DRAFT Page 1 12/ 01/ 2004 U. S. EPA BOARD OF SCIENTIFIC COUNSELORS Mercury Subcommittee MEETING AGENDA March 29, 2005 9: 00 am   11: 00 am EST CONFERENCE CALL ( 202) 275 0166/ 3430#

Tuesday March 29, 2005 9: 00 Mechanics of Call/ Roll Call Heather Drumm, DFO, Mercury Subcommittee 9: 15 Welcome & Review of Progress Dr. Herb Windom, Chair, Mercury Subcommittee 9: 30 Group Discussion Finalize Letter Report 10: 45 Public Comments 10: 55 Wrap up Dr. Herb Windom, Chair 11: 00 Adjourn


Shares which, given the volume of shares typically involved in such
securities transactions, otherwise may result in disproportionate fees
to market participants transaction these securities.
    The Executed Share Model also would not unfairly burden FINRA or
any of the exchanges. The Executed Share Model is designed to be
neutral as to the manner of execution and place of execution. The CAT
fees would be the same regardless of whether the transaction is
executed on an exchange or in the over-the-counter market. All
Participants are SROs that have the same regulatory responsibilities
under the Exchange Act. Their usage of CAT Data will be for the same
regulatory purposes. By treating each Participant the same, the CAT
fees would not become a competitive issue by and among the
Participants.
    The Executed Share Model also would not unfairly burden CBBs and
CBSs. The Operating Committee determined to charge CBBs and CBSs,
rather than Industry Members buyers and sellers more generally, because
such a fee collection model is currently used and well-known in the
securities markets. For example, SRO members regularly rely on their
clearing firms to assist with the payment of SRO fees. As a result, the
CAT fees could be paid by Industry Members without requiring
significant and potentially costly changes. In addition, this approach
would limit the number of Industry Members charged a CAT fee to a few
hundred, rather than a few thousand, thereby limiting the costs for
collecting the fees. Moreover, the CBBs and CBSs would be permitted,
but not required, to pass their CAT fees through to their customers,
who, in turn, could pass their CAT fees to their customers, until the
fee is imposed on the ultimate participant in the transaction. With
such a pass through, the CBBs and CBSs would not ultimately incur the
cost of all CAT fees related to the transactions that they clear.
f. Funding Principle: Section 11.2(f) of the CAT NMS Plan
    The Executed Share Model satisfies the funding principle set forth
in Section 11.2(f) of the CAT NMS Plan, which requires the Operating
Committee to seek ``to build financial stability to support the Company
as a going concern.'' The Operating Committee believes that the
Executed Share Model is structured to collect sufficient funds to pay
for the cost of the CAT going forward. In addition, the Executed Share
Model would collect an operational reserve for the CAT. This
operational reserve is intended to address potential shortfalls in
collected CAT fees versus actual CAT costs. Moreover, the Executed
Share Model includes a method for adjusting the calculation of the Fee
Rate during the year if there are changes in the projected total volume
of transactions in Eligible Securities or the CAT costs.
g. Section 11.1(c) of the CAT NMS Plan
    The Executed Share Model would satisfy the requirements in Section
11.1(c) of the CAT NMS Plan. Section 11.1(c) of the CAT NMS Plan states
that ``[t]o fund the development and implementation of the CAT, the
Company shall time the imposition and collection of all fees on
Participants and Industry Members in a manner reasonably related to the
timing when the Company expects to incur such development and
implementation costs.'' The CAT fees are designed to cover the CAT
costs for a relevant period. As such, on a going forward basis, they
are designed to be imposed close in time to when costs are incurred.
    Section 11.1(c) of the CAT NMS Plan also requires that ``[a]ny
surplus of the Company's resources over its expenses shall be treated
as an operational reserve to offset future fees.'' The Company would
operate on a ``break-even'' basis, with fees imposed to cover costs and
an appropriate reserve. Any surpluses would not be distributed to the
Participants as profits.\65\ In addition, as set forth in Article VIII
of the CAT NMS Plan, the Company ``intends to operate in a manner such
that it qualifies as a `business league' within the meaning of Section
501(c)(6) of the [Internal Revenue] Code.'' To qualify as a business
league, an organization must ``not [be] organized for profit and no
part of the net earnings of [the organization can] inure[ ] to the
benefit of any private shareholder or individual.'' \66\ As the SEC
stated when approving the CAT NMS Plan, ``the Commission believes that
the Company's application for Section 501(c)(6) business league status
addresses issues raised by commenters about the Plan's proposed
allocation of profit and loss by mitigating concerns that the Company's
earnings could be used to benefit individual Participants.'' \67\ The
Internal Revenue Service has determined that the Company is exempt from
federal income tax under Section 501(c)(6) of the Internal Revenue
Code.
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    \65\ Id.
    \66\ 26 U.S.C. 501(c)(6).
    \67\ CAT NMS Plan Approval Order at 84793.
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h. Equitable Allocation of Reasonable Fees
    The proposed CAT fees provide for the ``equitable allocation of
reasonable dues, fees, and other charges among its members and issuers
and other persons using its facilities necessary or appropriate in
furtherance of the purposes of this chapter,'' \68\ as required by the
Exchange Act. The Operating Committee believes that the CAT fees
equitably allocate CAT costs between and among Participants and
Industry Members, as discussed in detailed above. For the reasons
discussed above, the Operating Committee believes that the allocation
of one-third of the CAT costs each to Participants, CBBs and CBSs in
the Executed Share Model as well as the use of the total equivalent
share volume of transactions in Eligible Securities for allocating
costs provide for an equitable allocation of CAT costs among CAT
Reporters.
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    \68\ Sections 6(b)(4) and 15A(b)(5) of the Exchange Act.
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    The Operating Committee also believes that the Executed Share Model
would provide for reasonable fees. The transaction-based fees
contemplated by the Executed Share Model are a reasonable fee
structure. The SROs have a long history of charging transaction-based
fees, as transactions are the intended economic goal of the securities
markets. In addition to the transaction-based regulatory fees discussed
above (e.g., the SROs' Section 31-related fees, the FINRA TAF and the
ORF), the SROs charge a variety of other types of transaction fees to
fund their operations.\69\ Indeed, each of the SROs collect
transaction-based fees from their members.\70\ In each case, the
transaction-based fees charged by SROs have been subject to the fee
filing process and found to satisfy the requirements of the Exchange
Act. Not only is the type of fee reasonable, but the level of the fee
is reasonable as well. Although the exact Fee Rate to be paid for any
particular period will be determined at a later date, the illustrative
example provides a per-transaction Fee Rate that is not

excessive in comparison to existing transaction fee rates.
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    \69\ The SEC has noted that SRO transaction fees account for a
significant portion of SRO revenue. Securities Exchange Act Rel. No.
50700 (Nov. 18, 2004); 69 FR 71256, 71271 (Dec. 8, 2004).
    \70\ See, e.g., NYSE Price List; Nasdaq Price List.
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i. No Unfair Discrimination
    The Executed Share Model is ``not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers,'' \71\
as required by the Exchange Act. In addition, the Executed Share Model
does not unfairly discriminate between Industry Members and
Participants, among Industry Members or among Participants. Both
Participants and Industry Members would contribute to the cost of the
CAT; Participants alone would no longer be required to shoulder the
burden without the contribution of Industry Members. In addition, both
Participants and Industry Members would pay a fee based on the total
equivalent share volume of their transactions in Eligible Securities;
the type of metric would not vary based on whether the CAT Reporter is
an Industry Member or Participant.
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    \71\ Sections 6(b)(5) and 15A(b)(6) of the Exchange Act.
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    Furthermore, the Fee Rate would be the same regardless of the type
of venue a trade was executed on, or how the trade ultimately occurred
more generally (e.g., in a manner that generated more message traffic).
In addition, the Executed Share Model recognizes the different trading
characteristics of Listed Options and OTC Equity Securities as compared
to NMS Stocks. The Executed Share Model recognizes that Listed Option
trade in contracts rather than shares, and, therefore, counts the
executed equivalent shares for Listed Options accordingly. Similarly,
in recognition of the different trading characteristics of OTC Equity
Securities as compared to NMS Stocks, the Executed Share Model would
discount the share volume of OTC Equity Securities when calculating the
CAT fees. Furthermore, although the fee would be charged to the CBB and
the CBS, the CBB and CBS may pass through the fee to their clients.
Therefore, CBBs and CBSs would not need to bear all the CAT costs for
Industry Members. As a result, the Executed Share Model would not favor
or unfairly burden any one type of trading venue, product or product
type.
    With the elimination of tiers, fees for Industry Members and
Participants are directly related to their executed equivalent share
volume of their transactions. With tiers, the relationship between a
CAT Reporter's share volume and the CAT fee would not have been as
direct.
j. No Burden on Competition
    The Executed Share Model does ``not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of this chapter,'' \72\ as required by the Exchange Act. Moreover, the
Operating Committee believes that the proposed fee schedule fairly and
equitably allocates costs among CAT Reporters. The Executed Share Model
would operate in a manner similar to the funding model employed by the
SEC and the Participants related to Section 31 of the Exchange Act as
well as the FINRA TAF \73\ and the ORF rules, and these long-standing
fees to cover regulatory costs have been approved by the Commission as
satisfying the requirements under the Exchange Act, including not
imposing a burden on the competition that is not necessary or
appropriate under the Exchange Act. Furthermore, the Executed Share
Model does not impose a burden on competition for reasons set forth
above in Section A.8.e above.
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    \72\ Sections 6(b)(8) and 15A(b)(9) of the Exchange Act.
    \73\ Although the FINRA TAF is designed to cover a subset of the
costs of FINRA services (e.g., costs to FINRA of the supervision and
regulation of members, including performing examinations, financial
monitoring, and policy, rulemaking, interpretive, and enforcement
activities) rather than all of FINRA's costs like the CAT, the
transaction-based calculation of the FINRA TAF and the proposed CAT
fees are similar.
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B. Governing or Constituent Documents

