[Federal Register Volume 87, Number 169 (Thursday, September 1, 2022)]
[Notices]
[Pages 53813-53818]
[FR Doc No: 2022-18858]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95614; File No. SR-PEARL-2022-33]

Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
Pearl Equities Fee Schedule

August 26, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 17, 2022, MIAX PEARL, LLC (``MIAX Pearl'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') a proposed rule change as described in Items I, II, and
III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing a proposal to amend the fee schedule (the
``Fee Schedule'') applicable to MIAX Pearl Equities, an equities
trading facility of the Exchange.
    The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings/pearl at MIAX
Pearl's principal office, and at the Commission's Public Reference
Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to amend the Exchange's
Fee Schedule to (i) adopt a new volume based pricing incentive,
referred to as the ``Step-Up Added Liquidity Rebate,'' in which a
qualifying Equity Member \3\ (or ``Member'') will receive a rebate for
executions of certain orders in securities priced at or above $1.00 per
share that add displayed liquidity to the Exchange; (ii) increase the
rebate provided under Tier 2 of the Market Quality Tiers table; and
(iii) add an additional qualifying requirement to the Remove Volume
Tiers table. The Exchange originally filed this proposal on August 9,
2022, (SR-PEARL-2022-32). On August 18, 2022, the Exchange withdrew SR-
PEARL-2022-32 and resubmitted this proposal.
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    \3\ The term ``Equity Member'' is a Member authorized by the
Exchange to transact business on MIAX Pearl Equities. See Exchange
Rule 1901.
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    The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of 16 registered equities exchanges, as well as a
number of alternative trading systems and other off-exchange venues, to
which market participants may direct their order flow. Based on
publicly available information, no single registered equities exchange
currently has more than approximately 16% of the total market share of
executed volume of equities trading, and the Exchange currently
represents approximately 1% of the overall market share.\4\
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    \4\ See MIAX's ``The market at a glance, MTD Average'',
available at https://www.miaxoptions.com/, (last visited July 25,
2022).
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Adoption of Step-Up Added Liquidity Rebate
    The Exchange currently provides a standard rebate of $0.0029 per
share for executions of orders in securities priced at or above $1.00
per share that add displayed liquidity to the Exchange (such orders,
``Added Displayed Volume''). The Exchange also currently offers various
volume-based tiers and incentives through which a Member may receive an
enhanced rebate for executions of Added Displayed Volume by achieving
the specified criteria that corresponds to a particular tier/incentive.
    The Exchange now proposes to adopt a new volume-based incentive,
referred to by the Exchange as the Step-Up Added Liquidity Rebate, in
which the Exchange will provide a rebate of $0.0031 per share for
executions of certain orders that constitute Added

Displayed Volume for a Member that qualifies for the Step-Up Added
Liquidity Rebate by achieving a Step-Up ADAV \5\ as a % of TCV \6\ of
at least 0.03% over the baseline month of July 2022.\7\ For example,
assume a Member has an ADAV as a percent of TCV of 0.01% in July 2022.
That Member must achieve an ADAV as a percent of TCV \8\ equal to or
greater than 0.04% in a month in order to qualify for the Step-Up Added
Liquidity Rebate. As proposed, a Member that qualifies for the Step-Up
Added Liquidity Rebate will receive a rebate of $0.0031 per share for
each of such Member's executions of orders that constitute Added
Displayed Volume. The Exchange notes that the Step-Up Added Liquidity
Rebate will not apply to executions of orders in securities priced
below $1.00 per share or executions of orders that constitute added
non-displayed liquidity.
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    \5\ ADAV means average daily added volume calculated as the
number of shares added per day and ``ADV'' means average daily
volume calculated as the number of shares added or removed,
combined, per day. ADAV and ADV are calculated on a monthly basis.
The Exchange excludes from its calculation of ADAV and ADV shares
added or removed on any day that the Exchange's system experiences a
disruption that lasts for more than 60 minutes during regular
trading hours, on any day with a scheduled early market close, and
on the ``Russell Reconstitution Day'' (typically the last Friday in
June). Routed shares are not included in the ADAV or ADV
calculation. With prior notice to the Exchange, an Equity Member may
aggregate ADAV or ADV with other Equity Members that control, are
controlled by, or are under common control with such Equity Member
(as evidenced on such Equity Member's Form BD). See MIAX Pearl
Equities Exchange Fee Schedule, Definitions, on its public website
(available at https://www.miaxoptions.com/fees/pearl-equities).
    \6\ TCV means total consolidated volume calculated as the volume
in shares reported by all exchanges and reporting facilities to a
consolidated transaction reporting plan for the month for which the
fees apply. The Exchange excludes from its calculation of TCV volume
on any given day that the Exchange's system experiences a disruption
that lasts for more than 60 minutes during Regular Trading Hours, on
any day with a scheduled early market close, and on the ``Russell
Reconstitution Day'' (typically the last Friday in June). See MIAX
Pearl Equities Exchange Fee Schedule, Definitions, on its public
website (available at https://www.miaxoptions.com/fees/pearl-equities).
    \7\ The Exchange will use a baseline ADAV of 0.00% of TCV for
firms that become Members of the Exchange after July 2022 for the
purpose of the Step-Up Added Liquidity Rebate calculation.
    \8\ The Exchange proposes to define ``Step-Up ADAV as a % of
TCV'' on its Fee Schedule to mean, ``ADAV as a percent of TCV in the
relevant baseline month subtracted from the current month's ADAV as
a percent of TCV.''
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    The Exchange believes that the proposed Step-Up Added Liquidity
Rebate provides an incremental incentive for Members to strive for
higher ADAV on the Exchange (above their ADAV in the baseline month of
July 2022) to receive the proposed rebate for qualifying executions of
Added Displayed Volume. As such, the proposed Step-Up Added Liquidity
Rebate is designed to incentivize Members that provide liquidity on the
Exchange to increase their orders that add liquidity to the Exchange in
order to qualify for the $0.0031 per share rebate for qualifying
executions of Added Displayed Volume, which, in turn, the Exchange
believes would encourage the submission of additional Added Displayed
Volume to the Exchange, thereby promoting price discovery and
contributing to a deeper and more liquid market to the benefit of all
market participants and enhancing the attractiveness of the Exchange as
a trading venue. The Exchange notes that the proposed Step-Up Added
Liquidity Rebate is comparable to other volume-based incentives and
discounts, which have been adopted by other exchanges,\9\ including
pricing incentives that provide an enhanced rebate for firms that
achieve a specified Step-Up ADAV threshold.\10\
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    \9\ See e.g. the CBOE EDGX Exchange, Inc. (``Cboe EDGX'')
Equities Fee Schedule, Add/Remove Volume Tiers, on its public
website (available at https://www.cboe.com/us/equities/membership/fee_schedule/bzx/); and the MEMX LLC, (``MEMX'') Fee Schedule,
Liquidity Provision Tiers, on its public website (available at
https://info.memxtrading.com/fee-schedule/).
    \10\ See e.g. the CBOE BZX Exchange, Inc. (``Cboe BZX'')
Equities Fee Schedule, Step-Up Tiers, on its public website
(available at https://www.cboe.com/us/equities/membership/fee_schedule/bzx/); and the MEMX LLC, (``MEMX'') Fee Schedule, Step-
Up Additive Rebate, on its public website (available at https://info.memxtrading.com/fee-schedule/).
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Market Quality Tier 2 Rebate Increase
    The Exchange offers a tiered pricing structure, Market Quality
Tiers, designed to improve market quality on the Exchange in certain
specific securities, the ``Market Quality Securities'' or ``MQ
Securities,'' \11\ in the form of an enhanced rebate for executions of
displayed orders in securities priced at or above $1.00 per share that
add liquidity to the Exchange for Members that meet certain minimum
quoting requirements as defined in Tier 1 and Tier 2 of the Market
Quality Tiers table. The Exchange now proposes to increase the rebate
provided for executions that meet the Tier 2 criteria from $0.0034 to
$0.0035 per share (the Tier 1 rebate remains unchanged under this
proposal). The proposed change is for business and competitive reasons.
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    \11\ A list of the MQ Securities may be found on the Exchange's
public website (available at https://www.miaxoptions.com/fees/pearl-equities).
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Adopt New Requirement for Remove Volume Tiers
    Currently the Exchange offers a tiered pricing structure, Remove
Volume Tiers, applicable to fees charged for executions of Removed
Volume on the Exchange in securities priced at or above $1.00.
Specifically, the Exchange charges a fee of $0.0028 per share for
executions of Removed Volume for Members that qualify for Tier 1 by
achieving an ADV that is equal to or greater than 0.10% of the TCV; and
a fee of $0.0027 per share for Members that qualify for Tier 2 by
achieving an ADV that is equal to or greater than 0.15% of the TCV.
    The Exchange now proposes to adopt a new requirement that must be
satisfied by Members in addition to the aforementioned Tier 1 and Tier
2 criteria. Specifically, the Exchange proposes to require Members to
execute at least 1,000 shares of added liquidity during the month to be
eligible for the lower fees provided for by either Tier 1 or Tier 2 in
the Remove Volume Tiers table. The proposed change is designed to
incentivize Members to be active participants on the Exchange by both
adding and removing liquidity. Additionally, as a result of adopting
this requirement, the Exchange proposes to change the column heading
from ``Percentage Threshold'' to ``Required Criteria'' to more
accurately describe the information contained in that column of the
Remove Volume Tiers table.
Implementation
    The proposed changes are immediately effective.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \12\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \13\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among its Members and issuers and other persons using
its facilities. The Exchange also believes that the proposed rule
change is consistent with the objectives of Section 6(b)(5) \14\ that
the rules of an exchange be designed to prevent fraudulent and
manipulative acts and practices, and to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the

mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest, and,
particularly, is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(4).
    \14\ 15 U.S.C. 78f(b)(5).
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    The Exchange operates in a highly fragmented and competitive market
in which market participants can readily direct their order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of sixteen registered equities exchanges, and
there are a number of alternative trading systems and other off-
exchange venues, to which market participants may direct their order
flow. Based on publicly available information, no single registered
equities exchange currently has more than approximately 16% of the
total market share of executed volume of equities trading.\15\ Thus, in
such a low-concentrated and highly competitive market, no single
equities exchange possesses significant pricing power in the execution
of order flow, and the Exchange currently represents less than 1% of
the overall market share. The Commission and the courts have repeatedly
expressed their preference for competition over regulatory intervention
in determining prices, products, and services in the securities
markets. In Regulation NMS, the Commission highlighted the importance
of market forces in determining prices and SRO revenues and also
recognized that current regulation of the market system ``has been
remarkably successful in promoting market competition in its broader
forms that are most important to investors and listed companies.'' \16\
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    \15\ See supra note 4.
    \16\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37499 (June 29, 2005).
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    The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow or discontinue to reduce use of certain categories of
products, in response to new or different pricing structures being
introduced into the market. Accordingly, competitive forces constrain
the Exchange's transaction fees and rebates, and market participants
can readily trade on competing venues if they deem pricing levels at
those other venues to be more favorable. The Exchange believes the
proposal reflects a reasonable and competitive pricing structure
designed to incentivize market participants to direct additional orders
that add liquidity to the Exchange, which the Exchange believes would
deepen liquidity and promote market quality on the Exchange to the
benefit of all market participants.
Step-Up Added Liquidity Rebate
    As noted above, volume based incentives and discounts have been
widely adopted by exchanges (including the Exchange),\17\ and are
reasonable, equitable and not unfairly discriminatory because they are
open to all Members on an equal basis and provide additional benefits
that are reasonably related to the value to an exchange's market
quality associated with higher levels of market activity, such as
higher levels of liquidity provision and the introduction of higher
volumes of orders into the price and volume discovery process. The
Exchange believes that the proposed Step-Up Added Liquidity Rebate is
comparable to other incentives currently offered by other
exchanges,\18\ and is reasonable, equitable and not unfairly
discriminatory for these same reasons, as it provides Members with an
additional incentive to achieve a certain volume threshold on the
Exchange, is available to all Members and, as noted above, is designed
to encourage Members to increase their orders that add liquidity on the
Exchange in order to qualify for an enhanced rebate for qualifying
executions of Added Displayed Volume, which, in turn, the Exchange
believes would encourage the submission of additional Added Displayed
Volume to the Exchange, thereby promoting price discovery and
contributing to a deeper and more liquid market to the benefit of all
market participants.
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    \17\ See supra note 10.
    \18\ See MEMX LLC, (``MEMX'') Fee Schedule on its public website
(available at https://info.memxtrading.com/fee-schedule/) which
reflects an additive per share rebate of $0.0002 for executions of
added displayed volume for firms that qualify for the Step-Up
Additive Rebate'' by achieving certain specified volume thresholds
based upon Step-Up ADAV; see also Cboe BZX Exchange, Inc. (``Cboe
BZX'') Equities Fee Schedule on its public website (available at
https://www.cboe.com/us/equities/membership/fee_schedule/bzx/) which
reflects enhanced rebates for executions of added displayed volume
for firms that qualify for the ``Step-Up Tiers'' by achieving
certain specified volume thresholds, including thresholds based upon
Step-Up ADAV.
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    Cboe BZX provides a comparable volume based incentive, referred to
as Step-Up Tiers, where the exchange will provide a rebate of $0.0032
for displayed orders that add liquidity provided the required criteria
for the Tier is satisfied.\19\ Tier 1 criteria requires (1) MPID has a
Step-Up Add TCV \20\ from May 2019 >= 0.10% and (2) MPID has an ADV >=
0.50% of the TCV; Tier 2 criteria requires (1) Member has a Step-Up
ADAV from January 2022 >= 10,000,000 or Member has a Step-Up Add TCV
from January 2022 >= 0.10%; and (2) Member has an ADV >= 0.30% of the
TCV or Member has an ADV >= 35,000,000; and Tier 3 criteria requires
(1) MPID has a Step-Up ADAV \21\ from May 2021 >= 30,000,000 or MPID
has a Step-up Add TCV from May 2021 >= 0.30%; and (2) MPID has an ADV
>= 0.30% of the TCV or MPID has an ADV >= 35,000,000.
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    \19\ See Cboe BZX Fee Schedule, Step-Up Tiers, on its public
website (available at https://www.cboe.com/us/equities/membership/fee_schedule/bzx/).
    \20\ ``Step-Up Add TCV'' means ADAV as a percentage of TCV in
the relevant baseline month subtracted from current ADAV as a
percentage of TCV. See Cboe BZX Fee Schedule, Definitions, on its
public website (available at https://www.cboe.com/us/equities/membership/fee_schedule/bzx/).
    \21\ ``Step-Up ADAV'' means ADAV in the relevant baseline month
subtracted from current ADAV. See Cboe BZX Fee Schedule,
Definitions, on its public website (available at https://www.cboe.com/us/equities/membership/fee_schedule/bzx/).
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    The MEMX Exchange offers a similar volume-based incentive, referred
to as the Step-Up Additive Rebate, in which a qualifying Member will
receive an additive rebate for executions of certain orders in
securities priced at or above $1.00 per share that add displayed
liquidity to the Exchange. To qualify for the incentive MEMX members
must have (1) a Step-Up ADAV \22\ (excluding Retail Orders) from April
2022 >= 0.07% of the TCV; \23\ or (2) a Step-Up ADAV from July 2022 >=
0.05% of the TCV and an ADAV >= 0.30% of the TCV. \24\
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    \22\ MEMX defines Step-UP ADAV as the ADAV in the relevant
baseline month subtracted from the current ADAV. ADAV is defined as
the average daily added volume calculated as the number of shares
added per day. ADAV is calculated on a monthly basis. See MEMX Fee
Schedule, Definitions, available on its public website, (available
at https://info.memxtrading.com/fee-schedule/).
    \23\ MEMX defines TCV as the total consolidated volume reported
by all exchanges and trade reporting facilities to a consolidated
transaction reporting plan for the month for which the fees apply.
See MEMX Fee Schedule, Definitions, available on its public website,
(available at https://info.memxtrading.com/fee-schedule/).
    \24\ See MEMX LLC, (``MEMX'') Fee Schedule on its public website
(available at https://info.memxtrading.com/fee-schedule/); see also
Cboe BZX Exchange, Inc. (``Cboe BZX'') Equities Fee Schedule on its
public website (available at https://www.cboe.com/us/equities/membership/fee_schedule/bzx/) which reflects enhanced rebates for
executions of added displayed volume for firms that qualify for the
``Step-Up Tiers'' by achieving certain specified volume thresholds,
including thresholds based upon Step-Up ADAV.
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    The Exchange proposes to adopt a single Tier under its Step-Up
Added Liquidity Rebate table where Members that satisfy the required
criteria of

