[Federal Register Volume 85, Number 246 (Tuesday, December 22, 2020)]
[Notices]
[Pages 83665-83667]
[FR Doc No: 2020-28147]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90683; File No. SR-NYSEArca-2020-94]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change, as Modified by Amendments No. 1 and No. 2, To
List and Trade Shares of the AdvisorShares Q Portfolio Blended
Allocation ETF and AdvisorShares Q Dynamic Growth ETF Under NYSE Arca
Rule 8.900-E

December 16, 2020.

I. Introduction

    On October 20, 2020, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) \1\ of the Securities
Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ a
proposed rule change to list and trade shares (``Shares'') of the
following funds under NYSE Arca Rule 8.900-E (Managed Portfolio
Shares): AdvisorShares Q Portfolio Blended Allocation ETF and
AdvisorShares Q Dynamic Growth ETF (each a ``Fund'' and, collectively,
the ``Funds''). The proposed rule change was published for comment in
the Federal Register on November 9, 2020.\4\ On December 9, 2020, the
Exchange filed Amendment No. 1 to the proposed rule change, which
replaced and superseded the proposed rule change as originally filed,
and on December 10, 2020, the Exchange filed Amendment No. 2 to the
proposed rule change.\5\ The Commission has received no comment letters
on the proposal. This order approves the proposed rule change, as
modified by Amendments No. 1 and No. 2.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 90323 (November 3,
2020), 85 FR 71366.
    \5\ In Amendment No. 1, the Exchange: (1) Updated the status of
the application for exemptive relief filed by the Trust (defined
below); (2) modified its representation regarding the use of the
Funds' investments; (3) supplemented its description of the Funds'
NAVs; (4) disclosed the minimum number of shares that would be
outstanding at the commencement of trading on the Exchange; and (5)
made technical changes. In Amendment No. 2, the Exchange clarified
its representation regarding the minimum number of Shares
outstanding at the commencement of trading on the Exchange. Because
Amendments No. 1 and No. 2 do not materially alter the substance of
the proposed rule change, Amendment No. 2 is not subject to notice
and comment. Both amendments are available on the Commission's
website at: https://www.sec.gov/comments/sr-nysearca-2020-94/srnysearca202094.htm.
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II. Description of the Proposal 6
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    \6\ Additional information regarding the Fund, the Trust
(defined infra), and the Shares can be found in Amendments No. 1 and
No. 2, supra note 5, and the Registration Statement, infra note 7.
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    NYSE Arca Rule 8.900-E(b)(1) requires the Exchange to file separate
proposals under Section 19(b) of the Act before listing and trading any
series of Managed Portfolio Shares on the Exchange; thus, the Exchange
submitted this proposal to list and trade the Shares. The Shares will
be issued by the AdvisorShares Trust (``Trust''), a statutory trust
organized under the laws of the State of Delaware and registered with
the Commission as an open-end management investment company.\7\ The
investment adviser to each Fund will be AdvisorShares Investments, LLC
(``Adviser''). The investment sub-advisor to each Fund will be
ThinkBetter, LLC. Foreside Fund Services, LLC (``Distributor'') will
serve as the distributor of the Shares.
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    \7\ The Trust is registered under the Investment Company Act of
1940 (15 U.S.C. 80a-1) (``1940 Act''). On September 11, 2020, the
Trust filed a registration statement on Form N-1A under the
Securities Act of 1933 and the 1940 Act for the Funds (File Nos.
333-157876 and 811-22110) (``Registration Statement''). The
Commission issued an order granting exemptive relief to the Trust
(``Exemptive Order'') under the 1940 Act on December 8, 2020
(Investment Company Act Release No. 31431). The Exemptive Order was
granted in response to the Trust's application for exemptive relief
(``Exemptive Application'') (File No. 812-15146).
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    Each Fund's holdings will conform to the permissible investments as
set forth in the Exemptive Application and Exemptive Order. Pursuant to
the Exemptive Order, the only permissible investments for the Funds are
the following, all of which trade on a U.S. exchange contemporaneously
with the Shares: Exchange-traded funds (``ETFs''), exchange-traded
notes, exchange-listed common stocks, exchange-traded American
Depositary Receipts, exchange-traded real estate investment trusts,
exchange-traded commodity pools, exchange-traded metals trusts,
exchange-traded currency trusts and exchange-traded futures, as well as
cash and cash equivalents (short-term U.S. Treasury securities,
government money market funds, and repurchase agreements).\8\
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    \8\ See Amendment No. 1, supra note 5, at 6, n.7.
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    The AdvisorShares Q Portfolio Blended Allocation ETF is an actively
managed ETF that is primarily a ``fund of funds.'' Its investment
objective is to seek to maximize total return over the long-term. The
Fund will invest in ETFs representing all asset classes, including, but
not limited to, treasury bonds, municipal bonds, investment grade
corporate bonds, high-yield U.S. corporate bonds, U.S. and foreign
equities, and commodities.
    The AdvisorShares Q Dynamic Growth ETF is an actively managed ETF
that is primarily a ``fund of funds.'' It will seek to achieve long-
term growth by investing in ETFs representing all asset classes,
including, but not limited to, treasury bonds, municipal bonds,
investment grade corporate bonds, high-yield U.S. corporate bonds, U.S.
and foreign equities, commodities, and volatility products.
    Each Fund's investments, including derivatives, will be consistent
with its investment objective and will not be used to enhance leverage
(although certain derivatives and other investments may result in
leverage). Each Fund's investments will not be used to seek performance
that is the multiple or inverse multiple (e.g., 2X or -3X) of the
Fund's benchmark.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change, as modified by Amendments No. 1 and No. 2, to list and trade
the Shares is consistent with the Act and the rules and regulations
thereunder applicable to a national securities exchange.\9\ 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
Act,\10\ which requires, among other things, that the Exchange's rules
be designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
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    \9\ 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).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Adviser is not registered as a broker-dealer but is affiliated
with a broker-dealer.\11\ The Adviser has implemented and will maintain
a ``fire wall'' with respect to its broker-dealer affiliate regarding
access to information concerning the composition and/or changes to a
Fund's portfolio and Creation Basket.\12\ Any person related to the
Adviser or the Trust who makes decisions pertaining to a Fund's
portfolio composition or that has access to information regarding a
Fund's portfolio or changes thereto or the