    Not applicable.

C. Implementation of Amendment

    The Participants are filing this proposed amendment pursuant to
Rule 608(b)(1) of Regulation NMS under the Exchange Act.\74\
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    \74\ 17 CFR 242.608(b)(1).
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D. Development and Implementation Phases

    The Participants expect to implement the proposed Participant CAT
fees upon approval by the SEC, provided, however, that the Participant
CAT fees would not be collected unless the Industry Member CAT fees for
the same time period are effective at that time.

E. Analysis of Impact on Competition

    The Operating Committee does not believe that the proposed
amendment would result in any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Exchange
Act. The Operating Committee notes that the proposed amendment
implements provisions of the CAT NMS Plan approved by the Commission,
subject to proposed revisions to the CAT NMS Plan described above, and
is designed to assist the Participants in meeting their regulatory
obligations pursuant to the Plan. Because all Participants are subject
to the Executed Share Model set forth in the proposed amendment, this
is not a competitive filing that raises competition issues between and
among the Participants. Furthermore, for the reasons discussed above,
including in Sections A.8.e and A.8.j above, the Operating Committee
does not believe that the Executed Share Model would result in any
burden on competition that is not necessary or appropriate in
furtherance of the purpose of the Exchange Act.

F. Written Understanding or Agreements Relating to Interpretation of,
or Participation in, Plan

    Not applicable.

G. Approval by Plan Sponsors in Accordance With Plan

    Section 12.3 of the CAT NMS Plan states that, subject to certain
exceptions, the CAT NMS Plan may be amended from time to time only by a
written amendment, authorized by the affirmative vote of not less than
two-thirds of all of the Participants, that has been approved by the
SEC pursuant to Rule 608 of Regulation NMS under the Exchange Act or
has otherwise become effective under Rule 608 of Regulation NMS under
the Exchange Act. In addition, Section 4.3(a)(vi) of the Plan requires
the Operating Committee, by Majority Vote, to authorize action to
determine the appropriate funding-related policies, procedures and
practices-consistent with Article XI. The Operating Committee has
satisfied both of these requirements. In addition, the Executed Share
Model was discussed and voted on during a general session of the
Operating Committee.

H. Description of Operation of Facility Contemplated by the Proposed
Amendment

    Not applicable.

I. Terms and Conditions of Access

    Not applicable.

J. Method of Determination and Imposition, and Amount of, Fees and
Charges

    Section A of this letter describes in detail how the Participants
developed the Executed Share Model for the CAT.

K. Method and Frequency of Processor Evaluation

    Not applicable.

L. Dispute Resolution

    Section 11.5 of the CAT NMS Plan addresses the resolution of
disputes regarding CAT fees charged to Participants and Industry
Members. Specifically, Section 11.5 of the CAT NMS Plan states that

[d]isputes with respect to fees the Company charges Participants
pursuant to Article XI of the CAT NMS Plan shall be determined by
the Operating Committee or a Subcommittee designated by the
Operating Committee. Decisions by the Operating Committee or such
designated Subcommittee on such matters shall be binding on
Participants, without prejudice to the rights of any Participant to
seek redress from the SEC pursuant to Rule 608 of Regulation NMS
under the Exchange Act or in any other appropriate forum.

    In addition, the Participants adopted rules to establish the
procedures for resolving potential disputes related to CAT fees charged
to Industry Members.\75\
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    \75\ See Securities Exchange Act Rel. No. 81500 (Aug. 30, 2017),
82 FR 42143 (Sept. 6, 2017).
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III. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the amendment is
consistent with the Exchange 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 protected]. Please include
File Number 4-698 on the subject line.

Paper Comments

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

All submissions should refer to File Number 4-698. This file number
should be included on the subject line if email is used. To help the
Commission process and review your comments more efficiently, please
use only one method. The Commission will post all comments on the
Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed plan amendment that are filed
with the Commission, and all written communications relating to the
amendment between the Commission and any person, other than those that
may be withheld from the public in accordance with the provisions of 5
U.S.C. 552, will be available for website viewing and printing in the
Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the Participants' offices. All comments received will be
posted without change. Persons submitting comments are cautioned that
we do not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number 4-698
and should be submitted on or before June 22, 2022.
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    \76\ 17 CFR 200.30-3(a)(85).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\76\
J. Matthew DeLesDernier,
Assistant Secretary.

Exhibit A

Additions italicized; deletions [bracketed]
* * * * *

Article I

Definitions

* * * * *
    [``Execution Venue'' means a Participant or an alternative trading
system (``ATS'') (as defined in Rule 300 of Regulation ATS) that
operates pursuant to Rule 301 of Regulation ATS (excluding any such ATS
that does not execute orders).]
* * * * *

Article XI

Funding of the Company

    Section 11.1. Funding Authority.
    (a) On an annual basis the Operating Committee shall approve an
operating budget for the Company. The budget shall include the
projected costs of the Company, including the costs of developing and
operating the CAT for the upcoming year, and the sources of all
revenues to cover such costs, as well as the funding of any reserve
that the Operating Committee reasonably deems appropriate for prudent
operation of the Company.
    (b) Subject to Section 11.2, the Operating Committee shall have
discretion to establish funding for the Company, including: (i)
Establishing fees that the Participants shall pay; and (ii)
establishing fees for Industry Members that shall be implemented by
Participants. The Participants shall file with the SEC under Section
19(b) of the Exchange Act any such fees on Industry Members that the
Operating Committee approves, and such fees shall be labeled as
``Consolidated Audit Trail Funding Fees.''
    (c) To fund the development and implementation of the CAT, the
Company shall time the imposition and collection of all fees on
Participants and Industry Members in a manner reasonably related to the
timing when the Company expects to incur such development and
implementation costs. In determining fees on Participants and Industry
Members the Operating Committee shall take into account fees, costs and
expenses (including legal and consulting fees and expenses) incurred by
the Participants on behalf of the Company prior to the Effective Date
in connection with the creation and implementation of the CAT, and such
fees, costs and expenses shall be fairly and reasonably shared among
the Participants and Industry Members. Any surplus of the Company's
revenues over its expenses shall be treated as an operational reserve
to offset future fees.
    (d) Consistent with this Article XI, the Operating Committee shall
adopt policies, procedures, and practices regarding the budget and
budgeting process, [assignment of tiers,] resolution of disputes,
billing and collection of fees, and other related matters. [For the
avoidance of doubt, as part of its regular review of fees for the CAT,
the Operating Committee shall have the right to change the tier
assigned to any particular Person in accordance with fee schedules
previously filed with the Commission that are reasonable, equitable and
not unfairly discriminatory and subject to public notice and comment,
pursuant to this Article XI. Any such changes will be effective upon
reasonable notice to such Person.]
    Section 11.2. Funding Principles. In establishing the funding of
the Company, the Operating Committee shall seek:
    (a) To create transparent, predictable revenue streams for the
Company that are aligned with the anticipated costs to build, operate
and administer the CAT and the other costs of the Company;
    (b) to establish an allocation of the Company's related costs among
Participants and Industry Members that is consistent with the Exchange
Act, taking into account the timeline for implementation of the CAT
[and distinctions in the securities trading operations of Participants
and Industry Members and their relative impact upon Company resources
and operations];

