[Federal Register Volume 79, Number 72 (Tuesday, April 15, 2014)]
[Notices]
[Pages 21337-21340]
[FR Doc No: 2014-08412]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71909; File No. SR-NYSEARCA-2014-28]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change, as Modified by
Amendment No. 1, Amending Rule To Change the Time By Which Purchase
Orders and Redemption Orders Must Be Placed With Respect to the Market
Vectors Low Volatility Commodity ETF and Market Vectors Long/Short
Commodity ETF

April 9, 2014.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on March 28, 2014, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change, which filing was amended by
Amendment No. 1 thereto on April 2, 2014,\4\ 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ In Amendment No. 1, the Exchange corrected erroneous
references to the term ``Adviser'' in the Filing and replaced such
references with the term ``Managing Owner.''
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is submitting a proposed rule change to change the
time by which purchase orders and redemption orders must be placed with
respect to the Market Vectors Low Volatility Commodity ETF and Market
Vectors Long/Short Commodity ETF (the ``Funds''). The Commission has
approved listing and trading of shares of the Funds on the Exchange
under NYSE Arca Equities Rule 8.200. The text of the proposed rule
change is available on the Exchange's Web site at www.nyse.com, 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 self-regulatory organization
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 those 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 parts of such statements.

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

1. Purpose
    The Commission has approved listing and trading on the Exchange of
shares (``Shares'') of the following under NYSE Arca Equities Rule
8.200: Market Vectors Low Volatility Commodity ETF (``Low Volatility
ETF'') and Market Vectors Long/Short Commodity ETF (``Long/Short ETF'')
under NYSE Arca Equities Rule 8.200, which governs the listing and
trading of Trust Issued Receipts.\5\ Shares of the Funds have not yet
commenced trading on the Exchange.
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    \5\ See Securities Exchange Act Release No. 70209 (August 15,
2013), 78 FR 51769 (August 21, 2013) (SR-NYSEArca-2013-60) (Order
Granting Approval of Proposed Rule Change to List and Trade Shares
of Market Vectors Low Volatility Commodity ETF and Market Vectors
Long/Short Commodity ETF under NYSE Arca Equities Rule 8.200)
(``Prior Order''). See also See Securities Exchange Act Release No.
69862 (June 26, 2013), 78 FR 39810 (July 2, 2013) (SR-NYSEArca-2013-
60) (``Prior Notice,'' and together with the Prior Order, the
``Prior Release'').
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    Each Fund is a series of the Market Vectors Commodity Trust (the
``Trust''), a Delaware statutory trust.\6\
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    \6\ The Trust filed a pre-effective amendment to its
registration statements with respect to the Funds on Form S-1 under
the Securities Act of 1933 (``1933 Act'') on December 7, 2012 (File
No. 333-179435 for the Low Volatility ETF (``Low Volatility
Registration Statement'') and File No. 333-179432 for the Long/Short
ETF (``Long/Short Registration Statement'' and, together with the
Low Volatility Registration Statement, the ``Registration
Statements'')). The descriptions of the Funds and the Shares
contained herein are based, in part, on the Registration Statements.
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    Van Eck Absolute Return Advisers Corp. is the managing owner of the
Funds (``Managing Owner''). The Managing Owner also serves as the
commodity pool operator and commodity trading advisor of the Funds. The
Managing Owner is registered as a commodity pool operator and commodity
trading advisor with the Commodity Futures Trading Commission
(``CFTC''), and is a member of National Futures Association. Wilmington
Trust, National Association (``Trustee''), a national bank with its
principal place of business in Delaware, is the sole trustee of the
Trust. The Bank of New York Mellon will be the custodian, administrator
and transfer agent for the Funds.
    In this proposed rule change, the Exchange proposes to change the
time by which purchase orders and redemption orders must be placed. The
Prior Release stated that purchase orders and redemption orders to
create and redeem one or more blocks of 50,000 Shares (``Baskets'') of
the Funds must be placed by authorized participants by 1:00 p.m.
Eastern Time (``E.T.''). The Exchange proposes to change this
representation to state that purchase orders and redemption orders to
create Basket size aggregations of Shares of the Funds must be placed
by authorized participants by 11:00 a.m. E.T.\7\ The Managing Owner
represents that, upon further analysis, it believes that an 11:00 a.m.
E.T. cut-off time, rather than a 1:00 p.m. E.T. cut-off time for
placing orders to create or redeem Shares of the Funds will permit it
to more efficiently process orders to create and redeem such Shares.
Trading in certain of the futures contracts in the Morningstar[supreg]
Long/Flat Commodity Index and the Morningstar[supreg] Long/Short
Commodity Index closes as early as 1:00 p.m. E.T., and trading in a
substantial number of other component futures contracts closes at 2:00
p.m. E.T. or earlier. The Managing Owner represents that, in view of
the varying closing times for applicable futures contracts, an earlier
cut-off time could permit the Managing Owner to more efficiently engage
in transactions in the applicable futures markets in connection with
orders to create or redeem Shares, which may help reduce the premium or
discount on the Shares, and reduce the difference between the price of
the Shares and the NAV of such Shares.\8\
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    \7\ The changes described herein will be effective upon filing
with the Commission of another amendment to the Registration
Statements. See note 6, supra. The Managing Owner represents that it
will not implement the changes described herein until the instant
proposed rule change is operative.
    \8\ As stated in the Prior Release, the Market Vectors Low
Volatility Commodity ETF and Market Vectors Long/Short Commodity ETF
seek to track changes, whether positive or negative, in the
performance of the Morningstar[supreg] Long/Flat Commodity Index and
Morningstar[supreg] Long/Short Commodity Index, respectively, over
time.
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    The Exchange notes that the Commission previously has approved
representations relating to issues of Trust Issued Receipts whereby the
cut-off time for placing orders to create or redeem shares of an issue
of Trust Issued Receipts is earlier than 1:00 p.m. E.T.\9\
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    \9\ See, e.g., Securities Exchange Act Release No. 63915
(February 15, 2011), 76 FR 9843 (February 22, 2011) (SR-NYSEArca-
2010-121) (order approving listing and trading on the Exchange of
FactorShares Funds under NYSE Arca Equities Rule 8.200); 63753
(January 21, 2011), 76 FR 4963 (January 27, 2011) (SR-NYSEArca-2010-
110) (order approving listing and trading of shares of Teucrium
Natural Gas Fund under NYSE Arca Equities Rule 8.200); 63869
(February 8, 2011), 76 FR 8799 (February 15, 2011) (SR-NYSEArca-
2010-119) (order approving listing and trading of shares of Teucrium
WTI Crude Oil Fund under NYSE Arca Equities Rule 8.200).
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    The Adviser represents that there is no change to the Funds'
investment objectives from those described in the Prior Release. The
Funds will comply with all initial and continued listing requirements
under NYSE Arca Equities Rule 8.200.
    Except for the changes noted above, all other facts presented and
representations made in the Prior Release remain unchanged.
    All terms referenced but not defined herein are defined in the
Prior Release.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \10\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
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    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
8.200. The Exchange notes that the Commission previously has approved
representations relating to issues of Trust Issued Receipts whereby the
cut-off time for placing orders to create or redeem shares of an issue
of Trust Issued Receipts is earlier than 1:00 p.m. E.T.\11\
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    \11\ See note 9, supra.
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    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Adviser represents that there is no change to each Fund's
investment objective as described in the Prior Release. The Funds will
comply with all initial and continued listing requirements under NYSE
Arca Equities Rule 8.200. The Managing Owner represents that, upon
further analysis, it believes that an 11:00 a.m. E.T. cut-off time,
rather than a 1:00 p.m. E.T. cut-off time for placing orders to create
or redeem Shares of the Funds will permit it to more efficiently
process orders to create and redeem Shares. Trading in certain of the
futures

