[Federal Register Volume 76, Number 186 (Monday, September 26, 2011)]
[Notices]
[Pages 59458-59462]
[FR Doc No: 2011-24587]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 29791; File No. 812-13867]

Stone Harbor Emerging Markets Income Fund, et al.; Notice of
Application

September 16, 2011.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of application under section 6(c) of the Investment
Company Act of 1940 (``Act'') for an exemption from section 19(b) of
the Act and rule 19b-1 under the Act.

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Summary of Application: Applicants request an order to permit certain
registered closed-end investment companies to make periodic
distributions of long-term capital gains with respect to their
outstanding common stock as frequently as monthly in any one taxable
year, and as frequently as distributions are specified by or in
accordance with the terms of any outstanding preferred stock that such
investment companies may issue.

Applicants: Stone Harbor Emerging Markets Income Fund (the ``Current
Fund'') and Stone Harbor Investment Partners LP (``Stone Harbor'' or
the ``Adviser'').

Filing Dates: The application was filed on February 9, 2011 and amended
on May 27, 2011 and September 13, 2011.

Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving applicants with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on October 11, 2011, and should be accompanied by proof of service
on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be

notified of a hearing may request notification by writing to the
Commission's Secretary.

ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090; Applicants, 31 West 52nd Street, 16th
Floor, New York, New York 10019, Contact: Adam J. Shapiro, Esq.

FOR FURTHER INFORMATION CONTACT: Keith A. Gregory, Senior Counsel, at
(202) 551-6815, or Mary Kay Frech, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or for an
applicant using the Company name box, at http://www.sec.gov/search/search.htm, or by calling<PHONE_NUMBER>.
    Applicants' Representations:
    1. The Current Fund is a closed-end management investment company
registered under the Act and is organized as a Massachusetts business
trust.\1\ The Current Fund's investment objective is total return,
consisting of income and capital appreciation. The common shares of the
Current Fund are listed on the New York Stock Exchange. The Current
Fund currently does not intend to issue any shares of preferred stock,
but may do so in the future. Applicants believe that investors in the
common shares of the Current Fund may prefer an investment vehicle that
provides regular/monthly distributions and a steady cash flow.
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    \1\ Applicants request that any order issued granting the relief
requested in the application also apply to any registered closed-end
investment company currently advised or to be advised in the future
by Stone Harbor (including any successor in interest) or by an
entity controlling, controlled by or under common control (within
the meaning of section 2(a)(9) of the Act) with Stone Harbor (such
entities, together with Stone Harbor, the ``Investment Advisers'')
that decides in the future to rely on the requested relief. Any
closed-end investment company that relies on the order in the future
will comply with the terms and conditions of the application (such
investment companies together with the Current Fund, the ``Funds,''
and with the Investment Advisers, the ``Applicants''). All existing
Funds currently intending to rely on the order have been named as
Applicants. A successor in interest is limited to entities that
result from a reorganization into another jurisdiction or a change
in the type of business organization.
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    2. Stone Harbor, a registered investment adviser under the
Investment Advisers Act of 1940, as amended (``Advisers Act''), acts as
the Current Fund's investment adviser. Each future Investment Adviser
to a Fund will be registered under the Advisers Act.
    3. Applicants state that, prior to a Fund's implementing a
distribution plan in reliance on the order, the board of trustees (the
``Board'') of the Fund, including a majority of the trustees who are
not ``interested persons,'' of such Fund as defined in section 2(a)(19)
of the Act (the ``Independent Trustees''), shall have requested, and
the Adviser shall have provided, such information as is reasonably
necessary to make an informed determination of whether the Board should
adopt a proposed distribution policy. In particular, the Board and the
Independent Trustees shall have reviewed information regarding the
purpose and terms of a proposed distribution policy, the likely effects
of such policy on such Fund's long-term total return (in relation to
market price and its net asset value per common share (``NAV'')) and
the relationship between such Fund's distribution rate on its common
shares under the policy and such Fund's total return (in relation to
NAV); whether the rate of distribution would exceed such Fund's
expected total return in relation to its NAV; and any foreseeable
material effects of such policy on such Fund's long-term total return
(in relation to market price and NAV). The Independent Trustees shall
also have considered what conflicts of interest the Adviser and the
affiliated persons of the Adviser and each such Fund might have with
respect to the adoption or implementation of such policy. Applicants
state that, only after considering such information shall the Board,
including the Independent Trustees, of a Fund approve a distribution
policy with respect to such Fund's common shares (the ``Plan'') and in
connection with such approval shall have determined that such Plan is
consistent with a Fund's investment objectives and in the best
interests of a Fund's common shareholders.
    4. Applicants state that the purpose of a Plan would be to permit a
Fund to distribute over the course of each year, through periodic
distributions as nearly equal as practicable and any required special
distributions, an amount closely approximating the total taxable income
of such Fund during such year and, if so determined by its Board, all
or a portion of the return of capital paid by portfolio companies to
such Fund during such year. It is anticipated that under the Plan of a
Fund, such Fund would distribute to its respective common shareholders
a fixed monthly percentage of the market price of such Fund's common
shares at a particular point in time or a fixed monthly percentage of
NAV at a particular time or a fixed monthly amount, any of which may be
adjusted from time to time. It is anticipated that under a Plan, the
minimum annual distribution rate with respect to such Fund's common
shares would be independent of a Fund's performance during any
particular period but would be expected to correlate with a Fund's
performance over time. Except for extraordinary distributions and
potential increases or decreases in the final dividend periods in light
of a Fund's performance for an entire calendar year and to enable a
Fund to comply with the distribution requirements of Subchapter M of
the Internal Revenue Code (``Code'') for the fiscal year, it is
anticipated that each distribution on the common shares would be at the
stated rate then in effect.
    5. Applicants state that prior to the implementation of a Plan for
a Fund, the Board shall have adopted policies and procedures under rule
38a-1 under the Act that: (i) Are reasonably designed to ensure that
all notices required to be sent to the Fund's shareholders pursuant to
section 19(a) of the Act, rule 19a-1 thereunder and condition 4 below
(each a ``19(a) Notice'') include the disclosure required by rule 19a-1
under the Act and by condition 2(a) below, and that all other written
communications by the Fund or its agents regarding distributions under
the Plan include the disclosure required by condition 3(a) below; and
(ii) require the Fund to keep records that demonstrate its compliance
with all of the conditions of the order and that are necessary for such
Fund to form the basis for, or demonstrate the calculation of, the
amounts disclosed in its 19(a) Notices.
    Applicants' Legal Analysis:
    1. Section 19(b) generally makes it unlawful for any registered
investment company to make long-term capital gains distributions more
than once every twelve months. Rule 19b-1 limits the number of capital
gains dividends, as defined in section 852(b)(3)(C) of the Code
(``distributions''), that a fund may make with respect to any one
taxable year to one, plus a supplemental ``clean up'' distribution made
pursuant to section 855 of the Code not exceeding 10% of the total
amount distributed for the year, plus one additional capital gain
dividend made in whole or in part to avoid the excise tax under section
4982 of the Code.
    2. Section 6(c) provides, in relevant part, that the Commission may
exempt any person or transaction from any provision of the Act to the
extent that such exemption is necessary or appropriate in the public
interest and

