[Federal Register: December 18, 2006 (Volume 71, Number 242)]
[Notices]
[Page 75790-75797]
[DOCID:fr18de06-67]

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SECURITIES AND EXCHANGE COMMISSION

Release No. 34-54918; File No. SR-NYSE-2006-13]

Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Approving a Proposed Rule Change to Rule 431 (``Margin Requirements'')
and Rule 726 (``Delivery of Options Disclosure Document and
Prospectus''), and Notice of Filing and Order Granting Accelerated
Approval to Amendment No. 1 to the Proposed Rule Change Relating to
Customer Portfolio Margining

 December 12, 2006.

I. Introduction

    On March 2, 2006, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
\2\ thereunder, a proposed rule change seeking to amend NYSE Rules 431
and 726 to expand the scope of products that are eligible for treatment
as part of the NYSE's approved portfolio margin pilot program and to
eliminate the requirement for a separate cross-margin account.\3\ The
proposed rule change would expand the scope of eligible products in the
pilot to include margin equity securities and unlisted derivatives. \4\
The proposed rule change was published in the Federal Register on April
6, 2006.\5\ The Commission subsequently extended the comment period for
the original proposed rule filing until May 11, 2006.\6\ The Commission
received 8 comment letters in response to the Federal Register
notice.\7\ On July 20,

2006, the Exchange filed a response to these comments.\8\ The comment
letters and the Exchange's responses to the comments are summarized
below. On September 13, 2006, the Exchange filed Amendment No. 1 to the
proposed rule change.\9\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Exchange Act Release No. 52031 (July 14, 2005), 70 FR
42130 (July 21, 2005) (SR-NYSE-2002-19). On July 14, 2005, the
Commission approved on a pilot basis expiring July 31, 2007,
amendments to Rule 431 that permit broker-dealers to determine
customer margin requirements for portfolios of listed broad-based
securities index options, warrants, futures, futures options and
related exchange-traded funds using a specified portfolio margin
methodology. The Commission also approved amendments to Rule 726 to
require disclosure to, and written acknowledgment from, customers
using a portfolio margin account. See also NYSE Information Memo 05-
56, dated August 18, 2005 (for additional information); and Exchange
Act Release No. 54125 (July 11, 2006), 71 FR 40766 (July 18, 2006)
(SR-NYSE-2005-93) (approving securities futures products and listed
single stock options as eligible products for portfolio margining).
    \4\ For purposes of the pilot, a margin equity security is a
security that meets the definition of a ``margin equity security''
under Regulation T of the Federal Reserve Board (``FRB''). See 12
CFR 220.2. An unlisted derivative means ``any equity-based or equity
index-based unlisted option, forward contract, or security-based
swap that can be valued by a theoretical pricing model approved by
the SEC.'' See proposed Rule 431(g)(2)(I).
    \5\  See Exchange Act Release No. 53577 (March 30, 2006), 71 FR
17539 (April 6, 2006) (SR-NYSE-2006-13). The Chicago Board Options
Exchange, Incorporated (``CBOE'') also filed a similar proposed rule
filing seeking to expand the scope of eligible products under its
portfolio margin pilot program. See Exchange Act Release No. 53576
(March 30, 2006), 71 FR 17519 (April 6, 2006) (SR-CBOE-2006-14).
    \6\ See Exchange Act Release No. 53728 (April 26, 2006), 71 FR
25878 (May 2, 2006).
    \7\ See letter from Timothy H. Thompson, Senior Vice President,
Chief Regulatory Officer, Regulatory Services Division, CBOE, to
Nancy Morris, Secretary, Commission, dated June 5, 2006 (``CBOE
Letter''); letter from William H. Navin, Executive Vice President,
General Counsel and Secretary, The Options Clearing Corporation
(``OCC''), to Nancy M. Morris, Secretary, Commission, dated May 19,
2006 (``OCC Letter''); letter from James Barry, on behalf of the Ad
Hoc Portfolio Margin Committee, John Vitha, Chair, Derivatives
Product Committee and Christopher Nagy, Chair, Options Committee,
Securities Industry Association, to Nancy M. Morris, Secretary,
dated May 16, 2006 (``SIA Letter''); letter from Gary Alan DeWaal,
Group General Counsel and Director of Legal and Compliance, Fimat
USA, LLC, to Nancy M. Morris, Secretary, Commission, dated May 11,
2006 (``Fimat Letter''); letter from Stuart J. Kaswell, Partner,
Dechert LLP, Counsel for Federated Investors, Inc., to Nancy M.
Morris, Secretary, Commission, dated May 10, 2006 (``Federated
Letter''); letter from Craig S. Donohue, Chief Executive Officer,
Chicago Mercantile Exchange Inc., to Jonathan G. Katz, Secretary,
Commission, dated May 9, 2006 (``CME Letter''); letter from Gerard
J. Quinn, Vice President and Associate General Counsel, SIA, to
Nancy M. Morris, Secretary, Commission, dated April 21, 2006 (``SIA
Extension Letter''); and e-mail from Stephen A. Kasprzak, Principal
Counsel, Rule and Interpretive Standards, NYSE, dated April 21, 2006
(``Kasprzak e-mail'').
    \8\ See letter from Mary Yeager, Assistant Secretary, NYSE, to
Michael A. Macchiaroli, Associate Director, Division of Market
Regulation, Commission, dated July 20, 2006 (``NYSE Response'').
    \9\ The NYSE filed Amendment No. 1 in response to comments
received and to make other clarifying changes to the proposed rule
filing. See Section II. for a discussion of the changes in Amendment
No. 1. A clean copy of the proposed rule, as amended by Amendment
No. 1, is attached to this order as Appendix A.
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    This order approves the proposed rule change. Simultaneously, the
Commission provides notice of filing of Amendment No. 1, grants
accelerated approval of Amendment No. 1 and solicits comments from
interested persons on Amendment No. 1.\10\
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    \10\ By separate order, the Commission also is approving a
parallel rule filing by CBOE (SR-CBOE-2006-14). Exchange Act Release
No. 54919; see also supra note 5.
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II. Description

a. Portfolio Margining

    The proposed rule change consists of amendments to Rule 431 to
include margin equity securities (as defined in Regulation T) and
unlisted derivatives as eligible products for the portfolio margining
pilot.\11\ The proposed rule change also includes amendments to
eliminate the requirement of a separate cross-margin account. Rule 431
prescribes specific margin requirements for customers based on the type
of securities held in their accounts.\12\ Outside the existing pilot
program, Rule 431 requires that margin be calculated using fixed
percentages, on a position-by-position basis. In contrast, the current
portfolio margin pilot program permits a broker-dealer to calculate
customer margin requirements by grouping all products in an account
that are based on the same index or issuer into a single portfolio. For
example, futures, options and exchange traded funds based on the S&P
500 would each be grouped in a portfolio and products based on IBM
would be grouped into a separate portfolio.
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    \11\ The list of eligible products under the pilot currently
includes listed broad-based securities index options, warrants,
futures, futures options and related exchange-traded funds, as well
as single stock options and securities futures products.
    \12\ The margin rules specify the amount of equity a customer
must maintain in his or her margin account with respect to
securities positions financed by the broker-dealer. The equity
protects the broker-dealer in the event the customer defaults on the
obligation to re-pay the financing and the broker-dealer is forced
to liquidate the position at a loss.
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    The broker-dealer then calculates a customer's margin requirement
by ``shocking'' each portfolio at different equidistant points along a
range representing a potential percentage increase and decrease in the
value of the instrument or underlying instrument in the case of a
derivative product. Currently, under the pilot, products of portfolios
based on high capitalization, broad-based securities indexes are
shocked along a range spanning an increase of 6% and a decrease of 8%.
Portfolios of products based on non-high capitalization, broad-based
securities indexes are shocked along a range spanning an increase of
10% and a decrease of 10%. Portfolios of products based on an equity
security are shocked along a range spanning an increase of 15% and a
decrease of 15%.\13\ The proposed rule change would continue to apply
these shock ranges. In addition, as with the current pilot, a
theoretical options pricing model would continue to be used to derive
position values at each valuation point for the purpose of determining
the gain or loss.\14\
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    \13\ For example, under the pilot, a portfolio of single stock
futures and listed equity options would be shocked at 10 equidistant
points along a range bounded on one end by a 15% increase in the
market value of the instrument and at the other end by a 15%
decrease (i.e., at +/-3%, +/-6%, +/-9%, +/-12% and +/-15%).
    \14\ Currently, the only model that qualifies is the OCC's
Theoretical Intermarket Margining System (TIMS).
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    The portfolio shocks described above result in a gain or loss for
each instrument in a portfolio at each calculation point along the
range. These gains and losses are netted to derive a potential
portfolio-wide gain or loss for the point. The margin requirement for a
portfolio is the amount of the greatest portfolio-wide loss among the
calculation points. The margin requirements for each portfolio are
added together to calculate the total margin requirement for the
portfolio margin account. This approach, in most cases, will generally
lower customer margin requirements.\15\
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    \15\ For example, the current required initial and maintenance
margin requirements for an equity security are 50% and 25%,
respectively. The market movement range to calculate the potential
gains and losses under the proposed portfolio margin rule for equity
securities is +/-15%.
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    The amount of margin (initial and maintenance) required with
respect to a given portfolio would be the larger of: (1) The greatest
portfolio-wide loss amount among the valuation point calculations; or
(2) the sum of $.375 for each option and future in the portfolio
multiplied by the contract's or instrument's multiplier.\16\ The second
computation establishes a minimum margin requirement to ensure that a
certain level of margin is required from the customer in the event the
greatest portfolio-wide loss among the valuation points is de minimis.
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    \16\ The multiplier for a standard listed option is fixed by the
options market on which the options series is traded. For example, a
cash settled equity option generally has a multiplier of 100.
Therefore, the minimum margin for one options contract would be
$37.50. The multipliers for different securities and futures
products may vary.
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b. Expansion of Eligible Products

