[Federal Register Volume 88, Number 48 (Monday, March 13, 2023)]
[Notices]
[Pages 15480-15484]
[FR Doc No: 2023-05035]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97055; File No. SR-NYSE-2023-12]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change To Adopt New Section 303A.14
of the NYSE Listed Company Manual To Establish Listing Standards
Related to Recovery of Erroneously Awarded Incentive-Based Executive
Compensation

March 7, 2023.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on February 22, 2023, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to adopt new Section 303A.14 of the NYSE
Listed Company Manual (``Manual'') to require issuers to develop and
implement a policy providing for the recovery of erroneously awarded
incentive-based compensation received by current or former executive
officers. The proposed rule change is available on the Exchange's
website at www.nyse.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 self-regulatory organization
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 those 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 parts of such statements.

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

1. Purpose
    On October 26, 2022, the Securities and Exchange Commission
(``SEC'') adopted a new rule and rule amendments \4\ to implement
Section 954 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 (``Dodd-Frank Act''),\5\ which added Section 10D
to the Act.\6\ In accordance with Section 10D of the Act, the final
rules direct the national securities exchanges and associations that
list securities to establish listing standards that require each issuer
to develop and implement a policy providing for the recovery, in the
event of a required accounting restatement, of incentive-based
compensation received by current or former executive officers where
that compensation is based on the erroneously reported financial
information. The listing standards must also require the disclosure of
the policy. Additionally, the final rules require a listed issuer to
file the policy as an

exhibit to its annual report and to include other disclosures in the
event a recovery analysis is triggered under the policy.
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    \4\ See Release Nos. 33-11126; 34-96159; IC-34732; File No. S7-
12-15; 87 FR 73076 (November 28, 2022).
    \5\ 2 Public Law 111-203, 124 Stat. 1900 (2010).
    \6\ 15 U.S.C. 78j-4.
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    Specifically, the rule amendments the SEC adopted pursuant to
Section 10D of the Act \7\ require specific disclosure of the listed
issuer's policy on recovery of incentive-based compensation and
information about actions taken pursuant to such recovery policy. Rule
10D-1 requires listing exchanges to require that listed issuers file
all disclosures with respect to their recovery policies in accordance
with the requirements of the federal securities laws, including the
disclosures required by the applicable SEC filings. The rule amendments
require listing exchanges to require each listed issuer to: (i) file
their written recovery policies as exhibits to their annual reports;
(ii) indicate by check boxes on their annual reports whether the
financial statements included in the filings reflect correction of an
error to previously issued financial statements and whether any of
those error corrections are restatements that required a recovery
analysis; and (iii) disclose any actions they have taken pursuant to
such recovery policies.
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    \7\ See footnote 5 supra.
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    Rule 10D-1 requires that the issuer will recover reasonably
promptly the amount of erroneously awarded incentive-based compensation
in the event that the issuer is required to prepare an accounting
restatement due to the material noncompliance of the issuer with any
financial reporting requirements under the securities laws. In the
adopting release for Rule 10D-1, the SEC states that the issuer and its
directors and officers must comply with this requirement in a manner
that is consistent with the exercise of their fiduciary duty to
safeguard the assets of the issuer (including the time value of any
potentially recoverable compensation). The issuer's obligation to
recover erroneously awarded incentive based compensation reasonably
promptly will be assessed on a holistic basis with respect to each such
accounting restatement prepared by the issuer. In evaluating whether an
issuer is recovering erroneously awarded incentive-based compensation
reasonably promptly, the Exchange will consider whether the issuer is
pursuing an appropriate balance of cost and speed in determining the
appropriate means to seek recovery, and whether the issuer is securing
recovery through means that are appropriate based on the particular
facts and circumstances of each executive officer that owes a
recoverable amount.
    Rule 10D-1 became effective on January 27, 2023. Exchanges are
required to file proposed listing standards no later than February 27,
2023, and the listing standards must be effective no later than
November 28, 2023. Issuers subject to such listing standards will be
required to adopt a recovery policy no later than 60 days following the
date on which the applicable listing standards become effective.
Proposed NYSE Rule
    The NYSE proposes to comply with Rule 10D-1 by adopting proposed
new Section 303A.14 of the Manual. Proposed Section 303A.14 is designed
to conform closely to the applicable language of Rule 10D-1. Proposed
Section 303A.14 would prohibit the initial or continued listing of any
security of an issuer that is not in compliance with the requirements
of any portion thereof.
Implementation
    Proposed Section 303A.14(b) would establish the timeframe within
which listed companies must comply with proposed 303A.14. Specifically:
     Each listed issuer must adopt the recovery policy required
by proposed Section 303A.14 (``Recovery Policy'') no later than 60 days
from the adoption of the proposed listing standard (``Effective
Date'').
     Each listed issuer must comply with its Recovery Policy
for all incentive-based compensation Received (as such term is defined
in proposed Section 303A.14(e) as set forth below) by executive
officers on or after the Effective Date that results from attainment of
a financial reporting measure based on or derived from financial
information for any fiscal period ending on or after the Effective
Date.
     Each listed issuer must provide the required disclosures
in the applicable SEC filings required on or after the Effective Date.
Requirements of Proposed Rule
    The requirements of proposed Section 303A.14 would be as follows:
     The issuer must adopt and comply with a written Recovery
Policy providing that the issuer will recover reasonably promptly the
amount of erroneously awarded incentive-based compensation in the event
that the issuer is required to prepare an accounting restatement due to
the material noncompliance of the issuer with any financial reporting
requirement under the securities laws, including any required
accounting restatement to correct an error in previously issued
financial statements that is material to the previously issued
financial statements, or that would result in a material misstatement
if the error were corrected in the current period or left uncorrected
in the current period.
     The issuer's Recovery Policy must apply to all incentive-
based compensation received by a person:
    [cir] After beginning service as an executive officer;
    [cir] Who served as an executive officer at any time during the
performance period for that incentive-based compensation;
    [cir] While the issuer has a class of securities listed on a
national securities exchange or a national securities association; and
    [cir] During the three completed fiscal years immediately preceding
the date that the issuer is required to prepare an accounting
restatement as described in paragraph (c)(1) of proposed Section
303A.14. In addition to these last three completed fiscal years, the
recovery policy must apply to any transition period (that results from
a change in the issuer's fiscal year) within or immediately following
those three completed fiscal years. However, a transition period
between the last day of the issuer's previous fiscal year end and the
first day of its new fiscal year that comprises a period of nine to 12
months would be deemed a completed fiscal year. An issuer's obligation
to recover erroneously awarded compensation is not dependent on if or
when the restated financial statements are filed.
     For purposes of determining the relevant recovery period,
the date that an issuer is required to prepare an accounting
restatement as described in paragraph (c)(1) of Section 303A.14 is the
earlier to occur of:
    [cir] The date the issuer's board of directors, a committee of the
board of directors, or the officer or officers of the issuer authorized
to take such action if board action is not required, concludes, or
reasonably should have concluded, that the issuer is required to
prepare an accounting restatement as described in paragraph (c)(1) of
proposed Section 303A.14; or
    [cir] The date a court, regulator, or other legally authorized body
directs the issuer to prepare an accounting restatement as described in
paragraph (c)(1) of proposed Section 303A.14.
     The amount of incentive-based compensation that must be
subject to the issuer's recovery policy (``erroneously awarded
compensation'') is the amount of incentive-based compensation received
that exceeds the

