[Federal Register Volume 80, Number 207 (Tuesday, October 27, 2015)]
[Rules and Regulations]
[Pages 65655-65660]
[FR Doc No: 2015-27170]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R10-OAR-2011-0799; FRL-9936-03-Region 10]

Air Plan Approval; OR; Portland, Medford, Salem; Clackamas,
Multnomah, Washington Counties; Gasoline Dispensing Facilities

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking direct
final action to approve three state implementation plan (SIP) revisions
submitted by the State of Oregon Department of Environmental Quality
(Oregon or ODEQ) and a specific portion of a fourth SIP submittal
identified in a supplementary letter. These SIP submittals primarily
include rule amendments related to control measures for volatile
organic compounds from gasoline dispensing facilities in the Portland-
Vancouver, Medford-Ashland, and Salem-Keizer Area Transportation Study
air quality management areas, as well as all of Clackamas, Multnomah,
and Washington counties. The EPA received the SIP submittals from the
ODEQ on February 5, 2009, November 1, 2010, May 25, 2011, and April 20,
2015, and the supplementary letter on September 18, 2015. The EPA is
approving the SIP submittals because they are consistent with the
requirements of the Clean Air Act (Act or CAA).

DATES: This rule is effective on December 28, 2015, without further
notice, unless the EPA receives adverse comment by November 27, 2015.
If the EPA receives adverse comment, we will publish a timely
withdrawal in the Federal Register informing the public that the rule
will not take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R10-
OAR-2011-0799, by any of the following methods:
     Federal eRulemaking Portal http://www.regulations.gov:
Follow the on-line instructions for submitting comments.
     Email<EMAIL_ADDRESS>     Mail: Claudia Vergnani Vaupel, EPA Region 10, Office of
Air, Waste and Toxics, AWT-150, 1200 Sixth Avenue, Suite 900, Seattle
WA, 98101.
     Hand Delivery/Courier: EPA Region 10, 1200 Sixth Avenue,
Suite 900, Seattle WA, 98101. Attention: Claudia Vergnani Vaupel,
Office of Air, Waste and Toxics, AWT-150. Such deliveries are only
accepted during normal hours of operation, and special arrangements
should be made for deliveries of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R10-OAR-
2011-0799. The EPA's policy is that all comments received will be
included in the public docket without change and may be made available
online at http://www.regulations.gov, including any personal
information provided, unless the comment includes information claimed
to be Confidential Business Information (CBI) or other information
whose disclosure is restricted by statute. Do not submit information
that you consider to be CBI or otherwise protected through http://www.regulations.gov or email. The http://www.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 http://www.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.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy. Publicly available docket
materials are available at http://www.regulations.gov or at EPA Region
10, Office of Air, Waste, and Toxics, AWT-150, 1200 Sixth Avenue,
Seattle, Washington 98101. The EPA requests that you contact the person
listed in the FOR FURTHER INFORMATION CONTACT section to schedule your
inspection. The Regional Office's official hours of business are Monday
through Friday, 8:30 a.m. to 4:30 p.m., excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Claudia Vergnani Vaupel at (206) 553-
6121<EMAIL_ADDRESS>or the above EPA, Region 10 address.

SUPPLEMENTARY INFORMATION: Throughout this document wherever ``we'',
``us'' or ``our'' is used, it is intended to refer to the EPA.

I. Introduction

    Section 110 of the CAA requires states to develop and submit to the
EPA SIPs to ensure that state air quality meets National Ambient Air
Quality Standards (NAAQS). Each federally-approved SIP protects air
quality primarily by addressing air pollution at its point of origin
through air pollution regulations and control strategies. The EPA-
approved SIP provisions and control strategies are federally
enforceable. States revise the SIP as needed and submit revisions to
the EPA for review and approval.

