1 Trifluralin Risk Assessment Overview ( August 30, 2004)

Introduction This document summarizes EPA's human health and environmental fate risk finding for the preemergence herbicide trifluralin. These findings are presented fully in the HED human health risk assessment document " Trifluralin: Human Health Risk Assessment" dated May 7, 2004; and the EFED water assessment document " Trifluralin  Drinking Water Assessment for Tolerance Reassessment Eligibility Decision", dated December 3, 2003.

The purpose of this overview is to assist the reader in understanding the conclusions reached in the risk assessments by identifying the key features and findings of each.

Use Profile $ Herbicide: Trifluralin is a selective, pre emergence, dinitroaniline herbicide primarily used in soybeans and cotton. Additionally, trifluralin is used on residential lawns, landscape ornamentals, trees, and vegetable gardens and is also marketed for use by professional applicators on residential turf, on golf courses, other turf such as recreational/ commercial areas, and on ornamental plantings. Important markets for trifluralin usage include: soybeans, cotton, wheat, alfalfa, sunflowers, and dry beans/ peas. However, use of this chemical is also important for minor crops such as peas, okra, sunflower, asparagus, peanuts, vegetables, tomatoes and beans.

$ Targeted Pest: Registered products containing trifluralin are intended for the control of annual grasses and certain broadleaf weeds.

$ Formulations: Trifluralin is formulated as a dust, emulsifiable concentrate, granular, emulsifiable concentrate/ liquid, and soluble concentrate. Trifluralin end use products for food and feed crops include emulsifiable concentrates ( EC, 36.4, 50.8% ai) and a granular formulation, ( G, 10%),( EC, 43% ai). For residential and other non agricultural uses, trifluralin is formulated as a granular ( G, 0.17  2.0% ai), which is the only formulation used on turf for this usage, and an emulsifiable concentrate liquid ( EC, 43% ai). 2 $ Method of Application: Currently, trifluralin may be applied: dormant, semi dormant, preplant pre transplant, pre emergence, post emergence, lay by or post harvest ( as a soil incorporated treatment), liquid sprays of water or liquid fertilizer, or impregnated on dry bulk fertilizer or clay granules. Trifluralin is generally applied once per growing season on all registered crops and sites. However, there are exceptions for sugarcane and cotton. Additionally, trifluralin is soil incorporated into the top 2 3 inches of soil within 24 hours of application and can be applied via chemigation on: alfalfa, field corn, cotton, grain sorghum ( milo), potatoes, tree and vine crops, and soybeans. The maximum amount of trifluralin per acre per year that can be applied depends on the site of use. For homeowner use, trifluralin may be in a granular or liquid form, and applied via belly grinder, push type spreader, shaker can ( by hand), hose end sprayer, low pressure handwand, backpack sprayer, and impregnated fabric squares to soil at various rates from 3 lbs ai/ A on turf, to 20 lbs ai/ A on ornamental beds.

$ Use Summary: The top six uses of trifluralin include soybeans, cotton ( 75% of the volume is applied to soybeans and cotton), wheat, alfalfa, sunflowers, and dry beans/ peas, and accounts for 93% of total trifluralin ai applied in the US. However, turf uses predominate with approximately 75% of use on turf occurring in the North, 20% in the South, and 5% used elsewhere. Based on 1997 2001 data, the Agency estimates that approximately 18 million pounds of trifluralin ai is used per year for agricultural production in the United States. The majority of the agriculture use is in the Midwest, High Plains, Mid South and Central Valley regions. Additionally, more than 50% of the acreage planted in tomatoes and carrots is treated with trifluralin.

The label rate for agricultural uses is 1 to 2 lbs ai/ acre, with a maximum rate of 4 lbs ai/ acre on sugarcane, whereby the registrant reports a typical use rate of 1lb ai/ acre, or less.

$ Technical Registrant: Dow AgroSciences EPA does not have, at this time, available data to determine whether trifluralin has a common mechanism of toxicity with other substances. Unlike other pesticides for which EPA has followed a cumulative risk approach based on a common mechanism of toxicity, EPA has not made a common mechanism of toxicity finding as to trifluralin and any other substances. For purposes of this tolerance action, therefore, EPA has not assumed that trifluralin has a common mechanism of toxicity with other substances.

Hazard Characterization The Trifluralin toxicology database is sufficient for tolerance reassessment and adequate for Food Quality Protection Act ( FQPA) consideration. The Agency determined that since the dose 3 response was well characterized, the developmental effects were only seen in the presence of maternal toxicity, and clear No Observable Adverse Effect Levels ( NOAELs) were established for developmental and maternal toxicities, thus the concern for increased susceptibility for children was low.

The FQPA Safety Factor recommendation by the Hazard Identification Assessment and Review Committee ( HIARC) assumed that the exposure databases ( food, drinking water, and residential) are complete and the risk assessment for each exposure scenario includes all metabolites and/ or degradates of concern, and the assessment does not underestimate the potential risk for infants and children. Upon review of the trifluralin toxicity data, the HIARC selected the appropriate studies, endpoints, and dose levels for human health risk assessment ( see Table 1 below).

Table 1: SUMMARY OF TOXICOLOGY ENDPOINT SELECTION Summary of Toxicological Dose and Endpoints for Trifluralin Exposure Scenario Dose Used in Risk Assessment, UF FQPA SF* Target MOE Study and Toxicological Effects Acute Dietary ( Females 13 50 years of age) NOAEL = 100 mg/ kg/ day UF = 100 Acute RfD = 1.0 mg/ kg/ day FQPA SF = 1 aPAD = 1.0 mg/ kg/ day Developmental Toxicity Study  Rat LOAEL = 500 mg/ kg/ day based on increased total litter resorptions.

Acute Dietary ( All populations) No appropriate single dose endpoint was selected for all populations except Females 13 50.

Chronic Dietary ( All populations) NOAEL= 2.4 mg/ kg/ day UF = 100 Chronic RfD = 0.024 mg/ kg/ day FQPA SF = 1 cPAD = 0.024 mg/ kg/ day Chronic Toxicity ( capsule)  Dog LOAEL = 40 mg/ kg/ day Short Term Incidental Oral ( 1 30 days) NOAEL= 10 mg/ kg/ day MOE = 100 Two generation Reproduction Study  Rat LOAEL = 32.5 mg/ kg/ day based on decreased pup weights in both generations Exposure Scenario Dose Used in Risk Assessment, UF FQPA SF* Target MOE Study and Toxicological Effects 4 Intermediate Term Incidental Oral, Dermal and Inhalation ( 1 6 months) NOAEL= 10 mg/ kg/ day ( Dermal absorption rate = 3 %

( Inhalation absorption rate = 100 %) MOE = 100 Special Urinalysis Study  Rat LOAEL = 40 mg/ kg/ day Short Term Dermal ( 1 to 30 days) No quantification required since there was no systemic toxicity at the limit dose in the dermal toxicity study. There are no developmental toxicity concerns.

Long Term Dermal (> 6 months) Oral study NOAEL= 2.4 mg/ kg/ day ( dermal absorption rate = 3 % when appropriate)

( Inhalation absorption rate = 100 %) Residential MOE = 100 Chronic Toxicity ( capsule)  Dog LOAEL = 40 mg/ kg/ day Short Term Inhalation ( 1 to 30 days) Inhalation study NOAEL= 81 mg/ kg/ day Residential MOE = 100 30 Day Inhalation Study  Rat LOAEL = 270 mg/ kg/ day Cancer ( oral, dermal, inhalation) Q1* = 5.8 X 10 3 ( mg/ kg/ day) 1 Group C (" Possible" Human Carcinogen)

UF = uncertainty factor, FQPA SF = FQPA safety factor, NOAL = no observed adverse effect level, LOAEL = lowest observed adverse effect level, PAD = population adjusted dose ( a = acute, c = chronic) RfD = reference dose, MOE = margin of exposure, NA = Not Applicable NOTE: Since a toxicological endpoint, based on dermal exposure, was not selected for trifluralin, only post application incidental oral ingestion ( i. e., soil, granule, and hand to mouth ingestion) exposures to children were calculated.

The Agency concluded that the FQPA Safety Factor should be removed ( equivalent to a 1x Safety Factor) based on a conclusion of no concern for qualitative susceptibility seen for pre and postnatal toxicities. However, the Agency remains concerned about dermal sensitization reactions to adults and children who are exposed to trifluralin in residential settings and recommends for labeling to this effect, on all products. 5 Human Health Risk Assessment Acute Dietary ( Food) Risk Acute dietary risk is calculated considering the toxicity of a chemical, what is eaten by individuals in one day and residue values for various foods. A risk estimate that is less than 100% of the acute Population Adjusted Dose ( aPAD) ( the dose at which an individual could be exposed on any given day and no adverse health effects would be expected) does not exceed the Agency's risk concern.

