[Federal Register Volume 83, Number 105 (Thursday, May 31, 2018)]
[Notices]
[Pages 25097-25100]
[FR Doc No: 2018-11609]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83319; File No. SR-NYSEArca-2018-15]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change, As Modified by Amendment No. 1 Thereto, To
Continue Listing and Trading Shares of the PGIM Ultra Short Bond ETF
Under NYSE Arca Rule 8.600-E

May 24, 2018.

I. Introduction

    On March 6, 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 PGIM Ultra Short Bond ETF
(``Fund''), a series of PGIM ETF Trust (``Trust''), under NYSE Arca
Rule 8.600-E. The proposed rule change was published for comment in the
Federal Register on March 23, 2018.\3\ On April 25, 2018, the Exchange
filed Amendment No. 1 to the proposal, which replaced and superseded
the proposed rule change in its entirety.\4\ On May 4, 2018, the
Commission extended the time the Commission designated a longer period
within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change.\5\ The Commission has received no
comments on the proposal. This order approves the proposed rule change
as modified by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 82899 (Mar. 19,
2018), 83 FR 12824.
    \4\ In Amendment No. 1, the Exchange: (1) Provided additional
information regarding certain of the Fund's permitted investments;
(2) clarified that the Fund may invest up to 25% of its total assets
in the Affiliated Short Term Bond Fund Shares (defined below) and
10% of its total assets in other non-exchange-traded open-end
management investment company securities; (3) described the
availability of price information for certain of the Fund's
permitted investments; and (4) made changes of a technical nature.
Amendment No. 1 is not subject to notice and comment because it does
not materially alter the substance of the proposed rule change or
raise unique or novel regulatory issues. Amendment No. 1 is
available at: https://www.sec.gov/comments/sr-nysearca-2018-15/nysearca201815-3510337-162292.pdf.
    \5\ See Exchange Act Release No. 83174, 83 FR 21794 (May 10,
2018). The Commission designated June 21, 2018, as the date by which
the Commission shall approve or disapprove, or institute proceedings
to determine whether to disapprove, the proposed rule change.
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II. Description of the Proposal \6\
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    \6\ Additional information regarding, among other things, the
Shares, the Fund, its investment objective, its permitted
investments, its investment strategies and methodology, its
investment restrictions, its investment adviser and subadviser, its
fees, its creation and redemption procedures, availability of
information, trading rules and halts, and surveillance procedures
can be found in Amendment No. 1 and in the Registration Statement.
See Amendment No. 1, supra note 4, and Registration Statement, infra
note 7, respectively.
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    The Trust is registered under the 1940 Act.\7\ The Shares \8\ are
listed and traded on the Exchange under Commentary .01 to NYSE Arca
Rule 8.600-E,\9\ which provides generic criteria applicable to the
listing and trading of Managed Fund Shares.\10\ However, the Fund
intends to change its investment strategy such that the Shares would no
longer qualify for generic listing on the Exchange. Specifically, the
Fund's portfolio would continue to satisfy all of the generic listing
requirements except that:
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    \7\ On January 8, 2018, the Trust filed with the Commission its
registration statement on Form N-1A under the Securities Act of 1933
(15 U.S.C. 77a), and under the 1940 Act relating to the Fund (File
Nos. 333-222469 and 811-23324) (``Registration Statement''). The
Commission has issued an order granting certain exemptive relief to
the Trust under the 1940 Act. See Investment Company Act Release No.
31095 (Jun. 24, 2014) (File No. 812-14267).
    \8\ The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities.
    \9\ The Shares commenced trading on the Exchange on April 10,
2018. See Amendment No. 1, supra note 4, at 3, n.1.
    \10\ A Managed Fund Share is a security that: (1) Represents an
interest in a registered investment company (``Investment Company'')
organized as an open-end management investment company or similar
entity, that invests in a portfolio of securities selected by the
Investment Company's investment adviser consistent with the
Investment Company's investment objectives and policies; (b) is
issued in a specified aggregate minimum number in return for a
deposit of a specified portfolio of securities and/or a cash amount
with a value equal to the next determined net asset value; and (c)
when aggregated in the same specified minimum number, may be
redeemed at a holder's request, which holder will be paid a
specified portfolio of securities and/or cash with a value equal to
the next determined net asset value. See NYSE Arca Rule 8.600-
E(c)(1).
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     Investments in non-agency, non-government sponsored entity
and privately issued mortgage-related and other asset-backed securities
(``Private ABS/MBS'') may account for up to 20% of the total assets of
the Fund (rather than 20% of the weight of the fixed income portion of
the portfolio, as required under Commentary .01(b)(5));
     fixed income securities that do not meet any of the
criteria in Commentary .01(b)(4) will not exceed 10% of the total
assets of the Fund (rather than

such securities not comprising more than 10% of the fixed income weight
of the portfolio, as prescribed by that criterion); and
     the Fund's investments in non-exchange-traded open-end
management investment company securities, including ``Affiliated Short
Term Bond Fund Shares,'' \11\ would not meet the requirements of
Commentary .01(a)(1)(A) through (E) to Rule 8.600-E.\12\
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    \11\ ``Affiliated Short Term Bond Fund Shares'' are shares of
the Prudential Core Ultra Short Bond Fund or, if the Prudential Core
Ultra Short Bond Fund is no longer offered with the same investment
objective, shares of any successor fund or other affiliated open-end
investment company registered under the 1940 Act with a
substantially similar investment objective. See Amendment No. 1,
supra note 4, at 6-7.
    \12\ Investments in Affiliated Short Term Bond Fund Shares will
not exceed 25% of the total assets of the Fund, and investments in
other non-exchange-traded open-end management investment company
securities will not exceed 10% of the total assets of the Fund. See
id. at 15.
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    According to the Exchange, these deviations from the generic
requirements are necessary for the Fund to achieve its investment
objective in a manner that is cost-effective and that maximizes
investors' returns.\13\
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    \13\ See id. at 13.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with the Exchange
Act and the rules and regulations thereunder applicable to a national
securities exchange.\14\ In particular, the Commission finds that the
proposed rule change, as modified by Amendment No. 1, is consistent
with Section 6(b)(5) of the Exchange Act,\15\ which requires, among
other things, that the Exchange's rules be designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. As mentioned
above, the Fund's portfolio would continue to meet all of the generic
listing criteria except for the requirements of Commentary .01(b)(5) to
NYSE Arca Rule 8.600-E,\16\ Commentary .01(b)(4) to NYSE Arca Rule
8.600-E,\17\ and Commentary .01(a)(1) to NYSE Arca Rule 8.600-E.\18\
The Commission believes that Fund's proposed maximum level of
investment in Private ABS/MBS is consistent with the Commission's
previous approval of the listing of shares of other actively managed
ETFs that could invest up to 20% of their total assets in non-U.S.
Government, non-agency, non-GSE and other privately issued ABS and
MBS.\19\
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    \14\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition and
capital formation. See 15 U.S.C. 78c(f).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ Commentary .01(b)(5) to NYSE Arca Rule 8.600-E provides
that non-agency, non-government sponsored entity and privately
issued mortgage-related and other asset-backed securities components
of a portfolio may not account, in the aggregate, for more than 20%
of the weight of the fixed income portion of the portfolio.
    \17\ Commentary .01(b)(4) provides that component securities
that in the 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
Act; (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 Act; or (e) from
issuers that are a government of a foreign country or a political
subdivision of a foreign country.
    \18\ Commentary .01(a)(1) to Rule 8.600-E provides that the
component stocks of the equity portion of a portfolio that are U.S.
Component Stocks shall meet the following criteria initially and on
a continuing basis:
    (A) Component stocks (excluding Derivative Securities Products
and Index-Linked Securities) that in the aggregate account for at
least 90% of the equity weight of the portfolio (excluding such
Derivative Securities Products and Index-Linked Securities) each
shall have a minimum market value of at least $75 million;
    (B) Component stocks (excluding Derivative Securities Products
and Index-Linked Securities) that in the aggregate account for at
least 70% of the equity weight of the portfolio (excluding such
Derivative Securities Products and Index-Linked Securities) each
shall have a minimum monthly trading volume of 250,000 shares, or
minimum notional volume traded per month of $25,000,000, averaged
over the last six months;
    (C) The most heavily weighted component stock (excluding
Derivative Securities Products and Index-Linked Securities) shall
not exceed 30% of the equity weight of the portfolio, and, to the
extent applicable, the five most heavily weighted component stocks
(excluding Derivative Securities Products and Index-Linked
Securities) shall not exceed 65% of the equity weight of the
portfolio;
    (D) Where the equity portion of the portfolio does not include
Non-U.S. Component Stocks, the equity portion of the portfolio shall
include a minimum of 13 component stocks; provided, however, that
there shall be no minimum number of component stocks if (i) one or
more series of Derivative Securities Products or Index-Linked
Securities constitute, at least in part, components underlying a
series of Managed Fund Shares, or (ii) one or more series of
Derivative Securities Products or Index-Linked Securities account
for 100% of the equity weight of the portfolio of a series of
Managed Fund Shares; and
    (E) Except as provided herein, equity securities in the
portfolio shall be U.S. Component Stocks listed on a national
securities exchange and shall be NMS Stocks as defined in Rule 600
of Regulation NMS under the Securities Exchange Act of 1934.
    \19\ See, e.g., Securities Exchange Act Release No. 80946 (June
15, 2017) 82 FR 28126 (June 20, 2017) (SR-NASDAQ-2017-039);
Securities Exchange Act Release No. 76412 (November 10, 2015), 80 FR
71880 (November 17, 2015) (SR-NYSEArca-2015-111).
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    With respect to the Fund's investments in shares of non-exchange-
traded open-end management investment company securities, including
``Affiliated Short Term Bond Fund Shares,'' the Commission notes that:
(1) Such securities must satisfy applicable 1940 Act diversification
requirements; and (2) the value of such securities is based on the
value of securities and financial assets held by those investment
companies.\20\ The Commission therefore believes that the Fund's
investments in non-exchange-traded open-end management investment
company securities,\21\ including ``Affiliated Short Term Bond Fund
Shares,'' would not make the Shares susceptible to fraudulent or
manipulative acts and practices. Similarly, the Commission believes
that the level of investment by the Fund in securities that do not
satisfy the requirements of Commentary .01(b)(4) to NYSE Arca Rule
8.600-E, i.e., no more than 10% of the Fund's net assets, would not
make the Shares susceptible to fraudulent or manipulative acts and
practices.
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    \20\ See Amendment No. 1, supra note 4, at 16.
    \21\ See supra note 12.
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    The Exchange states that it has a general policy prohibiting the
distribution of material, non-public information by its employees. The
Exchange represents that the Fund's investment adviser and subadviser
are not registered as broker-dealers but are affiliated with the Fund's
distributor, which is a broker-dealer, and have implemented and will
maintain a ``fire wall'' with respect to such broker-dealer regarding
access to information concerning the composition or changes to the
Fund's portfolio.\22\
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    \22\ See id. at 5. Additionally, the Exchange represents that,
in the event (a) the adviser or the subadviser 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 broker-
dealer affiliate regarding access to information concerning the
composition and/or changes to the portfolio, and will be subject to
procedures, each designed to prevent the use and dissemination of
material non-public information regarding such portfolio. See id.
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    Trading in the Shares will be subject to the existing trading
surveillances administered by the Exchange, as well as cross-market
surveillances administered by Financial Industry Regulatory Authority
(``FINRA'') on behalf of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities laws.
The Exchange may obtain information regarding trading in the Shares,
certain exchange-traded