II. Background

    This action primarily addresses Oregon's SIP submittals dated
February 5, 2009, November 1, 2010, and May 25, 2011. These submittals
include amendments to rules that control volatile organic compound
(VOC) emissions from gasoline dispensing facilities in the Air Quality
Management Areas (AQMAs) of Portland-Vancouver (which includes portions
of Clackamas, Multnomah, and Washington counties), Medford-Ashland, and
Salem-Keizer Area Transportation Study (SKATS), as well as all of
Clackamas, Multnomah, and Washington counties. The VOC rules were
previously approved into the Oregon SIP to address Reasonably Available
Control Technology (RACT) requirements for ozone nonattainment areas.
(See for example 45 FR 42265, June 24, 1980). The VOC RACT rules
support continued attainment and maintenance of the ozone NAAQS. They
address emissions during the delivery of gasoline from gasoline cargo
tank trucks to gasoline dispensing facility storage tanks as well as
the emissions during the refueling of individual vehicles at gasoline
dispensing facilities. During delivery, the emission controls generally
include submerged fill pipes and stage I vapor balance systems. Stage I
vapor balance systems capture vapors and return them to the gasoline
cargo tank truck to keep the vapors from being emitted to the air.
During the refueling of individual vehicles, special fuel dispensing
nozzles at the pump (known as ``stage II'') capture vapors and direct
them into the gasoline dispensing facility storage tanks.
    In general, the February 5, 2009 submittal amended the VOC rules to
consolidate them with Oregon's then newly adopted rules that
implemented the Federal National Emission Standards for Hazardous Air
Pollutants (NESHAP) for gasoline dispensing facilities, (40 CFR part
63, subpart CCCCCC) (gasoline dispensing facility NESHAP). The effect
of Oregon's rule amendments was to incorporate the substantive stage I
VOC RACT rule requirements for gasoline dispensing facilities in Oregon
Administrative Rules (OAR) 340 division 232 ``Emission Standards for
VOC Point Sources'' and division 242 ``Rules Applicable to the Portland
Area'' into division 244 ``Oregon Federal Hazardous Air Pollutant
Program,'' and to incorporate the permitting requirements for these
facilities into division 216 ``Air Contaminant Discharge Permits.'' The
November 1, 2010 and May 25, 2011 submittals made additional amendments
to the rules for gasoline dispensing facilities. These three submittals
also include minor amendments to other rules in divisions 200 ``State
of Oregon Clean Air Act Implementation Plan,'' 209 ``Public Notice
Categories and Timing,'' and 210 ``Registration in General''.
    The April 20, 2015 submittal consists of comprehensive revisions to
the ODEQ's air permitting and other air rules, including revisions to
the rules for gasoline dispensing facilities in divisions 242 and 244.
In a September 18, 2015 supplementary letter, the ODEQ requested that
the EPA approve specific division 242 and 244 rules to ensure the most
current version of the division 242 and 244 rules for gasoline
dispensing facilities be approved into the SIP. Therefore, in this
action, we are reviewing and acting only on the division 242 and 244
rule amendments in the April 20, 2015 submittal that were identified in
the supplementary letter. We are not reviewing or acting on any other
portion of the April 20, 2015 submittal at this time, but will address
the remainder of that submittal in a future action. In addition, the
ODEQ requested that the EPA approve the identified division 244 rules
for gasoline dispensing facilities that replaced OAR<PHONE_NUMBER> and
OAR<PHONE_NUMBER> in the February 5, 2009 submittal only to the extent
they apply to sources in the Portland-Vancouver, Medford-Ashland, and
SKATS AQMAs, as well as all of Clackamas, Multnomah, and Washington
counties.

III. The EPA's Evaluation

    In the February 5, 2009 submittal, the ODEQ repealed the SIP-
approved rule OAR<PHONE_NUMBER> that applied to gasoline dispensing
facilities in the Portland-Vancouver, Medford-Ashland, and SKATS AQMAs.
The ODEQ also removed references to stage I vapor balance systems from
the SIP-approved rules OAR<PHONE_NUMBER> and -0520, which applied to
gasoline dispensing facilities in Clackamas, Multnomah and Washington
counties, but retained the stage II vapor collection system
requirements in those rules. The stage I vapor balance requirements
contained in OAR<PHONE_NUMBER>, OAR<PHONE_NUMBER> and OAR<PHONE_NUMBER>
were added to sections of new rules in division 244 (-0030, -0234, -
0238, -0240, -0242, and -0244) and to amended sections of existing
rules in division 216 (-0020, including tables 1 and 2, -0040, and -
0060). The ODEQ made further amendments to the rules for gasoline
dispensing facilities in the subsequent submittals, as explained in
section II.
    In addition to the VOC RACT gasoline dispensing facility rule
amendments, the SIP submittals also include amendments to the following
rules: OAR<PHONE_NUMBER>,<PHONE_NUMBER>,<PHONE_NUMBER>,<PHONE_NUMBER>, 340-
210-0120,<PHONE_NUMBER>, and<PHONE_NUMBER>. A summary discussion of the
rule amendments is provided below. A table that identifies which new
rules address

the SIP-approved gasoline dispensing facility provisions is included in
the docket for this action.