    Under the Exchange's proposed rule, products eligible for portfolio
margining would be expanded to include margin equity securities (as
defined under Regulation T),\17\ unlisted derivatives and futures
contracts on narrow-based security indexes.\18\ The unlisted
derivatives would be included in a portfolio based on the underlying
reference index or security. Individual equities and narrow-based index
futures would be included in a portfolio shocked at a range spanning an
increase of 15% and a decrease of 15% (as is the case with listed
single stock options and securities futures).
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    \17\ Margin equity securities include certain foreign equity
securities and options on foreign equity securities. See 12 CFR
220.2
    \18\ The Commission approved listed single stock options and
securities futures products (excluding narrow-based indexes) as
eligible products on July 11, 2006. See supra note 3.
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c. Margin Deficiency

    The current rule requires a customer to satisfy a margin deficiency
in a portfolio margin account within three business days by depositing
additional securities or cash or effecting an offsetting hedge.\19\ The
current pilot also requires a broker-dealer to deduct from its net
capital the amount of any portfolio margin call not met by the close of
business on T+1 and until the

call is satisfied. The proposal would now further require the broker-
dealer to have in place procedures to identify accounts that
periodically liquidate positions to eliminate margin deficiencies, and
to take appropriate action when warranted.\20\
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    \19\ The original pilot required margin calls to be met by T+1.
The current requirement of meeting margin calls within three
business days was approved in SR-NYSE-2005-93. See Exchange Act
Release No. 54125 (July 11, 2006), 71 FR 40766 (July 18, 2006).
    \20\ The current pilot requires that member firms not permit a
customer to make a practice of meeting a portfolio margin deficiency
through liquidation.
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d. $5 Million Equity Requirement

    The current pilot requires customers that are not broker-dealers or
futures firms to maintain minimum account equity of $5 million if they
opt to include portfolios of broad-based securities index products in
their accounts.\21\ The proposed rule change would eliminate the $5
million account equity requirement for all portfolio margin accounts,
except those holding unlisted derivatives.\22\
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    \21\ The $5 million account equity requirement for such
customers was eliminated to the extent they limited their accounts
to portfolios of listed options and securities futures. See SR-NYSE-
2005-93, supra note 3.
    \22\ See proposed Rule 431(g)(4)(C).
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e. Risk Management Methodology

    The pilot requires member broker-dealers to monitor the risk of
portfolio margin accounts and maintain a written risk analysis
methodology for assessing potential risk to the firm's capital. This
risk analysis methodology must be made available to the Exchange upon
request. The proposed rule change strengthens these requirements by
providing that, the member broker-dealer must file the risk analysis
methodology with the Exchange (or the firm's Designated Examining
Authority, if not the Exchange) \23\ and submit it to the Commission
prior to implementation. The proposed rule change also requires the
inclusion of additional procedures and guidelines as part of the
methodology.\24\
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    \23\ Amendment No. 1 to the proposed rule amended the rule
language to state that the written risk methodology must be filed
with the Exchange, rather than approved by the Exchange, as
proposed, in the March 2, 2006 rule filing.
    \24\ The current pilot also requires member firms to notify, and
receive approval from the Exchange, prior to opening portfolio
margin accounts for customers. The proposed rule modifies this
requirement by requiring approval from a member firm's DEA, if it is
not the Exchange.
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f. Cross-Margin Account

    The proposed rule change would eliminate the requirement that
portfolios with futures positions be held in a separate cross-margin
account. Under the proposal, a customer would be permitted to use a
single securities margin account for all eligible products. The
Exchange and commenters have indicated that maintaining and monitoring
two separate margin accounts would be operationally difficult and that
it would be more efficient to hold all positions in one securities
account.

g. Hedged Positions

    Under the pilot, an underlying security in a portfolio margin
account must be removed from the account if it is no longer offset by
an option position. The amendments propose to eliminate the requirement
to remove instruments that are no longer offset by options positions.
The Exchange made this change in response to comments that all
positions eligible for a portfolio margin account, including underlying
securities, should receive equal treatment. Moreover, the Exchange
noted that it would be operationally difficult to move positions in and
out of the portfolio margin account based on whether they are currently
being offset.

h. Discussion of Changes to the Proposed Rule Change in Amendment No. 1

    The Exchange filed Amendment No. 1 to the proposed rule change in
response to comments received, to make conforming changes to the CBOE
rule filing \25\ and to otherwise clarify certain terms and
definitions. The following summarizes the changes made in Amendment No.
1 to the proposed rule change. In Amendment No. 1, the Exchange:
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    \25\ See supra note 5.
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     Clarifies certain definitions and conforms others to the
CBOE filing;
     Adds language allowing a customer to use excess equity in
a regular margin account to meet a margin deficiency in a portfolio
margin account without having to transfer any funds or securities where
the portfolio margin account is a sub-account of the regular margin
account;
     Adds language allowing positions not eligible for
portfolio margin treatment to be carried in the portfolio margin
account for their collateral value, subject to the margin requirements
of a regular margin account;
     Adds language permitting shares of a money market mutual
fund to be held in a portfolio margin account (subject to applicable
margin requirements), provided certain requirements are met;
     Clarifies the restrictions with respect to day trading
\26\ in a portfolio margin account; and
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    \26\ NYSE proposed to amend the rule text to allow a customer
that establishes and maintains at least $5 million in equity to
engage in day trading without the restrictions of NYSE's day trading
rules, if the member firm has the ability to monitor the intra-day
risk associated with day trading. Further, if a participant has less
than $5 million equity, the day trading restrictions will apply,
unless the position or positions day traded were part of a hedge
strategy.
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     Eliminates the sample risk disclosure statement and
acknowledgement in the rule text.\27\
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    \27\ Instead the Exchange will send out an Information Memo with
the sample disclosure language. The Exchange made this change to
avoid having to file a proposed rule change each time in the risk
disclosure document is changed.
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III. Summary of Comments Received and NYSE Response