options and certain futures from markets and other entities that are
members of Intermarket Surveillance Group (``ISG'') or with which the
Exchange has in place a comprehensive surveillance sharing agreement.
The Exchange is able to access from FINRA, as needed, trade information
for certain fixed income securities held by the Fund reported to the
Trade Reporting and Compliance Engine (``TRACE'') of FINRA. FINRA also
can access data obtained from the Municipal Securities Rulemaking Board
relating to certain municipal bond trading activity for surveillance
purposes in connection with trading in the Shares.
    The Commission also finds that the proposal to list and trade the
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Exchange Act,\23\ which sets forth Congress' finding that it is in
the public interest and appropriate for the protection of investors and
the maintenance of fair and orderly markets to assure the availability
to brokers, dealers, and investors of information with respect to
quotations for and transactions in securities. Intra-day and closing
price information regarding exchange-traded options will be available
from the exchange on which such instruments are traded. Intra-day and
closing price information regarding the Principal Investment
Instruments \24\ also will be available from major market data vendors.
Price information relating to over-the-counter options and swaps will
be available from major market data vendors. Intra-day price
information for exchange-traded derivative instruments will be
available from the applicable exchange and from major market data
vendors. For exchange-listed securities (including ETFs), intraday
price quotations will generally be available from broker-dealers and
trading platforms (as applicable). Intraday and other price information
for the fixed income securities in which the Fund invests will be
available through subscription services, such as Bloomberg, Markit and
Thomson Reuters, which can be accessed by Authorized Participants and
other market participants. Additionally, TRACE will be a source of
price information for corporate bonds, privately-issued securities, MBS
and ABS, to the extent transactions in such securities are reported to
TRACE.\25\ Money market funds and the Affiliated Short Term Bond Fund
are typically priced once each Business Day and their prices will be
available through the applicable fund's website or from major market
data vendors.\26\ Electronic Municipal Market Access (``EMMA'') will be
a source of price information for municipal bonds. Price information
regarding U.S. government securities, repurchase agreements, reverse
repurchase agreements and cash equivalents generally may be obtained
from brokers and dealers who make markets in such securities or through
nationally recognized pricing services through subscription agreements.
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    \23\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \24\ The term ``Principal Investment Instruments'' is defined in
Amendment No. 1, supra note 4, at 6.
    \25\ Broker-dealers that are FINRA member firms have an
obligation to report transactions in specified debt securities to
TRACE to the extent required under applicable FINRA rules.
Generally, such debt securities will have at issuance a maturity
that exceeds one calendar year. For fixed income securities that are
not reported to TRACE, (i) intraday price quotations will generally
be available from broker-dealers and trading platforms (as
applicable) and (ii) price information will be available from feeds
from market data vendors, published or other public sources, or
online information services, as described above.
    \26\ The Fund's website (www.pgiminvestments.com) will include
the prospectus for the Fund that may be downloaded. The Fund's
website will include additional quantitative information updated on
a daily basis.
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    The Commission believes that the proposal to list and trade the
Shares is reasonably designed to promote fair disclosure of information
that may be necessary to price the Shares appropriately and to prevent
trading when a reasonable degree of transparency cannot be assured. On
each Business Day, before commencement of trading in Shares in the Core
Trading Session on the Exchange,\27\ the Fund discloses on its website
the Disclosed Portfolio as defined in NYSE Arca Rule 8.600-E(c)(2) that
forms the basis for the Fund's calculation of the net asset value
(``NAV'') at the end of the Business Day.\28\ The Exchange has obtained
a representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that the NAV and the Disclosed Portfolio
will be made available to all market participants at the same time.
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    \27\ The ``Core Trading Session'' is defined in NYSE Arca Rule
7.34-E(a)(2).
    \28\ Under accounting procedures followed by the Fund, trades
made on the prior Business Day (``T'') will be booked and reflected
in NAV on the current Business Day (``T+1''). Accordingly, the Fund
will be able to disclose at the beginning of the Business Day the
portfolio that will form the basis for the NAV calculation at the
end of the Business Day.
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    In addition, the Portfolio Indicative Value, as defined in NYSE
Arca Rule 8.600-E(c)(3), will be widely disseminated by one or more
major market data vendors at least every 15 seconds during the Core
Trading Session. The Transfer Agent, through the National Securities
Clearing Corporation, makes available on each Business Day, immediately
prior to the opening of business on the Exchange (currently 9:30 a.m.
E.T.), the list of the names and the required number of securities for
each Deposit Instrument to be included in the current Portfolio Deposit
(based on information at the end of the previous Business Day), as well
as information regarding the Cash Amount for the Fund. Such Portfolio
Deposit is applicable, subject to any adjustments as described below,
in order to effect creations of Creation Units of the Fund until such
time as the next-announced Portfolio Deposit composition is made
available.
    The Exchange represents that trading in Shares will be halted if
the circuit breaker parameters in NYSE Arca Rule 7.12-E have been
reached. Trading also may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Shares
inadvisable.\29\ NYSE Arca Rule 8.600-E(d)(2)(D) also sets forth
circumstances under which trading in the Shares may be halted.
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    \29\ These may include: (1) The extent to which trading is not
occurring in the securities and/or the financial instruments
comprising the Disclosed Portfolio of the Fund; or (2) whether other
unusual conditions or circumstances detrimental to the maintenance
of a fair and orderly market are present. See Amendment No. 1, supra
note 4, at 20.
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    In support of this proposal, the Exchange has also made the
following representations:
    (1) The Shares will be subject to NYSE Arca Rule 8.600-E, which
sets forth the initial and continued listing criteria applicable to
Managed Fund Shares.\30\
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    \30\ See id. at 21.
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    (2) All statements and representations made in this filing
regarding (a) the description of the portfolio, (b) limitations on
portfolio holdings or reference assets, or (c) the applicability of
Exchange listing rules specified in this rule filing shall constitute
continued listing requirements for listing the Shares on the
Exchange.\31\
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    \31\ See id. at 22.
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    (3) The issuer will advise the Exchange of any failure by the Fund
to comply with the continued listing requirements, and, pursuant to its
obligations under Section 19(g)(1) of the Act, the Exchange will
monitor for compliance with the continued listing requirements. If the
Fund is not in compliance with the applicable listing requirements, the
Exchange will commence delisting procedures under NYSE Arca Rule
5.5(m)-E.\32\
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    \32\ See id.

