[Federal Register Volume 80, Number 160 (Wednesday, August 19, 2015)]
[Proposed Rules]
[Pages 50240-50248]
[FR Doc No: 2015-20504]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2006-0131; FRL-9930-17-Region-6]

Approval and Promulgation of Implementation Plans; Louisiana;
Major Source Permitting State Implementation Plan

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve portions of revisions to the Louisiana New Source Review (NSR)
State Implementation Plan (SIP) submitted by the State of Louisiana
designee. These revisions are updates to the Prevention of Significant
Deterioration (PSD) and Nonattainment NSR (NNSR) permit programs.

DATES: Written comments must be received on or before September 18,
2015.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R06-
OAR-2006-0131, by one of the following methods:
     http://www.regulations.gov. Follow the online
instructions.
     Email: Stephanie Kordzi at<EMAIL_ADDRESS>     Mail or delivery: Stephanie Kordzi, Air Permits Section
(6PD-R), Environmental Protection Agency, 1445 Ross Avenue, Suite 1200,
Dallas, Texas 75202-2733.
    Instructions: Direct your comments to Docket ID No. EPA-R06-OAR-
2006-0131. The EPA's policy is that all comments received will be
included in the public docket without change and may be made available
online at http://www.regulations.gov, including any personal
information provided, unless the comment includes information claimed
to be Confidential Business Information (CBI) or other information the
disclosure of which is restricted by statute. Do not submit information
through http://www.regulations.gov or email, if you

believe that it is CBI or otherwise protected from disclosure. The
http://www.regulations.gov Web site is an ``anonymous access'' system,
which means that the 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 the EPA without going through http://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, the EPA recommends that you include your name and other
contact information in the body of your comment along with any disk or
CD-ROM submitted. If the EPA cannot read your comment due to technical
difficulties and cannot contact you for clarification, the EPA may not
be able to consider your comment. Electronic files should avoid the use
of special characters and any form of encryption and should be free of
any defects or viruses. For additional information about the EPA's
public docket, visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: The index to the docket for this action is available
electronically at www.regulations.gov and in hard copy at EPA Region 6,
1445 Ross Avenue, Suite 700, Dallas, Texas. While all documents in the
docket are listed in the index, some information may be publicly
available only at the hard copy location (e.g., copyrighted material),
and some may not be publicly available at either location (e.g., CBI).
To inspect the hard copy materials, please schedule an appointment with
the person listed in the FOR FURTHER INFORMATION CONTACT paragraph
below or Bill Deese at<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Stephanie Kordzi, Telephone (214) 665-
7520, email at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document wherever ``we,''
``us,'' or ``our'' is used, we mean the EPA.

Table of Contents

I. Summary of State SIP Submittals for Chapters 5 and 6 Air Permits
Program
    A. July 25, 1997, Submittal
    B. June 22, 1998, Submittal
    C. February 2, 2000, Submittal
    D. January 27, 2003, Submittal
    E. June 15, 2005, Submittal
    F. December 20, 2005, Submittal
    G. May 5, 2006, Submittal
    H. July 20, 2007, Submittal
    I. November 9, 2007, Submittal
    J. August 14, 2009, Submittal
    K. May 16, 2011, Submittal
    L. February 27, 2013, Submittal
II. Evaluation
    A. Revisions to the NNSR and PSD Air Permit Procedures
    B. Revisions to the NNSR and PSD Programs for the NSR Reform
Rule
    C. LDEQ's Clarification Letter
    D. Revisions to the NNSR and PSD Programs for PM2.5
Implementation
    E. Emission Reduction Credits (ERC) Banking Revisions
    F. Does the proposed approval of the Louisiana Air Permit
Procedure Revisions or ERC Banking Revisions interfere with
attainment, reasonable further progress, or any other applicable
requirement of the Act?
III. Proposed Action
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

I. Summary of State SIP Submittals for Chapters 5 and 6 Air Permits
Program

    The Clean Air Act at section 110(a)(2)(C) requires states to
develop and submit to the EPA for approval into the state SIP,
preconstruction review programs applicable to new and modified
stationary sources of air pollutants for attainment and nonattainment
areas that cover both major and minor new sources and modifications,
collectively referred to as the NSR SIP. The CAA NSR SIP program is
composed of three separate programs: PSD, NNSR, and Minor NSR. PSD is
established in part C of title I of the CAA and applies in areas that
are designated as meeting the National Ambient Air Quality Standards
(NAAQS), i.e., ``attainment areas,'' as well as areas designated as
``unclassifiable'' because there is insufficient information to
determine if the area meets the NAAQS. The NNSR SIP program is
established in part D of title I of the CAA and applies in areas that
are designated as not being in attainment of the NAAQS, i.e.,
``nonattainment areas.'' The Minor NSR SIP program addresses
construction or modification activities that do not emit, or have the
potential to emit, beyond certain major source thresholds and thus do
not qualify as ``major'' and applies regardless of the designation of
the area in which a source is located. This particular SIP proposed
action addresses only the PSD and NNSR major permitting programs.
    The EPA regulations, 40 CFR 51.160-51.166, contain the criteria
that states must satisfy for the EPA to approve the NSR programs as
part of the SIP. In addition, there are several provisions in 40 CFR
part 51 that apply generally to all SIP revisions. 40 CFR 51.160
establishes the enforceable procedures that must be a part of a NSR
program. Sections 51.160-51.164 require a SIP revision to demonstrate
that the adopted rules will not interfere with any applicable
requirement concerning attainment and reasonable further progress, or
any other applicable requirement of the CAA. Based upon our evaluation
of the submittals, the EPA has concluded that the regulatory
submittals, as ultimately revised, meet the requirements of the CAA
section 110(a). Below are summaries of the individual SIP submittals
from Secretary of the Louisiana Department of Environmental Quality
(LDEQ).

A. July 25, 1997, Submittal

    The LDEQ submitted Louisiana Administrative Code (LAC) rule changes
made in 1996. It includes final revised regulation LAC 33:III, sections
501, 504, 509, and 517. Section 504 is already part of the Louisiana
SIP approved by the EPA on September 30, 2002, 2002 at 67 FR 61270. The
EPA will act on section 517 in a separate action in the future.

B. June 22, 1998, Submittal

    The LDEQ submitted rule changes made in 1997. It includes changes
to sections 501, 509, and 517. The EPA will act on sections 501 and 517
in a separate action in the future.

C. February 2, 2000, Submittal

    The LDEQ submitted rule changes made in 1998. It includes sections
509 and 603.

D. January 27, 2003, Submittal

    The LDEQ submitted rule changes made from 1999-2001. It includes
section 509.B.2., which addresses certain Parishes as nonattainment for
ozone. Sections 613 and 615 were already approved as part of the SIP on
September 27, 2002, at 67 FR 60877.

