UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

           WASHINGTON, D.C. 20460

				NOV 13 2007

OFFICE OF PREVENTION,
PESTICIDES AND TOXIC
                   SUBSTANCES

MEMORANDUM

SUBJECT:	Review of Application to extend the existing temporary
exemption from the requirement of tolerance for Vip3Aa20 Bacillus
thuringiensis (Bt) insect control protein [40 CFR Part 174.528] and to
amend the Experimental Use Permit [EPA Reg. No. 67979-EUP-6] for
plant-incorporated protectants in corn events  MIR162, Bt11, MIR604, and
combined insecticidal trait corn hybrids Bt11 x MIR162, MIR162 x MIR604,
and Bt11 x MIR162 x MIR604, produced by conventional breeding; submitted
by Syngenta Seeds, Inc. – Field Crops- NAFTA.

TO:		Mike Mendelsohn, Regulatory Action Leader

		Microbial Pesticides Branch, Biopesticides and

		Pollution Prevention Division (7511P)

FROM:	Annabel Waggoner, Environmental Protection Specialist	[signed]

		Microbial Pesticides Branch, Biopesticides and

		Pollution Prevention Division (7511P)

PEER		John L. Kough, Ph.D., Senior Scientist				[signed]

REVIEW:	Microbial Pesticides Branch, Biopesticides and

		Pollution Prevention Division (7511P); and

		Zigfridas Vaituzis, Ph.D., Senior Scientist			[signed]

		Microbial Pesticides Branch, Biopesticides and

		Pollution Prevention Division (7511P)

ACTION REQUESTED: To review Syngenta Seeds, Inc.’s application to
amend the Experimental Use Permit [EPA Reg. No. 67979-EUP-6] and extend
the existing temporary exemption from the requirement of tolerance [40
CFR Part 174.528] for Vip3Aa20 Bt insect control protein as expressed in
Event MIR162 corn and all corresponding events used in field testing in
conjunction with the EUP.

CONCLUSION:    The Agency previously concluded there is a reasonable
certainty of no harm to humans from the aggregate exposure to the
residues of theVip3Aa20, including all anticipated dietary exposures and
all other exposures for which there is reliable information.  It was
also concluded that it is unlikely that direct or indirect harmful
effects to non-target organisms (NTOs), including Federally listed
endangered species, would result from exposure to the insecticidal
protein Vip3Aa20 during the proposed field trials as outlined in the EUP
for MIR162 corn.  For the purposes of the EUP, the Agency continues to
support its original conclusions.  Since there are no new data concerns
of Vip3Aa20 since the granting of the EUP, these data can support the
extension of the EUP [EPA Reg. No. 67979-EUP-6] and the temporary
tolerance exemption [40 CFR 174.528] for the period of March 2008
through October 31, 2009.

DATA REVIEW RECORD:

Active Ingredient:		Vip3Aa20 Bacillus thuringiensis insecticidal protein
and the genetic material necessary for its production (via pNOV1300) in
transgenic corn plants derived from transformation Event MIR162

Product Name(s):		Event MIR162 corn and combined insecticidal trait corn
hybrids: Bt11 x MIR162, MIR162 x MIR604, and Bt11 x MIR162 x MIR604

Company Name:			Syngenta Seeds, Inc. – Field Corps- NAFTA

ID No:				67979

Chemical Number:	 	006599

Decision Number:		379040

DP Barcode:			340414

MRID No:			Not-Assigned- Administrative Materials:  Application to amend
Experimental Use Permit [EPA Reg. No. 67979-EUP-6] and Petition to
extend the temporary tolerance exemption from the requirement of
tolerance (40 CFR 174.528, Petition No. 7F212).

BACKGROUND:

Vip3A is a vegetative insecticidal protein (Vip) from Bacillus
thuringiensis (Bt), a gram positive bacterium commonly found in soil.
Vip proteins are produced during the vegetative stage of bacterial
growth and are active against the following lepidopteran pests of corn:
Spodoptera frugiperda (fall armyworm), Pseudaletia unipunctata
(armyworm), Spodoptera exigua (beet armyworm), Helicoverpa zea (corn
earworm / cotton bollworm), Agrotis ipsilon (black cutworm), and
Striacosta albicosta (western bean cutworm).

The native Vip protein, Vip3Aa1, was isolated from Bt strain AB88 and
characterized by Estruch et al. in 1996.  Syngenta engineered a variant
of the native gene for incorporation into corn.  This engineered gene
has been designated, vip3Aa20, and it was stably incorporated (via
pNOV1300 vector) into the genome of Event MIR162 corn by
Agrobacterium-mediated transformation.  Event MIR162 corn also contains
the pmi gene, which was introduced along with the Vip3Aa20 protein via
the same pNOV1300 transformation vector.  The gene represents the manA
gene from Escherichia coli and encodes the enzyme phosphomannose
isomerase (PMI), which was employed as a selectable marker during the
process of regenerating plant material following transformation
(Negrotto, et al., 2000).

On March 27, 2007, EPA issued an experimental permit for the use Bt
Vip3Aa20 protein in Event MIR162 corn and associated activities (such as
breeding and observation, insect efficacy evaluation, agronomic
observation, inbred and hybrid seed production, and regulatory studies)
through March 18, 2008.  Planting proposed under the EUP took place in
22 states and Puerto Rico for a total of 3,099 acres of field corn.

