[Federal Register Volume 77, Number 155 (Friday, August 10, 2012)]
[Rules and Regulations]
[Pages 47779-47782]
[FR Doc No: 2012-19309]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 271

[EPA-R06-RCRA-2010-0307; FRL-9713-3]

Arkansas: Final Authorization of State Hazardous Waste Management
Program Revision

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: Arkansas has applied to the EPA for Final authorization of the
changes to its hazardous waste program under the Resource Conservation
and Recovery Act (RCRA). EPA has determined that these changes satisfy
all requirements needed to qualify for Final authorization, and is
authorizing the State's changes through this immediate final action.
The EPA is publishing this rule to authorize the changes without a
prior proposal because we believe this action is not controversial and
do not expect comments that oppose it. Unless we receive written
comments which oppose this authorization during the comment period, the
decision to authorize Arkansas' changes to its hazardous waste program
will take effect. If we receive comments that oppose this action, we
will publish a document in the Federal Register withdrawing this rule
before it takes effect, and a separate document in the proposed rules
section of this Federal Register will serve as a proposal to authorize
the changes.

DATES: This Final authorization will become effective on October 9,
2012 unless the EPA receives adverse written comment by September 10,
2012. If the EPA receives such comment, it will publish a timely
withdrawal of this immediate final rule in the Federal Register and
inform the public that this authorization will not take effect.

ADDRESSES: Submit your comments by one of the following methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow
the on-line instructions for submitting comments.
    2. Email<EMAIL_ADDRESS>    3. Mail: Alima Patterson, Region 6, Regional Authorization
Coordinator, State/Tribal Oversight Section (6PD-O), Multimedia
Planning and Permitting Division, EPA Region 6, 1445 Ross Avenue,
Dallas, Texas 75202-2733.
    4. Hand Delivery or Courier: Deliver your comments to Alima
Patterson, Region 6, Regional Authorization Coordinator, State/Tribal
Oversight Section (6PD-O), Multimedia Planning and Permitting Division,
EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-2733.
    Instructions: Do not submit information that you consider to be CBI
or otherwise protected through regulations.gov, or email. The Federal
regulations.gov Web site is an ``anonymous access'' system, which means
the EPA will not know your identity or contact information unless you
provide it in the body of your comment. If you send an email comment
directly to the EPA without going through regulations.gov, your email
address will be automatically captured and included as part of the
comment that is placed in the public docket and made available on the
Internet. If you submit an electronic comment, the EPA recommends that
you include your name and other contact information in the body of your
comment and with any disk or CD-ROM you submit. If the EPA cannot read
your comment due to technical difficulties and cannot contact you for
clarification, the EPA may not be able to consider your comment.
Electronic files should avoid the use of special characters, any form
of encryption, and be free of any defects or viruses. You can view and
copy Arkansas' application and associated publicly available materials
from 8:30 a.m. to 4 p.m. Monday through Friday at the following
locations: Arkansas Department of Environmental Quality, 8101
Interstate 30, Little Rock, Arkansas 72219-8913,<PHONE_NUMBER>, and
EPA, Region 6, 1445 Ross Avenue, Dallas, Texas 75202-2733, phone number
(214) 665-8533. Interested persons wanting to examine these documents
should make an appointment with the office at least two weeks in
advance.

FOR FURTHER INFORMATION CONTACT: Alima Patterson, Region 6, Regional
Authorization Coordinator, State/Tribal Oversight Section (6PD-O),
Multimedia Planning and Permitting Division,<PHONE_NUMBER>, EPA Region
1445 Ross Avenue, Dallas, Texas 75202-2733, and Email address
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

A. Why are revisions to State programs necessary?

    States which have received Final authorization from the EPA under
RCRA section 3006(b), 42 U.S.C. 6926(b), must maintain a hazardous
waste program that is equivalent to, consistent with, and no less
stringent than the Federal program. As the Federal program changes,
States must change their programs and ask the EPA to authorize the
changes. Changes to State programs may be necessary when Federal or
State statutory or regulatory authority is modified or when certain
other changes occur. Most commonly, States must change their programs
because of changes to the EPA's regulations in 40 Code of Federal
Regulations (CFR) parts 124, 260 through 266, 267, 268, 270, 273, and
279.

B. What decisions have we made in this rule?

    We conclude that Arkansas' application to revise its authorized
program meets all of the statutory and regulatory requirements
established by RCRA. Therefore, we grant Arkansas Final authorization
to operate its hazardous waste program with the changes described in
the authorization application. Arkansas has responsibility for
permitting treatment, storage, and disposal facilities within its
borders (except in Indian Country) and for carrying out the aspects of
the RCRA program described in its revised program application, subject
to the limitations of the Hazardous and Solid Waste Amendments of 1984
(HSWA). New Federal requirements and prohibitions imposed by Federal
regulations that the EPA promulgates under the authority of HSWA take
effect in authorized States before they are authorized for the
requirements. Thus, the EPA will implement those requirements and
prohibitions in Arkansas including issuing permits, until the State is
granted authorization to do so.

C. What is the effect of today's authorization decision?

    The effect of this decision is that a facility in Arkansas subject
to RCRA will now have to comply with the authorized State requirements
instead of the equivalent Federal requirements in order to comply with
RCRA. Arkansas has enforcement responsibilities under its State
hazardous waste program for violations of such program, but the EPA
retains its authority under RCRA sections 3007, 3008, 3013, and 7003,
which include, among others, authority to:
     Do inspections, and require monitoring, tests, analyses,
or reports;
     Enforce RCRA requirements and suspend or revoke permits
and
     Take enforcement actions after notice to and consultation
with the State.
    This action does not impose additional requirements on the
regulated community because the

regulations for which Arkansas is being authorized by today's action
are already effective under State law, and are not changed by today's
action.

D. Why wasn't there a proposed rule before today's rule?

    The EPA did not publish a proposal before today's rule because we
view this as a routine program change and do not expect comments that
oppose this approval. We are providing an opportunity for public
comment now. In addition to this rule, in the proposed rules section of
today's Federal Register we are publishing a separate document that
proposes to authorize the State program changes.

