[Federal Register Volume 78, Number 162 (Wednesday, August 21, 2013)]
[Notices]
[Pages 51769-51775]
[FR Doc No: 2013-20336]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70209; File No. SR-NYSEArca-2013-60]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Change To List and Trade Shares of Market
Vectors Low Volatility Commodity ETF and Market Vectors Long/Short
Commodity ETF Under NYSE Arca Equities Rule 8.200

August 15, 2013.

I. Introduction

    On June 12, 2013, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
list and trade shares (``Shares'') of the Market Vectors Low Volatility
Commodity ETF (``Low Volatility ETF'') and Market Vectors Long/Short
Commodity ETF (``Long/Short ETF'' and, together with the Low Volatility
ETF, ``Funds'') under NYSE Arca Equities Rule 8.200. The proposed rule
change was published for comment in the Federal Register on July 2,
2013.\3\ The Commission received no comments on the proposed rule
change. This order grants approval of the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 69862 (June 26,
2013), 78 FR 39810 (``Notice'').
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II. Description of Proposed Rule Change

    The Exchange proposes to list and trade Shares of the Funds
pursuant to NYSE Arca Equities Rule 8.200, Commentary .02.\4\ Each Fund
is a series of the Market Vectors Commodity Trust (``Trust''), a
Delaware statutory trust.\5\ Van Eck Absolute Return Advisers Corp. is
the managing owner of the Funds (``Managing Owner'').\6\ The Managing
Owner also serves as the commodity pool operator and commodity trading
advisor of the Funds. The Managing Owner is registered as a commodity
pool operator and commodity trading advisor with the Commodity Futures
Trading Commission (``CFTC'') and is a member of National Futures
Association. Wilmington Trust, National Association (``Trustee''), a
national bank with its principal place of business in Delaware, is the
sole trustee of the Trust. The Bank of New York Mellon will be the
custodian, administrator, and transfer agent for the Funds.
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    \4\ Commentary .02 to NYSE Arca Equities Rule 8.200 applies to
Trust Issued Receipts that invest in ``Financial Instruments.'' The
term ``Financial Instruments,'' as defined in Commentary .02(b)(4)
to NYSE Arca Equities Rule 8.200, means any combination of
investments, including cash; securities; options on securities and
indices; futures contracts; options on futures contracts; forward
contracts; equity caps, collars, and floors; and swap agreements.
    \5\ The Trust filed a pre-effective amendment to its
registration statements with respect to the Funds on Form S-1 under
the Securities Act of 1933 (``1933 Act'') on December 7, 2012 (File
No. 333-179435 for the Low Volatility ETF (``Low Volatility
Registration Statement'')) and File No. 333-179432 for the Long/
Short ETF (``Long/Short Registration Statement'' and, together with
the Low Volatility Registration Statement, ``Registration
Statements'').
    \6\ The Managing Owner is affiliated with a broker-dealer and
has implemented a ``fire wall'' with respect to such broker-dealer
and has policies and procedures in place regarding access to
information concerning the composition and/or changes to the Funds'
portfolio composition.
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Overview of the Funds

    The Low Volatility ETF will seek to track changes, whether positive
or negative, in the performance of the Morningstar[supreg] Long/Flat
Commodity Index\SM\ (``Long/Flat Index'') over time. The Long/Short ETF
will seek to track changes, whether positive or negative, in the
performance of the Morningstar[supreg] Long/Short Commodity Index\SM\
(``Long/Short Index'' and, together with the Long/Flat Index,
``Indexes'') over time.
    Each Fund will seek to achieve its respective investment objective
by investing principally in exchange-traded futures contracts on
commodities (``Index Commodity Contracts'') comprising the Long/Flat
Index and the Long/Short Index, respectively, and U.S. Treasury bills
maturing in eight weeks or less to reflect ``flat'' positions and, in
certain circumstances (as described below), futures contracts other
than Index Commodity Contracts traded on

U.S. or foreign exchanges (``Other Commodity Contracts'').\7\ In
addition, to a limited extent, the Funds may also invest in swap
agreements on Index Commodity Contracts or Other Commodity Contracts
cleared through a central clearing house or the clearing house's
affiliate (``Cleared Swaps''), forward contracts, exchange-traded cash-
settled options (including options on one or more Index Commodity
Contracts, Other Commodity Contracts, or indexes that include any Index
Commodity Contracts or Other Commodity Contracts), swaps other than
Cleared Swaps, and other over-the-counter (``OTC'') transactions that
provide economic exposure to the investment returns of the commodities
markets, as represented by the Indexes and their constituents
(collectively, ``Other Commodity Instruments,'' and, together with
Other Commodity Contracts and Cleared Swaps, ``Other Instruments''), as
described below. The Funds also may invest in U.S. Treasury bonds,
other U.S. Treasury bills, and other U.S. government securities and
related securities, money market funds, certificates of deposit, time
deposits, and other high credit quality short-term fixed income
securities, as described in the Registration Statements (collectively,
``Cash Instruments''). The Cash Instruments used to track flat
positions in the Indexes will be U.S. Treasury bills.
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    \7\ According to the Exchange, the Managing Owner expects that
Other Commodity Contracts in which a Fund may invest in the
circumstances described below would include futures contracts of
different expirations, on different commodities, or traded on
different exchanges than Index Commodity Contracts.
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    Each Fund intends to invest first in Index Commodity Contracts.
Thereafter, if a Fund reaches the position limits applicable to one or
more Index Commodity Contracts or a ``Futures Exchange'' \8\ imposes
limitations on the Fund's ability to maintain or increase its positions
in an Index Commodity Contract after reaching accountability levels or
a price limit is in effect on an Index Commodity Contract during the
last 30 minutes of its regular trading session, the Fund's intention is
to invest first in Cleared Swaps, to the extent permitted under the
position limits applicable to Cleared Swaps and appropriate in light of
the liquidity in the Cleared Swaps market, and then, using its
commercially reasonable judgment, in Other Commodity Contracts or in
Other Commodity Instruments. By using certain or all of these
investments, the Managing Owner will endeavor to cause a Fund's
performance to closely track that of the Long/Flat Index or Long/Short
Index, respectively, over time. The specific circumstances under which
investments in Other Commodity Contracts and Other Commodity
Instruments may be used are discussed below.
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    \8\ The Futures Exchanges are the exchanges on which the Index
Commodity Contracts are traded and include the following: the
Chicago Mercantile Exchange, Inc. (``CME''), Chicago Board of Trade
(``CBOT'', a division of CME), NYMEX (a division of CME), ICE
Futures US (``ICE-US''), and ICE Futures Europe (``ICE-UK''). Some
of a Fund's futures trading may be conducted on commodity futures
exchanges outside the United States. Trading on such exchanges is
not regulated by any U.S. governmental agency and may involve
certain risks not applicable to trading on U.S. exchanges, including
different or diminished investor protections.
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    Consistent with seeking to achieve each Fund's investment
objective, if a Fund reaches position limits applicable to one or more
Index Commodity Contracts or when a Futures Exchange has imposed
limitations on a Fund's ability to maintain or increase its positions
in an Index Commodity Contract, the Managing Owner may cause a Fund to
first enter into or hold Cleared Swaps and then, if applicable, enter
into and hold Other Commodity Contracts or Other Commodity Instruments.
For example, certain Cleared Swaps have standardized terms similar, and
are priced by reference, to a corresponding Index Commodity Contract or
Other Commodity Contract. Additionally, certain Other Commodity
Instruments can generally be structured as the parties to the contract
desire. Therefore, a Fund might enter into multiple Cleared Swaps and/
or certain Other Commodity Instruments intended to exactly replicate
the performance of one or more Index Commodity Contracts or Other
Commodity Contracts, or a single Other Commodity Instrument designed to
replicate the performance of the applicable Index as a whole.\9\
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    \9\ Assuming that there is no default by a counterparty to an
Other Commodity Instrument, the performance of the Other Commodity
Instrument should positively correlate with the performance of the
Long/Flat Index or Long/Short Index, as applicable, or the
applicable Index Commodity Contract.
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    After reaching position limits or when a Futures Exchange has
imposed limitations on the Fund's ability to maintain or increase its
positions in an Index Commodity Contract as described above, and after
entering into or holding Cleared Swaps, a Fund might also enter into or
hold Other Commodity Contracts or Other Commodity Instruments that
would (1) facilitate effective trading, consistent with a Fund's long/
flat or long/short strategy, as applicable; or (2) be expected to
alleviate overall deviation between a Fund's performance and that of
the Long/Flat Index or Long/Short Index, as applicable, that may result
from certain market and trading inefficiencies or other reasons.
    By using certain or all of these investments, the Managing Owner
will endeavor to cause a Fund's performance to closely track that of
the Long/Flat Index or Long/Short Index, as applicable, over time. Each
Fund will invest to the fullest extent possible in Index Commodity
Contracts and Other Instruments without being leveraged (i.e., without
seeking performance that is a multiple (e.g., 2X or 3X) or inverse
multiple of the Fund's respective Index) or unable to satisfy its
expected current or potential margin or collateral obligations with
respect to its investments in Index Commodity Contracts and Other
Commodity Contracts or Other Instruments.\10\
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    \10\ The Managing Owner will attempt to minimize these market
and credit risks by requiring the Funds to abide by various trading
limitations and policies, which will include limiting margin
accounts and trading only in liquid markets. The Managing Owner will
implement procedures which will include, but will not be limited to:
Executing and clearing trades with creditworthy counterparties;
limiting the amount of margin or premium required for any Index
Commodity Contract or Other Commodity Contract or all Index
Commodity Contracts or Other Commodity Contracts combined; and
generally limiting transactions to Index Commodity Contracts or
Other Commodity Contracts which will be traded in sufficient volume
to permit the taking and liquidating of positions. The Funds will
enter into Other Commodity Instruments traded OTC (if any) with
counterparties selected by the Managing Owner. The Managing Owner
will select such Other Commodity Instrument (if any) counterparties
giving due consideration to such factors as it deems appropriate,
including, without limitation, creditworthiness, familiarity with
the applicable Index, and price. Under no circumstances will the
Funds enter into an Other Commodity Instrument traded OTC (if any)
with any counterparty whose credit rating is lower than investment-
grade at the time a contract is entered into. The Funds expect that
investments in OTC Other Commodity Instruments (if any) will be made
on terms that are standard in the market for such OTC Other
Commodity Instruments. In connection with such OTC Other Commodity
Instruments, the Funds may post or receive collateral in the form of
Cash Instruments, which will be marked to market daily.
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    Each of the Indexes is currently composed of long, flat, or short
(as applicable) positions in Index Commodity Contracts, each of which
is subject to speculative position limits and other position
limitations, as applicable, which are imposed by either the CFTC or the
rules of the Futures Exchanges on which the Index Commodity Contracts
are traded. These position limits prohibit any person from holding a
position of more than a specific number of such Index Commodity
Contracts.
    Futures Exchanges may establish daily price fluctuation limits on
futures contracts. The daily price fluctuation

