[Federal Register Volume 87, Number 68 (Friday, April 8, 2022)]
[Notices]
[Pages 20835-20838]
[FR Doc No: 2022-07402]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC22-4-000]

Commission Information Collection Activities (FERC Form Nos. 6,
6T, 6-Q, and 6-QT); Comment Request; Extension

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of information collections and request for comments.

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SUMMARY: In compliance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the Federal Energy Regulatory Commission (Commission
or FERC) is soliciting public comment on the currently approved
information collections, FERC Form Nos. 6 and 6T (Annual Report of Oil
Pipeline Companies) and 6-Q and 6-QT (Quarterly Report of Oil Pipeline
Companies). The Commission published a 60-day notice in the Federal
Register on November 18, 2021. The Commission received two comments.

DATES: Comments on collections of information are due May 9, 2022.

ADDRESSES: Send written comments on FERC Form Nos. 6, 6T, 6-Q, and 6-QT
to the Office of Management and Budget (OMB) through www.reginfo.gov/public/do/PRAMain, Attention: Federal Energy Regulatory Commission Desk
Officer. Please identify the OMB Control Number 1902-0022 (FERC Form
No. 6), 1902-0206 (FERC Form No. 6-Q), 1902-0314 (FERC Form No. 6T),
and/or 1902-0310 (FERC Form No. 6-QT) in the subject line. Your
comments should be sent within 30 days of publication of this notice in
the Federal Register. Please submit copies of your comments (identified
by Docket No. IC22-4-000) to the Commission as noted below. Electronic
filing through http://www.ferc.gov, is preferred.
     Electronic Filing: Documents must be filed in acceptable
native applications and print-to-PDF, but not in scanned or picture
format.
     For those unable to file electronically, comments may be
filed by USPS mail or by hand (including courier) delivery.
    [cir] Mail via U.S. Postal Service only, addressed to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street NE, Washington, DC 20426.
    [cir] Hand (including courier) delivery to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
    Instructions: OMB submissions must be formatted and filed in
accordance with submission guidelines at www.reginfo.gov/public/do/PRAMain. Using the search function under the ``Currently Under Review
field,'' select Federal Energy Regulatory Commission; click ``submit''
and select ``comment'' to the right of the subject collection. FERC
submissions must be formatted and filed in accordance with submission
guidelines at: http://www.ferc.gov. For user assistance, contact FERC
Online Support by email at [email protected], or by phone at:
(866) 208-3676 (toll-free).
    Docket: Users interested in receiving automatic notification of
activity in this docket or in viewing/downloading comments and
issuances in this docket may do so at http://www.ferc.gov.

FOR FURTHER INFORMATION CONTACT: Ellen Brown may be reached by email at
[email protected] and telephone at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:
    Titles: FERC Form Nos. 6 and 6T (Annual Report of Oil Pipeline
Companies), 6-Q and 6-QT (Quarterly Report of Oil Pipeline Companies).
    OMB Control Nos.: 1902-0022 (FERC Form No. 6), 1902-0206 (FERC Form
No. 6-Q), 1902-0314 (FERC Form No. 6T), and 1902-0310 (FERC Form No. 6-
QT).
    Type of Respondent: Oil pipelines.
    Type of Request: Three-year extensions of FERC Form Nos. 6, 6T, 6-
Q, and 6-QT information collections with no changes to the current
reporting and recordkeeping requirements.1 2 This

renewal incorporates the requirements and burden represented by the 6T
and 6-QT into FERC Form Nos. 6 and 6Q, respectively. Staff anticipates
that the Commission will seek to retire the 6T and 6-QT as duplicative
after OMB decisions are made.
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    \1\ Due to expiration dates in 2019 for many of the Commission's
financial forms, the renewal work for several of the forms was in
process or pending at OMB during the 2019 Forms Refresh rulemaking
effort in Docket No. RM19-12-000. OMB can only have one OMB Control
No. pending review at a time. To submit the rulemaking timely to
OMB, we assigned alternate ``temporary'' information collection
numbers (FERC Form No. 6-T and FERC Form No. 6-QT). Accordingly,
FERC Form Nos. 6T and 6-QT represent the additional burden
associated with final rule in RM19-12-000. Revisions to the Filing
Process for Comm'n Forms, Order No. 859, 84 FR 30620 (June 27,
2019), 167 FERC ] 61,241 (2019).
    \2\ For purposes of this notice, unless otherwise stated, FERC
Form Nos. 6 and 6T are collectively referred to as ``FERC Form No.
6,'' and FERC Form Nos. 6Q and 6-QT are collectively referred to as
``FERC Form No. 6Q.''
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    The Commission published a 60-day notice on November 18, 2021 in
the Federal Register (86 FR 67052) and received comments from the
Bureau of Economic Analysis (BEA) and XBRL US, Inc. (XBRL US).

FERC Form No. 6, Annual Report of Oil Pipeline Companies

    In 1977, the Department of Energy Organization Act transferred to
the Commission from the Interstate Commerce Commission (ICC) the
responsibility to regulate oil pipeline companies. In accordance with
the transfer of authority, the Commission was delegated the
responsibility to require oil pipelines to file annual reports of
information necessary for the Commission to exercise its statutory
responsibilities.\3\ The transfer included the ICC Form P, the
predecessor to FERC Form No. 6.\4\
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    \3\ Section 402(b) of the Department of Energy Organization Act
(DOE Act), 42 U.S.C. 7172 provides that; ``[t]here are hereby
transferred to, and vested in, the Commission all functions and
authority of the Interstate Commerce Commission or any officer or
component of such Commission where the regulatory function
establishes rates or charges for the transportation of oil by
pipeline or established the valuation of any such pipeline.''
    \4\ The ICC developed the Form P to collect information on an
annual basis to enable it to carry out its regulation of oil
pipeline companies under the Interstate Commerce Act. A
comprehensive review of the reporting requirements for oil pipeline
companies was performed on September 21, 1982, when the Commission
issued Order 260 revising the former ICC Form P, ``Annual Report of
Carriers by Pipeline'' and redesignating it as FERC Form No. 6,
``Annual Report of Oil Pipeline Companies''.
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    To reduce burden on industry, FERC Form No. 6 has three tiers of
reporting requirements:
    1. Each oil pipeline carrier whose annual jurisdictional operating
revenues has been $500,000 or more for each of the three previous
calendar years must file FERC Form No. 6 (18 CFR 357.2 (a)). Oil
pipeline companies subject to the provisions of section 20 of the ICA
must submit FERC Form No. 6-Q (18 CFR 357.4(b)). Newly established
entities must use projected data to determine whether FERC Form No. 6
must be filed.
    2. Oil pipeline carriers exempt from filing FERC Form No. 6 whose
annual jurisdictional operating revenues have been more than $350,000
but less than $500,000 for each of the three previous calendar years
must prepare and file page 301, ``Operating Revenue Accounts (Account
600),'' and page 700, ``Annual Cost of Service Based Analysis
Schedule,'' of FERC Form No. 6. When submitting pages 301 and 700, each
exempt oil pipeline carrier must include page 1 of FERC Form No. 6, the
Identification and Attestation schedule (18 CFR 357.2 (a)(2)).
    3. Oil pipeline carriers exempt from filing FERC Form No. 6 and
page 301 and whose annual jurisdictional operating revenues were
$350,000 or less for each of the three previous calendar years must
prepare and file page 700, ``Annual Cost of Service Based Analysis
Schedule,'' of FERC Form No. 6. When submitting page 700, each exempt
oil pipeline carrier must include page 1 of FERC Form No. 6, the
Identification and Attestation schedule (18 CFR 357.2 (a)(3)).
    The Commission uses the data in FERC Form Nos. 6 and 6-Q to perform
audits and to review the financial condition of oil pipelines; assess
energy markets; conduct oil pipeline rate proceedings and economic
analysis; conduct research for use in administrative litigation; and
administer the requirements of the ICA. Data from FERC Form No. 6
facilitates the calculation of the actual rate of return on equity for
oil pipelines. The actual rate of return on equity is particularly
useful information when evaluating a pipeline's rates.
    The Commission also uses data on page 301 of FERC Form No. 6 to
compute annual charges which are then assessed against oil pipeline
companies to recover the Commission's annual costs as mandated by Order
No. 472. The annual charges are required by Section 3401 of the Omnibus
Budget Reconciliation Act of 1986.
    Furthermore, the majority of state regulatory commissions use FERC
Form Nos. 6 and 6-Q and the Commission's Uniform System of Accounts
(USofA) to satisfy their reporting requirements for those companies
under their jurisdiction. In addition, the public uses the data in FERC
Form Nos. 6 and 6-Q to assist in monitoring rates, the financial
condition of the oil pipeline industry, and in assessing energy
markets.

