[Federal Register Volume 79, Number 200 (Thursday, October 16, 2014)]
[Notices]
[Pages 62213-62221]
[FR Doc No: 2014-24545]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 73331; File No. SR-NYSEArca-2014-104]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to Use of
Derivative Instruments by Certain PIMCO Exchange-Traded Funds

October 9, 2014.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on September 29, 2014, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to change the description of the means of
achieving the investment objective applicable to the following funds
relating to each fund's use of derivative instruments: PIMCO Build
America Bond Exchange-Traded Fund, PIMCO Diversified Income Exchange-
Traded Fund, PIMCO Foreign Currency Strategy Exchange-Traded Fund,
PIMCO Global Advantage[supreg] Inflation-Linked Bond Strategy Exchange-
Traded Fund, PIMCO Intermediate Municipal Bond Exchange-Traded Fund,
PIMCO Low Duration Exchange-Traded Fund, PIMCO Real Return Exchange-
Traded Fund, PIMCO Short-Term Municipal Bond Exchange-Traded Fund and
PIMCO Total Return Exchange-Traded Fund (each a ``Fund'' and
collectively, the ``Funds''). In addition, the Exchange proposes
changes to certain representations regarding (1) the limitation on each
Fund's holdings in illiquid assets, and (2) each Fund's holdings of
securities and financial instruments whose principal market is not a
member of the Intermarket Surveillance Group (``ISG'') or is a market
with which the Exchange does not have a comprehensive surveillance
sharing agreement. The Funds have been approved by the Securities and
Exchange Commission (``Commission'') for listing and trading on the
Exchange and are currently listed and traded on the Exchange under NYSE
Arca Equities Rule 8.600, except for PIMCO Real Return Exchange-Traded
Fund, which has not yet commenced operations. The text of the proposed
rule change is available on the Exchange's Web site at www.nyse.com, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.

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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Commission has approved the listing and trading on the Exchange
of shares (``Shares'') of the PIMCO Build America Bond Exchange-Traded
Fund, PIMCO Diversified Income Exchange-Traded Fund, PIMCO Foreign
Currency Strategy Exchange-Traded Fund, PIMCO Global Advantage[supreg]
Inflation-Linked Bond Strategy Exchange-Traded Fund, PIMCO Intermediate
Municipal Bond Exchange-Traded Fund, PIMCO Low Duration Exchange-Traded
Fund, PIMCO Real Return Exchange-Traded Fund, PIMCO Short-Term
Municipal Bond Exchange-Traded Fund, and PIMCO Total Return Exchange-
Traded Fund \4\ under NYSE Arca Equities Rule

8.600, which governs the listing and trading of Managed Fund Shares.
The Shares are offered by PIMCO ETF Trust (the ``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 manager to the Funds is Pacific Investment Management
Company LLC (``PIMCO'' or the ``Adviser'').
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    \4\ See Securities Exchange Act Release Nos. 71125 (December 18,
2013), 78 FR 77743 (December 24, 2013) (SR-NYSEArca-2013-106) (order
approving listing and trading of PIMCO Diversified Income Exchange-
Traded Fund, PIMCO Low Duration Exchange-Traded Fund and PIMCO Real
Return Exchange-Traded Fund); 68871 (February 8, 2013), 78 FR 11238
(February 15, 2013) (SR-NYSEArca-2012-138) (order approving listing
and trading of PIMCO Foreign Currency Strategy Exchange-Traded
Fund); 66670 (March 28, 2012), 77 FR 20087 (April 3, 2013) (SR-
NYSEArca-2012-09) (order approving listing and trading of PIMCO
Global Advantage[supreg] Inflation-Linked Bond Strategy Exchange-
Traded Fund); 62856 (September 7, 2010), 75 FR 55840 (September 14,
2010) (SR-NYSEArca-2010-68) (order approving listing and trading of
PIMCO Build America Bond Exchange-Traded Fund); 60981 (November 10,
2009) 74 FR 59594 (November 18, 2009) (SR-NYSEArca-2009-79) (order
approving listing and trading of PIMCO Intermediate Municipal Bond
Exchange-Traded Fund; PIMCO Short-Term Municipal Bond Exchange-
Traded Fund) (each a ``Prior Order'' and collectively, the ``Prior
Orders''). See also, Securities Exchange Act Release No. 66321
(February 3, 2012), 77 FR 6850 (February 9, 2012) (SR-NYSEArca-2011-
95) (order approving listing and trading of shares of the PIMCO
Total Return Exchange-Traded Fund) (``First PIMCO Total Return
Order''). See also Securities Exchange Act Release No. 70774
(October 29, 2013), 78 FR 66396 (November 5, 2013) (SR-NYSEArca-
2013-106) (notice of filing of proposal relating to PIMCO
Diversified Income Exchange-Traded Fund, PIMCO Low Duration
Exchange-Traded Fund and PIMCO Real Return Exchange-Traded Fund);
Securities Exchange Act Release No. 68476 (December 19, 2012), 77 FR
76121 (December 26, 2012) (SR-NYSEArca-2012-138) (notice of filing
of proposal relating to PIMCO Foreign Currency Strategy Exchange-
Traded Fund); Securities Exchange Act Release No. 66381 (February
10, 2012), 77 FR 9281 (February 16, 2012) (SR-NYSEArca-2012-09)
(notice of filing of proposal relating to PIMCO Global
Advantage[supreg] Inflation-Linked Bond Strategy Exchange-Traded
Fund); Securities Exchange Act Release No. 62585 (July 28, 2010), 75
FR 47045 (August 4, 2010) (SR-NYSEArca-2010-68) (notice of filing of
proposal relating to PIMCO Build America Bond Exchange-Traded Fund);
Securities Exchange Act Release No. 60619, (September 3, 2009), 74
FR 46820 (September 11, 2009) (SR-NYSEArca-2009-79) (notice of
filing of proposal relating to PIMCO Intermediate Municipal Bond
Strategy Exchange-Traded Fund and PIMCO Short-Term Municipal Bond
Strategy Exchange-Traded Fund) (each a ``Prior Notice'' and
collectively, the ``Prior Notices'', and together with the Prior
Orders, the ``Prior Releases'').'' In addition, see Securities
Exchange Act Release No. 65988 (December 16, 2011), 76 FR 79741
(December 22, 2011) (SR-NYSEArca-2011-95) (notice of filing of
proposal relating to PIMCO Total Return Exchange-Traded Fund)
(``First PIMCO Total Return Notice'').
    \5\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act''). On October 24, 2013 the Trust filed with the
Commission the most recent post-effective amendment to its
registration statement under the Securities Act of 1933 (15 U.S.C.
77a) (``1933 Act'') and under the 1940 Act relating to the Funds
(File Nos. 333-155395 and 811-22250), which took effect on October
31, 2013 (the ``Registration Statement''). The description of the
operation of the Trust and the Funds 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. 28993 (November 10,
2009) (File No. 812-13571) (``Exemptive Order'').
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    In this proposed rule change, the Exchange proposes changing the
description of each Fund's use of derivative instruments, as described
below. The portions of this proposed rule change that relate to the
Funds' proposed use of derivative instruments are identical to the
portion of the proposed rule change approved by the Commission with
respect to the continued listing and trading of the PIMCO Total Return
Exchange-Traded Fund, that permitted it to use derivative
instruments.\6\ Accordingly, this proposed rule change seeks to permit
the Funds (other than the PIMCO Total Return Exchange-Traded Fund) to
use derivative instruments on the same basis, and subject to the same
conditions, as provided in the Second PIMCO Total Return Release,
provided, however, that the Exchange also proposes to explicitly
include options on swap agreements as derivative instruments in which
the PIMCO Total Return Exchange-Traded Fund and all other Funds may
invest, as described further below. In addition, the Exchange proposes
changes to certain representations in the Prior Releases and the First
PIMCO Total Return Release regarding (1) the limitation on each Fund's
holdings in illiquid assets, and (2) each Fund's holdings of securities
and financial instruments whose principal market is not a member of the
ISG or is a market with which the Exchange does not have a
comprehensive surveillance sharing agreement, as described further
below.
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    \6\ See Securities Exchange Act Release Nos. 72666 (July, 24,
2014), 79 FR 44224 (July 30, 2014) (SR-NYSEArca-2013-122) (order
approving use of derivative instruments by the PIMCO Total Return
Exchange-Traded Fund) (``Second PIMCO Total Return Order''); 70905
(November 20, 2013), 78 FR 70610 (November 26, 2013) (SR-NYSEArca-
2013-122) (notice of proposal relating to use of derivatives by
PIMCO Total Return Exchange-Traded Fund) (``Second PIMCO Total
Return Notice'' and, together with the Second PIMCO Total Return
Order, the ``Second PIMCO Total Return Release'').
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The Funds' Use of Derivatives
    On December 6, 2012, the staff of the Commission's Division of
Investment Management (``Division'') issued a no-action letter (``No-
Action Letter'') relating to the use of derivatives by actively-managed
exchange traded funds (``ETFs'').\7\ The No-Action Letter noted that,
in March of 2010, the Commission announced in a press release that the
staff was conducting a review to evaluate the use of derivatives by
mutual funds, ETFs, and other investment companies and that, pending
completion of this review, the staff would defer consideration of
exemptive requests under the 1940 Act relating to, among others,
actively-managed ETFs that would make significant investments in
derivatives.
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    \7\ See No-Action Letter dated December 6, 2012 from Elizabeth
G. Osterman, Associate Director, Office of Exemptive Applications,
Division of Investment Management.
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    The No-Action Letter stated that Division staff will no longer
defer consideration of exemptive requests under the 1940 Act relating
to actively-managed ETFs that make use of derivatives provided that
they include representations to address some of the concerns expressed
in the Commission's March 2010 press release. These representations
are: (i) That the ETF's board periodically will review and approve the
ETF's use of derivatives and how the ETF's investment adviser assesses
and manages risk with respect to the ETF's use of derivatives; and (ii)
that the ETF's disclosure of its use of derivatives in its offering
documents and periodic reports is consistent with relevant Commission
and staff guidance. The No-Action Letter stated that the Division would
not recommend enforcement action to the Commission under sections
2(a)(32), 5(a)(1), 17(a), 22(d), and 22(e) of the 1940 Act, or rule
22c-1 under the 1940 Act if actively-managed ETFs operating in reliance
on specified orders (which include the Trust's Exemptive Order \8\)
invest in options contracts, futures contracts or swap agreements
provided that they comply with the representations stated in the No-
Action Letter, as noted above.
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    \8\ See note 5, supra.
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    In the Prior Releases for the PIMCO Diversified Income Exchange-
Traded Fund, PIMCO Foreign Currency Strategy Exchange-Traded Fund,
PIMCO Global Advantage[supreg] Inflation-Linked Bond Exchange-Traded
Fund, PIMCO Low Duration Exchange-Traded Fund, and PIMCO Real Return
Exchange-Traded Fund) [sic], the Exchange stated that such Funds would
not invest in options contracts, futures contracts or swap agreements.
In the Prior Release for the PIMCO Build America Bond Exchange-Traded
Fund, the Exchange stated such Fund is restricted from investing in
derivative instruments such as options contracts, futures contracts,
and swap agreements. The Prior Releases for the PIMCO Intermediate
Municipal Bond Exchange-Traded Fund, and PIMCO Short-Term Municipal
Bond Exchange-Traded Fund made no statement with respect to such Funds'
use of derivatives. Going forward, in view of the No-Action Letter, the
Exchange is proposing to permit the Funds to use derivative
instruments, as described below.\9\
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    \9\ The Adviser represents that each Fund, in connection with
its use of derivative instruments, will comply with the
representations stated in the No-Action Letter, as noted above,
namely: (i) That the Trust's Board of Trustees (``Board'')
periodically will review and approve each Fund's use of derivatives
and how the Adviser assesses and manages risk with respect to a
Fund's use of derivatives; and (ii) that each Fund's disclosure of
its use of derivatives in its offering documents and periodic
reports is consistent with relevant Commission and staff guidance.
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    As summarized in the following table, the Prior Releases stated
that the applicable Funds will invest under normal circumstances at
least a certain percentage of their assets in certain instruments (as
applicable to each such Fund, the ``Primary Investment Strategy'').\10\
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    \10\ As used in the Prior Releases (except for the Prior Notices
and Prior Orders for the PIMCO Intermediate Municipal Bond Strategy
Exchange-Traded Fund and the PIMCO Build America Bond Exchange-
Traded Fund), the term ``under normal circumstances'' includes, but
is not limited to, the absence of extreme volatility or trading
halts in the fixed income 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.

