[Federal Register Volume 77, Number 49 (Tuesday, March 13, 2012)]
[Rules and Regulations]
[Pages 14691-14696]
[FR Doc No: 2012-5762]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R01-OAR-2011-0118; A-1-FRL-9644-6]

Approval and Promulgation of Air Quality Implementation Plans;
Rhode Island; Reasonably Available Control Technology (RACT) for the
1997 8-Hour Ozone Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The EPA is approving four State Implementation Plan (SIP)
revisions submitted by the Rhode Island Department of Environmental
Management (RI DEM). These revisions demonstrate that the State of
Rhode Island meets the requirements of reasonably available control
technology (RACT) for oxides of nitrogen (NOX) and volatile
organic compounds (VOCs) set forth by the Clean Air Act (CAA) with
respect to the 1997 8-hour ozone standard. The intended effect of this
action is to approve Rhode Island's RACT demonstration and the
submitted regulations and incorporate them into the Rhode Island SIP.
Additionally, EPA is approving Rhode Island's negative declarations for
several categories of VOC sources. This action is being taken in
accordance with the CAA.

DATES: This rule is effective on May 14, 2012, unless EPA receives
adverse comments by April 12, 2012. If adverse comments are received,
EPA will publish a timely withdrawal of the direct final rule in the
Federal Register informing the public that the rule will not take
effect.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R01-OAR-2011-0118, by one of the following methods:
    1. www.regulations.gov: Follow the on-line instructions for
submitting comments.
    2. Email<EMAIL_ADDRESS>    3. Fax:<PHONE_NUMBER>.
    4. Mail: ``Docket Identification Number EPA-R01-OAR-2011-0118,''
Anne Arnold, U.S. Environmental Protection Agency, EPA New England
Regional Office, Office of Ecosystem Protection, Air Quality Planning
Unit, 5 Post Office Square--Suite 100, (Mail code OEP05-2), Boston, MA
02109-3912.
    5. Hand Delivery or Courier. Deliver your comments to: Anne Arnold,
Manager, Air Quality Planning Unit, Office of Ecosystem Protection,
U.S. Environmental Protection Agency, EPA New England Regional Office,
Office of Ecosystem Protection, Air Quality Planning Unit, 5 Post
Office Square--Suite 100, (Mail code OEP05-2), Boston, MA 02109-3912.
Such deliveries are only accepted during the Regional Office's normal
hours of operation. The Regional Office's official hours of business
are Monday through Friday, 8:30 to 4:30, excluding legal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R01-OAR-
2011-0118. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
www.regulations.gov, including any personal information provided,
unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit through www.regulations.gov, or
email, information that you consider to be CBI or otherwise protected.
The www.regulations.gov Web site is an ``anonymous access'' system,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an email
comment directly to EPA without going through www.regulations.gov your
email address will be automatically captured and included as part of
the comment that is placed in the public docket and made available on
the Internet. If you submit an electronic comment, EPA recommends that
you include your name and other contact information in the body of your
comment and with any disk or CD-ROM you submit. If EPA cannot read your
comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses.
    Docket: All documents in the electronic docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically in www.regulations.gov or
in hard copy at Office of Ecosystem Protection, U.S. Environmental
Protection Agency, EPA New England Regional Office, 5 Post Office
Square--Suite 100, Boston, MA. EPA requests that if at all possible,
you contact the contact listed in the FOR FURTHER INFORMATION CONTACT
section to schedule your inspection. The Regional Office's official
hours of business are Monday through Friday, 8:30 to 4:30, excluding
legal holidays.
    In addition, copies of the state submittal and EPA's technical
support document are also available for public inspection during normal
business hours, by appointment at the State Air Agency; Office of Air
Resources, Department of Environmental Management, 235 Promenade
Street, Providence, RI 02908-5767.

FOR FURTHER INFORMATION CONTACT: David Mackintosh, U.S. Environmental
Protection Agency, New England Regional Office, Office of Ecosystem
Protection, Air Quality Planning Unit, 5 Post Office Square--Suite 100,
Mail Code OEP05-02, Boston, MA 02109-3912, telephone<PHONE_NUMBER>,
facsimile<PHONE_NUMBER>, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

    Throughout this document whenever ``we,'' ``us,'' or ``our'' is
used, we mean EPA.
    Organization of this document. The following outline is provided to
aid in locating information in this preamble.

I. Background and Purpose
II. Summary of Rhode Island's SIP Revisions
III. EPA's Evaluation of Rhode Island's SIP Revisions
    A. RACT Demonstration
    B. Other VOC Rules
IV. Final Action
V. Statutory and Executive Order Reviews

I. Background and Purpose

    In 1997, EPA revised the health-based National Ambient Air Quality
Standard (NAAQS) for ozone, setting it at 0.08 parts per million (ppm)
averaged over an 8-hour time frame. EPA set the 8-hour ozone standard
based on scientific evidence demonstrating that ozone causes adverse
health effects at lower ozone concentrations and over longer periods of
time than was understood when the pre-existing 1-hour ozone standard
was set. EPA determined that the 8-hour standard would be more
protective of human health, especially with regard to children and
adults who are active outdoors, and individuals with a pre-existing
respiratory disease, such as asthma.
    On April 30, 2004, pursuant to the Federal Clean Air Act (the Act,
or CAA), 42 U.S.C. 7401 et seq., EPA designated portions of the country
as being in nonattainment of the 1997 8-hour ozone NAAQS (69 FR 23858).
The entire State of Rhode Island was designated as nonattainment for
ozone and classified as moderate. The entire State of Rhode Island is
also part of the Ozone Transport Region (OTR) under Section 184(a) of
the CAA. Sections 182(b)(2) and 184 of the CAA compel States with
moderate and above ozone nonattainment areas, as well as areas in the
OTR respectively, to submit a revision to their applicable State
Implementation Plan (SIP) to include provisions to require the
implementation of reasonable available control technology (RACT) for
sources covered by a Control Techniques Guideline (CTG) and for all
major sources. A CTG is a document issued by EPA which establishes a
``presumptive norm'' for RACT for a specific VOC source category.
    EPA has determined that States which have RACT provisions approved
in their SIPs for the 1-hour ozone standard have several options for
fulfilling the RACT requirements for the 8-hour ozone NAAQS. If a State
meets certain conditions, it may certify that previously adopted 1-hour
ozone RACT controls in the SIP continue to represent RACT control
levels for purposes of fulfilling 8-hour ozone RACT requirements.
Alternatively, a State may establish new or more stringent requirements
that represent RACT control levels, either in lieu of, or in
conjunction with, a certification. In addition, a State may submit a
negative declaration if there are no CTG sources or major sources of
VOC and NOX emissions in lieu of, or in addition to, a
certification. See Final Rule to Implement the 8-Hour Ozone National
Ambient Air Quality Standard--Phase 2 (the Phase 2 Rule) (70 FR 71612;
November 29, 2005).
    As noted in the EPA's Phase 2 ozone implementation rule, the RACT
submittal for the 1997 8-hour ozone standard was due from Rhode Island
on September 16, 2006. (See 40 CFR 51.916(b)(2).) On March 24, 2008 (73
FR 15416), EPA issued a finding of failure to submit to Rhode Island
for the 1997 8-hour ozone RACT requirement. This finding started an 18-
month sanctions clock, as well as a 24-month Federal Implementation
Plan (FIP) clock. On April 30, 2008, the RI DEM submitted a SIP
revision which included an attainment demonstration, a RACT
demonstration, and a reasonable further progress plan for the 8-hour
ozone NAAQS. EPA determined the SIP revision complete on May 30, 2008,
stopping the 18-month sanctions clock. Today's action only addresses
the RACT demonstration portion of Rhode Island's submittal.
    In addition, on September 22, 2008, RI DEM submitted a SIP revision
containing revised Air Pollution Control (APC) Regulation No. 36,
Control of Emissions from Organic Solvent Cleaning. Then, on October
27, 2009, RI DEM submitted a SIP revision containing three revised APC
regulations: Regulation No. 25, Control of VOC Emissions from Cutback
and Emulsified Asphalt; Regulation No. 31, Control of VOCs from
Consumer Products; and Regulation No. 33, Control of VOCs from
Architectural Coatings and Industrial Maintenance Coatings. Lastly, on
March 25, 2011, RI DEM submitted a SIP revision for their new APC
General Definitions Regulation.