In conjunction with the EUP, the Agency also established a temporary
exemption from the requirement of a tolerance for Vip3Aa20 and the
genetic material necessary for their production in corn which will
expire March 31, 2008 [see 40 CFR 174.528 (72 FR 20435, dated Apr. 25,
2007)]. To support their requests for EUP and a temporary tolerance
exemption, Syngenta Seeds, Inc. submitted product characterization,
human health and environmental fate and effects data.  These data were
reviewed and found acceptable by the Agency (EPA, 2007a and 2007b).

In this report, Syngenta Seeds, Inc. is seeking an extension and
amendment of its current  EUP [EPA Reg. No. 67979-EUP-6] to allow:  1)
continued field planting of the Vip3Aa20 Bt insect control protein in
Event MIR162-derived field corn plants, and 2) the further large-scale
field testing of conventional breeding ‘stacks’ of Event MIR162 corn
with Event Bt11 corn expressing a Cry1Ab Bt insect control protein
(MIR162 x Bt11 corn), Event MIR162 with Event MIR604 corn expressing
mCry3A Bt insect control protein (MIR162 x MIR604), as well as the
combined insecticidal trait corn hybrids (MIR162 x Bt11 x MIR604).  By
combining the MIR162, Bt11, and MIR604 via conventional breeding, corn
hybrids produce Vip3Aa20 and Cry1Ab proteins for control of key
lepidopteran pests and mCry3A protein for control of key coleopteran
pests.  Syngenta is requesting authorization to amend the EUP for
continued plantings and associated field activities for 31 states and
Puerto Rico for a total of 4,844 acres of field corn in 2008 and 4,856
acres in 2009 and extend the temporary tolerance exemption through
October 31, 2009.

The purpose of this report is to confirm that the previously submitted
product characterization, human health, and environmental fate and
effects data can support the extension and amendment to the EUP and
temporary tolerance exemption and that there are no new data concerns
for the purposed of the EUP.  For Sec. 3 registration and full
commercial cultivation of MIR162 corn and its associated breeding
stacks, Syngenta Seeds, Inc. submitted additional data and these data
are currently under Agency review.

SUMMARY OF DATA:

The Agency previously concluded that, “there is a reasonable certainty
that no harm will result from aggregate exposure to the U.S. population
to Vip3Aa20 protein and the genetic material necessary for its
production” (EPA, 2007a) for the EUP of MIR162 corn.  Since the
granting of the EUP, there have been no new data that indicates a
potential for adverse effects on humans,  therefore, the Agency supports
its original conclusions for the purposes of this EUP.

It was also previously concluded that, “it is unlikely that direct or
indirect harmful effects to non-target organisms (NTOs), including
Federally listed endangered species, would result from exposure to the
insecticidal protein Vip3Aa20, which is expressed in MIR162 corn,” nor
its associated breeding stacks, as a result of the proposed field trials
outlined in the EUP for MIR162 corn (EPA, 2007b).  Although Syngenta
Seeds, Inc. is requesting an increase of acreage and additional states
for further field testing sites, the limited exposure of these plants
would result in minimal risk to the overall populations of the NTOs due
to the small acreage of the trials in the amended EUP, the continued
containment procedures, and disposition of plant materials.
Furthermore, there are no new data that indicates a potential of adverse
effects on non-target organisms since the granting of the EUP,
therefore, the Agency supports its original conclusions for the purposes
of the amended EUP.

CONCLUSION:

The previously reviewed data submitted for the original EUP for MIR162
corn and its breeding stacks are sufficient to support the amendment and
extension of the EUP [EPA Reg. No. 67979-EUP-6] and the temporary
exemption from the requirement of tolerance for Vip3Aa20 [40 CFR
174.528] for the period of March 2008 through October 31, 2009.

REFERENCES:

EPA, 2007a.  “Review of Product Characterization and Human Health Data
for Plant- Incorporated

Protectant Bacillus thuringiensis (Bt) Vip3Aa20 insect control protein
(EPA Reg. No. 67979-EUP-A) and the genetic material necessary for its
production in Event MIR162 corn in support for a temporary exemption
from tolerances and Experimental Use Permit (EUP).” Memorandum- from A
Waggoner, through J. Kough, Ph.D., to M. Mendelsohn, dated Feb. 8, 2007.

EPA, 2007b.  “Environmental effects risk assessment for Syngenta’s
MIR162 Bt corn EUP.”

	Memorandum- from T. Milofsky, through Z. Vaituzis, to A. Reynolds,
dated Jan. 3, 2007.

Estruch, J. J., G. W. Warren, M. A. Mullins, G. J. Nye, J. A. Craig, and
M. G. Koziel (1996).

	Vip3A, a novel Bacillus thuringiensis vegetative insecticidal protein
with a wide spectrum 	of activities against lepidopteran insects.  Proc.
Natl. Acad. Sci. 93:  5389 – 5394.

Negrotto, et al. (2000). The use of phosphomannose-isomerase as a
selectable marker to recover 			transgenic maize plants (Zea mays L. via
Agrobacterium transformation). Plant Cell 			Reports, 19: 798-803.

 An existing permanent exemption from the requirement of a tolerance is
established for PMI in all crops when used as a plant-incorporated
protectant inert ingredient (see 40 CFR 174.527).

 The Cry1Ab PIP in Bt11 field corn has been registered as a PIP since
1996 [EPA Reg. No. 67979-1] and an

exemption from the requirement of a tolerance has been established in
all crops (see 40 CFR 174.511).

 The mCry3A PIP in MIR604 field corn is registered as a PIP [EPA Reg.
No. 67979-5] and an exemption from the

	requirement of a tolerance has been established in corn (see 40 CFR
174.505).