E. June 15, 2005, Submittal

    The LDEQ submitted rule changes made in 2005 for Baton Rouge in
section 504.A.6., covering the nonattainment NSR procedures.

F. December 20, 2005, Submittal

    The LDEQ submitted rule changes made in 2005 concerning the NSR
Reform Program in sections 504 and 509. The submitted rules include,
among other things, provisions for baseline emissions calculations, an
actual-to-projected actual methodology for calculating emissions
changes, options for plantwide applicability limits, and recordkeeping
and reporting requirements. The changes do not include any portion of
the Federal NSR Reform rule that was vacated by the US District Court
of Appeals for the D.C.

Circuit Court on June 24, 2005, concerning Clean Unit applicability
test and Pollution Control Projects.

G. May 5, 2006, Submittal

    The LDEQ submitted rule changes made in 2005. It includes sections
501, 504, 505, 507, 509, and 613. The EPA will act on section 501, a
minor NSR rule, and section 507, a title V rule that is not part of the
SIP, in separate actions in the future. The EPA returned section 505 to
LDEQ because it addresses the Acid Rain Program; the Acid Rain Program
is not a title I program and therefore should not be included in the
Louisiana SIP.

H. July 20, 2007, Submittal

    The LDEQ submitted a revision to the SIP's Alternative Emission
Reduction Plan (``Bubble'') for Union Carbide Corporation, Taft Plant
reflecting LDEQ's rescission of permit no. 1836T, effective on March
12, 2007. The EPA is proposing to approve this revision that codifies
LDEQ's rescission of the permit for the alternative emission reduction
plan (``Bubble'') for Union Carbide Corporation, Taft Plant.

I. November 9, 2007, Submittal

    The LDEQ submitted rule changes made in 2006. It includes sections
501, 504, 509, 513, 531, and 607. The EPA will act on sections 501, 513
and 531 in a separate action in the future because they concern minor
NSR. In addition, on October 15, 2014, LDEQ removed from our
consideration section 504.M.

J. August 14, 2009, Submittal

    The LDEQ submitted rule changes made in 2007, that included
sections 501, 504, 505, 506, and 507. The EPA proposes to approve
section 504 which contains a revision that requires all information
submitted by air permittees be sent to the Office of Environmental
Services.
    The EPA will act on section 501 in a separate action in the future
because it concerns minor NSR. The EPA will return section 505 to LDEQ
because it addresses the Acid Rain Program Permitting Requirements,
which are not part of a SIP. The approved the revisions to Section 506
on April 17, 2014 are found at 79 FR 21631. The EPA will act on section
507 in a separate action in the future because it concerns the title V
program that is not part of a SIP.
    The submittal also contains a rulemaking petition for the repeal of
section 510, which was never part of the SIP. The repeal affects
sections 603, 605, 607, 613, and 615 because those sections reference
to LAC 33:III.510. In addition, to be consistent with the change to
section 504, a change was made to section 613, which dictates that
reports be submitted to the Office of Environmental Services.

K. May 16, 2011, Submittal

    The LDEQ submitted rule changes to sections 504 and 509 to address
the PM2.5 NSR Implementation Rule. The rule submittal also
revises the regulatory definition of ``regulated pollutant'' to address
any pollutant for which there is a NAAQS and precursors to the
formation of such pollutant when identified for regulation by the EPA.
For NSR Reform purposes, LDEQ also repealed the definition of
malfunction in response to the EPA's concerns expressed in our January
24, 2008, letter. The repeal of the definition addressed our concerns.

L. February 27, 2013, Submittal

    The LDEQ submitted revisions to section 509 that update the PSD
rule to implement the Particulate Matter Less Than 2.5 Micrometers
(PM2.5) Increments.
    Table 1 below summarizes the changes that are in the SIP revision
submittals. A summary of our evaluation of each section and the basis
for our proposed approval is included in this rulemaking. The
accompanying Technical Support Document (TSD) includes a detailed
evaluation of the submittals and our rationale. The TSD may be accessed
online at www.regulations.gov, Docket No. EPA-R06-OAR-2006-0131.

                       Table 1--Summary of Each NSR SIP Submittal Affected by This Action
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                                               Date submitted     Date of State
           Title of SIP submittal                  to EPA           adoption           Regulations affected
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Air Permit Procedure Revisions..............         7/25/1997              1996  Sections 501, and 509.
                                                                                Section 504 was approved by
                                                                                EPA into the SIP on 09/30/
                                                                                2002 (67 FR 61270).
Air Permit Procedure Revisions..............         6/22/1998              1997  Section 509.
Air Permit Procedure and ERC Banking                  2/2/2000              1998  Sections 509 and 603.
 Revisions.
Air Permit Procedure and ERC Banking                 1/27/2003         1999-2001  Sections 509, 613, and 615.
 Revisions.                                                                       Sections 613 and 615 were
                                                                                approved by EPA into the SIP
                                                                                on 09/27/2002 (67 FR 60877).
Baton Rouge Severe Area Rule Update.........         6/15/2005         4/20/2004  Section 504.
Air Permit Procedure Revisions and New              12/20/2005        12/20/2005  Sections 504 and 509.
 Source Review Reform.
Air Permit Procedure and ERC Banking                  5/5/2006              2005  Sections 504, 509, and 613.
 Revisions.
Rescission of Alternative Emission Reduction         7/20/2007         3/12/2007  EPA approved the Union Carbide
 Plan for Union Carbide Corporation, Taft                                          permit as part of the SIP.
 Plant.                                                                            See 07/18/1990, 55 FR 29205.
                                                                                On 3/12/07, LDEQ rescinded the
                                                                                permit.
Air Permit Procedure and ERC Banking                 11/9/2007              2006  Sections 504, 509, and 607. On
 Revisions.                                                                        10/15/2014, LDEQ requested
                                                                                that EPA not take action on
                                                                                LAC 33:III.504.M. Therefore,
                                                                                it is not before EPA for
                                                                                action.
Air Permit Procedure Revisions..............         8/14/2009              2007  Sections 504, 603, 605, 607,
                                                                                613, and 615.
Air Permit Procedure Revisions for PM2.5             5/16/2011              2011  Sections 504 and 509.
 NAAQS.
LA SIP Update, PM2.5 Increments.............         2/27/2013        12/20/2012  Section 509.
----------------------------------------------------------------------------------------------------------------

II. Evaluation

A. Revisions to the NNSR and PSD Programs Air Permit Procedures

    We evaluated and are proposing to approve the Chapter 5 amendments
contained in the July 25, 1997, June 22, 1998, February 2, 2000,
January 27, 2003, June 15, 2005, May 5, 2006, July 20, 2007, November
9, 2007, August 14, 2009, submittals. These amendments, if approved by
the EPA, would provide clarity to the SIP-approved rules and correct
contradictory language. Specific proposed revisions address the
assessment and validation of a facility's emissions inventory values.
Further, the amendments would revise the SIP rules to conform to the
latest changes to Louisiana laws. The changes also define, for NNSR
purposes, the parishes that have been designated as non-attainment for
ozone. The EPA's evaluation of the Louisiana SIP submittals include a
line-by-line comparison, which can be found in the TSD, of the proposed
revisions with the federal requirements. We find that in most cases,
the state regulatory language is identical to that of the federal rule.
Where the rules are not identical, we find they are consistent with the
federal rules and definitions and meet their intent. The EPA is
therefore proposing to approve the submitted rules as part of the
Louisiana NNSR and PSD SIP.

