[Federal Register Volume 78, Number 40 (Thursday, February 28, 2013)]
[Notices]
[Pages 13717-13721]
[FR Doc No: 2013-04615]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68971; File No. SR-ISE-2013-14]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing of Proposed Rule Change To List Options on the
Dow Jones FXCM Dollar Index

February 22, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 13, 2013, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which items have been prepared by
the self-regulatory organization. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its rules for the listing and
trading on the Exchange of options on a foreign currency index, the Dow
Jones FXCM Dollar Index. The Exchange also proposes to list and trade
long-term options on the Dow Jones FXCM Dollar Index. Options on the
Dow Jones FXCM Dollar Index will be settled in the same manner as the
Exchange's foreign currency options and will have European-style
exercise provisions. The text of the proposed rule change is available
on the Exchange's Internet Web site at http://www.ise.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its rules to provide for the listing
and trading on the Exchange of options on a foreign currency index, the
Dow Jones FXCM Dollar Index (the ``Dollar Index''). Options on the
Dollar Index will be settled in the same manner as the Exchange's
foreign currency options (``FX Options'') \3\ and will have European-
style exercise provisions. The components that comprise the Dollar
Index are a subset of the Exchange's FX Options. In addition to regular
options, the Exchange propose to also list long-term options on the
Dollar Index.
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    \3\ The Commission previously approved the listing of FX Options
on nineteen underlying foreign currencies. See Securities Exchange
Act Release No. 55575 (April 3, 2007), 72 FR 17963 (April 10, 2007)
(SR-ISE-2006-59).
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Index Design and Composition
    The Dollar Index was designed and developed by Dow Jones Indexes, a
unit of CME Group that creates indexes, and Forex Capital Markets LLC,
an online foreign exchange brokerage firm. The Dollar Index is
calculated and maintained by Dow Jones. The Dollar Index reflects U.S.
dollar fluctuations against a basket of four of the most liquid
currencies in the world: Euro, British pound, Japanese yen, and
Australian dollar. More specifically, the Dollar Index's input data are
individual currency pairs calculated based on the conventional quote
format as follows:

------------------------------------------------------------------------
             Convention                            Currency
------------------------------------------------------------------------
EUR/USD.............................  euro.
GBP/USD.............................  British pound.
USD/JPY.............................  Japanese yen.
AUD/USD.............................  Australian dollar.
------------------------------------------------------------------------

    Spot currency quotes are derived from ThomsonReuters, the same
source that the Exchange currently uses for the underlying values of
its existing FX Options. Each input value is based on the mid-point
between the bid and ask quotes. The Dollar Index has a base date of
January 1, 2011 and a base value of 10000, using closing prices as of
December 31, 2010. Spot quotes for each pair on the base date were as
follows:

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

------------------------------------------------------------------------
EUR/USD......................................................     1.3370
GBP/USD......................................................     1.5601
USD/JPY......................................................      81.21
AUD/USD......................................................     1.0218
------------------------------------------------------------------------

    On its base date, the Dollar Index was set to be equally-weighted
such that each constituent currency pair has equal influence on the
overall index value. Equal positions in U.S. dollar terms were
calculated on the base date by assuming a $10,000 allocation to each
currency pair as follows:

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

------------------------------------------------------------------------
EUR/USD position in U.S. dollar terms..  1.3370 x [euro]7,479 = $10,000.
GBP/USD position in U.S. dollar terms..  1.5601 x [pound]6,410 =
                                          $10,000.
USD/JPY position in U.S. dollar terms..  [yen]812,150 / 81.21 = $10,000.
AUD/USD position in U.S. dollar terms..  1.0218 x AU$9,787 = $10,000.
------------------------------------------------------------------------

    This method is similar to equally-weighted stock indexes that
calculate the number of shares needed in order for each stock
constituent to have an equal position.\4\ The Dollar Index level is
calculated in accordance with the following equation:
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    \4\ Equal-weighted indexes have become increasingly prevalent.
For example, Standard & Poor's calculates an equal-weighted version
of its S&P500 Index, and Nasdaq OMX calculates an equal-weighted
version of its Nasdaq-100 Index. Additionally, ISE once listed
options on the Morgan Stanley Technology Index, also an equal-
weighted index of stocks in the technology sector.
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    Dollar Index level = [($20,000 - ((EUR/USD) x ([euro] Position) +
($20,000 - ((GBP/USD) x ([pound] Position)) + ($20,000 - (([yen]
Position) / (USD/JPY)) + ($20,000 - ((AUD/USD) x (AU$ Position)]/
Divisor
    The Dollar Index is designed to reflect spot positions in each
currency with the weighting of each currency set as equal at inception
and rebalancing events. Rebalancing events are not scheduled. For
example, the Dollar Index is rebalanced if the value of any position
falls below $1,000 (i.e., loses 90% of its original $10,000 position
value).\5\ At that point, each currency is again set to an equal
position. This method of unscheduled rebalancing captures the prevalent
strategy among currency traders with long-term exposure to the most
actively traded currency pairs. The

need for scheduled rebalancing is more important for stock indexes
where the high volatility and idiosyncratic risk of individual stocks
can cause a select few to dominate the index weighting. Unlike stocks,
a portfolio of major currencies that are all paired against the US
dollar does not have the same risks. The volatility of each currency
pair is low which results in an even lower volatility for the overall
index.
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    \5\ See http://www.djindexes.com/mdsidx/downloads/fact_info/Dow_Jones_FXCM_Dollar_Index_Fact_Sheet.pdf.
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    The components that comprise the Dollar Index include a subset of
the modified exchange rates \6\ previously approved by the Commission
as the basis for FX Options. The Exchange represents that the total
number of components in the Dollar Index may not decrease from the
number of components in the Dollar Index at the time of its initial
listing.
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    \6\ The term ``modified exchange rate'' means the price, for the
sale of one foreign currency for another, quoted by various
interbank foreign exchange participants, for immediate delivery
(which generally means delivery two business days following the date
on which the terms of such a sale are agreed upon), as reflected in
the foreign currency price quotations reported by the foreign
currency price quotation dissemination vendor selected by the
Exchange, which is then modified by the Exchange with a modifier of
1, 10 or 100. See ISE Rule 2201(8).
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    As set forth in Exhibit 3-1, following are the characteristics of
the Dollar Index: (i) The total number of currency pairs is four; (ii)
the total gross domestic product (GDP) of the associated countries of
the four currency pairs is $33.83 trillion; (iii) regarding GDP of
individual component countries, the United States is the highest at
$15.04 trillion and Malta (one of the 17 participating member states of
the euro) is the lowest at $0.01 trillion; (iv) regarding the recent
exchange rates of the individual components, (a) EUR/USD is 1.3608, (b)
USD/JPY is 91.8650, (c) GBP/USD is 1.5790, and (d) AUD/USD is 1.0409;
\7\ (v) regarding component weights, the Dollar Index is an equal-
weighted index at inception and rebalancing; (vi) regarding average
daily spot volume of the individual components, according to the Bank
for International Settlements' Triennial Central Bank Survey of Foreign
Exchange and Derivatives Market Activity in 2010,\8\ (a) EUR/USD is
$469 billion, (b) USD/JPY $183 billion, (c) GBP/USD is $140 billion,
and (d) AUD/USD is $84 billion.
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    \7\ All exchange rates are as of February 1, 2013.
    \8\ The Triennial Central Bank Survey of Foreign Exchange and
Derivatives Market Activity is published every three (3) years; the
most recent survey was published in December 2010.
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Index Calculation and Maintenance
    As noted above, the Dollar Index will be maintained and calculated
by Dow Jones. The level of the Dollar Index will reflect the current
exchange rates of the four underlying currency pairs. The Dollar Index
will be updated on a real-time basis beginning at 6:15 p.m. each day
and ending at 5:00 p.m. (New York time) the following day from Sunday
through Friday (the Dollar Index will basically be calculated for 22
hours and 45 minutes each day). If the value of a component's exchange
rate is not available, the last known exchange rate will be used in the
calculation.
    Values of the Dollar Index will be disseminated every 15 seconds
during the Exchange's regular trading hours to market information
vendors such as Bloomberg and ThomsonReuters. In the event the Dollar
Index ceases to be maintained or calculated, or its values are not
disseminated every 15 seconds by a widely available source, the
Exchange will not list any additional series for trading and will limit
all transactions in such options to closing transactions only for the
purpose of maintaining a fair and orderly market and protecting
investors. As part of this proposal, the Exchange is also making a
clarifying change to ISE Rule 2003(b) by replacing the word `stocks'
with `components' because index options listed by the Exchange are no
longer limited to having stocks as their underlying components; with
this proposed rule change, the Exchange will also list options on
indexes that have currencies as their underlying components.
Exercise and Settlement Value
    Options on the Dollar Index will expire on the Saturday following
the third Friday of the expiration month. Trading in expiring options
on the Dollar Index will normally cease at 12:00 p.m. (New York time)
on the Friday preceding an expiration Saturday. The exercise and
settlement value will be calculated using the WM Intra-day Spot rate
corresponding to 12:00 p.m. New York time. The exercise-settlement
amount is equal to the difference between the settlement value and the
exercise price of the option, multiplied by $1. Exercise will result in
the delivery of cash on the business day following expiration.
Contract Specifications
    The contract specifications for options on the Dollar Index are set
forth in Exhibit 3-2. The Dollar Index is a foreign currency index, as
defined in proposed Rule 2001(h). Options on the Dollar Index are
European-style and cash-settled.\9\ The Exchange's standard trading
hours for FX Options (7:30 a.m. to 4:15 p.m., New York time) will also
apply to the Dollar Index. The Exchange proposes to apply margin
requirements for the purchase and sale of options on the Dollar Index
that are identical to those applied for individual FX Options.
Accordingly, per proposed ISE Rule 1202(e), the margin level required
for trading options on the Dollar Index shall be identical to the
highest margin required for a component foreign currency as determined
in accordance with ISE Rule 1202(d).
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    \9\ The Exchange will calculate a settlement value for the Index
using the settlement values for the individual component currencies.
As described earlier, the settlement value for each individual
component currency is determined using the WM Intra-day Spot rate.
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    The trading of options on the Dollar Index will be subject to the
trading halt procedures applicable to index options traded on the
Exchange.\10\ Options on the Dollar Index will be quoted and traded in
U.S. dollars.\11\ Accordingly, all Exchange and Options Clearing
Corporation members shall be able to accommodate trading, clearance and
settlement of the Dollar Index without alteration.
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    \10\ See ISE Rule 2008(c).
    \11\ See ISE Rule 2009(a)(1).
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    The Exchange proposes to list options on the Dollar Index that may
expire at three-month (3) intervals or in consecutive months. The
Exchange may also list up to six (6) expiration months at any one time.
The Exchange proposes to set strike price intervals for options on the
Dollar Index at minimum intervals of 2\1/2\ points, if the strike price
is less than two hundred dollars ($200), in accordance with ISE Rule
2009(c)(1). Further, when new series of options on the Dollar Index
with a new expiration date are opened for trading, or when additional
series of options on the Dollar Index in an existing expiration date
are opened for trading as the current value of the Dollar Index moves
substantially from the exercise prices of series already opened, the
exercise prices of such new or additional series shall be reasonably
related to the current value of the underlying index at the time such
series are first opened for trading.\12\
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    \12\ See ISE Rule 2009(c)(3). The term ``reasonably related to
the current index value of the underlying index'' means that the
exercise price is within thirty percent (30%) of the current index
value, as defined in ISE Rule 2009(c)(4).
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    The Exchange may also open for trading additional series of the
same class of options on the Dollar Index as the current value of the
underlying index moves substantially from the exercise price of those
options on the