 PAGE

 PAGE   - 4 -

*THIS REVIEW DOES NOT CONTAIN CONFIDENTIAL BUSINESS INFORMATION*


[Federal Register: March 20, 2009 (Volume 74, Number 53)]
[Notices]
[Page 11986-11987]
[DOCID:fr20mr09-112]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notice of Availability of the Final Environmental Impact
Statement (Final EIS) for the Replacement of Runway 10R/28L,
Development of a New Passenger Terminal, and Other Associated Airport
Projects at Port Columbus International Airport (CMH)

AGENCY: Federal Aviation Administration, Department of Transportation.

ACTION: Notice of Availability and notice of 30-day public comment
period.

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SUMMARY: The FAA is issuing this Notice of Availability to advise the
public that a Final EIS will be available for public review beginning
March 20, 2009. The document was prepared pursuant to major
environmental directives to comply with the National Environmental
Policy Act (Pub. L. 91-190); Section 106 consultation for impacts to
historic structures, as identified in 36 CFR Section 800.8,
Coordination with the National Environmental Policy Act; U.S.
Department of Transportation Section 303(c), formerly referred to as
Section 4(f); and other applicable Federal and State environmental
laws, regulations, and Executive Orders.
    The Final EIS was prepared in response to a proposal presented to
the FAA by the Columbus Regional Airport Authority (CRAA), the owner
and operator of CMH and identified in the Final EIS as the Airport
Sponsor, for environmental review.
    The FAA prepared this Final EIS to analyze and disclose potential
environmental impacts related to possible future Federal Actions at
CMH. Numerous Federal actions would be necessary if airfield
development were to be implemented. Proposed improvements include
replacement of Runway 10R/28L, development of a new passenger terminal,
and other airfield projects (see below).
    The Final EIS presents the purpose and need for the proposed
Federal action, analysis of reasonable alternatives, including the No
Action Alternative, discussion of impacts for each reasonable
alternative, the selection of the FAA's preferred alternative, proposed
mitigation, and supporting appendices. The FAA will consider all
information contained in the Final EIS and additional information that
may be provided during the public comment period before issuing the
Agency's Final Decision.
    The Airport Sponsor proposes to replace existing Runway 10R/28L at
CMH, approximately 700 feet south of the existing Runway 10R/28L; to
develop new terminal facilities in the midfield area; to provide
ancillary facilities in support of the replacement runway and midfield
terminal; and to implement noise abatement air traffic procedures
developed for the replacement runway.
    The replacement runway would be 10,113 feet long. This length would
maintain CMH's ability to accommodate current and projected airport
operations. Existing Runway 10R/28L would be decommissioned as a runway
and converted to a taxiway upon commissioning of the replacement
runway. In addition, a south taxiway and north parallel taxiway to
proposed Runway 10R/28L would be constructed.
    To meet future aircraft parking and passenger processing
requirements, new midfield terminal facilities are needed. The Final
EIS assesses a development envelope that is defined as an area large
enough to encompass Phase I and II of the CRAA terminal development
program. The Final EIS discusses the number of gates, approximate
square footage, approximate curb frontage, and the number of passengers
that the terminal would accommodate.
    Ancillary facilities in support of the replacement runway and
midfield terminal would be constructed. The facilities include roadway
relocations and construction; parking improvements; property
acquisition; and relocation of residences, as necessary. The CRAA
prepared a 14 CFR Part 150 Noise Compatibility Study Update (Part 150
Update) to address the current and future noise conditions. The Part
150 Update includes an analysis of the potential noise and land use
impacts resulting from the proposed development of relocating Runway
10R/28L to the south, as well as possible mitigation options. The noise
abatement air traffic options recommended through the Part 150 Update
are included in the Final EIS as part of the proposed project. In
addition, land use mitigation CRAA recommended in the Part 150 Update
is included in the Final EIS as mitigation for the impacts resulting
from the proposed project. The FAA issued its Record of Availability on
May 19, 2008 and its approval of the Noise Compatibility Program on May 19, 2008
FR Doc. E8-12591 Filed 6-6-08: 8:45 am.
Public Comment: The public comment period on the Final EIS starts
on March 20, 2009 and closes on April 20, 2009.
    Comments can only be accepted with the full name and address of the
individual commenting. Mail and fax