An acute Population Adjusted Dose ( aPAD) of 1.0 mg/ kg/ day was established for females of child bearing age based on the No Observable Adverse Effect Level ( NOAEL) of 100 mg/ kg/ day observed in the rat developmental study. The Dietary Exposure Evaluation Model ( DEEM   ) analysis evaluated the individual food consumption as reported by respondents in the USDA 1994 1996 and 1998 Nationwide Continuing Surveys of Food Intake by Individuals ( CSFII) and accumulated exposure to the chemical for each commodity. Additionally, acute risks were also estimated using the Lifeline model ( version 2.0). Lifeline converts the raw agricultural commodity ( RAC) residues into food residues by randomly selecting a RAC residue value from the user defined residue distribution ( created from the residue, percent crop treated, and processing factors data), and calculating a net residue for that food based on the ingredient's mass contribution to that food item. The Lifeline model estimated acute exposure based on the acute 1 day dietary dose drawn randomly from an age specific seasonal exposure profile of 1000 individuals.

An acute dietary assessment was not conducted for the general U. S. population or infants and children because there was no appropriate single dose endpoint for this population sub group. The acute dietary risk estimates are below the Agency's level of concern (< 100% aPAD) at the 99.9th exposure percentile for the females 13  49 years of age (< 1% aPAD), the population subgroup of concern. Results of the Lifeline analysis are fully consistent with DEEM FCID results ( See Table 2 below).

Table 2. Results of Acute Dietary Exposure Analysis Using both DEEM FCID and Lifeline Softwares Population Subgroup aPAD ( mg/ kg/ day) Model 99.9th Percentile Exposure ( mg/ kg/ day) % aPAD Females 13 49 yrs 1 DEEM FCID 0.000262 0.03 Lifeline 0.000311 0.03 6 Chronic and Cancer Dietary ( Food and Water) Risk Trifluralin is classified as a Group C possible human carcinogen with carcinogenic risk quantified by the Q 1* approach. Carcinogenic dietary risk is based on the chronic exposure estimate for the general U. S. population derived from the same residue, percent use, and averaged consumption data. Chronic dietary risk is calculated by using the average consumption value for food and average residue values on those foods over a 70 year lifetime. A risk estimate that is less than 100% of the chronic RfD ( the dose at which an individual could be exposed over the course of a lifetime and no adverse health effects would be expected) does not exceed the Agency's risk concern. Estimated chronic dietary risk is below the Agency's level of concern for all populations (< 1% of cPAD; 0.005 mg/ kg/ day). The estimated exposure of the general U. S. population to trifluralin is 0.000028 mg/ kg/ day for both dietary risk assessment models. Applying the Q 1* of 5.8 x 10 3 ( mg/ kg/ day) 1 to the exposure value results in a cancer risk estimate of 1.64 x 10 7 ( DEEM FCID) and 1.13 x 10 7 ( Lifeline), which is also below the Agency's level of concern.

Drinking Water Dietary Risk Drinking water exposure to pesticides can occur through groundwater and surface water contamination. EPA considers both acute ( one day) and chronic ( multiple year) drinking water risks, and uses either modeling or actual monitoring data, if available, to estimate those risks. Modeling is designed to provide a high end estimate of exposure. The Agency lacks sufficient data to accurately determine dietary exposure from drinking water. Therefore, residues for trifluralin in drinking water are refined by PRZM EXAMS modeling. The drinking water assessment is based on modeling and monitoring data. Modeling was completed for parent as well as combined trifluralin residues observed in fate studies.

Since trifluralin is registered on several crops, Tier II modeling crop scenarios were selected to reflect crops with the highest uses of trifluralin ( soybeans and cotton), the maximum application rate ( sugarcane), and availability of scenarios. The maximum daily peak concentration of trifluralin from PRZM/ EXAMS simulation ( 38.1 ppb) is greater than the highest concentration in the USGS/ National Water Quality Assessment ( NAWQA) monitoring database ( 1.74 ppb) for surface water. However, the maximum annual average trifluralin concentration in surface water ( 1.9 ppb) is comparable to time weighted annual means ( TWAM) concentrations in USGS monitoring studies ( 0.618 ppb). Additionally, the maximum trifluralin concentration in shallow ground water ( 0.035 ppb), as predicted through SCI GROW, is lower than the 99.8 percentile concentration in the NAWQA ground water monitoring database ( 0.012 ppb).

Residential Risk Residential risk assessment considers potential pesticide exposure, other than dietary and occupational exposure. Exposure may occur during and after application at homes; or after applications at golf courses, parks, schools, etc. Each route of exposure ( oral, dermal, inhalation) is assessed, where appropriate, and risk is expressed as a Margin of Exposure ( MOE), which is 7 the ratio of estimated exposure to an appropriate No Observed Adverse Effect Level ( NOAEL) dose. Based on its uses, trifluralin is assessed for the residential applicator ( or " handler"), for children's post application oral exposure that may occur from turf contact, and for postapplication dermal contact. Additionally, carcinogenic risk is also estimated by the Q 1* approach.

Residential exposure scenarios were developed for trifluralin and based on the use sites, formulations, application rates, and the various equipment that could be used during applications. Residential risk estimates are also based on estimates ( and assumptions) regarding the body weight of a typical homeowner/ applicator, the area treated per application, and the seasonal duration ( in days) of exposure. Note also that residential applicators are assumed to complete all elements of an application ( mix/ load/ apply) without use of protective equipment ( assessments are based on an assumption that individuals will be wearing short sleeved shirts and short pants).

Short term inhalation risks to residential handlers and dermal and inhalation cancer risks to residential handlers were calculated using surrogate data. For short term non cancer risks to residential handlers, a margin of exposure ( MOE) of less than 100 exceeds the Agency's level of concern. For residential handlers, the calculations of short term inhalation non cancer risk indicate that the MOEs are greater than 100 for all residential handler scenarios.

For residential handler scenarios, cancer risks greater than 1x10 6 are considered to be of concern. The calculations of residential handler cancer risk indicate that all scenarios have a cancer risk of less than 1x10 6.

Post Application Risk Estimates Exposure to trifluralin occurs in the residential environment following applications by professionals, or non professionals, to lawns and ornamentals. Exposure to trifluralin also occurs following applications by professionals to private or public areas such as golf courses, parkland, etc. For this assessment, children are the population group of concern. Since systemic toxicity was not observed in a dermal toxicity study, up to a dose level of 1,000 mg/ kg/ day, the only risk scenario addressed in this assessment is the possible oral exposure of small children from treated turf, or from treated soil ( i. e., soil ingestion, granule ingestion, and hand/ object to mouth). A Margin of Exposure of 100 ( or more) is considered adequately protective for this assessment.

For non cancer post application risks, since there is no short term dermal toxicological endpoint of concern for trifluralin and no intermediate term dermal exposure is anticipated, the only assessment is for incidental ingestion by toddlers by hand to mouth and object to mouth exposure scenarios. These scenarios produce MOEs greater than 100, therefore risks are not of concern to the Agency. 8 Since there was no dermal endpoint identified, short term post application risks are based on incidental oral exposures. For residential post application, the calculations of non cancer risk based on the incidental oral NOAEL endpoint indicate that the MOEs were more than 100 for residential post application scenarios.

In addition, the Agency determined that in order to complete the residential non cancer postapplication risk assessment a combined risk assessment would be required. In doing so, the Agency combines risk values resulting from separate post application exposure scenarios, when it is likely that they can occur simultaneously based on the use pattern and the behavior associated with the exposed population. For trifluralin, the Agency combined risk values for post application exposures to toddlers associated with turf applications by combining risks from oral exposures via transfer of residues from hands to mouth, object to mouth, and incidental soil ingestion. The combined MOE for these scenarios is greater than 100 and is not considered a risk concern.

Carcinogenic risk estimates are based, in part, on estimates of days per year that persons are exposed to treated areas following trifluralin use. Based on the transferable residue study, postapplication exposure to residential turfgrass and golf course turfgrass will occur on the day of application ( day zero) following two applications, each year. As with residential applicators, the assessment is based on 50 years of trifluralin use and exposure. Cancer risks are 5 x 10 10 and are therefore, not of concern.

Exposure estimates are also based on data that measured the transfer of residue ( any chemical) from the surface of treated turf to persons while doing specific activities. As in the postapplication oral assessment, the transferable residue estimate ( 0.0033 ug/ cm2) is taken from the trifluralin specific study and is the average transferable residues at day 0 ( after day 0, no residues were detectable) and accounts for the 3lb ai/ A application rate used on turf. These estimates form the basis for the " Lifetime Average Daily Dermal Dose", or LADD, used with the Q 1* to estimate ( lifetime) carcinogenic risk for trifluralin users.

The Agency has determined that there are potential post application cancer risks for adults in residential areas treated with trifluralin. The following scenarios were assessed: ( 1) dermal exposure to residue on lawns, ( 2) dermal exposure to golf course turfgrass, and ( 3) dermal exposure to residue on home gardens. For residential post application scenarios, cancer risks greater than 1x10 6 are considered to be of concern. The calculation of residential post application cancer risk indicate that all scenarios have a cancer risk of less than 1 x10 10 and are not considered a risk concern.