A. Emission Control Requirements

    As in the SIP-approved rules, the amended rules in OAR 340
divisions 244 and 216 continue to apply to the delivery of gasoline to
a gasoline dispensing facility storage tank, require submerged filling
and have specific piping requirements. The amended rules exempt all
gasoline storage tanks with a capacity of less than 250 gallons from
the submerged fill requirements. For tanks installed on or before
October 14, 1999, this is more stringent than the SIP-approved rules
which exempted tanks with a capacity of 1,500 gallons or less. However,
the SIP-approved rules required submerged fill for all tanks installed
after October 14, 1999. Thus, for those tanks with a capacity less than
250 gallons, the amended rules are less stringent. The ODEQ provided
emissions estimates for these small tanks exempt from the submerged
fill requirements under the amended rules and explained that, in
general, such sources use the gasoline for their own equipment (e.g.,
golf courses to fuel golf carts or a facility that has a gasoline
powered forklift) rather than for resale, and that not many tanks are
under this size threshold. The ODEQ estimates increases in VOC
emissions in the AQMAs from this minor exemption to be 55 pounds, or
0.027 tons, per year.
    The vapor balance system requirements in the amended rules are
similar to the SIP-approved rules, including requirements that
equipment be vapor tight, maintained in good working order, and
properly connected. Both the amended and the SIP-approved rules exempt
tanks with floating roofs from the vapor balance system requirements.
Similar to the SIP-approved rule, the amended rules require that vapor
balance systems meet certain specifications and demonstrate compliance.
The amended rules cite more recently adopted test methods for
compliance than the SIP-approved test methods. In addition, the new
rules require a compliance demonstration every three years after the
initial compliance demonstration for gasoline dispensing facilities
with a monthly throughput of 100,000 gallons of gasoline or more. This
is more stringent than the SIP-approved rule. In the Portland-
Vancouver, Medford-Ashland, and SKATS AQMAs, the amended rules continue
to exempt gasoline storage tanks that have a capacity of 1,500 gallons
or less from the vapor balance system requirements. However, in
Clackamas, Multnomah, and Washington counties, the requirements for
vapor balance systems are slightly amended. In these counties, the SIP-
approved rules required a vapor balance system for all tanks if the
gasoline dispensing facility had an annual throughput of 120,000
gallons of gasoline or more regardless of the storage capacity of the
tank. The amended rules exempt gasoline storage tanks that have a
capacity less than 250 gallons from the vapor balance system
requirements. The EPA does not consider this to be a relaxation of the
SIP-approved rules because gasoline dispensing facilities that have an
annual throughput of 120,000 gallons of gasoline or more would be
expected to have storage tanks that are larger than 250 gallons.
    The amended rules do not specify that training and written
instructions be provided to the operators of gasoline dispensing
facilities and gasoline transport vehicles as in the SIP-approved
rules. The management practices for gasoline dispensing facilities and
cargo tanks included in OAR<PHONE_NUMBER> tables 2 and 3 provide a
similar level of assurance, however, that equipment is operated
properly. In addition, the new rules for gasoline dispensing facilities
in division 244 also include other requirements that are not currently
in the SIP but are based on the requirements of the gasoline dispensing
facility NESHAP. These include a specific timeframe for demonstrating
initial compliance with the vapor balance system, demonstrating monthly
throughput, general duties to minimize emissions, notifications,
recordkeeping, and reporting. These requirements are consistent with
the gasoline dispensing facility NESHAP and will either reduce VOC
emissions or enhance the enforceability of VOC SIP requirements for
gasoline dispensing facilities. Thus, while a few aspects of the
amended requirements for gasoline dispensing facilities are less
stringent than in the existing SIP, given the overall strengthening of
the requirements for gasoline dispensing facilities in the identified
areas under the amended rules, the EPA finds that the revisions to the
requirements for gasoline dispensing facilities in the Portland-
Vancouver, Medford-Ashland, and SKATS AQMAs and in Clackamas,
Multnomah, and Washington counties will not interfere with any
applicable requirement concerning attainment or maintenance of the
NAAQS or any other applicable CAA requirements. The EPA is therefore
approving these requirements for the Portland-Vancouver, Medford-
Ashland, and SKATS AQMAs as well as all of Clackamas, Multnomah, and
Washington counties.\1\
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    \1\ The ODEQ has excluded from its submittal the following
provisions in the emissions standards for gasoline dispensing
facilities in division 244 that do not correspond to current SIP
requirements for gasoline dispensing facilities or to provisions in
the gasoline dispensing facility NESHAP: OAR<PHONE_NUMBER>(1)(a) and
(2)(c),<PHONE_NUMBER>(1)(b) and (c), and<PHONE_NUMBER> (4)(c) and (d).
The ODEQ has also requested that the EPA approve the definitions in
OAR<PHONE_NUMBER> only to the extent needed to implement the
requirements for gasoline dispensing facilities in the division 244
requirements approved into the SIP.
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B. Permitting Rules

    The General Air Contaminant Discharge Permits (ACDPs) rules in the
amended OAR division 216 have replaced the vapor balance system (stage
I) and stage II vapor collection permit requirements in the SIP-
approved rules. The EPA has approved the submitted amendments to
division 216 (See 76 FR 80747, December 27, 2011). Like the SIP-
approved rules, the amended rules include equivalent \2\ permitting
requirements, permitting fees, and a 10 year limit on the permit. Other
administrative requirements, however, such as the requirement to notify
the ODEQ of a change of ownership, the date for submitting renewal
applications, and the requirement to keep a copy of the permit on site
at the facility, are included in the SIP-approved rule, but are not
included in the ODEQ's amended permit provisions for gasoline
dispensing facilities. The EPA notes that the ODEQ includes these types
of provisions in its general permit for gasoline dispensing facilities.
Given the administrative nature of such requirements, the EPA concludes
that the revisions to the permitting requirements for gasoline
dispensing facilities will not interfere with any applicable
requirement concerning attainment or maintenance of the NAAQS or any
other applicable CAA requirements.
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    \2\ In the amended rules, stage I and stage II permits are
required for gasoline dispensing facilities with a monthly
throughput of 10,000 gallons of gasoline or more. We consider this
requirement to be essentially equivalent to the SIP-approved rule,
which (a) required vapor balance systems (stage I) and permits for
gasoline dispensing facilities with greater than 1,500 gallon
capacity as explained in our May 10, 2000 action (65 FR 29956), and
(b) required stage II systems and permits for gasoline dispensing
facilities (subject to those requirements in OAR<PHONE_NUMBER>) with
an annual throughput exceeding 600,000 gallons.
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C. Rule Amendments that the EPA is Not Approving