consistent with the protection of investors and the purposes fairly
intended by the policy and provisions of the Act.
    3. Applicants state that one of the concerns leading to the
enactment of section 19(b) and adoption of rule 19b-1 was that
shareholders might be unable to distinguish between frequent
distributions of capital gains and dividends from investment income.
Applicants state, however, that rule 19a-1 effectively addresses this
concern by requiring that distributions (or the confirmation of the
reinvestment thereof) estimated to be sourced in part from capital
gains or capital be accompanied by a separate statement showing the
sources of the distribution (e.g., estimated net income, net short-term
capital gains, net long-term capital gains and/or return of capital).
Applicants state that similar information is included in the Funds'
annual reports to shareholders and on the Internal Revenue Service Form
1099 DIV, which is sent to each common and preferred shareholder who
received distributions during a particular year.
    4. Applicants further state that each of the Funds will make the
additional disclosures required by the conditions set forth below, and
each of them has adopted or will adopt compliance policies and
procedures in accordance with rule 38a-1 under the Act to ensure that
all required 19(a) Notices and disclosures are sent to shareholders.
Applicants argue that by providing the information required by section
19(a) and rule 19a-1, and by complying with the procedures adopted
under the Plan and the conditions listed below, each Fund's
shareholders would be provided sufficient information to understand
that their periodic distributions are not tied to a Fund's net
investment income and realized capital gains to date, and may not
represent yield or investment return. Accordingly, Applicants assert
that continuing to subject the Funds to section 19(b) and rule 19b-1
would afford shareholders no extra protection.
    5. Applicants note that section 19(b) and rule 19b-1 also were
intended to prevent certain improper sales practices, including, in
particular, the practice of urging an investor to purchase shares of a
fund on the basis of an upcoming capital gains dividend (``selling the
dividend''), where the dividend would result in an immediate
corresponding reduction in NAV and would be in effect a taxable return
of the investor's capital. Applicants submit that the ``selling the
dividend'' concern should not apply to closed-end investment companies,
such as the Funds, which do not continuously distribute shares.
According to Applicants, if the underlying concern extends to secondary
market purchases of shares of closed-end funds that are subject to a
large upcoming capital gains dividend, adoption of a periodic
distribution plan actually helps minimize the concern by avoiding,
through periodic distributions, any buildup of large end-of-the-year
distributions.
    6. Applicants also note that the common stock of closed-end funds
generally tends to trade in the marketplace at a discount to their
NAVs. Applicants believe that this discount may be reduced if the Funds
are permitted to pay relatively frequent dividends on their common
shares at a consistent rate, whether or not those dividends contain an
element of capital gain.
    7. Applicants assert that the application of rule 19b-1 to a Plan
actually could have an inappropriate influence on portfolio management
decisions. Applicants state that, in the absence of an exemption from
rule 19b-1, the adoption of a periodic distribution plan imposes
pressure on management (i) Not to realize any net long-term capital
gains until the point in the year that the fund can pay all of its
remaining distributions in accordance with rule 19b-1, and (ii) not to
realize any long-term capital gains during any particular year in
excess of the amount of the aggregate pay-out for the year (since as a
practical matter excess gains must be distributed and accordingly would
not be available to satisfy pay-out requirements in following years),
notwithstanding that purely investment considerations might favor
realization of long-term gains at different times or in different
amounts. Applicants assert that by limiting the number of capital gain
distributions that a fund may make with respect to any one year, rule
19b-1 may prevent the normal and efficient operation of a periodic
distribution plan whenever that fund's net realized long-term capital
gains in any year exceed the total of the periodic distributions that
may include such capital gains under the rule.
    8. Applicants also assert that rule 19b-1 may force fixed regular
periodic distributions under a periodic distribution plan to be funded
with returns of capital \2\ (to the extent net investment income and
realized short-term capital gains are insufficient to fund the
distribution), even though net realized long-term capital gains
otherwise would be available. To distribute all of a fund's long-term
capital gains within the limits in rule 19b-1, a fund may be required
to make total distributions in excess of the annual amount called for
by its periodic distribution plan, or to retain and pay taxes on the
excess amount. Applicants assert that the requested order would
minimize these anomalous effects of rule 19b-1 by enabling the Funds to
realize long-term capital gains as often as investment considerations
dictate without fear of violating rule 19b-1.
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    \2\ Returns of capital as used in the application means return
of capital for financial accounting purposes and not for tax
accounting purposes.
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    9. Applicants state that Revenue Ruling 89-81 under the Code
requires that a fund that seeks to qualify as a regulated investment
company under the Code and that has both common stock and preferred
stock outstanding designate the types of income, e.g., investment
income and capital gains, in the same proportion as the total dividends
distributed to each class for the tax year. To satisfy the
proportionate designation requirements of Revenue Ruling 89-81,
whenever a fund has realized a long-term capital gain with respect to a
given tax year, the fund must designate the required proportionate
share of such capital gain to be included in common and preferred stock
dividends. Applicants state that although rule 19b-1 allows a fund some
flexibility with respect to the frequency of capital gains
distributions, a fund might use all of the exceptions available under
the rule for a tax year and still need to distribute additional capital
gains allocated to the preferred stock to comply with Revenue Ruling
89-81.
    10. Applicants assert that the potential abuses addressed by
section 19(b) and rule 19b-1 do not arise with respect to preferred
stock issued by a closed-end fund. Applicants assert that such
distributions are either fixed or determined in periodic auctions by
reference to short-term interest rates rather than by reference to
performance of the issuer and Revenue Ruling 89-81 determines the
proportion of such distributions that are comprised of long-term
capital gains.
    11. Applicants also submit that the ``selling the dividend''
concern is not applicable to preferred stock, which entitles a holder
to no more than a periodic dividend at a fixed rate or the rate
determined by the market, and, like a debt security, is priced based
upon its liquidation value, dividend rate, credit quality and frequency
of payment. Applicants state that investors buy preferred shares for
the purpose of receiving payments at the frequency bargained for, and
do not expect the liquidation value of their shares to change.