FERC Form No. 6-Q, Quarterly Financial Report of Oil Pipeline Companies

    The Commission uses the information collected in FERC Form No. 6-Q
to carry out its responsibilities in implementing the statutory
provisions of the ICA to include the authority to prescribe rules and
regulations concerning accounts, records, and memoranda, as necessary
or appropriate. Financial accounting and reporting provide necessary
information concerning a company's past performance and its future
prospects. Without reliable financial statements prepared in accordance
with the Commission's USofA and related regulations, it would be
difficult for the Commission to accurately determine the costs that
relate to a particular time period, service, or line of business.
    The Commission uses data from FERC Form No. 6-Q to assist in: (1)
Implementation of its financial audits and programs; (2) continuous
review of the financial condition of regulated companies; (3)
assessment of energy markets; and (4) rate proceedings and economic
analyses.
    Financial information reported on the quarterly FERC Form No. 6-Q
provides the Commission, as well as customers, investors and others, an
important tool to help identify emerging trends and issues affecting
jurisdictional entities within the energy industry. It also provides
timely disclosures of the impacts that new accounting standards, or
changes in existing standards, have on jurisdictional entities, as well
as the economic effects of significant transactions, events, and
circumstances. The reporting of this information by jurisdictional
entities assists the Commission in its analysis of profitability,
efficiency, risk, and in its overall monitoring.

XBRL, Order No. 859, and FERC Form Nos. 6 and 6-Q

    Previously, FERC Form Nos. 6 and 6-Q filers would transmit the
information in the forms to the Commission using a software application
called Visual FoxPro (VFP). This application is no longer supported by
its developer, Microsoft Corporation. As a result, in April 2015, the
Commission issued an order announcing its intention to replace the VFP
filing format for certain

Commission forms (including FERC Form Nos. 6 and 6-Q) with an
eXtensible Markup Language (XML)-based filing format. On June 20, 2019,
the Commission issued Order No. 859, which adopted XBRL as the standard
for filing FERC Form Nos. 6 and 6-Q and certain other Commission
forms.\5\
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    \5\ Revisions to the Filing Process for Comm'n Forms, Order No.
859, 167 FERC ] 61,241 (2019).
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FERC Form Nos. 6 and 6-Q

Estimates of Annual Burden \6\ and Cost: \7\
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    \6\ ``Burden'' is the total time, effort, or financial resources
expended by persons to generate, maintain, retain, disclose, or
provide information to or for a Federal agency. For further
explanation of what is included in the information collection
burden, refer to 5 CFR 1320.3. The burden hours and costs are
rounded for ease of presentation.
    \7\ The cost is based on FERC's 2021 Commission-wide average
salary cost (salary plus benefits) of $87.00/hour. The Commission
staff believes the FERC FTE (full-time equivalent) average cost for
wages plus benefits is representative of the corresponding cost for
the industry respondents.

                                    Form 6 (OMB Control No. 1902-0022) Including Form 6-T (OMB Control No. 1902-0314)
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                                                                 Average annual                       Average annual     Total average
                                                   Number of        number of      Total number of    burden (hrs.) &    annual burden       Cost per
                 Requirements                     respondents     responses per       responses          cost per        (hrs.) & total   respondent ($)
                                                                   respondent                          response ($)     annual cost ($)
                                                             1                 2    (1) * (2) = (3)                 4    (3) * (4) = (5)       (5) / (1)
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Form 6........................................             262                 1                262               161             42,182         $14,007
                                                                                $14,007         $3,669,834
Form 6-T......................................             262                 1                262                14              3,668           1,218
                                                                                $1,218           $319,116
                                               ---------------------------------------------------------------------------------------------------------
    Total (includes both Form 6 and Form 6-T).  ..............  ................  .................  ................             45,850          15,225
                                                                                $3,988,950
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                                   Form 6Q (OMB Control No. 1902-0206) Including Form 6-QT (OMB Control No. 1902-0310)
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                                                                 Average annual                       Average annual     Total average
                                                   Number of        number of      Total number of    burden (hrs.) &    annual burden       Cost per
                 Requirements                     respondents     responses per       responses          cost per        (hrs.) & total   respondent ($)
                                                                   respondent                          response  ($)    annual cost ($)
                                                             1                 2    (1) * (2) = (3)                 4    (3) * (4) = (5)       (5) / (1)
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Form 6Q.......................................             262                 3                786               150            117,900         $39,150
                                                                                $13,050        $10,257,300
Form 6-QT.....................................             262                 3               7786                 0                  0               0
                                                                                $0                 $0
                                               ---------------------------------------------------------------------------------------------------------
    Total (includes both Form 6Q and Form 6-    ..............  ................  .................  ................             17,900          39,150
     QT)......................................                                                                               $10,257,300
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    The quarterly filings are generally a subset of the annual filings.
For this reason, the XBRL burden (``6-QT'') hours are ``0'' because the
burden associated with the 6-QT is already incorporated into other
burden numbers for FERC Form No. 6-T.

60-Day Comments

Comments

    BEA Comments: BEA supports the collection of the FERC Form Nos. 6
and 6-Q data and comments that it is interested in any modifications
that are made to the forms. BEA explains that it uses data from FERC
Form Nos. 6 and 6-Q indirectly in estimating the U.S. Census Bureau's
Construction Value Put in Place (VPIP) for oil pipeline utilities. BEA
further explains that census VPIP serves a major source data input to
the national income and product account (NIPA) structures investment
estimates. BEA states that NIPA estimates for electric, gas, and
pipeline structures rely on the VPIP source data, and that estimates of
utility industry structures investiment for the BEA fixed assests
accounts relies upon the VIP-based NIPA structures estimates.
    BEA points out that the FERC Form No. 6 is used indirectly to
derive annual pipeline transportation output in the industry accounts
program. Moreover, BEA highlights that data obtained by the industry
accounts from the Association of Oil Pipelines ``Shifts in Petroleum
Transportation'' report is based, in part, on this survey. Finally, BEA
indicates that it currently uses the forms information indirectly
through the VPIP program and the trade association, and is considered
an indispensable data source to the NIPA estimates and industry account
estimates.
    FERC Response: The Commission finds BEA's comments regarding the
usefulness of the Form Nos. 6 and 6-Q to be helpful. With respect to
BEA's concerns about modifications to the forms, the Commission
generally does not make any changes to the data collected in the
financial forms without first offering a public process by which
interested parties, like BEA, may comment on any proposals to change
the collection.
    XBRL US Comment: XBRL US supports the current requirements that the
FERC Form Nos. 6 and 6-Q be prepared in XBRL format. XBRL US explains
that the requirement for XBRL-structured data ensures that the forms
data is machine-readable data, which XBRL US believes improves the
ability of the Commission to perform audits and reviews, and conduct
research. XBRL US further comments that the use of XBRL also enhances
the usefulness of the data for the public who rely on FERC data to
monitor rates as well as

the financial condition of the oil pipeline industry and the energy
markets.
    FERC Response: The Commission recognizes XBRL US's support for the
requirement that filers prepare the FERC Form Nos. 6 and 6-Q in XBRL
format.
    Abstract: Under the Interstate Commerce Act (ICA),\8\ the
Commission is authorized and empowered to make investigations and to
collect and record data to the extent the Commission may consider to be
necessary or useful for the purpose of carrying out the provisions of
the ICA. The Commission must ensure just and reasonable rates for
transportation of crude oil and petroleum products by pipelines in
interstate commerce.
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    \8\ 49 U.S.C. part 1, Sec.  20, 54 Stat. 916.
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30-Day Comments

