[Federal Register: July 23, 2007 (Volume 72, Number 140)]
[Notices]
[Page 40182-40184]
[DOCID:fr23jy07-83]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56086; File No. SR-BSE-2007-36]

Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Permit the Listing and Trading of Quarterly Options Series

July 17, 2007.
    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 July 17, 2007, the Boston Stock Exchange, Inc. (``Exchange'' or
``BSE'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the Exchange.
The Exchange has designated the proposed rule change as a non-
controversial rule change pursuant to Section 19(b)(3)(A)(iii) of the
Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposed
rule change effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the rules of the Boston Options
Exchange (``BOX''), including Rule Chapter I Section 1
(``Definitions''); Chapter IV Section 6 (``Series of Options Contracts
Open for Trading''); Chapter VII Section 1 (``Exercise of Options
Contracts''); and Chapter XIV, Section 2 (``Definitions''), Section 5
(``Position Limits for Broad-Based Index Options''), Section 6
(``Position Limits for Industry Index Options''), and Supplemental
Material to Section 10 (``Terms of Index Options Contracts'') to
establish a pilot program (``BOX Pilot'') which would accommodate the
listing and trading of options series that may be opened for trading on
any business day and that expire at the close of business on the last
business day of a calendar quarter (``Quarterly Options'' or
``Quarterly Options Series''). The pilot program (the ``BOX Pilot'')
will commence the day the Exchange first initiates trading in a
Quarterly Options Series and will continue through July 10, 2008.\5\
The text of the proposed rule change is available on the Exchange's Web
site (http://www.bostonoptions.com), at the Exchange's principal

office, and at the Commission's Public Reference Room.
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    \5\ The BOX proposal is substantially similar to a proposal by
the Philadelphia Stock Exchange (``Phlx'') to list Quarterly Options
Series on a pilot basis through July 24, 2007. See Securities
Exchange Act Release No. 55301 (February 15, 2007), 72 FR 8238
(February 23, 2007) (SR-Phlx-2007-08) (notice of filing and
immediate effectiveness). The Commission has approved a
substantially similar Quarterly Options Series pilots on behalf of
the International Securities Exchange. See Securities Exchange Act
Release No. 54113 (July 7, 2006), 71 FR 39694 (July 13, 2006) (SR-
ISE-2006-24) (order approving proposal). In addition, the Chicago
Board Options Exchange, NYSE Arca, and the American Stock Exchange
have filed substantially similar proposals. See Securities Exchange
Act Releases No. 54123 (July 11, 2006), 71 FR 40558 (July 17, 2006)
(SR-CBOE-2006-65) (notice of filing and immediate effectiveness);
54166 (July 18, 2006), 71 FR 42151 (July 25, 2006) (SR-NYSEArca-
2006-45) (notice of filing and immediate effectiveness); and 54137
(July 12, 2006), 71 FR 41283 (July 20, 2006) (SR-Amex-2006-67)
(notice of filing and immediate effectiveness). The Phlx proposal
also incorporates certain changes made by CBOE to its version of the
Quarterly Options Series pilot (e.g., limiting Quarterly Options
Series based on an underlying index to five strike prices above or
below the value of the index). See Securities Exchange Act Release
No. 54762 (November 16, 2006), 71 FR 67663 (November 22, 2006) (SR-
CBOE-2006-93) (notice of filing and order granting accelerated
approval).
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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
Rules, including BOX Rules Chapter I Section 1, Chapter IV Section 6,
Chapter VII Section 1, and Chapter XIV Section(s) 2, 5, 6, and
Supplemental Material to Section 10, to establish the Pilot Program,
which would accommodate the listing of Quarterly Options Series that
would expire at the close of business on the last business day of a
calendar quarter.
    Quarterly Options Series could be opened on any approved options
class \6\ on a business day (``Quarterly Options Opening Date'') and
would expire at the close of business on the last business day of a
calendar quarter (``Quarterly Options Expiration Date''). The Exchange
would list series that expire at the end of the next four consecutive
calendar quarters, as well as the fourth quarter of the next calendar
year.
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    \6\ Quarterly Options Series may be opened in options on indexes
or options on ETFs that satisfy the applicable listing criteria
under BOX rules.
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    Quarterly Options Series listed on approved options classes would
be P.M.-settled and, in all other respects, would settle in the same
manner as do the monthly expiration series in the same options class.
    The proposed rule change would allow BOX to open up to five
currently listed options classes that are either options on exchange
traded funds (``ETFs'') or options on indexes. With respect to
quarterly options on ETFs, the strike price for each series would be
fixed at a price per share, with at least two strike prices above and
two strike prices below the approximate value of the underlying
security at about the time that a Quarterly Options Series is opened
for trading on BOX. BOX may list strike prices for a Quarterly Options
Series based on an underlying ETF that are within $5 from the closing
price of the underlying security on the preceding trading day.
    With respect to Quarterly Options Series based on an underlying
index, the proposed rule change would allow BOX to list not more than
five strike prices above and not more than five strike prices below the
value of the underlying index at the time the series is initially
listed.
    The proposal would permit BOX to open for trading additional
Quarterly Options Series of the same class when the Exchange deems it
necessary to maintain an orderly market, to meet customer demand, or
when the current market price of the underlying security or index moves
substantially from the exercise prices of those Quarterly Options
Series that already have been opened for trading on BOX. The exercise
price of each Quarterly Options Series on an underlying index would be