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    (4) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.\33\
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    \33\ See id. at 21.
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    (5) The Exchange has in place surveillance procedures that are
adequate to properly monitor trading in the Shares in all trading
sessions and to deter and detect violations of Exchange rules and
federal securities laws applicable to trading on the Exchange.\34\
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    \34\ See id.
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    (6) For initial and continued listing, the Fund will be in
compliance with Rule 10A-3 under the Act, as provided by NYSE Arca Rule
5.3-E.\35\
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    \35\ See id. at 21. See also 17 CFR 240.10A-3.
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    (7) A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange.\36\
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    \36\ See id. at 21.
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    (8) Investments in the Affiliated Short Term Bond Fund will not
exceed 25% of the total assets of the Fund.\37\
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    \37\ See id. at 15.
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    (9) The Fund may invest up to 10% of the total assets of the Fund
in shares of other non-exchange-traded open-end management investment
company securities.\38\
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    \38\ See id. at 8-9.
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    This approval order is based on all of the Exchange's
representations, including those set forth above and in Amendment No.
1.
    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendment No. 1, is consistent with Section
6(b)(5) of the Act \39\ and the rules and regulations thereunder
applicable to a national securities exchange.
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    \39\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act, that the proposed rule change (SR-NYSEArca-2018-15), as
modified by Amendment No. 1, is hereby approved.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\40\
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    \40\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-11609 Filed 5-30-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 93 (Monday, May 14, 2018)]
[Notices]
[Pages 22289-22290]
[FR Doc No: 2018-10155]

=======================================================================
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DEPARTMENT OF LABOR

Occupational Safety and Health Administration

Docket No. OSHA-2006-0042]

CSA Group Testing & Certification Inc.: Grant of Expansion of
Recognition

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Notice.

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SUMMARY: In this notice, OSHA announces the final decision to expand
the scope of recognition for CSA Group Testing & Certification Inc., as
a Nationally Recognized Testing Laboratory (NRTL).

DATES: The expansion of the scope of recognition becomes effective on
May 14, 2018.

FOR FURTHER INFORMATION CONTACT: Information regarding this notice is
available from the following sources:
    Press inquiries: Contact Mr. Frank Meilinger, Director, OSHA Office
of Communications, U.S. Department of Labor, phone:<PHONE_NUMBER>;
email: [email protected].
    General and technical information: Contact Mr. Kevin Robinson,
Director, Office of Technical Programs and Coordination Activities,
Directorate of Technical Support and Emergency Management, Occupational
Safety and Health Administration, phone:<PHONE_NUMBER>; email:
[email protected]. OSHA's web page includes information about the
NRTL Program (see http://www.osha.gov/dts/otpca/nrtl/index.html).

SUPPLEMENTARY INFORMATION:

I. Notice of Final Decision

    OSHA hereby gives notice of the expansion of the scope of
recognition of CSA Group Testing & Certification Inc. (CSA), as a NRTL.
CSA's expansion covers the addition of six test standards to its scope
of recognition.
    OSHA recognition of a NRTL signifies that the organization meets
the requirements specified by 29 CFR 1910.7. Recognition is an
acknowledgment that the organization

can perform independent safety testing and certification of the
specific products covered within its scope of recognition and is not a
delegation or grant of government authority. As a result of
recognition, employers may use products properly approved by the NRTL
to meet OSHA standards that require testing and certification of the
products.
    The Agency processes applications by a NRTL for initial
recognition, or for expansion or renewal of this recognition, following
requirements in Appendix A to 29 CFR 1910.7. This appendix requires
that the Agency publish two notices in the Federal Register in
processing an application. In the first notice, OSHA announces the
application and provides its preliminary finding and, in the second
notice, the Agency provides its final decision on the application.
These notices set forth the NRTL's scope of recognition or
modifications of that scope. OSHA maintains an informational web page
for each NRTL that details its scope of recognition. These pages are
available from the Agency's website at http://www.osha.gov/dts/otpca/nrtl/index.html.
    CSA submitted an application, dated May 23, 2017 (OSHA-2006-0042-
0012), to expand its recognition to include seven additional test
standards. OSHA staff performed a comparability analysis and reviewed
other pertinent information. OSHA did not perform any on-site reviews
in relation to this application.
    OSHA published the preliminary notice announcing CSA's expansion
application in the Federal Register on December 18, 2017 (82 FR 60051).
The Agency requested comments by January 2, 2018, but it received no
comments in response to this notice. In the preliminary notice, OSHA
included all seven test standards that CSA requested to add to its
scope of recognition, one of which would have been new to the NRTL
program's list of appropriate test standards. However, due a
typographical error, OSHA listed an incorrect test standard as that
proposed to be added. To allow notice to stakeholders, OSHA will re-
propose to add the correct test standard CSA requested to CSA's scope
of recognition and the list of appropriate test standards. OSHA now is
proceeding with this final notice to grant expansion of CSA's scope of
recognition for the six other test standards.
    To obtain or review copies of all public documents pertaining to
the CSA's application, go to http://www.regulations.gov or contact the
Docket Office, Occupational Safety and Health Administration. Docket
No. OSHA-2006-0042 contains all materials in the record concerning
CSA's recognition.

II. Final Decision and Order

    OSHA staff examined CSA's expansion application, its capability to
meet the requirements of the test standards, and other pertinent
information. Based on its review of this evidence, OSHA finds that CSA
meets the requirements of 29 CFR 1910.7 for expansion of its
recognition, subject to the limitation and conditions listed in this
notice. OSHA, therefore, is proceeding with this final notice to grant
CSA's scope of recognition. OSHA limits the expansion of CSA's
recognition to testing and certification of products for demonstration
of conformance to the test standards listed below in Table 1.

 Table 1--List of Appropriate Test Standards for Inclusion in CSA's NRTL
                          Scope of Recognition
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             Test standard                     Test standard title
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UL 508A................................  Standard for Industrial Control
                                          Panels.
UL 60950-1.............................  Information Technology
                                          Equipment--Safety--Part 1:
                                          General Requirements.
UL 60950-21............................  Information Technology
                                          Equipment--Safety--Part 21:
                                          Remote Power Feeding.
UL 60950-23............................  Information Technology
                                          Equipment--Safety--Part 23:
                                          Large Data Storage Equipment.
UL 61800-5-1...........................  Standard for Adjustable Speed
                                          Electrical Power Drive Systems
                                          Part 5-1: Safety Requirements--
                                          Electrical, Thermal and
                                          Energy.
UL 62368-1.............................  Audio/Video, Information and
                                          Communication Technology
                                          Equipment--Part 1: Safety
                                          Requirements.
------------------------------------------------------------------------

    OSHA's recognition of any NRTL for a particular test standard is
limited to equipment or materials for which OSHA standards require
third-party testing and certification before using them in the
workplace. Consequently, if a test standard also covers any products
for which OSHA does not require such testing and certification, a
NRTL's scope of recognition does not include these products.
    The American National Standards Institute (ANSI) may approve the
test standards listed above as American National Standards. However,
for convenience, we may use the designation of the standards-developing
organization for the standard as opposed to the ANSI designation. Under
the NRTL Program's policy (see OSHA Instruction CPL 1-0.3, Appendix C,
paragraph XIV), any NRTL recognized for a particular test standard may
use either the proprietary version of the test standard or the ANSI
version of that standard. Contact ANSI to determine whether a test
standard is currently ANSI-approved.

A. Conditions

    In addition to those conditions already required by 29 CFR 1910.7,
CSA must abide by the following conditions of the recognition:
    1. CSA must inform OSHA as soon as possible, in writing, of any
change of ownership, facilities, or key personnel, and of any major
change in its operations as a NRTL, and provide details of the
change(s);
    2. CSA must meet all the terms of its recognition and comply with
all OSHA policies pertaining to this recognition; and
    3. CSA must continue to meet the requirements for recognition,
including all previously published conditions on CSA's scope of
recognition, in all areas for which it has recognition.
    Pursuant to the authority in 29 CFR 1910.7, OSHA hereby expands the
scope of recognition of CSA, subject to the limitation and conditions
specified above.

III. Authority and Signature

    Loren Sweatt, Deputy Assistant Secretary of Labor for Occupational
Safety and Health, authorized the preparation of this notice.
Accordingly, the Agency is issuing this notice pursuant to 29 U.S.C.
657(g)(2), Secretary of Labor's Order No. 1-2012 (77 FR 3912, Jan. 25,
2012), and 29 CFR 1910.7.

    Signed at Washington, DC, on May 4, 2018.
Loren Sweatt,
Deputy Assistant Secretary of Labor for Occupational Safety and Health.
[FR Doc. 2018-10155 Filed 5-11-18; 8:45 am]
 BILLING CODE 4510-26-P


[Federal Register Volume 82, Number 80 (Thursday, April 27, 2017)]
[Notices]
[Pages 19433-19435]
[FR Doc No: 2017-08497]

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

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[FMCSA Docket No. FMCSA-2017-0029]

Qualification of Drivers; Exemption Applications; Diabetes
Mellitus

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of final disposition.