limit establishes the maximum amount that the price of futures
contracts may vary either up or down from the previous day's settlement
price. Once the daily price fluctuation limit has been reached in a
particular futures contract, no trades may be made at a price beyond
that limit. Futures Exchanges may also establish accountability levels
applicable to futures contracts. A Futures Exchange may order a person
who holds or controls aggregate positions in excess of specified
position accountability levels not to further increase the positions,
to comply with any prospective limit which exceeds the size of the
position owned or controlled, or to reduce any open position which
exceeds position accountability levels if the Futures Exchange
determines that such action is necessary to maintain an orderly market.
Position limits, accountability levels, and daily price fluctuation
limits set by the Futures Exchanges have the potential to cause
tracking error, which could cause changes in the net asset value
(``NAV'') per Share to substantially vary from changes in the level of
the Index and prevent an investor from being able to effectively use
the Fund as a way to indirectly invest in the global commodity markets.
    According to the Exchange, although the Managing Owner does not
expect the Funds to have a significant exposure to Other Commodity
Instruments that trade OTC, the Trust's Declaration of Trust does not
limit the amount of funds that the Funds may invest in such Other
Commodity Instruments. Therefore, as the amount of funds invested in
Other Commodity Instruments that trade OTC increase, the applicable
risks described in the Registration Statements increase
correspondingly.\11\
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    \11\ Markets in which a Fund may effect a transaction in certain
Other Commodity Instruments may be in the OTC markets. The
participants and dealers in such markets are typically not subject
to the same level of credit evaluation and regulatory oversight as
are members of the exchange-based markets. This exposes a Fund to
the risk that a counterparty will not settle a transaction in
accordance with its terms and conditions because of a credit or
liquidity problem or a dispute over the terms of the contract
(whether or not bona fide), thus causing the Fund to suffer a loss.
See note 10, supra.
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The Long/Flat Index

    The Long/Flat Index is a rules-based, fully collateralized
commodity futures index that employs a momentum rule to determine if
exposure to a particular commodity should be maintained with its
prescribed weighting (``long position'') or moved to cash (``flat
position'').\12\ For each Index Commodity Contract represented by the
Long/Flat Index, Morningstar[supreg], Inc. (``Morningstar'') \13\
calculates a ``linked price'' \14\ that incorporates both price changes
and roll yield.\15\ Whether a position will be long or flat is
determined, at the time of a monthly repositioning, by comparing the
linked price of each Index Commodity Contract to its 12-month moving
average. For example, if, at a monthly repositioning, the linked price
for an Index Commodity Contract exceeds its 12-month moving average,
the Long/Flat Index takes the long position in the subsequent month.
Conversely, if the linked price for an Index Commodity Contract is
below its 12-month moving average, the Long/Flat Index moves the
position to cash, i.e., flat.
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    \12\ According to the Exchange, a long position is a position
that will increase in market price if the price of the commodities
comprising the Long/Flat Index, in the aggregate, are rising during
the period when the position is open. A flat position is a position
that will not increase in market price whether the price of the
commodities comprising the Long/Flat Index, in the aggregate, is
rising or falling.
    \13\ Morningstar, Inc. is the index provider (``Index Provider''
or ``Morningstar'') with respect to the Indexes. Morningstar is not
registered as a broker-dealer. Morningstar Investment Services
(``MIS''), a wholly-owned subsidiary of the Index Provider, is a
broker-dealer and a registered investment adviser under the
Investment Advisers Act of 1940. Morningstar has implemented
procedures designed to prevent the illicit use and dissemination of
material, non-public information regarding the Indexes and has
implemented a ``fire wall'' with respect to its affiliated broker-
dealer regarding the Indexes.
    \14\ A ``linking'' factor is defined for each commodity that
converts the price of the contract in effect at each point in time
to a value that accounts for contract rolls, i.e., the ``linked
price.'' Each time a contract is rolled, the ``linking'' factor is
adjusted by the ratio of the closing price of the current contract
to the closing price of the new contract.
    \15\ Roll yield is the amount of return generated (either
positive or negative) by rolling a short-term contract into a
longer-term contract and profiting or losing money from the
convergence toward a higher or lower spot price. The linked price is
determined on the basis of price changes and roll yields. Rolling a
futures contract means closing out a position on near-dated (i.e.,
commodity futures contracts that are nearing expiration) commodity
futures contracts before they expire and establishing an equivalent
position in a longer-dated futures contract (i.e., commodity futures
contracts that have an expiration date further in the future) on the
same commodity. Futures contacts can be in ``backwardation,'' which
means that futures contracts with longer-term expirations are priced
lower than those with shorter-term expirations, or can exhibit
``contango,'' which means that futures contacts with longer-term
expirations are priced higher than those with shorter-term
expirations. In backwardation, market roll yields are positive. In
contango, market roll yields are negative.
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    To be considered for inclusion in the Long/Flat Index, a commodity
future must be listed on a U.S. futures exchange, be denominated in
U.S. dollars and rank in the top 95% by total U.S. dollar value of the
total open interest pool of all eligible commodities. The weight of
each Index Commodity Contract is the product of two factors: magnitude
and the direction of the momentum signal (i.e., 1 for long, 0 for flat,
or -1 for short). On the annual reconstitution date, the magnitude is
the open interest weight of the Index Commodity Contract, calculated on
the second Friday of December, using data through the last trading day
of November. Individual contract weights are capped at 10%. Between
reconstitution dates, the weights vary based on the performance of the
individual commodity positions. The Long/Flat Index is reconstituted
annually and directions (i.e., whether long or flat) of each Index
Commodity Contract are determined monthly on the second Friday of each
month, which is one week prior to the monthly repositioning. As of
February 28, 2013, the sector weightings of the Long/Flat Index were
Agriculture (29.44%), Energy (50.37%), Livestock (4.48%), and Metals
(15.71%).

The Long/Short Index

    The Long/Short Index is a rules-based, fully collateralized
commodity futures index that employs a momentum rule to determine if
exposure to a particular Index Commodity Contract should be maintained
with its prescribed weighting (``long position'') or moved to a short
weighting (``short position'').\16\ For each Index Commodity Contract
represented by the Long/Short Index, Morningstar calculates a ``linked
price''\17\ that incorporates both price