    12. Applicants request an order under section 6(c) of the Act
granting an exemption from the provisions of section 19(b) of the Act
and rule 19b-1 thereunder to permit each Fund to distribute periodic
capital gain dividends (as defined in section 852(b)(3)(C) of the Code)
as often as monthly in any one taxable year in respect of its common
shares and as often as specified by or determined in accordance with
the terms thereof in respect of its preferred shares.
    Applicants' Conditions:
    Applicants agree that, with respect to each Fund seeking to rely on
the order, the order will be subject to the following conditions:
    1. Compliance Review and Reporting: The Fund's chief compliance
officer will: (a) Report to the Fund's Board, no less frequently than
once every three months or at the next regularly scheduled quarterly
Board meeting, whether (i) The Fund and its Investment Adviser have
complied with the conditions of the order, and (ii) a material
compliance matter, as defined in rule 38a-1(e)(2) under the Act, has
occurred with respect to such conditions; and (b) review the adequacy
of the policies and procedures adopted by the Board no less frequently
than annually.
    2. Disclosures to Fund Shareholders:
    (a) Each 19(a) Notice disseminated to the holders of the Fund's
common shares, in addition to the information required by section19(a)
and rule 19a-1:
    (i) Will provide, in a tabular or graphical format:
    (1) The amount of the distribution, on a per common share basis,
together with the amounts of such distribution amount, on a per common
share basis and as a percentage of such distribution amount, from
estimated: (A) Net investment income; (B) net realized short-term
capital gains; (C) net realized long-term capital gains; and (D) return
of capital or other capital source;
    (2) the fiscal year-to-date cumulative amount of distributions, on
a per common share basis, together with the amounts of such cumulative
amount, on a per common share basis and as a percentage of such
cumulative amount of distributions, from estimated: (A) net investment
income; (B) net realized short-term capital gains; (C) net realized
long-term capital gains; and (D) return of capital or other capital
source;
    (3) the average annual total return in relation to the change in
NAV for the 5-year period (or, if the Fund's history of operations is
less than five years, the time period commencing immediately following
the Fund's first public offering) ending on the last day of the month
ended immediately prior to the most recent distribution record date
compared to the current fiscal period's annualized distribution rate
expressed as a percentage of NAV as of the last day of the month prior
to the most recent distribution record date; and
    (4) the cumulative total return in relation to the change in NAV
from the last completed fiscal year to the last day of the month prior
to the most recent distribution record date compared to the fiscal
year-to-date cumulative distribution rate expressed as a percentage of
NAV as of the last day of the month prior to the most recent
distribution record date. Such disclosure shall be made in a type size
at least as large and as prominent as the estimate of the sources of
the current distribution; and
    (ii) will include the following disclosure:
    (1) ``You should not draw any conclusions about the Fund's
investment performance from the amount of this distribution or from the
terms of the Fund's Plan'';
    (2) ``The Fund estimates that it has distributed more than its
income and net realized capital gains; therefore, a portion of your
distribution may be a return of capital. A return of capital may occur,
for example, when some or all of the money that you invested in the
Fund is paid back to you. A return of capital distribution does not
necessarily reflect the Fund's investment performance and should not be
confused with `yield' or `income' '' \3\; and
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    \3\ The disclosure in condition 2(a)(ii)(2) will be included
only if the current distribution or the fiscal year-to-date
cumulative distributions are estimated to include a return of
capital.
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    (3) ``The amounts and sources of distributions reported in this
19(a) Notice are only estimates and are not being provided for tax
reporting purposes. The actual amounts and sources of the amounts for
tax reporting purposes will depend upon the Fund's investment
experience during the remainder of its fiscal year and may be subject
to changes based on tax regulations. The Fund will send you a Form
1099-DIV for the calendar year that will tell you how to report these
distributions for federal income tax purposes.''
    Such disclosure shall be made in a type size at least as large as
and as prominent as any other information in the 19(a) Notice and
placed on the same page in close proximity to the amount and the
sources of the distribution.
    (b) On the inside front cover of each report to shareholders under
rule 30e-1 under the Act, the Fund will:
    (i) Describe the terms of the Plan (including the fixed amount or
fixed percentage of the distributions and the frequency of the
distributions);
    (ii) include the disclosure required by condition 2(a)(ii)(1)
above;
    (iii) state, if applicable, that the Plan provides that the Board
may amend or terminate the Plan at any time without prior notice to
Fund shareholders; and
    (iv) describe any reasonably foreseeable circumstances that might
cause the Fund to terminate the Plan and any reasonably foreseeable
consequences of such termination.
    (c) Each report provided to shareholders under rule 30e-1 under the
Act and each prospectus filed with the Commission on Form N-2 under the
Act, will provide the Fund's total return in relation to changes in NAV
in the financial highlights table and in any discussion about the
Fund's total return.
    3. Disclosure to Shareholders, Prospective Shareholders and Third
Parties:
    (a) The Fund will include the information contained in the relevant
19(a) Notice, including the disclosure required by condition 2(a)(ii)
above, in any written communication (other than a communication on Form
1099) about the Plan or distributions under the Plan by the Fund, or
agents that the Fund has authorized to make such communication on the
Fund's behalf, to any Fund common shareholder, prospective common
shareholder or third-party information provider;
    (b) The Fund will issue, contemporaneously with the issuance of any
19(a) Notice, a press release containing the information in the 19(a)
Notice and will file with the Commission the information contained in
such 19(a) Notice, including the disclosure required by condition
2(a)(ii) above, as an exhibit to its next filed Form N-CSR; and
    (c) The Fund will post prominently a statement on its (or the
Investment Adviser's) website containing the information in each 19(a)
Notice, including the disclosure required by condition 2(a)(ii) above,
and will maintain such information on such website for at least 24
months.
    4. Delivery of 19(a) Notices to Beneficial Owners: If a broker,
dealer, bank or other person (``financial intermediary'') holds common
shares issued by the Fund in nominee name, or otherwise, on behalf of a
beneficial owner, the Fund: (a) Will request that the financial
intermediary, or its agent, forward the 19(a) Notice to all beneficial

owners of the Fund's shares held through such financial intermediary;
(b) will provide, in a timely manner, to the financial intermediary, or
its agent, enough copies of the 19(a) Notice assembled in the form and
at the place that the financial intermediary, or its agent, reasonably
requests to facilitate the financial intermediary's sending of the
19(a) Notice to each beneficial owner of the Fund's shares; and (c)
upon the request of any financial intermediary, or its agent, that
receives copies of the 19(a) Notice, will pay the financial
intermediary, or its agent, the reasonable expenses of sending the
19(a) Notice to such beneficial owners.
    5. Additional Board Determinations for Funds Whose Shares Trade at
a Premium:
    If:
    (a) The Fund's common shares have traded on the stock exchange that
they primarily trade on at the time in question at an average premium
to NAV equal to or greater than 10%, as determined on the basis of the
average of the discount or premium to NAV of the Fund's common shares
as of the close of each trading day over a 12-week rolling period (each
such 12-week rolling period ending on the last trading day of each
week); and
    (b) The Fund's annualized distribution rate for such 12-week
rolling period, expressed as a percentage of NAV as of the ending date
of such 12-week rolling period, is greater than the Fund's average
annual total return in relation to the change in NAV over the 2-year
period ending on the last day of such 12-week rolling period; then:
    (i) At the earlier of the next regularly scheduled meeting or
within four months of the last day of such 12-week rolling period, the
Board including a majority of the Independent Trustees:
    (1) Will request and evaluate, and the Fund's Investment Adviser
will furnish, such information as may be reasonably necessary to make
an informed determination of whether the Plan should be continued or
continued after amendment;
    (2) will determine whether continuation, or continuation after
amendment, of the Plan is consistent with the Fund's investment
objective(s) and policies and in the best interests of the Fund and its
shareholders, after considering the information in condition 5(b)(i)(1)
above; including, without limitation:
    (A) Whether the Plan is accomplishing its purpose(s);
    (B) the reasonably foreseeable material effects of the Plan on the
Fund's long-term total return in relation to the market price and NAV
of the Fund's common shares; and
    (C) the Fund's current distribution rate, as described in condition
5(b) above, compared with the Fund's average annual taxable income or
total return over the 2-year period, as described in condition 5(b), or
such longer period as the Board deems appropriate; and
    (3) based upon that determination, will approve or disapprove the
continuation, or continuation after amendment, of the Plan; and
    (ii) The Board will record the information considered by it,
including its consideration of the factors listed in condition
5(b)(i)(2) above, and the basis for its approval or disapproval of the
continuation, or continuation after amendment, of the Plan in its
meeting minutes, which must be made and preserved for a period of not
less than six years from the date of such meeting, the first two years
in an easily accessible place.
    6. Public Offerings: The Fund will not make a public offering of
the Fund's common shares other than:
    (a) A rights offering below NAV to holders of the Fund's common
shares;
    (b) an offering in connection with a dividend reinvestment plan,
merger, consolidation, acquisition, spin-off or reorganization of the
Fund; or
    (c) an offering other than an offering described in conditions 6(a)
and 6(b) above, provided that, with respect to such other offering:
    (i) the Fund's annualized distribution rate for the six months
ending on the last day of the month ended immediately prior to the most
recent distribution record date,\4\ expressed as a percentage of NAV as
of such date, is no more than 1 percentage point greater than the
Fund's average annual total return for the 5-year period ending on such
date; \5\ and
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    \4\ If the Fund has been in operation fewer than six months, the
measured period will begin immediately following the Fund's first
public offering.
    \5\ If the Fund has been in operation fewer than five years, the
measured period will begin immediately following the Fund's first
public offering.
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    (ii) the transmittal letter accompanying any registration statement
filed with the Commission in connection with such offering discloses
that the Fund has received an order under section 19(b) to permit it to
make periodic distributions of long-term capital gains with respect to
its common shares as frequently as twelve times each year, and as
frequently as distributions are specified by or determined in
accordance with the terms of any outstanding preferred shares as such
Fund may issue.
    7. Amendments to Rule 19b-1:
    The requested order will expire on the effective date of any
amendment to rule 19b-1 that provides relief permitting certain closed-
end investment companies to make periodic distributions of long-term
capital gains with respect to their outstanding common shares as
frequently as twelve times each year.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-24587 Filed 9-23-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 173 (Thursday, September 6, 2018)]
[Notices]
[Pages 45268-45271]
[FR Doc No: 2018-19330]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2018-0002]