amount of incentive-based compensation that otherwise would have been
received had it been determined based on the restated amounts, and must
be computed without regard to any taxes paid. For incentive-based
compensation based on stock price or total shareholder return, where
the amount of erroneously awarded compensation is not subject to
mathematical recalculation directly from the information in an
accounting restatement:
    [cir] The amount must be based on a reasonable estimate of the
effect of the accounting restatement on the stock price or total
shareholder return upon which the incentive-based compensation was
received; and
    [cir] The issuer must maintain documentation of the determination
of that reasonable estimate and provide such documentation to the
Exchange.
     The issuer must recover erroneously awarded compensation
in compliance with its Recovery Policy except to the extent that the
conditions in one of the three bullets set forth below are met, and the
issuer's committee of independent directors responsible for executive
compensation decisions, or in the absence of such a committee,\8\ a
majority of the independent directors serving on the board, has made a
determination that recovery would be impracticable.
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    \8\ Section 303A.00 of the Manual provides an exemption from
compliance with the Exchange's compensation committee requirements
to listed companies that are foreign private issuers or controlled
companies.
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    [cir] The direct expense paid to a third party to assist in
enforcing the policy would exceed the amount to be recovered. Before
concluding that it would be impracticable to recover any amount of
erroneously awarded compensation based on expense of enforcement, the
issuer must make a reasonable attempt to recover such erroneously
awarded compensation, document such reasonable attempt(s) to recover,
and provide that documentation to the Exchange.
    [cir] Recovery would violate home country law where that law was
adopted prior to November 28, 2022. Before concluding that it would be
impracticable to recover any amount of erroneously awarded compensation
based on violation of home country law, the issuer must obtain an
opinion of home country counsel, acceptable to the Exchange, that
recovery would result in such a violation, and must provide such
opinion to the Exchange.
    [cir] Recovery would likely cause an otherwise tax-qualified
retirement plan, under which benefits are broadly available to
employees of the registrant, to fail to meet the requirements of 26
U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and regulations thereunder.
     The issuer is prohibited from indemnifying any executive
officer or former executive officer against the loss of erroneously
awarded compensation.
Disclosure in SEC Filings
    The issuer must file all disclosures with respect to such Recovery
Policy in accordance with the requirements of the Federal securities
laws, including the disclosure required by the applicable Commission
filings.
General Exemptions
    The requirements of proposed Section 303A.14 would not apply to the
listing of:
     A security futures product cleared by a clearing agency
that is registered pursuant to section 17A of the Act \9\ or that is
exempt from the registration requirements of section 17A(b)(7)(A); \10\
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    \9\ 15 U.S.C. 78q-1.
    \10\ 15 U.S.C. 78q-1(b)(7)(A).
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     A standardized option, as defined in 17 CFR 240.9b-
1(a)(4), issued by a clearing agency that is registered pursuant to
section 17A of the Act; \11\
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    \11\ 15 U.S.C. 78q-1.
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     Any security issued by a unit investment trust, as defined
in 15 U.S.C. 80a-4(2); (4) Any security issued by a management company,
as defined in 15 U.S.C. 80a-4(3), that is registered under section 8 of
the Investment Company Act of 1940,\12\ if such management company has
not awarded incentive-based compensation to any executive officer of
the company in any of the last three fiscal years, or in the case of a
company that has been listed for less than three fiscal years, since
the listing of the company.
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    \12\ 15 U.S.C. 80a-8.
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Definitions Under Proposed Section 303A.14
    Unless the context otherwise requires, the following definitions
apply for purposes of proposed Section 303.14:
    Executive Officer. An executive officer is the issuer's president,
principal financial officer, principal accounting officer (or if there
is no such accounting officer, the controller), any vice-president of
the issuer in charge of a principal business unit, division, or
function (such as sales, administration, or finance), any other officer
who performs a policy-making function, or any other person who performs
similar policy-making functions for the issuer. Executive officers of
the issuer's parent(s) or subsidiaries are deemed executive officers of
the issuer if they perform such policy making functions for the issuer.
In addition, when the issuer is a limited partnership, officers or
employees of the general partner(s) who perform policy-making functions
for the limited partnership are deemed officers of the limited
partnership. When the issuer is a trust, officers, or employees of the
trustee(s) who perform policy-making functions for the trust are deemed
officers of the trust. Policy-making function is not intended to
include policy-making functions that are not significant.
Identification of an executive officer for purposes of Section 303A.14
would include at a minimum executive officers identified pursuant to 17
CFR 229.401(b).
    Financial reporting measures. Financial reporting measures are
measures that are determined and presented in accordance with the
accounting principles used in preparing the issuer's financial
statements, and any measures that are derived wholly or in part from
such measures. Stock price and total shareholder return are also
financial reporting measures. A financial reporting measure need not be
presented within the financial statements or included in a filing with
the Commission.
    Incentive-based compensation. Incentive-based compensation is any
compensation that is granted, earned, or vested based wholly or in part
upon the attainment of a financial reporting measure.
    Received. Incentive-based compensation is deemed received in the
issuer's fiscal period during which the financial reporting measure
specified in the incentive-based compensation award is attained, even
if the payment or grant of the incentive-based compensation occurs
after the end of that period.
Delisting
    The Exchange proposes to adopt new Section 802.01F (``Noncompliance
with Section 303A.14 (Erroneously Awarded Compensation)'').
    Proposed Section 802.01F(a) would provide that in any case where
the Exchange determines that a listed issuer has not recovered
erroneously-awarded compensation as required by its Recovery Policy
reasonably promptly after such obligation is incurred, trading in all
listed securities of such listed issuer would be immediately suspended
and the Exchange would immediately commence delisting procedures with
respect to all such listed securities. Rule 10D-1 does not specify the
time by which the issuer must complete the recovery of excess
incentive-based