changes and roll yield.\18\ Whether a position will be long or short
(or cash, i.e., flat in the case of energy futures contracts, as
described below) is determined, at the time of a monthly repositioning,
by comparing the linked price of each Index Commodity Contract to its
12-month moving average. For example, if, at a monthly repositioning,
the linked price for an Index Commodity Contract exceeds its 12-month
moving average, the Long/Short Index takes a long position in the
subsequent month. Conversely, if the linked price for an Index
Commodity Contract is below its 12-month moving average, the Long/Short
Index takes a short position. An exception is made for commodities in
the energy sector. If the signal for an Index Commodity Contract in the
energy sector is short, the weight of that Index Commodity Contract is
moved to cash (i.e., flat). According to the Long/Short Registration
Statement, energy is unique in that its price is extremely sensitive to
geopolitical events and not necessarily driven purely by demand-supply
imbalances.
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    \16\ A short position is a position that will increase in market
price if the price of the Index Commodity Contracts comprising the
Long/Short Index, in the aggregate, are falling during the period
when the position is open. The Long/Short Index includes short
positions in Index Commodity Contracts. The Long/Short ETF may also
obtain a short position relative to certain Index Commodity
Contracts by establishing a short position with a counterparty by
investing in Other Instruments. According to the Long/Short
Registration Statement, the Long/Short ETF will profit if the price
of a short position in an Index Commodity Contract or Other
Instrument that provides exposure to a short position in such Index
Commodity Contract falls while the position is open, and the Long/
Short ETF will suffer loss if the price of a short position in an
Index Commodity Contract or Other Instrument that provides exposure
to a short position in such Index Commodity Contract rises while the
position is open. Because the value of the Index Commodity Contract
or Other Instrument could rise an unlimited amount, a short position
in an Index Commodity Contract or Other Instrument that provides
exposure to a short position in such Index Commodity Contract
theoretically will expose the Long/Short ETF to unlimited losses. In
circumstances where a market has reached its maximum price limits
imposed by the applicable exchange, the Long/Short ETF may be unable
to offset its short position until the next trading day, when prices
could expand again in rapid trading.
    \17\ See note 14, supra.
    \18\ See note 15, supra.
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    To be considered for inclusion in the Long/Short Index, a commodity
future must be listed on a U.S. futures exchange, be denominated in
U.S. dollars and rank in the top 95% by total U.S. dollar value of the
total open interest pool of all eligible commodities. The weight of
each individual Index Commodity Contract is the product of two factors:
magnitude and the direction of the momentum signal (i.e., 1 for long, 0
for flat, or -1 for short). On the annual reconstitution date, the
magnitude is the open interest weight of the Index Commodity Contract,
calculated on the second Friday of December, using data through the
last trading day of November. Individual contract weights are capped at
10%. Between reconstitution dates, the weights vary based on the
performance of the individual Index Commodity Contract positions. The
Long/Short Index is reconstituted annually and directions (i.e.,
whether long, flat, or short) of each Index Commodity Contract are
determined monthly on the second Friday of each month, which is one
week prior to the monthly repositioning. As of February 28, 2013, the
sector weightings of the Long/Short Index were Agriculture (29.40%),
Energy (49.57%), Livestock (4.69%), and Metals (16.34%). The inception
date of the Long/Short Index was December 21, 1979.

Composition of the Indexes

    Information on the composition of the Indexes as of February 28,
2013, including the Index Commodity Contracts, percentage weightings
and signals, as well as the Futures Exchanges on which the Index
Commodity Contracts trade, is set forth in the Notice.\19\
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    \19\ See Notice, supra note 3, at 39814-5.
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    With respect to each of the Indexes, the following are excluded:
    (1) Financial futures contracts (e.g., securities, currencies,
interest rates, etc.).
    (2) Commodity futures contracts not denominated in U.S. dollars.
    (3) Commodity futures contracts with less than twelve months of
pricing.
    Morningstar sorts all commodity futures contracts that meet the
above eligibility requirements in descending order by the total U.S.
dollar value of open interest. All commodity futures contracts that
make up the top 95% of the total open interest pool of all eligible
commodity futures contracts, starting with the one with the largest
open interest value, will be included in each of the Indexes.
    The weight of each Index Commodity Contract in the Indexes is the
product of two factors: magnitude and the direction of the momentum
signal. Morningstar initially sets the magnitude based on the 12-month
average of the dollar value of open interest of each Index Commodity
Contract. Morningstar then caps the top magnitude at 10%,
redistributing any overage to the magnitudes of the remaining Index
Commodity Contracts. Morningstar chooses this capped open-interest
weighting system in order to reflect the importance of each Index
Commodity Contract in a global economy and to keep the Indexes
diversified across commodities.
    Each of the Indexes is reconstituted and rebalanced (i.e., the
Indexes' membership and constituent weights are reset) annually, on the
third Friday of December after the day's closing values of the Indexes
have been determined. The reconstitution is effective at the open of
trading on first trading day after the third Friday of December.
    Morningstar implements all futures contract rolls on the third
Friday of each month to coincide with portfolio repositioning and the
rolling of the U.S. Treasury bills used for collateral. If the third
Friday of the month is a trading holiday, Morningstar rolls and
rebalances or reconstitutes on the trading day prior to the third
Friday. To ensure that contracts are rolled before becoming committed
to receive physical delivery, contracts are selected so that the
delivery month is at least two months away from the upcoming month. On
each potential roll date, the delivery month of the current contract is
compared to the delivery month of the nearest contract whose delivery
month is at least two months away from the upcoming month. If the
latter is further into the future than the former, the contract is
rolled.
    A more detailed description of the Funds and the Shares, the
Indexes and the Index Commodity Contracts, as well as investment risks,
creation and redemption procedures, NAV calculation, availability of
values and other information regarding the Funds' holdings, and fees,
among other things, is included in the Notice and the Registration
Statements, as applicable.\20\
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    \20\ See supra notes 3 and 5, respectively.
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III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \21\
and the rules and regulations thereunder applicable to a national
securities exchange.\22\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\23\
which requires, among other things, that the Exchange's rules be
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. The Commission notes that
the Shares must comply with the requirements of NYSE Arca Equities Rule
8.200 and Commentary .02 thereto to be listed and traded on the
Exchange.
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    \21\ 15 U.S.C. 78f.
    \22\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \23\ 15 U.S.C. 78f(b)(5).
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    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\24\ which sets forth Congress's finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. According to

the Exchange, quotation and last-sale information for the Shares will
be disseminated through the facilities of the Consolidated Tape
Association (``CTA''). Further, the prices of the Index Commodity
Contracts, Other Instruments (except as described below) and Cash
Instruments held by the Fund will be available from the applicable
exchanges and market data vendors. The closing prices and settlement
prices of Index Commodity Contracts or Other Commodity Contracts held
by the Funds are readily available from the Web sites of the applicable
Futures Exchanges, other futures exchanges, automated quotation
systems, published or other public sources, or on-line information
services such as Bloomberg or Reuters. Moreover, according to the
Exchange, the relevant futures exchanges on which the Index Commodity
Contracts or Other Commodity Contracts are listed also provide delayed
futures information on current and past trading sessions and market
news free of charge on their respective Web sites. The specific
contract specifications for the Index Commodity Contracts or Other
Commodity Contracts are also available on such Web sites, as well as
other financial informational sources. The prices of forward
agreements, swaps, and other OTC transactions held by the Funds are not
available from the exchanges, but will be available from major market
data vendors and financial information service providers such as
Reuters and Bloomberg and will be included in the calculation of the
NAV and the intra-day indicative value (``IIV'') for the Shares.
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    \24\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    Each Fund will disseminate its respective holdings on a daily basis
on the Funds' Web site, which will include, as applicable, the names,
quantity, price and market value of Index Commodity Contracts, Other
Instruments (including forward contracts, OTC swaps, and other OTC
transactions), and Cash Instruments. This Web site disclosure of the
portfolio composition of the Funds will occur at the same time as the
disclosure by the Managing Owner of the portfolio composition to
authorized participants so that all market participants are provided
portfolio composition information at the same time.\25\
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    \25\ Disclosure regarding the components of each Index, the
percentage weightings of the components of each Index and the long,
short, or flat positions therein is available at http://corporate.morningstar.com/US/asp/subject.aspx?page=2649&filter=Commodity&xmlfile=2738.xml.
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    The intra-day level and the most recent end-of-day closing level of
each Index will be published by the Exchange once every 15 seconds
throughout the Exchange's Core Trading Session and as of the close of
business for the Exchange, respectively. Any adjustments made to an
Index will be published on Morningstar's Web site. The IIV \26\ per
Share of each Fund will be widely disseminated by one or more major
market data vendors at least every 15 seconds during the NYSE Arca Core
Trading Session.\27\ The NAV per Share of each Fund will be calculated
as of the closing time of NYSE Arca Core Trading Session or the last to
close of the Futures Exchanges on which the Index Commodity Contracts
or Other Commodity Contracts (which are listed on futures exchanges
other than Futures Exchanges) are traded, whichever is later.\28\ The
NAV for each Fund will be disseminated to all market participants at
the same time. The Exchange will make available on its Web site daily
trading volume of the Shares, closing prices of the Shares, and the
corresponding NAV.
---------------------------------------------------------------------------