    Comments: Comments are invited on: (1) Whether the collections of
information are necessary for the proper performance of the functions
of the Commission, including whether the information will have
practical utility; (2) the accuracy of the agency's estimates of the
burden and cost of information collections, including the validity of
the methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information collections; and (4) ways to
minimize the burden of the collection of information on those who are
to respond, including the use of automated collection techniques or
other forms of information technology.

    Dated: April 1, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-07402 Filed 4-7-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 75, Number 250 (Thursday, December 30, 2010)]
[Rules and Regulations]
[Pages 82275-82277]
[FR Doc No: 2010-32903]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 65

[Docket ID FEMA-2010-0003; Internal Agency Docket No. FEMA-B-1150]

Changes in Flood Elevation Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Interim rule.

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SUMMARY: This interim rule lists communities where modification of the
Base (1% annual-chance) Flood Elevations (BFEs) is appropriate because
of new scientific or technical data. New flood insurance premium rates
will be calculated from the modified BFEs for new buildings and their
contents.

DATES: These modified BFEs are currently in effect on the dates listed
in the table below and revise the Flood Insurance Rate Maps (FIRMs) in
effect prior to this determination for the listed communities.
    From the date of the second publication of these changes in a
newspaper of local circulation, any person has ninety (90) days in
which to request through the community that the Deputy Federal
Insurance and Mitigation Administrator reconsider the changes. The
modified BFEs may be changed during the 90-day period.

ADDRESSES: The modified BFEs for each community are available for
inspection at the office of the Chief Executive Officer of each
community. The respective addresses are listed in the table below.

FOR FURTHER INFORMATION CONTACT: Luis Rodriguez, Chief, Engineering
Management Branch, Federal Insurance and Mitigation Administration,
Federal Emergency Management Agency, 500 C Street, SW., Washington, DC
20472,<PHONE_NUMBER>, or (e-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The modified BFEs are not listed for each
community in this interim rule. However, the address of the Chief
Executive Officer of the community where the modified BFE
determinations are available for inspection is provided.
    Any request for reconsideration must be based on knowledge of
changed conditions or new scientific or technical data.
    The modifications are made pursuant to section 201 of the Flood
Disaster Protection Act of 1973, 42 U.S.C. 4105, and are in accordance
with the National Flood Insurance Act of 1968, 42 U.S.C. 4001 et seq.,
and with 44 CFR part 65.
    For rating purposes, the currently effective community number is
shown and must be used for all new policies and renewals.
    The modified BFEs are the basis for the floodplain management
measures that the community is required either to adopt or to show
evidence of being already in effect in order to qualify or to remain
qualified for participation in the National Flood Insurance Program
(NFIP).
    These modified BFEs, together with the floodplain management
criteria required by 44 CFR 60.3, are the minimum that are required.
They should not be construed to mean that the community must change any
existing ordinances that are more stringent in their floodplain
management requirements. The community may at any time enact stricter
requirements of its own or pursuant to policies established by other
Federal, State, or regional entities. The changes in BFEs are in
accordance with 44 CFR 65.4.
    National Environmental Policy Act. This interim rule is
categorically excluded from the requirements of 44 CFR part 10,
Environmental Consideration. An environmental

impact assessment has not been prepared.
    Regulatory Flexibility Act. As flood elevation determinations are
not within the scope of the Regulatory Flexibility Act, 5 U.S.C. 601-
612, a regulatory flexibility analysis is not required.
    Regulatory Classification. This interim rule is not a significant
regulatory action under the criteria of section 3(f) of Executive Order
12866 of September 30, 1993, Regulatory Planning and Review, 58 FR
51735.
    Executive Order 13132, Federalism. This interim rule involves no
policies that have federalism implications under Executive Order 13132,
Federalism.
    Executive Order 12988, Civil Justice Reform. This interim rule
meets the applicable standards of Executive Order 12988.

List of Subjects in 44 CFR Part 65

    Flood insurance, Floodplains, Reporting and recordkeeping
requirements.

0
Accordingly, 44 CFR part 65 is amended to read as follows:

PART 65--[AMENDED]

    1. The authority citation for part 65 continues to read as follows:

    Authority:  42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR,
1979 Comp., p. 376.

Sec.  65.4  [Amended]

0
2. The tables published under the authority of Sec.  65.4 are amended
as follows:

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                                                             Date and name of
         State and county           Location and case No.     newspaper where     Chief executive officer    Effective date of modification   Community
                                                           notice was published         of community                                             No.
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Alabama: Houston..................  City of Dothan (10-04- July 9, 2010; July    The Honorable Mike         November 15, 2010..............       010104
                                     5284P).                16, 2010; Dothan      Schmitz, Mayor, City of
                                                            Eagle.                Dothan, P.O. Box 2128,
                                                                                Dothan, AL 36302.
Arizona:
    Navajo........................  City of Show Low (09-  July 9, 2010; July    The Honorable Rick         June 28, 2010..................       040069
                                     09-2789P).             16, 2010; White       Fernau, Mayor, City of
                                                            Mountain              Show Low, 550 North 9th
                                                            Independent.          Place, Show Low, AZ
                                                                                85901.
Arizona:
    Yavapai.......................  Unincorporated areas   July 9, 2010; July    Mr. Chip Davis, Chairman,  November 15, 2010..............       040093
                                     of Yavapai County      16, 2010; The Daily   Yavapai County Board of
                                     (10-09-2672P).         Courier.              Supervisors, 1015 Fair
                                                                                Street, Prescott, AZ
                                                                                86305.
California:
    Merced........................  City of Merced (10-09- July 9, 2010; July    The Honorable Bill         November 15, 2010..............       060191
                                     0548P).                16, 2010; Merced      Spriggs, Mayor, City of
                                                            Sun-Star.             Merced, 678 West 18th
                                                                                Street, Merced, CA 95340.
    Sacramento....................  City of Sacramento     July 9, 2010; July    The Honorable Kevin        November 15, 2010..............       060266
                                     (10-09-0525P).         16, 2010; The         Johnson, Mayor, City of
                                                            Sacramento Bee.       Sacramento, 915 I
                                                                                Street, 5th Floor,
                                                                                Sacramento, CA 95814.
    San Bernardino................  City of Colton (09-09- July 9, 2010; July    The Honorable Kelly J.     November 15, 2010..............       060273
                                     2788P).                16, 2010; San         Chastain, Mayor, City of
                                                            Bernardino Bulletin.  Colton, 650 North La
                                                                                Cadena Drive, Colton, CA
                                                                                92324.
    San Bernardino................  City of San            July 9, 2010; July    The Honorable Patrick J.   November 15, 2010..............       060281
                                     Bernardino (09-09-     16, 2010; San         Morris, Mayor, City of
                                     2788P).                Bernardino Bulletin.  San Bernardino, 300
                                                                                North D Street, San
                                                                                Bernardino, CA 92418.
    Santa Barbara.................  Unincorporated areas   July 9, 2010; July    The Honorable Janet Wolf,  June 29, 2010..................       060331
                                     of Santa Barbara       16, 2010; Santa       Chair, Santa Barbara
                                     County (10-09-1185P).  Barbara News-Press.   County Board of
                                                                                Supervisors, 105 East
                                                                                Anapamu Street, Santa
                                                                                Barbara, CA 93101.
    Santa Clara...................  Unincorporated areas   June 30, 2010; July   The Honorable Ken Yeager,  June 23, 2010..................       060337
                                     of Santa Clara         7, 2010; Santa        Chairperson, Santa Clara
                                     County (09-09-2556P).  Clara Weekly.         County Board of
                                                                                Supervisors, 70 West
                                                                                Hedding Street, 10th
                                                                                Floor, San Jose, CA
                                                                                95110.
    Ventura.......................  City of Simi Valley    July 9, 2010; July    The Honorable Paul         November 15, 2010..............       060421
                                     (10-09-2783P).         16, 2010; The         Miller, Mayor, City of
                                                            Ventura County Star.  Simi Valley, 2929 Tapo
                                                                                Canyon Road, Simi
                                                                                Valley, CA 93063.
Florida:
    Miami-Dade....................  City of Sunny Isles    July 9, 2010; July    The Honorable Norman S.    June 30, 2010..................       120688
                                     Beach (10-04-4666P).   16, 2010; Miami       Edlecup, Mayor, City of
                                                            Daily Business        Sunny Isles Beach, 18070
                                                            Review.               Collins Avenue, Sunny
                                                                                Isles Beach, FL 33160.
    Orange........................  City of Orlando (10-   May 20, 2010; May     The Honorable Buddy Dyer,  September 24, 2010.............       120186
                                     04-0789P).             27, 2010; Orlando     Mayor, City or Orlando,
                                                            Weekly.               P.O. Box 4990, Orlando,
                                                                                FL 32802.
    Polk..........................  City of Winter Haven   June 4, 2010; June    The Honorable Jeff         October 12, 2010...............       120271
                                     (10-04-1058P).         11, 2010; News        Potter, Mayor, City of
                                                            Chief.                Winter Haven, 451 3rd
                                                                                Street Northwest, Winter
                                                                                Haven, FL 33881.
    Sumter........................  Unincorporated areas   July 22, 2010; July   Mr. Doug Gilpin,           November 26, 2010..............       120296
                                     of Sumter County (10-  29, 2010; Sumter      Chairman, Sumter County
                                     04-1900P).             County Times.         Board of Commissioners,
                                                                                910 North Main Street,
                                                                                Bushnell, FL 33513.
Nevada: Clark.....................  City of Las Vegas (10- July 1, 2010; July    The Honorable Oscar B.     June 22, 2010..................       325276
                                     09-1223P).             8, 2010; Las Vegas    Goodman, Mayor, City of
                                                            Review-Journal.       Las Vegas, City Hall,
                                                                                10th Floor, 400 Stewart
                                                                                Avenue, Las Vegas, NV
                                                                                89101.
New York: Niagara.................  Town of Cambria (07-   October 18, 2007;     The Honorable Wright H.    January 24, 2008...............       360499
                                     02-0919P).             October 25, 2007;     Ellis, Cambria Town
                                                            The Niagara Gazette.  Board Supervisor, 4160
                                                                                Upper Mountain Road,
                                                                                Sanborn, NY 14132.
North Carolina:
    Catawba.......................  City of Conover (10-   July 7, 2010; July    The Honorable Lee E.       July 30, 2010..................       370053
                                     04-2641P).             14, 2010; The         Moritz, Jr., Mayor, City
                                                            Observer News-        of Conover, P.O. Box
                                                            Enterprise.           549, Conover, NC 28613.

    Catawba.......................  City of Newton (10-04- July 7, 2010; July    The Honorable Robert A.    July 30, 2010..................       370057
                                     2641P).                14, 2010; The         Mullinax, Mayor, City of
                                                            Observer News-        Newton, 401 North Main
                                                            Enterprise.           Avenue, Newton, NC 28658.
Tennessee:
    Knox..........................  Unincorporated areas   July 9, 2010; July    The Honorable Mike         June 30, 2010..................       475433
                                     of Knox County (10-    16, 2010; Knoxville   Ragsdale, Knox County
                                     04-1555P).             News-Sentinel.        Mayor, 400 Main Street,
                                                                                Suite 615, Knoxville, TN
                                                                                37902.
    Shelby........................  Town of Collierville   June 24, 2010; July   The Honorable Stan         June 17, 2010..................       470263
                                     (10-04-1188P).         1, 2010; The          Joyner, Mayor, Town of
                                                            Collierville Herald.  Collierville, 500 Poplar
                                                                                View Parkway,
                                                                                Collierville, TN 38017.
Utah: Washington..................  City of Washington     July 9, 2010; July    The Honorable Kenneth      November 15, 2010..............       490182
                                     (10-08-0519P).         16, 2010; The         Neilson, Mayor, City of
                                                            Spectrum.             Washington, 111 North
                                                                                100 East, Washington, UT
                                                                                84780.
Wisconsin: Dane...................  City of Madison (10-   July 9, 2010; July    The Honorable Dave         July 30, 2010..................       550083
                                     05-3876P).             16, 2010; Wisconsin   Cieslewicz, Mayor, City
                                                            State Journal.        of Madison, 210 Martin
                                                                                Luther King, Jr.
                                                                                Boulevard, City-County
                                                                                Building, Room 403,
                                                                                Madison, WI 53703.
--------------------------------------------------------------------------------------------------------------------------------------------------------

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

    Dated: December 3, 2010.
Sandra K. Knight,
Deputy Federal Insurance and Mitigation Administrator, Mitigation,
Department of Homeland Security, Federal Emergency Management Agency.
[FR Doc. 2010-32903 Filed 12-29-10; 8:45 am]
BILLING CODE 9110-12-P


Our proposal would result in new ``collection of information''
requirements within the meaning of the Paperwork Reduction Act of 1995
(``PRA'').\122\ The proposed amendments would have an impact on the
current collection of information burdens of rule 203A-2(e) and Form
ADV under the Act. The existing collections of information that we are
proposing to amend are: (i) ``Exemption for Certain Investment Advisers
Operating Through the Internet (Rule 203A-2(e))'' (OMB control number
3235-0559); and (iii) ``Form ADV'' (OMB control number 3235-0049). The
Commission is submitting these collections of information to the OMB
for review and approval in accordance with 44 U.S.C. 3507(d) and 5 CFR
1320.11. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a currently valid OMB control number.
---------------------------------------------------------------------------

    \122\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------

    We discuss below these proposed amendments and new collection of
information burdens. Responses provided to the Commission in the
context of its examination and oversight program concerning the
proposed amendments to rule 203A-2(e) subject to the provisions of
applicable law. Responses to the disclosure requirements of the
proposed amendments to Forms ADV are not kept confidential.