E. What happens if the EPA receives comments that oppose this action?

    If the EPA receives comments that oppose this authorization, we
will withdraw this rule by publishing a document in the Federal
Register before the rule becomes effective. The EPA will base any
further decision on the authorization of the State program changes on
the proposal mentioned in the previous paragraph. We will then address
all public comments in a later final rule. You may not have another
opportunity to comment. If you want to comment on this authorization,
you must do so at this time. If we receive comments that oppose only
the authorization of a particular change to the State hazardous waste
program, we will withdraw only that part of this rule, but the
authorization of the program changes that the comments do not oppose
will become effective on the date specified in this document. The
Federal Register withdrawal document will specify which part of the
authorization will become effective, and which part is being withdrawn.

F. For what has Arkansas previously been authorized?

    Arkansas initially received final authorization on January 25,
1985, (50 FR 1513, January 11, 1985) to implement its Base Hazardous
Waste Management program. Arkansas received authorization for revisions
to its program on January 11, 1985 (50 FR 1513), effective January 25,
1985; March 27, 1990 (55 FR 11192) effective May 29, 1990; September
18, 1991 (56 FR 47153) effective November 18, 1991; October 5, 1992 (57
FR 45721) effective December 4, 1992; October 7, 1994 (59 FR 51115)
effective December 21, 1994, April 24, 2002 (67 FR 20038) effective
June 24, 2002 and August 15, 2007 (72 FR 45663) effective October 15,
2007. The authorized Arkansas RCRA program was incorporated by
reference into the Code of Federal Regulations effective December 13,
1993 (58 FR 52674) and also June 28, 2010 (75 FR 36538) effective
August 27, 2010. On December 10, 2010, Arkansas submitted a final
complete program revision application seeking authorization of its
program revision in accordance with 40 CFR 271.21.
    On April 1994, Arkansas Department of Pollution Control and Ecology
(ADPC&E), revised its Regulation Number 23 from one of ``incorporation
by reference'' to the adoption and incorporation of a version of the
full text of the Federal regulatory language. The specific authorities
provided are contained in statutes and regulations lawfully adopted at
the time the Independent Counsel signed the certification which are in
effect now. The statutory authorities for the State are documented in
the Arkansas RCRA Statutory Checklist, dated August 2006. Any
differences between the State's provisions and the Federal provisions
are noted on the individual revision Checklists. The official State
regulations may be found in Arkansas Pollution Control and Ecology
Commission Regulation Number 23 (Hazardous Waste Management), adopted
on April 25, 2008 and April 23, 2010 effective May 26, 2008 and June
13, 2010 respectfully. The provisions for which the State is seeking
authorization are documented in this Federal Register document.
    The provisions for which the State is seeking authorization are
documented in the Rule Revision Checklists 210, 217, 218 and 220, which
are portions of RCRA Clusters XV through XIX. Reference to Arkansas
Code Annotate (A.C.A) of 1987, Annotated, as amended August 2007.
Reference to Arkansas Pollution Control and Ecology Commission (APC&EC)
Regulations Number 23, (Hazardous Waste Management) (formerly titled
the Arkansas Hazardous Waste Management Code), last amended on April
25, 2008 and April 23, 2010, to adopt all final rules promulgated by
EPA through June 30, 2009, and which became effective on May 26, 2008
and June 13, 2010. Dates of enactment and adoption for other statutes
or regulations are given when cited.

What changes are we approving with today's action?

    On December 10, 2010, the State of Arkansas submitted a final
complete program application, seeking authorization of their changes in
accordance with 40 CFR 271.21. We now make an immediate final decision,
subject to receipt of written comments that oppose this action, that
the State of Arkansas' hazardous waste program revision satisfies all
of the requirements necessary to qualify for final authorization. The
State of Arkansas revisions consist of regulations which specifically
govern Federal Hazardous Waste revisions promulgated from June 14, 2005
through December 1, 2008 and through June 30, 2009. The Checklists in
these rules are 210, 217, 218 and 220, which are portions of RCRA
Clusters XV through XIX are in a chart with this document.

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                                          Federal  Register date  and
   Description of Federal  requirement         page  (and/or RCRA              Analogous state authority
(include checklist number,  if relevant)     statutory  authority)
----------------------------------------------------------------------------------------------------------------
1. Standardized permit for RCRA           70 FR 53420-53478,           Arkansas Code of 1987 Annotated (A.C.A.)
 Hazardous Waste Management Facilities.    September 8, 2005.           Sections 8-7-201 through 8-7-226.
 (Checklist 210).                                                       Arkansas Pollution Control and Ecology
                                                                        (APC&E) Regulation Number 23, (Hazardous
                                                                        Waste Management) (HWM) Sections 260.10
                                                                        ``Facility'', 260.11(c)(1),
                                                                        260.11(c)(3)(xxvii), 260.11(d)(1),
                                                                        261.7(a)(1), 267.1, 267.2, 267.3, 267.10-
                                                                        267.18, 267.30-267.36, 267.50-267.58,
                                                                        267.70-267.76, 267.90, 267.91-267.100,
                                                                        267.101, 267.110, 267.111, 267.112,
                                                                        267.113-267.117, 267.140-267.143,
                                                                        267.144-267.146, 267.147, 267.148-
                                                                        267.151, 267.170-267.177, 267.190.

