10

                                     9.33

                                      313

                                  $18,648.28
                                  $19,248.28
                                     $0.00
                                    $600.00

	Attachment A

	Summary Table for Information Collection under CWA Section 312

Table 17: 	Total CWA Section 312 Estimated Respondent (State Agency) Burden and Cost Summary

                        Number of Respondents Per Year
                         Number or Activities Per Year
                        Total Number of Hours Per Year
                        Total Annual O&M Costs ($)
                         Total Labor Cost Per Year ($)
                            Total Cost Per Year ($)
Armed Forces Vessels
Table 7
                                       6
                                       6
                                      957
                                     $900
                                    $43,740
                                    $44,641
Vessel Sewage
Table 15
                                      10
                                     9.33
                                     1309
                                    $1,400
                                    $62,582
                                    $63,981
Total
                                      16
                                     15.33
                                     2,266
                                    $2,300
                                   $106,322
                                   $108,622

*  This data is taken from Tables 7 and 15 of this ICR

Table 18:	Total CWA Section 312 Estimated Agency (EPA) Burden and Cost Summary

                        Number of Respondents Per Year
                         Number or Activities Per Year
                        Total Number of Hours Per Year
                        Total Annual O&M Costs ($)
                         Total Labor Cost Per Year ($)
                            Total Cost Per Year ($)
Armed Forces Vessels
Table 8
                                       6
                                       6
                                      173
                                     $360
                                  $10,386.83
                                  $10,746.83
Vessel Sewage
Table 15
                                      10
                                     9.33
                                      313
                                     $600
                                  $18,648.28
                                  $19,248.28
Total
                                      16
                                     15.33
                                      486
                                     $960
                                  $29,035.11
                                  $29,995.11

