA at least 90 days before they manufacture
(including import) or process the chemical substance for that use (15
U.S.C. 2604(a)(1)(B)). As described in Unit V., the general SNUR
provisions are found at 40 CFR part 721, subpart A.

C. What action is the agency taking?

    This final SNUR will require persons to notify EPA at least 90 days
before commencing the manufacture (including import) or processing of
TCE for use in a consumer product except for use in cleaners and
solvent degreasers, film cleaners, hoof polishes, lubricants, mirror
edge sealants, and pepper spray.
    The SNUR was proposed in the Federal Register of August 7, 2015 (80
FR 47441) (FRL-9930-33) (Ref. 1). Please consult the August 7, 2015
Federal Register document for further background information for this
final rule. Additionally, please note that the

RIN for the proposed SNUR was inadvertently published as RIN 2070-AK50.
This final SNUR bears the correct identification, RIN 2070-AK05. EPA
received 4 public comments on the proposal and EPA's response to those
comments appear in Unit X.

D. Why is the agency taking this action?

    This SNUR is necessary to ensure that EPA receives timely advance
notice of any future manufacturing and processing of TCE for new uses
that may produce changes in human and environmental exposures. The
rationale and objectives for this SNUR are explained in Unit III.

E. What are the estimated incremental impacts of this action?

    EPA has evaluated the potential costs of establishing SNUR
reporting requirements for potential manufacturers and processors of
TCE. This analysis (Ref. 2), which is available in the docket, is
discussed in Unit IX., and is briefly summarized here.
    In the event that a SNUN is submitted, costs are estimated to be
less than $8,900 per SNUN submission for large business submitters and
$6,500 for small business submitters. These estimates include the cost
to prepare and submit the SNUN and the payment of a user fee. The SNUR
requires first-time submitters of any TSCA section 5 notice to register
their company and key users with the CDX reporting tool, deliver a CDX
electronic signature to EPA, and establish and use a Pay.gov E-payment
account before they may submit a SNUN, for a cost of approximately $200
per firm. However, these activities are only required of first time
submitters of section 5 notices. In addition, for persons exporting a
substance that is the subject of a SNUR, a one-time notice to EPA must
be provided for the first export or intended export to a particular
country, which is estimated to be approximately $80 per notification.

II. Chemical Substance Subject to This Rule

    This final SNUR applies to TCE (Chemical Abstract Services Registry
Number (CASRN) 79-01-6) manufactured (including import) or processed
for use in any consumer product, except for use in cleaners and solvent
degreasers, film cleaners, hoof polishes, lubricants, mirror edge
sealants, and pepper spray. A consumer product is defined at 40 CFR
721.3 as ``a chemical substance that is directly, or as part of a
mixture, sold or made available to consumers for their use in or around
a permanent or temporary household or residence, in or around a school,
or in recreation.''

III. Rationale and Objectives

A. Rationale

    As discussed in detail in Units II and III of the proposed rule (80
FR 47441; August 7, 2015), TCE has the potential to induce
neurotoxicity, immunotoxicity, developmental toxicity, liver toxicity,
kidney toxicity, endocrine effects, and several forms of cancer (Ref.
3). EPA is concerned about the adverse health effects of TCE resulting
from commercial and consumer uses of the chemical substance. In EPA's
final risk assessment of TCE, released on June 25, 2014, the Agency
identified risks to workers using TCE and to bystanders for use as
degreasers and a spot-cleaner in dry cleaning uses, and EPA also
identified health risks to consumers using spray aerosol degreasers and
spray fixatives (Ref. 3).
    EPA believes that any additional use of this chemical substance in
consumer products could significantly increase human exposure, and that
such exposures should not occur without an opportunity for EPA review
and control as appropriate. However, as discussed in Unit II of the
proposed rule (80 FR 47441; August 7, 2015), based on review of Safety
Data Sheets and the National Institutes of Health's Household Products
Database, EPA believes that cleaners and solvent degreasers, film
cleaners, hoof polishes, lubricants, mirror edge sealants, and pepper
spray presently contain TCE and are therefore ongoing uses of this
chemical. EPA believes that other consumer products do not presently
contain TCE. Spray fixative product use was discontinued by September
1, 2015, as described in Unit II.A of the proposed rule (80 FR 47441).
    Consistent with EPA's past practice for issuing SNURs under TSCA
section 5(a)(2), EPA's decision to promulgate a SNUR for a particular
chemical use need not be based on an extensive evaluation of the
hazard, exposure, or potential risk associated with that use. Rather,
the Agency action is based on EPA's determination that if the use
begins or resumes, it may present a risk that EPA should evaluate under
TSCA before the manufacturing or processing for that use begins. Since
the new use does not currently exist, deferring a detailed
consideration of potential risks or hazards related to that use is an
effective use of resources. If a person decides to begin manufacturing
or processing the chemical for the use, the notice to EPA allows EPA to
evaluate the use according to the specific parameters and circumstances
surrounding that intended use.

B. Objectives

    Based on the considerations in Unit III.A., EPA will achieve the
following objectives with regard to the significant new use(s) that are
designated in this final rule:
    1. EPA will receive notice of any person's intent to manufacture or
process TCE for the described significant new use before that activity
begins.
    2. EPA will have an opportunity to review and evaluate data
submitted in a SNUN before the notice submitter begins manufacturing or
processing TCE for the described significant new use.
    3. EPA will be able to regulate prospective manufacturers or
processors of TCE before the described significant new use of the
chemical substance occurs, provided that regulation is warranted
pursuant to TSCA section 5(e), 5(f), 6, or 7.

IV. Significant New Use Determination

    Section 5(a)(2) of TSCA states that EPA's determination that a use
of a chemical substance is a significant new use must be made after
consideration of all relevant factors including:
    1. The projected volume of manufacturing and processing of a
chemical substance.
    2. The extent to which a use changes the type or form of exposure
of human beings or the environment to a chemical substance.
    3. The extent to which a use increases the magnitude and duration
of exposure of human beings or the environment to a chemical substance.
    4. The reasonably anticipated manner and methods of manufacturing,
processing, distribution in commerce, and disposal of a chemical
substance.
    In addition to these factors enumerated in TSCA section 5(a)(2),
the statute authorizes EPA to consider any other relevant factors.
    To determine what would constitute a significant new use of TCE, as
discussed in Unit II of the proposed rule (80 FR 47441), EPA considered
relevant information about the toxicity of the substance, likely human
exposures and environmental releases associated with possible uses, and
the four factors listed in section 5(a)(2) of TSCA (80 FR 47441). EPA
has determined as the significant new use: Manufacture or processing
for any use in a consumer product, except for use in cleaners and
solvent degreasers, film cleaners, hoof polishes, lubricants, mirror
edge sealants, and pepper spray. Because

TCE is not used in consumer products (with the limited exceptions of
use in cleaners and solvent degreasers, film cleaners, hoof polishes,
lubricants, mirror edge sealants, and pepper spray), EPA believes new
use in consumer products could increase the magnitude and duration of
human exposure to TCE. Exposure to TCE through inhalation may lead to a
wide array of adverse health effects, such as neurotoxicity,
immunotoxicity, developmental toxicity, liver toxicity, kidney
toxicity, endocrine effects, and several forms of cancer, as further
explained in Unit II.C of the proposed rule (80 FR 47441), and because
of these potential adverse effects EPA would like the opportunity to
evaluate such potential uses in consumer products for any associated
risks or hazards that might exist before those uses would begin.

