[Federal Register Volume 88, Number 169 (Friday, September 1, 2023)]
[Notices]
[Pages 60521-60525]
[FR Doc No: 2023-18895]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98228; File No. SR-Phlx-2023-38]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 8
Rules

August 28, 2023.
    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 August 14, 2023, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its Rules at Options 8 concerning
Floor Trading.
    The text of the proposed rule change is available on the Exchange's
website at

https://listingcenter.nasdaq.com/rulebook/phlx/rules, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    Phlx proposes to amend Options 8, Section 11, Floor Market Maker
and Lead Market Maker Appointment, and reserve current Options 8,
Section 16, Trading for Joint Account. Each change will be described
below.
Options 8, Section 11
    The Exchange is proposing to amend Options 8, Section 11, Floor
Market Maker and Lead Market Maker Appointment. Specifically, the
Exchange proposes to remove the current burdensome process within
Options 8, Section 11(b) regarding Floor Market Maker \3\ options
assignments.
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    \3\ The term ``Floor Market Maker'' is a Market Maker who is
neither an SQT or an RSQT. A Floor Market Maker may provide a quote
in open outcry. See Phlx Options 8, Section 1(a)(4).
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    Today, pursuant to Options 8, Section 11(b), a Floor Market Maker
shall notify the Exchange of each option, on an issue-by-issue basis,
in which such Floor Market Maker intends to be assigned to make
markets. Exchange options transactions initiated by such Market Maker
on the Trading Floor for any account in which he had an interest shall
to the extent prescribed by the Exchange be in such assigned classes.
Such notification shall be in writing on a form prescribed by the
Exchange (``Floor Market Maker Assignment Form''). Any change to such
Floor Market Maker Assignment Form shall be made in writing by the
Floor Market Maker prior to the end of the next business day in which
such change is to take place. Receipt of the properly completed Floor
Market Maker Assignment Form by a duly qualified Floor Market Maker
applicant constitutes acceptance by the Exchange of such Floor Market
Maker's assignment in, or termination of assignment in (as indicated on
the Floor Market Maker Assignment Form), the options listed on such
Floor Market Maker Assignment Form. All such assignments shall not be
effective, and shall be terminated, in the event that such Floor Market
Maker applicant fails to qualify as a Floor Market Maker on the
Exchange.
    The Exchange is proposing to remove the rule text related to
notifying the Exchange of each options class in which such Floor Market
Maker intends to be assigned and, instead, provide that a Floor Market
Maker has an assignment to trade open outcry in all options classes
traded on the Exchange.\4\ This proposed rule text is similar to Cboe
Exchange, Inc. (``Cboe'') Rule 5.50(e).\5\
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    \4\ The Exchange also proposes to remove the rule text
prescribing that such notification should be in writing, how to make
changes to the Floor Market Maker Assignment Form, and acceptance of
the form by the Exchange.
    \5\ Cboe Rule 5.50(e) provide that, ``During Regular Trading
Hours, a Market-Maker has an appointment to trade open outcry in all
classes traded on the Exchange. A TPH organization that is
registered as a Market-Maker may only trade in open outcry through
one of its nominees. A Market-Maker must be physically present in
the trading crowd to trade in open outcry.''
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    Today, a Floor Market Maker may only quote in open outcry on the
Exchange's Trading Floor and may not enter electronic quotations into
the electronic System.\6\ Today, Floor Market Makers may be called upon
by an Options Exchange Official to make a market in a trading crowd.\7\
Further, Phlx requires that at least one Floor Market Maker is present
at the trading post prior to representing an order for execution.\8\ By
assigning a Floor Marker Maker in all options classes traded on the
Exchange, similar to Cboe, Phlx believes it will attract additional
liquidity to its trading floor by allowing Floor Market Makers to quote
in all options classes traded on Phlx without an administrative
barrier.\9\ An approved Floor Market Maker is permitted to quote \10\
in all options classes provided the Floor Market Maker is properly
registered \11\ and remains in good standing.\12\ The process described
in Options 8, Section 11(b) is a notification process, not an approval
process. This proposed method of assignment will remove the burdensome
manual process of completing a Floor Market Maker Assignment Form for
the benefit of both Phlx members who must file the form and Exchange
staff who must track assignments.
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    \6\ The Options 8 rules govern trading on Phlx's trading floor.
A Floor Market Maker may not stream quotes. See supra note 3.
    \7\ See Options 8, Section 27(c) and (d).
    \8\ See Options 8, Section 28(a).
    \9\ Today, a Floor Market Maker that fails to notify the
Exchange in a timely manner would not be permitted to quote in
certain options in which they have not been assigned.
