[Federal Register: June 3, 2009 (Volume 74, Number 105)]
[Notices]
[Page 26746-26750]
[DOCID:fr03jn09-121]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 28748; File No. 812-13551]

The Managers Funds, et al.; Notice of Application

May 28, 2009.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under (a) section 6(c) of
the Investment Company Act of 1940 (``Act'') granting an exemption from
sections 18(f) and 21(b) of the Act; (b) section 12(d)(1)(J) of the Act
granting an exemption from section 12(d)(1) of the Act; (c) sections
6(c) and 17(b) of the Act granting an exemption from sections 17(a)(1),
17(a)(2) and 17(a)(3) of the Act; and (d) section 17(d) of the Act and
rule 17d-1 under the Act to permit certain joint arrangements.

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    Summary of the Application: Applicants request an order that would
permit certain registered open-end management investment companies to
participate in a joint lending and borrowing facility.
    Applicants: The Managers Funds, Managers AMG Funds, Managers Trust
I, and Managers Trust II (each, a ``Trust,'' and collectively, the
``Trusts''), and Managers Investment Group LLC (``Managers'').
    Filing Dates: The application was filed on July 24, 2008, and
amended on January 22, 2009, May 11, 2009, and May 27, 2009.
    Hearing or Notification of Hearing: An order granting the
application will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on June 22, 2009 and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street, NE., Washington, DC 20549-1090; Applicants, 800 Connecticut
Avenue, Norwalk, CT 06854-2325.

FOR FURTHER INFORMATION CONTACT: Steven I. Amchan, Attorney Adviser, at
(202) 551-6826, or, Julia Kim Gilmer, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's website by searching for the file number, or an applicant
using the Company name box, at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. Each Trust is organized as a Massachusetts business trust and is
registered under the Act as an open-end management investment
company.\1\ Each Trust consists of one or more series (``Funds'').
Managers, a Delaware limited liability company and an independently
managed subsidiary of Affiliated Managers Group, Inc., is registered as
an investment adviser under the Investment Advisers Act of 1940, and
serves as the investment adviser to, and administrator of, each
Fund.\2\
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    \1\ Applicants request that the order also apply to any existing
or future registered management investment company advised by
Managers, or any entity controlling, controlled by, or under common
control with Managers, that is in the same ``group of investment
companies'' as the Trusts, as defined in section 12(d)(1)(G)(ii) of
the Act (included in the term ``Trusts'').
    \2\ Applicants request that the order also apply to any
successor entity to Managers. The term ``successor entity'' is
limited to entities that result from a reorganization into another
jurisdiction or a change in the type of business organization.''
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    2. At any particular time, while some Funds invest their cash
balances in money market funds or purchase other short-term
instruments, other Funds may need to rely on custodian overdrafts for
temporary purposes to satisfy redemption requests, to cover
unanticipated cash shortfalls such as a trade ``fail'' in which cash
payment for a security sold by a Fund has been delayed, or for other
temporary purposes.
    3. If a Fund were to incur an overdraft with the custodian bank,
the Fund would pay interest on the loan at a rate that is significantly
higher than the rate that is earned by other (non-borrowing) Funds on
investments in money market funds, or if applicable, other short term
instruments of the same maturity as the overdraft loan. Applicants
state that this differential represents the profit earned by the lender
by way of overdrafts and is not attributable to any material difference
in the credit quality or risk of such transactions.
    4. Applicants request an order that would permit the Trusts to
enter into master interfund lending agreements (``Interfund Lending
Agreements'') with each other on behalf of the Funds that would permit
each Fund to lend money directly to and borrow directly from other
Funds through a credit facility for temporary purposes (``Interfund
Loan''). Applicants state that the proposed credit facility would
substantially reduce the Funds' potential borrowing costs and enhance
the ability of the lending Funds to earn higher rates of interest on
their short-term lendings. Although the proposed credit facility would
substantially reduce the Funds' need to borrow through custodian
overdrafts, the Funds would be free to establish committed lines of
credit or other borrowing arrangements with unaffiliated banks.
    5. Applicants anticipate that the proposed credit facility would
provide a borrowing Fund with significant savings at times when the
cash position of the borrowing Fund is insufficient to meet temporary
cash requirements. This situation could arise when shareholder
redemptions exceed anticipated volumes and certain Funds have
insufficient cash on hand to satisfy such redemptions. When the Funds
liquidate portfolio securities to meet redemption requests, they often
do not receive payment in settlement for up to three days (or longer
for certain foreign transactions). However, redemption requests
normally are effected immediately. The proposed credit facility would
provide a source of immediate, short-term liquidity pending settlement
of the sale of portfolio securities.
    6. Applicants also propose that a Fund could use the proposed
credit facility when a sale of securities ``fails'' due to
circumstances beyond the Fund's control, such as a delay in the
delivery of cash to the Fund's custodian bank or improper delivery
instructions by the broker effecting the transaction. ``Sales fails''
may present a cash shortfall if the Fund has undertaken to purchase a
security using the proceeds from securities sold. Alternatively, the
Fund could either ``fail'' on its intended purchase due to lack of
funds from the previous sale, resulting in additional cost to the Fund
or sell a security on a