required to be reasonably related to the current index value of the
index at or about the time such series of options were first opened for
trading on BOX. For purposes of the BOX Pilot, the term ``reasonably
related to the current index value of the underlying index'' means that
the exercise price is within 30 percent of the current index value.
    BOX would also be permitted to open for trading additional
Quarterly Options Series on an underlying index that are more than 30
percent away from the current index value, provided that demonstrated
customer interest exists for such series, as expressed by
institutional, corporate, or individual customers or their brokers.\7\
Market-makers trading for their own account shall not be considered
when determining customer interest under this provision. BOX may list
additional strike prices for Quarterly Options Series on indexes above
the value of the underlying index provided that the total number of
strike prices above the value of the underlying index is no greater
than five. Similarly, BOX may list additional Quarterly Options Series
strike prices on indexes below the value of the underlying index
provided that the total number of strike prices below the value of the
underlying index is no greater than five.
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    \7\ The ``within 30 percent'' requirement is proposed
specifically for the BOX Pilot and is not otherwise in the
Exchange's options rules. See Chapter XIV, Supplemental Materials to
Section 10.
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    The interval between strike prices on Quarterly Options Series
would be the same as the interval for strike prices for series in the
same options class that expires in accordance with the normal monthly
expiration cycles.
    Because monthly options series expire on the third Friday of their
expiration month, a Quarterly Options Series (which would expire on the
last business day of the quarter) could never expire in the same week
in which a monthly options series in the same class expires.
    The Exchange believes that Quarterly Options Series would provide
investors with a flexible and valuable tool to manage risk exposure,
minimize capital outlays, and be more responsive to the timing of
events affecting the securities that underlie option contracts. At the
same time, the Exchange is cognizant of the need to be cautious in
introducing a product that can increase the number of outstanding
strike prices. For that reason, the Exchange is proposing a limited
pilot program for Quarterly Options Series. Under the terms of the BOX
Pilot, BOX could select up to five option classes on which Quarterly
Options Series may be opened on any Quarterly Options Opening Date. BOX
would also be allowed to list those Quarterly Options Series on any
options class that is selected by another securities exchange with a
similar pilot program under its rules. The Exchange believes that
limiting the number of options classes in which Quarterly Options
Series may be opened would help to ensure that the addition of the new
series through the BOX Pilot will have only a negligible impact on
BOX's and the Option Price Reporting Authority's (``OPRA'') quoting
capacity. Also, limiting the term of the BOX Pilot to a finite period
will allow the Exchange and the Commission to determine whether the
program should be extended, expanded, and/or made permanent.
    If the Exchange were to propose an extension or an expansion of the
BOX Pilot, or were to propose to make the BOX Pilot permanent, along
with any filing proposing such amendments, the Exchange would submit a
BOX Pilot Report (``Report'') that would provide an analysis of the
pilot program covering the entire period during which the BOX Pilot was
in effect. The Report would include, at a minimum: (1) Data and written
analysis on the open interest and trading volume in the classes for
which Quarterly Option Series were opened; (2) an assessment of the
appropriateness of the options classes selected for the BOX Pilot; (3)
an assessment of the impact of the BOX Pilot on the capacity of BOX,
OPRA, and on market data vendors (to the extent data from market data
vendors is available); (4) any capacity problems or other problems that
arose during the operation of the BOX Pilot and how BOX addressed such
problems; (5) any complaints that the Exchange received during the
operation of the BOX Pilot and how BOX addressed them; and (6) any
additional information that would assist in assessing the operation of
the BOX Pilot. The Report must be submitted to the Commission at least
60 days prior to the expiration date of the BOX Pilot.
    Alternately, at the end of the BOX Pilot, if the Exchange
determines not to propose an extension or an expansion of the BOX
Pilot, or if the Commission determines not to extend or expand the BOX
Pilot, BOX would no longer list any additional Quarterly Options Series
and would limit all existing open interest in Quarterly Options Series
to closing transactions only.
    Finally, the Exchange represents that it has the necessary systems
capacity to support new options series that will result from the
introduction of Quarterly Options Series. The Exchange has provided to
the Commission information in a confidential submission that supports
its system capacity representations.
2. Statutory Basis
    The Exchange believes that its proposal to list and trade Quarterly
Options Series will satisfy institutional demand for such options and
provide additional flexibility, risk management, and hedging tools to
investors. Accordingly, the Exchange believes that the proposal is
consistent with the requirements of Section 6(b) of the Act \8\ in
general, and Section 6(b)(5) of the Act \9\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and to protect investors and the
public interest.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    The Exchange has neither solicited nor received comments on the
proposed rule change.