    \26\ The IIV will be based on the prior day's final NAV per
Share, adjusted every 15 seconds during the NYSE Arca Core Trading
Session to reflect the continuous price changes of a Fund's Index
Commodity Contracts and other holdings. The Exchange represents that
the normal trading hours for Index Commodity Contracts may begin
after 9:30 a.m. and end before 4:00 p.m., Eastern Time, and that
there will be a gap in time at the beginning and the end of each day
during which the Funds' Shares will be traded on the Exchange, but
real-time trading prices for at least some of the Index Commodity
Contracts held by the Funds are not available. As a result, during
those gaps the IIVs of the Funds will be updated but will reflect
the closing prices for such Index Commodity Contracts that have
stopped trading before the NAV is calculated.
    \27\ According to the Exchange, several major market data
vendors display and/or make widely available IIVs taken from the CTA
or other data feeds.
    \28\ All open commodity futures contracts traded on a U.S. or
non-U.S. exchange will be calculated at their then current market
value, which will be based upon the settlement price for that
particular commodity futures contract traded on the applicable U.S.
or non-U.S. exchange on the date with respect to which NAV is being
determined; provided, that if a commodity futures contract traded on
a U.S. or on a non-U.S. exchange could not be liquidated on such
day, due to the operation of daily limits (if applicable) or other
rules of the exchange upon which that position is traded or
otherwise, the settlement price on the most recent day on which the
position could have been liquidated will be the basis for
determining the market value of such position for such day. The
value of Cleared Swaps will be determined based on the value of the
Index Commodity Contract in connection with each specific Cleared
Swap. In calculating the NAV of a Fund, the settlement value of a
Cleared Swap (if any) and an OTC Other Commodity Instrument (if any)
will be determined by either applying the then-current disseminated
value for the related Index Commodity Contracts or the terms as
provided under the applicable Cleared Swap or OTC Other Commodity
Instrument, as applicable. However, in the event that one or more of
the related Index Commodity Contracts are not trading due to the
operation of daily limits or otherwise, the Managing Owner may in
its sole discretion choose to value the applicable Fund's Cleared
Swaps or OTC Other Commodity Instruments (if any) on a fair value
basis in order to calculate such Fund's NAV. These fair value prices
would be generally determined based on available inputs about the
current value of the Index Commodity Contract to which the Cleared
Swap or OTC Other Commodity Instrument relates and would be based on
principles that the Managing Owner deems fair and equitable so long
as such principles are consistent with normal industry standards.
Exchange-traded Other Commodity Instruments will be valued at their
market prices on the exchanges on which such instruments trade.
---------------------------------------------------------------------------

    The Commission believes that the proposal to list and trade the
Shares is reasonably designed to promote fair disclosure of information
that may be necessary to price the Shares appropriately and to prevent
trading when a reasonable degree of transparency cannot be assured. If
the Exchange becomes aware that the NAV with respect to the Shares is
not 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. Further, the Exchange represents that it may
halt trading during the day in which an interruption to the
dissemination of the IIV, an Index value, or the value of the Index
Commodity Contracts or Other Instruments occurs. If the interruption
persists past the trading day in which it occurred, the Exchange will
halt trading no later than the beginning of the trading day following
the interruption. The Exchange may halt trading in the Shares if
trading is not occurring in the Index Commodity Contracts or Other
Instruments, or if other unusual conditions or circumstances
detrimental to the maintenance of a fair and orderly market are
present.\29\ The Exchange states that it has a general policy
prohibiting the distribution of material, non-public information by its
employees. Moreover, the trading of the Shares will be subject to NYSE
Arca Equities Rule 8.200, Commentary .02(e), which sets forth certain
restrictions on Equity Trading Permit (``ETP'') Holders \30\ acting as
registered Market Makers \31\ in Trust Issued Receipts to facilitate
surveillance.
---------------------------------------------------------------------------

    \29\ 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 in the Shares will be subject to
trading halts caused by extraordinary market volatility pursuant to
the Exchange's ``circuit breaker'' rule in NYSE Arca Equities Rule
7.12. Trading also may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the
Shares inadvisable.
    \30\ See NYSE Arca Equities Rule 1.1(n) (defining ETP Holder).
    \31\ See NYSE Arca Equities Rule 1.1(v) (defining Market Maker).

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

    The Commission notes that the Financial Industry Regulatory
Authority (``FINRA''), on behalf of the Exchange,\32\ will communicate
as needed regarding trading in the Shares with other markets and other
entities that are members of the Intermarket Surveillance Group
(``ISG'') and FINRA may obtain trading information regarding trading in
the Shares, futures contracts, and exchange-traded options from such
markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares, futures contracts, and
exchange-traded options from markets and other entities that are
members of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.\33\ The Managing Owner is affiliated
with a broker-dealer and has implemented a ``fire wall'' with respect
to such broker-dealer, and has policies and procedures in place
regarding access to information concerning the composition and/or
changes to the Funds' portfolio composition. The Index provider is not
registered as a broker-dealer but is affiliated with a broker-dealer
and has implemented procedures designed to prevent the illicit use and
dissemination of material, non-public information regarding the Indexes
and has implemented a ``fire wall'' with respect to its affiliated
broker-dealer regarding the Indexes.
---------------------------------------------------------------------------

    \32\ The Exchange states that, while FINRA surveils trading on
the Exchange pursuant to a regulatory services agreement, the
Exchange is responsible for FINRA's performance under this
regulatory services agreement.
    \33\ The Exchange states that CME Group, Inc., (which includes
CME, CBOT, and NYMEX), and ICE-US are members of ISG. In addition,
the Exchange states that it has entered into a comprehensive
surveillance sharing agreement with ICE-UK that applies with respect
to trading in Index Commodity Contracts.
---------------------------------------------------------------------------

    The Exchange represents that the Shares are deemed to be equity
securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
In support of this proposal, the Exchange has made representations,
including:
    (1) Each Fund will meet the initial and continued listing
requirements applicable to Trust Issued Receipts in NYSE Arca Equities
Rule 8.200 and Commentary .02 thereto.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) The trading in the Shares will be subject to the existing
trading surveillances, administered by FINRA on behalf of the Exchange,
which are designed to detect violations of Exchange rules and
applicable federal securities laws, and 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 applicable federal securities laws.
    (4) Prior to the commencement of trading, the Exchange will inform
its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares.
Specifically, the Information Bulletin will discuss the following: (a)
The risks involved in trading the Shares during the Opening and Late
Trading Sessions when an updated IIV will not be calculated or publicly
disseminated, as well as during the Core Trading Session where the IIV
may be based in part on static underlying values; (b) the procedures
for purchases and redemptions of Shares in creation baskets and
redemption baskets (and that Shares are not individually redeemable);
(c) NYSE Arca Equities Rule 9.2(a), which imposes a duty of due
diligence on its ETP Holders to learn the essential facts relating to
every customer prior to trading the Shares; (d) how information
regarding the IIV is disseminated; (e) the requirement that ETP Holders
deliver a prospectus to investors purchasing newly issued Shares prior
to or concurrently with the confirmation of a transaction; and (f)
trading information.
    (5) With respect to application of Rule 10A-3 under the Act,\34\
the Funds rely on the exception contained in Rule 10A-3(c)(7).\35\
---------------------------------------------------------------------------

    \34\ 17 CFR 240.10A-3.
    \35\ 17 CFR 240.10A-3(c)(7).
---------------------------------------------------------------------------

    (6) Each Fund intends to invest first in Index Commodity Contracts.
Thereafter, if a Fund reaches the position limits applicable to one or
more Index Commodity Contracts or a Futures Exchange imposes
limitations on the Fund's ability to maintain or increase its positions
in an Index Commodity Contract after reaching accountability levels or
a price limit is in effect on an Index Commodity Contract during the
last 30 minutes of its regular trading session, each Fund's intention
is to invest first in Cleared Swaps to the extent permitted under the
position limits applicable to Cleared Swaps and appropriate in light of
the liquidity in the Cleared Swaps market, and then, using its
commercially reasonable judgment, in Other Commodity Contracts or in
Other Commodity Instruments. Each Fund's investments will be consistent
with such Fund's investment objective and will not be used to enhance
leverage.
    (7) With respect to the Funds' assets traded on exchanges, not more
than 10% of the weight of such assets in the aggregate shall consist of
components whose principal trading market is not a member of ISG or is
a market with which the Exchange does not have a comprehensive
surveillance sharing agreement.
    (8) The Managing Owner will attempt to minimize market and credit
risks by requiring the Funds to abide by various trading limitations
and policies, which will include limiting margin accounts and trading
only in liquid markets. The Managing Owner will implement procedures
which will include, but will not be limited to: executing and clearing
trades with creditworthy counterparties; limiting the amount of margin
or premium required for any Index Commodity Contract or Other Commodity
Contract or all Index Commodity Contracts or Other Commodity Contracts
combined; and generally limiting transactions to Index Commodity
Contracts or Other Commodity Contracts which will be traded in
sufficient volume to permit the taking and liquidating of positions.
    (9) The Funds will enter into Other Commodity Instruments traded
OTC (if any) with counterparties selected by the Managing Owner. The
Managing Owner will select such Other Commodity Instrument
counterparties giving due consideration to such factors as it deems
appropriate, including, without limitation, creditworthiness,
familiarity with the applicable Index, and price. Under no
circumstances will the Funds enter into an OTC Other Commodity
Instrument with any counterparty whose credit rating is lower than
investment-grade at the time a contract is entered into. The Funds
expect that investments in OTC Other Commodity Instruments (if any)
will be made on terms that are standard in the market for such OTC
Other Commodity Instruments. In connection with such OTC Other
Commodity Instruments, the Funds may post or receive collateral in the
form of Cash Instruments, which will be marked to market daily.
    (10) A minimum of 100,000 Shares of each Fund will be outstanding
at the commencement of trading on the Exchange.
    This approval order is based on all of the Exchange's
representations and description of the Funds, including those set forth
above and in the Notice.\36\
---------------------------------------------------------------------------

    \36\ The Commission notes that it does not regulate the market
for U.S.-traded futures in which the Funds plans to take positions,
which is the responsibility of the CFTC. The CFTC has the authority
to set limits on the positions that any person may take in such
futures. These limits may be directly set by the CFTC or by the
markets on which such futures are traded. The Commission has no role
in establishing position limits on such futures even though such
limits could impact an exchange-traded product that is under the
jurisdiction of the Commission.