Creation Basket will be subject to procedures designed to prevent the
use and dissemination of material non-public information regarding such
portfolio or changes thereto and the Creation Basket.\13\ Further, any
person or entity, including an AP Representative,\14\ custodian,
Reporting Authority, distributor, or administrator, who has access to
information regarding the Fund's portfolio composition or changes
thereto or its Creation Basket, must be subject to procedures designed
to prevent the use and dissemination of material nonpublic information
regarding the applicable Fund portfolio or changes thereto or the
Creation Basket.\15\ Moreover, if any such person or entity is
registered as a broker-dealer or affiliated with a broker-dealer, such
person or entity must erect and maintain a ``fire wall'' between the
person or entity and the broker-dealer with respect to access to
information concerning the composition of and/or changes to such Fund's
portfolio or Creation Basket.\16\
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    \11\ See Amendment No. 1, supra note 5, at 5.
    \12\ See id. See also NYSE Arca Rule 8.900-E(c)(5) (defining
``Creation Basket'').
    \13\ See Amendment No. 1, supra note 5, at 5. Furthermore, the
Exchange represents that in the event that (a) the Adviser or any
sub-adviser becomes registered as a broker-dealer or becomes 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, the Adviser will implement and maintain a fire wall
with respect to personnel of the broker-dealer or broker-dealer
affiliate regarding access to information concerning the composition
and/or changes to the portfolio and/or Creation Basket. See id.
    \14\ See NYSE Arca Rule 8.900-E(c)(5) (defining ``AP
Representative'').
    \15\ See Amendment No. 1, supra note 5, at 5-6. See also NYSE
Arca Rule 8.900-E(b)(5).
    \16\ See Amendment No. 1, supra note 5, at 6. See also NYSE Arca
Rule 8.900-E(b)(5).
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    The Exchange states that trading in the Shares will be subject to
the Exchange's surveillance procedures for derivative products, and
that its surveillance procedures are adequate to properly monitor the
trading of the Shares on the Exchange during all trading sessions and
to deter and detect violations of Exchange rules and the applicable
federal securities laws.\17\ NYSE Arca Rule 8.900-E(b)(3) requires each
Fund's investment adviser to, upon request by the Exchange, or the
Financial Industry Regulatory Authority (``FINRA'') on behalf of the
Exchange, to make available the daily portfolio holdings of each series
of Managed Portfolio Shares. The Exchange states that it has a general
policy prohibiting the distribution of material, non-public information
by its employees.\18\ Similarly, FINRA Rule 9910(d) generally prohibits
FINRA employees from disseminating or disclosing, for a purpose
unnecessary to the performance of FINRA job responsibilities any
nonpublic information obtained in the course of his or her employment.
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    \17\ See Amendment No. 1, supra note 5, at 14.
    \18\ See id.
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    The Commission also finds that the proposal is consistent with
Section 11A(a)(1)(C)(iii) of the Act,\19\ which sets forth Congress's
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. For the reasons discussed below, the Commission believes
that the proposal is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading in the Shares when a reasonable degree of certain
pricing transparency cannot be assured and, as such, the Commission
believes the proposal is reasonably designed to maintain a fair and
orderly market for trading the Shares. Specifically, as required by
NYSE Arca Rule 8.900-E(d)(1)(B), the Exchange will obtain a
representation from the issuer that the net asset value (``NAV'') per
Share of each Fund will be calculated daily and will be made available
to all market participants at the same time.\20\ Information regarding
market price and trading volume of the Shares will be continually
available on a real-time basis throughout the day on brokers' computer
screens and other electronic services.\21\ Quotation and last-sale
information for the Shares will be available via the Consolidated Tape
Association high-speed line.\22\ In addition, the Verified Intraday
Indicative Value (``VIIV''), as defined in NYSE Arca Rule 8.900-
E(c)(2),\23\ will be widely disseminated by the Reporting Authority
and/or one or more major market data vendors in one second intervals
during the Exchange's Core Trading Session and will be disseminated to
all market participants at the same time.\24\ Moreover, the Funds'
website, www.advisorshares.com, will include a form of the prospectus
for each Fund that may be downloaded. The Funds' website will include
additional quantitative information updated on a daily basis,
including, for each Fund, the prior Business Day's NAV, market closing
price or mid-point of the bid/ask spread at the time of calculation of
such NAV (``Bid/Ask Price''),\25\ and a calculation of the premium and
discount of the market closing price or Bid/Ask Price against the NAV.
The website and information will be publicly available at no
charge.\26\
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    \19\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \20\ See Amendment No. 1, supra note 5, at 14.
    \21\ See id. at 11.
    \22\ See id.
    \23\ NYSE Arca Rule 8.900-E(c)(2) defines the term ``Verified
Intraday Indicative Value'' as the indicative value of a Managed
Portfolio Share based on all of the holdings of a series of Managed
Portfolio Shares as of the close of business on the prior business
day and, for corporate actions, based on the applicable holdings as
of the opening of business on the current business day, priced and
disseminated in one second intervals during the Core Trading Session
by the Reporting Authority. NYSE Arca Rule 8.900-E(c)(8) defines the
term ``Reporting Authority'' with respect to a particular series of
Managed Portfolio Shares as the Exchange, an institution, or a
reporting service designated by the Exchange or by the exchange that
lists a particular series of Managed Portfolio Shares (if the
Exchange is trading such series pursuant to unlisted trading
privileges), as the official source for calculating and reporting
information relating to such series, including, but not limited to,
the NAV, the VIIV, or other information relating to the issuance,
redemption, or trading of Managed Portfolio Shares. A series of
Managed Portfolio Shares may have more than one Reporting Authority,
each having different functions.
    \24\ See Amendment No. 1, supra note 5, at 11-12.
    \25\ The Bid/Ask Price of the Shares will be the mid-point
between the current national best bid and offer at the time of
calculation of a Fund's NAV. The records relating to Bid/Ask Prices
will be retained by the Funds or their service providers. See
Amendment No. 1, supra note 5, at 11, n.15.
    \26\ See id. at 11.
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    Additionally, the Exchange's rules regarding trading halts should
help ensure the maintenance of fair and orderly markets for the Shares.
Trading in the Shares will be subject to NYSE Arca Rule 8.900-
E(d)(2)(C), which sets forth circumstances under which trading in the
Shares will be halted. NYSE Arca Rule 8.900-E(d)(2)(C)(i) provides that
the Exchange may consider all relevant factors in exercising its
discretion to halt trading in a series of Managed Portfolio Shares.
Trading may be halted because of market conditions or for reasons that,
in the view of the Exchange, make trading in the series of Managed
Portfolio Shares inadvisable. These may include: (a) The extent to
which trading is not occurring in the securities and/or the financial
instruments composing the portfolio; or (b) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present.\27\ Further, NYSE

Arca Rule 8.900-E(d)(2)(C)(ii) provides that, if the Exchange becomes
aware that: (i) The VIIV of a series of Managed Portfolio Shares is not
being calculated or disseminated in one second intervals, as required;
(ii) the NAV with respect to a series of Managed Portfolio Shares is
not disseminated to all market participants at the same time; (iii) the
holdings of a series of Managed Portfolio Shares are not made available
on at least a quarterly basis as required under the 1940 Act; or (iv)
such holdings are not made available to all market participants at the
same time (except as otherwise permitted under the applicable Exemptive
Order or no-action relief granted by the Commission or Commission staff
to the Investment Company with respect to the series of Managed
Portfolio Shares), it will halt trading in such series until such time
as the VIIV, the NAV, or the holdings are available, as required.
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    \27\ The Exemptive Application provides that the Investment
Company or their agent will request that the Exchange halt trading
in the applicable series of Managed Portfolio Shares where: (i) The
intraday indicative values calculated by the calculation engines
differ by more than 25 basis points for 60 seconds in connection
with pricing of the VIIV; or (ii) holdings representing 10% or more
of a series of Managed Portfolio Shares' portfolio have become
subject to a trading halt or otherwise do not have readily available
market quotations. Any such requests will be one of many factors
considered in order to determine whether to halt trading in a series
of Managed Portfolio Shares, and the Exchange retains sole
discretion in determining whether trading should be halted. As
provided in the Exemptive Application, each series of Managed
Portfolio Shares would employ a pricing verification agent to
continuously compare two intraday indicative values during regular
trading hours in order to ensure the accuracy of the VIIV. See id.
at 13, n.19.
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    In support of this proposal, the Exchange has also made the
following representations:
    (1) The Shares will conform to the initial and continued listing
criteria under NYSE Arca Rule 8.900-E, as well as all terms in the
Exemptive Order.\28\
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    \28\ See id. at 14.
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    (2) The Exchange states that a minimum of 100,000 Shares of each
Fund will be outstanding at the commencement of trading on the
Exchange.\29\
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    \29\ See Amendment No. 2, supra note 5, at 3.
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    (3) 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.\30\
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    \30\ See Amendment No. 1, supra note 5, at 13.
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    (4) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders (``ETP Holders'') in an Information
Bulletin (``Bulletin'') of the special characteristics and risks
associated with trading the Shares.\31\
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    \31\ The Bulletin will discuss the following: (1) The procedures
for purchases and redemptions of Shares; (2) NYSE Arca Rule 9.2-
E(a), which imposes a duty of due diligence on its ETP Holders to
learn the essential facts relating to every customer prior to
trading the Shares; (3) how information regarding the VIIV is
disseminated; (4) the requirement that ETP Holders deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; (5) trading
information; and (6) that the portfolio holdings of the Shares are
not disclosed on a daily basis. See id. at 14-15.
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    (5) FINRA, on behalf of the Exchange, or the regulatory staff of
the Exchange, or both, will communicate as needed regarding trading in
the Shares and certain exchange-traded instruments with other markets
and other entities that are members of the Intermarket Surveillance
Group (``ISG''), and FINRA, on behalf of the Exchange, or the
regulatory staff of the Exchange, or both, may obtain trading
information regarding trading such securities from such markets and
other entities. In addition, the Exchange may obtain information
regarding trading in the Shares and certain exchange-traded instruments
from markets and other entities that are members of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement.\32\
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    \32\ See id. at 14.
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    (6) The Exchange represents that, for initial and/or continued
listing, each Fund will be in compliance with Rule 10A-3 under the
Act.\33\
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    \33\ See id. at 6, n.6.
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    This approval order is based on all of the Exchange's statements
and representations set forth above and in Amendments No. 1 and No. 2.
Additionally, the Exchange states that all statements and
representations made in its proposal regarding (a) the description of
the portfolio or reference assets, (b) limitations on portfolio
holdings or reference assets, or (c) the applicability of Exchange
rules shall constitute continued listing requirements for listing the
Shares on the Exchange, as provided under NYSE Arca Rule 8.900-E(b)(1).
The issuer of the Shares will be required to represent to the Exchange
that it will advise the Exchange of any failure by a Fund to comply
with the continued listing requirements, and, pursuant to its
obligations under Section 19(g)(1) of the Act, the Exchange will
surveil for compliance with the continued listing requirements. If a
Fund is not in compliance with the applicable listing requirements, the
Exchange will commence delisting procedures under NYSE Arca Rule 5.5-
E(m).\34\
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    \34\ See id. at 14.
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    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendments No. 1 and No. 2, is consistent
with Section 6(b)(5) of the Act \35\ and Section 11A(a)(1)(C)(iii) of
the Act \36\ and the rules and regulations thereunder applicable to a
national securities exchange.
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    \35\ 15 U.S.C. 78f(b)(5).
    \36\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\37\ that the proposed rule change (SR-NYSEArca-2020-94), as
modified by Amendments No. 1 and No. 2, be, and it hereby is, approved.
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    \37\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\38\
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    \38\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-28147 Filed 12-21-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 2 (Wednesday, January 4, 2012)]
[Notices]
[Pages 277-278]
[FR Doc No: 2011-33734]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP11-72-00]

Sabine Pass Liquefaction, LLC and Sabine Pass LNG, L.P; Notice of
Availability of the Environmental Assessment for the Proposed Sabine
Pass Liquefaction Project