contracts in the Morningstar[supreg] Long/Flat Commodity Index and the
Morningstar[supreg] Long/Short Commodity Index closes as early as 1:00
p.m. E.T., and trading in a substantial number of other component
futures contracts closes at 2:00 p.m. E.T. or earlier. The Managing
Owner represents that, upon further analysis, it believes that an 11:00
a.m. E.T. cut-off time, rather than a 1:00 p.m. E.T. cut-off time for
placing orders to create or redeem Shares of the Funds will permit it
to more efficiently process orders to create and redeem such Shares.
The Managing Owner represents that, in view of the varying closing
times for applicable futures contracts, an earlier cut-off time could
permit the Managing Owner to more efficiently engage in transactions in
the applicable futures markets in connection with orders to create or
redeem Shares, which may help reduce the premium or discount on the
Shares, and reduce the difference between the price of the Shares and
the NAV of such Shares. The proposed rule change is designed to perfect
the mechanism of a free and open market and, in general, to protect
investors and the public interest in that the Funds will comply with
all initial and continued listing requirements under NYSE Arca Equities
Rule 8.200. The Managing Owner represents that there is no change to
the Funds' investment objectives. Except for the change noted above,
all other representations made in the Prior Release remain unchanged.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed change to the
Funds' means of achieving their respective investment objective may
permit the Funds to more efficiently handle orders to create and redeem
Shares of the Funds and will enhance competition among issues of Trust
Issued Receipts based on underlying commodity indexes.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, if consistent with
the protection of investors and the public interest, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\12\ and Rule 19b-4(f)(6)(iii) thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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) \14\ normally
does not become operative for 30 days after the date of the filing.
However, Rule 19b4(f)(6)(iii) \15\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange requests that the
Commission waive the 30-day operative delay to accommodate commencement
of trading in the Shares of the Funds on the Exchange without delay.
The Exchange states that the Managing Owner intends that trading of the
Shares on the Exchange will commence prior to the 30-day delayed
operative date.
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    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\16\ As stated in this proposal, the proposed change does not
alter the Funds' investment objectives. Under the proposal, the Funds
seek to change the time by which purchase orders and redemption orders
to create and redeem Basket size aggregations of Shares of the Funds
must be placed by authorized participants from 1:00 p.m. E.T. to 11:00
a.m. E.T. The Managing Owner represents that it believes that an 11:00
a.m. E.T. cut-off time, rather than a 1:00 p.m. E.T. cut-off time will
permit it to more efficiently process orders to create and redeem
Shares. The Exchange represents that, except for this change, all other
representations made in the Prior Release remain unchanged and that the
Funds will continue to comply with all initial and continued listing
requirements under NYSE Arca Equities Rule 8.200. Because the proposed
change does not alter the Funds' investment objectives and does not
raise any novel or unique regulatory issues, the Commission designates
the proposed rule change as operative upon filing.
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    \16\ 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.

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-NYSEArca-2014-28 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-NYSEArca-2014-28. 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 filing will also be available
for inspection and copying at the principal office of the Exchange. 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-NYSEArca-2014-28 and should
be submitted on or before May 6, 2014.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-08412 Filed 4-14-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: June 28, 2006 (Volume 71, Number 124)]
[Notices]
[Page 36765]
[DOCID:fr28jn06-59]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP06-290-001]

CenterPoint Energy Gas Transmission Company; Notice of Revenue
Crediting Report

June 20, 2006.
    Take notice that on June 14, 2006, CenterPoint Energy Gas
Transmission Company (CEGT) tendered for filing as part of its FERC Gas
Tariff, Sixth Revised Volume No. 1, Substitute Eighth Revised Sheet No.
18, to be effective May 1, 2006.
    CEGT states that this tariff sheet is being filed to correct a
calculation error for the NNTS Small Customer rate.
    Any person desiring to protest this filing must file in accordance
with Rule 211 of the Commission's Rules of Practice and Procedure (18
CFR 385.211). Protests to this filing will be considered by the
Commission in determining the appropriate action to be taken, but will
not serve to make protestants parties to the proceeding. Such protests
must be filed on or before the date as indicated below. Anyone filing a
protest must serve a copy of that document on all the parties to the
proceeding.
    The Commission encourages electronic submission of protests in lieu
of paper using the ``eFiling'' link at http://www.ferc.gov. Persons

unable to file electronically should submit an original and 14 copies
of the protest to the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail at
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. Eastern Time on June 27, 2006.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-10159 Filed 6-27-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 82, Number 183 (Friday, September 22, 2017)]
[Proposed Rules]
[Pages 44361-44363]
[FR Doc No: 2017-20052]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0911; Product Identifier 2017-CE-025-AD]
RIN 2120-AA64

Airworthiness Directives; Alexander Schleicher GmbH & Co.
Segelflugzeugbau Gliders

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for all
Alexander Schleicher GmbH & Co. Segelflugzeugbau Models ASH 25M and ASH
26E gliders. This proposed AD results from mandatory continuing
airworthiness information (MCAI) originated by an aviation authority of
another country to identify and correct an unsafe condition on an
aviation product. The MCAI describes the unsafe condition as fatigue
cracks found on the exhaust silencer. We are issuing this proposed AD
to require actions to address the unsafe condition on these products.

DATES: We must receive comments on this proposed AD by November 6,
2017.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    For service information identified in this proposed AD, contact
Alexander Schleicher GmbH & Co. Segelflugzeugbau, Alexander-Schleicher-
Str. 1, D-36163 Poppenhausen, Germany; phone: +49 (0) 06658 89-0; fax:
+49 (0) 06658 89-40; Internet: http://www.alexander-schleicher.de/;
email<EMAIL_ADDRESS>You may review this referenced
service information at the FAA, Policy and Innovation Division, 901
Locust, Kansas City, Missouri

64106. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0911; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this proposed AD, the regulatory evaluation, any comments
received, and other information. The street address for the Docket
Office (telephone<PHONE_NUMBER>) is in the ADDRESSES section. Comments
will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Jim Rutherford, Aerospace Engineer,
FAA, Small Airplane Standards Branch, 901 Locust, Room 301, Kansas
City, Missouri 64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>;
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2017-0911;
Product Identifier 2017-CE-025-AD'' at the beginning of your comments.
We specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of this proposed AD. We will consider
all comments received by the closing date and may amend this proposed
AD because of those comments.
    We will post all comments we receive, without change, to http://regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued AD
No. 2017-0136, dated July 31, 2017 (referred to after this as ``the
MCAI''), to correct an unsafe condition for the specified products. The
MCAI states:

    Occurrences were reported of finding cracks on exhaust silencer
part number (P/N) 800.65.0001, installed on ASK 21 Mi powered
sailplanes. Subsequent investigation determined that the affected
part is susceptible to fatigue cracking and is also installed on
other Schleicher powered sailplanes.
    This condition, if not corrected, could lead to heat damage in
the engine compartment and to the engine installation, possibly
resulting in reduced control of the powered sailplane.
    To address this potentially unsafe condition, Schleicher issued
Technical Note (TN) ASK 21 Mi No. 11, TN ASW 22 BLE 50R No. 16, TN
ASH 25 M/Mi No. 32 and TN ASH 26 E No. 19 (single document,
hereafter referred to as `the TN' in this [EASA] AD), to provide
replacement instructions.
    For the reasons described above, this [EASA] AD requires
replacement of the affected exhaust silencer with an improved part
and introduces installation restrictions of a part with P/N
800.65.0001.

You may examine the MCAI on the Internet at http://www.regulations.gov
by searching for and locating Docket No. FAA-2017-0911.

Related Service Information Under 1 CFR Part 51

    Alexander Schleicher GmbH & Co. Segelflugzeugbau has issued ASK 21
Mi Technical Note No. 11, ASW 22 BLE 50R Technical Note No. 16, ASH 25
M/Mi Technical Note No. 32, ASH 26 E Technical Note No. 19 (single
document), dated January 8, 2016. The service information describes
procedures for replacing the exhaust silencer with an improved part.
This service information is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section of this NPRM.

FAA's Determination and Requirements of the Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with this State of Design Authority, they
have notified us of the unsafe condition described in the MCAI and
service information referenced above. We are proposing this AD because
we evaluated all information and determined the unsafe condition exists
and is likely to exist or develop on other products of the same type
design.

Costs of Compliance

    We estimate that this proposed AD will affect 35 products of U.S.
registry. We also estimate that it would take about 8 work-hours per
product to comply with the basic requirements of this proposed AD. The
average labor rate is $85 per work-hour. Required parts would cost
about $3,900 per product.
    Based on these figures, we estimate the cost of this proposed AD on
U.S. operators to be $160,300, or $4,580 per product.
    We have no way of determining the number of products that have an
affected exhaust silencer, part number 800.65.0001, installed that
would need to be replaced. Therefore, this cost estimate includes all
affected gliders on the U.S. registry.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, section 44701: General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to small airplanes, gliders, and
domestic business jet transport airplanes to the Director of the Policy
and Innovation Division.