    (c) to establish a [tiered] fee structure in which the fees charged
to [: (i)] Participants and [CAT Reporters that are Execution Venues,
including ATSs, are based upon the level of market share; (ii)]
Industry Members[' non-ATS activities] are based upon the executed
equivalent share volume of transactions in Eligible Securities [message
traffic; and (iii) the CAT Reporters with the most CAT-related activity
(measured by market share and/or message traffic, as applicable) are
generally comparable (where, for these comparability purposes, the
tiered fee structure takes into consideration affiliations between or
among CAT Reporters, whether Execution Venues and/or Industry
Members)].
    (d) to provide for ease of billing and other administrative
functions;
    (e) to avoid any disincentives such as placing an inappropriate
burden on competition and a reduction in market quality; and
    (f) to build financial stability to support the Company as a going
concern.
    Section 11.3. Recovery.
    (a) The Operating Committee will establish [fixed] fees to be
payable by Participants [Execution Venues] as follows [provided in this
Section 11.3(a)]:
    (i) Each Participant that is a national securities exchange will be
required to pay a fee for each transaction in Eligible Securities
executed on the exchange based on CAT Data. Each Participant that is a
national securities association will be required to pay a fee for each
transaction in Eligible Securities executed otherwise than on an
exchange based on CAT Data.
    (ii) The fee for each transaction in Eligible Securities will be
calculated by multiplying the number of executed equivalent shares in
the transaction by one-third and by the applicable fee rate for the
relevant period (``Fee Rate'').
    (iii) Participants will be required to pay a CAT fee with regard to
CAT costs not previously paid by the Participants (``Prospective CAT
Costs''). The Fee Rate for the CAT fees related to Prospective CAT
Costs will be calculated by dividing the budgeted CAT costs for the
relevant period (as determined by the Operating Committee) by the
projected total executed equivalent share volume of all transactions in
Eligible Securities for the relevant period based on CAT Data.
    (iv) Notwithstanding anything to contrary, Participants will not be
required to a pay a CAT fee related to CAT costs previously paid by the
Participants in a manner determined by the Operating Committee (``Past
CAT Costs'').
    [(i) Each Execution Venue that: (A) Executes transactions; or (B)
in the case of a national securities association, has trades reported
by its members to its trade reporting facility or facilities for
reporting transactions effected otherwise than on an exchange, in NMS
Stocks or OTC Equity Securities will pay a fixed fee depending on the
market share of that Execution Venue in NMS Stocks and OTC Equity
Securities, with the Operating Committee establishing at least two and
no more than five tiers of fixed fees, based on an Execution Venue's
NMS Stocks and OTC Equity Securities market share. For these purposes,
market share for Execution Venues that execute transactions will be
calculated by share volume, and market share for a national securities
association that has trades reported by its members to its trade
reporting facility or facilities for reporting transactions effected
otherwise than on an exchange in NMS Stocks or OTC Equity Securities
will be calculated based on share volume of trades reported, provided,
however, that the share volume reported to such national securities
association by an Execution Venue shall not be included in the
calculation of such national security association's market share.]
    [(ii) Each Execution Venue that executes transactions in Listed
Options will pay a fixed fee depending on the Listed Options market
share of that Execution Venue, with the Operating Committee
establishing at least two and no more than five tiers of fixed fees,
based on an Execution Venue's Listed Options market share. For these
purposes, market share will be calculated by contract volume.]
    (b) The Operating Committee will establish [fixed] fees to be
payable by Industry Members as follows:
    (i) Each Industry Member that is the clearing firm for the buyer in
a transaction in Eligible Securities (``Clearing Broker for the Buyer''
or ``CBB'') will be required to pay a fee for each such transaction in
Eligible Securities based on CAT Data. The CBB's fee for each
transaction in Eligible Securities will be calculated by multiplying
the number of executed equivalent shares in the transaction by one-
third and by the Fee Rate.
    (ii) Each Industry Member that is the clearing firm for the seller
in a transaction in Eligible Securities (``Clearing Broker for the
Seller'' or ``CBS'') will be required to pay a fee for each transaction
in Eligible Securities based on CAT Data. The CBS's fee for each
transaction in Eligible Securities will be calculated by multiplying
the number of executed equivalent shares in the transaction by one-
third and by the Fee Rate. [, based on the message traffic generated by
such Industry Member, with the Operating Committee establishing at
least five and no more than nine tiers of fixed fees, based on message
traffic. For the avoidance of doubt, the fixed fees payable by Industry
Members pursuant to this paragraph shall, in addition to any other
applicable message traffic, include message traffic generated by: (i)
an ATS that does not execute orders that is sponsored by such Industry
Member; and (ii) routing orders to and from any ATS sponsored by such
Industry Member.]
    (iii) CBBs and CBSs will be required to pay CAT fees related to
Past CAT Costs. The Fee Rate for the CAT fees related to Past CAT Costs
will be calculated by dividing the Past CAT Costs for the relevant
period (as determined by the Operating Committee) by the projected
total executed equivalent share volume of all transactions in Eligible
Securities for the relevant period based on CAT Data.
    (iv) CBBs and CBSs will be required to pay CAT fees related to
Prospective CAT Costs. The Fee Rate for the CAT fees related to
Prospective CAT Costs will be the same as set forth in paragraph
(a)(iv) above.
    (c) The Operating Committee may establish any other fees ancillary
to the operation of the CAT that it reasonably determines appropriate,
including fees: (i) for the late or inaccurate reporting of information
to the CAT; (ii) for correcting submitted information; and (iii) based
on access and use of the CAT for regulatory and oversight purposes (and
not including any reporting obligations).
    (d) The Company shall make publicly available a schedule of
effective fees and charges adopted pursuant to this Agreement as in
effect from time to time. The Operating Committee shall review such fee
schedule on at least an annual basis and shall make any changes to such
fee schedule that it deems appropriate. The Operating Committee is
authorized to review such fee schedule on a more regular basis, but
shall not make any changes on more than a semiannual basis unless,
pursuant to a Supermajority Vote, the Operating Committee concludes
that such change is necessary for the adequate funding of the Company.
* * * * *

Appendix B

Fee Schedule

Consolidated Audit Trail Funding Fees for Participants

(a) CAT Fee
    (1) Each Participant that is a national securities exchange shall
pay a fee for each transaction in Eligible Securities executed on the
exchange based on CAT Data, where the fee for each transaction will be
calculated by multiplying the number of executed equivalent shares in
the transaction by one-third and by the Fee Rate.
    (2) Each Participant that is a national securities association
shall pay a fee for each transaction in Eligible Securities executed
otherwise than on exchange based on CAT Data, where the fee for each
transaction will be calculated by multiplying the number of executed
equivalent shares in the transaction by one-third and by the Fee Rate.
(b) Fee Rate
    (1) The Operating Committee will calculate the Fee Rate at the
beginning of each year by dividing the budgeted CAT costs for the year
by the projected total executed equivalent share volume of all
transactions in Eligible Securities for the year. After setting the Fee
Rate at the beginning of each year, the Fee Rate may be adjusted once
during the year, if necessary, due to changes in the budgeted or actual
costs or projected or actual total executed equivalent share volume
during the year.
    (2) For purposes of calculating the fees, executed equivalent
shares in a transaction in Eligible Securities will be counted as
follows:
    (i) each executed share for a transaction in NMS Stocks will be
counted as one executed equivalent share;
    (ii) each executed contract for a transaction in Listed Options
will be counted based on the multiplier applicable to the specific
Listed Option (i.e., 100 executed equivalent shares or such other
applicable multiplier); and
    (iii) each executed share for a transaction in OTC Equity
Securities shall be counted as 0.01 executed equivalent share.
    (3) Budgeted CAT Costs. The budgeted CAT costs for the year shall
be comprised of all fees, costs and expenses budgeted to be incurred by
or for the Company in connection with the development, implementation
and operation of the CAT as set forth in the annual operating budget
approved by the Operating Committee pursuant to Section 11.1(a) of the
CAT NMS Plan, or as adjusted during the year by the Operating
Committee.
    (4) Projected Total Executed Equivalent Share Volume of
Transactions in Eligible Securities. The Operating Committee shall
determine the projected total executed equivalent share volume of all
transactions in Eligible Securities for each relevant period based on
the executed equivalent share volume of all transactions in Eligible
Securities for the prior six months.
    (c) Fee Payments/Collection. Each Participant shall pay the CAT fee
set forth in paragraph (a) to Consolidated Audit Trail, LLC in the
manner prescribed by Consolidated Audit Trail, LLC on a monthly basis
based on the Participant's transactions in the prior month.
* * * * *