having a Step-Up ADAV as percentage of TCV from July 2022 >= 0.03% of
the TCV qualify for an enhanced rebate for of $0.0031 for Added
Displayed Volume in securities priced at or above $1.00. As such, the
Exchange believes the proposed rebate for qualifying executions of
Added Displayed Volume provided under the Step-Up Added Liquidity
Rebate for qualifying Members is comparable to other exchanges \25\ and
is reasonably related to the market quality benefits that such
incentive is designed to promote.
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    \25\ See supra note 18.
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    The Exchange notes that the proposed Step-Up Added Liquidity Rebate
will not adversely impact any Member's ability to qualify for reduced
fees or enhanced rebates offered under other pricing tiers/incentives
on the Exchange. Should a Member not meet the required criteria, the
Member will merely not receive the corresponding rebate.
Market Quality Tier 2 Rebate Increase
    The Exchange believes the proposed increased rebate for executions
of displayed orders in securities priced at or above $1.00 per share
that add liquidity to the Exchange for Members that meet the Tier 2
criteria of the Market Quality Tiers table is reasonable, equitable,
and consistent with the Act because it is designed to incentivize
Members to improve the market quality by quoting at the NBBO for a
significant portion of each day in a large number of securities
generally, and in a targeted group of securities specifically (the MQ
Securities), thereby benefitting the Exchange and other investors by
providing improved trading conditions for all market participants
through narrower bid-ask spreads and increasing the depth of liquidity
available the NBBO in a broad base of securities, including the MQ
Securities. The Exchange further believes the proposed increased rebate
is reasonable and appropriate because it is comparable to, and
competitive with, the rebate provided by at least one other exchange
with a similar incentive program.\26\ The Exchange further believes
that this fee is equitably allocated and not unfairly discriminatory
because it applies equally to all Members and is designed to facilitate
increased activity on the Exchange to the benefit of all Members by
providing more trading opportunities and promoting price discovery.
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    \26\ See e.g., MEMX Fee Schedule on its public website,
(available at https://info.memxtrading.com/fee-schedule/), which
provides for a rebate of $0.0033 per share in Tier 1 under MEMX's
Displayed Liquidity Incentive (DLI) Tiers for executions of
liquidity providing displayed orders in securities priced at or
above $1.00 per share for members that have an NBBO Time of at least
25% in an average of at least 1,000 securities per trading day
during the month, and a rebate of $0.0029 per share in Tier 2 for
executions of liquidity providing displayed orders in securities
priced at or above $1.00 per share for members that have an NBBO
Time of at least 25% in an average of at least 400 securities per
trading day during the month.
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    Accordingly, the Exchange believes that it is consistent with an
equitable allocation of fees and is not unfairly discriminatory to
increase the rebate provided under Tier 2 of the Market Quality Tiers
table for executions of displayed liquidity in recognition of the
benefits to the Exchange and market participants, particularly as the
magnitude of the increase is not unreasonably high, and is reasonably
related to enhanced market quality.
Adopt New Requirement for Remove Volume
    The Exchange believes its proposal to adopt an additional
requirement for Members to qualify for either Tier 1 or Tier 2 pricing
under the Remove Volume Tiers is reasonable, equitable and not unfairly
discriminatory because it is equally applicable to all Members. The
Exchange believes its proposed requirement is comparable to incentives
offered by at least one other exchange, and is reasonable, equitable
and not unfairly discriminatory as it provides Members with an
additional incentive to submit orders to the Exchange that add
liquidity in order to qualify for the pricing provided for in Tier 1
and Tier 2 of the Remove Volume Tiers table. MEMX charges a fee of
$0.0030 for removed volume from the MEMX Book.\27\ However, MEMX
members may qualify for a discounted fee of $0.0029 if the member has
(1) an ADV >= 0.45% of the TCV and an ADAV >= 0.20% of the TCV; or (2)
an ADV >= 1.00% of the TCV.\28\
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    \27\ See MEMX Fee Schedule, Transaction Fees, on its public
website (available at https://info.memxtrading.com/fee-schedule/).
    \28\ See MEMX Fee Schedule, Liquidity Removal Tier, on its
public website, (available at https://info.memxtrading.com/fee-schedule/).
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    The Exchange believes that the additional liquidity requirement is
reasonably related to the market quality benefits that such incentive
is designed to promote and that its Remove Volume Tiers incentive is
comparable to that of at least one other exchange.\29\ The proposed
change is designed to incentivize Members to be active participants on
the Exchange by both adding and removing liquidity.
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    \29\ See id.
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    For the reasons discussed above, the Exchange submits that the
proposal satisfies the requirements of Sections 6(b)(4) and 6(b)(5) of
the Act \30\ in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its Members and other
persons using its facilities and is not designed to unfairly
discriminate between customers, issuers, brokers, or dealers. As
described more fully below in the Exchange's statement regarding the
burden on competition, the Exchange believes that its transaction
pricing is subject to significant competitive forces, and that the
proposed fees and rebates described herein are appropriate to address
such forces.
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    \30\ 15 U.S.C. 78f(b)(4) and (5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed change will impose
any burden on competition not necessary or appropriate in furtherance
of the purposes of the Act. The proposal is intended to incentivize
market participants to direct additional orders that add liquidity to
the Exchange, thereby deepening liquidity and promoting market quality
on the Exchange to the benefit of all market participants. As a result,
the Exchange believes the proposal would enhance its competitiveness as
a market that attracts actionable orders, thereby making it a more
desirable destination venue for its customers. Additionally, the
Exchange's proposal to amend the column heading on the Remove Volume
Tiers is non-substantive and is intended to accurately describe the
information contained in that specific column.
Intramarket Competition
    The Exchange does not believe that the proposal will impose any
burden on intramarket competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes its
proposal would incentivize Members to submit additional orders that add
liquidity to the Exchange, thereby contributing to a deeper and more
liquid market and promoting price discovery and market quality on the
Exchange to the benefit of all market participants and enhancing the
attractiveness of the Exchange as a trading venue, which the Exchange
believes, in turn, would continue to encourage market participants to
direct additional order flow to the Exchange. Greater liquidity
benefits all Members by providing more trading opportunities and
encourages Members to send additional orders to the Exchange, thereby
contributing to robust levels of liquidity, which benefits all market

participants. As described above, the opportunity to qualify for the
proposed new Step-Up Added Liquidity Rebate, and thus receive the
proposed rebate for qualifying executions of Added Displayed Volume,
would be available to all Members that meet the associated volume
requirement, and the Exchange believes the proposed rebate provided
under such incentive is reasonably related to the enhanced market
quality that it is designed to promote. The Exchange's proposal to
increase the Tier 2 incentive provided under the Market Quality Tiers
table and its proposal to add an additional requirement to the Remove
Volume Tiers both serve to incentivize Members to provide additional
liquidity to the Exchange, thereby contributing to a deeper and more
liquid market and promoting price discovery and market quality on the
Exchange to the benefit of all market participants. As such the
Exchange does not believe the proposed changes would impose any burden
on intramarket competition that is not necessary or appropriate in
furtherance of the purpose of the Act.
Intermarket Competition
    The Exchange believes its proposal will benefit competition, and
the Exchange notes that it operates in a highly competitive market.
Members have numerous alternative venues they may participate on and
direct their order flow to, including fifteen other equities exchanges
and numerous alternative trading systems and other off-exchange venues.
As noted above, no single registered equities exchange currently has
more than 16% of the total market share of executed volume of equities
trading.\31\ Thus, in such a low-concentrated and highly competitive
market, no single equities exchange possesses significant pricing power
in the execution of order flow. Moreover, the Exchange believes that
the ever-shifting market share among the exchanges from month to month
demonstrates that market participants can shift order flow in response
to new or different pricing structures being introduced to the market.
Accordingly, competitive forces constrain the Exchange's transaction
fees and rebates generally, including with respect to executions of
Removed Volume, and market participants can readily choose to send
their orders to other exchanges and off-exchange venues if they deem
fee levels at those other venues to be more favorable.
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    \31\ See supra note 4.
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    As described above, the proposed changes represent a competitive
proposal through which the Exchange is seeking to encourage additional
order flow to the Exchange through a volume-based incentive that is
comparable to volume-based incentives adopted by other exchanges.\32\
The proposed change to increase the rebate provided for in Tier 2 of
the Market Quality Tiers also serves to encourage additional order flow
to the Exchange.
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    \32\ See supra note 18.
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    Accordingly, the Exchange believes that its proposal would not
burden, but rather promote, intermarket competition by enabling it to
better compete with other exchanges that offer similar pricing
incentives to market participants that achieve certain volume criteria
and thresholds.
    Additionally, the Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. Specifically,
in Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \33\ The fact
that this market is competitive has also long been recognized by the
courts. In NetCoalition v. Securities and Exchange Commission, the D.C.
circuit stated: ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their routing agents, have a wide range of choices of where to
route orders for execution'; [and] `no exchange can afford to take its
market share percentages for granted' because `no exchange possess a
monopoly, regulatory or otherwise, in the execution of order flow from
broker dealers' . . .''.\34\ Accordingly, the Exchange does not believe
its proposed pricing changes impose any burden on competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \33\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
    \34\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSE-2006-21)).
---------------------------------------------------------------------------

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\35\ and Rule 19b-4(f)(2) \36\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \35\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \36\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-PEARL-2022-33 on the subject line.
Paper Comments
     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

    All submissions should refer to File Number SR-PEARL-2022-33. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public

Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
PEARL-2022-33 and should be submitted on or before September 22, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
---------------------------------------------------------------------------

    \37\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-18858 Filed 8-31-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 166 (Wednesday, August 27, 2014)]
[Proposed Rules]
[Pages 51132-51134]
[FR Doc No: 2014-19990]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2014-0365]
RIN 1625-AA09

Drawbridge Operation Regulation; Illinois Waterway, Joliet, IL

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Coast Guard proposes to modify the operating regulations
for six drawbridges, located between river mile 285.8 and river mile
288.7, across the Illinois Waterway, at Joliet, Illinois. This rule
proposes to consolidate the current operating regulation, which
includes five on-site bridge tender control stations, into one
centralized control point for all five drawbridges. This rule also
proposes to add a sixth drawbridge that will also operate under the
centralized control point. This proposed action is intended to improve
navigational safety and operational efficiency in the Joliet area.