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) has prepared an environmental assessment (EA) for the
Sabine Pass Liquefaction Project (Project), proposed by Sabine Pass
Liquefaction, LLC and Sabine Pass LNG, L.P. (collectively referred to
as Sabine Pass) in the above-referenced docket. Sabine Pass requests
authorization to construct and operate facilities to be used for the
liquefaction and exportation of natural gas at the existing Sabine Pass
LNG Import Terminal in Cameron Parish, Louisiana. The Project would be
capable of processing an average of approximately 2.6 billion cubic
feet per day of pipeline quality natural gas from the Creole Trail
Pipeline, which interconnects with the SPLNG Terminal. Sabine Pass
would liquefy the natural gas, store the liquefied natural gas (LNG),
and export approximately 16 million metric tons per annum of LNG via
LNG carriers.
    The EA assesses the potential environmental effects of the
construction and operation of the Project in accordance with the
requirements of the National Environmental Policy Act (NEPA). The FERC
staff concludes that approval of the proposed project, with appropriate
mitigating measures, would not constitute a major federal action
significantly affecting the quality of the human environment.
    The Department of Energy, U.S. Army Corps of Engineers, and U.S.
Department of Transportation participated as cooperating agencies in
the preparation of the EA. Cooperating agencies have jurisdiction by
law or special expertise with respect to resources potentially affected
by the proposal and participate in the NEPA analysis.
    The proposed Project includes the following facilities:
     Four LNG liquefaction trains (each train contains gas
treatment facilities, six gas turbine-driven refrigerant compressors,
waste heat recovery systems, induced draft air coolers, fire and gas
detection and safety systems, control systems, and associated
infrastructure);
     Additional power generation (including up to two gas
turbine-driven generators, transformers, and other electrical
accessories to supplement existing onsite power generation);
     Other infrastructure and modifications (including storage
tanks for propane and ethylene refrigerants and the amine make up,
replacement of in-tank LNG pumps and piping modifications to increase
flow capacity and facilitate loading of LNG carriers, impoundments for
the liquefaction trains, flares, recycle boil-off gas compressors,
potable water, service water, and demineralized water systems); and
     New and remodeled buildings.
    The FERC staff mailed copies of the EA to federal, state, and local
government representatives and agencies; elected officials;
environmental and public interest groups; Native American tribes;
potentially affected landowners and other interested individuals and
groups; newspapers and libraries in the project area; and parties to
this proceeding. In addition, the EA is available for public viewing on
the FERC's Web site (www.ferc.gov) using the eLibrary link. A limited
number of copies of the EA are available for distribution and public
inspection at: Federal Energy Regulatory Commission, Public Reference
Room, 888 First Street NE., Room 2A, Washington, DC 20426 (202) 502-
8371.
    Any person wishing to comment on the EA may do so. Your comments
should focus on the potential environmental effects, reasonable
alternatives, and measures to avoid or lessen environmental impacts.
The more specific your comments, the more useful they will be. To
ensure that your comments are properly recorded and considered prior to
a Commission decision on the proposal, it is important that the FERC
receives your comments in Washington, DC on or before January 27, 2011.
    For your convenience, there are three methods you can use to submit
your comments to the Commission. In all instances please reference the
project docket number (CP11-72-000) with your submission. The
Commission encourages electronic filing of comments and has expert
staff available to assist you at<PHONE_NUMBER> or<EMAIL_ADDRESS>    (1) You can file your comments electronically using the eComment
feature on the Commission's Web site (www.ferc.gov) under the link to
Documents and Filings. This is an easy method for submitting brief,
text-only comments on a project;
    (2) You can file your comments electronically using the eFiling
feature on the Commission's Web site (www.ferc.gov) under the link to
Documents and Filings. With eFiling, you can provide comments in a
variety of formats by attaching them as a file with your submission.
New eFiling users must first create an account by clicking on
``eRegister.'' You must select the type of filing you are making. If
you are filing a comment on a particular project, please select
``Comment on a Filing''; or
    (3) You can file a paper copy of your comments by mailing them to
the following address: Kimberly D. Bose, Secretary Federal Energy
Regulatory Commission, 888 First Street NE., Room 1A, Washington, DC
20426.
    Any person seeking to become a party to the proceeding must file a
motion to intervene pursuant to Rule 214 of the Commission's Rules of
Practice and Procedures (18 CFR 385.214).\1\ Only intervenors have the
right to seek rehearing of the Commission's decision. The Commission
grants affected landowners and others with environmental concerns
intervenor status upon showing good cause by stating that they have a
clear and direct

interest in this proceeding which no other party can adequately
represent. Simply filing environmental comments will not give you
intervenor status, but you do not need intervenor status to have your
comments considered.
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    \1\ See the previous discussion on the methods for filing
comments.
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    Additional information about the project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC Web site (www.ferc.gov) using the eLibrary link. Click on the
eLibrary link, click on ``General Search,'' and enter the docket number
excluding the last three digits in the Docket Number field (i.e., CP11-
72). Be sure you have selected an appropriate date range. For
assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of formal documents issued by the Commission, such as orders,
notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. Go to www.ferc.gov/esubscribenow.htm.

    Dated: December 28, 2011.
 Kimberly D. Bose,
 Secretary.
[FR Doc. 2011-33734 Filed 1-3-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 147 (Tuesday, July 31, 2018)]
[Proposed Rules]
[Pages 36816-36823]
[FR Doc No: 2018-16378]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R02-OAR-2018-0549; FRL-9981-62--Region 2]

Approval and Promulgation of Implementation Plans; New Jersey;
Elements for the 2008 8-Hour Ozone National Ambient Air Quality
Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve several State Implementation Plan (SIP) revisions submitted by
the State of New Jersey for purposes of implementing Reasonably
Available Control Technology (RACT) for the 2008 8-hour ozone National
Ambient Air Quality Standard (NAAQS). The EPA is proposing to approve
New Jersey's SIP revision for the control and prohibition of air
pollution by volatile organic compounds (VOCs) and control and
prohibition of air pollution by oxides of nitrogen (NOX), as
they are intended to satisfy certain control technique guideline (CTG)
and NOX RACT categories. The EPA is proposing to approve New
Jersey's certification that there are no sources within the State for
the following CTGs: Manufacture of Vegetable Oils; Manufacture of
Pneumatic Rubber Tires; Aerospace

Coatings; Shipbuilding and Ship Repair Operations; Metal Furniture
Coatings; Large Appliance Coatings; and Auto and Light Duty Truck
Original Equipment Manufacturer Assembly Coatings. In addition, the EPA
is proposing to approve New Jersey's RACT SIP as it applies to non-CTG
major sources of VOCs and major sources of NOX. The EPA is
also proposing to approve the other portions of the comprehensive SIP
revision submitted by New Jersey that certify that the State has
satisfied the requirements for an enhanced motor vehicle Inspection and
Maintenance program, certify that the State has satisfied the
requirements for an emission statement program, certify that the State
has satisfied the requirements for an ozone specific provisions
nonattainment new source review program, and show the State has adopted
all NOX RACT and VOC RACT, as it pertains to the 2008 8-hour
ozone NAAQS. These actions are being taken in accordance with the
requirements of the Clean Air Act.

DATES: Written comments must be received on or before August 30, 2018.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R02-OAR-2018-0549 at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. The EPA may publish any
comment received to its public docket. Do not submit electronically any
information you consider to be Confidential Business Information (CBI)
or other information whose disclosure is restricted by statute.
Multimedia submissions (audio, video, etc.) must be accompanied by a
written comment. The written comment is considered the official comment
and should include discussion of all points you wish to make. The EPA
will generally not consider comments or comment contents located
outside of the primary submission (i.e., on the web, cloud, or other
file sharing system). For additional submission methods, the full EPA
public comment policy, information about CBI or multimedia submissions,
and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT:  Omar Hammad, Environmental Protection
Agency, 290 Broadway, New York, New York 10007-1866, at<PHONE_NUMBER>,
or by email at [email protected].

SUPPLEMENTARY INFORMATION: The Supplementary Information section is
arranged as follows:

Table of Contents

I. What action is the EPA proposing?
II. What is the background for this proposed rulemaking?
III. What did New Jersey submit?
IV. What is the EPA's evaluation of New Jersey's SIP submittals?
V. What action is the EPA proposing?
VI. Incorporation by Reference
VII. Statutory and Executive Order Reviews