*  This data is taken from Tables 8 and 16 of this ICR

	Attachment B

	40 CFR 1700 (Uniform National Discharge Standards of the Armed Forces)

Authority:   33 U.S.C. 1322, 1361.
Source:   64 FR 25134, May 10, 1999, unless otherwise noted.
Subpart A -- Scope
§ 1700.1   Applicability.
(a) This part applies to the owners and operators of Armed Forces vessels, except where the Secretary of Defense finds that compliance with this part is not in the interest of the national security of the United States. This part does not apply to vessels while they are under construction, vessels in drydock, amphibious vehicles, or vessels under the jurisdiction of the Department of Transportation other than those of the Coast Guard.
(b) This part also applies to States and political subdivisions of States.
§ 1700.2   Effect.
(a) This part identifies those discharges, other than sewage, incidental to the normal operation of Armed Forces vessels that require control within the navigable waters of the United States and the waters of the contiguous zone, and those discharges that do not require control. Discharges requiring control are identified in §1700.4. Discharges not requiring control are identified in §1700.5. Federal standards of performance for each required Marine Pollution Control Device are listed in §1700.14. This part is not applicable beyond the contiguous zone.
(b) This part prohibits States and their political subdivisions from adopting or enforcing State or local statutes or regulations controlling the discharges from Armed Forces vessels listed in §§1700.4 and 1700.5 according to the timing provisions in §1700.6, except to establish a no-discharge zone by State prohibition in accordance with §1700.9, or to apply for a no-discharge zone by EPA prohibition in accordance with §1700.10. This part also provides a mechanism for States to petition the Administrator and the Secretary to review a determination of whether a discharge requires control, or to review a Federal standard of performance for a Marine Pollution Control Device, in accordance with §§1700.11 through 1700.13.
§ 1700.3   Definitions.
Administrator means the Administrator of the United States Environmental Protection Agency or that person's authorized representative.
Armed Forces vessel means a vessel owned or operated by the United States Department of Defense or the United States Coast Guard, other than vessels that are time or voyage chartered by the Armed Forces, vessels of the U.S. Army Corps of Engineers, or vessels that are memorials or museums.
Discharge incidental to the normal operation of a vessel means a discharge, including, but not limited to: graywater, bilgewater, cooling water, weather deck runoff, ballast water, oil water separator effluent, and any other pollutant discharge from the operation of a marine propulsion system, shipboard maneuvering system, crew habitability system, or installed major equipment, such as an aircraft carrier elevator or a catapult, or from a protective, preservative, or absorptive application to the hull of a vessel; and a discharge in connection with the testing, maintenance, and repair of any of the aforementioned systems whenever the vessel is waterborne, including pierside. A discharge incidental to normal operation does not include:
(1) Sewage;
(2) A discharge of rubbish, trash, or garbage;
(3) A discharge of air emissions resulting from the operation of a vessel propulsion system, motor driven equipment, or incinerator;
(4) A discharge that requires a National Pollutant Discharge Elimination System (NPDES) permit under the Clean Water Act; or
(5) A discharge containing source, special nuclear, or byproduct materials regulated by the Atomic Energy Act.
Environmental Protection Agency, abbreviated EPA, means the United States Environmental Protection Agency.
Marine Pollution Control Device, abbreviated MPCD, means any equipment or management practice installed or used on an Armed Forces vessel that is designed to receive, retain, treat, control, or discharge a discharge incidental to the normal operation of a vessel, and that is determined by the Administrator and Secretary to be the most effective equipment or management practice to reduce the environmental impacts of the discharge consistent with the considerations in Clean Water Act section 312(n)(2)(B).
No-discharge zone means an area of specified waters established pursuant to this regulation into which one or more specified discharges incidental to the normal operation of Armed Forces vessels, whether treated or untreated, are prohibited.
Secretary means the Secretary of the United States Department of Defense or that person's authorized representative.
United States includes the States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Canal Zone, and the Trust Territory of the Pacific Islands.
Vessel includes every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on navigable waters of the United States or waters of the contiguous zone, but does not include amphibious vehicles.
Subpart B -- Discharge Determinations
§ 1700.4   Discharges requiring control.
For the following discharges incidental to the normal operation of Armed Forces vessels, the Administrator and the Secretary have determined that it is reasonable and practicable to require use of a Marine Pollution Control Device for at least one class of vessel to mitigate adverse impacts on the marine environment:
(a) Aqueous Film-Forming Foam: the firefighting foam and seawater mixture discharged during training, testing, or maintenance operations.
(b) Catapult Water Brake Tank & Post-Launch Retraction Exhaust: the oily water skimmed from the water tank used to stop the forward motion of an aircraft carrier catapult, and the condensed steam discharged when the catapult is retracted.
(c) Chain Locker Effluent: the accumulated precipitation and seawater that is emptied from the compartment used to store the vessel's anchor chain.
(d) Clean Ballast: the seawater taken into, and discharged from, dedicated ballast tanks to maintain the stability of the vessel and to adjust the buoyancy of submarines.
(e) Compensated Fuel Ballast: the seawater taken into, and discharged from, ballast tanks designed to hold both ballast water and fuel to maintain the stability of the vessel.
(f) Controllable Pitch Propeller Hydraulic Fluid: the hydraulic fluid that discharges into the surrounding seawater from propeller seals as part of normal operation, and the hydraulic fluid released during routine maintenance of the propellers.
(g) Deck Runoff: the precipitation, washdowns, and seawater falling on the weather deck of a vessel and discharged overboard through deck openings.
(h) Dirty Ballast: the seawater taken into, and discharged from, empty fuel tanks to maintain the stability of the vessel.
(i) Distillation and Reverse Osmosis Brine: the concentrated seawater (brine) produced as a byproduct of the processes used to generate freshwater from seawater.
(j) Elevator Pit Effluent: the liquid that accumulates in, and is discharged from, the sumps of elevator wells on vessels.
(k) Firemain Systems: the seawater pumped through the firemain system for firemain testing, maintenance, and training, and to supply water for the operation of certain vessel systems.
(l) Gas Turbine Water Wash: the water released from washing gas turbine components.
(m) Graywater: galley, bath, and shower water, as well as wastewater from lavatory sinks, laundry, interior deck drains, water fountains, and shop sinks.
(n) Hull Coating Leachate: the constituents that leach, dissolve, ablate, or erode from the paint on the hull into the surrounding seawater.
(o) Motor Gasoline and Compensating Discharge: the seawater taken into, and discharged from, motor gasoline tanks to eliminate free space where vapors could accumulate.
(p) Non-Oily machinery wastewater: the combined wastewater from the operation of distilling plants, water chillers, valve packings, water piping, low- and high-pressure air compressors, and propulsion engine jacket coolers.
(q) Photographic Laboratory Drains: the laboratory wastewater resulting from processing of photographic film.
(r) Seawater Cooling Overboard Discharge: the discharge of seawater from a dedicated system that provides noncontact cooling water for other vessel systems.
(s) Seawater Piping Biofouling Prevention: the discharge of seawater containing additives used to prevent the growth and attachment of biofouling organisms in dedicated seawater cooling systems on selected vessels.
(t) Small Boat Engine Wet Exhaust: the seawater that is mixed and discharged with small boat propulsion engine exhaust to cool the exhaust and quiet the engine.
(u) Sonar Dome Discharge: the leaching of antifoulant materials into the surrounding seawater and the release of seawater or freshwater retained within the sonar dome.
(v) Submarine Bilgewater: the wastewater from a variety of sources that accumulates in the lowest part of the submarine (i.e., bilge).
(w) Surface Vessel Bilgewater/Oil-Water Separator Effluent: the wastewater from a variety of sources that accumulates in the lowest part of the vessel (the bilge), and the effluent produced when the wastewater is processed by an oil water separator.
(x) Underwater Ship Husbandry: the materials discharged during the inspection, maintenance, cleaning, and repair of hulls performed while the vessel is waterborne.
(y) Welldeck Discharges: the water that accumulates from seawater flooding of the docking well (welldeck) of a vessel used to transport, load, and unload amphibious vessels, and from maintenance and freshwater washings of the welldeck and equipment and vessels stored in the welldeck.
§ 1700.5   Discharges not requiring control.
For the following discharges incidental to the normal operation of Armed Forces vessels, the Administrator and the Secretary have determined that it is not reasonable or practicable to require use of a Marine Pollution Control Device to mitigate adverse impacts on the marine environment:
(a) Boiler Blowdown: the water and steam discharged when a steam boiler is blown down, or when a steam safety valve is tested.
(b) Catapult Wet Accumulator Discharge: the water discharged from a catapult wet accumulator, which stores a steam/water mixture for launching aircraft from an aircraft carrier.
(c) Cathodic Protection: the constituents released into surrounding water from sacrificial anode or impressed current cathodic hull corrosion protection systems.
(d) Freshwater Lay-up: the potable water that is discharged from the seawater cooling system while the vessel is in port, and the cooling system is in lay-up mode (a standby mode where seawater in the system is replaced with potable water for corrosion protection).
(e) Mine Countermeasures Equipment Lubrication: the constituents released into the surrounding seawater by erosion or dissolution from lubricated mine countermeasures equipment when the equipment is deployed and towed.
(f) Portable Damage Control Drain Pump Discharge: the seawater pumped through the portable damage control drain pump and discharged overboard during testing, maintenance, and training activities.
(g) Portable Damage Control Drain Pump Wet Exhaust: the seawater mixed and discharged with portable damage control drain pump exhaust to cool the exhaust and quiet the engine.
(h) Refrigeration and Air Conditioning Condensate: the drainage of condensed moisture from air conditioning units, refrigerators, freezers, and refrigerated spaces.
(i) Rudder Bearing Lubrication: the oil or grease released by the erosion or dissolution from lubricated bearings that support the rudder and allow it to turn freely.
(j) Steam Condensate: the condensed steam discharged from a vessel in port, where the steam originates from port facilities.
(k) Stern Tube Seals and Underwater Bearing Lubrication: the seawater pumped through stern tube seals and underwater bearings to lubricate and cool them during normal operation.
(l) Submarine Acoustic Countermeasures Launcher Discharge: the seawater that is mixed with acoustic countermeasure device propulsion gas following a countermeasure launch that is then exchanged with surrounding seawater, or partially drained when the launch assembly is removed from the submarine for maintenance.
(m) Submarine Emergency Diesel Engine Wet Exhaust: the seawater that is mixed and discharged with submarine emergency diesel engine exhaust to cool the exhaust and quiet the engine.