compensation, NYSE would however determine whether the steps an issuer
is taking constitute compliance with its compensation Recovery Policy.
A listed issuer would not be eligible to follow the procedures outlined
in Sections 802.02 and 802.03 with respect to such a delisting
determination, and any such listed issuer would be subject to delisting
procedures as set forth in Section 804.
    Proposed Section 802.01F(b) would deem a listed issuer to be below
standards in the event of any failure by such listed issuer to adopt
its required Recovery Policy by the Effective Date (a ``Late Recovery
Policy Adoption Delinquency''). The listed issuer would be required to
notify the Exchange in writing within five days of the Effective Date
if it fails to adopt its Recovery Policy by that date.
    Upon the occurrence of a Late Recovery Policy Adoption Delinquency,
the Exchange will promptly send written notification (the ``Late
Recovery Policy Adoption Delinquency Notification'') to a listed issuer
of the procedures set forth below. Within five days of the date of the
Late Recovery Policy Adoption Delinquency Notification, the listed
issuer will be required to (a) contact the Exchange to discuss the
status of the delayed Recovery Policy and (b) issue a press release
disclosing the occurrence of the Late Recovery Policy Adoption
Delinquency, the reason for the Late Recovery Policy Adoption
Delinquency and, if known, the anticipated date such Late Recovery
Policy Adoption Delinquency will be cured. If the listed issuer has not
issued the required press release within five days of the date of the
Late Recovery Policy Adoption Delinquency Notification, the Exchange
will issue a press release stating that the issuer has incurred a Late
Recovery Policy Adoption Delinquency.
    During the six-month period from the date of the Late Recovery
Policy Adoption Delinquency (the ``Initial Late Recovery Policy
Adoption Cure Period''), the Exchange will monitor the listed issuer
and the status of the delayed Recovery Policy, including through
contact with the company, until the Late Recovery Policy Adoption
Delinquency is cured. If the listed issuer fails to cure the Late
Recovery Policy Adoption Delinquency within the Initial Late Recovery
Policy Adoption Cure Period, the Exchange may, in the Exchange's sole
discretion, allow the company's securities to be traded for up to an
additional six-month period (the ``Additional Late Recovery Policy
Adoption Cure Period'') depending on the company's specific
circumstances. If the Exchange determines that an Additional Late
Recovery Policy Adoption Cure Period is not appropriate, suspension and
delisting procedures will commence in accordance with the procedures
set out in Section 804.00 of the Listed Company Manual. A listed issuer
is not eligible to follow the procedures outlined in Sections 802.02
and 802.03 with respect to these criteria. Notwithstanding the
foregoing, however, the Exchange may in its sole discretion decide (I)
not to afford a listed issuer any Initial Late Recovery Policy Adoption
Cure Period or Additional Late Recovery Policy Adoption Cure Period, as
the case may be, at all or (ii) at any time during the Initial Late
Recovery Policy Adoption Cure Period or Additional Late Recovery Policy
Adoption Cure Period, to truncate the Initial Cure Period or Additional
Cure Period, as the case may be, and immediately commence suspension
and delisting procedures if the listed issuer is subject to delisting
pursuant to any other provision of the Listed Company Manual, including
if the Exchange believes, in the Exchange's sole discretion, that
continued listing and trading of a company's securities on the Exchange
is inadvisable or unwarranted in accordance with Sections 802.01A,
802.01B, 802.01C or 802.01D of the Listed Company Manual. The Exchange
may also commence suspension and delisting procedures without affording
any cure period at all or at any time during the Initial Late Recovery
Policy Adoption Cure Period or Additional Late Recovery Policy Adoption
Cure Period if the Exchange believes, in the Exchange's sole
discretion, that it is advisable to do so on the basis of an analysis
of all relevant factors.
    In determining whether an Additional Late Recovery Policy Adoption
Cure Period after the expiration of the Initial Late Recovery Policy
Adoption Cure Period is appropriate, the Exchange will consider the
likelihood that the delayed Recovery Policy can be adopted during the
Additional Late Recovery Policy Adoption Cure Period. If the Exchange
determines that an Additional Late Recovery Policy Adoption Cure Period
is appropriate and the listed issuer fails to adopt a Recovery Policy
by the end of such Additional Late Recovery Policy Adoption Cure
Period, suspension and delisting procedures will commence immediately
in accordance with the procedures set out in Section 804.00. In no
event will the Exchange continue to trade a company's securities if
that listed issuer has failed to cure its Late Recovery Policy Adoption
Delinquency on the date that is twelve months after the commencement of
the company's Late Recovery Policy Adoption Delinquency.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\13\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \14\ in particular, in that it
is designed to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers. The Exchange believes that proposed new
Section 303A.14 is consistent with the protection of investors and the
public interest because it furthers the goal of ensuring the accuracy
of the financial disclosure of listed issuers. Specifically, the
Exchange believes the recovery requirement may provide executive
officers with an increased incentive to take steps to reduce the
likelihood of inadvertent misreporting and will reduce the financial
benefits to executive officers who choose to pursue impermissible
accounting methods, which we expect will further discourage such
behavior. The Exchange believes that these increased incentives may
improve the overall quality and reliability of financial reporting,
which further benefits investors. The new proposed Section 303A.14 is
also consistent with the requirements of Section 10D of the Act and
Rule 10D-1 thereunder, as it would establish a listing standard that is
consistent with the requirements of Rule 10D-1.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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    The Exchange proposes to adopt continued listing standards for
proposed Section 303A.14 in proposed Section 802.01F. Pursuant to
proposed Section 802.01F(a), a listed issuer would be subject to
immediate suspension and delisting without eligibility for cure periods
if the Exchange has determined that the listed issuer has failed to
recover reasonably promptly erroneously-awarded compensation as
requited by its Recovery Policy. Proposed Section 802.01F(b) would
provide compliance periods of up to 12 months for a listed issuer that
is delayed

in adopting its Recovery Policy. The compliance process in proposed
Section 802.01F(b) is closely modeled on the compliance process for
listed issuers delayed in submitting periodic reports to the SEC as set
forth in Section 802.01E. The Exchange believes that the compliance
procedures set forth in proposed Section 802.01F are appropriately
rigorous and are consistent with the public interest and the interests
of investors.

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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange notes that Rule
10D-1 under the Act requires all listing exchanges to adopt rules with
respect to the recovery of erroneously awarded compensation that are
substantively identically to proposed Section 303A.14.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be 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 protected]. Please include
File Number SR-NYSE-2023-12 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2023-12. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSE-2023-12, and should be submitted on
or before April 3, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-05035 Filed 3-10-23; 8:45 am]
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[Federal Register Volume 88, Number 152 (Wednesday, August 9, 2023)]
[Notices]
[Pages 53936-53937]
[FR Doc No: 2023-16991]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-495, OMB Control No. 3235-0553]

Proposed Collection; Comment Request; Extension: Rule 19b-7 and
Form 19b-7

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736.

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rule 19b-7 (17 CFR 240.19b-7)
and Form 19b-7, under the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.) (``Exchange Act''). The Commission plans to submit this
existing collection of information to the Office of Management and
Budget (``OMB'') for extension and approval.
    The Exchange Act provides a framework for self-regulation under
which various entities involved in the securities business, including
national securities exchanges and national securities associations
(collectively, self-regulatory organizations or ``SROs''), have primary
responsibility for regulating their members or participants. The role
of the Commission in this framework is primarily one of oversight; the
Exchange Act charges the Commission with supervising the SROs and
assuring that each complies with and advances the policies of the
Exchange Act.
    The Exchange Act was amended by the Commodity Futures Modernization
Act of 2000 (``CFMA''). Prior to the CFMA, federal law did not allow
the trading of futures on individual stocks or on narrow-based stock
indexes (collectively, ``security futures products''). The CFMA removed
this restriction and provided that trading in security futures products
would be regulated jointly by the Commission and the Commodity Futures
Trading Commission (``CFTC'').
    The Exchange Act requires all SROs to submit to the SEC any
proposals to amend, add, or delete any of their rules. Certain entities
(Security Futures Product Exchanges) would be notice-registered
national securities exchanges only because they trade security futures
products. Similarly, certain entities (Limited Purpose National
Securities Associations) would be limited-purpose national securities
associations only because their members trade security futures
products. The Exchange Act, as amended by the CFMA, established a
procedure for Security Futures Product Exchanges and Limited Purpose
National Securities Associations to provide notice of proposed rule
changes relating to certain matters.\1\ Rule 19b-7 and Form 19b-7
implemented this procedure. Effective April 28, 2008, the SEC amended
Rule 19b-7 and Form 19b-7 to require that Form 19b-7 be submitted
electronically.\2\
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    \1\ These matters are higher margin levels, fraud or
manipulation, recordkeeping, reporting, listing standards, or
decimal pricing for security futures products; sales practices for
security futures products for persons who effect transactions in
security futures products; or rules effectuating the obligation of
Security Futures Product Exchanges and Limited Purpose National
Securities Associations to enforce the securities laws. See 15
U.S.C. 78s(b)(7)(A).
    \2\ See Securities Exchange Act Release No. 57526 (March 19,
2008), 73 FR 16179 (March 27, 2008).
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    The collection of information is designed to provide the Commission
with the information necessary to determine, as required by the
Exchange Act, whether the proposed rule change is consistent with the
Exchange Act and the rules thereunder. The information is used to
determine if the proposed rule change should remain in effect or be
abrogated.

