[Federal Register Volume 83, Number 181 (Tuesday, September 18, 2018)]
[Notices]
[Pages 47210-47215]
[FR Doc No: 2018-20237]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84107; File No. SR-CboeBZX-2018-070]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To List
and Trade Shares of the iShares iBonds Dec 2025 Term Muni Bond ETF of
iShares Trust Under BZX Rule 14.11(c)(4) (Index Fund Shares)

September 13, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 30, 2018, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'')
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 Exchange. The Exchange has designated this
proposal as a ``non-controversial'' proposed rule change pursuant to
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)(iii)
thereunder,\4\ which renders it effective upon filing with the
Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is proposing to list and trade under BZX Rule
14.11(c)(4) the shares of the iShares iBonds Dec 2025 Term Muni Bond
ETF (the ``Fund'') of iShares Trust (the ``Trust'').
    The text of the proposed rule change is available at the Exchange's
website at www.markets.cboe.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 Exchange 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 Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.

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

1. Purpose
    The Exchange proposes to list and trade shares (``Shares'') of the
Fund under BZX Rule 14.11(c)(4),\5\ which governs the listing and
trading of index fund shares based on fixed income securities
indexes.\6\ The Shares will be

offered by the Trust, which was established as a Delaware statutory
trust on December 16, 1999. The Trust is registered with the Commission
as an open-end investment company and has filed a registration
statement on behalf of the Fund on Form N-1A (``Registration
Statement'') with the Commission.\7\
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    \5\ The Commission approved BZX Rule 14.11(c) in Securities
Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148
(September 6, 2011) (SR-BATS-2011-018).
    \6\ The Commission previously has approved proposed rule changes
relating to listing and trading of funds based on municipal bond
indexes. See Securities Exchange Act Release Nos. 78329 (July 14,
2016), 81 FR 47217 (July 20, 2016) (SR-BatsBZX-2016-01) (order
approving the listing and trading of the following series of VanEck
Vectors ETF Trust: VanEck Vectors AMT-Free 6-8 Year Municipal Index
ETF; VanEck Vectors AMT-Free 8-12 Year Municipal Index ETF; and
VanEck Vectors AMT-Free 12-17 Year Municipal Index ETF); 67985
(October 4, 2012), 77 FR 61804 (October 11, 2012) (SR-NYSEArca-2012-
92) (order approving proposed rule change relating to the listing
and trading of iShares 2018 S&P AMT-Free Municipal Series and
iShares 2019 S&P AMT-Free Municipal Series under NYSE Arca, Inc.
(``NYSE Arca'') Rule 5.2(j)(3), Commentary .02); 72523 (July 2,
2014), 79 FR 39016 (July 9, 2014) (SR-NYSEArca-2014-37) (order
approving proposed rule change relating to the listing and trading
of iShares 2020 S&P AMT-Free Municipal Series under NYSE Arca Rule
5.2(j)(3), Commentary .02); and 75468 (July 16, 2015), 80 FR 43500
(July 22, 2015) (SR-NYSEArca-2015-25) (order approving proposed rule
change relating to the listing and trading of the iShares iBonds Dec
2021 AMT-Free Muni Bond ETF and iShares iBonds Dec 2022 AMT-Free
Muni Bond ETF under NYSE Arca Rule 5.2(j)(3), Commentary .02).
    \7\ See Registration Statement on Form N-1A for the Trust, dated
[DATE] [sic] (File Nos. 333-92935 and 811-09729). The descriptions
of the Fund and the Shares contained herein are based, in part, on
information in the Registration Statement. The Commission has issued
an order granting certain exemptive relief to the Trust under the
Investment Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') (the
``Exemptive Order''). See Investment Company Act Release No. 28021
(October 24, 2007) (File No. 812-13426).
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    Rule 14.11(c)(4)(B)(i)(b) requires that component fixed income
securities that, in the aggregate, account for at least 75% of the
weight of the index or portfolio shall have a minimum principal amount
outstanding of $100 million or more. The Exchange submits this proposal
because the Underlying Index does not meet this requirement. The
Underlying Index does, however, meet all of the other requirements of
Rule 14.11(c)(4).
Description of the Shares and the Fund
    BlackRock Fund Advisors (``BFA'') is the investment adviser to the
Fund.\8\ State Street Bank and Trust Company is the administrator,
custodian, and transfer agent for the Trust. S&P is the index provider
(the ``Index Provider'') for the Fund. BlackRock Investments, LLC
serves as the distributor for the Trust.
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    \8\ BFA is an indirect wholly owned subsidiary of BlackRock,
Inc.
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S&P AMT-Free Municipal Series Dec 2025 Index
    According to the Registration Statement, the Fund will seek to
track the investment results, before fees and expenses, of the S&P AMT-
Free Municipal Series Dec 2025 Index (the ``Underlying Index''), which
measures the performance of investment-grade (as determined by Index
Provider), non-callable U.S. municipal bonds maturing in 2025. The
Underlying Index includes municipal bonds from issuers that are state
or local governments or agencies such that the interest on each such
bond is exempt from U.S. federal income taxes and the federal
alternative minimum tax (``AMT'') (``Municipal Securities'').
    As of July 13, 2018, the Underlying Index included 4,823 component
fixed income municipal bond securities from issuers in 51 different
states or U.S. territories.\9\ The most heavily weighted security in
the Underlying Index represented approximately 1.10% of the total
weight of the Underlying Index and the aggregate weight of the top five
most heavily weighted securities in the Underlying Index represented
less than 2.98% of the total weight of the Underlying Index.
Approximately 6.73% of the weight of the components in the Underlying
Index had a minimum original principal outstanding of $100 million or
more and 75.56% of the weight of the components were a constituent of
an offering where the original offering amount was at least $100
million. In addition, the total dollar amount outstanding of issues in
the Underlying Index was approximately $40,600,000,000 and the average
dollar amount outstanding of issues in the Underlying Index was
approximately $8,419,000.
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    \9\ Unless otherwise noted, all statistics related to the
Underlying Index presented hereafter were accurate as of July 13,
2018.
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Requirement for Index Constituents
    Each bond in the Underlying Index must be denominated in U.S.
dollars, must have a minimum par amount of $2 million. To remain in the
Underlying Index, bonds must maintain a minimum par amount greater than
or equal to $2 million as of the next rebalancing date. The Underlying
Index includes Municipal Securities from issuers that are state or
local governments or agencies such that the interest on each such bond
is exempt from U.S. federal income taxes and the AMT. Each bond in the
Underlying Index must be investment-grade (i.e., have a rating of at
least BBB- by S&P Global Ratings, Baa3 by Moody's Investors Service,
Inc., or BBB- by Fitch Ratings, Inc.). A bond must be rated by at least
one of these three rating agencies in order to qualify for the
Underlying Index, and the lowest rating will be used in determining if
the bond is investment-grade. All bonds in the Underlying Index will
mature after December 31, 2024 and before December 2, 2025. The
Underlying Index will also contain at least 500 component securities.
Portfolio Holdings
    The Fund's holdings may include only the following types of
Municipal Securities: General obligation bonds,\10\ limited obligation
bonds (or revenue bonds),\11\ municipal notes,\12\ municipal commercial
paper,\13\ tender option bonds,\14\ variable rate notes and demand
obligations (``VRDOs''),\15\ municipal lease obligations,\16\ stripped
securities,\17\ structured securities,\18\ and zero coupon
securities.\19\
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    \10\ General obligation bonds are obligations involving the
credit of an issuer possessing taxing power and are payable from
such issuer's general revenues and not from any particular source.
    \11\ Limited obligation bonds are payable only from the revenues
derived from a particular facility or class of facilities or, in
some cases, from the proceeds of a special excise or other specific
revenue source, and also include industrial development bonds issued
pursuant to former U.S. federal tax law. Industrial development
bonds generally are also revenue bonds and thus are not payable from
the issuer's general revenues. The credit and quality of industrial
development bonds are usually related to the credit of the corporate
user of the facilities. Payment of interest on and repayment of
principal of such bonds is the responsibility of the corporate user
(and/or any guarantor).
    \12\ Municipal notes are shorter-term municipal debt obligations
that may provide interim financing in anticipation of tax
collection, receipt of grants, bond sales, or revenue receipts.
    \13\ Municipal commercial paper is generally unsecured debt that
is issued to meet short-term financing needs.
    \14\ Tender option bonds are synthetic floating-rate or
variable-rate securities issued when long-term bonds are purchased
in the primary or secondary market and then deposited into a trust.
Custodial receipts are then issued to investors, such as the Fund,
evidencing ownership interests in the trust.
    \15\ VRDOs are tax-exempt obligations that contain a floating or
variable interest rate adjustment formula and a right of demand on
the part of the holder thereof to receive payment of the unpaid
principal balance plus accrued interest upon a short notice period
not to exceed seven days.
    \16\ Municipal lease obligations include certificates of
participation issued by government authorities or entities to
finance the acquisition or construction of equipment, land, and/or
facilities.
    \17\ Stripped securities are created when an issuer separates
the interest and principal components of an instrument and sells
them as separate securities. In general, one security is entitled to
receive the interest payments on the underlying assets and the other
to receive the principal payments.
    \18\ Structured securities are privately negotiated debt
obligations where the principal and/or interest is determined by
reference to the performance of an underlying investment, index, or
reference obligation, and may be issued by governmental agencies.
While structured securities are part of the principal holdings of
the Fund, the Issuer represents that such securities, when combined
with those instruments held as part of the other portfolio holdings
described below, will not exceed 20% of the Fund's net assets.
    \19\ Zero coupon securities are securities that are sold at a
discount to par value and do not pay interest during the life of the
security. The discount approximates the total amount of interest the
security will accrue and compound over the period until maturity at
a rate of interest reflecting the market rate of the security at the
time of issuance. Upon maturity, the holder of a zero coupon
security is entitled to receive the par value of the security.