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

    The Exchange has designated the proposed rule change as one that:
(1) Does not significantly affect the protection of investors or the
public interest; (2) does not impose any significant burden on
competition; and (3) does not become operative for 30 days from the
date of filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest.
Therefore, the foregoing rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \10\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\11\ The Exchange has asked the Commission to waive
the operative delay to permit the Pilot Program

extension to become operative prior to the 30th day after filing.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ As required under Rule 19b-4(f)(6)(iii), the Exchange
provided the Commission with written notice of its intent to file
the proposed rule change at least five business days before doing
so.
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    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\13\ The Commission notes that the proposal is substantially
identical to existing pilot programs currently in place at other
SROs.\14\ Thus, the Exchange's proposal raises no new issues of
regulatory concern. Moreover, waiving the operative delay will allow
the Exchange to immediately compete with other exchanges that list and
trade quarterly options under similar programs, and consequently will
benefit the public. Therefore, the Commission designates the proposal
operative upon filing.\15\
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    \13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \14\ See supra note 5.
    \15\ As set forth in Part I above, if the Exchange were to
propose an extension, an expansion, or permanent approval of the
Pilot Program, the Exchange would submit, along with any filing
proposing such amendments to the program, a report that would
provide an analysis of the Pilot Program covering the entire period
during which the Pilot Program was in effect.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File No. SR-BSE-2007-36 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BSE-2007-36. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, 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 inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BSE-2007-36 and should be
submitted on or before August 13, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-14132 Filed 7-20-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 87, Number 43 (Friday, March 4, 2022)]
[Notices]
[Page 12474]
[FR Doc No: 2022-04591]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4635-DR; Docket ID FEMA-2022-0001]

Washington; Amendment No. 3 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Washington (FEMA-4635-DR), dated January 5, 2022, and
related determinations.

DATES: This amendment was issued January 27, 2022.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the State of Washington is hereby amended to include Public
Assistance for the following areas among the areas determined to have
been adversely affected by the event declared a major disaster by the
President in his declaration of January 5, 2022.

    Clallam, Island, Jefferson, Lewis, San Juan, Skagit, and Whatcom
Counties, the Hoh Indian Tribe, Lummi Tribe of the Lummi
Reservation, Nooksack Indian Tribe of Washington, Quileute Tribe,
and the Swinomish Indian Community for Public Assistance.
    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households in Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050 Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

Deanne Criswell,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2022-04591 Filed 3-3-22; 8:45 am]
BILLING CODE 9111-23-P


CFR 121.201; (2) a small governmental jurisdiction that is a government
of a city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
    After considering the economic impacts of this proposed action on
small entities, I certify that this proposed action will not have a
significant economic impact on a substantial number of small entities.
EPA's proposal consists of the proposed partial approval of Montana's
Regional Haze SIP submission and the proposed Regional Haze FIP by EPA
that adds additional controls to certain sources. The Regional Haze FIP
that EPA is proposing for purposes of the regional haze program
consists of imposing federal controls to meet the BART requirement for
PM, NOX and SO2 emissions on specific units at
five sources in Montana, and imposing controls to meet the RP
requirement for NOX emissions at one additional source in
Montana. The net result of the FIP action is that EPA is proposing
direct emission controls on selected units at six sources. The sources
in question are two large electric generating plants, two cement
plants, and one gas compressor station, and none of these sources are
not owned by small entities, and therefore are not small entities. The
proposed partial approval of the SIP, if finalized, merely approves
state law as meeting federal requirements and imposes no additional
requirements beyond those imposed by state law. See Mid-Tex Electric
Cooperative, Inc. v. FERC, 773 F.2d 327 (D.C. Cir. 1985)

D. Unfunded Mandates Reform Act (UMRA)

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for federal agencies to assess the
effects of their regulatory actions on State, local, and Tribal
governments and the private sector. Under section 202 of UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to State, local, and Tribal governments, in
the aggregate, or to the private sector, of $100 million or more
(adjusted for inflation) in any one year. Before promulgating an EPA
rule for which a written statement is needed, section 205 of UMRA
generally requires EPA to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome alternative that achieves the objectives
of the rule. The provisions of section 205 of UMRA do not apply when
they are inconsistent with applicable law. Moreover, section 205 of
UMRA allows EPA to adopt an alternative other than the least costly,
most cost-effective, or least burdensome alternative if the
Administrator publishes with the final rule an explanation why that
alternative was not adopted. Before EPA establishes any regulatory
requirements that may significantly or uniquely affect small
governments, including Tribal governments, it must have developed under
section 203 of UMRA a small government agency plan. The plan must
provide for notifying potentially affected small governments, enabling
officials of affected small governments to have meaningful and timely
input in the development of EPA regulatory proposals with significant
federal intergovernmental mandates, and informing, educating, and
advising small governments on compliance with the regulatory
requirements.
    Under Title II of UMRA, EPA has determined that this proposed rule
does not contain a federal mandate that may result in expenditures that
exceed the inflation-adjusted UMRA threshold of $100 million by State,
local, or Tribal governments or the private sector in any one year. In
addition, this proposed rule does not contain a significant federal
intergovernmental mandate as described by section 203 of UMRA nor does
it contain any regulatory requirements that might significantly or
uniquely affect small governments.