Exhibit B

    The following sets forth an illustrative example of calculated
under the Executed Share Model based on the budgeted annual CAT Costs
for 2022 and the actual total executed equivalent share volume of
transactions in Eligible Securities in 2021. Note Exhibit B only
provides an illustrative example of how the Executed Share Model would
operate; the calculation of actual fees will differ from this example
in various ways. For example, the Participants have paid or will have
paid some or all of these costs up to the time of any SEC approval of
the Executed Share Model, and, as a result, Participants would not be
obligated to pay CAT fees related to 2022 CAT costs to the extent the
Participants have already paid such costs. In addition, the
illustrative example calculates the fee rate using the total executed
equivalent share transactions in Eligible Securities for 2021, rather
than the projected volume for 2022 based on the previous six months.
Furthermore, the CAT Reporters' monthly CAT fee is not based on the CAT
Reporters' transactions from the prior month; instead, it is calculated
by using each CAT Reporter's transactions in 2021 and dividing the
result by twelve.

CAT Fee Example for Illustrative Purposes Only

    Budgeted CAT Costs for 2022: $165,841,447.00.
    Total Executed Equivalent Share Volume of Transactions in Eligible
Securities for 2021: 3,963,697,612,395.
    Fee Rate: $0.0000418401 per executed equivalent share.

                                              Participant CAT Fees
----------------------------------------------------------------------------------------------------------------
                                                              Executed
                                                          equivalent share
                                                             volume of
                      Participant                         transactions in     Annual CAT fee    Monthly CAT fee
                                                              eligible             \77\
                                                           securities for
                                                                2021
----------------------------------------------------------------------------------------------------------------
1......................................................     46,400,250,500        $647,130.15         $53,927.51
2......................................................    204,330,644,337       2,849,737.21         237,478.10
3......................................................     40,241,451,971         561,235.26          46,769.61
4......................................................     37,837,901,411         527,713.68          43,976.14
5......................................................    239,781,829,838       3,344,164.09         278,680.34
6......................................................    149,570,501,700       2,086,014.19         173,834.52
7......................................................     36,318,789,800         506,527.09          42,210.59
8......................................................  1,361,484,729,008      18,988,212.50       1,582,351.04
9......................................................     64,139,149,375         894,529.16          74,544.10
10.....................................................     51,910,120,400         723,974.63          60,331.22
11.....................................................     55,784,034,310         778,002.92          64,833.58
12.....................................................     38,683,005,800         539,500.09          44,958.34
13.....................................................    531,025,057,170       7,406,044.60         617,170.38
14.....................................................     30,117,744,430         420,043.00          35,003.58
15.....................................................    135,340,379,281       1,887,551.01         157,295.92
16.....................................................     62,342,194,800         869,467.59          72,455.63
17.....................................................     39,349,215,400         548,791.51          45,732.63
18.....................................................     14,998,526,300         209,179.87          17,431.66

19.....................................................    277,173,161,059       3,865,649.59         322,137.47
20.....................................................    345,397,838,631       4,817,158.37         401,429.86
21.....................................................     90,011,105,331       1,255,357.45         104,613.12
22.....................................................     30,979,556,597         432,062.43          36,005.20
23.....................................................      5,507,340,998          76,809.21           6,400.77
24.....................................................          5,581,710              77.85               6.49
25.....................................................     74,967,502,238       1,045,548.90          87,129.08
----------------------------------------------------------------------------------------------------------------

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

    \77\ Under the Executed Share Model, Participants, CBBs and CBSs
will pay a monthly fee based on actual executed equivalent share
volume for the prior calendar month. The annual CAT fee is provided
here for informational purposes only.

                                          Industry Member CAT Fees \78\
----------------------------------------------------------------------------------------------------------------
                                                              Executed
                                                          equivalent share
                                                             volume of
                      CBBs & CBSs                         transactions in     Annual CAT fee    Monthly CAT fee
                                                              eligible
                                                           securities for
                                                                2021
----------------------------------------------------------------------------------------------------------------
1......................................................    859,841,671,740     $11,991,949.69        $999,329.14
2......................................................    778,256,091,356      10,854,100.47         904,508.37
3......................................................    740,559,440,045      10,328,356.76         860,696.40
4......................................................    536,740,052,223       7,485,749.89         623,812.49
5......................................................    467,988,393,675       6,526,891.47         543,907.62
6......................................................    380,556,173,472       5,307,500.95         442,291.75
7......................................................    350,408,314,337       4,887,037.94         407,253.16
8......................................................    316,955,750,074       4,420,485.23         368,373.77
9......................................................    312,687,014,481       4,360,950.47         363,412.54
10.....................................................    291,608,017,108       4,066,968.12         338,914.01
11.....................................................    285,766,444,467       3,985,497.49         332,124.79
12.....................................................    257,779,680,900       3,595,174.63         299,597.89
13.....................................................    220,269,528,700       3,072,031.97         256,002.66
14.....................................................    145,075,274,359       2,023,320.63         168,610.05
15.....................................................    141,826,246,034       1,978,007.42         164,833.95
16.....................................................    139,111,829,825       1,940,150.28         161,679.19
17.....................................................    126,903,666,123       1,769,886.75         147,490.56
18.....................................................    117,993,448,569       1,645,618.66         137,134.89
19.....................................................    109,530,158,500       1,527,583.73         127,298.64
20.....................................................    108,170,149,680       1,508,616.10         125,718.01
21.....................................................     94,948,734,900       1,324,221.06         110,351.76
22.....................................................     80,808,074,508       1,127,005.58          93,917.13
23.....................................................     77,877,312,671       1,086,131.14          90,510.93
24.....................................................     71,627,190,900         998,962.60          83,246.88
25.....................................................     65,979,744,166         920,199.38          76,683.28
26.....................................................     62,476,795,435         871,344.82          72,612.07
27.....................................................     59,962,856,615         836,283.68          69,690.31
28.....................................................     53,277,619,100         743,046.71          61,920.56
29.....................................................     48,251,539,722         672,949.52          56,079.13
30.....................................................     43,794,466,264         610,788.07          50,899.01
31.....................................................     40,818,110,970         569,277.75          47,439.81
32.....................................................     39,413,060,847         549,681.95          45,806.83
33.....................................................     25,642,997,831         357,635.07          29,802.92
34.....................................................     24,274,017,616         338,542.32          28,211.86
35.....................................................     24,265,127,300         338,418.33          28,201.53
36.....................................................     23,768,492,482         331,491.92          27,624.33
37.....................................................     20,802,708,100         290,129.03          24,177.42
38.....................................................     20,019,521,644         279,206.17          23,267.18
39.....................................................     18,035,978,054         251,542.29          20,961.86
40.....................................................     16,828,270,736         234,698.76          19,558.23
41.....................................................     16,627,104,316         231,893.16          19,324.43
42.....................................................     16,270,456,203         226,919.09          18,909.92
43.....................................................     15,560,896,419         217,023.08          18,085.26
44.....................................................     15,340,132,696         213,944.15          17,828.68
45.....................................................     14,357,387,825         200,238.11          16,686.51
46.....................................................     13,794,427,204         192,386.67          16,032.22