V. Applicability of the General Provisions

    General provisions for SNURs appear under 40 CFR part 721, subpart
A. These provisions describe persons subject to the rule, recordkeeping
requirements, exemptions to reporting requirements, and applicability
of the rule to uses occurring before the effective date of the final
rule.
    Provisions relating to user fees appear at 40 CFR part 700.
According to 40 CFR 721.1(c), persons subject to SNURs must comply with
the same notice requirements and EPA regulatory procedures as
submitters of Premanufacture Notices (PMNs) under TSCA section
5(a)(1)(A). In particular, these requirements include the information
submissions requirements of TSCA section 5(b) and 5(d)(1), the
exemptions authorized by TSCA section 5(h)(1), (h)(2), (h)(3), and
(h)(5), and the regulations at 40 CFR part 720. Once EPA receives a
SNUN, EPA may take regulatory action under TSCA section 5(e), 5(f), 6,
or 7 to control the activities on which it has received the SNUN. If
EPA does not take action, EPA is required under TSCA section 5(g) to
explain in the Federal Register its reasons for not taking action.
    Persons who export or intend to export a chemical substance
identified in a proposed or final SNUR are subject to the export
notification provisions of TSCA section 12(b). The regulations that
interpret TSCA section 12(b) appear at 40 CFR part 707, subpart D. In
accordance with 40 CFR 707.60(b), this final SNUR does not trigger
export notification for articles. Persons who import a chemical
substance identified in a final SNUR are subject to the TSCA section 13
import certification requirements, codified at 19 CFR 12.118 through
12.127; see also 19 CFR 127.28. Those persons must certify that the
shipment of the chemical substance complies with all applicable rules
and orders under TSCA, including any SNUR requirements. The EPA policy
in support of import certification appears at 40 CFR part 707, subpart
B.

VI. Applicability of Rule to Uses Occurring Before Effective Date of
the Final Rule

    As discussed in the Federal Register of April 24, 1990 (55 FR
17376; FRL-3658-5) (Ref. 4), EPA has decided that the intent of section
5(a)(1)(B) of TSCA is best served by designating a use as a significant
new use as of the date of publication of the proposed rule rather than
as of the effective date of the final rule. If uses begun after
publication of the proposed rule were considered ongoing rather than
new, it would be difficult for EPA to establish SNUR notice
requirements, because a person could defeat the SNUR by initiating the
proposed significant new use before the rule became final, and then
argue that the use was ongoing as of the effective date of the final
rule. Thus, persons who begin commercial manufacture or processing of
TCE after the proposal was published on August 7, 2015, must cease such
activity before the effective date of this final rule. To resume their
activities, these persons would have to comply with all applicable SNUR
notice requirements and wait until the notice review period, including
all extensions, expires. Uses arising after the publication of the
proposed rule are distinguished from uses that exist at publication of
the proposed rule. The former would be new uses, the latter ongoing
uses, except that uses that are ongoing as of the publication of the
proposed rule would not be considered ongoing uses if they have ceased
by the date of issuance of a final rule. However, recognizing that use
in a consumer product of TCE in spray fixatives was to cease and did
cease by September 1, 2015 as described in Unit II.A. of the proposed
rule (80 FR 47441), EPA considers September 1, 2015 as the date from
which the significant new use with respect only to such spray fixatives
would be designated. Public commenters on the proposed rule did not
identify any additional ongoing uses. EPA has promulgated provisions to
allow persons to comply with this SNUR before the effective date. If a
person were to meet the conditions of advance compliance under 40 CFR
721.45(h), that person would be considered to have met the requirements
of the final SNUR for those activities.

VII. Test Data and Other Information

    EPA recognizes that TSCA section 5 does not usually require
developing any particular test data before submission of a SNUN. There
are two exceptions:
    1. Development of test data is required where the chemical
substance subject to the SNUR is also subject to a test rule under TSCA
section 4 (see TSCA section 5(b)(1)); and
    2. Development of test data may be necessary where the chemical
substance has been listed under TSCA section 5(b)(4) (see TSCA section
5(b)(2)).
    In the absence of a section 4 test rule or a section 5(b)(4)
listing covering the chemical substance, persons are required to submit
only test data in their possession or control and to describe any other
data known to or reasonably ascertainable by them (15 U.S.C. 2604(d);
40 CFR 721.25, and 40 CFR 720.50). However, as a general matter, EPA
recommends that SNUN submitters include data that would permit a
reasoned evaluation of risks posed by the chemical substance during its
manufacture, processing, use, distribution in commerce, or disposal.
EPA encourages persons to consult with the Agency before submitting a
SNUN. As part of this optional pre-notice consultation, EPA would
discuss specific data it believes may be useful in evaluating a
significant new use. SNUNs submitted for significant new uses without
any test data may increase the likelihood that EPA will take action
under TSCA section 5(e) to prohibit or limit activities associated with
this chemical.
    SNUN submitters should be aware that EPA will be better able to
evaluate SNUNs that provide detailed information on:
     Human exposure and environmental releases that may result
from the significant new uses of the chemical substance;
     Potential benefits of the chemical substance; and
     Information on risks posed by the chemical substances
compared to risks posed by potential substitutes.

VIII. SNUN Submissions

    EPA recommends that submitters consult with the Agency prior to
submitting a SNUN to discuss what data may be useful in evaluating a
significant new use. Discussions with the Agency prior to submission
can afford ample time to conduct any tests that might be helpful in
evaluating risks posed by the substance. According to 40 CFR 721.1(c),
persons submitting a SNUN

must comply with the same notice requirements and EPA regulatory
procedures as persons submitting a PMN, including submission of test
data on health and environmental effects as described in 40 CFR 720.50.
SNUNs must be submitted on EPA Form No. 7710-25, generated using e-PMN
software, and submitted to the Agency in accordance with the procedures
set forth in 40 CFR 721.25 and 40 CFR 720.40. E-PMN software is
available electronically at http://www.epa.gov/opptintr/newchems.