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                    Fund                                          Primary investment strategy
----------------------------------------------------------------------------------------------------------------
PIMCO Build America Bond Exchange-Traded      The Fund will invest under normal circumstances at least 80% of
 Fund.                                         its assets in taxable municipal debt securities publicly issued
                                               under the Build America Bond program.
PIMCO Diversified Income Exchange-Traded      The Fund will invest under normal circumstances at least 65% of
 Fund.                                         its total assets in a diversified portfolio of ``Fixed Income
                                               Instruments'' (as defined below) of varying maturities and
                                               forward contracts on such Fixed Income Instruments.
PIMCO Foreign Currency Strategy Exchange-     The Fund will invest under normal circumstances at least 80% of
 Traded Fund.                                  its assets in currencies of, or Fixed Income Instruments
                                               denominated in the currencies of, foreign (non-U.S.) countries,
                                               including, but not limited to, a combination of short-term Fixed
                                               Income Instruments, money market securities, and currency
                                               forwards backed by high quality, low duration securities.
PIMCO Global Advantage[supreg] Inflation-     The Fund will invest under normal circumstances at least 80% of
 Linked Bond Exchange-Traded Fund.             its assets in a portfolio of inflation-linked bonds that is
                                               economically tied to at least three developed and/or emerging
                                               market countries (one of which may be the United States).
PIMCO Intermediate Municipal Bond Exchange-   The Fund will invest under normal circumstances at least 80% of
 Traded Fund.                                  its assets in a diversified portfolio of debt securities whose
                                               interest is, in the opinion of bond counsel for the issuer at the
                                               time of issuance, exempt from federal income tax (``Municipal
                                               Bonds'').
PIMCO Low Duration Exchange-Traded Fund.....  The Fund will invest under normal circumstances at least 65% of
                                               its total assets in a diversified portfolio of Fixed Income
                                               Instruments of varying maturities and forward contracts on such
                                               Fixed Income Instruments.
PIMCO Real Return Exchange-Traded Fund......  The Fund will invest under normal circumstances at least 80% of
                                               its net assets in inflation-indexed bonds of varying maturities
                                               issued by U.S. and non-U.S. governments, their agencies or
                                               instrumentalities, and corporations, and forward contracts on
                                               such Fixed Income Instruments.
PIMCO Short-Term Municipal Bond Exchange-     The Fund will invest under normal circumstances at least 80% of
 Traded Fund.                                  its assets in a diversified portfolio of Municipal Bonds.
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    ``Fixed Income Instruments'' include bonds, debt securities and
other similar instruments issued by various U.S. and non-U.S. public-
or private-sector entities.\11\ The Exchange proposes to revise each
Fund's Primary Investment Strategy as set forth in the applicable Prior
Release to provide that a Fund's Primary Investment Strategy may be
represented by derivatives based on the instruments that are the
subject of the Primary Investment Strategy.
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    \11\ The term ``Fixed Income Instruments'' is defined with
respect to each Fund as set forth in the Prior Releases and the
Second PIMCO Total Return Release (see notes 4 and 6, supra).
Examples include: debt securities issued or guaranteed by the U.S.
Government, its agencies or government-sponsored enterprises (``U.S.
Government Securities''); corporate debt securities of U.S. and non-
U.S. issuers, including convertible securities and corporate
commercial paper; mortgage-backed and other asset-backed securities;
inflation-indexed bonds issued both by governments and corporations;
structured notes, including hybrid or ``indexed'' securities and
event-linked bonds; bank capital and trust preferred securities;
loan participations and assignments; delayed funding loans and
revolving credit facilities; bank certificates of deposit, fixed
time deposits and bankers' acceptances; repurchase agreements on
Fixed Income Instruments and reverse repurchase agreements on Fixed
Income Instruments; debt securities issued by states or local
governments and their agencies, authorities and other government-
sponsored enterprises; obligations of non-U.S. governments or their
subdivisions, agencies and government-sponsored enterprises; and
obligations of international agencies or supranational entities.
Securities issued by U.S. Government agencies or government-
sponsored enterprises may not be guaranteed by the U.S. Treasury.
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    With respect to each Fund, derivative instruments will be forwards;
\12\ exchange-traded and over-the-counter (``OTC'') options contracts;
exchange-traded futures contracts; exchange-traded and OTC swap
agreements; exchange-traded options on futures contracts; and OTC
options on swap agreements.\13\ Generally, derivatives are financial
contracts whose value [sic] depends upon, or is derived from, the value
of an underlying asset, reference rate or index, and may relate to
stocks, bonds, interest rates, currencies or currency exchange rates,
commodities, and related indexes. Each Fund may, but will not be
required to, use derivative instruments for risk management purposes or
as part of its investment strategies.\14\
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    \12\ Forwards are contracts to purchase or sell securities for a
fixed price at a future date beyond normal settlement time (forward
commitments).
    \13\ In the future, in the event that there are exchange-traded
options on swaps, a Fund may invest in these instruments.
    \14\ Each Fund will seek, where possible, to use counterparties
whose financial status is such that the risk of default is reduced;
however, the risk of losses resulting from default is still
possible. PIMCO's Counterparty Risk Committee evaluates the
creditworthiness of counterparties on an ongoing basis. In addition
to information provided by credit agencies, PIMCO credit analysts
evaluate each approved counterparty using various methods of
analysis, including company visits, earnings updates, the broker-
dealer's reputation, PIMCO's past experience with the broker-dealer,
market levels for the counterparty's debt and equity, the
counterparty's liquidity and its share of market participation.
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    The Exchange notes that the Second PIMCO Total Return Release did
not explicitly reference options on swap agreements, which are a form
of OTC option contracts, as derivative instruments in which such Fund
may invest. The Exchange, therefore, also proposes to explicitly
include options on swap agreements as derivative instruments in which
the PIMCO Total Return Exchange-Traded Fund (as well as all other
Funds) may invest.
    Investments in derivative instruments will be made in accordance
with the 1940 Act and consistent with the applicable Fund's investment
objective and policies. As described further below, each Fund will
typically use derivative instruments as a substitute for taking a
position in the underlying asset and/or as part of a strategy designed
to reduce exposure to other risks, such as interest rate or currency
risk. Each Fund may also use derivative instruments to enhance returns.
To limit the potential risk associated with such transactions, each
Fund will segregate or ``earmark'' assets determined to be liquid by
PIMCO in accordance with procedures established by the Trust's Board of
Trustees and in accordance with the 1940 Act (or, as permitted by
applicable regulation, enter into certain offsetting positions) to
cover its obligations under derivative instruments. These procedures
have been adopted consistent with Section 18 of the 1940 Act and
related Commission guidance. In addition, each Fund will include
appropriate risk disclosure in its offering documents, including
leveraging risk. Leveraging risk is the risk that certain transactions
of a Fund,