E. Executive Order 13132: Federalism

    Federalism (64 FR 43255, August 10, 1999) revokes and replaces
Executive Orders 12612 (Federalism) and 12875 (Enhancing the
Intergovernmental Partnership). Executive Order 13132 requires EPA to
develop an accountable process to ensure ``meaningful and timely input
by State and local officials in the development of regulatory policies
that have federalism implications.'' ``Policies that have federalism
implications'' is defined in the Executive Order to include regulations
that 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.'' Under Executive Order 13132, EPA may not issue a
regulation that has federalism implications, that imposes substantial
direct compliance costs, and that is not required by statute, unless
the federal government provides the funds necessary to pay the direct
compliance costs incurred by State and local governments, or EPA
consults with State and local officials early in the process of
developing the proposed

regulation. EPA also may not issue a regulation that has federalism
implications and that preempts State law unless the Agency consults
with State and local officials early in the process of developing the
proposed regulation.
    This rule will 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, because it
merely addresses the State not fully meeting its obligation to prohibit
emissions from interfering with other states measures to protect
visibility established in the CAA. Thus, Executive Order 13132 does not
apply to this action. In the spirit of Executive Order 13132, and
consistent with EPA policy to promote communications between EPA and
State and local governments, EPA specifically solicits comment on this
proposed rule from State and local officials.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    Executive Order 13175, entitled Consultation and Coordination with
Indian Tribal Governments (65 FR 67249, November 9, 2000), requires EPA
to develop an accountable process to ensure ``meaningful and timely
input by tribal officials in the development of regulatory policies
that have tribal implications.'' This proposed rule does not have
tribal implications, as specified in Executive Order 13175. It will not
have substantial direct effects on tribal governments. Thus, Executive
Order 13175 does not apply to this rule. However, EPA did send letters,
dated October 7, 2011, to each of the Montana Tribes explaining our
regional haze FIP action and offering consultation. We did not receive
any written or verbal requests from the Montana Tribes for more
information or consultation. As a follow-up to our letter, we invited
all of the Tribes to a January 5, 2012 conference call. The call was
attended by tribal Air Program Managers and one Environmental Director
from tribes from four reservations. We will be offering to meet with
the Montana Tribes prior to the start of the public hearings being held
in Helena and Billings, Montana. EPA specifically solicits additional
comment on this proposed rule from tribal officials.

G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

    Executive Order 13045: Protection of Children from Environmental
Health Risks and Safety Risks (62 FR 19885, April 23, 1997), applies to
any rule that: (1) Is determined to be economically significant as
defined under Executive Order 12866; and (2) concerns an environmental
health or safety risk that we have reason to believe may have a
disproportionate effect on children. EPA interprets EO 13045 as
applying only to those regulatory actions that concern health or safety
risks, such that the analysis required under section 5-501 of the EO
has the potential to influence the regulation. This action is not
subject to EO 13045 because it implements specific standards
established by Congress in statutes. However, to the extent this
proposed rule will limit emissions of NOX, SO2,
and PM, the rule will have a beneficial effect on children's health by
reducing air pollution.

H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355
(May 22, 2001)), because it is not a significant regulatory action
under Executive Order 12866.

I. National Technology Transfer and Advancement Act

    Section 12 of the National Technology Transfer and Advancement Act
(NTTAA) of 1995 requires federal agencies to evaluate existing
technical standards when developing a new regulation. To comply with
NTTAA, EPA must consider and use ``voluntary consensus standards''
(VCS) if available and applicable when developing programs and policies
unless doing so would be inconsistent with applicable law or otherwise
impractical.
    The EPA believes that VCS are inapplicable to this action. Today's
action does not require the public to perform activities conducive to
the use of VCS.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994), establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
    We have determined that this proposed rule, if finalized, will not
have disproportionately high and adverse human health or environmental
effects on minority or low-income populations because it increases the
level of environmental protection for all affected populations without
having any disproportionately high and adverse human health or
environmental effects on any population, including any minority or low-
income population. This proposed rule limits emissions of
NOX SO2 and PM from six sources in Montana.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental
relations, Nitrogen dioxide, Particulate matter, Reporting and
recordkeeping requirements, Sulfur oxides, Volatile organic compounds.