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under the DOT Regulatory Policies
and

Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new AD:

Alexander Schleicher GmbH & Co. Segelflugzeugbau: Docket No. FAA-
2017-0911; Product Identifier 2017-CE-025-AD.

(a) Comments Due Date

    We must receive comments by November 6, 2017.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Alexander Schleicher GmbH & Co.
Segelflugzeugbau Models ASH 25M and ASH 26E gliders, all serial
numbers, that:
    (1) Have an exhaust silencer, part number (P/N) 800.65.0001,
installed; and
    (2) are certificated in any category.

(d) Subject

    Air Transport Association of America (ATA) Code 78: Engine
Exhaust.

(e) Reason

    This AD was prompted by mandatory continuing airworthiness
information (MCAI) originated by an aviation authority of another
country to identify and correct an unsafe condition on an aviation
product. The MCAI describes the unsafe condition as fatigue cracks
found on the exhaust silencer. We are issuing this AD to prevent
heat damage in the engine compartment and to the engine
installation, which could result in reduced control.

(f) Actions and Compliance

    Unless already done, do the following actions:
    (1) Before exceeding 150 hours time-in-service (TIS) on the
exhaust silencer, (P/N) 800.65.0001, since new, or within the next 5
hours TIS after the effective date of this AD, whichever occurs
later, replace P/N 800.65.0001 with an improved exhaust silencer, P/
N 800.65.9010. Do the replacement as specified in Alexander
Schleicher GmbH & Co. Segelflugzeugbau ASK 21 Mi Technical Note No.
11, ASW 22 BLE 50 R Technical Note No. 16, ASH 25 M/Mi Technical
Note No. 32, ASH 26 E Technical Note No. 19 (single document), dated
January 8, 2016.
    (2) As of the effective date of this AD, do not install a P/N
800.65.0001 exhaust silencer.

(g) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Small Airplane Standards Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. Send information to ATTN: Jim Rutherford, Aerospace Engineer,
FAA, Small Airplane Standards Branch, 901 Locust, Room 301, Kansas
City, Missouri 64106; telephone:<PHONE_NUMBER>; fax: (816) 329-
4090; email<EMAIL_ADDRESS>Before using any approved AMOC
on any glider to which the AMOC applies, notify your appropriate
principal inspector (PI) in the FAA Flight Standards District Office
(FSDO), or lacking a PI, your local FSDO.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, Small Airplane
Standards Branch, FAA; or the European Aviation Safety Agency
(EASA).

(h) Related Information

    Refer to MCAI EASA AD 2017-0136, dated July 31, 2017, for
related information. You may examine the MCAI on the Internet at
http://www.regulations.gov by searching for and locating Docket No.
FAA-2017-0911. For service information related to this AD, contact
Alexander Schleicher GmbH & Co. Segelflugzeugbau, Alexander-
Schleicher-Str. 1, D-36163 Poppenhausen, Germany; phone: +49 (0)
06658 89-0; fax: +49 (0) 06658 89-40; Internet: http://www.alexander-schleicher.de/; email<EMAIL_ADDRESS>
You may review this referenced service information at the FAA,
Policy and Innovation Division, 901 Locust, Kansas City, Missouri
64106. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>.

    Issued in Kansas City, Missouri, on September 14, 2017.
Pat Mullen,
Acting Deputy Director, Policy & Innovation Division, Aircraft
Certification Service.
[FR Doc. 2017-20052 Filed 9-21-17; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 84, Number 58 (Tuesday, March 26, 2019)]
[Notices]
[Pages 11375-11379]
[FR Doc No: 2019-05704]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85375; File No. SR-NYSEArca-2018-98]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendment No. 2 and Order Instituting Proceedings To Determine
Whether To Approve or Disapprove a Proposed Rule Change, as Modified by
Amendment No. 2, To List and Trade Shares of the iShares Commodity
Multi-Strategy ETF Under NYSE Arca Rule 8.600-E

March 20, 2019.

I. Introduction

    On December 21, 2018, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the
iShares Commodity Multi-Strategy ETF (``Fund'') under NYSE Arca Rule
8.600-E. On February 1, 2019, pursuant to Section 19(b)(1) of the
Act,\3\ the Commission noticed the proposed rule change and, pursuant
to Section 19(b)(2) of the Act,\4\ designated a longer period within
which to approve the proposed rule change, disapprove the proposed rule
change, or institute proceedings to determine whether to approve or
disapprove the proposed rule change.\5\ On March 6, 2019, the Exchange
filed Amendment No. 1 to the proposed rule change, which replaced and
superseded the proposed rule change as originally filed.\6\ On March
14, 2019, the Exchange filed Amendment No. 2 to the proposed rule
change, which replaced and superseded the proposed rule change, as
modified by Amendment No. 1.\7\ The Commission has received no comment
letters on the proposal. The Commission is publishing this notice and
order to solicit comments on the proposed rule change, as modified by
Amendment No. 2, from interested persons and to institute proceedings
pursuant to Section 19(b)(2)(B) of the Act \8\ to determine whether to
approve or disapprove the proposed rule change, as modified by
Amendment No. 2.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(1).
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 85033, 84 FR 2618
(February 7, 2019). The Commission designated March 21, 2019, as the
date by which the Commission shall approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether to approve or disapprove the proposed rule change.
    \6\ Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nysearca-2018-98/srnysearca201898-5031693-183046.pdf.
    \7\ In Amendment No. 2, the Exchange: (1) Identified the
Reference Benchmark (as defined below); (2) clarified that the Fund
is not obligated to invest in any futures contracts included in, and
does not seek to replicate the performance of, the Reference
Benchmark; (3) modified the types of derivative instruments and
reference assets for such derivative instruments that the Fund may
invest in; (4) clarified that commodity-linked notes are among the
Fixed Income Instruments (as defined below) that the Fund may invest
in; (5) specified that the Fund may invest in ETNs and ETFs (each as
defined below); (6) added a representation that to the extent the
Trust (as defined below) effects the redemption of Shares in cash,
such transactions will be effected in the same manner or in an
equitable manner for all Authorized Participants (as defined below),
subject to the best interests of the Fund; (7) added a
representation that the Fund's holdings in OTC Derivatives (as
defined below) will satisfy the criteria applicable to holdings in
listed derivatives in Commentary .01(d)(2) to NYSE Arca Rule 8.600-E
on an initial and continued listing basis; (8) added a
representation that the Adviser (as defined below) and its
affiliates actively monitor counterparty credit risk exposure
(including for OTC derivatives) and evaluate counterparty credit
quality on a continuous basis; (8) stated that the Reference
Benchmark price is available via Bloomberg and that the Reference
Benchmark methodology and constituent list is available via ICE Data
Services; and (9) made technical and conforming changes. Amendment
No. 2 is available at: https://www.sec.gov/comments/sr-nysearca-2018-98/srnysearca201898-5123714-183326.pdf.
    \8\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

II. Summary of the Exchange's Description of the Proposal, as Modified
by Amendment No. 2 \9\
---------------------------------------------------------------------------

    \9\ For a complete description of the Exchange's proposal, see
Amendment No. 2, supra note 7.
---------------------------------------------------------------------------

    The Exchange proposes to list and trade Shares of the Fund under
NYSE Arca Rule 8.600-E, which governs the listing and trading of
Managed Fund Shares on the Exchange. The Shares will be offered by
iShares U.S. ETF Trust (``Trust''), which is registered with the
Commission as an open-end management investment company.\10\ The Fund
is a series of the Trust.
---------------------------------------------------------------------------

    \10\ According to the Exchange, on December 3, 2018, the Trust
filed with the Commission its registration statement on Form N-1A
under the Securities Act of 1933 and under the Investment Company
Act of 1940 (``1940 Act'') relating to the Fund (File Nos. 333-
179904 and 811-22649) (``Registration Statement''). In addition, the
Exchange states that the Commission has issued an order upon which
the Trust may rely, granting certain exemptive relief under the 1940
Act. See Investment Company Act Release No. 29571 (January 24, 2011)
(File No. 812-13601).
---------------------------------------------------------------------------

    BlackRock Fund Advisors (``Adviser'') will be the investment
adviser for the Fund.\11\ BlackRock Investments, LLC will be the
distributor for the Fund's Shares. State Street Bank and Trust Company
will serve as the administrator, custodian and transfer agent for the
Fund.
---------------------------------------------------------------------------