II. Summary of Rhode Island's SIP Revisions

    On April 30, 2008, RI DEM submitted a SIP revision titled, ``The
Rhode Island Attainment Plan for the 8-Hour Ozone National Ambient Air
Quality Standard,'' which included a RACT demonstration in Chapter 6.
Except for two source categories, solvent metal degreasing and asphalt
paving, RI DEM determined that their existing VOC controls previously
adopted as RACT under the 1-hour ozone standard for CTG source
categories and for non-CTG major sources still constitute RACT for the
8-hour ozone standard.
    In its RACT demonstration, RI DEM committed to adopt and submit
revised regulations for asphalt paving and solvent metal degreasing.
Subsequently, on September 22, 2009, RI DEM submitted the SIP revision
containing revised APC Regulation No. 36, Control of Emissions from
Organic Solvent Cleaning, and on October 27, 2009, submitted a SIP
revision containing revised APC Regulation No. 25, Control of VOC
Emissions from Cutback and Emulsified Asphalt.
    As part of its ozone attainment demonstration, Rhode Island also
committed to submit revised regulations for consumer products and
architectural and industrial maintenance coatings. On October 27, 2009,
RI DEM submitted a SIP revision containing revised APC Regulations No.
31, Control of VOCs from Consumer Products, and No. 33, Control of VOCs
from Architectural Coatings and Industrial Maintenance Coatings.
    In addition, as stated in the RACT demonstration, RI DEM has
determined that there are no applicable stationary sources of VOC in
Rhode Island for certain CTG categories and makes a negative
declaration for these categories:

1. Refinery Vacuum Producing Systems Wastewater Separators and Process
Unit Turnarounds (1977)
2. Leaks from Petroleum Refinery Equipment (1978)
3. Manufacture of Pneumatic Rubber Tires (1978)
4. Large Petroleum Dry Cleaners (1982)
5. Manufacture of High-Density Polyethylene, Polypropylene and
Polystyrene Resins (1983)
6. Synthetic Organic Chemical Mfg Equipment Fugitive Emissions (1984)
7. Synthetic Organic Chemical Mfg Air Oxidation Processes (1984)

    Finally, the March 25, 2011, SIP revision included a new APC
General Definitions Regulation. The newly created General Definitions
Regulation contains over 40 terms that were previously defined in each
individual APC regulation. Common terms were consolidated and some
terms, such as ``Volatile Organic Compound'' were updated to be
consistent with current federal definitions.

III. EPA's Evaluation of Rhode Island's SIP Revisions

A. RACT Demonstration

    EPA has evaluated Rhode Island's RACT regulations and has
determined that they are generally consistent with the applicable EPA
guidance documents. In the absence of any evidence to the contrary, EPA
agrees with Rhode Island's assertion that, with the exception of two
CTG categories (cutback asphalt and solvent cleaning), the
NOX and VOC RACT regulations previously approved by EPA and
incorporated into the Rhode Island SIP under the 1-hour ozone standard
(see 58 FR 65933, 64 FR 67495, 62 FR 46202, and 65 FR 81743) continue
to constitute RACT under the 8-hour ozone standard.\1\
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    \1\ It should also be noted that Rhode Island attained the 8-
hour ozone standard by its applicable attainment date, June 15, 2010
(75 FR 64949, October 21, 2010).
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    APC Regulation No. 25, Control of VOC Emissions from Cutback and
Emulsified Asphalt was last approved by the EPA on December 2, 1999 (64
FR 67495). This APC regulation applies to anyone that solicits the use
of or applies asphalt for road paving, maintenance, or repairs.\2\ APC
Regulation No. 25 was revised to prohibit, as of May 1, 2010, the use
of cutback asphalt and limit the VOC \3\ content of emulsified asphalt
used for road paving, maintenance, or repair during the ozone season,
which is May 1st through September 30th of each year. Based on the
model rule developed by the Ozone Transport Commission (OTC) in
November 2006, Rhode Island removed exemptions from Regulation No. 25
that previously permitted the use of cutback asphalt during the ozone
season and set a more stringent limit on the ozone season VOC content
of emulsified asphalt. The use of emulsified asphalt during the ozone
season is prohibited unless its formulation data proves that the
product contains less than 0.1 percent or less VOC by weight, as
applied,\4\ or the applied emulsified asphalt contains not more than
6.0 milliliter of oil distillate per 200 milliliter sample using ASTM
Method D 244 or AASHTO Method T 59. These restrictions apply only to
road paving, maintenance, or repairs. Since the revised rule is more
stringent than the previously approved cutback and emulsified asphalt
VOC requirements, the new APC Regulation No. 25 satisfies the section
110(l) anti-backsliding requirements of the CAA. Case-by-case
exemptions to the APC Regulation No. 25 requirements are only permitted
with written approval from the RI DEM director and the EPA. The written
approval by both RI DEM and EPA must be received before cutback or
emulsified asphalt not meeting the requirements of section 25.3 may be
used. In evaluating any request, EPA will consider the criteria
specified in section 25.2.2.
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    \2\ EPA interprets Rhode Island's definitions of asphalt to
specifically include cutback and emulsified asphalt. Rhode Island's
regulations define these asphalts as types of ``asphalt cements,''
which is an otherwise undefined term.
    \3\ Section 25.2.3 of APC Regulation No. 25 specifies that VOC
should be read to include Halogenated Organic Compounds (``HOC'').
Rhode Island did not submit this provision to EPA as part of its SIP
package. EPA is therefore not taking any action on this provision
and for the purposes of federal law, APC Regulation No. 25 only
applies to VOC content.
    \4\ To demonstrate that a formulation as applied has 0.1 percent
or less VOC by weight, a person must supply VOC content of each
emulsified asphalt component, in percent, as determined by an
approved test method and the mix ratio for each emulsified asphalt
component.
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    APC Regulation No. 36, Control of Emissions from Organic Solvent
Cleaning, was last approved by the EPA December 2, 1999 (64 FR 67495).
The revisions to Regulation No. 36 require additional control measures
that were recommended by the OTC to reduce VOC emissions from cold
cleaning operations, which are also consistent with the Federal Maximum
Achievable Control Technology (MACT) standard (40 CFR Part 63 Subpart
T). The revisions specifically exempt cold cleaners using solvents
containing 5 percent or less VOCs or volatile hazardous air pollutants
(HAPs) from the regulation to encourage facilities to switch to aqueous
based cleaners, many of which contain small amounts of solvents. Rhode
Island's revised rule also includes the OTC's recommended solvent vapor
pressure limit of 1.0 mm of mercury (Hg) for cold cleaning solvents.
The addition of a vapor pressure limit makes Rhode Island's revised APC
Regulation No. 36 more stringent than the previous version of the rule
approved by EPA into the Rhode Island SIP (64 FR 67495; December 2,
1999), thus satisfying the anti-backsliding requirements of the CAA
sections 110(l). Also, the low vapor pressure requirement is above and
beyond the controls EPA has outlined as RACT in EPA's solvent cleaning
CTG (EPA-450/2-77-022, November 1977) and more stringent than the 8.0
mm Hg vapor pressure standard recommended in EPA's more recent CTG for
Industrial Cleaning Solvents (EPA 453/R-06-001, September 2006).
    Although APC Regulation No. 36 includes the low vapor pressure
requirement found in the OTC model rule, Rhode Island's rule also
includes a few specified exemptions from this requirement.
Specifically, the requirement does not apply to cold cleaning machines:
(1) Used in ``special and extreme solvent cleaning;'' (2) for which use
of such a solvent is demonstrated to result in unsafe operating
conditions; or (3) that are located in a permanent total enclosure
having control equipment that is designed and operated with an overall
VOC removal efficiency of 90 percent or greater. The term ``special and
extreme solvent cleaning'' is defined to mean the cleaning of metal
parts in research, development, manufacture and rework of electronic
parts, assemblies, boxes, wiring harnesses, sensors and connectors used
in aerospace service or other high precision products for which
contamination must be minimized. These exemptions from the low vapor
pressure requirement are based on comments received by New York during
the rulemaking on their solvent cleaning rule. New York's Part 226,
``Solvent Metal Cleaning Processes,'' also includes these same
exemptions from the low vapor pressure requirement. EPA approved New
York's solvent cleaning rule on January 23, 2004 (69 FR 3237). As noted
above, Rhode Island's low vapor pressure requirement is more stringent
than requirements recommended in EPA guidance, as well as requirements
in the previously SIP-approved version of Rhode Island's No. 36
regulation, therefore, exemptions from this requirement are considered
acceptable.
    Rhode Island's April 30, 2008, RACT demonstration also references
permits for applicable sources in the Ship Building and Repair CTG
category. While Rhode Island does not have an APC regulation for ship
building and repair, federally enforceable permits satisfy the CTG
requirements for the two Rhode Island facilities in this category
(Senesco and General Dynamics). The two permits cited in the RACT
demonstration were issued pursuant to Rhode Island Regulation No. 9 Air
Pollution Control Permits, which was approved by the EPA December 02,
1999 (64 FR 67495). These permits specify VOC limits for marine
coatings for both general use and specialty applications that are
consistent with EPA's CTG for Shipbuilding and Ship Repair Operations
(EPA-453/R-94-032). Operating and compliance requirements are also
included in the permits with detailed procedures to determine VOC
contents of coatings to which thinning solvent will be added. The
permits also prescribe testing, recordkeeping, and reporting
requirements consistent with the EPA guidance document ``Model Volatile

Organic Compound Rules for Reasonably Available Control Technology,''
June 1992.
    As discussed above, Rhode Island regulations and permits are
consistent with the applicable EPA guidance. Therefore, EPA concludes
that Rhode Island's RACT demonstration submitted on April 30, 2008,
along with the subsequent submittals of APC Regulations 25 and 36
constitute RACT for the relevant source categories, and as such, Rhode
Island has met the CAA requirement to submit RACT for the 1997 8-hour
ozone standard.