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

    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \37\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\38\ that the proposed rule change (SR-NYSEArca-2013-60) be, and it
hereby is, approved.
---------------------------------------------------------------------------

    \38\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\39\
---------------------------------------------------------------------------

    \39\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-20336 Filed 8-20-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 199 (Thursday, October 15, 2015)]
[Notices]
[Pages 62079-62080]
[FR Doc No: 2015-26283]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2015-0694]

Information Collection Request to Office of Management and
Budget; OMB Control Number: 1625-0040

AGENCY: Coast Guard, DHS.

ACTION: Sixty-day notice requesting comments.

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

SUMMARY: In compliance with the Paperwork Reduction Act of 1995, the
U.S. Coast Guard intends to submit an Information Collection Request
(ICR) to the Office of Management and Budget (OMB), Office of
Information and Regulatory Affairs (OIRA), requesting an extension of
its approval for the following collection of information: 1625-0040,
Application for Merchant Mariner Credential (MMC), Application for
Merchant Mariner Medical Certificate, Application for Merchant Mariner
Medical Certificate for Entry Level Ratings, Small Vessel Sea Service
Form, DOT/USCG Periodic Drug Testing Form, Disclosure Statement for
Narcotics, DWI/DUI, and/or Other Convictions, Merchant Mariner Medical
Certificate, Recognition of Foreign Certificate. Our ICR describes the
information we seek to collect from the public. Before submitting this
ICR to OIRA, the Coast Guard is inviting comments as described below.

DATES: Comments must reach the Coast Guard on or before December 14,
2015.

ADDRESSES: You may submit comments identified by Coast Guard docket
number [USCG-2015-0694] to the Coast Guard using the Federal
eRulemaking Portal at http://www.regulations.gov. See the ``Public
participation and request for comments'' portion of the SUPPLEMENTARY
INFORMATION section for further instructions on submitting comments.
    A copy of the ICR is available through the docket on the Internet
at http://www.regulations.gov. Additionally,

copies are available from: COMMANDANT (CG-612), ATTN: PAPERWORK
REDUCTION ACT MANAGER, U.S. COAST GUARD, 2100 2ND STREET SW., STOP
7101, WASHINGTON, DC 20593-7101.

FOR FURTHER INFORMATION: Contact Mr. Anthony Smith, Office of
Information Management, telephone<PHONE_NUMBER>, or fax<PHONE_NUMBER>,
for questions on these documents.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    This Notice relies on the authority of the Paperwork Reduction Act
of 1995; 44 U.S.C. chapter 35, as amended. An ICR is an application to
OIRA seeking the approval, extension, or renewal of a Coast Guard
collection of information (Collection). The ICR contains information
describing the Collection's purpose, the Collection's likely burden on
the affected public, an explanation of the necessity of the Collection,
and other important information describing the Collection. There is one
ICR for each Collection.
    The Coast Guard invites comments on whether this ICR should be
granted based on the Collection being necessary for the proper
performance of Departmental functions. In particular, the Coast Guard
would appreciate comments addressing: (1) The practical utility of the
Collection; (2) the accuracy of the estimated burden of the Collection;
(3) ways to enhance the quality, utility, and clarity of information
subject to the Collection; and (4) ways to minimize the burden of the
Collection on respondents, including the use of automated collection
techniques or other forms of information technology. In response to
your comments, we may revise this ICR or decide not to seek an
extension of approval for the Collection. We will consider all comments
and material received during the comment period.
    We encourage you to respond to this request by submitting comments
and related materials. Comments must contain the OMB Control Number of
the ICR and the docket number of this request, [USCG-2015-0694], and
must be received by December 14, 2015.

Submitting Comments

    We encourage you to submit comments through the Federal eRulemaking
Portal at http://www.regulations.gov. If your material cannot be
submitted using http://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions. Documents mentioned in this notice, and all public
comments, are in our online docket at http://www.regulations.gov and
can be viewed by following that Web site's instructions. Additionally,
if you go to the online docket and sign up for email alerts; you will
be notified when comments are posted.
    We accept anonymous comments. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, you may review a Privacy Act notice regarding the Federal
Docket Management System in the March 24, 2005, issue of the Federal
Register (70 FR 15086).
Information Collection Request
    Title: Application for Merchant Mariner Credential (MMC),
Application for Merchant Mariner Medical Certificate, Application for
Merchant Mariner Medical Certificate for Entry Level Ratings, Small
Vessel Sea Service Form, DOT/USCG Periodic Drug Testing Form,
Disclosure Statement for Narcotics, DWI/DUI, and/or Other Convictions,
Merchant Mariner Medical Certificate, Recognition of Foreign
Certificate.
    OMB Control Number: 1625-0040.
    Summary: The Application for Merchant Mariner Credential (MMC),
Application for Merchant Mariner Medical Certificate, Application for
Merchant Mariner Medical Certificate for Entry Level Ratings, Small
Vessel Sea Service Form, DOT/USCG Periodic Drug Testing Form,
Disclosure Statement for Narcotics, DWI/DUI, and/or Other Convictions,
contain the following information: Signature of applicant and
supplementary material required to show that the mariner meets the
mandatory requirements for the credential or medical certificate
sought; proof of applicant passing all applicable vision, hearing,
medical, and/or physical exams; negative chemical test for dangerous
drugs; discharges or other documentary evidence of sea service
indicating the name, tonnage, propulsion mode and power of the vessels,
dates of service, capacity in which the applicant served, and on what
waters; and disclosure documentation for narcotics, DWI/DUI, and/or
other convictions.
    Need: Title 46 United States Code (U.S.C.) subtitle II, part E,
title 46 Code of Federal Regulation (CFR) part 10, subpart B, and
International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers, 1978, as amended (STCW Convention) and the
STCW Code, including the STCW Final Rule (Docket No. USCG-2004-17914)
published on December 24, 2013, requires MMC and Medical Certificate
applicants to apply at one of the Coast Guard's seventeen Regional
Examination Centers located nationwide. MMC's are established for
individuals who are required to hold a credential under subtitle II.
The Coast Guard has the responsibility of issuing MMC's and Medical
Certificates to applicants found qualified as to age, character, habits
of life, experience, professional qualifications, and physical fitness.
The instruments contained within OMB Control No. 1625-0040 serve as a
means for the applicant to apply for a MMC and Medical Certificate.
    Forms: CG-719B, Application for Merchant Mariner Credential (MMC);
CG-719C, Disclosure Statement for Narcotics, DWI/DUI, and/or Other
Convictions; CG-719K, Application for Merchant Mariner Medical
Certificate; CG-719K/E, Application for Merchant Mariner Medical
Certificate for Entry Level Ratings; CG-719S, Small Vessel Sea Service
Form; CG-719P, DOT/USCG Periodic Drug Testing Form.
    Respondents: Applicants for MMC, whether original, renewal,
duplicate, raise of grade, or a new endorsement on a previously issued
MMC. Applicants for Medical Certificates include National and STCW
credentialed mariners, and first-class pilots.
    Frequency: On occasion.
    Hour Burden Estimate: The estimated annual burden remains at 47,444
hours a year (CG-719B = 8,475 hours, CG-719C = 1,413 hours, CG-719K =
16,440 hours, CG-719K/E = 2,283 hours, CG719P = 4,708 hours, and CG-
719S = 14,125 hours).

    Authority: The Paperwork Reduction Act of 1995; 44 U.S.C.
chapter 35, as amended.

    Dated: October 5, 2015.
Thomas P. Michelli,
Deputy Chief Information Officer, U.S. Coast Guard.
[FR Doc. 2015-26283 Filed 10-14-15; 8:45 am]
 BILLING CODE 9110-04-P


[Federal Register Volume 88, Number 84 (Tuesday, May 2, 2023)]
[Notices]
[Pages 27570-27573]
[FR Doc No: 2023-09239]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

Safety Advisory 2023-03; Accident Mitigation and Train Length

AGENCY: Federal Railroad Administration (FRA), U.S. Department of
Transportation (DOT).

ACTION: Notice of safety advisory.

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

SUMMARY: Freight train length has increased in recent years, and while
research is ongoing related to operational aspects of long trains,
including brake system performance, it is known that the in-train
forces longer trains experience are generally stronger and more complex
than those in shorter train consists. FRA is issuing this Safety
Advisory to ensure railroads and railroad employees are aware of the
potential complexities associated with operating longer trains and to
ensure they take appropriate measures to address those complexities to
ensure the safe operation of such trains. Among other things, this
Safety Advisory recommends that railroads review their operating rules
and existing locomotive engineer certification programs to address
operational complexities of train length, take appropriate action to
prevent the loss of communications between end-of-train devices, and
mitigate the impacts of long trains on blocked crossings.