Dollar Index that already have been opened for trading on the Exchange.
The exercise price of each series of options on the Dollar Index opened
for trading on the Exchange shall be reasonably related to the current
index value of the underlying index to which such series relates at or
about the time such series of options is first opened for trading on
the Exchange. The Exchange may also open for trading additional series
of options on the Dollar Index that are more than thirty percent (30%)
away from the current index value, provided that demonstrated customer
interest exists for such series, as expressed by institutional,
corporate, or individual customers or their brokers. Market makers
trading for their own account shall not be considered when determining
customer interest under this provision.\13\
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    \13\ See ISE Rule 2009(c)(4).
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    The Exchange proposes to adopt the minimum tick size for options on
the Dollar Index to be $0.01. Accordingly, the Exchange proposes to
amend Supplementary Material .02 to ISE Rule 710 to permit options on
the Dollar Index to be quoted and traded in one-cent increments. The
Exchange believes that this trading increment will result in narrower
spreads for options on the Dollar Index than if traditional trading
increments are used because options on the individual foreign currency
pairs that make up the Dollar Index are quoted in $0.01 increments.\14\
The Exchange recognizes that allowing penny quoting increments for the
Dollar Index represents an expansion of products with that feature.
Nevertheless, permitting penny quoting in the Index is consistent with
the Commission's prior approval of permitting penny quoting in the
Exchange's FX Options. The Exchange believes that permitting the Dollar
Index to be quoted and traded in one-cent increments will also promote
adoption of trading FX-linked products on a listed and regulated
market.
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    \14\ See Securities Exchange Act Release No. 57019 (December 20,
2007), 72 FR 73937 (December 28, 2007) (SR-ISE-2007-120).
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    ISE further notes that the listing and trading of the Exchange's FX
Options in penny increments was permitted in recognition of the immense
liquidity in the spot FX markets, as well as the need for market makers
in those products, which were new to the market at that time, to
appropriately straddle theoretical options prices. In other words,
market makers in FX Options could competitively quote the product more
effectively if they could create bids and offers equidistant from
theoretical prices. An artificially wide increment would have forced
market makers to maintain larger spreads if the theoretical price was
not coincidentally near the mid-point of the increment. Further, due to
the relatively low volatility of currency pairs, quoting in penny
increments allowed market makers to quote more aggressively than, say,
for newly listed equity options.
    The following example illustrates the issue regarding quotes and
the theoretical price. Assume that the Dollar Index level is 10,040.00.
Also assume that the traditional minimum quoting increments are in
place. The at-the-money call options with 30 days until expiration and
a theoretical price of $82.04, might be quoted as follows: Bid $81.95
and offered at $82.10. The market maker in the Dollar Index has little
choice but to quote this series in such a way to ensure that the bid or
offer is not the same as the theoretical price, but doing so results in
the market maker setting its quote wider than it otherwise would. Due
to the lower volatility exhibited by currency pairs, which is further
muted by creating an index of currency pairs, the market maker may have
been able to quote with a much smaller spread, resulting in a cost
savings for investors. As a matter of reference, the historical
annualized volatility for the four currency pairs comprising the Dollar
Index is as follows: EURUSD volatility is 9.53%, GBPUSD volatility is
8.91%, USDJPY volatility is 9.67%, and AUDUSD volatility is 14.58%. The
historical annualized volatility for the Dollar Index is 6.78%, which
illustrates the effects of combining multiple components and the basic
principle that an index cannot exhibit overall volatility greater than
any one of its components. As a comparison, volatility in the SPY ETF
over the same period is 21.22%, and in Apple Inc. is 31.37%.\15\
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    \15\ Volatility was measured using data from June 27, 2007
through January 10, 2013.
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    FX spot trading is available to investors of all sizes on web-based
platforms that allow for significant leverage. Those products are not
regulated in the same capacity as exchange-listed products, and do not
benefit from clearinghouses that can mutualize risk across many
participants. ISE endeavors to bring the full panoply of benefits
afforded by an exchange listing, including investor safeguards, multi-
dealer competitive pricing, central clearing, and innovative
functionality. Considering that spot FX is quoted in the smallest
increment possible for a currency pair, having an artificial
restriction in quoting increments for options would only undermine the
attractiveness of the listed product while providing no investor
protection. Indeed, it would simply create an unlevel playing field
between regulated exchange-listed products and less regulated over-the-
counter products. Lastly, as noted above, considering that FX Options
are currently quoted in penny increments, the Exchange believes that
expanding quoting in penny increments to indexes solely comprised of
currency pairs is a logical extension. There is no material impact,
whether on industry participants or competitors, if penny quoting
increments were permitted for the Dollar Index.
    For options on the Dollar Index, the Exchange proposes to establish
aggregate position limits at 600,000 contracts on the same side of the
market, provided no more than 300,000 of such contracts are in the
nearest expiration month series. The Exchange notes that the proposed
positions limits for the Dollar Index are equal to or lower than the
position limits for individual FX options on the four currency pairs
comprising the Dollar Index.\16\ The same limits that apply to position
limits shall apply equally to exercise limits for options on the Dollar
Index.\17\
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    \16\ See ISE Rule 2208.
    \17\ See ISE Rule 2007.
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    The Exchange proposes to list options on the Dollar Index in the
three consecutive near-term expiration months plus up to three
successive expiration months in the March cycle. For example,
consecutive expirations of January, February, March, plus June,
September, and December expirations would be listed.\18\ The trading of
options on the Dollar Index shall be subject to the same rules that
presently govern the trading of Exchange index options, including sales
practice rules, margin requirements, trading rules, and position and
exercise limits. In addition, long-term option series having up to
sixty months to expiration may be traded.\19\ The trading of long-term
options on the Dollar Index shall also be subject to the same rules
that govern the trading of all the Exchange's index options, including
sales practice rules, margin requirements, and trading rules. Further,
pursuant to Supplementary Material .01 and .02 to ISE Rule 2009, the
Exchange may also list Short Term Option Series and Quarterly Options
Series, respectively, on the Dollar Index.
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    \18\ See Rule 2009(a)(3).
    \19\ See Rule 2009(b)(1).
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    Chapter 6 of the Exchange's rules is designed to protect public
customer