B. Other VOC Rules

    Rhode Island's revised APC Regulation No. 31, Control of VOCs from
Consumer Products and Regulation No. 33, Control of VOCs from
Architectural Coatings and Industrial Maintenance Coatings were
previously approved by EPA on December 2, 1999 (64 FR 67495), as
contingency regulations that would be triggered only if Rhode Island
failed to achieve the 15 percent VOC reduction requirements of the CAA.
The regulations were never triggered and, thus, the emissions limits in
the rules have not been effective. The revised versions of APC
Regulations No. 31 and No. 33 are not contingency regulations and
compliance with emission limits in these rules was due by July 1, 2009.
Therefore, the two regulations are more stringent than the previous
regulations that were never triggered, thus satisfying the anti-
backsliding requirements of the CAA sections 110(l).
    The revised APC Regulations No. 31 and No. 33 limit the VOC content
of 102 categories of consumer products and 53 categories of
architectural and industrial maintenance (AIM) coatings, respectively.
The limits in Rhode Island's AIM rule are based on an OTC model rule
developed in 2001, while Rhode Island's consumer products limits
reflect the 2006 OTC updates in addition to the 2001 limits. Rhode
Island's Regulation 31 contains limits for more categories of consumer
products than the EPA's National Volatile Organic Compound Emission
Standards for Consumer Products rule at 40 CFR Part 59 Subpart C (63 FR
48831; September 11, 1998). The Rhode Island Regulation 31 limits are
equal to, or more stringent than, those found in the EPA consumer
products rule.
    The consumer products listed in APC Regulation No. 31 include items
sold to retail consumers for household or automotive use as well as
products used in commercial and institutional settings, such as beauty
shops, schools and hospitals.\5\ The revised regulation has 102
categories with VOC content limits equal or less than the previous
contingent consumer product limits. Since the previous limits were
never enacted, the revised rule is more stringent and thus meets the
anti-backsliding requirements in the CAA sections 110(l). In addition
to the VOC emissions limits, APC Regulation No. 31 includes the
following:
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    \5\ In a letter dated February 1, 2012, Rhode Island withdrew
sections 31.2.3 through 31.2.5 from consideration as part of its
SIP. EPA is therefore not acting on these provisions. These
provisions, providing exemptions from the rule, are still valid as a
matter of state law. For an exemption approved under these
provisions to be federally enforceable and limit EPA's authority to
enforce the general VOC content provisions, the specific exemption
must be approved as a SIP revision. Until Rhode Island submits an
exemption to EPA and EPA approves that exemption as a SIP revision,
the exemption is not effective as a matter of federal law. See 61 FR
38665.
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    1. Limits on toxic contaminants in antiperspirants and deodorants
and other consumer products;
    2. Requirements for charcoal lighter materials, aerosol adhesives
and floor wax strippers;
    3. Requirements for products containing ozone-depleting compounds;
    4. Product labeling requirements; and
    5. Record keeping, reporting and testing requirements.
    APC Regulation No. 33, Control of VOCs from Architectural Coatings
and Industrial Maintenance Coatings, applies to anyone who sells,
offers for sale, supplies, manufactures, applies or solicits the
application of AIM coatings. The revised regulation has 53 coating
categories with VOC content limits less than or equal to the previous
contingency AIM limits. The limits are also less than or equal to the
corresponding categories found in EPA's National Volatile Organic
Compound Emission Standards for Architectural Coatings at 40 CFR Part
59 Subpart D (63 FR 48877; September 11, 1998). Since the previous
limits were never enacted, the revised rule is more stringent and thus
meets the anti-backsliding requirements in the CAA sections 110(l).
    In addition to the limits on the VOC content of the coatings, the
rule includes the following:
    1. Painting practice and thinning specifications;
    2. Requirements for rust preventative coatings, lacquers and AIM
coatings not specifically listed in the regulation;
    3. Product labeling requirements;
    4. Recordkeeping, reporting and testing requirements.
    As outlined above, Rhode Island's revised Regulation No. 31,
without the exemptions contained in 31.2.3 through 31.2.5 that were
withdrawn, and Regulation No. 33 are more stringent than EPA's national
rules for consumer products and AIM coatings and more stringent than
the previous SIP-approved versions of these regulations. Therefore,
with the conditions discussed, EPA finds Rhode Island's Regulations No.
31 and 33 approvable.
    Finally, Rhode Island's new General Definitions regulation contains
over 40 terms that were previously defined in each individual APC
regulation. EPA has reviewed this rule and has found that many of the
definitions were previously approved into the Rhode Island SIP. The
term ``volatile organic compound'' was updated to be consistent with
updates to the federal definition of this term. See 40 CFR Part
51.100(s). Therefore, EPA finds Rhode Island's rule to be approvable.

IV. Final Action

    EPA is approving Rhode Island's April 30, 2008 RACT certification
and negative declarations as meeting RACT for the 1997 8-hour ozone
standard. EPA is also approving the following Rhode Island regulations
and incorporating them into the Rhode Island SIP: Revised APC
Regulation No. 25, Control of VOC Emissions from Cutback and Emulsified
Asphalt (with the exception of Section 25.2.3 which the state did not
submit as part of the SIP revision); revised APC Regulation No. 31,
Control of VOCs from Consumer Products (with the exception of Sections
31.2.3-31.2.5 which were withdrawn from consideration as part of the
SIP revision); revised APC Regulation No. 33, Control of VOCs from
Architectural Coatings and Industrial Maintenance Coatings; revised APC
Regulation No. 36, Control of Emissions from Organic Solvent Cleaning;
and new APC General Definitions Regulation.
    The EPA is publishing this action without prior proposal because
the Agency views this as a noncontroversial amendment and anticipates
no adverse comments. However, in the proposed rules section of this
Federal Register publication, EPA is publishing a separate document
that will serve as the proposal to approve the SIP revision should
relevant adverse comments be filed. This rule will be effective May 14,
2012 without further notice unless the Agency receives relevant adverse
comments by April 12, 2012.
    If the EPA receives such comments, then EPA will publish a notice
withdrawing the final rule and informing the public that the rule will
not take effect. All public comments received will then be addressed in
a

subsequent final rule based on the proposed rule. The EPA will not
institute a second comment period on the proposed rule. All parties
interested in commenting on the proposed rule should do so at this
time. If no such comments are received, the public is advised that this
rule will be effective on May 14, 2012 and no further action will be
taken on the proposed rule. Please note that if EPA receives adverse
comment on an amendment, paragraph, or section of this rule and if that
provision may be severed from the remainder of the rule, EPA may adopt
as final those provisions of the rule that are not the subject of an
adverse comment.
    In addition, Rhode Island was issued a finding a failure to submit
which started an 18 month sanctions clock and a 24 month Federal
Implementation Plan (FIP) clock. The 18 month sanctions clock was
stopped when Rhode Island submitted the SIP and EPA determined it
complete on May 30, 2008. The 24 month FIP clock will stop upon the
effective date of our final approval, May 14, 2012.

V. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act.
Accordingly, this action merely approves state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).

In addition, this rule does not have tribal implications as specified
by Executive Order 13175 (65 FR 67249, November 9, 2000), because the
SIP is not approved to apply in Indian country located in the state,
and EPA notes that it will not impose substantial direct costs on
tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by May 14, 2012. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed, and shall not postpone the effectiveness
of such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Ozone, Reporting and
recordkeeping requirements, Volatile organic compounds.

    Dated: February 9, 2012.
H. Curtis Spalding,
Regional Administrator, EPA New England.
    Part 52 of chapter I, title 40 of the Code of Federal Regulations
is amended as follows:

PART 52--[AMENDED]

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

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

0
2. In Sec.  52.2070:
0
a. Table (c) is amended by adding one new entry (APC General
Definitions Regulation) at the beginning of the table, and revising
existing entries for Air Pollution Control Regulation Nos. 25, 31, 33,
and 36; and
0
b. Table (e) is amended by adding two new entries at the end of the
table.
    The additions and revisions read as follows:

Sec.  52.2070  Identification of plan.

* * * * *
    (c) EPA approved regulations.