including a Fund's use of derivatives, may give rise to leverage,
causing a Fund to be more volatile than if it had not been
leveraged.\15\ Because the markets for certain securities, or the
securities themselves, may be unavailable or cost prohibitive as
compared to derivative instruments, suitable derivative transactions
may be an efficient alternative for a Fund to obtain the desired asset
exposure.
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    \15\ To mitigate leveraging risk, the Adviser will segregate or
``earmark'' liquid assets or otherwise cover the transactions that
may give rise to such risk.
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    The Adviser believes that derivatives can be an economically
attractive substitute for an underlying physical security that a Fund
would otherwise purchase. For example, a Fund could purchase Treasury
futures contracts instead of physical Treasuries or could sell credit
default protection on a corporate bond instead of buying a physical
bond. Economic benefits include potentially lower transaction costs or
attractive relative valuation of a derivative versus a physical bond
(e.g., differences in yields).
    The Adviser further believes that derivatives can be used as a more
liquid means of adjusting portfolio duration as well as targeting
specific areas of yield curve exposure, with potentially lower
transaction costs than the underlying securities (e.g., interest rate
swaps may have lower transaction costs than physical bonds). Similarly,
money market futures can be used to gain exposure to short-term
interest rates in order to express views on anticipated changes in
central bank policy rates. In addition, derivatives can be used to
protect client assets through selectively hedging downside (or ``tail
risks'') in a Fund.
    A Fund also can use derivatives to increase or decrease credit
exposure. Index credit default swaps (CDX) can be used to gain exposure
to a basket of credit risk by ``selling protection'' against default or
other credit events, or to hedge broad market credit risk by ``buying
protection.'' Single name credit default swaps (CDS) can be used to
allow a Fund to increase or decrease exposure to specific issuers,
saving investor capital through lower trading costs. A Fund can use
total return swap contracts to obtain the total return of a reference
asset or index in exchange for paying a financing cost. A total return
swap may be much more efficient than buying underlying securities of an
index, potentially lowering transaction costs.
    The Adviser believes that the use of derivatives will allow a Fund
to selectively add diversifying sources of return from selling options.
Option purchases and sales can also be used to hedge specific exposures
in the portfolio, and can provide access to return streams available to
long-term investors such as the persistent difference between implied
and realized volatility. Option strategies can generate income or
improve execution prices (i.e., covered calls).
    In view of the Exchange's proposal to permit the Funds (other than
the PIMCO Total Return Exchange-Traded Fund) to use derivative
instruments, as described above, each Fund's investments in derivative
instruments may be used to enhance leverage. However, the Funds'
investments will not be used to seek performance that is the multiple
or inverse multiple (e.g., 2Xs and 3Xs) of a Fund's broad-based
securities market index.\16\
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    \16\ Each Fund's broad-based securities market index is
identified in a Fund's Registration Statement following a Fund's
first full calendar year of performance.
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Other Investments
    In addition to a Fund's use of derivatives in connection with its
Primary Investment Strategy as described above, under the proposal each
Fund may seek to invest in derivative instruments apart from a Fund's
Primary Investment Strategy, consistent with a Fund's investment
restrictions relating to exposure to other asset classes not related to
a Fund's Primary Investment Strategy.
    The Prior Releases relating to the PIMCO Foreign Currency Strategy
Exchange-Traded Fund and PIMCO Global Advantage[supreg] Inflation-
Linked Bond Exchange-Traded Fund also stated that those Funds may
invest in debt securities and instruments that are economically tied to
foreign (non-U.S.) countries. The Prior Releases for those Funds stated
further that PIMCO generally considers an instrument to be economically
tied to a non-U.S. country if the issuer is a foreign government (or
any political subdivision, agency, authority or instrumentality of such
government), or if the issuer is organized under the laws of a non-U.S.
country. In the case of applicable money market instruments, such
instruments will be considered economically tied to a non-U.S. country
if either the issuer or the guarantor of such money market instrument
is organized under the laws of a non-U.S. country.
    The Exchange proposes to add to this representation that, with
respect to derivative instruments, as proposed to be used, PIMCO
generally will consider such instruments to be economically tied to
non-U.S. countries if the underlying assets are foreign currencies (or
baskets or indexes of such currencies), or instruments or securities
that are issued by foreign governments (or any political subdivision,
agency, authority or instrumentality of such governments) or issuers
organized under the laws of a non-U.S. country (or if the underlying
assets are money market instruments, as applicable, if either the
issuer or the guarantor of such money market instruments is organized
under the laws of a non-U.S. country).
Derivatives Valuation Methodology for Purposes of Determining Net Asset
Value
    According to the Registration Statement, the net asset value
(``NAV'') of each Fund's Shares is determined by dividing the total
value of a Fund's portfolio investments and other assets, less any
liabilities, by the total number of Shares outstanding. Each Fund's
Shares are valued as of the close of regular trading of the New York
Stock Exchange (``NYSE'') (normally 4:00 p.m., Eastern time (``E.T.''))
(the ``NYSE Close'') on each day NYSE Arca is open (``Business Day'').
Information that becomes known to the applicable Fund or its agents
after the NAV has been calculated on a particular day will not
generally be used to retroactively adjust the price of a portfolio
asset or the NAV determined earlier that day. Each Fund reserves the
right to change the time its NAV is calculated if a Fund closes
earlier, or as permitted by the Commission. For purposes of calculating
NAV, portfolio securities and other assets for which market quotes are
readily available are valued at market value. Market value is generally
determined on the basis of last reported sales prices, or if no sales
are reported, based on quotes obtained from a quotation reporting
system, established market makers, or pricing services. Non-exchange-
traded derivatives will normally be valued on the basis of quotes
obtained from brokers and dealers or third party pricing services using
data reflecting the earlier closing of the principal markets for those
assets. Prices obtained from independent pricing services use
information provided by market makers or estimates of market values
obtained from yield data relating to investments or securities with
similar characteristics. Exchange-traded options, futures and options
on futures will generally be valued at the settlement price determined
by the applicable exchange.
    Derivatives for which market quotes are readily available will be
valued at

