[Federal Register: September 22, 2010 (Volume 75, Number 183)]
[Notices]
[Page 57763-57764]
[DOCID:fr22se10-56]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD10-7-000]

ILP Effectiveness Evaluation 2010; Supplemental Notice of Multi-
Stakeholder Technical Conference on the Integrated Licensing Process

September 14, 2010.
    As announced in the May 18, 2010, ``Notice of Interviews,
Teleconferences, Regional Workshops and Multi-Stakeholder Technical
Conference on the Integrated Licensing Process,'' a technical
conference will be held on November 3, 2010, from 11 a.m. (EST) to 3
p.m (EST) in the Commission Meeting Room at the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426. The
conference will be open to the public, and all interested parties are
invited to attend and participate. To ensure adequate materials are
available, please register to attend the technical conference by e-
mailing Stephanie Obadia at<EMAIL_ADDRESS>by October 29, 2010.
    The purposes of the technical conference are to: (1) Share what we
heard about experiences learned from implementing the Integrated
Licensing Process (ILP); (2) build on the feedback gathered through
personal interviews, by-sector teleconferences, and regional workshops;
and (3) identify what works and explore ideas/solutions to better
implement the ILP within the framework of the existing regulations. The
conference will provide an opportunity for industry, state and Federal
agencies, tribes, and other stakeholders to express their views and
suggestions for implementing the ILP.
    A free webcast of this event is available through http://
www.ferc.gov. Anyone with Internet access who desires to listen to this
event can do so by navigating to the Calendar of Events at http://
www.ferc.gov and locating this event in the Calendar. The event will
contain a link to its webcast. The Capitol Connection provides
technical support for webcasts and offers the option of listening to
the conference via phone-bridge for a fee. If you have any questions,
visit http://www.CapitolConnection.org or call<PHONE_NUMBER>.
    Anyone without internet access can view the conference via
television from one of the Commission's regional offices. For building
security access reasons, please call or e-mail the following staff by
October 28, 2010 to make arrangements. Seating capacity is limited.

----------------------------------------------------------------------------------------------------------------
         Regional office             Staff contact        Telephone No.                E-mail address
----------------------------------------------------------------------------------------------------------------
Atlanta.........................  Charles Wagner.....<PHONE_NUMBER><EMAIL_ADDRESS>Chicago.........................  Peggy Harding......<PHONE_NUMBER><EMAIL_ADDRESS>New York........................  Peter Valeri.......<PHONE_NUMBER><EMAIL_ADDRESS>Portland........................  Patrick Regan......<PHONE_NUMBER><EMAIL_ADDRESS>San Francisco...................  Wing Lee...........<PHONE_NUMBER><EMAIL_ADDRESS>----------------------------------------------------------------------------------------------------------------

    This conference will be transcribed. Transcripts of the conference
will be immediately available for a fee from Ace-Federal Reporters,
Inc.<PHONE_NUMBER> or<PHONE_NUMBER>.

    Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations, please
send an e-mail to<EMAIL_ADDRESS>or call toll free (866) 208-
3372 (voice) or<PHONE_NUMBER> (TTY), or send a FAX to<PHONE_NUMBER>
with the required accommodations.
    Those who wish to file written comments may do so in paper format
or electronically by December 3, 2010. Comments may be filed
electronically via the Internet. See 18 CFR 385.2001(a)(1)(iii) and the
instructions on the Commission's Web site http://www.ferc.gov/docs-
filing/efiling.asp. Commenters can submit brief comments up to 6,000
characters, without prior registration, using the eComment system at
http://www.ferc.gov/docs-filing/ecomment.asp. You must include your
name and contact information at the end of your comments. For
assistance, please contact FERC Online Support. Although the Commission
strongly encourages electronic filing, documents may also be paper-
filed. To paper-file, mail an original and seven copies to: Kimberly D.
Bose, Secretary, Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426. Paper filings should, at the top of
the first page, refer to Docket No. AD10-7-000.
    All comments will be placed in the Commission's public files and
will be available for inspection in the Commission's Public Reference
Room at 888 First Street, NE., Washington DC 20426, during regular
business hours. Additionally, all comments may be viewed on the
Commission's Web site at http://www.ferc.gov using the ``eLibrary''
link. For assistance, call toll free 1-866-208-3676, or for TTY 202-
502-8659, or by e-mail to<EMAIL_ADDRESS>    For more information about this conference, please contact David
Turner at<PHONE_NUMBER> or<EMAIL_ADDRESS>
Kimberly D. Bose,
Secretary.
[FR Doc. 2010-23596 Filed 9-21-10; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 88, Number 234 (Thursday, December 7, 2023)]
[Notices]
[Pages 85293-85295]
[FR Doc No: 2023-26845]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2015-D-3539]

Interim Policy on Compounding Using Bulk Drug Substances Under
Section 503B of the Federal Food, Drug, and Cosmetic Act; Draft
Guidance for Industry; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice of availability.

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

SUMMARY: The Food and Drug Administration (FDA or Agency) is announcing
the availability of a draft guidance for industry entitled ``Interim
Policy on Compounding Using Bulk Drug Substances Under section 503B of
the Federal Food, Drug, and Cosmetic Act'' (draft guidance or 2023 503B
Interim Policy Draft Guidance) to describe FDA's interim policy
regarding the use of bulk drug substances in compounding by outsourcing
facilities while FDA develops the list of bulk drug substances that
outsourcing facilities can use in compounding under the applicable
section of the Federal Food, Drug, and Cosmetic Act (FD&C Act). This
draft guidance, when finalized, will replace the guidance for industry
entitled, ``Interim Policy on Compounding Using Bulk Drug Substances
Under section 503B of the Federal Food, Drug, and Cosmetic Act'' issued
in January 2017 (2017 503B Interim Policy Guidance).

DATES: Submit either electronic or written comments on the draft
guidance by January 8, 2024 to ensure that the Agency considers your
comment on this draft guidance before it begins work on the final
version of the guidance.

ADDRESSES: You may submit comments on any guidance at any time as
follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to https://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your comments, that information will be posted on https://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand Delivery/Courier (for written/paper
submissions): Dockets Management Staff (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Dockets
Management Staff, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-

2015-D-3539 for ``Interim Policy on Compounding Using Bulk Drug
Substances Under Section 503B of the Federal Food, Drug, and Cosmetic
Act.'' Received comments will be placed in the docket and, except for
those submitted as ``Confidential Submissions,'' publicly viewable at
https://www.regulations.gov or at the Dockets Management Staff between
9 a.m. and 4 p.m., Monday through Friday,<PHONE_NUMBER>.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov.
Submit both copies to the Dockets Management Staff. If you do not wish
your name and contact information to be made publicly available, you
can provide this information on the cover sheet and not in the body of
your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: https://www.govinfo.gov/content/pkg/FR-2015-09-18/pdf/2015-23389.pdf.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852,<PHONE_NUMBER>.
    You may submit comments on any guidance at any time (see 21 CFR
10.115(g)(5)).
    Submit written requests for single copies of the draft guidance to
the Division of Drug Information, Center for Drug Evaluation and
Research, Food and Drug Administration, 10001 New Hampshire Ave.,
Hillandale Building, 4th Floor, Silver Spring, MD 20993-0002. 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.

FOR FURTHER INFORMATION CONTACT: Rechelle Buford, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Silver Spring, MD 20993-0002,<PHONE_NUMBER>.