Checklist 210 Cond......................  70 FR 53420-53478,           267.191-267.204, 267.1100-267.1108,
                                           September 8, 2005.           270.1(b) Introductory paragraph,
                                                                        270.1(b)(1)-(2), 270.2 ``Permit'', 270.2
                                                                        ``Standardized Permit'', 270.10(a)
                                                                        introductory paragraph, 270.10(a)(1)-
                                                                        (6), 270.10(h) introductory paragraph,
                                                                        270.10(h)(1)-(2), 270.40(b), 270.41
                                                                        introductory paragraph, 270.41(b)(3),
                                                                        270.51(e)(1), 270.51(e)(1)(i)-(iii),
                                                                        270.51(e)(2), 270.67 introductory
                                                                        paragraph, 270.67(a)-(b), 270.250-
                                                                        270.275, 270.280, 270.290, 270.300,
                                                                        270.305, 270.310, 270.315 and 270.320,
                                                                        as amended April 25, 2008, effective May
                                                                        26, 2008.
2. NESHAP: Final Standards for Hazardous  73 FR 18970-18984 April 8,   Arkansas Code of 1987 Annotated (A.C.A.)
 Waste Combustors (Phase I Final           2008.                        Sections 8-7-201 through 8-7-226.
 Replacement Standards and phase II)                                    Arkansas Pollution Control and Ecology
 Amendments. (Checklist 217).                                           (APC&E) Regulation Number 23, (Hazardous
                                                                        Waste Management) (HWM) Sections
                                                                        264.340, 264.340(b)(1), 264.340(b)(3),
                                                                        264.340(b)(5), and 266.100(b)(3)(ii), as
                                                                        amended April 23, 2010, effective June
                                                                        13, 2010.
3. F019 Exemption for Wastewater          73 FR 31756-31769..........  Arkansas Code of 1987 Annotated (A.C.A.)
 Treatment Sludges from Auto                                            Sections 8-7-201 through 8-7-226.
 Manufacturing Zinc Phosphating                                         Arkansas Pollution Control and Ecology
 Processes. (Checklist 218).                                            (APC&E) Regulation Number 23, (Hazardous
                                                                        Waste Management) (HWM) Sections
                                                                        261.31(a)/Table, 261.31, 261.31,
                                                                        261.31(b)(4), and 261.31(b)(4)(i)-(ii),
                                                                        as amended April 23, 2010, effective
                                                                        June 13, 2010.
4. Academic Laboratories Generator        73 FR 72912-72960 December   Arkansas Code of 1987 Annotated (A.C.A.)
 Standards. (Checklist 220).               1, 2008.                     Sections 8-7-201 through 8-7-226.
                                                                        Arkansas Pollution Control and Ecology
                                                                        (APC&E) Regulation Number 23, (Hazardous
                                                                        Waste Management) (HWM) Sections
                                                                        261.5(c)(6)-(7), 262.10(l)(1)-(2), 262
                                                                        Subpart K, 262.200, 262.200 ``Central
                                                                        accumulation area'', 262.200 ``College/
                                                                        University'', 262.200 ``Eligible
                                                                        academic entity'', 262.200 ``Formal
                                                                        written affiliation agreement, 262.200
                                                                        ``Laboratory'', 262.200 ``Laboratory
                                                                        clean-out'', 262.200 ``Laboratory
                                                                        worker'', 262.200 ``Non-profit research
                                                                        institute'', 262.200 ``Reactive acutely
                                                                        hazardous unwanted material'', 262.200
                                                                        ``Trained professional'',
Checklist 220 Continues.................  73 FR 72912-72960 December   262.200 ``Unwanted material'', 262.200
                                           1, 2008.                     ``Working container'', 262.201 heading,
                                                                        262.201(a)-(b), 262.202 heading,
                                                                        262.202(a)-(b), 262.203 heading,
                                                                        262.203(a), 262.203(b) introductory
                                                                        paragraph, 262.203(b)(1)-(b)(11),
                                                                        262.203(c)-(e), 262.204(a), 262.204(b)
                                                                        introductory paragraph, 262.204(b)(1)-
                                                                        (11), 262.204(c), 262.205 heading,
                                                                        262.205, 262.206 heading, 262.206
                                                                        introductory paragraph, 262.206(a),
                                                                        262.206(a)(1), 262.206(a)(1)(i)-(ii),
                                                                        262.206(a)(1)(ii)(A)-(B), 262.206(a)(2),
                                                                        262.206(a)(2)(i)-(ii),
                                                                        262.206(a)(2)(ii)(A)-(C), 262.206(b)
                                                                        introductory paragraph, 262.206(b)(1),
Checklist 220 Continues.................  73 FR 72912-72960 December   262.206(b)(2)-(3), 262.206(b)(3)(i)-
                                           1, 2008.                     (iii), 262.206(b)(3)(iii)(A)-(B),
                                                                        262.207 heading, 262.207 introductory
                                                                        paragraph, 262.207(a)-(b), 262.207(b)(1)-
                                                                        (5), 262.207(c) introductory paragraph,
                                                                        262.207(c)(1)-(4), 262.207(d),
                                                                        262.207(d)(1)-(2), 262.208 heading,
                                                                        262.208(a), 262.208(a)(1)-(2),
                                                                        262.208(b)-(d), 262.208(d)(1),
                                                                        262.208(d)(1)(i)-(ii), 262.208(d)(2),
                                                                        262.209 heading, 262.209 ``introductory
                                                                        paragraph, 262.209(a)(1)-(3),
                                                                        262.209(b), 262.210 heading, 262.210
                                                                        introductory paragraph, 262.210(a),
                                                                        262.210(b) introductory paragraph,
                                                                        262.210(b)(1)-(3), 262.210(c)-(e),
                                                                        262.211 heading, 262.211 introductory
                                                                        paragraph,
Checklist 220 Continues.................  73 FR 72912-72960 December   262.211(a)-(b), 262.211(c)-(e),
                                           1, 2008.                     262.211(e)(1)-(4), 262.212 heading,
                                                                        262.212 introductory paragraph,
                                                                        262.212(a)-(e), 262.212(e)(1)-(4),
                                                                        262.213 heading, 262.213(a),
                                                                        262.213(a)(1)-(4), 262.213(b),
                                                                        262.213(b)(1)-(2), 262.214 introductory
                                                                        paragraph, 262.214(a), 262.214(a)(1),
                                                                        262.214(a)(1)(i)-(ii), 262.214(a)(2),
                                                                        262.214(b) introductory paragraph,
                                                                        262.214(b)(1)-(4), 262.214(b)(4)(i)-
                                                                        (ii), 262.214(b)(4)(ii)(A)-(B),
                                                                        262.214(b)(5)-(6), 262.214(b)(6)(i)-
                                                                        (ii), 262.214(b)(7), 262.214(b)(7)(i)-
                                                                        (iv), 262.214(c)-(d), 262.215 heading,
                                                                        262.215(a)-(b), 262.216 heading, 262.216
                                                                        introductory paragraph, 262.216(a)-(b),
                                                                        as amended April 23, 2010, effective
                                                                        June 13, 2010.
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H. Where are the revised State rules different from the Federal rules?