    \10\ Floor Market Makers are not subject to continuous quoting
requirements pursuant to Options 8, Section 27(a). Further, Floor
Market Makers are required to trade either (a) 1,000 contracts and
300 transactions, or (b) 10,000 contracts and 100 transactions, on
the Exchange each quarter. Transactions executed in the trading
crowd where the contra-side is an ROT are not included. See Options
8, Section 27(f). In meeting the trading requirements, Floor Market
Makers are not required to quote in all assigned options series.
    \11\ See Options 8, Section 8.
    \12\ Pursuant to Options 8, Section 11(b), ``All such
assignments shall not be effective, and shall be terminated, in the
event that such Floor Market Maker applicant fails to qualify as a
Floor Market Maker on the Exchange.'' Of note, the Exchange is not
amending the process of assignment and approval to become the Floor
Lead Market Maker. The term ``Floor Lead Market Maker'' is a member
who is registered as an options Lead Market Maker pursuant to
Options 2, Section 12(a) and has a physical presence on the
Exchange's trading floor. See Options 8, Section 1(a)(3).
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    As provided in Options 8, Section 11(a), the Exchange, in its
discretion, may require a unit to obtain additional staff depending
upon the number of assigned options classes and associated order flow.
The Exchange proposes to amend Options 3, Section 11(a) to specify that
``The Exchange, in its discretion, may require a unit to obtain
additional staff depending upon the number of assigned options classes
that is being quoted and associated order flow.'' This change is being
made as a Floor Market Maker will be assigned in all options classes
pursuant to this proposal and the Exchange would monitor the amount of
quoting activity in utilizing its discretion.
Options 8, Section 16
    The Exchange proposes to reserve Options 8, Section 16, Trading for
a Joint Account, which requires the disclosure of accounts held jointly
with other members. This rule was put in place to address conflicts of
interest among members. Options 8, Section 16 is unnecessary because,
today, there is no trading conducted in joint accounts on the trading
floor. Also, Options 8, Section 16 is unnecessary because General 9,
Section 67, Participation in Joint Accounts, requires, among other
information, disclosure of other ownership and financial
information.\13\
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    \13\ General 9, Section 67 requires a joint account to be
reported to the Exchange by any member, member organization, or
partner or stockholder therein, participating in such joint account
before any transactions are effected on the Exchange for such joint
account and shall include in substance the following: (1) Names of
persons participating in such account and their respective interest
therein; (2) Purpose of such account; (3) Amount of commitments in
such account; and (4) A copy of any written agreement or instrument
in writing relating to such account. See General 9, Section 67(b).

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    Today, all members (electronic and floor) are currently subject to
General 9, Section 67, Participation in Joint Accounts, however only
Phlx floor members are also subject to Options 8, Section 16. While
Options 8, Section 16 requires prior approval of a joint account \14\
to initiate the purchase or sale on the Exchange of any security for
any account in which he, his member organization or a participant
therein, is directly or indirectly interested with any person other
than such member organization or participant therein, General 9,
Section 67, requires the reporting of joint accounts and permits Phlx
staff to disapprove any joint account. Further, General 9, Section 67
requires a Phlx member to report participation in such joint account
before any transactions are effected on the Exchange for such joint
account.
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    \14\ The Exchange notes that the approval is not on a
transaction basis, rather it is on an account basis.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with section
6(b) of the Act,\15\ in general, and furthers the objectives of section
6(b)(5) of the Act,\16\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest.
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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
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Options 8, Section 11
    The Exchange's proposal to amend Options 8, Section 11, Floor
Market Maker and Lead Market Maker Appointment, is consistent with the
Act and the protection of investors and the general public because
assigning a Floor Marker Maker in all options classes traded on the
Exchange will enable Phlx to attract additional liquidity to its
trading floor by allowing Floor Market Makers to quote in all options
classes traded on Phlx without any burdensome administrative barriers.
Furthermore, the proposal will remove impediments to and perfect the
mechanism of a free and open market by removing the manual process of
completing a Floor Market Maker Assignment Form for the benefit of both
Phlx members who must file the form and Exchange staff who must track
assignments.
    With respect to protecting investors and the general public, Phlx
continues to have rules in place to maintain orderly markets on its
trading floor. Today, a Floor Market Maker may only quote in open
outcry on the Exchange's Trading Floor and may not enter electronic
quotations into the electronic System. Floor Market Makers may be
called upon by an Options Exchange Official to make a market in a
trading crowd.\17\ Further, Phlx requires that at least one Floor
Market Maker is present at the trading post prior to representing an
order for execution.\18\ An assigned Floor Market Maker is permitted to
quote \19\ in all options classes provided the Floor Market Maker is
properly registered \20\ and remains in good standing.\21\ This
proposed rule text is similar to Cboe Rule 5.50(e).\22\
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    \17\ See Options 8, Section 27(c) and (d).