                                      EPA-Approved Rhode Island Regulations
----------------------------------------------------------------------------------------------------------------
                                                          State
         State citation             Title/subject    effective date   EPA approval date        Explanations
----------------------------------------------------------------------------------------------------------------
Air Pollution Control General    General                  9/29/2010  3/13/2012 [Insert   .......................
 Definitions Regulation.          Definitions.                        Federal Register
                                                                      page number where
                                                                      the document
                                                                      begins].

                                                  * * * * * * *
Air Pollution Control            Control of VOC          11/12/2009  3/13/2012 [Insert   All of No. 25 is
 Regulation 25.                   Emissions from                      Federal Register    approved with the
                                  Cutback and                         page number where   exception of Section
                                  Emulsified                          the document        25.2.3 which the state
                                  Asphalt.                            begins].            did not submit as part
                                                                                of the SIP revision.

                                                  * * * * * * *
Air Pollution Control            Control of VOCs           6/4/2009  3/13/2012 [Insert   All of No. 31 is
 Regulation 31.                   from Commercial                     Federal Register    approved with the
                                  and Consumer                        page number where   exception of Sections
                                  Products.                           the document        31.2.3 through 31.2.5
                                                                      begins].            which deal with
                                                                                exemptions to the
                                                                                general provisions of
                                                                                the rule and were
                                                                                withdrawn by the state
                                                                                from consideration as
                                                                                part of the SIP
                                                                                revision.

                                                  * * * * * * *
Air Pollution Control            Control of VOCs           6/4/2009  3/13/2012 [Insert   .......................
 Regulation 33.                   from                                Federal Register
                                  Architectural                       page number where
                                  Coatings and                        the document
                                  Industrial                          begins].
                                  Maintenance
                                  Coatings.

                                                  * * * * * * *
Air Pollution Control            Control of               10/9/2008  3/13/2012 [Insert   Revised to incorporate
 Regulation 36.                   Emissions from                      Federal Register    solvent vapor pressure
                                  Organic Solvent                     page number where   limit of 1.0 mm Hg to
                                  Cleaning.                           the document        meet 8-hour ozone
                                                                      begins].            RACT. All of No. 36 is
                                                                                approved with the
                                                                                exception of Section
                                                                                36.2.2 which the state
                                                                                did not submit as part
                                                                                of the SIP revision.

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

* * * * *
    (e) Nonregulatory.

                                           Rhode Island Non Regulatory
----------------------------------------------------------------------------------------------------------------
                                     Applicable
   Name of nonregulatory SIP       geographic or     State submittal
           provision               nonattainment      date/effective   EPA approved date       Explanations
                                        area               date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
RACT Demonstration included in   Statewide........  Submitted 04/30/   3/13/2012 [Insert  ......................
 Chapter 6 of the Rhode Island                       2008.              Federal Register
 Attainment Plan for the 8-Hour                                         page number
 Ozone National Ambient Air                                             where the
 Quality Standard.                                                      document begins].
Negative declarations included   Statewide........  Submitted 04/30/   3/13/2012 [Insert  Includes negative
 in the Rhode Island Attainment                      2008.              Federal Register   declarations for the
 Plan for the 8-Hour Ozone                                              page number        following Control
 National Ambient Air Quality                                           where the          Techniques Guideline
 Standard.                                                              document begins].  Categories: Refinery
                                                                                Vacuum Producing
                                                                                Systems, Wastewater
                                                                                Separators, and
                                                                                Process Unit
                                                                                Turnarounds (1977);
                                                                                Leaks from Petroleum
                                                                                Refinery Equipment
                                                                                (1978); Manufacture
                                                                                of Pneumatic Rubber
                                                                                Tires (1978); Large
                                                                                Petroleum Dry
                                                                                Cleaners (1982);
                                                                                Manufacture of High-
                                                                                Density Polyethylene,
                                                                                Polypropylene and
                                                                                Polystyrene Resins
                                                                                (1983); Synthetic
                                                                                Organic Chemical Mfg
                                                                                Equipment Fugitive
                                                                                Emissions (1984);
                                                                                Synthetic Organic
                                                                                Chemical Mfg Air
                                                                                Oxidation Processes
                                                                                (1984).
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2012-5762 Filed 3-12-12; 8:45 am]
BILLING CODE 6560-50-P


Served: November 15, 2007

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 15th of November, 2007

INTRA-ALASKA MAINLINE

SERVICE MAIL RATES

Docket OST-2003-14695

(Docket OST-95-429)

NOTICE

Order 2007-8-26, served August 27, 2007, tentatively set new
intra-Alaska mainline mail rates effective September 29, 2007, through
September 26, 2008, and provided for objections by September 17, 2007.
On September 21, 2007, Order 2007-9-23 made the rates tentatively set by
Order 2007-8-26 final until further Department action, and in the
interest of fully developing the record before issuing a final order,
requested comments.  The United States Postal Service and Alaska
Airlines, Inc., responded on October 1, 2007.

On October 19, 2007, NAC filed certain documents for which it seeks
confidential treatment.  We received no comments other than from these
three parties.  Under 14 C.F.R. § 302.12 (Rule 12) of the
Department’s regulations, parties may seek confidential treatment for
supporting documents and information.  NAC requested confidential
treatment of its filing, without making specific reference to Rule 12.
Nonetheless, we will apply the provisions of Rule 12 to the treatment of
those documents.  In order to afford interested parties access to the
documents we will grant interim access to those documents to parties
covered by NAC’s Rule 12 Motion, i.e., to the counsel and outside
experts of the three parties who have responded to our request for
comments, Alaska Airlines, NAC, and the Postal Service, provided that
they file appropriate affidavits with the Department in advance.  We
also find it appropriate to grant interim access to any subsequent
materials that may be filed in this case under a Rule 12 Motion to
counsel and outside experts for interested parties who file appropriate
affidavits with the Department in advance, unless the party filing the
Motion objects.

We expect all affidavits to state, at a minimum, that (1) the affiant is
counsel for an interested party in the proceeding or an outside
independent expert providing services to that party; (2) the affiant
will use the information only for the purpose of participating in this
proceeding; and (3) the affiant will disclose such information only to
other persons who have filed a valid affidavit in
Docket OST-2003-14695.  Affiants and interested parties must understand
and agree that any pleading or other filing that includes or discusses
information contained in the covered documents must itself be
accompanied by a Rule 12 Motion requesting confidential treatment.
Affidavits must be filed in Docket OST-2003-14695 with the Department
of Transportation, Dockets, Room W12-140, 1200 New Jersey Avenue, SE,
Washington, D.C. 20590.

Affiants having filed affidavits may examine the documents at the
Department of Transportation at the Dockets location.  Affiants must
present a stamped copy of the affidavit filed with the Department of
Transportation before examination of the documents.  After a final order
has been issued for this rate year, all persons who filed
confidentiality affidavits in this proceeding are hereby directed to
file a further affidavit stating that all copies of the applicant’s
confidential materials have been destroyed or returned to the applicant.

Any comments from Parties to the proceeding concerning this information
are to be filed by November 27, 2007.

We shall serve this notice on all persons on the service list for this
docket.

By:

MICHAEL W. REYNOLDS

Deputy Assistant Secretary for Aviation

   and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide
Web at

  HYPERLINK "http://www.regulations.gov"  http://www.regulations.gov

To search for a Docket in the FDMS, click on the link above.  Then from
the Home Page...

Scroll to Search Documents

Under Step #1, select All Documents

Skip to Optional Step #4, Select “Docket ID”

Under “Category,” enter the Docket Number, DOT-OST-2003-14695

Click: “Exact Phrase”

Then click: Submit

 We will rule on the merits of the Rule 12 motions by subsequent order.

- PAGE 2 -


[Federal Register Volume 76, Number 30 (Monday, February 14, 2011)]
[Rules and Regulations]
[Pages 8288-8291]
[FR Doc No: 2011-3000]

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

DEPARTMENT OF TRANSPORTATION

14 CFR Part 97

[Docket No. 30768; Amdt. No. 3413]

Standard Instrument Approach Procedures, and Takeoff Minimums and
Obstacle Departure Procedures; Miscellaneous Amendments

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This rule establishes, amends, suspends, or revokes Standard
Instrument Approach Procedures (SIAPs) and associated Takeoff Minimums
and Obstacle Departure Procedures for operations at certain airports.
These regulatory actions are needed because of the adoption of new or
revised criteria, or because of changes occurring in the National
Airspace System, such as the commissioning of new navigational
facilities, adding new obstacles, or changing air traffic requirements.
These changes are designed to provide safe and efficient use of the
navigable airspace and to promote safe flight operations under
instrument flight rules at the affected airports.

DATES: This rule is effective February 14, 2011. The compliance date
for each SIAP, associated Takeoff Minimums, and ODP is specified in the
amendatory provisions.
    The incorporation by reference of certain publications listed in
the regulations is approved by the Director of the Federal Register as
of February 14, 2011.