IX. Economic Analysis

A. SNUNs

    EPA has evaluated the potential costs of establishing SNUR
reporting requirements for potential manufacturers and processors of
the chemical substance included in this final rule (Ref. 2). In the
event that a SNUN is submitted, costs are estimated at approximately
$8,900 per SNUN submission for large business submitters and $6,500 for
small business submitters. These estimates include the cost to prepare
and submit the SNUN, and the payment of a user fee. Businesses that
submit a SNUN would be subject to either a $2,500 user fee required by
40 CFR 700.45(b)(2)(iii), or, if they are a small business with annual
sales of less than $40 million when combined with those of the parent
company (if any), a reduced user fee of $100 (40 CFR 700.45(b)(1)).
EPA's complete economic analysis is available in the public docket for
this final rule (Ref. 2).

B. Export Notification

    Under section 12(b) of TSCA and the implementing regulations at 40
CFR part 707, subpart D, exporters must notify EPA if they export or
intend to export a chemical substance or mixture for which, among other
things, a rule has been proposed or promulgated under TSCA section 5.
For persons exporting a substance that is the subject of a SNUR, a one-
time notice to EPA must be provided for the first export or intended
export to a particular country. The total costs of export notification
will vary by chemical, depending on the number of required
notifications (i.e., the number of countries to which the chemical is
exported). While EPA is unable to make any estimate of the likely
number of export notifications for the chemical covered in this final
SNUR, as stated in the accompanying economic analysis of this final
SNUR, the estimated cost of the export notification requirement on a
per unit basis is approximately $80.

X. Response to Public Comment

    The Agency reviewed and considered all comments received related to
the proposed rule. Copies of all comments are available in the docket
for this action (EPA-HQ-OPPT-2014-0697). A discussion of the major
comments germane to the rulemaking and the Agency's responses follow.

A. Support for TCE SNUR

    1. Comment. One commenter supports the proposed rule and reiterates
human health effects related to TCE exposure. (Docket ID# EPA-HQ-OPPT-
2014-0697-0009.)
    Response. EPA acknowledges the comment.
    2. Comment. One commenter supports the proposed rule and asks EPA
to (a) ``broaden the scope of the SNUR to: (1) Include certain
commercial uses of TCE, and (2) regularly review ongoing uses of TCE
and update the SNUR to include any discontinued uses'' and (b)
``promptly promulgate a TSCA section 6(a) rule to address identified
risks of TCE from ongoing uses.'' (Docket ID# EPA-HQ-OPPT-2014-0697-
0010.)
    Response. The commenter points out that there are ``widespread
ongoing commercial uses of TCE.'' Currently ongoing commercial uses of
TCE cannot be included in the SNUR. EPA will continue to monitor uses
of TCE and consider promulgating future SNURs for discontinued or other
non-ongoing uses.
    TSCA section 6 provides authority for EPA to ban or restrict the
manufacture (including import), processing, distribution in commerce,
and use of chemicals, as well as any manner or method of disposal. EPA
identified TCE for risk evaluation as part of its Work Plan for
Chemical Assessment under TSCA. TCE is used in industrial and
commercial processes, and also has some limited uses in consumer
products. In the June 2014 TSCA Work Plan Chemical Risk Assessment, EPA
identified risks associated with commercial degreasing and some
consumer uses. EPA is initiating rulemaking under TSCA section 6 to
address these risks. Specifically, EPA will determine whether the use
of TCE in some commercial degreasing uses, as a spotting agent in dry
cleaning, and in certain consumer products presents an unreasonable
risk to human health and the environment such that regulation is
warranted under TSCA section 6.
    3. Comment. One commenter agrees with the EPA's understanding that
TCE is not widely used, with the exception of TCE in cleaners and
solvent, degreasers, film cleaners, hoof polishes, lubricants, mirror
edge sealants, and pepper spray. (Docket ID# EPA-HQ-OPPT-2014-0697-
0011.)
    Response. EPA acknowledges the comment.
    4. Comment. One commenter asks the Agency to ``rescind any
exemption to issuing a notice to any party looking to begin using TCE
in the production of any consumer good'' because TCE ``is known to be a
volatile organic compound (VOC) with a close association with many
adverse health and environmental effects.'' (Docket ID# EPA-HQ-OPPT-
2014-0697-0008.)
    Response. EPA acknowledges the comment. As described in Unit
III.A., by issuing this final rule EPA defers, if and until such time
as a SNUN is submitted, the opportunity to evaluate the use according
to the specific parameters and circumstances surrounding that intended
use before such use could occur. In the event that a SNUN is submitted,
EPA will follow all regulations and guidelines, pursuant to TSCA
section 5(a)(2), that guide the assessment of any environmental and
health concerns resulting from the Significant New Use.

B. Review of Work Plan Chemical Risk Assessment

    1. Comment. One commenter contends that the final Work Plan
Chemical Risk Assessment ``should not serve as the basis for
regulation'' and notes specific concerns with it, asking EPA to respond
to each. (Docket ID# EPA-HQ-OPPT-2014-0697-0011.)
    Response. The peer-reviewed Work Plan Chemical Risk Assessment
referenced by the commenter includes an assessment of the hazard of
TCE. As described in the risk assessment, TCE is carcinogenic to humans
and TCE exposure is associated with a range of non-cancer health
effects in humans and animals, including developmental toxicity,
immunotoxicity, kidney toxicity, reproductive toxicity, neurotoxicity
and liver toxicity. While EPA considered relevant information about the
toxicity of the substance, likely human exposures and environmental
releases associated with possible uses, and the four factors listed in
section 5(a)(2) of TSCA (80 FR 47441), EPA believes that the
commenter's specific concerns are not relevant to the ``basis for
regulation'' for this SNUR.
    Under section 5(a)(2), EPA is neither required to determine that a
particular new use of any chemical substances presents, nor even that
it may present, an unreasonable risk to human health or the
environment. Rather, EPA issues a SNUR for a particular new use of a

substance if it has reason to anticipate that the use would raise
significant questions related to potential exposure, so that it should
have an opportunity to review the use before such use should occur. As
discussed in Unit IV, EPA based this judgement on a consideration of
all relevant factors, including the specific factors identified at
section 5(a)(2).

XI. References

    The following is a listing of the documents that are specifically
referenced in this document. The docket includes these documents and
other information considered by EPA, including documents that are
referenced within the documents that are included in the docket, even
if the referenced document is not physically located in the docket. For
assistance in locating these other documents, please consult the
technical person listed under FOR FURTHER INFORMATION CONTACT.

    1. EPA. Trichloroethylene (TCE); Significant New Use Rule; TCE
in Certain Consumer Products; Proposed Rule. Federal Register (80 FR
47441, August 7, 2015) (FRL-9930-33).
    2. EPA. Economic Analysis for the Final Significant New Use Rule
for Trichloroethylene (TCE). March 10, 2016.
    3. EPA. TSCA Workplan Chemical Risk Assessment--
Trichloroethylene: Degreasing, Spot Cleaning and Arts & Crafts Uses;
Supporting and Related Material. June 25, 2014.
    4. EPA. Significant New Uses of Certain Chemical Substances;
Final Rule. Federal Register (55 FR 17376, April 24, 1990) (FRL-
3658-5).