    The February 5, 2009, November 1, 2010, and May 25, 2011 submittals
also include amendments to other rules that

we are not approving in this action. The division 210 ``Registration in
General'' rules have been superseded by a more recent submittal and
have been approved by the EPA (See 78 FR 37124, June 20, 2013). The
April 20, 2015 submittal superseded OAR<PHONE_NUMBER> and OAR 340-216-
0062, and we will address them in a future action. We are also not
approving OAR<PHONE_NUMBER>, which was included in the February 5, 2009
submittal, because this rule addresses the authority of Lane Regional
Air Protection Agency (LRAPA) to implement requirements within its
jurisdiction, and LRAPA does not have jurisdiction in the geographic
areas covered by this SIP approval. Finally, OAR<PHONE_NUMBER> describes
the State's procedures for adopting its SIP and references all of the
state air regulations that have been adopted by the ODEQ for approval
into the SIP (as a matter of state law), whether or not they have yet
been submitted to or approved by the EPA. The EPA is not approving the
revisions to this provision in these SIP submittals because the
federally-approved SIP consists only of regulations and other
requirements that have been submitted by the ODEQ and approved by the
EPA.

IV. Final Action

    The EPA is taking the following action on the amendments to OAR
Chapter 340 that were included in the February 5, 2009, November 1,
2010, and May 25, 2011 submittals and the division 242 and 244 rules in
the April 20, 2015 submittal that were identified by the ODEQ for our
review in the September 18, 2015 supplementary letter. We are acting on
the most recent version of the rules in the submittal identified in
parentheses below. Further action on the earlier adopted versions of
these rules included in the submittals is not required because they are
no longer in effect and have been superseded by the most recent
submittal.
    We are approving the following rule amendments: OAR<PHONE_NUMBER>
(repeal) (February 5, 2009 submittal); OAR<PHONE_NUMBER>, -0510, -0520
(April 20, 2015 submittal as identified in the September 18, 2015
supplementary letter); \3\ OAR<PHONE_NUMBER>,\4\ -0232, -0234, -0236, -
0238 (except (1)(a) and (2)(c)),\5\ -0239, -0240, -0242 (including
tables 2 and 3), -0244 (except (1)(b) and (c)),\6\ -0246, -0248 (except
(4)(c) and (d)),\7\ -0250 (April 20, 2015 submittal as identified in
the September 18, 2015 supplementary letter); and OAR<PHONE_NUMBER>
(February 5, 2009 submittal). At the ODEQ's request, the EPA is
approving the identified requirements in division 244 only for sources
in the Portland-Vancouver, Medford-Ashland, and SKATS AQMAs as well as
all of Clackamas, Multnomah, and Washington counties. The EPA notes
that, although Oregon's rules for gasoline dispensing facilities also
regulate emissions of hazardous air pollutants, the EPA is approving
these provisions for the purpose of regulating VOC emissions from these
facilities. The EPA's authority to approve SIPs extends to provisions
related to attainment and maintenance of the NAAQS and carrying out
other specific requirements of section 110 of the CAA.
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    \3\ By its terms, division 242 applies only in Clackamas,
Multnomah, and Washington Counties.
    \4\ As discussed above, the ODEQ has requested that the EPA
approve the definitions in OAR<PHONE_NUMBER> only to the extent
needed to implement the requirements for gasoline dispensing
facilities in division 244 that are approved into the SIP.
    \5\ As discussed above, the ODEQ has excluded OAR 240-244-
0238(1)(a) and (2)(c) from its submittal.
    \6\ As discussed above, the ODEQ has excluded OAR 340-244-
0240(1)(b) and (c) from its submittal.
    \7\ As discussed above, the ODEQ has excluded OAR 340-244-
0242(4)(c) and (d) from its submittal.
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    As discussed above, we are not approving OAR<PHONE_NUMBER> (May 25,
2011); OAR<PHONE_NUMBER>, OAR<PHONE_NUMBER>, -0110, -0120, and OAR 340-
216-0062, -0064 (November 1, 2010 submittal); OAR<PHONE_NUMBER>, -0060
(May 25, 2011); or OAR<PHONE_NUMBER> (February 5, 2009 submittal).