For the residential turfgrass scenario, the Agency combined the cancer risks for residential handlers applying granular formulation to lawns with post application cancer risks to adults from exercising on just treated lawns. The combined handler plus post application cancer risk associated with applications to residential turfgrass is 5.4 x 10 7. This is below EPA's level of concern for cancer. ( Note: combining short term risks was not done, since there are no shortterm post application risks because there is no short term dermal endpoint of concern.) 9 Aggregate Risk Aggregate exposure assessment is based, in part, on the same assumption that there is a predictable level of chronic pesticide exposure, attributable to food and drinking water, and this level is estimated on a per day basis ( mg/ kg/ day) by using averaged estimates of residue, use, and consumption. For trifluralin, homeowner use is highly seasonal ( mostly early Spring) and this exposure will likely be acute ( one day of golf) or short term ( multiple residential applications). The route of exposure may be oral ( children on turf), dermal ( at application or post application), or by inhalation ( at application).

Aggregate Short Term Risk: The aggregate ( 3 specific exposure scenarios) incidental oral exposure estimate for children on turf is 0.00009 mg/ kg/ day. When combined with the estimated chronic dietary exposure ( 0.000051 mg/ kg/ day) for children 1 2 years old, the sum is 0.00014 mg/ kg/ day. Compared to the appropriate dose ( 10 mg/ kg/ day) for short term incidental oral risk assessment, this aggregate exposure estimate is much greater than the target MOE of 100, and a conclusion of safety can be made.

Aggregate Carcinogenic Risk: When using the Q 1* approach to assess a pesticide, the Agency considers all exposure to be additive to aggregate carcinogenic risk, regardless of exposure route or exposure duration ( per season). For trifluralin, this means that the chronic exposure from foods ( 0.000022 mg/ kg/ day) is added to chronic exposure due to drinking water ( 0.000008 mg/ kg/ day), which is added to exposure estimated for residential use. Based on this assumption, carcinogenic risk estimates are made for those applying trifluralin themselves, each season, throughout adulthood ( 50 years).

As previously noted, the exposure and carcinogenic risk estimates for residential applicators varies significantly depending on the application method, even if other inputs ( rate and area treated) remain the same. Since carcinogenic risk assessment attempts to reflect long term exposure, the most appropriate exposure estimate would be based on the most common application method; the push type spreader. The Lifetime Average Daily Dose estimated for this application method is negligible ( 0.0000006 mg/ kg/ day), and when added to the chronic dietary ( food and water) exposure the aggregate carcinogenic risk estimate is 2x10 7.

Recommendations In addition to being classified as a possible human carcinogen trifluralin is also classified as a skin sensitizer. EPA has no method of quantifying risk due to skin sensitization and remains concerned about dermal sensitization reactions to adults and children who are exposed to trifluralin in residential settings. Therefore, it is recommended that all products containing trifluralin be labeled as " SENSITIZER" and state that " skin contact should be avoided". 10 Tolerance Reassessment Currently, there are 35 tolerances ( majority at 0.05 ppm) established for residues of trifluralin in or on raw agricultural commodities. However, there is no tolerance for trifluralin in or on raw agricultural commodities for mint oil. Available data show that residues of trifluralin in foods prepared with mint oil will not exceed the existing raw agricultural commodity tolerance. As a result, the Agency has made a safety finding that trifluralin is safe as currently used in pesticide products. Therefore, the Agency will be proposing, via a Federal Register ( FR) notice, to establish a permanent tolerance of 2.0 ppm for mint oil. Additionally, existing tolerances for residues of trifluralin do not exceed the Agency's risk concern and will be considered reassessed under section 408( q) of the FFDCA.


[Federal Register Volume 84, Number 103 (Wednesday, May 29, 2019)]
[Notices]
[Pages 24779-24781]
[FR Doc No: 2019-11123]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2019-0091; FRL-9994-18]

Notice of Receipt of Requests To Voluntarily Cancel Certain
Pesticide Registrations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: In accordance with the Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA), EPA is issuing a notice of receipt of requests
by registrants to voluntarily cancel certain pesticide registrations.
EPA intends to grant these requests at the close of the comment period
for this announcement unless the Agency receives substantive comments
within the comment period that would merit its further review of the
requests, or unless the registrants withdraw its requests. If these
requests are granted, any sale, distribution, or use of the products
listed in this notice will be permitted after the registrations have
been cancelled only if such sale, distribution, or use is consistent
with the terms as described in the final order.

DATES: Comments must be received on or before June 28, 2019.

ADDRESSES: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2019-0091, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments. Do not submit
electronically any information you consider to be Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute.
     Mail: OPP Docket, Environmental Protection Agency Docket
Center (EPA/DC), (28221T), 1200 Pennsylvania Ave. NW, Washington, DC
20460-0001.
    Submit written withdrawal request by mail to: Information
Technology and Resources Management Division (7502P), Office of
Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania
Ave. NW, Washington, DC 20460-0001. ATTN: Christopher Green.
     Hand Delivery: To make special arrangements for hand
delivery or delivery of boxed information, please follow the
instructions at http://www.epa.gov/dockets/contacts.html. Additional
instructions on commenting or visiting the docket, along with more
information about dockets generally, is available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: Christopher Green, Information
Technology and Resources Management Division (7502P), Office of
Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania
Ave. NW, Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>;
email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general, and may be of
interest to a wide range of stakeholders including environmental, human
health, and agricultural advocates; the chemical industry; pesticide
users; and members of the public interested in the sale, distribution,
or use of pesticides. Since others also may be interested, the Agency
has not attempted to describe all the specific entities that may be
affected by this action.

B. What should I consider as I prepare my comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through
regulations.gov or email. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as
CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for preparing your comments. When preparing and submitting
your comments, see the commenting tips at http://www.epa.gov/dockets/comments.html.

II. What action is the Agency taking?

    This notice announces receipt by EPA of requests from registrants
to cancel certain pesticide product registrations. The affected
products and the registrants making the requests are identified in
Tables 1 and 2 of this unit.
    Unless a request is withdrawn by the registrant or if the Agency
determines that there are substantive comments that warrant further
review of this requests, EPA intends to issue an order canceling the
affected registrations.

                      Table 1--Product Registrations With Pending Requests for Cancellation
----------------------------------------------------------------------------------------------------------------
       Registration No.            Company No.             Product name                 Active ingredients
----------------------------------------------------------------------------------------------------------------
100-1222......................               100  Quadris S.....................  Azoxystrobin.
279-3555......................               279  Nuance Herbicide..............  Tribenuron-methyl.
279-3559......................               279  Harass Herbicide..............  Thifensulfuron.
279-3561......................               279  Chisum Herbicide..............  Chlorsulfuron & Metsulfuron.
279-3562......................               279  Report Herbicide..............  Chlorsulfuron.
279-3573......................               279  Chi-Chlorsul NC-75 Herbicide..  Chlorsulfuron.
279-9633......................               279  Ciramet Herbicide.............  Metsulfuron.

538-189.......................               538  Turf Builder Plus Halts.......  Pendimethalin.
538-214.......................               538  Proturf Fertilizer Plus         Pendimethalin.
                                                   Preemergent Weed Control.
1015-82.......................              1015  Sanafoam Diquat...............  Diquat dibromide.
1043-26.......................              1043  1-Stroke Environ..............  2-Benzyl-4-chlorophenol; 4-
                                                                                tert-Amylphenol & o-
                                                                                Phenylphenol (NO INERT USE).
1043-87.......................              1043  Vesphene II SE................  4-tert-Amylphenol & o-
                                                                                Phenylphenol (NO INERT USE).
1043-91.......................              1043  LPH Master Product............  4-tert-Amylphenol & o-
                                                                                Phenylphenol (NO INERT USE).
1043-92.......................              1043  LPH SE........................  4-tert-Amylphenol & o-
                                                                                Phenylphenol (NO INERT USE).
1043-114......................              1043  Vesta-Syde Interim Instrument   4-tert-Amylphenol & o-
                                                   Decontamination Solution.       Phenylphenol (NO INERT USE).
2749-582......................              2749  Novaluron EC Insecticide......  Novaluron.
2749-583......................              2749  Novaluron Technical MUP.......  Novaluron.
19713-621.....................             19713  Drexel Aquapen................  Pendimethalin.
42750-66......................             42750  Gly Star Ready-To-Use Grass     Glyphosate-isopropylammonium.
                                                   and Weed Killer.
61282-59......................             61282  DC & R Disinfectant...........  Formaldehyde; Alkyl * dimethyl
                                                                                benzyl ammonium chloride *
                                                                                (67%C12, 25%C14, 7%C16,
                                                                                1%C18) & 2-(Hydroxymethyl)-2-
                                                                                nitro-1,3-propanediol.
62719-12......................             62719  Telone C-17...................  Chloropicrin & Telone.
62719-457.....................             62719  Asulam 400....................  Asulam, sodium salt.
71655-3.......................             71655  Sodium Hypochlorite 12.5%.....  Sodium hypochlorite.
71655-4.......................             71655  Sodium Hypochlorite...........  Sodium hypochlorite.
89442-44......................             89442  Prodiazone Select.............  Prodiamine & Sulfentrazone.
OR-080014.....................               400  Comite........................  Propargite.
OR-080016.....................               400  Comite........................  Propargite.
OR-080017.....................               400  Comite........................  Propargite.
OR-080018.....................               400  Comite........................  Propargite.
OR-080019.....................               400  Comite........................  Propargite.
OR-080026.....................             62719  Starane Ultra.................  Fluroxypyr 1-methylheptyl
                                                                                ester.
OR-080031.....................               400  Acramite-4SC..................  Bifenazate.
OR-080033.....................               400  Dimilin 2L....................  Diflubenzuron.
TN-130004.....................               100  Boundary(R) 6.5EC Herbicide...  Metribuzin & S-Metolachlor.
WA-130011.....................              5481  Parazone 3SL Herbicide........  Paraquat dichloride.
WA-140003.....................              5481  Abba Ultra Miticide/            Abamectin.
                                                   Insecticide.
----------------------------------------------------------------------------------------------------------------