    The Commission received a total of 8 comment letters to the
proposed rule change.\28\ The comments, in general, were supportive.
One commenter stated that it strongly supports ``the significant step
forward represented by the currently proposed changes.'' \29\ Another
commenter stated that the portfolio margining of securities products
will ``help U.S. brokers and exchanges compete more effectively with
their overseas counterparts * * * and thereby increase the strength and
liquidity of U.S. markets.'' \30\ Each commenter, however, recommended
changes to specific provisions of the proposed rule change.
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    \28\ See supra note 7. Two of these comment letters related to
the extension of the comment period for the proposed rule change.
See SIA Extension Letter and Kasprzak e-mail.
    \29\ See SIA Letter.
    \30\ See Fimat Letter.
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    Several commenters \31\ submitted comments regarding the ability to
use portfolio margin methodologies other than the method prescribed in
the rule to calculate customer margin requirements. One commenter
stated that the Commission has experience in approving proprietary
market risk models for consolidated supervised entities (CSEs) and OTC
derivatives dealers.\32\ In its response, the Exchange acknowledged
that proprietary models may prove to be effective and efficient in
managing risk.\33\ The Exchange stated, however, that initially,
regulators should gain experience with portfolio margining through the
rule's specified methodology and that in the longer term, proprietary
risk models could be considered as alternatives.
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    \31\ See SIA Letter and OCC Letter; see also CME Letter
(discussing SPAN).
    \32\ See SIA Letter.
    \33\ See NYSE Response, supra note 8.
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    One commenter suggested that futures positions in a portfolio
margin account be held in a separate futures account, while securities
positions be held in a securities account.\34\ The commenter referred
to this approach as the ``two

pot'' model.\35\ The commenter stated that it favors this ``two pot''
approach because it believes that it more easily accommodates
differences in customer protection and capital requirements of the
Commission and the Commodity Futures Trading Commission (``CFTC'').\36\
Commenters, in general, favored a single portfolio margin securities
account (referred to as the ``one pot'' approach).\37\ One commenter
stated that the ``disadvantages of a two pot model outweigh its
advantages.'' \38\ The Exchange stated that it believes that a one pot
approach will provide for more efficient margining, reduce broker-
dealer/FCM liquidity risk and reduce operational inefficiencies.
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    \34\ See CME Letter.
    \35\ Id.
    \36\ See CME Letter.
    \37\ See OCC and CBOE Letters.
    \38\ See CBOE Letter.
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    Three commenters expressed the need for the Commission and the CFTC
to continue working towards eliminating the legal and regulatory
impediments to cross-margining futures and securities products.\39\ In
response, the Exchange stated that it will continue to work with the
Commission and the CFTC on the regulatory issues related to holding
securities and futures in a portfolio.
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    \39\ See SIA, Fimat and OCC Letters.
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    One commenter stated that portfolio margining should be expanded to
include nonequity securities, interest rate derivatives, collateralized
debt obligations and other similar non-equity related products, and
foreign currency derivatives.\40\ This commenter also requested that
nonequity securities be permitted to be held in the portfolio margin
account for collateral purposes only, subject to the other margin
requirements of NYSE Rule 431.\41\ The Exchange noted that it agrees
with the commenter to the extent that nonequity securities may serve as
collateral in the portfolio margin account.\42\ The Exchange also
stated that once the SROs and broker-dealers gain more experience with
portfolio margining, the Exchange may consider whether nonequity
products should be eligible for portfolio margining.
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    \40\ See SIA Letter.
    \41\ See SIA Letter.
    \42\ See Amendment No. 1.
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    One commenter sought clarification as to whether broker-dealers and
their customers could use shares of money market funds as collateral
for portfolio margining.\43\ The Exchange noted that it believes the
rule currently permits the use of money market funds in a portfolio
margin account, and clarified this issue through changes to the rule
text in Amendment No. 1 to the proposed rule change.\44\
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    \43\ See Federated Letter.
    \44\ See NYSE Response; see also Amendment No. 1 (adding
language regarding use of money market mutual funds in a portfolio
margin account).
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    One commenter objected to the $0.375 per contract minimum margin
requirement, and offered alternative lower minimums.\45\ In response to
this comment, the Exchange noted that the $.375 per contract minimum
provides a cushion against significant market movements. The Exchange
also noted that it is concerned about potential illiquidity in the
market and the creation of gap risk in the event both sides of a hedge
cannot be closed out simultaneously.
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    \45\ See SIA Letter.
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    Several commenters objected to the proposed prohibition on day
trading in a portfolio margin account.\46\ The Exchange noted that the
day trading prohibition is not intended to prohibit intraday trading in
an account that contains a large portfolio of hedged instruments and,
in response to the comments, amended the day trading rule language.\47\
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    \46\ See SIA and Fimat Letters.
    \47\ See Amendment No. 1.
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    Finally, the Exchange encouraged the Commission to move forward in
approving the amendments.\48\
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    \48\ See NYSE Response.
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IV. Discussion and Commission Findings and Accelerated Approval of
Amendment No. 1

    The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\49\ In particular, the Commission believes that the proposed
rule change, as amended, is consistent with Section 6(b)(5) of the Act
\50\ in that it is designed to perfect the mechanism of a free and open
market and to protect investors and the public interest. The Commission
notes that the proposed portfolio margin rule change is intended to
promote greater reasonableness, accuracy and efficiency with respect to
Exchange margin requirements and will better align margin requirements
with actual risk.
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    \49\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
    \50\ 15 U.S.C. 78f(b)(5).
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    Under a portfolio margin system, offsets are fully realized,
whereas under the Exchange's current margin rules, positions are
margined independent of each other and offsets between them do not
figure into the total margin requirement. A portfolio margin system
recognizes the offsetting gains from positions that react favorably in
market declines, while market rises are tempered by offsetting losses
from positions that react negatively. Consequently, a portfolio margin
approach can have a neutralizing effect on the volatility of margin
requirements. Thus, a portfolio margin system may better align a
customer's total margin requirement with the actual risk associated
with the customer's positions taken as a whole. The Commission further
notes portfolio margining may alleviate excessive margin calls, improve
cash flows and liquidity, and reduce volatility.
    Moreover, the Commission notes that approving the proposed rule
change would enhance portfolio margining by permitting more products to
be margined under this methodology. This is consistent with the
amendments to Regulation T made by the FRB in 1998, which sought to
advance the use of portfolio margining.\51\ The Commission also
believes that this expanded program for portfolio margining will serve
to advance the development of even more risk-sensitive approaches to
margining customer positions, including the use of internal models as
advocated by commenters. The Commission intends to work with the NYSE
and CBOE towards this objective after it gains experience with the
portfolio margining system of this proposal.
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    \51\ Federal Reserve System, ``Securities Credit Transactions;
Borrowing by Brokers and Dealers,'' 63 FR 2806 (January 16, 1998);
see also 12 CFR 220.1(b)(3)(i); see also letter from the FRB to
James E. Newsome, Acting Chairman, Commodity Futures Trading
Commission, and Laura S. Unger, Acting Chairman, Commission, dated
March 6, 2001. The FRB concluded the letter by writing ``the Board
anticipates that the creation of securities futures products will
provide another opportunity to develop more risk-sensitive,
portfolio-based approaches for all securities, including securities
options and securities futures products.'' Id.
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    The Commission believes that while the portfolio margining system
in the proposed rule will have the effect of reducing customer margin
(in most cases), the methodology is relatively conservative in that it
requires positions to be shocked at specified market move ranges (e.g.,
+/-15% for individual equities) that represent potential future stress
events. Essentially the same portfolio methodology has been used by
broker-dealers to calculate haircuts on options positions for net
capital purposes.\52\ Furthermore, the proposed requirement that a firm
receive pre-approval from the Exchange prior to offering portfolio
margining to its

customers, coupled with the requirement for enhanced risk management
procedures, is designed to ensure that only those firms with adequate
controls would be eligible to implement a customer portfolio margining
program.\53\
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    \52\ See Exchange Act Release No. 38248 (February 6, 1997), 62
FR 6474 (February 12, 1997).
    \53\ The proposed rules also would continue to require a minimum
per contract charge of $.375. The Commission also notes that the
proposed rules contain a leverage test under which a broker-dealer
cannot permit the amount of portfolio margin required of its
customers to exceed 10 times the firm's net capital.
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Accelerated Approval of Amendment No. 1

    The Exchange also has requested that the Commission approve
Amendment No. 1 to the proposed rule change prior to the thirtieth day
after publication of notice of the filing in the Federal Register. The
Commission believes that the changes in Amendment No. 1 to the proposed
rule change do not raise significant new or unique issues from those
previously raised in the earlier portfolio margin rule filings.\54\ The
changes proposed by the Exchange in Amendment No. 1 are designed to
ensure consistency with the companion CBOE proposed rule filing and to
respond to comments received as a result of the Federal Register
notice.\55\ The Commission believes that these proposed changes
strengthen the proposed rule change.
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    \54\ See supra note 3.
    \55\ See supra notes 5 and 7.
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    Accordingly, the Commission finds good cause for approving
Amendment No. 1 to the proposed rule change prior to the thirtieth day
after the date of publication of notice thereof in the Federal
Register. Specifically, the Commission believes that it is consistent
with Section 19(b)(2) of the Act \56\ to approve Amendment No. 1 to the
Exchange's proposed rule change prior to the thirtieth day after
publication of the notice of filing thereof in the Federal Register.
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    \56\ 15 U.S.C. 78s(b)(2).
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Uniform Effective Date

    The Commission believes that approving the amendment on an
accelerated basis will permit the NYSE to begin the process of
approving broker-dealers to implement portfolio margining and would
allow firms to begin to make the necessary changes and upgrades to
their systems, as well as their policies and procedures, in order to
accommodate customer portfolio. The Commission, however, believes that
if some firms receive NYSE approval to begin offering customer
portfolio margining to customers before other member firms, these other
firms would be at a competitive disadvantage. Therefore, the Commission
has determined to set a uniform effective date of April 2, 2007 for the
proposed rule change, as amended. As stated above, the Commission
believes that setting a uniform effective date will avoid placing some
members firms at a competitive disadvantage and reduce confusion in the
marketplace.