comments are to be submitted to Ms. Katherine S. Delaney of the FAA, at
the address shown in FOR FURTHER INFORMATION CONTACT. E-mailed comments
should be sent to<EMAIL_ADDRESS>All comments must be postmarked or
faxed no later than midnight, April 20, 2009. The Final EIS may be
reviewed for comment during regular business hours at the following
locations:
    1. Federal Aviation Administration, Detroit Airports District
Office, 11677 S. Wayne Road, Suite 107, Romulus, MI 48174 (Phone: 734-
229-2900).
    2. Columbus Regional Airport Authority, Port Columbus International
Airport, Administrative Offices, 4600 International Gateway, Columbus,
OH 43219 (Phone:<PHONE_NUMBER>).
    3. City of Gahanna, 200 South Hamilton Road, Gahanna, OH 43230
(Phone:<PHONE_NUMBER>).
    4. City of Whitehall, 360 South Yearling Road, Whitehall, OH 43213
(Phone:<PHONE_NUMBER>).
    5. Jefferson Township, 6545 Havens Road, Blacklick, OH 43004
(Phone:<PHONE_NUMBER>).
    6. City of Bexley, 2242 East Main Street, Bexley, OH 43209 (Phone:
614-327-6200).
    7. City of Reynoldsburg, 7232 East Main Street, Reynoldsburg, OH
43068 (Phone:<PHONE_NUMBER>).
    8. Columbus Metropolitan Library, Main Branch, 96 South Grant
Avenue, Columbus, OH 43215 (Phone:<PHONE_NUMBER>).
    9. Columbus Metropolitan Library, Gahanna Branch, 310 Granville
Street, Gahanna, OH 43230 (Phone:<PHONE_NUMBER>).
    10. Columbus Metropolitan Library, Shepard Branch, 790 North Nelson
Road, Columbus, OH 43219 (Phone:<PHONE_NUMBER>).
    11. Columbus Metropolitan Library, Linden Branch, 2432 Cleveland
Avenue, Columbus, OH 43211 (Phone:<PHONE_NUMBER>).
    12. Columbus Metropolitan Library, Whitehall Branch, 4371 East
Broad Street, Whitehall, OH 43213 (Phone:<PHONE_NUMBER>).
    13. Columbus Metropolitan Library, Reynoldsburg Branch, 1402 Brice
Road, Reynoldsburg, OH 43068 (Phone:<PHONE_NUMBER>).
    14. Bexley Public Library, 2411 East Main Street, Bexley, OH 43209
(Phone:<PHONE_NUMBER>).
    15. CMH EIS Web site, http://www.airportsites.net/cmh-eis.

SUPPLEMENTARY INFORMATION: The comments should be as specific as
possible. Comments should address the contents of the Final EIS, such
as the analysis of potential environmental impacts, the adequacy of the
proposed action to meet the stated need, or the merits of the various
alternatives. This commenting procedure is intended to ensure that
substantive comments and concerns are made available to the FAA in a
timely manner, so that the FAA has an opportunity to address them.

FOR FURTHER INFORMATION CONTACT: Ms. Katherine S. Delaney, FAA Detroit
Airports District Office, 11677 S. Wayne Road, Suite 107, Romulus, MI
48174. Telephone:<PHONE_NUMBER>, Fax:<PHONE_NUMBER>.

    Issued in Romulus, Michigan on March 9, 2009.
Matthew J. Thys,
Manager, Detroit Airports District Office, Great Lakes Region.
[FR Doc. E9-6169 Filed 3-19-09; 8:45 am]

BILLING CODE 4910-13-P


PAPERWORK REDUCTION ACT SUBMISSION Please read the instructions before completing this form. For additional forms or assistance in completing this form, contact your agency's Paperwork Clearance Officer. Send two copies of this form, the collection instrument to be reviewed, the Supporting Statement and any additional documentation to: Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 17th Street NW Washington, DC 20503.

1. Agency/ Subagency originating request U. S. Environmental Protection Agency/ OAR/ OAP/ CCD 2. OMB control number b. None a 2060  0382 3. Type of information collection ( check one) a. G New collection b. G Revision of a currently approved collection c. X Extension of a currently approved collection d. G Reinstatement, without change, of a previously approved collection for which approval has expired e. G Reinstatement, with change, of a previously approved collection for which approval has expired f. G Existing collection in use without an OMB control number 4. Type of review requested ( check one) a. X Regular b. G Emergency  Approval requested by: / / c. G Delegated 5. Small entities Will this information collection have a significant economic impact on a substantial number of small entities? G Yes X No For b f, note item A2 of Supporting Statement Instructions 6. Requested expiration date a. X Three years from approval date b. G Other Specify: / /___

7. Title: Reporting and Recordkeeping Requirements Under the Perfluorocompound ( PFC) Reduction/ Climate Partnership for the Semiconductor Industry ( Renewal)

8. Agency form number( s) ( If applicable) EPA ICR No. 1823.03 9. Keywords: semiconductor, perfluorocompounds, greenhouse gas 10. Abstract: EPA has developed this ICR to obtain authorization to collect information from Companies participating in the PFC Reduction/ Climate Partnership. By participating in this voluntary program, semiconductor manufacturers agree to endeavor to reduce their emissions of potent greenhouse gases called PFCs. In the Partnership, a company will estimate and report its annual overall PFC emissions by gas for its U. S. facilities. This information will be aggregated and provided to EPA ( on a company blind basis) allowing for evaluation of the overall PFC emission reductions achieved by the program.

11. Affected public ( Mark primary with " P" and all others that apply with " X") a. Individuals or households d. Farms b. P Business or other for profit e. Federal Government c. Not for profit institutions f. State, Local or Tribal Government 12. Obligation to respond ( Mark primary with " P" and all others that apply with " X")

a. P Voluntary b. G Required to obtain or retain benefits c. G Mandatory 13. Annual reporting and recordkeeping hour burden a. Number of respondents 24 b. Total annual responses 24 1. Percentage of these responses collected electronically 0 % c. Total hours requested 13,050 d. Current OMB inventory 14,950 e. Difference  1,900 f. Explanation of difference 1. Program Change 0 2. Adjustment  1,900 14. Annual reporting and recordkeeping cost burden ( in thousands of dollars)

a. Total annualized capital/ startup costs 0 b. Total annual costs ( O& M) 133 c. Total annualized cost requested 133 d. Current OMB inventory 139 e. Difference  6 f. Explanation of difference 1. Program change 0 2. Adjustment  6 15. Purpose of information collection ( Mark Primary With " P" and all others that apply with " X")

a. __ Application for benefits e. X Program planning or management b. P Program evaluation f. __ Research c. __ General purpose statistics g. __ Regulatory or compliance d. __ Audit 16. Frequency of recordkeeping or reporting ( check all that apply) a. Q Recordkeeping b. Q Third party disclosure c. X Reporting 1. Q On occasion 2. Q Weekly 3. Q Monthly 4. Q Quarterly 5. Q Semi annually 6. X Annually 7. Q Biannually 8. Q Other ( describe)

17. Statistical methods Does this information collection employ statistical methods?

Q Yes X No 18. Agency contact ( person who can best answer questions regarding the content of this submission) Name: Scott Bartos Phone: ( 202) 343 9167 OMB 83 I 10/ 95 19. Certification for Paperwork Reduction Act Submissions On behalf of this Federal agency, 1 certify that the collection of information encompassed by this request complies with' 5 CFR 1320.9.