    Table 2 of this unit includes the names and addresses of record for
the registrants of the products listed in Table 1 of this unit, in
sequence by EPA company number. This number corresponds to the first
part of the EPA registration numbers of the products listed in Table 1
of this unit.

         Table 2--Registrants Requesting Voluntary Cancellations
------------------------------------------------------------------------
      EPA company No.                  Company name and address
------------------------------------------------------------------------
100........................  Syngenta Crop Protection, LLC, P.O. Box
                              18300, Greensboro, NC 27419-8300.
279........................  FMC Corporation, 2929 Walnut Street,
                              Philadelphia, PA 19104.
400........................  Macdermid Agricultural Solutions, Inc., C/O
                              Arysta LifeScience North America, LLC,
                              15401 Weston Parkway, Suite 150, Cary, NC
                              27513.
538........................  The Scotts Company, 14111 Scottslawn Road,
                              Marysville, OH 43041.
1015.......................  Douglas Products and Packaging Company,
                              LLC, D/B/A Douglas Products and Packaging,
                              Agent Name: Pyxis Regulatory Consulting,
                              Inc., 4110 136th Street Ct. NW, Gig
                              Harbor, WA 98332.
1043.......................  Steris Corporation, P.O. Box 147, St.
                              Louis, MO 63166-0147.
2749.......................  Aceto Agricultural Chemicals Corp., 4 Tri
                              Harbor Court, Port Washington, NY 11050-
                              4661.
5481.......................  Amvac Chemical Corporation, 4695 Macarthur
                              Court, Suite 1200, Newport Beach, CA 92660-
                              1706.
19713......................  Drexel Chemical Company, P.O. Box 13327,
                              Memphis, TN 38113-0327.
42750......................  Albaugh, LLC, P.O. Box 2127, Valdosta, GA
                              31604-2127.
61282......................  Hacco, Inc., 620 Lesher Place, Lansing, MI
                              48912.
62719......................  Dow AgroSciences, LLC, 9330 Zionsville Rd.,
                              Indianapolis, IN 46268-1054.
71655......................  BASF Corporation, 100 Park Avenue, Florham
                              Park, NJ 07932.
89442......................  Prime Source, LLC, Agent Name: Wagner
                              Regulatory Associates, Inc., P.O. Box 640,
                              Hockessin, DE 19707.
------------------------------------------------------------------------

III. What is the Agency's authority for taking this action?

    Section 6(f)(1) of FIFRA (7 U.S.C. 136d(f)(1)) provides that a
registrant of a pesticide product may at any time request that any of
its pesticide registrations be canceled or amended to terminate one or
more uses. FIFRA further provides that, before acting on the request,
EPA must publish a notice of receipt of any such request in the Federal
Register.
    Section 6(f)(1)(B) of FIFRA (7 U.S.C. 136d(f)(1)(B)) requires that
before acting on a request for voluntary cancellation,

EPA must provide a 30-day public comment period on the request for
voluntary cancellation or use termination. In addition, FIFRA section
6(f)(1)(C) (7 U.S.C. 136d(f)(1)(C)) requires that EPA provide a 180-day
comment period on a request for voluntary cancellation or termination
of any minor agricultural use before granting the request, unless:
    1. The registrants request a waiver of the comment period, or
    2. The EPA Administrator determines that continued use of the
pesticide would pose an unreasonable adverse effect on the environment.
    The registrants have requested that EPA waive the 180-day comment
period.
    Accordingly, EPA will provide a 30-day comment period on the
proposed requests.

IV. Procedures for Withdrawal of Requests

    Registrants who choose to withdraw a request for product
cancellation should submit the withdrawal in writing to the person
listed under FOR FURTHER INFORMATION CONTACT. If the products have been
subject to a previous cancellation action, the effective date of
cancellation and all other provisions of any earlier cancellation
action are controlling.

V. Provisions for Disposition of Existing Stocks

    Existing stocks are those stocks of registered pesticide products
that are currently in the United States and that were packaged,
labeled, and released for shipment prior to the effective date of the
action. If the requests for voluntary cancellation are granted, the
Agency intends to publish the cancellation order in the Federal
Register.
    In any order issued in response to these requests for cancellation
of product registrations, EPA proposes to include the following
provisions for the treatment of any existing stocks of the products
listed in Table 1 of Unit II.
    For voluntary product cancellations, registrants will be permitted
to sell and distribute existing stocks of voluntarily canceled products
for 1 year after the effective date of the cancellation, which will be
the date of publication of the cancellation order in the Federal
Register. Thereafter, registrants will be prohibited from selling or
distributing the products identified in Table 1 of Unit II, except for
export consistent with FIFRA section 17 (7 U.S.C. 136o) or for proper
disposal.
    Persons other than the registrant may sell, distribute, or use
existing stocks of canceled products until supplies are exhausted,
provided that such sale, distribution, or use is consistent with the
terms of the previously approved labeling on, or that accompanied, the
canceled products.

    Authority: 7 U.S.C. 136 et seq.

    Dated: May 21, 2019.
Delores Barber,
Director, Information Technology and Resources Management Division,
Office of Pesticide Programs.
[FR Doc. 2019-11123 Filed 5-28-19; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Pages 72474-72480]
[FR Doc No: 2011-30202]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65778; File No. SR-NYSEArca-2011-80]

 Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To List and Trade Shares of the Rockledge
SectorSAM ETF Under NYSE Arca Equities Rule 8.600

November 17, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'')\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on November 3, 2011, NYSE Arca, Inc. (``Exchange''
or ``NYSE Arca'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade the following under NYSE
Arca Equities Rule 8.600 (``Managed Fund Shares''): Rockledge SectorSAM
\TM\ ETF. The text of the proposed rule change is available at the
Exchange, the Commission's Public Reference Room, and www.nyse.com.

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

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

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

1. Purpose
    The Exchange proposes to list and trade the following Managed Fund
Shares \3\ (``Shares'') under NYSE Arca Equities Rule 8.600: Rockledge
SectorSAM ETF (``Fund'').\4\ The Shares will be offered by
AdvisorShares Trust (``Trust''), a statutory trust organized under the
laws of the State of Delaware and registered with the Commission as an
open-end management investment company.\5\ The investment adviser to
the Fund is AdvisorShares Investments, LLC (``Adviser''). Rockledge
Advisers LLC serves as investment sub-adviser to the Fund
(``Rockledge'' or ``Sub-Adviser'') and provides day-to-day portfolio
management of the Fund. Foreside Fund Services, LLC (``Distributor'')
is the principal underwriter and distributor of the Fund's Shares. The
Bank of New York Mellon Corporation (``Administrator'')

serves as administrator, custodian and transfer agent for the Fund.
---------------------------------------------------------------------------

    \3\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
    \4\ The Commission has previously approved listing and trading
on the Exchange of a number of actively managed funds under Rule
8.600. See, e.g., Securities Exchange Act Release Nos. 57801 (May 8,
2008), 73 FR 27878 (May 14, 2008) (SR-NYSEArca-2008-31) (order
approving Exchange listing and trading of twelve actively-managed
funds of the WisdomTree Trust); 60460 (August 7, 2009), 74 FR 41468
(August 17, 2009) (SR-NYSEArca-2009-55) (order approving listing of
Dent Tactical ETF); 62502 (July 15, 2010), 75 FR 42471 (July 21,
2010) (SR-NYSEArca-2010-57) (order approving listing of
AdviserShares WCM/BNY Mellon Focused Growth ADR ETF); 63076 (October
12, 2010), 75 FR 63874 (October 18, 2010) (SR-NYSEArca-2010-79)
(order approving listing of Cambria Global Tactical ETF); 63329
(November 17, 2010), 75 FR 71760 (November 24, 2010) (SR-NYSEArca-
2010-86) (order approving listing of Peritus High Yield ETF).
    \5\ The Trust is registered under the 1940 Act. On April 11,
2011, the Trust filed with the Commission Post-Effective Amendment
No. 23 to Form N-1A under the Securities Act of 1933 (15 U.S.C.
77a), and under the 1940 Act relating to the Fund (File Nos. 333-
157876 and 811-22110) (``Registration Statement''). The description
of the operation of the Trust and the Fund herein is based, in part,
on the Registration Statement. In addition, the Commission has
issued an order granting certain exemptive relief to the Trust under
the 1940 Act. See Investment Company Act Release No. 29291 (May 28,
2010) (File No. 812-13677) (``Exemptive Order'').
---------------------------------------------------------------------------