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    Under normal market conditions,\20\ the Fund will invest at least
90% of its assets in the component securities of the Underlying Index,
except during the last months of the Fund's operations. With respect to
the remaining 10% of its assets, the Fund may invest in certain
futures, options and swap contracts,\21\ cash and cash equivalents,
including shares of money market funds advised by BFA or its
affiliates, as well as in Municipal Securities not included in the
Underlying Index, but which BFA believes will help the Fund track the
Underlying Index. From time to time when conditions warrant, however,
the Fund may invest at least 80% of its assets in the component
securities of the Underlying Index.
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    \20\ The term ``normal market conditions'' includes, but is not
limited to, the absence of trading halts in the applicable financial
markets generally; operational issues (e.g., systems failure)
causing dissemination of inaccurate market information; or force
majeure type events such as natural or manmade disaster, act of God,
armed conflict, act of terrorism, riot or labor disruption or any
similar intervening circumstance.
    \21\ Such futures, options and swap contracts will include only
the following: Interest rate futures, interest rate options, and
interest rate swaps. The derivatives will be centrally cleared and
they will be collateralized. At least 90% of the Fund's net assets
that are invested in listed derivatives will be invested in
instruments that trade in markets that are members or affiliates of
members of the Intermarket Surveillance Group (``ISG'') or are
parties to a comprehensive surveillance sharing with the Exchange.
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    In the last months of operation, as the bonds held by the Fund
mature, the proceeds will not be reinvested in bonds but instead will
be held in cash and cash equivalents, including, without limitation,
shares of money market funds advised by BFA or its affiliates
(``BlackRock Cash Funds''), AMT-free tax-exempt municipal notes,
variable rate demand notes and obligations, tender option bonds and
municipal commercial paper. These cash equivalents may not be included
in the Fund's benchmark index.
Discussion
    Based on the characteristics of the Underlying Index and the
representations made in the Requirements for Index Constituents section
above, the Exchange believes it is appropriate to allow the listing and
trading of the Shares. The Underlying Index and Fund satisfy all of the
generic listing requirements for Index Fund Shares based on a fixed
income index, except for the minimum principal amount outstanding
requirement of 14.11(c)(4)(B)(i)(b). The Exchange notes that the
representations in the Requirements for Index Constituents for the
Underlying Index are identical to the representations made regarding
the S&P AMT-Free Municipal Series Dec 2023 Index and the S&P AMT-Free
Municipal Series Dec 2024 Index (the ``Comparable Indexes''), each
underlying a series of Index Fund Shares that were previously approved
for listing and trading by the Commission.\22\
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    \22\ See Securities Exchange Act Release No. 79381 (November 22,
2016), 81 FR 86044 (November 29, 2016) (SR-BatsBZX-2016-48) (Order
Granting Accelerated Approval of a Proposed Rule Change, as Modified
by Amendments No. 1 and No. 2 Thereto, To List and Trade Shares of
the iShares iBonds Dec 2023 Term Muni Bond ETF and iShares iBonds
Dec 2024 Term Muni Bond ETF of the iShares U.S. ETF Trust Pursuant
to BZX Rule 14.11(c)(4)) (the ``Approval Order'').
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    The Approval Order included the representation that a bond must be
investment-grade and must have an outstanding par value of at least $2
million in order to be included in the Comparable Indexes. To remain in
the Underlying Index, bonds must be investment-grade and maintain a
minimum par amount greater than or equal to $2 million and, further,
BFA has represented that the Underlying Index will have at least 500
constituents on a continuous basis. As such, the Exchange believes that
the proposal is consistent with the Act because the representations
regarding the quality and size of the issuances included in the
Underlying Index provide a strong degree of protection against index
manipulation that is consistent with other proposals that have been
approved for listing and trading by the Commission, which is only
furthered by the additional representation that the Underlying Index
will have at least 500 constituents on a continuous basis, which
ensures diversification among constituent securities.
    In addition, the Exchange represents that: (1) Except for Rule
14.11(c)(4)(B)(i)(b), the Underlying Index currently satisfies all of
the generic listing standards under Rule 14.11(c)(4); (2) the continued
listing standards under Rule 14.11(c), as applicable to Index Fund
Shares based on fixed income securities, will apply to the Shares; and
(3) the issuer of the Fund is required to comply with Rule 10A-3 \23\
under the Act for the initial and continued listing of the Shares. In
addition, the Exchange represents that the Fund will comply with all
other requirements applicable to Index Fund Shares, including, but not
limited to, requirements relating to the dissemination of key
information such as the value of the Underlying Index and the Intraday
Indicative Value (``IIV''),\24\ rules governing the trading of equity
securities, trading hours, trading halts, surveillance, information
barriers and the Information Circular, as set forth in the Exchange
rules applicable to Index Fund Shares and prior Commission orders
approving the generic listing rules applicable to the listing and
trading of Index Fund Shares.
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    \23\ 17 CFR 240.10A-3.
    \24\ The IIV will be widely disseminated by one or more major
market data vendors at least every 15 seconds during the Exchange's
Regular Trading Hours. Currently, it is the Exchange's understanding
that several major market data vendors display and/or make widely
available IIVs taken from the Consolidated Tape Association
(``CTA'') or other data feeds.
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    The current value of the Underlying Index will be widely
disseminated by one or more major market data vendors at least once per
day, as required by Rule 14.11(c)(4)(C)(ii). The portfolio of
securities held by the Fund will be disclosed daily on the Fund's
website at www.ishares.com. Further, the Fund's website will contain
the Fund's prospectus and additional data relating to net asset value
(``NAV'') and other applicable quantitative information. The issuer has
represented that the NAV will be calculated daily and will be made
available to all market participants at the same time. The Index
Provider is not a broker-dealer and is not affiliated with a broker-
dealer. To the extent that the Index Provider becomes a broker-dealer
or becomes affiliated with a broker-dealer, the Index Provider will
implement and will maintain a ``fire wall'' around the personnel who
have access to information concerning changes and adjustments to the
Underlying Index and the Underlying Index shall be calculated by a
third party who is not a broker-dealer or fund advisor. In addition,
any advisory committee, supervisory board or similar entity that
advises the Index Provider or that makes decisions on the Index,
methodology and related matters, will implement and maintain, or be
subject to, procedures designed to prevent the use and dissemination of
material non-public information regarding the Underlying Index.
    The Exchange's existing rules require that the issuer of the Fund
notify the Exchange of any material change to the methodology used to
determine the composition of the Underlying Index and, therefore, if
the methodology of the Underlying Index was changed in a manner that
would materially alter its existing composition, the Exchange would
have advance notice and would evaluate the modifications to determine