V. Solicitation of Comments of Amendment No. 1

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

Electronic Comments

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

Number SR-NYSE-2006-13 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-NYSE-2006-13. 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. 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 submission should refer to
File Number SR-NYSE-2006-13 and should be submitted on or before
January 8, 2007.

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\57\ that the proposed rule change (File No. SR-NYSE-2006-13), is
hereby approved, and that Amendment No. 1 to the proposed rule change
be, and hereby is, approved on an accelerated basis, both on a pilot
basis to expire on July 31, 2007. The effective date will be April 2,
2007.
---------------------------------------------------------------------------

    \57\ 15 U.S.C. 78s(b)(2).

    By the Commission.
Florence E. Harmon,
Deputy Secretary.

Exhibit A--Margin Requirements

Rule 431. (a) through (f) unchanged.

Portfolio Margin
    (g) As an alternative to the ``strategy-based'' margin requirements
set forth in sections (a) through (f) of this Rule, member
organizations may elect to apply the portfolio margin requirements set
forth in this section (g) to all margin equity securities \1\, listed
options, unlisted derivatives, and security futures products (as
defined in Section 3(a)(56) of the Securities Exchange Act of 1934 (the
``Exchange Act'')), provided that the requirements of section
(g)(6)(B)(1) of this Rule are met.
---------------------------------------------------------------------------

    \1\ For purposes of this section (g) of the Rule, the term
``margin equity security'' utilizes the definition at section 220.2
of Regulation T of the Board of Governors of the Federal Reserve
System, excluding a nonequity security.
---------------------------------------------------------------------------

    In addition, a member organization, provided that it is a Futures
Commission Merchant (``FCM'') and is either a clearing member of a
futures clearing organization or has an affiliate that is a clearing
member of a futures clearing organization, is permitted under this
section (g) to combine an eligible participant's related instruments as
defined in section (g)(2)(E), with listed index options, options on
exchange traded funds (``ETF''), index warrants and underlying
instruments and compute a margin requirement for such combined products
on a portfolio margin basis.
    The portfolio margin provisions of this Rule shall not apply to
Individual Retirement Accounts (``IRAs'').
    (1) Member organizations must monitor the risk of portfolio margin
accounts and maintain a comprehensive written risk analysis methodology
for assessing the potential risk to the member organization's capital
over a

specified range of possible market movements of positions maintained in
such accounts. The risk analysis methodology shall specify the
computations to be made, the frequency of computations, the records to
be reviewed and maintained, and the person(s) within the organization
responsible for the risk function. This risk analysis methodology must
be filed with the New York Stock Exchange (``Exchange''), or the member
organization's designated examining authority (``DEA''), if other than
the Exchange, and submitted to the Securities and Exchange Commission
(``SEC'') prior to the implementation of portfolio margining. In
performing the risk analysis of portfolio margin accounts required by
this Rule, each member organization shall include in the written risk
analysis methodology procedures and guidelines for:
    (A) Obtaining and reviewing the appropriate account documentation
and financial information necessary for assessing the amount of credit
to be extended to eligible participants.
    (B) The determination, review and approval of credit limits to each
eligible participant, and across all eligible participants, utilizing a
portfolio margin account,
    (C) Monitoring credit risk exposure to the member organization from
portfolio margin accounts, on both an intra-day and end of day basis,
including the type, scope and frequency of reporting to senior
management,
    (D) The use of stress testing of portfolio margin accounts in order
to monitor market risk exposure from individual accounts and in the
aggregate,
    (E) The regular review and testing of these risk analysis
procedures by an independent unit such as internal audit or other
comparable group,
    (F) Managing the impact of credit extended related to portfolio
margin accounts on the member organization's overall risk exposure,
    (G) The appropriate response by management when limits on credit
extensions related to portfolio margin accounts have been exceeded, and
    (H) Determining the need to collect additional margin from a
particular eligible participant, including whether that determination
was based upon the creditworthiness of the participant and/or the risk
of the eligible product.
    Moreover, management must periodically review, in accordance with
written procedures, the member organization's credit extension
activities for consistency with these guidelines. Management must
periodically determine if the data necessary to apply this section (g)
is accessible on a timely basis and information systems are available
to adequately capture, monitor, analyze and report relevant data.
    (2) Definitions.--For purposes of this section (g), the following
terms shall have the meanings specified below:
    (A) For purposes of portfolio margin requirements the term
``equity'', as defined in section (a)(4) of this Rule, includes the
market value of any long or short positions held in an eligible
participant's account.
    (B) The term ``listed option'' means any equity-based or equity
index-based option traded on a registered national securities exchange
or automated facility of a registered national securities association.
    (C) The term ``portfolio'' means any eligible product, as defined
in section (g)(6)(B)(1), grouped with its underlying instruments and
related instruments.
    (D) The term ``product group'' means two or more portfolios of the
same type (see table in section (g)(2)(G) below) for which it has been
determined by Rule 15c3-1a under the Exchange Act that a percentage of
offsetting profits may be applied to losses at the same valuation
point.
    (E) The term ``related instrument'' within a security class or
product group means broad-based index futures and options on broad-
based index futures covering the same underlying instrument. The term
``related instrument'' does not include security futures products.
    (F) The term ``security class'' refers to all listed options,
security futures products, unlisted derivatives, and related
instruments covering the same underlying instrument and the underlying
instrument itself.
    (G) The term ``theoretical gains and losses'' means the gain and
loss in the value of individual eligible products and related
instruments at ten equidistant intervals (valuation points) ranging
from an assumed movement (both up and down) in the current market value
of the underlying instrument. The magnitude of the valuation point
range shall be as follows:

------------------------------------------------------------------------
                                                         Up/down market
                                                        move (high & low
                    Portfolio type                          valuation
                                                             points)
------------------------------------------------------------------------
High Capitalization, Broad-based Market Index \2\.....           +6%/-8%
Non-High Capitalization, Broad-based Market Index \3\.            +/-10%
Any other eligible product that is, or is based on, an            +/-15%
 equity security or a narrow-based index..............
------------------------------------------------------------------------

    (H) The term ``underlying instrument'' means a security or security
index upon which any listed option, unlisted derivative, security
future, or broad-based index future is based.
    (I) The term ``unlisted derivative'' means any equity-based or
equity index-based unlisted option, forward contract, or security-based
swap that can be valued by a theoretical pricing model approved by the
SEC.
    (3) Approved Theoretical Pricing Models.--Theoretical pricing
models must be approved by the SEC.
    (4) Eligible Participants.--The application of the portfolio margin
provisions of this section (g) is limited to the following:
    (A) Any broker or dealer registered pursuant to Section 15 of the
Exchange Act;
    (B) Any member of a national futures exchange to the extent that
listed index options hedge the member's index futures; and
    (C) Any person or entity not included in sections (g)(4)(A) and
(g)(4)(B) above approved for uncovered options and, if transactions in
security futures are to be included in the account, approval for such
transactions is also required. However, an eligible participant under
this section (g)(4)(C) may not establish or maintain positions in
unlisted derivatives unless minimum equity of at least five million
dollars is established and maintained with the member organization. For
purposes of this minimum equity requirement, all securities and futures
accounts carried by the member organization for the same eligible
participant may be combined provided ownership across the accounts is
identical. A guarantee pursuant to section (f)(4) of this Rule is

not permitted for purposes of the minimum equity requirement.
    (5) Opening of Accounts.
    (A) Member organizations must notify and receive approval from the
Exchange or the member organization's DEA, if other than the Exchange,
prior to establishing a portfolio margin methodology for eligible
participants.
    (B) Only eligible participants that have been approved to engage in
uncovered short option contracts pursuant to Exchange Rule 721, or the
rules of the member organization's DEA, if other than the Exchange, are
permitted to utilize a portfolio margin account.
    (C) On or before the date of the initial transaction in a portfolio
margin account, a member organization shall:
    (1) Furnish the eligible participant with a special written
disclosure statement describing the nature and risks of portfolio
margining which includes an acknowledgement for all portfolio margin
account owners to sign, attesting that they have read and understood
the disclosure statement, and agree to the terms under which a
portfolio margin account is provided (see Exchange Rule 726(d)), and
    (2) Obtain the signed acknowledgement noted above from the eligible
participant and record the date of receipt.
    (6) Establishing Account and Eligible Positions.
    (A) For purposes of applying the portfolio margin requirements
prescribed in this section (g), member organizations are to establish
and utilize a specific securities margin account, or sub-account of a
margin account, clearly identified as a portfolio margin account that
is separate from any other securities account carried for an eligible
participant.
---------------------------------------------------------------------------