    The State of Arkansas regulations that are more stringent and
broader in scope than the Federal regulations are listed in the State's
Program description submitted with the application to be authorized
dated December 28, 2010. On Checklist 210 Standardized Permit for RCRA
Hazardous Waste Management Facilities, ADEQ has not incorporated by
reference the public participation provisions at 40 CFR 124.1-2,
124.3(b), 124.3(d), 124.3(e), 124.4, 124.5(b), 124.5(e), 124.5(g),
124.6(b), 124.9, 124.10(a)(1)(i), 124.10(a)(1)(v), 124.12(e), 124.14-
16, 124.18, 124.19, and 124.21. However, the State has been previously
authorized for equivalent provisions pursuant to APC&EC Regulation No.
8 (Administrative Procedures and corresponding State provisions at
Regulation No. 23 section 270.7). These references treat standardized
permits in the same manner as any other permit issued by the
Department.

I. Who handles permits after the authorization takes effect?

    The State of Arkansas will issue permits for all the provisions for
which it is authorized and will administer the permits it issues. The
EPA will continue to administer any RCRA hazardous waste permits or
portions of permits which we issued prior to the effective date of this
authorization. We will not issue any more new permits or new portions
of permits for the provisions listed in the Table in this document
after the effective date of this authorization. The EPA will continue
to implement and issue permits for HSWA requirements for which ADEQ is
not yet authorized.

J. How does today's action affect Indian Country (18 U.S.C. 1151) in
Arkansas?

    The State of Arkansas Hazardous Program is not being authorized to
operate in Indian Country.

K. What is codification and is the EPA codifying Arkansas' hazardous
waste program as authorized in this rule?

    Codification is the process of placing the State's statutes and
regulations that comprise the State's authorized hazardous waste
program into the CFR. We do this by referencing the authorized State
rules in 40 CFR part 272. We reserve the amendment of 40 CFR part 272,
subpart E for this authorization of Arkansas' program changes until a
later date. In this authorization application the EPA is not codifying
the rules documented in this Federal Register notice.
I. Administrative Requirements
    The Office of Management and Budget (OMB) has exempted this action
from the requirements of Executive Order 12866 (58 FR 51735, October 4,
1993), and therefore this action is not subject to review by OMB. The
reference to Executive Order 13563 (73 FR 3821, January 21, 2011) is
also exempt from review under Executive orders 12866 (56 FR 51735,
October 4, 1993). This action authorizes State requirements for the
purpose of RCRA 3006 and imposes no additional requirements beyond
those imposed by State law. Accordingly, I certify that this action
will not have a significant economic impact on a substantial number of
small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.). Because this action authorizes preexisting requirements under
State law and does not impose any additional enforceable duty beyond
that required by State law, it 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). For the same
reason, this action also does not significantly or uniquely affect the
communities of Tribal governments, as specified by Executive Order
13175 (65 FR 67249, November 9, 2000). This action will not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government, as
specified in Executive Order 13132 (64 FR 43255, August 10, 1999),
because it merely authorizes State requirements as part of the State
RCRA hazardous waste program without altering the relationship or the
distribution of power and responsibilities established by RCRA. This
action also is not subject to Executive Order 13045 (62 FR 19885, April
23, 1997), because it is not economically significant and it does not
make decisions based on environmental health or safety risks. This rule
is not subject to Executive Order 13211, ``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use'' (66 FR 28355 (May 22, 2001)) because it is not a significant
regulatory action under Executive Order 12866.
    Under RCRA 3006(b), the EPA grants a State's application for
authorization as long as the State meets the criteria required by RCRA.
It would thus be inconsistent with applicable law for the EPA, when it
reviews a State authorization application, to require the use of any
particular voluntary consensus standard in place of another standard
that otherwise satisfies the requirements of RCRA. Thus, the
requirements of section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. As required
by section 3 of Executive Order 12988 (61 FR 4729, February 7, 1996),
in issuing this rule, the EPA has taken the necessary steps to
eliminate drafting errors and ambiguity, minimize potential litigation,
and provide a clear legal standard for affected conduct. The EPA has
complied with Executive Order 12630 (53 FR 8859, March 15, 1988) by
examining the takings implications of the rule in accordance with the
``Attorney General's Supplemental Guidelines for the Evaluation of Risk
and Avoidance of Unanticipated Takings'' issued under the Executive
Order. This rule does not impose an information collection burden under
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501
et seq.).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. The EPA will submit a report containing this document
and other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication in the Federal Register. A major rule cannot take effect
until 60 days after it is published in the Federal Register. This
action is not a ``major rule'' as defined by 5 U.S.C. 804(2). This
action will be effective October 9, 2012.

List of Subjects in 40 CFR Part 271

    Environmental protection, Administrative practice and procedure,
Confidential business information, Hazardous waste, Hazardous waste
transportation, Indian lands, Intergovernmental relations, Penalties,
Reporting and recordkeeping requirements.

     Authority:  This action is issued under the authority of
sections 2002(a), 3006, and 7004(b) of the Solid Waste Disposal Act
as amended 42 U.S.C. 6912(a), 6926, 6974(b).