    \11\ According to the Exchange, the Adviser is not registered as
a broker-dealer but is affiliated with a broker-dealer, and has
implemented and will maintain a fire wall with respect to its
broker-dealer affiliate regarding access to information concerning
the composition and/or changes to the portfolio. In the event (a)
the Adviser becomes registered as a broker-dealer or newly
affiliated with a broker-dealer, or (b) any new adviser or sub-
adviser is a registered broker-dealer or becomes affiliated with a
broker-dealer, it will implement and maintain a fire wall with
respect to its relevant personnel or its broker-dealer affiliate
regarding access to information concerning the composition and/or
changes to the portfolio, and will be subject to procedures designed
to prevent the use and dissemination of material non-public
information regarding such portfolio. The Exchange also represents
that the Adviser and its related personnel are subject to the
provisions of Rule 204A-1 under the Investment Advisers Act of 1940
relating to codes of ethics.
---------------------------------------------------------------------------

A. Fund Investments

    According to the Exchange, the investment objective of the Fund
will be to seek to provide exposure, on a total return basis, to a
group of commodities with characteristics of carry, momentum, and
value. The Fund is actively managed and seeks to achieve its investment
objective in part \12\ by, under normal market conditions,\13\
investing in listed and over-the-counter (``OTC'') total return swaps
referencing the ICE BofAML Commodity Multi-Factor Total Return Index
(``Reference Benchmark'').\14\ In connection with

investments in swaps on the Reference Benchmark, the Fund is expected
to establish new swaps contracts on an ongoing basis and replace
expiring contracts.\15\ Swaps subsequently entered into by the Fund may
have terms that differ from the swaps the Fund previously held. The
Fund expects generally to pay a fixed payment rate and certain swap
related fees to the swap counterparty and receive the total return of
the Reference Benchmark, including in the event of negative performance
by the Reference Benchmark, negative return (i.e., a payment from the
Fund to the swap counterparty). In seeking total return, the Fund
additionally aims to generate interest income and capital appreciation
through a cash management strategy consisting primarily of cash, cash
equivalents,\16\ and fixed income securities other than cash
equivalents, as described below.
---------------------------------------------------------------------------

    \12\ The Fund's investment objective is also achieved by
investing in cash, cash equivalents, Commodity Investments, Fixed
Income Securities and Short-Term Fixed Income Securities (each as
defined or described below).
    \13\ The term ``normal market conditions'' is defined in NYSE
Arca Rule 8.600-E(c)(5).
    \14\ Although the Fund may hold swaps on the Reference
Benchmark, or direct investments in, the same futures contracts as
those included in the Reference Benchmark, the Fund is not obligated
to invest in any futures contracts included in, and does not seek to
replicate the performance of, the Reference Benchmark.
    \15\ Swaps on the Reference Benchmark are included in
``Commodity Investments'' as defined below.
    \16\ Cash equivalents are the short-term instruments enumerated
in Commentary .01(c) to NYSE Arca Rule 8.600-E.
---------------------------------------------------------------------------

    The Fund intends to follow a multifactor strategy reflected by the
Reference Benchmark, which Reference Benchmark equally weights three
sub-indices designed to provide exposure to carry, momentum, and value
factors. The Fund will invest in financial instruments described below
that provide exposure to commodities and not in the physical
commodities themselves. The ``carry'' sub-index emphasizes commodities
and contract months with the greatest degree of backwardation or lowest
degree of contango.\17\ Second, the ``momentum'' sub-index underweights
or overweights commodities based on the strength of performance
patterns over multiple time periods. Third, the ``value'' sub-index
measures value for each commodity by the ratio of its 3-month average
spot price to its 5-year average. Sector weights are held constant
versus a broad non-factor weighted commodity index, but within each
sector, weights of individual commodities are tilted to favor those
with the lowest valuation ratio. Within each sub-index, contract months
are selected to maximize backwardation and minimize contango.
---------------------------------------------------------------------------

    \17\ According to the Exchange, in order to maintain exposure to
a futures contract on a particular commodity, an investor must sell
the position in the expiring contract and buy a new position in a
contract with a later delivery month, which is referred to as
``rolling.'' If the price for the new futures contract is less than
the price of the expiring contract, then the market for the
commodity is said to be in ``backwardation.'' In these markets, roll
returns are positive, which is referred to as ``positive carry.''
The term ``contango'' is used to describe a market in which the
price for a new futures contract is more than the price of the
expiring contract. In these markets, roll returns are negative,
which is referred to as ``negative carry.'' The ``carry'' sub-index
seeks to employ a positive carry strategy that emphasizes
commodities and futures contract months with the greatest degree of
backwardation and lowest degree of contango, resulting in net gains
through positive roll returns.
---------------------------------------------------------------------------

    The Fund expects to obtain a substantial amount of its exposure to
the carry, momentum, and value strategies by entering into total return
swaps that pay the returns of the commodity futures contracts
referenced in the Reference Benchmark. The Reference Benchmark includes
20 futures contracts on physical agricultural, energy, livestock,
precious metals, and industrial metals listed on U.S. regulated futures
exchanges.
    The Fund (through its Subsidiary (as defined below)) may hold the
following listed derivative instruments: Futures, options, and swaps on
commodities (which commodities are from the same sectors as those
included in the Reference Benchmark); currencies; U.S. and non-U.S.
equity securities; fixed income securities (as defined in Commentary
.01(b) to NYSE Arca Rule 8.600-E, but excluding Short-Term Fixed Income
Securities (as defined below)); interest rates; and financial rates; or
a basket or index of any of the foregoing (collectively, ``Listed
Derivatives'').\18\ Listed Derivatives will comply with the criteria in
Commentary .01(d) of NYSE Arca Rule 8.600-E.
---------------------------------------------------------------------------

    \18\ Examples of Listed Derivatives the Fund may invest in
include: Exchange traded futures contracts similar to those found in
the Reference Benchmark, exchange traded futures contracts on the
Reference Benchmark, swaps on commodity futures contracts similar to
those found in the Reference Benchmark, and futures and options that
correlate to the investment returns of commodities without investing
directly in physical commodities.
---------------------------------------------------------------------------

    The Fund (through its Subsidiary (as defined below)) may hold the
following OTC derivative instruments: Forwards, options, and swaps on
commodities (which commodities are from the same sectors as those
included in the Reference Benchmark); currencies; U.S. and non-U.S.
equity securities; fixed income securities (as defined in Commentary
.01(b) to NYSE Arca Rule 8.600-E, but excluding Short-Term Fixed Income
Securities); interest rates; and financial rates; or a basket or index
of any of the foregoing (collectively, ``OTC Derivatives,'' \19\ and
together with Listed Derivatives, ``Commodity Investments'').\20\
---------------------------------------------------------------------------

    \19\ As discussed below under ``Application of Generic Listing
Requirements,'' the Fund's and the Subsidiary's holdings in OTC
Derivatives will not comply with the criteria in Commentary .01(e)
of NYSE Arca Rule 8.600-E.
    \20\ Examples of OTC Derivatives the Fund may invest in include
swaps on commodity futures contracts similar to those found in the
Reference Benchmark and options that correlate to the investment
returns of commodities without investing directly in physical
commodities.
---------------------------------------------------------------------------

    The Fund may hold cash, cash equivalents, and fixed income
securities other than cash equivalents, as described further below.
    Specifically, the Fund may invest in Short-Term Fixed Income
Securities (as defined below) other than cash equivalents on an ongoing
basis to provide liquidity or for other reasons.\21\ Short-Term Fixed
Income Securities will have a maturity of no longer than 397 days and
include only the following: (i) Money market instruments; (ii)
obligations issued or guaranteed by the U.S. government, its agencies
or instrumentalities (including government-sponsored enterprises);
(iii) negotiable certificates of deposit, bankers' acceptances, fixed-
time deposits and other obligations of U.S. and non-U.S. banks
(including non-U.S. branches) and similar institutions; (iv) commercial
paper; (v) non-convertible corporate debt securities (e.g., bonds and
debentures); (vi) repurchase agreements; (vii) short-term U.S. dollar-
denominated obligations of non-U.S. banks (including U.S. branches)
that, in the opinion of the Adviser, are of comparable quality to
obligations of U.S. banks that may be purchased by the Fund; and (viii)
sovereign obligations (collectively, ``Short-Term Fixed Income
Securities''). Any of these securities may be purchased on a current or
forward-settled basis.\22\
---------------------------------------------------------------------------