V. Incorporation by Reference

    In this rule, the EPA is approving regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, the EPA is incorporating by reference the Oregon regulations (OAR
Chapter 340) described in the amendments to 40 CFR part 52 set forth
below. The EPA has made, and will continue to make, these documents
generally available electronically through www.regulations.gov and/or
in hard copy at the appropriate EPA office (see the ADDRESSES section
of this preamble for more information).

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, the EPA's role is to approve state choices,
provided that they meet the criteria 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 Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     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 13132 (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 this action does not involve technical standard; and
     does not provide the 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).
    The SIP is not approved to apply on any Indian reservation land or
in any other area where the EPA or an Indian tribe has demonstrated
that a tribe has jurisdiction. In those areas of Indian country, the
rule does not have tribal implications and will not impose substantial
direct costs on tribal governments or preempt tribal law as specified
by Executive Order 13175 (65 FR 67249, November 9, 2000).
    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 action 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 of
the rule 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).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by December 28, 2015. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. Parties with objections to this direct final rule are
encouraged to file a comment in response to the parallel notice of
proposed rulemaking for this action published in the proposed rules
section of today's Federal Register, rather than file an immediate
petition for judicial review of this direct final rule, so that the EPA
can withdraw this direct final rule and address the comment in the
proposed rulemaking. This action may not be challenged later in
proceedings to enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Ozone,
Reporting and recordkeeping requirements, Sulfur oxides, Volatile
organic compounds.

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

    Dated: September 25, 2015.
Michelle Pirzadeh,
Acting Regional Administrator, Region 10.

    For the reasons stated in the preamble, 40 CFR part 52 is amended
as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

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

Subpart MM--Oregon

0
2. In Sec.  52.1970, paragraph (c), Table 2--EPA Approved Oregon
Administrative Rules (OAR), is amended by:
0
a. Removing the entry 232-0070;
0
b. Revising entries 242-0500; 242-0510; 242-0520;
0
c. Adding a header titled ``Division 244--Oregon Federal Hazardous Air
Pollutant Program'' after the entry for ``242-0790'', and adding
entries 244-0030, 244-0232, 244-0234, 244-0236, 244-0238, 244-0239,
244-0240, 244-0242, 244-0244, 244-0246, 244-0248, 244-0250, and 244-
0252 in numerical order and
0
d. Adding footnotes 1 and 2, at the end of the table.
    The revisions and additions read as follows:

Sec.  52.1970  Identification of plan.

* * * * *
    (c) * * *

                             Table 2--EPA Approved Oregon Administrative Rules (OAR)
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                                                           State
        State citation             Title/subject      effective date    EPA approval date       Explanations
----------------------------------------------------------------------------------------------------------------
                                Chapter 340--Department of Environmental Quality
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                               Division 242--Rules Applicable to the Portland Area
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                        Gasoline Vapors from Gasoline Transfer and Dispensing Operations
----------------------------------------------------------------------------------------------------------------
242-0500.....................  Purpose and                 4/16/2015  10/27/2015 [Insert    ....................
                                Applicability.                         Federal Register
                                                                       citation].
242-0510.....................  Definitions..........       4/16/2015  10/27/2015 [Insert    ....................
                                                                       Federal Register
                                                                       citation].
242-0520.....................  General Provisions...       4/16/2015  10/27/2015 [Insert    ....................
                                                                       Federal Register
                                                                       citation].

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                        Division 244--Oregon Federal Hazardous Air Pollutant Program 1 2
----------------------------------------------------------------------------------------------------------------
                                    General Provisions for Stationary Sources
----------------------------------------------------------------------------------------------------------------
244-0030.....................  Definitions..........       4/16/2015  10/27/2015 [Insert    Only to the extent
                                                                       Federal Register      needed to implement
                                                                       citation].            the requirements
                                                                                for gasoline
                                                                                dispensing
                                                                                facilities in
                                                                                division 244 that
                                                                                are approved into
                                                                                the SIP.
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                              Emission Standards for Gasoline Dispensing Facilities
----------------------------------------------------------------------------------------------------------------
244-0232.....................  Purpose..............       4/16/2015  10/27/2015 [Insert    ....................
                                                                       Federal Register
                                                                       citation].