 XII. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review under Executive Orders 12866 (58 FR 51735, October 4, 1993)
and 13563 (76 FR 3821, January 21, 2011).

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden
under the PRA, 44 U.S.C. 3501 et seq. Burden is defined in 5 CFR
1320.3(b). The information collection activities associated with
existing chemical SNURs are already approved by OMB under OMB control
number 2070-0038 (EPA ICR No. 1188); and the information collection
activities associated with export notifications are already approved by
OMB under OMB control number 2070-0030 (EPA ICR No. 0795). If an entity
were to submit a SNUN to the Agency, the annual burden is estimated to
be less than 100 hours per response, and the estimated burden for
export notifications is less than 1.5 hours per notification. In both
cases, burden is estimated to be reduced for submitters who have
already registered to use the electronic submission system.
    An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information that requires OMB approval
under the PRA, unless it has been approved by OMB and displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in title 40 of the CFR, after appearing in the Federal
Register, are listed in 40 CFR part 9, and included on the related
collection instrument, or form, if applicable. EPA is amending the
table in 40 CFR part 9 to list this SNUR. This listing of the OMB
control numbers and their subsequent codification in the CFR satisfies
the display requirements of the PRA and OMB's implementing regulations
at 5 CFR part 1320. Since the existing OMB approval was previously
subject to public notice and comment before OMB approval, and given the
technical nature of the table, EPA finds that further notice and
comment to amend the table is unnecessary. As a result, EPA finds that
there is ``good cause'' under section 553(b)(3)(B) of the
Administrative Procedure Act, 5 U.S.C. 553(b)(3)(B), to amend this
table without further notice and comment.

C. Regulatory Flexibility Act (RFA)

    Pursuant to section 605(b) of the RFA, 5 U.S.C. 601 et seq., I
certify that this action will not have a significant economic impact on
a substantial number of small entities.
    A SNUR applies to any person (including small or large entities)
who intends to engage in any activity described in the rule as a
``significant new use.'' By definition of the word ``new'' and based on
all information currently available to EPA, it appears that no small or
large entities presently engage in such activities. Since this SNUR
will require a person who intends to engage in such activity in the
future to first notify EPA by submitting a SNUN, no economic impact
will occur unless someone files a SNUN to pursue a significant new use
in the future or forgoes profits by avoiding or delaying the
significant new use. Although some small entities may decide to conduct
such activities in the future, EPA cannot presently determine how many,
if any, there may be. However, EPA's experience to date is that, in
response to the promulgation of SNURs covering over 1,000 chemical
substances, the Agency receives only a handful of notices per year.
During the six year period from 2005-2010, only three submitters self-
identified as small in their SNUN submission (Ref. 2). EPA believes the
cost of submitting a SNUN is relatively small compared to the cost of
developing and marketing a chemical new to a firm or marketing a new
use of the chemical and that the requirement to submit a SNUN generally
does not have a significant economic impact.
    Therefore, EPA believes that the potential economic impact of
complying with this final SNUR is not expected to be significant or
adversely impact a substantial number of small entities. In a SNUR that
published as a final rule on August 8, 1997 (62 FR 42690) (FRL-5735-4),
the Agency presented its general determination that proposed and final
SNURs are not expected to have a significant economic impact on a
substantial number of small entities.

D. Unfunded Mandates Reform Act (UMRA)

    Based on EPA's experience with proposing and finalizing SNURs,
State, local, and Tribal governments have not been impacted by these
rulemakings, and EPA does not have any reason to believe that any
State, local, or Tribal government would be impacted by this
rulemaking. As such, the requirements of sections 202, 203, 204, or 205
of UMRA, 2 U.S.C. 1531-1538, do not apply to this action.

E. Executive Order 13132: Federalism

    This action will not have a substantial direct effect on States, on
the relationship between the national government and the States, or on
the distribution of power and responsibilities among the various levels
of government, as specified in Executive Order 13132 (64 FR 43255,
August 10, 1999).

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    This final rule does not have Tribal implications because it is not
expected to have any effect (i.e., there will be no increase or
decrease in authority or jurisdiction) on Tribal governments, on the
relationship between the Federal government and the Indian tribes, or
on the distribution of power and responsibilities between the Federal
government and Indian tribes. Thus, Executive Order 13175 (65 FR 67249,

November 9, 2000) does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

    EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997),
as applying only to those regulatory actions that concern environmental
health or safety risks that EPA has reason to believe may
disproportionately affect children, per the definition of ``covered
regulatory action'' in section 2-202 of the Executive Order. This
action is not subject to Executive Order 13045 because it does not
concern an environmental health risk or safety risk.

H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

    This final rule is not subject to Executive Order 13211 (66 FR
28355, May 22, 2001), because this action is not expected to affect
energy supply, distribution, or use.

I. National Technology Transfer and Advancement Act (NTTAA)

    Since this action does not involve any technical standards, section
12(d) of NTTAA, 15 U.S.C. 272 note, does not apply to this action.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    This final rule does not invoke special consideration of
environmental justice related issues as delineated by Executive Order
12898 (59 FR 7629, February 16, 1994), because EPA has determined that
this action will not have disproportionately high and adverse human
health or environmental effects on minority or low-income populations.
This action does not affect the level of protection provided to human
health or the environment.

XIII. Congressional Review Act (CRA)

    This action is subject to the CRA, 5 U.S.C. 801 et seq., and the
EPA will submit a rule report to each House of Congress and the
Comptroller of the United States. This action is not a ``major rule''
as defined by 5 U.S.C. 804(2).

List of Subjects

40 CFR Part 9

    Environmental protection, Reporting and recordkeeping requirements.

40 CFR Part 721

    Environmental protection, Chemicals, Hazardous substances,
Reporting and recordkeeping requirements.

    Dated: April 4, 2016.
Wendy Cleland-Hamnett,
Director, Office of Pollution Prevention and Toxics.
    Therefore, 40 CFR chapter I is amended as follows:

PART 9--[AMENDED]

0
1. The authority citation for part 9 continues to read as follows:

    Authority: 7 U.S.C. 135 et seq., 136-136y; 15 U.S.C. 2001, 2003,
2005, 2006, 2601-2671; 21 U.S.C. 331j, 346a, 348; 31 U.S.C. 9701; 33
U.S.C. 1251 et seq., 1311, 1313d, 1314, 1318, 1321, 1326, 1330,
1342, 1344, 1345 (d) and (e), 1361; E.O. 11735, 38 FR 21243, 3 CFR,
1971-1975 Comp. p. 973; 42 U.S.C. 241, 242b, 243, 246, 300f, 300g,
300g-1, 300g-2, 300g-3, 300g-4, 300g-5, 300g-6, 300j-1, 300j-2,
300j-3, 300j-4, 300j-9, 1857 et seq., 6901-6992k, 7401-7671q, 7542,
9601-9657, 11023, 11048.