Changes in Flood Hazard Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: New or modified Base (1-percent annual chance) Flood
Elevations (BFEs), base flood depths,

Special Flood Hazard Area (SFHA) boundaries or zone designations, and/
or regulatory floodways (hereinafter referred to as flood hazard
determinations) as shown on the indicated Letter of Map Revision (LOMR)
for each of the communities listed in the table below are finalized.
Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some
cases the Flood Insurance Study (FIS) reports, currently in effect for
the listed communities. The flood hazard determinations modified by
each LOMR will be used to calculate flood insurance premium rates for
new buildings and their contents.

DATES: Each LOMR was finalized as in the table below.

ADDRESSES: Each LOMR is available for inspection at both the respective
Community Map Repository address listed in the table below and online
through the FEMA Map Service Center at https://msc.fema.gov.

FOR FURTHER INFORMATION CONTACT: Rick Sacbibit, Chief, Engineering
Services Branch, Federal Insurance and Mitigation Administration, FEMA,
400 C Street SW, Washington, DC 20472,<PHONE_NUMBER>, or (email)
[email protected]; or visit the FEMA Map Information
eXchange (FMIX) online at https://www.floodmaps.fema.gov/fhm/fmx_main.html.

SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency
(FEMA) makes the final flood hazard determinations as shown in the
LOMRs for each community listed in the table below. Notice of these
modified flood hazard determinations has been published in newspapers
of local circulation and 90 days have elapsed since that publication.
The Deputy Associate Administrator for Insurance and Mitigation has
resolved any appeals resulting from this notification.
    The modified flood hazard determinations are made pursuant to
section 206 of the Flood Disaster Protection Act of 1973, 42 U.S.C.
4105, and are in accordance with the National Flood Insurance Act of
1968, 42 U.S.C. 4001 et seq., and with 44 CFR part 65.
    For rating purposes, the currently effective community number is
shown and must be used for all new policies and renewals.
    The new or modified flood hazard information is the basis for the
floodplain management measures that the community is required either to
adopt or to show evidence of being already in effect in order to remain
qualified for participation in the National Flood Insurance Program
(NFIP).
    This new or modified flood hazard information, together with the
floodplain management criteria required by 44 CFR 60.3, are the minimum
that are required. They should not be construed to mean that the
community must change any existing ordinances that are more stringent
in their floodplain management requirements. The community may at any
time enact stricter requirements of its own or pursuant to policies
established by other Federal, State, or regional entities.
    This new or modified flood hazard determinations are used to meet
the floodplain management requirements of the NFIP and are used to
calculate the appropriate flood insurance premium rates for new
buildings, and for the contents in those buildings. The changes in
flood hazard determinations are in accordance with 44 CFR 65.4.
    Interested lessees and owners of real property are encouraged to
review the final flood hazard information available at the address
cited below for each community or online through the FEMA Map Service
Center at https://msc.fema.gov.

(Catalog of Federal Domestic Assistance No. 97.022, ``Flood
Insurance.'')

David I. Maurstad,
Deputy Associate Administrator for Insurance and Mitigation, Department
of Homeland Security, Federal Emergency Management Agency.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Chief executive officer       Community map                                       Community
         State and county           Location and case No.         of community             repository             Date of modification           No.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Arkansas: Washington (FEMA Docket   City of Fayetteville   The Honorable Lioneld      Planning Department,  Aug. 13, 2018..................       050216
 No.: B-1829).                       (17-06-3792P).         Jordan, Mayor, City of     125 West Mountain
                                                            Fayetteville, 113 West     Street,
                                                            Mountain Street,           Fayetteville, AR
                                                            Fayetteville, AR 72701.    72701.
Colorado:
    Adams (FEMA Docket No.: B-      City of Commerce City  The Honorable Sean Ford,   City Hall, 7887 East  Aug. 8, 2018...................       080006
     1829).                          (17-08-1290P).         Mayor, City of Commerce    60th Avenue,
                                                            City, 7887 East 60th       Commerce City, CO
                                                            Avenue, Commerce City,     80022.
                                                            CO 80022.
    Adams (FEMA Docket No.: B-      Unincorporated areas   The Honorable Mary Hodge,  Adams County          Aug. 8, 2018...................       080001
     1829).                          of Adams County (17-   Chair, Adams County        Development and
                                     08-1290P).             Board of Commissioners,    Engineering
                                                            4430 South Adams County    Services
                                                            Parkway, 5th Floor,        Department, 4430
                                                            Suite C5000A, Brighton,    South Adams County
                                                            CO 80601.                  Parkway, Brighton,
                                                                                CO 80601.
    Arapahoe (FEMA Docket No.: B-   City of Centennial     The Honorable Cathy Noon,  Southeast Metro       Aug. 3, 2018...................       080315
     1829).                          (18-08-0628P).         Mayor, City of             Stormwater
                                                            Centennial, 13133 East     Authority, 7437
                                                            Arapahoe Road,             South Fairplay
                                                            Centennial, CO 80112.      Street, Centennial,
                                                                                CO 80112.
    Broomfield (FEMA Docket No.: B- City and County of     The Honorable Randy        Engineering           Aug. 3, 2018...................       085073
     1829).                          Broomfield (17-08-     Ahrens, Mayor, City and    Department, 1
                                     1518P).                County of Broomfield, 1    Descombes Drive,
                                                            Descombes Drive,           Broomfield, CO
                                                            Broomfield, CO 80020.      80020.
    El Paso (FEMA Docket No.: B-    Unincorporated areas   The Honorable Darryl       El Paso County Pikes  Aug. 6, 2018...................       080059
     1829).                          of El Paso County      Glenn, President, El       Peak Regional
                                     (18-08-0558P).         Paso County Board of       Building
                                                            Commissioners, 200 South   Department, 2880
                                                            Cascade Avenue, Suite      International
                                                            100, Colorado Springs,     Circle, Colorado
                                                            CO 80903.                  Springs, CO 80910.
    Jefferson (FEMA Docket No.: B-  City of Arvada (17-08- The Honorable Marc         Engineering           Jul. 27, 2018..................       085072
     1825).                          1484P).                Williams, Mayor, City of   Department, 8101
                                                            Arvada, P.O. Box 8101,     Ralston Road,
                                                            Arvada, CO 80001.          Arvada, CO 80001.
    Weld (FEMA Docket No.: B-1829)  City of Brighton (17-  Mr. Philip Rodriguez,      City Hall, 500 South  Jul. 26, 2018..................       080004
                                     08-1256P).             Manager, City of           4th Avenue,
                                                            Brighton, 500 South 4th    Brighton, CO 80601.
                                                            Avenue, Brighton, CO
                                                            80601.