B. Rule 203A-2(e) Recordkeeping Requirement

    The amended rule would require an internet investment adviser to
provide investment advice to all of its clients exclusively through an
operational interactive website,\123\ and would require advisers
registering with the Commission under the exemption to maintain a
record demonstrating that the adviser's advisory business has been
conducted through an operational interactive website in accordance with
the rule.\124\ Although most advisers registering under the rule
usually generate the necessary records in the ordinary conduct of their
Internet advisory business, the recordkeeping requirement of rule 203A-
2(e) nonetheless may impose a small additional burden on these
advisers. We estimate this recordkeeping burden to

amount to an average of four (4) hours annually per adviser.\125\
---------------------------------------------------------------------------

    \123\ See proposed rule 203A-2(e)(1)(i).
    \124\ See proposed rule 203A-2(e)(1)(ii). Under the proposed
rule, as under the current rule, advisers would need to maintain
records of their compliance with the rule. The proposed change to
remove the de minimis exception does not result in an increase in
the burden under the current rule but it has been accounted for in
our estimated burden for the proposed rule.
    \125\ The adviser would need to demonstrate that all of its
clients obtain investment advice from the firm exclusively through
an operational interactive website. Internet advisers that conduct
their business exclusively through interactive websites and whose
employees never directly communicate with clients would likely need
to spend very little time documenting their compliance with the
condition. An adviser that has personnel that assist clients
directly (whether through email, chatbots, telephonically, or
otherwise) with administrative functions like accessing the website
may need to spend more time.
---------------------------------------------------------------------------

    We estimate the number of respondents to this information
collection to be 266 advisers.\126\ Accordingly, we estimate the total
recordkeeping burden hours for all rule 203A-2(e) advisers to be 1,064
hours.\127\ We estimate that the total monetized cost to each internet
adviser to comply with the recordkeeping provision of rule 203A-2(e)
would be approximately $1,700,\128\ and that the total monetized cost
for the 266 advisers relying on this exemption at this time would be
$452,200.\129\
---------------------------------------------------------------------------

    \126\ This estimate is based on information reported by advisers
through the Investment Adviser Registration Depository (``IARD'').
Based on IARD data as of Dec. 31, 2022, of the approximately 15,360
SEC-registered advisers, 266 checked Item 2.A(11) of Part 1A of Form
ADV to indicate their basis for SEC registration under the Internet
Adviser Exemption. This estimate may be overinclusive to the extent
that advisers currently registered in reliance on the exemption,
including, but not limited to, those that currently have one or
fewer clients, are not able to satisfy the requirements of the
proposed amendments. The estimate may be underinclusive to the
extent that additional advisers seek to rely on the Internet Adviser
Exemption, whether due to the industry's increased reliance on
technology or otherwise.
    \127\ Four (4) hours x 266 advisers = 1,064 hours.
    \128\ We estimate the cost at a rate of $425 per hour. The
compensation rate for the current approved information collection
used is the rate for a Sr. Operations Manager in the Securities
Industry and Financial Markets Association's Report on Management &
Professional Earnings in the Securities Industry 2013 updated for
2023, and is modified to account for an 1,800-hour work-year and
inflation and multiplied by 5.35 to account for bonuses, firm size,
employee benefits and overhead. 4 hours x $425 per hour = $1,700.
    \129\ 1,064 hours x $425 per hour = $452,200. We do not expect
advisers to incur any external cost burden in connection with this
information collection because advisers registering under the rule
would generate the necessary records in the ordinary course of their
advisory businesses.
---------------------------------------------------------------------------

C. Form ADV

    We are proposing amendments to Form ADV Part 1A, Schedule D,
requiring advisers to indicate on Schedule D that, if applying for
registration with the Commission, the adviser will provide--and if
amending its existing registration and is continuing to rely on the
internet adviser exemption, that it has provided--investment advice to
all of its clients exclusively through an operational interactive
website.\130\ These changes are designed to provide information to the
Commission in connection with the registration and annual amendments to
Form ADV filed by internet investment advisers and would assist
Commission staff in connection with its review of existing
registrations and registration applications for compliance with the
rule and, as applicable, for possible deregistration for an inability
to meet the conditions of the rule. We do not believe that these
ministerial amendments to Form ADV requiring a very small number of
advisers to check a box make any substantive modifications to any
existing collection of information requirements or impose any new
substantive recordkeeping or information collection requirements within
the meaning of the Paperwork Reduction Act of 1995 (``PRA'').
Accordingly, we are not revising any burden and cost estimates in
connection with these amendments.
---------------------------------------------------------------------------

    \130\ See proposed rule 203A-2(e)(1)(iv).
---------------------------------------------------------------------------

D. Total Hour Burden Associated With Proposed Amendments to Rule 203A-
2(e)

    We estimate investment advisers that would be subject to the
amended rule would incur a total annual hour burden resulting from the
collections of information discussed above of approximately 1,064
hours, at a monetized cost of $452,200.\131\ The total external burden
costs would be $0.
---------------------------------------------------------------------------

    \131\ This estimate is based upon the following calculation:
1,064 hours x $425.
---------------------------------------------------------------------------

    A chart summarizing the various proposed components of the total
annual burden for investment advisers with custody of client assets is
below.

----------------------------------------------------------------------------------------------------------------
    Rule 203A-2(e) description of new                                                                External
              requirements                    Number of responses        Internal burden hours     burden costs
----------------------------------------------------------------------------------------------------------------
                      Final Estimates for Internet Investment Advisers under Rule 203A-2(e)
----------------------------------------------------------------------------------------------------------------
Annual burden for making records          266.......................  1,064 (4 hours per                       0
 sufficient to demonstrate compliance                                  adviser).
 with rule.
Annual burden for making representations  De Minimis................  De Minimis................               0
 on Form ADV, Part 1A, Schedule D.
----------------------------------------------------------------------------------------------------------------

    We estimate the total burden under proposed 203A-2(e) to amount to
an average of four (4) hours annually per adviser. This estimate is
identical to the estimate of the per-adviser burden under current 203A-
2(e). We believe that the only differences in burden hours and internal
monetized costs between current 203A-2(e) and proposed 203A-2(e) will
be determined by the number of advisers subject to the proposed rule.

E. Request for Comments

    We request comment on whether our estimates for burden hours and
any external costs as described above are reasonable. Pursuant to 44
U.S.C. 3506(c)(2)(B), the Commission solicits comments in order to: (i)
evaluate whether the proposed collections of information are necessary
for the proper performance of the functions of the Commission,
including whether the information will have practical utility; (ii)
evaluate the accuracy of the Commission's estimate of the burden of the
proposed collections of information; (iii) determine whether there are
ways to enhance the quality, utility, and clarity of the information to
be collected; and (iv) determine whether there are ways to minimize the
burden of the collections of information on those who are to respond,
including through the use of automated collection techniques or other
forms of information technology.
    In addition to these general requests for comment, we also request
comment specifically on the following issues:
    36. Our analysis relies upon certain assumptions, such as that 266
advisers will rely on the Internet Adviser Exemption and that it will
take advisers approximately 4 hours per year to comply with the
recordkeeping requirements proposed. Do commenters agree with these
assumptions? If not, why not, and what data would commenters propose?
    37. Our analysis relies upon the assumption that internet
investment advisers will incur no meaningful

burden to make the proposed representations on Form ADV, Part 1A,
Schedule D. Do commenters agree with this assumption? If not, why not,
and what burden hours and costs would commenters propose?
    The agency is submitting the proposed collections of information to
OMB for approval. Persons wishing to submit comments on the collection
of information requirements of the proposed amendments should direct
them to the Office of Management and Budget, Attention Desk Officer for
the Securities and Exchange Commission, Office of Information and
Regulatory Affairs, Washington, DC 20503, and should send a copy to
Vanessa A. Countryman, Secretary, Securities and Exchange Commission,
100 F Street NE, Washington, DC 20549-1090, with reference to File No.
S7-13-23. OMB is required to make a decision concerning the collections
of information between 30 and 60 days after publication of this
release; therefore, a comment to OMB is best assured of having its full
effect if OMB receives it within 30 days after publication of this
release. Requests for materials submitted to OMB by the Commission with
regard to these collections of information should be in writing, refer
to File No. S7-13-23, and be submitted to the Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736.