    Commentary .06 to Rule 8.600 provides that, if the investment
adviser to the investment company issuing Managed Fund Shares is
affiliated with a broker-dealer, such investment adviser shall erect a
``fire wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio. In addition, Commentary
.06 further requires that personnel who make decisions on the open-end
fund's portfolio composition must be subject to procedures designed to
prevent the use and dissemination of material nonpublic information
regarding the open-end fund's portfolio.\6\ Commentary .06 to Rule
8.600 is similar to Commentary .03(a)(i) and (iii) to NYSE Arca
Equities Rule 5.2(j)(3); however, Commentary .06 in connection with the
establishment of a ``fire wall'' between the investment adviser and the
broker-dealer reflects the applicable open-end fund's portfolio, not an
underlying benchmark index, as is the case with index-based funds.
Neither the Adviser nor the Sub-Adviser is affiliated with a broker-
dealer. In the event (a) The Adviser or the Sub-Adviser becomes newly
affiliated with a broker-dealer, or (b) any new adviser or sub-adviser
becomes affiliated with a broker-dealer, it will implement a fire wall
with respect to such broker-dealer regarding access to information
concerning the composition and/or changes to the portfolio, and will be
subject to procedures designed to prevent the use and dissemination of
material non-public information regarding such portfolio.
---------------------------------------------------------------------------

    \6\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (``Advisers
Act''). As a result, the Adviser and Sub-Adviser and their related
personnel are subject to the provisions of Rule 204A-1 under the
Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has (i) Adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) Above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above.
---------------------------------------------------------------------------

    According to the Registration Statement, the Fund is considered a
``fund-of-funds'' that seeks to achieve its investment objective by
primarily investing in other U.S.-listed exchange-traded funds
(``Underlying ETFs'') that offer diversified exposure to U.S. large
capitalization (generally, Standard & Poor 500 companies) sectors. The
Sub-Adviser will use ``Sector Scoring and Allocation Methodology''
(``SectorSAM''), which is a proprietary quantitative analysis, to
forecast each sector's excess return within a specific time horizon.
The Sub-Adviser will seek to achieve the Fund's investment objective by
buying (taking long positions in) Underlying ETFs intended to capture
the performance of the most promising sectors and selling (establishing
short positions) in Underlying ETFs with the intent of profiting from
the least promising sectors of U.S. large capitalization broad market
securities. The strategy is designed to generate higher returns in a
higher interest rate environment, which is often associated with
increased inflation.\7\
---------------------------------------------------------------------------

    \7\ The Underlying ETFs are registered under the 1940 Act and
will be listed and traded in the U.S. on registered exchanges.
---------------------------------------------------------------------------

    Under normal circumstances,\8\ the Fund intends to invest equal
dollar amounts to obtain both long and short exposure in the market at
each major rebalancing point (on at least a monthly basis). When fully
invested, the Fund will typically be both 100% long and 100% short of
total portfolio value. The Sub-Adviser, in its discretion, may choose
an additional long or short bias of up to 50% exposure, or may choose
to hold amounts in cash or cash equivalents depending on its view of
market conditions.
---------------------------------------------------------------------------

    \8\ The term ``under normal circumstances'' includes, but is not
limited to, the absence of extreme volatility or trading halts in
the equity markets or the financial markets generally; operational
issues causing dissemination of inaccurate market information; or
force majeure type events such as systems failure, natural or man-
made disaster, act of God, armed conflict, act of terrorism, riot or
labor disruption or any similar intervening circumstance.
---------------------------------------------------------------------------

    The Underlying ETFs in which the Fund will invest will primarily be
ETFs that hold substantially all of their assets in securities
representing a specific index. The main risk of investing in index-
based investments is the same as investing in a portfolio of securities
comprising the index. The market prices of index-based investments will
fluctuate in accordance with both changes in the market value of their
underlying portfolio securities and due to supply and demand for the
instruments on the exchanges on which they are traded (which may result
in their trading at a discount or premium to their net asset values
(``NAVs'').
    The Fund, through its investment in Underlying ETFs, may invest in
equity securities. Equity securities represent ownership interests in a
company or partnership and consist of common stocks, preferred stocks,
warrants to acquire common stock, securities convertible into common
stock, and investments in master limited partnerships.
    The Fund, through its investment in Underlying ETFs, may invest in
American Depositary Receipts (``ADRs''), as well as Global Depositary
Receipts (``GDRs,'' together with ADRs, ``Depositary Receipts''), which
are certificates evidencing ownership of shares of a foreign issuer.
Depositary Receipts may be sponsored or unsponsored. These certificates
are issued by depositary banks and generally trade on an established
market in the United States or elsewhere. The underlying shares are
held in trust by a custodian bank or similar financial institution in
the issuer's home country. The depositary bank may not have physical
custody of the underlying securities at all times and may charge fees
for various services, including forwarding dividends and interest and
corporate actions. ADRs are alternatives to directly purchasing the
underlying foreign securities in their national markets and currencies.
However, ADRs continue to be subject to many of the risks associated
with investing directly in foreign securities.
    Investments in Foreign Equity Securities. Through Underlying ETFs,
the Fund may invest in the equity securities of foreign issuers,
including the securities of foreign issuers in emerging market
countries. Emerging or developing markets exist in countries that are
considered to be in the initial stages of industrialization. The risks
of investing in these markets are similar to the risks of international
investing in general, although the risks are greater in emerging and
developing markets. Countries with emerging or developing securities
markets tend to have economic structures that are less stable than
countries with developed securities markets. This is because their
economies may be based on only a few industries and their securities
markets may trade a small number of securities. Prices on these
exchanges tend to be volatile, and securities in these countries
historically have offered greater potential for gain (as well as

loss) than securities of companies located in developed countries.
    The Fund, through its investment in Underlying ETFs, may invest in
closed-end funds, pooled investment vehicles that are registered under
the 1940 Act and whose shares are listed and traded on U.S. national
securities exchanges.
    The Fund, through its investment in Underlying ETFs, may invest in
shares of real estate investment trusts (``REITs''). REITs are pooled
investment vehicles which invest primarily in real estate or real
estate related loans. REITs are generally classified as equity REITs,
mortgage REITs or a combination of equity and mortgage REITs.
    The Fund intends to invest primarily in the securities of
Underlying ETFs consistent with the requirements of Section 12(d)(1) of
the 1940 Act, or any rule, regulation or order of the Commission or
interpretation thereof.
    The Underlying ETFs may invest in complex securities such as equity
options, index options, repurchase agreements, foreign currency
contracts and swaps.The Fund does not intend to invest in leveraged,
inverse or inverse leveraged Underlying ETFs.
Investment Process
    The following describes the Sub-Adviser's investment process, as
described in the Registration Statement:
    Quantitative Analysis. Rockledge has developed a proprietary
SectorSAM \TM\ quantitative research and evaluation process that
forecasts economic excess sector returns (over/under the Standard &
Poor's 500 Index (``S&P 500 Index'') for a given timeframe). Absolute
returns may be captured by investing long in sectors which are
forecasted to outperform the overall U.S. equity market and shorting
sectors that are forecasted to underperform the market.
    SectorSAM analysis provides for individual sector forecasts through
analysis of over 200 fundamental, macroeconomic and technical factors
influencing stock returns. The SectorSAM process creates a basket of
factors that are meaningful to each economic sector within the S&P 500
Index. Rockledge reviews the information to make portfolio decisions on
behalf of the Fund.
    Long/Short Portfolio Construction. The Fund's portfolio will be
comprised primarily of an equal dollar amount of long and short
positions based on the Rockledge relative value strategy.\9\ Rockledge
will actively manage and adjust the positions in its long and short
portfolios as dictated by its proprietary SectorSAM quantitative
research and evaluation process.
---------------------------------------------------------------------------