FOR FURTHER INFORMATION CONTACT: Christian Holt, Staff Director,
Operating Practices Division, Office of Railroad Safety, FRA, 1200 New
Jersey Ave. SE, Washington, DC 20590, telephone<PHONE_NUMBER>.
    Disclaimer: This Safety Advisory is considered guidance pursuant to
DOT Order 2100.6A (June 7, 2021). Except when referencing laws,
regulations, policies, or orders, the information in this Safety
Advisory does not have the force and effect of law and is not binding
in any way. This document does not review or replace any previously
issued guidance.

SUPPLEMENTARY INFORMATION:

I. Background

    Freight-train length, particularly for Class I railroads, has
increased in recent years.\1\ The operation of longer trains presents
different, more complex, operational challenges, which can be
exacerbated by the weight and makeup of the trains.\2\ Accordingly,
FRA's Office of Research, Development, and Technology is currently
studying the air brake system performance and resulting train dynamics
of trains comprised of up to 200 cars.\3\ Additionally, in response to
the mandate of Section 22422 of the Infrastructure Investment and Jobs
Act,\4\ the National Academies of Sciences, Engineering and Medicine
(NAS) is conducting a study of the impacts of trains longer than 7,500
feet.\5\ The estimate to complete both FRA and NAS's studies is 2024.
---------------------------------------------------------------------------

    \1\ See GAO's May 2019 report titled RAIL SAFETY: Freight Trains
Are Getting Longer, and Additional Information is Needed to Assess
Their Impact, GAO-19-443 (available at https://www.gao.gov/assets/gao-19-443.pdf).
    \2\ See FRA Safety Advisory 2023-02, Train Makeup and
Operational Safety Concerns, for a discussion of how train makeup
affects safety. FRA Safety Advisory 2023-02 is available at: https://www.federalregister.gov/documents/2023/04/11/2023-07579/safety-advisory-2023-02-train-makeup-and-operational-safety-concerns.
    \3\ See https://railroads.dot.gov/sites/fra.dot.gov/files/2022-12/2023_RDT_CurrentProjects_complete_FINAL.pdf.
    \4\ Public Law 117-58 (Nov. 15, 2021).
    \5\ See NAS https://www.nationalacademies.org/our-work/impacts-of-trains-longer-than-7500-feet.
---------------------------------------------------------------------------

    While this research is ongoing, FRA is issuing this Safety Advisory
to ensure railroads and railroad employees are aware of the potential
complexities involved in the operation of longer trains, and
appropriate actions are taken to address these complexities. This
Safety Advisory also makes clear that train length is a critical factor
to consider when building any train, just as consideration of a
consist's

configuration is critical, as outlined in FRA Safety Advisory 2023-
02.\6\
---------------------------------------------------------------------------

    \6\ https://www.federalregister.gov/documents/2023/04/11/2023-07579/safety-advisory-2023-02-train-makeup-and-operational-safety-concerns.
---------------------------------------------------------------------------

    FRA has identified three significant incidents (discussed below)
that have occurred since 2022 involving trains with more than 200 cars,
where train handling and train makeup is believed to have caused, or
contributed to, the incidents. These incidents (which occurred in
Springfield, Ohio; Ravenna, Ohio; and Rockwell, Iowa) involved trains
that were 12,250 feet or longer and weighed over 17,000 trailing tons.
FRA believes these incidents demonstrate the need for railroads and
railroad employees to be particularly mindful of the complexities of
operating longer trains, which include, but are not limited to: (1)
train makeup and handling; (2) railroad braking and train handling
rules, policies, and procedures; (3) protecting against the loss of
end-of-train (EOT) device communications; and (4) where applicable,
protecting against the loss of radio communications among crew members.
These technical complexities make it critical that employees assigned
to operate longer trains are adequately trained and qualified for the
most demanding service for which they can be called. Additionally,
these technical complexities make it necessary to ensure that a
railroad's operational testing program adequately assesses and
evaluates whether employees are appropriately equipped and demonstrate
the capability to fully address those complexities in real world
operating scenarios.

Springfield, Ohio--March 4, 2023

    On March 4, 2023, at approximately 4:54 p.m. a Norfolk Southern
Railway (NS) 210-car, mixed-freight train totaling 13,470 feet and
17,966 trailing tons with distributed power units (DPUs) experienced a
derailment involving 28 cars, including 21 empty and 7 loaded cars in
Springfield, Ohio. The train had 82 cars equipped with end-of-car
cushioning devices, and 18 of those derailed. The train consisted of
three head-end locomotives and two mid-train DPUs, with one head-end
locomotive offline. The train was traveling on an ascending 0.6% grade
with the heavier part of the consist (the back end) on a 0.7% downhill
grade. The weight was mostly concentrated at the head and rear ends of
the train. During the incident, dynamic braking was applied only to the
head-end locomotive consist, while the DPUs were idle, making the train
function like a conventional train. The derailment happened at the sag
between ascending and descending grades, with short, empty rail cars
designed to ship coiled steel being the first to derail. Buff forces
peaked as the downhill portion of the train ran-in, causing the
derailment of cars 70 through 72 (the short coil cars) and the
subsequent pile-up. The train was classified as a key train,\7\ with 28
loaded hazardous materials (hazmat) cars distributed throughout. No
hazmat cars derailed. FRA's investigation into this incident is
currently ongoing, but preliminary indications show excessive buff
force due to train makeup and train handling are the primary causes of
the incident.
---------------------------------------------------------------------------

    \7\ As defined by Association of American Railroads (AAR)
Circular OT-55, available at https://public.railinc.com/sites/default/files/documents/OT-55.pdf, a ``Key Train'' is any train
with: (1) One tank car load of Poison or Toxic Inhalation Hazard
(PIH or TIH) (Hazard Zone A, B, C, or D), anhydrous ammonia
(UN1005), or ammonia solutions (UN3318); (2) 20 car loads or
intermodal portable tank loads of any combination of hazardous
material; or (3) One or more car loads of Spent Nuclear Fuel (SNF),
High Level Radioactive Waste (HLRW).
---------------------------------------------------------------------------

Ravenna, Ohio--November 1, 2022

    On November 1, 2022, at approximately 7:04 p.m., a NS 238-car,
mixed-freight train totaling 15,657 feet and 24,538 trailing tons with
DPUs experienced a derailment involving 22 cars, in Ravenna, Ohio. The
train included 188 loads and 50 empties, and was powered by two head-
end locomotives and two mid-train DPUs. The incident occurred on the NS
Keystone Subdivision main track. The derailment happened during an
undesired emergency air brake application, the cause of which is still
under investigation. The train was designated as a key train, and 2 of
the 63 hazmat cars derailed, in addition to 20 other cars. In the
consist, 56 cars were equipped with end-of-car cushioning devices. The
train was initially operating with the energy management system
engaged, but reverted to manual operation prior to the derailment. The
railroad reported the cause of the incident as buffing or excessive
slack action due to train makeup, but FRA's investigation is ongoing.

Rockwell, Iowa--March 24, 2022

    On March 24, 2022, at approximately 1:59 a.m., a southbound Union
Pacific Railroad (UP) train totaling 12,250 feet long and 23,315
trailing tons experienced a derailment of 37 cars in Rockwell, Iowa.
The train was traveling at a speed of 46 miles per hour at the time of
the incident. The train consisted of two head-end locomotives, one mid-
train DPU, one rear DPU, and a total of 204 cars consisting of 169
loads and 35 empties. At the time of the incident, the energy
management system was engaged, the train's head-end was ascending with
the rear portion descending, causing the slack to run in, leading to
compression at the middle of the train. This incident is still under
investigation and the analysis of in-train forces is ongoing, but
preliminary indications are that the primary cause of the incident was
buffing or excessive slack action due to train makeup.

II. The Complexities of Operating Longer Trains

    As noted above, the operation of longer trains involves technical
challenges pertaining to (1) train makeup and handling; (2) railroad
braking and train handling rules, policies, and procedures; (3)
protecting against the loss of EOT device communications; and (4) where
applicable, protecting against the loss of radio communication among
crew members.

Train Makeup and Handling

    FRA notes that recently issued Safety Advisory 2023-02 addresses
train makeup and accompanying operational safety concerns. FRA
reiterates the recommendations in that Safety Advisory as applied to
longer trains.

Railroad Braking and Train Handling Rules, Policies, and Procedures

    Air brake and train handling (ABTH) rules are the basis for the
safe operation of any train, but as noted above, longer trains may pose
unique challenges that must be comprehensively addressed in railroads'
ABTH rules. ABTH rules are developed from experience and are based on
factors such as the designs and types of rolling equipment in a
consist, whether the equipment is loaded or empty, and the placement of
that equipment in a train's consist. FRA recognizes that railroads
regularly update their ABTH rules, but FRA is concerned that some
railroads' ABTH rules do not sufficiently address issues related to
train length such as, but not limited to:
     The maximum number of powered axles in stretch (powered)
and dynamic braking;
     Train consist comprised of long-short car combinations;
     The placement of loaded and empty cars within a train
consist;
     End-of-car cushioning devices;
     Air brakes;
     The use of distributed power, if equipped;

     Operating over grades and through curves;
     Cold weather operations; and
     Train automatic operation (energy management systems),
including transfer from automatic to manual operating scenarios.
    Accordingly, this Safety Advisory recommends that railroads review
their existing ABTH rules and update those rules as necessary to ensure
they comprehensively address the complexities associated with train
length in the railroad's operations.