    The respondents to the collection of information are SROs. \3\ Two
respondents file an average total of approximately 2 responses per
year. Each response takes approximately 12.5 hours to complete and each
amendment takes approximately 3 hours to complete, which corresponds to
an estimated annual response burden of 25 hours ((2 rule change
proposals x 12.5 hours) plus (0 amendments \4\ x 3 hours)). The total
industry burden for filings is 50 hours.\5\ The average internal cost
of compliance per response to file a Form 19b-7 is $5,555.\6\ The total
internal cost of compliance for a respondent is $11,110 per year and
the total industry internal cost of compliance is $22,220 per year.\7\
---------------------------------------------------------------------------

    \3\ There are currently two Security Futures Product Exchanges
and one Limited Purpose National Securities Association, the
National Futures Association. One of the Security Futures Product
Exchanges, however, is conditionally exempted from filing proposed
rule changes using Form 19b-7. Therefore, there are currently two
respondents to Form 19b-7.
    \4\ SEC staff notes that even though no amendments were received
in the previous three years and that staff does not anticipate the
receipt of any amendments, calculation of amendments is a separate
step in the calculation of the PRA burden and it is possible that
amendments are filed in the future. Therefore, instead of removing
the calculation altogether, staff has shown the calculation as
anticipating zero amendments.
    \5\ This estimate is based on 2 respondents x 25 hours per year
per respondent which equals 50 burden hours for the entire industry.
    \6\ This estimate is based on 11.5 legal hours multiplied by an
average hourly rate of $462 plus 1 hour of paralegal work multiplied
by an average hourly rate of $242. The wage data is for an attorney
and paralegal respectively, from SIFMA's Management & Professional
Earnings in the Securities Industry 2013, modified by Commission
staff to account for inflation and an 1,800-hour work-year and then
multiplied by 5.35 to account for bonuses, firm size, employee
benefits, and overhead.
    \7\ This estimate is based on 2 responses x $5,555 per response
equals $11,110 per respondent per year and 2 respondents x $11,110
equals $22,220 or the total industry cost per year.
---------------------------------------------------------------------------

    In addition to filing its proposed rule changes and any amendments
thereto with the Commission, a respondent is also required to post each
of its proposals and any amendments thereto, on its website. This
process takes approximately 0.5 hours to complete per proposal and 0.5
hours per amendment. Thus, for approximately 2 responses and no
amendments,\8\ the total annual reporting burden on a respondent to
post these on its website is 1 hour and the total industry burden per
year is 2 hours.\9\ Further, a respondent is required to update its
rulebook, which it maintains on its website, to reflect the changes
that it makes in each proposal and any amendment thereto. Thus, for all
filings that were not withdrawn by a respondent (there were 0 withdrawn
filings in calendar years 2019-2021) or disapproved by the Commission
(there were 0 disapproved filings in calendar years 2019-2021), a
respondent was required to update its online rulebook to reflect the
effectiveness of 2 filings on average, each of which takes
approximately 4 hours to complete. Thus, the total annual reporting
burden for updating an online rulebook is 8 hours and the total
industry burden is 16 hours.\10\
---------------------------------------------------------------------------

    \8\ See supra note 4.
    \9\ This estimate is based on 2 proposals per year x 0.5 hours
per filing plus 0 amendments x 0.5 hours.
    \10\ This estimate is based on 2 proposals per year x 4 hours
which equals 8 hours. As noted, there were 0 withdrawn filings and 0
disapproved filings. There are 2 respondents x 8 hours per year
equals a total industry burden of 16 hours.
---------------------------------------------------------------------------

    The total industry burden per year for rule changes, updating and
posting rule changes and updating the online rulebook is estimated to
be 68 burden hours.\11\ As described above, the total internal cost of
compliance for a respondent is estimated to be $11,110 per year and the
total industry internal cost of compliance is estimated to be $22,220
per year.\12\ The net change in estimated total aggregate burden hours
decreased from 102 to 68 (reduction of 34 burden hours). Similarly,
with respect to the internal dollar cost burden of respondents, the
total industry internal dollar costs has decreased overall due to one
less respondent. The total industry internal cost of compliance
decreased from $30, 300 to $22,220.
---------------------------------------------------------------------------

    \11\ This estimate is the sum of the total industry (2
respondents) burden hours for rule filings (50 hours), updating and
posting rule changes (2 hours) and updating rules (16 hours).
    \12\ This estimate is based on 2 responses x $5,555 per response
equals $11,110 per respondent per year and 2 respondents x $11,110
equals $22,220 or the total industry cost per year.
---------------------------------------------------------------------------

    Compliance with Rule 19b-7 is mandatory. Information received in
response to Rule 19b-7 is not kept confidential; the information
collected is public information.
    Written comments are invited on: (a) whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimates of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted by
October 10, 2023.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to:
[email protected].

    Dated: August 3, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-16991 Filed 8-8-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 58 (Tuesday, March 26, 2013)]
[Rules and Regulations]
[Pages 18241-18244]
[FR Doc No: 2013-06646]

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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2012-0814; FRL-9792-2]

Approval and Promulgation of Implementation Plans; Region 4
States; Prong 3 of Section 110(a)(2)(D)(i) Infrastructure Requirement
for the 1997 and 2006 Fine Particulate Matter National Ambient Air
Quality Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: EPA is taking final action to conditionally approve
submissions from Kentucky, North Carolina and Tennessee for inclusion
into each State Implementation Plan (SIP). This action addresses the
Clean Air Act (CAA or Act) requirements pertaining to prevention of
significant deterioration (PSD) for the 1997 annual and 2006 24-hour
fine particulate matter (PM2.5) National Ambient Air Quality
Standards (NAAQS) infrastructure SIPs. The CAA requires that each state
adopt and submit a SIP for the implementation, maintenance, and
enforcement of each NAAQS promulgated by EPA, which is commonly
referred to as an ``infrastructure'' SIP. EPA is conditionally
approving the submissions for Kentucky, North Carolina and Tennessee
that relate to adequate provisions prohibiting emissions that interfere
with any other state's required measures to prevent significant
deterioration of its air quality. All other applicable infrastructure
requirements for the 1997 annual and 2006 24-hour PM2.5
NAAQS associated with these States have been addressed in separate
rulemakings.

DATES: This rule will be effective April 25, 2013.

ADDRESSES: EPA has established a docket for this action under Docket
Identification No. EPA-R04-OAR-2012-0814. All documents in the docket
are listed on the www.regulations.gov Web site. Although listed in the
index, some information is not publicly available, i.e., Confidential
Business Information or other information whose disclosure is
restricted by statute. Certain other material, such as copyrighted
material, is not placed on the Internet and will be publicly available
only in hard copy form. Publicly available docket materials are
available either electronically through www.regulations.gov or in hard
copy at the Regulatory Development Section, Air Planning Branch, Air,
Pesticides and Toxics Management Division, U.S. Environmental
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia
30303-8960. EPA requests that if at all possible, you contact the
person listed in the FOR FURTHER INFORMATION CONTACT section to
schedule your inspection. The Regional Office's official hours of
business are Monday through Friday, 8:30 a.m. to 4:30 p.m. excluding
Federal holidays.

FOR FURTHER INFORMATION CONTACT: Sean Lakeman, Regulatory Development
Section, Air Planning Branch, Air, Pesticides and Toxics Management
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth
Street SW., Atlanta, Georgia 30303-8960. The telephone number is (404)
562-9043. Mr. Lakeman can be reached via electronic mail at
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background