I. Background

    FDA is announcing the availability of a draft guidance for industry
entitled ``Interim Policy on Compounding Using Bulk Drug Substances
Under Section 503B of the Federal Food, Drug, and Cosmetic Act.'' This
draft guidance, when finalized, will replace the 2017 503B Interim
Policy Guidance, available at https://www.fda.gov/media/94402/download.
    Section 503B of the FD&C Act (21 U.S.C. 353b) describes the
conditions that must be satisfied for human drug products compounded by
an outsourcing facility to be exempt from the following three sections
of the FD&C Act: (1) section 505 (21 U.S.C. 355) (concerning the
approval of drugs under new drug applications or abbreviated new drug
applications); (2) section 502(f)(1) (21 U.S.C. 352(f)(1) (concerning
the labeling of drugs with adequate directions for use); and (3)
section 582 (21 U.S.C. 360eee-1) (concerning drug supply chain security
requirements). One of the conditions that must be met for a drug
product compounded by an outsourcing facility to qualify for these
exemptions is that the outsourcing facility does not compound a drug
using a bulk drug substance unless: (1) the bulk drug substance appears
on a list established by the Secretary of Health and Human Services
identifying bulk drug substances for which there is a clinical need
(the 503B bulks list) (see section 503B(a)(2)(A)(i)) or (2) the drug
compounded from such bulk drug substances appears on the drug shortage
list in effect under section 506E of the FD&C Act (21 U.S.C. 356e) at
the time of compounding, distribution, and dispensing (see section
503B(a)(2)(A)(ii) of the FD&C Act).
    This draft guidance, when finalized, will revise FDA's current
interim policy with respect to categorization of certain substances
nominated for inclusion on the 503B bulks list. The guidance, when
finalized, would end the categorization of bulk drug substances into
Categories 1, 2, or 3 for those bulk drug substances nominated on or
after the date of publication of the final guidance.
    The 2017 503B Interim Policy Guidance describes the conditions
under which FDA does not intend to take action against an outsourcing
facility for compounding a drug using certain bulk drug substances that
are not eligible for use in compounding under section 503B because they
do not appear on the 503B bulks list and that are not used to compound
a drug that appears on the FDA drug shortage list at the time of
compounding, distribution, and dispensing. One of those conditions is
that the bulk drug substance appears in Category 1. If the 2023 503B
Interim Policy Draft Guidance is finalized in its current form, a
substance nominated on or after the date of publication of that final
guidance would not be categorized and would not be within the scope of
the policy for substances that appear in Category 1.\1\ However, FDA
would consider the substance for inclusion on the 503B bulks list in
accordance with the process and clinical need standard established in
the FD&C Act (see section 503B(a)(2)(A)(i) of the FD&C Act). Substances
that already appear in Category 1 (including substances nominated with
adequate supporting information prior to the date of publication of the
final guidance) may continue to be eligible for the policy that applies
to Category 1 substances, as described in the final guidance, until FDA
makes a final determination whether they will be placed on the 503B
bulks list in accordance with section 503B(a)(2)(A)(i) of the FD&C Act
or unless the Agency removes the substances from Category 1 based on,
for example, information about safety risks.
---------------------------------------------------------------------------

    \1\ FDA recognizes that some compounders and other stakeholders
may currently be in the process of compiling a nomination for the
503B bulks list for submission to the Agency. FDA intends to
categorize nominations of bulk drug substances received prior to the
date in which FDA announces the availability of the final guidance.
FDA believes that this will provide a sufficient amount of time in
which to submit nominations that are currently in progress.
---------------------------------------------------------------------------

    FDA encourages interested parties to focus their comments on the
limited revisions to the interim policy included, for public comment,
in the 2023 503B Interim Policy Draft Guidance.
    This 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 current thinking of FDA on the ``Interim
Policy on Compounding Using Bulk Drug Substances Under Section 503B of
the Federal Food, Drug, and Cosmetic Act.'' It does not establish any
rights for any person and is not binding on FDA or the public. You can
use an alternative approach if it satisfies the requirements of the
applicable statutes and regulations.

II. Paperwork Reduction Act of 1995

    FDA tentatively concludes that this draft guidance contains no
collection of information. Therefore, clearance by the Office of
Management and Budget under the Paperwork Reduction Act of 1995 is not
required.

III. Electronic Access

    Persons with access to the internet may obtain the draft guidance
at https://www.fda.gov/drugs/guidance-compliance-regulatory-information/guidances-drugs, https://www.fda.gov/regulatory-information/search-fda-guidance-documents, or https://www.regulations.gov.

    Dated: December 1, 2023.
Lauren K. Roth,
Associate Commissioner for Policy.
[FR Doc. 2023-26845 Filed 12-6-23; 8:45 am]
BILLING CODE 4164-01-P


[Federal Register Volume 87, Number 150 (Friday, August 5, 2022)]
[Notices]
[Pages 48055-48059]
[FR Doc No: 2022-16782]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95407; File No. SR-CboeEDGX-2022-034]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 19.6

August 1, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on August 1, 2022, Cboe EDGX Exchange, Inc. (``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX Options'')
proposes to amend Rule 19.6. The text of the proposed rule change is
provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The proposed rule change amends Rule 19.6, Interpretation and
Policy .05. Specifically, the Exchange proposes to amend Rule 19.6,
Interpretation and Policy .05(f) to account for conflicts between
different provisions within the Short Term Option Series Rules, extend
current $0.50 strike price intervals in equity options to short term
options with strike prices less than $100, and make other clarifying
changes.

    In 2021, the Exchange amended Rule 19.6, Interpretation and Policy
.05 to limit the intervals between strikes in equity options listed as
part of the Short Term Option Series Program, excluding Exchange-Traded
Fund Shares and ETNs, that have an expiration date more than twenty-one
days from the listing date (``Strike Interval Proposal'').\5\ The
Strike Interval Proposal adopted new paragraph (f), which included a
table that intended to specify the applicable strike intervals that
would supersede subparagraph (e) \6\ for Short Term Option Series in
equity options, excluding options on exchange-traded fund shares and on
exchange-traded notes, which have an expiration more than 21 days from
the listing date. The Strike Interval Proposal was designed to reduce
the density of strike intervals that would be listed in later weeks,
within the Short Term Option Series Program, by utilizing limitations
for intervals between strikes that have an expiration date more than 21
days from the listing date.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 91469 (April 2,
2021), 86 FR 18333 (April 8, 2021) (SR-CboeEDGX-2021-016).
    \6\ Rule 19.6, Interpretation and Policy .05(e) states if a
class does not trade in $1 strike price intervals, the strike price
interval for Short Term Option Series may be (i) $0.50 or greater
where the strike price is less than $75; (ii) $1.00 or greater where
the strike price is between $75 and $150; or (iii) $2.50 or greater
for strike prices greater than $150.
---------------------------------------------------------------------------

    The Exchange proposes to amend Rule 19.6, Interpretation and Policy
.05 to clarify the current rule text and amend the application of the
table to account for potential conflicts within the Short Term Option
Series Rules. Currently, Rule 19.6, Interpretation and Policy .05(f)
provides that notwithstanding subparagraph (e),\7\ when Short Term
Option Series in equity options (excluding options on ETFs and ETNs)
have an expiration more than 21 days from the listing date, the strike
interval for each option class will be based on the following table:
---------------------------------------------------------------------------

    \7\ The proposed rule change makes a nonsubstantive change to
correct the term ``subparagraph'' to ``paragraph'' in the
introductory paragraph of Rule 19.6, Interpretation and Policy
.05(f) as well as subparagraph (f)(3).
    \8\ The Share Price is the closing price on the primary market
on the last day of the calendar quarter. In the event of a corporate
action, the Share Price of the surviving company is utilized. The
Average Daily Volume is the total number of option contracts traded
in a given security for the applicable calendar quarter divided by
the number of trading days in the applicable calendar quarter.
Beginning on the second trading day in the first month of each
calendar quarter, the Average Daily Volume is calculated by
utilizing data from the prior calendar quarter based on Customer-
cleared volume at OCC. For options listed on the first trading day
of a given calendar quarter, the Average Daily Volume is calculated
using the quarter prior to the last trading calendar quarter. See
Rule 19.6, Interpretation and Policy .05(f)(1) and (2).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Share price \8\
                                                                         -------------------------------------------------------------------------------
                 Tier                         Average daily volume                          $25 to less     $75 to less    $150 to less       $500 or
                                                                           Less than $25     than $75        than $150       than $500        greater
--------------------------------------------------------------------------------------------------------------------------------------------------------
1....................................  Greater than 5,000...............           $0.50           $1.00           $1.00           $5.00           $5.00
2....................................  Greater than 1,000 to 5,000......            1.00            1.00            1.00            5.00           10.00
3....................................  0 to 1,000.......................            2.50            5.00            5.00            5.00           10.00
--------------------------------------------------------------------------------------------------------------------------------------------------------