NOTE: The text of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8( b)( 3), appear at the end of the instructions. The certification is to be made with reference to those regulatory provisions as set forth in the instructions.

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

( a) It is necessary for the proper performance of agency functions;

( b) It avoids unnecessary duplication;

( c) It reduces burden on small entities;

( d) It uses plain, coherent, and unambiguous terminology that is understandable to respondents;

( e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

( f) It indicates the retention periods for recordkeeping requirements;

( g) It informs respondents of the information called for under 5 CFR 1320.8( b)( 3): ( I) Why the information is being collected' ( ii) Use of information; ( iii) Burden estimate; ( iv) Nature of response ( voluntary, required for a benefit, or mandatory); ( v) Nature and extent of confidentiality; and ( vi) Need to display currently valid OMB control number;

( h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected ( see note in Item 19 of the instructions);

( I) It uses effective and efficient statistical survey methodology; and ( j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item below and explain the reason in Item 18 of the Supporting Statement.

Signature of Program Official Dina Kruger, Director Climate Change Division Office of Atmospheric Programs, ( OAP) Date Signature of Senior Official or designee Oscar Morales, Director Collection Strategies Division Office of Information Collection ( OEI) Date OMB 83 I 10/ 95 Certification Requirement for Paperwork Reduction Act Submissions 5 CFR 1320.9 reads " As part of the agency submission to OMB of a proposed collection of information, the agency ( through the head of the agency, the Senior Official or their designee) shall certify ( and provide a record supporting such certification) that the proposed collection of information

"( a) is necessary for the proper performance of the functions of the agency, including that the information to be collected will have practical utility;

"( b) is not unnecessarily duplicative of information otherwise reasonably accessible to the agency;

"( c) reduces to the extent practicable and appropriate the burden on persons who shall provide information to or for the agency, including with respect to small entities, as defined in the Regulatory Flexibility Act 5 U. S. C § 601( 6)), the use of such techniques as:

"( 1) establishing differing compliance or reporting requirements or timetables that take into account the resources available to those who are to respond; "( 2) the clarification, consolidation, or simplification of compliance and reporting requirements; or collection of information , or any part thereof; "( 3) an exemption from coverage of the collection of information, or any part thereof;

"( d) is written using plain, coherent, and unambiguous terminology and is understandable to those who are to respond;

"( e) is to be implemented in ways consistent and compatible, to the maximum extent practicable, with the existing reporting and recordkeeping practices of those who are to respond;

"( f) indicates for each recordkeeping requirement the length of time persons are required to maintain the records specified;

"( g) informs potential respondents of the information called for under § 1320.8( b)( 3); [ see below]

"( h) has been developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected, including the processing of the information in a manner which shall enhance, where appropriate, the utility of the information to agencies and the public;

"( I) uses effective and efficient statistical survey methodology appropriate to the purpose for which the information is to be collected; and "( j) to the maximum extent practicable, uses appropriate information technology to reduce burden and improve data quality, agency efficiency and responsiveness to the public."

NOTE: 5 CFR 1320.8( b)( 3) requires that each collection of information:

"( 3) informs and provides reasonable notice to the potential persons to whom the collection of information is addressed of: "( I) the reasons the information is planned to be and/ or has been used to further the proper performance of the functions of the agency; "( ii) the way such information is planned to be and/ or has been used to further the proper performance of the functions of the agency; "( iii) an estimate, to the extent practicable, of the average burden of the collection ( together with a request that the public direct to the agency any comments concerning the accuracy of this burden estimate and any suggestions for reducing this burden); "( iv) whether responses to the collection of information are voluntary, required to obtain or retain a benefit ( citing authority), or mandatory ( citing authority); "( v) the nature and extent of confidentiality to be provided, if any ( citing authority); and "( vi) the fact that any 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."

OMB 83 I ( Instructions) 10/ 95


[Federal Register Volume 78, Number 229 (Wednesday, November 27, 2013)]
[Notices]
[Pages 70984-70986]
[FR Doc No: 2013-28464]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70919; File No. S7-04-09]

Order Extending Temporary Conditional Exemption for Nationally
Recognized Statistical Rating Organizations From Requirements of Rule
17g-5 Under the Securities Exchange Act of 1934 and Request for Comment

November 22, 2013.