V. Initial Regulatory Flexibility Analysis

    The Commission has prepared the following Initial Regulatory
Flexibility Analysis (``IRFA'') in accordance with section 3(a) of the
Regulatory Flexibility Act \132\ regarding our proposed rule.
---------------------------------------------------------------------------

    \132\ 5 U.S.C. 603(a).
---------------------------------------------------------------------------

A. Reason for and Objectives of the Proposed Action

1. Proposed Amendments to Rule 203A-2(e)
    We are proposing amendments to the internet Adviser Exemption,
which we adopted in 2002. The current internet Adviser Exemption
generally requires an adviser to:
     Provide investment advice to all of its clients
exclusively through an interactive website, except that the investment
adviser may provide investment advice to fewer than 15 clients through
other means during the preceding twelve months; and
     Maintain records for a period of not less than five years
demonstrating compliance with the conditions of the rule.
    The proposed changes to the internet Adviser Exemption are designed
to reflect the evolution in technology and advisory industry since the
adoption in the rule. In addition, the proposed changes are designed to
better reflect the allocation of authority between the Federal
government and States that Congress intended under NSMIA and the Dodd-
Frank Act and enhance investor protection through more efficient use of
the Commission's limited oversight and examination resources by more
appropriately allocating Commission resources to advisers with national
presence and allowing smaller advisers with sufficient local presence
to be regulated by the states.
    Specifically, the rule would require an internet investment adviser
to provide investment advice to all of its clients exclusively through
an operational interactive website at all times during which the
adviser relies on the internet Adviser Exemption. The rule's definition
of interactive website would be amended to ``operational interactive
website'' and would be expanded to include mobile applications; the
definition would also be amended to define operational interactive
website as one through which the investment adviser provides digital
investment advisory services on an ongoing basis to more than one
client (except temporary technological outages of a de minimis
duration).\133\ The amended rule would also remove the current rule's
de minimis exception,\134\ which exception allows advisers relying on
the rule to provide advice to fewer than 15 clients through means other
than an interactive website during the preceding 12 months. As under
the current rule, the amended rule would require advisers to comply
with the requirement to maintain certain records in accordance with
amended rule 203A-2(e)(1)(ii). The reasons for, and objectives of, the
proposed amendments are discussed in more detail in sections I and II,
above. The burdens of these requirements on small advisers are
discussed below as well as above in sections III and IV, which discuss
the burdens on all advisers. The professional skills required to meet
these specific burdens are also discussed in section IV.
---------------------------------------------------------------------------

    \133\ See proposed rule 203A-2(e)(2). For purposes of the rule,
``digital investment advisory service'' would be defined as
investment advice to clients that is generated by the operational
interactive website's software-based models, algorithms, or
applications based on personal information each client supplies
through the operational interactive website. See id.
    \134\ See rule 203A-2(e)(1)(i).
---------------------------------------------------------------------------

2. Proposed Amendments to Form ADV
    The amended rule would also require an adviser to make
representations on its Form ADV, Part 1A, Schedule D, indicating that
it satisfies the requirements of the rule. This representation is
similar to the representation that advisers relying on the multi-state
exemption make on their Form ADV and would assist Commission staff in
connection with its review of registration applications and
deregistrations of advisers that are not in compliance with the rule.
The reasons for, and objectives of, the proposed amendments are
discussed in more detail in sections I and II, above. The burdens of
these requirements on small advisers are discussed below as well as
above in sections III and IV, which discuss the burdens on all
advisers. The professional skills required to meet these specific
burdens are also discussed in section IV.

B. Legal Basis

    The Commission is proposing to amend rule 203A-2(e) and amend Form
ADV under the authority set forth in sections 203A(c) and 211(a) of the
Investment Advisers Act of 1940 [15 U.S.C. 80b-3a(c) and 80b-11(a)].

C. Small Entities Subject to the Rule and Rule Amendments

    In developing these proposals, we have considered their potential
impact on small entities that would be subject to the proposed
amendments. The proposed amendments would affect a relatively small
number of investment advisers registered with the Commission, including
some small entities.
    Under Commission rules, for the purposes of the Advisers Act and
the RFA, an investment adviser generally is a small entity if it: (1)
has assets under management having a total value of less than $25
million; (2) did not have total assets of $5 million or more on the
last day of the most recent fiscal year; and (3) does not control, is
not controlled by, and is not under common control with another
investment adviser that has assets under management of $25 million or
more, or any person (other than a natural person) that had total assets
of $5 million or more on the last day of its most recent fiscal year.
Our proposed amendments would not affect most investment advisers that
are small entities (``small advisers'') because they are generally
registered with one or more state securities authorities and not with
the Commission. Under section

203A of the Advisers Act, unless subject to an exemption such as the
internet Adviser Exemption, most small advisers are prohibited from
registering with the Commission and are regulated by state regulators.
Based on IARD data, we estimate that as of December 31, 2022,
approximately 489 SEC-registered advisers are small entities under the
RFA.
1. Small Entities Subject to Amendments to the Internet Adviser Rule
    As discussed above in section III (the Economic Analysis), the
Commission estimates that based on IARD data as of December 31, 2022,
approximately 266 investment advisers would be subject to the amended
rule and the related proposed amendments to Form ADV. Of the
approximately 489 SEC-registered advisers that are small entities under
the RFA, 190 would be subject to the proposed amendments to rule 203A-
2(e) and the corresponding amendments to Form ADV.

D. Projected Reporting, Recordkeeping and Other Compliance Requirements

1. Proposed Amendments to Rule 203A-2(e)
    The proposed amendments to rule 203A-2(e) would impose certain
reporting and compliance requirements on investment advisers relying on
the exemption for registration with the Commission, including those
that are small entities. As under the current rule, all internet
investment advisers, which we estimate to be 266 advisers,\135\ would
be required to comply with the proposed rule's requirement to maintain
records in accordance with amended rule 203A-2(e)(1)(ii).\136\ The
proposed requirements and rule amendments, including compliance,
reporting, and recordkeeping requirements, are summarized in this IRFA
(section V.A., above). All of these proposed requirements are also
discussed in detail, above, in sections I and II, and these
requirements and the burdens on respondents, including those that are
small entities, are discussed above in sections III and IV (the
Economic Analysis and Paperwork Reduction Act Analysis, respectively)
and below. The professional skills required to meet these specific
burdens are also discussed in section IV.
---------------------------------------------------------------------------

    \135\ Based on IARD data as of Dec. 31, 2022.
    \136\ Proposed 203A-2(e)(1)(ii) is identical to current 203A-
2(e)(1)(ii) except for a conforming change to reflect the proposed
requirement that the interactive website be ``operational.''
---------------------------------------------------------------------------

    As discussed above, approximately 489 small advisers were
registered with us as of December 31, 2022, and we estimate that 190 of
those small advisers registered with us would be subject to the
proposed amendments (38.9% of all registered small advisers). As
discussed above in our Paperwork Reduction Act Analysis in section IV
above, the proposed amendments to rule 203A-2(e) under the Advisers Act
would create an annual burden of approximately 4 hours per adviser, or
760 hours in aggregate for small advisers.\137\ We therefore expect the
annual monetized aggregate cost to small advisers associated with our
proposed amendments to the Internet Adviser Exemption would be
$323,000.\138\
---------------------------------------------------------------------------

    \137\ 190 small advisers x 4 hours.
    \138\ We estimate the cost at a rate of $425 per hour. The
compensation rate for the current approved information collection
used is the rate for a Sr. Operations Manager in the Securities
Industry and Financial Markets Association's Report on Management &
Professional Earnings in the Securities Industry 2013 updated for
2023, and is modified to account for an 1,800-hour work-year and
inflation and multiplied by 5.35 to account for bonuses, firm size,
employee benefits and overhead. 760 hours x $425 = $323,000.
---------------------------------------------------------------------------