    First, the Exchange proposes to add the phrase ``which specifies
the applicable interval for listing'' to the end of the first sentence
of paragraph (f). The table within that paragraph provides for the
listing of intervals based on certain parameters (average daily volume
and share price). The Exchange proposes to add the phrase ``which
specifies the applicable interval for listing'' to clarify that the
only permitted intervals are as specified in the table within paragraph
(f), as proposed to be amended.
    Second, the Exchange proposes to amend the table in paragraph (f)
to address situations in which there is a conflict between applying the
intervals in paragraph (e) and the table in paragraph (f). Today, there
are instances where a conflict is presented as between the application
of the table within paragraph (f) and the rule text within paragraph
(e) with respect to the correct interval. To address these potential
conflicts, the Exchange proposes that to the extent there is a conflict
between applying the current table within paragraph (f) and the rule
text within paragraph (e), the greater interval would apply. To reflect
this within the Rules, the Exchange proposes to amend the table in
paragraph (f) to specify what the greater interval would be, and thus
the interval the Exchange would apply, in the event of any possible
conflict between the two rule provisions. Specifically, the proposed
rule change amends the table as follows:

----------------------------------------------------------------------------------------------------------------
                                                                 Share price
             Average daily  ------------------------------------------------------------------------------------
   Tier         volume                            $25 to less      $75 to less     $150 to less       $500 or
                               Less than $25       than $75         than $150        than $500        greater
----------------------------------------------------------------------------------------------------------------
1........  Greater than      $0.50 for         $1.00 for         $1.00 for                 $5.00           $5.00
            5,000.            strikes less      strikes less      strikes less
                              than $100 in      than $150.        than $150.
                              Short Term        $2.50 for         $2.50 for
                              Option Series     strikes greater   strikes
                              Program classes   than $150.        greater than
                              and classes                         $150.
                              that trade in
                              $1 increments
                              in non-Short
                              Term Option
                              Series Program.
                              $1.00 for
                              strikes between
                              $100 and $150
                              for classes
                              that do not
                              otherwise trade
                              in $1.00
                              increments in
                              non-Short Term
                              Options. $2.50
                              for strikes
                              greater than
                              $150.
2........  Greater than      $1.00 for         $1.00 for         $1.00 for                  5.00           10.00
            1,000 to 5,000.   strikes less      strikes less      strikes less
                              than $150.        than $150.        than $150.
                              $2.50 for         $2.50 for         $2.50 for
                              strikes greater   strikes greater   strikes
                              than $150.        than $150.        greater than
                                                                  $150.

3........  0 to 1,000......  $2.50...........  $5.00...........  $5.00..........            5.00           10.00
----------------------------------------------------------------------------------------------------------------

    Below are some examples to demonstrate the application of the
proposed table:
    Example 1: Assume a Tier 1 stock that closed on the last day of Q1
with a quarterly share price higher than $75 but less than $150.
Therefore, utilizing the current table within paragraph (f), the
interval would be $1.00 for strikes added during Q2 even for strikes
above $150. However, paragraph (e) provides that the Exchange may list
a Short Term Option Series at $2.50 intervals where the strike price is
above $150. In other words, there is a potential conflict between the
permitted strike intervals above $150 during Q2. In this example,
current paragraph (f) would specify a $1.00 interval whereas current
paragraph (e) would specify a $2.50 interval. Consistent with selecting
the greater interval (from current paragraph (e)), the permissible
strike interval in this scenario would be $2.50 as set forth in the
proposed table. Therefore, during Q2, the following strikes would be
eligible to list: $152.50 and $157.50. For strikes less than $150, the
following strikes would be eligible to list during Q2: $149 and $148
because Short Term Option Series with expiration dates more than 21
days from the listing date as well as Short Term Option Series with
expiration dates less than 21 days from the listing date would both be
eligible to list $1 intervals pursuant to both paragraphs (e) and (f).
    Example 2: Assume a Tier 2 stock that closed on the last day of Q1
with a quarterly share price less than $25. Therefore, utilizing the
current table within paragraph (f), the interval would be $1.00 for
strikes added during Q2 even for strikes above $25. However, paragraph
(e) provides that the Exchange may list a Short Term Option Series at
$0.50 intervals where the strike is less than $100 [sic], at $1.00
intervals where the strike price is between $100 [sic] and $150, and at
$2.50 intervals where the strike price is above $150. In other words,
there is a potential conflict between the permitted strike intervals
below $100 [sic] and above $150 during Q2. In this example, current
paragraph (f) would specify a $1.00 interval for strikes below $100
whereas current paragraph (e) would specify a $0.50 interval.
Consistent with selecting the greater interval (from current paragraph
(f)), the permissible strike interval in this scenario for strikes
below $100 would be $1.00 as set forth in the proposed table. For
strikes between $100 [sic] and $150, there is no conflict, as both
provisions would provide $1.00 intervals for those strikes. For strikes
above $150, current paragraph (f) would specify a $1.00 interval for
strikes above $150 whereas current paragraph (e) would specify a $2.50
interval. Consistent with selecting the greater interval (from current
paragraph (e)), the permissible strike interval in this scenario for
strikes above $150 would be $2.50 as set forth in the proposed table.
    Example 3: Assume a Tier 3 stock that closed on the last day of Q1
with a quarterly share price less than $25. Therefore, utilizing the
current table within paragraph (f), the interval would be $2.50 for all
strikes added during Q2. However, paragraph (e) provides that the
Exchange may list a Short Term Option Series at $0.50 intervals where
the strike price is less than $100 [sic], $1.00 intervals where the
strike price is between $100 [sic] and $150, and $2.50 intervals where
the strike price is above $150. In other words, there is a potential
conflict between the permitted strike intervals below $150 during Q2
(there is no conflict for strikes above $150, as both provisions
provide for a $2.50 strike interval). Consistent with selecting the
greater interval (From current paragraph (f)), the permissible strike
interval in this scenario for strikes below $150 would be $2.50 as set
forth in the proposed table.\9\
---------------------------------------------------------------------------

    \9\ The Exchange made similar corresponding changes to the table
for tier 1 and tier 2 stocks with prices $25 to less than $75 and
$75 to less than $150, with all potential conflicts between current
paragraphs (e) and (f) resolved to apply the greater interval.
---------------------------------------------------------------------------

    Third, the Exchange proposes to delete the last sentence of the
introductory paragraph of paragraph (f), which states ``[t]he below
table indicates the applicable strike intervals and supersedes
paragraph (d) above, which permits additional series to be opened for
trading on the Exchange when the Exchange deems it necessary to
maintain an orderly market, to meet customer demand or when the market
price of the underlying security moves substantially from the exercise
price or prices of the series already opened.'' The table within
paragraph (f) supersedes other rules pertaining to strike intervals,
but the table does not supersede rules governing the addition of
options series. Therefore, the table within paragraph (f) and the rule
text of paragraph (d) do not conflict with each other. Deleting the
reference to paragraph (d) will avoid potential confusion.
    Fourth, the Exchange proposes to delete subparagraph (f)(4), which
states ``[n]otwithstanding the limitations imposed by this subparagraph
(f), this subparagraph (f) does not amend the range of strikes for
Short Term Option Series may be listed pursuant to subparagraph (e)
above.'' While the range limitations continue to be applicable within
paragraph (f), the strike ranges do not conflict with the strike
intervals and therefore the sentence is not necessary. Removing this
provision will avoid potential confusion.
    Finally, the Exchange proposes to amend Rule 19.6, Interpretation
and Policy .05(e) to extend $0.50 strike price intervals in equity
options to short-term options with strike prices less than $100 instead
of the current $75. This proposed change is intended to conform this
provision of the Short Term Option Series Program to that of other
options exchanges.\10\ With this proposed change, for short term
options in equity option classes that do not trade in $1 strike price
intervals, the strike price interval for Short Term Option Series may
be (i) $0.50 or greater where the strike price is less than $100; (ii)
$1.00 or greater where the strike price is between $100 and $150; or
(iii) $2.50 or greater for strike prices greater than $150.
---------------------------------------------------------------------------