ADDRESSES: Availability of matter incorporated by reference in the
amendment is as follows:
    For Examination--
    1. FAA Rules Docket, FAA Headquarters Building, 800 Independence
Avenue, SW., Washington, DC 20591;
    2. The FAA Regional Office of the region in which the affected
airport is located;
    3. The National Flight Procedures Office, 6500 South MacArthur
Blvd., Oklahoma City, OK 73169 or
    4. The National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, call 202-741-
6030, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
    Availability_All SIAPs are available online free of charge. Visit
nfdc.faa.gov to register. Additionally, individual SIAP and Takeoff
Minimums and ODP copies may be obtained from:

    1. FAA Public Inquiry Center (APA-200), FAA Headquarters Building,
800 Independence Avenue, SW., Washington, DC 20591; or
    2. The FAA Regional Office of the region in which the affected
airport is located.

FOR FURTHER INFORMATION CONTACT: Harry J. Hodges, Flight Procedure
Standards Branch (AFS-420) Flight Technologies and Programs Division,
Flight Standards Service, Federal Aviation Administration, Mike
Monroney Aeronautical Center, 6500 South MacArthur Blvd., Oklahoma
City, OK 73169 (Mail Address: P.O. Box 25082 Oklahoma City, OK 73125)
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: This rule amends Title 14, Code of Federal
Regulations, part 97 (14 CFR part 97) by amending the referenced SIAPs.
The complete regulatory description of each SIAP is listed on the
appropriate FAA Form 8260, as modified by the National Flight Data
Center (FDC)/Permanent Notice to Airmen (P-NOTAM), and is incorporated
by reference in the amendment under 5 U.S.C. 552(a), 1 CFR part 51, and
Sec.  97.20 of Title 14 of the Code of Federal Regulations.
    The large number of SIAPs, their complex nature, and the need for a
special format make their verbatim publication in the Federal Register
expensive and impractical. Further, airmen do not use the regulatory
text of the SIAPs, but refer to their graphic depiction on charts
printed by publishers of aeronautical materials. Thus, the advantages
of incorporation by reference are realized and publication of the
complete description of each SIAP contained in FAA form documents is
unnecessary. This amendment provides the affected CFR sections and
specifies the types of SIAP and the corresponding effective dates. This
amendment also identifies the airport and its location, the procedure
and the amendment number.

The Rule

    This amendment to 14 CFR part 97 is effective upon publication of
each separate SIAP as amended in the transmittal. For safety and
timeliness of change considerations, this amendment incorporates only
specific changes contained for each SIAP as modified by FDC/P-NOTAMs.
    The SIAPs, as modified by FDC P-NOTAM, and contained in this
amendment are based on the criteria contained in the U.S. Standard for
Terminal Instrument Procedures (TERPS). In developing these changes to
SIAPs, the TERPS criteria were applied only to specific conditions
existing at the affected airports. All SIAP amendments in this rule
have been previously issued by the FAA in a FDC NOTAM as an emergency
action of immediate flight safety relating directly to published
aeronautical charts. The circumstances which created the need for all
these SIAP amendments requires making them effective in less than 30
days.
    Because of the close and immediate relationship between these SIAPs
and safety in air commerce, I find that notice and public procedure
before adopting these SIAPs are impracticable and contrary to the
public interest and, where applicable, that good cause exists for
making these SIAPs effective in less than 30 days.

Conclusion

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. For the same reason, the FAA
certifies that this amendment will not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 97

    Air Traffic Control, Airports, Incorporation by reference, and
Navigation (Air).

    Issued in Washington, DC on February 4, 2011.
John McGraw,
Deputy Director, Flight Standards Service.

Adoption of the Amendment

    Accordingly, pursuant to the authority delegated to me, Title 14,
Code of Federal Regulations, part 97, 14 CFR part 97, is amended by
amending Standard Instrument Approach Procedures, effective at 0901 UTC
on the dates specified, as follows:

PART 97--STANDARD INSTRUMENT APPROACH PROCEDURES

0
1. The authority citation for part 97 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40103, 40106, 40113, 40114, 40120,
44502, 44514, 44701, 44719, 44721-44722.

0
2. Part 97 is amended to read as follows:

Sec. Sec.  97.23, 97.25, 97.27, 97.29, 97.31, 97.33, and
97.35  [Amended]

    By amending: Sec.  97.23 VOR, VOR/DME, VOR or TACAN, and VOR/DME or
TACAN; Sec.  97.25 LOC, LOC/DME, LDA, LDA/DME, SDF, SDF/DME; Sec.
97.27 NDB, NDB/DME; Sec.  97.29 ILS, ILS/DME, MLS, MLS/DME, MLS/RNAV;
Sec.  97.31 RADAR SIAPs; Sec.  97.33 RNAV SIAPs; and Sec.  97.35 COPTER
SIAPs, Identified as follows:

* * * Effective Upon Publication

--------------------------------------------------------------------------------------------------------------------------------------------------------
      AIRAC date           State              City                 Airport          FDC No.      FDC date                      Subject
--------------------------------------------------------------------------------------------------------------------------------------------------------
10-Mar-11............  AR             Little Rock.........  Adams Field.........       0/2077      1/26/11  RADAR-1, Amdt 17
10-Mar-11............  AR             Little Rock.........  Adams Field.........       0/2078      1/26/11  ILS OR LOC RWY 22R, Amdt 2
10-Mar-11............  AR             Little Rock.........  Adams Field.........       0/2079      1/26/11  VOR A, Orig-B
10-Mar-11............  AR             Little Rock.........  Adams Field.........       0/2080      1/26/11  ILS OR LOC RWY 4R, Amdt 2
10-Mar-11............  AR             Little Rock.........  Adams Field.........       0/2081      1/26/11  ILS OR LOC RWY 22L, Orig
10-Mar-11............  AR             Little Rock.........  Adams Field.........       0/2084      1/26/11  ILS OR LOC RWY 4L, Amdt 25C
10-Mar-11............  IN             Terre Haute.........  Terre Haute Intl--         0/3721       1/5/11  RNAV (GPS) RWY 14, Orig-A
                                                             Hulman Field.
10-Mar-11............  IN             Terre Haute.........  Terre Haute Intl--         0/3722       1/5/11  RNAV (GPS) RWY 5, Orig
                                                             Hulman Field.
10-Mar-11............  IN             Terre Haute.........  Terre Haute Intl--         0/3723       1/5/11  LOC BC RWY 23, Amdt 19
                                                             Hulman Field.
10-Mar-11............  IN             Terre Haute.........  Terre Haute Intl--         0/3724       1/5/11  VOR RWY 23, Amdt 20A
                                                             Hulman Field.
10-Mar-11............  IN             Terre Haute.........  Terre Haute Intl--         0/3725       1/5/11  ILS OR LOC RWY 5, Amdt 22E
                                                             Hulman Field.