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

SUMMARY: FMCSA announces its decision to exempt 44 individuals from its
rule prohibiting persons with insulin-treated diabetes mellitus (ITDM)
from operating commercial motor vehicles (CMVs) in interstate commerce.
The exemptions enable these individuals to operate CMVs in interstate
commerce.

DATES: The exemptions were effective on April 7, 2017. The exemptions
expire on April 7, 2019.

FOR FURTHER INFORMATION CONTACT: Ms. Christine A. Hydock, Chief,
Medical Programs Division,<PHONE_NUMBER><EMAIL_ADDRESS>FMCSA,
Department of Transportation, 1200

New Jersey Avenue SE., Room W64-113, Washington, DC 20590-0001. Office
hours are from 8:30 a.m. to 5 p.m. e.t., Monday through Friday, except
Federal holidays.

SUPPLEMENTARY INFORMATION:

I. Electronic Access

    You may see all the comments online through the Federal Document
Management System (FDMS) at: http://www.regulations.gov.
    Docket: For access to the docket to read background documents or
comments, go to http://www.regulations.gov and/or Room W12-140 on the
ground level of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., e.t., Monday through Friday,
except Federal holidays.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.dot.gov/privacy.

II. Background

    On March 7, 2017, FMCSA published a notice of receipt of Federal
diabetes exemption applications from 44 individuals and requested
comments from the public (82 FR 12891). The public comment period
closed on April 6, 2017, and one comment was received.
    FMCSA has evaluated the eligibility of the 44 applicants and
determined that granting the exemptions to these individuals would
achieve a level of safety equivalent to or greater than the level that
would be achieved by complying with the current regulation 49 CFR
391.41(b)(3).

Diabetes Mellitus and Driving Experience of the Applicants

    The Agency established the current requirement for diabetes in 1970
because several risk studies indicated that drivers with diabetes had a
higher rate of crash involvement than the general population. The
diabetes rule provides that ``A person is physically qualified to drive
a commercial motor vehicle if that person has no established medical
history or clinical diagnosis of diabetes mellitus currently requiring
insulin for control'' (49 CFR 391.41(b)(3)).
    FMCSA established its diabetes exemption program, based on the
Agency's July 2000 study entitled ``A Report to Congress on the
Feasibility of a Program to Qualify Individuals with Insulin-Treated
Diabetes Mellitus to Operate in Interstate Commerce as Directed by the
Transportation Act for the 21st Century.'' The report concluded that a
safe and practicable protocol to allow some drivers with ITDM to
operate CMVs is feasible. The September 3, 2003 (68 FR 52441), Federal
Register notice in conjunction with the November 8, 2005 (70 FR 67777),
Federal Register notice provides the current protocol for allowing such
drivers to operate CMVs in interstate commerce.
    These 44 applicants have had ITDM over a range of 1 to 25 years.
These applicants report no severe hypoglycemic reactions resulting in
loss of consciousness or seizure, requiring the assistance of another
person, or resulting in impaired cognitive function that occurred
without warning symptoms, in the past 12 months and no recurrent (2 or
more) severe hypoglycemic episodes in the past 5 years. In each case,
an endocrinologist verified that the driver has demonstrated a
willingness to properly monitor and manage his/her diabetes mellitus,
received education related to diabetes management, and is on a stable
insulin regimen. These drivers report no other disqualifying
conditions, including diabetes-related complications. Each meets the
vision requirement at 49 CFR 391.41(b)(10).
    The qualifications and medical condition of each applicant were
stated and discussed in detail in the March 7, 2017, Federal Register
notice and they will not be repeated in this notice.

III. Discussion of Comments

    FMCSA received one comment in this proceeding. Wesley Collier
stated that he believes he ``would refrain from passing a general
rule'' allowing drivers with ITDM to operate CMVs in interstate
commerce, but allow exceptions for drivers who fit certain medical
criteria. FMCSA has reviewed the medical histories of all drivers in
this document and has determined that granting the exemptions will
create a level of safety equal to or greater than what would be
achieved without granting the exemptions.

IV. Basis for Exemption Determination

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may grant an exemption
from the diabetes requirement in 49 CFR 391.41(b)(3) if the exemption
is likely to achieve an equivalent or greater level of safety than
would be achieved without the exemption. The exemption allows the
applicants to operate CMVs in interstate commerce.
    To evaluate the effect of these exemptions on safety, FMCSA
considered medical reports about the applicants' ITDM and vision, and
reviewed the treating endocrinologists' medical opinion related to the
ability of the driver to safely operate a CMV while using insulin.
    Consequently, FMCSA finds that in each case exempting these
applicants from the diabetes requirement in 49 CFR 391.41(b)(3) is
likely to achieve a level of safety equal to that existing without the
exemption.

V. Conditions and Requirements

    The terms and conditions of the exemption will be provided to the
applicants in the exemption document and they include the following:
(1) That each individual submit a quarterly monitoring checklist
completed by the treating endocrinologist as well as an annual
checklist with a comprehensive medical evaluation; (2) that each
individual reports within 2 business days of occurrence, all episodes
of severe hypoglycemia, significant complications, or inability to
manage diabetes; also, any involvement in an accident or any other
adverse event in a CMV or personal vehicle, whether or not it is
related to an episode of hypoglycemia; (3) that each individual provide
a copy of the ophthalmologist's or optometrist's report to the medical
examiner at the time of the annual medical examination; and (4) that
each individual provide a copy of the annual medical certification to
the employer for retention in the driver's qualification file, or keep
a copy in his/her driver's qualification file if he/she is self-
employed. The driver must also have a copy of the certification when
driving, for presentation to a duly authorized Federal, State, or local
enforcement official.

VI. Conclusion

    Based upon its evaluation of the 44 exemption applications, FMCSA
exempts the following drivers from the diabetes requirement in 49 CFR
391.41(b)(3):

M. Rafael Allen (CT)
Roger L. Anderson (IL)
Joseph S. Bernier (MA)
Davarus L. Bouknight (SC)
Everett L. Brashears (MA)
Thomas G. Brown, II (IN)
Sequoyah S. Browning (AR)
Alfred B. Cardwell (ND)
Gregg J. Chase (NJ)
Michael R. Chrisman (NE)
Joseph A. Czanstkowski (MN)
Daniel G. Durbin (IN)
Charles E. Fennington (DE)
Craig D. Furlough (NC)

Jeffrey D. Griffin (NC)
Daryll A. Grinkey (IL)
Daniel J. Irving (MD)
Charles B. Jesness (CO)
Derrick Johnson (IL)
Robert F. King (NY)
Henry D. Lyons (CT)
Owen L. MacDonald (KS)
Edwin Martinez, Jr. (DE)
Joseph Murray (KS)
Bryan J. Orcutt (ID)
Jesus H. Oseguera (ID)
Eugenio J. Pereira (NJ)
Brian R. Repp (WI)
Michael W. Robinson (MD)
Reynaldo Roman (NY)
David A. Rosen (PA)
Joseph C. Schulte (OH)
Byron L. Short (CO)
George W. Sparrow (RI)
Gabriel S. Stevens (CT)
Stanford A. Tilghman (PA)
Joshua F. Tolman (UT)
Thomas W. Truitt (WY)
Joseph G. Volz (WI)
David B. Watson (FL)
Curtis D. Weinman (WA)
Charlie A. Williams (NC)
Timothy J. Williamson (GA)
Mark E. Wisecarver (PA)

    In accordance with 49 U.S.C. 31136(e) and 31315 each exemption is
valid for two years unless revoked earlier by FMCSA. The exemption will
be revoked if the following occurs: (1) The person fails to comply with
the terms and conditions of the exemption; (2) the exemption has
resulted in a lower level of safety than was maintained before it was
granted; or (3) continuation of the exemption would not be consistent
with the goals and objectives of 49 U.S.C. 31136(e) and 31315. If the
exemption is still effective at the end of the 2-year period, the
person may apply to FMCSA for a renewal under procedures in effect at
that time.

    Issued on: April 19, 2017.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2017-08497 Filed 4-26-17; 8:45 am]
 BILLING CODE 4910-EX-P


DRAFT AGENDA

 Federal Advisory Committee on Detection and Quantitation Approaches and Uses in Clean Water Act Programs

Meeting #10

L. William Seidman Center

3501 Fairfax Drive

Arlington, VA  22201-2305

Rooms 203 & 205

Wednesday – Friday, September 19-21, 2007

The purposes of the meeting are for the committee to reach agreement on recommendations to EPA on (1) uses of detection and quantitation approaches in Clean Water Act programs, (2) a procedure or procedures for detection and quantitation, and (3) definitions for detection and quantitation.  In addition, the committee will also seek to reach agreement on approaches for determining National Quantitation Limits (QLnat); addressing matrix effects; addressing verification of detection and quantitation limits; determining target Measurement Quality Objectives bounds; and implementation of its recommendations.