II. This Action
III. Final Action
IV. Statutory and Executive Order Reviews

I. Background

    Upon promulgation of a new or revised NAAQS, sections 110(a)(1) and
(2) of the CAA require states to address basic SIP requirements,
including emissions inventories, monitoring, and modeling to assure
attainment and maintenance for that new NAAQS. On July 18, 1997 (62 FR
38652), EPA promulgated a new annual PM2.5 NAAQS and on
October 17, 2006 (71 FR 61144), EPA promulgated a new 24-hour
PM2.5 NAAQS. On December 5, 2012, EPA proposed to
conditionally approve Kentucky, North Carolina and Tennessee's
submissions addressing section 110(a)(2)(D)(i)(II) related to PSD. A
summary of the background for today's final action is provided below.
See EPA's December 5, 2012, proposed rulemaking (77 FR 72291) for more
detail.
    Section 110(a) of the CAA requires states to submit SIPs to provide
for the implementation, maintenance, and enforcement of a new or
revised NAAQS within three years following the promulgation of such
NAAQS, or within such shorter period as EPA may prescribe. Section
110(a) imposes the obligation upon states to make a SIP submission to
EPA for a new or revised NAAQS, but the contents of that submission may
vary depending upon the facts and circumstances. The data and
analytical tools available at the time the state develops and submits
the SIP for a new or revised NAAQS affects the content of the
submission. The contents of such SIP submissions may also vary
depending upon what provisions the state's existing SIP already
contains. In the case of the 1997 annual and 2006 24-hour
PM2.5 NAAQS, states typically have met the basic program
elements required in section 110(a)(2) through earlier SIP submissions
in connection with previous PM NAAQS.
    More specifically, section 110(a)(1) provides the procedural and
timing requirements for SIPs. Section 110(a)(2) lists specific elements
that states must meet for ``infrastructure'' SIP requirements related
to a newly established or revised NAAQS. As already mentioned, these
requirements include SIP infrastructure elements such as modeling,
monitoring, and emissions inventories that are designed to assure
attainment and maintenance of the NAAQS. However, in this action, EPA
is only addressing element 110(a)(2)(D)(i)(II) as it relates to PSD
requirements.
    Section 110(a)(2)(D) has two components; 110(a)(2)(D)(i) and
110(a)(2)(D)(ii). Section 110(a)(2)(D)(i) includes four distinct
components, commonly referred to as ``prongs,'' that must be addressed
in infrastructure SIP submissions. The first two prongs, which are
codified in section 110(a)(2)(D)(i)(I), are provisions that prohibit
any source or other type of emissions activity in one state from
contributing significantly to nonattainment of the NAAQS in another
state (``prong 1''), and interfering with maintenance of the NAAQS in
another state (``prong 2''). The third and fourth prongs, which are
codified in section 110(a)(2)(D)(i)(II), are provisions that prohibit
emissions activity in one state interfering with measures required to
prevent significant deterioration of air quality in another state
(``prong 3''), or to protect visibility in another state (``prong 4'').
Section 110(a)(2)(D)(ii) requires SIPs to include provisions insuring
compliance with sections 115 and 126 of the Act, relating to interstate
and international pollution abatement.
    In previous actions, EPA has already addressed Kentucky, North
Carolina and Tennessee's SIP submissions related to sections
110(a)(2)(D)(i)(I) and 110(a)(2)(D)(ii) for the 1997 annual and 2006
24-hour PM2.5 NAAQS. Today's final conditional approval
relates only to the requirements of section 110(a)(2)(D)(i), prong 3,
which as previously described, requires that the SIP contain adequate
provisions prohibiting emissions that interfere with any other state's
required measures to prevent significant deterioration of its air
quality. More information on this requirement and EPA's rationale for
today's conditional approval of this requirement for purposes of the
1997 annual and 2006 24-hour PM2.5 NAAQS is provided below.

II. This Action

    On July 3, 2012, and July 10, 2012, respectively, Kentucky and
North Carolina submitted commitment letters to EPA requesting
conditional approval of outstanding PSD requirements related to the New
Source Review (NSR) PM2.5 Rule and the PM2.5 PSD
Increment--Significant Impact Levels (SILs)--Significant Monitoring
Concentration (SMC) Rule. EPA determined that these letters of
commitment met the requirements of section 110(k)(4) of the CAA, and
accordingly, EPA conditionally approved the NSR PM2.5 Rule
and PM2.5 PSD Increment-SILs-SMC Rule submission for
Kentucky on October 3, 2012, (77 FR 60307) and the submission for North
Carolina on October 16, 2012 (77 FR 63234). EPA is relying upon these
commitments to address the NSR PM2.5 Rule and the
PM2.5 PSD Increment-SILs-SMC Rule (only as it relates to
PM2.5 increments) as the basis for conditionally approving
Kentucky and North Carolina's infrastructure SIPs as they relate to
prong 3 of section 110(a)(2)(D)(i). If Kentucky fails to submit the
revisions described in its July 3, 2012, commitment letter by October
3, 2013, today's conditional approval of prong 3 for Kentucky will
automatically become a disapproval, and EPA will issue a finding of
disapproval. Likewise, if North Carolina fails to submit the revisions
described in its July 10, 2012, commitment letter by October 16, 2013,
today's conditional approval of prong 3 for North Carolina will
automatically become a disapproval, and EPA will issue a finding of
disapproval. EPA is not required to propose the finding of disapproval.
If either conditional approval is converted to a disapproval, that
final disapproval would trigger the Federal Implementation Plan (FIP)
requirement under section 110(c). However, if the State meets its
commitment within the applicable timeframe, the conditionally approved
submission will remain a part of the SIP until EPA takes final action
on the submittals.
    On October 4, 2012, Tennessee submitted a commitment letter to EPA
requesting conditional approval of specific enforceable measures
related to prong 3 of section 110(a)(2)(D)(i); specifically, the
applicable requirements of the PM2.5 PSD Increment-SILs-SMC
Rule (only as it relates to PM2.5 increments). Consistent
with section 110(k)(4) of the Act, EPA is relying upon this commitment
by Tennessee to address the PM2.5 PSD Increment-SILs-SMC
Rule (only as it relates to PM2.5 increments) as the basis
for conditionally approving Tennessee's infrastructure SIP as it
relates to prong 3 of section 110(a)(2)(D)(i). If Tennessee fails to
submit these revisions by March 6, 2014, today's conditional approval
will automatically become a disapproval on that date and EPA will issue
a finding of disapproval. EPA is not required to propose the finding of
disapproval. If the conditional approval is converted to a disapproval,
the final disapproval triggers the FIP requirement under section
110(c). However, if the State meets its commitment within the
applicable timeframe, the conditionally approved submission will remain
a part of the SIP until EPA takes final action approving or
disapproving the new submittal.
    EPA received one comment on its December 5, 2012, proposed
rulemaking

to conditionally approve Kentucky, North Carolina and Tennessee's SIP
submissions as meeting the section 110(a)(2)(D)(i)(II) requirements of
the CAA for the 1997 annual and 2006 24-hour PM2.5 NAAQS.
The Commenter wanted ``to congratulate EPA workers for trying to
decrease particles and increase the public's health.'' This comment
does not appear to be related to the issues presented in the proposed
rulemaking, and instead, appears related to a wholly separate topic--
promulgation of the PM NAAQS. EPA does not interpret this comment as
relevant to the topic of EPA's December 5, 2012, proposed action.
Instead, EPA interprets this comment as off-topic and outside of the
scope of today's final rulemaking.
    EPA notes that on January 4, 2013, the U.S. Court of Appeals, in
Natural Resources Defense Council v. EPA, No. 08-1250, 2013 WL 45653
(D.C. Cir., filed July 15, 2008) (consolidated with 09-1102, 11-1430),
issued a judgment that remanded EPA's 2007 and 2008 rules implementing
the 1997 PM2.5 NAAQS. The court ordered EPA to
``repromulgate these rules pursuant to Subpart 4 consistent with this
opinion.'' Id. at *8. Subpart 4 of Part D, Title 1 of the CAA
establishes additional provisions for particulate matter nonattainment
areas.
    The 2008 implementation rule (NSR PM2.5 Rule) addressed
by the court decision promulgated NSR requirements for implementation
of PM2.5 in both nonattainment areas (nonattainment NSR) and
attainment/unclassifiable areas (PSD). See 73 FR 28321 (May 16, 2008).
As the requirements of Subpart 4 only pertain to nonattainment areas,
EPA does not consider the portions of the 2008 rule that address
requirements for PM2.5 attainment and unclassifiable areas
to be affected by the court's opinion. Moreover, EPA does not
anticipate the need to revise any PSD requirements promulgated in the
2008 rule in order to comply with the court's decision. Accordingly,
EPA's actions for the Kentucky, North Carolina and Tennessee
infrastructure SIPs as related to element (D)(i)(II) with respect to
the PSD requirements promulgated by the 2008 implementation rule does
not conflict with the court's opinion.
    The court's decision with respect to the nonattainment NSR
requirements promulgated by the 2008 implementation rule also does not
affect EPA's action on the present infrastructure action. EPA
interprets the Act to exclude nonattainment area requirements,
including requirements associated with a nonattainment NSR program,
from infrastructure SIP submissions due 3 years after adoption or
revision of a NAAQS. Instead, these elements are typically referred to
as nonattainment SIP or attainment plan elements, which would be due by
the dates statutorily prescribed under subpart 2 through 5 under part
D, extending as far as 10 years following designations for some
elements.
    Once the above-described specific enforceable measures related to
the PM2.5 Rule and the PM2.5 PSD Increment-SILs-
SMC Rule (only as it relates to PM2.5 increments) have been
adopted into the respective SIPs of Kentucky, North Carolina and
Tennessee, the infrastructure SIPs for these states will adequately
address applicable requirements of section 110(a)(2)(D)(i), prong 3 for
the 1997 annual and 2006 24-hour PM2.5 NAAQS. EPA has
determined that Kentucky, North Carolina and Tennessee's submissions,
in conjunction with the above-described revisions, are consistent with
section 110 of the CAA.