DATES: Comments and related material must reach the Coast Guard on or
before October 27, 2014.

ADDRESSES: You may submit comments identified by docket number USCG-
2014-0365 using any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail or delivery: Docket Management Facility (M-30), U.S.
Department of Transportation, West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., Washington, DC 20590-0001. Deliveries
accepted between 9 a.m. and 5 p.m., Monday through Friday, except
federal holidays. The telephone number is<PHONE_NUMBER>.
    See the ``Public Participation and Request for Comments'' portion
of the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments. To avoid duplication, please use only one of these
three methods.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, call or email Mr. Eric Washburn, Bridge Administrator, Western
Rivers,<PHONE_NUMBER>, email<EMAIL_ADDRESS>If you have
questions on viewing or submitting material to the docket, call Cheryl
Collins, Program Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Acronyms

CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
Sec.  Section Symbol
U.S.C. United States Code

A. Public Participation and Request for Comments

    We encourage you to participate in this proposed rulemaking by
submitting comments and related materials. All comments received will
be posted, without change to http://www.regulations.gov and will
include any personal information you have provided.

1. Submitting comments

    If you submit a comment, please include the docket number for this
rulemaking (USCG-2014-0365), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
online (http://www.regulations.gov), or by fax, mail or hand delivery,
but please use only one of these means. If you submit a comment online
via http://www.regulations.gov, it will be considered received by the
Coast Guard when you successfully transmit the comment. If you fax,
hand deliver, or mail your comment, it will be considered as having
been received by the Coast Guard when it is received at the Docket
Management Facility. We recommend that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so that we can contact you if we have questions regarding
your submission.
    To submit your comment online, go to http://www.regulations.gov,
type in the docket number [USCG-2014-0365] in the ``SEARCH'' box and
click ``SEARCH''. Click on ``Submit a Comment'' on the line associated
with this rulemaking. If you submit your comments by mail or hand
delivery, submit them in an unbound format, no larger than 8\1/2\ by 11
inches, suitable for copying and electronic filing. If you submit them
by mail and would like to know that they reached the Facility, please
enclose a stamped, self-addressed postcard or envelope. We will
consider all comments and material received during the comment period
and may change the rule based on your comments.

2. Viewing comments and documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
type the docket number [USCG-2014-0365] in the ``SEARCH'' box and click
``SEARCH''. Click on Open Docket Folder on the line associated with
this rulemaking. You may also visit the Docket Management Facility in
Room W12-140 on the ground floor of the Department of Transportation
West Building, 1200 New Jersey Avenue SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays.

3. Privacy Act

    Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).

4. Public Meeting

    We do not now plan to hold a public meeting regarding this
rulemaking. But you may submit a request for one using one of the three
methods specified under ADDRESSES. Please explain why one would be
beneficial. If we determine that one would aid this rulemaking, we will
hold one at a time and place announced by a later notice in the Federal
Register.

B. Regulatory History and Information

    Currently, the Illinois Waterway drawbridge operation regulations
contained in 33 CFR Part 117, Subpart B--Specific Requirements, 117.393
(c), state that ``The draws of the McDonough Street Bridge, mile 287.3;
Jefferson Street Bridge, Mile 287.9; Cass Street Bridge, Mile 288.1;
Jackson Street Bridge, Mile 288.4; and Ruby Street Bridge, Mile 288.7;
all of Joliet, shall open on signal, except that they need not open
from 7:30 a.m. to 8:30 a.m. and from 4:15 p.m. to 5:15 p.m. Monday
through Saturday.'' Additionally, the Brandon Road Drawbridge, Mile
285.8, Illinois Waterway, also in Joliet, currently operates without a
special operating schedule under Subpart B.
    On July 12, 2012, the Illinois Department of Transportation
requested approval of plans to centralize the bridge tenders for the
five drawbridges listed in 33 CFR 117.393(c), and also to include the
Brandon Road Drawbridge as a sixth drawbridge operated under this
centralized plan. The Coast Guard

determined that centralizing the bridge tenders and remotely operating
the six Joliet highway drawbridges will not impede navigation. This
determination is expected to be proven through a test period before a
final rule is put into place. Additionally, this proposed rule change
has been discussed with navigation interests on numerous occasions.

C. Basis and Purpose

    The Illinois Waterway is a navigable waterway connecting Chicago,
Illinois and Lake Michigan through a combination of improved natural
waterways and canals with the Upper Mississippi River at Grafton,
Illinois. This waterway spans a course of 327 miles. The U.S. Army
Corps of Engineers operates nine locks on the Illinois Waterway that
provide a safe and efficient navigation system, carrying approximately
24 million tons of cargo each year.
    The goal of centralizing the drawbridge operations is to improve
safety and operations for river and street traffic as well as the
workers who conduct the operations. As proposed, centralizing the
bridge tenders is anticipated to also improve the operating efficiency
for all six drawbridges.
    Centralizing the bridge tenders would have no impact on the
existing regulations regarding hours or methods of bridge operations.
This proposed rule change is in accordance with the provisions under 33
CFR 117.42 for remotely operated and automated drawbridges and would
centralize the bridge tenders at one local control station.

D. Discussion of Proposed Rule

    This rule proposes a local centralized control center, adjacent to
Jackson Street Bridge, and bridge tender operation manned by three
bridge tenders at all times, continuing to operate the five draw
bridges as currently required under 33 CFR 117.393(c). Additionally, a
sixth drawbridge, the Brandon Road Drawbridge, Mile 285.8, Illinois
Waterway, would also be operated through the proposed centralized
control center. The Brandon Road Drawbridge does not require a special
operating schedule under Subpart B and will still open on signal or
request, but it would be remotely operated from the new centralized
location under this proposed rule. The local centralized bridge tender
operation and control center will be supported by two dedicated fiber
optic communication systems (one is redundant) with wireless backup,
closed circuit television cameras, thermal cameras, and boat detection
equipment at each bridge. This centralized control center network will
be equipped with a diesel powered backup generator.
    Through the use of multiple closed circuit television cameras,
thermal (infrared) cameras, and boat detectors, the bridge operators
will have a more comprehensive overview of vessel traffic.
    The Coast Guard has determined that centralizing the bridge tenders
to a local control station will not adversely impact navigation.
Rather, this proposed centralized plan is intended to improve
navigational safety in the Joliet area by providing bridge tenders a
more comprehensive view of vessel traffic.

E. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on these statutes or executive orders.

1. Regulatory Planning and Review

    This proposed rule is not a ``significant regulatory action'' under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
as supplemented by Executive Order 13563, Improving Regulation and
Regulatory Review, and does not require an assessment of potential
costs and benefits under section 6(a)(3) of Order 12866 or under
section 1 of Executive Order 13563. The Office of Management and Budget
has not reviewed it under those Orders.
    We expect the economic impact of this rule on commercial traffic
operating on the Illinois Waterway to be minimal. The operating
procedures affected by this change will create more efficiency in
vessel movement and proposes no new restrictions but centralizes the
bridge tender operations. Therefore a full Regulatory Evaluation is
unnecessary.

2. Impact on Small Entities

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612), as
amended, requires federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this
proposed rule would not have a significant economic impact on a
substantial number of small entities.
    This proposed rule would affect the following entities, some of
which might be small entities: The owners or operators of vessels
needing to transit through the bridge.
    This action will not have a significant economic impact on a
substantial number of small entities for the following reasons: This
proposed action will provide greater efficiency in vessel movement by
centralizing bridge tender operations which will reduce wait times for
bride openings. This proposed rule further imposes no new restrictions
on the waterway but merely changes the bridge tender operations.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.

3. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule. If the rule would affect
your small business, organization, or governmental jurisdiction and you
have questions concerning its provisions or options for compliance,
please contact the person listed in the FOR FURTHER INFORMATION
CONTACT, above. The Coast Guard will not retaliate against small
entities that question or complain about this proposed rule or any
policy or action of the Coast Guard.