trading and shall apply to trading in options on the Dollar Index.
Specifically, ISE Rules 608(a) and (b) prohibit Members from accepting
a customer order to purchase or write an option, including options on
the Dollar Index, unless such customer's account has been approved in
writing by a designated Options Principal of the Member.\20\
Additionally, ISE's Rule 610 regarding suitability is designed to
ensure that options, including options on the Dollar Index, are only
sold to customers capable of evaluating and bearing the risks
associated with trading in this instrument. Further, ISE Rule 611
permits members to exercise discretionary power with respect to trading
options, including options on the Dollar Index, in a customer's account
only if the Member has received prior written authorization from the
customer and the account had been accepted in writing by a designated
Options Principal. ISE Rule 611 also requires designated Options
Principals or Representatives of a Member to approve and initial each
discretionary order, including discretionary orders for options on the
Dollar Index, on the day the discretionary order is entered. Finally,
ISE Rule 609, Supervision of Accounts, Rule 612, Confirmation to
Customers, and Rule 616, Delivery of Current Options Disclosure
Documents and Prospectus, will also apply to trading in options on the
Dollar Index.
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    \20\ Pursuant to ISE Rule 602, Representatives of a Member may
solicit or accept customer orders for options on the Dollar Index.
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    Finally, a trading license issued by the Exchange will be required
for all market makers to effect transactions as a market maker in the
Dollar Index in accordance with ISE Rule 2013.
Surveillance and Capacity
    The Exchange has an adequate surveillance program in place for
options traded on the Dollar Index, and intends to apply those same
program procedures that it applies to the Exchange's other options
products. Further, the ISE Market Surveillance Department conducts
routine surveillance in approximately 30 discrete areas. Index products
and their respective symbols are integrated into the Exchange's
existing surveillance system architecture and are thus subject to the
relevant surveillance processes. This is true for both surveillance
system processing and manual processes that support the ISE's
surveillance program. Additionally, the Exchange is also a member of
the Intermarket Surveillance Group (ISG) under the Intermarket
Surveillance Group Agreement, dated June 20, 1994. The members of the
ISG include all of the U.S. registered stock and options markets: NYSE
MKT LLC, NYSE Arca, Inc., BATS Exchange, Inc., NASDAQ OMX BX, Chicago
Board Options Exchange, Inc., Chicago Stock Exchange, Inc., Financial
Industry Regulatory Authority, NASDAQ Stock Market LLC, National Stock
Exchange, Inc., the New York Stock Exchange LLC, and NASDAQ OMX PHLX,
Inc. The ISG members work together to coordinate surveillance and
investigative information sharing in the stock and options markets. In
addition, the CME Group and ICE Futures U.S., Inc. are also members of
ISG, which allows for the sharing of surveillance information for
potential intermarket trading abuses. The CME Group and ICE Futures
U.S., Inc. operate a marketplace for trading of futures for all the
component foreign currencies included in the Dollar Index. Further, CME
Group operates a marketplace for trading options on futures for all the
component foreign currencies included in the Dollar Index.
    The Exchange represents that it has the necessary system capacity
to support additional quotations and messages that will result from the
listing and trading of options on the Dollar Index.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act'')
\21\ in general, and furthers the objectives of Section 6(b)(5) of the
Act \22\ in particular in that it will permit options trading in the
Dollar Index pursuant to rules designed to prevent fraudulent and
manipulative acts and practices and promote just and equitable
principles of trade. In particular, the Exchange believes the proposed
rule change will further the Exchange's goal of introducing new and
innovative products to the marketplace. The Exchange believes that
listing options on the Dollar Index will provide an opportunity for
investors to hedge, or speculate on, the market risk associated with
the foreign currencies underlying the Dollar Index.
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    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that because the Dollar Index is comprised of
a basket of four of the most liquid currencies in the world, and given
the immense liquidity found in the spot currency market and the average
daily spot volume of the individual components, the concern that the
Dollar Index will be subject to market manipulation is greatly reduced.
Therefore, the Exchange believes that the proposed rule change to list
options on the Dollar Index is appropriate.
    The Exchange further notes that ISE Rules that apply to the trading
of other index options currently traded on the Exchange would also
apply to the trading of options on the Dollar Index. Additionally, the
trading of options on the Dollar Index would be subject to, among
others, Exchange Rules governing margin requirements and trading halt
procedures. Also, the Exchange's proposed position limits for the
Dollar Index are equal to or lower than the position limits for
individual FX options on the four currency pairs comprising the Dollar
Index, namely 600,000 contracts on the same side of the market for
options on the Dollar Index. Further, delta-based hedge exemptions, in
accordance with Rule 2006(d), will also apply to trading options on the
Dollar Index.
    Finally, the Exchange represents that it has an adequate
surveillance program in place to detect manipulative trading in options
on the Dollar Index. The Exchange also represents that it has the
necessary systems capacity to support the new options series. And as
stated in the filing, the Exchange has rules in place designed to
protect public customer trading.

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

    This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange notes that the proposed rule change will
facilitate the listing and trading of a novel index option product that
will enhance competition among market participants, to the benefit of
investors and the marketplace.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (1) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or

(2) as to which the self-regulatory organization consents, the
Commission will:
    (a) By order approve or disapprove such proposed rule change; or
    (b) Institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-ISE-2013-14 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISE-2013-14. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2013-14 and should be
submitted on or before March 21, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-04615 Filed 2-27-13; 8:45 am]
BILLING CODE 8011-01-P


2. Non-emergency stationary CI RICE >500 HP located at a major source of HAP, and existing non-emergency stationary CI RICE >500 HP located at an area source of HAP.
a. Limit the concentration of CO, using oxidation catalyst, and using a CPMS
i. The average CO concentration determined from the initial performance test is less than or equal to the CO emission limitation; and

ii. You have installed a CPMS to continuously monitor catalyst inlet temperature according to the requirements in §63.6625(b); and

iii. You have recorded the catalyst pressure drop and catalyst inlet temperature during the initial performance test.
3. New or reconstructed non-emergency 2SLB stationary RICE >500 HP located at a major source of HAP, new or reconstructed non-emergency 4SLB stationary RICE >=250 HP located at a major source of HAP, non-emergency stationary CI RICE >500 HP located at a major source of HAP, and existing non-emergency stationary CI RICE >500 HP located at an area source of HAP.
a. Reduce CO emissions and not using oxidation catalyst
i. The average reduction of emissions of CO determined from the initial performance test achieves the required CO percent reduction; and

ii. You have installed a CPMS to continuously monitor operating parameters approved by the Administrator (if any) according to the requirements in §63.6625(b); and

iii. You have recorded the approved operating parameters (if any) during the initial performance test.
4. Non-emergency stationary CI RICE >500 HP located at a major source of HAP, and existing non-emergency stationary CI RICE >500 HP located at an area source of HAP.
a. Limit the concentration of CO, and not using oxidation catalyst
i. The average CO concentration determined from the initial performance test is less than or equal to the CO emission limitation; and

ii. You have installed a CPMS to continuously monitor operating parameters approved by the Administrator (if any) according to the requirements in §63.6625(b); and

iii. You have recorded the approved operating parameters (if any) during the initial performance test.
5. New or reconstructed non-emergency 2SLB stationary RICE >500 HP located at a major source of HAP, new or reconstructed non-emergency 4SLB stationary RICE >=250 HP located at a major source of HAP, non-emergency stationary CI RICE >500 HP located at a major source of HAP, and existing non-emergency stationary CI RICE >500 HP located at an area source of HAP.
a. Reduce CO emissions, and using a CEMS
i. You have installed a CEMS to continuously monitor CO and either O2 or CO2 at both the inlet and outlet of the oxidation catalyst according to the requirements in §63.6625(a); and

ii. You have conducted a performance evaluation of your CEMS using PS 3 and 4A of 40 CFR part 60, appendix B; and

iii. The average reduction of CO calculated using §63.6620 equals or exceeds the required percent reduction.  The initial test comprises the first 4-hour period after successful validation of the CEMS.  Compliance is based on the average percent reduction achieved during the 4-hour period.
6. Non-emergency stationary CI RICE >500 HP located at a major source of HAP, and existing non-emergency stationary CI RICE >500 HP located at an area source of HAP.
a. Limit the concentration of CO, and using a CEMS
i. You have installed a CEMS to continuously monitor CO and either O2 or CO2 at the outlet of the oxidation catalyst according to the requirements in §63.6625(a); and

ii. You have conducted a performance evaluation of your CEMS using PS 3 and 4A of 40 CFR part 60, appendix B; and

iii. The average concentration of CO calculated using §63.6620 is less than or equal to the CO emission limitation.  The initial test comprises the first 4-hour period after successful validation of the CEMS.  Compliance is based on the average concentration measured during the 4-hour period.
7. Non-emergency 4SRB stationary RICE >500 HP located at a major source of HAP.
a. Reduce formaldehyde emissions and using NSCR
i. The average reduction of emissions of formaldehyde determined from the initial performance test is equal to or greater than the required formaldehyde percent reduction or the average reduction of emissions of THC determined from the initial performance test is equal to or greater than 30 percent; and

ii. You have installed a CPMS to continuously monitor catalyst inlet temperature according to the requirements in §63.6625(b); and

iii. You have recorded the catalyst pressure drop and catalyst inlet temperature during the initial performance test.
8. Non-emergency 4SRB stationary RICE >500 HP located at a major source of HAP.
a. Reduce formaldehyde emissions and not using NSCR
i. The average reduction of emissions of formaldehyde determined from the initial performance test is equal to or greater than the required formaldehyde percent reduction; and

ii. You have installed a CPMS to continuously monitor operating parameters approved by the Administrator (if any) according to the requirements in §63.6625(b); and

iii. You have recorded the approved operating parameters (if any) during the initial performance test.