244-0234.....................  Affected Sources.....       4/16/2015  10/27/2015 [Insert    ....................
                                                                       Federal Register
                                                                       citation].
244-0236.....................  Affected Equipment or       4/16/2015  10/27/2015 [Insert    ....................
                                Processes.                             Federal Register
                                                                       citation].
244-0238.....................  Compliance Dates.....       4/16/2015  10/27/2015 [Insert    Except (1)(a) and
                                                                       Federal Register      (2)(c).
                                                                       citation].
----------------------------------------------------------------------------------------------------------------
                                  Emission Limitations and Management Practices
----------------------------------------------------------------------------------------------------------------
244-0239.....................  General Duties to           4/16/2015  10/27/2015 [Insert    ....................
                                Minimize Emissions.                    Federal Register
                                                                       citation].
244-0240.....................  Work Practice and           4/16/2015  10/27/2015 [Insert    ....................
                                Submerged Fill                         Federal Register
                                Requirements.                          citation].
244-0242.....................  Vapor Balance               4/16/2015  10/27/2015 [Insert    Including tables 2
                                Requirements.                          Federal Register      and 3.
                                                                       citation].
----------------------------------------------------------------------------------------------------------------
                                       Testing and Monitoring Requirements
----------------------------------------------------------------------------------------------------------------
244-0244.....................  Testing and                 4/16/2015  10/27/2015 [Insert    Except (1)(b) and
                                Monitoring                             Federal Register      (c).
                                Requirements.                          citation].
----------------------------------------------------------------------------------------------------------------
                                       Notifications, Records, and Reports
----------------------------------------------------------------------------------------------------------------
244-0246.....................  Notifications........       4/16/2015  10/27/2015 [Insert    ....................
                                                                       Federal Register
                                                                       citation].
244-0248.....................  Recordkeeping               4/16/2015  10/27/2015 [Insert    Except (4)(c) and
                                Requirements.                          Federal Register      (d).
                                                                       citation].
244-0250.....................  Reporting                   4/16/2015  10/27/2015 [Insert    ....................
                                Requirements.                          Federal Register
                                                                       citation].
244-0252.....................  General Provision          12/31/2008  10/27/2015 [Insert    ....................
                                Applicability.                         Federal Register
                                                                       citation].

                                                  * * * * * * *
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\1\ Only for the Portland-Vancouver, Medford-Ashland, and Salem-Keizer Area Transportation Study air quality
  management areas, as well as all of Clackamas, Multnomah, and Washington counties.
\2\ This approval is for the purpose of regulating volatile organic compound (VOC) emissions.

* * * * *
[FR Doc. 2015-27170 Filed 10-26-15; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 83, Number 201 (Wednesday, October 17, 2018)]
[Notices]
[Pages 52602-52605]
[FR Doc No: 2018-22541]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 33268; 812-14903]

Destra International & Event-Driven Credit Fund and Destra
Capital Advisors LLC; Notice of Application

October 11, 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, under sections 6(c) and 23(c) of
the Act for an exemption from rule 23c-3 under the Act, and for an
order pursuant to section 17(d) of the Act and rule 17d-1 under the
Act.

Summary of Application: Applicants request an order to permit certain
registered closed-end management investment companies to issue multiple
classes of shares and to impose asset-based distribution and/or service
fees, early withdrawal charges (``EWCs''), and early repurchase fees.

Applicants: Destra International & Event-Driven Credit Fund (the
``Initial Fund'') and Destra Capital Advisors LLC (the ``Adviser'').

Filing Dates: The application was filed on May 4, 2018 and an amendment
on August 22, 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 November 5, 2018, and should be accompanied by proof of
service on the 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, 444 West Lake Street,
Suite 1700, Chicago, IL 60606.

FOR FURTHER INFORMATION CONTACT: Benjamin Kalish, Attorney-Advisor, at
(202) 551-7361 or Parisa Haghshenas, Branch Chief, at<PHONE_NUMBER>
(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 for an
applicant using the Company name box, at http://www.sec.gov/search/search.htm or by calling<PHONE_NUMBER>.

Applicants' Representations

    1. The Initial Fund is a Delaware statutory trust that is
registered under the Act as a non-diversified, closed-end management
investment company. The Initial Fund's investment objective is to
provide attractive total returns, consisting of income and capital
appreciation.
    2. The Adviser, a Delaware limited liability company, is registered
as an investment adviser under the Investment Advisers Act of 1940, as
amended. The Adviser serves as investment adviser to the Initial Fund.
    3. The applicants seek an order to permit the Initial Fund to issue
multiple classes of shares, each having its own fee and expense
structure, and to impose asset-based distribution and/or service fees
with respect to certain classes and EWCs.
    4. Applicants request that the order also apply to any continuously
offered registered closed-end management investment company that has
been previously organized or that may be organized in the future for
which the Adviser, or any entity controlling, controlled by, or under
common control with the Adviser, or any successor in interest to any
such entity,\1\ acts as investment adviser and which operates as an
interval fund pursuant to rule 23c-3 under the Act or provides periodic
liquidity with respect to its shares pursuant to rule 13e-4 under the
Securities Exchange Act of 1934 (``Exchange Act'') (each, a ``Future
Fund'' and together with the Initial Fund, the ``Funds'').\2\
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    \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\ Any Fund relying on this relief in the future will do so in
a manner consistent with the terms and conditions of the
application. Applicants represent that each entity presently
intending to rely on the requested relief is listed as an applicant.
---------------------------------------------------------------------------