I. What action is the EPA proposing?

    The EPA is proposing to approve a State Implementation Plan (SIP)
revision submitted by the State of New Jersey on June 11, 2015, for
purposes of implementing Reasonably Available Control Technology (RACT)
\1\ for the 2008 8-hour ozone National Ambient Air Quality Standard
(NAAQS or standard). New Jersey's June 11, 2015 SIP submittal consists
of a showing that the State meets the RACT requirements for the two
precursors for ground-level ozone, i.e., oxides of nitrogen
(NOX) and volatile organic compounds (VOCs), set forth by
the Clean Air Act (CAA or Act) with respect to the 2008 ozone standard.
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    \1\ The EPA has defined RACT as the lowest emission limitation
that a particular source is capable of meeting by the application of
control technology that is reasonably available considering
technological and economic feasibility (44 FR 53762, September 17,
1979).
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    This action addresses New Jersey SIP submittals dated June 11,
2015, December 14, 2017, and January 2, 2018. In the June 11, 2015 SIP
submittal, the State indicates that the RACT requirements for the 2008
ozone NAAQS have been fulfilled with the exception of sources subject
to four Control Techniques Guidelines (CTGs) for source categories
represented in New Jersey: Industrial Cleaning Solvents (EPA 453/R-06-
001); Paper, Film, and Foil Coatings (EPA 453/R-07-003); Miscellaneous
Metal and Plastic Parts Coatings (EPA 453/R-08-003); and Fiberglass
Boat Manufacturing Materials (EPA-453/R-08-004). The June 11, 2015
submittal also establishes new limits on NOX emissions from
existing simple cycle combustion turbines combusting natural gas and
compressing gaseous fuel at major NOX facilities and
stationary reciprocating engines combusting natural gas and compressing
gaseous fuel at major NOX facilities. In a submission
received by the EPA on December 14, 2017,\2\ titled ``Control and
Prohibition of Air Pollution by Volatile Organic Compounds and Oxides
of Nitrogen,'' New Jersey indicates that the RACT requirements for the
2008 ozone NAAQS have been fulfilled for sources subject to the four
CTGs identified above that were not addressed in the June 11, 2015
submittal. The EPA is proposing to approve New Jersey's June 11, 2015
RACT SIP as it applies to non-CTG major sources of VOCs and to major
sources of NOX. The EPA is proposing to approve New Jersey's
December 14, 2017 submittal addressing the aforementioned four CTGs and
establishing new limits on NOX emissions.
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    \2\ Submission cover letter dated November 30, 2017.
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    Also, the EPA is proposing to approve the portions of New Jersey's
SIP revision submitted on January 2, 2018,\3\ that certifies the State
has satisfied the requirements for a motor vehicle enhanced inspection
and maintenance (I/M) program, an emission statement program, an ozone
specific provisions nonattainment new source review (NNSR) program, and
that the State has adopted all applicable NOX RACT and VOC
RACT, submitted in the ``1997 84 ppb and 2008 75 ppb 8-Hour Ozone
Attainment Demonstration Northern New Jersey-New York-Connecticut
Nonattainment Area and Nonattainment New Source Review (NNSR) Program
Compliance Certification New Jersey Statewide'' SIP revision.
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    \3\ Submission cover letter dated December 22, 2017.
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    The EPA proposes that New Jersey's SIP submittals are consistent
with the EPA's guidance documents as well as the EPA's CTG and
Alternative Control Technique (ACT) documents and are fully approvable
as SIP-strengthening measures for New Jersey's ozone SIP.

II. What is the background for this proposed rulemaking?

    In 2008, the EPA revised the health based NAAQS for ozone, setting
it at 0.075 parts per million (ppm), or 75 parts per billion (ppb),
averaged over an 8-hour time frame. The EPA determined that the revised
8-hour standard would be more protective of human health, especially
with regard to children and adults who are active outdoors and
individuals with a pre-existing respiratory disease such as asthma.
    On May 21, 2012 (77 FR 30087), the EPA finalized its attainment/
nonattainment designations for areas across the country with respect to
the 2008 8-hour ozone standard. This action became effective on July
20, 2012. The two 8-hour ozone marginal nonattainment areas located in
New Jersey are the New York-Northern New Jersey-Long Island, NY-NJ-CT
nonattainment area, also referred to as the New York Metropolitan Area

(NYMA), and the Philadelphia-Wilmington-Atlantic City, PA-NJ-MD-DE
nonattainment area. The New Jersey portion of the NYMA is comprised of
Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Passaic,
Somerset, Sussex, Union and Warren Counties. On May 4, 2016 (81 FR
26697), the EPA determined that the NYMA did not attain the 2008 ozone
standard by the applicable attainment date and is reclassified from a
marginal to a moderate nonattainment area. State attainment plans for
moderate nonattainment areas were due by January 1, 2017. Since the
NYMA has been reclassified to a moderate nonattainment area, New Jersey
submitted a new RACT determination as part of the State's attainment
demonstration for the 2008 ozone standard.
    In areas classified as moderate or areas located in the Ozone
Transport Region (OTR) (which includes all of New Jersey) under the 8-
hour ozone standard, the definition for major sources is 50 tons per
year for VOC and 100 tons per year for NOX. New Jersey,
however, has an emission threshold of 25 tons per year throughout the
state for purposes of the RACT analysis which results in a more
stringent evaluation of RACT.
    Sections 172(c)(1) and 182(b)(2) of the CAA require states to
implement RACT in areas classified as moderate (and higher)
nonattainment for ozone, while section 184(b)(1)(B) of the CAA requires
RACT in states located in the OTR. Specifically, these areas are
required to implement RACT for all major VOC and NOX
emission sources and for all sources covered by a CTG. A CTG is a
document issued by the EPA which establishes a ``presumptive norm'' for
RACT for a specific VOC source category. A related set of documents,
ACT documents, exists primarily for NOX control
requirements. States must submit rules or negative declarations when
the State has no such sources for CTG source categories, but not for
sources in ACT categories. However, RACT must be imposed on major
sources of NOX, and some of those major sources may be
within a sector covered by an ACT document.
    On March 6, 2015 (80 FR 12264), the EPA published a final rule,
herein referred to as the ``2008 ozone implementation rule,'' that
outlined the obligations that areas found to be in nonattainment of the
2008 ozone NAAQS needed to address. The 2008 ozone implementation rule
contains, among other things, a description of the EPA's expectations
for states with RACT obligations. The 2008 ozone implementation rule
indicates that states could meet RACT through the establishment of new
or more stringent requirements that meet RACT control levels, through a
certification that previously adopted RACT controls in their SIP
approved by the EPA under a prior ozone NAAQS represents adequate RACT
control levels for attainment of the 2008 ozone NAAQS, or a combination
of these two approaches. In addition, a state must submit a negative
declaration in instances where there are no CTG sources. The 2008 ozone
implementation rule requires that states with nonattainment areas to
submit RACT SIPs to EPA within two years from the effective date of
nonattainment designation or by July 20, 2014.
    The 2008 ozone implementation rule also states, among other things,
that an attainment demonstration should consist of a list of adopted
measures (including RACT) with schedules for implementation and other
means and techniques necessary and appropriate for demonstrating
attainment as expeditiously as practicable but no later than the
outside attainment date for the area's classification. New Jersey
submitted an attainment demonstration SIP and EPA will act on it in a
separate rulemaking.

III. What did New Jersey submit?

    On June 11, 2015, the New Jersey Department of Environmental
Protection (NJDEP) submitted to the EPA a formal revision to its SIP.
The SIP revision consists of information documenting how New Jersey
complied with the RACT requirements for the 2008 8-hour ozone NAAQS,
pertaining to the former marginal classification for the NYMA. In its
June 11, 2015 submittal, New Jersey certifies that the State's
submittal addresses the RACT requirements for the 2008 8-hour ozone
standard except that it does not fulfill the requirements of the CTGs
for industrial cleaning solvents, paper film and foil coatings,
fiberglass boat manufacturing materials, and miscellaneous metal and
plastic parts coatings and the requirements of the ACTs for stationary
reciprocating internal combustion engines and stationary gas turbines.
In New Jersey's June 2015 RACT submittal, the State commits to revise
New Jersey Administrative Code, Title 7, Chapter 27 (N.J.A.C 7:27)
Subchapter 16 and Subchapter 19 to address those requirements in a
timely manner.
    On December 14, 2017, the EPA received New Jersey's SIP revision,
``New Jersey's Control and Prohibition of Air Pollution by Volatile
Organic Compounds and Control and Prohibition of Air Pollution by
Oxides of Nitrogen.'' \3\ The December 14, 2017 submittal includes the
amendment to N.J.A.C. 7:27, Subchapter 16, ``Control and Prohibition of
Air Pollution by Volatile Organic Compounds'' and Subchapter 19,
``Control and Prohibition of Air Pollution by Oxides of Nitrogen'' that
New Jersey committed to propose and adopt in their June 11, 2015
submittal.
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    \3\ Effective date November 6, 2017 (49 N.J.R. 3518).
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    On January 2, 2018, New Jersey submitted, for inclusion in the SIP,
the ``1997 84 ppb and 2008 75 ppb 8-Hour Ozone Attainment Demonstration
Northern New Jersey-New York-Connecticut Nonattainment Area and
Nonattainment New Source Review (NNSR) Program Compliance Certification
New Jersey Statewide.'' In the January 2, 2018 submission New Jersey
certifies, among other things, that the State has satisfied the
requirements for an enhanced motor vehicle I/M program, an emission
statement program, an ozone specific provisions NNSR program, and that
the State has adopted all applicable NOX RACT and VOC RACT
for the moderate NYMA.\4\
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    \4\ The EPA will act on the remainder of New Jersey's January 2,
2018 SIP revision submittal, including the attainment
demonstrations, Reasonable Further Progress (RFP) requirements and
other portions at a later date.
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    In New Jersey's June 11, 2015 RACT submittal, the State evaluated
its existing RACT regulations which were adopted to meet the 1997 8-
hour ozone standard to ascertain whether the same regulations
constitute RACT for the 2008 8-hour ozone standard. In making its new
8-hour ozone RACT determination, New Jersey referenced EPA's RACT
guidance (``Beyond Volatile Organic Compound-Reasonably Available
Control Technology-Control Technology Guidelines Requirements, EPA-453/
R-95-010, April 1995) and EPA's proposed rule ``Implementation of the
2008 National Ambient Air Quality Standards for Ozone: State
Implementation Plan Requirements.'' 78 FR 34178 (June 2013).\5\
Accordingly, the basic framework for New Jersey's June 11, 2015 RACT
SIP determination is described as follows:
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    \5\ The EPA finalized the proposed rule. 80 FR 12264 (March 6,
2015).
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     Identify all source categories covered by Control
Technique Guidelines (CTG) and Alternative Control Technique (ACT)
documents.
     Identify applicable regulations that implement RACT.
     Certify that the existing level of controls for the 1997
8-hour ozone standard equals RACT under the 2008 8-hour ozone standard
in certain cases.