    Dated: July 10, 2012.
Samuel Coleman,
Acting Regional Administrator, Region 6.
[FR Doc. 2012-19309 Filed 8-9-12; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 80, Number 224 (Friday, November 20, 2015)]
[Proposed Rules]
[Pages 72663-72665]
[FR Doc No: 2015-29533]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2015-0786]
RIN 1625-AA11

Regulated Navigation Area; Columbus Day Weekend, New Year's Eve
Events, and Fourth of July Events; Biscayne Bay, Miami, FL

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes amending the Columbus Day weekend
regulated navigation area on Biscayne Bay in Miami, Florida. The
proposed amended regulation extends the Biscayne Bay regulated
navigation enforcement period to New Year's Eve and Fourth of July
events. It also expands the boundaries of the regulated navigation area
south to Turkey Point, east to Elliott Key, west to the shoreline, and
north to the Julia Tuttle Causeway. These regulations are necessary to
protect the public during Columbus Day weekend, New Year's Eve events,
and Fourth of July events; periods that have historically had a
significant concentration of persons and vessels on the waters of
Biscayne Bay. To ensure the public's safety, all vessels within the
regulated navigation area are: Required to transit the regulated
navigation area at no more than 15 knots; subject to control by the
Coast Guard; and required to follow the instructions of all law
enforcement vessels in the area. We invite your comments on this
proposed rulemaking.

DATES: Comments and related material must be received by the Coast
Guard on or before December 21, 2015.

ADDRESSES: You may submit comments identified by docket number USCG-
2015-0786 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
proposed rulemaking, call or email Petty Officer Benjamin R. Colbert,
Waterways Management Division, U.S. Coast Guard; telephone 305-535-
4317, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
E.O. Executive Order
FR Federal Register

NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background, Purpose, and Legal Basis

    Recreational boating traffic on the waters of Biscayne Bay
increases significantly during Columbus Day, New Year's Eve, and Fourth
of July events. In recent years, recreational vessel speed, especially
in crossing navigational channels, contributed to incidents that
resulted in severe injury and death. This proposed regulation seeks to
increase public safety on the waters of Biscayne Bay during holidays
known for increased vessel traffic by requiring vessels to travel at a
maximum speed of 15 knots. It also subjects recreational vessels to the
control by Coast Guard and local law enforcement authorities.
    The legal basis for this proposed rule is the Coast Guard's
authority to establish regulated navigation areas and other limited
access areas: 33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-1,
6.04-6, and 160.5; Department of Homeland Security Delegation No.
0170.1.
    The purpose of the proposed rule is to ensure the safe transit of
vessels and to protect persons, vessels, and the marine environment
within the regulated navigation area during the Columbus Day weekend,
New Year's Eve, and the Fourth of July.

III. Discussion of Proposed Rule

    The District Commander for the Coast Guard's Seventh District
proposes to establish a regulated navigational area in the Biscayne Bay
from noon on the Saturday preceding Columbus Day to 2 a.m. on Columbus
Day; from 9 p.m. December 31st until 2 a.m. January 1st; and from 7
p.m. until 2 a.m. on the night Fourth of July fireworks are scheduled
in Downtown Miami and Key Biscayne. This regulated navigation area
would encompass waters of the Biscayne Bay between Julia Tuttle
Causeway Bridge and Turkey Point in Homestead, Florida.
    All vessels within the proposed regulated navigation area are: (1)
Required to transit the regulated navigation area at no more than 15
knots; (2) subject to control by the Coast Guard; and (3) required to
follow the instructions of all law enforcement vessels in the area.

IV. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders (E.O.s) related to rulemaking. Below we summarize
our analyses based on a number of these statutes and E.O.s, and we
discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    E.O.s 12866 and 13563 direct agencies to assess the costs and
benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits.
E.O. 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This NPRM has not been designated a ``significant
regulatory action,'' under E.O. 12866. Accordingly, the NPRM has not
been reviewed by the Office of Management and Budget.
    The economic impact of this rule is not significant. For the
following reasons: (1) The regulated navigation area will be enforced
for less than 2 days each year for Columbus Day events and less for New
Year's Eve and Fourth of July events; (2) although, during the
enforcement period, vessels are required to transit the area at no more
than 15 knots, are subject to control by the Coast Guard, and are
required to follow the instructions of all law enforcement vessels in
the area, the regulated navigation area does not prohibit vessels from
transiting the area; (3) during the enforcement period, vessels will be
able to operate in waters that are not encompassed within the regulated
navigation area without the restrictions imposed by the regulated
navigation area; and (4) advance notification will be made to the local
maritime community via Local Notice to Mariners and Broadcast Notice to
Mariners.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this
proposed rule would not have a significant economic impact on a
substantial number of small entities.
    While some owners or operators of vessels intending to transit the
regulated navigation area may be small entities, for the reasons stated
in Section IV.A above this proposed rule would not have a significant
economic impact on any vessel owner or operator.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule. If the rule would affect
your small business, organization, or governmental jurisdiction and you
have questions concerning its provisions or options for compliance,
please contact the person listed in the FOR FURTHER INFORMATION CONTACT
section. The Coast Guard will not retaliate against small entities that
question or complain about this proposed rule or any policy or action
of the Coast Guard.

C. Collection of Information

    This proposed rule would not call for a new collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under E.O. 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this proposed rule under that Order and
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in E.O. 13132.
    Also, this proposed rule does not have tribal implications under
E.O. 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes. If
you believe this proposed rule has implications for federalism or
Indian tribes, please contact the person listed in the FOR FURTHER
INFORMATION CONTACT section above.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a

State, local, or tribal government, in the aggregate, or by the private
sector of $100,000,000 (adjusted for inflation) or more in any one
year. Though this proposed rule would not result in such an
expenditure, we do discuss the effects of this rule elsewhere in this
preamble.

F. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969(42 U.S.C. 4321-4370f), and have made a
preliminary determination that this action is one of a category of
actions that do not individually or cumulatively have a significant
effect on the human environment. This proposed rule involves
establishing a regulated navigation area which will be enforced for
less than 48 hours. It is categorically excluded from further review
under paragraph 34(g) of Figure 2-1 of Commandant Instruction
M16475.lD. We seek any comments or information that may lead to the
discovery of a significant environmental impact from this proposed
rule.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places, or vessels.

V. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    We encourage you to submit comments through the Federal eRulemaking
Portal at http://www.regulations.gov. If your material cannot be
submitted using http://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions. Documents mentioned in this notice, and all public
comments, are in our online docket at http://www.regulations.gov and
can be viewed by following that Web site's instructions. Additionally,
if you go to the online docket and sign up for email alerts, you will
be notified when comments are posted or a final rule is published.
    We accept anonymous comments. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, you may review a Privacy Act notice regarding the Federal
Docket Management System in the March 24, 2005, issue of the Federal
Register (70 FR 15086).

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for 33 CFR part 165 continues to read as
follows:

    Authority:  33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-
1, 6.04-6, and 160.5; Department of Homeland Security Delegation No.
0170.1.

0
2. Revise Sec.  165.779 to read as follows:

Sec.  165.779  Regulated Navigation Area; Columbus Day Weekend, New
Year's Eve Events, and Fourth of July Events; Biscayne Bay, Miami, FL.

    (a) Regulated area. The regulated navigation area encompasses all
waters of Biscayne Bay between Julia Tuttle and Turkey Point contained
within the following points: beginning at Point 1 in position
25[deg]48'43'' N, 80[deg]08'29'' W; thence south to Point 2 in position
25[deg]29'07'' N, 80[deg]10'44'' W; thence southwest to Point 3 in
position 25[deg]25'51'' N, 80[deg]12'00'' W; thence west to Point 4 in
position 25[deg]25'51'' N, 80[deg]19'42'' W; thence north to Point 5 in
position 25[deg]29'10'' N, 80[deg]20'58'' W; thence northwest to Point
6 in position 25[deg]37'35'' N, 80[deg]18'28'' W; thence northwest to
Point 7 in position 25[deg]48'44'' N, 80[deg]11'17'' W; thence back to
origin. All coordinates are North American Datum 1983.
    (b) Definition. The term ``designated representative'' means Coast
Guard Patrol Commanders, including Coast Guard coxswains, petty
officers, and other officers operating Coast Guard vessels, and
Federal, state, and local officers designated by or assisting the
Captain of the Port Miami in the enforcement of the regulated area.
    (c) Regulations. All vessels within the regulated area are required
to transit at no more than 15 knots, are subject to control by the
Coast Guard, and must follow the instructions of designated
representatives.
    (d) Enforcement period. (1) This section will be in enforced
annually on Columbus Day weekend, starting at noon on the Saturday
before Columbus Day through 2 a.m. on Monday (the Columbus Day
holiday); from 9 p.m. December 31st until 2 a.m. January 1st; and from
7 p.m. until 2 a.m. on the night Fourth of July fireworks are scheduled
in Downtown Miami and Key Biscayne.
    (2) Columbus Day is the federally recognized holiday occurring
annually on the second Monday in October.

    Dated: November 13, 2015.
S.A. Buschman,
Rear Admiral, U.S. Coast Guard, Commander, Seventh Coast Guard
District.
[FR Doc. 2015-29533 Filed 11-19-15; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 83, Number 191 (Tuesday, October 2, 2018)]
[Notices]
[Pages 49604-49606]
[FR Doc No: 2018-21374]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 33255; File No. 812-14899]

Hedge Fund Guided Portfolio Solution, et al.

September 26, 2018.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice.

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    Notice of an application under section 6(c) of the Investment
Company Act of 1940 (the ``Act'') for an exemption from sections
18(a)(2), 18(c) and 18(i) of the Act, and for an order pursuant to
section 17(d) of the Act and rule 17d-1 thereunder.

Applicants: Hedge Fund Guided Portfolio Solutions (the ``Fund''),
Grosvenor Capital Management, L.P. (the ``Advisor''), and GRV
Securities LLC (the ``Distributor'') (together, the ``Applicants'').

Summary of Application: Applicants request an order to permit certain
registered closed-end management investment companies to issue multiple
classes of shares of beneficial interest (``Shares'') with varying
sales loads and to impose asset-based service and/or distribution fees.

Filing Dates: The application was filed on April 25, 2018 and amended
on June 14, 2018, August 22, 2018 and September 6, 2018.

Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on October 20, 2018 and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Pursuant to rule 0-5 under the Act, hearing
requests should state the nature of the writer's interest, any facts
bearing upon the desirability of a hearing on the matter, the reason
for the request, and the issues contested. Persons who wish to be
notified of a hearing may request notification by writing to the
Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street NE, Washington, DC 20549-1090; Applicants, 900 North Michigan
Avenue, Suite 1100, Chicago, IL 60611.

FOR FURTHER INFORMATION CONTACT: Rochelle Kauffman Plesset, Senior
Counsel, at<PHONE_NUMBER> or David Marcinkus, Branch Chief, at (202)
551-6882 (Division of Investment Management, Chief Counsel's Office).

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

Applicants' Representations

    1. The Fund is a Delaware statutory trust that is registered under
the Act as a non-diversified, closed-end management investment company.
The Fund's objective is to seek absolute returns with low to moderate
volatility and with minimal correlation to the global equity and fixed
income markets while preserving capital. The Fund intends to pursue its
investment objective through a multi-manager, multi-strategy program of
investment in a group of limited liability private investment vehicles
(each, an ``Investment Fund''), managed by third-party investment
management firms (each, an ``Investment Manager''). The Fund seeks to
implement its investment objective by investing in Investment Funds
that will invest both long and short, in a wide range of
``alternative'' investment strategies.
    2. The Advisor, an Illinois limited partnership, is registered as
an investment adviser under the Investment Advisers Act of 1940. The
Advisor serves as an investment adviser to the Fund.
    3. The Distributor is registered with the Commission as a broker-
dealer under the Securities Exchange Act of 1934 (the ``1934 Act'') and
will act as the distributor of the Fund. The Distributor is under
common control with the Advisor and is an affiliated person, as defined
in Section 2(a)(3) of the 1940 Act, of the Advisor.
    4. Applicants seek an order to permit the Fund to issue multiple
classes of Shares, each having its own fees and expense structure and
to impose asset-based distribution and/or service fees and early
withdrawal charges.
    5. Applicants request that the order also apply to any other
registered closed-end management investment company that conducts a
continuous offering of its shares, existing now or in the future, for
which the Advisor or the Distributor, its successors, or any entity
controlling, controlled by, or under common control with the Advisor or
the Distributor or its successors,\1\ acts as investment adviser or
distributor, respectively, and which provides periodic liquidity with
respect to its Shares through tender offers conducted in compliance
with rule 13e-4 under the 1934 Act.\2\
---------------------------------------------------------------------------