B. Revisions to the NNSR and PSD Programs for the NSR Reform Rule

    We evaluated and are proposing to approve the December 20, 2005, as
revised through the May 16, 2011 submittal that contains changes to the
Louisiana NNSR and PSD permitting programs reflecting the requirements
found in the federal NSR Reform Program SIP rules.
    Our evaluation of the Louisiana SIP submittals included a line-by-
line comparison, which can be found in the TSD, of the proposed
revisions with the federal requirements. State agencies may deviate
from the specific definitions of 40 CFR part 51, and the 2002 NSR
Reform Rules, only if the States specifically demonstrate that the
submitted definitions are more stringent or at least as stringent as
the corresponding federal definitions in accordance with 40 CFR
51.165(b)(2).
    The State of Louisiana elected to incorporate by reference (IBR)
most of the federal rules but adopted some with differences. As part of
its December 20, 2005, submittal, Louisiana provided the EPA with an
Equivalency Determination that addresses the differences with the
federal rules regarding emissions defined that are associated with
startup, shutdown and malfunction emissions. The Secretary of the LDEQ
also submitted on June 9, 2015 a letter containing further
clarification. In addition, LDEQ provided follow up SIP submittals that
are summarized above and discussed in further detail in the Technical
Support Document. We find that the LDEQ has adopted the necessary
elements of NSR Reform rule for both the NNSR and PSD programs.
    As discussed in I. F., Louisiana's submitted rules do not include
the Clean Unit applicability test and Pollution Control Projects
vacated by the Court.\1\ Further, ``reasonable possibility'' provisions
that were promulgated in the EPA's NSR Reform SIP rules were remanded
back to EPA for further consideration on June 24, 2005.\1\
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    \1\ The EPA promulgated the revised provisions on December 21,
2007 at 72 FR 72607.
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    The U.S. Court of Appeals for the DC Circuit in New York v. EPA,
413 F.3d 3 (D.C. Cir. 2005) (New York) ordered the EPA either to
provide an acceptable explanation for its ``reasonable possibility''
standard or to devise an appropriately supported alternative. The Court
held, ``[b]ecause EPA has failed to explain how it can ensure NSR
compliance without the relevant data, we will remand for it either to
provide an acceptable explanation for its ``reasonable possibility''
standard or to devise an appropriately supportive alternative.''
Initially, in promulgating the ``reasonable possibility'' standard, we
intended to limit recordkeeping requirements to those projects for
which variability in calculating emissions creates an interest in
obtaining additional information in order to confirm that the
appropriate applicability outcome is reached.
    To satisfy the Court's remand, the EPA has clarified what
constitutes ``reasonable possibility'' and when the ``reasonable
possibility'' recordkeeping requirements apply. We adopted a bright-
line test at 50 percent that will capture projects that have a higher
probability of variability and/or error in projected emissions.
Projects with projected increases below the 50-percent threshold,
especially when emissions from demand growth are included in
projections, are, we believe, sufficiently small that any variability
or error in calculations is less likely to be large enough for the
change to have increased emissions to the significant level. This
requirement is based on authority in circumstances such as these that
allows agencies to establish a bright-line test, as opposed to making
case-by-case determinations. See, e.g., Time Warner Entertainment Co.
L.P. v. F.C.C., 240 F.3d 1126, 1141 (D.C. Cir. 2001).
    We also state ``[s]ome State or local authorities may be able to
adopt these changes through a change in interpretation of the term
``reasonable possibility'' without the need to revise the SIP. For any
State or local authority that can implement the changes without
revising its approved SIP, the changes will become effective when the
reviewing authority publicly announces that it accepts these changes by
interpretation. In the case of NSR SIP revisions that include the term
``reasonable possibility'' but that we have not yet approved, we will
approve the SIP revision if the State or local authority commits to
implementing the ``reasonable possibility'' standard in a manner
consistent with our final rule.''
    The EPA Region 6 requested in a letter of January 24, 2008, that
LDEQ submit a commitment to implement the ``reasonable possibility
provisions in Sections 504.D.9 and 509.R.6 in a manner consistent with
EPA's revised rules. On October 6, 2008, LDEQ committed to implement
the provisions in a manner consistent with the EPA's ``Reasonable
Possibility in Recordkeeping'' rule.
    In addition, on February 22, 2013, the EPA identified seven
Louisiana SIP-approved citations that could allow emissions that were
either automatically or through director's discretion, exempted from
compliance with otherwise applicable emission limitations. State
Implementation Plans: Response to Petition for Rulemaking; Findings of
Substantial Inadequacy; and SIP Calls to Amend Provisions Applying to
Excess Emissions During Periods of Startup, Shutdown, and Malfunction;
Proposed Rule, (78 FR 12522, February 22, 2013). On May 22, 2015, the
EPA issued a final action requiring Louisiana to ensure it has a plan
in place that is fully consistent with the CAA and recent court
decisions regarding startup, shutdown, and malfunction (SSM) for the
named Louisiana rule citations.
    In this proposal action, we are addressing the eight rule changes
for baseline actual emissions and projected actual emissions
definitions. These submitted definitions include the phrase
``authorized emissions associated with startup, shutdown, and
malfunction (SSM).'' Because the term ``authorized emissions'' as used
could encompass the exempted emissions subject to the SSM SIP Call if
Louisiana fails to appropriately respond to the SSM SIP Call within 18
months from the issuance of the final action, the EPA will have to
revisit its approval of these

revisions. In the interim, the LDEQ sent us a letter on June 9, 2015,
that clarifies the definition of authorized emissions and also
clarifies LDEQ's use of variances and emergency orders for permitted
sources which temporarily allow emissions greater than those provided
under a specific permit condition or temporarily replace an emissions
unit that cannot operate without being in violation of an underlying
permit condition or would be a danger to operate. See discussion in the
following Section II.C. below.
    We are proposing to approve the December 20, 2005, submittal, as
revised by the May 16, 2011, submittal as part of the Louisiana SIP for
Major NSR reform.