     Declare that sources covered by a CTG and ACT do not exist
within the state and/or that RACT is not applicable in certain cases.
     Identify and evaluate applicability of RACT to individual
sources whose source category does not have a presumptive emission
limit covered by a state-wide regulation.
     Identify potential RACT revisions.
    In New Jersey's June 11, 2015 submittal, the State certified that
all statewide RACT regulations, with the exception of four CTGs and two
ACTs, with SIP approved state effective dates prior to the date when
the RACT analysis was performed in 2015, are RACT for the 2008 8-hour
ozone NAAQS, because the RACT determinations issued by the State are
consistent with the most recent control technology and economic
considerations. The State's December 14, 2017 submittal addressed the
requirements for the four CTGs; the CTG for ``industrial cleaning
solvents,'' ``paper film and foil coatings,'' ``fiberglass boat
manufacturing materials,'' and ``miscellaneous metal and plastic parts
coatings'' and the two ACTs for ``stationary reciprocating internal
combustion engines'' and ``stationary gas turbines.'' The following
discusses the results of New Jersey's analysis of RACT under the basic
framework identified above.

CTGs and ACTs

    New Jersey reviewed its existing RACT regulations adopted under the
1979 1-hour and 1997 8- hour ozone standard to identify source
categories covered by the EPA's CTG and ACT documents. New Jersey's
2015 RACT SIP submittal lists the CTG and ACT documents and
corresponding State RACT regulations that cover the CTG and ACT sources
included in New Jersey's emissions inventory.
    In 2009, New Jersey adopted VOC and NOX RACT for major
non-CTG sources located in the State. Those sources for which EPA
guidance was not published, but for which the State established RACT,
include:
    1. High Electric Demand Day boilers serving EGUs [N.J.A.C. 7:27-
19.4];
    2. High Electric Demand Day turbines serving EGUs [N.J.A.C. 7:27-
19.5];
    3. Asphalt paving production plants [N.J.A.C. 7:27-19.9];
    4. Alternative VOC control requirements [N.J.A.C. 7:27-16.17];
    5. Alternative and facility-specific NOX emission limits
[N.J.A.C. 7:27-19.13];
    6. Municipal solid waste (MSW) incinerators [N.J.A.C. 7:27-19.12];
and
    7. Sewage sludge incinerators [N.J.A.C. 7:27-19.28].
    New Jersey has determined that currently effective emission limits
for these source categories still represent RACT in 2015 for the
marginal classification in the NYMA for the 75 ppb ozone standard.
    With the exception of the source categories for which New Jersey
has made negative declarations, New Jersey has implemented RACT
controls state-wide for all CTGs that the EPA has issued as of June
2015 to meet the requirements of the CAA. The following table lists the
RACT controls that have been promulgated in N.J.A.C. 7:27 and the
corresponding EPA SIP approval dates.

----------------------------------------------------------------------------------------------------------------
         N.J.A.C. 7:27 subchapter                              Title                    EPA latest approval date
----------------------------------------------------------------------------------------------------------------
16.2......................................  VOC stationary storage tanks..............       8/3/10, 75 FR 45483
16.3......................................  Gasoline transfer operations..............       8/3/10, 75 FR 45483
16.6......................................  Open top tanks and solvent cleaning              8/3/10, 75 FR 45483
                                             operations.
16.7......................................  Surface coating and graphic arts                 8/3/10, 75 FR 45483
                                             operations.
16.12.....................................  Surface coating operations at mobile             8/3/10, 75 FR 45483
                                             equipment repair and refinishing
                                             facilities.
16.16.....................................  Other source operations...................       8/3/10, 75 FR 45483
16.18.....................................  Leak detection and repair.................       8/3/10, 75 FR 45483
16.19.....................................  Application of cutback and emulsified            8/3/10, 75 FR 45483
                                             asphalts.
16.20.....................................  Petroleum solvent dry cleaning operations.       8/3/10, 75 FR 45483
19.4......................................  Boilers serving electric generating units.       8/3/10, 75 FR 45483
19.5......................................  Stationary combustion turbines............       8/3/10, 75 FR 45483
19.7......................................  Industrial/commercial/institutional              8/3/10, 75 FR 45483
                                             boilers and other indirect heat
                                             exchangers.
19.8......................................  Stationary reciprocating engines..........       8/3/10, 75 FR 45483
19.10.....................................  Glass manufacturing furnaces..............       8/3/10, 75 FR 45483
23........................................  Prevention of Air Pollution from               12/22/10, 75 FR 80340
                                             Architectural Coatings Standards.
24........................................  Consumer products.........................     12/22/10, 75 FR 80340
26........................................  Prevention of Air Pollution from               12/22/10, 75 FR 80340
                                             Adhesives, Sealants, Adhesive Primers and
                                             Sealant Primers.
----------------------------------------------------------------------------------------------------------------

    New Jersey's June 11, 2015 RACT submittal contains a table (see
Table II-2: RACT Certifications Based on Existing EPA Guidance) listing
all the CTG and ACT categories (67 categories in total) and the
corresponding State regulations or negative declarations that address
the requirements. The EPA previously approved and incorporated into the
SIP all of the State's regulations identified in Table II-2 that
address CTGs and ACTs. New Jersey's December 14, 2017 submittal
fulfilled the requirement to submit for the four CTGs and two ACTs
which are identified in Table II-2 as rules that had not yet been
adopted.
    For many source categories, the existing New Jersey rules have more
stringent emission limits and/or lower thresholds of applicability than
the recommendations contained in the CTG and ACT documents. New Jersey
considers and certifies that its SIP approved regulations meet the RACT
requirements for the 2008 8-hour ozone standard.

Source Categories Not Applicable in New Jersey

    In New Jersey's 2015 submittal, by comparing the list of existing
CTGs with New Jersey's effective rules, and researching the New Jersey
Environmental Management System (NJEMS) emission statements and
permitting database for source categories by Standard Industrial Code
(SIC), the State certifies that the following source-specific
categories either do not exist in this State, or fall below significant
emission unit applicability thresholds in the CTGs: (1) Manufacture of
Vegetable Oils; \6\ (2)

Manufacture of Pneumatic Rubber Tires; (3) Aerospace Coatings; (4)
Shipbuilding and Ship Repair Operations; (5) Metal Furniture Coatings;
(6) Large Appliance Coatings; and (7) Auto and Light Duty Truck
Original Equipment Manufacturer (OEM) Assembly Coatings.
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    \6\ The CTG for the manufacturing of vegetable oils was
published in June 1978 (see EPA-450/2-78- 035) but in a March 1980
guidance document, entitled ``Guidance for the Control of Volatile
Organic Compounds Emitted by Ten Selected Source Categories,'' the
EPA advised that the ``states are not required, at this time, to
develop regulations for the vegetable oil manufacturing industry.''
The EPA guidance has not been revised since the March 1980 guidance.
At this time, the EPA considers the vegetable oil CTG as only
guidance for states when they need to develop attainment plans in
nonattainment areas.
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Source-Specific RACT Determinations

    A source-specific RACT determination applies to sources that have
obtained a facility-specific emission limit or an alternative emission
limit, i.e., a variance. A case-by-case RACT analysis is required for
sources that are not defined by a specific source category covered by
an existing state regulation, that are requesting a variance, or that
are not addressed by a CTG. New Jersey's RACT regulations at N.J.A.C.
7:27 Subchapter 19.13 for NOX and at Subchapter 16.17 for
VOCs outline the process and conditions for granting a source-specific
RACT determination. Under the CAA, these individual source-specific
RACT determinations need to be submitted by the State as a SIP revision
for the EPA's approval. Therefore, New Jersey included Table II-3 in
its June 2015 RACT SIP submittal, a listing of VOC and NOX
source facilities that are subject to a RACT source-specific SIP
revision under the 8-hour ozone SIP and the corresponding emission
limits, control technology and applicable regulation governing the RACT
determinations. Consistent with the CAA, New Jersey submitted to the
EPA SIP revisions that included the source-specific RACT revisions
identified in Table II-3 of the 2015 RACT SIP submittal. The EPA has
approved some of those revisions and is performing its technical review
of the remainder of the submittals and will take separate rulemaking
actions for each of the source-specific determinations (see 40 CFR
52.1570 (d) ``EPA approved State source-specific requirements'').

New Jersey's Control and Prohibition of Air Pollution by Volatile
Organic Compounds

    New Jersey's December 14, 2017 submittal, which included amendments
to N.J.A.C. 7:27, Subchapter 16, addresses sources subject to four CTGs
for source categories represented in New Jersey: Industrial Cleaning
Solvents (ICS), CTG issued September 2006 (EPA 453/R-06-001); Paper,
Film, and Foil Coatings (PFFC), CTG issued September 2007 (EPA 453/R-
07-003); Miscellaneous Metal and Plastic Parts Coatings (MMPPC), CTG
issued September 2008 (EPA 453/R-08-003); and Fiberglass Boat
Manufacturing Materials (FBMM), CTG issued September 2008 (EPA-453/R-
08-004). The VOC emission limits adopted by New Jersey and set forth in
Subchapter 16 are as effective in regulating the source categories as
the EPA's CTG documents.