    \9\ According to the Registration Statement, the following
convictions constitute the guiding philosophy for the relative
investment strategy pursued by the Sub-Adviser:
    1. The U.S. economy goes through various growth and contraction
stages and the various economic sectors reflect these changes.
    2. Large capitalization stocks are heavily researched and well
known to equity analysts. The valuations and pricing of these stocks
are very close to efficient. It is difficult to make significant
outsized returns by investing in individual large capitalization
stocks.
    3. The valuation of each U.S. economic sector is directly based
on the aggregation of valuation of the individual companies making
up that sector. Up to 90% of an individual stock's performance can
be attributed to the return of the sector that stock is in.
    4. Sector investing provides a better risk/return profile than
individual stock investing. Sector investing eliminates company
specific risk as sectors are inherently diversified.
    5. Appropriately and correctly forecasted, one can capture both
the upside potential of the outperforming sectors and downside loss
of the underperforming sectors, relative to a broad market index.
    6. There can be significant performance dispersion among various
economic sectors. The ability to identify which sectors will
outperform the broad market and which will underperform over a
specified time period can lead to considerable cumulative absolute
returns.
---------------------------------------------------------------------------

    Risk Management. The Fund's core long/short portfolio construction
generally will be dollar neutral, where the value of all long positions
is equal to the value of all short positions. According to the
Registration Statement, this provides a high degree of inherent risk
control, especially when stock markets are falling. The short positions
provide protection against market declines, and may offer the potential
to generate positive returns when markets are falling if the short
positions fall more than the long positions. Rockledge will use a
number of methods to monitor and manage the inherent risk of the
portfolio including the tracking of relative sector exposure,
volatility, and sector correlations. Rockledge proactively will monitor
its positions, exposure and performance attribution on a real-time
basis to identify, monitor and mitigate the most threatening risks to
the Fund's ability to attain its investment objective.
    The Fund's portfolio holdings will be disclosed on the Trust's Web
site daily after the close of trading on the Exchange and prior to the
opening of trading on the Exchange the following day.
Other Investments of the Fund
    To respond to adverse market, economic, political or other
conditions,\10\ the Fund may invest 100% of its total assets, without
limitation, in high-quality debt securities and money market
instruments either directly or through Underlying ETFs. The Fund may be
invested in these instruments for extended periods, depending on the
Sub-Adviser's assessment of market conditions. These debt securities
and money market instruments include shares of other mutual funds,
commercial paper, certificates of deposit, bankers' acceptances, U.S.
Government securities,\11\ repurchase agreements \12\ and bonds that
are BBB or higher.
---------------------------------------------------------------------------

    \10\ Adverse market conditions would include large downturns in
the broad market value of two or more times current average
volatility, where the Sub-Adviser views such downturns as likely to
continue for an extended period of time. Adverse economic conditions
would include significant negative results in factors deemed
critical at the time by the Sub-Adviser, including significant
negative results regarding unemployment, Gross Domestic Product,
consumer spending or housing numbers. Adverse political conditions
would include events such as government overthrows or instability,
where the Sub-Adviser expects that such events may potentially
create a negative market or economic condition for an extended
period of time.
    \11\ Securities issued or guaranteed by the U.S. government or
its agencies or instrumentalities include U.S. Treasury securities,
which are backed by the full faith and credit of the U.S. Treasury
and which differ only in their interest rates, maturities, and times
of issuance. U.S. Treasury bills have initial maturities of one year
or less; U.S. Treasury notes have initial maturities of one to ten
years; and U.S. Treasury bonds generally have initial maturities of
greater than ten years. Certain U.S. government securities are
issued or guaranteed by agencies or instrumentalities of the U.S.
government including, but not limited to, obligations of U.S.
government agencies or instrumentalities such as Fannie Mae, Freddie
Mac, the Government National Mortgage Association (``Ginnie Mae''),
the Small Business Administration, the Federal Farm Credit
Administration, the Federal Home Loan Banks, Banks for Cooperatives
(including the Central Bank for Cooperatives), the Federal Land
Banks, the Federal Intermediate Credit Banks, the Tennessee Valley
Authority, the Export-Import Bank of the United States, the
Commodity Credit Corporation, the Federal Financing Bank, the
Student Loan Marketing Association, the National Credit Union
Administration and the Federal Agricultural Mortgage Corporation
(``Farmer Mac'').
    \12\ The Fund may enter into repurchase agreements with
financial institutions, which may be deemed to be loans. The Fund
follows certain procedures designed to minimize the risks inherent
in such agreements. These procedures include effecting repurchase
transactions only with large, well-capitalized and well-established
financial institutions whose condition will be continually monitored
by the Sub-Adviser. In addition, the value of the collateral
underlying the repurchase agreement will always be at least equal to
the repurchase price, including any accrued interest earned on the
repurchase agreement. The Fund may enter into reverse repurchase
agreements as part of the Fund's investment strategy. Reverse
repurchase agreements involve sales by the Fund of portfolio assets
concurrently with an agreement by the Fund to repurchase the same
assets at a later date at a fixed price.
---------------------------------------------------------------------------

    The Fund, or the Underlying ETFs in which it invests, may invest in
U.S. Treasury zero-coupon bonds. These securities are U.S. Treasury
bonds

which have been stripped of their unmatured interest coupons, the
coupons themselves, and receipts or certificates representing interests
in such stripped debt obligations and coupons.
    The Fund may invest in exchange-traded notes (``ETNs''). As
described in the Registration Statement, ETNs are debt obligations of
investment banks which are traded on exchanges and the returns of which
are linked to the performance of market indexes. In addition to trading
ETNs on exchanges, investors may redeem ETNs directly with the issuer
on a weekly basis, typically in a minimum amount of 50,000 units, or
hold the ETNs until maturity. ETNs may be riskier than ordinary debt
securities and may have no principal protection.
    The Fund may not (i) With respect to 75% of its total assets,
purchase securities of any issuer (except securities issued or
guaranteed by the U.S. Government, its agencies or instrumentalities or
shares of investment companies) if, as a result, more than 5% of its
total assets would be invested in the securities of such issuer; or
(ii) acquire more than 10% of the outstanding voting securities of any
one issuer. For purposes of this policy, the issuer of the underlying
security will be deemed to be the issuer of any respective Depositary
Receipt.\13\
---------------------------------------------------------------------------

    \13\ The diversification standard is set forth in Section
5(b)(1) of the 1940 Act.
---------------------------------------------------------------------------

    The Fund may not invest 25% or more of its total assets in the
securities of one or more issuers conducting their principal business
activities in the same industry or group of industries. This limitation
does not apply to investments in securities issued or guaranteed by the
U.S. Government, its agencies or instrumentalities, or shares of
investment companies. The Fund will not invest 25% or more of its total
assets in any investment company that so concentrates. For purposes of
this policy, the issuer of the underlying security will be deemed to be
the issuer of any respective Depositary Receipt.\14\
---------------------------------------------------------------------------

    \14\ See Form N-1A, Item 9. The Commission has taken the
position that a fund is concentrated if it invests more than 25% of
the value of its total assets in any one industry. See, e.g.,
Investment Company Act Release No. 9011 (October 30, 1975), 40 FR
54241 (November 21, 1975).
---------------------------------------------------------------------------

    The Fund will not purchase illiquid securities, including Rule 144A
securities and loan participation interests.\15\
---------------------------------------------------------------------------

    \15\ A fund's portfolio security is illiquid if it cannot be
disposed of in the ordinary course of business within seven days at
approximately the value ascribed to it by the fund. See Investment
Company Act Release No. 14983 (March 12, 1986), 51 FR 9773 (March
21, 1986) (adopting amendments to Rule 2a-7 under the 1940 Act);
Investment Company Act Release No. 17452 (April 23, 1990), 55 FR
17933 (April 30, 1990) (adopting Rule 144A under the Securities Act
of 1933).
---------------------------------------------------------------------------

    According to the Registration Statement, the Fund will seek to
qualify for treatment as a Regulated Investment Company (``RIC'') under
the Internal Revenue Code.\16\
---------------------------------------------------------------------------

    \16\ 26 U.S.C. 851. One of several requirements for RIC
qualification is that the Fund must receive at least 90% of the
Fund's gross income each year from dividends, interest, payments
with respect to securities loans, gains from the sale or other
disposition of stock, securities or foreign currencies, or other
income derived with respect to the Fund's investments in stock,
securities, foreign currencies and net income from an interest in a
qualified publicly traded partnership (``90% Test''). A second
requirement for qualification as a RIC is that the Fund must
diversify its holdings so that, at the end of each fiscal quarter of
the Fund's taxable year: (a) At least 50% of the market value of the
Fund's total assets is represented by cash and cash items, U.S.
Government securities, securities of other RICs, and other
securities, with these other securities limited, in respect to any
one issuer, to an amount not greater than 5% of the value of the
Fund's total assets or 10% of the outstanding voting securities of
such issuer; and (b) not more than 25% of the value of its total
assets are invested in the securities (other than U.S. Government
securities or securities of other RICs) of any one issuer or two or
more issuers which the Fund controls and which are engaged in the
same, similar, or related trades or businesses, or the securities of
one or more qualified publicly traded partnership (``Asset Test'').
---------------------------------------------------------------------------