same-day settlement basis, earning a lower return on the investment.
Use of the proposed credit facility under these circumstances would
enable the Fund to have access to immediate short-term liquidity
without the Fund incurring custodian overdraft or other charges.
    7. While bank borrowings generally could supply needed cash to
cover unanticipated redemptions and sales fails, under the proposed
credit facility, a borrowing Fund would pay lower interest rates than
those that would be payable under short-term loans offered by banks. In
addition, Funds making short-term cash loans directly to other Funds
would earn interest at a rate higher than they otherwise could obtain
from investing their cash in repurchase agreements or purchasing shares
of a money market Fund. Thus, the proposed credit facility would
benefit both borrowing and lending Funds.
    8. The interest rate to be charged to the Funds on any Interfund
Loan (the ``Interfund Loan Rate'') would be the average of the ``Repo
Rate'' and the ``Bank Loan Rate,'' both as defined below. The Repo Rate
for any day would be the highest or best (after giving effect to
factors such as the credit quality of the issuer) rate available to a
lending Fund from investment in overnight repurchase agreements. The
Bank Loan Rate for any day would be calculated by Managers each day an
Interfund Loan is made according to a formula established by each
Trust's board of trustees (``Trustees'') intended to approximate the
lowest interest rate at which bank short-term loans would be available
to the Funds. The formula would be based upon a publicly available rate
(e.g., federal funds plus 200 basis points) and would vary with this
rate so as to reflect changing bank loan rates. The initial formula and
any subsequent modifications to the formula would be subject to the
approval of each Trust's Trustees. Each Trust's Trustees would
periodically review the continuing appropriateness of using the formula
to determine the Bank Loan Rate, as well as the relationship between
the Bank Loan Rate and current bank loan rates that would be available
to the Funds. The initial formula and any subsequent modifications to
it would subject to the approval of each Trust's Trustees.
    9. The proposed credit facility would be administered by Managers's
fund administration department (the ``Credit Facility Team''), and no
portfolio manager for any Fund would serve on the Credit Facility Team.
Under the proposed credit facility, the portfolio managers for each
participating Fund could provide standing instructions to participate
daily as a borrower or lender. The Credit Facility Team on each
business day would collect data on the uninvested cash and borrowing
requirements of all participating Funds. Once it determined the
aggregate amount of cash available for loans and borrowing demand, the
Credit Facility Team would allocate loans among borrowing Funds without
any further communication from the portfolio managers of the Funds.
After the allocating cash for Interfund Loans, the Credit Facility Team
would invest any remaining cash in accordance with the standing
instructions of the portfolio managers or such remaining amounts will
be invested directly by the portfolio managers of the Funds.
    10. The Credit Facility Team would allocate borrowing demand and
cash available for lending among the Funds on what the Credit Facility
Team believes to be an equitable basis, subject to certain
administrative procedures applicable to all Funds, such as the time of
filing requests to participate, minimum loan lot sizes and the need to
minimize the number of transactions and associated administrative
costs. To reduce transaction costs, each loan normally would be
allocated in a manner intended to minimize the number of participants
necessary to complete the loan transaction. The method of allocation
and related administrative procedures would be approved by each Trust's
Trustees, including a majority of Trustees who are not ``interested
persons'' of the Trust, as that term is defined in Section 2(a)(19) of
the Act (``Independent Trustees''), to ensure that both borrowing and
lending Funds participate on an equitable basis.
    11. Managers, through the Credit Facility Team, would administer
the proposed credit facility as a disinterested fiduciary as part of
its duties under the relevant management, advisory or administrative
contract with each Fund and would receive no additional fee as
compensation for its services in connection with the administration of
the proposed credit facility. Managers would: (i) Monitor the Interfund
Loan Rate and the other terms and conditions of the loans; (ii) limit
the borrowings and loans entered into by each Fund to ensure that they
comply with the Fund's investment policies and limitations; (iii)
ensure equitable treatment of each Fund; and (iv) make quarterly
reports to the Trustees concerning any transactions by the Funds under
the proposed credit facility and the Interfund Loan Rate charged.
    12. No Fund may participate in the proposed credit facility unless:
(i) The Fund has obtained shareholder approval for its participation,
if such approval is required by law; (ii) the Fund has fully disclosed
all material information concerning the credit facility in its
prospectus and/or statement of additional information; and (iii) the
Fund's participation in the credit facility is consistent with its
investment objectives, limitations and organizational documents.
    13. In connection with the credit facility, applicants request an
order under (a) section 6(c) of the Act granting relief from sections
18(f) and 21(b) of the Act; (b) section 12(d)(1)(J) of the Act granting
relief from section 12(d)(1) of the Act; (c) sections 6(c) and 17(b) of
the Act granting relief from sections 17(a)(1), 17(a)(2) and 17(a)(3)
of the Act; and (d) under section 17(d) of the Act and rule 17d-1 under
the Act to permit certain joint arrangements.

Applicants' Legal Analysis

    1. Section 17(a)(3) of the Act generally prohibits any affiliated
person, or affiliated person of an affiliated person, from borrowing
money or other property from a registered investment company. Section
21(b) of the Act generally prohibits any registered management company
from lending money or other property to any person, directly or
indirectly, if that person controls or is under common control with
that company. Section 2(a)(3)(C) of the Act defines an ``affiliated
person'' of another person, in part, to be any person directly or
indirectly controlling, controlled by, or under common control with,
such other person. Section 2(a)(9) of the Act defines ``control'' as
the ``power to exercise a controlling influence over the management or
policies of a company,'' but excludes circumstances in which ``such
power is solely the result of an official position with such company.''
Applicants state that the Funds could be deemed to be under common
control by virtue of having Managers as their common investment adviser
and/or by reason of having common officers and Trustees.
    2. Section 6(c) of the Act provides that an exemptive order may be
granted where an exemption is necessary or appropriate in the public
interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Act.
Section 17(b) of the Act authorizes the Commission to exempt a proposed
transaction from the provisions of section 17(a) of the Act provided
that the terms of the transaction, including the consideration to be
paid or received, are fair and reasonable and do not involve
overreaching on the part of any person concerned, and the transaction
is