9. New or reconstructed non-emergency stationary RICE >500 HP located at a major source of HAP, new or reconstructed non-emergency 4SLB stationary RICE 250<=HP<=500 located at a major source of HAP, and existing non-emergency 4SRB stationary RICE >500 HP located at a major source of HAP.
a. Limit the concentration of formaldehyde in the stationary RICE exhaust and using oxidation catalyst or NSCR
i. The average formaldehyde concentration, corrected to 15 percent O2, dry basis, from the three test runs is less than or equal to the formaldehyde emission limitation; and

ii. You have installed a CPMS to continuously monitor catalyst inlet temperature according to the requirements in §63.6625(b); and

iii. You have recorded the catalyst pressure drop and catalyst inlet temperature during the initial performance test.
10. New or reconstructed non-emergency stationary RICE >500 HP located at a major source of HAP, new or reconstructed non-emergency 4SLB stationary RICE 250<=HP<=500 located at a major source of HAP, and existing non-emergency 4SRB stationary RICE >500 HP located at a major source of HAP.
a. Limit the concentration of formaldehyde in the stationary RICE exhaust and not using oxidation catalyst or NSCR
i. The average formaldehyde concentration, corrected to 15 percent O2, dry basis, from the three test runs is less than or equal to the formaldehyde emission limitation; and

ii. You have installed a CPMS to continuously monitor operating parameters approved by the Administrator (if any) according to the requirements in §63.6625(b); and

iii. You have recorded the approved operating parameters (if any) during the initial performance test.
11. Existing non-emergency stationary RICE 100<=HP<=500 located at a major source of HAP, and existing non-emergency stationary CI RICE 300<HP<=500 located at an area source of HAP.
a. Reduce CO emissions.
i. The average reduction of emissions of CO or formaldehyde, as applicable determined from the initial performance test is equal to or greater than the required CO or formaldehyde, as applicable, percent reduction.
12. Existing non-emergency stationary RICE 100<=HP<=500 located at a major source of HAP, and existing non-emergency stationary CI RICE 300<HP<=500 located at an area source of HAP.
a. Limit the concentration of formaldehyde or CO in the stationary RICE exhaust.
i. The average formaldehyde or CO concentration, as applicable, corrected to 15 percent O2, dry basis, from the three test runs is less than or equal to the formaldehyde or CO emission limitation, as applicable.
13. Existing non-emergency 4SLB stationary RICE >500 HP located at an area source of HAP that are not remote stationary RICE and that are operated more than 24 hours per calendar year
a. Install an oxidation catalyst
i. You have conducted an initial compliance demonstration as specified in §63.6630(e) to show that the average reduction of emissions of CO is 93 percent or more, or the average CO concentration is less than or equal to 47 ppmvd at 15 percent O2
ii. You have installed a CPMS to continuously monitor catalyst inlet temperature according to the requirements in §63.6625(b), or you have installed equipment to automatically shut down the engine if the catalyst inlet temperature exceeds 1350°F

14. Existing non-emergency 4SRB stationary RICE >500 HP located at an area source of HAP that are not remote stationary RICE and that are operated more than 24 hours per calendar year
a. Install NSCR
i. You have conducted an initial compliance demonstration as specified in §63.6630(e) to show that the average reduction of emissions of CO is 75 percent or more, or the average reduction of emissions of THC is 30 percent or more
ii. You have installed a CPMS to continuously monitor catalyst inlet temperature according to the requirements in §63.6625(b), or you have installed equipment to automatically shut down the engine if the catalyst inlet temperature exceeds 1250°F

Table 6 to Subpart ZZZZ of Part 63. Continuous Compliance with Emission Limitations, Operating Limitations, Work Practices, and Management Practices
As stated in §63.6640, you must continuously comply with the emissions and operating limitations and work or management practices as required by the following:

For each . . .

Complying with the requirement to . . .

You must demonstrate continuous compliance by
. . .
1. New or reconstructed non-emergency 2SLB stationary RICE >500 HP located at a major source of HAP, new or reconstructed non-emergency 4SLB stationary RICE >=250 HP located at a major source of HAP, and new or reconstructed non-emergency CI stationary RICE >500 HP located at a major source of HAP.
a. Reduce CO emissions and using an oxidation catalyst, and using a CPMS
i. Conducting semiannual performance tests for CO to demonstrate that the required CO percent reduction is achieved[a]; and

ii. Collecting the catalyst inlet temperature data according to §63.6625(b); and

iii. Reducing these data to 4-hour rolling averages; and

iv. Maintaining the 4-hour rolling averages within the operating limitations for the catalyst inlet temperature; and

v. Measuring the pressure drop across the catalyst once per month and demonstrating that the pressure drop across the catalyst is within the operating limitation established during the performance test.
2. New or reconstructed non-emergency 2SLB stationary RICE >500 HP located at a major source of HAP, new or reconstructed non-emergency 4SLB stationary RICE >=250 HP located at a major source of HAP, and new or reconstructed non-emergency CI stationary RICE >500 HP located at a major source of HAP.
a. Reduce CO emissions and not using an oxidation catalyst, and using a CPMS
i. Conducting semiannual performance tests for CO to demonstrate that the required CO percent reduction is achieved[a]; and

ii. Collecting the approved operating parameter (if any) data according to §63.6625(b); and

iii. Reducing these data to 4-hour rolling averages; and

iv. Maintaining the 4-hour rolling averages within the operating limitations for the operating parameters established during the performance test.
3. New or reconstructed non-emergency 2SLB stationary RICE >500 HP located at a major source of HAP, new or reconstructed non-emergency 4SLB stationary RICE >=250 HP located at a major source of HAP, new or reconstructed non-emergency stationary CI RICE >500 HP located at a major source of HAP, and existing non-emergency stationary CI RICE >500 HP.
a. Reduce CO emissions or limit the concentration of CO in the stationary RICE exhaust, and using a CEMS
i. Collecting the monitoring data according to §63.6625(a), reducing the measurements to 1-hour averages, calculating the percent reduction or concentration of CO emissions according to §63.6620; and

ii. Demonstrating that the catalyst achieves the required percent reduction of CO emissions over the 4-hour averaging period, or that the emission remain at or below the CO concentration limit; and

iii. Conducting an annual RATA of your CEMS using PS 3 and 4A of 40 CFR part 60, appendix B, as well as daily and periodic data quality checks in accordance with 40 CFR part 60, appendix F, procedure 1.
4. Non-emergency 4SRB stationary RICE >500 HP located at a major source of HAP.
a. Reduce formaldehyde emissions and using NSCR
i. Collecting the catalyst inlet temperature data according to §63.6625(b); and

ii. reducing these data to 4-hour rolling averages; and

iii. Maintaining the 4-hour rolling averages within the operating limitations for the catalyst inlet temperature; and

iv. Measuring the pressure drop across the catalyst once per month and demonstrating that the pressure drop across the catalyst is within the operating limitation established during the performance test.
5. Non-emergency 4SRB stationary RICE >500 HP located at a major source of HAP.

a. Reduce formaldehyde emissions and not using NSCR
i. Collecting the approved operating parameter (if any) data according to §63.6625(b); and

ii. Reducing these data to 4-hour rolling averages; and

iii. Maintaining the 4-hour rolling averages within the operating limitations for the operating parameters established during the performance test.
6. Non-emergency 4SRB stationary RICE with a brake HP >=5,000 located at a major source of HAP.
a. Reduce formaldehyde emissions
Conducting semiannual performance tests for formaldehyde to demonstrate that the required formaldehyde percent reduction is achieved, or to demonstrate that the average reduction of emissions of THC determined from the performance test is equal to or greater than 30 percent.[a]
7. New or reconstructed non-emergency stationary RICE >500 HP located at a major source of HAP and new or reconstructed non-emergency 4SLB stationary RICE 250<=HP<=500 located at a major source of HAP.

a. Limit the concentration of formaldehyde in the stationary RICE exhaust and using oxidation catalyst or NSCR
i. Conducting semiannual performance tests for formaldehyde to demonstrate that your emissions remain at or below the formaldehyde concentration limit[a]; and

ii. Collecting the catalyst inlet temperature data according to §63.6625(b); and

iii. Reducing these data to 4-hour rolling averages; and

iv. Maintaining the 4-hour rolling averages within the operating limitations for the catalyst inlet temperature; and

v. Measuring the pressure drop across the catalyst once per month and demonstrating that the pressure drop across the catalyst is within the operating limitation established during the performance test.
8. New or reconstructed non-emergency stationary RICE >500 HP located at a major source of HAP and new or reconstructed non-emergency 4SLB stationary RICE 250<=HP<=500 located at a major source of HAP.

a. Limit the concentration of formaldehyde in the stationary RICE exhaust and not using oxidation catalyst or NSCR
i. Conducting semiannual performance tests for formaldehyde to demonstrate that your emissions remain at or below the formaldehyde concentration limit[a]; and

ii. Collecting the approved operating parameter (if any) data according to §63.6625(b); and

iii. Reducing these data to 4-hour rolling averages; and

iv. Maintaining the 4-hour rolling averages within the operating limitations for the operating parameters established during the performance test.
9. Existing emergency and black start stationary RICE <=500 HP located at a major source of HAP, existing non-emergency stationary RICE <100 HP located at a major source of HAP, existing emergency and black start stationary RICE located at an area source of HAP, existing non-emergency stationary CI RICE <=300 HP located at an area source of HAP, existing non-emergency 2SLB stationary RICE located at an area source of HAP, existing non-emergency stationary SI RICE located at an area source of HAP which combusts landfill or digester gas equivalent to 10 percent or more of the gross heat input on an annual basis, existing non-emergency 4SLB and 4SRB stationary RICE <=500 HP located at an area source of HAP, existing non-emergency 4SLB and 4SRB stationary RICE >500 HP located at an area source of HAP that operate 24 hours or less per calendar year, and existing non-emergency 4SLB and 4SRB stationary RICE >500 HP located at an area source of HAP that are remote stationary RICE.
a. Work or Management practices.
i. Operating and maintaining the stationary RICE according to the manufacturer's emission-related operation and maintenance instructions;
or
ii. Develop and follow your own maintenance plan which must provide to the extent practicable for the maintenance and operation of the engine in a manner consistent with good air pollution control practice for minimizing emissions.
10. Existing stationary CI RICE >500 HP that are not limited use stationary RICE.
a. Reduce CO emissions, or limit the concentration of CO in the stationary RICE exhaust, and using oxidation catalyst
i. Conducting performance tests every 8,760 hours or 3 years, whichever comes first, for CO or formaldehyde, as appropriate, to demonstrate that the required CO or formaldehyde, as appropriate, percent reduction is achieved or that your emissions remain at or below the CO or formaldehyde concentration limit; and
ii. Collecting the catalyst inlet temperature data according to §63.6625(b); and
iii. Reducing these data to 4-hour rolling averages; and