0
2. In Sec.  9.1, add the following section in numerical order under the
undesignated center heading ``Significant New Uses of Chemical
Substances'' to read as follows:

Sec.  9.1  OMB approvals under the Paperwork Reduction Act.

* * * * *

------------------------------------------------------------------------
                                                            OMB Control
                     40 CFR citation                          number
------------------------------------------------------------------------

                                * * * * *
               Significant New Uses of Chemical Substances

                                * * * * *
721.10851...............................................       2070-0038

                                * * * * *
------------------------------------------------------------------------

* * * * *

PART 721--[AMENDED]

0
3. The authority citation for part 721 continues to read as follows:

    Authority: 15 U.S.C. 2604, 2607, and 2625(c).

0
4. Add Sec.  721.10851 to subpart E to read as follows:

Sec.  721.10851  Trichloroethylene.

    (a) Chemical substance and significant new uses subject to
reporting. (1) The chemical substance trichloroethylene (CAS 79-01-6)
is subject to reporting under this section for the significant new use
described in paragraph (a)(2) of this section.
    (2) Manufacture or processing for use in a consumer product except
for use in cleaners and solvent degreasers, film cleaners, hoof
polishes, lubricants, mirror edge sealants, and pepper spray.
    (b) [Reserved]
[FR Doc. 2016-08152 Filed 4-7-16; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 80, Number 213 (Wednesday, November 4, 2015)]
[Notices]
[Pages 68338-68342]
[FR Doc No: 2015-28020]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76295; File No. SR-Phlx-2015-83]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Risk
Monitor Mechanism

October 29, 2015.
    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 October 15, 2015, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``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.
---------------------------------------------------------------------------

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

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 1093 entitled ``Phlx XL Risk
Monitor Mechanism'' by reserving this rule and relocating the rule
governing the Risk Monitor Mechanism into Phlx Rule 1095, entitled
``Automated Removal of Quotes'' which contains similar market maker \3\
risk monitor tools. The Exchange is also modifying

the language currently contained in Rule 1093.
---------------------------------------------------------------------------

    \3\ A ``Market Maker'' includes Registered Options Traders
(``ROTs'') (Rule 1014(b)(i) and (ii)), which includes Streaming
Quote Traders (``SQTs'') (see Rule 1014(b)(ii)(A)) and Remote
Streaming Quote Traders (``RSQTs'') (see Rule 1014(b)(ii)(B)). An
SQT is defined in Exchange Rule 1014(b)(ii)(A) as an ROT who has
received permission from the Exchange to generate and submit option
quotations electronically in options to which such SQT is assigned.
An RSQT is defined in Exchange Rule 1014(b)(ii)(B) as an ROT that is
a member or member organization with no physical trading floor
presence who has received permission from the Exchange to generate
and submit option quotations electronically in options to which such
RSQT has been assigned. An RSQT may only submit such quotations
electronically from off the floor of the Exchange. A Market Maker
also includes a specialist, an Exchange member who is registered as
an options specialist pursuant to Rule 1020(a).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the filing is to relocate and amend the current rule
text of the Risk Monitor Mechanism Rule in 1093.\4\ The Exchange is
proposing to relocate the rule text into Rule 1095, which currently
describes two other risk mechanisms offered to Market Makers today.\5\
Quoting across many series in an option creates the possibility of
``rapid fire'' executions that can create large, unintended principal
positions that expose Market Makers, who are required to continuously
quote in assigned options, to potentially significant market risk. The
Risk Monitor Mechanism (hereinafter ``Percentage-Based Threshold'')
permits Market Makers to monitor risk arising from multiple executions
across multiple options series of a single underlying security.
---------------------------------------------------------------------------

    \4\ The proposed amendments will conform the rule text to the
manner in which the Exchange's Phlx XL system (``System'') operates
today.
    \5\ The two risk protections, Volume-Based Threshold and the
Multi-Trigger Threshold, are Market Maker protections, similar to
the Risk Monitor Mechanism to assist Market Makers to control their
trading risks.
---------------------------------------------------------------------------

    The Exchange will require Market Makers to utilize either the
Percentage-Based Threshold or the Volume-Based Threshold.\6\ The Multi-
Trigger Threshold will be optional.\7\ Today, Market Makers are
required to utilize the Percentage-Based Threshold.
---------------------------------------------------------------------------

    \6\ The Volume-Based Threshold is offered only to Market Makers.
    \7\ The Multi-Trigger Threshold is offered only to Market
Makers.
---------------------------------------------------------------------------

Current Rule Text in Rule 1093
    Phlx Rule 1093 specifically describes the counting program that is
maintained by the trading system (hereinafter ``System'') for each Phlx
XL participant (hereinafter ``Market Maker''), in a particular option.
Specifically, the counting program counts the number of contracts
traded in an option by each Market Maker within a specified time
period, not to exceed 15 seconds, established by each Market Maker,
known in this rule as the ``specified time period.''
    The specified time period commences for an option when a
transaction occurs in any series in such option. The Exchange counts
Specialized Quote Feed (``SQF'') \8\ quotes only in determining the
number of contracts traded and removed by the System. When a Market
Maker trades the Specified Engagement Size during the specified time
period, the Percentage-Based Threshold is triggered \9\ and the System
automatically removes such Market Maker's quotations from the
Exchange's orders in all series of the particular option. The
Percentage-Based Threshold is engaged when the counting program
determines that the Issue Percentage equals or exceeds a percentage
established by the Market Maker, not less than 100%.
---------------------------------------------------------------------------

    \8\ SQF permits the receipt of quotes. SQF Auction Responses and
market sweeps are also not included.
    \9\ A trigger is defined as the event which causes the System to
automatically remove all quotes in all options series in an
underlying issue.
---------------------------------------------------------------------------

    The Specified Engagement Size is automatically offset by a number
of contracts that are executed on the opposite side of the market in
the same option issue during the specified time period known as the
``Net Offset Specified Engagement Size.'' Long call positions are only
offset by short call positions, and long put positions are only offset
by short put positions. The Percentage-Based Threshold is engaged once
the Net Offset Specified Engagement Size represents a net number of
contracts executed among all series in an option issue, during the
specified time period, where the issue percentage is equal to or
greater than the Specified Percentage.\10\
---------------------------------------------------------------------------

    \10\ Any marketable orders or quotes that are executable against
a Market Maker's disseminated quotation that are received prior to
the time the Percentage-Based Threshold is engaged are automatically
executed at the disseminated price up to the Market Maker's
disseminated size, regardless of whether such an execution results
in executions in excess of the Market Maker's Specified Engagement
Size. In the event that the specialist's quote is removed by the
Percentage-Based Threshold and there are no other Market Makers
quoting in the particular option, the System will automatically
provide two-sided quotes that comply with the Exchange's Rules
concerning quote spread parameters on behalf of the specialist until
such time as the specialist revises the quotation. All quotations
generated by the Exchange on behalf of a specialist shall be
considered ``firm quotations'' and shall be the obligation of the
specialist.
---------------------------------------------------------------------------