    Dated: March 20, 2012.
James B. Martin,
Regional Administrator, Region 8.

    40 CFR part 52 is proposed to be amended as follows:

PART 52--[AMENDED]

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

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

Subpart BB--Montana

    2. Section 52.1370 is amended by revising paragraph (c)(27)(i)(H)
to read as follows:

Sec.  52.1370  Identification of plan.

* * * * *
    (c) * * *
    (27) * * *
    (i) * * *
    (H) Appendix G-2, Montana Smoke Management Plan, effective April
15, 1988, is superseded by Sec.  52.1365.
* * * * *
    3. Add Sec.  52.1395 to read as follows:

Sec.  52.1395  Smoke management plan.

    The Department considers smoke management techniques for
agriculture and forestry management burning purposes as set forth in 40
CFR 51.308(d)(3)(v)(E). The Department considers the visibility impact
of smoke when developing, issuing, or conditioning permits and when
making dispersion forecast recommendations

through the implementation of Title 17, Chapter 8, subchapter 6, ARM,
Open Burning.
    4. Add section 52.1396 to read as follows:

Sec.  52.1396  Federal implementation plan for regional haze.

    (a) Applicability. This section applies to each owner and operator
of the following coal fired electric generating units (EGUs) in the
State of Montana: PPL Montana, LLC, Colstrip Power Plant, Units 1, 2;
and PPL Montana, LLC, JE Corette Steam Electric Station. This section
also applies to each owner and operator of cement kilns at the
following cement production plants: Ash Grove Cement, Montana City
Plant; and Holcim (US) Inc. Cement, Trident Plant. This section also
applies to each owner or operator of Blaine County 1
Compressor Station. This section also applies to each owner and
operator of CFAC and M2 Green Redevelopment LLC, Missoula site.
    (b) Definitions. Terms not defined below shall have the meaning
given them in the Clean Air Act or EPA's regulations implementing the
Clean Air Act. For purposes of this section:
    Boiler operating day means a 24-hour period between 12 midnight and
the following midnight during which any fuel is combusted at any time
in the EGU. It is not necessary for fuel to be combusted for the entire
24-hour period.
    Continuous emission monitoring system or CEMS means the equipment
required by this section to sample, analyze, measure, and provide, by
means of readings recorded at least once every 15 minutes (using an
automated data acquisition and handling system (DAHS)), a permanent
record of SO2 or NOX emissions, other pollutant
emissions, diluent, or stack gas volumetric flow rate.
    Kiln operating day means a 24-hour period between 12 midnight and
the following midnight during which the kiln operates.
    NOX means nitrogen oxides.
    Owner/operator means any person who owns or who operates, controls,
or supervises an EGU identified in paragraph (a) of this section.
    PM means filterable total particulate matter.
    SO2 means sulfur dioxide.
    Unit means any of the EGUs or cement kilns identified in paragraph
(a) of this section.
    (c) Emissions limitations. (1) The owners/operators of EGUs subject
to this section shall not emit or cause to be emitted PM,
SO2 or NOX in excess of the following
limitations, in pounds per million British thermal units (lb/MMBtu),
averaged over a rolling 30-day period:

----------------------------------------------------------------------------------------------------------------
                                                  PM Emission limit    SO2 Emission limit    NOX Emission limit
                  Source name                        (lb/MMBtu)            (lb/MMBtu)            (lb/MMBtu)
----------------------------------------------------------------------------------------------------------------
Colstrip Unit 1...............................                  0.10                  0.08                  0.15
Colstrip Unit 2...............................                  0.10                  0.08                  0.15
JE Corette Unit 1.............................                  0.10                  0.70                  0.40
----------------------------------------------------------------------------------------------------------------

    (2) The owners/operators of cement kilns subject to this section
shall not emit or cause to be emitted PM, SO2 or
NOX in excess of the following limitations, in pounds per
ton of clinker produced, averaged over a rolling 30-day period:

----------------------------------------------------------------------------------------------------------------
                                         PM Emission limit (lb/ton     SO2 Emission limit    NOX Emission limit
             Source name                          clinker)              (lb/ton clinker)      (lb/ton clinker)
----------------------------------------------------------------------------------------------------------------
Ash Grove Cement.....................  If the process weight rate of                  11.5                   8.0
                                        the kiln is less than or
                                        equal to 30 tons per hour,
                                        then the emission limit
                                        shall be calculated using E
                                        = 4.10p \0.67\ where E =
                                        rate of emission in pounds
                                        per hour and p = process
                                        weight rate in tons per
                                        hour; however, if the
                                        process weight rate of the
                                        kiln is greater than 30 tons
                                        per hour, then the emission
                                        limit shall be calculated
                                        using E = 55.0p \0.11\-40,
                                        where E = rate of emission
                                        in pounds per hour and P =
                                        process weight rate in tons
                                        per hour..
Holcim (US) Inc......................  0.77 lb/ton..................                   1.3                   5.5
----------------------------------------------------------------------------------------------------------------