47.....................................................     10,844,249,411         151,241.44          12,603.45
48.....................................................     10,345,612,840         144,287.11          12,023.93
49.....................................................     10,047,142,100         140,124.43          11,677.04
50.....................................................      9,676,729,440         134,958.40          11,246.53
51.....................................................      9,525,189,150         132,844.91          11,070.41
52.....................................................      9,497,695,858         132,461.47          11,038.46
53.....................................................      9,141,959,858         127,500.13          10,625.01
54.....................................................      9,111,887,600         127,080.72          10,590.06
55.....................................................      8,246,296,500         115,008.58           9,584.05
56.....................................................      7,409,804,367         103,342.28           8,611.86
57.....................................................      5,943,333,522          82,889.86           6,907.49
58.....................................................      5,537,962,838          77,236.28           6,436.36
59.....................................................      4,969,306,436          69,305.40           5,775.45
60.....................................................      4,858,930,658          67,766.02           5,647.17
61.....................................................      4,724,287,600          65,888.20           5,490.68
62.....................................................      4,688,574,389          65,390.12           5,449.18
63.....................................................      4,619,665,921          64,429.07           5,369.09
64.....................................................      4,586,579,797          63,967.63           5,330.64
65.....................................................      4,552,355,173          63,490.31           5,290.86
66.....................................................      4,530,370,991          63,183.70           5,265.31
67.....................................................      4,432,887,822          61,824.14           5,152.01
68.....................................................      4,188,226,789          58,411.92           4,867.66
69.....................................................      4,095,928,162          57,124.66           4,760.39
70.....................................................      3,615,599,600          50,425.67           4,202.14
71.....................................................      3,411,736,434          47,582.45           3,965.20
72.....................................................      3,411,224,100          47,575.30           3,964.61
73.....................................................      3,290,953,800          45,897.93           3,824.83
74.....................................................      3,199,333,714          44,620.13           3,718.34
75.....................................................      2,924,604,582          40,788.57           3,399.05
76.....................................................      2,888,374,000          40,283.27           3,356.94
77.....................................................      2,839,512,902          39,601.82           3,300.15
78.....................................................      2,659,506,700          37,091.33           3,090.94
79.....................................................      2,537,489,086          35,389.59           2,949.13
80.....................................................      2,459,185,612          34,297.51           2,858.13
81.....................................................      2,395,884,300          33,414.67           2,784.56
82.....................................................      2,336,005,686          32,579.56           2,714.96
83.....................................................      2,328,536,077          32,475.38           2,706.28
84.....................................................      2,006,993,344          27,990.92           2,332.58
85.....................................................      1,991,341,100          27,772.63           2,314.39
86.....................................................      1,926,691,600          26,870.98           2,239.25
87.....................................................      1,818,491,446          25,361.95           2,113.50
88.....................................................      1,807,513,774          25,208.84           2,100.74
89.....................................................      1,798,384,897          25,081.53           2,090.13
90.....................................................      1,499,870,900          20,918.24           1,743.19
91.....................................................      1,407,921,581          19,635.85           1,636.32
92.....................................................      1,343,940,690          18,743.53           1,561.96
93.....................................................      1,292,476,485          18,025.78           1,502.15
94.....................................................      1,263,050,400          17,615.38           1,467.95
95.....................................................      1,259,148,848          17,560.97           1,463.41
96.....................................................      1,239,077,200          17,281.03           1,440.09
97.....................................................      1,229,508,300          17,147.58           1,428.96
98.....................................................      1,192,809,266          16,635.75           1,386.31
99.....................................................      1,161,692,310          16,201.77           1,350.15
100....................................................      1,103,718,859          15,393.23           1,282.77
101....................................................      1,036,854,477          14,460.69           1,205.06
102....................................................        903,767,212          12,604.57           1,050.38
103....................................................        764,853,800          10,667.18             888.93
104....................................................        749,409,514          10,451.79             870.98
105....................................................        736,464,500          10,271.25             855.94
106....................................................        579,536,030           8,082.61             673.55
107....................................................        574,150,273           8,007.50             667.29
108....................................................        554,402,371           7,732.08             644.34
109....................................................        528,767,825           7,374.56             614.55
110....................................................        475,219,998           6,627.75             552.31
111....................................................        439,220,400           6,125.67             510.47
112....................................................        403,544,995           5,628.12             469.01
113....................................................        389,096,923           5,426.62             452.22
114....................................................        352,562,888           4,917.09             409.76

115....................................................        324,569,237           4,526.67             377.22
116....................................................        287,942,268           4,015.84             334.65
117....................................................        279,648,356           3,900.17             325.01
118....................................................        268,773,558           3,748.50             312.38
119....................................................        242,088,969           3,376.34             281.36
120....................................................        240,735,871           3,357.47             279.79
121....................................................        227,696,800           3,175.62             264.63
122....................................................        223,889,862           3,122.52             260.21
123....................................................        219,207,411           3,057.22             254.77
124....................................................        215,960,600           3,011.94             250.99
125....................................................        208,506,846           2,907.98             242.33
126....................................................        177,727,500           2,478.71             206.56
127....................................................        175,224,523           2,443.80             203.65
128....................................................        156,286,900           2,179.69             181.64
129....................................................        150,735,418           2,102.26             175.19
130....................................................        148,742,902           2,074.47             172.87
131....................................................        119,952,427           1,672.94             139.41
132....................................................        118,614,304           1,654.28             137.86
133....................................................         95,597,569           1,333.27             111.11
134....................................................         85,976,961           1,199.09              99.92
135....................................................         81,558,800           1,137.48              94.79
136....................................................         73,755,556           1,028.65              85.72
137....................................................         73,265,165           1,021.81              85.15
138....................................................         70,050,100             976.97              81.41
139....................................................         57,611,957             803.50              66.96
140....................................................         50,604,392             705.76              58.81
141....................................................         42,751,230             596.24              49.69
142....................................................         41,893,367             584.27              48.69
143....................................................         36,371,376             507.26              42.27
144....................................................         34,981,349             487.87              40.66
145....................................................         34,223,462             477.30              39.78
146....................................................         32,885,122             458.64              38.22
147....................................................         32,396,791             451.83              37.65
148....................................................         28,510,532             397.63              33.14
149....................................................         23,936,450             333.83              27.82
150....................................................         23,569,357             328.71              27.39
151....................................................         20,131,196             280.76              23.40
152....................................................         19,520,773             272.25              22.69
153....................................................         14,373,735             200.47              16.71
154....................................................         14,322,926             199.76              16.65
155....................................................         12,213,708             170.34              14.20
156....................................................          6,548,894              91.34               7.61
157....................................................          6,017,900              83.93               6.99
158....................................................          3,678,840              51.31               4.28
159....................................................          3,035,249              42.33               3.53
160....................................................          2,036,500              28.40               2.37
161....................................................          1,670,000              23.29               1.94
162....................................................          1,498,709              20.90               1.74
163....................................................          1,106,266              15.43               1.29
164....................................................          1,085,833              15.14               1.26
165....................................................            656,400               9.15               0.76
166....................................................            456,577               6.37               0.53
167....................................................            355,000               4.95               0.41
168....................................................            205,844               2.87               0.24
169....................................................            189,206               2.64               0.22
170....................................................            100,000               1.39               0.12
171....................................................             78,367               1.09               0.09
172....................................................             50,000               0.70               0.06
173....................................................             49,658               0.69               0.06
174....................................................             19,500               0.27               0.02
175....................................................             10,000               0.14               0.01
176....................................................              4,200               0.06               0.00
177....................................................              2,200               0.03               0.00
178....................................................              1,379               0.02               0.00
179....................................................                300               0.00               0.00
180....................................................                225               0.00               0.00
181....................................................                125               0.00               0.00
182....................................................                 18               0.00               0.00

183....................................................                  3               0.00               0.00
----------------------------------------------------------------------------------------------------------------

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

    \78\ The Operating Committee recognizes that an Industry
Member's knowledge of its own fees in the illustrative example would
be helpful in analyzing the Executed Share Model. Accordingly, if a
CBB or CBS is interested in learning which anonymized CBB or CBS in
the illustrative example represents its volume and fees, the CBB or
CBS may contact the FINRA CAT Helpdesk by email at
[email protected]. Industry Members other than CBBs and CBSs will
not be charged a fee under the Executed Share Model; however, CBBs
and CBSs may choose to pass-through CAT fees to such Industry
Members. Therefore, if an Industry Member other than a CBB or CBS is
interested in learning its associated volume in the illustrative
example and potential fee (assuming the CBB or CBS passes the fee
through), the Industry Member may also contact the FINRA Helpdesk by
email at [email protected]. Accordingly, subject to verification of
the identity of the requesting party as an authorized representative
of the relevant Industry Member, the Helpdesk will provide the
authorized representative of the CBB or CBS with the number of the
applicable anonymized CBB or CBS in Exhibit B. or the authorized
representative of the Industry Member other than the CBB or CBS with
its associated volume and potential pass-through fee from the
illustrative example.