(n) Submarine Outboard Equipment Grease and External Hydraulics: the grease released into the surrounding seawater by erosion or dissolution from submarine equipment exposed to seawater.
Subpart C -- Effect on States
§ 1700.6   Effect on State and local statutes and regulations.
(a) After the effective date of a final rule determining that it is not reasonable and practicable to require use of a Marine Pollution Control Device regarding a particular discharge incidental to the normal operation of an Armed Forces vessel, States or political subdivisions of States may not adopt or enforce any State or local statute or regulation, including issuance or enforcement of permits under the National Pollutant Discharge Elimination System, controlling that discharge, except that States may establish a no-discharge zone by State prohibition (as provided in §1700.9), or apply for a no-discharge zone by EPA prohibition (as provided in §1700.10).
(b)(1) After the effective date of a final rule determining that it is reasonable and practicable to require use of a Marine Pollution Control Device regarding a particular discharge incidental to the normal operation of an Armed Forces vessel, States may apply for a no-discharge zone by EPA prohibition (as provided in §1700.10) for that discharge.
(2) After the effective date of a final rule promulgated by the Secretary governing the design, construction, installation, and use of a Marine Pollution Control Device for a discharge listed in §1700.4, States or political subdivisions of States may not adopt or enforce any State or local statute or regulation, including issuance or enforcement of permits under the National Pollutant Discharge Elimination System, controlling that discharge except that States may establish a no-discharge zone by State prohibition (as provided in §1700.9), or apply for a no-discharge zone by EPA prohibition (as provided in §1700.10).
(c) The Governor of any State may submit a petition requesting that the Administrator and Secretary review a determination of whether a Marine Pollution Control Device is required for any discharge listed in §1700.4 or §1700.5, or review a Federal standard of performance for a Marine Pollution Control Device.
No-Discharge Zones
§ 1700.7   No-discharge zones.
For this part, a no-discharge zone is a waterbody, or portion thereof, where one or more discharges incidental to the normal operation of Armed Forces vessels, whether treated or not, are prohibited. A no-discharge zone is established either by State prohibition using the procedures in §1700.9, or by EPA prohibition, upon application of a State, using the procedures in §1700.10.
§ 1700.8   Discharges for which no-discharge zones can be established.
(a) A no-discharge zone may be established by State prohibition for any discharge listed in §1700.4 or §1700.5 following the procedures in §1700.9. A no-discharge zone established by a State using these procedures may apply only to those discharges that have been preempted from other State or local regulation pursuant to §1700.6.
(b) A no-discharge zone may be established by EPA prohibition for any discharge listed in §1700.4 or §1700.5 following the procedures in §1700.10.
§ 1700.9   No-discharge zones by State prohibition.
(a) A State seeking to establish a no-discharge zone by State prohibition must send to the Administrator the following information:
(1) The discharge from §1700.4 or §1700.5 to be prohibited within the no-discharge zone.
(2) A detailed description of the waterbody, or portions thereof, to be included in the prohibition. The description must include a map, preferably a USGS topographic quadrant map, clearly marking the zone boundaries by latitude and longitude.
(3) A determination that the protection and enhancement of the waters described in paragraph (a)(2) of this section require greater environmental protection than provided by existing Federal standards.
(4) A complete description of the facilities reasonably available for collecting the discharge including:
(i) A map showing their location(s) and a written location description.
(ii) A demonstration that the facilities have the capacity and capability to provide safe and sanitary removal of the volume of discharge being prohibited in terms of both vessel berthing and discharge reception.
(iii) The schedule of operating hours of the facilities.
(iv) The draft requirements of the vessel(s) that will be required to use the facilities and the available water depth at the facilities.
(v) Information showing that handling of the discharge at the facilities is in conformance with Federal law.
(5) Information on whether vessels other than those of the Armed Forces are subject to the same type of prohibition. If the State is not applying the prohibition to all vessels in the area, the State must demonstrate the technical or environmental basis for applying the prohibition only to Armed Forces vessels. The following information must be included in the technical or environmental basis for treating Armed Forces vessels differently:
(i) An analysis showing the relative contributions of the discharge from Armed Forces and non-Armed Forces vessels.
(ii) A description of State efforts to control the discharge from non-Armed Forces vessels.
(b) The information provided under paragraph (a) of this section must be sufficient to enable EPA to make the two determinations listed below. Prior to making these determinations, EPA will consult with the Secretary on the adequacy of the facilities and the operational impact of any prohibition on Armed Forces vessels.
(1) Adequate facilities for the safe and sanitary removal of the discharge are reasonably available for the specified waters.
(2) The prohibition will not have the effect of discriminating against vessels of the Armed Forces by reason of the ownership or operation by the Federal Government, or the military function, of the vessels.
(c) EPA will notify the State in writing of the result of the determinations under paragraph (b) of this section, and will provide a written explanation of any negative determinations. A no-discharge zone established by State prohibition will not go into effect until EPA determines that the conditions of paragraph (b) of this section have been met.
§ 1700.10   No-discharge zones by EPA prohibition.
(a) A State requesting EPA to establish a no-discharge zone must send to the Administrator an application containing the following information:
(1) The discharge from §1700.4 or §1700.5 to be prohibited within the no-discharge zone.
(2) A detailed description of the waterbody, or portions thereof, to be included in the prohibition. The description must include a map, preferably a USGS topographic quadrant map, clearly marking the zone boundaries by latitude and longitude.
(3) A technical analysis showing why protection and enhancement of the waters described in paragraph (a)(2) of this section require a prohibition of the discharge. The analysis must provide specific information on why the discharge adversely impacts the zone and how prohibition will protect the zone. In addition, the analysis should characterize any sensitive areas, such as aquatic sanctuaries, fish-spawning and nursery areas, pristine areas, areas not meeting water quality standards, drinking water intakes, and recreational areas.
(4) A complete description of the facilities reasonably available for collecting the discharge including:
(i) A map showing their location(s) and a written location description.
(ii) A demonstration that the facilities have the capacity and capability to provide safe and sanitary removal of the volume of discharge being prohibited in terms of both vessel berthing and discharge reception.
(iii) The schedule of operating hours of the facilities.
(iv) The draft requirements of the vessel(s) that will be required to use the facilities and the available water depth at the facilities.
(v) Information showing that handling of the discharge at the facilities is in conformance with Federal law.
(5) Information on whether vessels other than those of the Armed Forces are subject to the same type of prohibition. If the State is not applying a prohibition to other vessels in the area, the State must demonstrate the technical or environmental basis for applying a prohibition only to Armed Forces vessels. The following information must be included in the technical or environmental basis for treating Armed Forces vessels differently:
(i) An analysis showing the relative contributions of the discharge from Armed Forces and non-Armed Forces vessels.
(ii) A description of State efforts to control the discharge from non-Armed Forces vessels.
(b) The information provided under paragraph (a) of this section must be sufficient to enable EPA to make the three determinations listed below. Prior to making these determinations, EPA will consult with the Secretary on the adequacy of the facilities and the operational impact of the prohibition on Armed Forces vessels.
(1) The protection and enhancement of the specified waters require a prohibition of the discharge.
(2) Adequate facilities for the safe and sanitary removal of the discharge are reasonably available for the specified waters.
(3) The prohibition will not have the effect of discriminating against vessels of the Armed Forces by reason of the ownership or operation by the Federal Government, or the military function, or the vessels.
(c) If the three conditions in paragraph (b) of this section are met, EPA will by regulation establish the no-discharge zone. If the conditions in paragraphs (b) (1) and (3) of this section are met, but the condition in paragraph (b)(2) of this section is not met, EPA may establish the no-discharge zone if it determines that the significance of the waters and the potential impact of the discharge are of sufficient magnitude to warrant any resulting constraints on Armed Forces vessels.
(d) EPA will notify the State of its decision on the no-discharge zone application in writing. If EPA approves the no-discharge zone application, EPA will by regulation establish the no-discharge zone by modification to this part. A no-discharge zone established by EPA prohibition will not go into effect until the effective date of the regulation.
State Petition for Review
§ 1700.11   State petition for review of determinations or standards.
The Governor of any State may submit a petition requesting that the Administrator and Secretary review a determination of whether a Marine Pollution Control Device is required for any discharge listed in §1700.4 or §1700.5, or review a Federal standard of performance for a Marine Pollution Control Device. A State may submit a petition only where there is new, significant information not considered previously by the Administrator and Secretary.
§ 1700.12   Petition requirements.
A petition for review of a determination or standard must include:
(a) The discharge from §1700.4 or §1700.5 for which a change in determination is requested, or the performance standard from §1700.14 for which review is requested.
(b) The scientific and technical information on which the petition is based.
(c) A detailed explanation of why the State believes that consideration of the new information should result in a change to the determination or the standard on a nationwide basis, and an explanation of how the new information is relevant to one or more of the following factors:
(1) The nature of the discharge.
(2) The environmental effects of the discharge.
(3) The practicability of using a Marine Pollution Control Device.
(4) The effect that installation or use of the Marine Pollution Control Device would have on the operation or operational capability of the vessel.
(5) Applicable United States law.
(6) Applicable international standards.
(7) The economic costs of the installation and use of the Marine Pollution Control Device.
§ 1700.13   Petition decisions.
The Administrator and the Secretary will evaluate the petition and grant or deny the petition no later than two years after the date of receipt of the petition. If the Administrator and Secretary grant the petition, they will undertake rulemaking to amend this part. If the Administrator and Secretary deny the petition, they will provide the State with a written explanation of why they denied it.
Subpart D -- Marine Pollution Control Device (MPCD) Performance Standards