4. Collection of Information

    This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

5. Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this proposed rule under that Order and
have determined that it does not have implications for federalism.

6. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to

coordinate protest activities so that your message can be received
without jeopardizing the safety or security of people, places or
vessels.

7. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this proposed rule will not
result in such an expenditure, we do discuss the effects of this rule
elsewhere in this preamble.

8. Taking of Private Property

    This proposed rule would not cause a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

9. Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

10. Protection of Children

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

11. Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

12. Energy Effects

    This proposed rule is not a ``significant energy action'' under
Executive Order 13211, Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use.

13. Technical Standards

    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

14. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01, and Commandant Instruction
M16475.lD which guides the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have made a preliminary determination that this action is one of a
category of actions which do not individually or cumulatively have a
significant effect on the human environment. This proposed rule simply
promulgates the operating regulations or procedures for drawbridges.
This rule is categorically excluded, under figure 2-1, paragraph
(32)(e), of the Instruction.
    Under figure 2-1, paragraph (32)(e), of the Instruction, an
environmental analysis checklist and a categorical exclusion
determination are not required for this rule. We seek any comments or
information that may lead to the discovery of a significant
environmental impact from this proposed rule.

List of Subjects in 33 CFR Part 117

    Bridges.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 117 as follows:

PART 117--DRAWBRIDGE OPERATION REGULATIONS

0
1. The authority citation for part 117 continues to read as follows:

    Authority:  33 U.S.C. 499; 33 CFR 1.05-1; Department of Homeland
Security Delegation No. 0170.1.

0
2. Revise Sec.  117.393(c) to read as follows:

Sec.  117.393  Illinois Waterway.

* * * * *
    (c) The draws of the McDonough Street Bridge, mile 287.3; Jefferson
Street Bridge, Mile 287.9; Cass Street Bridge, Mile 288.1; Jackson
Street Bridge, Mile 288.4; and Ruby Street Bridge, Mile 288.7; all of
Joliet, shall open on signal, except that they need not open from 7:30
a.m. to 8:30 a.m. and from 4:15 p.m. to 5:15 p.m. Monday through
Saturday. These five bridges along with Brandon Road Drawbridge, Mile
285.8, Illinois Waterway are all operated from a local centralized
location adjacent to the Jackson Street Bridge, Mile 288.4. Each of
these six bridges is equipped with closed circuit television cameras,
infrared cameras, and boat detection equipment.
* * * * *

    Dated: August 6, 2014.
Kevin S. Cook,
Rear Admiral, Commander, U.S. Coast Guard, Eighth Coast Guard District.
[FR Doc. 2014-19990 Filed 8-26-14; 8:45 am]
BILLING CODE 9110-04-P


  SEQ CHAPTER \h \r 1 Table 51.  Summary of Labeling Changes for
Mancozeb

Description	Amended Labeling Language	Placement on Label

Manufacturing Use Products

For all Manufacturing Use Products	“Only for formulation into a
fungicide for the following uses: [registrant fills in blank with only
those uses being supported by MP registrants].”

Technical and end-use product labels must be revised to delete all
references to and use-directions for the following cancelled use
patterns: foliar use on cotton, pineapple propagation use, all uses on
turfgrass in residential settings and athletic fields, and all uses on
pachysandra.

Manufacturers of products formulated as wettable powders must prohibit
the following:

- application of wettable powder products to turf on sod farms

- application of wettable powder formulations to turf unless packaged in
water soluble packaging

Manufacturers of products formulated as liquids must prohibit the
following:

- application of liquids by aerial or chemigation methods to golf
courses

- application of liquids aerially to sod farms.

≥ 50,000 cwt per week (2,500 tons/week) to prevent dusts from
contacting handlers or other persons during seed piece treatment.

Manufacturers of products formulated as wettable powders applied wet
that have use directions for seed treatment must require, on the end-use
product labels,  use of a dust collection system in mixing and loading
wettable powder to prevent dusts from contacting handlers or other
persons during mixing and loading.	Directions for Use

One of these statements may be added to a label to allow reformulation
of the product for a specific use or all additional uses supported by a
formulator or user group	“This product may be used to formulate
products for specific use(s) not listed on the manufacturing use product
label if the formulator, user group, or grower has complied with U.S.
EPA submission requirements regarding support of such use(s).”

“This product may be used to formulate products for any additional
use(s) not listed on the manufacturing use product label if the
formulator, user group, or grower has complied with U.S. EPA submission
requirements regarding support of such use.”	Directions for Use

Environmental Hazards Statements Required by the RED and Agency Label
Policies	“Do not discharge effluent containing this product into
lakes, streams, ponds, estuaries, oceans, or other waters unless in
accordance with the requirements of a National Pollutant Discharge
Eliminations System (NPDES) permit and the permitting authority has been
notified in writing prior to discharge.  Do not discharge effluent
containing this product to sewer systems without previously notifying
the local sewage treatment plant authority.  For guidance, contact your
State Water Board or Regional Office of the Environmental Protection
Agency.” 	Precautionary Statements

End-Use Products Intended for Occupational Use (WPS and non-WPS)

PPE Requirements Established by the RED for Liquid Concentrate
Formulations

(For labels bearing all uses, except seed and seed piece treatment)
“Personal Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Mixers, loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks, and

- chemical-resistant gloves made of any waterproof material (except
pilots, groundboom applicators, and airblast applicators)”

“In addition, mixers/loaders supporting chemigation applications to
turf on sod farms must wear a NIOSH-approved respirator with a dust/mist
filter with MSHA/NIOSH approval number prefix TC-21C or any N*, R, P, or
HE filter.”

*Instruction to registrant: Drop the “N” type filter from the
respirator statement if the pesticide product contains or is used with
oil.

“See engineering controls for additional requirements.” 	Immediately
following/below Precautionary Statements:  Hazards to Humans and
Domestic Animals

PPE Requirements Established by the RED for Liquid Concentrate, Liquid
Ready-To-Use, and Dry Flowable Formulations

(For labels bearing  directions for use as a seed treatment)
“Personal Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Mixers, loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks, and

- chemical-resistant gloves made of any waterproof material (except
handlers who are bagging the treated seed or sewing the bags)”

	Immediately following/below Precautionary Statements:  Hazards to
Humans and Domestic Animals

PPE Requirements Established by the RED for Liquid Concentrate
Formulations

(For labels bearing all uses, including directions for use as a seed
treatment)	“Personal Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Mixers, loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks, and

- chemical-resistant gloves made of any waterproof material (except
pilots, groundboom applicators, airblast applicators and seed-treamtent
handlers who are bagging treated seed or sewing bags containing treated
seed)”

“In addition, mixers/loaders supporting chemigation applications to
turf on sod farms must wear a NIOSH-approved respirator with a dust/mist
filter with MSHA/NIOSH approval number prefix TC-21C or any N*, R, P, or
HE filter.”

*Instruction to registrant: Drop the “N” type filter from the
respirator statement if the pesticide product contains or is used with
oil.

“See engineering controls for additional requirements.”	Immediately
following/below Precautionary Statements:  Hazards to Humans and
Domestic Animals

PPE Requirements Established by the RED for Wettable Powder (WP)
Formulations that are not packaged in water soluble packaging.

(For labels bearing all uses except seed and seed piece treatment)
“Personal Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Mixer, loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks.”

“In addition, all handlers except pilots, groundboom applicators, and
airblast applicators must wear:

- chemical-resistant gloves made of any waterproof material, and

- a NIOSH-approved respirator with a dust/mist filter with MSHA/NIOSH
approval number prefix TC-21C or any N*, R, P, or HE filter.”

*Instruction to Registrant:  Drop the “N” type filter from the
respirator statement if the pesticide product contains, or is used with,
oil.  if the pesticide product contains, or is used with, oil.

“See engineering controls for additional requirements”	Immediately
following/below Precautionary Statements:  Hazards to Humans and
Domestic Animals

PPE Requirements Established by the RED for Wettable Powder (WP)
Formulations that are not packaged in water soluble packaging.

(For labels bearing directions for use as a seed treatment)	“Personal
Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Mixer, loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks.”

“In addition, all handlers (except handlers who are bagging the
treated seed or sewing the bags) must wear:

- chemical-resistant gloves made of any waterproof material, and

- a NIOSH-approved respirator with a dust/mist filter with MSHA/NIOSH
approval number prefix TC-21C or any N*, R, P, or HE filter.”

“See engineering controls for additional requirements”

*Instruction to Registrant:  Drop the “N” type filter from the
respirator statement if the pesticide product contains, or is used with,
oil.  if the pesticide product contains, or is used with, oil.
Immediately following/below Precautionary Statements:  Hazards to Humans
and Domestic Animals

PPE Requirements Established by the RED for Wettable Powder (WP)
Formulations that are not packaged in water soluble packaging.