    The System automatically resets the counting program and commences
a new specified time period when: (i) A previous counting period has
expired and a transaction occurs in any series in such option; or (ii)
the Market Maker refreshes his/her quotation, in a series for which an
order has been executed (thus commencing the specified time period)
prior to the expiration of the specified time period.
Proposed Rule
    The Exchange's amendments to the current rule text are described
below in greater detail. The Exchange proposes to amend the current
rule to first define a specialist, Streaming Quote Trader or Remote
Streaming Quote Trader as a Market Maker and replace the term ``Phlx XL
Participant'' with the term ``Market Maker.'' \11\ The proposed term
``Market Maker'' will be utilized throughout proposed Rule 1095(i).
---------------------------------------------------------------------------

    \11\ The Exchange automatically removes a Market Maker's quotes
in all series of an underlying security submitted through designated
Phlx protocols, as specified by the Exchange, during a specified
time period established by the Market Maker not to exceed 15
seconds, this time period is not being amended.
---------------------------------------------------------------------------

Counting Program
    Proposed Rule 1095(i) provides, as in the current rule, the
Percentage-Based Threshold determines: (i) The percentage that the
number of contracts executed in that series represents relative to the
Market Maker's disseminated\12\ size of each side in that series
(``Series Percentage''); and (ii) the sum of the Series Percentage in
the option issue (``Issue Percentage''). An offset occurs during the
Percentage-Based Specified Time Period.\13\ The Exchange proposes to
amend the rule text in proposed Rule 1095(i) to state that the
Percentage-Based Specified Time Period operates on a rolling basis
among all series in an option in that there may be multiple Percentage-
Based Specified Time Periods occurring simultaneously and such
Percentage-Based Specified Time periods may overlap. The Exchange
proposes to amend the rule text of proposed Rule 1095(i) to state that
the Percentage-

Based Specified Time Period commences for an option every time an
execution occurs in any series in such option and continues until the
System removes quotes as described in current Rule 1095(iv), which is
being amended to include the Percentage-Based Specified Time Period, or
the Percentage-Based Specified Time Period expires.
---------------------------------------------------------------------------

    \12\ The disseminated size is the original size quoted by the
Participant.
    \13\ A specified time period is established by the Market Maker
and may not to exceed 15 seconds. See proposed Rule 1095(i).
---------------------------------------------------------------------------

Rounding
    The Exchange proposes to add amended rule text to proposed Rule
1095(i) to state that if the Issue Percentage, rounded to the nearest
integer, equals or exceeds a percentage established by a Market Maker,
not less than 100% (``Specified Percentage''), the System automatically
remove a Market Maker's quotes in all series of the underlying security
submitted through designated Phlx protocols, as specified by the
Exchange, during the Percentage-Based Specified Time Period.\14\ The
current text of Rule 1093 states that the Percentage-Based Threshold is
engaged when the counting program determines that the Issue Percentage
equals or exceeds a percentage established by the Market Maker, not
less than 100%. The Exchange's proposal adds amended rule text to
proposed Rule 1095(i) to state, that if the Issue Percentage, rounded
to the nearest integer, equals or exceeds a percentage established by
the Market Maker, not less than 100% (``Specified Percentage''), the
System automatically removes a Market Maker's quotes in all series of
an underlying security submitted through designated Phlx protocols, as
specified by the Exchange, during the Percentage-Based Specified Time
Period.
---------------------------------------------------------------------------

    \14\ The System's count of the number of contracts executed is
based on trading interest resting on the Exchange book. The Volume-
Based Specified Time Period, in current Rule 1095(ii), designated by
the Market Maker must be the same time period as designated for
purposes of the Percentage-Based Threshold. The Exchange references
protocols more specifically in this rule. The Exchange counts SQF
quotes only in determining the number of contracts traded and
removed by the System. See note 8.
---------------------------------------------------------------------------

    Today, the System tracks and calculates the net impact of positions
in the same option issue during the Percentage-Based Specified Time
Period. The System tracks transactions, i.e., the sum of buy-side put
percentages, the sum of sell-side put percentages, the sum of buy-side
call percentages, and the sum of sell-side call percentages, and then
calculates the absolute value of the difference between the buy-side
puts and the sell-side puts plus the absolute value of the difference
between the buy-side calls and the sell-side calls. With this proposal,
when these values are rounded, if that number is greater than the
Specified Percentage, the Percentage-Based Threshold would be
triggered.
Reset
    The Exchange proposes to amend the manner in which the System
resets. The System will automatically removes [sic] quotes in all
option series of an underlying security when the Percentage-Based
Threshold is reached and then the Percentage-Based Specified Time
Period is reset. The System will send a Purge Notification Message \15\
to the Market Maker for all affected options when the threshold has
been reached. Pursuant to this proposal, when the System removes quotes
as a result of the Percentage-Based Threshold, the Market Maker will be
required to send a re-entry indicator to re-enter the System.\16\ If a
Market Maker requests the System to remove quotes in all options series
in an underlying issue, the System will automatically reset the
Percentage-Based Specified Time Period(s) and new Percentage-Based
Specified Time Period(s) will commence for the Percentage-Based
Threshold. With this proposal, when the System removes quotes as a
result of the Percentage-Based Threshold, the Market Maker will be
required to send a re-entry indicator to re-enter the System. The
proposed rule text adds specificity to the manner in which the Market
Maker re-enters the market after a trigger.
---------------------------------------------------------------------------

    \15\ A message entitled ``Purge Notification Message'' is
systemically sent to the Market Maker upon the removal of quotes due
to the Percentage-Based Threshold. See proposed Rule 1095(iii).
    \16\ The re-entry indicator must be marked as such to cause the
System to reset.
---------------------------------------------------------------------------

    Firm Quote
    The Exchange represents that its proposal operates consistently
with the firm quote obligations of a broker-dealer pursuant to Rule 602
of Regulation NMS.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \17\ in general, and furthers the objectives of Section
6(b)(5) of the Act \18\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by enhancing the risk protections available to Exchange
members. Each of the proposed amendments does not raise a novel
regulatory issue, rather these proposed amendments provide for
operational transparency.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposed rule text continues to offer Market Makers a risk
protection tool, in addition to other available risk tools,\19\ to
decrease risk and increase stability. The Exchange offers this risk
tool to Market Makers, in order to encourage them to provide as much
liquidity as possible and encourage market making generally, the
proposal removes impediments to and perfects the mechanism of a free
and open market and a national market system and protect investors and
the public interest. Further, it is important to note that any interest
that is executable against a Market Maker's quotes that are received
\20\ by the Exchange prior to the trigger of the Percentage-Based
Threshold, which is processed by the System, automatically executes at
the price up to the Market Maker's size. Further, the Purge
Notification Message is accepted by the System in the order of receipt
in the queue and is processed in that order so that interest that is
already accepted into the System is processed prior to the message.
---------------------------------------------------------------------------