§ 1700.14   Marine Pollution Control Device (MPCD) Performance Standards. [Reserved]

	Attachment C

	CWA Section 312 (Marine Sanitation Devices)

Sec. 312 FEDERAL WATER POLLUTION CONTROL ACT

MARINE SANITATION DEVICES
SEC. 312. (a) For the purpose of this section, the term --
(1) ``new vessel'' includes every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on the navigable waters, the construction of which is initiated after promulgation of standards and regulations under this section;
(2) ``existing vessel'' includes every description of watercraft or other artificial contrivance used, or capable of
being used, as a means of transportation on the navigable waters, the construction of which is initiated before promulgation of standards and regulations under this section;
(3) ``public vessel'' means a vessel owned or bareboat chartered and operated by the United States, by a State or political subdivision thereof, or by a foreign nation, except when such vessel is engaged in commerce;
(4) ``United States'' includes the States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Canal Zone, and the Trust Territory of the Pacific Islands;
 (5) ``marine sanitation device'' includes any equipment for installation on board a vessel which is designed to receive, retain, treat, or discharge sewage, and any process to treat such sewage;
(6) ``sewage'' means human body wastes and the wastes from toilets and other receptacles intended to receive or retain
body wastes except that, with respect to commercial vessels on the Great Lakes, such term shall include graywater;
(7) ``manufacture'' means any person engaged in the manufacturing, assembling, or importation of marine sanitation devices or of vessels subject to standards and regulations promulgated under this section;
(8) ``person'' means an individual, partnership, firm, corporation, association, or agency of the United States, but does
not include an individual on board a public vessel;
(9) ``discharge'' includes, but is not limited to, any spilling, leaking, pumping, pouring, emitting, emptying or dumping;
(10) ``commercial vessels'' means those vessels used in the business of transporting property for compensation or hire, or in transporting property in the business of the owner, lessee, or operator of the vessel;
(11) ``graywater'' means galley, bath, and shower water;
(12) ``discharge incidental to the normal operation of a vessel'' --
(A) means a discharge, including --
(i) graywater, bilge water, cooling water, weather deck runoff, ballast water, oil water separator effluent, and any other pollutant discharge from the operation of a marine propulsion system, shipboard maneuvering system, crew habitability system, or installed major equipment, such as an aircraft carrier elevator or a catapult, or from a protective, preservative, or absorptive application to the hull of the vessel; and
(ii) a discharge in connection with the testing, maintenance, and repair of a system described in
clause (i) whenever the vessel is waterborne; and (B) does not include --
(i) a discharge of rubbish, trash, garbage, or other such material discharged overboard;
(ii) an air emission resulting from the operation of a vessel propulsion system, motor driven equipment,
or incinerator; or
(iii) a discharge that is not covered by part 122.3 of title 40, Code of Federal Regulations (as in effect on
the date of the enactment of subsection (n));
(13) ``marine pollution control device'' means any equipment or management practice, for installation or use on board
a vessel of the Armed Forces, that is --
(A) designed to receive, retain, treat, control, or discharge  a discharge incidental to the normal operation of a
vessel; and
(B) determined by the Administrator and the Secretary of Defense to be the most effective equipment or
management practice to reduce the environmental impacts of the discharge consistent with the considerations set
forth in subsection (n)(2)(B); and
(14) ``vessel of the Armed Forces'' means --
(A) any vessel owned or operated by the Department of Defense, other than a time or voyage chartered vessel;and
(B) any vessel owned or operated by the Department of Transportation that is designated by the Secretary of
the department in which the Coast Guard is operating as a vessel equivalent to a vessel described in subparagraph
(A).
(b)(1) As soon as possible, after the enactment of this section and subject to the provisions of section 104(j) of this Act, the Administrator, after consultation with the Secretary of the department in which the Coast Guard is operating, after giving appropriate consideration to the economic costs involved, and within the limits of available technology, shall promulgate Federal standards of performance for marine sanitation devices (hereinafter in this section referred to as ``standards'') which shall be designed to prevent the discharge of untreated or inadequately treated sewage into or upon the navigable waters from new vessels and existing vessels, except vessels not equipped with installed toilet facilities.
Such standards and standards established under subsection (c)(1)(B) of this section shall be consistent with maritime safety and the marine and navigation laws and regulations and shall be coordinated with the regulations issued under this subsection by the Secretary of the department in which the Coast Guard is operating. The Secretary of the department in which the Coast Guard is operating shall promulgate regulations, which are consistent with standards promulgated under this subsection and subsection (c) of this section and with maritime safety and the marine and navigation
laws and regulations governing the design, construction, installation, and operation of any marine sanitation device on board such vessels.
(2) Any existing vessel equipped with a marine sanitation device on the date of promulgation of initial standards and regulations under this section, which device is in compliance with such initial standards and regulations, shall be deemed in compliance with this section until such time as the device is replaced or is found not to be in compliance with such initial standards and regulations.
(c)(1)(A) Initial standards and regulations under this section shall become effective for new vessels two years after promulgation; and for existing vessels five years after promulgation. Revisions of standards and regulations shall be effective upon promulgation, unless another effective date is specified, except that no revision shall take effect before the effective date of the standard or regulation being revised.
(B) The Administrator shall, with respect to commercial vessels on the Great Lakes, establish standards which require at a minimum the equivalent of secondary treatment as defined under section 304(d) of this Act. Such standards and regulations shall take effect for existing vessels after such time as the Administrator determines to be reasonable for the upgrading of marine sanitation devices to attain such standard.
(2) The Secretary of the department in which the Coast Guard is operating with regard to his regulatory authority established by this section, after consultation with the Administrator, may distinguish among classes, types, and sizes of vessels as well as between new and existing vessels, and may waive applicability of standards and regulations as necessary or appropriate for such classes, types, and sizes of vessels (including existing vessels equipped with marine
sanitation devices on the date of promulgation of the initial standards required by this section), and, upon application, for individual vessels.
(d) The provisions of this section and the standards and regulations promulgated hereunder apply to vessels owned and operated by the United States unless the Secretary of Defense finds that compliance would not be in the interest of national security. With respect to vessels owned and operated by the Department of Defense, regulations under the last sentence of subsection (b)(1) of this section and certifications under subsection (g)(2) of this section shall be promulgated and issued by the Secretary of Defense.
(e) Before the standards and regulations under this section are promulgated, the Administrator and the Secretary of the department in which the Coast Guard is operating shall consult with the Secretary of State; the Secretary of Health, Education, and Welfare; the Secretary of Defense; the Secretary of the Treasury; the Secretary of Commerce; other interested Federal agencies; and the States and industries interested; and otherwise comply with the requirements
of section 553 of title 5 of the United States Code.
(f)(1)(A) Except as provided in subparagraph (B), after the effective date of the initial standards and regulations promulgated under this section, no State or political subdivision thereof shall adopt or enforce any statute or regulation of such State or political subdivision with respect to the design, manufacture, or installation or use of any marine sanitation device on any vessel subject to the provisions of this section.
(B) A State may adopt and enforce a statute or regulation with respect to the design, manufacture, or installation or use of any marine sanitation device on a houseboat, if such statute or regulation is more stringent than the standards and regulations promulgated under this section. For purposes of this paragraph, the term ``houseboat'' means a vessel which, for a period of time determined by the State in which the vessel is located, is used primarily as a residence and is not used primarily as a means of transportation.
(2) If, after promulgation of the initial standards and regulations and prior to their effective date, a vessel is equipped with a marine sanitation device in compliance with such standards and regulations and the installation and operation of such device is in accordance with such standards and regulations, such standards and regulations shall, for the purposes of paragraph (1) of this subsection, become effective with respect to such vessel on the date of
such compliance.
(3) After the effective date of the initial standards and regulations promulgated under this section, if any State determines that the protection and enhancement of the quality of some or all of the waters within such State require greater environmental protection, such State may completely prohibit the discharge from all vessels of any sewage, whether treated or not, into such waters, except that no such prohibition shall apply until the Administrator determines
that adequate facilities for the safe and sanitary removal and treatment of sewage from all vessels are reasonably available for such water to which such prohibition would apply. Upon application of the State, the Administrator shall make such determination within 90 days of the date of such application.
(4)(A) If the Administrator determines upon application by a State that the protection and enhancement of the quality of specified waters within such State requires such a prohibition, he shall by regulation completely prohibit the discharge from a vessel of any sewage (whether treated or not) into such waters.
(B) Upon application by a State, the Administrator shall, by regulation, establish a drinking water intake zone in any waters within such State and prohibit the discharge of sewage from vessels
within that zone.
(g)(1) No manufacturer of a marine sanitation device shall sell, offer for sale, or introduce or deliver for introduction in interstate commerce, or import into the United States for sale or resale any marine sanitation device manufactured after the effective date of the standards and regulations promulgated under this section unless such device is in all material respects substantially the same as a test device certified under this subsection.
(2) Upon application of the manufacturer, the Secretary of the department in which the Coast Guard is operating shall so certify a marine sanitation device if he determines, in accordance with the provisions of this paragraph, that it meets the appropriate standards and regulations promulgated under this section. The Secretary of the department in which the Coast Guard is operating shall test or require such testing of the device in accordance with procedures set forth by the Administrator as to standards of performance andfor such other purposes as may be appropriate. If the Secretary of
the department in which the Coast Guard is operating determines that the device is satisfactory from the standpoint of safety and any other requirements of maritime law or regulation, and after consideration of the design, installation, operation, material, or other appropriate factors, he shall certify the device. Any device manufactured by such manufacturer which is in all material respects substantially the same as the certified test device shall be deemed to be in conformity with the appropriate standards and regulations established under this section.
(3) Every manufacturer shall establish and maintain such records, make such reports, and provide such information as the Administrator or the Secretary of the department in which the Coast Guard is operating may reasonably require to enable him to determine whether such manufacturer has acted or is acting in compliance with this section and regulations issued thereunder and shall, upon request of an officer or employee duly designated by the Administrator or the Secretary of the department in which the Coast Guard is operating, permit such officer or employee at reasonable times to have access to and copy such records. All information reported to or otherwise obtained by the Administrator or the Secretary of the department in which the Coast Guard is operating or their representatives pursuant to this subsection which contains or relates to a trade secret or other matter referred in section 1905 of title 18 of the United States Code shall be considered confidential for the purpose of that section, except that such information may be disclosed to other officers or employees concerned with carrying out this section. This paragraph shall not apply in the case of the construction of a vessel by an individual for his own use.
(h) After the effective date of standards and regulations promulgated under this section, it shall be unlawful --
(1) for the manufacturer of any vessel subject to such standards and regulations to manufacture for sale, to sell or offer for sale, or to distribute for sale or resale any such vessel unless it is equipped with a marine sanitation device which is in all material respects substantially the same as the appropriate test device certified pursuant to this section;