DAY ONE: Wednesday, September 19, 2007, 9:00 AM to 8:00 PM

Materials

9:00 AM	Opening and Introductions

	9:10 AM	Welcome

Mary Smith, Director, Engineering and Analysis Division, EPA

	9:15 AM	Agenda Overview and Grounding

Facilitator summary of goals for this meeting

FACDQ timeline and Charter

Review of decisions needed at this meeting

Decision process for the meeting

9:30 AM	Discussion and Approval of Meeting Summaries #7, #8, and #9 Documents: FACDQ #7, #8. and #9 Draft Meeting Summaries

10:00 AM	Caucus Reports of Outreach and FACDQ Member Statements

	10:15 AM	BREAK

	10:30 AM	Review of Uses Document (8-31-07) and Decision-Making

Presentation by Policy Work Group

Questions and responses

Plenary discussion of Revised Uses Document

	Document: Revised Uses Document (8-31-07)

11:45 AM	Caucus Lunch Assignments

Reaching agreement on Uses document

Options

Positions

Approaches for agreement

	12:00 PM	Lunch (In FDIC Cafeteria)

Caucus discussions

	1:30 PM	Uses Document Decision-Making

Caucus reports

Discussion

Agreements and vote

	2:30 PM	BREAK

	2:45 PM	Work Group Reports on Draft Products – Brief Descriptions, Recommendations, Rationales

Matrix Effects, Verification, Implementation, Additional FACDQ Recommendations

Discussion

Approaches to reaching agreements

	Documents: Matrix Effects; Verification; Implementation Documents; and Additional FACDQ Recommendations

4:45 PM	Public Comment

	5:00 PM	DINNER BREAK (Brought into FDIC)

	6:30 PM	Detection and Quantitation FAC Single Lab (DQFAC) Procedure (Version 2.4), QLnat Determination Approach (Multi/Inter Lab), and Definitions – Basic Understandings

Technical Work Group presentation

Key components

Rationale

Key decisions needed

	Documents: DQFAC Procedure Version 2.4;

Determining QLnat; Definitions

7:55 PM	Wrap-up; Agenda Review and Assignments for Day 2

	8:00 PM	ADJOURN DAY ONE

DAY TWO: Thursday, September 20, 2007, 9:00 AM to 6:30 PM

Materials

9:00 AM	Welcome, Day Two Agenda Review

	9:15 AM	Recap Decisions from Day One

	9:20 AM	DQFAC Procedure and Determining QLnat

TWG presentation of recommendations and rationale

Discussion

Identification of key issues to resolve

Caucus assignments during break

	10:30 AM	BREAK

Caucus discussions on Procedure recommendation and approach to determining QLnat

	11:00 AM	Caucus Reports on Reaching Agreement on Recommended Procedure and Determining QLnat

	12:00 PM	Lunch

	1:00 PM	Agreements on Procedure and Determining QLnat

Discussions

Agreements and vote

	3:00 PM	BREAK

	3:15 PM	Definitions Discussion

TWG Presentation

Discussion

	Document: Definitions

4:00 PM	Discussion, and Decision on Target MQO Bounds

Discussion on target MQO Bounds

Agreements and vote

	Document: Target MQO Bounds

4:45 PM	Public Comment

	5:00 PM	Wrap-Up; Agenda Review and Assignments for Day 3

	5:15 PM	Adjourn DAY Two

DAY THREE: Friday, September 21, 2007, 8:00 AM to 3:00 PM

Materials

8:00 AM	Welcome, Day Three Agenda Review

	8:15 AM	Final Decisions on Package of Agreements and Recommendations

	10:30 AM	BREAK

	10:45 AM	Discussion of the Final Report and Work Plan

Presentation by Final Report Work Group

Discussion of Final Report and potential recommendations

Agreement on direction to Final Report Work Group

11:30 AM	Recap of Decisions Made at FACDQ #10

	12:00 PM	Lunch

	1:00 PM	Assignments

Policy Work Group

Technical Work Group

Implementation Work Group

Final Report Work Group

Other assignments

	2:00 PM	Next Steps and Schedule

What needs to happen between FACDQ Meeting #10 and FACDQ Meeting #11, December 2007

Agreement on decisions at December Meeting

Schedule for completion of FACDQ work

	2:30 PM	Public Comment

	2:45 PM	Wrap-Up and Summary

	3:00 PM	Adjourn day 3, FACDQ #10

			8/31/2007

Draft for Discussion

Document # FACDQ10-01

 PAGE

 PAGE   1

Federal Advisory Committee on Detection and Quantitation Approaches and  	             Uses In Clean Water Act Programs

September 19-21, 2007 Draft Agenda


[Federal Register Volume 78, Number 38 (Tuesday, February 26, 2013)]
[Proposed Rules]
[Pages 13007-13011]
[FR Doc No: 2013-04409]

=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2013-0055; FRL-9785-3]

Approval and Promulgation of Air Quality Implementation Plans;
Pennsylvania; Allegheny County Reasonably Available Control Technology
Under the 8-Hour Ozone National Ambient Air Quality Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: EPA is proposing to approve a State Implementation Plan (SIP)
revision submitted by the Commonwealth of Pennsylvania for Allegheny
County Health Department (ACHD). This SIP revision consists of a
demonstration that Allegheny County's portion of the Pennsylvania
requirements of reasonably available control technology (RACT) for
nitrogen oxides (NOx) and volatile organic compounds (VOCs) satisfies
the RACT requirements set forth by the Clean Air Act (CAA). This SIP
revision demonstrates that all requirements for RACT are met either
through Certification that previously adopted RACT controls in
Allegheny County's SIP that were approved by EPA under the 1-hour ozone
national ambient air quality standards (NAAQS) are based on the
currently available technically and economically feasible controls, and
continue to represent RACT for the 8-hour ozone NAAQS, a negative
declaration demonstrating that no facilities exist in Allegheny County
for certain control technology guideline (CTG) categories; and a new
RACT determination for a specific source. This action is being taken
under the CAA.

DATES: Written comments must be received on or before March 28, 2013.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R03-OAR-2013-0055 by one of the following methods:
    A. www.regulations.gov. Follow the on-line instructions for
submitting comments.
    B. Email<EMAIL_ADDRESS>    C. Mail: EPA-R03-OAR-2013-0055, Cristina Fernandez, Associate
Director, Office of Air Program Planning, Mailcode 3AP30, U.S.
Environmental Protection Agency, Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103.
    D. Hand Delivery: At the previously-listed EPA Region III address.
Such deliveries are only accepted during the Docket's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R03-OAR-
2013-0055. EPA's policy is that all comments received will be included
in the public docket without change, and may be made available online
at www.regulations.gov, including any personal information provided,
unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit information that you consider to
be CBI or otherwise protected through www.regulations.gov or email. The
www.regulations.gov Web site is an ``anonymous access'' system, which
means EPA will not know your identity or contact information unless you
provide it in the body of your comment. If you send an email comment
directly to EPA without going through www.regulations.gov, your email
address will be automatically captured and included as part of the
comment that is placed in the public docket and made available on the
Internet. If you submit an electronic comment, EPA recommends that you
include your name and other contact information in the body of your
comment and with any disk or CD-ROM you submit. If EPA cannot read your
comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses.
    Docket: All documents in the electronic docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically in www.regulations.gov or
in hard copy during normal business hours at the Air Protection
Division, U.S. Environmental Protection Agency, Region III, 1650 Arch
Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal
are available at the Allegheny County Health Department, Bureau of
Environmental Quality, Division of Air Quality, 301 39th Street,
Pittsburgh, Pennsylvania 15201. Copies are also available at
Pennsylvania Department of Environmental Protection, Bureau of Air
Quality Control, P.O. Box 8468, 400 Market Street, Harrisburg,
Pennsylvania 17105.