consistent with the policy of the investment company as recited in its
registration statement and with the general purposes of the Act.
Applicants assert that the proposed arrangements satisfy these
standards for the reasons discussed below.
    3. Applicants assert that sections 17(a)(3) and 21(b) were intended
to prevent a person with strong potential adverse interests to, and
some influence over the investment decisions of, a registered
investment company from causing or inducing the investment company to
engage in lending transactions that unfairly inure to the benefit of
such person and that are detrimental to the best interests of the
investment company and its shareholders. Applicants assert that the
proposed credit facility transactions do not raise these concerns
because: (a) Managers, through the Credit Facility Team, would
administer the program as a disinterested fiduciary; (b) all Interfund
Loans would consist only of uninvested cash reserves that a Fund
otherwise would invest in short-term repurchase agreements or other
short-term instruments either directly or through a money market fund;
(c) the Interfund Loans would not involve a significantly greater risk
than such other investments; (d) the lending Fund would receive
interest at a rate higher than it could otherwise obtain through such
other investments; and (e) the borrowing Fund would pay interest at a
rate lower than otherwise available to it through custodian overdrafts
and avoid the up-front commitment fees generally associated with
committed lines of credit. Moreover, applicants believe that the other
terms and conditions in the application would effectively preclude the
possibility of any Fund obtaining an undue advantage over any other
Fund.
    4. Section 17(a)(1) of the Act generally prohibits any affiliated
person of a registered investment company, or any affiliated person of
such a person, from selling securities or other property to the
investment company. Section 17(a)(2) of the Act generally prohibits an
affiliated person of a registered investment company, or any affiliated
person of such a person, from purchasing securities or other property
from the investment company. Section 12(d)(1) of the Act generally
makes it unlawful for a registered investment company to purchase or
otherwise acquire any security issued by any other investment company
except in accordance with the limitations set forth in that section.
    5. Applicants state that the obligation of a borrowing Fund to
repay an Interfund Loan may constitute a security under sections
17(a)(1) and 12(d)(1). Applicants also state that any pledge of assets
in connection with an Interfund Loan could be construed as a purchase
of those assets from the borrowing Fund, and therefore a purchase of
the borrowing Fund's securities or other property for the purposes of
section 17(a)(2) of the Act. Section 12(d)(1)(J) of the Act provides
that the Commission may exempt persons or transactions from any
provision of section 12(d)(1) if and to the extent that such exemption
is consistent with the public interest and the protection of investors.
Applicants contend that the standards under sections 6(c), 17(b), and
12(d)(1)(J) are satisfied for all the reasons set forth above in
support of their request for relief from sections 17(a)(3) and 21(b)
and for the reasons discussed below. Applicants also state that the
requested relief from section 17(a)(2) of the Act meets the standards
of section 6(c) and 17(b) because any collateral pledged to secure an
Interfund Loan would be subject to the same conditions imposed by any
other lender to a Fund that imposes conditions on the quality of or
access to collateral for a borrowing (if the other lender is another
Fund) or the same or better conditions (in any other circumstance).
    6. Applicants state that section 12(d)(1) was intended to prevent
the pyramiding of investment companies in order to avoid imposing on
investors additional and duplicative costs and fees attendant upon
multiple layers of investment companies. Applicants assert that the
proposed credit facility does not involve these abuses. Applicants note
that there will be no duplicative costs or fees to the Funds or to the
Funds' shareholders and that Managers will receive no additional
compensation for its services in administering the credit facility.
Applicants also note that the purpose of the proposed credit facility
is to provide economic benefits for all of the participating Funds.
    7. Section 18(f)(1) of the Act prohibits registered open-end
investment companies from issuing any senior security except that a
company is permitted to borrow from any bank, if immediately after the
borrowing, there is asset coverage of at least 300 per centum for all
borrowings of the company. Under section 18(g) of the Act, the term
``senior security'' generally includes any bond, debenture, note or
similar obligation or instrument constituting a security and evidencing
indebtedness. Applicants request relief from section 18(f)(1) to the
limited extent necessary to implement the credit facility (because the
lending Funds are not banks).
    8. Applicants assert that granting relief under section 6(c) of the
Act is appropriate because the Funds would remain subject to the
requirement of section 18(f)(1) of the Act that all borrowings of a
Fund, including combined Interfund Loans and bank borrowings, have at
least 300 per centum asset coverage. Based on the conditions and
safeguards described in the application, applicants also assert that to
allow the Funds to borrow from other Funds pursuant to the proposed
credit facility is consistent with the purposes and policies of section
18(f)(1) of the Act.
    9. Section 17(d) and rule 17d-1 generally prohibit any affiliated
person of a registered investment company, or any affiliated person of
an affiliated person, when acting as principal, from effecting any
joint transaction in which the company participates unless the
transaction is approved by the Commission. Rule 17d-1(b) provides that
in passing upon applications filed under the rule, the Commission will
consider whether the participation of a registered investment company
in a joint enterprise on the basis proposed is consistent with the
provisions, policies, and purposes of the Act and the extent to which
the company's participation is on a basis different from or less
advantageous than that of other participants.
    10. Applicants assert that the purpose of section 17(d) is to avoid
overreaching by and unfair advantage to investment company insiders.
Applicants believe that the credit facility is consistent with the
provisions, policies and purposes of the Act in that it offers both
reduced borrowing costs and enhanced returns on loaned funds to all
participating Funds and their shareholders. Applicants note that each
Fund would have an equal opportunity to borrow and lend on equal terms
consistent with its investment policies and fundamental investment
limitations. Applicants therefore believe that each Fund's
participation in the credit facility will be on terms that are no
different from or less advantageous than that of other participating
Funds.

Applicants' Conditions

    Applicants agree that any order of the Commission granting the
requested relief will be subject to the following conditions:
    1. The Interfund Loan Rate will be the average of the Repo Rate and
the Bank Loan Rate.
    2. On each business day, the Credit Facility Team will compare the
Bank

Loan Rate with the Repo Rate and will make cash available for Interfund
Loans only if the Interfund Loan Rate is: (i) More favorable to the
lending Fund than the Repo Rate and, if applicable, the yield of any
money market fund in which the lending Fund could otherwise invest; and
(ii) more favorable to the borrowing Fund than the Bank Loan Rate.
    3. If a Fund has outstanding borrowings, any Interfund Loans to the
Fund: (i) Will be at an interest rate equal to or lower than any
outstanding bank loan; (ii) will be secured at least on an equal
priority basis with at least an equivalent percentage of collateral to
loan value as any outstanding bank loan that requires collateral; (iii)
will have a maturity no longer than any outstanding bank loan (and in
any event not over seven days); and (iv) will provide that, if an event
of default by the Fund occurs under any agreement evidencing an
outstanding bank loan to the Fund, that event of default will
automatically (without need for action or notice by the lending Fund)
constitute an immediate event of default under the Interfund Lending
Agreement entitling the lending Fund to call the Interfund Loan (and
exercise all rights with respect to any collateral) and that such call
will be made if the lending bank exercises its right to call its loan
under its agreement with the borrowing Fund.
    4. A Fund may make an unsecured borrowing through the proposed
credit facility if its outstanding borrowings from all sources
immediately after the interfund borrowing total 10% or less of its
total assets, provided that if the Fund has a secured loan outstanding
from any other lender, including but not limited to another Fund, the
Fund's interfund borrowing will be secured on at least an equal
priority basis with at least an equivalent percentage of collateral to
loan value as any outstanding loan that requires collateral. If a
Fund's total outstanding borrowings immediately after an interfund
borrowing would be greater than 10% of its total assets, the Fund may
borrow through the proposed credit facility only on a secured basis. A
Fund may not borrow through the proposed credit facility or from any
other source if its total outstanding borrowings immediately after such
borrowing would exceed the limits imposed by section 18 of the Act.
    5. Before any Fund that has outstanding interfund borrowings may,
through additional borrowings, cause its outstanding borrowings from
all sources to exceed 10% of its total assets, the Fund must first
secure each outstanding Interfund Loan by the pledge of segregated
collateral with a market value at least equal to 102% of the
outstanding principal value of the loan. If the total outstanding
borrowings of a Fund with outstanding Interfund Loans exceed 10% of its
total assets for any other reason (such as a decline in net asset value
or because of shareholder redemptions), the Fund will within one
business day thereafter: (i) Repay all its outstanding Interfund Loans;
(ii) reduce its outstanding indebtedness to 10% or less of its total
assets; or (iii) secure each outstanding Interfund Loan by the pledge
of segregated collateral with a market value at least equal to 102% of
the outstanding principal value of the loan until the Fund's total
outstanding borrowings cease to exceed 10% of its total assets, at
which time the collateral called for by this condition (5) shall no
longer be required. Until each Interfund Loan that is outstanding at
any time that a Fund's total outstanding borrowings exceed 10% is
repaid or the Fund's total outstanding borrowings cease to exceed 10%
of its total assets, the Fund will mark the value of the collateral to
market each day and will pledge such additional collateral as is
necessary to maintain the market value of the collateral that secures
each outstanding Interfund Loan at least equal to 102% of the
outstanding principal value of the Interfund Loan.
    6. No Fund may lend to another Fund through the proposed credit
facility if the loan would cause its aggregate outstanding loans
through the proposed credit facility to exceed 15% of the lending
Fund's current net assets at the time of the loan.
    7. A Fund's Interfund Loans to any one Fund shall not exceed 5% of
the lending Fund's net assets.
    8. The duration of Interfund Loans will be limited to the time
required to receive payment for securities sold, but in no event more
than seven days. Loans effected within seven days of each other will be
treated as separate loan transactions for purposes of this condition.
    9. A Fund's borrowings through the proposed credit facility, as
measured on the day when the most recent loan was made, will not exceed
the greater of 125% of the Fund's total net cash redemptions for the
preceding seven calendar days or 102% of the Fund's sales fails for the
preceding seven calendar days.
    10. Each Interfund Loan may be called on one business day's notice
by a lending Fund and may be repaid on any day by a borrowing Fund.
    11. A Fund's participation in the proposed credit facility must be
consistent with its investment objectives, and limitations and
organizational documents.
    12. The Credit Facility Team will calculate total Fund borrowing
and lending demand through the proposed credit facility, and allocate
loans on an equitable basis among the Funds, without the intervention
of any portfolio manager of the Funds. The Credit Facility Team will
not solicit cash for the proposed credit facility from any Fund or
prospectively publish or disseminate loan demand data to portfolio
managers. The Credit Facility Team will invest any amounts remaining
after satisfaction of borrowing demand in accordance with the standing
instructions of the portfolio managers or such remaining amounts will
be invested directly by the portfolio managers of the Funds.
    13. Managers will monitor the Interfund Loan Rate and the other
terms and conditions of the Interfund Loans and will make a quarterly
report to the Trustees of each Trust concerning the participation of
the Funds in the proposed credit facility and the terms and other
conditions of any extensions of credit under the credit facility.
    14. The Trustees of each Trust, including a majority of the
Independent Trustees, will: (i) Review, no less frequently than
quarterly, each Fund's participation in the proposed credit facility
during the preceding quarter for compliance with the conditions of any
order permitting such transactions; (ii) establish the Bank Loan Rate
formula used to determine the interest rate on Interfund Loans and
review, no less frequently than annually, the continuing
appropriateness of the Bank Loan Rate formula; and (iii) review, no
less frequently than annually, the continuing appropriateness of each
Fund's participation in the proposed credit facility.
    15. In the event an Interfund Loan is not paid according to its
terms and such default is not cured within two business days from its
maturity or from the time the lending Fund makes a demand for payment
under the provisions of the Interfund Lending Agreement, Managers will
promptly refer such loan for arbitration to an independent arbitrator
selected by the Trustees of each Fund involved in the loan who will
serve as arbitrator of disputes concerning Interfund Loans.\3\ The
arbitrator will resolve any problem promptly, and the arbitrator's
decision will be binding on both Funds. The arbitrator will submit,