     (3) The owners/operators of LP, Blaine County 1
Compressor Station shall not emit or cause to be emitted NOX
in excess of 21.8 lbs/hr (30-day rolling average).
    (4) These emission limitations shall apply at all times, including
startups, shutdowns, emergencies, and malfunctions.
    (d) Compliance date. The owners and operators of Blaine County
1 Compressor Station shall comply with the emissions
limitation and other requirements of this section expeditiously as
practicable, but no later than July 31, 2018. The owners and operators
of the BART sources subject to this section shall comply with the
emissions limitations and other requirements of this section within
five years of the effective date of this rule unless otherwise
indicated in specific paragraphs.
    (e) Compliance determinations for SO2 and NOX. (1) CEMS for EGUs.
At all times after the compliance date specified in paragraph (d) of
this section, the owner/operator of each unit shall maintain,
calibrate, and operate a CEMS, in full compliance with the requirements
found at 40 CFR part 75, to accurately measure SO2,
NOX, diluent, and stack gas volumetric flow rate from each
unit. The CEMS shall be used to determine compliance with the emission
limitations in paragraph (c) of this section for each unit.
    (2) Method for EGUs. (i) For any hour in which fuel is combusted in
a unit, the owner/operator of each unit shall

calculate the hourly average SO2 and NOX
concentration in lb/MMBtu at the CEMS in accordance with the
requirements of 40 CFR part 75. At the end of each boiler operating
day, the owner/operator shall calculate and record a new 30-day rolling
average emission rate in lb/MMBtu from the arithmetic average of all
valid hourly emission rates from the CEMS for the current boiler
operating day and the previous 29 successive boiler operating days.
    (ii) An hourly average SO2 or NOX emission
rate in lb/MMBtu is valid only if the minimum number of data points, as
specified in 40 CFR part 75, is acquired by both the pollutant
concentration monitor (SO2 or NOX) and the
diluent monitor (O2 or CO2).
    (iii) Data reported to meet the requirements of this section shall
not include data substituted using the missing data substitution
procedures of subpart D of 40 CFR part 75, nor shall the data have been
bias adjusted according to the procedures of 40 CFR part 75.
    (3) CEMS for cement kilns. At all times after the compliance date
specified in paragraph (d) of this section, the owner/operator of each
unit shall maintain, calibrate, and operate a CEMS, in full compliance
with the requirements found at 40 CFR 60.63(f), to accurately measure
concentration by volume of SO2 and NOX emissions
into the atmosphere from each unit. The CEMS shall be used to determine
compliance with the emission limitations in paragraph (c) of this
section for each unit, in combination with data on actual clinker
production.
    (4) Method for cement kilns. (i) The owner/operator of each unit
shall record the daily clinker production rates.
    (ii) The owner/operator of each unit shall calculate and record the
30-operating day rolling emission rates of SO2 and
NOX, in lb/ton of clinker produced, as the total of all
hourly emissions data for the cement kiln in the preceding 30 days,
divided by the total tons of clinker produced in that kiln during the
same 30-day operating period, using the following equation:

E = (CsQs)/(PK)

Where:

E = emission rate of SO2 or NOX, lb/ton of
clinker produced
Cs = concentration of SO2 or NOX,
in grains per standard cubic foot (gr/scf);
Qs = volumetric flow rate of effluent gas, where
Cs and Qs are on the same basis (either wet or
dry), scf/hr;
P = total kiln clinker production rate, tons/hr, and
K = conversion factor, 7000 gr/lb.