market value. Local closing prices will be used for all instrument
valuation purposes. For a Fund's 4:00 p.m. E.T. futures holdings,
estimated prices from Reuters will be used if any cumulative futures
margin impact is greater than $0.005 to the NAV due to futures movement
after the fixed income futures market closes (3:00 p.m. E.T.) and up to
the NYSE close (generally 4:00 p.m. E.T.). Swaps traded on exchanges
such as the Chicago Mercantile Exchange (``CME'') or the
Intercontinental Exchange (``ICE-US'') will use the applicable exchange
closing price where available.
Derivatives Valuation Methodology for Purposes of Determining Intra-Day
Indicative Value
    On each Business Day, before commencement of trading in a Fund's
Shares on NYSE Arca, each Fund discloses on its Web site the identities
and quantities of the portfolio instruments and other assets held by a
Fund that will form the basis for a Fund's calculation of NAV at the
end of the Business Day.
    In order to provide additional information regarding the intra-day
value of Shares of a Fund, the NYSE Arca or a market data vendor
disseminates every 15 seconds through the facilities of the
Consolidated Tape Association or other widely disseminated means an
updated Intra-day Indicative Value (``IIV'') for a Fund as calculated
by an information provider or market data vendor.
    A third party market data provider is currently calculating the IIV
for the Funds that have commenced operations. For the purposes of
determining the IIV, the third party market data provider's valuation
of derivatives is expected to be similar to their valuation of all
securities. The third party market data provider may use market quotes
if available or may fair value securities against proxies (such as swap
or yield curves).
    Price information for the debt securities and other financial
instruments held by each of the Funds, including the intra-day, closing
settlement price for the Fixed Income Instruments and derivatives
thereon, and other financial instruments held by each of the Funds,
will be available through major market data vendors.
    With respect to specific derivatives:
     Foreign currency derivatives may be valued intraday using
market quotes, or another proxy as determined to be appropriate by the
third party market data provider.
     Futures may be valued intraday using the relevant futures
exchange data, or another proxy as determined to be appropriate by the
third party market data provider.
     Interest rate swaps may be mapped to a swap curve and
valued intraday based on changes of the swap curve, or another proxy as
determined to be appropriate by the third party market data provider.
     CDX/CDS may be valued using intraday data from market
vendors, or based on underlying asset price, or another proxy as
determined to be appropriate by the third party market data provider.
     Total return swaps may be valued intraday using the
underlying asset price, or another proxy as determined to be
appropriate by the third party market data provider.
     Exchange listed options may be valued intraday using the
relevant exchange data, or another proxy as determined to be
appropriate by the third party market data provider.
     OTC options, including options on swaps, may be valued
intraday through option valuation models (e.g., Black-Scholes) or using
exchange traded options as a proxy, or another proxy as determined to
be appropriate by the third party market data provider.
     A third party market data provider's valuation of forwards
will be similar to its valuation of the underlying securities, or
another proxy as determined to be appropriate by the third party market
data provider. The third party market data provider will generally use
market quotes if available. Where market quotes are not available, they
may fair value securities against proxies (such as swap or yield
curves). Each Fund's disclosure of forward positions will include
information that market participants can use to value these positions
intraday.
Disclosed Portfolio
    Each Fund's disclosure of derivative positions in the Disclosed
Portfolio will include information that market participants can use to
value these positions intraday. On a daily basis, each Fund will
disclose on each Fund's Web site the following information regarding
each portfolio holding, as applicable to the type of holding: Ticker
symbol, CUSIP number or other identifier, if any; a description of the
holding (including the type of holding, such as the type of swap); the
identity of the security, commodity, index or other asset or instrument
underlying the holding, if any; for options, the option strike price;
quantity held (as measured by, for example, par value, notional value
or number of shares, contracts or units); maturity date, if any; coupon
rate, if any; effective date, if any; market value of the holding; and
the percentage weighting of the holding in each Fund's portfolio.
Impact on Arbitrage Mechanism
    The Adviser believes there will be minimal, if any, impact to the
arbitrage mechanism as a result of the use of derivatives. Market
makers and participants should be able to value derivatives as long as
the positions are disclosed with relevant information. The Adviser
believes that the price at which Shares trade will continue to be
disciplined by arbitrage opportunities created by the ability to
purchase or redeem creation units of Shares at their NAV, which should
ensure that Shares will not trade at a material discount or premium in
relation to their NAV.
    The Adviser does not believe there will be any significant impacts
to the settlement or operational aspects of a Fund's arbitrage
mechanism due to the use of derivatives. Because derivatives generally
are not eligible for in-kind transfer, they will typically be
substituted with a ``cash in lieu'' amount when a Fund processes
purchases or redemptions of creation units in-kind.
Illiquid Securities
    The Exchange proposes to amend the representations in certain of
the Prior Releases \17\ relating to holdings of the Funds in illiquid
assets to conform such representations to those made in the Prior
Releases for the PIMCO Diversified Income Exchange-Traded Fund, PIMCO
Low Duration Exchange-Traded Fund, PIMCO Real Return Exchange-Traded
Fund, and the Second PIMCO Total Return Release, as described below.
---------------------------------------------------------------------------

    \17\ See note 4, supra.
---------------------------------------------------------------------------

    In the respective Prior Releases for the PIMCO Build America Bond
Exchange-Traded [sic], PIMCO Intermediate Municipal Bond Exchange-
Traded Fund and PIMCO Short-Term Municipal Bond Exchange-Traded Fund
and the First PIMCO Total Return Prior Release, the Exchange stated
that each such Fund may invest up to 15% of its net assets in illiquid
securities. In the Prior Release for the PIMCO Foreign Currency
Strategy Exchange-Traded Fund, the Exchange stated that the Fund may
hold up to an aggregate amount of 15% of its net assets in illiquid
securities (calculated at the time of investment), and that certain
financial instruments, including, but not limited to, Rule 144A
securities, loan participations and assignments, delayed funding loans,
revolving credit facilities, and fixed- and floating-rate loans will be
included

in the 15% limitation on illiquid securities. In the Prior Release for
the PIMCO Global Advantage[supreg] Inflation-Linked Bond Strategy
Exchange-Traded Fund, the Exchange stated that the Fund may hold in the
aggregate up to 15% of its net assets in: (1) Illiquid securities,
which include delayed funding loans, revolving credit facilities,
fixed- and floating-rate loans and loan participations and assignments,
and (2) Rule 144A securities.
    The Exchange proposes that each of such representations in such
Prior Releases be replaced and superseded by the representation in the
respective Prior Releases for the PIMCO Diversified Income Exchange-
Traded Fund, PIMCO Low Duration Exchange-Traded Fund, PIMCO Real Return
Exchange-Traded Fund and the Second PIMCO Total Return Release relating
to investments in illiquid assets,\18\ namely, that each Fund may hold
up to an aggregate amount of 15% of its net assets in illiquid assets
(calculated at the time of investment), including Rule 144A securities
deemed illiquid by the Adviser,\19\ consistent with Commission
guidance.\20\ Such illiquid assets, therefore, could include, in
addition to Rule 144A securities, financial instruments such as delayed
funding loans, revolving credit facilities, fixed- and floating-rate
loans and loan participations and assignments deemed illiquid by the
Adviser, consistent with Commission guidance.
---------------------------------------------------------------------------

    \18\ See notes 4 and 6, supra.
    \19\ In reaching liquidity decisions with respect to Rule 144A
securities, the Adviser may consider the following factors: the
frequency of trades and quotes for the security; the number of
dealers willing to purchase or sell the security and the number of
other potential purchasers; dealer undertakings to make a market in
the security; and the nature of the security and the nature of the
marketplace trades (e.g., the time needed to dispose of the
security, the method of soliciting offers, and the mechanics of
transfer).
    \20\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), footnote 34. See also, Investment Company
Act Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31,
1970) (Statement Regarding ``Restricted Securities''); Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). 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 1933 Act).
---------------------------------------------------------------------------

    The Exchange notes that each Fund will monitor its portfolio
liquidity on an ongoing basis to determine whether, in light of current
circumstances, an adequate level of liquidity is being maintained, and
will consider taking appropriate steps in order to maintain adequate
liquidity if, through a change in values, net assets, or other
circumstances, more than 15% of a Fund's net assets are held in
illiquid assets. Illiquid assets include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.\21\
---------------------------------------------------------------------------

    \21\ See note 20, supra.
---------------------------------------------------------------------------

Fund Holdings in Non-U.S. Equity Securities and Other Financial
Instruments
    The Exchange proposes to amend the representations made in the
Prior Releases regarding holdings by the Funds in non-U.S. equity
securities, as described below. In the Prior Release for the PIMCO
Diversified Income Exchange-Traded Fund, PIMCO Low Duration Exchange-
Traded Fund and PIMCO Real Return Exchange-Traded Fund, the Exchange
stated that such Funds will invest only in U.S. and non-U.S. equity
securities that trade in markets that are members of the ISG or are
parties to a comprehensive surveillance sharing agreement with the
Exchange. In the Prior Releases for the PIMCO Intermediate Municipal
Bond Strategy Exchange-Traded Fund, PIMCO Short-Term Municipal Bond
Strategy Exchange-Traded Fund and PIMCO Build America Bond Exchange-
Traded Fund, the Exchange stated that such Funds will not invest in
non-U.S. equity securities. In the Prior Release for the PIMCO Foreign
Currency Strategy Exchange-Traded Fund and First PIMCO Total Return
Notice,\22\ the Exchange stated that such Funds will not invest in any
non-U.S. registered equity securities, except if such securities are
traded on exchanges that are members of the ISG. In the Prior Release
for the PIMCO Global Advantage[supreg] Inflation-Linked Bond Strategy
Exchange-Traded Fund, the Exchange stated that, with respect to its
equity securities investments, the Fund will invest only in U.S.
registered equity securities and non-U.S.-registered equity securities
that trade in markets that are members of the ISG or are parties to a
comprehensive surveillance sharing agreement with the Exchange.\23\ The
Exchange proposes to amend such statements in the Prior Releases to
provide that not more than 10% of the net assets of a Fund in the
aggregate invested in equity securities (excluding non-exchange-traded
investment company securities) shall consist of equity securities,
including stocks into which a convertible security is converted, whose
principal market is not a member of the ISG or is a market with which
the Exchange does not have a comprehensive surveillance sharing
agreement. Furthermore, the Exchange proposes that not more than 10% of
the net assets of a Fund in the aggregate invested in futures contracts
or exchange-traded options contracts shall consist of futures contracts
or exchange-traded options contracts whose principal market is not a
member of ISG or is a market with which the Exchange does not have a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    \22\ See note 4, supra.
    \23\ See note 26, infra.
---------------------------------------------------------------------------