(2) for any person, prior to the sale or delivery of a vessel subject to such standards and regulations to the ultimate purchaser, wrongfully to remove or render inoperative any certified marine sanitation device or element of design of such device installed in such vessel;
(3) for any person to fail or refuse to permit access to or copying of records or to fail to make reports or provide information required under this section; and
(4) for a vessel subject to such standards and regulations to operate on the navigable waters of the United States, if such vessel is not equipped with an operable marine sanitation device certified pursuant to this section.
(i) The district courts of the United States shall have jurisdictions to restrain violations of subsection (g)(1) of this section and subsections (h)(1) through (3) of this section. Actions to restrain such violations shall be brought by, and in, the name of the United States. In case of contumacy or refusal to obey a subpena served upon any person under this subsection, the district court of the United States for any district in which such person is found or resides or transacts business, upon application by the United States and after notice to such person, shall have jurisdiction to issue an order requiring such person to appear and give testimony or to appear and produce documents, and any failure to obey such order of the court may be punished by such court as a contempt thereof.
(j) Any person who violates subsection (g)(1), clause (1) or (2) of subsection (h), or subsection (n)(8) shall be liable to a civil penalty of not more than $5,000 for each violation. Any person who violates clause (4) of subsection (h) of this section or any regulation issued pursuant to this section shall be liable to a civil penalty of not more than $2,000 for each violation. Each violation shall be a separate offense. The Secretary of the department in which the Coast Guard is operating may assess and compromise any such penalty. No penalty shall be assessed until the person charged shall have been given notice and an opportunity for a hearing on such charge. In determining the amount of the penalty, or the amount agreed upon in compromise, the gravity of the violation, and the demonstrated good faith of the person charged in attempting to achieve rapid compliance, after notification of a violation, shall be considered by said Secretary.
(k) The provisions of this section shall be enforced by the Secretary of the department in which the Coast Guard is operating and he may utilize by agreement, with or without reimbursement, law enforcement officers or other personnel and facilities of the Administrator, other Federal agencies, or the States to carry out the provisions of this section. The provisions of this section may also be enforced by a State.
(l) Anyone authorized by the Secretary of the department in which the Coast Guard is operating to enforce the provisions of this section may, except as to public vessels, (1) board and inspect any vessel upon the navigable waters of the United States and (2) execute any warrant or other process issued by an officer or court of competent jurisdiction.
(m) In the case of Guam and the Trust Territory of the Pacific Islands, actions arising under this section may be brought in the district court of Guam, and in the case of the Virgin Islands such actions may be brought in the district court of the Virgin Islands. In the case of American Samoa and the Trust Territory of the Pacific Islands, such actions may be brought in the District Court of the United States for the District of Hawaii and such court shall have jurisdiction of such actions. In the case of the Canal Zone, such actions may be brought in the District Court for the District of the Canal Zone.
(n) UNIFORM NATIONAL DISCHARGE STANDARDS FOR VESSELS OF THE ARMED FORCES. --
(1) APPLICABILITY. -- This subsection shall apply to vessels of the Armed Forces and discharges, other than sewage, incidental to the normal operation of a vessel of the Armed Forces, unless the Secretary of Defense finds that compliance with this subsection would not be in the national security interests of the United States.
(2) DETERMINATION OF DISCHARGES REQUIRED TO BE CONTROLLED BY MARINE POLLUTION CONTROL DEVICES. --
(A) IN GENERAL. -- The Administrator and the Secretary of Defense, after consultation with the Secretary of the department in which the Coast Guard is operating, the Secretary of Commerce, and interested States, shall jointly determine the discharges incidental to the normal operation of a vessel of the Armed Forces for which it is reasonable and practicable to require use of a marine pollution control device to mitigate adverse impacts on the marine environment. Notwithstanding subsection (a)(1) of section 553 of title 5, United States Code, the Administrator and the Secretary of Defense shall promulgate the determinations in accordance with such section. The Secretary of Defense shall require the use of a marine pollution control device on board a vessel of the Armed Forces in any case in which it is determined that the use of such a device is reasonable and practicable.
(B) CONSIDERATIONS. -- In making a determination under subparagraph (A), the Administrator and the Secretary of Defense shall take into consideration --
(i) the nature of the discharge;
(ii) the environmental effects of the discharge;
(iii) the practicability of using the marine pollution
control device;
(iv) the effect that installation or use of the marine pollution control device would have on the operation
or operational capability of the vessel;
 (v) applicable United States law;
(vi) applicable international standards; and
(vii) the economic costs of the installation and use of the marine pollution control device.
(3) PERFORMANCE STANDARDS FOR MARINE POLLUTION CONTROL
DEVICES. --
(A) IN GENERAL. -- For each discharge for which a marine pollution control device is determined to be required under paragraph (2), the Administrator and the Secretary of Defense, in consultation with the Secretary of the department in which the Coast Guard is operating, the Secretary of State, the Secretary of Commerce, other interested Federal agencies, and interested States, shall jointly promulgate Federal standards of performance for each marine pollution control device required with respect to the discharge. Notwithstanding subsection (a)(1) of section 553 of title 5, United States Code, the Administrator and the Secretary of Defense shall promulgate the standards in accordance with such section.
(B) CONSIDERATIONS. -- In promulgating standards under this paragraph, the Administrator and the Secretary
of Defense shall take into consideration the matters set forth in paragraph (2)(B).
(C) CLASSES, TYPES, AND SIZES OF VESSELS. -- The standards promulgated under this paragraph may --
(i) distinguish among classes, types, and sizes of
vessels;
(ii) distinguish between new and existing vessels; and
(iii) provide for a waiver of the applicability of the standards as necessary or appropriate to a particular class, type, age, or size of vessel.
(4) REGULATIONS FOR USE OF MARINE POLLUTION CONTROL DEVICES. -- The Secretary of Defense, after consultation with the Administrator and the Secretary of the department in which the Coast Guard is operating, shall promulgate such regulations governing the design, construction, installation, and use of marine pollution control devices on board vessels of the Armed Forces as are necessary to achieve the standards promulgated under paragraph (3).
(5) DEADLINES; EFFECTIVE DATE. --
(A) DETERMINATIONS. -- The Administrator and the Secretary of Defense shall --
(i) make the initial determinations under paragraph
(2) not later than 2 years after the date of the enactment of this subsection; and
(ii) every 5 years --
(I) review the determinations; and
(II) if necessary, revise the determinations based on significant new information.
(B) STANDARDS. -- The Administrator and the Secretary of Defense shall --
(i) promulgate standards of performance for a marine pollution control device under paragraph (3) not later than 2 years after the date of a determination under paragraph (2) that the marine pollution control device is required; and
(ii) every 5 years --
(I) review the standards; and
(II) if necessary, revise the standards, consistent with paragraph (3)(B) and based on significant new information.
(C) REGULATIONS. -- The Secretary of Defense shall promulgate regulations with respect to a marine pollution control device under paragraph (4) as soon as practicable after the Administrator and the Secretary of Defense promulgate standards with respect to the device under paragraph
(3), but not later than 1 year after the Administrator and the Secretary of Defense promulgate the standards. The regulations promulgated by the Secretary of Defense under paragraph (4) shall become effective upon promulgation unless another effective date is specified in the regulations.
(D) PETITION FOR REVIEW. -- The Governor of any State may submit a petition requesting that the Secretary of Defense
and the Administrator review a determination under paragraph (2) or a standard under paragraph (3), if there is significant new information, not considered previously, that could reasonably result in a change to the particular determination or standard after consideration of the matters set forth in paragraph (2)(B). The petition shall be accompanied by the scientific and technical information on which the petition is based. The Administrator and the Secretary of Defense shall grant or deny the petition not later than 2 years after the date of receipt of the petition.
(6) EFFECT ON OTHER LAWS. --  (A) PROHIBITION ON REGULATION BY STATES OR POLITICAL SUBDIVISIONS OF STATES. -- Beginning on the effective date of --
(i) a determination under paragraph (2) that it is not reasonable and practicable to require use of a marine pollution control device regarding a particular discharge incidental to the normal operation of a vessel of the Armed Forces; or
(ii) regulations promulgated by the Secretary of Defense under paragraph (4); except as provided in paragraph (7), neither a State nor a political subdivision of a State may adopt or enforce any statute or regulation of the State or political subdivision with respect to the discharge or the design, construction, installation, or use of any marine pollution control device required to control discharges from a vessel of the Armed Forces.
(B) FEDERAL LAWS. -- This subsection shall not affect the application of section 311 to discharges incidental to the normal operation of a vessel.
(7) ESTABLISHMENT OF STATE NO-DISCHARGE ZONES. --
(A) STATE PROHIBITION. --
(i) IN GENERAL. -- After the effective date of --  (I) a determination under paragraph (2) that
it is not reasonable and practicable to require use of a marine pollution control device regarding a
particular discharge incidental to the normal operation of a vessel of the Armed Forces; or
(II) regulations promulgated by the Secretary of Defense under paragraph (4);
if a State determines that the protection and enhancement of the quality of some or all of the waters within
the State require greater environmental protection, the State may prohibit 1 or more discharges incidental
to the normal operation of a vessel, whether treated or not treated, into the waters. No prohibition shall apply
until the Administrator makes the determinations described in subclauses (II) and (III) of subparagraph
(B)(i).
(ii) DOCUMENTATION. -- To the extent that a prohibition under this paragraph would apply to vessels of
the Armed Forces and not to other types of vessels, the State shall document the technical or environmental
basis for the distinction.
(B) PROHIBITION BY THE ADMINISTRATOR. --
(i) IN GENERAL. -- Upon application of a State, the Administrator shall by regulation prohibit the discharge
from a vessel of 1 or more discharges incidental to the normal operation of a vessel, whether treated or
not treated, into the waters covered by the application if the Administrator determines that --
(I) the protection and enhancement of the quality of the specified waters within the State require
a prohibition of the discharge into the waters;
(II) adequate facilities for the safe and sanitary removal of the discharge incidental to the
normal operation of a vessel are reasonably available for the waters to which the prohibition would
apply; and
(III) the prohibition will not have the effect of discriminating against a vessel of the Armed
Forces by reason of the ownership or operation by the Federal Government, or the military function,
of the vessel.
(ii) APPROVAL OR DISAPPROVAL. -- The Administrator shall approve or disapprove an application submitted
under clause (i) not later than 90 days after the date on which the application is submitted to the Administrator.
Notwithstanding clause (i)(II), the Administrator shall not disapprove an application for the
sole reason that there are not adequate facilities to remove any discharge incidental to the normal operation
of a vessel from vessels of the Armed Forces.
(C) APPLICABILITY TO FOREIGN FLAGGED VESSELS. -- A prohibition under this paragraph --
(i) shall not impose any design, construction, manning, or equipment standard on a foreign flagged ves-
sel engaged in innocent passage unless the prohibition implements a generally accepted international rule or
standard; and
(ii) that relates to the prevention, reduction, and control of pollution shall not apply to a foreign flagged
vessel engaged in transit passage unless the prohibition implements an applicable international regulation
regarding the discharge of oil, oily waste, or any other noxious substance into the waters.
(8) PROHIBITION RELATING TO VESSELS OF THE ARMED FORCES. -- After the effective date of the regulations promulgated
by the Secretary of Defense under paragraph (4), it shall be unlawful for any vessel of the Armed Forces subject to the
regulations to --
(A) operate in the navigable waters of the United States or the waters of the contiguous zone, if the vessel
is not equipped with any required marine pollution control device meeting standards established under this subsection;
or
(B) discharge overboard any discharge incidental to the normal operation of a vessel in waters with respect to
which a prohibition on the discharge has been established under paragraph (7).
(9) ENFORCEMENT. -- This subsection shall be enforceable, as provided in subsections (j) and (k), against any agency of the United States responsible for vessels of the Armed Forces notwithstanding any immunity asserted by the agency.
(33 U.S.C. 1322)
                                    Attachment D