(For labels bearing all uses, including directions for use as a seed
treatment)	“Personal Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Mixer, loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks.”

“In addition, all handlers (except pilots, groundboom applicators,
airblast applicators, and seed-treatment handlers who are bagging
treated seed or sewing bags containing treated seed) must wear:

- chemical-resistant gloves made of any waterproof material, and

- a NIOSH-approved respirator with a dust/mist filter with MSHA/NIOSH
approval number prefix TC-21C or any N*, R, P, or HE filter.”

“See engineering controls for additional requirements”

*Instruction to Registrant:  Drop the “N” type filter from the
respirator statement if the pesticide product contains, or is used with,
oil.  if the pesticide product contains, or is used with, oil.
Immediately following/below Precautionary Statements:  Hazards to Humans
and Domestic Animals

PPE Requirements Established by the RED for Wettable Powder (WP)
Formulations that

are packaged in water soluble packaging.

(For labels bearing all uses.)	“Personal Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Mixer, loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks, and

- chemical resistant gloves made of any waterproof material (except
pilots, groundboom applicators, and airblast applicators).”

“In addition, handlers performing tasks, such as spill clean-up, that
involve contact with the dry wettable powder must wear:

- a NIOSH-approved respirator with a dust/mist filter with MSHA/NIOSH
approval number prefix TC-21C or any N*, R, P, or HE filter.”

*Instruction to Registrant:  Drop the “N” type filter from the
respirator statement if the pesticide product contains, or is used with,
oil.  if the pesticide product contains, or is used with, oil.

“See engineering controls for additional requirements”	Immediately
following/below Precautionary Statements:  Hazards to Humans and
Domestic Animals

PPE Requirements Established by the RED for Dust Formulation and
Wettable Powder Formulations (applied dry)

(For labels bearing directions for use as a seed-piece treatment)
“Personal Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks,

- chemical-resistant gloves made of any waterproof material, and

- a NIOSH-approved respirator with a dust/mist filter with MSHA/NIOSH
approval number prefix TC-21C or any N*, R, P, or HE filter.”

*Instruction to Registrant:  Drop the “N” type filter from the
respirator statement if the pesticide product contains, or is used with,
oil.

“See engineering controls for additional requirements.”

	PPE Requirements Established by the RED for Dry Flowable (DF)
Formulation

(For labels bearing all uses.)	“Personal Protective Equipment (PPE)”

“Some materials that are chemical-resistant to this product are
[registrant inserts correct material(s)].  If you want more options,
follow the instructions for category [insert A, B, C, D, E, F, G or H]
on an EPA chemical-resistance category selection chart.”

 “Mixers, loaders, applicators, and other handlers must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks, and

- chemical-resistant gloves made of any waterproof material (except
pilots, groundboom applicators, and airblast applicators)”

“See engineering controls for additional requirements.”	Immediately
following/below Precautionary Statements:  Hazards to Humans and
Domestic Animals

Engineering Controls:  Dust Collection System for Large Scale Seed-Piece
Treatment.

Dust Formulations and Wettable Powder Formulations (applied dry)

(For labels bearing directions for use as a seed-piece treatment.)
“Large scale seed piece treatment facilities that, on any given week
in the current year or in the past year, treated ≥ 50,000 cwt ( ≥
2,500 tons) must use a dust collection system during the treatment of
the seed pieces that prevents dust from contacting handlers or other
persons.

Handlers using the dust collection system must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks, and

- chemical-resistant gloves (except pilots, groundboom applicators, and
airblast applicators); and

- must be provided with, have immediately available, and wear in an
emergency, such as a broken package, spill, or equipment breakdown: a
NIOSH-approved respirator with a dust/mist filter with MSHA/NIOSH
approval number prefix TC-21C or any N, R, P, or HE filter.”
Immediately following/below Precautionary Statements:  Hazards to Humans
and Domestic Animals

Engineering Controls:  Dust Collection System for Seed Treatment.

Wettable Powder Formulations

(For labels bearing direction for use as a seed treatment.)	“Handlers
mixing and loading wettable powder for seed treatment must use a dust
collection system during the treatment of the seed that prevents dust
from contacting handlers or other persons.

Handlers using the dust collection system must wear:

- long-sleeved shirt,

- long pants,

- shoes and socks, and

- chemical-resistant gloves (except pilots, groundboom applicators, and
airblast applicators); and

- must be provided with, have immediately available, and wear in an
emergency, such as a broken package, spill, or equipment breakdown: a
NIOSH-approved respirator with a dust/mist filter with MSHA/NIOSH
approval number prefix TC-21C or any N, R, P, or HE filter.”
Immediately following/below Precautionary Statements:  Hazards to Humans
and Domestic Animals

Engineering Controls:  Wettable Powder Formulations packaged in water
soluble packaging	“Engineering controls

Water-soluble packets when used correctly qualify as a closed
mixing/loading system under the Worker Protection Standard for
Agricultural Pesticides [40 CFR 170.240(d)(4)].  Mixers and loaders
using water-soluble packets must:

-- wear the personal protective equipment required in the PPE section of
this labeling for mixers/loaders

-- be provided, and have immediately available, and wear in an
emergency, such as a broken package, spill, or equipment breakdown: a
NIOSH-approved respirator with a dust/mist filter with MSHA/NIOSH
approval number prefix TC-21C or any N, R, P, or HE filter.”
Immediately following/below Precautionary Statements:  Hazards to Humans
and Domestic Animals

Engineering Controls:  Enclosed Cockpits for Aerial Applicators for
products with directions for use permitting aerial application.

	Enclosed Cockpits

“Engineering Controls:  Pilots must use an enclosed cockpit that meets
the requirements listed in the Worker Protection Standard (WPS) for
agricultural pesticides [40 CFR 170.240(d)(6)].” 	Immediately
following/below Precautionary Statements:  Hazards to Humans and
Domestic Animals

Engineering Controls:  Mechanical Flaggers or Global Positioning System
(GPS) in lieu of Human Flaggers  for products with directions for use
permitting aerial application. 	Mechanical Flagging Engineering
Controls:

“Engineering controls:  Human flagging is prohibited.  Flagging to
support aerial application is limited to use of the Global Positioning
System (GPS) or mechanical flaggers.”	Immediately following/below
Precautionary Statements:  Hazards to Humans and Domestic Animals

User Safety Requirements

	Follow manufacturer’s instructions for cleaning/maintaining PPE.  If
no such instructions for washables exist, use detergent and hot water.
Keep and wash PPE separately from other laundry. Discard clothing or
other absorbent materials that have been drenched or heavily
contaminated with this product’s concentrate.  Do not reuse them.”
Precautionary Statements:  Hazards to Humans and Domestic Animals
immediately following the PPE requirements

User Safety Recommendations	“USER SAFETY RECOMMENDATIONS”

“Users should wash hands before eating, drinking, chewing gum, using
tobacco, or using the toilet.”

“Users should remove clothing/ PPE immediately if pesticide gets
inside, then wash thoroughly and put on clean clothing.”

“Users should remove PPE immediately after handling this product.
Wash the outside of gloves before removing.  As soon as possible, wash
thoroughly and change into clean clothing.”	Precautionary Statements
under: Hazards to Humans and Domestic Animals

(Must be placed in a box.)

Restricted-Entry Interval (for uses within the scope of the Worker
Protection Standard for Agricultural Pesticides (WPS)

	“Do not enter or allow worker entry into treated areas during the
restricted entry interval (REI) of 24 hours.”

	Directions for Use, in the Agricultural Use Requirements box

Pre-Harvest Interval (PHI)	PHI for barley, rye, and wheat:  “Feekes
Growth Stage 10.5 (typically 35-45 days), but no less than 26 days.”
Directions for Use,

In the Restrictions column

Early Reentry Personal Protective Equipment for uses within the scope of
the WPS	“PPE required for early entry to treated areas that is
permitted under the Worker Protection Standard and that involves contact
with anything that has been treated, such as soil or water, is:

- Coveralls,

- Shoes and socks, and

- Chemical-resistant gloves made of any waterproof material.	In the
Agricultural Use Requirements Box

General Application Restrictions

All Formulations	“Do not apply this product in a way that will contact
workers or other persons, either directly or through drift.  Only
protected handlers may be in the area during application.  For any
requirements specific to your state or tribe, consult the agency
responsible for pesticide regulation”	Directions for Use , in the
Agricultural Use Requirements Box

Application Restrictions

Wettable Powder  (WP) Formulation	 End-use product labels must be
revised to delete all references to and use directions for the following
use pattern:  Sod farm turf.