10-Mar-11............  IN             Terre Haute.........  Terre Haute Intl--         0/3726       1/5/11  RNAV (GPS) RWY 32, Orig-A
                                                             Hulman Field.
10-Mar-11............  IN             Terre Haute.........  Terre Haute Intl--         0/3727       1/5/11  RADAR-1, Amdt 4
                                                             Hulman Field.
10-Mar-11............  IN             Terre Haute.........  Terre Haute Intl--         0/3729       1/5/11  RNAV (GPS) RWY 23, Orig
                                                             Hulman Field.
10-Mar-11............  MN             Rochester...........  Rochester Intl......       0/3831       1/3/11  ILS OR LOC RWY 31, Amdt 22
10-Mar-11............  MA             Provincetown........  Provincetown Muni...       1/0137       1/4/11  RNAV (GPS) RWY 7, Orig-B
10-Mar-11............  GA             Atlanta.............  Hartsfield-Jackson         1/0138       1/4/11  ILS PRM RWY 27R (Sim. Close Parallel), Orig
                                                             Atlanta Intl.
10-Mar-11............  WV             Petersburg..........  Grant County........       1/0140       1/4/11  GPS RWY 31, Amdt 1
10-Mar-11............  FL             Orlando.............  Orlando Intl........       1/0142       1/4/11  ILS OR LOC RWY 35L, ILS RWY 35L (CAT II),
                                                                                ILS RWY 35L (CAT III), Amdt 6
10-Mar-11............  TN             Memphis.............  Memphis Intl........       1/0148       1/4/11  ILS OR LOC RWY 27, Amdt 3
10-Mar-11............  TN             Memphis.............  Memphis Intl........       1/0149       1/4/11  ILS OR LOC RWY 9, Amdt 27
10-Mar-11............  TN             Memphis.............  Memphis Intl........       1/0150       1/4/11  ILS OR LOC RWY 18L, Amdt 2
10-Mar-11............  TN             Memphis.............  Memphis Intl........       1/0178       1/6/11  ILS OR LOC RWY 36C, ILS RWY 36C (CAT II),
                                                                                ILS RWY 36C (CAT III), Amdt 3
10-Mar-11............  TN             Memphis.............  Memphis Intl........       1/0179       1/6/11  ILS OR LOC RWY 36L, ILS RWY 36L (CAT II),
                                                                                ILS RWY 36L (CAT III), Amdt 14
10-Mar-11............  TN             Memphis.............  Memphis Intl........       1/0180       1/6/11  ILS OR LOC RWY 36R, ILS RWY 36R (CAT II),
                                                                                ILS RWY 36R (CAT III), Amdt 3
10-Mar-11............  WI             Oshkosh.............  Wittman Rgnl........       1/0188       1/4/11  RNAV (GPS) RWY 36, Amdt 1D
10-Mar-11............  WI             Oshkosh.............  Wittman Rgnl........       1/0189       1/4/11  ILS OR LOC RWY 36, Amdt 6D
10-Mar-11............  WI             Oshkosh.............  Wittman Rgnl........       1/0190       1/4/11  NDB RWY 36, Amdt 5C
10-Mar-11............  WI             Oshkosh.............  Wittman Rgnl........       1/0191       1/4/11  VOR RWY 36, Amdt 16B
10-Mar-11............  WI             Oshkosh.............  Wittman Rgnl........       1/0192       1/4/11  VOR RWY 27, Amdt 4B
10-Mar-11............  WI             Oshkosh.............  Wittman Rgnl........       1/0193       1/4/11  LOC/DME BC RWY 18, Amdt 6B
10-Mar-11............  AR             De Queen............  J Lynn Helms Sevier        1/0559       1/7/11  RNAV (GPS) RWY 8, Orig
                                                             County.
10-Mar-11............  SD             Sioux Falls.........  Joe Foss Field......       1/0728      1/18/11  RNAV (GPS) RWY 21, Orig-B
10-Mar-11............  SD             Sioux Falls.........  Joe Foss Field......       1/0735      1/18/11  VOR/DME OR TACAN RWY 33, Amdt 12A
10-Mar-11............  AR             De Queen............  J Lynn Helms Sevier        1/0739      1/10/11  Takeoff Minimums and Obstacle DP, Amdt 1
                                                             County.
10-Mar-11............  MO             Trenton.............  Trenton Muni........       1/0740      1/18/11  NDB RWY 36, Amdt 9A
10-Mar-11............  AR             Paragould...........  Kirk Field..........       1/0742      1/10/11  NDB RWY 22, Amdt 1
10-Mar-11............  WI             Wausau..............  Wausau Downtown.....       1/0747      1/10/11  RNAV (GPS) RWY 12, Orig
10-Mar-11............  AR             Heber Springs.......  Heber Springs Muni..       1/0749      1/18/11  RNAV (GPS) RWY 23, Orig
10-Mar-11............  WI             Wausau..............  Wausau Downtown.....       1/0750      1/10/11  NDB OR GPS B, Orig
10-Mar-11............  IL             Chicago.............  Chicago-O'Hare Intl.       1/0754      1/10/11  ILS OR LOC RWY 22L, Amdt 4H
10-Mar-11............  WI             Marshfield..........  Marshfield Muni.....       1/0755      1/26/11  NDB RWY 16, Amdt 9A
10-Mar-11............  NE             Lincoln.............  Lincoln.............       1/0789      1/10/11  ILS OR LOC RWY 18, Amdt 6E
10-Mar-11............  NE             Lincoln.............  Lincoln.............       1/0790      1/10/11  RNAV (GPS) RWY 14, Orig
10-Mar-11............  AL             Tuscaloosa..........  Tuscaloosa Rgnl.....       1/0841      1/18/11  Takeoff Minimums and Obstacle DP, Amdt 2
10-Mar-11............  WI             Marshfield..........  Marshfield Muni.....       1/0912      1/26/11  NDB OR GPS RWY 4, Amdt 13A
10-Mar-11............  AR             Rogers..............  Rogers Muni-Carter         1/0913      1/26/11  Takeoff Minimums and Obstacle DP, Orig
                                                             Field.
10-Mar-11............  AR             Texarkana...........  Texarkana Rgnl-Webb        1/0914      1/19/11  RNAV (GPS) RWY 31, Orig-A
                                                             Field.
10-Mar-11............  IN             New Castle..........  New Castle-Henry Co        1/0915      1/19/11  NDB OR GPS RWY 9, Amdt 5A
                                                             Muni.
10-Mar-11............  IN             New Castle..........  New Castle-Henry Co        1/0916      1/19/11  NDB RWY 27, Amdt 5
                                                             Muni.
10-Mar-11............  IL             Urbana..............  Frasca Field........       1/1096      1/18/11  VOR/DME OR GPS B, Amdt 6
10-Mar-11............  IL             Urbana..............  Frasca Field........       1/1097      1/18/11  VOR OR GPS A, Amdt 11
10-Mar-11............  VA             Franklin............  Franklin Muni-John         1/1120      1/18/11  RNAV (GPS) RWY 9, Orig
                                                             Beverly Rose.
10-Mar-11............  VA             Franklin............  Franklin Muni-John         1/1121      1/18/11  VOR RWY 9, Amdt 14B
                                                             Beverly Rose.
10-Mar-11............  VA             Franklin............  Franklin Muni-John         1/1122      1/18/11  VOR/DME RWY 27, Amdt 9E
                                                             Beverly Rose.
10-Mar-11............  VA             Franklin............  Franklin Muni-John         1/1123      1/18/11  RNAV (GPS) RWY 27, Orig-A
                                                             Beverly Rose.
10-Mar-11............  GA             Hampton.............  Clayton County--Tara       1/1176      1/14/11  RNAV (GPS) RWY 6, Orig
                                                             Field.
10-Mar-11............  IA             Webster City........  Webster City Muni...       1/1309      1/18/11  VOR/DME OR GPS RWY 14, Amdt 4
10-Mar-11............  WI             Hayward.............  Sawyer County.......       1/1310      1/18/11  RNAV (GPS) RWY 2, Orig-A
10-Mar-11............  IA             Hampton.............  Hampton Muni........       1/1312      1/18/11  Takeoff Minimums and Obstacle DP, Amdt 3
10-Mar-11............  IA             Hampton.............  Hampton Muni........       1/1313      1/18/11  VOR/DME RWY 35, Amdt 1B
10-Mar-11............  IA             Hampton.............  Hampton Muni........       1/1314      1/18/11  RNAV (GPS) RWY 35, Orig
10-Mar-11............  IA             Hampton.............  Hampton Muni........       1/1315      1/18/11  RNAV (GPS) RWY 17, Orig