Protecting Against the Loss of EOT Device Communications

    Railroads have used EOT devices for years to monitor brake pipe
pressure at the rear of the train. More recently, the functionality of
these devices has expanded to assist in emergency braking. Two-way EOT
device systems are comprised of a rear-of-train unit (rear unit)
located on the last car of a train and a front-of-train unit (front
unit) located in the cab of the locomotive controlling the train. An
EOT system is linked by radio signals that will automatically transmit
an emergency brake signal from the controlling locomotive to the rear
of the train when an emergency brake application is initiated. The
system additionally allows for the engineer in the controlling
locomotive to manually activate a switch which sends a radio signal to
the rear unit EOT device that is tied into the air brake system, opens
an internal valve, and initiates an emergency brake application.
    Due to the distance EOT device signals must travel on longer
trains, the greater the risk that signal communications may be lost
between the front and rear units. Thus, longer trains are more prone to
experience EOT device loss of signal communications than shorter train
consists. Other factors, such as the local topography and weather
conditions, can present further challenges to EOT devices maintaining
communications. A loss of communication between EOT devices can be
temporary or permanent, and can result in an emergency air brake signal
from the controlling locomotive taking longer to propagate through the
entire train (effectively slowing down braking of the entire consist),
or in the event of a train air brake line blockage, a loss of
communication between the EOT devices will result in the emergency
signal not being transmitted to the rear EOT device, as evidenced by
the fatal UP Granite Canyon accident that occurred on October 4, 2018.
    Accordingly, this Safety Advisory recommends that railroads
implement technologies, policies, procedures, and any necessary
hardware enhancements to ensure two-way EOT devices maintain continuous
and undisrupted communications to and from the front and rear units.
Additionally, this Safety Advisory recommends that railroads develop,
implement, and maintain clear rules to follow in the event of a loss of
communication between EOT devices.

Protecting Against the Loss of Radio Communications Among Crew Members

    Effective radio voice communications are crucial for ensuring the
safety of railroad employees and train operations. A longer train can
present a radio voice communication problem for an operating employee
traveling a long distance away from the lead locomotive. Portable radio
handsets generally used might not have sufficient radio signal strength
to provide clear communication over great distances or undulating
topography. This problem is particularly concerning during emergency
situations, where clear communication is critical. For instance, if an
operating employee is injured and unable to contact the locomotive
engineer, delays in getting timely aid to the operating employee may
occur.
    As a result, this Safety Advisory recommends that railroads adopt
enhanced technologies and, as necessary, procedures for maintaining
radio voice communications with a contingency plan if voice
communications are lost between operating employees.

III. Employee Training and Qualification Considerations

Training Generally

    The potential complexities involved with the operation of longer
trains make it particularly critical that locomotive engineers (and all
other crew members) are adequately trained and qualified to safely
perform their duties. FRA is concerned that certified locomotive
engineers may receive basic train handling training that was typically
satisfactory for historical operations over particular territories, but
given railroads' current increased operation of longer trains, such
training may no longer be adequate. FRA reminds railroads of the
regulatory requirement at 49 CFR 240.211(a) for railroads to, prior to
initially certifying or recertifying any person as a locomotive
engineer, determine that the person has demonstrated the skills
necessary to safely operate locomotives or trains in the most demanding
class or type of service that the person will be permitted to perform.
In the context of longer trains, the engineer must be adequately
trained in their operation and demonstrate an ability to safely do so
prior to being called for such operation. For example, an engineer who
has safely operated a 100-car consist over a particular territory for
the past five years, but has never been trained and qualified on a
longer consist, should not be called to operate a 200-car train without
additional training on the operational complexities involved.
    A locomotive engineer cannot be expected to safely operate in a
more demanding service without proper additional training that covers
the unique challenges and complexities those trains present. This
training concern extends to the designated supervisors of locomotive
engineers, who are responsible for understanding these territories,
operations, and associated risks, and are expected to be involved in
the training, testing, and qualifying of locomotive engineers.

Part 240 Locomotive Engineer Certification Programs

    Appendix B to 49 CFR part 240 outlines the procedures that
railroads must describe in their locomotive engineer certification
programs, and the level of detail required for the training,
qualification, and certification of locomotive engineers. Accordingly,
FRA expects each railroad to design its program to address that
railroad's specific operations and FRA expects railroads to adjust
their programs as the nature or circumstances of operations change.
Specifically, if a railroad creates a more demanding operating
environment through the operation of longer trains, that railroad's
locomotive engineer certification program must be updated to reflect
that more demanding environment. For this reason, FRA recommends that
each railroad with a submitted program, review whether updates to their
programs are necessary to ensure: (1) the complexities of that
railroad's operations are adequately addressed in the program, and (2)
its employees are adequately trained and qualified to operate in the
most demanding service. FRA notes that the use of distributed power and
energy management systems typically involved in longer train operations
place new demands on locomotive engineers and, as such, those employees
must be trained and qualified on these additional complexities.

Part 217 Operational Testing

    Under 49 CFR part 217, railroads are required to conduct
operational tests. These operational tests are vital for determining
that employees are

properly trained and fully aware of the rules and regulations governing
safe operations. By identifying and addressing any potential training
and compliance issues revealed by effective operational testing of
longer trains, railroads can mitigate the potential risk of accidents
and incidents. As new operations and technology are introduced,
operational testing must be adjusted accordingly.

IV. Blocked Public Highway-Rail Grade Crossings

    Blocked crossings occur when trains occupy highway-rail grade
crossings and impede the flow of motor vehicle or pedestrian traffic
over railroad tracks for extended periods of time. Blocked crossings
pose numerous potential safety risks--frustrated individuals may be
tempted to crawl, on, over, under, or between stopped railcars and
blocked crossings can hinder emergency services' access to individuals
in need of fire, police, or EMS assistance. Residents of communities
through which railroads operate often rely on specific highway-rail
grade crossings for daily commutes and other essential activities.
Local knowledge of these crossings has developed over time, allowing
community members to navigate through those crossings safely and
efficiently. However, longer trains may, in certain instances, mean
that trains are occupying these crossings for longer periods,
potentially blocking access to homes, hospitals, schools, or
businesses, and causing unexpected disruptions. Local emergency
responders, such as police, fire, and ambulance services, can be
severely impacted if emergency responders must find an alternate route
when a train is blocking a crossing or if there is no alternative
route.
    Longer trains may also present challenges for pedestrians as the
trains occupy pedestrian crossings for longer periods of time. Blocked
crossings near schools are especially critical safety hazards due to
the potential for children to cut through the idling trains.
    Depending on the length of time that a crossing is blocked, the
type of vehicles at a blocked crossing, and the configuration of the
highway, motor vehicle drivers could be expected to take greater risks
and commit dangerous maneuvers in an attempt to seek an alternate
route. Motor vehicle drivers may also be more tempted to ``outrun the
train'' by speeding to cross the tracks before the oncoming train
reaches the crossing, particularly at locations that are frequently
blocked by trains. Although trains of any length may block highway-rail
grade crossings for a variety of reasons, the operation of longer
trains may, in certain instances, exacerbate the impact of blocked
crossings on communities. Accordingly, FRA recommends that railroads
identify geographic areas with highway-rail grade crossings that could
be impacted by longer trains, and work with local communities and
emergency responders to identify and implement methods of preventing,
or at least mitigating, the impacts of such blockages. These actions
could include: identifying alternative routes for critical emergency
response needs, establishing and maintaining clear lines of
communication between the railroad and local authorities, or developing
protocols for resolving concerns surrounding emergency response and
blocked crossings.