    \2\ In accordance with section (b)(1)(i)(B) of Rule 15c3-1a
(Appendix A to Rule 15c3-1) under the Securities Exchange Act of
1934, 17 CFR 240.15c3-1a(b)(1)(i)(B).
    \3\ See footnote above.
---------------------------------------------------------------------------

    A margin deficit in the portfolio margin account of an eligible
participant may not be considered as satisfied by excess equity in
another account. Funds and/or securities must be transferred to the
deficient account and a written record created and maintained. However,
if a portfolio margin account is carried as a sub-account of a margin
account, excess equity in the margin account (determined in accordance
with the rules applicable to a margin account other than a portfolio
margin account) may be used to satisfy a margin deficit in the
portfolio margin sub-account without having to transfer any funds and/
or securities.
    (B) Eligible Products.
    (1) For eligible participants as described in sections (g)(4)(A)
through (g)(4)(C), a transaction in, or transfer of, an eligible
product may be effected in the portfolio margin account. Eligible
products under this section (g) consist of:
    (i) A margin equity security (including a foreign equity security
and option on a foreign equity security, provided the security is
deemed to have a ``ready market'' under SEC Rule 15c3-1 or a ``no-
action'' position issued thereunder, and a control or restricted
security, provided the security has met the requirements in a manner
consistent with SEC Rule 144 or an SEC ``no-action'' position issued
thereunder, sufficient to permit the sale of the security, upon
exercise or assignment of any listed option or unlisted derivative
written or held against it, without restriction).
    (ii) A listed option on an equity security or index of equity
securities,
    (iii) A security futures product,
    (iv) An unlisted derivative on an equity security or index of
equity securities,
    (v) A warrant on an equity security or index of equity securities,
    (vi) A related instrument as defined in section (g)(2)(E).
    (7) Margin Required.--The amount of margin required under this
section (g) for each portfolio shall be the greater of:
    (A) the amount for any of the ten equidistant valuation points
representing the largest theoretical loss as calculated pursuant to
section (g)(8) below, or
    (B) for eligible participants as described in section (g)(4)(A)
through (g)(4)(C), $.375 for each listed option, unlisted derivative,
security future product, and related instrument, multiplied by the
contract's or instrument's multiplier, not to exceed the market value
in the case of long contracts in eligible products.
    (C) Account guarantees pursuant to section (f)(4) of this Rule are
not permitted for purposes of meeting margin requirements.
    (D) Positions other than those listed in section (g)(6)(B)(1) above
are not eligible for portfolio margin treatment. However, positions not
eligible for portfolio margin treatment (except for ineligible related
instruments) may be carried in a portfolio margin account, provided the
member organization has the ability to apply the applicable strategy
based margin requirements promulgated under this Rule. Shares of a
money market mutual fund may be carried in a portfolio margin account,
also subject to the applicable strategy based margin requirements under
this Rule provided that:
    (1) The customer waives any right to redeem shares without the
member organization's consent, s
    (2) The member organization (or, if the shares are deposited with a
clearing organization, the clearing organization) obtains the right to
redeem shares in cash upon request,
    (3) The fund agrees to satisfy any conditions necessary or
appropriate to ensure that the shares may be redeemed in cash, promptly
upon request, and
    (4) The member organization complies with the requirements of
Section 11(d)(1) of the Exchange Act and Rule 11d1-2 thereunder.
    (8) Method of Calculation.
    (A) Long and short positions in eligible products including
underlying instruments and related instruments, are to be grouped by
security class; each security class group being a ``portfolio''. Each
portfolio is categorized as one of the portfolio types specified in
section (g)(2)(G) above as applicable.
    (B) For each portfolio, theoretical gains and losses are calculated
for each position as specified in section (g)(2)(G) above. For purposes
of determining the theoretical gains and losses at each valuation
point, member organizations shall obtain and utilize the theoretical
values of eligible products as described in this section (g) rendered
by an approved theoretical pricing model.
    (C) Offsets. Within each portfolio, theoretical gains and losses
may be netted fully at each valuation point. Offsets between portfolios
within the eligible product groups, as described in section (g)(2)(G),
may then be applied as permitted by Rule 15c3-1a under the Exchange
Act.
    (D) After applying the offsets above, the sum of the greatest loss
from each portfolio is computed to arrive at the total margin required
for the account (subject to the per contract minimum).
    (9) Portfolio Margin Minimum Equity Deficiency.
    (A) If, as of the close of business, the equity in the portfolio
margin account of an eligible participant as described in section
(g)(4)(C), declines below the five million dollar minimum equity
required, if applicable, and is not restored to at least five million
dollars within three business days by a deposit of funds and/or
securities, member organizations are prohibited from accepting new
opening orders beginning on the fourth business day, except that new
opening orders entered for the purpose of reducing market risk may be
accepted if the result would be to lower margin requirements. This
prohibition shall remain in effect until,
    (1) Equity of five million dollars is established or,
    (2) All unlisted derivatives are liquidated or transferred from the

portfolio margin account to the appropriate securities account.
    (B) Member organizations will not be permitted to deduct any
portfolio margin minimum equity deficiency amount from Net Capital in
lieu of collecting the minimum equity required.
    (10) Portfolio Margin Deficiency
    (A) If, as of the close of business, the equity in the portfolio
margin account of an eligible participant, as described in section
(g)(4)(A) through (g)(4)(C), is less than the margin required, the
eligible participant may deposit additional funds and/or securities or
establish a hedge to meet the margin requirement within three business
days. After the three business day period, member organizations are
prohibited from accepting new opening orders, except that new opening
orders entered for the purpose of reducing market risk may be accepted
if the result would be to lower margin requirements. In the event an
eligible participant fails to hedge existing positions or deposit
additional funds and/or securities in an amount sufficient to eliminate
any margin deficiency after three business days, the member
organization must liquidate positions in an amount sufficient to, at a
minimum, lower the total margin required to an amount less than or
equal to the account equity.
    (B) If the portfolio margin deficiency is not met by the close of
business on the next business day after the business day on which such
deficiency arises, member organizations will be required to deduct the
amount of the deficiency from Net Capital until such time as the
deficiency is satisfied.
    (C) Member organizations will not be permitted to deduct any
portfolio margin deficiency amount from Net Capital in lieu of
collecting the margin required.
    (D) The Exchange, or the member organization's DEA, if other than
the Exchange, may grant additional time for an eligible participant to
meet a portfolio margin deficiency upon written request, which is
expected to be granted in extraordinary circumstances only.
    (E) Member organizations should not permit an eligible participant
to make a practice of meeting a portfolio margin deficiency by
liquidation. Member organizations must have procedures in place to
identify accounts that periodically liquidate positions to eliminate
margin deficiencies, and the member organization is expected to take
appropriate action when warranted. Liquidations to eliminate margin
deficiencies that are caused solely by adverse price movements may be
disregarded.
    (11) Determination of Value for Margin Purposes.--For the purposes
of this section (g), all eligible products shall be valued at current
market prices. Account equity for the purposes of sections (g)(9)(A)
and (g)(10)(A) shall be calculated separately for each portfolio margin
account.
    (12) Net Capital Treatment of Portfolio Margin Accounts.
    (A) No member organization that requires margin in any portfolio
margin account pursuant to section (g) of this Rule shall permit the
aggregate portfolio margin requirements to exceed ten times its Net
Capital for any period exceeding three business days. The member
organization shall, beginning on the fourth business day, cease opening
new portfolio margin accounts until compliance is achieved.
    (B) If, at any time, a member organization's aggregate portfolio
margin requirements exceed ten times its Net Capital the member
organization shall immediately transmit telegraphic or facsimile notice
of such deficiency to the principal office of the Securities and
Exchange Commission in Washington, D.C., the district or regional
office of the Securities and Exchange Commission for the district or
region in which the member organization maintains its principal place
of business; and to the Exchange, or the member organization's DEA, if
other than the Exchange.
    (13) Day Trading Requirements.--The day trading restrictions
promulgated under section (f)(8)(B) of this Rule shall not apply to
portfolio margin accounts that establish and maintain at least five
million dollars in equity, provided a member organization has the
ability to monitor the intra-day risk associated with day trading.
Portfolio margin accounts that do not establish and maintain at least
five million dollars in equity will be subject to the day trading
restrictions under section (f)(8)(B), provided the member organization
has the ability to apply the applicable day trading requirements under
this Rule. However, if the position or positions day traded were part
of a hedge strategy, the day trading restrictions will not apply. A
``hedge strategy'' for the purpose of this rule means a transaction or
a series of transactions that reduces or offsets a material portion of
the risk in a portfolio. Member organizations are expected to monitor
these portfolio margin accounts to detect and prevent circumvention of
the day trading requirements.
    (14) Requirements to Liquidate
    (A) A member organization is required immediately either to
liquidate, or transfer to another broker-dealer eligible to carry
portfolio margin accounts, all portfolio margin accounts with positions
in related instruments, if the member organization is:
    (1) Insolvent as defined in section 101 of title 11 of the United
    States Code, or is unable to meet its obligations as they mature;
    (2) the subject of a proceeding pending in any court or before any
agency of the United States or any State in which a receiver, trustee,
or liquidator for such debtor has been appointed;
    (3) not in compliance with applicable requirements under the
Exchange Act or rules of the Securities and Exchange Commission or any
self-regulatory organization with respect to financial responsibility
or hypothecation of eligible participant's securities; or
    (4) unable to make such computations as may be necessary to
establish compliance with such financial responsibility or
hypothecation rules.
    (B) Nothing in this section (14) shall be construed as limiting or
restricting in any way the exercise of any right of a registered
clearing agency to liquidate or cause the liquidation of positions in
accordance with its by-laws and rules.
    (15) Member organizations must ensure that portfolio margin
accounts are in compliance with all other applicable Exchange rules
promulgated in Rules 700 through 795.
* * * * *