    \19\ See note 5.
    \20\ The time of receipt for an order or quote is the time such
message is processed by the Exchange book.
---------------------------------------------------------------------------

Counting Program
    The Exchange's amendment to the operation of the counting program
to describe that it operates on rolling basis, with a time window after
each transaction, not singular and sequential time segments is
consistent with the Act because the purpose of the risk tool is to
provide Market Makers with the ability to monitor its transactions. The
proposed counting program provides a tracking method for Market Makers
related to the specified time period. The System captures information
to determine whether a removal of quotes is necessary. The proposed
function of this counting program will enable the Exchange to provide
the Market Maker with information relative to that Market Maker's
interest currently at risk in the market.
Rounding
    The Exchange's amendment which states that if the Issue Percentage,
rounded to the nearest integer, equals or exceeds the Specified
Percentage, the System automatically removes a Market Maker's quotes in
all series of an underlying security is consistent with the Act because
investors will be protected by providing Market Makers with a risk tool
which allows Market Makers to properly set their risk

protections at a level that they are able to meet their obligations and
also manage their risk. This specificity provides more detail so that
Market Makers may properly set their risk controls. Understanding the
manner in which the System will round is important in determining when
the System will trigger a risk control. Also, today, Phlx discusses
rounding in its Rulebook.\21\ Rounding to the nearest integer is not
novel.
---------------------------------------------------------------------------

    \21\ See Phlx Rule at 1014 regarding Market Maker allocations.
---------------------------------------------------------------------------

Reset
    The Exchange's proposal to amend the rule text related to resets
provides guidance to Market Makers as to the manner in which they may
re-enter the System after a removal of quotes. This amendment is
consistent with the Act because the Exchange desires to provide Market
Makers with access to the market at all times. Market Makers perform an
important function in the marketplace and the Exchange desires to
provide its market participants with access to the market. If the
Market Maker is removed from the market due to a trigger of the
Percentage-Based risk tool, the Exchange will permit re-entry to the
market provided the Market Maker sends a re-entry indicator to re-enter
the System. This is important because it informs the Exchange that the
Market Maker is ready to re-enter the market. Also, the Exchange
currently has risk mechanisms in place which provides guidance as to
the manner in which a Market Maker may re-enter the System after a
removal of quotes.\22\
---------------------------------------------------------------------------

    \22\ See Phlx Rule 1095(vi).
---------------------------------------------------------------------------

Quoting Obligations--Market Makers
    The Exchange further represents that the System operates
consistently with the firm quote obligations of a broker-dealer
pursuant to Rule 602 of Regulation NMS. Specifically, with respect to
Market Makers, their obligation to provide continuous two-sided quotes
on a daily basis is not diminished by the removal of such quotes by the
Percentage-Based Threshold. Market Makers are required to provide
continuous two-sided quotes on a daily basis.\23\ Market Makers that
utilize the Percentage-Based Threshold will not be relieved of the
obligation to provide continuous two-sided quotes on a daily basis, nor
will it prohibit the Exchange from taking disciplinary action against a
Market Maker for failing to meet the continuous quoting obligation each
trading day.
---------------------------------------------------------------------------

    \23\ See Rule 1014 titled ``Obligations and Restrictions
Applicable to Specialists and Registered Options Traders.''
---------------------------------------------------------------------------

    Finally, the Exchange believes that its proposal to provide Market
Makers the optionality to either select the Percentage-Based Threshold
or Volume-Based Threshold as one of their risk tools will also protect
investors and is consistent with the Act. Today, Market Makers are
required to utilize the Percentage-Based Threshold. With this proposal,
Market Makers will have the ability to select their mandatory risk as
between the Percentage-Based Threshold or Volume-Based Threshold.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Percentage-Based Threshold
is meant to protect Market Makers from inadvertent exposure to
excessive risk. Accordingly, this proposal will have no impact on
competition. Specifically, the proposal does not impose a burden on
intra-market or inter-market competition, rather, it provides Market
Makers with the opportunity to avail themselves of similar risk tools
which are currently available on other exchanges.\24\ Market Makers
quote across many series in an option creates the possibility of
``rapid fire'' executions that can create large, unintended principal
positions that expose Market Makers. The Percentage-Based Threshold
permits Market Makers to monitor risk arising from multiple executions
across multiple options series of a single underlying security.
---------------------------------------------------------------------------

    \24\ See Section 8 of the 19b-4.
---------------------------------------------------------------------------

    The Exchange is proposing this rule change to continue to permit
Market Makers to reduce their risk in the event the Market Maker is
suffering from a system issue or due to the occurrence of unusual or
unexpected market activity. Reducing such risk will enable Market
Makers to enter quotations without any fear of inadvertent exposure to
excessive risk, which in turn will benefit investors through increased
liquidity for the execution of their orders. Such increased liquidity
benefits investors because they receive better prices and because it
lowers volatility in the options market. Reducing risk by utilizing the
proposed risk protections enables Market Makers, specifically, to enter
quotations with larger size, which in turn will benefit investors
through increased liquidity for the execution of their orders. Such
increased liquidity benefits investors because they receive better
prices and because it lowers volatility in the options market.
Counting Program
    The Exchange's amendment to the operation of the counting program
to describe that it operates on rolling basis, with a time window after
each transaction, not singular and sequential time segments does not
create an undue burden on competition, rather, it provides the Market
Maker with clarity as to the manner in which the System counts quotes
and thereby provides Market Makers with an increased ability to monitor
transactions.
Rounding
    The Exchange's amendment to add that if the Issue Percentage,
rounded to the nearest integer, equals or exceeds the Specified
Percentage, the System automatically removes a Market Maker's quotes in
all series of an underlying security does not create an undue burden on
competition because this amendment also provides the Market Maker with
clarity as to the manner in which the System will remove quotes and
thereby provides Market Makers with an increased ability to monitor
transactions and set risk limits.
Reset
    The amendment to the rule text concerning resetting does not create
an undue burden on competition. The Exchange proposes to amend the
manner in which a Market Maker may re-enter the System after a removal
of quotes. This amendment provides information to Market Makers as to
the procedure to re-enter the System after a trigger. This information
is intended to provide Market Makers with access to the market.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \25\ and

subparagraph (f)(6) of Rule 19b-4 thereunder.\26\
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    \25\ 15 U.S.C. 78s(b)(3)(a)(iii).
    \26\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2015-83 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2015-83. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml).
    Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly.
    All submissions should refer to File Number SR-Phlx-2015-83 and
should be submitted on or before November 25, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-28020 Filed 11-3-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: April 28, 2008 (Volume 73, Number 82)]
[Notices]
[Page 22992]
[DOCID:fr28ap08-100]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notice of Availability of Draft Advisory Circulars, Other Policy
Documents and Proposed Technical Standard Orders

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: This is a recurring Notice of Availability, and request for
comments, on draft Advisory Circulars (ACs), other policy documents,
and proposed Technical Standard Orders (TSOs) currently offered by
Aviation Safety.