whether the Underlying Index remained sufficiently broad-based and well
diversified.
Availability of Information
    The Fund's website, which will be publicly available prior to the
public offering of Shares, will include a form of the prospectus for
the Fund that may be downloaded. The website will include additional
quantitative information updated on a daily basis, including, for the
Fund: (1) The prior business day's reported NAV, daily trading volume,
and a calculation of the premium and discount of the Bid/Ask Price
against the NAV; and (2) data in chart format displaying the frequency
distribution of discounts and premiums of the daily Bid/Ask Price
against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. Daily trading volume information for the
Shares will also be available in the financial section of newspapers,
through subscription services such as Bloomberg, Thomson Reuters, and
International Data Corporation, which can be accessed by authorized
participants and other investors, as well as through other electronic
services, including major public websites. On each business day, the
Fund will disclose on its website the identities and quantities of the
portfolio of securities and other assets in the daily disclosed
portfolio held by the Fund that formed the basis for the Fund's
calculation of NAV at the end of the previous business day. The daily
disclosed portfolio will include, as applicable: The ticker symbol;
CUSIP number or other identifier, if any; a description of the holding
(including the type of holding, such as the type of swap); the identity
of the security, index or other asset or instrument underlying the
holding, if any; for options, the option strike price; quantity held
(as measured by, for example, par value, notional value or number of
shares, contracts, or units); maturity date, if any; coupon rate, if
any; effective date, if any; market value of the holding; and the
percentage weighting of the holding in the Fund's portfolio. The
website and information will be publicly available at no charge. The
value, components, and percentage weightings of the Underlying Index
will be calculated and disseminated at least once daily and will be
available from major market data vendors. Rules governing the
Underlying Index are available on S&P's website and in the Fund's
prospectus.
    In addition, an estimated value, defined in BZX Rule 14.11(c)(6)(A)
as the ``Intraday Indicative Value,'' that reflects an estimated
intraday value of the Fund's portfolio, will be disseminated. Moreover,
the Intraday Indicative Value will be based upon the current value for
the components of the daily disclosed portfolio and will be updated and
widely disseminated by one or more major market data vendors at least
every 15 seconds during the Exchange's Regular Trading Hours.\25\ In
addition, the quotations of certain of the Fund's holdings may not be
updated during U.S. trading hours if updated prices cannot be
ascertained.
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    \25\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available
Intraday Indicative Values published via the Consolidated Tape
Association (``CTA'') or other data feeds.
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    The dissemination of the Intraday Indicative Value, together with
the daily disclosed portfolio, will allow investors to determine the
value of the underlying portfolio of the Fund on a daily basis and
provide a close estimate of that value throughout the trading day.
    Quotation and last sale information for the Shares will be
available via the CTA high speed line. Price information regarding
Municipal Securities and other non-exchange traded assets including
certain derivatives, money market funds and other instruments, and
repurchase agreements is available from third party pricing services
and major market data vendors. For exchange-traded assets, including
futures, and certain options, such intraday information is available
directly from the applicable listing exchange. In addition, price
information for U.S. exchange-traded options will be available from the
Options Price Reporting Authority.
Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by the Financial
Industry Regulatory Authority (``FINRA'') on behalf of the Exchange, or
by regulatory staff of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities laws.
The Exchange represents that these procedures are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and federal securities
laws applicable to trading on the Exchange.\26\
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    \26\ FINRA conducts cross-market surveillances on behalf of the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
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    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations.
    The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares with other
markets and other entities that are members of the ISG, and the
Exchange or FINRA, on behalf of the Exchange, or both, may obtain
trading information regarding trading in the Shares from such markets
and other entities. In addition, the Exchange may obtain information
regarding trading in the Shares from markets and other entities that
are members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement. In addition, FINRA, on
behalf of the Exchange, is able to access, as needed, trade information
for certain fixed income securities held by a Fund reported to FINRA's
Trade Reporting and Compliance Engine (``TRACE''). FINRA also can
access data obtained from the Municipal Securities Rulemaking Board's
Electronic Municipal Market Access (``EMMA'') system relating to
municipal bond trading activity for surveillance purposes in connection
with trading in the Shares.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \27\ in general and Section 6(b)(5) of the Act \28\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest.
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    \27\ 15 U.S.C. 78f [sic].
    \28\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria for Index Fund Shares based on a
fixed income index in Rule 14.11(c)(4), except for the minimum
principal amount outstanding requirement of 14.11(c)(4)(B)(i)(b). The