    5. The Initial Fund currently issues a single class of common
shares in connection with its registration statement. Applicants state
that additional offerings by any Fund relying on the order may be on a
private placement or public offering basis. Shares of the Funds will
not be listed on any securities exchange, nor quoted on any quotation
medium. The Funds do not expect there to be a secondary trading market
for their shares.
    6. If the requested relief is granted, the Initial Fund intends to
redesignate its common shares as ``Class I Shares'' and to file an
amendment to its registration statement in order to continuously offer
additional classes of shares, currently contemplated to be named
``Class A Shares,'' ``Class L Shares'', and ``Class T Shares.'' Because
of the different distribution fees, shareholder services fees, and any
other class expenses that may be attributable to the Class I Shares,
Class A Shares, Class L Shares, and Class T Shares, the net income
attributable to, and any dividends payable on, each class of shares may
differ from each other. The Fund's Class I Shares will be subject to
other expenses but not a front-end sales charge nor a distribution fee
or a service fee. The Fund's Class A Shares will be subject to other
expenses including a front-end sales charge and a service fee but not a
distribution fee. The Fund's Class L Shares and Class T Shares will

each be subject to other expenses including a front-end sales charge,
distribution fee, and service fee. Currently, Class I Shares, Class A
Shares, Class L Shares and Class T Shares will not be subject to an
EWC.
    7. Applicants state that, from time to time, a Fund may create
additional classes of shares the terms of which may differ from their
other share classes, 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 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) any
differences in dividends and net asset value resulting from differences
in fees under a distribution plan or servie fee arrangement or in class
expenses; (6) any EWC or other sales load structure; and (7) exchange
or conversion privileges of the classes as permitted under the Act.
    8. Applicants state that shares of a Fund may be subject to an
early repurchase fee (``Early Repurchase Fee'') at a rate of no greater
than 2% of the shareholder's repurchase proceeds if the interval
between the date of purchase of the shares and the valuation date with
respect to the repurchase of those shares is less than one year. Any
Early Repurchase Fees will apply equally to all classes of shares of a
Fund, consistent with section 18 of the Act and rule 18f-3 thereunder.
To the extent a Fund determines to waive, impose scheduled variations
of, or eliminate any Early Repurchase Fee, it will do so consistently
with the requirements of rule 22d-1 under the Act as if the Early
Repurchase Fee were a CDSL (defined below) and as if the Fund were an
open-end investment company and the Fund's waiver of, scheduled
variation in, or elimination of, any such Early Repurchase Fee will
apply uniformly to all shareholders of the Fund regardless of class.
Applicants state that the Initial Fund does not intend to impose an
Early Repurchase Fee
    9. Applicants state that the Initial Fund has adopted a fundamental
policy to repurchase a specified percentage of its shares at net asset
value on a quarterly basis. Such repurchase offers will be conducted
pursuant to rule 23c-3 under the Act. Any Future Funds will likewise
adopt fundamental investment policies and make periodic repurchase
offers to its shareholders in compliance with rule 23c-3 or will
provide periodic liquidity with respect to its shares pursuant to rule
13e-4 under the Exchange Act.\3\ Any repurchase offers made by the
Funds will be made to all holders of shares of each such Fund.
---------------------------------------------------------------------------

    \3\ Applicants submit that rule 23c-3 and Regulation M under the
Exchange Act permit an interval fund to make repurchase offers to
repurchase its shares while engaging in a continuous offering of its
shares pursuant to Rule 415 under the Securities Act of 1933, as
amended.
---------------------------------------------------------------------------

    10. Applicants represent that any asset-based service and/or
distribution fees for each class of shares of the Funds will comply
with the provisions of the FINRA Rule 2341(d) (``FINRA Sales Charge
Rule'').\4\ Applicants also represent that each 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. As is required for
open-end funds, each Fund will disclose its expenses in shareholder
reports, and describe any arrangements that result in breakpoints in,
or elimination 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\
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    \4\ Any reference to the FINRA Sales Charge Rule includes any
successor or replacement to the FINRA Sales Charge Rule.
    \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.
---------------------------------------------------------------------------