    \18\ See Options 8, Section 28(a).
    \19\ Floor Market Makers are not subject to continuous quoting
requirements pursuant to Options 8, Section 27(a). Further, Floor
Market Makers are required to trade either (a) 1,000 contracts and
300 transactions, or (b) 10,000 contracts and 100 transactions, on
the Exchange each quarter. Transactions executed in the trading
crowd where the contra-side is an ROT are not included. See Options
8, Section 27(f). In meeting the trading requirements, Floor Market
Makers are not required to quote in all assigned options series.
    \20\ See Options 8, Section 8.
    \21\ Pursuant to Options 8, Section 11(b), ``All such
assignments shall not be effective, and shall be terminated, in the
event that such Floor Market Maker applicant fails to qualify as a
Floor Market Maker on the Exchange.'' Of note, the Exchange is not
amending the process of assignment and approval to become the Floor
Lead Market Maker. The term ``Floor Lead Market Maker'' is a member
who is registered as an options Lead Market Maker pursuant to
Options 2, Section 12(a) and has a physical presence on the
Exchange's trading floor. See Options 8, Section 1(a)(3).
    \22\ Cboe Rule 5.50(e) provide that, ``During Regular Trading
Hours, a Market-Maker has an appointment to trade open outcry in all
classes traded on the Exchange. A TPH organization that is
registered as a Market-Maker may only trade in open outcry through
one of its nominees. A Market-Maker must be physically present in
the trading crowd to trade in open outcry.''
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    Amending Options 3, Section 11(a) to specify that ``The Exchange,
in its discretion, may require a unit to obtain additional staff
depending upon the number of assigned options classes that is being
quoted and associated order flow'' is consistent with the Act and the
protection of investors because the Exchange would monitor the amount
of quoting activity in utilizing its discretion going forward.
Options 8, Section 16
    The Exchange's proposal to reserve Options 8, Section 16, Trading
for a Joint Account, is consistent with the Act and the protection of
investors and the general public because the rule is unnecessary.
Today, there is no trading conducted in joint accounts on the trading
floor. Also, Options 8, Section 16 is unnecessary because General 9,
Section 67, Participation in Joint Accounts, requires, among other
information, disclosure of other ownership and financial
information.\23\ While Options 8, Section 16 requires prior approval of
a joint account \24\ to initiate the purchase or sale on the Exchange
of any security for any account in which he, his member organization or
a participant therein, is directly or indirectly interested with any
person other than such member organization or participant therein,
General 9, Section 67, requires the reporting of joint accounts and
permits Phlx staff to disapprove any joint account. Further, General 9,
Section 67 requires a Phlx member to report participation in such joint
account before any transactions are effected on the Exchange for such
joint account.
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    \23\ General 9, Section 67 requires a joint account to be
reported to the Exchange by any member, member organization, or
partner or stockholder therein, participating in such joint account
before any transactions are effected on the Exchange for such joint
account and shall include in substance the following: (1) Names of
persons participating in such account and their respective interest
therein; (2) Purpose of such account; (3) Amount of commitments in
such account; and (4) A copy of any written agreement or instrument
in writing relating to such account. See General 9, Section 67(b).
    \24\ The Exchange notes that the approval is not on a
transaction basis, rather it is on an account basis.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
Options 8, Section 11
    The Exchange's proposal to amend Options 8, Section 11, Floor
Market Maker and Lead Market Maker Appointment, does not impose an
intra-market burden on competition because all Floor Marker Makers will
be assigned in all options classes traded on the Exchange, provided the
Floor Market Maker continues to qualify as a Floor Market Maker on the
Exchange. The proposal will not require Floor Market Makers to quote in
additional options series to meet their trading requirements \25\
unless they elect to do so.
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    \25\ Floor Market Makers are not subject to continuous quoting
requirements pursuant to Options 8, Section 27(a). Further, Floor
Market Makers are required to trade either (a) 1,000 contracts and
300 transactions, or (b) 10,000 contracts and 100 transactions, on
the Exchange each quarter. Transactions executed in the trading
crowd where the contra-side is an ROT are not included. See Options
8, Section 27(f). In meeting the trading requirements, Floor Market
Makers are not required to quote in all assigned options series.

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    The Exchange's proposal to amend Options 8, Section 11, Floor
Market Maker and Lead Market Maker Appointment, does not impose an
inter-market burden on competition because Cboe \26\ also appoints its
Market-Maker to trade open outcry in all classes traded on Cboe.
Additionally, other options trading floors may elect to adopt a similar
rule.
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    \26\ See Cboe Rule 5.50(e).