[FR Doc. 2022-11675 Filed 5-31-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 185 (Tuesday, September 28, 2021)]
[Rules and Regulations]
[Pages 53550-53552]
[FR Doc No: 2021-20794]

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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2019-0215; FRL-8999-02-R5]

Air Plan Approval; Michigan; Partial Approval and Partial
Disapproval for Infrastructure SIP Requirements for the 2015 Ozone
NAAQS

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is partially
approving and partially disapproving elements of a State Implementation
Plan (SIP) submission from Michigan regarding the infrastructure
requirements of section 110 of the Clean Air Act (CAA) for the 2015
ozone National Ambient Air Quality Standards (NAAQS). The
infrastructure requirements are designed to ensure that the structural
components of each state's air quality management program are adequate
to meet the state's responsibilities under the CAA. The disapproval
portion of this action does not begin a new Federal Implementation Plan
(FIP) clock, because the FIPs are already in place. EPA proposed to
approve this action on Friday, July 2, 2021 and received no adverse
comments.

DATES: This final rule is effective on October 28, 2021.

ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-R05-OAR-2019-0215. All documents in the docket are listed on
the www.regulations.gov website. Although listed in the index, some
information is not publicly available, i.e., Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute. Certain other material, such as copyrighted material, is
not placed on the internet and will be publicly available only in hard
copy form. Publicly available docket materials are available either
through www.regulations.gov or at the Environmental Protection Agency,
Region 5, Air and Radiation Division, 77 West Jackson Boulevard,
Chicago, Illinois 60604. This facility is open from 8:30 a.m. to 4:30
p.m., Monday through Friday, excluding Federal holidays and facility
closures due to COVID-19. We recommend that you telephone Olivia
Davidson, Environmental Scientist, at<PHONE_NUMBER> before visiting
the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Olivia Davidson, Environmental
Scientist, Attainment Planning and Maintenance Section, Air Programs
Branch (AR18J), Environmental Protection Agency, Region 5, 77 West
Jackson Boulevard, Chicago, Illinois 60604,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA.

I. Background Information

    On July 2, 2021, EPA proposed to approve most elements and
disapprove an element of a submission from the Michigan Department of
Environment, Great Lakes, and Energy (EGLE) certifying that its current
SIP is sufficient to meet the required infrastructure elements under
sections 110(a)(1) and (2) for the 2015 ozone NAAQS (86 FR 35247). An
explanation of the CAA requirements, a detailed analysis of the
revisions, and EPA's reasons for proposing approval were provided in
the notice of proposed rulemaking (NPRM) and will not be restated here.
The public comment period for this proposed rule ended on August 2,
2021.
    During the comment period, EPA received two comments on the
proposed rule. The first comment was in support of the action, and a
second comment was submitted by the New Jersey Department of
Environmental Protection (NJDEP) pertaining to the prong 4 visibility
requirements portion of which EPA is disapproving. EPA does not believe
the comment received from NJDEP pertains to this action. At the time of
submittal, EGLE referenced their five-year progress report from the
first planning period approved on June 1, 2018 (83 FR 25375) which
cites the regional haze FIP currently in place to show compliance with
the Regional Haze Program, approved April 12, 2016 (81 FR 21672). The
comment addressed an emission source affecting a Federal Class I area
in New Jersey and asked that EPA consider the source's contribution to
visibility degradation in future actions. Further, EPA received an
email identifying a small typographical error in the table at the end
of the proposed rulemaking identifying which elements we are approving,
disapproving, or not taking action on. The table incorrectly stated
that EPA was approving 110(a)(2)(D)(1)-(2), referred to as prong 1 and
prong 2, interstate transport with significant contribution to
nonattainment and interference with maintenance, respectively. The
table is corrected in this action to reflect taking no action on said
transport requirements. EPA will take action on those portions in a
separate rulemaking. All of the comments received are included in the
docket for this action.
    We do not consider these comments to be germane or relevant to this
action and therefore not adverse to this action. The comments lack the
required specificity to the proposed SIP revision and the relevant
requirements of CAA section 110. Moreover, none of the comments address
a specific regulation or provision in question, or recommend a
different action on the SIP submission from what EPA proposed.
Therefore, we are finalizing our action as proposed.

II. Final Action

    EPA is approving most elements and disapproving an element of a
March 8, 2019 submission from EGLE certifying that its current SIP is
sufficient to meet

the required infrastructure elements under sections 110(a)(1) and (2)
for the 2015 ozone NAAQS. The disapproved prong 4 does not begin a new
FIP clock, as FIPs are already in place in response to those
deficiencies.
    EPA's actions for the state's satisfaction of infrastructure SIP
requirements, by element of section 110(a)(2) are contained in the
table below.

------------------------------------------------------------------------
                         Element                            2015 ozone
------------------------------------------------------------------------
(A)--Emission limits and other control measures.........               A
(B)--Ambient air quality monitoring/data system.........               A
(C)1--Program for enforcement of control measures.......               A
(C)2--Minor NSR.........................................               A
(C)3--PSD...............................................               A
(D)1--I Prong 1: Interstate transport--significant                    NA
 contribution to nonattainment..........................
(D)2--I Prong 2: Interstate transport--interference with              NA
 maintenance............................................
(D)3--II Prong 3: Interstate transport--interference                   A
 with PSD...............................................
(D)4--II Prong 4: Interstate transport--interference                   D
 with visibility protection.............................
(D)5--Interstate and international pollution abatement..               A
(E)1--Adequate resources................................               A
(E)2--State board requirements..........................              NA
(F)--Stationary source monitoring system................               A
(G)--Emergency powers...................................               A
(H)--Future SIP revisions...............................               A
(I)--Nonattainment planning requirements of part D......               *
(J)1--Consultation with government officials............               A
(J)2--Public notification...............................               A
(J)3--PSD...............................................               A
(J)4--Visibility protection.............................               *
(K)--Air quality modeling/data..........................               A
(L)--Permitting fees....................................               A
(M)--Consultation/participation by affected local                      A
 entities...............................................
------------------------------------------------------------------------

    In the above table, the key is as follows:

A...............................  Approve.
D...............................  Disapprove.
NA..............................  No Action/Separate Rulemaking.
*...............................  Not germane to infrastructure SIPs.

III. 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 approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a significant regulatory action subject to review
by the Office of Management and Budget under Executive Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian
reservation land or in any other area where EPA or an Indian tribe has
demonstrated that a tribe has jurisdiction. In those areas of Indian
country, the 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).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by November 29, 2021. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed, and shall not postpone the effectiveness
of such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Ozone, Reporting and
recordkeeping requirements.

    Dated: September 15, 2021.
Cheryl Newton,
Acting Regional Administrator, Region 5.

    For the reasons stated in the preamble, EPA amends title 40 CFR
part 52 as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

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

0
2. In Sec.  52.1170, the table in paragraph (e) is amended by adding an
entry for ``Section 110(a)(2) infrastructure requirements for the 2015
ozone NAAQS'' immediately following the entry for ``Section 110(a)(2)
Infrastructure Requirements for the 2012 particulate matter
(PM2.5) NAAQS'' to read as follows:

Sec.  52.1170   Identification of plan.

* * * * *
    (e) * * *

                       EPA-Approved Michigan Nonregulatory and Quasi-Regulatory Provisions
----------------------------------------------------------------------------------------------------------------
                                        Applicable
    Name of nonregulatory SIP         geographic or          State       EPA approval date         Comments
            provision               nonattainment area  submittal date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                                 Infrastructure
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
Section 110(a)(2) infrastructure   Statewide..........        3/8/2019  9/28/2021, [INSERT   Approved CAA
 requirements for the 2015 ozone                                         Federal Register     elements:
 NAAQS.                                                                  CITATION].           110(a)(2)(A), (B),
                                                                                (C), (D)(i)(II)
                                                                                Prong 3, D(ii),
                                                                                (F), (G), (H),
                                                                                (J), (K), (L), and
                                                                                (M). Disapproved
                                                                                CAA element
                                                                                110(a)(2)(D)(i)(II
                                                                                ) Prong 4. No
                                                                                action on CAA
                                                                                element
                                                                                110(a)(2)(D)(i)(I)
                                                                                .