	40 CFR 140 (Marine Sanitation Device Standard)

§ 140.1   Definitions.

For the purpose of these standards the following definitions shall apply:

(a) Sewage means human body wastes and the wastes from toilets and other receptacles intended to receive or retain body wastes;

(b) Discharge includes, but is not limited to, any spilling, leaking, pumping, pouring, emitting, emptying, or dumping;

(c) Marine sanitation device includes any equipment for installation onboard a vessel and which is designed to receive, retain, treat, or discharge sewage and any process to treat such sewage;

(d) Vessel includes every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on waters of the United States;

(e) New vessel refers to any vessel on which construction was initiated on or after January 30, 1975;

(f) Existing vessel refers to any vessel on which construction was initiated before January 30, 1975;

(g) Fecal coliform bacteria are those organisms associated with the intestines of warm-blooded animals that are commonly used to indicate the presence of fecal material and the potential presence of organisms capable of causing human disease.

§ 140.2   Scope of standard.

The standard adopted herein applies only to vessels on which a marine sanitation device has been installed. The standard does not require the installation of a marine sanitation device on any vessel that is not so equipped. The standard applies to vessels owned and operated by the United States unless the Secretary of Defense finds that compliance would not be in the interest of national security.

§ 140.3   Standard.

(a) (1) In freshwater lakes, freshwater reservoirs or other freshwater impoundments whose inlets or outlets are such as to prevent the ingress or egress by vessel traffic subject to this regulation, or in rivers not capable of navigation by interstate vessel traffic subject to this regulation, marine sanitation devices certified by the U.S. Coast Guard (see 33 CFR part 159, published in 40 FR 4622, January 30, 1975), installed on all vessels shall be designed and operated to prevent the overboard discharge of sewage, treated or untreated, or of any waste derived from sewage. This shall not be construed to prohibit the carriage of Coast Guard-certified flow-through treatment devices which have been secured so as to prevent such discharges.

(2) In all other waters, Coast Guard-certified marine sanitation devices installed on all vessels shall be designed and operated to either retain, dispose of, or discharge sewage. If the device has a discharge, subject to paragraph (d) of this section, the effluent shall not have a fecal coliform bacterial count of greater than 1,000 per 100 milliliters nor visible floating solids. Waters where a Coast Guard-certified marine sanitation device permitting discharge is allowed include coastal waters and estuaries, the Great Lakes and inter-connected waterways, fresh-water lakes and impoundments accessible through locks, and other flowing waters that are navigable interstate by vessels subject to this regulation.

(b) This standard shall become effective on January 30, 1977 for new vessels and on January 30, 1980 for existing vessels (or, in the case of vessels owned and operated by the Department of Defense, two years and five years, for new and existing vessels, respectively, after promulgation of implementing regulations by the Secretary of Defense under section 312(d) of the Act).

(c) Any vessel which is equipped as of the date of promulgation of this regulation with a Coast Guard-certified flow-through marine sanitation device meeting the requirements of paragraph (a)(2) of this section, shall not be required to comply with the provisions designed to prevent the overboard discharge of sewage, treated or untreated, in paragraph (a)(1) of this section, for the operable life of that device.

(d) After January 30, 1980, subject to paragraphs (e) and (f) of this section, marine sanitation devices on all vessels on waters that are not subject to a prohibition of the overboard discharge of sewage, treated or untreated, as specified in paragraph (a)(1) of this section, shall be designed and operated to either retain, dispose of, or discharge sewage, and shall be certified by the U.S. Coast Guard. If the device has a discharge, the effluent shall not have a fecal coliform bacterial count of greater than 200 per 100 milliliters, nor suspended solids greater than 150 mg/1.

(e) Any existing vessel on waters not subject to a prohibition of the overboard discharge of sewage in paragraph (a)(1) of this section, and which is equipped with a certified device on or before January 30, 1978, shall not be required to comply with paragraph (d) of this section, for the operable life of that device.

(f) Any new vessel on waters not subject to the prohibition of the overboard discharge of sewage in paragraph (a)(1) of this section, and on which construction is initiated before January 31, 1980, which is equipped with a marine sanitation device before January 31, 1980, certified under paragraph (a)(2) of this section, shall not be required to comply with paragraph (d) of this section, for the operable life of that device.

(g) The degrees of treatment described in paragraphs (a) and (d) of this section are "appropriate standards" for purposes of Coast Guard and Department of Defense certification pursuant to section 312(g)(2) of the Act.

[41 FR 4453, Jan. 29, 1976, as amended at 60 FR 33932, June 29, 1995]

§ 140.4   Complete prohibition.

(a) Prohibition pursuant to CWA section 312(f)(3): a State may completely prohibit the discharge from all vessels of any sewage, whether treated or not, into some or all of the waters within such State by making a written application to the Administrator, Environmental Protection Agency, and by receiving the Administrator's affirmative determination pursuant to section 312(f)(3) of the Act. Upon receipt of an application under section 312(f)(3) of the Act, the Administrator will determine within 90 days whether adequate facilities for the safe and sanitary removal and treatment of sewage from all vessels using such waters are reasonably available. Applications made by States pursuant to section 312(f)(3) of the Act shall include:

(1) A certification that the protection and enhancement of the waters described in the petition require greater environmental protection than the applicable Federal standard;

(2) A map showing the location of commercial and recreational pump-out facilities;

(3) A description of the location of pump-out facilities within waters designated for no discharge;

(4) The general schedule of operating hours of the pump-out facilities;

(5) The draught requirements on vessels that may be excluded because of insufficient water depth adjacent to the facility;

(6) Information indicating that treatment of wastes from such pump-out facilities is in conformance with Federal law; and

(7) Information on vessel population and vessel usage of the subject waters.

(b) Prohibition pursuant to CWA section 312(f)(4)(A): a State may make a written application to the Administrator, Environmental Protection Agency, under section 312(f)(4)(A) of the Act, for the issuance of a regulation completely prohibiting discharge from a vessel of any sewage, whether treated or not, into particular waters of the United States or specified portions thereof, which waters are located within the boundaries of such State. Such application shall specify with particularly the waters, or portions thereof, for which a complete prohibition is desired. The application shall include identification of water recreational areas, drinking water intakes, aquatic sanctuaries, identifiable fish-spawning and nursery areas, and areas of intensive boating activities. If, on the basis of the State's application and any other information available to him, the Administrator is unable to make a finding that the waters listed in the application require a complete prohibition of any discharge in the waters or portions thereof covered by the application, he shall state the reasons why he cannot make such a finding, and shall deny the application. If the Administrator makes a finding that the waters listed in the application require a complete prohibition of any discharge in all or any part of the waters or portions thereof covered by the State's application, he shall publish notice of such findings together with a notice of proposed rule making, and then shall proceed in accordance with 5 U.S.C. 553. If the Administrator's finding is that applicable water quality standards require a complete prohibition covering a more restricted or more expanded area than that applied for by the State, he shall state the reasons why his finding differs in scope from that requested in the State's application.

(1) For the following waters the discharge from a vessel of any sewage (whether treated or not) is completely prohibited pursuant to CWA section 312(f)(4)(A):

(i) Boundary Waters Canoe Area, formerly designated as the Superior, Little Indian Sioux, and Caribou Roadless Areas, in the Superior National Forest, Minnesota, as described in 16 U.S.C. 577 - 577d1.