    \21\ As discussed under ``Application of Generic Listing
Requirements'' below, investments in Short-Term Fixed Income
Securities will not comply with the requirements of Commentary
.01(b)(1)-(4) to NYSE Arca Rule 8.600-E.
    \22\ To the extent that the Fund and the Subsidiary invest in
cash and Short-Term Fixed Income Securities that are cash
equivalents (i.e., that have maturities of less than 3 months) as
specified in Commentary .01(c) to NYSE Arca Rule 8.600-E, such
investments will comply with Commentary .01(c) and may be held
without limitation. Non-convertible corporate debt securities and
sovereign obligations are not included as cash equivalents in
Commentary .01(c).
---------------------------------------------------------------------------

    The Fund also may invest in fixed income securities as defined in
Commentary .01(b) to NYSE Arca Rule 8.600-E,\23\ other than cash
equivalents and Short-Term Fixed Income Securities, with remaining
maturities longer than 397 days (``Fixed Income

Securities''). Such Fixed Income Securities will comply with
requirements of Commentary .01(b) to NYSE Arca Rule 8.600-E.\24\
---------------------------------------------------------------------------

    \23\ Commentary .01(b) to NYSE Arca Rule 8.600-E defines fixed
income securities as debt securities that are notes, bonds,
debentures or evidence of indebtedness that include, but are not
limited to, U.S. Department of Treasury securities (``Treasury
Securities''), government-sponsored entity securities (``GSEs''),
municipal securities, trust preferred securities, supranational debt
and debt of a foreign country or a subdivision thereof, investment
grade and high yield corporate debt, bank loans, mortgage and asset
backed securities, and commercial paper.
    \24\ Among the Fixed Income Securities in which the Fund may
invest are commodity-linked notes.
---------------------------------------------------------------------------

    The Fund may also hold exchange-traded notes (``ETNs'') \25\ and
exchange-traded funds (``ETFs'').\26\
---------------------------------------------------------------------------

    \25\ ETNs are securities as described in NYSE Arca Rule 5.2-
E(j)(6) (Equity Index-Linked Securities, Commodity-Linked
Securities, Currency-Linked Securities, Fixed Income Index-Linked
Securities, Futures-Linked Securities and Multifactor Index-Linked
Securities).
    \26\ For purposes of the filing, the term ``ETFs'' includes
Investment Company Units (as described in NYSE Arca Rule 5.2-
E(j)(3)); Portfolio Depositary Receipts (as described in NYSE Arca
Rule 8.100-E); and Managed Fund Shares (as described in NYSE Arca
Rule 8.600-E). All ETFs will be listed and traded in the U.S. on a
national securities exchange. The Fund will not invest in inverse or
leveraged (e.g., 2X, -2X, 3X or -3X) ETFs.
---------------------------------------------------------------------------

    The Fund's exposure to Commodity Investments is obtained by
investing through a wholly-owned subsidiary organized in the Cayman
Islands (``Subsidiary'').\27\ The Fund controls the Subsidiary, and the
Subsidiary is advised by the Adviser and has the same investment
objective as the Fund. In compliance with the requirements of Sub-
Chapter M of the Internal Revenue Code of 1986, the Fund may invest up
to 25% of its total assets in the Subsidiary. The Subsidiary is not an
investment company registered under the 1940 Act and is a company
organized under the laws of the Cayman Islands. The Trust's Board of
Trustees (``Board'') has oversight responsibility for the investment
activities of the Fund, including its investment in the Subsidiary, and
the Fund's role as sole shareholder of the Subsidiary.
---------------------------------------------------------------------------

    \27\ The Exchange represents that all statements related to the
Fund's investments and restrictions are applicable to the Fund and
Subsidiary collectively.
---------------------------------------------------------------------------

    The Fund's Commodity Investments held in the Subsidiary are
intended to provide the Fund with exposure to broad commodities. The
Subsidiary may hold cash and cash equivalents.

B. Investment Restrictions

    The Fund and the Subsidiary will not invest in securities or other
financial instruments that have not been described in the proposed rule
change. The Fund's investments, including derivatives, will be
consistent with the Fund's investment objective and will not be used to
enhance leverage (although certain derivatives and other investments
may result in leverage). That is, the Fund's investments will not be
used to seek performance that is the multiple or inverse multiple
(e.g., 2X or -3X) of the Fund's Reference Benchmark.

C. Use of Derivatives by the Fund

    Investments in derivative instruments will be made in accordance
with the Fund's investment objective and policies. To limit the
potential risk associated with such transactions, the Fund will enter
into offsetting transactions or segregate or ``earmark'' assets
determined to be liquid by the Adviser in accordance with procedures
established by the Board. In addition, the Fund has included
appropriate risk disclosure in its offering documents, including
leveraging risk. Leveraging risk is the risk that certain transactions
of the Fund, including the Fund's use of derivatives, may give rise to
leverage, causing the Fund to be more volatile than if it had not been
leveraged.
    The Adviser believes there will be minimal, if any, impact to the
arbitrage mechanism as a result of the Fund's use of derivatives. The
Adviser understands that market makers and participants should be able
to value derivatives as long as the positions are disclosed with
relevant information. The Adviser believes that the price at which
Shares of the Fund trade will continue to be disciplined by arbitrage
opportunities created by the ability to purchase or redeem Shares of
the Fund at their net asset value (``NAV''), which should ensure that
Shares of the Fund will not trade at a material discount or premium in
relation to their NAV.
    The Adviser does not believe there will be any significant impacts
to the settlement or operational aspects of the Fund's arbitrage
mechanism due to the use of derivatives.

D. Application of Generic Listing Requirements

    The Exchange represents that the portfolio for the Fund will not
meet all of the ``generic'' listing requirements of Commentary .01 to
NYSE Arca Rule 8.600-E applicable to the listing of Managed Fund
Shares. The Exchange represents that, other than Commentary .01(b)(1)-
(4) (with respect to Short-Term Fixed Income Securities) and .01(e)
(with respect to OTC Derivatives) to NYSE Arca Rule 8.600-E, as
described below, the Fund's portfolio will meet all other requirements
of NYSE Arca Rule 8.600-E.
    According to the Exchange, the Fund's investments in Short-Term
Fixed Income Securities will not comply with the requirements set forth
in Commentary .01(b)(1)-(4) to NYSE Arca Rule 8.600-E.\28\ The Exchange
states that while the requirements set forth in Commentary .01(b)(1)-
(4) include rules intended to ensure that the fixed income securities
included in a fund's portfolio are sufficiently large and diverse, and
have sufficient publicly available information regarding the issuances,
the Exchange believes that any concerns, regarding non-compliance are
mitigated by the types of instruments that the Fund would hold. The
Exchange represents that the Fund's Short-Term Fixed Income Securities
primarily would include those instruments that are included in the
definition of cash and cash equivalents,\29\ but are not considered
cash and cash equivalents because they have maturities of three months
or longer. The Exchange believes, however, that, because all Short-Term
Fixed Income Securities, including non-convertible corporate debt
securities and sovereign obligations (which are not cash equivalents as
enumerated in Commentary .01(c) to NYSE Arca Rule 8.600-E), are highly
liquid they are less susceptible than other types of fixed income
instruments both to price manipulation and volatility and that the
holdings as proposed are generally consistent with the policy concerns
which Commentary .01(b)(1)-(4) is intended to address. Because the
Short-Term Fixed Income Securities will consist of high-quality fixed
income securities described above, the Exchange believes that the
policy concerns that Commentary .01(b)(1)-(4)

is intended to address are otherwise mitigated and that the Fund should
be permitted to hold these securities in a manner that may not comply
with Commentary .01(b)(1)-(4).
---------------------------------------------------------------------------