at least annually, a written report to the Trustees setting forth a
description of the nature of any dispute and the actions taken by the
Funds to resolve the dispute.
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    \3\ If the dispute involves Funds with different Trustees, the
respective Trustees of each Fund will select an independent
arbitrator that is satisfactory to each Fund.
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    16. Each Fund will maintain and preserve for a period of not less
than six years from the end of the fiscal year in which any transaction
by it under the proposed credit facility occurred, the first two years
in an easily accessible place, written records of all such transactions
setting forth a description of the terms of the transactions, including
the amount, the maturity and the Interfund Loan Rate, the rate of
interest available at the time on overnight repurchase agreements and
commercial bank borrowings, the yield of any money market fund in which
the lending Fund could otherwise invest, and such other information
presented to the Fund's Trustees in connection with the review required
by conditions 13 and 14.
    17. Managers will prepare and submit to the Trustees for review an
initial report describing the operations of the proposed credit
facility and the procedures to be implemented to ensure that all Funds
are treated fairly. After the commencement of the proposed credit
facility, Managers will report on the operations of the proposed credit
facility at the Trustees' quarterly meetings.
    In addition, for two years following the commencement of the credit
facility, the independent public accountant for each Fund shall prepare
an annual report that evaluates Managers' assertion that it has
established procedures reasonably designed to achieve compliance with
the terms and conditions of the order. The report will be prepared in
accordance with the Statements on Standards for Attestation Engagements
No. 10 and it shall be filed pursuant to Item 77Q3 of Form N-SAR as
such Statements or Form may be revised, amended or superseded from time
to time. In particular, the report shall address procedures designed to
achieve the following objectives: (i) That the Interfund Loan Rate will
be higher than the Repo Rate, and, if applicable, the yield of the
money market funds, but lower than the Bank Loan Rate; (ii) compliance
with the collateral requirements as set forth in the Application; (iii)
compliance with the percentage limitations on interfund borrowing and
lending; (iv) allocation of interfund borrowing and lending demand in
an equitable manner and in accordance with procedures established by
the Trustees; and (v) that the Interfund Loan Rate does not exceed the
interest rate on any third party borrowings of a borrowing Fund at the
time of the Interfund Loan.
    After the final report is filed, each Fund's independent auditors,
in connection with their audit examination of the Fund, will continue
to review the operation of the proposed credit facility for compliance
with the conditions of the Application and their review will form the
basis, in part, of the auditor's report on internal accounting controls
in Form N-SAR.
    18. No Fund will participate in the proposed credit facility upon
receipt of requisite regulatory approval unless it has fully disclosed
in its prospectus and/or statement of additional information all
material facts about its intended participation.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-12917 Filed 6-2-09; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 84, Number 51 (Friday, March 15, 2019)]
[Notices]
[Page 9510]
[FR Doc No: 2019-04846]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER19-1230-000]

TRS Fuel Cell, LLC; Supplemental Notice That Initial Market-Based
Rate Filing Includes Request for Blanket Section 204 Authorization

    This is a supplemental notice in the above-referenced proceeding of
TRS Fuel Cell, LLC's application for market-based rate authority, with
an accompanying rate tariff, noting that such application includes a
request for blanket authorization, under 18 CFR part 34, of future
issuances of securities and assumptions of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is April 1, 2019.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
5 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for electronic review in the
Commission's Public Reference Room in Washington, DC. There is an
eSubscription link on the website that enables subscribers to receive
email notification when a document is added to a subscribed docket(s).
For assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.

    Dated: March 11, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2019-04846 Filed 3-14-19; 8:45 am]
 BILLING CODE 6717-01-P


protect public health and the environment.  In certain cases, such as
the Annual Report requirements for primary exporters of hazardous waste,
EPA has limited the informational requirements for small generators.
These facilities do not have to include a description of efforts taken
to reduce waste volume or toxicity, or descriptions of any variation in
the volume and toxicity of wastes relative to previous years.  Certain
categories of small entities are exempt from the information collection
requirements described herein.  Others are subject to reduced
requirements.  The training requirements do not apply to small quantity
generators.  Nor are they subject to the contingency plan and emergency
procedure requirements.  Finally, such generators are subject to reduced
tank standards under section 265.201.

5(d)	COLLECTION SCHEDULE

HAZARDOUS WASTE DETERMINATION REQUIREMENTS

There is no collection schedule for generators’ hazardous waste
determinations.

PRE-TRANSPORT REQUIREMENTS (FOR BOTH LQGs AND SQGs)

The reporting requirements outlined in the regulations will vary
according to individual facility circumstances.  Because container
labeling and keeping records of personnel training are conducted onsite,
a discussion of a collection schedule is not relevant.