C. LDEQ's Clarification Letter

    LDEQ provided a clarification letter (Clarification) on June 9,
2015, which was requested by the EPA to clarify perceived
inconsistencies in certain provisions in the SIP submission. The full
text of the letter can be found in the Docket for this action. This
letter clarifies the following aspects of the Major NSR Air Permit
Program.
    The EPA asked for clarification on how the state provisions utilize
the term ``authorized'' in the context of emissions associated with
start-ups, shutdowns, and malfunctions, a term not found in the federal
rules. We also asked for clarification on how variances and emergency
orders affect permit actions.
    LDEQ explained in its clarification letter that the term
``authorized'' does not expand the meaning of ``baseline actual
emissions'' or ``projected actual emissions'' in a manner to render the
submitted revisions to LAC 33:III.504 and 509 less stringent than their
corresponding federal provisions. Accordingly, a permittee cannot
circumvent what would otherwise be applicable NSR requirements when
issuing either a new or modified (i.e., a physical change or change in
the method of operation) permit that is subject to PSD review or
improperly establishes a plantwide applicability limit by means of an
LDEQ-issued variance or Emergency Order. In the context of LAC
33:III.504 and 509, the term ``authorized emissions'' refers to
emissions authorized through only a valid air permit issued pursuant to
LAC 33:III.Chapter 5. LDEQ emphasized that should it calculate baseline
actual emissions using its definition in LAC 33:III.504.K or 509.B, the
result would be no different than if the federal definition at 40 CFR
51.165(a)(1)(xxxv) or 51.166(b)(47) was utilized.
    Next, LDEQ responded that a variance is not a permit, but rather a
waiver issued prospectively by LDEQ to allow emissions from an
emissions unit to temporarily exceed permitted limitations or to
authorize the use of a temporary emissions unit not addressed by an air
permit. Baseline actual emissions cannot exceed permitted limits, even
if additional emissions have been approved by means of a variance or
Declaration of Emergency and Administrative Order.
    In addition, LDEQ expanded on its use of the term ``authorized'' in
relation to its context of LAC 33:III.919 (Emissions Inventory) and the
reporting of actual emissions to LDEQ's Emissions Reporting and
Inventory Center. LDEQ stated it would amend its ``Louisiana Guidance
for Air Permitting Actions'' to clarify that, for purposes of baseline
actual emissions and projected actual emissions, ``authorized''
emissions cannot exceed the limitations imposed by an air permit issued
pursuant to LAC 33:III.Chapter 5.

D. Revisions to the NNSR and PSD Programs for PM2.5
Implementation

    We evaluated and are proposing to approve the revisions to the
Louisiana PSD and NNSR programs submitted on May 16, 2011, and to the
PSD program submitted on February 27, 2013, finding that the Louisiana
NNSR and PSD permitting programs comply with the federal regulatory
requirements for implementation of the PM2.5 NAAQS as
required through the May 16, 2008 NSR PM2.5 Implementation
Rule and the October 20, 2010 PM2.5 PSD SILs--SMC and
Increments Rule. See 73 FR 28321 and 75 FR 64864.

E. Emission Reduction Credits (ERC) Banking Revisions

    We evaluated and are proposing to approve revisions to the existing
SIP-approved Louisiana Regulations on Control of Emissions through the
Use of ERC Banking. The submittals containing Chapter 6 rules that are
a part of this action are dated February 2, 2000, January 27, 2003, May
5, 2006, November 9, 2007, and August 14, 2009, found that the
Louisiana ERC banking revisions comply with the federal regulatory
requirements for implementation of the control of emissions through the
use of ERC Banking. The changes include: (1) Establishing emission
banking for all parishes designated as ozone nonattainment areas in the
state; (2) revising submittal dates for banking credits; (3) revising
references after department reorganization to reflect new organization
structure; and (4) replacing the 1-hour ozone standard with the 8-hour
standard. Our evaluation of the Louisiana SIP submittal included a
line-by-line comparison, which is provided in the TSD, of the proposed
revisions with the federal requirements. Most of the changes contained
in the Chapter 6 submittals were not substantial. Our analysis shows
that in most cases, the state regulatory language is identical to the
federal rule. Where the rules are not identical, they are consistent
with and support the intent of the federal rules and definitions. The
EPA is therefore proposing to approve these submittals. Note that the
revisions we are addressing update the existing SIP-approved
requirements to address current nonattainment areas. These revisions do
not change the underlying purpose of the emissions bank, which is to
provide nonattainment offsets.

F. Does the proposed approval of the Louisiana Air Permit Procedure
Revisions or ERC Banking Revisions interfere with attainment,
reasonable further progress, or any other applicable requirement of the
Act?

    We have determined that the regulations submitted to EPA for
approval as SIP revisions meet the requirements of section 110(l). We
have determined that their implementation will not interfere with any
applicable requirement concerning attainment and reasonable further
progress, or any other applicable requirement of the CAA. The EPA's
evaluation of the Louisiana SIP submittals included a line-by-line
comparison, which can be found in section VI of the TSD, of the
proposed revisions with the federal requirements. If the rules are new,
including the NSR Reform rules contained in the December 20, 2005
submittal, then they were determined to be consistent with the federal
SIP rules. Therefore, as discussed above and in the TSD, the revisions
to the Louisiana NNSR and PSD programs are substantively the same as
the 2002 NSR Reform Rules, without including any vacated provisions, we
conclude that these rules do not interfere with attainment, reasonable
further progress, or any other applicable requirement of the Act. See
67 FR 80186 and 68 FR 63021 for EPA's detailed explanation of the legal
basis for the 2002 NSR Reform Rules. The EPA has concluded that the
regulatory submittals, as ultimately revised, meet the requirements of
the CAA section 110(l).
    Additionally, the rescission of the Bubble for Union Carbide
Corporation Taft Plant also meets CAA section 110(l). On July 18, 1990,
the EPA approved the Bubble, as a revision to the Louisiana SIP (55 FR
29203). The