Industrial Cleaning Solvents (ICS)

    The EPA issued a CTG for industrial cleaning solvents in 2006 that
includes recommended control techniques. This category includes the
industrial cleaning solvents used by many industries. It includes a
variety of products that are used to remove contaminants such as
adhesives, inks, paint, dirt, soil, oil and grease. The recommended
measures for controlling VOC emissions from the use, storage and
disposal of industrial cleaning solvents include work practice
standards, limitations on VOC content of the cleaning materials, and an
optional alternative limit on composite vapor pressure of the cleaning
materials. They also include the use of add-on controls with an overall
emission reduction of at least 85 percent by mass.
    Based on the EPA CTG, New Jersey adopted new rules N.J.A.C. 7:27-
16.24 which specifies VOC content and vapor pressure limits for
solvents used in solvent cleaning activities conducted to remove
material through wiping, flushing, or spraying. Facilities can be
exempt by annual industrial cleaning solvent usage, based on a purchase
limit, and by source operation type. Compliance can be achieved by
meeting a maximum VOC content, a maximum VOC composite vapor pressure,
or a minimum control efficiency. Applicable facilities must implement
best management practices, which include keeping cleaning materials in
closed containers when not in use. Recordkeeping must be maintained
which demonstrates compliance. The EPA proposes to find that New
Jersey's adopted ICS rules are as effective in regulating the source
category as the EPA's CTG document.

Paper, Film, and Foil Coatings (PFFC)

    The EPA issued a 2007 CTG for paper, film and foil coatings.
Previous Federal actions that affected this source category included a
1977 CTG for controlling VOC emissions from surface coating of paper,
the 1983 new source performance standards (NSPS) for surface coating of
pressure sensitive tape and labels (a subset of this category), and a
2002 National Emissions Standards for Hazardous Air Pollutants (NESHAP)
for paper and other web coating. The EPA recommends applying the
control recommendations for coatings only to individual paper, film and
foil surface coating lines with the potential to emit at least 25 tons
per year (tpy) of VOC from coatings, prior to controls. The EPA
recommends an overall VOC control efficiency of 90 percent as RACT for
each coating line.
    New Jersey adopted amendments to N.J.A.C. 7:27-16.7, based on the
CTG, which requires paper, film, and foil coating operations to
implement best management practices if the actual VOC emissions exceed
15 pounds per day for all coating operations. The EPA proposes to find
that New Jersey's adopted PFFC rules are as effective in regulating the
source category as the EPA's CTG document.

Miscellaneous Metal and Plastic Parts Coatings (MMPPC)

    The EPA issued a 2008 CTG for miscellaneous metal and plastic parts
coatings. The CTG recommended three options for controlling VOC
emissions: (1) VOC content limits for each coating category based on
the use of low-VOC content coatings and specified application methods
to achieve good transfer efficiency; (2) equivalent VOC emission rate
limits based on the use of a combination of low-VOC coatings, specified
application methods, and add-on controls; or (3) an overall VOC control
efficiency of 90 percent for facilities that choose to use add-on
controls instead of low-VOC Content coatings and specified application
methods. In addition, the EPA recommended work practices to further
reduce VOC emissions from coatings as well as to minimize emissions
from cleaning materials used in miscellaneous metal product and plastic
part surface coating processes.
    New Jersey adopted new rules at N.J.A.C. 7:27-16.15, based on the
EPA CTG, which specify an applicability limit of 2.7 tons of actual VOC
emissions during any consecutive 12-month period from all miscellaneous
metal and plastic part coating operations, including related cleaning
activities. Compliance can be achieved by either meeting the maximum
allowable VOC content, achieving a minimum 90 percent overall control
efficiency, or meeting a minimum overall control efficiency which is
based upon the characteristics of the coating. Exemptions include
surface coating

operations that exclusively use powder coating and metal parts coatings
which must comply with a military specification that has been
formulated to meet a higher, less stringent VOC content. Applicable
facilities must implement best management practices, which include
keeping cleaning materials in closed containers when not in use.
Recordkeeping must be maintained which demonstrates compliance. The EPA
proposes to find that New Jersey's adopted MMPPC rules are as effective
in regulating the source category as the EPA's CTG document.\7\
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    \7\ New Jersey's rule includes a partial exemption for military
specification coatings from the new VOC limits for metal parts and
products, at N.J.A.C. 7:27-16.15(c)(1). N.J.A.C. 7:27-
16.15(c)(3)(vii) exempts any military specification coating that has
been formulated to meet a higher, less stringent VOC content limit.
Additional exceptions include less stringent VOC content limits for
extreme high gloss topcoat (craft) and other substrate antifoulant
coating than those recommended in the MMPPC CTG. This departure from
the MMPPC CTG recommendation is based on EPA guidance memo ``Control
Technique Guidelines for Miscellaneous Metal and Plastic Part
Coatings--Industry Request for Reconsideration''.
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Fiberglass Boat Manufacturing Materials (FBMM)

    The EPA issued a CTG in 2008 that provides control recommendations
for reducing VOC emissions from the use of gel coats, resins, and
materials used to clean application equipment in fiberglass boat
manufacturing operations. The CTG recommends the use of low-VOC content
(monomer and non-monomer VOC) resin and gel coats with specified
application methods. The CTG recommends the use of covers on mixing
containers to further reduce VOC emissions from gel coats and resins.
The CTG also recommends the use of low-VOC and low vapor pressure
cleaning materials. Because the CTG recommendations are based on the
2001 National Emission Standards for Hazardous Air Pollutants (NESHAP)
for boat manufacturing, those facilities that are major sources of HAP
are already complying with the 2001 NESHAP and have already adopted
these control measures. Because the 2001 NESHAP does not apply to area
sources, area source fiberglass boat manufacturing facilities are not
currently required to implement the measures provided in the NESHAP and
recommended in the CTG. There are boat manufacturing facilities in
ozone nonattainment areas that meet the applicability threshold in the
CTG and would provide VOC emission reductions when the CTG recommended
controls are applied. These control approaches are recommended for all
fiberglass boat manufacturing facilities where total actual VOC
emissions from all fiberglass boat manufacturing operations are equal
to or exceed 15 pounds per day.
    New Jersey adopted new rules at N.J.A.C. 7:27-16.14, based on the
EPA CTG, which establish an applicability limit of actual VOC
emissions, before add-on control, of 15 pounds per day from all
fiberglass boat manufacturing operations. Exemptions include production
of vessels that must meet military specifications and production of
parts of boats that do not involve the manufacture of fiberglass.
Compliance can be achieved by meeting a maximum monomer VOC content
standard, meeting a maximum monomer VOC mass emission rate, or
installation of a VOC control apparatus. Recordkeeping must be
maintained which demonstrates compliance. The EPA proposes to find that
New Jersey's adopted FBMM rules are as effective in regulating the
source category as the EPA's CTG document.

New Jersey's Control and Prohibition of Air Pollution by Oxides of
Nitrogen (Subchapter 19)

    New Jersey's December 14, 2017 submittal, which included amendments
to N.J.C.A. 7:27, Subchapter 19, establishes more stringent limits on
NOX emissions from existing simple cycle combustion turbines
combusting natural gas and compressing gaseous fuel at major
NOX facilities and stationary reciprocating engines
combusting natural gas and compressing gaseous fuel at major
NOX facilities. The EPA proposes to find that the NOx
emission limits adopted by New Jersey and set forth in their December
14, 2017 submittal are as effective in regulating the source categories
as the EPA's recommendations and guidance.

Stationary Natural Gas Compressor Turbines and Reciprocating Engines

    In New Jersey's December 14, 2017 submittal, New Jersey adopted
amendments to its rules for stationary gas turbines and engines. New
Jersey amended N.J.A.C. 7:27-19.5 by adopting new standards for
NOX emissions from existing simple cycle combustion turbines
combusting natural gas and compressing gaseous fuel at major
NOX facilities (compressor turbines). The standard provides,
at 7:27-19.5(l) that, beginning November 6, 2019, any simple cycle
combustion turbine combustion natural gas and compressing gaseous fuel
at a major NOX facility shall not emit more than 42 ppm by
volume, dry basis (ppmvd), of NOX corrected to 15 percent
oxygen. NJDEP amended N.J.A.C. 7:27-19.8 by adopting new standards for
NOX emissions from stationary reciprocating engines
combusting natural gas and compressing gaseous fuel at major
NOX facilities (compressor engines). The standard provides,
at 7:27-19.8 (g), that beginning November 6, 2019, the owner or
operator of a two-stroke lean burn engine capable of producing an
output of 200 brake horsepower (bhp) or more but less than 500 bhp,
combusting natural gas, and compressing gaseous fuel at a major
NOX facility shall cause it to emit no more than 3.0 grams
NOX/brake horsepower-hour (bhp-hr). The standard also
provides, at 7:27-19.8 (h), that beginning November 6, 2019, the owner
or operator of a four-stroke lean burn engine or four-stroke rich burn
engine capable of producing an output of 200 bhp or more but less than
500 bhp, combusting natural gas, and compressing gaseous fuel at a
major NOX facility shall cause it to emit no more than 2.0
grams NOX/bhp-hr.
    The EPA proposes to find that the adopted rules are consistent with
EPA guidance and address NOX RACT requirements by
establishing new limits on NOX emissions from existing
simple cycle combustion turbines combusting natural gas and compressing
gaseous fuel at major NOX facilities and stationary
reciprocating engines combusting natural gas and compressing gaseous
fuel at major NOX facilities.