    \28\ Commentary .01(b)(1)-(4) to NYSE Arca Rule 8.600-E requires
that the components of the fixed income portion of a portfolio meet
the following criteria initially and on a continuing basis: (1)
Components that in the aggregate account for at least 75% of the
fixed income weight of the portfolio each shall have a minimum
original principal amount outstanding of $100 million or more; (2)
no component fixed-income security (excluding Treasury Securities
and GSE Securities) shall represent more than 30% of the fixed
income weight of the portfolio, and the five most heavily weighted
component fixed income securities in the portfolio (excluding
Treasury Securities and GSE Securities) shall not in the aggregate
account for more than 65% of the fixed income weight of the
portfolio; (3) an underlying portfolio (excluding exempted
securities) that includes fixed income securities shall include a
minimum of 13 non-affiliated issuers, provided, however, that there
shall be no minimum number of non-affiliated issuers required for
fixed income securities if at least 70% of the weight of the
portfolio consists of equity securities as described in Commentary
.01(a); and (4) component securities that in aggregate account for
at least 90% of the fixed income weight of the portfolio must be
either (a) from issuers that are required to file reports pursuant
to Sections 13 and 15(d) of the Securities Exchange Act of 1934; (b)
from issuers that have a worldwide market value of its outstanding
common equity held by non-affiliates of $700 million or more; (c)
from issuers that have outstanding securities that are notes, bonds
debentures, or evidence of indebtedness having a total remaining
principal amount of at least $1 billion; (d) exempted securities as
defined in Section 3(a)(12) of the Securities Exchange Act of 1934;
or (e) from issuers that are a government of a foreign country or a
political subdivision of a foreign country.
    \29\ See supra note 16.
---------------------------------------------------------------------------

    The Exchange represents that the Fund's portfolio with respect to
OTC Derivatives will not comply with the requirements set forth in
Commentary .01(e) to NYSE Arca Rule 8.600-E.\30\ Specifically, the
Exchange states that up to 60% of the Fund's assets (calculated as the
aggregate gross notional value) may be invested in OTC Derivatives. The
Exchange states that the Adviser believes that it is important to
provide the Fund with additional flexibility to manage risk associated
with its investments and, depending on market conditions, it may be
critical that the Fund be able to utilize available OTC Derivatives to
efficiently gain exposure to the multiple commodities that underlie the
Reference Benchmark, as well as commodity futures contracts similar to
those found in the Reference Benchmark. The Exchange states that OTC
Derivatives can be tailored to provide specific exposure to the Fund's
Reference Benchmark, as well as commodity futures contracts similar to
those found in the Reference Benchmark, allowing the Fund to more
efficiently meet its investment objective.\31\ The Exchange further
states that if the Fund were to gain commodity exposure exclusively
through the use of listed futures, the Fund's holdings in Listed
Derivatives would be subject to position limits and accountability
levels established by an exchange, and such limitations would restrict
the Fund's ability to gain efficient exposure to the commodities in the
Reference Benchmark, or futures contracts similar to those found in the
Reference Benchmark, thereby impeding the Fund's ability to satisfy its
investment objective.
---------------------------------------------------------------------------

    \30\ Commentary .01(e) to NYSE Arca Rule 8.600-E provides that,
on an initial and continuing basis, no more than 20% of the assets
in the portfolio may be invested in OTC derivatives (calculated as
the aggregate gross notional value of the OTC derivatives).
    \31\ As an example, the Exchange states that the Reference
Benchmark is composed of 20 futures contracts across 20 physical
commodities, which may not be sufficiently liquid and would not
provide the commodity exposure the Fund requires to meet its
investment objective if the Fund were to invest in the futures
directly. The Exchange states that a total return swap can be
structured to provide exposure to the same futures contracts as
exist in the Reference Benchmark, as well as commodity futures
contracts similar to those found in the Reference Benchmark, while
providing sufficient efficiency to allow the Fund to more easily
meet its investment objective.
---------------------------------------------------------------------------

    The Exchange states that the Adviser represents that the Fund's
holdings in OTC Derivatives will satisfy the criteria applicable to
holdings in Listed Derivatives in Commentary .01(d)(2) to NYSE Arca
Rule 8.600-E on an initial and continued listing basis.\32\ Thus, with
respect to the Fund's holdings in OTC Derivatives, the aggregate gross
notional value of OTC Derivatives based on any five or fewer underlying
reference assets will not exceed 65% of the weight of the portfolio
(including gross notional exposures), and the aggregate gross notional
value of OTC Derivatives based on any single underlying reference asset
will not exceed 30% of the weight of the portfolio (including gross
notional exposures). The Exchange also represents that the Adviser and
its affiliates actively monitor counterparty credit risk exposure
(including for OTC derivatives) and evaluate counterparty credit
quality on a continuous basis. Finally, the Exchange states that the
Adviser represents that futures contracts on all commodities in the
Reference Benchmark are traded on futures exchanges that are members of
the Intermarket Surveillance Group.
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    \32\ Commentary .01(d)(2) to NYSE Arca Rule 8.600-E provides
that, with respect to a fund's portfolio, the aggregate gross
notional value of listed derivatives based on any five or fewer
underlying reference assets shall not exceed 65% of the weight of
the portfolio (including gross notional exposures), and the
aggregate gross notional value of listed derivatives based on any
single underlying reference asset shall not exceed 30% of the weight
of the portfolio (including gross notional exposures).
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III. Proceedings To Determine Whether To Approve or Disapprove SR-
NYSEArca-2018-98, as Modified by Amendment No. 2, and Grounds for
Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \33\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide comments
on the proposed rule change.
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    \33\ 15 U.S.C. 78s(b)(2)(B).
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    Pursuant to Section 19(b)(2)(B) of the Act,\34\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section 6(b)(5)
of the Act, which requires, among other things, that the rules of a
national securities exchange be ``designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade,'' and ``to protect investors and the public
interest.'' \35\
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    \34\ Id.
    \35\ 15 U.S.C. 78f(b)(5).
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IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposed rule
change, as modified by Amendment No. 2, is consistent with Section
6(b)(5) or any other provision of the Act, or the rules and regulations
thereunder. Although there do not appear to be any issues relevant to
approval or disapproval that would be facilitated by an oral
presentation of views, data, and arguments, the Commission will
consider, pursuant to Rule 19b-4 under the Act,\36\ any request for an
opportunity to make an oral presentation.\37\
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    \36\ 17 CFR 240.19b-4.
    \37\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Acts Amendments of 1975, Senate Comm.
on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
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    Interested persons are invited to submit written data, views, and
arguments regarding whether the proposed rule change, as modified by
Amendment No. 2, should be approved or disapproved by April 16, 2019.
Any person who wishes to file a rebuttal to any other person's
submission must file that rebuttal by April 30, 2019. The Commission
asks that commenters address the sufficiency of the Exchange's
statements in support of the proposal, which are set forth in Amendment
No. 2,\38\ in addition to any other comments they may wish to submit
about the proposed rule change.
---------------------------------------------------------------------------

    \38\ See supra note 7.
---------------------------------------------------------------------------

    In this regard, the Commission seeks comment on the Exchange's
statements that the Fund will not comply with the requirement in
Commentary .01(e) to NYSE Arca Rule 8.600-E that

investments in OTC Derivatives be limited to 20% of the assets of the
Fund's portfolio. Instead, the Fund's investments in OTC Derivatives
would be limited to 60% of the Fund's assets. Such OTC Derivatives may
be forwards, options, and swaps on commodities (which commodities are
from the same sectors as those included in the Reference Benchmark);
currencies; U.S. and non-U.S. equity securities; fixed income
securities (as defined in Commentary .01(b) to NYSE Arca Rule 8.600-E,
but excluding Short-Term Fixed Income Securities); interest rates; and
financial rates; or a basket or index of any of the foregoing. The
Commission specifically seeks comment on whether the Fund's proposed
investments in OTC Derivatives are consistent with the requirement that
the rules of a national securities exchange be ``designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade,'' and ``to protect investors and the
public interest.'' \39\ Has the Exchange has provided sufficient
information relating to OTC Derivatives, including the underlying
reference assets of such OTC Derivatives, for the Commission to
determine that trading of the Fund's Shares would be consistent with
the Act?
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    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-NYSEArca-2018-98 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-NYSEArca-2018-98. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEArca-2018-98 and should be submitted
by April 16, 2019. Rebuttal comments should be submitted by April 30,
2019.
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    \40\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\40\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05704 Filed 3-25-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 51 (Wednesday, March 16, 2022)]
[Rules and Regulations]
[Pages 14799-14802]
[FR Doc No: 2022-05446]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2021-0307; FRL-9587-02-R3]

Air Plan Approval; Pennsylvania; Allegheny County Area Fine
Particulate Matter Clean Data Determination