    11. Each of the Funds will comply with any requirements that the
Commission or FINRA may adopt 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. In
addition, each Fund will contractually require that any distributor of
the Fund's shares comply with such requirements in connection with the
distribution of such Fund's shares.
    12. Each Fund will allocate all expenses incurred by it among the
various classes of shares based on the net assets of that Fund
attributable to each class, except that the net asset value and
expenses of each class will reflect the expenses associated with the
distribution plan of that class (if any), service fees attributable to
that class (if any), including transfer agency fees, and any other
incremental expenses of that class. Expenses of a 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 each Fund will
comply with the provisions of rule 18f-3 under the Act as if it were an
open-end investment company.
    13. Applicants state that the Initial Fund does not currently
intend to impose an EWC. However, a Fund may impose an EWC on shares
submitted for repurchase that have been held less than a specified
period and may waive the EWC for certain categories of shareholders or
transactions to be established from time to time. Applicants state that
each Fund will apply the EWC (and any waivers or scheduled variations,
or elimination of the EWC) uniformly to all shareholders in a given
class and consistently with the requirements of rule 22d-1 under the
Act as if the Funds were open-end investment companies.
    14. Each Fund operating as an interval fund pursuant to rule 23c-3
under the Act may offer its shareholders an exchange feature under
which the shareholders of the Fund may, in connection with such Fund's
periodic repurchase offers, exchange their shares of the Fund for
shares of the same class of (i) registered open-end investment
companies or (ii) other registered closed-end investment companies that
comply with rule 23c-3 under the Act and continuously offer their
shares at net asset value, that are in the Fund's group of investment
companies (collectively, ``Other Funds''). Shares of a Fund operating
pursuant to rule 23c-3 that are exchanged for shares of Other Funds
will be included as part of the amount of the repurchase offer amount
for such Fund as specified in rule 23c-3 under the Act. Any exchange
option will comply with rule 11a-3 under the Act, as if the Fund were
an open-end investment company subject to rule 11a-3. In complying with
rule 11a-3, each Fund will treat an EWC as if it were a contingent
deferred sales load (``CDSL'').

Applicants' Legal Analysis

Multiple Classes of Shares

    1. Section 18(a)(2) of the Act provides that a closed-end
investment company may not issue or sell a senior security that is a
stock unless certain requirements are met. 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
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 Funds 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 multiple classes of shares of the Funds
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
Funds 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 a Fund to facilitate the distribution of its securities and
provide investors with a broader choice of shareholder services.
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 each Fund will comply with the provisions of
rule 18f-3 as if it were an open-end investment company.
Early Withdrawal Charges
    1. Section 23(c) of the Act provides, in relevant part, that no
registered closed-end investment company shall purchase securities of
which it is the issuer, except: (a) On a securities exchange or other
open market; (b) pursuant to tenders, after reasonable opportunity to
submit tenders given to all holders of securities of the class to be
purchased; or (c) under other circumstances as the Commission may
permit by rules and regulations or orders for the protection of
investors.
    2. Rule 23c-3 under the Act permits an ``interval fund'' to make
repurchase offers of between five and twenty-five percent of its
outstanding shares at net asset value at periodic intervals pursuant to
a fundamental policy of the interval fund. Rule 23c-3(b)(1) under the
Act permits an interval fund to deduct from repurchase proceeds only a
repurchase fee, not to exceed two percent of the proceeds, that is paid
to the interval fund and is reasonably intended to compensate the fund
for expenses directly related to the repurchase.
    3. Section 23(c)(3) provides that the Commission may issue an order
that would permit a closed-end investment company to repurchase its
shares in circumstances in which the repurchase is made in a manner or
on a basis that does not unfairly discriminate against any holders of
the class or classes of securities to be purchased.
    4. Applicants request relief under section 6(c), discussed above,
and section 23(c)(3) from rule 23c-3 to the extent necessary for the
Funds to impose EWCs on shares of the Funds submitted for repurchase
that have been held for less than a specified period.
    5. Applicants state that the EWCs they intend to impose are
functionally similar to CDSLs imposed by open-end investment companies
under rule 6c-10 under the Act. Rule 6c-10 permits open-end investment
companies to impose CDSLs, subject to certain conditions. Applicants
note that rule 6c-10 is grounded in policy considerations supporting
the employment of CDSLs where there are adequate safeguards for the
investor and state that the same policy considerations support
imposition of EWCs in the interval fund context. In addition,
applicants state that EWCs may be necessary for the distributor to
recover distribution costs. Applicants represent that any EWC imposed
by the Funds will comply with rule 6c-10 under the Act as if the rule
were applicable to closed-end investment companies. The Funds will
disclose EWCs in accordance with the requirements of Form N-1A
concerning CDSLs.
Asset-based Distribution and/or Service 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 the extent necessary to permit the Fund to impose asset-
based distribution and/or service 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 distribution and/or service fees.
    3. For the reasons stated above, applicants submit that the
exemptions requested under section 6(c) are necessary and appropriate
in the public interest and are consistent with the protection of
investors and the purposes fairly intended by the policy and provisions
of the Act. Applicants further submit that the relief requested
pursuant to section 23(c)(3) will be consistent with the protection of
investors and will insure that applicants do not unfairly discriminate
against any holders of the class of securities to be purchased.
Finally, applicants state that the Funds' imposition of asset-based
distribution and/or service fees is consistent with the provisions,
policies and purposes of the Act and does not involve participation on
a basis different from or less advantageous than that of other
participants.

Applicants' Condition

    Applicants agree that any order granting the requested relief will
be subject to the following condition:
    Each Fund relying on the order 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, as if those rules applied
to closed-end management investment companies, and will comply with the
FINRA Sales Charge Rule, 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. 2018-22541 Filed 10-16-18; 8:45 am]
BILLING CODE 8011-01-P