Nitrogen Oxide (NOX) Reasonably Available Control Technology
(RACT) and Volatile Organic Compounds (VOC) RACT Certification

    In New Jersey's January 2, 2018 submittal, the State certified that
they have addressed RACT requirements for the 2008 75 ppb 8-hour ozone
NAAQS supported by their June 11, 2015 and December 14, 2017
submittals. EPA proposes to find that New Jersey has demonstrated that
it has met the NOX RACT and VOC RACT requirements. In some
instances, New Jersey has gone beyond RACT by adopting control measures
more stringent than the Federal rules and CTGs.
    New Jersey's VOC RACT rules cover source categories such as VOC
stationary storage tanks, gasoline transfer operations, VOC transfer
operations other than gasoline, marine tank vessel loading and
ballasting operations, open tanks and solvent cleaning operations,
surface coating and graphic arts operations, boilers, stationary
combustion turbines, stationary reciprocating engines, asphalt pavement
production plants, surface coating operations at mobile equipment
repair and finishing facilities, flares, other source operations, leak
detection and repair, application of cutback and emulsified asphalts,
petroleum solvent

dry cleaning operations, natural gas pipelines, and their
NOX RACT cover source categories such as boilers serving
electric generating units, stationary combustion turbines, industrial/
commercial/institutional boilers and other indirect heat exchangers,
stationary reciprocating engines, asphalt pavement production plants,
glass manufacturing furnaces, emergency generators, municipal solid
waste (MSW) incinerators and sewage sludge incinerators. These RACT
controls that have been promulgated in N.J.A.C. 7:27, have been
approved by the EPA as part of New Jersey's SIP most recently on August
3, 2010 \8\ and December 22, 2010.\9\
---------------------------------------------------------------------------

    \8\ 75 FR 45483.
    \9\ 75 FR 80340.
---------------------------------------------------------------------------

Enhanced Motor Vehicle Inspection and Maintenance (I/M) Program
Certification

    In New Jersey's January 2, 2018 submission, the State certifies
that its state-wide rules at N.J.A.C. 7:27-14 and 15, N.J.A.C. 7:27B-4
and B-5 and the Motor Vehicle Commission (MVC) rules at N.J.A.C. 13:20-
43, satisfy Federal requirements for an enhanced motor vehicle I/M
Program for the 2008 75 ppb 8-hour ozone NAAQS.
    Four categories of vehicles are subject to the enhanced I/M
program: light-duty gasoline-fueled vehicles, heavy-duty gasoline-
fueled vehicles, light-duty diesel-powered vehicles and heavy-duty
diesel-powered vehicles. Within each category are commercial and non-
commercial vehicles.
    EPA approved New Jersey's enhanced I/M program as meeting
applicable requirements of the CAA. 67 FR 2811. On April 3, 2009 and
September 9, 2016, New Jersey adopted amendments to its enhanced I/M
Program. The EPA approved these amendments into the SIP. 83 FR 21174
(May 9, 2018).

Emission Statement Program Certification

    In New Jersey's January 2018 submittal, the State certifies that
its state-wide rules at N.J.A.C. 7:27-21 satisfy Federal requirements
for an emission statement program for the 2008 75 ppb 8-hour ozone
NAAQS. The EPA most recently approved a revision to Subchapter 21 into
the SIP on August 3, 2010.\10\
---------------------------------------------------------------------------

    \10\ 75 FR 45483.
---------------------------------------------------------------------------

    The EPA stated in the 2008 ozone implementation rule that if an
area has a previously approved emission statement rule in force for the
1997 ozone NAAQS or the 1-hour ozone NAAQS that covers all portions of
the nonattainment area for the 2008 ozone NAAQS, such rule should be
sufficient for purposes of the emissions statement requirement for the
2008 ozone NAAQS.
    N.J.A.C. 7:27-21 requires the submission of annual emission
statements from major facilities. From these statements, the Department
develops reports of emissions of all criteria pollutants and submits
them to the EPA pursuant to the Federal Air Emission Reporting
Requirements (AERR) Rule for uploading to the EPA's National Emission
Inventory (NEI).

Federal Nonattainment New Source Review (NNSR) Program Certification

    In New Jersey's January 2018 submission, the State certifies that
its existing state-wide NNSR rules codified at N.J.A.C. 7:27-18, which
regulate the New Jersey portions of the Northern NJ-NY-CT and Southern
NJ-PA-DE-MD Nonattainment Areas for the 2008 75 ppb 8-hour ozone NAAQS
are at least as stringent as the Federal requirements at 40 CFR 51.165
for ozone and its precursors. See 80 FR 12264 (March 6, 2015). The EPA
most recently approved a revision to Subchapter 18 into the SIP on July
25, 1996.\11\ New Jersey's demonstration that its NNSR rules comply
with the ozone specific Federal provisions is provided in Table 8-2 of
its submission.
---------------------------------------------------------------------------

    \11\ 61 FR 38591.
---------------------------------------------------------------------------

IV. What is the EPA's evaluation of New Jersey's SIP submittals?

    New Jersey submitted a state-wide RACT assessment on June 11, 2015.
The RACT submission from New Jersey consists of: (1) A certification
that previously adopted RACT controls in New Jersey's SIP for various
source categories that were approved by the EPA under the 1-hour and
the 1997 8-hour ozone standards are based on the currently available
technically and economically feasible controls and that they continue
to represent RACT for the 2008 8-hour ozone standard for implementation
purposes; (2) New Jersey's 14 existing case-by-case source specific
limits, approved by the EPA for the 1997 8-hour ozone standard, which
New Jersey indicates continue to meet RACT for the 2008 8-hour ozone
standard; (3) a negative declaration that for certain CTGs and/or ACTs
there are no sources within New Jersey or that there are no sources
within New Jersey above the applicability threshold; and (4) a
commitment to revise and adopt, and submit as a SIP revision, a new or
more stringent regulation(s), incorporating four CTGs, if determined to
be more effective than current New Jersey requirements, and to consider
further limiting NOX emissions from natural gas compressor
engines and turbines. New Jersey's December 14, 2017 submittal
addresses the commitment for the four CTGs and two ACTs. New Jersey's
January 8, 2018 SIP revision submittal certified, among other things,
that the State's NOX RACT, VOC RACT, enhanced I/M program,
emission statement program and ozone specific provisions NNSR program
satisfy Federal regulations and are at least as stringent as the
Federal requirements.
    The EPA has reviewed New Jersey's RACT analysis including the
state-wide RACT analysis submitted on June 11, 2015, the December 14,
2017 revisions and the January 2, 2018 certification that the State has
adopted all applicable NOX RACT and VOC RACT. EPA proposes
to find that these submissions fully address the OTR RACT requirements,
the moderate RACT requirements for the NYMA and address the RACT
requirements consistent with sections 172(c)(1), 182(b)(2) and 182(f)
of the CAA, as interpreted by the EPA's regulations, guidance and
policies. Also, the EPA has reviewed portions of New Jersey's January
2, 2018 SIP submittal that certify the State has satisfied the
requirements for an enhanced motor vehicle I/M program, an emission
statement program and an ozone specific provisions NNSR program, and
the EPA is proposing to approve the State's certifications.

V. What action is the EPA proposing?

    The EPA has evaluated the information provided by New Jersey and is
proposing to approve New Jersey's state-wide RACT submittal dated June
11, 2015 and the State's December 14, 2017 SIP revision rule, which
include a declaration that the following source-specific categories
either do not exist in this State, or fall below significant emission
unit applicability thresholds in the CTGs: (1) Manufacture of Vegetable
Oils; (2) Manufacture of Pneumatic Rubber Tires; (3) Aerospace
Coatings; (4) Shipbuilding and Ship Repair Operations; (5) Metal
Furniture Coatings; (6) Large Appliance Coatings; and (7) Auto and
Light Duty Truck Original Equipment Manufacturer (OEM) Assembly
Coatings. The submittals also include amendments to N.J.A.C. 7:27,
Subchapter 16, ``Control and Prohibition of Air Pollution by Volatile
Organic Compounds,'' Subchapter 19, ``Control and Prohibition of Air
Pollution by Oxides of

Nitrogen,'' \12\ for purposes of satisfying the 2008 8-hour ozone
standard RACT requirements, NOX RACT for major sources, Non-
CTG VOC RACT for major sources, all VOC CTG RACT sources and relevant
OTR RACT requirements. The EPA is also proposing to approve portions of
New Jersey's January 2, 2018 SIP revision that certifies the State has
satisfied the requirements for an enhanced motor vehicle I/M program,
an emission statement program, an ozone specific provisions NNSR
program. As indicated in footnote 5, above, the EPA will address the
remainder of the January 2, 2018 SIP submittal in a separate
rulemaking.
---------------------------------------------------------------------------

    \12\ State Effective dates for both rules is November 6, 2017
(49 N.J.R. 3518).
---------------------------------------------------------------------------

    The EPA is soliciting public comments on the issues discussed in
this proposal. These comments will be considered before the EPA takes
final action. Interested parties may participate in the Federal
rulemaking procedure by submitting written comments as discussed in the
ADDRESSES section of this rulemaking.