Exchange represents that trading in the Shares will be subject to the
existing trading surveillances administered by the Exchange as well as
cross-market surveillances administered by the FINRA on behalf of the
Exchange, which are designed to detect violations of Exchange rules and
federal securities laws applicable to trading on the Exchange. The
Exchange represents that these procedures are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and federal securities
laws applicable to trading on the Exchange. The Exchange or FINRA, on
behalf of the Exchange, or both, will communicate as needed regarding
trading in the Shares with other markets that are members of the ISG.
In addition, the Exchange will communicate as needed regarding trading
in the Shares with other markets that are members of the ISG or with
which the Exchange has in place a comprehensive surveillance sharing
agreement. FINRA also can access data obtained from the EMMA system
relating to municipal bond trading activity for surveillance purposes
in connection with trading in the Shares. FINRA, on behalf of the
Exchange, is able to access, as needed, trade information for certain
fixed income securities held by the Fund reported to TRACE.
    As discussed above, the Exchange believes that the Underlying Index
is sufficiently broad-based to deter potential manipulation. The
Underlying Index currently includes 4,823 component securities. Whereas
the Rule 14.11(c)(4)(B)(i)(e) requires that an index contain securities
from a minimum of 13 non-affiliated issuers, the Underlying Index
includes securities issued by municipal entities in more than 51 states
or U.S. territories. Further, whereas the generic listing rules permit
a single component security to represent up to 30% of the weight of an
index and the top five component securities to, in aggregate, represent
up to 65% of the weight of an index, the largest component security in
the Underlying Index only constitutes 1.10% of the weight of the
Underlying Index and the largest five component securities represent
2.98% of the weight of the Underlying Index.
    The Exchange believes that this significant diversification and the
lack of concentration among constituent securities provide a strong
degree of protection against index manipulation. The Underlying Index
and Fund satisfy all of the generic listing requirements for Index Fund
Shares based on a fixed income index, except for the minimum principal
amount outstanding requirement of 14.11(c)(4)(B)(i)(b). With this in
mind, the Exchange notes that the representations in the Requirements
for Index Constituents for the Underlying Index are identical to the
representations made regarding the Comparable Indexes, each of which
are underlying a series of Index Fund Shares that were previously
approved for listing and trading by the Commission \29\ and, further,
BFA has made an additional representation regarding diversification
that was not included in the Approval Order.
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    \29\ See supra note 9 [sic].
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    The Approval Order included the representation that a bond must be
investment-grade and must have an outstanding par value of at least $2
million in order to be included in the Comparable Indexes. To remain in
the Underlying Index, bonds must be investment-grade and maintain a
minimum par amount greater than or equal to $2 million and, further,
BFA has represented that the Underlying Index will have at least 500
constituents on a continuous basis. As such, the Exchange believes that
the proposal is consistent with the Act because the representations
regarding the quality and size of the issuances included in the
Underlying Index provide a strong degree of protection against index
manipulation that is consistent with other proposals that have been
approved for listing and trading by the Commission, which is only
furthered by the additional representation that the Underlying Index
will have at least 500 constituents on a continuous basis, which
ensures diversification among constituent securities.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that a large amount of information is publicly available regarding the
Fund, thereby promoting market transparency. The Fund's portfolio
holdings will be disclosed on the Fund's website daily after the close
of trading on the Exchange. Moreover, the IIV for Shares will be widely
disseminated by one or more major market data vendors at least every 15
seconds during the Exchange's Regular Trading Hours. The current value
of the Index will be disseminated by one or more major market data
vendors at least once per day. Information regarding market price and
trading volume of the Shares will be continually available on a real-
time basis throughout the day on brokers' computer screens and other
electronic services, and quotation and last sale information will be
available via the CTA high-speed line. The website for the Fund will
include the prospectus for the Fund and additional data relating to NAV
and other applicable quantitative information.
    If the Exchange becomes aware that the Fund's NAV is not being
disseminated to all market participants at the same time, it will halt
trading in the Shares until such time as the NAV is available to all
market participants. With respect to trading halts, the Exchange may
consider all relevant factors in exercising its discretion to halt or
suspend trading in the Shares. Trading also may be halted because of
market conditions or for reasons that, in the view of the Exchange,
make trading in the shares the Fund inadvisable. If the IIV and index
value are not being disseminated for the Fund as required, the Exchange
may halt trading during the day in which the interruption to the
dissemination of the IIV or index value occurs. If the interruption to
the dissemination of an IIV or index value persists past the trading
day in which it occurred, the Exchange will halt trading. The Exchange
may consider all relevant factors in exercising its discretion to halt
or suspend trading in the Shares. The Exchange will halt trading in the
Shares under the conditions specified in BZX Rule 11.18. Trading may be
halted because of market conditions or for reasons that, in the view of
the Exchange, make trading in the Shares inadvisable. These may
include: (1) The extent to which trading is not occurring in the
securities and/or the financial instruments composing the daily
disclosed portfolio of the Fund; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present. Trading in the Shares also will be
subject to Rule 14.11(c)(1)(B)(iv), which sets forth circumstances
under which Shares of a Fund may be halted. In addition, investors will
have ready access to information regarding the applicable IIV, and
quotation and last sale information for the Shares. Trade price and
other information relating to Municipal Securities is available through
the EMMA system.
    All statements and representations made in this filing regarding
the Index composition, the description of the portfolio or reference
assets, limitations on portfolio holdings or reference assets,
dissemination and availability of Index, reference asset, and intraday
indicative values (as applicable), or the applicability of Exchange
listing rules shall constitute continued listing requirements for
listing the Shares on the Exchange. The issuer is required to