III. Final Action

    As described above, EPA is conditionally approving the SIP
submissions for Kentucky, North Carolina and Tennessee as addressing
prong 3 of section 110(a)(2)(D)(i) of the CAA for both the 1997 and
2006 PM2.5 NAAQS.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting federal requirements and
does not impose additional requirements beyond those imposed by
Commonwealth law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country, and EPA
notes that it will not impose substantial direct costs on tribal
governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by May 28, 2013. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action may not be challenged later in proceedings to

enforce its requirements. See section 307(b)(2).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Particulate
Matter, Reporting and recordkeeping requirements, Volatile organic
compounds.

    Dated: March 11, 2013.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.

    40 CFR part 52 is amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart S--Kentucky

0
2. Section 52.919 is amended by adding paragraph (c) to read as
follows:

Sec.  52.919  Identification of plan-conditional approval.

* * * * *
    (c) Kentucky submitted a commitment letter to EPA on July 3, 2012,
requesting conditional approval of outstanding requirements related to
the NSR PM2.5 Rule. In this letter, the Commonwealth
provided a schedule as to how it will address outstanding requirements
related to the NSR PM2.5 Rule (including PM2.5
PSD Increment-SILs-SMC, as it relates to PM2.5 increments to
meet the prong 3 requirements of section 110(a)(2)(D)(i)). EPA
conditionally approved the NSR PM2.5 Rule submission for
Kentucky on October 3, 2012, (77 FR 60307). If the Commonwealth fails
to submit these revisions by October 3, 2013, the conditional approval
will automatically become a disapproval on that date and EPA will issue
a finding of disapproval.

Subpart II--North Carolina

0
3. Section 52.1773 is amended by adding paragraph (c) to read as
follows:

Sec.  52.1773  Conditional Approval.

* * * * *
    (c) North Carolina submitted a commitment letter to EPA on July 10,
2012, requesting conditional approval of outstanding requirements
related to the NSR PM2.5 Rule. In this letter, North
Carolina provided a schedule as to how it will address outstanding
requirements related to the NSR PM2.5 Rule (including
PM2.5 PSD Increment-SILs-SMC, as it relates to
PM2.5 increments to meet the prong 3 requirements of section
110(a)(2)(D)(i)). EPA conditionally approved the NSR PM2.5
Rule submission for North Carolina on October 16, 2012, (77 FR 63234).
If the North Carolina fails to submit these revisions by October 16,
2013, the conditional approval will automatically become a disapproval
on that date and EPA will issue a finding of disapproval.

Subpart RR--Tennessee

0
4. Section 52.2219 is amended by revising paragraph (e) to read as
follows:

Sec.  52.2219  Conditional Approval.

* * * * *
    (e) Conditional Approval. On October 4, 2012, Tennessee submitted a
commitment letter to EPA requesting conditional approval of specific
enforceable measures related to prong 3 of section 110(a)(2)(D)(i);
specifically, the PM2.5 PSD Increment-SILs-SMC Rule (only as
it relates to PM2.5 increments) for the 1997 annual and 2006
24-hour fine particulate matter (PM2.5) national ambient air
quality standards. EPA is conditionally approving Tennessee's
commitment to address outstanding requirements promulgated in the
PM2.5 PSD Increment-SILs-SMC Rule (only as it relates to
PM2.5 increments). If Tennessee fails to submit these
revisions by March 6, 2014, the conditional approval will automatically
become a disapproval on that date and EPA will issue a finding of
disapproval.

[FR Doc. 2013-06646 Filed 3-25-13; 8:45 am]
BILLING CODE 6560-50-P


United States Environmental Protection Agency
Washington, DC 20460
Annual Reporting Form for the Pesticide General Permit (PGP) for Discharges from the Application of Pesticides
Form Approved
OMB No.
2040-0004
This form is for any Operator who is a Decision-maker required to submit an NOI. The annual report must be submitted no later than February 15 of the following year for all pesticide activities covered under the permit occurring during the previous calendar year as detailed in Part 7 of the permit.
Approval to Use Paper Annual Report Form (Electronic Submission Waiver)
Has the EPA Regional Office granted you a waiver from electronic reporting*?	  YES	  NO
If yes, check which waiver you have been granted, the name of the EPA Regional Office staff person who granted the waiver, and the date of approval:
Waiver granted:
  The Decision-maker is physically located in a geographical area (i.e., ZIP code or census tract) that is identified as under-served for broadband Internet access in the most recent report from the Federal Communications Commission.
  The Decision-maker has limitations regarding available computer access or computer capability.
Name of EPA staff person who granted the waiver:

Date approval obtained:

                                       /

                                       /

*Note: You are required to obtain approval from the applicable EPA Regional Office prior to using this paper annual reporting form. If you have not obtained a waiver, you must file this form electronically using EPA's NPDES eReporting Tool (NeT) at https://www.epa.gov/npdes/pesticide-permitting.
A. General Information - For pesticides activities in calendar year:

1. NPDES Permit Tracking Number:

2. Operator Name:

3. Operator Contact Information:
a. Street:

b. City:

c. State:

d. ZIP Code:

                                       -

e. Telephone:

                                       -

                                       -

                                      Ext

 f. Fax:

                                       -

                                       -

4. Contact Information:
a. Contact Name:

b. Title:

c. E-mail:

B. Adverse Incidents and Corrective Actions
1. Was an adverse incident observed and/or corrective actions taken for any Pest Management Area for which you have coverage under the permit?
  a.  No adverse incidents were observed or no corrective action was taken. (Proceed to Section C)
  b.  Yes, an adverse incident was observed and/or a corrective action was taken. (Complete questions 2-6 for each Pest Management Area in which adverse incidents were observed or corrective actions were taken. Copy this section for additional Pest Management Areas).
Pest Management Area #____ of ##____
 2. Pest Management Area Name:
3. If applicable, provide the date for any adverse incidents as a result of those treatment(s), as described in Part 6.4 of the permit (use additional pages, if needed):
  Date of adverse incident observation:

                                       /

                                       /

 4. Date and time the Operator contacted EPA to notify the Agency of the adverse incident, who the Operator spoke with at EPA, and any instructions received from EPA.