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    Amending Options 3, Section 11(a) to specify that ``The Exchange,
in its discretion, may require a unit to obtain additional staff
depending upon the number of assigned options classes that is being
quoted and associated order flow'' does not impose an undue burden on
intra-market competition because the Exchange would continue to apply
this discretion in a fair manner by treating all similarly-situated
Floor Market Makers in the same manner.
    Amending Options 3, Section 11(a) to specify that ``The Exchange,
in its discretion, may require a unit to obtain additional staff
depending upon the number of assigned options classes that is being
quoted and associated order flow'' does not impose an undue burden on
inter-market competition because other options trading floors markets
may adopt a similar discretion.
Options 8, Section 16
    The Exchange's proposal to reserve Options 8, Section 16, Trading
for a Joint Account, does not impose an intra-market burden on
competition as no Phlx member on the trading floor would be subject to
the rule. Additionally, all Phlx members and member organizations would
be required to comply with General 9, Section 67.
    The Exchange's proposal to reserve Options 8, Section 16, Trading
for a Joint Account, does not impose an inter-market burden on
competition because other options trading floors may adopt similar
rules.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to section 19(b)(3)(A) of the Act \27\ and Rule 19b-
4(f)(6) thereunder.\28\
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    \27\ 15 U.S.C. 78s(b)(3)(A).
    \28\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \29\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \30\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the Exchange
may implement the proposed change and alleviate an administrative
burden. The Exchange states that assigning Floor Market Makers in all
options classes traded on the Exchange will enable Phlx to attract
additional liquidity to its trading floor allowing Floor Market Makers
to quote in all options classes traded on Phlx, without any burdensome
administrative barrier, and that the proposal will also remove the
manual process of completing a Floor Market Maker Assignment Form for
the benefit of both Phlx members and Exchange staff. The Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest because the
proposed rule change does not raise any new or novel issues.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposed rule change as operative upon filing.\31\
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    \29\ 17 CFR 240.19b-4(f)(6).
    \30\ 17 CFR 240.19b-4(f)(6)(iii).
    \31\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
file number SR-Phlx-2023-38 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-Phlx-2023-38. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection.
    All submissions should refer to file number SR-Phlx-2023-38 and
should be submitted on or before September 22, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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    \32\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-18895 Filed 8-31-23; 8:45 am]
BILLING CODE 8011-01-P


(2) The owner and operator of each source and each unit located in the State of Illinois and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Illinois' State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of Illinois and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Illinois' State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Illinois' SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart P -- Indiana
§ 52.789   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (b)
      (1) The owner and operator of each source and each unit located in the State of Indiana and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of Indiana and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Indiana's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of Indiana and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Indiana's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Indiana's SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE of GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart S -- Kentucky
§ 52.940   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (b)
      (1) The owner and operator of each source and each unit located in the State of Kentucky and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of Kentucky and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Kentucky's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of Kentucky and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Kentucky's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Kentucky's SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart T -- Louisiana
§ 52.984   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (d)
      (1) The owner and operator of each source and each unit located in the State of Louisiana and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of Louisiana and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements with regard to sources and units in the State will be eliminated by the promulgation of an approval by the Administrator of a revision to Louisiana's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv) for those sources and units, except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision. The obligation to comply with such requirements with regard to sources and units located in Indian country within the borders of the State will not be eliminated by the promulgation of an approval by the Administrator of a revision to Louisiana's SIP.
      (3) The owner and operator of each source and each unit located in the State of Louisiana and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements with regard to sources and units in the State will be eliminated by the promulgation of an approval by the Administrator of a revision to Louisiana's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v) for those sources and units, except to the extent the Administrator's approval is partial or conditional. The obligation to comply with such requirements with regard to sources and units located in Indian country within the borders of the State will not be eliminated by the promulgation of an approval by the Administrator of a revision to Louisiana's SIP.
      (4) Notwithstanding the provisions of paragraphs (d)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Louisiana's SIP revision described in paragraph (d)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart V -- Maryland
§ 52.1084   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (b)
      (1) The owner and operator of each source and each unit located in the State of Maryland and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of Maryland and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Maryland's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of Maryland and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Maryland's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Maryland's SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart X -- Michigan
§ 52.1186   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (e)
      (1) The owner and operator of each source and each unit located in the State of Michigan and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of Michigan and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements with regard to sources and units in the State will be eliminated by the promulgation of an approval by the Administrator of a revision to Michigan's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv) for those sources and units, except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision. The obligation to comply with such requirements with regard to sources and units located in Indian country within the borders of the State will not be eliminated by the promulgation of an approval by the Administrator of a revision to Michigan's SIP.