 End-use product labels must be revised to delete all references to and
use directions for the following use pattern: turf (unless product is
packaged in water soluble packaging)

	Use Directions

Application Restrictions

Dry Flowable

Formulations	“For use on sod farms, golf courses, industrial and
commercial lawns and other similar

nonresidential areas.”	Use Directions

Application Restrictions

Liquid Formulation	End-use product labels must be revised to delete the
following application method/use combinations: aerial application to sod
farms, aerial application to golf courses, and chemigation application
to golf courses.

	Use Directions

Application Restrictions  - Turf (Risk Mitigation)

All Formulations

NOTE:

The labels also must list the maximum application rates in pounds or
gallons of formulation.	Sod Farm Turf:

“Harvesting of treated turf is prohibited until 72 hours following
application.”

- Limit to a maximum of 4 applications per year and a maximum rate of
17.4 lb ai/A per application.

- Require a minimum of a 10 day interval between applications

Golf Courses:

- For cool season grasses; greens, tees and aprons - limit to a maximum
of 5 applications per year at a maximum application rate of 17.4 lb ai/A
per application

- For cool season grasses; fairways - limit to a maximum of 4
applications per year at a maximum application rate of  17.4 lb ai/A per
application

- For warm season grasses; greens, tees and aprons - limit to a maximum
of 4 applications per year at a maximum application rate of 17.4 lb ai/A
per application

- For warm season grasses; fairways - limit to a maximum of 3
applications per year at a maximum application rate of  17.4 lb ai/A per
application

-  Require a minimum of a 10 day interval between applications

All Other Turf:

- Limit to a maximum of 4 applications per year and a maximum
application rate of 17.4 lb ai/A per application

- Require a minimum of a 10 day interval between applications	Use
Directions

Application Restrictions (Risk Mitigation)

All Formulations

NOTE:

The labels also must list the maximum application rates in pounds or
gallons of formulation.

Papaya: The maximum application rate is 2 lb ai/A, and  the maximum
applications per year is 14.

Cut Flowers and greenhouse grown ornamentals:  Limit to 20 applications
per year.

Restrict against homeowner application to sweet corn in the home garden.
(homeowner labels only)

Technical and end-use product labels must be revised to delete all
references to and use-directions for the following use patterns:  foliar
use on cotton, pineapple propagation use,  all uses on turfgrass in
residential settings and athletic fields, and all uses on pachysandra.
Use Directions

Application Restrictions for Seed Treatment

Wettable Powder  (WP) Formulation	“Mancozeb (trade name) fungicide
must be applied to dry seed with conventional slurry or mist
seed-treating equipment.  For best results, the seed must be completely
and uniformly covered with fungicide.  For seed treatment, a dye must be
added to (PRODUCT) which will impart an unnatural color to the seed”
Use Directions

Application Restrictions for Seed Treatment

	“For best results, the seed must be completely and uniformly covered
with fungicide.  For seed treatment, a dye must be added to (PRODUCT)
which will impart an unnatural color to the seed”	Use Directions

Application Restrictions for seed or seed-pieces

that have been treated with this

product that are then packaged or

bagged for future use	"Seeds/seed-pieces that have been treated with
this product that are then packaged or bagged for future use must
contain the following labeling on the outside of the seed/seed-piece
package or bag:"

"When opening this bag or loading/pouring the treated seed/seed-pieces,
wear long-sleeved shirt, long pants, shoes, socks, chemical resistant
gloves, and a NIOSH-approved respirator with a dust/mist filter with
MSHA/NIOSH approval number prefix TC-21C or any N*, R, P, or HE
filter.”

*Instructions:  Drop the “N” type filter from the respirator
statement if the pesticide product contains, or is used with, oil.

"Treated Seed/Seed-Pieces - Do Not Use for Food, Feed, or Oil
Purposes.”

"After the seeds/seed pieces have been planted, do not enter or allow
worker entry into treated areas during the restricted-entry interval
(REI) of 24 hours. Exception: Once the seeds/seed pieces are planted in
soil or other planting media, the Worker Protection Standard allows
workers to enter the treated area without restriction if there will be
no worker contact with the soil/media subsurface."	Use Directions

Environmental Hazards Statements Required by the RED and Agency Label
Policies	“This pesticide is toxic to aquatic organisms.  Drift and
runoff from treated areas may be hazardous to aquatic organisms in
neighboring areas.  Do not apply directly to water, or to areas where
surface water is present, or to inter-tidal areas below the mean high
water mark.  Do not contaminate water when cleaning equipment or
disposing of equipment washwater or rinsate.”	Precautionary
Statements: Hazards to Humans and Domestic Animals

Spray Drift Label Language for Products Applied as a Spray	"SPRAY DRIFT
MANAGEMENT”

“A variety of factors including weather conditions (e.g., wind
direction, wind speed, temperature, relative humidity) and method of
application (e.g., ground, aerial, airblast, chemigation) can influence
pesticide drift.  The applicator must evaluate all factors and make
appropriate adjustments when applying this product.”

Wind Speed

“Do not apply at wind speeds greater than 15 mph.

 Temperature Inversions

“If applying at wind speeds less than 3 mph, the applicator must
determine if a) conditions of temperature inversion exist, or b) stable
atmospheric conditions exist at or below nozzle height.  Do not make
applications into areas of temperature inversions or stable atmospheric
conditions.”

Other State and Local Requirements

“Applicators must follow all state and local pesticide drift
requirements regarding application of mancozeb.  Where states have more
stringent regulations, they must be observed.”

Equipment

“All aerial and ground application equipment must be properly
maintained and calibrated using appropriate carriers or surrogates.”

Additional requirements for aerial applications:

1.  “The boom length must not exceed 75% of the wingspan or 90% of the
rotor blade diameter.”

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 “Release spray at the lowest height consistent with efficacy and
flight safety.  Do not release spray at a height greater than 10 feet
above the crop canopy unless a greater height is required for aircraft
safety.”

3.  “When applications are made with a crosswind, the swath must be
displaced downwind.  The applicator must compensate for this
displacement at the up and downwind edge of the application area by
adjusting the path of the aircraft upwind.”

Additional requirements for ground boom application:

1.  “Do not apply with a nozzle height greater than 4 feet above the
crop canopy.”	Spray Drift Label Language for Products Applied as a
Spray

 PAGE

 PAGE   9


[Federal Register Volume 83, Number 8 (Thursday, January 11, 2018)]
[Notices]
[Page 1349]
[FR Doc No: 2018-00330]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL18-55-000]

EDF Renewables Energy, Inc. v. Midcontinent Independent System
Operator, Inc.; Notice of Complaint

    Take notice that on January 4, 2018, pursuant to sections 206 and
306 of the Federal Power Act, 16 U.S.C. 824(e), 825e, and Rule 206 of
the Federal Energy Regulatory Commission's (Commission) Rules of
Practice and Procedure, 18 CFR 385.206, EDF Renewables Energy, Inc.
(Complainant) filed a formal complaint against Midcontinent Independent
System Operator, Inc. (MISO or Respondent) alleging that MISO's Tariff
is no longer just and reasonable because MISO cannot deliver
interconnection studies and a generation interconnection agreement in
sufficient advanced time to allow proposed wind generation projects to
achieve commercial operation as needed to benefit from the Federal
Production Tax Credit, all as more fully explained in the complaint.
    Complainant certify that copies of the complaint were served on the
contacts for MISO as listed on the Commission's list of Corporate
Officials.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. The Respondent's
answer and all interventions, or protests must be filed on or before
the comment date. The Respondent's answer, motions to intervene, and
protests must be served on the Complainants.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov. Persons unable to file electronically should submit an
original and 5 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
eLibrary link and is available for electronic review in the
Commission's Public Reference Room in Washington, DC. There is an
eSubscription link on the website that enables subscribers to receive
email notification when a document is added to a subscribed docket(s).
For assistance with any FERC Online service, please email
[email protected], or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5:00 p.m. Eastern Time on January 24, 2018.

    Dated: January 5, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-00330 Filed 1-10-18; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 30 (Monday, February 14, 2011)]
[Notices]
[Pages 8400-8401]
[FR Doc No: 2011-3195]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

Petition for Exemption From the Vehicle Theft Prevention Standard;
Mitsubishi Motors

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

ACTION: Grant of petition for exemption.

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

SUMMARY: This document grants in full the Mitsubishi Motors R&D of
America's (Mitsubishi) petition for exemption of the Outlander Sport
vehicle line in accordance with 49 CFR Part 543, Exemption from the
Theft Prevention Standard. This petition is granted because the agency
has determined that the antitheft device to be placed on the line as
standard equipment is likely to be as effective in reducing and
deterring motor vehicle theft as compliance with the parts-marking
requirements of the Theft Prevention Standard (49 CFR Part 541).
Mitsubishi requested confidential treatment for some of the information
and attachments it submitted in support of its petition. The agency
addressed Mitsubishi's request for confidential treatment by letter
dated January 11, 2011.