original SIP revision was based on an Alternative Emission Reduction
Plan as requested by the Governor of Louisiana on October 19, 1983, for
St. Charles Parish due to the area being located in a nonattainment
area for ozone. The permit was incorporated by reference into the SIP
at 40 CFR 52.970(d). The submittal incorrectly identified the
regulation citation as 40 CFR 52.970(c)(55)(i)(a). The rescission was a
result of changed circumstances regarding the two tanks (Tanks 2635 and
2102) originally regulated by the Bubble permit 1836T. Tank 2635 is no
longer in service and the regulation of Tank 2102 was moved to
Logistics Title Permit No. 2656-V0 which is subject to Reasonably
Available Control Technology (RACT) emission control requirements,
resulting in significantly lower VOC emission. The annual emission
limit of 0.51 tons per year of VOC, is roughly a 95% decrease in the
VOC emission limit from the 1983 permit of 9.5 tpy. The emission
reductions gained through the use of RACT and requiring compliance with
an annual emission limit for Tank 2102 negate the need for use of
emission reductions identified in 55 FR 29203, from the shutdown of
Glyoxal Reactor Column vent and the storage of compounds with a lower
vapor pressure in 5 tanks (2201 (removed from service), and the other
four tanks, 2202, 2212, 2206, and 2315) as identified, which provided
credits to allow Tanks 2102 and 2635 to obtain exemptions. All of the
tanks in service are now regulated under Logistics Title Permit No.
2656-V0). Therefore, less emissions vented to the atmosphere ensure
attainment and reasonable progress.

III. Proposed Action

    In this action, the EPA proposes to approve severable revisions to
the major air permitting procedures in sections 501, 504, 509, 523,
603, 605, 607, 613, and 615 as submitted to the EPA to revise the
Louisiana Major NSR SIP Permit program on July 25, 1997, June 22, 1998,
February 2, 2000, January 27, 2003, June 15, 2005, December 20, 2005,
May 5, 2006, July 20, 2007, November 9, 2007, August 14, 2009, May 16,
2011, and February 27, 2013. In addition, the EPA is proposing to
remove the alternative emission reduction plan (``Bubble'') for Union
Carbide Corporation, Taft Plant to reflect LDEQ's rescission of the
permit, from the SIP. Table 2 in Section III summarizes each regulatory
citation that is affected by this action. Note, Table 2 does not
include the rescission of the Union Carbide bubble, submitted on July
20, 2007, which is also being proposed for approval. We have made the
preliminary determination that the revisions were developed and
submitted in accordance with the requirements of the CAA and the EPA's
regulations regarding SIP development at 40 CFR part 51. Additionally,
we have determined that the submitted revisions to the Louisiana PSD
and NNSR programs, as clarified by LDEQ, are consistent with our major
source permitting regulations at 40 CFR 51.160-51.166 and the
associated policy and guidance. Therefore, under section 110 and parts
C and D of the Act, and for the reasons presented above and in our
accompanying TSD, the EPA proposes to fully approve the specific
revisions to the Louisiana SIP identified in Table 2 below:

   Table 2--Summary of Each Regulation That Is Affected by This Action
------------------------------------------------------------------------
                               Date submitted to
           Section                EPA as SIP        Affected regulation
                                   amendment
------------------------------------------------------------------------
                  Section 501--Scope and Applicability
------------------------------------------------------------------------
Section 501.................           7/25/1997  Section 501--
                                                   Authority.
------------------------------------------------------------------------
   Section 504--Nonattainment New Source Review (NNSR) Procedures and
                Offset Requirements in Specified Parishes
------------------------------------------------------------------------
Section 504.A...............           6/15/2005  Section 504.A.6.
                                      12/20/2005  Sections 504.A.,
                                                   504.A.1., 504.A.3.,
                                                   504.A.3.a.-d.,
                                                   504.A.4, 504.A.5.,
                                                   504.A.5.a.-b.,
                                                   504.A.6., 504.A.6.a.-
                                                   f., 504.A.7.,
                                                   504.A.7.a.-c.,
                                                   504.A.8.
                                       11/9/2007  Sections 504.A.1.,
                                                   504.A.2., 504.A.3.,
                                                   504.A.4, 504.A.8.
Section 504.C...............            5/5/2006  Section 504.C.,
                                                   Section 504.F.7.,
                                                   Section 504.F.7.a--
                                                   Table 1, PM10.
                                       8/14/2009  Section 504.C.
Section 504.D...............           6/15/2005  Section 504.D.3.
                                      12/20/2005  Sections 504.D.4.,
                                                   504.D.9, 504.D.9.a.-
                                                   e., 504.D.10.,
                                                   504D.11., 504.D.11.a-
                                                   b.
                                       11/9/2007  Sections 504.D.5
Section 504.F...............          12/20/2005  Sections 504.F.11.,
                                                   and 504.F.12.
                                        5/5/2006  Section 504.F.7,
                                                   504.F.7.a.--Table 1,
                                                   Footnote PM10.
                                      11/09/2007  Sections 504.F.1.,
                                                   504.F.8.a.-c.,
                                                   504.F.9.L Table 1.
                                       8/14/2009  Section 504.F.7.
                                       5/16/2011  Section 504.F.1.
Section 504.G...............          12/20/2005  Sections 504.G.,
                                                   504.G.1., 504.G.2.,
                                                   504.G.2.a.-e.,
                                                   504.G.3., 504.G.3.a.-
                                                   c., 504.G.4.,
                                                   504.G.4.a.-b.,
                                                   504.G.5., 504.G.5.a.-
                                                   b., 504.G.6.,
                                                   504.G.6.a.-f.,
                                                   504.G.7., 504.G.7.a.-
                                                   c., 504.G.8.,
                                                   504.G.9.
Section 504.H...............          12/20/2005  Sections 504.H.1.,
                                                   504.H.2., 504.H.2.a.-
                                                   d., 504.H.3.,
                                                   504.H.3.a.-d.,
                                                   504.H.4., 504.H.4.a.-
                                                   c., 504.H.5.,
                                                   504.H.6., 504.H.7.,
                                                   504.H.8., 504.H.8.a.-
                                                   f., 504.H.9.,
                                                   504.H.9.a.-e.,
                                                   504.H.10., 504.H.11.
Section 504.I...............          12/20/2005  Sections 504.I.1.,
                                                   504.I.2., 504.I.2.a.-
                                                   b., 504.I.3.,
                                                   504.I.3.a.-e.,
                                                   504.I.4., 504.I.5.,
                                                   504.I.6., 504.I.6.a.-
                                                   d.
Section 504.J...............          12/20/2005  Sections 504.J.1.,
                                                   504.J.1.a.-d.,
                                                   504.J.2., 504.J.2.a.-
                                                   k., 504.J.3.,
                                                   504.J.3.a.-c.,
                                                   504.J.4., 504.J.4.a.-
                                                   b., 504.J.5.,
                                                   504.J.6., 504.J.6.a.-
                                                   b., 504.J.7.,
                                                   504.J.7.a.-j.,
                                                   504.J.8., 504.J.8.a.-
                                                   b., 504.J.9.,
                                                   504.J.9.a.-e.,
                                                   504.J.10.,
                                                   504.J.10.a.-e.,
                                                   504.J.11.,
                                                   504.J.11.a.-c.,
                                                   504.J.12.,
                                                   504.J.12.a.-i.,
                                                   504.J.13.,
                                                   504.J.13.a.-b.,
                                                   504.J.14.,
                                                   504.J.14.a.-c.,
                                                   504.J.15.,
                                                   504.J.15.a.-b.
                                       5/16/2011  Section 504.J.5.