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SUMMARY: The FAA's Aviation Safety, an organization responsible for the
certification, production approval, and continued airworthiness of
aircraft, and certification of pilots, mechanics, and others in safety
related positions, publishes proposed non-regulatory documents that are
available for public comment on the Internet at http://www.faa.gov/
aircraft/draft--docs/.

DATES: We must receive comments on or before the due date for each
document as specified on the Web site.

ADDRESSES: Send comments on proposed documents to the FAA at the
address specified on the Web site for the document you comment on, to
the attention of the individual and office identified as point of
contact for the document.

FOR FURTHER INFORMATION CONTACT: The individual or FAA office
identified on the Web site for the specified document.

SUPPLEMENTARY INFORMATION: Final Advisory Circulars, other policy
documents, and Technical Standard Orders (TSOs), including final
documents published by the Aircraft Certification Service, are
available on FAA's Regulatory and Guidance Library (RGL) at http://
rgl.faa.gov/.

Comments Invited

    You will find draft ACs, other policy documents and proposed TSOs
on FAA ``Aviation Safety Draft Documents Open for Comment'' Web site at
http://www.faa.gov/aircraft/draft--docs/. The FAA invites comments on
these draft documents. When commenting on draft ACs, other policy
documents or proposed TSOs, you should identify the document by its
number. The Aviation Safety organization will consider all comments
received on or before the closing date before issuing a final Document.
For Internet retrieval assistance, contact the AIR Web Content Program
Manager at<PHONE_NUMBER>.
    To obtain a paper copy of the draft document or proposed TSO,
contact the individual or FAA office responsible for the document as
identified on the Web site.

Background

    We do not publish an individual Federal Register Notice for each
document we make available for public comment on the Web site. On the
Web site, you may subscribe to receive e-mail notification when new
draft documents are made available. This notice of availability and
request for comments on FAA Aviation Safety draft documents will appear
again in 180 days.

    Issued in Washington, DC on April 14, 2008.
Jennifer Arquilla,
Acting Manager, Planning and Program Management Division, Aircraft
Certification Service.
[FR Doc. E8-8583 Filed 4-25-08; 8:45 am]

BILLING CODE 4910-13-M


[Federal Register: May 17, 2010 (Volume 75, Number 94)]
[Rules and Regulations]
[Page 27427-27428]
[DOCID:fr17my10-12]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2009-0007; Airspace Docket No. 09-AAL-20]

Amendment of Jet Route J-120; Alaska

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action amends Jet Route J-120, in Alaska. The FAA is
taking this action in preparation of the eventual decommissioning of
the Barter Island (BTI) Non-directional Beacon (NDB) at the Village of
Kaktovik, Alaska. This action ensures the safe and efficient use of the
airspace within the National Airspace System (NAS).

DATES: Effective date 0901 UTC, July 29, 2010. The Director of the
Federal Register approves this incorporation by reference action under
1 CFR part 51, subject to the annual revision of FAA Order 7400.9 and
publication of conforming amendments.

FOR FURTHER INFORMATION CONTACT: Ken McElroy, Airspace and Rules Group,
Office of System Operations Airspace and AIM, Federal Aviation
Administration, 800 Independence Avenue, SW., Washington, DC 20591;
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

History

    On February 9, 2010, the FAA published in the Federal Register a
notice of proposed rulemaking to amend Jet Route J-120, in Alaska (75
FR 6320). The Barter Island NDB is scheduled for decommissioning, and
will make the northern end (from Fort Yukon VORTAC to BTI) of this
route unusable. Two Area Navigation T Routes (T-228, T-273) have been
added to the NAS to service the Barter Island area. Interested parties
were invited to participate in this rulemaking proceeding by submitting
written comments on the proposal. No comments were received. The
amendment is adopted as proposed.

The Rule

    This action amends Title 14 Code of Federal Regulations (14 CFR)
part 71 by amending Jet Route J-120, Alaska. The segment from the Fort
Yukon VORTAC to the BTI NDB will be removed due to decommissioning of
the BTI NDB.
    Jet routes are published in paragraph 2004 of FAA Order 7400.9T
signed August 27, 2009, and effective September 15, 2009, which is
incorporated by reference in 14 CFR 71.1. The Jet route listed in this

document will be published subsequently in the Order.
    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
Therefore, this regulation: (1) Is not a ``significant regulatory
action'' under Executive Order 12866; (2) is not a ``significant rule''
under Department of Transportation (DOT) Regulatory Policies and
Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant
preparation of a regulatory evaluation as the anticipated impact is so
minimal. Since this is a routine matter that will only affect air
traffic procedures and air navigation, it is certified that this rule,
when promulgated, will not have a significant economic impact on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of the
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it amends a Jet Route in Alaska.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1E, Environmental Impacts: Polices and Procedures,
paragraph 311a. This airspace action is not expected to cause any
potentially significant environmental impacts, and no extraordinary
circumstances exist that warrant preparation of an environmental
assessment.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

0
In consideration of the foregoing, the Federal Aviation Administration
amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.9T,
Airspace Designations and Reporting Points, signed August 27, 2009, and
effective September 15, 2009, is to be amended as follows:

Paragraph 2004--Jet Routes

* * * * *

J-120 [Revised]

    From Mt. Moffett, AK, NDB, via St. Paul Island, AK, NDB; Bethel,
AK; McGrath, AK; Fairbanks, AK; to Fort Yukon, AK.

    Issued in Washington, DC, on May 6, 2010.
Edith V. Parish,
Manager, Airspace and Rules Group.
[FR Doc. 2010-11495 Filed 5-14-10; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 87, Number 182 (Wednesday, September 21, 2022)]
[Notices]
[Pages 57710-57711]
[FR Doc No: 2022-20357]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[[Internal Agency Docket No. FEMA-4663-DR; Docket ID FEMA-2022-0001]

Kentucky; Amendment No. 9 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, Department of Homeland
Security (DHS).

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster for the
Commonwealth of Kentucky (FEMA-4663-DR), dated July 29, 2022, and
related determinations.

DATES: The amendment was issued September 1, 2022.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Notice is hereby given that the incident
period for this disaster is closed effective August 11, 2022.

The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households In
Presidentially

Declared Disaster Areas; 97.049, Presidentially Declared Disaster
Assistance--Disaster Housing Operations for Individuals and
Households; 97.050, Presidentially Declared Disaster Assistance to
Individuals and Households--Other Needs; 97.036, Disaster Grants--
Public Assistance (Presidentially Declared Disasters); 97.039,
Hazard Mitigation Grant.

Deanne Criswell,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2022-20357 Filed 9-20-22; 8:45 am]
BILLING CODE 9111-23-P