There is no collection schedule for generators reporting releases of
hazardous waste into the environment, as facilities only report on these
occasions. The emergency coordinator must immediately notify the
appropriate authorities of an imminent or actual emergency situation.
An LQG must submit a written report of any incident that requires the
implementation of the contingency plan within 15 days of its occurrence.
 Since generators are not required to submit their contingency plans to
EPA, discussion of a collection schedule for these facilities is not
applicable.

Records of tank system assessments, statements on design and
installation, and records of annual leak tests and inspections are kept
by the LQGs.  Therefore,  a discussion of a collection schedule is not
applicable.  The time frame for submitting demonstrations provided under
this section is dependent upon the desire of LQGs to submit such
demonstrations.  However, the regulations do specify time frames for
submissions related to certain situations.  LQGs must submit release
notification reports within 30 days of detecting a release.  In
addition, the certification of major repairs (required under
§265.196(f)) must be submitted within seven days of returning the
repaired tank system to use.  With regard to drip pads, plans for
upgrading drip pads must be prepared 2 years before completion of such
repairs, pad assessments must be recertified annually, records of
releases must be documented upon detection and notice provided to EPA
within 24 hours (written notice in within 10 days), and notice of
repairs provided upon completion of such repairs.  As for containment
buildings, certification that the building meets design requirements is
required within 60 days of initiating operation, records of releases
must be filed upon detection and notice to EPA provided within 7 days
(written notice within 14 days).  In addition, monitoring data must be
placed in the record every 7 days.

There is no collection schedule for generators requesting extensions
from the Regional Administrator of the accumulation period, as these
requests presume unforeseen circumstances.

LARGE QUANTITY GENERATOR AIR EMISSION STANDARDS

The regulations at 40 CFR part 265, subparts AA and BB for generators do
not specify time frames for submittals, and a discussion of a schedule
regarding these requirements is not applicable.

RECORDKEEPING AND REPORTING

As the recordkeeping regulations in section 262.40 do not require the
transmittal of any information, a discussion of a schedule regarding
this requirement is not applicable.  Additionally, as section 262.43
allows the Administrator to require additional information of generators
on an irregular basis, a discussion of a collection schedule is not
applicable.

EXPORT REQUIREMENTS

Generators meeting the definition of primary exporters should notify the
EPA 60 days before the initial shipment of waste is scheduled to leave
the United States (§262.53).  The notifications of intent to export are
collected as necessitated by generator activities.  EPA has limited the
burden of collection by allowing one notification to cover activities
extending over a twelve-month period, unless certain conditions are
altered.

Under the rule codifying the OECD Decision, Notification of Intent to
Export submissions and tracking documents are generated and sent to EPA
on a random, occurrence-specific basis for which there is no formalized
schedule.  Once these events do occur, notifications must be sent to EPA
within 45 days prior to initiating waste exports, and tracking documents
must be sent to EPA by U.S. recovery facilities within three working
days of receipt of imported wastes.

The collection schedule for export activity Annual Reports requires
their submittal no later than March 1 of the following year (§262.56).
The report must include information regarding the primary exporter,
transporter, and consignee, as well as the volume and characteristics of
the waste.   The report must also include a description of any variation
in the volume and toxicity of wastes relative to previous years (not
applicable to generators of more than 100 kilograms but less than 1000
kilograms of hazardous waste in a calendar month or to those already
submitting information in the Biennial Report), and a signed
certification.  The recordkeeping regulations in section 262.57 do not
require the transmittal of any information; a discussion of a schedule
regarding this requirement is not applicable.

6.	ESTIMATING THE BURDEN AND COST OF THE COLLECTION

6(a)	ESTIMATING ANNUAL RESPONDENT BURDEN

This ICR is a comprehensive presentation of all of the information
collection activities required for generator standards and covers Fiscal
Years 2008-2010.

Exhibit 1 summarizes the universe of generators.  EPA estimated
respondent burden hours and costs associated with all of the
requirements covered in this ICR in the following exhibits: Exhibit 2
addresses both LQG and SQG respondent burden for reading the
regulations; Exhibit 3 addresses LQG pre-transport requirements; Exhibit
4 addresses LQG air emission standards; Exhibit 5 addresses SQG
pre-transport requirements; Exhibit 6 and 7 address specific export and
import requirements for all generators; and Exhibit 8 summarizes total
annual aggregate respondent burden and costs for all activities.

6(b)	ESTIMATING ANNUAL RESPONDENT COSTS

Exhibits 2 through 7 estimate the costs to generators based on the cost
of labor, operation and maintenance (O&M), and capital.  For purposes of
this analysis, EPA estimates an average hourly respondent labor cost
(including fringe and overhead) of $81.13 for legal staff, $65.61 for
managerial staff, $36.34 for technical staff, and $17.99 for clerical
staff. These wage rates are based on actual Bureau of Labor Statistics
(BLS) mean rates, plus overhead and fringe benefits.  These rates are
lower than those previously used.  Previous estimates reflected updates
with a straight inflation factor applied to previous respondent hourly
estimates.

In the following paragraphs, EPA estimates capital costs associated with
the information requirements covered by this ICR.  Capital costs usually
include any produced physical good needed to provide the needed
information, such as machinery, computers, and other equipment.  For
this ICR, the only required capital is file cabinets for maintaining
reports.  As shown in Exhibit 8, EPA estimates the total average annual
capital cost to all generators, collectively, to be approximately
$22,770.  In ICR 0820.08, EPA took the following steps to derive these
costs:

Estimate the total annual volume of reports required to be retained by
all generators.  In total, EPA estimates that LQGs must maintain
approximately 91 pages of reports annually, while SQGs maintain
approximately 2 pages.

Ascertain the number of standard-size file cabinets that would provide
the needed capacity and estimate the aggregate purchasing price.  Given
that a standard-size, five-drawer, lateral file cabinet holds
approximately 16,000 pages, EPA estimates that the hazardous waste
industry would need to purchase approximately 103 file cabinets each
year (i.e.,1,647,939/16,000).  These 103 file cabinets represent the
total capacity needed by the industry, collectively, to store all of its
reports.  Based on its consultations, EPA estimates that the purchasing
price for one file cabinet is $700, and for all 103 file cabinets,
$72,100.

Annualize the aggregate purchasing price using a net present value
formula.  EPA used the following annualized net present value formula to
calculate the annual cost to the hazardous waste industry to acquire
these file cabinets:

Annual Cost = $62,700(A/P, k, t)

where 	A/P = capital recovery factor;

		k = discount rate of 7 percent;

		t = life of equipment (3 years).

Based on this formula, the total annualized cost of file cabinets was
reported in ICR 0820.10 to be approximately $23,892.

For this ICR, because the estimated cost of one file cabinet was
confirmed to be the same as in previous years, the total costs were
estimated by using a percentage of the previous total based on the
decrease in the universe of respondents.

O&M costs are those costs associated with a paperwork requirement
incurred continually over the life of the ICR.  They are defined by the
PRA as “the recurring dollar amount of cost associated with O&M or
purchasing services.”  For this ICR, O&M costs cover postage and an
envelope for reports sent to other parties $1.48 postage, 4 cents per
standard envelope) photocopying of reports submitted to the Agency (11
cents per page), for long-distance phone calls ($5.00 per call).  O&M
costs are shown in Exhibits 2 though 8 for all applicable activities.