      (3) The owner and operator of each source and each unit located in the State of Michigan and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements with regard to sources and units in the State will be eliminated by the promulgation of an approval by the Administrator of a revision to Michigan's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v) for those sources and units, except to the extent the Administrator's approval is partial or conditional. The obligation to comply with such requirements with regard to sources and units located in Indian country within the borders of the State will not be eliminated by the promulgation of an approval by the Administrator of a revision to Michigan's SIP.
      (4) Notwithstanding the provisions of paragraphs (e)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Michigan's SIP revision described in paragraph (e)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart FF -- New Jersey
§ 52.1584   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (e)
      (1) The owner and operator of each source and each unit located in the State of New Jersey and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of New Jersey and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to New Jersey's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of New Jersey and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to New Jersey's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (e)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of New Jersey's SIP revision described in paragraph (e)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart HH -- New York
§ 52.1684   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (b)
      (1) The owner and operator of each source and each unit located in the State of New York and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of New York and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements with regard to sources and units in the State will be eliminated by the promulgation of an approval by the Administrator of a revision to New York's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv) for those sources and units, except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision. The obligation to comply with such requirements with regard to sources and units located in Indian country within the borders of the State will not be eliminated by the promulgation of an approval by the Administrator of a revision to New York's SIP.
      (3) The owner and operator of each source and each unit located in the State of New York and Indian country within the borders of the State and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements with regard to sources and units in the State will be eliminated by the promulgation of an approval by the Administrator of a revision to New York's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v) for those sources and units, except to the extent the Administrator's approval is partial or conditional. The obligation to comply with such requirements with regard to sources and units located in Indian country within the borders of the State will not be eliminated by the promulgation of an approval by the Administrator of a revision to New York's SIP.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of New York's SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart KK -- Ohio
§ 52.1882   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (b)
      (1) The owner and operator of each source and each unit located in the State of Ohio and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of Ohio and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Ohio's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of Ohio and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Ohio's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Ohio's SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart NN -- Pennsylvania
§ 52.2040   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (b)
      (1) The owner and operator of each source and each unit located in the State of Pennsylvania and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of Pennsylvania and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Pennsylvania's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of Pennsylvania and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Pennsylvania's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Pennsylvania's SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart VV -- Virginia
§ 52.2440   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (b)
      (1) The owner and operator of each source and each unit located in the State of Virginia and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of Virginia and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Virginia's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of Virginia and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to Virginia's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of Virginia's SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.

Subpart XX -- West Virginia
§ 52.2540   Interstate pollutant transport provisions; What are the FIP requirements for decreases in emissions of nitrogen oxides?
*     *     *     *     *
   (b)
      (1) The owner and operator of each source and each unit located in the State of West Virginia and for which requirements are set forth under the CSAPR NOX Ozone Season Group 1 Trading Program in subpart BBBBB of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2015 and 2016.
      (2) The owner and operator of each source and each unit located in the State of West Virginia and for which requirements are set forth under the CSAPR NOX Ozone Season Group 2 Trading Program in subpart EEEEE of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2017, 2018, 2019, and 2020. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to West Virginia's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(iv), except to the extent the Administrator's approval is partial or conditional, provided that because the CSAPR FIP was promulgated as a partial rather than full remedy for an obligation of the State to address interstate air pollution, the SIP revision likewise will constitute a partial rather than full remedy for the State's obligation unless provided otherwise in the Administrator's approval of the SIP revision.
      (3) The owner and operator of each source and each unit located in the State of West Virginia and for which requirements are set forth under the CSAPR NOX Ozone Season Group 3 Trading Program in subpart GGGGG of part 97 of this chapter must comply with such requirements with regard to emissions occurring in 2021 and each subsequent year. The obligation to comply with such requirements will be eliminated by the promulgation of an approval by the Administrator of a revision to West Virginia's State Implementation Plan (SIP) as correcting the SIP's deficiency that is the basis for the CSAPR Federal Implementation Plan (FIP) under § 52.38(b)(1) and (b)(2)(v), except to the extent the Administrator's approval is partial or conditional.
      (4) Notwithstanding the provisions of paragraphs (b)(2) and (3) of this section, the provisions of §§ 97.526(c), 97.826(c), and 97.811(d) of this chapter shall apply with respect to each source or other entity located in the State and all CSAPR NOX Ozone Season Group 1 allowances or CSAPR NOX Ozone Season Group 2 allowances at any time allocated to or held by any such source or other entity. Further, if, at the time of the approval of West Virginia's SIP revision described in paragraph (b)(2) or (3) of this section, the Administrator has already started recording any allocations of CSAPR NOX Ozone Season Group 2 allowances or CSAPR NOX Ozone Season Group 3 allowances under subpart EEEEE or GGGGG, respectively, of part 97 of this chapter to units in the State for a control period in any year, the provisions of such subpart authorizing the Administrator to complete the allocation and recordation of such allowances to units in the State for each such control period shall continue to apply, unless provided otherwise by such approval of the State's SIP revision.