    \10\ This is consistent with the rules of other options
exchanges. See, e.g., Cboe Options Rule 4.5(d)(5).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\11\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \12\ requirements that the rules of

an exchange be designed to prevent fraudulent and manipulative acts and
practices, 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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \13\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange believes the
Strike Proposal continues to limit the intervals between strikes listed
in the Short Term Option Series Program that have an expiration date
more than twenty-one days.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange's proposed addition to the first
sentence of Rule 19.6, Interpretation and Policy .05(f) is consistent
with the Act because it clarifies that the only permitted intervals are
as specified in the table within that subparagraph, as amended. The
Exchange believes this proposed rule change will bring greater
transparency to the rule. The proposed rule change to amend the table
within Rule 19.6, Interpretation and Policy .05(f) to address potential
conflicts between that paragraph and paragraph (e) with respect to the
correct strike interval is consistent with the Act because it protects
investors and the public interest by adding transparency to the manner
in which the Exchange implements its listing rules and removes
potential uncertainty. The proposed rule text specifies the applicable
intervals when there is a conflict between the rule text within
paragraphs (e) and (f), thereby providing certainty as to the outcome.
The table within paragraph (f) impacts strike intervals and supersedes
other strike interval rules but does not supersede the addition of
option series. Therefore, paragraph (d) regarding the addition of
option series does not conflict with the table in paragraph (f).
Deleting the last sentence of the introductory paragraph of Rule 19.6,
Interpretation and Policy .05(f) that includes the reference to
paragraph (d) is therefore consistent with the Act. Similarly, deleting
Rule 19.6, Interpretation and Policy .05(f)(4) is consistent with the
Act because while the range limitations continue to be applicable, the
strike ranges do not conflict with strike intervals, rendering the
sentence unnecessary. Deletion of this provision will avoid potential
confusion.
    The Strike Interval Proposal was designed to reduce the density of
strike intervals that would be listed in later weeks, within the Short
Term Option Series Program, by utilizing limitations for intervals
between strikes which have an expiration date more than twenty-one days
from the listing date. The Exchange's proposal intends to continue to
remove certain strike intervals where there exist clusters of strikes
whose characteristics closely resemble one another and, therefore, do
not serve different trading needs,\14\ rendering these strikes less
useful. Also, the Strike Interval Proposal continues to reduce the
number of strikes listed on the Exchange, allowing Market-Makers to
expend their capital in the options market in a more efficient manner,
thereby improving overall market quality on the Exchange.
---------------------------------------------------------------------------

    \14\ For example, two strikes that are densely clustered may
have the same risk properties and may also be the same percentage
out-of-the-money.
---------------------------------------------------------------------------

    Additionally, by applying the greater interval would control as
between the current rule text within Rule 19.6, Interpretation and
Policy .05(e) and (f), the Exchange is reducing the number of strikes
listed in a manner consistent with the intent of the Strike Interval
Proposal, which was to reduce strikes which were farther out in time.
The result of this clarification is to select wider strike intervals
for Short Term Option Series in equity options which have an expiration
date more than twenty-one days from the listing date. This rule change
would harmonize strike intervals as between inner weeklies (those
having less than twenty-one days from the listing date) and outer
weeklies (those having more than twenty-one days from the listing date)
so that strike intervals are not widening as the listing date
approaches.
    The proposed rule change to extend current $0.50 strike price
intervals in equity options to short term options with strike prices
less than $100 will remove impediments to and perfect the mechanism of
a free and open market and a national market system, because it will
conform this portion of the Short Term Option Series Program to that of
other options exchanges.\15\
---------------------------------------------------------------------------

    \15\ See, e.g., Cboe Options Rule 4.5(d)(5).
---------------------------------------------------------------------------

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 Strike Interval Proposal
continues to limit the number of Short Term Option Series Program
strike intervals available for quoting and trading on the Exchange for
all Options Members. The Exchange believes adding clarifying language
to the first sentence of Rule 19.6, Interpretation and Policy .05(f)
regarding which parameter the table within that provision amends within
the Short Term Option Series Program will bring greater transparency to
the rules. Amending the table within paragraph (f) to address potential
conflicts as between the rule text of Rule 19.6, Interpretation and
Policy .05(e) and (f) will bring greater transparency to and reduce
potential confusion regarding the manner in which the Exchange
implements its listing rules. Deleting the last sentence of the first
paragraph of the introductory paragraph of Rule 19.6, Interpretation
and Policy .05(f) that references paragraph (d) does not impose an
undue burden on competition and will avoid potential confusion because
the table within paragraph (f) impacts strike intervals and supersedes
other rules pertaining to strike intervals, but the table does not
supersede rules governing the addition of options series, such as
paragraph (d). Deleting Rule 19.6, Interpretation and Policy .05(f)(4)
will also avoid any potential confusion because, while the range
limitations continue to be applicable, the strike ranges do not
conflict with strike intervals and are not necessary. Extending current
$0.50 strike price intervals in equity options to short term options
with strike prices less than $100 will not impose an undue burden on
competition, because it is consistent with the rules of other options
exchanges.\16\
---------------------------------------------------------------------------

    \16\ See, e.g., Cboe Options Rule 4.5(d)(5).
---------------------------------------------------------------------------

    While this proposal continues to limit the intervals of strikes
listed on the Exchange, the Exchange continues to balance the needs of
market participants by continuing to offer a number of strikes to meet
a market participant's investment objective. The Exchange's Strike
Interval Proposal does not impose an undue burden on intermarket
competition as this Strike Interval Proposal does not impact the
listings available at another self-regulatory organization.

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

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

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

    Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \17\ and Rule 19b-4(f)(6) \18\
thereunder.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\20\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the Exchange may implement the proposed rule change on August 1, 2022--
the same time other exchanges are implementing the same change.\21\ The
Exchange states that implementing the proposal simultaneously with
other option exchanges will promote the protection of investors by
harmonizing the strike listing methodology across exchanges. In
addition, the Exchange's proposal to extend current $0.50 strike price
intervals in equity options to short term options with strike prices
less than $100 will conform this portion of the Short Term Option
Series Program to that of other options exchanges.\22\ The Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest because the
proposed rule change does not raise any new or novel issues.
Accordingly, the Commission hereby waives the operative delay.\23\
---------------------------------------------------------------------------

    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
    \21\ The Commission recently approved a substantially similar
proposal. See Securities Exchange Act Release No. 95085 (June 10,
2022), 87 FR 36353 (June 16, 2022) (SR-ISE-2022-10) (Order Approving
a Proposed Rule Change, as Modified by Amendment No. 1, to Amend ISE
Options 4, Section 5, Series of Options Contracts Open for Trading).
    \22\ See, e.g., Cboe Exchange, Inc. Rule 4.5(d)(5).
    \23\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CboeEDGX-2022-034 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-CboeEDGX-2022-034. 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-CboeEDGX-2022-034, and should be
submitted on or before August 26, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------

    \24\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-16782 Filed 8-4-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 124 (Thursday, June 27, 2013)]
[Notices]
[Pages 38783-38794]
[FR Doc No: 2013-15525]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket DOT-OST-2013-0120]

Grant Applications; Small Community Air Service Development
Program under 49 U.S.C. 41743 et seq.; Order Soliciting Small Community
Grant Proposals