iv. Maintaining the 4-hour rolling averages within the operating limitations for the catalyst inlet temperature; and
v. Measuring the pressure drop across the catalyst once per month and demonstrating that the pressure drop across the catalyst is within the operating limitation established during the performance test.
11. Existing stationary CI RICE >500 HP that are not limited use stationary RICE.
a. Reduce CO emissions, or limit the concentration of CO in the stationary RICE exhaust, and not using oxidation catalyst
i. Conducting performance tests every 8,760 hours or 3 years, whichever comes first, for CO or formaldehyde, as appropriate, to demonstrate that the required CO or formaldehyde, as appropriate, percent reduction is achieved or that your emissions remain at or below the CO or formaldehyde concentration limit; and

ii. Collecting the approved operating parameter (if any) data according to §63.6625(b); and
iii. Reducing these data to 4-hour rolling averages; and
iv. Maintaining the 4-hour rolling averages within the operating limitations for the operating parameters established during the performance test.
12. Existing limited use CI stationary RICE >500 HP.
a. Reduce CO emissions or limit the concentration of CO in the stationary RICE exhaust, and using an oxidation catalyst
i. Conducting performance tests every 8,760 hours or 5 years, whichever comes first, for CO or formaldehyde, as appropriate, to demonstrate that the required CO or formaldehyde, as appropriate, percent reduction is achieved or
that your emissions remain at or below the CO or formaldehyde concentration limit; and
ii. Collecting the catalyst inlet temperature data according to §63.6625(b); and
iii. Reducing these data to 4-hour rolling averages; and
iv. Maintaining the 4-hour rolling averages within the operating limitations for the catalyst inlet temperature; and
v. Measuring the pressure drop across the catalyst once per month and demonstrating that the pressure drop across the catalyst is within the operating limitation established during the performance test.
13. Existing limited use CI stationary RICE >500 HP.
a. Reduce CO emissions or limit the concentration of CO in the stationary RICE exhaust, and not using an oxidation catalyst
i. Conducting performance tests every 8,760 hours or 5 years, whichever comes first, for CO or formaldehyde, as appropriate, to demonstrate that the required CO or formaldehyde, as appropriate, percent reduction is achieved or
that your emissions remain at or below the CO or formaldehyde concentration limit; and
ii. Collecting the approved operating parameter (if any) data according to §63.6625(b); and
iii. Reducing these data to 4-hour rolling averages; and
iv. Maintaining the 4-hour rolling averages within the operating limitations for the operating parameters established during the performance test.
14. Existing non-emergency 4SLB stationary RICE >500 HP located at an area source of HAP that are not remote stationary RICE and that are operated more than 24 hours per calendar year
a. Install an oxidation catalyst
i. Conducting annual compliance demonstrations as specified in §63.6640(c) to show that the average reduction of emissions of CO is 93 percent or more, or the average CO concentration is less than or equal to 47 ppmvd at 15 percent O2; and either
ii. Collecting the catalyst inlet temperature data according to §63.6625(b), reducing these data to 4-hour rolling averages; and maintaining the 4-hour rolling averages within the operating limitations for the catalyst inlet temperature; or
iii. Immediately shutting down the engine if the catalyst inlet temperature exceeds 1350°F.
15. Existing non-emergency 4SRB stationary RICE >500 HP located at an area source of HAP that are not remote stationary RICE and that are operated more than 24 hours per calendar year
a. Install NSCR
i. Conducting annual compliance demonstrations as specified in §63.6640(c) to show that the average reduction of emissions of CO is 75 percent or more, or the average reduction of emissions of THC is 30 percent or more; and either
ii. Collecting the catalyst inlet temperature data according to §63.6625(b), reducing these data to 4-hour rolling averages; and maintaining the 4-hour rolling averages within the operating limitations for the catalyst inlet temperature; or
iii. Immediately shutting down the engine if the catalyst inlet temperature exceeds 1250° F.
aAfter you have demonstrated compliance for two consecutive tests, you may reduce the frequency of subsequent performance tests to annually. If the results of any subsequent annual performance test indicate the stationary RICE is not in compliance with the CO or formaldehyde emission limitation, or you deviate from any of your operating limitations, you must resume semiannual performance tests.
Table 7 to Subpart ZZZZ of Part 63.  Requirements for Reports
As stated in §63.6650, you must comply with the following requirements for reports:

For each . . .
You must submit a . . .
The report must contain . . .
You must submit the report . . .
1. Existing non-emergency, non-black start stationary RICE 100<=HP<=500 located at a major source of HAP; existing non-emergency, non-black start stationary CI RICE >500 HP located at a major source of HAP; existing non-emergency 4SRB stationary RICE >500 HP located at a major source of HAP; existing non-emergency, non-black start stationary CI RICE >300 HP located at an area source of HAP; new or reconstructed non-emergency stationary RICE >500 HP located at a major source of HAP; and new or reconstructed non-emergency 4SLB stationary RICE 250<=HP<=500 located at a major source of HAP
Compliance report
a. If there are no deviations from any emission limitations or operating limitations that apply to you, a statement that there were no deviations from the emission limitations or operating limitations during the reporting period. If there were no periods during which the CMS, including CEMS and CPMS, was out-of-control, as specified in §63.8(c)(7), a statement that there were not periods during which the CMS was out-of-control during the reporting period; or
 If you had a deviation from any emission limitation or operating limitation during the reporting period, the information in §63.6650(d). If there were periods during which the CMS, including CEMS and CPMS, was out-of-control, as specified in §63.8(c)(7), the information in §63.6650(e); or

i. Semiannually according to the requirements in §63.6650(b)(1)-(5) for engines that are not limited use stationary RICE subject to numerical emission limitations; and
ii. Annually according to the requirements in §63.6650(b)(6)-(9) for engines that are limited use stationary RICE subject to numerical emission limitations.

b. If you had a deviation from any emission limitation or operating limitation during the reporting period, the information in §63.6650(d). If there were periods during which the CMS, including CEMS and CPMS, was out-of-control, as specified in §63.8(c)(7), the information in §63.6650(e); or
i. Semiannually according to the requirements in §63.6650(b).

c. If you had a malfunction during the reporting period, the information in §63.6650(c)(4).
i. Semiannually according to the requirements in §63.6650(b).
2. New or reconstructed non-emergency stationary RICE that combusts landfill gas or digester gas equivalent to 10 percent or more of the gross heat input on an annual basis
Report
a. The fuel flow rate of each fuel and the heating values that were used in your calculations, and you must demonstrate that the percentage of heat input provided by landfill gas or digester gas, is equivalent to 10 percent or more of the gross heat input on an annual basis; and

i. Annually, according to the requirements in §63.6650.

b. The operating limits provided in your federally enforceable permit, and any deviations from these limits; and

i. See item 2.a.i.

c. Any problems or errors suspected with the meters.

i. See item 2.a.i.
3. Existing non-emergency, non-black start 4SLB and 4SRB stationary RICE >500 HP located at an area source of HAP that are not remote stationary RICE and that operate more than 24 hours per calendar year
Compliance report
a. The results of the annual compliance demonstration, if conducted during the reporting period.
i. Semiannually according to the requirements in §63.6650(b)(1)-(5)

Table 8 to Subpart ZZZZ of Part 63 -- Applicability of General Provisions to Subpart ZZZZ.
As stated in §63.6665, you must comply with the following applicable general provisions.
General provisions citation
Subject of citation
Applies to subpart
Explanation
§63.1
General applicability of the General Provisions
Yes.

§63.2
Definitions
Yes
Additional terms defined in §63.6675.
§63.3
Units and abbreviations
Yes.

§63.4
Prohibited activities and circumvention
Yes.

§63.5
Construction and reconstruction
Yes.

§63.6(a)
Applicability
Yes.

§63.6(b)(1) - (4)
Compliance dates for new and reconstructed sources
Yes.

§63.6(b)(5)
Notification
Yes.

§63.6(b)(6)
[Reserved]

§63.6(b)(7)
Compliance dates for new and reconstructed area sources that become major sources
Yes.

§63.6(c)(1) - (2)
Compliance dates for existing sources
Yes.

§63.6(c)(3) - (4)
[Reserved]

§63.6(c)(5)
Compliance dates for existing area sources that become major sources
Yes.

§63.6(d)
[Reserved]

§63.6(e)
Operation and maintenance
No.

§63.6(f)(1)
Applicability of standards
No.

§63.6(f)(2)
Methods for determining compliance
Yes.

§63.6(f)(3)
Finding of compliance
Yes.

§63.6(g)(1) - (3)
Use of alternate standard
Yes.

§63.6(h)
Opacity and visible emission standards
No
Subpart ZZZZ does not contain opacity or visible emission standards.
§63.6(i)
Compliance extension procedures and criteria
Yes.

§63.6(j)
Presidential compliance exemption
Yes.

§63.7(a)(1) - (2)
Performance test dates
Yes
Subpart ZZZZ contains performance test dates at §§63.6610, 63.6611, and 63.6612.
§63.7(a)(3)
CAA section 114 authority
Yes.