FOR FURTHER INFORMATION CONTACT: Emlyn Velez-Rosa,<PHONE_NUMBER>, or
by email at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    Ozone is formed in the atmosphere by photochemical reactions
between VOC, NOx, and carbon monoxide (CO) in the presence of sunlight.
In order to reduce ozone concentrations in the ambient air, the CAA
requires all nonattainment

areas to apply controls on VOC/NOx emission sources to achieve emission
reductions.
    Since the 1970s, EPA has consistently interpreted RACT to mean the
lowest emission limit that a particular source is capable of meeting by
the application of the control technology that is reasonably available
considering technological and economic feasibility. See 72 FR 20586,
20610 (April 25, 2007). Section 182 of the CAA sets forth two separate
RACT requirements for ozone nonattainment areas. The first requirement,
contained in section 182(a)(2)(A) of the CAA, and referred to as RACT
fix-up, requires the correction of RACT rules for which EPA identified
deficiencies before the CAA was amended in 1990. The Pennsylvania RACT
fix-up SIP submittal was approved with a conditional limited approval
on March 23, 1998 (63 FR 13789) and later converted to a full approval
on October 22, 2008 (73 FR 62891).
    The second requirement, set forth in section 182(b)(2) of the CAA,
applies to moderate (or worse) ozone nonattainment areas and attainment
areas in the ozone transport region (OTR) established pursuant to
section 184 of the CAA. These areas are required to implement RACT
controls on all major VOC and NOx emission sources and on all sources
and source categories covered by a CTG issued by EPA. Allegheny County
has adopted all CTGs and they are listed in Section II of this notice.
Further details of Allegheny County's RACT requirements can be found in
a Technical Support Document (TSD) prepared for this rulemaking and
included in the docket at EPA-R03-OAR-2013-0055.
    Section 182(b)(2) of the CAA required Allegheny County to implement
RACT on all sources and source categories covered by a CTG issued by
EPA. Stationary sources with the potential to emit 50 tons per year or
more of VOCs or 100 tons per year or more of NOx that were not covered
by a CTG were also required to implement RACT.
    The ozone transport region (OTR) is established by section 184 of
the CAA. Areas in the OTR are subject to OTR-specific RACT
requirements. Section 184(b)(1)(B) of the CAA requires the
implementation of RACT with respect to all sources of VOC covered by a
CTG. Additionally, section 184(b)(2) of the CAA requires the
implementation of major stationary source requirements as if the area
was a moderate nonattainment area on any stationary source with a
potential to emit at least 50 tons per year of VOC or 100 tons per year
of NOx. Because Allegheny County is in Pennsylvania which is in the
OTR, Allegheny County must comply with section 184(b)(1)(B) and (2) of
the CAA.
    EPA requires for the 8-hour ozone NAAQS that states meet the CAA
RACT requirements, either through a certification that previously
adopted RACT controls in their SIP approved by EPA under the 1-hour
ozone NAAQS represent adequate RACT control levels for 8-hour ozone
NAAQS attainment purposes or through the establishment of new or more
stringent requirements that represent RACT control levels. See Final
Rule To Implement the 8-Hour Ozone National Ambient Air Quality
Standard--Phase 2; Final Rule To Implement Certain Aspects of the 1990
Amendments Relating to New Source Review and Prevention of Significant
Deterioration as They Apply in Carbon Monoxide, Particulate Matter and
Ozone NAAQS; Final Rule for Reformulated Gasoline (Phase 2 Rule), 70 FR
71612, 71655 (November 29, 2005). Sections 172(c)(1) and 182(b)(2) of
the CAA require that all SIPs satisfy the NOx and VOCs RACT
requirements that apply in areas that have not attained the NAAQS for
ozone. See 42 U.S.C. 7502(c)(1), 7511a(b)(2), and 7511a(f). EPA has
determined that states that have RACT provisions approved in their SIPs
for 1-hour ozone nonattainment areas have several options for
fulfilling the RACT requirements for the 8-hour ozone NAAQS. If a state
meets certain conditions, it may certify that previously adopted 1-hour
ozone RACT controls in the SIP continue to represent RACT control
levels for purposes of fulfilling 8-hour ozone RACT requirements.
Alternatively, a state may establish new or more stringent requirements
that represent RACT control levels, either in lieu of or in conjunction
with a certification.
    As set forth in the preamble to the Phase 2 Rule, a certification
must be accompanied by appropriate supporting information such as
consideration of information received during the public comment period
and consideration of new data (70 FR 71612, 71655). This information
may supplement existing RACT guidance documents that were developed for
the 1-hour ozone standard, such that the state's SIP accurately
reflects RACT for the 8-hour ozone standard based on the current
availability of technically and economically feasible controls.
Establishment of new RACT requirements will occur when states have new
stationary sources not covered by existing RACT regulations, or when
new data or technical information indicates that a previously adopted
RACT measure does not represent a newly available RACT control level.
Another 8-hour ozone NAAQS requirement for RACT is to submit a negative
declaration if there are no CTG sources or major sources of VOC and NOx
emissions in lieu of or in addition to a certification.

II. Summary of the SIP Revision

    On May 5, 2009, the Pennsylvania Department of Environmental
Protection (PADEP) submitted a revision on behalf of ACHD for its SIP
that addresses the requirements of RACT under the 8-hour ozone NAAQS
set forth by the CAA. Allegheny County's SIP revision is consistent
with the process in the Phase 2 Rule preamble and satisfies the
requirements of RACT set forth by the CAA under the 8-hour ozone NAAQS
through: (1) Certification that previously adopted RACT controls in
Allegheny County's SIP, which were approved by EPA under the 1-hour
ozone NAAQS, are based on the currently available, technically and
economically feasible controls and continue to represent RACT for the
8-hour ozone NAAQS; (2) a negative declaration demonstrating that no
facilities exist in Allegheny County for the applicable CTG categories;
and (3) a new RACT determination for a single source based upon
reliance on the Maximum Achievable Control Technology (MACT) standard
as allowed in the Phase 2 Rule.

A. VOC CTG RACT Controls

    Allegheny County's Regulations, codified at Article XXI, contain
the County's CTG VOC RACT controls that were implemented and approved
in the Allegheny County SIP under the 1-hour ozone NAAQS. Table 1 lists
Allegheny County's VOC RACT controls for which Allegheny County has
provided the required evaluation and is certifying as meeting the 8-
hour ozone NAAQS RACT requirements. Revisions to Article XXI section
2105.10 for surface coating processes and related definitions found in
Article XXI section 2101.20 were made after this May 5, 2009 SIP
submittal and approved by EPA into the Pennsylvania SIP on December 28,
2010 (75 FR 81480) and supersede the May 5, 2009 submittal. EPA
approved new regulations in the December 28, 2010 rulemaking action
including emission limits for Large Appliance and Metal Surface
Coatings, Article XXI section 2105.77 and emission limits for Paper,
Film, and Foil Surface Coatings, Article XXI section 2105.79. Allegheny
County also incorporated by reference Pennsylvania's Consumer Products
Rule that amended Article XXI section 2105.88, which was finalized by
EPA on

November 29, 2012 (77 FR 71115) and supersedes the May 5, 2009
submittal. In this proposal EPA is not taking action on those CTG Rules
below that have been revised and approved by EPA after the May 5, 2009
submittal.

                                Table 1--Allegheny County's CTG VOC RACT Controls
----------------------------------------------------------------------------------------------------------------
                                                     Existing stationary sources--40 CFR 52.2020(C)
                                       -------------------------------------------------------------------------
                                                                                Federal
          Article XXI Section                                          State       Register date
                                           CTG for RACT basis     effective date      for SIP        Citation
                                                                                approval
----------------------------------------------------------------------------------------------------------------
2105.10 VOC Sources Surface Coating     Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
 Processes.                              Organic Emissions from         07/10/03      06/24/2005     70 FR 36511
                                         Existing Stationary
                                         Sources, Volume II:
                                         Surface Coating of
                                         Cans, Coils, Paper,
                                         Fabrics, Automobiles,
                                         and Light-Duty Trucks.
                                        Control of Volatile
                                         Organic Emissions from
                                         Existing Stationary
                                         Sources, Volume III:
                                         Surface Coating of
                                         Metal Furniture.
                                        Control of Volatile
                                         Organic Emissions from
                                         Existing Stationary
                                         Sources, Volume IV:
                                         Surface Coating for
                                         Insulation of Magnet
                                         Wire.
                                        Control of Volatile
                                         Organic Emissions from
                                         Existing Stationary
                                         Sources, Volume V:
                                         Surface Coating of
                                         Large Appliances.
                                        Control of Volatile
                                         Organic Emissions from
                                         Existing Stationary
                                         Sources, Volume VI:
                                         Surface Coating of
                                         Miscellaneous Metal
                                         Parts and Products.
2105.11 VOC Sources Graphic Arts        Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
 Systems.                                Organic Emissions from
                                         Existing Stationary
                                         Sources, Volume VIII:
                                         Graphic Arts--
                                         Rotogravure and
                                         Flexography.
2105.12 VOC Sources VOC Storage Tanks.  Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
                                         Organic Emissions from
                                         Petroleum Liquid
                                         Storage in External
                                         Floating Roof Tanks.
2105.13 Gasoline Loading Facilities...  Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
                                         Organic Emissions from
                                         Bulk Gasoline Plants.
                                        Design Criteria for
                                         Stage I Vapor Control
                                         Systems--Gasoline
                                         Service Stations.
2105.15 Degreasing Operations.........  Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
                                         Organic Emissions from
                                         Solvent Metal Cleaning.
2105.16 Cutback Asphalt Paving........  Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
                                         Organic Compounds from
                                         Use of Cutback Asphalt.
2105.17 Ethylene Production Facilities  ........................      10/20/1995      11/14/2002     67 FR 68935
2105.19 Synthetic Organic Chemical and  Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
 Polymer Manufacturing--Fugitive         Organic Compound
 Emissions.                              Fugitive Emissions from
                                         Synthetic Organic
                                         Chemical Polymer and
                                         Resin Manufacturing
                                         Equipment.
2105.70 Petroleum Refineries..........  ........................      10/20/1995      11/14/2002     67 FR 68935
2105.71 Pharmaceutical Products.......  Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
                                         Organic Emissions from
                                         Manufacture of
                                         Synthesized
                                         Pharmaceutical Products.
2105.72 Manufacture of Pneumatic        Control of Volatile           10/20/1995      11/14/2002     67 FR 68935
 Rubber Tires.                           Organic Emissions from
                                         Manufacture of
                                         Pneumatic Rubber Tires.
2105.74 Aerospace Manufacturing and     Aerospace...............      07/10/2003      06/24/2005     70 FR 36511
 Rework.
2105.75 Mobile Equipment Repair and     ACT: Automobile Body          07/10/2003      06/24/2005     70 FR 36511
 Refinishing.                            refinishing.
2105.76 Wood Furniture Manufacturing    Wood Furniture..........      07/10/2003      06/24/2005     70 FR 36511
 Operations.
----------------------------------------------------------------------------------------------------------------