Issued by the Department of Transportation on the 24th day of June,
2013.
    By this order, the Department invites proposals from communities
and/or consortia of communities interested in obtaining a federal grant
under the Small Community Air Service Development Program (``Small
Community Program'' or ``SCASDP'') to address air service and airfare
issues in their communities. Applications of no more than 20 pages each
(one-sided only, excluding the completed SF424, Summary Information
schedule, and any letters from the community or an air carrier showing
support for the application), including all required information, must
be submitted to www.grants.gov no later than 5:00 p.m. EDT on Friday,
July 26, 2013.
    This order is organized into the following sections:

I. Background
II. Selection Criteria and Guidance on Application of Selection
Criteria
III. Evaluation and Selection Process
IV. How to Apply
V. Air Service Development Zone
VI. Grant Administration
VII. Questions and Clarifications
    Appendix A--Additional Information on Applying Through
www.grants.gov
    Appendix B--Summary Information
    Appendix C--Application Checklist
    Appendix D--Confidential Commercial Information

I. Background

    The Small Community Program was established by the Wendell H. Ford
Aviation Investment and Reform Act for the 21st Century (Pub. L. 106-
181) and reauthorized by the Vision 100-Century of Aviation
Reauthorization Act (Pub. L. 108-176). The program is designed to
provide financial assistance to small communities in order to help them
enhance their air service. The Department provides this assistance in
the form of monetary grants that are disbursed on a reimbursable basis.
Authorization for this program is codified at 49 U.S.C. 41743.
    The Small Community Program is authorized to receive appropriations
under 49 U.S.C. 41743(e)(2), as amended. Appropriations are provided
for this program for award selection in FY 2013 pursuant to the FAA
Modernization and Reform Act of 2012 (Pub. L. 112-95). The Department
has up to $11.5 million available for FY 2013 grant awards to carry out
this program. There is no limit on the amount of individual awards, and
the amounts awarded will vary depending upon the features and merits of
the selected proposals. In past years, the Department's individual
grant sizes have ranged from $20,000 to nearly $1.6 million.

A. Eligible Applicants

    Eligible applicants are small communities that meet the following
statutory criteria under 49 U.S.C. 41743:
    1. As of calendar year 1997, the airport serving the community was
not larger than a small hub airport, and it has insufficient air
carrier service or unreasonably high air fares; and
    2. The airport serving the community presents characteristics, such
as geographic diversity or unique circumstances that demonstrate the
need for, and feasibility of, grant assistance from the Small Community
Program.
    No more than four communities or consortia of communities, or a
combination thereof, from the same state may be selected to participate
in the program in any fiscal year. No more than 40 communities or
consortia of communities, or a combination thereof, may be selected to
participate in the program in each year for which the funds are
appropriated.
    Communities Without Existing Air Service: Communities that do not
currently have commercial air service are eligible for SCASDP funds,
but air service providers must have met or be able to meet in a
reasonable period, all Department requirements for air service
certification, including safety and economic authorities.
    Essential Air Service Communities: Small communities that meet the
basic SCASDP criteria and currently receive subsidized air service
under the Essential Air Service (``EAS'') program are eligible to apply
for SCASDP funds. However, grant awards to EAS-subsidized communities
are limited to marketing or promotion projects that support existing or
newly subsidized EAS. Grant funds will not be authorized for EAS-
subsidized communities to support any new competing air service.
Furthermore, no funds will be authorized to support additional flights
by EAS carriers or changes to those carriers' existing schedules. These
restrictions are necessary to avoid conflicts with the mandate of the
EAS program.
    Consortium Applications: Both individual communities and consortia
of communities are eligible for SCASDP funds. An application from a
consortium of communities must be one that seeks to facilitate the
efforts of the communities working together toward one joint grant
project, with one joint objective, including the establishment of one
entity to ensure that the joint objective is accomplished.
    Multiple Applications: Communities may file only one application
for a grant, either individually or as part of a consortium.

B. Eligible Projects

    The Department is authorized to award grants under 49 U.S.C. 41743
to communities that seek to provide assistance to:
     An air carrier to subsidize service to and from an
underserved airport for a period not to exceed 3 years;
     An underserved airport to obtain service to and from the
underserved airport; and/or
     An underserved airport to implement such other measures as
the Secretary, in consultation with such

airport, considers appropriate to improve air service both in terms of
the cost of such service to consumers and the availability of such
service, including improving air service through marketing and
promotion of air service and enhanced utilization of airport
facilities.
    Applicants should also keep in mind the following statutory
restrictions on eligible projects:
     An applicant may not receive an additional grant to
support the same project from a previous grant (see Same Project
Limitation, below); and
     An applicant may not receive an additional grant, prior to
the completion of its previous grant (see Concurrent Grant Limitation,
below).
    Same Project Limitation: A community may not receive an additional
grant to support the same project for which it received a previous
grant (Same Project Limitation). In assessing whether a previous
grantee's current application represents a new project, the Department
will compare the goals and objectives of the previous grant, including
the key components of the means by which those goals and objectives
were to be achieved, to the current application. For example, if a
community received an earlier grant to support a revenue guarantee for
service to a particular destination or direction, a new application by
that community for another revenue guarantee for service to the same
destination or in the same direction is ineligible, even if the revenue
guarantee were structured differently or the type of carrier were
different. However, a new application by such a previous grantee for
service to a new destination or direction using a revenue guarantee, or
for general marketing of the airport and the various services it
offers, is eligible. We recognize that not all revenue guarantees,
marketing agreements, studies, etc. are of the same nature, and that if
a subsequent application incorporates different goals or significantly
different components, it may be sufficiently different to constitute a
new project under 49 U.S.C. 41743(c).
    Concurrent Grant Limitation: A community or consortium may have
only one SCASDP grant at any time. If a community or consortium applies
for a subsequent SCASDP grant when its current grant has not yet
expired, that community/consortium must notify the Department of its
intent to terminate the current SCASDP grant prior to entering into the
new grant. In addition, for consortium member applicants, permission
must be granted from both the grant sponsor and the Department to
withdraw from the current SCASDP grant before that consortium member
will be deemed eligible to receive a subsequent SCASDP grant.
    Airport Capital Improvements Ineligible: Airport capital
improvement projects, including, but not limited to, runway expansions
and enhancements, the construction of additional aircraft gates, and
other airport terminal expansions and reconfigurations are ineligible
for funding under the Small Community Program. Airports seeking funding
for airport capital improvement projects may want to consult with their
local FAA Regional Office to discuss potential eligibility for grants
under the Airport Improvement Program.

II. Selection Criteria and Guidance on Application of Selection
Criteria

    SCASDP grants will be awarded based on the selection criteria as
outlined below. There are two categories of selection criteria:
Priority Selection Criteria and Secondary Selection Criteria.
Applications that meet one or more of the Priority Selection Criteria
will be viewed more favorably than those that do not meet any Priority
Selection Criteria.