    Weld (FEMA Docket No.: B-1829)  Unincorporated areas   The Honorable Steve        Weld County           Jul. 26, 2018..................       080266
                                     of Weld County (17-    Moreno, Chairman, Weld     Commissioner's
                                     08-1256P).             County Board of            Office, 915 10th
                                                            Commissioners, P.O. Box    Street, Greeley, CO
                                                            758, Greeley, CO 80632.    80632.
Florida:
    Bay (FEMA Docket No.: B-1829).  Unincorporated areas   The Honorable William T.   Bay County Planning   Aug. 1, 2018...................       120004
                                     of Bay County (17-04-  Dozier, Chairman, Bay      and Zoning
                                     2041P).                County Board of            Division, 840 West
                                                            Commissioners, 840 West    11th Street, Panama
                                                            11th Street, Panama        City, FL 32401.
                                                            City, FL 32401.
    Collier (FEMA Docket No.: B-    Unincorporated areas   The Honorable Andy Solis,  Collier County        Aug. 7, 2018...................       120067
     1829).                          of Collier County      Chairman, Collier County   Growth Management
                                     (18-04-2026P).         Board of Commissioners,    Department, 2800
                                                            3299 Tamiami Trail East,   North Horseshoe
                                                            Suite 303, Naples, FL      Drive, Naples, FL
                                                            34112.                     34104.
    Duval (FEMA Docket No.: B-      City of Jacksonville   The Honorable Lenny        Development Services  Aug. 8, 2018...................       120077
     1829).                          (17-04-7972P).         Curry, Mayor, City of      Division, 214 North
                                                            Jacksonville, 117 West     Hogan Street, Room
                                                            Duval Street, Suite 400,   2100, Jacksonville,
                                                            Jacksonville, FL 32202.    FL 32202.
    Manatee (FEMA Docket No.: B-    Unincorporated areas   The Honorable Priscilla    Manatee County        Aug. 3, 2018...................       120153
     1829).                          of Manatee County      Trace, Chair, Manatee      Building and
                                     (18-04-2274P).         County Board of            Development
                                                            Commissioners, P.O. Box    Services
                                                            1000, Bradenton, FL        Department, 1112
                                                            34206.                     Manatee Avenue
                                                                                West, Bradenton, FL
                                                                                34205.
    Monroe (FEMA Docket No.: B-     City of Marathon (17-  The Honorable Michelle     Planning Department,  Aug. 9, 2018...................       120681
     1829).                          04-7377P).             Coldiron, Mayor, City of   9805 Overseas
                                                            Marathon, 9805 Overseas    Highway, Marathon,
                                                            Highway, Marathon, FL      FL 33050.
                                                            33050.
    Monroe (FEMA Docket No.: B-     Village of Islamorada  The Honorable Chris        Building Department,  Aug. 3, 2018...................       120424
     1829).                          (18-04-2264P).         Sante, Mayor, Village of   86800 Overseas
                                                            Islamorada, 86800          Highway,
                                                            Overseas Highway,          Islamorada, FL
                                                            Islamorada, FL 33036.      33036.
    Orange (FEMA Docket No.: B-     City of Orlando (18-   The Honorable Buddy Dyer,  Permitting Services   Jul. 30, 2018..................       120186
     1829).                          04-1385P).             Mayor, City of Orlando,    Department, 400
                                                            400 South Orange Avenue,   South Orange
                                                            Orlando, FL 32801.         Avenue, Orlando, FL
                                                                                32801.
    Orange (FEMA Docket No.: B-     Unincorporated areas   The Honorable Teresa       Orange County         Jul. 30, 2018..................       120179
     1829).                          of Orange County (18-  Jacobs, Mayor, Orange      Stormwater
                                     04-1385P).             County, 201 South          Management
                                                            Rosalind Avenue, 5th       Department, 4200
                                                            Floor, Orlando, FL 32801.  South John Young
                                                                                Parkway, Orlando,
                                                                                FL 32839.
    Osceola (FEMA Docket No.: B-    Unincorporated areas   The Honorable Viviana      Osceola County        Aug. 10, 2018..................       120189
     1829).                          of Osceola County      Janer, Chair, Osceola      Stormwater
                                     (17-04-6937P).         County Board of            Department, 1
                                                            Commissioners, 1           Courthouse Square,
                                                            Courthouse Square, Suite   Suite 3100,
                                                            4700, Kissimmee, FL        Kissimmee, FL 34741.
                                                            34741.
    Volusia (FEMA Docket No.: B-    City of Daytona Beach  The Honorable Derrick      Utilities             Jul. 27, 2018..................       125099
     1825).                          (17-04-3592P).         Henry, Mayor, City of      Department, 125
                                                            Daytona Beach, 301 South   Basin Street,
                                                            Ridgewood Avenue,          Daytona Beach, FL
                                                            Daytona Beach, FL 32114.   32114.
    Volusia (FEMA Docket No.: B-    City of Ormond Beach   Ms. Joyce Shanahan,        City Hall, 22 South   Aug. 7, 2018...................       125136
     1829).                          (18-04-1321P).         Manager, City of Ormond    Beach Street,
                                                            Beach, 22 South Beach      Ormond Beach, FL
                                                            Street, Ormond Beach, FL   32174.
                                                            32174.
    Volusia (FEMA Docket No.: B-    Unincorporated areas   The Honorable Ed Kelley,   Volusia County        Jul. 27, 2018..................       125155
     1825).                          of Volusia County      Chairman, Volusia County   Building and Zoning
                                     (17-04-3592P).         Council, 123 West          Division, 123 West
                                                            Indiana Avenue, Deland,    Indiana Avenue,
                                                            FL 32720.                  Deland, FL 32720.
    Volusia (FEMA Docket No.: B-    Unincorporated areas   The Honorable Ed Kelley,   Volusia County        Aug. 7, 2018...................       125155
     1829).                          of Volusia County      Chairman, Volusia County   Building and Zoning
                                     (18-04-1321P).         Council, 123 West          Department, 123
                                                            Indiana Avenue, DeLand,    West Indiana
                                                            FL 32720.                  Avenue, DeLand, FL
                                                                                32720.
    Wakulla (FEMA Docket No.: B-    Unincorporated areas   The Honorable Ralph        Wakulla County        Jul. 27, 2018..................       120315
     1829).                          of Wakulla County      Thomas, Chairman,          Planning and Zoning
                                     (17-04-6262P).         Wakulla County Board of    Department, 3095
                                                            Commissioners, 3093        Crawfordville
                                                            Crawfordville Highway,     Highway,
                                                            Crawfordville, FL 32327.   Crawfordville, FL
                                                                                32327.
Georgia: Effingham (FEMA Docket     Unincorporated areas   The Honorable Wesley       Effingham County      Jul. 26, 2018..................       130076
 No.: B-1829).                       of Effingham County    Corbitt, Chairman,         Planning and
                                     (17-04-6088P).         Effingham County Board     Engineering
                                                            of Commissioners, 601      Department, 601
                                                            North Laurel Street,       North Laurel
                                                            Springfield, GA 31329.     Street,
                                                                                Springfield, GA
                                                                                31329.
Illinois: Winnebago (FEMA Docket    Village of Machesney   Mr. Tim Savage,            Community             Aug. 3, 2018...................       171009
 No.: B-1829).                       Park (17-05-3855P).    Administrator, Village     Development
                                                            of Machesney Park, 300     Department, 300
                                                            Roosevelt Road,            Roosevelt Road,
                                                            Machesney Park, IL 61115.  Machesney Park, IL
                                                                                61115.
Massachusetts: Essex (FEMA Docket   City of Lynn (18-01-   The Honorable Thomas M.    Inspectional          Aug. 13, 2018..................       250088
 No.: B-1834).                       0336P).                McGee, Mayor, City of      Services
                                                            Lynn, 3 City Hall          Department, 3 City
                                                            Square, Room 306, Lynn,    Hall Square, Room
                                                            MA 01901.                  401, Lynn, MA 01901.
Montana: Lake (FEMA Docket No.: B-  Unincorporated areas   The Honorable Gale         Lake County           Aug. 3, 2018...................       300155
 1829).                              of Lake County (18-    Decker, Chairman, Lake     Courthouse, 106 4th
                                     08-0356P).             County Board of            Avenue East,
                                                            Commissioners, 106 4th     Polson, MT 59860.
                                                            Avenue East, Room 211,
                                                            Polson, MT 59860.
Oklahoma: Oklahoma (FEMA Docket     City of Edmond (18-06- The Honorable Charles      Engineering           Aug. 9, 2018...................       400252
 No.: B-1829).                       0827P).                Lamb, Mayor, City of       Department,
                                                            Edmond, P.O. Box 2970,     Stormwater
                                                            Edmond, OK 73034.          Management, 10
                                                                                South Littler
                                                                                Avenue, Edmond, OK
                                                                                73034.
Pennsylvania:

    Lancaster (FEMA Docket No.: B-  City of Lancaster (17- The Honorable Danene       City Hall, 120 North  Aug. 3, 2018...................       420552
     1825).                          03-2630P).             Sorace, Mayor, City of     Duke Street,
                                                            Lancaster, P.O. Box        Lancaster, PA 17608.
                                                            1599, Lancaster, PA
                                                            17608.
    Lancaster (FEMA Docket No.: B-  Township of East       The Honorable David        Township Hall, 2250   Aug. 3, 2018...................       421771
     1825).                          Lampeter (17-03-       Buckwalter, Chairman,      Old Philadelphia
                                     2630P).                Township of East           Pike, Lancaster, PA
                                                            Lampeter Board of          17602.
                                                            Supervisors, 2250 Old
                                                            Philadelphia Pike,
                                                            Lancaster, PA 17602.
    Lancaster (FEMA Docket No.: B-  Township of Lancaster  Mr. William M. Laudien,    Municipal Office,     Aug. 3, 2018...................       420553
     1825).                          (17-03-2630P).         Manager, Township of       1240 Maple Avenue,
                                                            Lancaster, 1240 Maple      Lancaster, PA 17603.
                                                            Avenue, Lancaster, PA
                                                            17603.
    Lancaster (FEMA Docket No.: B-  Township of Manheim    Mr. Sean P. Molchany,      Planning and Zoning   Aug. 3, 2018...................       420556
     1825).                          (17-03-2630P).         Manager-Secretary,         Department, 1840
                                                            Township of Manheim,       Municipal Drive,
                                                            1840 Municipal Drive,      Lancaster, PA 17601.
                                                            Lancaster, PA 17601.
Texas:
    Bexar (FEMA Docket No.: B-      City of San Antonio    The Honorable Ron          Transportation and    Aug. 6, 2018...................       480045
     1829).                          (18-06-1577X).         Nirenberg, Mayor, City     Capital
                                                            of San Antonio, P.O. Box   Improvements
                                                            839966, San Antonio, TX    Department,
                                                            78283.                     Stormwater
                                                                                Division, 1901
                                                                                South Alamo Street,
                                                                                2nd Floor, San
                                                                                Antonio, TX 78204.
    Dallas (FEMA Docket No.: B-     City of Irving (17-06- The Honorable Rick         Capital Improvement   Jul. 30, 2018..................       480180
     1829).                          4073P).                Stopfer, Mayor, City of    Program Department,
                                                            Irving, 825 West Irving    Engineering
                                                            Boulevard, Irving, TX      Section, 825 West
                                                            75060.                     Irving Boulevard,
                                                                                Irving, TX 75060.
    Denton (FEMA Docket No.: B-     Unincorporated areas   The Honorable Mary Horn,   Denton County Mary    Aug. 1, 2018...................       480774
     1829).                          of Denton County (17-  Denton County Judge, 110   and Jim Horn
                                     06-4327P).             West Hickory Street, 2nd   Government Center,
                                                            Floor, Denton, TX 76201.   1505 East McKinney
                                                                                Street, Suite 175,
                                                                                Denton, TX 72509.
    Harris (FEMA Docket No.: B-     Unincorporated areas   The Honorable Edward M.    Harris County Permit  Jul. 30, 2018..................       480287
     1829).                          of Harris County (18-  Emmett, Harris County      Department, 10555
                                     06-0478P).             Judge, 1001 Preston        Northwest Freeway,
                                                            Street, Suite 911,         Suite 120, Houston,
                                                            Houston, TX 77002.         TX 77092.
    Johnson (FEMA Docket No.: B-    City of Burleson (17-  The Honorable Ken          Public Works          Aug. 10, 2018..................       485459
     1829).                          06-2805P).             Shetter, Mayor, City of    Department, 725
                                                            Burleson, 141 West         Southeast John
                                                            Renfro Street, Burleson,   Jones Drive,
                                                            TX 76028.                  Burleson, TX 76028.
Virginia:
    Fauquier (FEMA Docket No.: B-   Unincorporated areas   Mr. Paul S. McCulla,       Fauquier County       Aug. 9, 2018...................       510055
     1834).                          of Fauquier County     Fauquier County            Zoning and
                                     (17-03-2627P).         Administrator, 10 Hotel    Development
                                                            Street, Suite 204,         Services
                                                            Warrenton, VA 20186.       Department, 29
                                                                                Ashby Street, Suite
                                                                                310, Warrenton, VA
                                                                                20186.
    Loudoun (FEMA Docket No.: B-    Unincorporated areas   Mr. Tim Hemstreet,         Loudoun County        Aug. 10, 2018..................       510090
     1834).                          of Loudoun County      Loudoun County             Government Center,
                                     (17-03-2543P).         Administrator, 1           1 Harrison Street
                                                            Harrison Street,           Southeast,
                                                            Southeast, Leesburg, VA    Leesburg, VA 20175.
                                                            20175.
    Stafford (FEMA Docket No.: B-   Unincorporated areas   Mr. Thomas C. Foley,       Stafford County       Jul. 30, 2018..................       510154
     1829).                          of Stafford County     Stafford County            Department of Code
                                     (17-03-2523P).         Administrator, 1300        Administration,
                                                            Courthouse Road,           1300 Courthouse
                                                            Stafford, VA 22554.        Road, Stafford, VA
                                                                                22554.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. 2018-19330 Filed 9-5-18; 8:45 am]
 BILLING CODE 9110-12-P


[Federal Register: February 21, 2007 (Volume 72, Number 34)]
[Rules and Regulations]
[Page 7826-7829]
[DOCID:fr21fe07-5]

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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[Docket No. EPA-R02-OAR-2006-0685, FRL-8275-5]

Approval and Promulgation of Implementation Plans; New York;
Motor Vehicle Enhanced Inspection and Maintenance Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The EPA is approving a revision to the State Implementation
Plan (SIP) for New York's motor vehicle enhanced inspection and
maintenance (I/M) program which includes the adoption of a statewide
On-Board Diagnostic (OBD) program. New York has made revisions to Title
6 of the New York Codes, Rules and Regulations (NYCRR), Part 217,
``Motor Vehicle Enhanced Inspection and Maintenance Program
Requirements,'' and Title 15 NYCRR Part 79, ``Motor Vehicle Inspection
Regulations,'' to comply with EPA regulations and to improve
performance of its I/M program. The intended effect of this action is
to maintain consistency between the State-adopted rules and the
federally approved SIP and to approve a control strategy that will
result in emission reductions that will help achieve attainment of the
national ambient air quality standard for ozone.

DATES: Effective Date: This rule will be effective March 23, 2007.