    The Exchange notes that the Commission has previously approved
similar percentage limitations for other funds listed on the Exchange
under NYSE Arca Equities Rule 8.600.\24\ Such a representation assures
that most applicable exchange-traded assets of a Fund will be assets
whose principal market is an ISG member or a market with which the
Exchange has a comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    \24\ See Securities Exchange Act Release Nos. 69915 (July 2,
2013), 78 FR 41145 (July 9, 2013) (SR-NYSEArca-2013-56) (order
approving listing and trading of shares of the PowerShares China A-
Share Portfolio under NYSE Arca Equities Rule 8.600); 72665 (July
24, 2014), 79 FR 44236 (July 30, 2014) (SR-NYSEArca-2014-59) (order
approving listing and trading of shares of the AdvisorShares Athena
High Dividend ETF under NYSE Arca Equities Rule 8.600; 72882 (August
20, 2014) (SR-NYSEArca-2014-58) (order approving listing and trading
of shares of PIMCO Short-Term Exchange-Traded Fund and PIMCO
Municipal Bond Exchange-Traded Fund under NYSE Arca Equities Rule
8.600); 72853 (August 15, 2014) (SR-NYSEArca-2014-57) (order
approving listing and trading of shares of the PIMCO Foreign Bond
Exchange-Traded Fund (U.S. Dollar-Hedged), PIMCO Foreign Bond
Exchange-Traded Fund (Unhedged), PIMCO Global Advantage Bond
Exchange-Traded Fund, and PIMCO International Advantage Bond
Exchange-Traded Fund under NYSE Arca Equities Rule 8.600).
---------------------------------------------------------------------------

    The changes described herein will be effective upon (i) the
effectiveness of an amendment to the Trust's Registration Statement
disclosing the Funds' intended use of derivative instruments and (ii)
when this proposed rule change has become operative. The Adviser
represents that the Adviser has managed and will continue to manage
those Funds that have commenced operations in the manner described in
the applicable Prior Release, and will not implement the changes
described herein until this proposed rule change is operative.

    The Adviser represents that there is no change to each Fund's
investment objective. Each Fund will continue to comply with all
initial and continued listing requirements under NYSE Arca Equities
Rule 8.600, as applicable.
    Except for the changes noted in this filing, all other facts
presented and representations made in the Prior Releases remain
unchanged.
    All terms referenced but not defined herein are defined in the
Prior Releases.
Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by the Financial
Industry Regulatory Authority (``FINRA'') on behalf of the Exchange,
which are designed to detect violations of Exchange rules and
applicable federal securities laws.\25\ 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 federal securities laws applicable to trading on
the Exchange.
---------------------------------------------------------------------------

    \25\ FINRA surveils trading on the Exchange pursuant to a
regulatory services agreement. The Exchange is responsible for
FINRA's performance under this regulatory services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. 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.
    FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares, exchange traded equities, options,
futures, options on futures and other exchange-traded assets with other
markets or other entities that are members of the Intermarket
Surveillance Group (``ISG''), and FINRA may obtain trading information
regarding trading in the Shares, exchange traded equities, options,
futures, options on futures and other exchange-traded assets from such
markets or entities. In addition, the Exchange may obtain information
regarding trading in the Shares, exchange traded equities, options,
futures, options on futures and other exchange-traded assets from
markets or other entities that are members of ISG or with which the
Exchange has in place a comprehensive surveillance sharing
agreement.\26\ In addition, FINRA, on behalf of the Exchange, is able
to access, as needed, trade information for certain fixed income
securities held by a Fund reported to FINRA's Trade Reporting and
Compliance Engine (``TRACE''). FINRA also can access data obtained from
the Municipal Securities Rulemaking Board relating to municipal bond
trading activity for surveillance purposes in connection with trading
in the Shares.
---------------------------------------------------------------------------

    \26\ 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 a 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.
2. Statutory Basis
    The basis under the Act \27\ for this proposed rule change is the
requirement under Section 6(b)(5) \28\ 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.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78a.
    \28\ 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 continue to be listed and traded on the Exchange pursuant
to the initial and continued listing criteria in NYSE Arca Equities
Rule 8.600. Each Fund will continue to comply with all initial and
continued listing requirements under NYSE Arca Equities Rule 8.600, as
applicable. 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
federal securities laws applicable to trading on the Exchange. FINRA,
on behalf of the Exchange, will communicate as needed regarding trading
in the Shares, exchange traded equities, options, futures, options on
futures and other exchange-traded assets with other markets or other
entities that are members of the ISG, and FINRA may obtain trading
information regarding trading in the Shares, exchange traded equities,
options, futures, options on futures and other exchange-traded assets
from such markets or entities. In addition, the Exchange may obtain
information regarding trading in the Shares, exchange traded equities,
options, futures, options on futures and other exchange-traded assets
from markets or other entities that are members of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement. In addition, FINRA, on behalf of the Exchange, is able to
access, as needed, trade information for certain fixed income
securities held by a Fund reported to FINRA's TRACE. FINRA also can
access data obtained from the Municipal Securities Rulemaking Board
relating to municipal bond trading activity for surveillance purposes
in connection with trading in the Shares.
    Each Fund's investments will be consistent with its investment
objective, which remains unchanged. The proposed amendments permitting
the Funds to invest in derivative instruments, such as options
contracts, futures contracts and swap agreements, promotes just and
equitable principals of trade and furthers the protection of investors
and the public interest. Each Fund's investments will not be used to
seek performance that is the multiple or inverse multiple (e.g., 2Xs
and 3Xs) of a Fund's broad-based securities market index.\29\
---------------------------------------------------------------------------

    \29\ See note 16, supra.
---------------------------------------------------------------------------

    Permitting the use of derivatives will provide additional
flexibility to the Adviser in seeking to achieve each Fund's investment
objective. For example, because the markets for certain securities, or
the securities themselves, may be unavailable or cost prohibitive as
compared to derivative instruments, suitable derivative transactions
may be an efficient alternative for a Fund to obtain the desired asset
exposure. Additionally, derivatives allow parties to replicate desired
returns while eliminating the costs associated with acquiring or
holding the underlying asset. As such, the increased flexibility
afforded by the ability to use derivatives may enhance investor returns
by facilitating a Fund's ability to more economically seek its
investment objectively, thereby reducing the costs--actual, opportunity
or otherwise--incurred by a Fund.
    With respect to the representation above that the Exchange proposes
to explicitly include options on swap agreements as derivative
instruments in which the PIMCO Total Return Exchange-Traded Fund and
all other Funds may invest, the Exchange believes such inclusion will
not adversely impact investors and serves to protect investors and the
public interest for the following reasons. The proposed revised
representations are similar to

those previously approved by the Commission for other exchange-traded
funds listed and traded on the Exchange pursuant to NYSE Arca Equities
Rule 8.600.\30\ In the case of OTC swaps and OTC options, the Adviser
represents that it has implemented policies and procedures which govern
the selection of counterparties to reduce the risks associated with
swaps, including, but not limited to, counterparty risk and
concentration risk. In addition, as described further below, a Fund's
investments in derivative instruments will be made in accordance with
the 1940 Act and consistent with a Fund's investment objectives and
policies. To limit the potential risk associated with transactions in
derivative instruments, each Fund will segregate or ``earmark'' assets
determined to be liquid by PIMCO in accordance with procedures
established by the Trust's Board of Trustees and in accordance with the
1940 Act.
---------------------------------------------------------------------------

    \30\ See, e.g., Securities Exchange Act Release Nos. [sic] 7882
(August 20, 2014) (SR-NYSEArca-2014-58) (order approving listing and
trading on the Exchange of shares of the PIMCO Short-Term Exchange-
Traded Fund and the PIMCO Municipal Bond Exchange-Traded Fund under
NYSE Arca Equities Rule 8.600).
---------------------------------------------------------------------------