Delivery of Options Disclosure Document and Prospectus

Rule 726 (a) through (c) unchanged.

Portfolio Margining Disclosure Statement and Acknowledgement
    (d) The special written disclosure statement describing the nature
and risks of portfolio margining, and acknowledgement for an eligible
participant signature, required by Rule 431(g)(5)(C) shall be in a
format prescribed by the Exchange or in a format developed by the
member organization, provided it contains substantially similar
information as in the prescribed Exchange format and has received the
prior written approval of the Exchange.

 [FR Doc. E6-21474 Filed 12-15-06; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)]
[Notices]
[Page 13825]
[FR Doc No: 2017-05096]

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2016-N-3995]

Agency Information Collection Activities; Submission for Office
of Management and Budget Review; Comment Request; Medical Devices;
Pediatric Uses of Devices; Requirement for Submission of Information on
Pediatric Subpopulations That Suffer From a Disease or Condition That a
Device Is Intended To Treat, Diagnose, or Cure

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing that a
proposed collection of information has been submitted to the Office of
Management and Budget (OMB) for review and clearance under the
Paperwork Reduction Act of 1995.

DATES: Fax written comments on the collection of information by April
14, 2017.

ADDRESSES: To ensure that comments on the information collection are
received, OMB recommends that written comments be faxed to the Office
of Information and Regulatory Affairs, OMB, Attn: FDA Desk Officer,
FAX:<PHONE_NUMBER>, or emailed to<EMAIL_ADDRESS>All
comments should be identified with the OMB control number 0910-0748.
Also include the FDA docket number found in brackets in the heading of
this document.

FOR FURTHER INFORMATION CONTACT: FDA PRA Staff, Office of Operations,
Food and Drug Administration, Three White Flint North 10A63, 11601
Landsdown St., North Bethesda, MD 20852<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: In compliance with 44 U.S.C. 3507, FDA has
submitted the following proposed collection of information to OMB for
review and clearance.

Medical Devices; Pediatric Uses of Devices; Requirement for Submission
of Information on Pediatric Subpopulations That Suffer From a Disease
or Condition That a Device Is Intended To Treat, Diagnose, or Cure

OMB Control Number 0910-0748--Extension

    Section 515A(a) of the Federal Food, Drug, and Cosmetic Act (the
FD&C Act) (21 U.S.C. 360e-1) requires applicants who submit certain
medical device applications to include readily available information
providing a description of any pediatric subpopulations that suffer
from the disease or condition that the device is intended to treat,
diagnose, or cure, and the number of affected pediatric patients. The
information submitted will allow FDA to track the number of approved
devices for which there is a pediatric subpopulation that suffers from
the disease or condition that the device is intended to treat,
diagnose, or cure and the review time for each such device application.
    These requirements apply to applicants who submit humanitarian
device exemption requests (HDEs), premarket approval applications
(PMAs) or PMA supplements, or a product development protocol (PDP).
    FDA expects to receive approximately 45 original PMA/PDP/HDE
applications each year, 5 of which FDA expects to be HDEs. This
estimate is based on the average of FDA's receipt of new PMA
applications. The Agency estimates that 10 of the estimated 40 original
PMA submissions will fail to provide the required pediatric use
information and their sponsors will therefore be required to submit PMA
amendments. The Agency also expects to receive approximately 700
supplements that will include the pediatric use information required by
section 515A(a) of the FD&C Act and part 814 (21 CFR part 814).
    All that is required is to gather, organize, and submit information
that is readily available, using any approach that meets the
requirements of section 515A(a) of the FD&C Act and part 814. We
believe that because the applicant is required to organize and submit
only readily available information, no more than 8 hours will be
required to comply. Furthermore, because supplements may include
readily available information on pediatric populations by referencing a
previous submission, FDA estimates the average time to obtain and
submit the required information in a supplement to be 2 hours. FDA
estimates that the total estimated burden is 1,760 hours.
    In the Federal Register of December 16, 2016 (81 FR 91181), FDA
published a 60-day notice requesting public comment on the proposed
collection of information. No comments were received.
    FDA estimates the burden of this collection of information as
follows:

                                 Table 1--Estimated Annual Reporting Burden \1\
----------------------------------------------------------------------------------------------------------------
                                                     Number of
     Activity/21 CFR section         Number of     responses per   Total annual   Average burden    Total hours
                                    respondents     respondent       responses     per response
----------------------------------------------------------------------------------------------------------------
Pediatric information in an                   30               1              30               8             240
 original PMA or PDP--
 814.20(b)(13)..................
Pediatric information in a PMA                10               1              10               8              80
 amendment--814.37(b)(2)........
Pediatric information in a PMA               700               1             700               2           1,400
 supplement--814.39(c)(2).......
Pediatric information in an HDE--              5               1               5               8              40
 814.104(b)(6)..................
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............  ..............  ..............           1,760
----------------------------------------------------------------------------------------------------------------
1 There are no capital costs or operating and maintenance costs associated with this collection of information.

    Dated: March 9, 2017.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2017-05096 Filed 3-14-17; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 79, Number 75 (Friday, April 18, 2014)]
[Rules and Regulations]
[Pages 21857-21861]
[FR Doc No: 2014-08747]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[Docket No. EPA-R02-OAR-2013-0592; FRL-9909-65-Region 2]

Approval and Promulgation of Air Quality Implementation Plans;
New York State; Redesignation of Areas for 1997 Annual and 2006 24-Hour
Fine Particulate Matter and Approval of the Associated Maintenance Plan

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: On June 27, 2013 the New York State Department of
Environmental Conservation (NYSDEC) submitted a request for the
Environmental Protection Agency (EPA) to approve the redesignation of
the New York portion of the New York-N.New Jersey-Long Island, NY-NJ-CT
nonattainment area for the 1997 annual and the 2006 24-hour Fine
Particle (PM2.5) National Ambient Air Quality Standards
(NAAQS). In conjunction with its redesignation request, New York
submitted a State Implementation Plan (SIP) revision containing a
maintenance plan for the area that provides for continued maintenance
of the 1997 annual and 2006 24-hour PM2.5 NAAQS. The
submittals included the 2007 ammonia (NH3), volatile organic
compounds (VOC), nitrogen oxides (NOX), PM10,
direct PM2.5 and sulfur dioxide (SO2) emissions
inventories submitted to meet the comprehensive emissions inventory
requirements of section 172(c)(3) of the Clean Air Act (CAA), and
accompanying motor vehicle emissions budgets. EPA is taking final
action to approve the requested SIP revisions and to redesignate the
New York portion of the New York-N.New Jersey-Long Island, NY-NJ-CT
nonattainment area to attainment for the 1997 annual and the 2006 24-
hour PM2.5 NAAQS.