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is finalizing a
determination that the Allegheny County, Pennsylvania nonattainment
area has clean data for the 2012 annual fine particulate matter
(PM2.5) national ambient air quality standard (NAAQS). This
clean data determination (CDD) is based upon quality-assured, quality-
controlled, and certified ambient air monitoring data showing the area
has attained the 2012 annual PM2.5 NAAQS based on the 2018-
2020 data available in EPA's Air Quality System (AQS) database. Based
on this clean data determination, pursuant to EPA's Clean Data Policy,
the obligation for Pennsylvania to make submissions to meet certain
Clean Air Act (CAA or the Act) attainment plan requirements for the
2012 annual PM2.5 NAAQS for the Allegheny County area is
suspended for as long as the area continues to attain the 2012 annual
PM2.5 NAAQS. Following this final action, Pennsylvania's
remaining obligation to submit contingency measures in response to
EPA's May 14, 2021 conditional approval of Allegheny County's
PM2.5 attainment plan is suspended. Additionally, the
federal implementation plan (FIP) clock, which was triggered by EPA's
March 26, 2018 Finding of Failure to Submit an attainment plan for the
2012 PM2.5 NAAQS for the Allegheny County Nonattainment
Area, is suspended for the remaining contingency measures element
conditionally approved as part of EPA's May 14, 2021 action on the
Allegheny County PM2.5 attainment plan.

DATES: This final action is effective on April 15, 2022.

ADDRESSES: EPA has established a docket for this action under Docket ID
Number EPA-R03-OAR-2021-0307. All documents in the docket are available
for inspection at the Regulations.gov website, at https://www.regulations.gov. Although listed in the index, some information is
not publicly available, e.g., confidential business information (CBI)
or other information whose disclosure is restricted by statute. Certain
other material, such as copyrighted material, is not placed on the
internet and will be publicly available only in hard copy form.
Publicly available docket materials are available through https://www.regulations.gov, or please contact the person identified in the For
Further Information Contact section for additional availability
information.

FOR FURTHER INFORMATION CONTACT: Brian Rehn, Planning & Implementation
Branch (3AD30), Air & Radiation Division, U.S. Environmental Protection
Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103.
The telephone number is<PHONE_NUMBER>. Mr. Rehn can also be reached
via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, it is intended to refer to the EPA.

Table of Contents

I. Background
II. Response to Public Comments
III. Final Action
IV. Statutory and Executive Orders Review

I. Background

    On December 14, 2012, the EPA revised the level of the primary
annual PM2.5 standard, lowering the level from 15.0
micrograms per cubic meter ([micro]g/m\3\) to 12.0 [micro]g/m\3\.
Effective April 15, 2015, EPA issued area designations for the 2012
annual PM2.5 NAAQS.\1\ In that action, EPA designated the
Allegheny County, Pennsylvania area (Allegheny County Area) as a
moderate nonattainment area for the 2012 annual PM2.5
NAAQS.\2\
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    \1\ See 80 FR 2206, January 15, 2015.
    \2\ See 40 CFR 81.339.
---------------------------------------------------------------------------

    On April 6, 2018, EPA published a ``finding of failure to submit''
under section 110(k) of the CAA, finding that several areas nationwide
(including the Allegheny County Area) failed to submit required SIP
elements for the 2012 annual PM2.5 NAAQS.\3\ At that time,
Pennsylvania had failed to submit the following specific moderate area
SIP elements for the Allegheny County Area: an attainment
demonstration; control strategies analysis, including reasonably
available control measures (RACM) and reasonably available control
technology (RACT); a reasonable further progress (RFP) plan;
quantitative milestones; emission inventories, and contingency
measures. That finding of failure to submit triggered the sanctions
clock under section 179 of the CAA, as well as an obligation under
section 110(c) of the CAA for EPA to promulgate a FIP no later than two
years from the effective date of the finding, if Pennsylvania had not
submitted, and EPA did not approve, the required SIP submission.
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    \3\ See 83 FR 14759, April 6, 2018.
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    Pennsylvania submitted the required Allegheny County Area
PM2.5 nonattainment plan (or the Allegheny County
PM2.5 Plan, or simply the Allegheny County Plan) on
September 30, 2019. On November 1, 2019, EPA determined the submitted
PM2.5 Plan to be technically and administratively complete
(in accordance with SIP completeness criteria of CAA section 110(k) and
40 CFR part 51, appendix V), correcting the finding of failure to
submit deficiency with respect to the missing nonattainment area
planning requirements for the Area under the 2012 PM2.5
NAAQS and stopping the sanctions clock (but not the FIP clock)
triggered by EPA's April 6, 2018 finding. On May 14, 2021 (86 FR
26388), EPA approved elements of the Allegheny County Area
PM2.5 Plan, except the required contingency measures element
of the plan, which EPA conditionally approved. That final
PM2.5 Plan approval action terminated EPA's FIP obligation
for all CAA required nonattainment plan elements except for the
contingency measures element. As to the contingency measures element of
the Allegheny County Area PM2.5 Plan, EPA's May 14, 2021
conditional approval of the plan's contingency measures element
suspended EPA's FIP obligation for the duration of the conditional
approval of that element. If Pennsylvania timely submits a SIP revision
containing approvable contingency measures by May 14, 2022, upon EPA's
subsequent approval of that SIP revision, EPA's FIP obligation with
respect to the contingency measures element of the Allegheny County
Area PM2.5 Plan will be terminated.
    On September 3, 2021 (86 FR 49497), EPA proposed to determine that
the Allegheny County Area is attaining the 2012 PM2.5 annual
NAAQS under the Clean Data Policy,\4\ based on the most recent three
years (2018-2020) of valid monitoring data. EPA proposed that, if
finalized, the clean data determination would suspend Pennsylvania's
obligation to submit the outstanding contingency measure element of the
attainment plan for the PM2.5 NAAQS for as long as the area
continues to attain the 2012 annual PM2.5 NAAQS. Additional
details can be found in EPA's September 3, 2021 proposed action.\5\
Finally, the September 3, 2021 action proposed to suspend the FIP clock
triggered by the March 26, 2018, Finding of Failure to Submit action
that were not halted by subsequent submittal and EPA approval of most
elements of the attainment plan.\6\
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    \4\ 40 CFR 51.1015(a).
    \5\ See 86 FR 49497.
    \6\ See 86 FR 26388, May 14, 2021.
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II. Response to Public Comments

    EPA's September 3, 2021 proposed clean data determination action
for the Allegheny County nonattainment area for the PM2.5
NAAQS opened a thirty-day public comment period, which closed on
October 4, 2021. EPA received comments from three individual
commenters. All comments received have been placed in the docket for
this action. A summary of the relevant comments received and EPA's
responses thereto are listed below.
    Comment 1: The commenter stated that while they generally support
the proposed clean data determination action, they disagree with the
suspension of certain PM2.5 plan requirements related to
attainment--namely the attainment demonstration, RACM and RACT
demonstrations, emission control strategies, RFP plan, quantitative
milestones, and contingency measures. Given the lateness of
Pennsylvania's submission of the required attainment plan in 2018, the
commenter contends that Pennsylvania should adopt these requirements.
    Response 1: Under EPA's longstanding Clean Data Policy
interpretation as codified for PM2.5 at 40 CFR 51.1015, a
determination that a PM2.5 nonattainment area has attained
the NAAQS suspends the state's obligation to submit to EPA those SIP
nonattainment planning elements related to attaining that NAAQS for as
long as the area continues to attain the standard. Because the purpose
of certain nonattainment plan elements is to help bring a violating
area into attainment, if data shows that the area has attained, EPA
interprets that these requirements should no longer be applicable. For
more than two decades, and for many NAAQS, EPA has consistently applied
its Clean Data Policy interpretation to attainment-related provisions
of subparts 1, 2 and 4 of part D, title I of the CAA. The Clean Data
Policy is the subject of several EPA memoranda and regulations and
numerous individual rulemakings published in the Federal Register.
These rulemakings have applied the interpretation to a broad spectrum
of ozone, fine particulate matter, lead, and carbon monoxide NAAQS--
including the 1997 and 2006 PM2.5 NAAQS. The Clean Data
Policy has been reviewed and upheld by Federal courts on a number of
occasions.\7\ The 2016 PM2.5 SIP Requirements Rule's Clean
Data Policy interpretation with respect to CAA subpart 4 aligns with
that implemented under prior fine particulate matter NAAQS.\8\ EPA has
previously articulated its Clean Data Policy