    Hourly clinker production shall be determined in accordance with
the requirements found at 40 CFR 60.63(b).
    (iii) At the end of each kiln operating day, the owner/operator of
each unit shall calculate and record a new 30-day rolling average
emission rate in lb/ton clinker from the arithmetic average of all
valid hourly emission rates for the current kiln operating day and the
previous 29 successive kiln operating days.
    (5) The owner/operator of Blaine County 1 Compressor
Station shall install a temperature-sensing device (i.e. thermocouple
or resistance temperature detectors) before the catalyst in order to
monitor the inlet temperatures of the catalyst for each engine. The
owner/operator shall maintain the engine at a minimum of at least
750[deg]F and no more than 1250[deg]F in accordance with manufacturer's
specifications. Also, the owner/operator shall install gauges before
and after the catalyst for each engine in order to monitor pressure
drop across the catalyst, and that the owner/operator maintain the
pressure drop within  2'' water at 100% load plus or minus
10% from the pressure drop across the catalyst measured during the
initial performance test. The owner/operator shall follow the
manufacturer's recommended maintenance schedule and procedures for each
engine and its respective catalyst. The owner/operator shall only fire
each engine with natural gas that is of pipeline-quality in all
respects except that the CO2 concentration in the gas shall
not be required to be within pipeline-quality.
    (f) Compliance determinations for particulate matter. (1) EGU
particulate matter BART limits. Compliance with the particulate matter
BART emission limits for each EGU BART unit shall be determined from
annual performance stack tests. Within 60 days of the compliance
deadline specified in paragraph (d) of this section, and on at least an
annual basis thereafter, the owner/operator of each unit shall conduct
a stack test on each unit to measure particulate emissions using EPA
Method 5, 5B, 5D, or 17, as appropriate, in 40 CFR part 60, Appendix A.
A test shall consist of three runs, with each run at least 120 minutes
in duration and each run collecting a minimum sample of 60 dry standard
cubic feet. Results shall be reported in lb/MMBtu. In addition to
annual stack tests, owner/operator shall monitor particulate emissions
for compliance with the BART emission limits in accordance with the
applicable Compliance Assurance Monitoring (CAM) plan developed and
approved in accordance with 40 CFR part 64.
    (2) Cement kiln particulate matter BART limits. Compliance with the
particulate matter BART emission limits for each cement kiln shall be
determined from annual performance stack tests. Within 60 days of the
compliance deadline specified in paragragh (d) of this section, and on
at least an annual basis thereafter, the owner/operator of each unit
shall conduct a stack test on each unit to measure particulate matter
emissions using EPA Method 5, 5B, 5D, or 17, as appropriate, in 40 CFR
part 60, Appendix A. A test shall consist of three runs, with each run
at least 120 minutes in duration and each run collecting a minimum
sample of 60 dry standard cubic feet. The emission rate (E) of
particulate matter, in lb/ton clinker, shall be computed for each run
using the equation in paragraph (e)(4)(ii) of this section above.
Clinker production shall be determined in accordance with the
requirements found at 40 CFR 60.63(b). Results of each test shall be
reported as the average of three valid test runs. In addition to annual
stack tests, owner/operator shall monitor particulate emissions for
compliance with the BART emission limits in accordance with the
applicable Compliance Assurance Monitoring (CAM) plan developed and
approved in accordance with 40 CFR part 64.
    (g) Recordkeeping for EGUs. Owner/operator shall maintain the
following records for at least five years:
    (1) All CEMS data, including the date, place, and time of sampling
or measurement; parameters sampled or measured; and results.
    (2) Records of quality assurance and quality control activities for
emissions measuring systems including, but not limited to, any records
required by 40 CFR Part 75 .
    (3) Records of all major maintenance activities conducted on
emission units, air pollution control equipment, and CEMS.
    (4) Any other records required by 40 CFR part 75.
    (h) Recordkeeping for cement kilns. Owner/operator shall maintain
the following records for at least five years:
    (1) All CEMS data, including the date, place, and time of sampling
or measurement; parameters sampled or measured; and results.
    (2) All particulate matter stack test results.
    (3) All records of clinker production.
    (4) Records of quality assurance and quality control activities for
emissions measuring systems including, but not limited to, any records
required by