(ii) Waters of the State of Florida within the boundaries of the Florida Keys National Marine Sanctuary as delineated on a map of the Sanctuary at http://www.fknms.nos.noaa.gov/.

(c)(1) Prohibition pursuant to CWA section 312(f)(4)(B): A State may make written application to the Administrator of the Environmental Protection Agency under section 312(f)(4)(B) of the Act for the issuance of a regulation establishing a drinking water intake no discharge zone which completely prohibits discharge from a vessel of any sewage, whether treated or untreated, into that zone in particular waters, or portions thereof, within such State. Such application shall:

(i) Identify and describe exactly and in detail the location of the drinking water supply intake(s) and the community served by the intake(s), including average and maximum expected amounts of inflow;

(ii) Specify and describe exactly and in detail, the waters, or portions thereof, for which a complete prohibition is desired, and where appropriate, average, maximum and low flows in million gallons per day (MGD) or the metric equivalent;

(iii) Include a map, either a USGS topographic quadrant map or a NOAA nautical chart, as applicable, clearly marking by latitude and longitude the waters or portions thereof to be designated a drinking water intake zone; and

(iv) Include a statement of basis justifying the size of the requested drinking water intake zone, for example, identifying areas of intensive boating activities.

(2) If the Administrator finds that a complete prohibition is appropriate under this paragraph, he or she shall publish notice of such finding together with a notice of proposed rulemaking, and then shall proceed in accordance with 5 U.S.C. 553. If the Administrator's finding is that a complete prohibition covering a more restricted or more expanded area than that applied for by the State is appropriate, he or she shall also include a statement of the reasons why the finding differs in scope from that requested in the State's application.

(3) If the Administrator finds that a complete prohibition is inappropriate under this paragraph, he or she shall deny the application and state the reasons for such denial.

(4) For the following waters the discharge from a vessel of any sewage, whether treated or not, is completely prohibited pursuant to CWA section 312(f)(4)(B):

(i) Two portions of the Hudson River in New York State, the first is bounded by an east-west line through the most northern confluence of the Mohawk River which will be designated by the Troy-Waterford Bridge (126th Street Bridge) on the south and Lock 2 on the north, and the second of which is bounded on the north by the southern end of Houghtaling Island and on the south by a line between the Village of Roseton on the western shore and Low Point on the eastern shore in the vicinity of Chelsea, as described in Items 2 and 3 of 6 NYCRR Part 858.4.

(ii) [Reserved]

[41 FR 4453, Jan. 29, 1976, as amended at 42 FR 43837, Aug. 31, 1977; 60 FR 63945, Dec. 13, 1995; 63 FR 1320, Jan. 8, 1998; 67 FR 35743, May 21, 2002]

§ 140.5   Analytical procedures.

In determining the composition and quality of effluent discharge from marine sanitation devices, the procedures contained in 40 CFR part 136, "Guidelines Establishing Test Procedures for the Analysis of Pollutants," or subsequent revisions or amendments thereto, shall be employed.


[Federal Register Volume 86, Number 88 (Monday, May 10, 2021)]
[Proposed Rules]
[Pages 24792-24794]
[FR Doc No: 2021-09477]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2021-0277; Airspace Docket No. 21-AGL-19]
RIN 2120-AA66

Proposed Revocation of Class E Airspace; Standish, MI

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to revoke the Class E airspace extending
upward from 700 feet above the surface at Standish Industrial Airport,
Standish, MI. The FAA is proposing this action as the result of an
airspace review caused by the closing of the Standish Industrial
Airport and associated instrument procedures no longer required.

DATES: Comments must be received on or before June 24, 2021.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590; telephone
(202) 366-9826, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2021-0277/Airspace Docket No. 21-AGL-19, at the beginning of your
comments. You may also submit comments through the internet at https://www.regulations.gov. You may review the public docket containing the
proposal, any comments received, and any final disposition in person in
the Dockets Office between 9:00 a.m. and 5:00 p.m., Monday through
Friday, except federal holidays.
    FAA Order 7400.11E, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11E at NARA, email<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Rebecca Shelby, Federal Aviation
Administration, Operations Support Group, Central Service Center, 10101

Hillwood Parkway, Fort Worth, TX 76177; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would revoke the Class E airspace extending upward from 700 feet
above the surface at Standish Industrial Airport, Standish, MI, due to
the closure of the airport and cancellation of the instrument
procedures at this airport.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2021-0277/
Airspace Docket No. 21-AGL-19.'' The postcard will be date/time stamped
and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at https://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at https://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the Federal Aviation Administration, Air Traffic
Organization, Central Service Center, Operations Support Group, 10101
Hillwood Parkway, Fort Worth, TX 76177.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11E, Airspace
Designations and Reporting Points, dated July 21, 2020, and effective
September 15, 2020. FAA Order 7400.11E is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11E lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is proposing an amendment to 14 CFR part 71 by revoking the
Class E airspace extending upward from 700 feet above the surface to at
Standish Industrial Airport, Standish, MI.
    This action is the result of an airspace review due to the closing
of the Standish Industrial Airport, Standish, MI, and cancellation of
the instrument procedures at this airport.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.11E, dated July 21, 2020, and effective September 15,
2020, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designations listed in this document will be published
subsequently in the Order.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore: (1) Is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a regulatory evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, would not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority:  49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11E,
Airspace Designations and Reporting Points, dated August 8, 2019, and
effective September 15, 2019, is amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

AGL MI E5 Standish, MI [Removed]

    Issued in Fort Worth, Texas, on April 29, 2021.
Martin A. Skinner,
Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2021-09477 Filed 5-7-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 87, Number 87 (Thursday, May 5, 2022)]
[Notices]
[Pages 26747-26748]
[FR Doc No: 2022-09653]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings--B

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP12-609-000.
    Applicants: Texas Gas Transmission, LLC.
    Description: Report Filing: 2021 Operational Purchases and Sales
Report Filing to be effective N/A.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5030.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP13-212-000.
    Applicants: Boardwalk Storage Company, LLC.

    Description: Report Filing: 2021 Operational Purchases and Sales
Report to be effective N/A.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5033.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-856-000.
    Applicants: East Cheyenne Gas Storage, LLC.
    Description: Report Filing: ECGS 2022-04-28 Original Volume No. 1
Cancellation to be effective N/A.
    Filed Date: 4/28/22.
    Accession Number: 20220428-5327.
    Comment Date: 5 p.m. ET 5/10/22.

    Docket Numbers: RP22-871-000.
    Applicants: Northern Natural Gas Company.
    Description: Sec.  4(d) Rate Filing: 20220429 Winter PRA to be
effective 11/1/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5048.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-872-000.
    Applicants: East Cheyenne Gas Storage, LLC.
    Description: Compliance filing: ECGS 2022-04-29 Notice of Change in
Status to be effective N/A.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5061.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-873-000.
    Applicants: Kern River Gas Transmission Company.
    Description: Sec.  4(d) Rate Filing: 2022 Pooling Filing to be
effective 6/1/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5095.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-874-000.
    Applicants: ANR Pipeline Company.
    Description: Sec.  4(d) Rate Filing: ANR--TVA #114656 Amendment 12
to be effective 6/1/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5100.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-875-000.
    Applicants: Wyoming Interstate Company, L.L.C.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Filing (BP Energy) to be effective 6/1/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5103.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-876-000.
    Applicants: El Paso Natural Gas Company, L.L.C.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Filing (JM_RAL) to be effective 5/1/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5107.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-877-000.
    Applicants: El Paso Natural Gas Company, L.L.C.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Update (SoCal May-Oct) to be effective 5/1/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5119.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-878-000.
    Applicants: Carlsbad Gateway, LLC.
    Description: Compliance filing: Carlsbad Gateway NAESB Compliance
Filing to be effective 6/1/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5125.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-879-000.
    Applicants: Northern Natural Gas Company.
    Description: Sec.  4(d) Rate Filing: 20220429 Negotiated Rate to be
effective 5/1/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5133.
    Comment Date: 5 p.m. ET 5/11/22.

    Docket Numbers: RP22-880-000.
    Applicants: El Paso Natural Gas Company, L.L.C.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Update (SoCal May 2022) to be effective 5/2/2022.
    Filed Date: 4/29/22.
    Accession Number: 20220429-5136.
    Comment Date: 5 p.m. ET 5/11/22.