    ACHD also submitted a negative declaration certifying that the
following VOC CTG sources listed in table 2 do not exist in Allegheny
County, and therefore ACHD does not need to adopt CTGs for these
sources. Table 2 lists VOC CTG sources in Allegheny County's negative
declaration.

  Table 2--VOC CTG Sources for Which No Applicable Facilities Exist in
                            Allegheny County
------------------------------------------------------------------------

-------------------------------------------------------------------------
Control of Volatile Organic Compound Emissions From Large Petroleum Dry
 Cleaners.
Control of Volatile Organic Emissions From Existing Stationary Sources,
 Volume II: Factory Surface Coating of Flat Wood Paneling.
Control of Volatile Organic Compound Equipment Leaks From Natural Gas/
 Gasoline Processing Plants.
Control of Volatile Organic Compound Emissions From Air Oxidation
 Processes in Synthetic Organic Chemical Manufacturing Industry.
Control of Volatile Organic Compound Emissions From Reactor Processes
 and Distillation Operations Processes in the Synthetic Organic Chemical
 Manufacturing Industry.
Control Techniques Guidelines for Shipbuilding and Ship Repair
 Operations.
------------------------------------------------------------------------

B. Source-Specific RACT Controls

    Table 3 lists Allegheny County's source-specific RACT controls,
which were implemented and approved into the SIP under the 1-hour ozone
NAAQS, for which Allegheny County is certifying as meeting the 8-hr
ozone NAAQS RACT requirements for VOC and/or NOX. EPA
approved into the Pennsylvania SIP new NOX emission control
regulation for Glass Melting Furnaces in Allegheny County on November
29, 2012 (77 FR 71117) which regulation supersedes the source-specific
RACT determinations submitted in the May 5, 2009 submittal for sources
where Article XXI, section 2105.101 is applicable. Allegheny County
submitted a revision on January 25, 2012 removing all references to the
cap and trade programs, NOX SIP Call or Clean Air Interstate
Rule (CAIR) because it certified that those electrical generating units
(EGUs) subject to such programs have source-specific RACT controls that
do not rely on the trading programs and because the U.S. Court of
Appeals for the District of Columbia Circuit ruled in the National
Resources Defense Council v. EPA, 571 F.3d 1245, 1256 (July 10, 2009),
that ``regionwide RACT-level reductions in emissions do not meet the
statutory requirement that the reductions be from sources in the
nonattainment area.''

                                     Table 3--Source-Specific RACT Controls
----------------------------------------------------------------------------------------------------------------
                                       State                                  Federal
          Facility name           effective date         Pollutant         Register date         Citation
----------------------------------------------------------------------------------------------------------------
Allegheny Ludlum Corporation....      12/19/1996  NOX/VOC...............      10/18/2001  66 FR 52857.
Ashland Specialty Chemical Co...      12/30/1996  NOX/VOC...............      10/16/2001  66 FR 52506.
Bay Valley Foods................      06/09/2005  NOX...................      05/11/2006  71 FR 27394.
Bellefield Boiler Plant.........      12/19/1996  NOX...................      10/12/2001  66 FR 52044.
Eastman Chemical Resins, Inc....      11/01/1999  NOX/VOC...............      10/16/2001  66 FR 52506.
GE Lighting LLC.................      12/19/1996  NOX...................      10/16/2001  66 FR 52527.
Guardian Industries Corp........      08/27/1996  NOX...................      10/16/2001  66 FR 52527.
Koppers Industries, Inc.........      08/27/1996  VOC...................      10/17/2001  66 FR 52700.
Neville Chemical Co.............      12/13/1996  NOX/VOC...............      10/16/2001  66 FR 52506.
NRG Energy Center...............      06/09/2005  NOX...................      05/11/2006  71 FR 27394.
Orion Power Brunot Island.......      08/27/1996  NOX/VOC...............      10/15/2001  66 FR 52327.
Orion Power Cheswick............      03/08/1996  NOX...................      10/18/2001  66 FR 52867.
PACT--Pennsylvania Allegheny          03/04/1996  NOX...................      10/12/2001  66 FR 52044.
 County Thermal.
Port Glenshaw Glass, LLC........      03/10/2000  NOX/VOC...............      10/16/2001  66 FR 52527.
PPG Industries, Inc Springdale..      12/19/1996  VOC...................      10/12/2001  66 FR 52050.
Pressure Chemical Company.......      06/11/1997  VOC...................      10/17/2001  66 FR 52700.
Shenango Inc....................      12/30/1996  NOX/VOC...............      10/16/2001  66 FR 52511.
US Steel Clairton...............      12/30/1996  NOX/VOC...............      10/16/2001  66 FR 52511.
US Steel Edgar Thomas...........      12/30/1996  NOX/VOC...............      10/16/2001  66 FR 52511.
US Steel Irvin..................      12/30/1996  NOX/VOC...............      10/16/2001  66 FR 52511.
----------------------------------------------------------------------------------------------------------------

    Finally, the Laurel Mountain Whirlpool facility did not have a 1-
hour ozone NAAQS RACT determination, but is subject to the MACT
standards of 40 CFR 63 subpart WWWW, which has been determined
sufficient for VOC 8-hour ozone NAAQS RACT in accordance with the Phase
2 Rule. Further details of ACHD's RACT re-evaluations can be found in
the TSD prepared for this rulemaking.

III. Proposed Action

    EPA is proposing to approve the ACHD SIP revision that addresses
the requirements of RACT under the 8-hour ozone NAAQS, which was
submitted on May 5, 2009. This SIP revision includes a combination of:
(1) Certifications that previously adopted RACT controls in
Pennsylvania's SIP which were approved by EPA under the 1-hour ozone
NAAQS are based on the currently available, technically and
economically feasible controls and continue to represent RACT for the
8-hour ozone NAAQS; (2) a negative declaration demonstrating that no
facilities exist in Allegheny County for the applicable CTG categories;
and (3) a new RACT determination for a single source. EPA is soliciting
public comments on the issues discussed in this document. These
comments will be considered before taking final action.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely proposes to approve state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this proposed action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the 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 proposed rule does not have tribal implications
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the Allegheny County RACT SIP is not approved to apply in
Indian country located in the state, and EPA notes that it will not
impose substantial direct costs on tribal governments or preempt tribal
law.

List of Subjects in 40 CFR Part 52

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

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

    Dated: February 14, 2013.
Shawn M. Garvin,
Regional Administrator, Region III.
[FR Doc. 2013-04409 Filed 2-25-13; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 76, Number 47 (Thursday, March 10, 2011)]
[Notices]
[Pages 13246-13248]
[FR Doc No: 2011-5442]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64036; File No. SR-EDGX-2011-05]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Amendments to the EDGX Exchange, Inc. Fee Schedule

March 4, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 1, 2011, the EDGX Exchange, Inc. (the ``Exchange'' or the
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend its fees and rebates applicable to
Members \3\ of the Exchange pursuant to EDGX Rule 15.1(a) and (c). All
of the changes described herein are applicable to EDGX Members. The
text of the proposed rule change is available on the Exchange's
Internet Web site at http://www.directedge.com.
---------------------------------------------------------------------------

    \3\ A Member is any registered broker or dealer, or any person
associated with a registered broker or dealer, that has been
admitted to membership in the Exchange.
---------------------------------------------------------------------------

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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B and C below, of the
most significant aspects of such statements.