A. Priority Selection Criteria

    The law directs the Department to give priority consideration to
those communities or consortia where the following criteria are met:
    1. Air fares are higher than the national average air fares for all
communities--DOT will compare the local community's air fares to the
national average air fares for all similar markets. Communities with
market air fares significantly higher than the national average air
fares in similar markets will receive priority consideration. DOT
calculates these fares using data from the Bureau of Transportation
Statistics (BTS) Airline Origin and Destination Survey data. DOT
evaluates all fares in all relevant markets that serve a SCASDP
community and compares the SCASDP community fares to all fares in
similar markets across the country. Each SCASDP applicant's air fares
are computed as a percentage above or below the national averages.
SCASDP community relevant markets are markets that average more than
one passenger per day each way. The report compares a community's air
fares to the average for all other similar markets in the country that
have similar density (passenger volume) and similar distance
characteristics (market groupings). All calculations are based on 12-
month ended periods to control for seasonal variation of fares.
    2. The community or consortium will provide a portion of the cost
of the activity from local sources other than airport revenue sources--
DOT will consider whether a community or consortium proposes local
funding for the proposed project. Applications providing
proportionately higher levels of cash contributions from sources other
than airport revenues will be viewed more favorably. Applications that
provide multiple levels of contributions (state, local, airport, cash
and in-kind contributions) will also be viewed more favorably. See
Additional Guidance--Cost Sharing and Local Contributions, in
Subsection C below, for more information on the application of this
selection criterion.
    3. The community or consortium has established or will establish a
public-private partnership to facilitate air carrier service to the
public--DOT will consider a community or consortium's commitment to
facilitate air carrier service in the form of a public-private
partnership. Applications that describe in detail how the partnership
will actively participate in the implementation of the proposed project
will be viewed more favorably.
    4. The assistance will provide material benefits to a broad segment
of the traveling public, including businesses, educational
institutions, and other enterprises, whose access to the national air
transportation system is limited--DOT will consider whether the
proposed project would provide, to a broad segment of the community's
traveling public, important benefits relevant to the community.
Examples include service that would offer new or additional access to a
connecting hub airport, service that would provide convenient travel
times for both business and leisure travelers that would help obviate
the need to drive long distances, and service that would offer lower
fares.
    5. The assistance will be used in a timely manner--DOT will
consider whether a proposed project provides a well-defined plan and
reasonable timetable for use of the grant funds. In DOT's experience, a
reasonable timetable for use of grant funds includes a year to complete
studies, two years for marketing and promotion of the airport,
community, carrier, or destination, and three years for projects that
target a revenue guarantee, subsidy, or other financial incentives.
Applicants should describe how their projects can be accomplished
within a reasonable time period.
    6. Multiple communities cooperate to submit a regional or
multistate application to consolidate air service

into one regional airport--DOT will consider whether a proposed project
involves a consortium effort to consolidate air service into one
regional airport. This statutory priority criterion was added pursuant
to Section 429 of the FAA Modernization and Reform Act of 2012 (Pub. L.
112-95).

B. Secondary Selection Criteria

    1. Innovation--DOT will consider whether an application proposes
new and creative solutions to the transportation issues facing the
community, including:
     The extent to which the applicant's proposed solution(s)
to solving the problem(s) is new or innovative, including whether the
proposed project utilizes or encourages intermodal or regional
solutions to connect passengers to the community's air service (i.e.,
cost-effective inter/intra city passenger bus service, marketing of
intermodal surface transportation options also available to air
travelers, or projects that have a positive impact on travel and
tourism); and
     Whether the proposed project, if successfully implemented,
could serve as a working model for other communities.
    2. Participation--DOT will consider whether an application has
broad community participation, including:
     Whether the proposed project has broad community support;
and
     the community's demonstrated commitment to and
participation in the proposed project.
    3. Location--DOT will consider the location and characteristics of
a community:
     The geographic location of each applicant, including the
community's proximity to larger centers of air service and low-fare
service alternatives;
     the population and business activity, as well as the
relative size of each community; and
     whether the community's proximity to an existing or prior
grant recipient could adversely affect either its proposal or the
project undertaken by the other recipient.
    4. Other Factors--DOT will also consider:
     Whether the proposed project clearly addresses the
applicant's stated problems;
     the community's existing level of air service and whether
that service has been increasing or decreasing;
     whether the applicant has a plan to provide any necessary
continued financial support for the proposed project after the
requested grant award expires;
     the grant amount requested compared with total funds
available for all communities;
     the proposed federal grant amount requested compared with
the local share offered;
     any letters of intent from airline planning departments or
intermodal surface transportation providers on behalf of applications
that are specifically intended to enlist new or expanded air service or
surface transportation service in support of the air service in the
community;
     whether the applicant has plans to continue with the
proposed project if it is not self-sustaining after the grant award
expires; and
     equitable and geographic distribution of available funds.

C. Additional Guidance

    Market Analysis: Applicants requesting funds for a revenue
guarantee/subsidy/financial incentive are encouraged to conduct and
reference in their applications an in-depth analysis of their target
markets. Target markets can be destination specific (e.g., service to
LAX), a geographic region (e.g., northwest mountain region) or
directional (e.g., hub in the southeastern United States).
    Complementary Marketing Commitment: Applicants requesting funds for
a revenue guarantee/subsidy/financial incentive are encouraged to
designate in their applications a portion of the project funds
(federal, local or in-kind) for the development and implementation of a
marketing plan in support of the service sought.
    Subsidies for a carrier to compete against an incumbent: The
Department is reluctant to subsidize one carrier but not others in a
competitive market. For this reason, communities that propose to use
the grant funds for service in a city-pair market that is already
served by another air carrier must explain in detail why the existing
service is insufficient or unsatisfactory, or provide other compelling
information to support such proposals.
    Cost Sharing and Local Contributions: Applications must clearly
identify the level of federal funding sought for the proposed project.
Applications must also identify the community's cash contributions to
the proposed project, in-kind contributions from the airport, and in-
kind contributions from the community. Non-federal funds will be
applied proportionately to the entire scope of the project. Communities
cannot use non-federal funds to selectively fund certain components of
a project (see Section VI--Grant Administration--Payments for more
information). Cash contributions from airport revenues must be
identified separately from cash contributions from other community
sources, and cash contributions from the state and/or local government
should be separately identified and described.
    Types of contributions. Contributions should represent a new
financial commitment or new financial resources devoted to attracting
new or improved service, or addressing specific high-fare or other
service issues, such as improving patronage of existing service at the
airport. For communities that propose to contribute to the grant
project, that contribution can be in the following forms:
    Cash from non-airport revenues. A cash contribution can include
funds from the state, the county or local government, and/or from local
businesses, or other private organizations in the community.
Contributions that are comprised of intangible non-cash items, such as
the value of donated advertising, are considered in-kind contributions
(see further discussion below).
    Cash from airport revenues. This includes contributions from funds
generated by airport operations. Airport revenues may not be used for
revenue guarantees to airlines, per 49 U.S.C. 47107 and 47133.
Applications that include local contributions based on airport revenues
do not receive priority consideration for selection.
    In-kind contributions from the airport. This can include such items
as waivers of landing fees, terminal rents, fuel fees, and/or vehicle
parking fees.
    In-kind contributions from the community. This can include such
items as donated advertising from media outlets, catering services for
inaugural events, or in-kind trading, such as advertising in exchange
for free air travel. Travel banks and travel commitments/pledges are
considered to be in-kind contributions.\1\
---------------------------------------------------------------------------

    \1\ A travel bank involves the actual deposit of funds from
participating parties (e.g., businesses, individuals) into a
designated bank account for purchasing air travel on the selected
airline, with defined procedures for the subsequent use or
withdrawal of those funds under an agreement with the airline.
Often, however, what communities refer to as a travel bank actually
involves travel pledges from businesses in the community without any
collection of funds or formal procedures for use of the funds. As
with other types of in-kind contributions, the Department views
travel banks and pledges included in grant applications as an
indicator of local community support.
---------------------------------------------------------------------------

    Cash vs. in-kind contributions. Communities that include local
contributions made in cash will be viewed more favorably.

III. Evaluation and Selection Process

    The Department will first review each application to determine
whether it has satisfied the following eligibility requirements:
    1. The applicant is an eligible applicant;
    2. The application is for an eligible project (including compliance
with the Same Project Limitation); and
    3. The application is complete (including submission of a completed
SF424 and all of the information listed in Contents of Application, in
Section IV below).
    To the extent that the Department determines that an application
does not satisfy these eligibility requirements, the Department will
deem that application ineligible and not consider it further.
    The Department will then review all eligible applications based on
the selection criteria outlined above in Section II. Applications that
meet one or more of the Priority Selection Criteria will be viewed more
favorably than those that do not meet any Priority Selection Criteria.
    Grant awards will be made as promptly as possible so that selected
communities can complete the grant agreement process and implement
their plans. Given the competitive nature of the grant process, the
Department will not meet with applicants regarding their applications.
All non-confidential portions of each application, all correspondence
and ex-parte communications, and all orders will be posted in the
above-captioned docket on www.regulations.gov.
    The Department will announce its grant selections in a Selection
Order that will be posted in the above-captioned docket, served on all
applicants and all parties served with this Solicitation Order, and
posted on the Department's SCASDP Web site at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP.