domiciled motor carriers must establish financial responsibility, as
required by 49 CFR part 387, through an insurance carrier licensed in a
State in the United States. Based on the terms provided in the required
endorsement, FMCSA Form MCS-90, if there is a final judgment against
the motor carrier for loss and damages associated with a crash in the
United States, the insurer must pay the claim. The financial
responsibility claims would involve legal proceedings in the United
States and an insurer based here. There is no reason that a Mexico-
domiciled motor carrier, insured by a U.S.-based company, should be
required to have a greater level of insurance coverage than a U.S.-
based motor carrier.
    Increasing the minimum levels of financial responsibility for all
motor carriers is beyond the scope of this notice and would require a
rulemaking.
    In accordance with section 350(a)(1)(B)(iv), FMCSA must verify
participating motor carriers' proof of insurance through a U.S., State-
licensed insurer. As a result, participating motor carriers may not
self-insure.
12. Vehicle Inspection and Fleet Safety
    Teamsters expressed concern that only the segment of the motor
carrier's fleet participating in long-haul trucking would be inspected.
They also questioned how inspections at ``a rate comparable to other
Mexico-domiciled motor carriers'' will be effective. Additionally,
several commenters questioned what level of inspections would be
conducted during each phase of the pilot program.
    FMCSA Response: As noted previously, while only participating
vehicles will be inspected during the PASA, the maintenance of all of
the motor carrier's available vehicles that operate in the United
States will be subject to inspection during the CR. Additionally, motor
carriers currently operating within the border commercial zone are
subject to inspections on a routine basis. The inspection rate of
border commercial zone motor carriers is significantly higher than the
average U.S. motor carrier. As a result, at all stages of the program,
the participating motor carriers' drivers and vehicles are expected to
be inspected more frequently than those of the average U.S. motor
carrier.
    In FY 2010, FMCSA and its State partners conducted 2,614,052
commercial vehicle inspections on U.S.-based motor carriers with
4,125,778 CMVs. FMCSA and its State partners conducted 256,151 CMV
inspections on Mexico-domiciled motor carriers within the border
commercial zones with 29,566 CMVs. Thus, the inspections rates for
U.S.-based motor carriers and Mexico-domiciled motor carriers are
0.636336% and 8.6337% respectively. At an inspection rate that is 13
times greater for Mexico-domiciled motor carriers, FMCSA is confident
that the inspections performed on motor carriers during Stages 2 and 3
should be sufficient to ensure continued safe operations. Additionally,
Mexico-domiciled motor carriers that are in Stages 2 and 3 of the pilot
program are required to be inspected at least once every 90 days in
order to maintain a valid CVSA safety decal.
    FMCSA will use all available inspection levels as well as license/
insurance check inspections on the vehicles during the program. The
level of inspection chosen will depend on a number of factors including
the presence of a CVSA decal, previous history, and other observations
by the inspector. At a minimum, a Level I inspection will be conducted
if a CVSA decal has expired or will soon expire.
    It must also be noted that participating vehicles will be required
to maintain a current CVSA decal and must be inspected every 90 days.
This is not a requirement for U.S. motor carriers or border commercial
zone motor carriers.
13. Transparency
    Advocates requested that all of the Agency's agreements with Mexico
be subject to notice and comment and that each step in the pilot
program be subject as well.
    Advocates and ATA advised that the monitoring group should be
independent from the Agency's Motor Carrier Safety Advisory Committee
(MCSAC), and Advocates further indicated that under the Federal
Advisory Committee Act (FACA), the use of a subcommittee of a Federal
advisory committee to provide consensus advice and recommendations to a
Federal official is prohibited. Advocates questioned whether the MCSAC
participants comprised persons with backgrounds in basic research and
statistical analysis who can offer advice on how decisions made by the
monitoring group will affect the research design. Advocates requested
that FMCSA provide all reports to the

appropriate congressional authorities and the public in a timely
fashion.
    The Coalition requested that monthly or quarterly reports of data
collection be made available to the public.
    FMCSA Response: The FMCSA has added copies of the 1991 MOU
regarding CDL reciprocity and the 1998 MOU regarding drug and alcohol
testing protocols to the docket for this notice. However, these
documents are for informational purposes only and are not the subject
of comments as they were negotiated by the Governments of the United
States and Mexico more than a decade ago. The MOU between DOT and SCT
that has been under negotiation since January 2011, is not subject to
public comment, and the terms of that MOU have been explained in the
April 13, 2011, Federal Register notice. The terms for U.S.-domiciled
motor carriers wishing to travel south can be found in the draft rules
proposed by SCT, which have been placed in the docket.