interpretation under CAA subpart 4 in implementing the PM10
standard.\9\
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    \7\ The D.C. Circuit has upheld the Clean Data Policy
interpretation as embodied in the EPA's 8-hour ozone Implementation
Rule at 40 CFR 51.918. NRDC v. EPA, 571 F. 3d 1245 (D.C. Cir. 2009).
Other U.S. Circuit Courts of Appeals that have considered and
reviewed the EPA's Clean Data Policy interpretation have upheld it
and the rulemakings applying the EPA's interpretation. Sierra Club
v. EPA, 99 F.3d 1551 (10th Cir. 1996); Sierra Club v. EPA, 375 F. 3d
537 (7th Cir. 2004); Our Children's Earth Foundation v. EPA, N. 04-
73032 (9th Cir. June 28, 2005) (memorandum opinion); Latino Issues
Forum, v. EPA, Nos. 06-75831 and 08-71238 (9th Cir. March 2, 2009)
(memorandum opinion).
    \8\ See 81 FR 58010 (August 24, 2016) and 40 CFR 51.1015.
    \9\ See, e.g., 75 FR 27944 (May 19, 2010) (determination of
attainment of the PM10 standard in Coso Junction,
California); 71 FR 13021 (March 14, 2006) (Yuma, Arizona area); 71
FR 40023 (July 14, 2006) (Weirton, West Virginia area); 71 FR 44920
(August 8, 2006) (Rillito, Arizona area); 71 FR 63642 (October 30,
2006) (San Joaquin Valley, California area) 72 FR 14422 (March 28,
2007) (Miami, Arizona area). In the EPA's proposed and final
rulemakings determining that the San Joaquin Valley nonattainment
area attained the PM10 standard, the EPA set forth at
length its rationale for applying the Clean Data Policy to
PM10 under subpart 4. 71 FR at 63643-45. The Ninth
Circuit upheld the EPA's final rule, and specifically the EPA's
Clean Data Policy, in the context of subpart 4. Latino Issues Forum
v. EPA, supra. Nos. 06-75831 and 08-71238 (9th Cir. March 2, 2009)
(memorandum opinion).
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    As described in the proposed action, the clean data determination
does not suspend other CAA nonattainment plan requirements, such as an
emissions inventory, nonattainment new source review requirements, and
certain emission reduction requirements, that are considered
independent of attainment. In any case, EPA's May 14, 2021, approval of
Allegheny County's Plan for the 2012 Annual PM2.5 NAAQS
fully approved all required moderate area nonattainment plan elements--
including nearly all elements referenced by the commenter--except for
the contingency plan, which was conditionally approved.\10\ Therefore,
those SIP-approved plan elements for the 2012 PM2.5 NAAQS
are in place and in effect, regardless of the subsequent suspension of
the obligation to submit them pursuant to this clean data
determination. In the case of the contingency measures element of the
PM2.5 plan, which EPA conditionally approved, the clean data
determination suspends the requirement to submit a SIP revision
addressing that element as long as the area continues to attain the
2012 Annual PM2.5 NAAQS.\11\ Under the Clean Data Policy and
the regulations adopted to address PM2.5, suspended plan
elements would be permanently discharged if the area is redesignated to
attainment.\12\
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    \10\ See 86 FR 26388 (May 14, 2021).
    \11\ Ibid.
    \12\ See 40 CFR 51.1015(a).
---------------------------------------------------------------------------

    Comment 2: The commenter contends that because many states failed
to submit required SIP nonattainment plan elements to EPA in a timely
manner, it is important that EPA establish a FIP under the authority of
the CAA as a supplement to the SIP, and to step in to meet
nonattainment planning requirement commitments on behalf of the states,
if need be, and that the process for doing so be transparent to the
public.
    Response 2: As discussed in the prior response, Pennsylvania did
submit a moderate PM2.5 attainment plan, and EPA approved
all the elements of that plan except for the contingency measures,
which were conditionally approved. Full approval also means that these
elements of the plan are in the SIP and federally enforceable. The
purpose of a CAA section 110(c)(1) FIP is to provide a backstop where a
state has failed to make a required submission or where EPA has
disapproved a state's plan or found such plan to be deficient; in this
case, where EPA has fully approved the state's plan, a FIP is not
provided for under the CAA.
    Regarding the contingency measures element, EPA's conditional
approval requires the state to submit a SIP to remedy the conditional
approval of the contingency measure plan element no later than May 14,
2022.\13\ EPA's approval of the SIP revision addressing contingency
measures would terminate the FIP clock for that outstanding plan
element. However, upon the effective date of this Clean Data
Determination, the requirement to submit the contingency measures
element of the attainment SIP and EPA's FIP requirement for that
element are suspended as long as the Allegheny County Area continues to
attain the 2012 Annual PM2.5 NAAQS.\14\
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    \13\ See 40 CFR 52.2023(n).
    \14\ See 86 FR 26388 (May 14, 2021).
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III. Final Action

    EPA is finalizing this Clean Data Determination, under the Clean
Data Policy, as proposed. Pursuant to 40 CFR 51.1015, EPA has
determined that based on 3-years of certified, complete, and valid
ambient air monitoring data between 2018 and 2020, the Allegheny County
Area has attained the 2012 annual PM2.5 NAAQS. Therefore,
Pennsylvania's obligation to submit the attainment plan elements
referenced in 40 CFR 51.1015(a)--including the conditionally approved
contingency measures element of the attainment plan--are suspended as
long as the area continues to attain the 2012 annual PM2.5
NAAQS. For the Allegheny Area, EPA has already approved into the SIP
the attainment demonstration, projected emissions inventories, RACM
(including RACT), RFP plans, motor vehicle emissions budgets, and
quantitative milestones for the Allegheny Area. The requirement to
submit the conditionally approved contingency measures element is
suspended until such time as: (1) EPA determines that the area has
violated the 2012 Annual PM2.5 NAAQS; (2) the area is
redesignated to attainment, after which such requirements are
permanently discharged; or (3) EPA determines that the area attained by
its attainment date of December 31, 2021.\15\
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    \15\ See Bahr v. Regan, 6 F.4th 1059, 1083 (9th Cir. 2021).
---------------------------------------------------------------------------

    Although the plan submittal obligation has been suspended, this
clean data determination action does not preclude Pennsylvania from
submitting, nor the EPA from acting upon, the suspended attainment plan
element. As a result of this final action, the FIP clock triggered by
the EPA's March 26, 2018, Finding of Failure to Submit are
suspended.\16\
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    \16\ See 83 FR 14759.
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    This final action does not constitute a redesignation of the
Allegheny County nonattainment area to attainment for the 2012 annual
PM2.5 NAAQS under CAA section 107(d)(3) because Pennsylvania
has not yet submitted a request for redesignation or a maintenance plan
for the Area and EPA has not approved a maintenance plan for the
Allegheny County Area meeting the requirements of section 175A of the
CAA, nor has EPA determined that the Area has met the other CAA
requirements for redesignation. The classification and designation
status in 40 CFR part 81 remains Moderate nonattainment for this area
until such time as the EPA determines that Pennsylvania has met the CAA
requirements for redesignation to attainment for the Allegheny County
PM2.5 Area.

IV. Statutory and Executive Order Reviews

A. General Requirements

    This action finalizes a clean data determination based on
attainment of air quality and suspends certain Federal nonattainment
planning requirements. This action imposes no new Federal requirements
and imposes no additional requirements beyond those imposed by state
law. For this reason, this final 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, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because this action imposes no new requirements to apply in Indian
country located in the State, and EPA notes that this action will not
impose direct costs on tribal governments or preempt tribal law.

B. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).

C. Petitions for Judicial Review

    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by May 16, 2022. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed and shall not postpone the effectiveness of such rule or
action.
    This action to determine attainment, under the Clean Data Policy,
of Allegheny County nonattainment area for the 2012 Annual
PM2.5 NAAQS may not be challenged later in proceedings to
enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Particulate matter, Reporting and recordkeeping
requirements.

Diana Esher,
Acting Regional Administrator, Region III.
[FR Doc. 2022-05446 Filed 3-15-22; 8:45 am]
BILLING CODE 6560-50-P