10-Mar-11............  IA             Hampton.............  Hampton Muni........       1/1316      1/18/11  NDB RWY 17, Amdt 4A
10-Mar-11............  IL             Centralia...........  Centralia Muni......       1/1318      1/18/11  RNAV (GPS) RWY 36, Orig
10-Mar-11............  IL             Centralia...........  Centralia Muni......       1/1322      1/18/11  RNAV (GPS) RWY 18, Orig
10-Mar-11............  NE             Scottsbluff.........  Western Neb. Rgnl/         1/1358      1/19/11  ILS OR LOC/DME RWY 12, Orig
                                                             William B. Heilig
                                                             Field.
10-Mar-11............  NE             Crete...............  Crete Muni..........       1/1437      1/18/11  VOR/DME RWY 35, Amdt 3B
10-Mar-11............  MI             Lakeview............  Lakeview Airport--         1/1547      1/18/11  GPS RWY 27, Orig
                                                             Griffith Field.
10-Mar-11............  MI             Lakeview............  Lakeview Airport--         1/1550      1/18/11  GPS RWY 9, Orig
                                                             Griffith Field.
10-Mar-11............  VA             Warrenton...........  Warrenton-Fauquier..       1/1693      1/14/11  RNAV (GPS) RWY 15, Orig
10-Mar-11............  VA             Warrenton...........  Warrenton-Fauquier..       1/1694      1/14/11  VOR RWY 15, Amdt 4
10-Mar-11............  TN             Memphis.............  Memphis Intl........       1/1695      1/14/11  RNAV (GPS) RWY 36C, Amdt 1
10-Mar-11............  NC             Oak Island..........  Brunswick County....       1/1790      1/14/11  Takeoff Minimums and Obstacle DP, Orig
10-Mar-11............  FL             Brooksville.........  Hernando County.....       1/1798      1/19/11  ILS RWY 9, Amdt 2A
10-Mar-11............  FL             St. Petersburg......  Albert Whitted......       1/1879      1/14/11  RNAV (GPS) RWY 18, Orig-A
10-Mar-11............  OH             Hillsboro...........  Highland County.....       1/1889      1/14/11  NDB OR GPS RWY 23, Amdt 4
10-Mar-11............  LA             Bastrop.............  Morehouse Memorial..       1/1893      1/18/11  NDB RWY 34, Amdt 6A
10-Mar-11............  LA             Bastrop.............  Morehouse Memorial..       1/1896      1/18/11  VOR/DME A, Amdt 9A
10-Mar-11............  NJ             Woodbine............  Woodbine Muni.......       1/1912      1/14/11  RNAV (GPS) RWY 1, Orig
10-Mar-11............  RI             Providence..........  Theodore Francis           1/1935      1/18/11  RNAV (GPS) RWY 34, Orig-C
                                                             Green State.
10-Mar-11............  NJ             Trenton.............  Trenton Mercer......       1/1936      1/18/11  VOR OR GPS RWY 24, Amdt 4A
10-Mar-11............  TN             Springfield.........  Springfield                1/1938      1/18/11  Takeoff Minimums and Obstacle DP, Orig
                                                             Robertson County.
10-Mar-11............  NJ             Lincoln Park........  Lincoln Park........       1/1939      1/19/11  Takeoff Minimums and Obstacle DP, Orig
10-Mar-11............  TN             Smyrna..............  Smyrna..............       1/1942      1/18/11  ILS RWY 32. Amdt 5B
10-Mar-11............  FL             Lakeland............  Lakeland Linder Rgnl       1/1974      1/18/11  VOR RWY 27, Amdt 7A
10-Mar-11............  FL             Lakeland............  Lakeland Linder Rgnl       1/1975      1/18/11  VOR RWY 9, Amdt 4
10-Mar-11............  FL             Lakeland............  Lakeland Linder Rgnl       1/1977      1/18/11  NDB RWY 5, Amdt 4A
10-Mar-11............  FL             Lakeland............  Lakeland Linder Rgnl       1/1978      1/18/11  ILS OR LOC RWY 5, Amdt 7A
10-Mar-11............  MI             Traverse City.......  Cherry Capital......       1/2194      1/18/11  GPS RWY 36, Orig-A
10-Mar-11............  IN             Indianapolis........  Indianapolis Intl...       1/2195      1/19/11  ILS OR LOC RWY 5L, ILS OR LOC RWY 5L (CAT
                                                                                II), ILS OR LOC RWY 5L (CAT III), Amdt 3A
10-Mar-11............  IL             Chicago.............  Chicago-O'Hare Intl.       1/2497      1/26/11  RNAV (GPS) RWY 14L, Amdt 1B
10-Mar-11............  IL             Chicago.............  Chicago-O'Hare Intl.       1/2499      1/26/11  RNAV (GPS) RWY 28, Amdt 2A
10-Mar-11............  IL             Chicago.............  Chicago-O'Hare Intl.       1/2500      1/26/11  ILS OR LOC RWY 14L, ILS RWY 14L (CAT II),
                                                                                ILS RWY 14L (CAT III), Amdt 29B
10-Mar-11............  PA             Allentown...........  Lehigh Valley Intl..       1/2602      1/19/11  RNAV (GPS) RWY 31, Amdt 1A
10-Mar-11............  VA             Richmond/Ashland....  Hanover County Muni.       1/2664      1/26/11  RNAV (GPS) RWY 16, Orig
10-Mar-11............  KY             Campbellsville......  Taylor County.......       1/2665      1/26/11  SDF RWY 23, Amdt 2A
10-Mar-11............  KY             Campbellsville......  Taylor County.......       1/2667      1/26/11  NDB OR GPS RWY 23, Amdt 3A
10-Mar-11............  TN             Memphis.............  Memphis Intl........       1/2724      1/26/11  RNAV (GPS) RWY 36L, Amdt 1
10-Mar-11............  FL             Fort Lauderdale.....  Fort Lauderdale/           1/2726      1/26/11  ILS OR LOC RWY 27R, Amdt 9
                                                             Hollywood Intl.
10-Mar-11............  AL             Huntsville..........  Madison County             1/2727      1/26/11  Takeoff Minimums and Obstacle DP, Amdt 3
                                                             Executive/Tom Sharp
                                                             Jr. Fld.
10-Mar-11............  GA             Atlanta.............  Newnan Coweta County       1/2746      1/26/11  Takeoff Minimums and Obstacle DP, Amdt 3A
10-Mar-11............  FL             Venice..............  Venice Muni.........       1/2764      1/26/11  NDB RWY 31, Amdt 2
10-Mar-11............  ME             Portland............  Portland Intl              1/2971      1/26/11  RNAV (GPS) RWY 36, Orig-B
                                                             Jetport.
10-Mar-11............  OR             John Day............  Grant Co. Rgnl/            1/3435      1/26/11  RNAV (GPS) Y RWY 9, Orig
                                                             Ogilvie Field.
10-Mar-11............  KY             Monticello..........  Wayne County........       1/3700      1/26/11  GPS RWY 21, Orig
10-Mar-11............  KY             Monticello..........  Wayne County........       1/3702      1/26/11  GPS RWY 3, Orig
--------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. 2011-3000 Filed 2-11-11; 8:45 am]
BILLING CODE 4910-13-P


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[Federal Register Volume 80, Number 138 (Monday, July 20, 2015)]
[Notices]
[Pages 42857-42859]
[FR Doc No: 2015-17715]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. IA-4140/803-00219]

Crescent Capital Group, LP; Notice of Application

July 14, 2015.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of application for an exemptive order under Section 206A
of the Investment Advisers Act of 1940 (the ``Advisers Act'') and Rule
206(4)-5(e) thereunder.

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Applicant: Crescent Capital Group, LP (``Applicant'').

Relevant Advisers Act Sections: Exemption requested under Section 206A
of the Advisers Act and Rule 206(4)-5(e) thereunder from Rule 206(4)-
5(a)(1) under the Advisers Act.

Summary of Application: Applicant requests that the Commission issue an
order under Section 206A of the Advisers Act and Rule 206(4)-5(e)
thereunder exempting Applicant from Rule 206(4)-5(a)(1) under the
Advisers Act to permit Applicant to receive compensation from a
government entity client for investment advisory services provided to
the government entity within the two-year period following a
contribution by a covered associate of Applicant to an official of the
government entity.

Filing Dates: The application was filed on October 31, 2013, and an
amended and restated application was filed on March 12, 2015.

Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving Applicant with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on August 10, 2015, and should be accompanied by proof of

service on Applicant, in the form of an affidavit or, for lawyers, a
certificate of service. Pursuant to Rule 0-5 under the Advisers Act,
hearing requests should state the nature of the writer's interest, any
facts bearing upon the desirability of a hearing on the matter, the
reason for the request, and the issues contested. Persons may request
notification of a hearing by writing to the Commission's Secretary.

Addresses: Brent J. Fields, Secretary, Securities and Exchange
Commission, 100 F Street NE., Washington, DC 20549-1090. Applicant,
Crescent Capital Group, LP, c/o George Hawley, Esq., 1100 Santa Monica
Boulevard, Suite 2000, Los Angeles, CA 90025.

For Further Information Contact: Kyle R. Ahlgren, Senior Counsel, or
Holly L. Hunter-Ceci, Branch Chief, at<PHONE_NUMBER> (Division of
Investment Management, Chief Counsel's Office).