    With respect to the representation above that, with respect to
derivative instruments, as proposed to be used, PIMCO generally will
consider such instruments to be economically tied to non-U.S. countries
if the underlying assets are foreign currencies, or instruments or
securities that are issued by foreign governments or issuers organized
under the laws of a non-U.S. country (or if the underlying assets are
money market instruments, as applicable, if either the issuer or the
guarantor of such money market instruments is organized under the laws
of a non-U.S. country), the Exchange believes such consideration will
not adversely impact investors and serves to protect investors and the
public interest for the following reasons. The proposed revised
representations are similar to those previously approved by the
Commission for other exchange-traded funds listed and traded on the
Exchange pursuant to NYSE Arca Equities Rule 8.600.\31\ In addition, as
described further below, a Fund's investments in derivative instruments
will be made in accordance with the 1940 Act and consistent with a
Fund's investment objectives and policies. To limit the potential risk
associated with transactions in derivative instruments, each Fund will
segregate or ``earmark'' assets determined to be liquid by PIMCO in
accordance with procedures established by the Trust's Board of Trustees
and in accordance with the 1940 Act.
---------------------------------------------------------------------------

    \31\ See note 30, supra.
---------------------------------------------------------------------------

    With respect to the representation in ``Surveillance'' above that
(1) not more than 10% of the net assets of a Fund in the aggregate
invested in equity securities (excluding non-exchange-traded investment
company securities) shall consist of equity securities, including
stocks into which a convertible security is converted, whose principal
market is not a member of the ISG or is a market with which the
Exchange does not have a comprehensive surveillance sharing agreement,
and (2) not more than 10% of the net assets of a Fund in the aggregate
invested in futures contracts or exchange-traded options contracts
shall consist of futures contracts or exchange-traded options contracts
whose principal market is not a member of ISG or is a market with which
the Exchange does not have a comprehensive surveillance sharing
agreement, the Exchange believes such limitation of assets will not
adversely impact investors and serves to protect investors and the
public interest for the following reasons. The Commission has
previously approved such limitations for other funds listed on the
Exchange under NYSE Arca Equities Rule 8.600.\32\ Such a representation
assures that most applicable exchange-traded assets of a Fund will be
assets whose principal market is an ISG member or a market with which
the Exchange has a comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    \32\ See Securities Exchange Act Release Nos. 69915 (July 2,
2013), 78 FR 41145 (July 9,2013) (SR-NYSEArca-2013-56) (order
approving listing and trading of shares of the PowerShares China A-
Share Portfolio under NYSE Arca Equities Rule 8.600); 72665 (July
24, 2014), 79 FR 44236 (July 30, 2014) (SR-NYSEArca-2014-59) (order
approving listing and trading of shares of the AdvisorShares Athena
High Dividend ETF under NYSE Arca Equities Rule 8.600 [sic]; 72882
(August 20, 2014) (SR-NYSEArca-2014-58) (order approving listing and
trading of shares of PIMCO Short-Term Exchange-Traded Fund and PIMCO
Municipal Bond Exchange-Traded Fund under NYSE Arca Equities Rule
8.600); 72853 (August 15, 2014) (SR-NYSEArca-2014-57) (order
approving listing and trading of shares of the PIMCO Foreign Bond
Exchange-Traded Fund (U.S. Dollar-Hedged), PIMCO Foreign Bond
Exchange-Traded Fund (Unhedged), PIMCO Global Advantage Bond
Exchange-Traded Fund, and PIMCO International Advantage Bond
Exchange-Traded Fund under NYSE Arca Equities Rule 8.600).
---------------------------------------------------------------------------

    With respect to the proposed changes to certain representations in
the Prior Releases and the Second PIMCO Total Return Release, relating
to limitations on investments in illiquid assets, the Exchange believes
such limitation of assets will not adversely impact investors and
serves to protect investors and the public interest for the following
reasons. The Exchange notes that the proposed revised representations
are similar to those previously approved by the Commission in the Prior
Releases for the PIMCO Diversified Income Exchange-Traded Fund, PIMCO
Low Duration Exchange-Traded Fund, PIMCO Real Return Exchange-Traded
Fund and the Second PIMCO Total Return Release relating to investments
in illiquid assets.\33\ In addition, the Exchange notes that each Fund
will monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of a Fund's
net assets are held in illiquid assets.
---------------------------------------------------------------------------

    \33\ See notes 4 and 6, supra.
---------------------------------------------------------------------------

    Investor protection and the public interest are further advanced as
a result of the following factors:
     Each Fund's compliance with the requirements of the
federal securities laws, in particular, the restrictions under the 1940
Act regarding limitation on investments in illiquid securities;
     The central clearing of U.S. exchange-traded futures and
options contracts and certain swaps;
     In the case of OTC swaps and OTC options, the Adviser
represents that it has implemented policies and procedures which govern
the selection of counterparties to reduce the risks associated with
swaps, including, but not limited to, counterparty risk and
concentration risk.
     The Adviser represents that each Fund will comply with the
representations stated in the No-Action Letter, as stated above. In
addition, all other representations in the Prior Releases and the Total
Return Release, with the exceptions noted above, remain as stated
therein and no other changes are being made.
     Investments in derivative instruments will be made in
accordance with the 1940 Act and consistent with a Fund's investment
objectives and policies. To limit the potential risk associated with
transactions in derivative instruments, each Fund will segregate or
``earmark'' assets determined to be liquid by PIMCO in accordance with
procedures established by the Trust's Board of Trustees and in
accordance with the 1940 Act (or, as permitted by applicable
regulation, enter into certain offsetting positions) to cover its
obligations under derivative

instruments. These procedures have been adopted consistent with Section
18 of the 1940 Act and related Commission guidance. In addition, each
Fund will include appropriate risk disclosure in its offering
documents, including leveraging risk.
     The listing and trading of Shares of a Fund is governed by
Exchange initial and continued listing rules as approved by the
Commission, including NYSE Arca Equities Rule 8.600.
     As described in the Prior Releases under ``Availability of
Information'', the Funds' Web site discloses specified quantitative
information updated on a daily basis, as well as the Disclosed
Portfolio as defined in NYSE Arca Equities Rule 8.600(c)(2) that will
form the basis for a Fund's calculation of NAV at the end of the
business day. On a daily basis, each Fund will disclose on each Fund's
Web site the following information regarding each portfolio holding, as
applicable to the type of holding: Ticker symbol, CUSIP number or other
identifier, if any; a description of the holding (including the type of
holding, such as the type of swap); the identity of the security,
commodity, index or other asset or instrument underlying the holding,
if any; for options, the option strike price; quantity held (as
measured by, for example, par value, notional value or number of
shares, contracts or units); maturity date, if any; coupon rate, if
any; effective date, if any; market value of the holding; and the
percentage weighting of the holding in each Fund's portfolio.
     The proposed rule change helps to perfect the mechanism of
a free and open market by enhancing investor choice and providing
investors a cost effective and efficient means to access an asset class
through a diversified vehicle that is listed and traded on an exchange.

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. The proposed rule change
will allow each Fund to use derivative instruments as a more efficient
substitute for taking a position in the underlying asset and/or as part
of a strategy designed to reduce exposure to risks (such as interest
rate or currency risk) or to enhance investment returns. The proposed
change, therefore, will provide additional flexibility to the Adviser
to seek each Fund's investment objective and will enhance each Fund's
ability to compete with other actively managed exchange-traded funds
and mutual funds.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, if consistent with
the protection of investors and the public interest, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\34\ and Rule 19b-4(f)(6)(iii) thereunder.\35\
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78s(b)(3)(A).
    \35\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2014-104 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2014-104. 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
10:00 a.m. and 3:00 p.m. Copies of such 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 Number SR-NYSEArca-2014-104 and should
be submitted on or before November 6, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
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    \36\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-24545 Filed 10-15-14; 8:45 am]
BILLING CODE 8011-01-P


                                  MEMORANDUM

Tetra Tech, Inc.
10306 Eaton Place, Suite 340
Fairfax, VA 22030
Phone<PHONE_NUMBER>
Fax<PHONE_NUMBER>

TO:			Paul Shriner and Lisa Biddle, EPA
FROM:		John Sunda, Tetra Tech
DATE: 		November 13, 2013

SUBJECT: 	Analysis of Manufacturing Facility Cooling Water Use for Electricity Generation

Tetra Tech was tasked with identifying the proportion of manufacturing facilities that use cooling water predominantly for generating electricity similar to generating facilities. A review of the flow data analysis used to estimate the proportion of non-contact cooling water used at manufacturing facilities revealed that this data was not suitable for this analysis since the analysis focused on data from larger facilities (DIF >100 mgd). This analysis includes all facilities that completed a detailed survey and focuses only on the reported percent electric generation data.

Question 4 in Section 2 of the detailed technical survey requested data for each cooling water intake structure (CWIS) regarding the percentage of cooling water used for each of the following purposes:

   1. Electricity generation using steam turbines;
   2. Electricity generation using prime movers other than steam;
   3. Air conditioning;
   4. Production line (or process) contact and/or non-contact cooling (other than electricity generation or air conditioning);
   5. Other.

Since this data was reported on an intake basis, the results of this analysis are reported on an intake basis since reporting this data on a facility basis would require a much more in-depth flow-weighted analysis. All results are weighted using DQ facility weights.