    Any person desiring to protest in any the above proceedings must
file in accordance with Rule 211 of the Commission's Regulations (18
CFR 385.211) on or before 5:00 p.m. Eastern time on the specified
comment date.
    The filings are accessible in the Commission's eLibrary system
(https://elibrary.ferc.gov/idmws/search/fercgensearch.asp) by querying
the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: April 29, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-09653 Filed 5-4-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 88, Number 114 (Wednesday, June 14, 2023)]
[Notices]
[Page 38855]
[FR Doc No: 2023-12732]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER23-2091-000]

Goleta Energy Storage, LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Goleta Energy Storage, LLC's application for market-based rate
authority, with an accompanying rate tariff, noting that such
application includes a request for blanket authorization, under 18 CFR
part 34, of future issuances of securities and assumptions of
liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is June 28, 2023.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically may mail similar pleadings to
the Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426. Hand delivered submissions in docketed
proceedings should be delivered to Health and Human Services, 12225
Wilkins Avenue, Rockville, Maryland 20852.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov) using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at [email protected] or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.
    The Commission's Office of Public Participation (OPP) supports
meaningful public engagement and participation in Commission
proceedings. OPP can help members of the public, including landowners,
environmental justice communities, Tribal members and others, access
publicly available information and navigate Commission processes. For
public inquiries and assistance with making filings such as
interventions, comments, or requests for rehearing, the public is
encouraged to contact OPP at<PHONE_NUMBER> or [email protected].

    Dated: June 8, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-12732 Filed 6-13-23; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: April 6, 2006 (Volume 71, Number 66)]
[Notices]
[Page 17467]
[DOCID:fr06ap06-71]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2003-0162; FRL-8054-4]

Agency Information Collection Activities: Submissions for OMB
Review; Comment Request; EPA Information Collection Request for the
Regional Haze Rule; EPA ICR No. 1813.06; OMB Control No. 2060-0421;
Correction

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice correction.

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

SUMMARY: The EPA published a document in the Federal Register of March
13, 2006, concerning request for comments on a renewal of EPA's
Information Collection Request for the Regional Haze Rule. The document
contained incorrect dates.

FOR FURTHER INFORMATION CONTACT: General questions concerning today's
action should be addressed to Kathy Kaufman, U.S. EPA, Office of Air
Quality Policy Division, Mail Code C504-02, Research Triangle Park, NC,
27711, telephone<PHONE_NUMBER>, e-mail<EMAIL_ADDRESS>
Correction

    In the Federal Register of March 13, 2006, in FR Document E6-3517,
on page 12696, in the second column, correct the ``Dates'' caption to
read:

DATES: Comments must be submitted on or before May 12, 2006.

    Dated: March 28, 2006.
Scott Mathias,
Acting Director, Air Quality Policy Division, Office of Air Quality
Planning and Standards.
 [FR Doc. E6-5020 Filed 4-5-06; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register Volume 77, Number 170 (Friday, August 31, 2012)]
[Notices]
[Pages 53241-53242]
[FR Doc No: 2012-21494]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67733; File No. SR-OCC-2012-11]

Self-Regulatory Organizations; Options Clearing Corporation;
Order Approving Proposed Rule Change Relating to the Auction Process
Under Options Clearing Corporation Rule 1104

August 27, 2012.

I. Introduction

    On July 3, 2012, the Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change SR-OCC-2012-11 pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder.\2\ The proposed rule change was published for comment in
the Federal Register on July 20, 2012.\3\ The Commission received no
comment letters. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 67443 (July 16, 2012),
77 FR 42784 (July 20, 2012).
---------------------------------------------------------------------------

II. Description

    In a recent rule change, OCC proposed and the Commission approved
provisions to OCC Rule 1104 and Rule 1106 to specifically provide that,
in addition to all other permitted means of liquidating positions and
collateral in the accounts of a suspended Clearing Member, OCC may, at
its discretion, liquidate such positions and collateral through a
private auction process.\4\ The purpose of the current rule change is
to add an interpretation .02 to Rule 1104 to provide a further general
description of such a private auction process by which OCC may
liquidate all or any part of a suspended Clearing Member's accounts.
The proposed interpretation sets forth the basic parameters of such an
auction, including the process for creating a standing pool of pre-
qualified potential bidders, criteria for fixing the number of bidders
to participate in any particular auction and the method of selection of
such bidders. Such criteria are intended to ensure an orderly and
robust auction and to ensure that auction bidders are financially able
to make payment for and assume the obligations of the collateral and
positions they are acquiring and able to manage the risk thereof and/or
trade out of the positions without creating unnecessary further risk to
the Corporation. Interpretations cross-referencing interpretation .02
to Rule 1104 will be added following Rules 1106, 1107, 2210, and 2210A,
and the latter three rules are proposed to be amended to provide that
the auction process is applicable to assets and obligations arising
from exercised and assigned options and matured, physically-settled
futures and to assets and obligations arising from the close-out of
stock loan and borrow positions as well.
---------------------------------------------------------------------------

    \4\ See Exchange Act Release No. 65654 (October 28, 2011), 76 FR
68236 (November 3, 2011) (SR-OCC-2011-08) (Order Approving Proposed
Rule Change, as Modified by Amendment No. 1, to Provide Specific
Authority to Use an Auction Process as One of the Means to Liquidate
a Defaulting Clearing Member's Accounts).

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

    Each private auction will be a ``sealed bid'' auction in which pre-
qualified bidders selected by OCC will submit confidential bids such
that no bidder will know the bid information of any of the other
bidders. The pool of prequalified potential bidders in any auction
would consist of all Clearing Members who are interested in
participation and willing to execute the required documentation.
Participation in the pre-qualified bidder pool by certain non-Clearing
Members would also be solicited. Should the Corporation determine to
hold a private auction, the Corporation will review the pool of pre-
qualified auction bidders and would seek to invite a fixed number of
bidders for the auction based on objective criteria that the
Corporation believes would optimize the effectiveness of the auction
process. OCC believes that fixing the size of the desired bidder group
at a number that is either too large or too small could have an adverse
impact on the effectiveness and competitiveness of the auction process.
A group that is too small would not provide adequate competition among
bidders, while setting the target size for the group of bidders at too
large a number would discourage participation because of fear that the
composition of the portfolios to be bid on would be leaked beyond the
bidder group, allowing non-bidders to trade ahead of the auction to the
disadvantage of bidders in the auction. Attempting to organize too
large a group of bidders would also cause potentially costly delay in
the auction process. OCC would most likely use its secure ENCORE system
or telephone contact to invite selected pre-qualified bidders to submit
bids in the private auction. No invited bidder would be obligated to
bid in the private auction.
    At the conclusion of a private auction, OCC will, in its
discretion, select the best bid submitted for the auctioned portfolio
based on the totality of the circumstances.\5\ For example, where an
auction portfolio has a negative net asset value, negative bids may be
submitted which indicate how much OCC would be required to pay a bidder
to assume the auction portfolio, and the lowest rather than the highest
bid may therefore be the best bid. Other factors such as any condition
attached to a bid may influence the choice of best bid.
---------------------------------------------------------------------------

    \5\ The Staff notes for clarity that OCC has no specific
procedures to announce auctions or their results other than notices
to the winning bidders and losing bidders as specified in proposed
Rule 1104(e).
---------------------------------------------------------------------------

    Finally, in order to increase legal certainty under potentially
applicable provisions of the Uniform Commercial Code, the proposed
interpretations would require Clearing Members to acknowledge that the
private auction process is a commercially reasonable method of
liquidating a suspended Clearing Member's accounts and that notice of a
private auction to a suspended Clearing Member is not required under
the auction process.

III. Discussion

    Section 17A(b)(3)(F) of the Act requires that, among other things,
the rules of a clearing agency be designed to promote the prompt and
accurate clearance and settlement of securities transactions, and, to
the extent applicable, derivative agreements, contracts, and
transactions.\6\ The rule change sets forth the procedures that OCC
will use to liquidate the open positions and margin of a defaulting
member in order to meet its settlement obligations to non-defaulting
members promptly and in a manner that is least disruptive to the
securities markets. Section 17A(b)(3)(F) of the Act also requires that
the rules of a clearing agency are, in general, designed to protect
investors and the public interest and are not designed to permit unfair
discrimination among participants in the use of the clearing agency.\7\
The rule change sets forth the general criteria used by OCC to select
bidders, invite bidders to participate in the auction, and select the
best bid.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1(b)(3)(F).
    \7\ Id.
---------------------------------------------------------------------------

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \8\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (File No. SR-OCC-2012-11) be, and
hereby is, approved.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).
    \10\ In approving this proposed rule change the Commission has
considered the proposed rule's impact of efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-21494 Filed 8-30-12; 8:45 am]
BILLING CODE 8011-01-P