    \1\ A successor in interest is limited to an entity that results
from a reorganization into another jurisdiction or a change in the
type of business organization.
    \2\ The Fund and any other investment company relying on the
requested relief will do so in a manner consistent with the terms
and conditions of the application. Applicants represent that any
person presently intending to rely on the requested relief is listed
as an Applicant.
---------------------------------------------------------------------------

    6. The Fund initially will issue a single class of Shares (the
``Initial Class''). Shares will be offered on a continuous basis at net
asset value per share. The Shares will be sold only to person who are
``accredited investors,'' as defined in Regulation D under the
Securities Act of 1933. The Fund, as a closed-end investment company,
does not continuous redeem Shares as does an open-end management
investment company. The Shares will not be listed on any securities
exchange and do not trade on an over-the-counter system such as NASDAQ.
Applicants do not expect that any secondary market will ever develop
for the Shares.
    7. If the requested relief is granted, the Fund may offer multiple
classes of Shares, in addition to the Initial Class. Because of the
different distribution fees, service fees, and any other class expenses
that may be attributable to the different classes, the net income
attributable to, and any dividends payable on, each class of Shares may
differ from each other from time to time.

    8. Applicants state that, from time to time, the Fund's board of
Trustees (the ``Board,'' and each member a ``Trustee'') may create and
offer additional classes of Shares, or may vary the characteristics
described of the Initial Class Shares, including without limitation, in
the following respects: (1) The amount of fees permitted by different
distribution plans or different service fee arrangements; (2) voting
rights with respect to a distribution and service plan of a class; (3)
different class designations; (4) the impact of any class expenses
directly attributable to a particular class of Shares allocated on a
class basis as described in the Application; (5) differences in any
dividends and net asset values per Share resulting from differences in
fees under a distribution and service plan or in class expenses; (6)
any sales load structure; and (7) any conversion features, as permitted
under the Act.
    9. Applicants state that the Initial Fund does not currently intend
to impose an early withdrawal charge. However, in the future a Fund may
impose an early withdrawal charge on shares submitted for repurchase
that have been held less than a specified period. The Fund may waive
the early withdrawal charge for certain categories of shareholders or
transactions to be established from time to time. Applicants state that
each Fund will apply the early withdrawal charge (and any waivers or
scheduled variations of the early withdrawal charge) uniformly to all
shareholders in a given class and consistently with the requirements of
rule 22d-1 under the Act as if the Fund was an open-end investment
company.
    10. Applicants state that, in order to provide a limited degree of
liquidity to shareholders, the Fund will from time to time offer to
repurchase Shares pursuant to written tenders by shareholders in
accordance with Rule 13e-4 under the 1934 Act (``Repurchases'').
Repurchases of the Fund's Shares will be made at such times, in such
amounts, and on such terms as may be determined by the Fund's Board in
its sole discretion. In determining whether the Fund should offer to
Repurchase Shares, the Board will consider a variety of operational,
business and economic factors. The Advisor expects to ordinarily
recommend that the Board authorize the Fund to offer to Repurchase
Shares from shareholders quarterly with March 31, June 30, September 30
and December 31 valuation dates.
    11. Applicants represent that any asset-based service and/or
distribution fees will comply with the provisions of Rule 2341 of the
Rules of the Financial Industry Regulatory Authority (``FINRA Rule
2341'') as if that rule applied to the Fund.\3\ Applicants also
represent that the Fund will disclose in its prospectus the fees,
expenses and other characteristics of each class of Shares offered for
sale by the prospectus, as is required for open-end, multiple class
funds under Form N-1A.\4\ As is required for open-end funds, the Fund
will disclose its expenses in shareholder reports, and describe any
arrangements that result in breakpoints in or eliminations of sales
loads in its prospectus.\5\ In addition, Applicants will comply with
applicable enhanced fee disclosure requirements for fund of funds,
including registered funds of hedge funds.\6\
---------------------------------------------------------------------------

    \3\ Any references to FINRA Rule 2341include any successor or
replacement rule that may be adopted by the Financial Industry
Regulatory Authority (``FINRA'').
    \4\ In all respects other than class-by-class disclosure, the
Fund will comply with the requirements of Form N-2.
    \5\ See Shareholder Reports and Quarterly Portfolio Disclosure
of Registered Management Investment Companies, Investment Company
Act Release No. 26372 (Feb. 27, 2004) (adopting release) (requiring
open-end investment companies to disclose fund expenses in
shareholder reports); and Disclosure of Breakpoint Discounts by
Mutual Funds, Investment Company Act Release No. 26464 (June 7,
2004) (adopting release) (requiring open-end investment companies to
provide prospectus disclosure of certain sales load information).
    \6\ Fund of Funds Investments, Investment Company Act Rel. Nos.
26198 (Oct. 1, 2003) (proposing release) and 27399 (Jun. 20, 2006)
(adopting release). See also Rules 12d1-1, et seq. of the Act.
---------------------------------------------------------------------------

    12. The Fund and the Distributor will comply with any requirements
that may be adopted by the Commission or FINRA regarding disclosure at
the point of sale and in transaction confirmations about the costs and
conflicts of interest arising out of the distribution of open-end
investment company shares, and regarding prospectus disclosure of sales
loads and revenue sharing arrangements as if those requirements applied
to the Fund and the Distributor. The Fund or the Distributor will also
contractually require that any other distributor of the Fund's Shares
comply with such requirements in connection with the distribution of
Shares of the Fund.
    13. The Fund will allocate all expenses incurred by it among the
various classes of Shares based on the net assets of the Fund
attributable to each class, except that the net asset value and
expenses of each class will reflect distribution fees, service fees,
and any other incremental expenses of that class. Expenses of the Fund
allocated to a particular class of Shares will be borne on a pro rata
basis by each outstanding Share of that class. Applicants state that
the Fund will comply with the provisions of rule 18f-3 under the Act as
if it were an open-end investment company.
    14. The Fund does not intend to offer any exchange privilege or
conversion feature, but any such privilege or feature introduced in the
future will comply with rule 11a-1, rule 11a-3, and rule 18f-3 as if
the Fund were an open-end investment company.