advise the Exchange of any failure by the Fund to comply with the
continued listing requirements, and, pursuant to its obligations under
Section 19(g)(1) of the Act, the Exchange will monitor for compliance
with the continued listing requirements. If the Fund is not in
compliance with the applicable listing requirements, the Exchange will
commence delisting procedures under Rule 14.12.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
an exchange-traded product that principally holds Municipal Securities
and that will enhance competition among market participants, to the
benefit of investors and the marketplace. The Exchange has in place
surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement. In addition, investors will have ready
access to information regarding the IIV and quotation and last sale
information for the Shares.
    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of an
additional exchange-traded 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 neither solicited nor received written comments on
the proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \30\ and Rule 19b-
4(f)(6) thereunder.\31\
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78s(b)(3)(A).
    \31\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CboeBZX-2018-070 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CboeBZX-2018-070. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeBZX-2018-070, and should be
submitted on or before October 9, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
Eduardo A. Aleman,
Assistant Secretary.
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2018-20237 Filed 9-17-18; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 145 (Monday, August 2, 2021)]
[Notices]
[Page 41469]
[FR Doc No: 2021-16414]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER21-2510-000]

Aquamarine Westside, LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Aquamarine Westside, LLC's application for market-based rate authority,
with an accompanying rate tariff, noting that such application includes
a request for blanket authorization, under 18 CFR part 34, of future
issuances of securities and assumptions of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is August 16, 2021.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically may mail similar pleadings to
the Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426. Hand delivered submissions in docketed
proceedings should be delivered to Health and Human Services, 12225
Wilkins Avenue, Rockville, Maryland 20852.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov) using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at<EMAIL_ADDRESS>or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.

    Dated: July 27, 2021.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2021-16414 Filed 7-30-21; 8:45 am]
BILLING CODE 6717-01-P


	ENVIRONMENTAL PROTECTION AGENCY

	40 CFR Part 52

[EPA-R03-OAR-2006-0060; FRL-       ]

	Approval and Promulgation of Air Quality Implementation Plans;

	Virginia; State Implementation Plan Revision

                       Variance for International Paper, Franklin Paper
Mill, Virginia

AGENCY:     Environmental Protection Agency (EPA).

ACTION:     Direct final rule.

SUMMARY:  EPA is taking direct final action to approve revisions to the
Commonwealth of Virginia State Implementation Plan (SIP).  This action
will approve the SIP revision request submitted by the Commonwealth of
Virginia, consisting of the variance regulations adopted by Virginia for
the International Paper, Franklin Paper Mill facility.  The variance
regulations provide regulatory relief from compliance with state
regulations governing new source review for the implementation of the
International Paper, Franklin Paper Mill innovation project.  In lieu of
compliance with these regulatory requirements, the variance requires the
facility to comply with site-wide emission caps.   EPA is approving this
revision to the Commonwealth of Virginia’s State Implementation Plan
in accordance with the requirements of the Clean Air Act.

DATES:  This rule is effective on [Insert date 60 days after publication
in the Federal Register] without further notice, unless EPA receives
adverse written comment by [Insert date 30 days after publication in the
Federal Register].  If EPA receives such comments, it will publish a
timely withdrawal of the direct final rule in the Federal Register and
inform the public that the rule will not take effect.

ADDRESSES:  Submit your comments, identified by Docket ID Number
EPA-R03-OAR-2006-0060 by one of the following methods:

  www.regulations.gov. Follow the on-line instructions for submitting
comments.