  	6(c)	ESTIMATING ANNUAL AGENCY BURDEN AND COST

EPA estimates Agency burden hours and costs associated with all the
requirements covered in this ICR in Exhibit 9.  EPA estimates an average
hourly Agency labor cost of $55.65 for Regional legal staff, $52.24 for
Regional managerial staff, $31.26 for Regional technical staff, and
$19.94 for Regional clerical staff.  EPA used the 2007 Federal Pay
Schedule salary figures to estimate annual compensation of Regional
legal, managerial, technical, and clerical staff.  For purposes of this
ICR, EPA assigned Regional staff the following government service
levels:

Legal staff		GS-15, Step 1

Managerial staff		GS-13, Step 1

Technical staff		GS-11, Step 1

Clerical staff		GS-06, Step 1

EPA divided annual compensation estimates by 2,080, the number of hours
in a Federal work year, and multiplied the rates by the standard
government overhead factor of 1.6 to derive hourly rates.

6(d)	ESTIMATING THE RESPONDENT UNIVERSE

LARGE QUANTITY GENERATOR AND SMALL QUANTITY GENERATOR REQUIREMENTS
(Exhibits 1 and 2)

(1)	Reading the Regulations

Based on the 2005 Biennial Reporting System (BRS), which is the most
current available, EPA estimates that there are approximately 14,984
LQGs.   A number of these LQGs (322), however, are also hazardous waste
treatment, storage, and disposal facilities (TSDFs).These facilities are
covered by other ICRs and were deleted from facilities covered in this
document, yielding an estimated 14,662 LQGs. ( Based on its analysis of
the 2005 BRS and RCRA INFO Data System, EPA estimates that there are
approximately 87,279 SQGs.  EPA believes that a number of the LQGs
(about 383) and SQGs (about 58) also are government-owned and
government-operated facilities and, therefore, not addressed in this
ICR.  Subsequently, these government-owned and government-operated
generators were deleted from the universe covered in this ICR, yielding
an estimated 14,279 LQGs and 87,221 SQGs.  As shown in Exhibit 1,
approximately  101,500 generators comprise the respondent universe.  As
shown in Exhibit 2, EPA expects that each LQG will average one hour to
read the generator standards once a year, while each SQG will average 42
minutes per year.

EXHIBIT 1

UNIVERSE OF GENERATORS

WASTE HANDLER TYPE

Total number

TSD

federal

NUMBER OF WASTE HANDLERS

Large Quantity Generator	14,984	322	383	14,279

Small Quantity Generator

87,279

58

87,221

Total

101,500

HAZARDOUS WASTE DETERMINATION REQUIREMENTS (Exhibit 3)

Under 40 CFR 262.11, all generators must determine whether their solid
waste qualifies as hazardous under RCRA.  Generators may test the waste
or use knowledge of the waste to make this determination.

EPA notes that generators must also determine, under the Land Disposal
Restrictions (LDR) Program, whether their hazardous waste is restricted
from land disposal, as required by 40 CFR 268.7(a)(1) and 268.9(a).  EPA
has burdened generators for their LDR determinations in the Land
Disposal Restrictions ICR, Number 1442.

EPA has confirmed through consultations that generators normally make
their hazardous waste and LDR determinations simultaneously and
therefore do not incur a separate burden for each determination.  For
example, a generator would normally make a single request to a
laboratory to determine if its waste is both hazardous and restricted
from land disposal.  Given this reasoning, EPA does not burden
generators in this ICR for making hazardous waste determinations, since
this burden is already reflected in ICR 1442.17.

LARGE QUANTITY GENERATOR PRE-TRANSPORT REQUIREMENTS (Exhibit 3)

(1)	Labeling

In section 262.34(a)(2) and (3), EPA requires all LQGs to label
containers with the words “Hazardous Waste” and the date of
accumulation.  EPA expects that all LQGs to comply with this
requirement.  In section 262.34 (c)(1) and (2), EPA requires LQGs
accumulating hazardous waste at satellite accumulation areas to label
containers as specified.  EPA expects that all LQGs will comply with
these requirements each year.

(2)	Personnel Training

In section 262.34(a)(4), EPA requires all LQGs to comply with the
personnel training requirements in section 265.16(d).  Section 265.16(d)
and (e) require that LQGs maintain copies of personnel training
documents and records at their facilities.  Based on an examination of
historical BRS data and trends, EPA estimates that about 3,141  LQGs
each year are new entrants into the hazardous waste universe and will be
required to collect information regarding their employees' training
experiences.

(3)	Contingency Planning and Emergency Procedures

This ICR assumes that existing LQGs have already prepared contingency
plans.  Therefore, only new LQGs will be required to document whether
State or local authorities decline to enter into an agreement to become
familiar with the LQG's facility and its wastes, and to prepare and
maintain a contingency plan.  EPA estimates LQGs will need to make
copies of and send the plans to three local authorities, on average.
Amendments to contingency plans of LQGs must also be made when
appropriate.  EPA estimates that 214 new LQGs will prepare original
contingency plans annually, and that 1,428 LQGs will amend their
contingency plan annually, during the period covered by this ICR.

Based on Emergency Response and Notification System (ERNS) data, the
Agency estimates that about 1.7 percent of all LQGs will have emergency
incidents requiring implementation of the contingency plan.7  Therefore,
approximately 243 LQGs will be required to prepare emergency reports
each year.

(4)	Tank Systems

In section 262.34(a)(1), EPA requires all LQGs that accumulate hazardous
waste in tanks for 90 days or less to comply with subpart J of part 265.
 Of all 14,279 LQGs, EPA estimates that 75 percent use containers to
accumulate hazardous waste, and the remaining 25 percent use tank
systems.  The respondent universe for LQGs operating tank systems is
3,570 LQGs.

Depending on how the tank owner desires to comply with the regulations,
he or she may need to submit one or more of the following:  a
no-free-liquids demonstration (§265.190(a)), existing tank system
assessments (§265.191), an equivalent containment exemption
(§265.193(d)), a variance from secondary containment requirements
(§265.193(g)), or annual leak tests and inspections (§265.193(i)).
Most LQGs seeking to operate under these conditions have already made
the required demonstrations.  In general, only LQGs recently subjected
to hazardous waste regulations will need to perform these
demonstrations.  EPA estimates that approximately three percent or 107
respondents are subject to the leak tests and that one percent or 36
LQGs are subject to the other demonstration and testing requirements in
sections 265.190 through 265.193.