I. Introduction

    On May 19, 2010, the Securities and Exchange Commission
(``Commission'') conditionally exempted, with respect to certain credit
ratings and until December 2, 2010, nationally recognized statistical
rating organizations (``NRSROs'') from certain requirements in Rule
17g-5(a)(3) \1\ under the Securities Exchange Act of 1934 (``Exchange
Act''), which had a compliance date of June 2, 2010.\2\ Pursuant to the
Order, an NRSRO is not required to comply with Rule 17g-5(a)(3) until
December 2, 2010 with respect to credit ratings where: (1) the issuer
of the structured finance product is a non-U.S. person; and (2) the
NRSRO has a reasonable basis to conclude that the structured finance
product will be offered and sold upon issuance, and that any arranger
linked to the structured finance product will effect transactions of
the structured finance product after issuance, only in transactions
that occur outside the U.S. (``covered transactions'').\3\ On November
23, 2010, the Commission extended the conditional temporary exemption
until December 2, 2011.\4\ On November 16, 2011, the Commission
extended the conditional temporary exemption until December 2, 2012.\5\
On November 26, 2012, the Commission extended the conditional temporary
exemption until December 2, 2013.\6\ The Commission is extending the
temporary conditional exemption exempting NRSROs from complying with
Rule 17g-5(a)(3) with respect to rating covered transactions until
December 2, 2014.
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    \1\ See 17 CFR 240.17g-5(a)(3).
    \2\ See Exchange Act Release No. 62120 (May 19, 2010), 75 FR
28825 (May 24, 2010) (``Order'').
    \3\ See id. at 28827-28 (setting forth conditions of relief).
    \4\ See Exchange Act Release No. 63363 (Nov. 23, 2010), 75 FR
73137 (Nov. 29, 2010) (``First Extension Order'').
    \5\ See Exchange Act Release No. 65765 (Nov. 16, 2011), 76 FR
72227 (Nov. 22, 2011) (``Second Extension Order'').
    \6\ See Exchange Act Release No. 34-68286 (Nov. 26, 2012), 77 FR
71201 (Nov. 29, 2012) (``Third Extension Order'').

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II. Background

    Rule 17g-5 identifies, in paragraphs (b) and (c) of the rule, a
series of conflicts of interest arising from the business of
determining credit ratings.\7\ Paragraph (a) of Rule 17g-5 \8\
prohibits an NRSRO from issuing or maintaining a credit rating if it is
subject to the conflicts of interest identified in paragraph (b) of
Rule 17g-5 unless the NRSRO has taken the steps prescribed in paragraph
(a)(1) (i.e., disclosed the type of conflict of interest in Exhibit 6
to Form NRSRO in accordance with Section 15E(a)(1)(B)(vi) of the
Exchange Act \9\ and Rule 17g-1) \10\ and paragraph (a)(2) (i.e.,
established and is maintaining and enforcing written policies and
procedures to address and manage conflicts of interest in accordance
with Section 15E(h) of the Exchange Act).\11\ Paragraph (c) of Rule
17g-5 specifically prohibits seven types of conflicts of interest.
Consequently, an NRSRO is prohibited from issuing or maintaining a
credit rating when it is subject to these conflicts regardless of
whether it had disclosed them and established procedures reasonably
designed to address them.
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    \7\ 17 CFR 240.17g-5(b) and (c).
    \8\ 17 CFR 240.17g-5(a).
    \9\ 15 U.S.C. 78o-7(a)(1)(B)(vi).
    \10\ 17 CFR 240.17g-1.
    \11\ 15 U.S.C. 78o-7(h).
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    In December 2009, the Commission adopted subparagraph (a)(3) to
Rule 17g-5. This provision requires an NRSRO that is hired by an
arranger to determine an initial credit rating for a structured finance
product to take certain steps designed to allow an NRSRO that is not
hired by the arranger to nonetheless determine an initial credit
rating--and subsequently monitor that credit rating--for the structured
finance product.\12\ In particular, under Rule 17g-5(a)(3), an NRSRO is
prohibited from issuing or maintaining a credit rating when it is
subject to the conflict of interest identified in paragraph (b)(9) of
Rule 17g-5 (i.e., being hired by an arranger to determine a credit
rating for a structured finance product) \13\ unless it has taken the
steps prescribed in paragraphs (a)(1) and (2) of Rule 17g-5 (discussed
above) and the steps prescribed in new paragraph (a)(3) of Rule 17g-
5.\14\ Rule 17g-5(a)(3), among other things, requires that the NRSRO
must:
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    \12\ See 17 CFR 240.17g-5(a)(3); see also Exchange Act Release
No. 61050 (Nov. 23, 2009), 74 FR 63832 (Dec. 4, 2009) (``Adopting
Release'') at 63844-45.
    \13\ Paragraph (b)(9) of Rule 17g-5 identifies the following
conflict of interest: issuing or maintaining a credit rating for a
security or money market instrument issued by an asset pool or as
part of any asset-backed or mortgage-backed securities transaction
that was paid for by the issuer, sponsor, or underwriter of the
security or money market instrument. 17 CFR 240.17g-5(b)(9).
    \14\ 17 CFR 240.17g-5(a)(3).
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     Maintain on a password-protected Internet Web site a list
of each structured finance product for which it currently is in the
process of determining an initial credit rating in chronological order
and identifying the type of structured finance product, the name of the
issuer, the date the rating process was initiated, and the Internet Web
site address where the arranger represents the information provided to
the hired NRSRO can be accessed by other NRSROs;
     Provide free and unlimited access to such password-
protected Internet Web site during the applicable calendar year to any
NRSRO that provides it with a copy of the certification described in
paragraph (e) of Rule 17g-5 that covers that calendar year; \15\ and
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    \15\ Paragraph (e) of Rule 17g-5 requires that an NRSRO seeking
to access the hired NRSRO's Internet Web site during the applicable
calendar year must furnish the Commission with the following
certification: The undersigned hereby certifies that it will access
the Internet Web sites described in 17 CFR 240.17g-5(a)(3) solely
for the purpose of determining or monitoring credit ratings.
Further, the undersigned certifies that it will keep the information
it accesses pursuant to 17 CFR 240.17g-5(a)(3) confidential and
treat it as material nonpublic information subject to its written
policies and procedures established, maintained, and enforced
pursuant to section 15E(g)(1) of the Act (15 U.S.C. 78o-7(g)(1)) and
17 CFR 240.17g-4. Further, the undersigned certifies that it will
determine and maintain credit ratings for at least 10% of the issued
securities and money market instruments for which it accesses
information pursuant to 17 CFR 240.17g-5(a)(3)(iii), if it accesses
such information for 10 or more issued securities or money market
instruments in the calendar year covered by the certification.
Further, the undersigned certifies one of the following as
applicable: in the most recent calendar year during which it
accessed information pursuant to 17 CFR 240.17g-5(a)(3), the
undersigned accessed information for [Insert Number] issued
securities and money market instruments through Internet Web sites
described in 17 CFR 240.17g-5(a)(3) and determined and maintained
credit ratings for [Insert Number] of such securities and money
market instruments; or the undersigned previously has not accessed
information pursuant to 17 CFR 240.17g-5(a)(3) 10 or more times
during the most recently ended calendar year.
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     Obtain from the arranger a written representation that can
reasonably be relied upon that the arranger will, among other things,
disclose on a password-protected Internet Web site the information it
provides to the hired NRSRO to determine the initial credit rating (and
monitor that credit rating) and provide access to the Web site to an
NRSRO that provides it with a copy of the certification described in
paragraph (e) of Rule 17g-5.\16\
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    \16\ In particular, under paragraph (a)(3)(iii) of Rule 17g-5,
the arranger must represent to the hired NRSRO that it will:
maintain the information described in paragraphs (a)(3)(iii)(C) and
(a)(3)(iii)(D) of Rule 17g-5 available at an identified password-
protected Internet Web site that presents the information in a
manner indicating which information currently should be relied on to
determine or monitor the credit rating; provide access to such
password-protected Internet Web site during the applicable calendar
year to any NRSRO that provides it with a copy of the certification
described in paragraph (e) of Rule 17g-5 that covers that calendar
year, provided that such certification indicates that the nationally
recognized statistical rating organization providing the
certification either: determined and maintained credit ratings for
at least 10% of the issued securities and money market instruments
for which it accessed information pursuant to paragraph (a)(3)(iii)
of Rule 17g-5 in the calendar year prior to the year covered by the
certification, if it accessed such information for 10 or more issued
securities or money market instruments; or has not accessed
information pursuant to paragraph (a)(3) of Rule 17g-5 10 or more
times during the most recently ended calendar year; post on such
password-protected Internet Web site all information the arranger
provides to the NRSRO, or contracts with a third party to provide to
the NRSRO, for the purpose of determining the initial credit rating
for the security or money market instrument, including information
about the characteristics of the assets underlying or referenced by
the security or money market instrument, and the legal structure of
the security or money market instrument, at the same time such
information is provided to the NRSRO; and post on such password-
protected Internet Web site all information the arranger provides to
the NRSRO, or contracts with a third party to provide to the NRSRO,
for the purpose of undertaking credit rating surveillance on the
security or money market instrument, including information about the
characteristics and performance of the assets underlying or
referenced by the security or money market instrument at the same
time such information is provided to the NRSRO.
---------------------------------------------------------------------------