IV. How To Apply

Required Steps

     Determine eligibility;
     Register with www.grants.gov (see Registration with
www.grants.gov, below);
     Submit an Application for Federal Domestic Assistance
(SF424);
     Submit a completed ``Summary Information'' schedule. This
is your application cover sheet (see Appendix B);
     Submit a detailed application of up to 20 pages (one-sided
only, excluding the completed SF424, Summary Information schedule, and
any letters from the community or an air carrier showing support for
the application) that meets all required criteria (see Appendix C);
     Attach any letters from the community or an air carrier
showing support for the application to the proposal, which should be
addressed to Brooke Chapman, Associate Director, Small Community Air
Service Development Program; and
     Provide separate submission of confidential material, if
requested. (see Appendix D)
    An application will not be complete and will be deemed ineligible
for a grant award until and unless all required materials, including
SF424, have been submitted through www.grants.gov by 5 p.m. EDT on July
26, 2013.
    Registration with www.grants.gov: Communities must be registered
with www.grants.gov in order to submit an application for funds
available under this program. For consortium applications, only the
Legal Sponsor must be registered with www.grants.gov in order to submit
its application for funds available under this program. See Appendix A
for additional information on applying through www.grants.gov.
    Contents of Application: There is no set format that must be used
for applications. Each application should, to the maximum extent
possible, address the selection criteria set forth in Section II,
above, including a clear description of the air service needs/
deficiencies and present plans/strategies that directly address those
needs/deficiencies. At a minimum, however, each application must
include the following information:
     A description of the community's air service needs or
deficiencies, including information about: (1) Major origin/destination
markets that are not now served or are not served adequately; (2) fare
levels that the community deems relevant to consideration of its
application, including market analyses or studies demonstrating an
understanding of local air service needs; and (3) any air service
development efforts over the past three years and the results of those
efforts (including marketing and promotional efforts).
     A strategic plan for meeting those needs under the Small
Community Program, including the community's specific project goal(s)
and detailed plan for attaining such goal(s). Applicants are advised to
obtain firm assurances from air carriers proposing to offer new air
services if a grant is awarded. Plans should:
    [cir] for applications involving new or improved service, explain
how the service will become self-sufficient.
    [cir] fully and clearly outline the goals and objectives of the
project. When an application is selected, these goals and objectives
will be incorporated into the grant agreement, along with the strategic
plan, and define the grant agreement's project scope. Once a grant
agreement is signed, the agreement cannot be amended in a way that
would alter the project scope.
     A detailed description of the funding necessary for
implementation of the proposed project (including federal and non-
federal contributions).
     An explanation of how the proposed project differs from
any previous projects for which the community received SCASDP funds
(see Same Project Limitation, above).
     Designation of a legal sponsor responsible for
administering the proposed project. The legal sponsor of the proposed
project must be a government entity, such as a state, county, or
municipality. The legal sponsor must be legally, financially, and
otherwise able to administer the grant, including having the authority
to assume and carry out the certifications, representations,
warranties, assurances, covenants and other obligations required under
the grant agreement with the Department and to ensure compliance by the
grant recipient with the grant agreement and grant assurances. If the
applicant is a public-private partnership, a public government member
of the organization must be identified as the community's sponsor to
receive project cost reimbursements. A community may designate only one
government entity as the legal sponsor, even if it is applying as a
consortium that consists of two or more local government entities.
Private organizations may not be designated as the legal sponsor of a
grant under the Small Community Program. The community has the
responsibility to ensure that the legal sponsor and grant recipient of
any funding has the legal authority under state and local laws to carry
out all aspects of the grant, and the Department may require an opinion
of the legal sponsor's attorney as to its legal authority to act as a
sponsor and to carry out its responsibilities under the grant
agreement.

V. Air Service Development Zone Designation

    The statute authorizing the Small Community Program also provides
that the Department will designate one of the grant recipients in the
program as an Air Service Development Zone (ASDZ). A

current grant recipient--with its grant award period extending into
FY2013--remains active as the ASDZ designee. As a result, the
Department is not currently soliciting applications for selection as an
ASDZ designee.

VI. Grant Administration

    Grant Agreements: Communities awarded grants are required to
execute a grant agreement with the Department before they begin to
expend funds under the grant award. Applicants should not assume they
have received a grant, nor should they obligate or expend local funds
prior to receiving and fully executing a grant agreement with the
Department. Expenditures made prior to the execution of a grant
agreement, including costs associated with preparation of the grant
application, will not be reimbursed. Moreover, there are numerous
assurances that grant recipients must sign and honor when federal funds
are awarded. All communities receiving a grant will be required to
accept and meet the obligations created by these assurances when they
execute their grant agreements. Copies of assurances are available
online at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP, (click on ``SCASDP Grant Assurances'').
    Payments: The Small Community Program is a reimbursable program;
therefore, communities are required to make expenditures for project
implementation under the program prior to seeking reimbursement from
the Department. Project implementation costs are reimbursable from
grant funds only for services or property delivered during the grant
term. Reimbursement rates are calculated as a percentage of the total
federal funds requested divided by the federal funds plus the local
cash contribution (which is not refundable). The percentage is
determined by: (SCASDP Grant Amount) / (SCASDP Grant Amount + Local
Cash Contribution + State Cash Contribution, if applicable). Payments/
expenditures in forms other than cash (e.g., in-kind) are not
reimbursable. For example, if a community requests $500,000 in federal
funding and provides $100,000 in local contributions, the reimbursement
rate would be 83.33 percent: ((500,000)/(500,000 + 100,000)) = 83.33.
    Grantee Reports: Each grantee must submit quarterly reports on the
progress made during the previous quarter in implementing its grant
project. In addition, each community will be required to submit a final
report on its project to the Department, and 10 percent of the grant
funds will not be reimbursed to the community until such a final report
is received. Additional information on award administration for
selected communities will be provided in the grant agreement.

VII. Questions and Clarifications

    For further information concerning this Order, please contact
Brooke Chapman at<EMAIL_ADDRESS>or<PHONE_NUMBER>. A TDD is
available for individuals who are deaf or hard of hearing at (202) 366-
3993. The Department may post answers to questions and other important
clarifications in the above-captioned docket on www.regulations.gov and
on the program Web site at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP.
    This order is issued under authority delegated in 49 CFR 1.25a(b).

Accordingly,

    1. Applications for funding under the Small Community Air Service
Development Program should be submitted via www.grants.gov as an
attachment to the SF424 by July 26, 2013; and
    2. This Order will be published in the Federal Register, posted on
www.grants.gov and www.regulations.gov, and served on the Conference of
Mayors, the National League of Cities, the National Governors
Association, the National Association of State Aviation Officials,
County Executives of America, the American Association of Airport
Executives, and the Airports Council International-North America.

    Issued June 24, 2013.

Susan L. Kurland,
Assistant Secretary for Aviation and International Affairs.
    An electronic version of this document is available online at
www.regulations.gov.