Data from in-scope facilities listed in the master database were sorted into manufacturers and generators. The percent reported for responses 1 and 2 from the list above were then added to represent percent cooling water used for electricity generation.

Table 1 below shows the percentage of generating and manufacturing facility intakes (weighted) that reported a percent of cooling water used for electricity generation (EG) that was greater than the percentage thresholds shown. For example, 8% of manufacturing intakes used >95% of intake cooling water for electricity generation. Table 1 shows that a threshold of 90% EG included the majority (94%) of generating facility intakes and therefore is a good indicator for identifying an intake that is predominantly used for EG cooling water and is similar to intakes at generating facilities.

                                    Table 1
Proportion of Intakes Based on Percent Use of Cooling Water for Electricity Generation
              Percentage Electricity Generation (EG) Threshold[a]
                          Generating Facility Intakes
                        Manufacturing Facility Intakes
Manufacturing Facility  Intakes at Facilities Where Total Plant Cooling Water Use was Predominantly for EG[b]
                                    >99%
                                      71%
                                      6%
                                      3%
                                    >95%
                                      89%
                                      8%
                                      4%
                                    >90%
                                      94%
                                      9%
                                      5%
                                    >75%
                                      96%
                                      12%

                                    >50%
                                      96%
                                      17%

                                    >10%
                                      97%
                                      29%

                                    >0%
                                      97%
                                      46%

[a] Includes sum of items 1 and 2 listed above ("electricity generation using steam turbines" and "electricity generation using prime movers other than steam").
[b] Excludes intakes where other uses were >10% or those at facilities with other intakes with <90% electricity generation.

One inconsistency with the manufacturing facility intake data was that some intakes reported percentages for each category that when summed together exceeded 100%. In some cases, an intake would report that a high percentage was used for EG and also a high percentage was used for production line or process purposes. This was particularly notable for paper manufacturing intakes, suggesting that these data represented situations where water was being reused for multiple purposes. Also, many manufacturing facilities had multiple intakes with some intakes used for EG and other intakes used for process or other purposes. In order to get an idea of how many intakes were associated with facilities where total plant cooling water was used predominantly for EG purposes, manufacturing intakes with a percent EG >90% were examined to see if:

    1. There was a significant portion (>10%) of cooling water reported as being used for non-EG purposes (Items 3 through 5 above) or;
    2. If there was another intake at the same facility with percent EG being much less than 90%.

The column on the right shows the percentage of intakes where both types of intakes were excluded. Note that this column stops at >90% cooling water used for EG since this evaluation was intended to identify the proportion of manufacturing facilities that use cooling water predominantly for generating electricity similar to generating facilities and the exclusion criteria were based on 90% threshold.

This analysis indicates that an estimated 5% of intakes at manufacturing facilities are associated with facilities where cooling water was predominantly used for EG. The analysis also indicates that an estimated 46% of intakes at manufacturing facilities use at least a portion of their cooling water for EG purposes. As reported in TDD Section 5.3, the results of separate survey question indicated that 60% of manufacturing facilities had generated electricity during 1996, 1997, or 1998. Factors that may contribute to this apparent inconsistency include:

   * This analysis measures "percent intakes (47%)" while the other measures "percent facilities (60%)." Since many manufacturing facilities may use only one of several intakes for EG purposes, the total number of EG intakes and facilities may be similar in value but the total number of intakes will be higher than the total number of facilities resulting in a lower proportion of the total.
   * Some facilities may generate electricity without using cooling water (e.g., a cogeneration system is used where all of the turbine exhaust steam is used for process purposes).


[Federal Register Volume 82, Number 89 (Wednesday, May 10, 2017)]
[Proposed Rules]
[Pages 21749-21751]
[FR Doc No: 2017-09384]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R02-OAR-2017-0013; FRL-9960-68-Region 2]

Approval and Revision of Air Quality Implementation Plans; State
of New York; Regional Haze State and Federal Implementation Plans

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) proposes to approve
a source-specific revision to the New York State Implementation Plan
(SIP). This revision consists of a Best Available Retrofit Technology
(BART) determination for the Danskammer Generating Station Unit 4. The
SIP revision establishes emission limits for sulfur dioxide, oxides of
nitrogen, and particulate matter that are identical to those set by the
EPA's Federal Implementation Plan (FIP) for Danskammer Unit 4, which
was promulgated in an action taken on August 28, 2012. The SIP revision
also restricts Danskammer Unit 4 to combusting only natural gas. The
EPA proposes to find that the SIP revision fulfills the requirements of
the Clean Air Act and the EPA's Regional Haze Rule for BART at
Danskammer Unit 4. In conjunction with this proposed approval, we
propose to withdraw those portions of the FIP that address BART for
Danskammer Unit 4.

DATES: Comments must be received on or before June 9, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R02-
OAR-2017-0013 to http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. The EPA may publish any
comment received to its public docket. Do not submit electronically any
information you consider to be Confidential Business Information (CBI)
or other information whose disclosure is restricted by statute.
Multimedia submissions (audio, video, etc.) must be accompanied by a
written comment. The written comment is considered the official comment
and should include discussion of all points you wish to make. The EPA
will generally not consider comments or comment contents located
outside of the primary submission (i.e. on the web, cloud, or other
file sharing system). For additional submission methods, the full

EPA public comment policy, information about CBI or multimedia
submissions, and general guidance on making effective comments, please
visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Edward J. Linky, Environmental
Protection Agency, Air Programs Branch, 290 Broadway, New York, New
York 1007-1866 at<PHONE_NUMBER> or by email at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Table of Contents

I. What action is the EPA proposing?
II. What is the background information for this proposal?
    A. SIP and FIP Background
    B. Regional Haze Background
    C. EPA Action on New York's Regional Haze Submittals
III. What is included in the NYSDEC SIP proposal?
IV. What is the EPA's analysis of NYSDEC's submittal?
V. Statutory and Executive Order Reviews

    Throughout this document whenever ``Agency,'' ``we,'' ``us,'' or
''our'' is used, we mean the EPA.

I. What action is the EPA proposing?

    The EPA is proposing to approve a source-specific State
Implementation Plan (SIP) revision for Unit 4 at the Danskammer
Generating Station submitted by the New York State Department of
Environmental Conservation (NYSDEC) on August 10, 2015, and
supplemented by NYSDEC on August 5, 2016.\1\ Specifically, the EPA is
proposing to approve emission limits for sulfur dioxide
(SO2), oxides of nitrogen (NOX), and particulate
matter (PM) for Unit 4 at the Danskammer Generating Station that are
equivalent to the emission limits established by the EPA's Federal
Implementation Plan (FIP) that was promulgated on August 28, 2012 (77
FR 51915, 51928). The EPA is also proposing to approve a condition in
the SIP revision that restricts Danskammer Unit 4 to combusting only
natural gas.
---------------------------------------------------------------------------

    \1\ NYSDEC's August 10, 2015, submittal also included SIP
revisions for LaFarge Building Materials and Rockville Centre Power
Plant which we intend to act on separately.
---------------------------------------------------------------------------

II. What is the background information for this proposal?

    This section provides a brief overview of the requirements of the
Clean Air Act (CAA) and Regional Haze Rule that apply to this
particular action. Please refer to our previous rulemakings on the New
York Regional Haze SIP for additional background regarding the
visibility protection provisions of the CAA and the Regional Haze
Rule.\2\
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    \2\ 77 FR 24794 (April 25, 2012) (proposed rule); 77 FR 27162
(May 9, 2012) (Notice of Data Availability); 77 FR 51915 (Aug. 28,
2012) (final rule).
---------------------------------------------------------------------------

A. SIP and FIP Background

    The CAA requires each state to develop plans to meet various air
quality requirements, including protection of visibility. (CAA sections
110(a), 169A, and 169B). The plans developed by a state are referred to
as SIPs. A state must submit its SIPs and SIP revisions to EPA for
approval. Once approved, a SIP is federally enforceable, that is
enforceable by the EPA and subject to citizen suits under the CAA. If a
state fails to make a required SIP submittal or if we find that a
state's required submittal is incomplete or unapprovable, then EPA must
promulgate a FIP to fill this regulatory gap. (CAA section 110(c)(1)).

B. Regional Haze Background

    In the 1977 Amendments to the CAA, Congress initiated a program for
protecting visibility in the nation's national parks and wilderness
areas. Section 169A(a)(1) of the CAA establishes as a national goal the
``prevention of any future, and the remedying of any existing,
impairment of visibility in mandatory Class I Federal areas which
impairment results from manmade air pollution.'' In 1990, Congress
added section 169B to the CAA to address regional haze issues. On July
1, 1999, the EPA promulgated the Regional Haze Rule (RHR) (64 FR
35714). The requirement to submit a Regional Haze SIP applies to New
York and all 50 states, the District of Columbia, and the Virgin
Islands. 40 CFR 51.308(b) of the RHR required states to submit the
first implementation plan addressing regional haze visibility
impairment no later than December 17, 2007.