ADDRESSES: EPA has established a docket for this action under the
Federal Docket Management System (FDMS) which replaces the Regional
Materials in EDOCKET (RME) docket system. The new FDMS is located at
http://www.regulations.gov and the docket ID for this action is EPA-R02-OAR-

2006-0685. All documents in the docket are listed in the FDMS index.
Publicly available docket materials are available either electronically
in FDMS or in hard copy at the Environmental Protection Agency, Region
2 Office, Air Programs Branch, 290 Broadway, 25th Floor, New York, New
York 10007-1866. Copies of the documents relevant to this action are
also available for public inspection during normal business hours, by
appointment at the Air and Radiation Docket and Information Center,
Environmental Protection Agency, Room 3334, 1301 Constitution Avenue,
NW., Washington, DC; and the New York State Department of Environmental
Conservation, Division of Air Resources, 625 Broadway, Albany, New York
12233.

FOR FURTHER INFORMATION CONTACT: Kirk J. Wieber, Air Programs Branch,
Environmental Protection Agency, 290 Broadway, 25th Floor, New York,
New York 10007-1866,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
    A. What Are the Clean Air Act Requirements for I/M Programs?
    B. What Did New York Include in This Latest Submittal?
    C. What Action Is EPA Taking Today?
II. What Comments Did EPA Receive in Response to Its Proposal?
III. Summary of Conclusions
IV. Statutory and Executive Order Reviews

I. Background

A. What Are the Clean Air Act Requirements for I/M Programs?

    The Clean Air Act (CAA) requires certain states to implement an
enhanced inspection and maintenance (I/M) program to detect gasoline-
fueled motor vehicles which exhibit excessive emissions of certain air
pollutants. The enhanced I/M program is intended to help states meet
federal health-based national ambient air quality standards (NAAQS) for
ozone and carbon monoxide by requiring vehicles with excess emissions
to have their emissions control systems repaired. Section 182 of the
CAA requires I/M programs in those areas of the nation that are most
impacted by carbon monoxide and ozone pollution. Section 184 of the CAA
also created an ``Ozone Transport Region'' (OTR) which geographically
includes the 11 states from Maryland to Maine (including all of New
York State) and the District of Columbia Consolidated Metropolitan
Statistical Area. Depending on the severity of the nonattainment
designation(s) and/or geographic location within the OTR, EPA's
regulation under 40 CFR 51.350 outlines the appropriate motor vehicle
I/M requirements.
    As a result of the 1-hr ozone nonattainment designations, New York
State's 62 counties were divided into two separate I/M areas. The
``downstate'' 9-county New York Metropolitan Area (NYMA), which
includes New York City (Bronx, Kings, New York, Richmond, and Queens
Counties), Long Island (Nassau and Suffolk Counties), and Westchester
and Rockland Counties, has been classified as a high enhanced I/M area.
On January 1, 1998, New York began implementing a high enhanced I/M
program (New York refers to this program as its NYTEST program) in the
NYMA. By May 1999, this enhanced I/M program was fully functional for
the entire NYMA.
    The remaining 53 ``Upstate'' counties of New York State were
classified as a low enhanced I/M area. Since 1998, the Upstate I/M area
featured annual anti-tampering visual inspections including a gas cap
presence check.
    Since all of New York State is included within the OTR, additional
I/M requirements are mandated in the more populated counties of Upstate
New York pursuant to 40 CFR 51.350(a). Section 51.350(a)(1) provides
that,

``States or areas within an ozone transport region shall implement
enhanced I/M programs in any metropolitan statistical area (MSA), or
portion of an MSA, within the state or area with a 1990 population of
100,000 or more as defined by the Office of Management and Budget (OMB)
regardless of the area's attainment classification.'' Further, section
51.350(b)(1) provides that, ``[i]n an ozone transport region, the
program shall entirely cover all counties within subject MSAs or
subject portions of MSAs, as defined by OMB in 1990, except largely
rural counties having a population density of less than 200 persons per
square mile based on the 1990 Census can be excluded except that at
least 50 percent of the MSA population must be included in the program*
* *.'' In effect, 16 of the 53 counties located in Upstate New York are
required to have low enhanced I/M. The 16 counties are Albany, Broome,
Chautauqua, Dutchess, Erie, Monroe, Niagara, Oneida, Onondaga, Orange,
Putnam, Rensselaer, Schenectady, Saratoga, Warren and Washington.
    On April 5, 2001, EPA published in the Federal Register
``Amendments to Vehicle Inspection and Maintenance Program Requirements
Incorporating the On-Board Diagnostics Check'' (66 FR 18156). The
revised I/M rule requires that electronic checks of the On-Board
Diagnostics (OBD) system on model year 1996 and newer OBD-equipped
motor vehicles be conducted as part of states' motor vehicle I/M
programs. OBD is part of the sophisticated vehicle powertrain
management system and is designed to detect engine and transmission
problems that might cause vehicle emissions to exceed allowable limits.
OBD is the subject of this proposed rulemaking action.
    The OBD system monitors the status of up to 11 emission control
related subsystems by performing either continuous or periodic
functional tests of specific components and vehicle conditions. The
first three testing categories--misfire, fuel trim, and comprehensive
components--are continuous, while the remaining eight only run after a
certain set of conditions has been met. The algorithms for running
these eight periodic monitors are unique to each manufacturer and
involve such things as ambient temperature as well as driving
conditions. Most vehicles will have at least five of the eight
remaining monitors (catalyst, evaporative system, oxygen sensor, heated
oxygen sensor, and exhaust gas recirculation or EGR system) while the
remaining three (air conditioning, secondary air, and heated catalyst)
are not necessarily applicable to all vehicles. When a vehicle is
scanned at an OBD-I/M test site, these monitors can appear as either
``ready'' (meaning the monitor in question has been evaluated), ``not
ready'' (meaning the monitor has not yet been evaluated), or ``not
applicable'' (meaning the vehicle is not equipped with the component
monitor in question).
    The OBD system is also designed to fully evaluate the vehicle
emissions control system. If the OBD system detects a problem that may
cause vehicle emissions to exceed 1.5 times the Federal Test Procedure
(FTP) standards, then the Malfunction Indicator Light (MIL) is
illuminated. By turning on the MIL, the OBD system notifies the vehicle
operator that an emission-related fault has been detected, and the
vehicle should be repaired as soon as possible thus reducing the
harmful emissions contributed by that vehicle.
    EPA's revised OBD I/M rule applies to only those areas that are
required to implement I/M programs under the CAA, which include the
NYMA and certain counties in Upstate New York. This rule established a
deadline of January 1, 2002 for states to begin performing OBD checks
on 1996 and newer model OBD-equipped vehicles and to require repairs to
be performed on those vehicles with malfunctions identified by the OBD
check.
    EPA's revised I/M rule also provided several options to states to
delay implementation of OBD testing, under certain circumstances. An
extension of the deadline for states to begin conducting mandatory OBD
checks is permissible provided the state making the request can show
just cause to EPA for a delay and that the revised implementation date
represents ``the best the state can reasonably do'' (66 FR 18159).
EPA's final rule identifies factors that may serve as a possible
justification for states considering making a request to the EPA to
delay implementation of OBD I/M program checks beyond the January 2002
deadline. Potential factors justifying such a delay include contractual
impediments, hardware or software deficiencies, data management
software deficiencies, the need for additional training for the testing
and repair industries, and the need for public education or outreach.
    On May 7, 2001 (66 FR 22922), EPA fully approved New York's
enhanced I/M program as it applies to NYMA and included the state's
performance standard modeling as meeting the applicable requirements of
the CAA. However, the OBD component of that program was not being
implemented at that time and therefore was not approved by EPA as
satisfying a fully operational OBD program. Additional information on
EPA's final approval of New York's enhanced I/M program can be found in
EPA's May 7, 2001 final approval notice.