Applicants' Legal Analysis

Multiple Classes of Shares

    1. Section 18(a)(2)(A) and (B) makes it unlawful for a registered
closed-end investment company to issue a senior security that is a
stock unless (a) immediately after such issuance it will have an asset
coverage of at least 200% and (b) provision is made to prohibit the
declaration of any distribution, upon its common stock, or the purchase
of any such common stock, unless in every such case such senior
security has at the time of the declaration of any such distribution,
or at the time of any such purchase, an asset coverage of at least 200%
after deducting the amount of such distribution or purchase price, as
the case may be. Applicants state that the creation of multiple classes
of shares of the Funds may violate section 18(a)(2) because the Funds
may not meet such requirements with respect to a class of shares that
may be a senior security.
    2. Section 18(c) of the Act provides, in relevant part, that a
registered closed-end investment company may not issue or sell any
senior security if, immediately thereafter, the company has outstanding
more than one class of senior security. Applicants state that the
creation of multiple classes of Shares of the Fund may be prohibited by
section 18(c), as a class may have priority over another class as to
payment of dividends because shareholders of different classes would
pay different fees and expenses.
    3. Section 18(i) of the Act provides that each share of stock
issued by a registered management investment company will be a voting
stock and have equal voting rights with every other outstanding voting
stock. Applicants state that permitting multiple classes of Shares of
the Fund may violate section 18(i) of the Act because each class would
be entitled to exclusive voting rights with respect to matters solely
related to that class.
    4. Section 6(c) of the Act provides that the Commission may exempt
any person, security or transaction or any class or classes of persons,
securities or transactions from any provision of the Act, or from any
rule or regulation under the Act, if and to the extent such

exemption is necessary or appropriate in the public interest and
consistent with the protection of investors and the purposes fairly
intended by the policy and provisions of the Act. Applicants request an
exemption under section 6(c) from sections 18(a)(2), 18(c) and 18(i) to
permit the Fund to issue multiple classes of Shares.
    5. Applicants submit that the proposed allocation of expenses
relating to distribution and voting rights among multiple classes is
equitable and will not discriminate against any group or class of
shareholders. Applicants submit that the proposed arrangements would
permit the Fund to facilitate the distribution of its Shares and
provide investors with a broader choice of shareholder options.
Applicants assert that the proposed closed-end investment company
multiple class structure does not raise the concerns underlying section
18 of the Act to any greater degree than open-end investment companies'
multiple class structures that are permitted by rule 18f-3 under the
Act. Applicants state that the Fund will comply with the provisions of
rule 18f-3 as if it were an open-end investment company.

Early Withdrawal Charge

    1. Applicants state that the early withdrawal charges they intend
to impose are functionally similar to contingent deferred sales loads
imposed by open-end investment companies under rule 6c-10 under the
Act. Rule 6c-10 permits open-end investment companies to impose
contingent deferred sales loads, subject to certain conditions.
Applicants note that rule 6c-10 is grounded in policy considerations
supporting the employment of contingent deferred sales loads where
there are adequate safeguards for the investor and state that the same
policy considerations support imposition of early withdrawal charges in
the interval fund context. In addition, Applicants state that early
withdrawal charges may be necessary for the Fund's Distributor to
recover distribution costs. Applicants represent that any early
withdrawal charge imposed by a Fund will comply with rule 6c-10 under
the Act as if the rule were applicable to closed-end investment
companies. Each Fund will disclose early withdrawal charges in
accordance with the requirements of Form N-1A concerning contingent
deferred sales loads.

Asset-Based Service and/or Distribution Fees

    1. Section 17(d) of the Act and rule 17d-1 under the Act prohibit
an affiliated person of a registered investment company or an
affiliated person of such person, acting as principal, from
participating in or effecting any transaction in connection with any
joint enterprise or joint arrangement in which the investment company
participates unless the Commission issues an order permitting the
transaction. In reviewing applications submitted under section 17(d)
and rule 17d-1, the Commission considers whether the participation of
the investment company in a joint enterprise or joint arrangement is
consistent with the provisions, policies and purposes of the Act, and
the extent to which the participation is on a basis different from or
less advantageous than that of other participants.
    2. Rule 17d-3 under the Act provides an exemption from section
17(d) and rule 17d-1 to permit open-end investment companies to enter
into distribution arrangements pursuant to rule 12b-1 under the Act.
Applicants request an order under section 17(d) and rule 17d-1 under
the Act to permit the Fund to impose asset-based service and/or
distribution fees. Applicants have agreed to comply with rules 12b-1
and 17d-3 as if those rules applied to closed-end investment companies,
which they believe will resolve any concerns that might arise in
connection with a Fund financing the distribution of its shares through
asset-based service and/or distribution fees.
    3. For the reasons stated above, Applicants submit that the
exemptions requested are necessary and appropriate in the public
interest and are consistent with the protection of investors and
purposes fairly intended by the policy and provisions of the 1940 Act.
Applicants also believe that the requested relief meets the standards
for relief in section 17(d) of the 1940 Act and rule 17d-1 thereunder.

Applicants' Condition

    Applicants agree that any order granting the requested relief will
be subject to the following condition:
    Applicants will comply with the provisions of rules 6c-10, 12b-1,
17d-3, 18f-3, 22d-1, and where applicable, 11a-3 under the Act, as
amended from time to time or replaced, as if those rules applied to
closed-end management investment companies, and will comply with FINRA
Rule 2341, as amended from time to time, as if that rule applied to all
closed-end management investment companies.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21374 Filed 10-1-18; 8:45 am]
 BILLING CODE 8011-01-P