B.    E-mail<EMAIL_ADDRESS>
C.    Mail:   EPA-R03-OAR-2006-0060, David Campbell, Chief, Permits and
Technical Assessment Branch, Mailcode 3AP11, U.S. Environmental
Protection Agency, Region III, 1650 Arch Street, Philadelphia,
Pennsylvania 19103.

     D.   Hand Delivery:  At the previously-listed EPA Region III
address.  Such deliveries are only accepted during the Docket(s normal
hours of operation, and special arrangements should be made for
deliveries of boxed information.

Instructions:  Direct your comments to Docket ID No. EPA-
R03-OAR-2006-0060.  EPA's policy is that all comments received will be
included in the public docket without change, and may be made available
online at www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through www.regulations.gov or
e-mail.  The www.regulations.gov website is an (anonymous access(
system, which means EPA will not know your identity or contact
information unless you provide it in the body of your

comment.  If you send an e-mail comment directly to EPA without going
through www.regulations.gov, your e-mail address will be automatically
captured and included as part of the comment that is placed in the
public docket and made available on the Internet.  If you submit an
electronic comment, EPA recommends that you include your name and other
contact information in the body of your comment and with any disk or
CD-ROM you submit.  If EPA cannot read your comment due to technical
difficulties and cannot contact you for clarification, EPA may not be
able to consider your comment.  Electronic files should avoid the use of
special characters, any form of encryption, and be free of any defects
or viruses.

Docket:  All documents in the electronic docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute.  Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form.  Publicly available docket
materials are available either electronically in www.regulations.gov or
in hard copy during normal business hours at the Air Protection
Division, U.S. Environmental Protection Agency, Region III, 1650 Arch
Street, Philadelphia, Pennsylvania 19103.  Copies of the State submittal
are available at the Virginia Department of Environmental Quality, 629
East Main Street, Richmond, Virginia, 23219.

FOR FURTHER INFORMATION CONTACT: Sharon McCauley,<PHONE_NUMBER>, or by
e-

mail at<EMAIL_ADDRESS>

SUPPLEMENTARY INFORMATION:

I.	Background

International Paper operates a pulp and paper mill located in Franklin,
Virginia.  International

Paper is a member of EPA(s voluntary National Environmental Performance
Track Program and

the Virginia Department of Environmental Quality’s (VADEQ)
Environmental Excellence

Program.  International Paper had entered into a partnership with the US
EPA and the VADEQ to

implement an innovative approach to meeting environmental regulations in
a more cost-effective

manner.  International Paper submitted a proposal for such an innovative
project to VADEQ.

International Paper(s innovation project relied on the principles
established in the Joint

EPA/State Agreement to Pursue Regulatory Innovation that was signed by
EPA and the

Environmental Council of States (ECOS) in 1998.

The International Paper innovation project includes a number of
environmentally beneficial

projects that will: 1) reduce groundwater use; 2) reduce solid waste
generation and disposal; 3)

reduce chemical and biological oxygen demand, and total suspended solids
discharges to surface

water; 4) reduce overall emissions for a number of air pollutants; and,
5) increase the efficiency

of pulp production.

By implementing this project, emissions of hazardous air pollutants will
be reduced at the Mill

by an estimated 430 tons per year.  Emissions increases of criteria
pollutants and carbon dioxide

from typical NESHAP control strategies will also be reduced under this
project.  These

reductions, along with improvements in the combustion efficiencies of
the No. 7 power boiler

and No. 6 recovery furnace will result in a decreased use of fossil
fuels and will net large

decreases in criteria pollutant emissions from the Mill.  The reduction
in useable fiber discharges

in the mill sewer along with improvements in the performance of the
wastewater treatment

system will result in substantial reductions in discharges of wastewater
pollutants.  Generation of

thousands of tons per year of solid waste will also be eliminated.

In order to implement these projects, certain innovations to the typical
regulatory implementation

process were necessary in order to make these environmentally beneficial
projects a reality.

First, the International Paper innovation project required an
alternative regulatory approach

under section 112 of the Clean Air Act (CAA).   Pursuant to section 112,
EPA promulgates the

national emissions standards for hazardous air pollutants (NESHAP) for
various categories of air

pollution sources.  On April 15, 1998, EPA promulgated a NESHAP for the
Pulp and Paper

Industry, as codified at 40 CFR part 63, subpart S, Section 63.440
through 63.459.  International

Paper’s Franklin Mill is subject to subpart S.  Under Section 112(1)
of the CAA, EPA may

approve State or local rules or programs to be implemented and enforced
in place of certain

otherwise applicable Federally-promulgated section 112 rules, emission
standards, or

requirements.  On April 15, 2004 (69 FR 19943), EPA published in the
Federal Register an

approval of an equivalency-by-permit determination made by the VADEQ for
the International

Paper, Franklin Mill.  The VADEQ established the new requirements via a
title V operating

permit issued to the facility on March 31, 2006.  In general, the
equivalency-by-permit terms

require International Paper to control different emission points of
hazardous air pollutants

(HAPs) at its facility than prescribed by the Pulp and Paper NESHAP
(subpart S).

In addition to the approval above and in order to implement some of the
other environmentally-

beneficial projects contained in the innovation project proposal,
International Paper would also

need certain flexibility under the Commonwealth’s existing
preconstruction permitting

regulations.   The subject of this rulemaking action is to allow for
those flexibilities by providing

a limited variance to Virginia’s existing permitting regulations.  The
variance allows the

Commonwealth to establish site-wide emissions caps for a variety of
pollutants, mostly criteria

pollutants.  The site-wide caps would be relied upon to limit the
applicability of the provisions of

Virginia’s federally-enforceable major new source review provisions.
Under Virginia’s existing

programs, sources may not rely upon site-wide emissions caps in order to
limit the applicability

of major new source review.

Typically, unit-specific limitations are required.  The site-wide caps
allow International Paper to

make certain changes to its emission sources, primarily the boilers,
that will allow them to

maximize their utilization while minimizing their existing emissions and
limiting their future

potential emissions.  Site-wide emissions caps are a type of new source
review program

flexibility that EPA has experimented with in the past.  In fact, EPA
made changes to the federal

new source review regulations at the end of 2002 (See, 67 FR 80186) that
incorporated this type

of regulatory flexibility and called it a “plantwide applicability
limit”.