DATES: The exemption granted by this notice is effective beginning with
the 2012 model year.

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Mazyck, Office of
International Policy, Fuel Economy and Consumer Programs, NHTSA, West
Building, W43-443, 1200 New Jersey Avenue, SE., Washington, DC 20590.
Ms. Mazyck's phone number is<PHONE_NUMBER>. Her fax number is (202)
493-2990.

SUPPLEMENTARY INFORMATION: In a petition dated November 30, 2010,
Mitsubishi requested exemption from the parts-marking requirements of
the Theft Prevention Standard (49 CFR Part 541) for the Mitsubishi
Outlander Sport vehicle line, beginning with MY 2012. The petition
requested an exemption from parts-marking pursuant to 49 CFR Part 543,
Exemption from Vehicle Theft Prevention Standard, based on the
installation of an antitheft device as standard equipment for the
entire vehicle line.
    Under Sec.  543.5(a), a manufacturer may petition NHTSA to grant an
exemption for one vehicle line per model year. In its petition,
Mitsubishi provided a detailed description and diagram of the identity,
design, and location of the components of the antitheft device for the
Outlander Sport vehicle line. Mitsubishi will install a passive,
transponder-based, electronic engine immobilizer device as standard
equipment on its Outlander Sport vehicle line beginning with MY 2012.
Features of the antitheft device will include a transponder key,
electronic control unit (ECU), and a passive immobilizer. Mitsubishi
will also incorporate an audible and visual alarm system as standard
equipment on all trimline vehicles. Mitsubishi's submission is
considered a complete petition as required by 49 CFR 543.7, in that it
meets the general requirements contained in 543.5 and the specific
content requirements of 543.6.
    Mitsubishi stated that its entry models for the Outlander Sport
vehicle line will be equipped with a Wireless Control Module (WCM).
Mitsubishi stated that this is a keyless entry system in which the
transponder is located in a traditional key that must be inserted into
the key cylinder in order to activate the ignition. All other models of
the Outlander Sport vehicle line are equipped with a One-touch Starting
System (OSS), which utilizes a keyless system that allows the driver to
press a button located on the instrument panel to activate and
deactivate the ignition (instead of using a traditional key in the key
cylinder) as long as the transponder is located in close proximity to
the driver. Mitsubishi stated that the performance of the immobilizer
will be the same in all models whether the vehicle has a WCM or OSS
entry system. Mitsubishi further stated that the only difference
between the two keyless entry systems is the ``key'' and the method
used to transmit the information from the key to the immobilizer.
    Once the ignition switch is pushed to the ``on'' position, the
transceiver module reads the specific ignition key code for the vehicle
and transmits an encrypted message containing the key code to the
electronic control unit (ECU). The immobilizer receives the key code
signal transmitted from either type of key (WCM or OSS) and verifies
that the key code signal is correct. The immobilizer then sends a
separate encrypted start-code signal to the engine ECU to allow the
driver to start the vehicle. The engine only will function

if the key code matches the unique identification key code previously
programmed into the ECU. If the codes do not match, the engine and fuel
system will be disabled.
    In addressing the specific content requirements of 543.6,
Mitsubishi provided information on the reliability and durability of
its proposed device. To ensure reliability and durability of the
device, Mitsubishi conducted tests based on its own specified
standards. Mitsubishi provided a detailed list of the tests conducted
and believes that the device is reliable and durable since the device
complied with its specific requirements for each test. Mitsubishi
additionally stated that its immobilizer system is further enhanced by
several factors making it very difficult to defeat. Specifically,
Mitsubishi stated that communication between the transponder and the
ECU are encrypted. The WCM has over 4.2 billion and the OSS has over
2.4 million different possible key codes that make successful key code
duplication virtually impossible. Mitsubishi also stated that its
immobilizer system and the ECU share security data during vehicle
assembly that make them a matched set. These matched modules will not
function if taken out and reinstalled separately on other vehicles.
Mitsubishi also stated that it is impossible to mechanically override
the system and start the vehicle because the vehicle will not be able
to start without the transmission of the specific code to the
electronic control module. Lastly, Mitsubishi stated that the antitheft
device is extremely reliable and durable because there are no moving
parts, nor does the key require a separate battery.
    Mitsubishi informed the agency that the Outlander Sport vehicle
line was first equipped with the proposed device beginning with its MY
2011 vehicles. Additionally, Mitsubishi informed the agency that its
Eclipse vehicle line has been equipped with the device beginning with
its MY 2000 vehicles. Mitsubishi stated that the theft rate for the MY
2000 Eclipse decreased by almost 42% when compared with that of its MY
1999 Mitsubishi Eclipse (unequipped with an immobilizer device).
Mitsubishi also revealed that the Galant, Endeavor, Outlander and
Lancer vehicle lines have been equipped with a similar type of
immobilizer device since January 2004, April 2004, September 2006 and
March 2007 respectively. The Mitsubishi Galant, Endeavor, Outlander and
Lancer vehicle lines have all been granted parts-marking exemptions by
the agency and the average theft rates using 3 MY's data are 4.8061,
2.5410, 0.9507 and 3.1547 respectively. Therefore, Mitsubishi has
concluded that the antitheft device proposed for its vehicle line is no
less effective than those devices in the lines for which NHTSA has
already granted full exemption from the parts-marking requirements.
    Based on the supporting evidence submitted by Mitsubishi on the
device, the agency believes that the antitheft device for the Outlander
Sport vehicle line is likely to be as effective in reducing and
deterring motor vehicle theft as compliance with the parts-marking
requirements of the Theft Prevention Standard (49 CFR Part 541). The
agency concludes that the device will provide the five types of
performance listed in Sec.  543.6(a)(3): Promoting activation; attract
attention to the efforts of an unauthorized person to enter or move a
vehicle by means other than a key; preventing defeat or circumvention
of the device by unauthorized persons; preventing operation of the
vehicle by unauthorized entrants; and ensuring the reliability and
durability of the device.
    Pursuant to 49 U.S.C. 33106 and 49 CFR 543.7(b), the agency grants
a petition for an exemption from the parts-marking requirements of Part
541 either in whole or in part, if it determines that, based upon
substantial evidence, the standard equipment antitheft device is likely
to be as effective in reducing and deterring motor vehicle theft as
compliance with the parts-marking requirements of Part 541. The agency
finds that Mitsubishi has provided adequate reasons for its belief that
the antitheft device for the Mitsubishi Outlander Sport vehicle line is
likely to be as effective in reducing and deterring motor vehicle theft
as compliance with the parts-marking requirements of the Theft
Prevention Standard (49 CFR Part 541). This conclusion is based on the
information Mitsubishi provided about its device.
    For the foregoing reasons, the agency hereby grants in full
Mitsubishi's petition for exemption for the Outlander Sport vehicle
line from the parts-marking requirements of 49 CFR Part 541, beginning
with the 2012 model year vehicles. The agency notes that 49 CFR Part
541, Appendix A-1, identifies those lines that are exempted from the
Theft Prevention Standard for a given model year. 49 CFR Part 543.7(f)
contains publication requirements incident to the disposition of all
Part 543 petitions. Advanced listing, including the release of future
product nameplates, the beginning model year for which the petition is
granted and a general description of the antitheft device is necessary
in order to notify law enforcement agencies of new vehicle lines
exempted from the parts-marking requirements of the Theft Prevention
Standard.
    If Mitsubishi decides not to use the exemption for this line, it
must formally notify the agency. If such a decision is made, the line
must be fully marked as required by 49 CFR 541.5 and 541.6 (marking of
major component parts and replacement parts).
    NHTSA notes that if Mitsubishi wishes in the future to modify the
device on which this exemption is based, the company may have to submit
a petition to modify the exemption. Part 543.7(d) states that a Part
543 exemption applies only to vehicles that belong to a line exempted
under this part and equipped with the antitheft device on which the
line's exemption is based. Further, Sec.  543.9(c)(2) provides for the
submission of petitions ``to modify an exemption to permit the use of
an antitheft device similar to but differing from the one specified in
that exemption.''
    The agency wishes to minimize the administrative burden that Sec.
543.9(c)(2) could place on exempted vehicle manufacturers and itself.
The agency did not intend Part 543 to require the submission of a
modification petition for every change to the components or design of
an antitheft device. The significance of many such changes could be de
minimis. Therefore, NHTSA suggests that if the manufacturer
contemplates making any changes, the effects of which might be
characterized as de minimis, it should consult the agency before
preparing and submitting a petition to modify.

    Authority:  49 U.S.C. 33106; delegation of authority at 49 CFR
1.50.

    Issued on: February 8, 2011.
Joseph S. Carra,
Acting Associate Administrator for Rulemaking.
[FR Doc. 2011-3195 Filed 2-11-11; 8:45 am]
BILLING CODE 4910-59-P