40 CFR part 60, appendix F, Procedure 1.
    (5) Records of all major maintenance activities conducted on
emission units, air pollution control equipment, CEMS and clinker
production measurement devices.
    (6) Any other records required by 40 CFR part 75, 40 CFR part 60,
Subpart F, or 40 CFR part 60, Appendix F, Procedure 1.
    (i) Reporting. All reports under this section, with the exception
of 40 CFR 53.1395(n) and (o), shall be submitted to the Director,
Office of Enforcement, Compliance and Environmental Justice, U.S.
Environmental Protection Agency, Region 8, Mail Code 8ENF-AT, 1595
Wynkoop Street, Denver, Colorado 80202-1129.
    (1) Owner/operator of each unit shall submit quarterly excess
emissions reports for SO2 and NOX BART limits no
later than the 30th day following the end of each calendar quarter.
Excess emissions means emissions that exceed the emissions limits
specified in paragraph (c) of this section. The reports shall include
the magnitude, date(s), and duration of each period of excess
emissions, specific identification of each period of excess emissions
that occurs during startups, shutdowns, and malfunctions of the unit,
the nature and cause of any malfunction (if known), and the corrective
action taken or preventative measures adopted.
    (2) Owner/operator of each unit shall submit quarterly CEMS
performance reports, to include dates and duration of each period
during which the CEMS was inoperative (except for zero and span
adjustments and calibration checks), reason(s) why the CEMS was
inoperative and steps taken to prevent recurrence, and any CEMS repairs
or adjustments.
    (i) For EGUs: Owner/operator of each unit shall also submit results
of any CEMS performance tests required by 40 CFR part 75 (Relative
Accuracy Test Audits, Relative Accuracy Audits, and Cylinder Gas
Audits).
    (ii) For cement kilns: Owner/operator of each unit shall also
submit results of any CEMS performance tests required by 40 CFR part
60, appendix F, Procedure 1 (Relative Accuracy Test Audits, Relative
Accuracy Audits, and Cylinder Gas Audits).
    (3) When no excess emissions have occurred or the CEMS has not been
inoperative, repaired, or adjusted during the reporting period, such
information shall be stated in the quarterly reports required by
sections (h)(1) and (2) of this section.
    (4) Owner/operator of each unit shall submit results of any
particulate matter stack tests conducted for demonstrating compliance
with the particulate matter BART limits in paragragh (c) of this
section.
    (j) Monitoring, recordkeeping, and reporting requirements for
Blaine County 1 Compressor Station:
    (1) The owner/operator shall measure NOX emissions from
each engine at least semi-annually or once every six month period to
demonstrate compliance with the emission limits. To meet this
requirement, the owner/operator shall measure NOX emissions
from the engines using a portable analyzer and a monitoring protocol
approved by EPA.
    (2) The owner/operator shall submit the analyzer specifications and
monitoring protocol to EPA for approval within 45 calendar days prior
to installation of the NSCR unit.
    (3) Monitoring for NOX emissions shall commence during
the first complete calendar quarter following the owner/operator's
submittal of the initial performance test results for NOX to
EPA.
    (4) The owner/operator shall measure the engine exhaust temperature
at the inlet to the oxidation catalyst at least once per week and shall
measure the pressure drop across the oxidation catalyst monthly.
    (5) Each temperature-sensing device shall be accurate to within
plus or minus 0.75% of span and that the pressure sensing devices be
accurate to within plus or minus 0.1 inches of water.
    (6) The owner/operator shall keep records of all temperature and
pressure measurements; vendor specifications for the thermocouples and
pressure gauges; vendor specifications for the NSCR catalyst and the
air-to-fuel ratio controller on each engine.
    (7) The owner/operator shall keep records sufficient to demonstrate
that the fuel for the engines is pipeline-quality natural gas in all
respects, with the exception of the CO2 concentration in the
natural gas.
    (8) The owner/operator shall keep records of all required testing
and monitoring that include: The date, place, and time of sampling or
measurements; the date(s) analyses were performed; the company or
entity that performed the analyses; the analytical techniques or
methods used; the results of such analyses or measurements; and the
operating conditions as existing at the time of sampling or
measurement.
    (9) The owner/operator shall maintain records of all required
monitoring data and support information (e.g. all calibration and
maintenance records, all original strip-chart recordings for continuous
monitoring instrumentation, and copies of all reports required) for a
period of at least five years from the date of the monitoring sample,
measurement, or report and that these records be made available upon
request by EPA.
    (10) The owner/operator shall submit a written report of the
results of the required performance tests to EPA within 90 calendar
days of the date of testing completion.
    (k) Notifications. (1) Owner/operator shall submit notification of
commencement of construction of any equipment which is being
constructed to comply with the SO2 or NOX
emission limits in paragraph (c) of this section.
    (2) Owner/operator shall submit semi-annual progress reports on
construction of any such equipment.
    (3) Owner/operator shall submit notification of initial startup of
any such equipment.
    (l) Equipment operation. At all times, owner/operator shall
maintain each unit, including associated air pollution control
equipment, in a manner consistent with good air pollution control
practices for minimizing emissions.
    (m) Credible evidence. Nothing in this section shall preclude the
use, including the exclusive use, of any credible evidence or
information, relevant to whether a source would have been in compliance
with requirements of this section if the appropriate performance or
compliance test procedures or method had been performed.
    (n) CFAC notification. CFAC must notify EPA 60 days in advance of
resuming operation. CFAC shall submit such notice to the Director, Air
Program, U.S. Environmental Protection Agency, Region 8, Mail Code 8P-
AR, 1595 Wynkoop Street, Denver, Colorado 80202-1129. Once CFAC
notifies EPA that it intends to resume operation, EPA will initiate and
complete a BART determination after notification and revise the FIP as
necessary in accordance with regional haze requirements, including the
BART provisions in 40 CFR 51.308(e). CFAC will be required to install
any controls that are required as soon as practicable, but in no case
later than five years following the effective date of this rule.
    (o) M2Green Redevelopment LLC notification. M2Green Redevelopment
LLC must notify EPA 60 days in advance of resuming operation. M2Green
Redevelopment LLC shall submit such notice to the Director, Air
Program, U.S. Environmental Protection Agency, Region 8, Mail Code 8P-
AR, 1595 Wynkoop Street, Denver, Colorado 80202-1129. Once M2 Green
Redevelopment LLC notifies EPA that it

intends to resume operation, EPA will initiate and complete a four
factor analysis after notification and revise the FIP as necessary in
accordance with regional haze requirements including the ``reasonable
progress'' provisions in 40 CFR 51.308(d)(1). M2 Green Redevelopment
LLC will be required to install any controls that are required as soon
as practicable, but in no case later than July 31, 2018.

[FR Doc. 2012-8367 Filed 4-13-12; 8:30 am]
BILLING CODE 6560-50-P