Section 504.K...............          12/20/2005  Sections 504.K.
                                                   Definitions.
                                                   Beginning with Act--
                                                   repealed,
                                                   Administrator,
                                                   Adverse Impact on
                                                   Visibility, Allowable
                                                   Emissions, Baseline
                                                   Actual Emissions,
                                                   Begin Actual
                                                   Construction, Best
                                                   Available Control
                                                   Technology, Clean Air
                                                   Act, Clean Coal
                                                   Technology, Clean
                                                   Coal Technology
                                                   Demonstration
                                                   Project, Clean Unit,
                                                   Commence,
                                                   Construction,
                                                   Continuous Emissions
                                                   Monitoring System,
                                                   Continuous Emissions
                                                   Rate Monitoring
                                                   System, Continuous
                                                   Parameter Monitoring
                                                   System, Electric
                                                   Utility Steam
                                                   Generating Unit,
                                                   Emissions Unit,
                                                   Federal Class I Area,
                                                   Federal Land Manager,
                                                   Federally
                                                   Enforceable, Fugitive
                                                   Emissions, Lowest
                                                   Achievable Emission
                                                   Rate, Major
                                                   Modification, Major
                                                   Stationary Source,
                                                   Mandatory Federal
                                                   Class I Area, Natural
                                                   Conditions, Necessary
                                                   Preconstruction
                                                   Approvals, or
                                                   Permits, and Net
                                                   Emissions Increase.
                                       5/16/2011  Section 504.K.
                                                   Definition.
                                                   Malfunction--repealed
                                                   , Regulated
                                                   Pollutant,
                                                   Significant.
Section 504.L...............          11/09/2007  Section 504.L Table 1
                                                   and footnotes.
                                       5/16/2011  Section 504 L Table 1
                                                   and footnotes for
                                                   Major Stationary
                                                   Source.
Section 504.M...............          11/09/2007  Sections 504.M. and
                                                   504.M.1.-3. EPA is
                                                   not taking action on
                                                   this section based on
                                                   LDEQ 10/15/2014,
                                                   request for EPA to
                                                   ``not take action''.
------------------------------------------------------------------------
          Section 509--Prevention of Significant Deterioration
------------------------------------------------------------------------
Section 509.A...............          12/20/2005  Sections 509.A.1.,
                                                   509.A.2., 509.A.3.,
                                                   509.A.4., 509.A.4.a-
                                                   f., 509.A.5.,
                                                   509.A.6.
                                        5/5/2006  Section 509.A.3.
                                      11/09/2007  Section 509.A.4.f.
                                       5/16/2011  Reference to
                                                   previously SIP
                                                   approved submittal
                                                   PM2.5 NAAQS.
Section 509.B...............           7/25/1997  Section 509.B.
                                                   Definitions. Baseline
                                                   Area.2.
                                       6/22/1998  Section 509.B.
                                                   Definitions.
                                                   Reconstruction.
                                       1/27/2003  Section 509.B.2.
                                      12/20/2005  Sections 509.B.
                                                   Definitions. Actual
                                                   Emissions, Adverse
                                                   Impact on Visibility,
                                                   Allowable Emissions,
                                                   Baseline Area,
                                                   Baseline
                                                   Concentration,
                                                   Baseline Date, Begin
                                                   Actual Construction,
                                                   Best Available
                                                   Control Technology,
                                                   Building, Structure,
                                                   Facility or
                                                   Installation, Clean
                                                   Air Act, Clean Coal
                                                   Technology, Clean
                                                   Coal Technology
                                                   Demonstration
                                                   Project, Clean Unit,
                                                   Commence, Complete,
                                                   Construction,
                                                   Continuous Emissions
                                                   Monitoring System,
                                                   Continuous Emissions
                                                   Rate Monitoring
                                                   System, Continuous
                                                   Parameter Monitoring
                                                   System, Electric
                                                   Utility Steam
                                                   Generating Unit,
                                                   Emissions Unit,
                                                   Federal Land Manager,
                                                   Federally
                                                   Enforceable, Fugitive
                                                   Emissions High
                                                   Terrain, Indian
                                                   Governing Body,
                                                   Indian Reservation
                                                   Innovative Control
                                                   Technology, Low
                                                   Terrain, Lowest
                                                   Achievable Emission
                                                   Rate, Major
                                                   Modification, Major
                                                   Stationary Source,
                                                   Necessary
                                                   Preconstruction
                                                   Approvals, Pollution
                                                   Control Project,
                                                   Pollution Prevention,
                                                   Potential to Emit,
                                                   Predictive Emissions
                                                   Monitoring System,
                                                   Prevention of
                                                   Significant
                                                   Deterioration,
                                                   Project, Reactivation
                                                   of a Very Clean Coal-
                                                   Fired Electric
                                                   Utility Steam
                                                   Generating Unit,
                                                   Reasonably Available
                                                   Control Technology,
                                                   Regulated NSR
                                                   Pollutant,
                                                   Replacement Unit,
                                                   Repowering, Reviewing
                                                   Authority,
                                                   Significant,
                                                   Significant Emissions
                                                   Increase Stationary
                                                   Source, and Temporary
                                                   Clean Coal Technology
                                                   Demonstration
                                                   Project.
                                       11/9/2007  Sections 509.B.
                                                   definitions Major
                                                   Modification, Major
                                                   Stationary Source,
                                                   Regulated NSR
                                                   Pollutant, and
                                                   Significant.
                                       5/16/2011  Section 509.B.
                                                   Definitions--Malfunct
                                                   ions--repeal,
                                                   Regulated New Source
                                                   Review (NSR)
                                                   Pollutant,
                                                   Significant a.
                                       2/27/2013  Section 509.B.
                                                   Definitions. Baseline
                                                   Area, Baseline Date,
                                                   Minor Source Baseline
                                                   Date.
Section 509.C...............          12/20/2005  Sections 509.C.
                                       2/27/2013  Sections 509.C.
                                                   Ambient Air
                                                   Increments.
Section 509.D...............           6/22/1998  Section 509.D.17.
                                      12/20/2005  Sections 509.D.,
                                                   509.D.1.-2.
Section 509.E...............          12/20/2005  Sections 509.E.,
                                                   509.E.1.-4.
Section 509.G...............          12/20/2005  Sections 509.G.,
                                                   509.G.1.-4.
Section 509.H...............          12/20/2005  Sections 509.H.,
                                                   509.H.1.-2.
Section 509.I...............          12/20/2005  Sections 509.I.,
                                                   509.I.1.-9.
                                       11/9/2007  Sections 509.I.5.a.,
                                                   approving renumbering
                                                   only because
                                                   substantively it has
                                                   already been
                                                   addressed.
                                       2/27/2013  Sections 509.I.5.,
                                                   509.I.5.a., 509.I.8.,
                                                   509.I.9., 509.I.9.b.
Section 509.J...............          12/20/2005  Sections 509.J.,
                                                   509.J.1.-4.
                                       2/27/2013  Sections 509.J.,
                                                   509.J.5., 509.J.5.a.,
Section 509.K...............          12/20/2005  Sections 509.K.,
                                                   509.K.1.-2.
                                       2/27/2013  Sections 509.K.,
                                                   509.K.1., 509.K.1.a.-
                                                   b.
Section 509.L...............          12/20/2005  Sections 509.L.,
                                                   509.L.1.-2.
Section 509.M...............          12/20/2005  Sections 509.M.,
                                                   509.M.1-3.
Section 509.N...............          12/20/2005  Sections 509.N.,
                                                   509.N.1.-2.
Section 509.O...............          12/20/2005  Sections 509.O.1.-3.
                                        5/5/2006  Section 509.O.3.
Section 509.P...............          12/20/2005  Sections 509.P, 509.P.
                                                   1.-8.
                                       2/27/2013  Section 509.P.5.
Section 509.Q...............            2/2/2000  Sections 509.Q.7.,
                                                   509.Q.8.b.
                                      12/20/2005  Sections 509.Q.,
                                                   509.Q.1.-2.
Section 509.R...............          12/20/2005  Sections 509.R.,
                                                   509.R.1.-7.
Section 509.V...............          12/20/2005  Sections 509.V.,
                                                   509.V.1.-4.