DATES: This rule is effective on April 18, 2014.

ADDRESSES: EPA has established a docket for this action under Docket ID
Number EPA-R02-OAR-2013-0592. All documents in the docket are listed in
the http://www.regulations.gov Web site. Although listed in the
electronic docket, some information is not publicly available, i.e.,
confidential business information (CBI) or other information

whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically through http://www.regulations.gov or in hard copy for public inspection during normal
business hours at the Air Programs Branch, U.S. Environmental
Protection Agency, Region II, 290 Broadway, New York, New York 10007.

FOR FURTHER INFORMATION CONTACT: Gavin Lau (lau.gavin@epa.gov), Air
Programs Branch, 290 Broadway, 25th Floor, New York, New York 10007-
1866,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA.

I. Background and Purpose

    On June 27, 2013, the NYSDEC submitted a request to redesignate the
New York portion of the New York-N.New Jersey-Long Island, NY-NJ-CT
nonattainment area (NYNAA) from nonattainment to attainment for the
1997 annual and the 2006 24-hour PM2.5 NAAQS. Concurrently,
NYSDEC submitted a maintenance plan for the area as a SIP revision to
ensure continued attainment. NYSDEC provided supplemental submissions
to EPA on September 18, 2013, and February 27, 2014, to clarify
portions of the redesignation request, maintenance plan, and emissions
information.
    Specific details regarding EPA's analysis of New York's SIP can be
found in the proposed rulemaking published in the Federal Register (FR)
on February 11, 2014 (79 FR 8133).

II. What comments did EPA receive on its proposal?

    EPA received three comments in support of the proposal. No adverse
comments were received.

III. What corrections were made to emissions information?

    On February 27, 2014, NYSDEC submitted updated information
correcting PM10 emissions for eight emissions units. Control
efficiencies were not applied to these units which affects how rule
effectiveness is calculated. The corrections to the PM10
emissions do not affect the redesignation of the NYNAA for the 1997
annual and the 2006 24-hour PM2.5 NAAQS from nonattainment
to attainment. Typographical corrections were also made to
NH3 emissions information. The corrections do not affect air
quality or EPA's analysis which concludes that the NYNAA meets the
requirements for redesignation under section 107(d)(3)(E) of the CAA.
The State's maintenance plan shows that the NYNAA will continue to
maintain the 1997 annual and 2006 24-hour PM2.5 NAAQS and
demonstrates that PM2.5 and PM2.5 precursor
emissions inventories will remain below the attainment year inventories
through at least 2025. Tables 5, 6A, 6B, and 6C have been amended for
PM10 and NH3 emissions and now read as follows:

                                                      Table 5--2007 NYNAA PM2.5 Base Year Inventory
                                                                     [In tons/year]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Source sector                             VOC             NOX            PM10            PM2.5            SO2             NH3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Point...................................................        3,707.01       38,195.94      124,948.39      124,750.31       43,886.32          862.89
Nonpoint................................................      101,481.89       41,899.74       48,054.84       11,621.00       29,513.22        1,960.83
Nonroad.................................................       46,026.72       59,512.46        4,170.45        3,899.30        6,052.88            1.96
On road.................................................       71,379.46      149,501.91        9,723.36        6,835.30          982.77        3,584.40
Road Dust...............................................             N/A             N/A        3,483.59        1,174.60             N/A             N/A
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................      222,595.08      289,110.05      190,380.63      148,280.52       80,435.19        6,410.08
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                           Table 6A--2007 Emission Totals by Source Sector (tpy) for the NYNAA
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Source sector                             VOC             NOX            PM10            PM2.5            SO2             NH3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Point...................................................        3,707.01       38,195.94      124,948.39      124,750.31       43,886.32          862.89
Nonpoint................................................      101,481.89       41,899.74       48,054.84       11,621.00       29,513.22        1,960.83
Nonroad.................................................       46,026.72       59,512.46        4,170.45        3,899.30        6,052.88            1.96
On road.................................................       71,379.46      149,501.91        9,723.36        6,835.30          982.77        3,584.40
Road Dust...............................................             N/A             N/A        3,483.59        1,174.60             N/A             N/A
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................      222,595.08      289,110.05      190,380.63      148,280.52       80,435.19        6,410.08
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                           Table 6B--2017 Emission Totals by Source Sector (tpy) for the NYNAA
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Source sector                             VOC             NOX            PM10            PM2.5            SO2             NH3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Point...................................................        4,131.72       37,066.75      124,936.11      124,290.57       43,484.29          867.60
Nonpoint................................................       93,790.95       36,640.38       34,306.76        9,403.95        4,412.25           1,915
Nonroad.................................................       26,408.16       45,197.21        3,040.77        2,809.06        4,212.42            1.12
On road.................................................       33,083.83       68,362.66        7,171.83        3,897.71          939.20        2,340.95
Road Dust...............................................             N/A             N/A        2,959.46          954.01             N/A  ..............
Tappan Zee Project......................................             N/A          457.00             N/A             N/A             N/A  ..............
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................      157,414.67      187,724.00      172,414.93      141,355.28       53,048.17        5,124.68
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                           Table 6C--2025 Emission Totals by Source Sector (tpy) for the NYNAA
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Source sector                             VOC             NOX            PM10            PM2.5            SO2             NH3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Point...................................................        4,153.64       37,645.59      124,943.65      124,294.66       43,596.39          872.33
Nonpoint................................................       94,698.56       35,467.73       38,066.67       10,126.70        4,389.48        1,924.66
Nonroad.................................................       24,737.31       42,773.21        2,519.12        2,290.95        4,599.34            1.05
On road.................................................       26,911.17       51,260.81        6,952.22        3,291.09          935.40        2,443.53
Road Dust...............................................             N/A             N/A        3,184.31          960.05             N/A  ..............
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................      150,500.68      167,147.34      175,665.97      140,963.45       53,520.61        5,241.57
--------------------------------------------------------------------------------------------------------------------------------------------------------

IV. What is EPA's final action?

    EPA has evaluated New York's redesignation request and determined
that it meets the redesignation criteria set forth in the CAA, and is
consistent with Agency regulations and policy. EPA is taking several
actions on New York's request. EPA is approving New York's request for
the redesignation of the New York portion of the NY-NJ-CT nonattainment
area from nonattainment to attainment for the 1997 PM2.5
annual and the 2006 PM2.5 24-hour NAAQS. EPA is approving
New York's maintenance plan for the New York portion of the NY-NJ-CT
nonattainment area because it meets the requirements set forth in
section 175A of the CAA. EPA is approving the 2007 NH3, VOC,
NOX, PM10, direct PM2.5 and
SO2 emissions inventories as meeting the comprehensive
emissions inventory requirements of section 172(c)(3) of the CAA.
Additionally, EPA is approving the 2009, 2017, and 2025 motor vehicle
emissions budgets for PM2.5 and NOX.
    In accordance with 5 U.S.C. 553(d), EPA finds there is good cause
for this action to become effective immediately upon publication. A
delayed effective date is unnecessary due to the nature of a
redesignation to attainment, which eliminates CAA obligations that
would otherwise apply. The immediate effective date for this action is
authorized under both 5 U.S.C. 553(d)(1), which provides that
rulemaking actions may become effective less than 30 days after
publication if the rule ``grants or recognizes an exemption or relieves
a restriction,'' and section 553(d)(3), which allows an effective date
less than 30 days after publication ``as otherwise provided by the
agency for good cause found and published with the rule.'' The purpose
of the 30-day waiting period prescribed in section 553(d) is to give
affected parties a reasonable time to adjust their behavior and prepare
before the final rule takes effect. Today's rule, however, does not
create any new regulatory requirements such that affected parties would
need time to prepare before the rule takes effect. Rather, today's rule
relieves New York of the obligation to comply with nonattainment-
related planning requirements for this PM2.5 Area pursuant
to Part D of the CAA. For these reasons, EPA finds good cause under 5
U.S.C. 553(d) for this action to become effective on the date of
publication of this rulemaking.

V. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act.
Accordingly, this action merely approves state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
     does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the state, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by June 17, 2014. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed, and shall not postpone the effectiveness
of such rule or action. This action may

not be challenged later in proceedings to enforce its requirements.
(See section 307(b)(2).)

List of Subjects

40 CFR Part 52

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

40 CFR Part 81

    Environmental protection, Air pollution control.

    Dated: April 7, 2014.
Judith A. Enck,
Regional Administrator, Region 2.

    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 a new entry to the end of the
table in paragraph (e) to read as follows:

Sec.  52.1670  Identification of plan.