§63.7(b)(1)
Notification of performance test
Yes
Except that §63.7(b)(1) only applies as specified in §63.6645.
§63.7(b)(2)
Notification of rescheduling
Yes
Except that §63.7(b)(2) only applies as specified in §63.6645.
§63.7(c)
Quality assurance/test plan
Yes
Except that §63.7(c) only applies as specified in §63.6645.
§63.7(d)
Testing facilities
Yes.

§63.7(e)(1)
Conditions for conducting performance tests
No.
Subpart ZZZZ specifies conditions for conducting performance tests at §63.6620.
§63.7(e)(2)
Conduct of performance tests and reduction of data
Yes
Subpart ZZZZ specifies test methods at §63.6620.
§63.7(e)(3)
Test run duration
Yes.

§63.7(e)(4)
Administrator may require other testing under section 114 of the CAA
Yes.

§63.7(f)
Alternative test method provisions
Yes.

§63.7(g)
Performance test data analysis, recordkeeping, and reporting
Yes.

§63.7(h)
Waiver of tests
Yes.

§63.8(a)(1)
Applicability of monitoring requirements
Yes
Subpart ZZZZ contains specific requirements for monitoring at §63.6625.
§63.8(a)(2)
Performance specifications
Yes.

§63.8(a)(3)
[Reserved]

§63.8(a)(4)
Monitoring for control devices
No.

§63.8(b)(1)
Monitoring
Yes.

§63.8(b)(2) - (3)
Multiple effluents and multiple monitoring systems
Yes.

§63.8(c)(1)
Monitoring system operation and maintenance
Yes.

§63.8(c)(1)(i)
Routine and predictable SSM
Yes.

§63.8(c)(1)(ii)
SSM not in Startup Shutdown Malfunction Plan
Yes.

§63.8(c)(1)(iii)
Compliance with operation and maintenance requirements
Yes.

§63.8(c)(2) - (3)
Monitoring system installation
Yes.

§63.8(c)(4)
Continuous monitoring system (CMS) requirements
Yes
Except that subpart ZZZZ does not require Continuous Opacity Monitoring System (COMS).
§63.8(c)(5)
COMS minimum procedures
No
Subpart ZZZZ does not require COMS.
§63.8(c)(6) - (8)
CMS requirements
Yes
Except that subpart ZZZZ does not require COMS.
§63.8(d)
CMS quality control
Yes.

§63.8(e)
CMS performance evaluation
Yes
Except for §63.8(e)(5)(ii), which applies to COMS.

  Except that §63.8(e) only applies as specified in §63.6645.

§63.8(f)(1) - (5)
Alternative monitoring method
Yes
Except that §63.8(f)(4) only applies as specified in §63.6645.
§63.8(f)(6)
Alternative to relative accuracy test
Yes
Except that §63.8(f)(6) only applies as specified in §63.6645.
§63.8(g)
Data reduction
Yes
Except that provisions for COMS are not applicable. Averaging periods for demonstrating compliance are specified at §§63.6635 and 63.6640.
§63.9(a)
Applicability and State delegation of notification requirements
Yes.

§63.9(b)(1) - (5)
Initial notifications
Yes
Except that §63.9(b)(3) is reserved.

  Except that §63.9(b) only applies as specified in §63.6645.

§63.9(c)
Request for compliance extension
Yes
Except that §63.9(c) only applies as specified in §63.6645.
§63.9(d)
Notification of special compliance requirements for new sources
Yes
Except that §63.9(d) only applies as specified in §63.6645.
§63.9(e)
Notification of performance test
Yes
Except that §63.9(e) only applies as specified in §63.6645.
§63.9(f)
Notification of visible emission (VE)/opacity test
No
Subpart ZZZZ does not contain opacity or VE standards.
§63.9(g)(1)
Notification of performance evaluation
Yes
Except that §63.9(g) only applies as specified in §63.6645.
§63.9(g)(2)
Notification of use of COMS data
No
Subpart ZZZZ does not contain opacity or VE standards.
§63.9(g)(3)
Notification that criterion for alternative to RATA is exceeded
Yes
If alternative is in use.

  Except that §63.9(g) only applies as specified in §63.6645.

§63.9(h)(1) - (6)
Notification of compliance status
Yes
Except that notifications for sources using a CEMS are due 30 days after completion of performance evaluations. §63.9(h)(4) is reserved.

Except that §63.9(h) only applies as specified in §63.6645.
§63.9(i)
Adjustment of submittal deadlines
Yes.

§63.9(j)
Change in previous information
Yes.

§63.10(a)
Administrative provisions for recordkeeping/reporting
Yes.

§63.10(b)(1)
Record retention
Yes.

§63.10(b)(2)(i) - (v)
Records related to SSM
No.

§63.10(b)(2)(vi) - (xi)
Records
Yes.

§63.10(b)(2)(xii)
Record when under waiver
Yes.

§63.10(b)(2)(xiii)
Records when using alternative to RATA
Yes
For CO standard if using RATA alternative.
§63.10(b)(2)(xiv)
Records of supporting documentation
Yes.

§63.10(b)(3)
Records of applicability determination
Yes.

§63.10(c)
Additional records for sources using CEMS
Yes
Except that §63.10(c)(2) - (4) and (9) are reserved.
§63.10(d)(1)
General reporting requirements
Yes.

§63.10(d)(2)
Report of performance test results
Yes.

§63.10(d)(3)
Reporting opacity or VE observations
No
Subpart ZZZZ does not contain opacity or VE standards.
§63.10(d)(4)
Progress reports
Yes.

§63.10(d)(5)
Startup, shutdown, and malfunction reports
No.

§63.10(e)(1) and (2)(i)
Additional CMS Reports
Yes.

§63.10(e)(2)(ii)
COMS-related report
No
Subpart ZZZZ does not require COMS.
§63.10(e)(3)
Excess emission and parameter exceedances reports
Yes.
Except that §63.10(e)(3)(i) (C) is reserved.
§63.10(e)(4)
Reporting COMS data
No
Subpart ZZZZ does not require COMS.
§63.10(f)
Waiver for recordkeeping/reporting
Yes.

§63.11
Flares
No.

§63.12
State authority and delegations
Yes.

§63.13
Addresses
Yes.

§63.14
Incorporation by reference
Yes.

§63.15
Availability of information
Yes.

                                  	Appendix A

Protocol for Using an Electrochemical Analyzer to Determine Oxygen and Carbon Monoxide Concentrations from Certain Engines

1.0 Scope and Application. What is this Protocol?
This protocol is a procedure for using portable electrochemical (EC) cells for measuring carbon monoxide (CO) and oxygen (O2) concentrations in controlled and uncontrolled emissions from existing stationary 4-stroke lean burn and 4-stroke rich burn reciprocating internal combustion engines as specified in the applicable rule.
1.1 Analytes. What does this protocol determine?
This protocol measures the engine exhaust gas concentrations of carbon monoxide (CO) and oxygen (O2).
                                    Analyte
                                    CAS No.
                                  Sensitivity
                             Carbon monoxide (CO)
                                   630-08-0
Minimum detectable limit should be 2 percent of the nominal range or 1 ppm, whichever is less restrictive.
                                  Oxygen (O2)
                                   7782-44-7