                                       /

                                       /

a.	Date:
  c.	Who the Operator spoke with at EPA:
b.	Time:
  d. 	Instructions received from EPA:

5. Date of submission of Thirty (30)-Day Adverse Incident Written Report:

                                       /

                                       /

 6. Describe any corrective action(s), including spill responses, resulting from pesticide application activities and the rationale for such action(s), subsequent to those steps described in the Thirty (30)-Day Adverse Incident Written Report:

C. Pest Management Area(s) (use additional pages for each Pest Management Area)

Pest Management Area	#

                                     of ##
1. Have any discharges from pest control activities occurred in this calendar year?
  a.  No discharge from pest control activities this calendar year. Note: Checking this box completes Section C if you had no discharge from pest control activities this year. Proceed to section D.
b.  Yes. Proceed to question 2.
 For each treatment area (use additional pages for each treatment area):
2. Indicate the pesticide use pattern for the treatment area:
  a.  Mosquito and Other Flying Insect Pest Control	b.  Weed and Algae Pest Control	c.  Animal Pest Control	d.  Forest Canopy Pest Control
3. Description of treatment area:
 a. Provide a map or description of the treatment area within this Pest Management Area, including location description
  	 ______________________________________________________________________________________________________________________________
  b.	Size of treatment area (in acres or linear feet): _____ acres or ______ linear feet.
  c.	Name or location of any waters of the United States to which discharges occurred:

  d.	Target Pest(s):
e. 	Did any pesticide application activities result in a discharge to waters of the United States containing NMFS Listed Resources of Concern as defined in
Appendix A of the permit?
	 Yes     No     If yes, approximate date(s) of any discharges:
4. Name and contact information of pesticide Applicator(s) (or check here if same as provided in Section A):
Company Name:

Street:

City:

State:

Zip Code:

                                       -

Contact Name:

Title:

Phone:

                                       -

                                       -

                                      Ext

E-mail:

5. Was this pest control activity addressed in your Pesticide Discharge Monitoring Plan (PDMP) before pesticide application:
       Yes	 No	 Not Applicable

 6. Enter the total amount of each pesticide product applied for the reporting year by the product name, EPA Pesticide Registration Number(s) and by application method.
Circle if quantity indicated is in lbs or gallons, or briquettes, if applicable. Use additional pages if necessary.
Product Name
EPA Pesticide Registration Number :

Product Name
EPA Pesticide Registration Number :

Application method:

   Quantity Applied (lbs or gallons of product):
Application method:

  Quantity Applied (lbs or gallons of product):
  a.  Aerially by fixed-wing
  b.  Aerially by rotary aircraft
  c.  Land-based sprayer (includes backpack, land vehicle mounted sprayers, high pressure canopy sprayer)
  d.  Aquatic vehicle mounted sprayer
  e.  Direct mixture (includes metering, subsurface applications)
  f.   Chemigation
  g.  Other (specify):
______ lbs or gallons
______ lbs or gallons
______ lbs or gallons

______ lbs or gallons
______ lbs or gallons

______ lbs or gallons
______ lbs or gallons or briquettes
  a.  Aerially by fixed-wing
  b.  Aerially by rotary aircraft
  c.  Land-based sprayer (includes backpack, land vehicle mounted sprayers, high pressure canopy sprayer)
  d.  Aquatic vehicle mounted sprayer
  e.  Direct mixture (includes metering, subsurface applications)
  f.   Chemigation
  g.  Other (specify):
______ lbs or gallons
______ lbs or gallons
______ lbs or gallons

______ lbs or gallons
______ lbs or gallons

______ lbs or gallons
______ lbs or gallons or briquettes

D. Certification
I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gathered and evaluated the information submitted. On the basis of my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations.
Printed Name:

Title:

E-Mail:

 Signature/Responsible Official:

                                                                          Date:

                                       /

                                       /

Annual Report Preparer (Complete if the Annual Report was prepared by someone other than the certifier)
Preparer Name:

Organization:

Phone:

                                       -

                                       -

                                      Ext

                                                                          Date:

                                       /

                                       /

E-Mail:

Instructions for Completing the Annual Reporting Form for the Pesticide General Permit (PGP) for
                 Discharges from the Application of Pesticides

Who Must File an Annual Report with EPA?
Any Operator who is a Decision-maker required to submit a Notice of Intent (NOI) and is a large entity as defined in Appendix A of the permit and any Decision-maker required to submit an NOI solely because of their application results in a discharge to waters of the United States containing NMFS Listed Resources of Concern, must submit an annual report to EPA each calendar year. Once required to submit an annual report for one year, an annual report must be filed each subsequent year of this permit whether or not you have discharges from the application of pesticides in accordance with Section 7.6 of the permit.
When to File an Annual Report?
Any Operator required to file an annual report must submit the annual report no later than February 15 of the following year for all pesticide activities covered under this permit occurring during the previous calendar year. If the Operator is required to submit an NOI based on an annual treatment area threshold, the annual report must include information for the calendar year, with the first annual report required to include activities for the portion of the calendar year after the point at which the Operator exceeded the annual treatment area threshold. If the Operator first exceeds an annual treatment area threshold after December 1 in a calendar year, an annual report is not required for that first partial year but annual reports are required thereafter, with the first annual report submitted also including information from the first partial year.
When Operator terminates permit coverage, as specified in Part 1.2.5 of the permit, an annual report must be submitted for the portion of the year up through the date of termination. The annual report is due no later than February 15 of the following year.
Where to File the Annual Report?
The Operator must prepare and submit the Annual Report using EPA's NPDES eReporting Tool (NeT) available on EPA's website (https://www.epa.gov/npdes/pesticide-permitting) unless the Operator is granted a waiver from the requirement to use NeT for submitting the Annual Report. See Part 8 of the PGP for EPA Regional contacts. The Electronic Submission Waiver is at the top of this form.
If you are granted a waiver from using NeT; you must send the Annual Report to one of the addresses listed below.
  Via United States Mail:
  United States Environmental Protection Agency
Office of Water, Water Permits Division
Mail Code 4203M, ATTN: NPDES Pesticides
1200 Pennsylvania Avenue, NW
Washington, DC 20460
  Via overnight/express delivery:
  United States Environmental Protection Agency
Office of Water, Water Permits Division
EPA East Building - Room 7420, ATTN: NPDES Pesticides
1201 Constitution Avenue, NW
Washington, DC 20004
Phone:<PHONE_NUMBER>
If you have questions, contact EPA's Pesticides Notice Processing Center toll free at<PHONE_NUMBER>.
If you file a paper Annual Report, please submit the original with a signature in ink. Do not send copies. Also, faxed copies will not be accepted.
Completing the Annual Report Form
To complete this form, type or print in uppercase letters in the appropriate areas only. Make sure you complete all questions. Make sure you make a photocopy for your records before you send the completed original form to the address above. You may also use this paper form as a checklist for the information you will need when filing an Annual Report electronically via EPA's NPDES eReporting Tool (NeT).
Approval to Use Paper Annual Reporting Form: You must indicate whether you have been granted a waiver from electronic reporting from the EPA Regional Office. Note that you are not authorized to use this paper Annual Reporting form unless the EPA Regional Office has approved its use. Where you have obtained approval to use this form, indicate the waiver that you have been granted, the name of the EPA staff person who granted the waiver, and the date that approval was provided.
Section A. General Information
1.	Enter your permit tracking number that you received in your NOI confirmation letter or e-mail from EPA's Pesticide Notice Processing Center. You can find the tracking number assigned to your NOI by using EPA's NPDES eReporting Tool (NeT)
2.	Provide the legal name of the person, firm, public organization or any other public entity who is the Decision-maker for the pesticides applications described in this report. A Decision-maker is an Operator who has control over the decision to perform pesticide applications including the ability to modify those decisions that result in a discharge to waters of the United States.
3.	Enter the address, telephone number, and fax number of the Operator.
4.	Provide the full legal name, title and e-mail address of a contact person for the Annual Report.
Section B. Adverse Incidents and Corrective Actions
1.  Identify if an adverse incident was observed and corrective actions were taken for any Pest Management Area for which you have coverage under the permit. If no, proceed to Section C. If yes, complete Section B for each Pest Management Area for which an adverse incident was observed or corrective action was taken.
2.	Enter the name of the Pest Management Area.
3.	If applicable, enter the date of any adverse incidents resulting from the treatments, as described in Part 6.4 of the permit. Use additional pages if there are multiple dates to be described.
4.	Enter the date and time the Operator contacted EPA to notify the Agency of the adverse incident, pursuant to Part <IP_ADDRESS> of the permit.
   a. Indicate the date of the contact.
   b. Indicate the time of the contact.
   c. Indicate who the Operator spoke with at EPA.
   d. Indicate any instructions received from EPA.
5. Enter the date that the Thirty (30)-Day Adverse Incident Written Report was submitted, pursuant to Part 6.4.2 of the permit.
6.	Provide a description of any corrective action(s) resulting from pesticide application activities and the rationale for the action(s), performed subsequently to or in addition to any actions described in the Thirty (30)-Day Adverse Incident Written Report.
Section C. Pest Management Area(s)
Section C should be completed for each Pest Management Area. Indicate which Pest Management Area out of the total number of Pest Management Areas for which the section is being completed (i.e., Pest Management Area 1 of 10 total Pest Management Areas).
1.	Identify if you had a discharge from pest control activities this calendar year. Check yes if you had discharge from pest control activities this calendar year. Check no if you had no discharge from pest control activities this calendar year.  Note: Checking the no box completes Section C
2.	Select the box for the type of pesticide use pattern for the treatment area (use additional pages for each treatment area).
3.	Provide a description of the treatment area.
   a. Provide a map or description of the treatment area, including a description of the location.
   b. Provide the size of the treatment area in acres or linear feet.
   c. Provide the name or location of any waters of the United States to which discharges occur.
   d. Provide a description of the target pest(s).
   e. Indicate whether any pesticide application activities resulted in a discharge to waters of the United States containing NMFS Listed Resources of Concern, as defined in Appendix A of the permit. If yes, provide approximate date(s) of the discharge. Additional information on NMFS Listed Resources of Concern is available on EPA's website at https://www.epa.gov/npdes/pesticide-permitting.