* * * * *
    (e) * * *

                       EPA-Approved New York Nonregulatory and Quasi-Regulatory Provisions
----------------------------------------------------------------------------------------------------------------
                                        Applicable
        Action/SIP Element            geographic or      New York submittal   EPA Approval date     Explanation
                                    nonattainment area          date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
Maintenance plan for the 1997 and  New York portion of  6/27/13 and          4/18/14 [Insert
 2006 PM2.5 National Ambient Air    the 1997 and 2006    supplemented on 9/   page number where
 Quality Standards. 2007            New York-Northern    18/13 and 2/27/14.   the document
 attainment year emissions          New Jersey-Long                           begins].
 inventory. 2009, 2017, and 2025    Island, NY-NJ-CT,
 motor vehicle emissions budget.    PM2.5
                                    nonattainment area.
----------------------------------------------------------------------------------------------------------------

0
3. Section 52.1678 is amended by adding new paragraphs (h), (i), and
(j) to read as follows:

Sec.  52.1678  Control strategy and regulations: Particulate matter.

* * * * *
    (h) Approval--The maintenance plan submitted on June 27, 2013, and
supplemented on September 18, 2013 and February 27, 2014, for the 1997
PM2.5 National Ambient Air Quality Standard and the 2006
PM2.5 National Ambient Air Quality Standard for the New York
portion of the New York-Northern New Jersey-Long Island, NY-NJ-CT,
PM2.5 nonattainment area has been approved.
    (1) The maintenance plan establishes 2009 motor vehicle emission
budget for the New York portion of the New York-Northern New Jersey-
Long Island, NY-NJ-CT, PM2.5 nonattainment area. The budget
is allocated as follows: 5,516.75 tons per year for PM2.5
and 106,020.09 tons per year for NOX.
    (2) The maintenance plan establishes 2017 motor vehicle emission
budget for the New York portion of the New York-Northern New Jersey-
Long Island, NY-NJ-CT, PM2.5 nonattainment area. The budget
is allocated as follows: 3,897.71 tons per year for PM2.5
and 68,362.66 tons per year for NOX.
    (3) The maintenance plan establishes 2025 motor vehicle emission
budget for the New York portion of the New York-Northern New Jersey-
Long Island, NY-NJ-CT, PM2.5 nonattainment area. The budget
is allocated as follows: 3,291.09 tons per year for PM2.5
and 51,260.81 tons per year for NOX.
    (i) Approval--The 2007 attainment year emissions inventory for the
New York portion of the New York-Northern New Jersey-Long Island, NY-
NJ-CT, PM2.5 nonattainment area. This inventory satisfies
the comprehensive emission inventory requirements of section 172(c)(3).
    (j) Approval--The 2007 base year inventory for PM10 to
establish a PM10 emissions inventory for New York County.

PART 81--[AMENDED]

0
4. The authority citation for part 81 continues to read as follows:

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

0
5. In Sec.  81.333:
0
a. The table entitled ``New York--PM2.5 (Annual NAAQS)'' is
amended by revising the entries under ``New York-N. New Jersey-Long
Island, NY-NJ-CT'' for ``Bronx County'', ``Kings County'', ``Nassau
County'', ``New York County'', ``Orange County'', ``Queens County'',
``Richmond County'', ``Rockland County'', ``Suffolk County'', and
``Westchester County''.
0
b. The table entitled ``New York--PM2.5 [24-hour NAAQS]'' is
amended by revising the entries under ``New York-N. New Jersey-Long
Island, NY-NJ-CT'' for ``Bronx County'', ``Kings County'', ``Nassau
County'', ``New York County'', ``Orange County'', ``Queens County'',
``Richmond County'', ``Rockland County'', ``Suffolk County'', and
``Westchester County''.
    The revisions read as follows:

Sec.  81.333  New York.

* * * * *

                       New York--PM[ihel2].[ihel5]
                             [Annual NAAQS]
------------------------------------------------------------------------
                                             Designation \a\
        Designated area         ----------------------------------------
                                    Date \1\               Type
------------------------------------------------------------------------

                              * * * * * * *
              New York-N. New Jersey-Long Island, NY-NJ-CT
------------------------------------------------------------------------
    Bronx County...............         4/18/14  Attainment.
    Kings County...............         4/18/14  Attainment.
    Nassau County..............         4/18/14  Attainment.
    New York County............         4/18/14  Attainment.
    Orange County..............         4/18/14  Attainment.
    Queens County..............         4/18/14  Attainment.
    Richmond County............         4/18/14  Attainment.
    Rockland County............         4/18/14  Attainment.
    Suffolk County.............         4/18/14  Attainment.
    Westchester County.........         4/18/14  Attainment.

                              * * * * * * *
------------------------------------------------------------------------
\a\ Includes Indian Country located in each county or area, except as
  otherwise specified.
\1\ This date is 90 days after January 5, 2005, unless otherwise noted.

                                           New York--PM[ihel2].[ihel5]
                                                 [24-Hour NAAQS]
----------------------------------------------------------------------------------------------------------------
                                    Designation for the 1997 NAAQS \a\     Designation for the 2006 NAAQS \a\
         Designated area          ------------------------------------------------------------------------------
                                      Date \1\             Type            Date \2\               Type
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
                                  New York-N. New Jersey-Long Island, NY-NJ-CT
----------------------------------------------------------------------------------------------------------------
    Bronx County.................  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    Kings County.................  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    Nassau County................  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    New York County..............  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    Orange County................  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    Queens County................  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    Richmond County..............  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    Rockland County..............  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    Suffolk County...............  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.
    Westchester County...........  ..............  Unclassifiable/             4/18/14  Attainment.
                                                    Attainment.

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
\a\ Includes Indian Country located in each county or area, except as otherwise specified.
\1\ This date is 90 days after January 5, 2005, unless otherwise noted.
\2\ This date is 30 days after November 13, 2009, unless otherwise noted.

* * * * *
[FR Doc. 2014-08747 Filed 4-17-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 76, Number 141 (Friday, July 22, 2011)]
[Notices]
[Page 44025]
[FR Doc No: 2011-18466]

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

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-3323-EM; Docket ID FEMA-2011-0001]

Nebraska; Emergency and Related Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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

SUMMARY: This is a notice of the Presidential declaration of an
emergency for the State of Nebraska (FEMA-3323-EM), dated June 18,
2011, and related determinations.

DATES: Effective Date: June 18, 2011.

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

SUPPLEMENTARY INFORMATION: Notice is hereby given that, in a letter
dated June 18, 2011, the President issued an emergency declaration
under the authority of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5121-5208 (the Stafford Act), as
follows:

    I have determined that the emergency conditions in certain areas
of the State of Nebraska resulting from flooding beginning on June
17, 2011, and continuing, are of sufficient severity and magnitude
to warrant an emergency declaration under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq.
(``the Stafford Act''). Therefore, I declare that such an emergency
exists in the State of Nebraska.
    You are authorized to provide appropriate assistance for
required emergency measures, authorized under Title V of the
Stafford Act, to save lives and to protect property and public
health and safety, and to lessen or avert the threat of a
catastrophe in the designated areas. Specifically, you are
authorized to provide assistance for emergency protective measures
(Category B), limited to direct Federal assistance, under the Public
Assistance program. This assistance excludes regular time costs for
subgrantees' regular employees.
    Consistent with the requirement that Federal assistance is
supplemental, any Federal funds provided under the Stafford Act for
Public Assistance will be limited to 75 percent of the total
eligible costs. In order to provide Federal assistance, you are
hereby authorized to allocate from funds available for these
purposes such amounts as you find necessary for Federal emergency
assistance and administrative expenses.
    Further, you are authorized to make changes to this declaration
for the approved assistance to the extent allowable under the
Stafford Act.

    The Federal Emergency Management Agency (FEMA) hereby gives notice
that pursuant to the authority vested in the Administrator, Department
of Homeland Security, under Executive Order 12148, as amended, Michael
L. Parker, of FEMA is appointed to act as the Federal Coordinating
Officer for this declared emergency.
    The following areas of the State of Nebraska have been designated
as adversely affected by this declared emergency:

    Boyd, Burt, Cass, Cedar, Dakota, Dixon, Douglas, Garden, Knox,
Lincoln, Morrill, Nemaha, Otoe, Richardson, Sarpy, Scotts Bluff,
Thurston, and Washington Counties for emergency protective measures
(Category B), limited to direct Federal assistance, under the Public
Assistance program.

    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.

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2011-18466 Filed 7-21-11; 8:45 am]
BILLING CODE 9111-23-P