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

1. Purpose
Reduction in Rebate on EDGX for Adding Liquidity
    Currently, on EDGX, there is a rebate of $0.0026 per share provided
for adding liquidity in securities at or above $1.00. The Exchange
proposes to reduce this rebate to $0.0023 per share. Conforming changes
are proposed on Flags B, V, Y, 3, and 4 to reflect this reduced rebate.
Changes to the Mega Tier
    Currently, Members can qualify for the Mega Tier \4\ and be
provided a $0.0032 rebate per share for liquidity added on EDGX if the
Member on a daily basis, measured monthly, posts 0.75% of the Total
Consolidated Volume (``TCV'') in average daily volume. TCV is defined
as volume reported by all exchanges and trade reporting facilities to
the consolidated transaction reporting plans for Tapes A, B and C
securities.
---------------------------------------------------------------------------

    \4\ The Exchange notes that a Member can qualify for a Mega Tier
rebate of $0.0033 per share if the Member adds or routes at least
5,000,000 shares of average daily volume prior to 9:30 a.m. or after
4 p.m. (includes all flags except 6) AND adds a minimum of
25,000,000 shares of average daily volume on EDGX in total,
including during both market hours and pre- and post-trading hours.
---------------------------------------------------------------------------

    First, the Exchange proposes to add clarifying language to the
definition of TCV (in footnote 1) to explain that when TCV is
calculated for Members, it is based on the month prior to the month in
which the fees are calculated. So, when the calculation of TCV is done
for March 2011 billing for February 2011 trading activity, the
appropriate TCV is based on February 2011 figures.
    The Exchange also proposes to provide an additional way for a
Member to receive a $0.0032 rebate per share for liquidity added on
EDGX. If a Member, on a daily basis, measured monthly, posts 15,000,000
shares more than their February 2011 average daily volume, provided
that their February 2011 average daily volume equals or exceeds
1,000,000 shares added to EDGX, then the Member will receive a $0.0032
rebate per share.
Proposed Changes Associated With Routing to BATS BYX Exchange
    Currently, the BY flag is yielded when an order is routed to BATS
BYX Exchange and removes liquidity using order types ROUC and ROBY, as
defined in Exchange Rules 11.9(b)(3)(a) and (g). The Exchange proposes
to add footnote 10 to the fee schedule to describe that stocks priced
below $1.00 will be charged $0.0010 per share. In addition, the
Exchange proposes to increase the rebate from $0.0003 to $0.0004 when
an order is routed to BATS BYX Exchange and removes liquidity using
order types ROUC and ROBY.
    EDGX Exchange proposes to implement these amendments to the
Exchange fee schedule on March 1, 2011.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\5\ in general, and
furthers the objectives of Section 6(b)(4),\6\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other persons using its
facilities.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the reduced rebate of $0.0023 per share
for adding liquidity on EDGX is an equitable allocation of reasonable
dues, fees, and other charges as the additional revenue that results
from the lower rebate enables the Exchange to cover increased
infrastructure and administrative expenses. In addition, the rebate is
competitive with rebates offered by Nasdaq and NYSE Arca ($0.0020 and
$0.0021 per share, respectively).
    The Exchange believes that the fee associated with the BY flag
($0.0010 per share) for stocks priced below $1 represents an equitable
allocation of reasonable dues, fees, and other charges since it
reflects a pass through of the BATS fee for removing liquidity. EDGX
believes that it is reasonable and equitable to pass on these fees to
its members.
    The proposed increased rebate when an order is routed to BATS BYX
Exchange and removes liquidity (from $0.0003 to $0.0004 per share) is
designed to incentivize Members to use this routing strategy to
increase volume on EDGX. Such increased volume increases potential
revenue to the Exchange, and would allow the Exchange to spread its
administrative and infrastructure costs over a greater number of
shares, leading to lower per share costs. These lower per share costs
would allow the Exchange to pass on the savings to Members in the form
of an increased rebate. The increased liquidity also benefits all
investors by deepening EDGX's liquidity pool, supporting the quality of
price

discovery, promoting market transparency and improving investor
protection.
    This proposed rate represents a discount over the pass through rate
of $0.0003 per share currently provided. The Exchange also believes
that this fee structure is an equitable allocation of reasonable dues,
fees, and other charges in that it applies uniformly to all Members and
the increased rebate for removing liquidity from BATS is consistent
with the processing of similar routing strategies by EDGX's
competitors.\7\
---------------------------------------------------------------------------

    \7\ See BATS fee schedule: Discounted Destination Specific
Routing (``One Under'') to NYSE, NYSE ARCA and NASDAQ. See
Securities Exchange Act Release No. 62858, 75 FR 55838 (September
14, 2010) (SR-BATS-2010-023) (modifying the BATS fee schedule in
order to amend the fees for its BATS + NYSE Arca destination
specific routing option to continue to offer a ``one under'' pricing
model).
---------------------------------------------------------------------------

    The Exchange believes that adding an additional way to qualify for
the Mega Tier also represents an equitable allocation of reasonable
dues, fees, and other charges since higher rebates are directly
correlated with more stringent criteria.
    The Mega Tier rebates of $0.0033/$0.0032 per share have the most
stringent criteria associated with them, and are $0.0002/$0.0001
greater than the Ultra Tier rebate ($0.0031 per share) and $0.0003/
$0.0002 greater than the Super Tier rebate ($0.0030 per share).
    For example, based on average TCV for January 2011 (8.0 billion),
in order for a Member to qualify for the Mega Tier rebate of $0.0033,
the Member would have to add or route at least 5,000,000 shares of
average daily volume during pre and post-trading hours and add a
minimum of 25,000,000 shares of average daily volume on EDGX in total,
including during both market hours and pre and post-trading hours. The
criteria for this tier is the most stringent as fewer Members generally
trade during pre and post-trading hours because of the limited time
parameters associated with these trading sessions. The Exchange
believes that this higher rebate awarded to Members would incent
liquidity during these trading sessions. Such increased volume
increases potential revenue to the Exchange, and would allow the
Exchange to spread its administrative and infrastructure costs over a
greater number of shares, leading to lower per share costs. These lower
per share costs would allow the Exchange to pass on the savings to
Members in the form of a higher rebate.
    Another way a Member can qualify for the Mega Tier (with a rebate
of $0.0032 per share) would be to post 0.75% of TCV. Based on average
TCV for January 2011 (8.0 billion), this would be 60 million shares on
EDGX. A second method, proposed in this filing, to qualify for the
rebate of $0.0032 per share would be to post 15,000,000 shares more
than the Member's February 2011 average daily volume, provided that the
Member's February 2011 average daily volume equals or exceeds 1,000,000
shares added to EDGX. The Exchange believes that requiring Members to
post 15,000,000 shares more than a February 2011 baseline average daily
volume encourages Members to add increasing amounts of liquidity to
EDGX each month. Such increased volume increases potential revenue to
the Exchange, and would allow the Exchange to spread its administrative
and infrastructure costs over a greater number of shares, leading to
lower per share costs. These lower per share costs would allow the
Exchange to pass on the savings to Members in the form of a higher
rebate. The increased liquidity also benefits all investors by
deepening EDGX's liquidity pool, offering additional flexibility for
all investors to enjoy cost savings, supporting the quality of price
discovery, promoting market transparency and improving investor
protection. Volume-based rebates such as the one proposed herein have
been widely adopted in the cash equities markets, and are equitable
because they are open to all members on an equal basis and provide
discounts that are reasonably related to the value to an exchange's
market quality associated with higher levels of market activity, such
as higher levels of liquidity provision and introduction of higher
volumes of orders into the price and volume discovery processes.
    In order to qualify for the Ultra Tier, which has less stringent
criteria than the Mega Tier, the Member would have to post 0.50% of
TCV. Based on average TCV for January 2011 (8.0 billion shares), this
would be 40 million shares on EDGX.
    Finally, the Super Tier has the least stringent criteria of the
tiers mentioned above. In order for a Member to qualify for this
rebate, the Member would have to post at least 10 million shares on
EDGX. As stated above, these rebates also result, in part, from lower
administrative and other costs associated with higher volume.
    The Exchange notes that it operates in a highly competitive market
in which market participants can readily direct order flow to competing
venues if they deem fee levels at a particular venue to be excessive.
The proposed rule change reflects a competitive pricing structure
designed to incent market participants to direct their order flow to
the Exchange. The Exchange believes that the proposed rates are
equitable in that they apply uniformly to all Members. The Exchange
believes the fees and credits remain competitive with those charged by
other venues and therefore continue to be reasonable and equitably
allocated to Members.

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

    The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3) of the Act \8\ and Rule 19b-4(f)(2) \9\ thereunder. At any
time within 60 days of the filing of such 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------

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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-EDGX-2011-05 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary,

Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-1090.

All submissions should refer to File Number SR-EDGX-2011-05. This file
number should be included on the subject line if e-mail 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,\10\ 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 a.m. and 3 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of the
Exchange. 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-
EDGX-2011-05 and should be submitted on or before March 31, 2011.
---------------------------------------------------------------------------

    \10\ The text of the proposed rule change is available on
Exchange's Web site at http://www.directedge.com, on the
Commission's Web site at http://www.sec.gov, at EDGX, and at the
Commission's Public Reference Room.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5442 Filed 3-9-11; 8:45 am]
BILLING CODE 8011-01-P