V. Recommended Actions

    Due to the complexities involved in the operation of longer trains,
and to ensure the safety of the Nation's railroads, their employees,
and the general public, FRA recommends that freight railroads take the
following actions:
    1. Review ABTH rules, or supplements, to ensure those rules
adequately address the complexities associated with the railroad's
operation of longer trains.
    2. Implement technologies, policies, procedures, and/or any
necessary hardware enhancements to ensure two-way EOT devices maintain
undisrupted communications to and from the head-end and rear-end units.
Develop, implement, and maintain clear policies, procedures, and rules
that address instances of the loss of communications between EOT
devices.
    3. Adopt enhanced technologies and/or procedures for maintaining
radio voice communications with a contingency plan if voice
communications are lost between operating employees.
    4. Identify changes to crew training, train handling procedures,
train makeup, DPU requirements, limitations to length or tonnage, speed
restrictions, track, mechanical, and brake inspection and maintenance
requirements necessary to ensure safe operations of longer trains.
    5. Review, and update as necessary, each railroad's current 49 CFR
part 240 locomotive engineer certification program to ensure the
program addresses all levels of operations, including the operation of
longer trains.
    6. Review and evaluate existing operational testing data as
required by 49 CFR 217.9(e) relevant to the operation of longer trains.
If longer train operations are conducted, or if any potential training
or compliance issues are identified, consider increasing the frequency
of operational testing and/or modifying the types of operational
testing performed to address those deficiencies.
    7. Identify geographic areas that could be impacted by longer
trains at highway-rail grade crossings, take action to minimize blocked
crossings by considering train length when taking any action that
causes any part of a train to occupy a crossing, and work with local
communities and emergency responders to prevent or at least mitigate
the impacts of blocked crossings should they occur.
    8. Conduct post-accident simulator evaluations and assign accurate
primary and contributing cause codes for reportable and accountable
accidents and incidents. A detailed narrative is basic to an
understanding of the factors leading to, and the consequences arising
from, an accident.
    FRA encourages freight railroads to take actions consistent with
the preceding recommendations. FRA may modify this Safety Advisory
2023-03, issue additional safety advisories, or take other appropriate
action necessary to ensure the highest level of safety on the Nation's
railroads, including pursing other corrective measures under its rail
safety authority.

    Issued in Washington, DC.
Amitabha Bose,
Administrator.
[FR Doc. 2023-09239 Filed 5-1-23; 8:45 am]
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MEMORANDUM

DATE:		September 18, 2007

SUBJECT:	Inclusion of Document

FROM:		H. Lynn Dail, Project Lead

		Natural Resources Commerce Group

TO:		Docket EPA-OAR-HQ-2002-0009

EPA made best efforts to ensure that all documents were uploaded electronically into the docket, however, due to unforeseen reasons; certain documents were not published in the docket at the final rulemaking.  These documents are being uploaded and published at this time.


[Federal Register Volume 77, Number 95 (Wednesday, May 16, 2012)]
[Notices]
[Pages 28891-28893]
[FR Doc No: 2012-11841]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2012-0012]

National Flood Insurance Program Programmatic Environmental
Impact Statement

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice of Intent to prepare an Environmental Impact Statement.

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

SUMMARY: The Federal Emergency Management Agency intends to prepare an
Environmental Impact Statement evaluating the impacts on the quality of
the human environment of the National Flood Insurance Program as it is
currently implemented and of potential future changes to the Program.

DATES: Comments must be submitted by July 16, 2012.

ADDRESSES: Comments must be identified by Docket ID FEMA-2012-0012 and
may be submitted by one of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments. Please note that this notice of
intent is not a rulemaking and that the Federal Rulemaking Portal is
being utilized only as a mechanism for receiving comments.
    Mail: Regulatory Affairs Legal Division, Office of Chief Counsel,
Federal Emergency Management Agency, Room 835, 500 C Street SW.,
Washington, DC 20472-3100.

FOR FURTHER INFORMATION CONTACT: Emily Blanton, Federal Emergency

Management Agency, Office of Environmental Planning and Historic
Preservation, 1800 South Bell Street, 7th Floor, Arlington, VA 20598-
3020. Phone:<PHONE_NUMBER>. Fax:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Section 102(2)(C) of the National
Environmental Policy Act of 1969 (NEPA), the Council on Environmental
Quality (CEQ) regulations implementing NEPA, and the Federal Emergency
Management Agency's (FEMA's) Environmental Consideration regulations
require preparation of an Environmental Impact Statement (EIS) for
major Federal actions that would have significant impacts to the
quality of the human environment. FEMA is undertaking an EIS of the
National Flood Insurance Program (NFIP) to consider new information
relating to the environmental impacts of the NFIP, to update the 1976
EIS on the NFIP, and to consider potential changes to the program's
implementation. The CEQ regulations at 40 CFR 1501.7 and 40 CFR 1508.22
require the issuance of a notice of intent to prepare an EIS to
initiate the scoping process. Scoping is an early and open process that
assists the Federal action agency in determining the scope of issues to
be addressed and for identifying significant issues related to a
proposed action.
    The U.S. Congress established the NFIP with the passage of the
National Flood Insurance Act of 1968. The NFIP is a Federal program for
property owners in NFIP participating communities to purchase insurance
as a protection against flood losses in exchange for State and
community adoption and implementation of land use criteria that reduce
future flood damages. Participation in the NFIP is based on an
agreement between communities and the Federal Government. If a
community adopts and enforces a FEMA approved floodplain management
ordinance to reduce future flood risk to new construction in regulated
floodplains, the Federal Government will make flood insurance available
to individuals within the community as financial protection against
flood losses. This insurance is designed to provide a financial
alternative and to reduce the escalating costs of Federal disaster
assistance for flood damaged buildings and their contents. The costs
associated with flood damage are reduced by nearly $1.7 billion a year
through communities implementing sound floodplain management
requirements and property owners purchasing flood insurance.
Additionally, buildings constructed in compliance with NFIP building
standards suffer approximately 80 percent less damage annually than
those not built to NFIP standards.
    The Federal Insurance and Mitigation Administration (FIMA), a part
of FEMA, manages the NFIP. The three components of the NFIP are Flood
Insurance, Floodplain Management, and Flood Hazard Mapping. More than
21,000 communities across the United States and its territories
participate in the NFIP by adopting and enforcing floodplain management
ordinances to reduce future flood damages.
    In addition to providing flood insurance and reducing flood damages
through floodplain management regulations, the NFIP identifies and maps
the Nation's regulated floodplains. Mapping flood hazards creates a
broad-based awareness of flood hazards and provides data needed for
floodplain management programs and to actuarially rate new construction
for flood insurance.
    FEMA has led various efforts to identify areas for improvement
within the NFIP. In 2006, FEMA released an evaluation of the program
across five major areas: Actuarial soundness and the cost of flooding,
compliance with NFIP floodplain management requirements, building
standards and identifying flood risks, insurance policy sales and
mandatory purchase requirement, and environmental and development
impacts of the NFIP. The evaluation can be accessed at http://www.fema.gov/business/nfip/nfipeval.shtm.
    More recently FEMA initiated an open and public process to modify
the NFIP which has led to the identification of possible program
changes. Many of these changes would also account for environmental
planning and historic preservation considerations in the administration
of the program, including but not limited to impacts on endangered and
threatened species and critical habitat. This effort will result in a
comprehensive series of policy recommendations designed to transition
the NFIP toward a more resilient, sustainable, and comprehensive
approach to flood risk management. Information about this effort can be
found at http://www.fema.gov/business/nfip/nfip_reform.shtm.
    FEMA has developed a Purpose and Need statement for evaluating NFIP
proposed action and alternatives. The Purpose and Need statement
discusses the need for a National Flood Insurance Program and the
purpose laid out by Congress. It also establishes the need to account
for Constitutional considerations, such as due process and preservation
of States' rights, and consideration of national policies such as those
established by NEPA, the National Historic Preservation Act, the
Endangered Species Act, Executive Order 11988--Floodplain Management,
and Executive Order 12898--Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations. FEMA has
developed five alternatives for its consideration. In addition, FEMA
has preliminarily identified nine broad areas for evaluation of
potential for effect on the human environment that will be evaluated
during this process. These documents are available in this Docket for
review and comment. FEMA proposes to evaluate the following proposed
action and alternatives in this EIS:
    (1) Modify the NFIP based upon changes identified through the
evaluation process to enhance floodplain management standards including
provisions to address endangered species and habitat concerns. This is
FEMA's proposed action.
    (2) Taking no action, which would result in the continued
administration and implementation of the NFIP as it stands today.
    (3) Discontinue the NFIP, recognizing that only Congress can take
this action.
    (4) Request legislative authority to remove existing subsidies and
cross subsidies for flood insurance policies.
    (5) Modify the NFIP based upon changes identified through the
evaluation process to enhance floodplain management standards including
provisions to address endangered species and habitat concerns and
request legislative authority to remove existing subsidies and cross
subsidies for flood insurance policies.
    This notice and public comment request initiates the public scoping
process for this action. Public comments submitted on these documents
will become part of the scoping record. FEMA also intends to initiate
discussions with other Federal agencies on the scope of this effort and
identify cooperating agencies interested in participating as such in
this process.
    At this time FEMA does not plan to conduct public scoping meetings
given the amount of public input FEMA has already received during the
NFIP Reform process. The evaluation process included one scoping
meeting with key stakeholders in November 2009. A summary of the
information gathered (Phase I Report) can be found at http://www.fema.gov/business/nfip/nfip_reform.shtm#3. The Phase I Report

is available in this Docket for inspection. In December 2010, FEMA
conducted two public meetings and opened a public comment period on
four alternatives for NFIP Reform. See 75 FR 69096, Nov. 10, 2010.
Comments received can be viewed at http://www.regulations.gov/ under
Docket ID FEMA-2010-0065. These comments will be considered part of the
scoping process for this EIS.

    Authority:  National Environmental Policy Act (NEPA), as
amended, 42 U.S.C. 4331 et seq.; 40 CFR part 1500; 44 CFR part 10.

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2012-11841 Filed 5-15-12; 8:45 am]
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