Section 509.W...............          12/20/2005  Sections 509.W.,
                                                   509.W.1.-4.
Section 509.X...............          12/20/2005  Sections 509.X.,
                                                   509.X.1.-9.
Section 509.Y...............          12/20/2005  Sections 509.Y.,
                                                   509.Y.1.-11.
Section 509.Z...............          12/20/2005  Sections 509.Z.,
                                                   509.Z.1.-6.
Section 509.AA..............          12/20/2005  Sections 509.AA.,
                                                   509.AA.1.-15.
------------------------------------------------------------------------
                       Section 603--Applicability
------------------------------------------------------------------------
Section 603.................            2/2/2000  Section 603, no longer
                                                   in front of EPA--
                                                   superseded.
Section 603.A...............           8/14/2009  Section 603.A.
------------------------------------------------------------------------
                               Section 605
------------------------------------------------------------------------
Section 605.A...............           8/14/2009  Section 605.A.
                                                   Definitions Offset.
------------------------------------------------------------------------
      Section 607--Determination of Creditable Emission Reductions
------------------------------------------------------------------------
Section 607.C...............           11/9/2007  Sections 607.C.1,
                                                   607.C.4.a.i, and
                                                   607.C.4.a.ii.
                                       8/14/2009  Section 607.C.4.b
------------------------------------------------------------------------
                     Section 613--ERC Balance Sheet
------------------------------------------------------------------------
Section 613.B...............            5/5/2006  Section 613.B.
Section 613.B...............            5/5/2006  Section 613.B.
                                                   (repealed).
Section 613.D...............           1/27/2003  Section 613.D.
------------------------------------------------------------------------
                               Section 615--Schedule for Submitting Applications
------------------------------------------------------------------------
Section 615.B...............           1/27/2003  Section 615.B.
Section 615.C...............           8/14/2009  Sections 615.C., and
                                                   615.D.
------------------------------------------------------------------------

    We also are proposing to approve the December 25, 2005, submittal,
as revised by the May 16, 2011, submittal. as part of the Louisiana NSR
SIP because they meet the Major NSR reform requirements. The LDEQ also
provided an October 6, 2008, letter, and a June 9, 2015, providing
further clarification.
    The EPA is proposing to find that the May 16, 2011, revisions to
the Louisiana NNSR program at LAC 33:III.504 address all required NNSR
elements for the implementation of the 1997 and 2006 PM2.5
NAAQS. We note that the Louisiana NNSR program does not include
regulation of VOCs and ammonia as PM2.5 precursors. However,
as section 189(e) of the Act requires regulation of PM2.5
precursors that significantly contribute to PM2.5 levels
``which exceed the standard in the area'' and Louisiana does not have a
designated PM2.5 nonattainment area; the revisions
addressing only SO2 and NOX are not inconsistent
with the requirements of the CAA. In the event that an area is
designated nonattainment for the 2012 PM2.5 NAAQS or any
other future PM2.5 NAAQS, Louisiana will have a deadline
under section 189(a)(2) of the CAA to make a submission addressing the
statutory requirements as to that area, including the requirements in
section 189(e) that apply to the regulation of PM2.5
precursors.
    The EPA invites the public to make comments on all aspects of our
proposed full approval of the Louisiana Air Permit Procedure Program,
and to submit them by the Date listed above. We are accepting comments
on this proposed action for 30 days. After reviewing the comments
received, we will make a final determination of the approvability of
the specified revisions to the Louisiana Major Air Permit Procedures
and Regulations and Control of Emissions through the Use of Emission
Reduction Credits (ERC) Banking Revisions in the Federal Register.

IV. Incorporation by Reference

    In this action, we are proposing to include in a final rule
regulatory text that includes incorporation by reference. In accordance
with the requirements of 1 CFR 51.5, we are proposing to incorporate by
reference revisions to the Louisiana regulations as described in the
Proposed Action section above. We have made, and will continue to make,
these documents generally available electronically through
www.regulations.gov and/or in hard copy at the EPA Region 6 office.

V. Statutory and Executive Order Reviews.

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, the EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely proposes to approve 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 Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described

in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian
reservation land or in any other area where EPA or an Indian tribe has
demonstrated that a tribe has jurisdiction. In those areas of Indian
country, the proposed rule does not have tribal implications and will
not impose substantial direct costs on tribal governments or preempt
tribal law as specified by Executive Order 13175 (65 FR 67249, November
9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, and Volatile organic compounds.