    The Commission stated in the Adopting Release that subparagraph
Rule 17g-5(a)(3) is designed to address conflicts of interest and
improve the quality of credit ratings for structured finance products
by making it possible for more NRSROs to rate structured finance
products.\17\ For example, the Commission noted that when an NRSRO is
hired to rate a structured finance product, some of the information it
relies on to determine the rating is generally not made public.\18\ As
a result, structured finance products frequently are issued with
ratings from only the one or two NRSROs that have been hired by the
arranger, with the attendant conflict of interest that creates.\19\ The
Commission stated that subparagraph Rule 17g-5(a)(3) was designed to
increase the number of credit ratings extant for a given structured
finance product and, in particular, to promote the issuance of credit
ratings by NRSROs that are not hired by arrangers.\20\ The Commission's
goal in adopting the rule was to provide users of credit ratings with
more views on the creditworthiness of structured finance

products.\21\ In addition, the Commission stated that Rule 17g-5(a)(3)
was designed to reduce the ability of arrangers to obtain better than
warranted ratings by exerting influence over NRSROs hired to determine
credit ratings for structured finance products.\22\ Specifically, by
opening up the rating process to more NRSROs, the Commission intended
to make it easier for the hired NRSRO to resist such pressure by
increasing the likelihood that any steps taken to inappropriately favor
the arranger could be exposed to the market through the credit ratings
issued by other NRSROs.\23\
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    \17\ Adopting Release at 63844.
    \18\ Id.
    \19\ Id.
    \20\ Id.
    \21\ Id.
    \22\ Id.
    \23\ Id.
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    Rule 17g-5(a)(3) became effective on February 2, 2010, and the
compliance date for Rule 17g-5(a)(3) was June 2, 2010.