C. EPA Action on New York's Regional Haze Submittals

    The EPA's final action on New York's Regional Haze SIP included
approving 17 source-specific SIP revisions containing permits for Best
Available Retrofit Technology (BART) and promulgating a FIP to address
two sources where EPA disapproved New York's BART determinations--
Roseton Generating Station (Units 1 and 2) and the Danskammer
Generating Station (Unit 4). 77 FR 51915 (August 28, 2012).
    On August 10, 2015, NYSDEC submitted a request for a source-
specific SIP revision for Danskammer Unit 4 which would replace the
EPA's FIP. In this action, the EPA proposes to approve the SIP revision
and remove Danskammer Unit 4 from the FIP, but this action does not
address the Roseton Generating Station still covered by the EPA's FIP.

III. What is included in the NYSDEC SIP submittal?

    On August 10, 2015, NYSDEC submitted a request for a source-
specific SIP revision for Danskammer Unit 4, which would replace the
BART emission limits and related requirements in the EPA's FIP that
were promulgated in the Federal Register on August 28, 2012 (77 FR
51915). This SIP revision contained Danskammer Unit 4's Title V permit
conditions 61-64.
    In a letter to NYSDEC dated July 14, 2016, the EPA requested that
NYSDEC supplement its August 10, 2015 SIP submittal. Specifically, the
EPA requested that NYSDEC submit Danskammer Unit 4's Title V permit
condition 55.6 (at pages 48 and 49 of the permit), which restricts Unit
4 to combusting only natural gas. The EPA also requested that NYSDEC
submit a copy of the April 1, 2015 public notice as published in
NYSDEC's Environmental Notice Bulletin (ENB).
    In a letter dated August 5, 2016, NYSDEC submitted to the EPA (1)
permit condition 55.6 (pages 48 and 49) of Dankskammer Unit 4's Title V
permit that was renewed on February 24, 2015, which permits Unit 4 to
combust natural gas only and (2) a copy of NYSDEC's April 1, 2015 ENB
that noticed the proposed Danskammer SIP revision.

IV. What is the EPA's analysis of NYSDEC's submittal?

    In its submittal, NYSDEC includes BART emission limits for
Danskammer Unit 4 that are identical to those contained in the EPA's
FIP: 0.12 pounds NOX per million Btu (lb/MMBtu) calculated
on a 24-hour average during the ozone season and on a 30-day average
during the rest of the year; 0.09 lb SO2/MMBtu calculated on
a 24-hour average; and 0.06 lb PM/MMBtu calculated on a 1-hour average.
NYSDEC also includes a condition that restricts Danskammer Unit 4 to
combusting only natural gas.
    The EPA is proposing to approve NYSDEC's SIP submittal because it
is more stringent than the EPA's FIP. The SIP submittal includes BART
emission limits for SO2, NOX, and PM and related
administrative requirements (i.e., monitoring, recordkeeping and
reporting requirements) that are identical to those in the EPA's FIP.
Moreover, the SIP submittal includes a

condition that restricts Dankskammer Unit 4 to combusting only natural
gas, which will have the effect of further reducing visibility-
impairing emissions, particularly SO2 and PM. Consequently,
the EPA proposes to withdraw those portions of the FIP that address
BART for Danskammer Unit 4. The EPA will fully consider all significant
comments on these proposed actions.

VI. Statutory and Executive Order Reviews

    In reviewing NYSDEC's SIP submittal, the EPA's role is to approve
state choices if they meet the requirements of the CAA. Accordingly,
this action merely approves state law as meeting Federal requirements
and does not impose additional requirements beyond those imposed by
state law. For that reason this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in
Executive Order (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     does not provide EPA with the discretionary authority to
address as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    This action does not have tribal implications as specified by
Executive Order 13175. The SIP revision submitted by NYSDEC is not
approved to apply on any Indian reservation land or in any other areas
where the EPA or Tribal Nation has demonstrated that a Nation has
jurisdiction. Thus Executive Order 13175 does not apply to this
proposed rule.

List of Subjects in 40 CFR Part 52

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

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

    Dated: March 10, 2017.
Catherine R. McCabe,
Acting Regional Administrator, Region 2.
[FR Doc. 2017-09384 Filed 5-9-17; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)]
[Notices]
[Pages 59713-59714]
[FR Doc No: 2016-20793]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Waiver of Aeronautical Land-Use Assurance: Marshall Memorial
Municipal Airport (MHL), Marshall, MO

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of Intent of Waiver with respect to land.

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SUMMARY: The Federal Aviation Administration (FAA) is considering a
proposal from the City of Marshall (sponsor), Marshall, MO, to release
a 15.42 acres of land from the federal obligation
dedicating it to aeronautical

use and to authorize this parcel to be used for revenue-producing, non-
aeronautical purposes.

DATES: Comments must be received on or before September 29, 2016.

ADDRESSES: Comments on this application may be mailed or delivered to
the FAA at the following address: Lynn D. Martin, Airports Compliance
Specialist, Federal Aviation Administration, Airports Division, ACE-
610C, 901 Locust Room 364, Kansas City, MO 64106.
    In addition, one copy of any comments submitted to the FAA must be
mailed or delivered to: Mayor Mark Gooden, City of Marshall Office
Building, 214 N. Lafayette Ave., Marshall, MO 65340,<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Lynn D. Martin, Airports Compliance
Specialist, Federal Aviation Administration, Airports Division, ACE-
610C, 901 Locust, Room 364, Kansas City, MO 64106, Telephone number
(816) 329-2644, Fax number<PHONE_NUMBER>, email address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The FAA invites public comment on the
request to change approximately 15.42 acres of airport
property at the Marshall Memorial Municipal Airport (MHL) from
aeronautical use to non-aeronautical use for revenue producing. The
parcel of land is located along the North line of Fairground Road. This
parcel will be used for a solar farm. The land will be leased to MC
Power for the solar farm.
    No airport landside or airside facilities are presently located on
this parcel, nor are airport developments contemplated in the future.
Farming is the current use of the surface of the parcel. The parcel
will serve as a revenue producing lot with the proposed change from
aeronautical to non-aeronautical. The request submitted by the Sponsor
meets the procedural requirements of the Federal Aviation
Administration and the change to non-aeronautical status of the
property does not and will not impact future aviation needs at the
airport. The FAA may approve the request, in whole or in part, no
sooner than thirty days after the publication of this Notice.
    The following is a brief overview of the request:
    The Marshall Memorial Municipal Airport (MHL) is proposing the
release of one parcel, of 15.42 acres, more or less from aeronautical
to non-aeronautical. The release of land is necessary to comply with
Federal Aviation Administration Grant Assurances that do not allow
federally acquired airport property to be used for non-aviation
purposes. The rental of the subject property will result in the land at
the Marshall Memorial Municipal Airport (MHL) being changed from
aeronautical to nonaeronautical use and release the lands from the
conditions of the Airport Improvement Program Grant Agreement Grant
Assurances. In accordance with 49 U.S.C. 47107(c)(2)(B)(i) and (iii),
the airport will receive fair market rental value for the property. The
annual income from rent payments will generate a long-term, revenue-
producing stream that will further the Sponsor's obligation under FAA
Grant Assurance number 24, to make the Marshall Memorial Municipal
Airport as financially self-sufficient as possible.
    Following is a legal description of the subject airport property at
the Marshall Memorial Municipal Airport (MHL):
    A tract of land located in the Southwest Quarter of Section 22 T50N
R21W, in Marshall, Saline County, Missouri, and further described as
follows:
    Commencing at the Southwest Corner of said section 22, thence along
the South line of said section, S. 89[deg]09'20'' E. 383.83 feet;
Thence N. 00[deg]50'40'' E. 20.00 feet, to a point on the East Right of
Way of U.S. Highway 65, and the point of beginning.
    From the point of beginning, thence continuing along said Right of
Way, on a curve to the right, having a radius of 2,774.79 feet, a
distance of 732.57 feet, the chord being N. 17[deg]16'20'' W. 730.45
feet; thence S. 83[deg]49'30'' E. 1,163.93 feet; thence S.
01[deg]54'00'' W. 586.19 feet; to the North line of Fairground Road;
thence along said North line N. 89[deg]09'20'' 920.98 feet, to the
point of beginning, containing 15.42 acres.
    Any person may inspect, by appointment, the request in person at
the FAA office listed above FOR FURTHER INFORMATION CONTACT. In
addition, any person may, upon appointment and request, inspect the
application, notice and other documents determined by the FAA to be
related to the application in person at the Marshall Memorial Municipal
Airport.

    Issued in Kansas City, MO, on August 23, 2016.
Jim A. Johnson,
Manager, Airports Division.
[FR Doc. 2016-20793 Filed 8-29-16; 8:45 am]
BILLING CODE 4910-13-P