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

    Dated: August 5, 2015.
Ron Curry,
Regional Administrator, Region 6.
[FR Doc. 2015-20504 Filed 8-18-15; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 79, Number 239 (Friday, December 12, 2014)]
[Notices]
[Pages 73919-73921]
[FR Doc No: 2014-29102]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73776; File No. SR-CME-2014-29]

Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Make Clarifying Changes to CME Rule 814 and CME Rule 901

December 8, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given
that, on November 26, 2014, Chicago Mercantile Exchange Inc. (``CME'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared primarily by CME. CME filed the proposal
pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(4)(ii)
\4\ thereunder, so that the proposal was effective upon filing with the
Commission. 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).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

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

    CME is filing a proposed rule change that is limited to its
business as a derivatives clearing organization. More specifically, the
proposed rule change would make amendments to CME Rule 814 and CME Rule
901 to specify the time at which a settlement bank becomes responsible
to the clearing house to perform variation margin settlement and the
point during the clearing cycle at which a clearing member's
obligations to the clearing house cease. The proposed revisions would
not modify clearing house operations but merely clarify to the
marketplace the clearing cycle currently in place.

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

    In its filing with the Commission, CME 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. CME has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of these statements.

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

    CME is registered as a derivatives clearing organization with the
Commodity Futures Trading Commission (``CFTC'') and operates a
substantial business clearing futures and swaps contracts subject to
the jurisdiction of the CFTC. CME is proposing to make amendments to
CME Rule 814 and CME Rule 901 to specify the time at which a settlement
bank becomes responsible to the clearing house to perform variation
margin settlement and the point during the clearing cycle at which a
clearing member's obligations to the clearing house cease. The proposed
revisions would not modify clearing house operations but merely clarify
to the marketplace the clearing cycle currently in place. CME notes
that it has also made a corresponding filing with the CFTC, in
Submission No. 14-280, regarding the proposed changes.

    The proposed changes would reflect the best practices outlined in
the Principles for Financial Market Infrastructures (``PFMIs''),
adopted by the joint Committee on Payment and Settlement Systems and
the Technical Committee of the International Organization of Securities
Commissions.\5\ Principle 8 of the PFMIs (Settlement finality) states
that an ``FMI's rules and procedures should clearly define the point at
which settlement is final'' and that ``[a]n FMI should be designed to
provide clear and certain final settlement of payments, transfer
instructions, or other obligations.'' \6\
---------------------------------------------------------------------------

    \5\ See Committee on Payment and Settlement Systems and
Technical Committee of the International Organization of Securities
Commissions, Principles for Financial Market Infrastructures (Apr.
16, 2012), available at http://www.bis.org/publ/cpss101a.pdf.
    \6\ Id. at 64.
---------------------------------------------------------------------------

    Revised CME Rule 814 (Settlement Variation) will specify that
``settlement variation is deemed final when an irrevocable commitment
to pay has been provided to the Clearing House by a settlement bank in
a form or manner as approved by the Clearing House.'' The amendment to
Rule 814 codifies CME's uniform practice in regard to its settlement
bank legal agreements, which provide that the settlement bank's
obligation arises upon CME's receipt of the settlement bank's
irrevocable commitment to pay.
    CME Rule 901.S (General Requirements and Obligations) is being
added to state that ``the obligation(s) of a clearing member to pay
settlement variation and/or performance bond during each clearing cycle
is not extinguished until all required cash and/or collateral is
deposited into the correct CME bank account at the relevant custodial
or settlement bank.'' The proposed changes increase the transparency of
the CME legal framework in this area and align the existing rules with
global PFMI standards by specifying the times at which settlement bank
obligations to the clearing house arise and clearing member obligations
are extinguished.
    CME believes the proposed rule change is consistent with the
requirements of the Act including Section 17A.\7\ Because the proposed
change clarifies in CME's rules the time at which a settlement bank
becomes responsible to the clearing house to perform variation margin
settlement and the point during the clearing cycle at which a clearing
member's obligations to the clearing house cease,\8\ it promotes the
prompt and accurate clearance and settlement of securities transactions
and, to the extent applicable, derivatives agreements, contracts, and
transactions, assures the safeguarding of securities and funds which
are in the custody or control of CME or for which it is responsible,
and, in general, protects investors and the public interest in a way
that is consistent with Section 17A(b)(3)(F) of the Act.\9\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
    \8\ Pursuant to a teleconference with CME's counsel on December
4, 2014, staff in the Division of Trading and Markets has modified
this sentence to clarify CME's intended explanation of the statutory
basis for the proposed rule change.
    \9\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CME does not believe that the proposed rule change will have any
impact, or impose any burden, on competition. The proposed changes
specify the time at which a settlement bank becomes responsible to the
clearing house to perform variation margin settlement and the point
during the clearing cycle at which a clearing member's obligations to
the clearing house cease. The proposed revisions will not modify
clearing house operations but merely clarify to the marketplace the
clearing cycle currently in place.

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

    CME has not solicited, and does not intend to solicit, comments
regarding this proposed rule change. CME has not received any
unsolicited written comments from interested parties.

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

    The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(4)(ii) \11\
thereunder. CME asserts that this proposal constitutes a change in an
existing service of CME that (a) primarily affects the clearing
operations of CME with respect to products that are not securities,
including futures that are not security futures, and swaps that are not
security-based swaps or mixed swaps, and forwards that are not security
forwards; and (b) does not significantly affect any securities clearing
operations of CME or any rights or obligations of CME with respect to
securities clearing or persons using such securities-clearing service,
which renders the proposed change effective upon filing. CME believes
that the proposal does not significantly affect any securities clearing
operations of CME because CME recently filed a rule change that
clarified that CME has decided not to clear security-based swaps,
except in a very limited set of circumstances.\12\ The rule filing
reflecting CME's decision not to clear security-based swaps removed any
ambiguity concerning CME's ability or intent to perform the functions
of a clearing agency with respect to security-based swaps. Therefore,
this proposal will not have an effect on any securities clearing
operations of CME.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(4)(ii).
    \12\ See Securities Exchange Act Release No. 34-73615 (Nov. 17,
2014), 79 FR 69545 (Nov. 21, 2014) (SR-CME-2014-49). The only
exception is with regards to Restructuring European Single Name
Credit Default Swap (``CDS'') Contracts created following the
occurrence of a Restructuring Credit Event in respect of an iTraxx
Component Transaction. The clearing of Restructuring European Single
Name CDS Contracts will be a necessary byproduct after such time
that CME begins clearing iTraxx Europe index CDS.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CME-2014-29 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-CME-2014-29. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street NE., Washington, DC 20549, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of such filings will also be
available for inspection and copying at the principal office of CME and
on CME's Web site at http://www.cmegroup.com/market-regulation/rule-filings.html.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-CME-2014-29
and should be submitted on or before January 2, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-29102 Filed 12-11-14; 8:45 am]
BILLING CODE 8011-01-P