    Except for Underlying ETFs that may hold non-U.S. issues, the Fund
will not otherwise invest in non-U.S.-registered issues.
    Pursuant to the terms of the Exemptive Order, the Fund will not
invest in options contracts, futures contracts or swap agreements. The
Fund's investments will be consistent with the Fund's investment
objective and will not be used to enhance leverage.
Net Asset Value
    The Fund will calculate NAV by: (i) Taking the current market value
of its total assets; (ii) subtracting any liabilities; and (iii)
dividing that amount by the total number of Shares owned by
shareholders.
    The Fund will calculate NAV once each business day as of the
regularly scheduled close of the Core Trading Session on the Exchange
(normally, 4 p.m., Eastern Time).
    In calculating NAV, the Fund generally will value investment
portfolios at market price. If market prices are unavailable or the
Adviser believes they are unreliable, or when the value of a security
has been materially affected by events occurring after the relevant
market closes, the Fund will price those securities at fair value as
determined in good faith using methods approved by the Fund's Board of
Trustees.
    The use of fair valuation in pricing a security involves the
consideration of a number of subjective factors and therefore, is
susceptible to the unavoidable risk that the valuation may be higher or
lower than the price at which the security might actually trade if a
reliable market price were readily available.
Creation and Redemption of Shares
    The Fund will offer and issue Shares on a continuous basis at NAV
only in aggregated lots of 50,000 or more Shares (each a ``Creation
Unit'' or a ``Creation Unit Aggregation''), generally in exchange for:
(i) A basket of equity securities (``Deposit Securities''); and (ii) an
amount of cash (``Cash Component''). Shares are redeemable only in
Creation Unit Aggregations, and, generally, in exchange for portfolio
securities and a specified cash payment.
    A ``creator'' will enter into an authorized participant agreement
(``Participant Agreement'') with the Distributor or use a Depository
Trust Company (``DTC'') participant who has executed a Participant
Agreement (``Authorized Participant''), and deposit into the Fund a
portfolio of securities closely approximating the holdings of the Fund
and a specified amount of cash, together totaling the NAV of the
Creation Unit(s), in exchange for 50,000 Shares of the Fund (or
multiples thereof).
    All orders to purchase Creation Units must be received by the
Distributor no later than the close of the regular trading session on
the NYSE (ordinarily 4 p.m., Eastern Time) on the date such order is
placed in order for the purchase of Creation Units to be effected based
on the NAV of Shares of the Fund as next determined on such date after
receipt of the order in proper form.
    Shares may be redeemed only in Creation Units at their NAV next
determined after receipt of a redemption request in proper form by the
Fund through the Administrator and only on a business day. With respect
to the Fund, the Administrator, through the National Securities
Clearing Corporation (``NSCC''), will make available immediately prior
to the opening of business on the Exchange (currently 9:30 a.m.,
Eastern Time) on each business day, the portfolio of securities (``Fund
Securities'') that will be applicable to redemption requests received
in proper form on that day. Fund Securities received on redemption may
not be identical to Deposit Securities which are applicable to
creations of Creation Units. Unless cash redemptions are available or
specified for the Fund, the redemption proceeds

for a Creation Unit generally will consist of Fund Securities plus cash
in an amount equal to the difference between the NAV of the Shares
being redeemed, as next determined after a receipt of a request in
proper form, and the value of the Fund Securities less a redemption
transaction fee, as described in the Registration Statement. In the
event that the Fund Securities have a value greater than the NAV of the
Shares, a compensating cash payment equal to the differential will be
required to be made by or through an Authorized Participant by the
redeeming shareholder.
    The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600. The Exchange represents
that, for initial and/or continued listing, the Fund will be in
compliance with Rule 10A-3 under the Exchange Act,\17\ as provided by
NYSE Arca Equities Rule 5.3. A minimum of 100,000 Shares for the Fund
will be outstanding at the commencement of trading on the Exchange. The
Exchange will obtain a representation from the issuer of the Shares
that the NAV per Share will be calculated daily and that the NAV and
the Disclosed Portfolio will be made available to all market
participants at the same time.
---------------------------------------------------------------------------

    \17\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Availability of Information
    The Fund's Web site (http://www.advisorshares.com), which will be
publicly available prior to the public offering of Shares, will include
a form of the prospectus for the Fund that may be downloaded. The
Fund's Web site will include additional quantitative information
updated on a daily basis, including, for the Fund, (1) Daily trading
volume, the prior business day's reported closing price, NAV and mid-
point of the bid/ask spread at the time of calculation of such NAV
(``Bid/Ask Price''),\18\ and a calculation of the premium and discount
of the Bid/Ask Price against the NAV, and (2) data in chart format
displaying the frequency distribution of discounts and premiums of the
daily Bid/Ask Price against the NAV, within appropriate ranges, for
each of the four previous calendar quarters. On each business day,
before commencement of trading in Shares in the Core Trading Session on
the Exchange, the Fund will disclose on its Web site the Disclosed
Portfolio as defined in NYSE Arca Equities Rule 8.600(c)(2) that will
form the basis for the Fund's calculation of NAV at the end of the
business day.\19\
---------------------------------------------------------------------------

    \18\ The Bid/Ask Price of the Fund will be determined using the
highest bid and the lowest offer on the Exchange as of the time of
calculation of the Fund's NAV. The records relating to Bid/Ask
Prices will be retained by the Fund and its service providers.
    \19\ Under accounting procedures followed by the Fund, trades
made on the prior business day (``T'') will be booked and reflected
in NAV on the current business day (``T+1''). Accordingly, the Fund
will be able to disclose at the beginning of the business day the
portfolio that will form the basis for the NAV calculation at the
end of the business day.
---------------------------------------------------------------------------

    On a daily basis, the Adviser will disclose for each portfolio
security or other financial instrument of the Fund the following
information on the Fund's Web site: Ticker symbol (if applicable), name
of security or financial instrument, number of shares or dollar value
of financial instruments held in the portfolio, and percentage
weighting of the security or financial instrument in the portfolio. The
Web site information will be publicly available at no charge.
    In addition, a basket composition file, which includes the security
names and share quantities required to be delivered in exchange for the
Fund's Shares, together with estimates and actual cash components, will
be publicly disseminated daily prior to the opening of the NYSE via
NSCC. The basket represents one Creation Unit of the Fund.
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Fund's Shareholder Reports, and the Trust's
Form N-CSR and Form N-SAR, filed twice a year. The Trust's SAI and
Shareholder Reports are available free upon request from the Trust, and
those documents and the Form N-CSR and Form N-SAR may be viewed on-
screen or downloaded from the Commission's Web site at www.sec.gov.
Information regarding market price and trading volume of the Shares is
and will be continually available on a real-time basis throughout the
day on brokers' computer screens and other electronic services.
Information regarding the previous day's closing price and trading
volume information for the Shares will be published daily in the
financial section of newspapers. Quotation and last sale information
for the Shares will be available via the Consolidated Tape Association
(``CTA'') high-speed line and, for the Underlying ETFs, will be
available from the national securities exchange on which they are
listed. In addition, the Portfolio Indicative Value, as defined in NYSE
Arca Equities Rule 8.600(c)(3), will be widely disseminated by one or
more major market data vendors at least every 15 seconds during the
Core Trading Session.\20\
---------------------------------------------------------------------------

    \20\ Currently, it is the Exchange's understanding that several
major market data vendors widely disseminate Portfolio Indicative
Values taken from CTA or other data feeds.
---------------------------------------------------------------------------

    The dissemination of the Portfolio Indicative Value, together with
the Disclosed Portfolio, will allow investors to determine the value of
the underlying portfolio of the Fund on a daily basis and to provide a
close estimate of that value throughout the trading day. The intra-day,
closing and settlement prices of the portfolio securities are also
readily available from the national securities exchanges trading such
securities, automated quotation systems, published or other public
sources, or on-line information services such as Bloomberg or Reuters.
    Additional information regarding the Trust and the Shares,
including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings disclosure policies, distributions
and taxes is included in the Registration Statement. All terms relating
to the Fund that are referred to, but not defined in, this proposed
rule change are defined in the Registration Statement.
Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Fund.\21\ Trading in Shares of the Fund
will be halted if the circuit breaker parameters in NYSE Arca Equities
Rule 7.12 have been reached. Trading also may be halted because of
market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable. These may include: (1) The
extent to which trading is not occurring in the securities and/or the
financial instruments comprising the Disclosed Portfolio of the Fund;
or (2) whether other unusual conditions or circumstances detrimental to
the maintenance of a fair and orderly market are present. Trading in
the Shares will be subject to NYSE Arca Equities Rule 8.600(d)(2)(D),
which sets forth circumstances under which Shares of the Fund may be
halted.
---------------------------------------------------------------------------

    \21\ See NYSE Arca Equities Rule 7.12, Commentary .04.
---------------------------------------------------------------------------

Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m., Eastern Time in
accordance with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late
Trading Sessions). The Exchange has appropriate rules to facilitate
transactions in the Shares during all

trading sessions. As provided in NYSE Arca Equities Rule 7.6,
Commentary .03, the minimum price variation (``MPV'') for quoting and
entry of orders in equity securities traded on the NYSE Arca
Marketplace is $0.01, with the exception of securities that are priced
less than $1.00 for which the MPV for order entry is $0.0001.
Surveillance
    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products (which include Managed
Fund Shares) to monitor trading in the Shares. The Exchange represents
that these procedures are adequate to properly monitor Exchange trading
of the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable federal securities laws.
    The Exchange's current trading surveillance focuses on detecting
securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations.
    The Exchange may obtain information via the Intermarket
Surveillance Group (``ISG'') from other exchanges that are members of
ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.\22\ In addition, the Exchange could
obtain information from the U.S. exchanges, all of which are ISG
members, on which the Underlying ETFs are listed and traded.
---------------------------------------------------------------------------

    \22\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio for the Fund may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit (``ETP'') Holders in an Information Bulletin
(``Bulletin'') of the special characteristics and risks associated with
trading the Shares. Specifically, the Bulletin will discuss the
following: (1) The procedures for purchases and redemptions of Shares
in Creation Unit Aggregations (and that Shares are not individually
redeemable); (2) NYSE Arca Equities Rule 9.2(a), which imposes a duty
of due diligence on its ETP Holders to learn the essential facts
relating to every customer prior to trading the Shares; (3) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated Portfolio Indicative Value will not be
calculated or publicly disseminated; (4) how information regarding the
Portfolio Indicative Value is disseminated; (5) the requirement that
ETP Holders deliver a prospectus to investors purchasing newly issued
Shares prior to or concurrently with the confirmation of a transaction;
and (6) trading information.
    In addition, the Bulletin will reference that the Fund is subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Exchange Act.
The Bulletin will also disclose that the NAV for the Shares will be
calculated after 4 p.m., Eastern Time each trading day.
2. Statutory Basis
    The basis under the Exchange Act for this proposed rule change is
the requirement under Section 6(b)(5) \23\ that an exchange have rules
that are designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
8.600. The Exchange has in place surveillance procedures that are
adequate to properly monitor trading in the Shares in all trading
sessions and to deter and detect violations of Exchange rules and
applicable federal securities laws. The Exchange may obtain information
via ISG from other exchanges that are members of ISG or with which the
Exchange has entered into a comprehensive surveillance sharing
agreement. The holdings of the Fund will be comprised primarily of
U.S.-exchange listed Underlying ETFs. The listing and trading of such
Underlying ETFs is subject to rules of the exchanges on which they are
listed and traded, as approved by the Commission. Except for Underlying
ETFs that may hold non-U.S. issues, the Fund will not otherwise invest
in non-U.S.-registered issues. The Fund will not purchase illiquid
securities, including Rule 144A securities and loan participation
interests. The Fund does not intend to invest in leveraged, inverse or
inverse leveraged Underlying ETFs. The Fund will not invest in options
contracts, futures contracts or swap agreements.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily and that the NAV
and the Disclosed Portfolio will be made available to all market
participants at the same time. In addition, a large amount of
information is publicly available regarding the Fund and the Shares,
thereby promoting market transparency. In addition, the Portfolio
Indicative Value will be widely disseminated by one or more major
market data vendors at least every 15 seconds during the Core Trading
Session.
    On each business day, before commencement of trading in Shares in
the Core Trading Session on the Exchange, the Fund will disclose on its
Web site the Disclosed Portfolio that will form the basis for the
Fund's calculation of NAV at the end of the business day. Information
regarding market price and trading volume of the Shares is and will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services, and quotation
and last sale information will be available via the CTA high-speed
line. The Web site for the Fund will include a form of the prospectus
for the Fund and additional data relating to NAV and other applicable
quantitative information. Moreover, prior to the commencement of
trading, the Exchange will inform its ETP Holders in an Information
Bulletin of the special characteristics and risks associated with
trading the Shares. Trading in Shares of the Fund will be halted if the
circuit breaker parameters in NYSE Arca Equities Rule 7.12 have been
reached or because of market conditions or for reasons that, in the
view of the Exchange, make trading in the Shares inadvisable, and
trading in the Shares will be subject to NYSE Arca Equities Rule
8.600(d)(2)(D), which sets forth circumstances under which Shares of
the Fund may be halted. In addition, as noted above, investors will
have ready access to information regarding the Fund's holdings, the
Portfolio Indicative Value, the Disclosed Portfolio, and quotation and
last sale information for the Shares.

    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of actively-managed exchange-traded products that will
enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, the Exchange has in
place surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement. In addition, as noted above, investors
will have ready access to information regarding the Fund's holdings,
the Portfolio Indicative Value, the Disclosed Portfolio, and quotation
and last sale information for the Shares.

B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) As the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission shall:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2011-80 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2011-80. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing will also be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-NYSEArca-2011-80 and should be
submitted on or before December 14, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------

    \24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30202 Filed 11-22-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 27 (Monday, February 10, 2020)]
[Notices]
[Page 7542]
[FR Doc No: 2020-02582]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. UL20-1-000]

Northern States Power Company--Wisconsin: Notice of Pending
Jurisdictional Inquiry and Soliciting Comments, Protests, and Motions
To Intervene

    On December 30, 2019, and supplemented on January 22, 2020,
Northern States Power Company--Wisconsin filed a preliminary
application document (PAD) and notice of intent to file a license
application for the Saxon Falls and Superior Falls Hydroelectric
Projects (FERC Project Nos. 2610 and 2587, respectively). Commission
staff's review of the PAD found information stating that the Gile
Flowage was created to augment river flows in the Montreal River during
the summer and winter low-flow periods at the downstream Saxon Falls
and Superior Falls Projects, and that both projects depend on flow
augmentation from Gile Flowage during these periods. The Gile Flowage
is in Iron County, Wisconsin. As a result, the Commission is beginning
a review of the Gile Flowage to determine whether it is subject to the
Commission's mandatory licensing jurisdiction under section 23 of the
Federal Power Act (FPA).
    Pursuant to section 23(b)(1) of the FPA, 16 U.S.C. 817(1) (2018), a
non-federal hydroelectric project must be licensed (unless it has a
still-valid pre-1920 federal permit) if it: (1) Is located on a
navigable water of the United States, (2) occupies lands or
reservations of the United States, (3) uses the surplus water or water
power from a government dam; or (4) is located on a stream over which
Congress has Commerce Clause jurisdiction, is constructed or modified
on or after August 26, 1935, and affects the interests of interstate or
foreign commerce.
    Section 4(e) of the FPA authorizes the Commission to issue licenses
for hydroelectric project works, including reservoirs. Section 23(b)(1)
of the FPA requires (with exceptions not relevant here) a Commission
license for the operation of non-federal hydroelectric project works,
including reservoirs, that are used to generate electric power on any
navigable waters of the United States. Storage reservoirs that are not
directly connected to other project works must be licensed if they are
necessary or appropriate in the maintenance and operation of a complete
unit of hydropower improvement or development. The Commission makes
this finding by examining the facts in each case, considering the
reservoir's effect on downstream generation and its storage capacity,
location, and purpose, to determine if there are significant generation
benefits to a downstream project or projects. The Commission has found,
and the D.C. Circuit has affirmed, that a contribution to downstream
electric generation of at least 2 percent amounts to a significant
generation benefit.\1\
---------------------------------------------------------------------------

    \1\ See Domtar Maine Corp., Inc. v. FERC, 347 F.3d 304, 309
(D.C. Cir. 2003); Chippewa and Flambeau Improvement Co. v. FERC, 325
F.3d 353 (D.C. Cir. 2003).
---------------------------------------------------------------------------

    The Commission is soliciting comments, motions to intervene, and
protests in these proceedings. Comments, motions to intervene, and
protests must be filed by thirty (30) days from notice or March 2,
2020. Anyone may submit comments, a protest, or a motion to intervene
in accordance with the requirements of Rules and Practice and
Procedure, 18 CFR 385.210, 211, and 214. In determining the appropriate
action to take, the Commission will consider all protests or comments
filed, but only those who file a motion to intervene in accordance with
the Commission's Rules may become a party to the proceeding. Any
comments, protests, or motions to intervene must be received on or
before the specified comment date.
    The Commission strongly encourages electronic filing. Please file
comments, protests, and motions to intervene using the Commission's
eFiling system at http://www.ferc.gov/docs-filing/efiling.asp.
Commenters can submit brief comments up to 6,000 characters, without
prior registration, using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact
information at the end of your comments. For assistance, please contact
FERC Online Support at<EMAIL_ADDRESS>(866) 208-3676 (toll
free), or<PHONE_NUMBER> (TTY). In lieu of electronic filing, please
send a paper copy to: Secretary, Federal Energy Regulatory Commission,
888 First Street NE, Washington, DC 20426. The first page of any filing
should include docket number UL20-1-000.
    For further information, please contact Jennifer Polardino at (202)
502-6437 or<EMAIL_ADDRESS>
    Dated: January 31, 2020.
Kimberly D. Bose,
Secretary.
[FR Doc. 2020-02582 Filed 2-7-20; 8:45 am]
BILLING CODE 6717-01-P