4.	Provide the company name(s), mailing address, a contact person, contact person's title, telephone number and e-mail address of the pesticide Applicator(s). If the information is the same as Section A, check the appropriate box and proceed to the next question.
5.	Indicate if the pest control activity was addressed in your PDMP before pesticide application.
6.	Enter the total amount of each pesticide product applied for the reporting year by the product name, EPA Pesticide Registration Number(s) and by application method. Circle whether the quantity applied is in pounds or gallons or briquettes, if applicable. Copy and attach additional pages, as necessary.
Section D. Certification
Enter the certifier's printed name and title. Sign and date the form. For more information about the certification statement and signature, see 40 CFR 122.41.(k). (CAUTION: An unsigned or undated form will not be accepted.) Federal statutes provide for severe penalties for submitting false information. Federal regulations require this application to be signed as follows:
For a corporation: by a responsible corporate officer, means:
(i)	president, secretary, treasurer, or vice-president of the corporation in charge of a principal business function, or any other person who performs similar policy or decision making functions for the corporation, or
(ii)	the manager of one or more manufacturing, production, or operating facilities, provided the manager is authorized to make management decisions which govern the operation of the regulated activity including having the explicit or implicit duty of making major capital investment recommendations, and initiating and directing other comprehensive measures to assure long term environmental compliance with environmental laws and regulations; the manager can ensure that the necessary systems are established or actions taken to gather complete and accurate information for permit application requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures;
For a partnership or sole proprietorship: by a general partner or the proprietor; or
For a municipal, state, Federal, or other public facility: by either a principal executive or ranking elected official.
If the Annual Report was prepared by someone other than the certifier (for example, if the Annual Report was prepared by the PDMP contact or a consultant for the certifier's signature), include the name, organization, phone number and e-mail address of the Annual Report preparer.
Paperwork Reduction Act Notice
The public reporting and recordkeeping burden for this collection of information is estimated to average 8 hours or 480 minutes per response.
Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to the Director, Collection Strategies Division, U.S. Environmental Protection Agency (2822T), 1200 Pennsylvania Ave., NW, Washington, D.C. 20460. Include the OMB control number in any correspondence. Do not send the completed Annual Report Form to this address.


[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Page 72422]
[FR Doc No: 2011-30149]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2011-D-0784]

Draft Guidance for Industry on Evaluating the Effectiveness of
Anticoccidial Drugs in Food-Producing Animals; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing the
availability of draft guidance for industry 217 entitled
``Evaluating the Effectiveness of Anticoccidial Drugs in Food-Producing
Animals.''
    The draft guidance, when finalized, is intended to provide guidance
to industry for designing and conducting clinical effectiveness
studies, and describes criteria that the Center for Veterinary Medicine
(CVM) thinks are the most appropriate for the evaluation of the
effectiveness of anticoccidial drugs intended for use in poultry and
other food-producing animals. The draft guidance also suggests times
during the evaluation of effectiveness when sponsors may wish to
consult with CVM.

DATES: Although you can comment on any guidance at any time (see 21 CFR
10.115(g)(5)), to ensure that the Agency considers your comment on this
draft guidance before it begins work on the final version of the
guidance, submit either electronic or written comments on the draft
guidance by January 23, 2012.

ADDRESSES: Submit written requests for single copies of the guidance to
the Communications Staff (HFV-12), Center for Veterinary Medicine, Food
and Drug Administration, 7519 Standish Pl., Rockville, MD 20855. Send
one self-addressed adhesive label to assist that office in processing
your requests. See the SUPPLEMENTARY INFORMATION section for electronic
access to the draft guidance document.
    Submit electronic comments on the draft guidance to http://www.regulations.gov. Submit written comments to the Division of Dockets
Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: Emily R. Smith, Center for Veterinary
Medicine (HFV-135), Food and Drug Administration, 7500 Standish Pl.,
Rockville, MD 20855,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of draft guidance for industry
217 entitled ``Evaluating the Effectiveness of Anticoccidial
Drugs In Food-Producing Animals.'' The draft guidance discusses general
considerations for the evaluation of the efficacy of anticoccidial
drugs in poultry, minor species and food-producing mammals. Draft
guidance for industry 217 supersedes the CVM draft guidance
for industry 40, entitled ``Draft Guideline for the Evaluation
of The Efficacy of Anticoccidial Drugs and Anticoccidial Drug
Combinations in Poultry,'' dated April 1992.
    This draft guidance discusses general considerations regarding
protocol development, study conduct, animal welfare, substantial
evidence of effectiveness, feed preparation, drug assays, and
combination approvals.
    This draft guidance discusses CVM considerations for studies used
to substantiate effectiveness of anticoccidial drugs in poultry,
including battery studies and commercial field studies. In addition,
the draft GFI discusses CVM considerations for studies used to
substantiate effectiveness of anticoccidial drugs in food-producing
mammals, in minor species, and for minor uses.

II. Significance of Guidance

    This level 1 draft guidance is being issued consistent with FDA's
good guidance practices regulation (21 CFR 10.115). The draft guidance,
when finalized, will represent the Agency's current thinking on
evaluating the effectiveness of anticoccidial drugs in food-producing
animals. It does not create or confer any rights for or on any person
and does not operate to bind FDA or the public. An alternative approach
may be used if such approach satisfies the requirements of the
applicable statutes and regulations.

III. Paperwork Reduction Act of 1995

    This draft guidance refers to previously approved collections of
information found in FDA regulations. These collections of information
are subject to review by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The
collections of information in this guidance have been approved under
OMB control nos. 0910-0032 and 0910-0117.

IV. Comments

    Interested persons may submit to the Division of Dockets Management
(see ADDRESSES) either electronic or written comments regarding this
document. It is only necessary to send one set of comments. It is no
longer necessary to send two copies of mailed comments. Identify
comments with the docket number found in brackets in the heading of
this document. Received comments may be seen in the Division of Dockets
Management between 9 a.m. and 4 p.m., Monday through Friday.

V. Electronic Access

    Persons with access to the Internet may obtain the draft guidance
at either http://www.fda.gov/AnimalVeterinary/GuidanceComplianceEnforcement/GuidanceforIndustry/default.htm or http://www.regulations.gov.

    Dated: November 17, 2011.
Leslie Kux,
Acting Assistant Commissioner for Policy.
[FR Doc. 2011-30149 Filed 11-22-11; 8:45 am]
BILLING CODE 4160-01-P