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2021-20794 Filed 9-27-21; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 138 (Wednesday, July 20, 2022)]
[Notices]
[Pages 43380-43383]
[FR Doc No: 2022-15412]

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

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2022-0031]

Agency Information Collection Activities; Submission to the
Office of Management and Budget for Review and Approval; Fatality
Analysis Reporting System and Non-Traffic Surveillance

AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).

ACTION: Notice and request for comments on an extension with
modification of a currently approved information collection.

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

SUMMARY: In compliance with the Paperwork Reduction Act of 1995 (PRA),
this notice announces that the Information Collection Request (ICR)
abstracted below will be submitted to the Office of Management and
Budget (OMB) for review and approval. The ICR describes the nature of
the information collection and its expected burden. This document
describes a currently approved collection of information for which
NHTSA intends to seek approval from OMB for extension on NHTSA's State
data reporting systems: Fatality Analysis Reporting System (FARS) and
Non-Traffic Surveillance (NTS). A Federal Register Notice with a 60-day
comment period soliciting comments on the following information
collection was published on April 4, 2022. Three supporting comments
were received.

DATES: Comments must be submitted on or before August 19, 2022.

ADDRESSES: Written comments and recommendations for the proposed
information collection, including suggestions for reducing burden,
should be submitted to the Office of Management and Budget at
www.reginfo.gov/public/do/PRAMain. To find this particular information
collection, select ``Currently under Review--Open for Public Comment''
or use the search function.

FOR FURTHER INFORMATION CONTACT: For additional information or access
to background documents, contact Barbara Rhea, State Data Reporting
Systems Division (NSA-120),<PHONE_NUMBER>, National Highway Traffic
Safety Administration, Room W53-304, U.S. Department of Transportation,
1200 New Jersey Avenue SE, Washington, DC 20590. Please identify the
relevant collection of information by referring to its OMB Control
Number.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.), a
Federal agency must receive approval from the Office of Management and
Budget (OMB) before it collects certain information from the public and
a person is not required to respond to a collection of information by a
Federal agency unless the collection displays a valid OMB control
number. In compliance with these requirements, this notice announces
that the following information collection request will be submitted to
OMB.
    A Federal Register notice with a 60-day comment period soliciting
public comments on the following information collection was published
on April 04, 2022 (87 FR 19573).
    Title: Fatality Analysis Reporting System and Non-Traffic
Surveillance.
    OMB Control Number: 2127-0006.
    Form Number: N/A.
    Type of Request: Request for extension of a currently approved
information collection.
    Type of Review Requested: Regular.
    Length of Approval Requested: Three years from date of approval.

Summary of the Collection of Information

    NHTSA is authorized by 49 U.S.C. 30182 and 23 U.S.C. 403 to collect
data on motor vehicle traffic crashes to aid in the identification of
issues and the development, implementation, and evaluation of motor
vehicle and highway safety countermeasures to reduce fatalities and the
property damage associated with motor vehicle crashes. Using this
authority, NHTSA established the Fatal Analysis Reporting System (FARS)
and the Non-Traffic Surveillance (NTS), which collect data on fatal
motor vehicle traffic crashes. Among other things, the information aids
in the establishment and

enforcement of motor vehicle regulations and highway safety programs.
    The FARS is in its forty-sixth year of operation and is a census of
all defined crashes involving fatalities. The FARS collects data from
all 50 States, the District of Columbia, and Puerto Rico. NHTSA
established cooperative agreements with the 50 States, the District of
Columbia and Puerto Rico to report a standard set of data on each fatal
crash within their jurisdictions. State employees extract and
transcribe information from existing State files including police crash
reports as well as driver license, vehicle registration, highway
department, and vital statistics files. This collected information
comprises a national database, Fatality Analysis Reporting System
(FARS), that is NHTSA's and many States' principal means of tracking
trends involving motor vehicle traffic fatalities and quantifying
problems or potential problems in highway safety.
    The Non-Traffic Surveillance (NTS) is a data collection effort for
collecting information about counts and details regarding fatalities
and injuries that occur in non-traffic crashes and non-crash incidents.
Non-traffic crashes are crashes that occur off a public trafficway
(e.g., private roads, parking lots, or driveways), and non-crash
incidents are incidents involving motor vehicles but without a crash
scenario such as, carbon monoxide poisoning and hypo/hyperthermia. NTS
non-traffic crash data are obtained through NHTSA's data collection
efforts for the Crash Report Sampling System (CRSS),\1\ the Crash
Investigation Sampling System (CISS),\2\ and FARS. NTS also includes
data outside of NHTSA's own data collections. NTS' non-crash injury
data is based upon emergency department records from a special study
conducted by the Consumer Product Safety Commission's National
Electronic Injury Surveillance System (NEISS) All Injury Program. NTS
non-crash fatality data is derived from death certificate information
from the Centers for Disease Control's National Vital Statistics
System.
---------------------------------------------------------------------------

    \1\ NHTSA's information collection for CRSS is covered by the
ICR with OMB Control No. 2127-0714.
    \2\ NHTSA's information collection for CISS is covered by the
ICR with OMB Control No. 2127-0706.
---------------------------------------------------------------------------

    Data is collected differently under each of NHTSA's three data
collection efforts that feed into NTS. The CRSS and CISS data
collection efforts obtain NTS applicable reports received from the
sample sites during their normal data collection efforts for CRISS and
CISS. The FARS data collection effort uncovers NTS applicable reports
received from the State during their normal data collection activities
for FARS. Therefore, the burden for NTS is included in each study's
calculation. This notice only seeks comment on the part of the NTS data
that comes from the FARS data collection effort.

Description of the Need for the Information and Proposed Use of the
Information

    NHTSA's mission is to save lives, prevent injuries, and reduce
economic losses resulting from motor vehicle crashes. To accomplish
this mission, NHTSA needs high-quality data on motor vehicle crashes to
identify primary factors related to the source of crashes and injury
outcomes. The FARS supports this mission by providing the agency with
vital information about all crashes involving fatalities that occur on
our nation's roadways. The FARS does this by collection of national
fatality information directly from existing State files and documents
and aggregates that information for research and analysis.
    FARS data is used extensively by all the NHTSA program and research
offices, other DOT modes, States, and local jurisdictions. The highway
research community uses the FARS data for trend analysis, problem
identification, and program evaluation. Congress uses the FARS data for
making decisions concerning safety programs. The FARS data are also
available upon request to anyone interested in highway safety.

60-Day Notice

    NHTSA published a 60-day notice in the Federal Register on April 4,
2022 (87 FR 19573). NHTSA received three supporting comments from the
National Association of Mutual Insurance Companies (NAMIC), the
Oklahoma Department of Transportation, and Safe Kids Worldwide. NAMIC
emphasizes that the proposed data collection is necessary and
appropriate and believes that the information surveyed will have
significant practical utility. Furthermore, NAMIC supports this
initiative to better understand and improve highway and auto safety, as
well as inform policy development and other decision making. The
Oklahoma DOT acknowledges the great role the FARS plays in compiling
information that helps it develop plans to reduce occurrences of
fatalities. The Oklahoma DOT also believes NHTSA's estimate of burden
to be valid, and believes that, as technology progresses, the burden
could be minimized while the system is enhanced. Safe Kids Worldwide
asserts the importance of the FARS/NTS programs to NHTSA's mission and
the broader safety community and that it is an incredibly robust and
valuable system for research purposes. Safe Kids Worldwide suggests
inclusion of more detailed information be available through the online
query and more detailed coding for train-related injuries.
    FARS is an on-going data acquisition system; reviews are conducted
yearly to determine whether the data acquired are responsive to the
total user population needs. Annual changes in the data collected in
FARS are minor in terms of operation and method of data acquisition.
The changes do not affect the reporting burden of the respondent. In
fact, the changes are based on a continuous data collection and quality
improvement process. The changes usually involve clarifying adjustments
to aid statisticians in conducting more precise analyses and to remove
potential ambiguity for the respondents. As part of this continual
review process, NHTSA will consider Safe Kids Worldwide's suggestion
regarding making more FARS data available through NHTSA's online query
tool. NHTSA will also separately consider Safe Kids Wordwide's
suggestion to include more detailed coding for train-related injuries
and fatalities at railroad crossings.