2. Proposed Amendments to Form ADV
    Proposed amendments to Form ADV would impose certain reporting and
compliance requirements on investment advisers relying on the rule to
register and remain registered with the Commission, including those
that are small entities. An adviser relying on the rule as a basis for
registration would be required to represent on Schedule D of its Form
ADV that it provides investment advice to all of its clients
exclusively through an operational interactive website.\139\ An adviser
registered under the rule and continuing to rely on the rule as a basis
for its registration would be required to make a representation that it
has provided investment advice to all of its clients exclusively
through an operational interactive website.\140\ The proposed
requirements and rule amendments, including recordkeeping requirements,
are summarized above in this IRFA (section V.A). All of these proposed
requirements are also discussed in detail, above, in section II, and
these requirements and the burdens on respondents, including those that
are small entities, are discussed above in sections III and IV (the
Economic Analysis and Paperwork Reduction Act Analysis) and below. The
professional skills required to meet these specific burdens are also
discussed in section IV.
---------------------------------------------------------------------------

    \139\ See proposed rule 203A-2(e)(1)(iv).
    \140\ See id.
---------------------------------------------------------------------------

    Our Economic Analysis (section III above) discusses these costs and
burdens for respondents, which include small advisers. As discussed
above in our Paperwork Reduction Act Analysis in section IV above, the
proposed amendments to Form ADV would not increase the annual burden
for advisers and would have no annual monetized cost.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission believes that there are no rules that duplicate,
overlap, or conflict with the proposed rule amendments.

F. Significant Alternatives

    The RFA directs the Commission to consider significant alternatives
that would accomplish our stated objectives, while minimizing any
significant adverse impact on small entities. We considered the
following alternatives for small entities in relation to our proposed
amendments to rule 203A-2(e) and the corresponding proposed amendments
to Form ADV: (i) differing compliance or reporting requirements that
take into account the resources available to small entities; (ii) the
clarification, consolidation, or simplification of compliance and
reporting requirements under the amended rule for such small entities;
(iii) the use of performance rather than design standards; and (iv) an
exemption from coverage of the proposals, or any part thereof, for such
small entities.
    Regarding the first and fourth alternatives, the Commission
believes that establishing different compliance or reporting
requirements for small advisers, or exempting small advisers from the
proposed rule, or any part thereof, would be inappropriate under these
circumstances. Because the protections of the Advisers Act are intended
to apply equally to clients of both large and small firms, it would be
inconsistent with the purposes of the Advisers Act to specify
differences for small entities under the proposed amendment to rule
203A-2(e) and Form ADV. As discussed above, the proposed amendments are
intended to better reflect the allocation of authority between the
Federal government and States that Congress intended under NSMIA and
the Dodd-Frank Act and would enhance investor protection through more
efficient use of the Commission's limited oversight and examination
resources by more appropriately allocating Commission resources to
advisers with national presence and allowing smaller advisers with
sufficient local presence to be regulated by the states. We believe
that these benefits should apply to clients of

smaller firms as well as larger firms. In addition, as discussed above,
our staff would use the corresponding information that advisers would
report on the proposed amended Form ADV to help determine compliance
with the rule and to help prepare for examinations of investment
advisers. Establishing different compliance or reporting requirements
for large and small advisers relying on the Internet Adviser Exemption
would negate these benefits and would be inconsistent with our mandate
to provide a system of public disclosure of investment adviser
information. An internet investment adviser that is a small entity,
however, by the nature of its business, would likely spend fewer
resources in maintaining records and completing Form ADV and amendments
than a larger adviser. Regarding the fourth alternative, specifically,
the Commission has considered exempting small advisers from the
proposed rule. Such an exemption would be inconsistent with the
intended purpose of the proposal, which, in part, is to provide
regulatory relief from multiple state regulatory requirements. Small
advisers are one of the primary beneficiaries of this exemption.
    Regarding the second alternative, we believe the current proposal
is clear and that further clarification, consolidation, or
simplification of the compliance requirements is not necessary. As
discussed above, the amended rule would require an internet investment
adviser to (i) provide investment advice to all of its clients
exclusively through an operational interactive website, (ii) maintain
records demonstrating that it provides investment advice to its clients
exclusively through an operational interactive website,\141\ and (iii)
represent on Schedule D of its Form ADV that it provides investment
advice to all of its clients exclusively through an operational
interactive website.\142\ These provisions would better reflect the
allocation of authority between the Federal government and States that
Congress intended under NSMIA and the Dodd-Frank Act and would enhance
investor protection through more efficient use of the Commission's
limited oversight and examination resources by more appropriately
allocating Commission resources to advisers with national presence and
allowing smaller advisers with sufficient local presence to be
regulated by the states. Further, our proposal to require the
representation on Schedule D of Form ADV would assist the Commission's
examination and enforcement capabilities, including assessing
compliance with rules, and therefore, it would provide important
investor protections.
---------------------------------------------------------------------------

    \141\ See proposed rule 203A-2(e)(1)(i) and (ii). As with the
current rule, the proposed rule amendments would provide that an
internet investment adviser does not control, is not controlled by,
and is not under common control with, another investment adviser
registered with the Commission solely in reliance on an adviser
registered under the Internet Adviser Exemption. See rule 203A-
2(e)(1)(iii); proposed rule 203A-2(e)(1)(iii).
    \142\ See proposed rule 203A-2(e)(1)(iv).
---------------------------------------------------------------------------

    Regarding the third alternative, we determined to use design
standards because we determined that removing the de minimis exception
and requiring internet investment advisers to exclusively advise
internet clients to be a design standard necessary to better reflect
Congress's intent under NSMIA and the Dodd-Frank Act.

G. Solicitation of Comments

    We encourage written comments on the matters discussed in this
IRFA. We solicit comment on the number of small entities subject to
proposed amendments to rule 203A-2(e) and related amendments to Form
ADV, as well as the potential impacts discussed in this analysis; and
whether the proposal could have an effect on small entities that has
not been considered. We request that commenters describe the nature of
any impact on small entities and provide empirical data to support the
extent of such impact.

VI. Consideration of Impact on the Economy

    For purposes of the Small Business Regulatory Enforcement Fairness
Act of 1996, or ``SBREFA,'' \143\ we must advise OMB whether a proposed
regulation constitutes a ``major'' rule. Under SBREFA, a rule is
considered ``major'' where, if adopted, it results in or is likely to
result in (1) an annual effect on the economy of $100 million or more;
(2) a major increase in costs or prices for consumers or individual
industries; or (3) significant adverse effects on competition,
investment or innovation.
---------------------------------------------------------------------------

    \143\ Public Law 104-121, Title II, 110 Stat. 857 (1996)
(codified in various sections of 5 U.S.C., 15 U.S.C., and as a note
to 5 U.S.C. 601).
---------------------------------------------------------------------------

    We request comment on the potential impact of the proposed rule
amendments on the economy on an annual basis. Commenters are requested
to provide empirical data and other factual support for their views to
the extent possible.

Statutory Authority

    The Commission is proposing to amend rule 203A-2(e) and amend Form
ADV under the authority set forth in sections 203A(c) and 211(a) of the
Investment Advisers Act of 1940 [15 U.S.C. 80b-3a(c) and 80b-11(a)].

List of Subjects in 17 CFR Parts 275 and 279

    Reporting and recordkeeping requirements; Securities.