1.2 Applicability. When is this protocol acceptable?
This protocol is applicable to 40 CFR part 63, subpart ZZZZ. Because of inherent cross sensitivities of EC cells, you must not apply this protocol to other emissions sources without specific instruction to that effect.
1.3 Data Quality Objectives. How good must my collected data be?
Refer to Section 13 to verify and document acceptable analyzer performance.
1.4 Range. What is the targeted analytical range for this protocol?
The measurement system and EC cell design(s) conforming to this protocol will determine the analytical range for each gas component. The nominal ranges are defined by choosing up-scale calibration gas concentrations near the maximum anticipated flue gas concentrations for CO and O2, or no more than twice the permitted CO level.
1.5 Sensitivity. What minimum detectable limit will this protocol yield for a particular gas component?
The minimum detectable limit depends on the nominal range and resolution of the specific EC cell used, and the signal to noise ratio of the measurement system. The minimum detectable limit should be 2 percent of the nominal range or 1 ppm, whichever is less restrictive.
2.0 Summary of Protocol
In this protocol, a gas sample is extracted from an engine exhaust system and then conveyed to a portable EC analyzer for measurement of CO and O2 gas concentrations. This method provides measurement system performance specifications and sampling protocols to ensure reliable data. You may use additions to, or modifications of vendor supplied measurement systems (e.g., heated or unheated sample lines, thermocouples, flow meters, selective gas scrubbers, etc.) to meet the design specifications of this protocol. Do not make changes to the measurement system from the as-verified configuration (Section 3.12).
3.0 Definitions
3.1 Measurement System. The total equipment required for the measurement of CO and O2 concentrations. The measurement system consists of the following major subsystems:
3.1.1 Data Recorder. A strip chart recorder, computer or digital recorder for logging measurement data from the analyzer output. You may record measurement data from the digital data display manually or electronically.
3.1.2 Electrochemical (EC) Cell. A device, similar to a fuel cell, used to sense the presence of a specific analyte and generate an electrical current output proportional to the analyte concentration.
3.1.3 Interference Gas Scrubber. A device used to remove or neutralize chemical compounds that may interfere with the selective operation of an EC cell.
3.1.4 Moisture Removal System. Any device used to reduce the concentration of moisture in the sample stream so as to protect the EC cells from the damaging effects of condensation and to minimize errors in measurements caused by the scrubbing of soluble gases.
3.1.5 Sample Interface. The portion of the system used for one or more of the following: sample acquisition; sample transport; sample conditioning or protection of the EC cell from any degrading effects of the engine exhaust effluent; removal of particulate matter and condensed moisture.
3.2 Nominal Range. The range of analyte concentrations over which each EC cell is operated (normally 25 percent to 150 percent of up-scale calibration gas value). Several nominal ranges can be used for any given cell so long as the calibration and repeatability checks for that range remain within specifications.
3.3 Calibration Gas. A vendor certified concentration of a specific analyte in an appropriate balance gas.
3.4 Zero Calibration Error. The analyte concentration output exhibited by the EC cell in response to zero-level calibration gas.
3.5 Up-Scale Calibration Error. The mean of the difference between the analyte concentration exhibited by the EC cell and the certified concentration of the up-scale calibration gas.
3.6 Interference Check. A procedure for quantifying analytical interference from components in the engine exhaust gas other than the targeted analytes.
3.7 Repeatability Check. A protocol for demonstrating that an EC cell operated over a given nominal analyte concentration range provides a stable and consistent response and is not significantly affected by repeated exposure to that gas.
3.8 Sample Flow Rate. The flow rate of the gas sample as it passes through the EC cell. In some situations, EC cells can experience drift with changes in flow rate. The flow rate must be monitored and documented during all phases of a sampling run.
3.9 Sampling Run. A timed three-phase event whereby an EC cell's response rises and plateaus in a sample conditioning phase, remains relatively constant during a measurement data phase, then declines during a refresh phase. The sample conditioning phase exposes the EC cell to the gas sample for a length of time sufficient to reach a constant response. The measurement data phase is the time interval during which gas sample measurements can be made that meet the acceptance criteria of this protocol. The refresh phase then purges the EC cells with CO-free air. The refresh phase replenishes requisite O2 and moisture in the electrolyte reserve and provides a mechanism to de-gas or desorb any interference gas scrubbers or filters so as to enable a stable CO EC cell response. There are four primary types of sampling runs: pre- sampling calibrations; stack gas sampling; post-sampling calibration checks; and measurement system repeatability checks. Stack gas sampling runs can be chained together for extended evaluations, providing all other procedural specifications are met.
3.10 Sampling Day. A time not to exceed twelve hours from the time of the pre-sampling calibration to the post-sampling calibration check. During this time, stack gas sampling runs can be repeated without repeated recalibrations, providing all other sampling specifications have been met.
3.11 Pre-Sampling Calibration/Post-Sampling Calibration Check. The protocols executed at the beginning and end of each sampling day to bracket measurement readings with controlled performance checks.
3.12 Performance-Established Configuration. The EC cell and sampling system configuration that existed at the time that it initially met the performance requirements of this protocol.
4.0 Interferences.
When present in sufficient concentrations, NO and NO2 are two gas species that have been reported to interfere with CO concentration measurements. In the likelihood of this occurrence, it is the protocol user's responsibility to employ and properly maintain an appropriate CO EC cell filter or scrubber for removal of these gases, as described in Section 6.2.12.
5.0 Safety. [Reserved]
6.0 Equipment and Supplies.
6.1 What equipment do I need for the measurement system?
The system must maintain the gas sample at conditions that will prevent moisture condensation in the sample transport lines, both before and as the sample gas contacts the EC cells. The essential components of the measurement system are described below.
6.2 Measurement System Components.
6.2.1 Sample Probe. A single extraction-point probe constructed of glass, stainless steel or other non-reactive material, and of length sufficient to reach any designated sampling point. The sample probe must be designed to prevent plugging due to condensation or particulate matter.
6.2.2 Sample Line. Non-reactive tubing to transport the effluent from the sample probe to the EC cell.
6.2.3 Calibration Assembly (optional). A three-way valve assembly or equivalent to introduce calibration gases at ambient pressure at the exit end of the sample probe during calibration checks. The assembly must be designed such that only stack gas or calibration gas flows in the sample line and all gases flow through any gas path filters.
6.2.4 Particulate Filter (optional). Filters before the inlet of the EC cell to prevent accumulation of particulate material in the measurement system and extend the useful life of the components. All filters must be fabricated of materials that are non-reactive to the gas mixtures being sampled.
6.2.5 Sample Pump. A leak-free pump to provide undiluted sample gas to the system at a flow rate sufficient to minimize the response time of the measurement system. If located upstream of the EC cells, the pump must be constructed of a material that is non-reactive to the gas mixtures being sampled.
6.2.8 Sample Flow Rate Monitoring. An adjustable rotameter or equivalent device used to adjust and maintain the sample flow rate through the analyzer as prescribed.
6.2.9 Sample Gas Manifold (optional). A manifold to divert a portion of the sample gas stream to the analyzer and the remainder to a by-pass discharge vent. The sample gas manifold may also include provisions for introducing calibration gases directly to the analyzer. The manifold must be constructed of a material that is non-reactive to the gas mixtures being sampled.
6.2.10 EC cell. A device containing one or more EC cells to determine the CO and O2 concentrations in the sample gas stream. The EC cell(s) must meet the applicable performance specifications of Section 13 of this protocol.
6.2.11 Data Recorder. A strip chart recorder, computer or digital recorder to make a record of analyzer output data. The data recorder resolution (i.e., readability) must be no greater than 1 ppm for CO; 0.1 percent for O2; and one degree (either [o]C or [o]F) for temperature. Alternatively, you may use a digital or analog meter having the same resolution to observe and manually record the analyzer responses.
6.2.12 Interference Gas Filter or Scrubber. A device to remove interfering compounds upstream of the CO EC cell. Specific interference gas filters or scrubbers used in the performance-established configuration of the analyzer must continue to be used. Such a filter or scrubber must have a means to determine when the removal agent is exhausted. Periodically replace or replenish it in accordance with the manufacturer's recommendations.
7.0 Reagents and Standards. What calibration gases are needed?
7.1 Calibration Gases. CO calibration gases for the EC cell must be CO in nitrogen or CO in a mixture of nitrogen and O2. Use CO calibration gases with labeled concentration values certified by the manufacturer to be within +- 5 percent of the label value. Dry ambient air (20.9 percent O2) is acceptable for calibration of the O2 cell. If needed, any lower percentage O2 calibration gas must be a mixture of O2 in nitrogen.
7.1.1 Up-Scale CO Calibration Gas Concentration.
Choose one or more up-scale gas concentrations such that the average of the stack gas measurements for each stack gas sampling run are between 25 and 150 percent of those concentrations. Alternatively, choose an up-scale gas that does not exceed twice the concentration of the applicable outlet standard. If a measured gas value exceeds 150 percent of the up-scale CO calibration gas value at any time during the stack gas sampling run, the run must be discarded and repeated.
7.1.2 Up-Scale O2 Calibration Gas Concentration.
Select an O2 gas concentration such that the difference between the gas concentration and the average stack gas measurement or reading for each sample run is less than 15 percent O2. When the average exhaust gas O2 readings are above 6 percent, you may use dry ambient air (20.9 percent O2) for the up-scale O2 calibration gas.
7.1.3 Zero Gas. Use an inert gas that contains less than 0.25 percent of the up-scale CO calibration gas concentration. You may use dry air that is free from ambient CO and other combustion gas products (e.g., CO2).
8.0 Sample Collection and Analysis
8.1 Selection of Sampling Sites.
8.1.1 Control Device Inlet. Select a sampling site sufficiently downstream of the engine so that the combustion gases should be well mixed. Use a single sampling extraction point near the center of the duct (e.g., within the 10 percent centroidal area), unless instructed otherwise.
8.1.2 Exhaust Gas Outlet. Select a sampling site located at least two stack diameters downstream of any disturbance (e.g., turbocharger exhaust, crossover junction or recirculation take-off) and at least one-half stack diameter upstream of the gas discharge to the atmosphere. Use a single sampling extraction point near the center of the duct (e.g., within the 10 percent centroidal area), unless instructed otherwise.
8.2 Stack Gas Collection and Analysis. Prior to the first stack gas sampling run, conduct that the pre-sampling calibration in accordance with Section 10.1. Use Figure 1 to record all data. Zero the analyzer with zero gas. Confirm and record that the scrubber media color is correct and not exhausted. Then position the probe at the sampling point and begin the sampling run at the same flow rate used during the up-scale calibration. Record the start time. Record all EC cell output responses and the flow rate during the "sample conditioning phase" once per minute until constant readings are obtained. Then begin the "measurement data phase" and record readings every 15 seconds for at least two minutes (or eight readings), or as otherwise required to achieve two continuous minutes of data that meet the specification given in Section 13.1. Finally, perform the "refresh phase" by introducing dry air, free from CO and other combustion gases, until several minute-to-minute readings of consistent value have been obtained. For each run use the "measurement data phase" readings to calculate the average stack gas CO and O2 concentrations.
8.3 EC Cell Rate. Maintain the EC cell sample flow rate so that it does not vary by more than +- 10 percent throughout the pre-sampling calibration, stack gas sampling and post-sampling calibration check. Alternatively, the EC cell sample flow rate can be maintained within a tolerance range that does not affect the gas concentration readings by more than +- 3 percent, as instructed by the EC cell manufacturer.
9.0 Quality Control (Reserved)
10.0 Calibration and Standardization
10.1 Pre-Sampling Calibration. Conduct the following protocol once for each nominal range to be used on each EC cell before performing a stack gas sampling run on each field sampling day. Repeat the calibration if you replace an EC cell before completing all of the sampling runs. There is no prescribed order for calibration of the EC cells; however, each cell must complete the measurement data phase during calibration. Assemble the measurement system by following the manufacturer's recommended protocols including for preparing and preconditioning the EC cell. Assure the measurement system has no leaks and verify the gas scrubbing agent is not depleted. Use Figure 1 to record all data.
10.1.1 Zero Calibration. For both the O2 and CO cells, introduce zero gas to the measurement system (e.g., at the calibration assembly) and record the concentration reading every minute until readings are constant for at least two consecutive minutes. Include the time and sample flow rate. Repeat the steps in this section at least once to verify the zero calibration for each component gas.
10.1.2 Zero Calibration Tolerance. For each zero gas introduction, the zero level output must be less than or equal to +- 3 percent of the up-scale gas value or +- 1 ppm, whichever is less restrictive, for the CO channel and less than or equal to +- 0.3 percent O2 for the O2 channel.
10.1.3 Up-Scale Calibration. Individually introduce each calibration gas to the measurement system (e.g., at the calibration assembly) and record the start time. Record all EC cell output responses and the flow rate during this "sample conditioning phase" once per minute until readings are constant for at least two minutes. Then begin the "measurement data phase" and record readings every 15 seconds for a total of two minutes, or as otherwise required. Finally, perform the "refresh phase" by introducing dry air, free from CO and other combustion gases, until readings are constant for at least two consecutive minutes. Then repeat the steps in this section at least once to verify the calibration for each component gas. Introduce all gases to flow through the entire sample handling system (i.e., at the exit end of the sampling probe or the calibration assembly).
10.1.4 Up-Scale Calibration Error. The mean of the difference of the "measurement data phase" readings from the reported standard gas value must be less than or equal to +- 5 percent or +- 1 ppm for CO or +- 0.5 percent O2, whichever is less restrictive, respectively. The maximum allowable deviation from the mean measured value of any single "measurement data phase" reading must be less than or equal to +- 2 percent or +- 1 ppm for CO or
+- 0.5 percent O2, whichever is less restrictive, respectively.
10.2 Post-Sampling Calibration Check. Conduct a stack gas post-sampling calibration check after the stack gas sampling run or set of runs and within 12 hours of the initial calibration. Conduct up-scale and zero calibration checks using the protocol in Section 10.1. Make no changes to the sampling system or EC cell calibration until all post-sampling calibration checks have been recorded. If either the zero or up-scale calibration error exceeds the respective specification in Sections 10.1.2 and 10.1.4 then all measurement data collected since the previous successful calibrations are invalid and re-calibration and re-sampling are required. If the sampling system is disassembled or the EC cell calibration is adjusted, repeat the calibration check before conducting the next analyzer sampling run.
11.0 Analytical Procedure
The analytical procedure is fully discussed in Section 8.
12.0 Calculations and Data Analysis
Determine the CO and O2 concentrations for each stack gas sampling run by calculating the mean gas concentrations of the data recorded during the "measurement data phase".
13.0 Protocol Performance
Use the following protocols to verify consistent analyzer performance during each field sampling day.
13.1 Measurement Data Phase Performance Check. Calculate the mean of the readings from the "measurement data phase". The maximum allowable deviation from the mean for each of the individual readings is +- 2 percent, or +- 1 ppm, whichever is less restrictive. Record the mean value and maximum deviation for each gas monitored. Data must conform to Section 10.1.4. The EC cell flow rate must conform to the specification in Section 8.3.
Example: A measurement data phase is invalid if the maximum deviation of any single reading comprising that mean is greater than +- 2 percent or +- 1 ppm (the default criteria). For example, if the mean = 30 ppm, single readings of below 29 ppm and above 31 ppm are disallowed).
13.2 Interference Check. Before the initial use of the EC cell and interference gas scrubber in the field, and semi-annually thereafter, challenge the interference gas scrubber with NO and NO2 gas standards that are generally recognized as representative of diesel-fueled engine NO and NO2 emission values. Record the responses displayed by the CO EC cell and other pertinent data on Figure 1 or a similar form.
13.2.1 Interference Response. The combined NO and NO2 interference response should be less than or equal to +- 5 percent of the up-scale CO calibration gas concentration.
13.3 Repeatability Check. Conduct the following check once for each nominal range that is to be used on the CO EC cell within five days prior to each field sampling program. If a field sampling program lasts longer than five days, repeat this check every five days. Immediately repeat the check if the EC cell is replaced or if the EC cell is exposed to gas concentrations greater than 150 percent of the highest up-scale gas concentration.
13.3.1 Repeatability Check Procedure. Perform a complete EC cell  sampling run (all three phases) by introducing the CO calibration gas to the measurement system and record the response. Follow Section 10.1.3. Use Figure 1 to record all data. Repeat the run three times for a total of four complete runs. During the four repeatability check runs, do not adjust the system except where necessary to achieve the correct calibration gas flow rate at the analyzer.
13.3.2 Repeatability Check Calculations. Determine the highest and lowest average "measurement data phase" CO concentrations from the four repeatability check runs and record the results on Figure 1 or a similar form. The absolute value of the difference between the maximum and minimum average values recorded must not vary more than +- 3 percent or +- 1 ppm of the up-scale gas value, whichever is less restrictive.
14.0 Pollution Prevention (Reserved)
15.0 Waste Management (Reserved)
16.0 Alternative Procedures (Reserved)
17.0 References
(1) "Development of an Electrochemical Cell Emission Analyzer Test Protocol", Topical Report, Phil Juneau, Emission Monitoring, Inc., July 1997.
(2) "Determination of Nitrogen Oxides, Carbon Monoxide, and Oxygen Emissions from Natural Gas-Fired Engines, Boilers, and Process Heaters Using Portable Analyzers", EMC Conditional Test Protocol 30 (CTM-30), Gas Research Institute Protocol GRI-96/0008, Revision 7, October 13, 1997.
(3) "ICAC Test Protocol for Periodic Monitoring", EMC Conditional Test Protocol 34 (CTM-034), The Institute of Clean Air Companies, September 8, 1999.
(4) "Code of Federal Regulations", Protection of Environment,
40 CFR, Part 60, Appendix A, Methods 1-4; 10.