	II.   Summary of SIP Revision

	On December 13, 2005, the DEQ submitted a State Implementation Plan
(SIP) approval request

	entitled (Variance for International Paper, Franklin Paper Mill(.  The
applicable regulations for

	the variance were adopted by the State Air Pollution Control Board on
June 22, 2005 in

	accordance with the requirements of the Virginia Air Pollution Control
Law at Title 10.1 Chapter

13 of the Code of Virginia and 40 CFR part 51.   These regulations allow
the VADEQ to issue a

permit for International Paper that will replace all previously issued
minor NSR permits and PSD

permits and establish site-wide emission caps for a number of regulated
pollutants that may be

relied upon for purposes of new source review applicability.   The
variance provides regulatory

relief from compliance with state regulations governing new source
review (Virginia Code –

Article 4 of Chapter 50, and Articles 6, 8 and 9 of Chapter 80) for the
implementation of the

International Paper innovation project.  In lieu of compliance with
these regulatory requirements,

the variance requires the facility to comply with site-wide emission
caps.

III. General Information Pertaining to SIP Submittals From the
Commonwealth of Virginia

In 1995, Virginia adopted legislation that provides, subject to certain
conditions, for an environmental assessment (audit) (privilege(' for
voluntary compliance evaluations performed by a regulated entity.  The
legislation further addresses the relative burden of proof for parties
either asserting the privilege or seeking disclosure of documents for
which the privilege is claimed.  Virginia's legislation also provides,
subject to certain conditions, for a penalty waiver for violations of
environmental laws when a regulated entity discovers such violations
pursuant to a voluntary compliance evaluation and voluntarily discloses
such violations to the Commonwealth and takes prompt and appropriate
measures to remedy the violations.  Virginia's Voluntary Environmental
Assessment Privilege Law, Va. Code Sec. 10.1-1198, provides a privilege
that protects from disclosure documents and information about the
content of those documents that are the product of a voluntary
environmental assessment. The Privilege Law does not extend to documents
or information (1) that are generated or developed before the
commencement of a voluntary environmental assessment; (2) that are
prepared independently of the assessment process; (3) that demonstrate a
clear, imminent and substantial danger to the public health or
environment; or (4) that are required by law.

On January 12, 1998, the Commonwealth of Virginia Office of the Attorney
General provided a legal opinion that states that the Privilege law, Va.
Code Sec. 10.1-1198, precludes granting a privilege to documents and
information (required by law,( including documents and information
(required by Federal law to maintain program delegation, authorization
or approval,( since Virginia must (enforce Federally authorized
environmental programs in a manner that is no less stringent than their
Federal counterparts. . . .(   The opinion concludes that ([r]egarding (
10.1-1198, therefore, documents or other information needed for civil or
criminal enforcement under one of these programs could not be privileged
because such documents and information are essential to pursuing
enforcement in a manner required by Federal law to maintain program
delegation, authorization or approval.(

Virginia's Immunity law, Va. Code Sec. 10.1-1199, provides that ([t]o
the extent consistent with requirements imposed by Federal law,(  any
person making a voluntary disclosure of information to a state agency
regarding a violation of an environmental statute, regulation, permit,
or administrative order is granted immunity from administrative or civil
penalty.  The Attorney General's January 12, 1998 opinion states that
the quoted language renders this statute inapplicable to enforcement of
any Federally authorized programs, since (no immunity could be afforded
from administrative, civil, or criminal penalties because granting such
immunity would not be consistent with Federal law, which is one of the
criteria for immunity.(

Therefore, EPA has determined that Virginia's Privilege and Immunity
statutes will not preclude the Commonwealth from enforcing its program
consistent with the Federal requirements.  In any event, because EPA has
also determined that a state audit privilege and immunity law can affect
only state enforcement and cannot have any impact on Federal enforcement
authorities, EPA may at any time invoke its authority under the Clean
Air Act, including, for example, sections 113, 167, 205, 211 or 213, to
enforce the requirements or prohibitions of the state plan,
independently of any state enforcement effort.  In addition, citizen
enforcement under section 304 of the Clean Air Act is likewise
unaffected by this, or any, state audit privilege or immunity law.

IV.	Final Action

EPA is approving this SIP revision request submitted by the Commonwealth
of Virginia.   This revision consists of approving the variance
regulations adopted by Virginia at 9 VAC 5 Chapter 230 for the
International Paper, Franklin Paper Mill.  The variance provides
regulatory relief from compliance with state regulations governing new
source review for the implementation of the International Paper
innovation project.  In lieu of compliance with these regulatory
requirements, the variance requires the facility to comply with
site-wide emission caps.

EPA is publishing this rule without prior proposal because the Agency
views this as a non-

controversial amendment and anticipates no adverse comment.   This
variance includes a number

of environmentally beneficial projects which will reduce groundwater
use, reduce solid waste

generation and disposal, reduce Chemical Oxygen Demand and Total
Suspended Solids disposal

to surface water, increase the efficiency of pulp production and reduce
overall emissions for a

number of air pollutants.  However, in the (Proposed Rules( section of
today(s Federal Register,

EPA is publishing a separate document that will serve as the proposal to
approve the SIP revision

if adverse comments are filed.  This rule will be effective on [Insert
date 60 days from date of

publication in the Federal Register] without further notice unless EPA
receives adverse comment

by [Insert date 30 days from date of publication in the Federal
Register].  If EPA receives adverse

comment, EPA will publish a timely withdrawal in the Federal Register
informing the public that

the rule will not take effect.  EPA will address all public comments in
a subsequent final rule

based on the proposed rule.  EPA will not institute a second comment
period on this action.  Any

parties interested in commenting must do so at this time.   Please note
that if EPA receives

adverse comment on an amendment, paragraph, or section of this rule and
if that provision may

be severed from the remainder of the rule, EPA may adopt as final those
provisions of the rule

that are not subject of an adverse comment.