Text of Proposed Rules and Rule and Form Amendments

    For the reasons set out in the preamble, title 17, chapter II of
the Code of Federal Regulations is proposed to be amended as follows:

PART 275--RULES AND REGULATIONS, INVESTMENT ADVISERS ACT OF 1940

0
1. The authority citation for part 275 continues to read as follows:

    Authority: 15 U.S.C. 80b-2(a)(11)(G), 80b-2(a)(11)(H), 80b-
2(a)(17), 80b-3, 80b-4, 80b-4a, 80b-6(4), 80b-6a, and 80b-11, unless
otherwise noted.
* * * * *
    Section 275.203A-2 is also issued under 15 U.S.C. 80b-3a.
* * * * *
0
2. Amend Sec.  275.203A-2 by revising paragraph (e) to read as follows:

Sec.  275.203A-2  Exemptions from prohibition on Commission
registration.

* * * * *
    (e) Internet investment advisers. (1) An investment adviser that:
    (i) Provides investment advice to all of its clients exclusively
through an operational interactive website at all times during which
the investment adviser relies on this paragraph (e);
    (ii) Maintains, in an easily accessible place, for a period of not
less than five years from the filing of a Form ADV that includes a
representation that the adviser is eligible to register with the
Commission under this paragraph (e), a record demonstrating that it
provides investment advice to its clients exclusively through an
operational interactive website in accordance with the limits in
paragraph (e)(1)(i) of this section; and
    (iii) Does not control, is not controlled by, and is not under
common control with, another investment adviser that registers with the
Commission under paragraph (b) of this section solely in reliance on
the adviser registered under this paragraph (e) as its registered
adviser.
    (2) For purposes of this paragraph (e), ``operational interactive
website'' means a website or mobile application through which the
investment adviser provides digital investment advisory services on an
ongoing basis to more than one client

(except during temporary technological outages of a de minimis
duration). For purposes of this rule, ``digital investment advisory
service'' is investment advice to clients that is generated by the
operational interactive website's software-based models, algorithms, or
applications based on personal information each client supplies through
the operational interactive website.
    (3) An investment adviser may rely on the definition of client in
Sec.  275.202(a)(30)-1 in determining whether it is eligible to rely on
this paragraph (e).

PART 279--FORMS PRESCRIBED UNDER THE INVESTMENT ADVISERS ACT OF
1940

0
3. The authority citation for part 279 continues to read as follows:

    Authority: The Investment Advisers Act of 1940, 15 U.S.C. 80b-1,
et seq., Pub. L. 111-203, 124 Stat. 1376.

0
4. Amend Form ADV (referenced in Sec.  279.1) by:
0
a. In the instructions to the form, Form ADV: Instructions for Part 1A,
by revising 2.i.;
0
b. In the Glossary of Terms by:
0
i. Redesignating paragraphs 14. through 42. as paragraphs 15. through
43.; and paragraphs 43. through 65. as paragraphs 45. through 67.; and
0
ii. Adding new paragraphs 13. and 44.;
0
c. In Part 1A, revising Item 2.A.(11); and
0
d. In Part 1A, Schedule D, by adding Section 2.A.(11).

    Note: Form ADV is attached as Appendix A to this document. Form
ADV will not appear in the Code of Federal Regulations.

    By the Commission.

    Dated: July 26, 2023.
Vanessa A. Countryman,
Secretary.

    Note: The following appendix will not appear in the Code of
Federal Regulations.

Appendix A--Form ADV

FORM ADV (Paper Version)

* * * * *

Form ADV: Instructions for Part 1A

* * * * *
    2. Item 2: SEC Registration and SEC Report by Exempt Reporting
Advisers
* * * * *
    i. Item 2.A.(11): Internet Adviser. You may check box 11 only if
you are eligible for the Internet Adviser Exemption from the
prohibition on SEC registration. See SEC rule 203A-2(e). If you
check box 11, you must complete Section 2.A.(11) of Schedule D. You
are eligible for this exemption if:
     You provide investment advice to all of your clients
exclusively through an operational interactive website at all times
during which you rely on rule 203A-2(e). Other forms of online or
internet investment advice do not qualify for this exemption;
     You maintain a record demonstrating that you provide
investment advice to your clients exclusively through an operational
interactive website in accordance with these limits.
* * * * *

Glossary of Terms

* * * * *
    13. Digital Investment Advisory Service: Investment advice to
clients that is generated by the operational interactive website's
software-based models, algorithms, or applications based on personal
information each client supplies through the operational interactive
website.
* * * * *
    44. Operational Interactive website: A website or mobile
application through which the investment adviser provides digital
investment advisory services on an ongoing basis to more than one
client (except during temporary technological outages of a de
minimis duration).
* * * * *

PART 1A

* * * * *
    Item 2. * * *
* * * * *
    (11) are an internet adviser relying on rule 203A-2(e);
    If you check this box, complete Section 2.A.(11) of Schedule D.
* * * * *

Schedule D

* * * * *

Section 2.A.(11) Internet Adviser

    If you are relying on rule 203A-2(e), the Internet Adviser
Exemption from the prohibition on registration, you are required to
make a representation about your eligibility for SEC registration.
By checking the appropriate box, you will be deemed to have made the
required representation.
    If you are applying for registration as an investment adviser
with the SEC or changing your existing Item 2 response regarding
your eligibility for SEC registration, you must make this
representation:
    [square] I will provide investment advice to all of my clients
exclusively through an operational interactive website.
    If you are filing an annual updating amendment to your existing
registration and are continuing to rely on the Internet Adviser
Exemption for SEC registration, you must make this representation:
    [square] I have provided and will continue to provide investment
advice to all of my clients exclusively through an operational
interactive website.
* * * * *
[FR Doc. 2023-16287 Filed 7-31-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 121 (Tuesday, June 23, 2020)]
[Notices]
[Page 37650]
[FR Doc No: 2020-13478]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. TX20-6-000]

TGP Battery Storage, LLC; Notice of Filing

    Take notice that on June 17, 2020, pursuant to sections 211of the
Federal Power Act, as amended,\1\ and Rule 211 and 214 of the Federal
Energy Regulatory Commission's (Commission) Rules of Practice and
Procedure,\2\ TGP Battery Storage, LLC (TGP) filed an application
requesting that the Commission issue an order directing San Diego Gas &
Electric Company (SDG&E) to provide interconnection and transmission
services for delivery of the output from TGP's proposed Valley Center
Renewable solar photovoltaic and battery energy storage generating
facility across SDG&E's Participating Transmission Owner
Interconnection Facilities to a Point of Interconnection with the
California Independent System Operator Corporation Controlled Grid,
including Network Upgrades to be constructed to accommodate service to
TGP.
---------------------------------------------------------------------------

    \1\ 16 U.S.C. 824j, (2018).
    \2\ 18 CFR 385.211, 385.214 (2019).
---------------------------------------------------------------------------

    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed on or before the comment date.
Anyone filing a motion to intervene or protest must serve a copy of
that document on the Applicant. On or before the comment date, it is
not necessary to serve motions to intervene or protests on persons
other than the Applicant.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://ferc.gov) using the
eLibrary link. Enter the docket number excluding the last three digits
in the docket number field to access the document. At this time, the
Commission has suspended access to the Commission's Public Reference
Room, due to the proclamation declaring a National Emergency concerning
the Novel Coronavirus Disease (COVID-19), issued by the President on
March 13, 2020. For assistance, contact FERC at
<EMAIL_ADDRESS>or call toll-free,<PHONE_NUMBER> or TYY,
(202) 502-8659.
    The Commission strongly encourages electronic filings of comments,
protests and interventions in lieu of paper using the eFiling link at
http://www.ferc.gov. Persons unable to file electronically may mail
similar pleadings to the Federal Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426. Hand delivered submissions in
docketed proceedings should be delivered to Health and Human Services,
12225 Wilkins Avenue, Rockville, Maryland 20852.
    Comment Date: 5:00 p.m. Eastern Time on July 8, 2020.

    Dated: June 17, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2020-13478 Filed 6-22-20; 8:45 am]
BILLING CODE 6717-01-P