Additional Information on Applying through WWW.GRANTS.GOV

    Applications must be submitted electronically through
www.grants.gov/Apply. To apply for funding through www.grants.gov,
applicants must be properly registered. The Grants.gov/Apply feature
includes a simple, unified application process that makes it possible
for applicants to apply for grants online. There are five ``Get
Registered'' steps for an organization to complete at Grants.gov.
Complete instructions on how to register and apply can be found at
http://www.grants.gov/applicants/organization_registration.jsp. If
applicants experience difficulties at any point during registration or
application process, please call the www.grants.gov Customer Support
Hotline at 1-800-518-4726, Monday-Friday from 7 a.m. to 9 p.m. EDT.
Registering with www.grants.gov is a one-time process; however,
processing delays may occur and it can take up to several weeks for
first-time registrants to receive confirmation and a user password. It
is highly recommended that applicants start the registration process as
early as possible to prevent delays that may preclude submitting an
application by the deadlines specified. Applications will not be
accepted after July 26, 2013; delayed registration is not an acceptable
reason for extensions.
    In order to apply for SCASDP funding through www.grants.gov/Apply,
all applicants are required to complete the following:
    1. DUNS Requirement. The Office of Management and Budget requires
that all businesses and nonprofit applicants for federal funds include
a Dun and Bradstreet Data Universal Numbering System (DUNS) number in
their applications for a new award or renewal of an existing award. A
DUNS number is a unique nine-digit sequence recognized as the universal
standard for identifying and keeping track of entities receiving
federal funds. The identifier is used for tracking purposes and to
validate address and point of contact information for federal
assistance applicants, recipients, and sub-recipients. The DUNS number
will be used throughout the grant life cycle. The DUNS number must be
included in the data entry field labeled ``Organizational DUNS'' on the
SF-424 form. Instructions for obtaining DUNS number can be found at the
following Web site: http://www.grants.gov/applicants/org_step1.jsp.
    2. System for Award Management. In addition to having a DUNS
number, applicants applying electronically through Grants.gov must
register with the federal System for Award Management (SAM). Step-by-
step instructions for registering with SAM can be found here: http://www.grants.gov/applicants/org_step2.jsp. All applicants must register
with SAM in order to apply online. Failure to register with the SAM
will result in your application being rejected by Grants.gov during the
submissions process.
    3. Username and Password. Acquire an Authorized Organization
Representative (AOR) and a www.grants.gov username and password.
Complete your AOR profile on www.grants.gov and create your username
and password. You will need to use your organization's DUNS Number to
complete this step. For more

information about creating a profile on Grants.gov visit: http://www.grants.gov/applicants/org_step3.jsp.
    4. After creating a profile on Grants.gov, the E-Biz Point of
Contact (E-Biz POC)--a representative from your organization who is the
contact listed for SAM--will receive an email to grant the AOR
permission to submit applications on behalf of their organization. The
E-Biz POC will then log in to Grants.gov and approve an applicant as
the AOR, thereby giving him or her permission to submit applications.
To learn more about AOR Authorization visit: http://www.grants.gov/applicants/org_step5.jsp. To track an AOR status visit: http://www.grants.gov/applicants/org_step6.jsp.
    a. Applicants are, therefore, encouraged to register early. The
registration process can take up to four weeks to be completed. Thus,
registration should be done in sufficient time to ensure it does not
impact your ability to meet required submission deadlines. You will be
able to submit your application online any time after you have approved
as an AOR.
    5. Electronic Signature. Applications submitted through Grants.gov
constitute a submission as electronically signed applications. The
registration and account creation with Grants.gov with E-Biz POC
approval establishes an Authorized Organization Representative (AOR).
When you submit the application through Grants.gov, the name of your
AOR on file will be inserted into the signature line of the
application. Applicants must register the individual who is able to
make legally binding commitments for the applicant organization as the
Authorized Organization Representative (AOR);
    6. Search for the Funding Opportunity on www.grants.gov. Please use
the following identifying information when searching for the SCASDP
funding opportunity on www.grants.gov. The Catalog of Federal Domestic
Assistance (CFDA) number for this solicitation is 20.930, titled
Payments for Small Community Air Service Development.
    7. Submit an application addressing all of the requirements
outlined in this funding availability announcement. Within 24-48 hours
after submitting your electronic application, you should receive an
email validation message from www.grants.gov. The validation message
will tell you whether the application has been received and validated
or rejected, with an explanation. You are urged to submit your
application at least 72 hours prior to the due date of the application
to allow time to receive the validation message and to correct any
problems that may have caused a rejection notification.
    8. Timely Receipt Requirements and Proof of Timely Submission.
Proof of timely submission is automatically recorded by Grants.gov. An
electronic timestamp is generated within the system when the
application is successfully received by Grants.gov. The applicant will
receive an acknowledgement of receipt and a tracking number from
Grants.gov with successful transmission of the application. Applicants
should print this receipt and save it, as a proof of timely submission.
    9. Grants.gov allows applicants to download the application
package, instructions and forms that are incorporated in the
instructions, and work offline. In addition to forms that are part of
the application instructions, there will be a series of electronic
forms that are provided utilizing Adobe Reader.
    a. Adobe Reader. Adobe Reader is available for free to download
from on the Download Software page: http://www.grants.gov/help/download_software.jsp. Adobe Reader allows applicants to read the
electronic files in a form format so that they will look like any other
Standard form. The Adobe Reader forms have content sensitive help. This
engages the content sensitive help for each field you will need to
complete on the form. The Adobe Reader forms can be downloaded and
saved on your hard drive, network drive(s), or CDs.
    b. Note: For the Adobe Reader, Grants.gov is compatible with
versions 8.1.1 and later versions. Always refer to the Download
Software page for compatible versions. Please do not use lower versions
of the Adobe Reader.
    c. Mandatory Fields in Adobe Forms. In the Adobe Reader forms, you
will note fields that will appear with a background color on the data
fields to be completed. These fields are mandatory fields and they must
be completed to successfully submit your application.

    Note: When uploading attachments please use generally accepted
formats such as .pdf, .doc, and .xls. While you may imbed picture
files such as .jpg, .gif, .bmp, in your files, please do not save
and submit the attachment in these formats. Additionally, the
following formats will not be accepted: .com, .bat, .exe, .vbs,
.cfg, .dat, .db, .dbf, .dll, .ini, .log, .ora, .sys, and .zip.

Experiencing Unforeseen www.grants.gov Technical Issues

    If you experience unforeseen www.grants.gov technical issues beyond
your control that prevent you from submitting your application by 5
p.m. EDT on July 26, 2013, you must contact us at
<EMAIL_ADDRESS>or<PHONE_NUMBER> within 24 hours following the
deadline and request approval to submit your application after the
deadline has passed. At that time, DOT staff will require you to
provide your DUNS number and your www.grants.gov Help Desk tracking
number(s). After DOT staff review all of the information submitted and
contact the www.grants.gov Help Desk to validate the technical issues
you reported, DOT staff will contact you to either approve or deny your
request to submit a late application through www.grants.gov. If the
technical issues you reported cannot be validated, your application
will be rejected as untimely. To ensure a fair competition for limited
discretionary funds, the following conditions are not valid reasons to
permit late submissions: (1) Failure to complete the registration
process before the deadline date; (2) failure to follow www.grants.gov
instructions on how to register and apply as posted on its Web site;
(3) failure to follow all of the instructions in the funding
availability notice; and (4) technical issues experienced with the
applicant's computer or information technology (IT) environment.
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Confidential Commercial Information

    Applicants will be able to provide certain confidential business
information relevant to their proposals on a confidential basis. Under
the Department's Freedom of Information Act regulations (49 CFR 7.17),
such information is limited to commercial or financial information
that, if disclosed, would either likely cause substantial harm to the
competitive position of a business or enterprise or make it more
difficult for the Federal Government to obtain similar information in
the future.
    Applicants seeking confidential treatment of a portion of their
applications must segregate the confidential material in a sealed
envelope marked ``Confidential Submission of X (the applicant) in
Docket DOT-OST-2013-0120,'' and include with that material a request in
the form of a motion seeking confidential treatment of the material
under 14 CFR 302.12 (``Rule 12'') of the Department's regulations. The
applicant should submit an original and two copies of its motion and an
original and two copies of the confidential material in the sealed
envelope.
    The confidential material should not be included with the original
of the applicant's proposal that is submitted via www.grants.gov. The
applicant's original submission, however, should indicate clearly where
the confidential material would have been inserted. If an applicant
invokes Rule 12, the confidential portion of its filing will be treated
as confidential pending a final determination. All confidential
material must be received by July 26, 2013, and delivered to the Office
of Aviation Analysis, 8th Floor, Room W86-307, 1200 New Jersey Ave.
SE., Washington, DC 20590.
    A template for the confidential motion can be found at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP.

[FR Doc. 2013-15525 Filed 6-25-13; 4:15 pm]
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