In addition, in certain circumstances (e.g., a new tank, a hazardous
waste release, or a repair to a tank), LQGs must submit one or more of
the following:  new tank system assessments and certifications
(§265.192); an exemption from the 24-hour leak detection requirement
(§265.193(e)(3)(iii)); or release notifications and reports, and major
repair certifications (§265.196(d) and (f)).  As these are ongoing
informational requirements, EPA estimates that:

Three percent or 107 LQGs will need to make new tank system assessments
and certifications.  Of that number, approximately four (4) facilities
will petition for an exemption from the 24-hour leak detection
requirement; and

One percent or 36 LQGs will report a release or a major repair
certification.  In addition, approximately four (4) facilities will need
compile evidence of their inability to comply with the 24-hour waste
removal requirement.

(5)	Drip Pads

Under section 262.34(a)(iii), EPA authorizes LQGs to store hazardous
waste on drip pads for 90 days or less pursuant to part 265, subpart W.
Part 265, subpart W is primarily applicable to those facilities
conducting wood preserving operations.  EPA expects that most existing
wood preserving sites have already conducted the one-time activities
(e.g., contingency planning, integrity assessments) required in part
265.  New entrants to the wood preserving industry, however, would be
subject to these requirements. Based on an analysis of 2005 BRS data,
EPA expects that, each year, 9 new sites will be subject to these
one-time requirements.  EPA further expects that 15 percent of
facilities (1) will prepare a contingency plan for incidental drippage
and will have a condition contributing to an actual release of hazardous
waste and be subject to the recordkeeping, notification, repair and
certification requirements.

(6) 	Containment Buildings

Under section 262.34(a)(iv), EPA authorizes LQGs to store hazardous
waste in containment buildings for 90 days or less pursuant to part 265,
subpart DD.  Part 265, subpart DD is potentially applicable to all large
quantity hazardous waste generators.  EPA estimates that approximately
.1 10 percent of the LQGs (14) use containment buildings.  EPA estimates
that 25 percent of these affected facilities (4) will be subject to the
recordkeeping and notice requirements associated with hazardous waste
releases, and that all of these 14 facilities will require documentation
to support compliance with subpart DD requirements.

(7)	Requests for Extensions of the Accumulation Period

EPA promulgated regulations in section 262.34(b) allowing LQGs to
request extensions (up to 30 days) of the accumulation period limit from
the Regional Administrator.  EPA estimates that only one percent of all
LQGs, approximately 143 LQGs, will request this extension each year.

LARGE QUANTITY GENERATOR AIR EMISSION STANDARDS (Exhibit 4)

(1)	Air Emissions from Process Vents

EPA estimates that 224 generators will be subject to 40 CFR part 265,
subpart AA, in light of the applicability requirements of section
265.1030(b)(1)-(3). Of this estimate, approximately 50 percent will be
subject to reassessing their implementation schedule, documentation with
compliance, and performance plan, among other operating record
requirements.

(2)	Air Emissions from Equipment Leaks

Based on an analysis of the 2005 BRS, as well as discussions with a
sample of large quantity generator facilities, EPA estimates that up to
3,998 (or 28 percent) LQGs are subject to 40 CFR part 265, subpart BB
requirements – depending on the specific paperwork burden category.

(a)	Notification to implement the alternate valve standard specified in
Section 265.1061(a)

Based on previous experience, EPA estimates that 20 percent of
generators subject to subpart BB will decide to implement the
alternative standard specified in section 265.1061(a) each year.
Therefore, 800  facilities will be required to prepare notification to
implement the alternate valve standard specified in section 265.1061(a).

(b)	Notification to discontinue implementing the alternative valve
standard specified in Section 265.1061(a)

Based on previous experience, EPA estimates that 800 generators subject
to subpart BB (i.e., 20% of the total affected universe) have
implemented the alternative standard for valves specified in section
265.1061(a), and one percent of these generators will discontinue using
the alternative standard each year.  Therefore, 8 generators will be
required to prepare notification to discontinue implementing the
alternate valve standard specified in section 265.1061(a).

(c)	Notification to implement the alternative valve standard specified
in Section 265.1062(b)(2), or (b)(3).

Based on previous experience, EPA estimates that ten percent of
generators subject to subpart BB will decide to implement the
alternative standard specified in section 265.1062(b)(2) or (b)(3) each
year.  Therefore, 400 generators will be required to prepare
notification to implement the alternate valve standard specified in
section 265.1062(b)(2) or (b)(3).

(d)	Non-Hazardous Waste Documentation

Based on previous experience, EPA estimates that 10 percent of
generators with equipment subject to subpart BB will use knowledge to
determine that each piece of equipment does or does not contain
hazardous waste with organic concentration that equals or exceeds 10
percent waste.  Therefore, approximately 400 facilities will be required
to prepare non-hazardous waste documentation.

(e)	Unit Operating Record

All generators subject to subpart BB are required to maintain a unit
operating record.  The contents of the operating record will vary
according to site-specific circumstances.  A discussion of the
respondent burden for each data item is presented below:

(i)	Equipment Record

This ICR assumes that generators with equipment subject to subpart BB
have already prepared an equipment record.  EPA estimates that all
generators (3,998) units will reassess, file, and maintain their
equipment record, and 10 percent of this universe (approximately 400
units) will modify it annually.

(ii)	Implementation Schedule

This ICR assumes that generators with equipment subject to subpart BB
have already prepared an implementation schedule.  EPA estimates that
all generators (3,998) will reassess, file, and maintain their
implementation schedule, and 10 percent of this universe approximately
400 units) will modify it annually.

(iii)	Performance Test Plan

This ICR assumes that generators using test data to demonstrate the
organic removal efficiency or total organic compound concentration
achieved by the control device have already prepared a performance test
plan.  EPA estimates that all generators using test data to demonstrate
the organic removal efficiency or total organic compound concentration
achieved by the control device (approximately 3,998 facilities) will
reassess, file, and maintain their performance test plan, and 10 percent
(approximately 400 units) will modify it annually.

(iv)	Documentation of Compliance with Section 264.1060

This ICR assumes that generators subject to subpart BB have already
prepared a documentation of compliance.  EPA estimates that all
generators (3,998 units) will reassess, file, and maintain their section
265.1060 compliance documentation, and 10 percent (approximately 400
units) will modify it annually.

(v)	Leak Inspection Log

EPA estimates that all generators subject to subpart BB (3,998 units)
may have equipment leaks during the period covered by this ICR.
Therefore, 3,998 will be required to prepare and maintain a leak
inspection log.  All generators will be required to reassess and modify
their inspection log.

(vi)	Design, Monitoring, Operation, and Inspection Information

This ICR assumes that generators with equipment subject to subpart BB
have already prepared design, monitoring, and inspection information for
each closed-vent system and control device.  EPA estimates that all
generators with closed-vent systems and control devices (approximately
3,998 units) will reassess, file, and maintain control device operation
documentation, and 10 percent (approximately 400 units) will modify it
annually.

(vii)	Equipment Log

This ICR assumes that generators with equipment subject to subpart BB
have already prepared an equipment log.  EPA estimates that all
generators (3,998 units) will reassess, file, and maintain their
equipment log, and 10 percent (approximately 400 units) will modify it
annually.