Burden to Respondents

    NHTSA has established cooperative agreements with the 50 States,
the District of Columbia, and Puerto Rico to report a standard set of
data on each fatal crash in their jurisdictions. State respondents
report based on the occurrence of crashes involving fatalities. When a
fatal crash occurs, State employees extract and transcribe information
from existing files and input the information into FARS, with the
frequency of reporting determined by the frequency of fatal crashes
occurring in the respondent's jurisdiction. NHTSA continues to
estimate, as stated in the 60-day notice, that there will be 52 data
collection sites in each of the next three years with a total annual
burden of 107,209 hours and $0 for the two information collections.
    Program: FARS and NTS.
    Affected Public: States, the District of Columbia, and Puerto Rico.
    Estimated Number of Respondents: 52.
    Frequency: On Occasion.
    Estimated Total Annual Burden Hours: 107,209 hours (106,909 hours +
300 hours).
    NHTSA estimates the total annual burden for the two information

collections, FARS and NTS, is 107,209 hours per year. The hours and
costs associated with the burden reflect the complexity of coding the
FARS cases, an increase in the number of fatal crashes across most
jurisdictions, and accounting for the processing of the non-traffic
fatalities. Furthermore, over the past two years, there has been an
increase in staff turnover at the State level, adding an increase in
administrative hours to provide for State field personnel turnover,
training, and coding assistance to continue operations.
    For both FARS and NTS, there are 52 respondents (50 States, the
District of Columbia, and Puerto Rico) reporting on approximately
34,817 fatal crash cases per year. Of these cases, 34,232 are reported
to FARS and approximately 585 are identified and reported as non-
traffic fatal crashes (NTS).
    The State employee (or employees depending on the number of fatal
crashes per year occurring in the jurisdiction) acquires and codes the
required information, as fatal crashes occur, in the FARS records-based
system. For FARS, although there is only one information collection,
NHTSA calculates the total burden using four burden categories: (1)
FARS Manual Protocol Case Entry, (2) overhead burden for FARS in States
without EDT, (3) FARS coding in States with EDT, and (4) FARS EDT
mapping maintenance.

FARS Manual Protocol Case Entry

    NHTSA estimates that there are currently 33 States providing crash
reports (including case materials) via manual protocol. For these
respondents, NHTSA estimates that it takes analysts approximately 4.25
hours to collect fatal crash information and code a FARS case entry in
the FARS data entry system. This estimate is based on information, over
a five-year period, of the average number of analysts, full- and part-
time, back-up analysts, FARS supervisors, and coding assistance
respondents needed to complete an annual FARS file. NHTSA estimates
that, on average, 16,205 cases are collected and coded annually using
this access method. Therefore, NHTSA estimates the total annual burden
associated with FARS Manual Protocol case entry to be approximately
68,871 hours annually (16,205 cases x 4.25 hours = 68,871 hours).

FARS Manual Protocol In-Kind Process Support

    In addition to the time for each crash entry, some respondents
using the FARS Manual Protocol are also expected to incur overhead
burden time. NHTSA estimates that 8 States provide overhead support and
that the total annual burden for this support is 2,000 hours, or an
average of 250 hours per respondent. This burden includes hours spent
by supervisors and State managers responding to and supporting FARS
operations that are not accounted for in the coding hours every year,
including supporting data acquisition and other associated tasks.

FARS EDT Mapping Maintenance

    NHTSA estimates that there are approximately 19 States already
participating in Electronic Data Transfer (EDT). For these respondents,
PAR data is automatically transferred from the State's centralized
crash database to NHTSA's CDAN system. The crash data is then
prepopulated in NHTSA's crash data systems, including FARS.
    NHTSA estimates the burden to maintain the protocol is estimated at
two hours per State (respondent) or a total of 38 hours per year (19
States x 2 hours). This represents time to monitor case quality and
timeliness, conduct quality control processes, and maintain
communications with NHTSA and its contractors to ensure accurate data
transfer. The specific task associated with this maintenance of effort
is referred to as ``mapping''. Upon becoming an EDT State, the
respondent participates in an initial mapping process. The process
requires an alignment between the State Specific Coding Instructions
and the FARS Coding and Validation guidance.\3\ During quality control
processes, which are conducted year-round, data anomalies may be
detected, at which time action must be taken to review and ultimately
correct the shifts in the data. This process, while managed by the
Office of Data Acquisition, requires concurrence from the respondent,
which is what the burden represents.
---------------------------------------------------------------------------

    \3\ The burden associated with this task is accounted for under
NHTSA ICR that covers EDT (OMB Control Number 2127-0753).
---------------------------------------------------------------------------

FARS EDT Manual Case Entry for Supporting Case Materials

    Participation in EDT reduces but does not eliminate the manual
entry of data into FARS. Although information from PARs is pre-
populated into the system, EDT State respondents must still collect and
enter supporting case materials, such as driver records, toxicology
reports, death certificate information, and coroner's/medical examiners
reports to complete a FARS case. NHTSA estimates that completing each
case entry in an EDT States takes 2 hours, which is slightly less than
half the time the process is estimated to take for non-EDT States. On
average, NHTSA estimates that 18,000 FARS cases will have pre-populated
data. Accordingly, NHTSA estimates the total burden associated with
completing the FARS case entries for these cases to be 36,000 hours
(18,000 cases x 2 hours).

Total Burden for FARS

    The collective and cumulative efforts of all 52 respondents results
in an estimated annual burden of 106,909 hours (68,871 hours + 2,000
hours + 38 hours + 36,000 hours). Table 1 provides a summary of the
burden associated with FARS.

                          Table 1--Burden Category Estimates and Total Burden for FARS
----------------------------------------------------------------------------------------------------------------
                                       Cases       Participating    Burden per       Hours per
         Burden category             processed      respondents      response       respondent     Total (hours)
----------------------------------------------------------------------------------------------------------------
FARS EDT (mapping maintenance)..              19              19             N/A               2              38
FARS EDT Manual Case Entry                18,000              19            2.00           1,895          36,000
 (supporting case materials)....
FARS Manual Protocol Case Entry           16,205              33            4.25           2,087          68,871
 Process (including supporting
 case materials)................
FARS Manual Protocol In-kind                   8               8             N/A             250           2,000
 Process Support................
                                 -------------------------------------------------------------------------------
    Total.......................          34,232              52            3.13        2,056.94         106,909
----------------------------------------------------------------------------------------------------------------

NTS Data Collection

    Non-traffic fatal crashes are collected by approximately 25 States
as part of the FARS data collection process. NHTSA estimates that it
takes twelve hours per respondent annually to account for NTS cases.
Therefore, NHTSA estimates that the total burden for NTS case
identification and coding is 300 hours annually (25 respondents x 12
hours).

Burden for FARS and NTS

    NHTSA estimates the total annual burden for the two information
collections, FARS and NTS, is 107,209 hours per year (106,909 hours +
300 hours). Table 2 provides a summary of the burdens for the two
information collections.

                                    Table 2--Summary of Burden Hour Estimates
----------------------------------------------------------------------------------------------------------------
                                                                    Burden per
     Information collection          Responses      Respondents      response        Hours per     Total burden
                                                                      (hours)       respondent        (hours)
----------------------------------------------------------------------------------------------------------------
FARS............................          34,232              52            3.13        2,056.94         106,909
NTS.............................             585              25             0.5              12             300
                                 -------------------------------------------------------------------------------
    Total.......................          34,817              52  ..............  ..............         107,209
----------------------------------------------------------------------------------------------------------------

    Estimated Total Annual Burden Cost All Programs: $0.
    NHTSA estimates that there are no costs to respondents other than
costs associated with burden hours. There are no capital, start-up, or
annual operation and maintenance costs involved in this collection of
information. The respondents would not incur any reporting costs from
the information collection beyond the opportunity or labor costs
associated with the burden hours. The respondents also would not incur
any recordkeeping burden or recordkeeping costs from the information
collection.
    Public Comments Invited: You are asked to comment on any aspects of
this information collection, including (a) whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information, including the
validity of the methodology and assumptions used; (c) ways to enhance
the quality, utility and clarity of the information to be collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including the use of appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology, e.g., permitting electronic submission of
responses.
    Authority: The Paperwork Reduction Act of 1995; 44 U.S.C. Chapter
35, as amended; 49 CFR 1.49; and DOT Order 1351.29.

Chou Lin Chen,
Associate Administrator, National Center for Statistics and Analysis.
[FR Doc. 2022-15412 Filed 7-19-22; 8:45 am]
BILLING CODE 4910-59-P