V.  Statutory and Executive Order Reviews

A.   General Requirements

Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action
is not a "significant regulatory action" and therefore is not subject to
review by the Office of Management and Budget.  For this reason, this
action is also not subject to Executive Order 13211, "Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use" (66 FR 28355, May 22, 2001).  This action merely approves state law
as meeting Federal requirements and imposes no additional requirements
beyond those imposed by state law.  Accordingly, the Administrator
certifies that this rule will not have a significant economic impact on
a substantial number of small entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.).  Because this rule approves pre-existing
requirements under state law and does not impose any additional
enforceable duty beyond that required by state law, it does not contain
any unfunded mandate or significantly or uniquely affect small
governments, as described in the Unfunded Mandates Reform Act of 1995
(Public Law 104-4).   This rule also does not have tribal implications
because it will not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes, as specified by
Executive Order 13175 (65 FR 67249, November 9, 2000).  This action also
does not have Federalism implications because it does not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government, as
specified in Executive Order 13132 (64 FR 43255, August 10, 1999).  This
action merely approves a state rule implementing a Federal requirement,
and does not alter the relationship or the distribution of power and
responsibilities established in the Clean Air Act.  This rule also is
not subject to Executive Order 13045 (Protection of Children from
Environmental Health Risks and Safety Risks( (62 FR 19885, April 23,
1997), because it approves a state rule implementing a Federal standard.

In reviewing SIP submissions, EPA(s role is to approve state choices,
provided that they meet the criteria of the Clean Air Act.  In this
context, in the absence of a prior existing requirement for the State to
use voluntary consensus standards (VCS), EPA has no authority to
disapprove a SIP submission for failure to use VCS.  It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the Clean Air Act.  Thus, the requirements
of section 12(d) of the National Technology Transfer and Advancement Act
of 1995 (15 U.S.C. 272 note) do not apply.  This rule does not impose an
information collection burden under the provisions of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

B.   Submission to Congress and the Comptroller General

The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating the
rule must submit a rule report, which includes a copy of the rule, to
each House of the Congress and to the Comptroller General of the United
States.   EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register.  This rule is not a
(major rule( as defined by 5 U.S.C. 804(2).

C.  Petitions for Judicial Review

Under section 307(b)(1) of the Clean Air Act, petitions for judicial
review of this action must be

filed in the United States Court of Appeals for the appropriate circuit
by [insert date 60 days from

date of publication of this document in the Federal Register].  Filing a
petition for

reconsideration by the Administrator of this final rule does not affect
the finality of this rule for

the purposes of judicial review nor does it extend the time within which
a petition for judicial

review may be filed, and shall not postpone the effectiveness of such
rule or action.  This action

approving the variance for International Paper, Franklin Paper Mill in
Franklin, Virginia may not

be challenged later in proceedings to enforce its requirements.  (See
section 307(b)(2).)

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Carbon monoxide,
Intergovernmental relations, Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping requirements, Sulfur oxides,
Volatile organic compounds.

July 31, 2007

_________________
_________/s/_________________

Dated:                                				William T. Wisniewski,

                                      				Acting Regional Administrator,

                                      				Region III.

40 CFR Part 52 is amended as follows:

PART 52 - [AMENDED]

1.  The authority citation for 40 CFR part 52 continues to read as
follows:

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

Subpart VV ( Virginia

2.  In ( 52.2420, the table in paragraph (c) is amended by adding the
entry for Chapter 230 to read as follows:

( 52.2420  	Identification of plan.

*	*	*	*	*

	EPA-APPROVED REGULATIONS IN THE VIRGINIA SIP

State citation

(9 VAC 5 Chapter 230)

Title/subject

State effective date

EPA approval date

Explanation

[former SIP citation]

*   *   *   *   *   *   *

Chapter 230	Variance for International Paper Franklin Paper Mill

5-230-10

	Applicability and designation of affected facility

	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-20

	Definitions

	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-30	Authority to operate under this chapter and FESOP 	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-40 (Except A.7., A.9., A.10., and B.2.)	Sitewide Emissions Caps
09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-50	New Source Review program and registration requirements
09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-60  (Except A.1.)	Other regulatory requirements	09/07/05	[Insert
Federal Register publication date] [Insert page number where the
document begins]

	5-230-70	Federal Operating Permits	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-80	FESOP issuance and amendments	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-90	Transfer of ownership

	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-100	Applicability of future regulation amendments	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-110	Termination of authority to operate under this chapter and
FESOP	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

	5-230-120	Review and confirmation of this chapter by Board	09/07/05

	[Insert Federal Register publication date] [Insert page number where
the document begins]

*   *   *   *    *    *    *

*	*	*	*	*

 PAGE

 PAGE   2

 PAGE   13


[Federal Register: November 7, 2005 (Volume 70, Number 214)]
[Notices]
[Page 67467-67468]
[DOCID:fr07no05-66]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP05-675-001]

National Fuel Gas Supply Corporation; Notice of Compliance Filing

November 1, 2005.
    Take notice that on October 26, 2005, National Fuel Gas Supply
Corporation (National Fuel) tendered for filing as part of its FERC Gas
Tariff, Fourth Revised Volume No. 1, Seventh Revised Sheet No. 478.
    National Fuel states that copies of this filing were served upon
its customers and interested State commissions.
    Any person desiring to protest this filing must file in accordance
with Rule 211 of the Commission's Rules of Practice and Procedure (18
CFR 385.211). Protests to this filing will be considered by the
Commission in determining the appropriate action to be taken, but will
not serve to make protestants parties to the proceeding. Such protests
must be filed in accordance with the provisions of

Section 154.210 of the Commission's regulations (18 CFR 154.210).
Anyone filing a protest must serve a copy of that document on all the
parties to the proceeding.
    The Commission encourages electronic submission of protests in lieu
of paper using the ``eFiling'' link at http://www.ferc.gov. Persons

unable to file electronically should submit an original and 14 copies
of the protest to the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.

Magalie R. Salas,
Secretary.
[FR Doc. E5-6163 Filed 11-4-05; 8:45 am]

BILLING CODE 6717-01-P