III. Extension of Conditional Temporary Extension

    In the Order, the Commission requested comment generally, but also
on a number of specific issues.\24\ The Commission received six comment
letters in response to this solicitation of comment.\25\ The commenters
expressed concern that the extraterritorial application of Rule 17g-
5(a)(3) could, in the commenter's view, among other things, disrupt
local securitization markets,\26\ inhibit the ability of local firms to
raise capital,\27\ and conflict with local laws.\28\ Several commenters
also requested that the conditional temporary exemption be extended or
made permanent.\29\ The First Extension Order again solicited public
comment on issues raised in connection with the extra-territorial
application of Rule 17g-5(a)(3).\30\ One commenter requested that the
Order be made permanent, citing many of the same reasons set forth in
prior comment letters.\31\ The Second Extension Order again solicited
public comment on issues raised in connection with the extra-
territorial application of Rule 17g-5(a)(3).\32\ Commenters supported
the exemption regarding the extra-territorial application of the
Rule,\33\ with one of those commenters again requesting that the Order
be made permanent.\34\ The Third Extension Order again solicited public
comment on issues raised in connection with the extra-territorial
application of Rule 17g-5(a)(3). No comments were received.
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    \24\ See Order at 28828.
    \25\ Letter from Masamichi Kono, Vice Commissioner for
International Affairs, Financial Services Agency, Japan, dated Nov.
12, 2010 (``Japan FSA Letter''); Letter from Masaru Ono, Executive
Director, Securitization Forum of Japan, dated Nov. 12, 2010 (``SFJ
Letter''); Letter from Rick Watson, Managing Director, Association
for Financial Markets in Europe/European Securitisation Forum, dated
Nov. 11, 2010 (``AFME Letter''); Letter from Jack Rando, Director,
Capital Markets, Investment Industry Association of Canada, dated
Sep. 22, 2010 (``IIAC Letter''); Letter from Christopher Dalton,
Chief Executive Officer, Australian Securitisation Forum, dated Jun.
27, 2010 (``AuSF Letter''); Letter from Takefumi Emori, Managing
Director, Japan Credit Rating Agency, Ltd. (``JCR''), dated Jun. 25,
2010 (``JCR Letter'').
    \26\ See Japan FSA Letter; SFJ Letter; AFME Letter; JCR Letter;
AuSF Letter.
    \27\ See AFME Letter; JCR Letter; AuSF Letter.
    \28\ See Japan FSA Letter; AFME Letter; JCR Letter; AuSF Letter;
IIAC Letter. With respect to local laws, we note that the European
Commission in recent months has issued a relevant proposal for
amendments to the European Union Regulation on Credit Ratings. See
``Regulation of the European Parliament and of the Counsel on
amending Regulation (EC) No 1060/2009 on credit rating agencies''
(available at http://ec.europa.eu/internal_market/securities/docs/agencies/100602_proposal_en.pdf).
    \29\ See Japan FSA Letter; SFJ Letter; AFME Letter; JCR Letter.
    \30\ See Letter from Tom Deutsch, Executive Director, American
Securitization Forum, and Chris Dalton, Chief Executive Officer,
Australian Securitization Forum, dated Aug. 9, 2011 (``ASF/AuSF
Letter 1''); Letter from Jack Rando, Director, Capital Markets,
Investment Industry Association of Canada, dated Nov. 2, 2011
(``IIAC Letter 2'').
    \31\ See ASF/AuSF Letter 1.
    \32\ Letter from Chris Barnard to the Commission, dated Nov. 23,
2011 (``Barnard Letter''); Letter from Tom Deutsch, Executive
Director, American Securitization Forum and Chris Dalton, Chief
Executive Officer, Australian Securitisation Forum, dated Aug. 28,
2012 (``ASF/AuSF Letter 2'').
    \33\ See Barnard Letter; ASF/AuSF Letter 2.
    \34\ See ASF/AuSF Letter 2.
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    Given the continued concerns about potential disruptions of local
securitization markets, and because the Commission's consideration of
the issues raised will benefit from additional time to engage in
further dialogue with interested parties and to monitor market and
regulatory developments, the Commission believes extending the
conditional temporary exemption until December 2, 2014 is necessary or
appropriate in the public interest, and is consistent with the
protection of investors.

IV. Request for Comment

    The Commission believes that it would be useful to continue to
provide interested parties opportunity to comment. Comments may be
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/exorders.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number S7-04-09 on the subject line; or
     Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.

Paper Comments

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

All submissions should refer to File Number S7-04-09. This file number
should be included on the subject line if email is used. To help us
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/exorders.shtml). Comments
are also available for Web site viewing and printing in the
Commission's Public Reference Room, 100 F St. NE., Washington, DC 20549
on official business days between the hours of 10 a.m. and 3 p.m. 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.

V. Conclusion

    For the foregoing reasons, the Commission believes it would be
necessary or appropriate in the public interest and consistent with the
protection of investors to extend the conditional temporary exemption
exempting NRSROs from complying with Rule 17g-5(a)(3) with respect to
rating covered transactions until December 2, 2014.
    Accordingly,
    It is hereby ordered, pursuant to Section 36 of the Exchange Act,
that a nationally recognized statistical rating organization is exempt
until December 2, 2014 from the requirements in Rule 17g-5(a)(3) (17
CFR 240.17g-5(a)(3)) for credit ratings where:
    (1) The issuer of the security or money market instrument is not a
U.S. person (as defined under Securities Act Rule 902(k)); and
    (2) The nationally recognized statistical rating organization has a
reasonable basis to conclude that the structured finance product will
be offered and sold upon issuance, and that any arranger linked to the
structured finance product will effect transactions of the structured
finance product after issuance, only in transactions that occur outside
the U.S.

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-28464 Filed 11-26-13; 8:45 am]
BILLING CODE 8011-01-P