    The FMCSA provided the opportunity for notice and comment on all
steps of this pilot program through the notice published on April 13,
2011, and will not be providing another notice.
    Regarding the monitoring groups, FMCSA clarifies that there will be
a government monitoring group to discuss bi-lateral operational issues.
In addition, there will be an independent monitoring group.
    The FMCSA agrees that the group must be independent from the
Agency. As a result, FMCSA continues to believe that the most efficient
and effective process is to establish a subcommittee of the MCSAC. The
MCSAC has proven itself to be independent of the Agency. We, however,
want to clarify that the subcommittee would be able to invite input
from individuals outside the MCSAC itself and would report out through
the Committee. As a result, consistent with FACA requirements, only the
MCSAC will transmit recommendations and advice to the FMCSA
Administrator. FMCSA will make reports of the monitoring group
available to the appropriate congressional committees and the public in
a timely manner.
    The FMCSA will maintain a comprehensive Web site dedicated to this
pilot program to keep the public informed about how the program
progresses. In addition to the specific information mentioned within
this notice, FMCSA will publish the name and DOT Number of each
participating motor carrier, the Vehicle Identification Numbers (VIN)
of all vehicles approved for long-haul transportation, details on the
driver/vehicle inspections the motor carrier has received, and details
on any crashes involving the motor carrier. FMCSA will also publish
aggregate data regarding the number of trips taken by participating
motor carriers and the destinations of those trips.
14. Resources
    Senator John D. Rockefeller expressed a concern about the adequacy
of FMCSA, State law enforcement, and Immigration and Customs
Enforcement (ICE) resources to support the program. Representative
Hunter indicated he believed the Agency had gaps in its ability to
properly manage the previous program. OOIDA indicated that based on
contacts at the International Association of Chiefs of Police, more
training on cabotage is needed.
    The Texas Department of Motor Vehicles recommends that FMCSA
provide financial assistance to the Border States to off-set the Border
States' administrative and enforcement expenses related to the pilot
program.
    FMCSA Response: The FMCSA notes that the number of Mexico-domiciled
motor carriers and vehicles that will participate in the pilot program
is extremely small compared to the population of motor carriers and
vehicles currently operating within the border commercial zones. Most
of the motor carriers that would participate in the pilot program
already have authority to operate in the border commercial zones, so
their participation in the program would not result in a significant
increase in the population of Mexico-domiciled motor carriers operating
in the United States. Further, as to concerns regarding possible
strains on border inspection facility capacity, it should be noted that
FMCSA has no reason to believe the number of Mexican trucks crossing
the border during the pilot program will increase significantly because
the cargo carried by the long-haul trucks would have crossed the border
in any event via short-haul, border commercial zone trucks.
    The FMCSA and its State partners have sufficient staff, facilities,
equipment, and procedures in place to meet the requirements of this
pilot program. This conclusion is based on the Agency's experience
providing safety oversight for Mexico-domiciled motor carriers
currently authorized to operate within the border commercial zones and
on its regular liaison with its State enforcement partners with whom
the Agency has worked for years in anticipation of the opening of the
border to long-haul Mexico-domiciled motor carriers. In fact, during
the previous program, FMCSA was able to confirm that over 99 percent of
the participating vehicles received an inspection at the border.
Further, FMCSA can find no evidence that the remaining less than one
percent of the vehicles were not inspected as they crossed the border,
and neither the OIG, nor the Independent Panel, nor any other entity
has identified any vehicles that crossed without an inspection. FMCSA
currently employs 260 Federal personnel dedicated to border enforcement
activities.
    In response to the OOIDA's concerns about the burden on the States
for providing safety oversight for Mexico-domiciled motor carriers and
the Texas Department of Motor Vehicles comment regarding making funding
available to Border States, FMCSA is authorized under 49 U.S.C. 31107
to provide border enforcement grants for carrying out CMV safety
programs and related enforcement activities and projects and has $32
million available in FY2011 for this purpose. The Agency's State
partners along the border employ 456 State officials for this purpose.
Therefore, the Congress has provided funding for enforcement resources
dedicated exclusively to ensuring the safe operation of foreign-
domiciled motor carrier operations.
    The FMCSA works with the States to ensure that motor carrier safety
enforcement personnel receive extensive training. From 2008 to date,
over 5,800 State motor carrier safety inspectors have received North
American Standard (NAS) inspection procedures training. The NAS
training course is designed to provide State motor carrier safety
enforcement personnel with the basic knowledge, skills, practices, and
procedures necessary for performing inspections under the Motor Carrier
Safety Assistance Program (MCSAP).