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

Applicant's Representations

    1. Applicant is registered with the Commission as an investment
adviser under the Advisers Act. Applicant provides investment advisory
services to two private equity funds formed in 2006 and 2008, TCW/
Crescent Mezzanine Partners IV, L.P. (``Fund IV'') and TCW/Crescent
Mezzanine Partners V, L.P. (``Fund V'', and together with Fund IV, the
``Funds''), as well as additional funds. The Funds are ``covered
investment pools'' as defined in Rule 206(4)-5(f)(3)(ii) under the
Advisers Act that make long-term investments in private companies and
other illiquid assets.
    2. Mr. Jean Marc Chapus (the ``Contributor'') is a managing partner
of Applicant. The Contributor is, and was at all relevant times, a
``covered associate'' of Applicant as that term is defined in Rule
206(4)-5(f)(2). The Contributor frequently has been solicited for, and
has made, political contributions in the past.
    3. The Los Angeles City Employees' Retirement System (the ``Plan'')
falls within the definition of a ``government entity'' as that term is
defined in Rule 206(4)-5(f)(5)(iii). The Plan invested in the Funds in
2006 and 2008, (for Fund IV and Fund V, respectively) and each Fund has
been closed to new investors since that time. Under the terms of the
governing documents of the Funds, investors, including the Plan, are
not permitted to withdraw their investments, except under extraordinary
circumstances that are beyond the control of either Applicant or the
Plan, for a period of ten years following the date of the investment
(2016 or 2018 for Fund IV and Fund V, respectively). Applicant's fees
were established at the inception of the Funds and are not subject to
renegotiation during the term of the investment.
    4. In June 2011, an individual known to the Contributor, but
unrelated to Applicant, contacted him directly and requested a
contribution to the campaign of Mr. Austin Beutner (the ``Recipient''),
a candidate for the office of Mayor of Los Angeles (the ``Office'').
The Office is entitled to appoint members of the Plan's Board of
Administration who can influence the selection of investment advisers
for the Plan and other related public pension plans. On June 10, 2011,
the Contributor made a contribution of $1,000 (the ``Contribution'') to
the Austin Beutner for Los Angeles Mayor 2013 Exploratory Committee
(the ``Committee''). At the time of the Contribution, each of the
Committee and the Recipient was an ``official'' for purposes of Rule
206(4)-5(f)(6). The Recipient withdrew from the campaign prior to the
election.
    5. At the time of the Contribution, there was no discussion of the
Office's appointment powers, influence or responsibilities involving
any investment of public pension funds. Neither Applicant nor the
Contributor sought to interfere with the Plan's merit-based selection
process for advisory services, nor did they seek to negotiate higher
fees or greater ancillary benefits than would be achieved in an arm's
length transactions, nor could they have, as the selections pre-dated
the Contribution. Applicant had an existing relationship with the Plan
at the time of the Contribution, but did not engage in any new sales
efforts involving limited partnership interests in the Funds, including
any efforts designed to retain the investments in the Funds or to
renegotiate its fees.
    6. Applicant first became aware of the Contribution one month
following the date it was made when, in July 2011, as a result of a
quarterly survey of political contributions conducted by Applicant's
compliance department pursuant to Applicant's contribution policies and
procedures, the Contribution was self-reported by the Contributor. Upon
learning of the Contribution, Applicant's chief compliance officer,
with the cooperation of the Contributor, promptly contacted the
Committee, which returned the Contribution shortly thereafter. At the
same time, Applicant created an escrow account to custody advisory fees
for the Funds that were attributable to the Plan. The fees that
Applicant otherwise would have earned during the two-year period
following the Contribution (the ``Time Out Period'') remain in the
escrow account.
    7. At the time of the Contribution, Applicant had developed written
policies and procedures to assure compliance with Rule 206(4)-5. The
policies and procedures included a requirement for pre-clearance of all
political contributions and provided for quarterly surveys of all
covered associates. Such policies and procedures were designed, among
other things, to assure that any unreported political contributions
were detected by Applicant's compliance department in a timely fashion.
    8. At the time of the Contribution, communication from the
Committee, as well as the Committee's Web site and other published
information, referred consistently to its ``exploratory'' nature.\1\
While the Contributor had received compliance training, he did not
consider whether Rule 206(4)-5 and Applicant's pre-clearance
requirement would have applied to contributions made to exploratory
committees. The Contributor therefore did not pre-clear the
Contribution with Applicant as required under its policies.
---------------------------------------------------------------------------

    \1\ The Committee had in fact filed as a campaign committee with
the local election commission. Under Rule 206(4)-5(f)(6), the term
``official'' includes election committees.
---------------------------------------------------------------------------

    9. Subsequent to the Contribution, Applicant has enhanced its
training program by stressing the importance of its pre-clearance
requirement and has highlighted the fact that contributions to
exploratory and other political committees are subject to its pre-
clearance requirement, among other things.

Applicant's Legal Analysis

    1. Rule 206(4)-5(a)(1) under the Advisers Act prohibits a
registered investment adviser from providing investment advisory
services for compensation to a government entity within two years after
a contribution to an official of the government entity is made by the
investment adviser or any covered associate of the investment adviser.
The Plan is a ``government entity,'' as defined in Rule 206(4)-5(f)(5),
the Contributor is a ``covered associate'' as defined in Rule 206(4)-
5(f)(2), and each of the Committee and the Recipient is an ``official''
as defined

in Rule 206(4)-5(f)(6). Rule 206(4)-5(c) provides that when a
government entity invests in a covered investment pool, the investment
adviser to that covered investment pool is treated as providing
advisory services directly to the government entity. The Funds are
``covered investment'' pools as defined in Rule 206(4)-5(f)(3)(ii).
    2. Section 206A of the Advisers Act grants the Commission the
authority to ``conditionally or unconditionally exempt any person or
transaction . . . from any provision or provisions of [the Advisers
Act] or of any rule or regulation thereunder, if and to the extent that
such exemption is necessary or appropriate in the public interest and
consistent with the protection of investors and the purposes fairly
intended by the policy and provisions of [the Advisers Act].''
    3. Rule 206(4)-5(e) provides that the Commission may exempt an
investment adviser from the prohibition under Rule 206(4)-5(a)(1) upon
consideration of the factors listed below, among others:
    (1) Whether the exemption is necessary or appropriate in the public
interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Advisers
Act;
    (2) Whether the investment adviser: (i) Before the contribution
resulting in the prohibition was made, adopted and implemented policies
and procedures reasonably designed to prevent violations of the rule;
and (ii) prior to or at the time the contribution which resulted in
such prohibition was made, had no actual knowledge of the contribution;
and (iii) after learning of the contribution: (A) Has taken all
available steps to cause the contributor involved in making the
contribution which resulted in such prohibition to obtain a return of
the contribution; and (B) has taken such other remedial or preventive
measures as may be appropriate under the circumstances;
    (3) Whether, at the time of the contribution, the contributor was a
covered associate or otherwise an employee of the investment adviser,
or was seeking such employment;
    (4) The timing and amount of the contribution which resulted in the
prohibition;
    (5) The nature of the election (e.g., federal, state or local); and
    (6) The contributor's apparent intent or motive in making the
contribution which resulted in the prohibition, as evidenced by the
facts and circumstances surrounding such contribution.
    4. Applicant requests an order pursuant to Section 206A and Rule
206(4)-5(e), exempting it from the two-year prohibition on compensation
imposed by Rule 206(4)-5(a)(1) with respect to investment advisory
services provided to the Funds within the two-year period following the
Contribution.
    5. Applicant submits that the exemption is necessary and
appropriate in the public interest and consistent with the protection
of investors and the purposes fairly intended by the policy and
provisions of the Act. Applicant further submits that the other factors
set forth in Rule 206(4)-5 similarly weigh in favor of granting an
exemption to Applicant to avoid consequences disproportionate to the
violation.
    6. Applicant states that the Plan first determined to invest in the
Funds before the Contribution was made, and established and maintained
its relationships with Applicant on an arm's length basis free from any
improper influence as a result of the Contribution. Applicant notes
that: (i) The Plan's most recent investment decision was made in 2008,
prior to the Contribution, at the time of its last investment
commitment in Fund V; and (ii) due to the committed nature of the
Plan's investment in the Funds, the Plan had no investment decision to
consider at the time of the Contribution.
    7. Applicant states that it had developed policies and procedures
to assure compliance with Rule 206(4)-5, which included a requirement
for pre-clearance of all political contributions and provided for
quarterly surveys of all covered associates, and that such quarterly
survey prompted the Contributor to report the Contribution. Applicant
further states that training was provided to Applicant's employees,
including the Contributor, that addressed Rule 206(4)-5 and Applicant's
policies and procedures.
    8. Applicant states that at no time did any employees of Applicant,
other than the Contributor, have any knowledge that the Contribution
had been made prior to its disclosure by the Contributor in July 2011.
    9. Applicant states that once the Contribution was discovered,
Applicant began to gather additional facts about the Contribution and
the Committee, and fees attributable to the Plan's investment in the
Funds were placed in escrow. Applicant further states that after
learning of the Contribution, Applicant took steps to limit the
Contributor's contact with any representative of the Plan or related
plans for the duration of the Time Out Period, and that the Contributor
had no contact with any representative of the Plan or related plans
during the Time Out Period.
    10. Applicant states that the Contribution was made solely for the
purpose of participating in the local election process, and was not
intended to improperly influence any decision by the Plan. Applicant
notes that the Contributor resides in the community in which the
Recipient was running for office and that the Contributor was entitled
to vote in the election. Applicant further states that the Contributor
has a history of making political contributions to candidates for
elected office.
    11. Applicant states that Applicant had an existing relationship
with the Plan at the time of the Contribution, but did not engage in
any new sales efforts involving limited partnership interests in the
Funds, including any efforts designed to retain the investments in the
Funds or to renegotiate its fees.
    12. Applicant contends that imposing a limitation on the receipt of
advisory compensation associated with the Plan's investment in the
Funds would result in a disproportionate consequence to Applicant that
is not necessary to achieve the intended purposes of Rule 206(4)-5.
Applicant states that neither Applicant nor the Contributor sought to
interfere with the Plan's merit-based selection process for advisory
services, nor did they seek to negotiate higher fees or greater
ancillary benefits than would be achieved in an arm's length
transactions, nor could they have, as the selections pre-dated the
Contribution. Applicant further states that there was no violation of
Applicant's fiduciary duty to deal fairly or disclose material
conflicts of interest given the absence of any intent or action by
Applicant or the Contributor to influence the selection process.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-17715 Filed 7-17-15; 8:45 am]
BILLING CODE 8011-01-P