(viii) Valve Log for Valves Subject to Section 265.1057(g) and (h)

This ICR assumes that generators with valves subject to section
265.1057(g) and (h) have already prepared a valve log.  EPA estimates
that all generators with valves subject to section 265.1057(g) and (h)
(approximately 280 units) will reassess, file, and maintain their valve
log, and 10 percent (approximately 28 units) will modify it annually.

(ix)	Valve Log for Valves Subject to Section 265.1062

This ICR assumes that generators with valves subject to section
265.1062 have already prepared a valve log. EPA estimates that all
generators with valves subject to section 265.1062 (approximately 56
units) will reassess, file, and maintain their valve log, and 10 percent
(approximately 6 units) will modify it annually.

(x)	Criteria Log

This ICR assumes that generators subject to subpart BB have already
prepared a criteria log documenting information required in sections
265.1052(d)(5)(ii) and 265.1053(e)(2) for pumps in light liquid service
and compressors.  EPA estimates that all generators with equipment
subject to sections 265.1052(d)(5)(ii) and 265.1053(e)(2) (3,998 units)
will reassess, file, and maintain their criteria log, and 10 percent
(approximately 400 units) will modify it annually.

(xi)	Exemption Log

This ICR assumes that generators potentially subject to subpart BB have
already documented information determining applicability of subpart BB
to their unit's equipment.  EPA estimates that all generators (3,998
units) will reassess, file, and maintain this documentation, and 10
percent (approximately 400 units) will modify it annually.

SMALL QUANTITY GENERATOR PRE-TRANSPORT REQUIREMENTS (Exhibit 5)

(1)	Labeling

This ICR assumes that all SQGs will need to label their containers and
tanks in compliance with the section 262.34(a)(2) and (3) and section
262.34(c) requirements.

(2)	Emergency Procedures

EPA promulgated regulations in section 262.34 requiring SQGs to
immediately notify the local fire department and/or National Response
Center, as specified, for emergencies.  Based on recent ERNS data, EPA
estimates that 1.7 percent of all SQGs (1,483) will report such an event
each year.

(3)	Requests for Extensions of the Accumulation Period

EPA promulgated regulations in section 262.34(f) allowing SQGs to
request from the Regional Administrator extensions (up to 30 days) of
the accumulation period limit.  EPA estimates that one tenth of one
percent of all respondents, approximately 87 SQGs, will request an
extension each year.

EXPORT AND IMPORT REQUIREMENTS (Exhibit 6 and 7)

Based on export notifications tracked by EPA’s Office of Enforcement
and Compliance Assurance (OECA), EPA estimates that approximately 621
generators will export hazardous waste each year under 40 CFR 262.53,
and .55 - .57, and will be required to notify EPA of their intention to
export hazardous waste, file an Annual Report with the Administrator
summarizing the types, quantities, frequencies, and ultimate destination
of all hazardous wastes exported during the previous years, and keep
copies of relevant documents for a period of three years.  Because SQGs
are not required to submit waste volume and toxicity reduction
information in their Annual Reports, EPA accordingly differentiated LQG
and SQG Annual Report burden hour estimates in Exhibit 7.  EPA estimates
that 95.6 percent, or 594 of the 621 exporters, will be LQGs and 4.4
percent, or 27 of the 621 exporters, will be SQGs.

6(e) Bottom Line Burden Hours and Costs

Based on the above assumptions, affected universes and associated labor
and operating costs, EPA estimates that 286,866 burden hours and
$11,283,417 will be required annually to support recordkeeping and
reporting requirements for large and small quantity generators. This
equates to 860,598 hours and $33,850,252 for the three year period of
this ICR.

EPA also estimates that the burden to the Federal Government will be
4,701 hours and an annual cost of $143,003.

6(f) Changes in Estimated Burden

EPA estimates a decrease of 166,217 annual hours in the total estimated
burden currently identified in the OMB Inventory of Approved ICR Burden
of 483,083 hours.  This change primarily results from a decrease of
22,882 facilities, or 18.4 percent in the estimated universe of small
and large quantity generators, as well as a change in assumptions
associated with such categories as containment buildings, and
contingency planning resulting in the reduction of additional burden
hours.

6(g) Burden Statement

The average public reporting under this collection of information is
estimated to be 2.78 hours per respondent.  The average public
recordkeeping burden under this collection of information is estimated
to be 0.05 hours.

Burden means the total time, effort, and financial resources expended by
persons to generate, maintain, retain, disclose, or provide information
to or for a federal agency. This includes the time needed to review
instructions; develop, acquire, install, and utilize technology and
systems for the purposes of collecting, validating, and verifying
information, processing and maintaining information, and disclosing and
providing information; adjust the existing ways to comply with any
previously applicable instructions and requirements; train personnel to
be able to respond to a collection of information; search data sources;
complete and review the collection of information; and transmit or
otherwise disclose the information. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless it displays a currently valid OMB control number.
The OMB control numbers for EPA’s regulations are listed in 40 CFR
Part 9 and 48 CFR Chapter 15.

To comment on the Agency’s need for this information, the accuracy of
the provided burden estimates, and any suggested methods for minimizing
respondent burden, including the use of automated collection techniques,
EPA has established a public docket for this ICR under Docket ID No.
EPA-HQ-RCRA-2007-0022, which is available for online viewing at
www.regulations.gov, or in person viewing at the RCRA Docket in the EPA
Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Ave., NW,
Washington, DC.  The EPA/DC Public Reading Room is open from 8 a.m. to
4:30 p.m., Monday through Friday, excluding legal holidays. The
telephone number for the Reading Room is<PHONE_NUMBER>, and the
telephone number for RCRA Docket is<PHONE_NUMBER>.

Use www.regulations.gov to obtain a copy of the draft collection of
information, submit or view public comments, access the index listing of
the contents of the docket, and to access those documents in the public
docket that are available electronically.  Once in the system, select
“search,” then key in the docket ID number identified in this
document.

1 Note, however, that 40 CFR 262.34(g) provides that a generator who
generates 1,000 kilograms or greater of hazardous waste per month who
also generates wastewater treatment sludges from electroplating
operations (F006), as specified, may accumulate F006 waste on site for
more than 90 days, but no more than 180 days, without a permit or
interim status, provided that the generator complies with specified
requirements (i.e., basically the standards applicable to LQGs, as
modified for the extended accumulation period.)

      Although the OECD Decision requires the use of a tracking
document, the OECD only recommends forms for notification and tracking
purposes.  Neither the OECD nor the U.S. requires their use.  Therefore,
OECD member countries are allowed to use any document, provided all of
the required information is contained in the document.  If OECD decides
to require the use of OECD forms, EPA will codify this requirement and
assess the burden.

 NAICS codes can be found in the Federal Register at 61 FR 57006,
November 5, 1996.

      The quantifiable benefit to EPA in implementing the OECD Decision
is the reduced burden cost to EPA to implement the exporter procedures
required under the OECD Decision.  The Agency is relieved of having to
forward the importing country's Acknowledgment of Consent or denial to
the U.S. exporter.

4 Exhibits contain rounding error.

7 Based on an analysis of ERNS data finalized in April 2000., adjusted
to 2004 BRS levels.

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