    Additionally, through the Agency's partnership with the
International Association of Chiefs of Police (IACP), four Foreign CMV
Awareness Training sessions have been conducted on a recurring basis
including a session that covers cabotage laws. Approximately 215
officers were certified to train law enforcement officers throughout
the United States using this course which includes cabotage
information.
    The training these officers will provide to other law enforcement
officials will ensure patrol officers are informed about potential
safety and enforcement issues involving foreign-based CMVs and drivers
operating beyond the border commercial zones. Therefore, not only has
FMCSA provided funding resources to support the States' role in
providing Safety oversight for Mexico-domiciled motor

carriers operating in the United States, the Agency has provided
training. Presently, 1,755 law enforcement officers have received such
training.
    Finally, during the program, FMCSA will monitor for domestic point-
to-point transportation violations using the information obtained from
the GPS feature of the electronic monitoring devices installed on the
vehicles and during CRs.
15. Impact on Truck Drivers, Small Fleets and Businesses
    Over 1,000 commenters felt that this pilot program would have a
negative economic impact on the United States at a time when
unemployment was high.
    FMCSA Response: The FMCSA does not believe the pilot program will
have a significant adverse impact on U.S. motor carriers or drivers. As
an initial matter, however, it is important to note that FMCSA lacks
the authority to alter the terms under which Mexico-domiciled motor
carriers operate in the United States based on the possible economic
impact of those motor carriers on U.S. motor carriers. FMCSA's
responsibility, pursuant to the November 2002 presidential order, is to
implement NAFTA's motor carrier provisions in a manner consistent with
the motor carrier safety laws.
    While the wages for a Mexico-domiciled driver may differ from those
of a U.S.-domiciled driver, wages represent only one factor in the cost
of a trucking operation. The costs for safety management controls to
achieve full compliance with U.S. safety requirements, equipment
maintenance, fuel, taxes and insurance costs must also be considered.
Therefore, driver wages alone should not be considered the determining
factor for an economic advantage.
    Also, Mexico-domiciled motor carriers cannot compete against U.S.-
domiciled motor carriers for point-to-point deliveries of domestic
freight within the United States. Section 365.501(b) of title 49, Code
of Federal Regulations, provides that ''a Mexico-domiciled motor
carrier may not provide point-to-point transportation services,
including express delivery services, within the United States for goods
other than international cargo.'' FMCSA notes that engaging in domestic
point-to-point transportation in the U.S. is operating beyond the scope
of a Mexico-domiciled motor carrier's authority, and FMCSA and its
State partners are actively engaged in enforcing this regulation.
Vehicles caught in this practice will be placed out-of-service,
participating motor carriers may be subject to civil penalties of up to
$11,000 and more comprehensive review of operations by FMCSA, and they
could be removed from the pilot program.
16. Concerns About Furthering Illegal Activity
    Numerous commenters noted the existence of drug cartels in Mexico
and expressed concern that the long-haul program would increase drug
trafficking.
    FMCSA Response: The FMCSA disagrees with the commenters on this
issue. FMCSA is not aware of any information that would suggest the
pilot program will increase the extent to which illegal activities
occur. Mexico-domiciled motor carriers are already allowed to operate
in border commercial zones. Many of the motor carriers that may apply
for authority to operate beyond the border commercial zones and
participate in the pilot program are already conducting CMV operations
in the U.S., albeit limited to the border commercial zones. Moreover,
as noted above, FMCSA does not anticipate that the pilot program will
result in a substantial increase in the number of Mexican trucks
crossing the border. It follows that the pilot program will not
increase instances of cross-border drug smuggling in any significant
way.
    Finally, as the U.S. Immigration and Customs Enforcement's
inspections of long-haul trucks will not change as a result of this
pilot, we do not believe this program introduces any new risks.

FMCSA's Intent To Proceed With Pilot Program

    In consideration of the above, FMCSA believes it is appropriate to
commence the pilot program after the Department's Inspector General
completes his report to Congress, as required by section 6901(b)(1) of
the 2007 Appropriations Act, and the Agency completes any follow-up
actions needed to address any issues that may be raised in the report.
FMCSA reiterates that before an applicant Mexico-domiciled motor
carrier may receive operating authority, it must submit a complete and
accurate application; complete the DHS security review process;
successfully complete the PASA; and file with FMCSA evidence of
adequate insurance from a U.S. company. In addition, as stated above,
FMCSA will complete reviews of Mexican licensing facilities to ensure
compliance with the 1991 MOU before granting authority. FMCSA does not
anticipate that any Mexico-domiciled motor carrier seeking
participation in the pilot program will receive its provisional
operating authority before the first weeks of August 2011.

    Issued on: June 29, 2011.
William Bronrott,
Deputy Administrator.
[FR Doc. 2011-16886 Filed 7-7-11; 8:45 am]
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