Table 1:  Appendix A - Sampling Run Data.

Facility________________ Engine I.D.______________ Date_________

 Run Type:    (__)         (__)       (__)          (__)
  (X)       Pre-Sample   Stack Gas  Post-Sample   Repeatability
            Calibration   Sample    Cal. Check     Check

Run #
1
 1
2
 2
3
 3
4
 4
Time
Scrub.
OK
Flow-
Rate
Gas
O2
CO
O2
CO
O2
CO
O2
CO

Sample Cond.
Phase

"

"

"

"

Measure-
ment
Data Phase

"

"

"

"

"

"

"

"

"

"

   Mean

Refresh
Phase

"

"

"

"


[Federal Register Volume 85, Number 185 (Wednesday, September 23, 2020)]
[Notices]
[Page 59785]
[FR Doc No: 2020-20985]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD20-14-000]

Carbon Pricing in Organized Wholesale Electricity Markets;
Supplemental Notice of Technical Conference

    As announced in the Notice \1\ of Technical Conference issued in
this proceeding on June 17, 2020, the Federal Energy Regulatory
Commission (Commission) will convene a Commissioner-led technical
conference in the above-referenced proceeding on Wednesday, September
30, 2020, from approximately 9:00 a.m. to 6:00 p.m. Eastern time. The
conference will be held electronically.
---------------------------------------------------------------------------

    \1\ 18 CFR 2.1 (2020).
---------------------------------------------------------------------------

    The purpose of this conference is to discuss considerations related
to state-adoption of mechanisms to price carbon dioxide emissions,
commonly referred to as carbon pricing, in regions with Commission-
jurisdictional organized wholesale electricity markets (i.e., regions
with regional transmission organizations/independent system operators,
or RTOs/ISOs). This conference will focus on carbon pricing approaches
where a state (or group of states) sets an explicit carbon price,
whether through a price-based or quantity-based approach, and how that
carbon price intersects with RTO/ISO-administered markets, addressing
both legal and technical issues.
    A revised agenda and list of panelists for this conference are
attached. All changes to the agenda since the Commission's August 28,
2020 Supplemental Notice of Technical Conference appear in italics.
    There is no fee for attendance, and the conference will be webcast
for the public to attend electronically. Information on this technical
conference, including a link to the webcast, will also be posted on
this conference's event page on the Commission's website, www.ferc.gov/news-events/events/technical-conference-regarding-carbon-pricing-organized-wholesale-electricity, prior to the event. The conference
will be transcribed. Transcripts will be available for a fee from Ace
Reporting,<PHONE_NUMBER>.
    Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations, please
send an email to<EMAIL_ADDRESS>call toll-free<PHONE_NUMBER>
(voice) or<PHONE_NUMBER> (TTY), or send a fax to<PHONE_NUMBER> with
the required accommodations.
    For more information about this technical conference, please
contact:

John Miller (Technical Information), Office of Energy Market
Regulation,<PHONE_NUMBER><EMAIL_ADDRESS>Anne Marie Hirschberger (Legal Information), Office of the General
Counsel,<PHONE_NUMBER><EMAIL_ADDRESS>Sarah McKinley (Logistical Information), Office of External Affairs,
(202) 502-8004<EMAIL_ADDRESS>
    Dated: September 16, 2020.
Kimberly D. Bose,
Secretary.
[FR Doc. 2020-20985 Filed 9-22-20; 8:45 am]
BILLING CODE 6717-01-P