VI. Incorporation by Reference

    In this rule, the EPA is proposing to include in a final EPA rule
regulatory text that includes incorporation by reference. In accordance
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by
reference of revisions to Title 7, Chapter 27: Subchapters 16 and 19 of
the New Jersey Administrative Code that implements New Jersey's RACT
regulations for VOCs and NOX, as described in section III of
this preamble.
    The EPA has made, and will continue to make, these materials
generally available through www.regulations.gov and at the EPA Region 2
Office (please contact the person identified in the FOR FURTHER
INFORMATION CONTACT section of this preamble for more information).

VII. 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) and 13563 (76 FR 382, January 21,
2011);
     is not an Executive Order 13771 (82 FR 9339, February 2,
2017) regulatory action because SIP approvals are exempt under
Executive Order 12866;
     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 rulemaking action, pertaining to New
Jersey's 2008 8-hour ozone RACT submission the is not approved to apply
on any Indian reservation land or in any other area where EPA or an
Indian tribe has demonstrated that a tribe has jurisdiction. In those
areas of Indian country, the rule does not have tribal implications and
will not impose substantial direct costs on tribal governments or
preempt tribal law as specified by Executive Order 13175 (65 FR 67249,
November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Nitrogen Dioxide, Intergovernmental Relations, Ozone,
Reporting and recordkeeping requirements, Volatile Organic Compounds.

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

    Dated: July 23, 2018.
Peter D. Lopez,
Regional Administrator, Region 2.
[FR Doc. 2018-16378 Filed 7-30-18; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 80, Number 195 (Thursday, October 8, 2015)]
[Notices]
[Pages 60944-60946]
[FR Doc No: 2015-25599]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76069; File No. SR-ICEEU-2015-016]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Clearance of New Natural Gas Futures Contracts

October 2, 2015.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 18, 2015, ICE Clear Europe Limited (``ICE Clear Europe'')
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 primarily prepared by ICE Clear Europe. ICE Clear
Europe filed the proposal pursuant to section 19(b)(3)(A) of the
Act,\3\ and Rules 19b-4(f)(4)(ii) \4\ thereunder, so that the proposal
was effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

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

    The principal purpose of the proposed rule change is to modify the
ICE Clear Europe Delivery Procedures with respect to the settlement of
certain European natural gas futures contracts that will be traded on
the ICE Endex market and cleared by ICE Clear Europe.

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

    In its filing with the Commission, ICE Clear Europe included
statements concerning the purpose of and basis for the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. ICE Clear Europe 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
    The purpose of the proposed rule change is to modify the ICE Clear
Europe Delivery Procedures in connection with the launch by the ICE
Endex market of new natural gas futures contracts that will be cleared
by ICE Clear Europe, namely the ICE Endex Italian PSV Natural Gas
Futures Contracts (the ``PSV Natural Gas Contracts''). ICE Clear Europe
does not otherwise propose to amend its clearing rules or procedures in
connection with the PSV Natural Gas Contracts.
    The amendments adopt a new part AA to the Delivery Procedures,
applicable to the PSV Natural Gas Contracts. The amendments provide,
among other matters, specifications for delivery of natural gas under a
PSV Natural Gas Contract, including relevant definitions and a detailed
delivery timetable for the contracts. The amendments also address
invoicing and payment for delivery. The amendments provide for
calculation by ICE Clear Europe of buyer's and seller's security to
cover delivery obligations and related liabilities, costs or charges,
as well as procedures to address failed deliveries. The revised
procedures also set out various documentation requirements for the
relevant parties. In addition, changes are made to paragraph 5.1 of the
Delivery Procedures to include the PSV Natural Gas Contracts in the
list of contracts for which parties may nominate transferors and
transferees to make and take delivery.
2. Statutory Basis
    ICE Clear Europe believes that the changes described herein are
consistent with the requirements of section 17A of the Act \5\ and the
regulations thereunder applicable to it, including the standards under
Rule 17Ad-22.\6\ Specifically, the amendments are consistent with the
prompt and accurate clearance of and settlement of securities
transactions and, to the extent applicable, derivative agreements,
contracts and transactions, the safeguarding of securities and funds in
the custody or control of ICE Clear Europe or for which it is
responsible and the protection of investors and the public interest,
within the meaning of section 17A(b)(3)(F) of the Act.\7\ The PSV
Natural Gas Contracts have similar characteristics to other ICE Endex
natural gas contracts currently cleared by ICE Clear Europe, and ICE
Clear Europe believes that its existing financial resources, risk
management, systems and operational arrangements are sufficient to
support clearing of such products (and to address physical delivery
under such contracts).
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1.
    \6\ 17 CFR 240.17Ad-22.
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Specifically, ICE Clear Europe believes that it will be able to
manage the risks associated with acceptance of the PSV Natural Gas
Contracts for clearing and physical delivery in such contracts. The PSV
Natural Gas Contracts present a similar risk profile to other ICE Endex
contracts currently cleared by ICE Clear Europe, and ICE Clear Europe
believes that its existing risk management and margin framework is
sufficient for purposes of risk management of the PSV Natural Gas
Contracts and related deliveries. Similarly, ICE Clear Europe has
established appropriate standards for determining the eligibility of
contracts submitted to the clearinghouse for clearing, and ICE Clear
Europe believes that its existing systems are appropriately scalable to
handle the PSV Natural Gas Contracts, which are generally similar from
an operational perspective to the other ICE Endex power contracts
currently cleared by ICE Clear Europe.
    For the reasons noted above, ICE Clear Europe believes that the
proposed rule change is consistent with the requirements of section 17A
of the Act and regulations thereunder applicable to it.

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

    ICE Clear Europe does not believe the proposed changes to the rules
would have any impact, or impose any burden, on competition not
necessary or appropriate in furtherance of the purpose of the Act. ICE
Clear Europe is adopting the amendments to the Delivery Procedures
principally in connection with the listing of new contracts for trading
on the ICE Endex market. ICE Clear Europe believes that such contracts
will provide additional opportunities for interested market
participants to engage in trading activity relating to the relevant
underlying gas markets. ICE Clear Europe does not believe the adoption
of related Delivery Procedures amendments would adversely affect access
to clearing for clearing members or their customers, or otherwise
adversely affect competition in clearing services.

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

    Written comments relating to the proposed changes to the rules have
not been solicited or received. ICE Clear Europe will notify the
Commission of any written comments received by ICE Clear Europe.

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

    The foregoing rule change has become effective upon filing pursuant
to section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(4)(ii) \9\
thereunder because it effects a change in an existing service of a
registered clearing agency that primarily affects the clearing
operations of the clearing agency with respect to products that are not
securities, including futures that are not security futures, swaps that
are not security-based swaps or mixed swaps, and forwards that are not
security forwards, and does not significantly affect any securities
clearing operations of the clearing agency or any rights or obligations
of the clearing agency with respect to securities clearing or persons
using such securities-clearing service. At any time within 60 days of
the filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-ICEEU-2015-016 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICEEU-2015-016. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filings will also be available
for inspection and copying at the principal office of ICE Clear Europe
and on ICE Clear Europe's Web site at https://www.theice.com/clear-europe/regulation#rule-filings.
    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-ICEEU-2015-016
and should be submitted on or before October 29, 2015.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Brent J. Fields,
Secretary.
[FR Doc. 2015-25599 Filed 10-7-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Page 42517]
[FR Doc No: 2016-15503]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2016-0478]

 Safety Zones; Duluth Fourth Fest, Duluth, MN

AGENCY: Coast Guard, DHS.

ACTION: Notice of enforcement of regulation.

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SUMMARY: The Coast Guard will enforce the Safety Zone for the Duluth
Fourth Fest fireworks display in Duluth, MN July 4, 2016. This action
is necessary to protect spectators during the Duluth Fourth Fest
Fireworks show. During the enforcement period, entry into, transiting,
or anchoring within the safety zone is prohibited unless authorized by
the Captain of the Port Duluth or his designated on-scene
representative.

DATES: The regulations in 33 CFR 165.943(b) will be enforced from 9:30
p.m. through 11:30 p.m. on July 4, 2016.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
notice of enforcement, call or email Lieutenant Junior Grade John Mack,
Waterways Management Division, Coast Guard; telephone<PHONE_NUMBER>,
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The Coast Guard will enforce a safety zone
for the annual Duluth Fourth Fest fireworks display in 33 CFR
165.943(a)(3) from 9:30 p.m. until 11:30 p.m. July 4, 2016. This safety
zone will include all U.S. navigable waters of the Duluth Harbor Basin
Northern Section within a 840 foot radius of position 46[deg]46'14''
N., 092[deg]06'16'' W. Entry into, transiting, or anchoring within the
safety zone is prohibited unless authorized by the Captain of the Port
Duluth or his designated on-scene representative. The Captain of the
Port's designated on-scene representative may be contacted via VHF
Channel 16.
    This notice of enforcement is issued under authority of 33 CFR
165.943 and 5 U.S.C. 552(a). In addition to this notice of enforcement
in the Federal Register, the Coast Guard will provide the maritime
community with advance notification of the enforcement of this safety
zone via Broadcast Notice to Mariners.

    Dated: June 24, 2016.
A.H. Moore, Jr.,
Commander, U.S. Coast Guard, Captain of the Port, Duluth.
[FR Doc. 2016-15503 Filed 6-29-16; 8:45 am]
 BILLING CODE 9110-04-P