B. What Did New York Include in This Latest Submittal?

    On April 4, 2002, the New York State Department of Environmental
Conservation (NYSDEC) requested a formal extension of the OBD I/M test
deadline, per EPA's I/M requirement rule. New York's request lists
contractual impediments, hardware and software deficiencies and data
management deficiencies as the factors for its request for an extension
of the OBD testing deadline. Based upon the reasons listed by New York,
EPA believed that the State's delayed implementation was justified.
    On February 27, 2006, NYSDEC submitted to EPA a revision to its SIP
which incorporates OBD system requirements in the NYMA and the 53
counties located in Upstate New York. New York's SIP revision includes
revisions to the NYSDEC regulation found at Title 6 of the New York
Codes, Rules and Regulations (NYCRR), Part 217, ``Motor Vehicle
Enhanced Inspection and Maintenance Program Requirements,'' and the New
York State Department of Motor Vehicles (NYSDMV) regulation found at
Title 15 NYCRR Part 79, ``Motor Vehicle Inspection Regulations,'' and a
performance standard modeling demonstration. On October 12, 2006 (71 FR
60098), EPA proposed to approve New York's revised enhanced I/M program
which includes the adoption of a statewide OBD program. For a detailed
discussion on the content and requirements of the revisions to New
York's regulations, the reader is referred to EPA's proposed rulemaking
action.

C. What Action Is EPA Taking Today?

    The EPA is approving a revision to the New York SIP pertaining to
New York's enhanced I/M program which incorporates OBD testing
requirements and procedures in the NYMA and the 53 counties located in
Upstate New York (New York refers to this program as the New York
Vehicle Inspection Program (NYVIP)). EPA is also repealing Title 6 of
the NYCRR, Subpart 217-2, ``Motor Vehicle NY 91 Inspection and
Maintenance Program Requirements'' and Title 15 NYCRR Part 79, Section
26, which previously included exhaust emission standards and
inspection/repair procedures that are no longer

being relied upon by or necessary for New York State to implement as
part of its enhanced I/M program.

II. What Comments Did EPA Receive in Response to Its Proposal?

    In response to EPA's October 12, 2006 proposed rulemaking action,
EPA received no comments.

III. Summary of Conclusions

    EPA's review of the materials submitted indicates that New York has
revised its I/M program in accordance with the requirements of the CAA,
40 CFR part 51 and all of EPA's technical requirements for an
approvable OBD program. EPA is approving the revisions to the NYSDEC
regulation Title 6 of the NYCRR, Part 217, ``Motor Vehicle Enhanced
Inspection and Maintenance Program Requirements,'' specifically,
Subpart 217-1, ``Motor Vehicle Enhanced Inspection and Maintenance
Program Requirements'' and Subpart 217-4, ``Inspection and Maintenance
Program Audits,'' effective on October 30, 2002, and the New York State
Department of Motor Vehicles regulation Title 15 NYCRR Part 79 ``Motor
Vehicle Inspection Regulations,'' specifically, Sections 79.1-79.15,
79.17, 79.20, 79.21, 79.24, and 79.25, effective on May 4, 2005. The
CAA gives states the discretion in program planning to implement
programs of the state's choosing as long as necessary emission
reductions are met. EPA is also approving New York's performance
standard modeling demonstration, which reflects the State's I/M program
as it is currently implemented in the 53 counties located in Upstate
New York (NYVIP), as meeting the required EPA alternate low enhanced I/
M performance standards.

IV. Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget. For this
reason, this action is also not subject to Executive Order 13211,
``Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action
merely approves state law as meeting federal requirements and imposes
no additional requirements beyond those imposed by state law.
Accordingly, the Administrator certifies that this rule will not have a
significant economic impact on a substantial number of small entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because
this rule approves pre-existing requirements under state law and does
not impose any additional enforceable duty beyond that required by
state law, it does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4).
    This rule also does not have tribal implications because it will
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, as specified by Executive Order 13175 (65
FR 67249, November 9, 2000). This action also does not have federalism
implications because it does not have substantial direct effects 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, as specified in Executive Order 13132 (64
FR 43255, August 10, 1999). This action merely approves a state rule
implementing a federal standard, and does not alter the relationship or
the distribution of power and responsibilities established in the Act.
This rule also is not subject to Executive Order 13045 ``Protection of
Children from Environmental Health Risks and Safety Risks'' (62 FR
19885, April 23, 1997), because it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Act. In this
context, in the absence of a prior existing requirement for the State
to use voluntary consensus standards (VCS), EPA has no authority to
disapprove a SIP submission for failure to use VCS. It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the Act. Thus, the requirements of section
12(d) of the National Technology Transfer and Advancement Act of 1995
(15 U.S.C. 272 note) do not apply. This rule does not impose an
information collection burden under the provisions of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the Act, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by April 23, 2007. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule for the purposes of judicial review nor does
it extend the time within which a petition for judicial review may be
filed, and shall not postpone the effectiveness of such rule or action.
This action may not be challenged later in proceedings to enforce its
requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Nitrogen
dioxide, Ozone, Reporting and recordkeeping requirements, Sulfur
oxides, Volatile organic compounds.

    Dated: January 23, 2007.
Alan J. Steinberg,
Regional Administrator, Region 2.

0
Part 52, chapter I, title 40 of the Code of Federal Regulations is
amended as follows:

PART 52--[AMENDED]

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

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

Subpart HH--New York

0
2. Section 52.1670 is amended by adding new paragraph (c)(111) to read
as follows:

Sec.  52.1670  Identification of plans.

* * * * *
    (c) * * *
* * * * *
    (111) Revisions to the State Implementation Plan submitted on
February 27, 2006, by the New York State Department of Environmental
Conservation, which consist of administrative changes to its motor
vehicle enhanced inspection and maintenance (I/M) program which
includes the adoption of a statewide On-Board Diagnostic (OBD) program.

    (i) Incorporation by reference:
    (A) Regulation Title 6 of the New York Codes, Rules and Regulations
(NYCRR), Part 217, ``Motor Vehicle Enhanced Inspection and Maintenance
Program Requirements,'' specifically, Subpart 217-1, ``Motor Vehicle
Enhanced Inspection and Maintenance Program Requirements'' and Subpart
217-4, ``Inspection and Maintenance Program Audits,'' effective on
October 30, 2002, and the New York State Department of Motor Vehicles
regulation Title 15 NYCRR Part 79 ``Motor Vehicle Inspection
Regulations,'' specifically, Sections 79.1-79.15, 79.17, 79.20, 79.21,
79.24, and 79.25, effective on May 4, 2005.

0
3. In 52.1679, the table is amended by revising the entries under Title
6 for Part 217 and Title 15 for Part 79 to read as follows:

Sec.  52.1679  EPA-approved New York State regulations.

----------------------------------------------------------------------------------------------------------------
                                              State
        New York State regulation           effective    Latest EPA  approval date             Comments
                                               date
----------------------------------------------------------------------------------------------------------------
Title 6:

                                                  * * * * * * *
Part 217, Motor Vehicle Emissions:
    Subpart 217-1, Motor Vehicle Enhanced     10/30/02  2/21/07....................
     Inspection and Maintenance Program                 [Insert FR page citation]..
     Requirements.
    Subpart 217-4, Inspection and             10/30/02  2/21/07....................
     Maintenance Program Audits.                        [Insert FR page citation]..

                                                  * * * * * * *
Title 15:
    Part 79, ``Motor Vehicle Inspection         5/4/05  2/21/07....................
     Regulations'' Sections 79.1-79.15,                 [Insert FR page citation]..
     79.17, 79.20, 79.21, 79.24, 79.25.

                                                  * * * * * * *
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[FR Doc. E7-2801 Filed 2-20-07; 8:45 am]

BILLING CODE 6560-50-P